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Taking advantage of relative value credit opportunities with advanced bond analytics | The transition from LIBOR to RFR has brought challenges for structured products. There are still legacy IBOR products to consider and at the same time the pricing and risk systems need to be upgraâ¦
To ease the pain associated with meeting compliance targets, global institutions are exploring ways to become more efficient by integrating regulatory and business initiatives.
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Relative value trading is a popular investment strategy for firms looking to achieve high returns while minimising risk. This strategy depends on the isolation of identical or very similar credit instruments where one is assessed to be comparatively under- or overvalued. These might be bonds issued by the same borrower but at different points of the yield curve, or bonds issued by different but similar borrowers.
Although these strategies can differ significantly, they have one thing in common – they require sophisticated bond analytics to take advantage of opportunities. Quantifi’ s advanced analytics enables firms to take fundamental and relative credit views across the whole spectrum of fixed income and credit asset classes, including bonds, credit default swaps ( CDSs), index and basket products, exchange-traded funds and derivatives.
One can successfully trade fixed and floating bonds based on yield and discount margin, as well as their first ( duration) and second ( convexity) derivatives. A more comprehensive take on the bonds’ performance and associated risks requires a more complex measure – Z‑spread. Z denotes zero volatility and is defined as a flat spread over the discounting curve, which replicates the bond price.
To gain consistency with credit markets, one has to imply a bond-equivalent CDS spread, which is a flat CDS spread of the credit curve used to replicate the bond market price. This requires building interest rate and credit curves, making this calculation strongly dependent on corresponding modelling assumptions.
Faster-moving and more complex markets have increased demand for more sophisticated analytics. This is particularly relevant for callable bonds. Accurate valuations and sensitivities are key components of relative value credit strategies. This is because many firms issue both regular and callable bonds, and having advanced analytics allows anomalies in market prices to be captured.
Callable bonds create a challenge for yield calculations because the maturity of the bond is not well defined. This requires not only the yield to maturity to be calculated, but also the yield to first, to second, to worst, and so on. Calculating Z‑spread – which, in the case of callables, is referred to as the options adjusted spread ( OAS) – requires an interest rate model, ranging from the simple short-rate model to the more comprehensive forward-rate model, to be implemented. Note that the OAS spread is usually assumed to be non-stochastic.
In this environment of high and volatile credit spreads, a one-factor interest rate model is inadequate. The most effective way to improve this is by implementing a two-factor interest rate credit model, where interest rate and credit components are correlated.
Figures 1 and 2 display how rates and credit volatilities affect the prices of callable floater and callable fixed bonds. Both the bonds are par, and option is struck at par. It is clear that rate volatilities are not affecting the floater bond call, whereas the credit vols are affecting both the fixed and floater calls. Therefore, implementing credit as stochastic is important not only for floaters but fixed bonds too.
Successfully applying relative strategy across different horizons of a credit curve requires the curve to be built from traded credit instruments – for example, bonds from the same issuer. The best approach is to apply bootstrapping. This involves calibrating the first tenor of the credit curve to the first bond; calibrating the second tenor has to take into account the credit spread of the first tenor, and so on. For this methodology to work, bond maturities should not be too concentrated.
In some cases, bootstrapping is not applicable and optimisation is necessary. This is particularly the case in scenarios where some input bonds are callable because, for callable bonds, the maturity is not easily defined.
Convertible bonds can be converted into equity shares at specified dates, at specified conversion ratios. Convertibles therefore have three sources of market risk: interest rate, credit and equity. In terms of valuing the bond, a two-factor model would require a two-factor tree or partial differential equation solver – either interest rate equity or equity credit. Three-factor solver/trees are very slow so firms have to decide which components are most important – which volatilities and correlations affect price the most.
Having decided on the important components, one has to consider the treatment of equity. The most direct way is to input the equity forward curve, which already contains all of the information and can provide forwards for any given time. Another important factor, which is also new in the analytics world, is to apply no-default probability to the equity forward.
Credit can be treated as either random or non-random and can be a separate input or calibrated to market quote – this flexibility in the models is necessary to imply credit spreads. The price of a convertible bond is a good indicator of the credit component, so one can imply an OAS or CDS spread from a market quote, and then hedge with a single-name CDS or execute a relative value trade.
One of the most recent challenges for building comprehensive bond libraries is related to the transition from Libor rates. At the end of 2021, all non-US-dollar Libor rates were discontinued, alongside two-week and two-month USD Libor. The remainder of USD Libor rates is scheduled to end by June 30, 2023.
The Alternative Reference Rates Committee ( ARRC) recommends using daily secured overnight financing rate ( SOFR) rates for floating bonds and loans, and compounding them daily with the payment of a compounded rate in arrears, which for bonds and loans means at the end of accrual period. The issue, though, is that the rate at the end of the accrual period has not been quoted at this point, therefore the coupon can not be calculated in time for payment. To solve this problem, the ARRC proposes using different methodologies such as lookbacks, lookbacks with observation shifts and lockouts.
It is not only the calculations of coupons from SOFR rates that present difficulties – the same applies to building SOFR interest rate curves for forecasting. More details are available in Calibrating the SOFR term structure and other modelling challenges, which Quantifi presented at the World Business Strategies Conference in October 2021.
The use of analytics for debt securities has come into sharper focus and has been the subject of increased investor attention. To be able to spot opportunities, institutional investors need adroit analysis at their disposal.
Leading firms are deploying the latest advancements in technology and the best expertise to assist with the generation and retention of alpha. These firms are adopting technology providers such as Quantifi, which use new technologies including data science and artificial intelligence to provide actionable insights.
Quantifi’ s integrated pre- and post-trade solutions allow market participants to better value, trade and risk-manage their exposures, and respond more effectively to changing market conditions. By applying the latest technology innovations, Quantifi provides new levels of usability, flexibility and integration. Learn how Quantifi can help your business at quantifisolutions.com
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Insana: The Fed isn’ t the sole cause of today’ s inflation | Academics, Wall Street economists, market strategists and others seem to be flooding financial media with a series of `` I told you so's '' about inflation.
Their primary argument suggests that the Federal Reserve and the federal government overstimulated the economy throughout the global pandemic, causing four-decade highs in inflation.
They say that demand is outstripping supply because there's too much money chasing plenty of goods.
Others have made similar arguments: that the world is experiencing a monetary inflation that has little to do with the supply chain disruptions that have plagued the economy for nearly two years and, instead, it's all about monetary and fiscal policies run amok.
I understand the premise – but I disagree.
Just two years ago, everyone was calling on policymakers to replace the lost income that disappeared during a lockdown that lasted far longer than anyone had expected and resulted in many dislocations in goods supply, labor supply and service sector activity.
Some have claimed they 've had the inflation argument right all along, yet I don't recall anyone accurately predicting the emergence of the Covid delta variant, which prolonged sheltering-in-place and remote work. Further, no one anticipated vaccine resistance and refusal, which added to the global and domestic death toll. Nor did anyone predict the lack of vaccines in some goods-producing nations.
For good measure, let's add the emergence of the omicron variant, the near-permanent restructuring of labor supply and the renewed lockdowns in China and Hong Kong.
Finally, not one `` inflationista '' made clarion calls about the impending war in Ukraine and subsequent sanctions that exacerbated every pandemic and post-pandemic problem we 've experienced so far in 2022.
Those setbacks were most certainly not on my 2022 bingo card.
As we 've witnessed in the recent past, a whole world of financial observers laid the blame squarely on the Federal Reserve, despite its heroic efforts to put salve on a gaping economic wound when it was needed most quickly and acutely.
Now, many are demanding the Fed rip the Band-Aid off, claiming that reducing normalized demand to meet constrained global supply is the answer to our problems.
Of course, the Fed should be normalizing policy.
But the hawks want the central bank to take back all its stimulus, virtually at once: a succession of half-point rate hikes and an immediate reduction of the Fed's nearly $ 9 trillion balance sheet.
These calls come just as the Biden administration has shifted its focus from the $ 1.75 trillion dollar `` Build Back Better '' budget to one that reportedly focuses on some sort of deficit reduction. Let's hit the brakes.
The stock market might be enjoying a bit of a bear market bounce. This is predicated on the notion that an aggressive Fed will win the war on inflation — even though it didn't start it — and that the economy and corporate profits will grow strongly enough to offset between seven and 11 rate hikes in the next 15 to 18 months.
In 38 years of covering financial markets and studying market history, I 've never seen it — certainly not under circumstances like these.
Meanwhile, a war is raging and may worsen before it gets better, as sanctions on Russia are getting tougher by the day.
The inflation hawks, some of them housed at the Federal Reserve, may well be right for all the wrong reasons.
That does not count as being correct.
Many of them made the exact same argument after the Great Financial Crisis, and they were wrong for over a decade while still others altered their views with each data point that emerged.
They may be right about inflation from a mechanical perspective, but given the persistence of supply shortages, labor disruptions, energy shocks and global instability, it's also quite possible they will soon be horribly wrong economically.
The average American may well pay dearly for a pyrrhic philosophical victory that inflation was caused by the Fed.
It's much more likely it was caused by the pandemic and Russian President Vladimir Putin.
— Ron Insana is a CNBC contributor and a senior advisor at Schroders. | business |
Moderna Will Ask FDA to Authorize Covid Vaccine for Young Kids. What to Know. | Moderna will ask the FDA to approve its Covid vaccine for young children.
Leon Neal/Pool/AFP/Getty Images
Moderna
announced early Wednesday that it will ask the Food and Drug Administration to authorize its Covid-19 vaccine for children aged six months to under six years, after interim data from a late-stage study showed that the vaccine induced a strong neutralizing antibody response in the age group.
There are currently no Covid-19 vaccines authorized in the U.S. for children under age 5. The FDA had scheduled an advisory committee meeting for early February to consider authorizing
Pfizer
’ s
( ticker: PFE) Covid-19 vaccine for babies and toddlers as young as six months, then canceled the meeting
just days before
based on new data.
The news from
Moderna
should be greeted with relief from parents of young children, many of whom have felt left behind as measures like masking, which remained in place until adults were vaccinated and boosted, are now being dropped across the U.S.
Still, while Moderna’ s new neutralizing antibody data is positive, the efficacy data the company collected on the age group during the Omicron wave is low, relative to the extraordinary figures returned in the earliest messenger RNA-based Covid-19 vaccine trials. The results could renew debates about the cost-benefit of the vaccines, particularly in an age group that is at low risk of severe disease.
Moderna ( MRNA) tested two 25 microgram doses in children aged six months to under six years, a quarter the size of the 100 microgram doses used in the company’ s adult primary shots.
also read
Cases Are Spiking Again. The Trouble Spots.
Moderna said that two doses provided a similar immune response in the pediatric age group to that seen in adults aged 18 to 25 years after their larger two-dose primary series.
The 6,900-subject trial also measured the efficacy of the vaccine at preventing infection. The company said that the trial was run largely during the Omicron wave. “ The secondary endpoint of vaccine efficacy confirms statistically significant, but lower efficacy against COVID-19 infection as expected during the Omicron wave and consistent with adult observational data, ” the company said.
Efficacy in children aged 6 months to 2 years was 43.7%, and efficacy in children 2 years to under 6 years was 37.5%.
The company said that no severe disease was observed in the trial, so efficacy against severe disease, hospitalization or death could not be calculated.
Moderna said that reactions to the drug in the age group were consistent with that seen in older groups. In children aged 6 months to two years, 17% reported a fever over 100.4 degrees Fahrenheit; 14.6% aged two years to under 6 years reported a fever over that level. Fevers over 104 degrees Fahrenheit, the company said, were only seen in a few children.
There was no myocarditis or pericarditis observed in the study. The risk of myocarditis, or heart inflammation, has been a major concern for health regulators, though rates have been highest in young adult males.
Pfizer
’ s
attempts to adapt its Covid-19 vaccine for young children have been hamstrung by dosing issues. In December, the company said that an analysis of its own trial in children aged 2 to under 5 found that immune responses were insufficient. The company is now testing a third dose in the age group, with data expected next month.
Moderna shares are down 26.5% this year, after climbing 6.5% during Tuesday’ s trading session.
Write to Josh Nathan-Kazis at
josh.nathan-kazis @ barrons.com | business |
AF Gruppen 'open’ to future decom co-ops after Fairfield collapse | Bosses at engineering firm AF Gruppen remain open minded about a future decommissioning partnership after a previous venture failed to gain traction.
Fairfield Decom was launched in 2019 by AF Offshore Decom ( AFOD), a subsidiary of the Oslo-listed company, alongside Fairfield Energy and Heerema Marine Contractors.
An integrated decommissioning company, its aim was to take over operatorship of ultra-late life North Sea assets.
Fairfield would then manage them through to retirement, delivering a “ fit-for-purpose ” model designed to reduce costs.
But despite initial optimism, it was announced last year that the company would stop trading with immediate effect after it failed to gain a foothold in the tough decommissioning market.
Graeme Fergusson, the company’ s managing director, blamed the decision on a “ discernible gap ” between the rhetoric and the reality.
He also lamented the collapse of “ numerous ” deals at the last minute.
But despite the collapse of the Fairfield, there is still support for its ‘ right assets right hands’ approach to decommissioning.
And AFOD’ s managing director Lars Myhre Hjelmeset says the division is receptive to the idea of setting up a similar partnership.
He said: “ There is no lack of ambition or innovation. We came close to shifting the market with previous partnership models, and we learnt a lot from these experiences.
“ These are now forming a revised strategy to penetrate the market but we don’ t believe this is a journey we will make on our own.
“ We firmly believe that for decommissioning delivery, a partnership model will be the key to success. Our door is firmly open to exploring the right relationship with the right party. ”
While “ no decisions ” have yet been taken, that also means “ nothing has been ruled out ”, he added.
The decommissioning sector has not had its troubles to seek in the last couple of years.
As operators scrabbled to prioritise essential work during the Covid-19 pandemic, retirement campaigns were often the first to be kicked down the road.
But with commodity prices in a healthier state, signs are beginning to emerge that decommissioning work is on the cusp of resuming.
AF Gruppen had planned to merge its offshore decommissioning operations with fellow Norwegian firm Aker Solutions.
But the move was scrapped after both parties failed to reach an agreement. | general |
Uganda Plans Policy Measures to Counter Surge in Living Costs | The information you requested is not available at this time, please check back again soon.
( Bloomberg) -- Uganda plans to institute policy measures to limit the impact that supply shocks caused by the coronavirus pandemic, the reopening of economies and Russia’ s invasion of Ukraine are having on living costs and output, Finance Minister Matia Kasaija said.
The East African nation is a net importer of crude and materials used to make basic goods such as cooking oil and soap, the prices of which have been rising due to the disruptions. Data from the Uganda Bureau of Statistics show the average price of gasoline rose 32% in February, compared with a year earlier and laundry soap 57%. Annual inflation accelerated to 3.2% in February, compared with 2.7% in the prior month.
The central bank stands ready to act to ensure inflation stays within its 5% target, according to the minister. The government is also considering regulating fuel-price movements and instituting probes into artificial supply shortages caused by unscrupulous speculators to contain cost pressures, he said in a statement on the Finance Ministry’ s website and in Twitter posts on Tuesday.
The Bank of Uganda is due to give its next interest rate decision on April 14. The key rate has been maintained at a record low of 6.5% since June 2021.
Several other countries are also adopting measures to contain inflation, with Brazil approving a bill to reduce fuel taxes and Japan is planning to introduce gasoline subsidies. Morocco meanwhile plans to cut back on exports of its mainly Europe-bound tomatoes, seeking to tame a pre-Ramadan surge in local prices.
Uganda is taking advantage of the series of global crises to promote the local manufacturing of some goods it would otherwise import, Kasaija said.
This U.S. legislation is a game changer: Curaleaf executive chairman
U.S. democratic senators to unveil draft cannabis reform bill on Wednesday: Report | general |
One-Fifth of Children in Care Self-harmed during Pandemic, Research Finds | England: New study finds that children in care are more likely to have poorer mental health than the wider population during Covid-19 pandemic
Impact of lockdowns and ensuing restrictions include a rise of poor mental health amongst children and young people, particularly those in care
At any given time, 80,000 children and young people are in care
Long waits to access appropriate mental health care still the norm
Local authorities are committed to meeting the needs of children and young people, but government funding is still lacking
Mental Health of Children and Young People in State Care in England
”, by the University of Bristol
First study to analyse the mental health of children and young people in care of local authority during the pandemic
1,300 children in care aged 11-18 were surveyed
Findings show that young people in care twice as likely to have poor mental health than the wider population
Self-harm: one-in-five children in England self-harmed during the Covid-19 pandemic
Bullying: 29% reported being bullied face-to-face or online
Access to mental health care is becoming harder:
one-in-eight children in care had their request for mental health support denied
one-quarter said they no longer had access to any mental health during the pandemic
Stability and quality of relationships with key people declined
Although 90% report to have a sibling, only 35-40% were living with a sibling
Researchers call for more and better help for every child
https: //www.theguardian.com/society/2022/mar/23/a-fifth-of-children-in-care-sel…
Support children's mental health
COVID-19 Mental Health and Psychosocial Support | general |
China’ s New Energy Plan Targets a Bigger and More Flexible Grid | The information you requested is not available at this time, please check back again soon.
Transmission towers supporting ultra-high voltage ( UHV) power lines and other high voltage power lines in front of buildings in the Chuannan area of Xining, Qinghai province, China, on Tuesday, Sept. 28, 2021. China, the world's biggest greenhouse gas emitter, can’ t meet its environmental goals without connecting its abundant sources of renewable energy with its coastal megacities. Photographer: Qilai Shen/Bloomberg, Bloomberg
( Bloomberg) -- China plans a huge increase in power capacity over the next five years, and will take steps to make its power grid more flexible in order to handle the extra volumes.
The country aims to have 3,000 gigawatts of generating capacity installed by 2025, up from 2,200 at the end of 2020, according its 14th five-year plan for energy development. The 800-gigawatt growth goal is about twice the size of India’ s entire power fleet, according to BloombergNEF data.
Much of that will come from renewables, which have the benefit of being carbon-free and incredibly cheap, but the drawback of only generating when wind is blowing and sun shining, a problem for modern economies that want electricity available all the time.
To tackle that issue, China’ s planners are upgrading a large part of the country’ s coal fleet, about 200 gigawatts in all, to be able to operate as flexible sources and balance the grid when renewable generation wanes. The country is also pushing a massive expansion of pumped-hydro storage facilities, and is continuing to build more long-distance power lines to connect the best renewable areas in the west to the power-hungry cities in the east.
Leaders are also aiming to use more of that renewable power to produce hydrogen, according to a separate document released Wednesday. The goal is 100,000 to 200,000 tons a year of cleanly produced gas by 2025.
That’ s enough to triple global green hydrogen output, but it’ s just a fraction of the 33 million tons of the gas the country produces now, mostly from fossil fuels. By 2035, China wants to have a full hydrogen ecosystem relying more and more on clean production to help fuel transportation, energy storage and industrial facilities.
Hydrogen is viewed as particularly key to decarbonizing highly polluting sectors like steel and cement-making that are difficult to simply electrify.
( All times Beijing unless shown otherwise.)
More than a million containers set to ride 6,000-plus miles of railway linking Europe to Eastern China via Russia are now having to find new routes by sea, adding to costs and threatening to worsen global supply chain chaos.
China placed its top steelmaking hub under lockdown to control a Covid outbreak, adding to supply uncertainties roiling the global industry and pushing up prices.
More extreme weather caused by rising global temperatures — compounded by geopolitical turmoil and the pandemic — is hindering China’ s effort to ensure food supplies for its 1.4 billion population.
The yuan is setting course to depreciate this year as risks to economic growth put an end to two straight years of gains.
CP Rail shares jumped after it agreed to work with an arbitrator on a contract for 3,000 workers, ending a two-day work stoppage.
Bank of Montreal has confirmed its plan to sell shares to help finance its US $ 16.3-billion takeover of Bank of the West.
Prime Minister Justin Trudeau’ s power-sharing deal with an opposition party promises to tackle the soaring cost of housing in Canada and may target real estate investment trusts that own homes. | general |
Dubai Property Market Set to Consolidate 2021 Gains, S & P Says | The information you requested is not available at this time, please check back again soon.
Morning fog shrouds residential and commercial skyscrapers in the Jumeirah Lake Towers and Dubai Marina districts of Dubai, United Arab Emirates, on Sunday, Jan. 17, 2021. Dubai is hoping one of the world’ s fastest vaccination programs and rapid testing technology will help achieve its goal of holding the Expo 2020 event this year, after the coronavirus pandemic forced a delay. Photographer: Christopher Pike/Bloomberg, Bloomberg
( Bloomberg) -- Dubai’ s property market is set to consolidate gains this year from a rebound that started in 2021, according to S & P Global Ratings, echoing property consultant Knight Frank.
“ The market is set for a moderate increase in property prices, rents, and increased sales volumes this year, ” analyst Tatjana Lescova wrote in a report. “ Geopolitical events and their economic fallout are a risk, but we expect Dubai will attract interest as a safe haven. ”
Dubai’ s property market came alive last year after it became a haven for the wealthy escaping lockdowns and for others drawn by the ease of getting vaccinated. It also provided an additional lure after a downturn shaved more than a third off values.
Dubai’ s luxury home market should keep growing after a “ spectacular turnaround ” in 2021, Knight Frank said earlier this month. Prime prices in Dubai accelerated 44% last year, sending the Middle East business hub to the top of Knight Frank’ s Prime International Residential Index 100. | general |
CONGO: Could Total lose Kombi, Likalala and Libondo for good? | The structure of the entity that will be in charge of the running Congo's only oil port is beginning to take shape. Here's what it could look like. [... ]
Having failed to take the lead on Marine XI, junior WMR might be locked out entirely. [... ]
As the end of the operating concession for the Djeno oil terminal approaches, Total is striving to ensure it retains its lead operator role and gets the right to choose its new partners. [... ]
In a letter she sent to the Wing Wah Petrochemical Joint Stock Co's managing director, Hydrocarbons director Teresa Goma condemns the `` deplorable insalubrity '' of the base camp used by Congolese nationals. [... ]
Denis Gokana, adviser to Denis Sassou Nguesso on oil matters, has succeeded in building powerful contact networks, enabling him to eclipse the exploration and production competition. [... ]
The family-run junior oil company Perenco has shut out the competition by bringing out the big guns to win the contract for the Kombi, Likalala and Libondo II fields, with former SNPC boss Denis Gokana lending a helping hand. [... ]
The coronavirus pandemic has put the brakes on the bidding round for the Kombi, Likalala and Libondo fields Total had so desperately tried to stop. [... ]
ENI has had no more luck that its competitor Total [... ]
Genevan trading house Mercuria's local branch Mercuria E & P Congo, the [... ]
Although the country's output has reached one of its all-time highs, exploration could very well step up a notch next year. Here's why. [... ]
The stakes of Total and ENI on the mature fields of Tchibouela, Tchendo and Tchibeli-Litanzi were snapped up by an unexpected trio that will operate them alongside local firms. Behind it all lay protracted negotiations in Brazzaville. [... ]
In walking away from mature fields, the French major stirred the lust of numerous oil companies already operating in the country and newcomers. [... ]
Total's imminent withdrawal from three permits in Congo-B looks set to attract a lot of buyers. [... ]
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EU Budget Chief Downplays Need for New Joint Debt Issuance | The information you requested is not available at this time, please check back again soon.
( Bloomberg) -- The European Union’ s budget chief pushed back against the idea of raising new joint debt to weather the impact of the ongoing war in Ukraine and to finance the bloc’ s defense and energy priorities.
Instead, Johannes Hahn urged member states to use more than 1 trillion euros ( $ 1.1 trillion) of EU funds available to cope with the current crisis.
“ Honestly, there is money and there is still flexibility to discuss the use of funds, ” the budget commissioner said in an interview.
EU member states are discussing ideas, including the possible issuance of more common debt, for funding two expensive, urgent needs -- accelerating its push for energy independence and bolstering military capabilities -- following Russia’ s invasion of Ukraine. National governments will also face billions of euros in unforeseen expenditures to help refugees and to support companies and households amid the spike in energy and commodities prices.
The EU’ s economy commissioner, Paolo Gentiloni, said that investing in defense may require new EU tools beyond Next Generation EU, the 800-billion-euro fund financed by EU debt to support investments and reforms in the bloc in the aftermath of the pandemic.
Additional EU issuance of common debt can not be “ off the table, ” he said Tuesday during a webinar hosted by Oxford University.
Ultimately, any decision to issue common debt would need to be approve unanimously by the 27 member states.
Hahn said he considered the debate on possible new tools a distraction and added that more solidarity among member states would come if the current EU funds are properly used and show results.
His home country of Austria is part of the coalition of frugal member states that resisted the unprecedented joint issuance of debt to cope with the Covid-19 crisis in 2020. Although commissioners are expected to leave their government’ s agenda behind, they can sometimes reflect the positions of their home countries.
Hahn stressed that the consensus among member states is to focus for now on deploying available funds, including 350 billion euros of structural funds that could be used flexibly, in addition to the Next Generation EU money.
As part of the EU funds that could be redirected, Hahn said that his team is looking at using Erasmus funds to support the schooling of Ukrainian kids in the bloc to avoid a lost generation and allow for their mothers, who make up two thirds of the refugees, to participate in the labor market.
“ But one has also to see that the European budget will not rescue the world and not even Europe, so it means a lot of national efforts too, “ he added.
Canada joins U.S., U.K. in diplomatic boycott of Beijing games
Trudeau weighs auto-content rules as next U.S. trade flashpoint
Joe Natale left Rogers with a $ 14.1M golden parachute | general |
Air Liquide Plans Billions in Hydrogen Supply Chain Investments | Leading industry and healthcare-focused gases, technologies, and services company Air Liquide announced today the launch of ADVANCE, its new strategic plan for 2025. Decarbonization-related opportunities and initiatives form a major part of the strategy, which includes plans for the company to invest €8 billion in hydrogen supply chain by 2035, and to dedicate half of its industrial investments through 2025 to the energy transition.
The company stated that ADVANCE places Sustainable Development at the heart of its strategy, and is structured around four pillars of financial performance, decarbonization, fostering progress through technological innovation, and acting for all.
Benoît Potier, Chairman and Chief Executive Officer of the Air Liquide Group, said:
“ In a world transformed by the covid epidemic, and marked by a geopolitical crisis whose dimension of humanitarian disaster is overwhelming, we have to act today but also keep preparing the future. With ADVANCE, financial performance, as well as environmental and societal performances, are combined in our objectives. ”
Last year, Air Liquide launched a set of sustainability initiatives, including targets to begin reducing absolute emissions around 2025, and set goals to reduce Scope 1 and 2 emissions by 33% by 2035 compared to 2020, with the target of reaching carbon neutrality by 2050.
Its new plan includes an acceleration in hydrogen development, including targets to triple hydrogen revenues in order to reach more than €6 billion by 2035 by investing approximately €8 billion in hydrogen supply chain by 2035. The company also aims to bring its total electrolysis capacity to 3 GW by 2030.
On the technological innovation front, the company outlined plans to focus on five new markets, including hydrogen mobility, and notably heavy-duty mobility in which low-carbon hydrogen will play a key role, electronics, healthcare, industry, and space.
To include the perspective of its stakeholders and those of society at large, the company aims to foster employee engagement and engage shareholders and communities. Targets include having 35% of women among its engineers and professionals, and 100% of its employees to benefit from care coverage and have the opportunity to engage in activities to support communities by 2025.
Potier added:
“ For Air Liquide, building the future means delivering strong financial results, as it is a condition to our durability and our ability to invest for the future; but it also means to act as a leader in decarbonization of the industry, to promote progress through technological innovation and to act for all. With ADVANCE, Air Liquide is opening a new chapter of its history by linking inseparably growth and sustainable future. ” | esg |
Markets can’ t price this level of geopolitical risk | Strategists and bankers can debate whether commodities, real estate, infrastructure, gold or crypto are the best assets to hedge against inflation.
They can talk for hours about the impact of rising rates on equity risk premia, valuations and all of that.
They can model the likely percentage point price fall on a long-duration government bond from a one basis point rise in policy rates, as easily as breathing.
They can argue that rising spreads on high-yield bonds don’ t reflect the substantial cash resources borrowers secured during the Covid panic and the high average credit quality of the broad asset class.
But when analysis suddenly runs to the chances of a nuclear war between Russia and Nato, minds go blank.
The uncertainties are too extreme and the tail risks too devastating for analysts, bankers or investors to capture.
Markets, after all, consist of people buying and selling, even if they do unleash algorithms powered by artificial intelligence to read the price signals and to automate execution of the trades.
As Russian forces massed on Ukraine’ s borders in February, most equity and bond investors ignored them, assuming even after the US government warned on February 10 that an invasion was imminent, that there would be a diplomatic solution because that would have been economically and financially rational.
In retrospect, it was an astonishing failure.
They focused instead only on the words of central bankers weighing the speed and quantum of the coming response to persistent price increases.
In a speech on March 21, Jerome Powell, pro tempore chair of the Federal Reserve, reflecting on how the rise in inflation has been much greater and more persistent than “ forecasters ” had expected, pointed out: “ The inflation outlook had deteriorated significantly this year even before Russia's invasion of Ukraine. ”
Underlining that while Russia is a leading energy exporter, Ukraine is also a key producer of wheat and of neon gas, which is used in the production of computer chips, Powell admitted: “ There is no recent experience with significant market disruption across such a broad range of commodities. ”
In addition to the direct effects from higher global oil, food, metals and other commodity prices, Powell said: “ The invasion and related events are likely to restrain economic activity abroad and further disrupt supply chains, which would create spillovers to the US economy. ”
Investors didn’ t want to hear about the war. They turned their attention to his statement that the Fed might move aggressively and raise the federal funds rate by more than 25 basis points at a meeting or meetings. Markets are starting to price in 50bp hikes in May and possibly June.
The read of financial markets is that the war will bring what the war will bring. It is possible to model for the kind of relief rally that took hold in March if there is a surprise early resolution, and even for prolonged fighting contained within Ukraine. But a war with Nato is too much to contemplate.
“ The volatility we have seen since the war began reflects very small changes in how investors see the probability of coming to such extreme outcomes, ” one banker tells Euromoney. “ It does not even come close to actually pricing in those outcomes. ”
The big news is that rates are going up, perhaps far and fast. One month into the war and markets seem almost to be ignoring it.
Instead, by late March, financial markets are simply folding this murderous assault on a sovereign nation back into the inflation story.
In the month since Russia’ s attack, financial markets have been a little volatile, while most of the action has been in oil markets. The oil price rose from $ 80 at the start of this year to $ 133 early after the invasion, before settling back to around $ 120 on March 23. That was ahead of the meeting between US president Joe Biden and European leaders that is expected to result in additional sanctions.
There have been big intraday swings on any suggestion of increased production from Opec. It would seem rational that the higher price will spur increased production somewhere. It is also possible that slowing economic growth in leading importers will curb demand, as China locks down certain manufacturing centres once again in pursuit of its zero-Covid policy.
The International Energy Agency – set up in 1973, let’ s remember, after a previous oil-price crisis – issued a 10-point plan on March 18. “ As a result of Russia’ s appalling aggression against Ukraine, the world may well be facing its biggest oil supply shock in decades, with huge implications for our economies and societies, ” said IEA executive director Fatih Birol.
Recommendations include working from home three days a week, which no longer seems radical, given the recent rise of Covid cases around the world; avoiding business travel where other options exist, such as Zoom, presumably; making public transport cheaper; and reducing speed limits on highways.
There has been a so far mild correction in clearly over-valued equities, although one that disguises at times considerable intraday volatility.
The NYSE Fang+ index of leading US technology stocks was down 12.7% for the year to date up to March 22, after a relief rally had brought it back from a 28% fall for the year up to March 14.
“ Just before the war, markets began correcting, starting with the most expensive and longest duration assets, that were the leaders in the last cycle, ” Peter Oppenheimer, chief global equity strategist at Goldman Sachs, briefed on March 14, explaining why the biggest falls had come in baskets of unprofitable technology stocks.
The expensive US equity market is weighted towards technology and growth: Europe towards value, which is why it is cheaper. At the start of the year, there was a rotation into value and Europe. That has since stalled.
Goldman Sachs has cut its 2022 growth forecast for Europe from 4% to 2.5%. And while 2.5% sounds healthy, that comes from base effects and the recovery from Covid lockdowns.
“ Europe is flirting on the edge of recession, and it wouldn’ t take much to push it over, ” Oppenheimer says, “ for example, if we had a cessation of gas supply to Europe. ”
The S & P500 index was down 6.2% for the year to March 22. The EuroStoxx 600 was down 6.5%.
“ We still see a path to markets ending the year higher, ” Mark Haefele, chief investment officer, UBS Global Wealth Management, said on March 23, referring to Powell’ s speech two days before rather than to the war. “ Although there is widespread criticism, it’ s too early to take the view that the Fed won’ t be able to negotiate the fine line of reducing inflation without derailing growth. ”
Sell-side analysts say that this is a time to actively manage underweights and overweights and take a neutral position on equity market risk, rather than allocating to cheap, passive market beta.
Of course, as new issues, IPOs and M & A fees shrink, that kind of active management chiefly benefits the sell-side.
A brief flight to safety in government bonds took the yield on the 10-year Treasury note down from 2% on the eve of the invasion to 1.725% at the start of March, followed by a speedy sell off, as attention turned back to dot plots and quantitative tightening. The 10-year hit 2.4% on March 23. The yield on two-year notes had risen 75bp this year to March 23, with the one-year forward rate for two-year Treasuries reaching 2.78%.
There have been extreme stresses in particular financial markets that required speedy resolution, for example in FX swaps with legs in Russian roubles which became almost impossible to deliver. Facing the potential for billions of dollars in losses, the world’ s biggest banks came together to agree compression of these trades to reduce settlement amounts.
Goldman Sachs points out that financial conditions tightened noticeably in the days immediately following the start of the Russian invasion on February 24, with its euro-area financial conditions index rising by almost 40bp. By March 23, however, we had seen an easing in financing conditions once again, driven largely by the rebound in stock indices and an improvement in the trade-weighted euro exchange rate.
The lingering effects seem to be felt most in Austria, Italy and Finland.
Electricity usage data does not yet suggest a decline in manufacturing, even though worries are growing that shortages of components might disrupt car-making, for example.
While financial markets gyrate, three weeks into the war, three million people had already fled the merciless shelling of civilians in Ukraine’ s cities, with the OECD predicting that at least as many again would soon follow them and maybe millions more in a wave of refugees not seen in Europe since World War II.
With Poland already taking 1.8 million of the first to leave, government spending must increase to cope, just as debt service costs are rising. Could there be six or seven million refugees, 10 million, maybe more? No one knows.
The latest OECD economic estimates released on March 17 are bleak, but they don’ t look so very alarming. It suggests global economic growth could be more than one percentage point lower this year than it projected before the conflict, and 1.5 percentage points lower in Europe.
Goldman Sachs estimates that if Russian gas stops flowing completely to Europe, the economic hit this year could be a further 2.5 percentage points. Even without that, it has cut its profit growth forecast for European companies to 2% in 2022, compared with 8% before the war. It has cut its profit growth forecast for the S & P500 to 5%, also from 8% previously.
Meanwhile, the OECD says inflation could be higher than it would have been if war had not broken out, by at least a further 2.5 percentage points on aggregate across countries.
But with developed-world central banks already so far behind the curve on inflation, they risk all credibility if they pivot back from their recent hawkish turn and continue to accommodate, even as wheat prices double, fertilizer prices are up 80% and it becomes obvious that, at the very least, the poorest in developed markets as well as in emerging markets will need some protection from rising food and energy costs.
Price rises will crimp household budgets and reduce demand for goods and services, while rising input prices, including labour costs, also eat into corporate margins and reduce profits.
The valuation multiple that investors place on those declining profits is also set to shrink. Higher discount rates imply a much lower net present value on future corporate earnings.
“ We have been surprised by the lack of reaction of financial markets, which might be part of the overall uncertainty, ” says OECD chief economist and deputy secretary-general Laurence Boone.
The OECD advocates higher government spending, including perhaps EU burden sharing to support neighbouring countries taking the most refugees from Ukraine and means-tested support to spare vulnerable households from the worst of rising food and energy prices.
Looking further ahead, the war emphasizes the urgent need to mobilize private and public investment in energy efficiency and clean energy so as to reduce Europe’ s dependence on Russian natural gas and oil.
Strategists at Bank of America calculate that annual European defence spending could rise by between €150 billion and €200 billion. They add that inflated gas and energy prices mean that high energy-intensive industries could be priced out and will need to leave Europe. For local ones ( such as cement), it means more margin pressure and price rises.
They suggest that the Russia-Ukraine conflict will have far-reaching effects that look set to redefine many megatrends in Europe: “ We believe it is one of those rare events in history that will reshape geopolitics, societies and markets. Europe will transition to be more independent and redefine many of its sectors and economic paradigms. ”
The sell side is now starting to suggest some longer-term winners to investors, for example in defence and energy transition, as well as losers in retail and real estate.
In the short run, “ should financial markets become more shaken, then central banks do have a role in stabilizing them, ” Boone says.
Guy Wagner, chief investment officer at Banque de Luxembourg Investments, notes that the factors behind the inflation of financial asset prices over the last few decades are now starting to reverse.
Most obviously, the post-Cold War peace dividend is disappearing. The pandemic and now war in Ukraine have shown the dangers of an economic model based on efficiency at the expense of security. The era of globalization is giving way to an era in which economic and commercial relations will once again be conditioned by national security concerns.
He writes: “ The downward movement in interest rates that began in the early 1980s has come to an end. All this at a time when valuation multiples are high and irresponsible central bank policies have encouraged a massive move into risky assets. ”
That is why it might be wise to use the recent recovery in markets to buy some insurance against those unquantifiable tail risks. It is not just that markets moved back up in mid March, volatility came down, making options cheaper.
Goldman pointed out on March 22 that while three-month implied volatility is historically high, since the VIX peak on March 7, it has come down by more than three standard deviations for the main equity indices and for European assets where uncertainty risk premia were particularly elevated.
The relief rally is certainly at odds with its read of downside risks, while the firm also sees little upside based on its economists ' base case.
Before the war, investors might have hoped that rising growth would bail out markets from the hit of rising rates to combat inflation. The war will increase inflation and lower growth. That’ s a bad mix.
And if this is a radically new cycle, we go into it with stocks still at very high valuations, nominal bond rates still far below neutral, and credit spreads not far above historic tights.
Oppenheimer says: “ We had been used to a very deflationary world for a very long time. After the global financial crisis, banks de-levered their balance sheets, companies reduced debt and investors focused on growth because it was so scarce. Now, margin-sustainability is going to be much more important for investors. ”
In its assessment on March 21, Goldman reported that the initial investor pessimism that greeted the outbreak of war had faded materially.
On March 23, Bjarne Schieldrop, chief commodities analyst at SEB, pointed out that while the IEA and others have already warned about looming losses of oil supply, the market isn't really pricing it, hoping that Russian oil will keep flowing under the radar to India and China.
Brent averaged $ 100to $ 120 a barrel from 2011 to 2014 during the Arab spring. In today's money, that is around $ 120 to $ 145 a barrel. And the world coped.
But this could be worse. “ Continued curbs have the potential to drive oil to $ 200 per barrel, ” writes Schieldrop, or even higher. It can’ t do that without “ breaking the global economy ”.
Perhaps there’ s a reason why the people paid to manage our money live in their metaverse of models.
Markets have looked resilient so far. But confidence hangs by a thread. | general |
Breakeven still distant for Oxford Nanopore | Following the reporting of its first annual results as a public company, Oxford Nanopore Technologies’ market cap now sits at £3.5bn. This is down markedly from the £4.8bn valuation it boasted in late September after its first day on the London stock exchange, but still arguably out of proportion with its financial performance. In 2021 the UK company had total sales of £133.7m ( $ 177.3m), up 17% from 2020 and above the guidance it provided in January. Revenues from Oxford Nanopore’ s life science research tools, the core of its sequencing business, nearly doubled from 2020’ s figure. This more than made up for a precipitous 86% drop in sales of its Covid tests; these are mainly sold in the UK, where testing has been wound down considerably over the past year. Emboldened, the group raised its 2022 sales guidance to around £145-160m. But its net loss nearly trebled year-on-year, and Berenberg analysts do not see Oxford Nanopore reaching profitability until 2026: they have pencilled in profit of £31m for that auspicious year.
The chart below is interactive. | general |
Sunak Cuts U.K. Growth Forecast as Ukraine War, Living Costs Hit | The information you requested is not available at this time, please check back again soon.
Rishi Sunak said the war in Ukraine poses a risk to the economic recovery, causing U.K. inflation to soar and growth to slow in 2022, as he promised to shield ordinary Britons from a tightening squeeze on living standards.
Delivering his Spring Statement to Parliament on Wednesday, the Chancellor of the Exchequer announced official forecasts downgrading expected growth this year to 3.8%, from a previous estimate of 6%, as the cost of of living crisis begins to bite. Debt interest costs are forecast to hit a record 83 billion pounds ( $ 110 billion) this fiscal year, he said.
He pledged to cut fuel duty by 5 pence a liter until March 2023 -- the biggest ever cut in the levy. He also scrapped sales tax on domestic energy efficiency measures, and doubled to 1 billion pound a program of grants for struggling Britons.
https: //t.co/4G2PTNy30b pic.twitter.com/BVqVHLqLr9
Sunak is trying to balance his oft-stated desire to bring order to the public finances with pledges to begin cutting taxes and increasing demands from across the political spectrum to help ordinary Britons struggling to cope with surging inflation.
The chancellor faces calls to protect households and firms from energy and food bills, which were already soaring in the aftermath of the coronavirus pandemic, and now face further upward pressure as a result of the war in Ukraine. Before the statement, he promised to would deliver “ security for working families as we help with the cost of living. ”
The forecasts, from the Office of Budget Responsibility, showed growth will be 1.8% in 2023 and 2.1% in 2024, from estimates of 2.1% and 1.3% in October. Inflation will average 7.4% this year, Sunak said.
The fiscal update comes on the day Britain’ s inflation rate surged to a new 30-year high of 6.2%, staying on an upward trajectory that some economists predict could see the measure hit double digits later this year. The surge in prices has exceeded the forecasts of the Bank of England and Treasury, fanning concerns that shortages of workers following the end of the pandemic, along with the war in Ukraine, will lead to inflation spiraling further upward.
The inflation figures are also raising speculation that the Bank of England will drive up interest rates more in the coming months, further tightening budgets for millions of households. Money markets are betting the key rate, now at 0.75%, will hit 2% by the end of this year.
A new report from Capital Economics is warning the expected magnitude of interest rate increases from the Bank of Canada could “ topple ” the domestic housing market.
The Trudeau Liberals and federal NDP's shared ambition for a national pharmacare program could shave at least two per cent off annual earnings for owners of some top pharmacy chains, according to an analyst.
Global stocks drifted lower Wednesday as the bond market stabilized from an unprecedented rout. | general |
Study finds COVID-19 may double severe complications in pregnancy | A Kaiser Permanente analysis of pregnant patients who tested positive for COVID-19 found more than double the risk of severe maternal morbidity associated with coronavirus during pregnancy.
The study found a more than double risk of poor outcomes, including preterm birth, venous thromboembolism ( blood clot), and severe maternal morbidity, which includes conditions such as acute respiratory distress syndrome and sepsis.
The research was published in JAMA Internal Medicine March 21. An analysis of records for 43,886 pregnant individuals during the first year of the pandemic found that the 1,332 who had a COVID infection during pregnancy had more than double the risk of negative outcomes compared with individuals without the virus.
`` These findings add to the growing evidence that having COVID-19 during pregnancy raises risks of serious complications, '' commented lead author Assiamira Ferrara, MD, PhD, a senior research scientist and associate director of the women's and children health section in the Kaiser Permanente Division of Research.
`` Coupled with the evidence that the COVID-19 vaccines are safe during pregnancy, these findings should aid patients in understanding the risks of perinatal complications and the need for vaccination, '' said Dr Ferrara. `` This study supports the recommendation for vaccination of pregnant individuals and those planning conceptions. '' | tech |
MALI: Military determined to retain control of transitional parliament | On 16 November, the committee monitoring application of the 2015 Algiers peace agreement will hold its first meeting since the 18 August putsch under the watchful eyes of the United Nations and the European Union. [... ]
Mali's presidential election isn't due until the first quarter of 2022 but that hasn't stopped Moussa Mara, who served as prime minister under ousted president Ibrahim Boubacar Keita, from getting the ball rolling and activating his networks, not just in Bamako, but also in Paris. [... ]
Despite being Ibrahim Boubacar Keïta's leading collaborators, former intelligence chief Moussa Diawara and the deposed head of state's oldest son, Karim Keïta, have been able to slip quietly into exile. Africa Intelligence reveals their activities before and after IBK's fall from power and detail the ambiguous roles they played in the weeks leading up to the coup. [... ]
After the coup d'état of 18 August in Mali, the UN Panel of Experts for Mali was tasked with gauging the new authorities ' will to implement the Algiers accord. In the event of obstruction, those now in power in Bamako know that the United Nations is serious about imposing sanctions. [... ]
Umaro Sissoco Embalo was the only foreign head of state to attend the inauguration of Mali's transitional president Bah N'Daw on 25 September. Embalo is trying to strengthen his relationship with Bamako - with Malian businessman Aliou Boubacar Diallo's help. [... ]
As the fallout of the 18-August coup continues to rock the country, the head of the peacekeeping operation in Mali, Mahamat Saleh Annadif, should have his mandate extended until April. But the debate on who will succeed him is back on and Washington is still pushing for David Gressly. [... ]
Already negatively impacted by the Covid-19 pandemic, the prospects for fertiliser sales in Mali, one of the leading markets in West Africa, have deteriorated further. The recent coup d'état has increased uncertainty among international commodities producers and local blenders. [... ]
With only days to go before the expected appointment of the transitional president, CNSP officers are still divided over who should have the job. The coup-makers are divided between former generals Moussa Sinko Coulibaly and Mahamane Touré. [... ]
Less than two months after his tour of West Africa, Turkish foreign affairs minister Mevlüt Çavusoglu was back in the region last month to meet with the Mali coup leaders. He hopes to sponge off France's plans but also to consolidate Turkish industrial projects in the country. [... ]
As ECOWAS puts pressure on the putschists to appoint a civilian to lead the transition period, two names keep popping up. Expect a compromise in the coming days. [... ]
Operation Newcombe, the British deployment to Operation Barkhane, is gathering information on the political and social situation in Mali to better understand the evolving security environment in the aftermath of the coup that led to President Ibrahim Boubacar Keïta's resignation. [... ]
Ever since the military seized power in Mali on 18 August, Morocco has been building ties with the coup leaders as Algiers, wanting to retain its influence in Bamako, looks on with a wary eye. [... ]
The coup leaders have been reaching out to prominent figures who had already cut off ties with President Keita and could be ready to lead the transitional government. Africa Intelligence can reveal what the new line-up could look like. [... ]
After being forced to resign by part of the army on 18 August, the former Malian president could be allowed to go to the United Arab Emirates, where he has been receiving medical care for months. [... ]
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Afghan girls head back to school as Taliban end ban | Hi, what are you looking for?
Groups of girls headed back to class in the Afghan capital Wednesday after Taliban authorities announced the reopening of secondary schools.
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Groups of girls headed back to class in the Afghan capital Wednesday after Taliban authorities announced the reopening of secondary schools, more than seven months after seizing power and imposing harsh restrictions on the rights of women to be educated.
All schools were closed because of the Covid-19 pandemic when the Taliban took over last August — but only boys and some younger girls were allowed to resume classes two months later.
The international community has made the right to education for all a sticking point in negotiations over aid and recognition of the new regime, with several nations and organisations offering to pay teachers.
The education ministry said schools would reopen Wednesday across several provinces — including the capital Kabul — but those in the southern region of Kandahar, the Taliban’ s spiritual heartland, will not open until next month. No reason was given.
On Wednesday morning AFP teams saw several groups of girls enter school grounds in the capital.
Hundreds had arrived by 7:00 am ( 0230 GMT) at Zarghona High School, one of the largest in the capital, according to an AFP reporter.
At Rabia Balkhi School, also in the capital, dozens of girls had gathered at the gate waiting to be let in.
Schools in other provinces such as Herat and Panjshir were still to open.
The ministry said reopening the schools was always a government objective and the Taliban were not bowing to pressure.
“ We are not reopening the schools to make the international community happy, nor are we doing it to gain recognition from the world, ” said Aziz Ahmad Rayan, a ministry spokesman.
“ We are doing it as part of our responsibility to provide education and other facilities to our students, ” he told AFP.
The Taliban had insisted they wanted to ensure schools for girls aged 12 to 19 were segregated and would operate according to Islamic principles.
– ‘ What will be our future?’ –
Some pupils said they couldn’ t wait to get back — even if it meant covering up according to a strict Taliban dress code.
“ We are behind in our studies already, ” said Raihana Azizi, 17, as she prepared to attend class dressed in a black abaya, headscarf and veil over her face.
The Taliban have imposed a slew of restrictions on women, effectively banning them from many government jobs, policing what they wear and preventing them from travelling outside of their cities alone.
They have also detained several women’ s rights activists.
Despite the schools reopening, barriers to girls returning to education remain, with many families suspicious of the Taliban and reluctant to allow their daughters outside.
Others see little point in girls learning at all.
“ Those girls who have finished their education have ended up sitting at home and their future is uncertain, ” said Heela Haya, 20, from Kandahar, who has decided to quit school.
“ What will be our future? ”
It is common for Afghan pupils to miss chunks of the school year as a result of poverty or conflict, and some continue lessons well into their late teens or early twenties.
Human Rights Watch also questioned what motivation the girls would have to study.
“ Why would you and your family make huge sacrifices for you to study if you can never have the career you dreamed of? ” asked Sahar Fetrat, an assistant researcher with the group.
The education ministry acknowledged authorities faced a shortage of teachers — with many among the tens of thousands of people who fled the country as the Taliban swept to power.
“ We need thousands of teachers and to solve this problem we are trying to hire new teachers on a temporary basis, ” the spokesman said.
With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.
The plane has been chartered by Swiss millionaire Guido Fluri.
India has abstained on UN resolutions censuring Russia and continues to buy Russian oil and other goods.
Dozens of mourners trudged through the snow in a Siberian village to pay last respects to Sergei Sokolov, a young Russian serviceman killed in...
Mexican President López Obrador is critical of the U.S. for its quick action in approving aid to Ukraine.
COPYRIGHT © 1998 - 2022 DIGITAL JOURNAL INC. Digital Journal is not responsible for the content of external sites. Read more about our external linking. | general |
SME lending returned to pre-pandemic levels in 2021, but regions still playing catch-up to London, says latest British Business Bank report | A new report from the British Business Bank ( BBB) has found that SME lending in the UK returned to pre-pandemic levels in 2021, writes TFG’ s Marcus Lankford.
A new report from the British Business Bank ( BBB) has found that SME lending in the UK returned to pre-pandemic levels in 2021, writes TFG’ s Marcus Lankford.
This month, the British Business Bank ( BBB) released its 2022 Small Business Finance Markets Report.
The report offers a health check on UK small businesses using a range of metrics, from uptake of finance and types of lenders used, to the issuing of equity and the growth of investment in sustainability activities.
For those who are unfamiliar, the BBB is a UK government economic development bank. Its mandate is to build sustainable growth and prosperity in the UK; to enable the transition to a net-zero economy; and to improve access to finance for small and medium-sized enterprises ( SMEs).
Historically, SMEs are underserved by the finance sector, and often don’ t have the same characteristics that banks and other lenders like about large corporations.
This includes lengthy credit histories, detailed audits and financial accounts, and a large portfolio of assets for collateral on debts.
For start-ups, whose business models are unproven and yet to be deemed creditworthy, these problems are even more pronounced.
In 2021, lending to SMEs in the UK returned to pre-pandemic levels. A total of £57.7 billion was lent to UK SMEs in 2021, which is 1% higher than in 2019.
Interestingly, however, the 2021 total was 45% lower than in 2020, when £104.8 billion was loaned to UK SMEs.
As you may have guessed, the total during 2020 was unusually high, due to small businesses making use of the UK’ s state-backed, coronavirus loan facilities.
After the end of the coronavirus loans facility in March 2021, an interesting trend to emerge was that SMEs began to move away from large banks for their finance needs.
Instead, challenger and specialist banks made up 51% of lending in 2021, compared with 32% in 2020.
According to the BBB’ s report, the balance sheets of small businesses in the UK are mostly recovering from the debt-load acquired from new loans originated during the pandemic.
This finding is further supported by the Bank of England’ s ( BoE) strong economic growth forecast for 2022.
Another promising piece of news is that debt repayments covered a smaller proportion of SME turnover as 2021 went on.
However, it’ s also important to note that in March 2021, small business debt stock was 30% higher than pre-pandemic levels, highlighting a huge obstacle to overcome. Interestingly, small business deposits were at record highs in 2021.
BBB’ s survey also found that less than half of small businesses used their full coronavirus loan facilities – this suggests that a large number of businesses are financially robust, and equipped to invest in future operations.
But SMEs in different sectors are under different levels of financial stress, and unfortunately, some sectors will find it more difficult to obtain future financing now the coronavirus loan facilities have been phased out.
Those that will suffer most are the hospitality and transport sectors, which were also the hardest hit by the pandemic.
For example, the BBB survey found that the hospitality and transport sectors self-reported the highest level of concern for loan repayments. In addition, BoE agents have reported that lenders are cautious about investing in these sectors.
Equity investment is an alternative way for SMEs to access finance. In the first three quarters of 2021, £14 billion was invested in equity finance, a 130% increase on the £6.1 billion invested in equity over the same period in 2020.
Although the overall increase in equity investments is good news, a closer look at the figures also highlights the regional inequalities in access to finance in the UK.
London companies received 70% of the total value of equity investments in the UK, while the rest of the country received only 30%.
Looking at access to finance from a supply and demand perspective, both were lower outside of London in 2021.
Supply is lower in regions outside London, with fewer private debt and equity investors. This is influenced by the geographical location of the investor and businesses.
The BBB Regions and Nations Tracker found that 82% of equity investment deals were made by investors located within two hours of the receiving business.
The lower demand for finance outside of London is also due to attitude towards finance. SMEs outside of London are less likely to want to use financing; they have a lower awareness of the variety of options available; and they are less likely to employ financial experts within teams.
Given this backdrop, the UK government is attempting to improve access to finance in regions outside of London.
The BBB has specific regional funds available to SMEs. The Northern Powerhouse Fund recorded £300 million in direct investment in 2021, and the Midlands Engine Investment Fund recorded £150 million in direct investment in 2021.
This year, the government will increase its funding for BBB programmes, following the Autumn Budget and Spending Review at the end of 2021.
2021 was a year marked by talk of sustainable finance, driven not least by COP26 in November, around which many banks and businesses announced net-zero pledges and sustainable finance plans.
This year, Barclays announced that it is developing products offering social and environmental financing, and is hoping to issue at least £150 billion in social and environmental financing by 2025.
Among SMEs, 47% see reducing carbon emissions and environmental impact as a priority, and 22% say they would access finance for this. This compares with 71% who see increasing sales as a high priority.
There is a gap between words and action, however, with only 11% of small businesses actually having accessed external finance to build sustainability into their business.
The BBB report found that ethnic minority-led businesses are more open to finance and business growth than white-led businesses. However, ethnic-minority-led businesses have higher rejection rates.
Between Q3 2020 and Q2 2021, for example, 18% of minority-led businesses were rejected finance, compared with 10% of white-led businesses.
Overall, BBB found that both ethnic-minority and women-led businesses are underserved in the finance sectors, while recommending that lenders should look at the reasons behind this and assess the best way to close the financing gap.
Ethnic minority- and female-led businesses’ reasons for not applying for finance include fear of rejection, lack of knowledge of appropriate finance availability and options, length of decision time, and hassle.
Open banking and alternative finance can play a role in closing these funding gaps.
The report found that there are 330 regulated firms in open banking, alongside 230 third-party providers ( fintech services that can send and receive payments for customers). Meanwhile, 90 payment service providers are a part of open banking services, covering 95% of current accounts.
The BBB reported that half of SMEs use services powered by open banking in some way.
In alternative finance, marketplace lenders and peer-to-peer finance funded £2.6 billion in 2020, up 6.5% from £2.4 billion in 2019.
The sustained lending levels were due to the availability of the Coronavirus Business Interruption Loan Scheme ( CBILS) and the Bounce Back Loan Scheme ( BBLS) through the platforms.
The platforms were yet to release full figures during the writing of the report; however, BBB suggest that their estimates predict similar lending levels to that of 2020. This is even with the CBILS and BBLS having been phased out by March 2021.
The report offers reasons to be optimistic about the future of access to finance for SMEs, but there are nonetheless still many obstacles and barriers to be tackled.
In sum, there are yields to be made in SME finance: the money just needs to reach the right places. | general |
Tenaya Therapeutics Reports Fourth Quarter and Year-End 2021 Financial Results and Provides Business Updates | Strengthened Leadership Team with the Additions of Sunita Sethi as Senior Vice President of Regulatory Affairs and Naymisha Patel as Senior Vice President of Quality
SOUTH SAN FRANCISCO, Calif. -- ( BUSINESS WIRE) -- Tenaya Therapeutics, Inc. ( NASDAQ: TNYA), a biotechnology company with a mission to discover, develop and deliver potentially curative therapies that address the underlying causes of heart disease, today provided business and program updates, and reported financial results for the fourth quarter and full year ended December 31, 2021.
“ In 2021, we achieved important milestones across research, preclinical, manufacturing and corporate operations, in line with our commitment to advance the treatment of heart disease with disease-modifying therapeutics. Our progress continues in 2022 with three therapeutic candidates advancing towards the clinic, and with increasingly robust manufacturing and clinical development capabilities, ” said Faraz Ali, Chief Executive Officer of Tenaya. “ With the appointments of Dr. Sethi and Ms. Patel, we continue to add depth, breadth, and diversity to our leadership team to support our transition into a clinical-stage company. ”
Business and Program Updates
Tenaya continues to strengthen its leadership team with the following appointments and promotions.
Full Year 2021 Financial Highlights
About Tenaya Therapeutics Tenaya Therapeutics is a biotechnology company committed to a bold mission: to discover, develop and deliver curative therapies that address the underlying drivers of heart disease. Founded by leading cardiovascular scientists from Gladstone Institutes and the University of Texas Southwestern Medical Center, Tenaya is developing therapies for rare genetic cardiovascular disorders, as well as for more prevalent heart conditions, through three distinct but interrelated product platforms: Gene Therapy, Cellular Regeneration and Precision Medicine. For more information, visit www.tenayatherapeutics.com.
Forward Looking Statements This press release contains forward-looking statements as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release that are not purely historical are forward-looking statements. Words such as “ expects ” “ and “ will, ” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, among other things, statements regarding the expected timing of IND applications for TN-201, TN-301 and TN-401, statements regarding the cGMP manufacturing facility, the sufficiency of projected cash flows, and statements by Tenaya’ s chief executive officer. The forward-looking statements contained herein are based upon Tenaya’ s current expectations and involve assumptions that may never materialize or may prove to be incorrect. These forward-looking statements are neither promises nor guarantees and are subject to a variety of risks and uncertainties, including but not limited to: risks associated with the process of discovering, developing and commercializing drugs that are safe and effective for use as human therapeutics and operating as an early stage company; Tenaya’ s ability to develop, initiate or complete preclinical studies and clinical trials, and obtain approvals, for any of its product candidates; the timing, progress and results of preclinical studies for TN-201, TN-301, TN-401 and Tenaya’ s other programs; Tenaya’ s ability to raise any additional funding it will need to continue to pursue its business and product development plans; negative impacts of the COVID-19 pandemic on Tenaya’ s manufacturing and operations, including preclinical studies and planned clinical trials; the timing, scope and likelihood of regulatory filings and approvals; the potential for any clinical trial results to differ from preclinical, interim, preliminary, topline or expected results; Tenaya’ s manufacturing, commercialization and marketing capabilities and strategy; the loss of key scientific or management personnel; competition in the industry in which Tenaya operates; Tenaya’ s reliance on third parties; Tenaya’ s ability to obtain and maintain intellectual property protection for its product candidates; general economic and market conditions; and other risks. Information regarding the foregoing and additional risks may be found in the section entitled “ Risk Factors ” in documents that Tenaya files from time to time with the Securities and Exchange Commission. These forward-looking statements are made as of the date of this press release, and Tenaya assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
TENAYA THERAPEUTICS, INC. Condensed Statements of Operations ( In thousands, except share and per share data) ( Unaudited)
Three Months Ended December 31,
Year Ended December 31,
2021
2020
2021
2020
Operating expenses:
Research and development
$
20,953
$
8,364
$
54,393
$
31,099
General and administrative
5,211
1,958
18,413
7,813
Total operating expenses
26,164
10,322
72,806
38,912
Loss from operations
( 26,164)
( 10,322)
( 72,806)
( 38,912)
Other income ( expense), net:
Interest income
67
5
108
87
Change in fair value of convertible preferred stock tranche liability
—
—
—
75
Other income ( expense), net
( 54)
( 1)
( 23)
355
Total other income ( expense), net
13
4
85
517
Net loss
$
( 26,151)
$
( 10,318)
$
( 72,721)
$
( 38,395)
Net loss per share, basic and diluted
$
( 0.63)
$
( 9.86)
$
( 4.10)
$
( 39.50)
Weighted-average shares used in computing net loss per share, basic and diluted
41,253,720
1,046,790
17,734,166
972,091
TENAYA THERAPEUTICS, INC. Condensed Balance Sheets ( In thousands) ( Unaudited)
December 31,
December 31,
2021
2020
ASSETS
Current assets:
Cash and cash equivalents
$
38,129
$
128,535
Investments in marketable securities
213,171
—
Prepaid expenses and other current assets
4,058
1,429
Total current assets
255,358
129,964
Property and equipment, net
43,020
17,185
Operating lease right-of-use assets
11,685
—
Restricted cash, non-current
547
547
Other non-current assets
3,579
465
Total assets
$
314,189
$
148,161
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY ( DEFICIT)
Current liabilities
21,774
5,041
Deferred rent and other lease liabilities, non-current
—
3,662
Operating lease liabilities, non-current
13,707
—
Other non-current liabilities
182
19
Convertible preferred stock
—
220,754
Stockholders’ equity ( deficit)
278,526
( 81,315)
Total liabilities, convertible preferred stock and stockholders’ equity ( deficit)
$
314,189
$
148,161
| general |
China's demand for Indian pellets seen dwindling amid pandemic, geopolitical woes | In this week's Market Movers Americas, presented by Jeff Mower: * US Gulf of Mexico offshore output...
The Chinese consumption of imported Indian pellets is unlikely to recover in the coming months after falling end-February, as the escalating Russia-Ukraine conflict and spike in domestic COVID-19 cases exacerbate demand concerns at a time when domestic steel mills struggling with weak margins are procuring cautiously.
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China imported 327,000 mt and 1.25 million mt of Indian pellets in January and February, respectively, a multifold jump compared to 105,000 mt in December 2021, China customs data showed, as weather constraints kept domestic concentrates supply limited. Sintering restrictions amid Winter Olympics in February further supported demand for direct feed like lump and pellets.
Prices for both 63% and 65% Fe Indian pellets jumped nearly $ 20- $ 30/dmt by the end of February, according to S & P Global Commodity Insights data.
However, the demand outlook appears bleak amid the ongoing Russia-Ukraine war and surging pandemic in China, according to market sources.
Following Russia's invasion of Ukraine, buyers of Indian pellet cargoes looked to sell low alumina pellets into Europe, as they expected supply bottlenecks due to the war.
Since the invasion began, around six cargoes were sold on an FOB basis to international traders, at prices way beyond the reach of Chinese market participants. There were other transactions heard in the market as well, direct from Indian producers to steel mills in Europe.
On the Chinese front, demand from end-users failed to pick up as expected, and most end-users were heard still procuring at Chinese portside on a need-to basis.
Amid sharp volatility in the 62% Fe iron ore prices and weaker finished steel demand, Chinese steelmakers started to feel the pinch, with margins narrowing starting mid-March. Mill sources said that margins for reinforcing bars and hot-rolled coils ranged around 100 Yuan/wmt and 300 Yuan/wmt, respectively, with some seeing even lower returns when portside prices rose significantly.
As a result, demand for low and heavily discounted medium-grade fines strengthened at portside, especially for fines like Super Special Fines, Jimblebar Fines, SP10 Fines and Roy Hill Fines etc. Several sources noted that with mills focusing on cost-effectiveness, using 63% -66% Fe domestic concentrates and low- to medium-grade fines blend helped lower overall raw material costs amid resilient coke prices in China.
Steel mills also showed stronger preference towards using 65% Fe domestic pellets compared to 63% Fe Indian pellets due to their higher Fe content, lower alumina impurities and less quality variation, sources said.
`` We have Indian pellet stocks at port, but there are no bids at all. Low alumina domestic pellets are being offered at around 1,500 Yuan/dmt inclusive of tax and transportation charges, while 63% -64% Fe, 3% -3.5% Alumina Indian pellets are being offered at around Yuan 1,400-1,440/wmt, excluding transportation charges, '' a Chinese trader said. `` We are at a point where there's lots of cargoes in a drying market. Demand is that bad, '' another Chinese trader said.
With the current worsening COVID-19 situation in China, some mills were forced to operate at reduced capacity, and have even cut their portside buying.
Even though market participants earlier expected production recovery in April, the demand outlook appears weak for now and imported pellets are unlikely to attract buyers until pandemic-led lockdowns are eased.
등록은 쉽고 무료입니다. 아래 버튼을 클릭하시면 되고, 등록 절차가 완료되면 다시 이 페이지로 돌아옵니다. | business |
Meeting Evolving Material Selection Criteria for Medical Enclosures | Meeting Evolving Material Selection Criteria for Medical Enclosures | designnews.com
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Material choices will vary depending on the manufacturing process and device characteristics and life expectancy.
The use of medical devices is proliferating outside the traditional healthcare ecosystem, as sophisticated monitoring and diagnostic capabilities are applied in home-care settings and among aging populations. Medical devices help to ease the burden on healthcare systems by monitoring patients to detect emerging health issues. As demand for those devices — many of them wearable or implantable — continues to grow, the materials used to manufacture enclosures must keep pace with performance requirements.
, at Plastec West in Anaheim, CA, on April 12.
Material choices vary “ depending on the process, the characteristics desired, and life expectancy needed, ” said panelist Mark Denning, Medical Market Business Manager at Sekisui Kydex. Plastics typically used include ABS, PC, polyesters, and PVC alloys.
“ For the exterior housing or enclosure of a medical device, materials must meet the basic principles of a UL rating applicable to the finished product, durability, and ability to meet other global regulatory standards, ” Denning advised. “ However, as the medical device market evolves, new attributes are escalating as priorities. ” These include:
Is the material chemically resistant to the aggressive reagents used to disinfect device surfaces so they don’ t fail in the field? “ The pandemic has heightened this need through awareness that devices get bathed in disinfectants, ” Denning noted.
While medical devices can take several years to bring to market, Sekisui Kydex had the opportunity to participate in an accelerated life-saving program with thermoforming partner Plastique Art.
“ Medical device needs during the COVID-19 pandemic did not allow for a long development process, ” Denning explained. “ The challenge was to provide material for enclosures of 10,000 CAE AIR1 mechanical ventilators for the Canadian government as quickly as possible. From initial concept to completion, the project took only eight months. It was moving to be part of such an impactful story, which couldn’ t have come together without the collaboration of over 300 suppliers to save people’ s lives, ” said Denning.
Joining Denning in the panel discussion will be Michael Zettel, Senior Material Scientist-Compatibility for PDI R & D in Woodcliff Lake, NJ. Elaborating on the disinfectant exposure requirements for medical devices, Zettel noted that “ plastics with significant chemical and photo ( UV) resistance will ultimately be the front runners. Some of the PVC alloys and co-polyesters appear to perform well. From a disinfectant manufacturer’ s perspective, plastics that retain impact strength as a function of repeated disinfectant exposure are the ones that should be considered in terms of design life. ”
On the topic of brand owners working with material suppliers to choose the right plastics, Zettel noted, “ I am aware of some anecdotes where OEMS seek chemical resistance/performance data for enclosure materials, which, in turn, guide their material selection. Unfortunately, this is too often
enclosure failure. The industry needs to get better at material selection for enclosures
to launch. Arguably, possible enclosure failures due to poor chemical resistance should be addressed via ISO 14971/FMEA. ” That said, he added, “ It’ s my understanding that some of the major ABS manufacturers are tinkering with their formulas/alloys to improve chemical resistance and mechanical property retention. ”
Looking ahead, Denning concluded, “ The medical device market is growing at remarkable rates. As the population ages and the global population gains more access to improved healthcare, demand will continue to grow. Devices get smaller, data and technology continue to improve for more personalized healthcare, at-home care becomes an option, and people will be able to be served in parts of the world that weren’ t imaginable before thanks to cell phones. ”
Lucas Allen, Medical Applications Engineer at Sekisui Kydex, is also scheduled to participate in the panel discussion at Plastec West. Part of the SPE-sponsored MiniTec conference track at the trade show, the session is scheduled for April 12 at 9 a.m.
is co-located with Medical Design & Manufacturing ( MD & M), WestPack, automation show ATX, and Design & Manufacturing ( D & M). A full
is available on the event website.
Web page addresses and e-mail addresses turn into links automatically.
Lines and paragraphs break automatically. | business |
UGANDA: Kingfisher: Cnooc wins over NEMA but now checked by Covid-19 | The Chinese major has already made its decision: it has no intention of leaving the way clear for its French rival. [... ]
Uganda's minister of petroleum Mary Goretti Kitutu is preparing to postpone her oil bidding round for the third time. Initially [... ]
Wanting to push ahead with the development of the Lake Albert fields that Tullow Oil and Heritage Oil discovered since 2006 and are presently under Tullow/Total and Cnooc's watch, President Yoweri Museveni made pivotal changes to Uganda's top oil staff [. [... ]
The end of legal proceedings by the International Criminal Court ( ICC) against Kenya’ s President Uhuru Kenyatta has brought an end to the unconditional support the latter has had from his Ugandan opposite number, Yoweri Museveni. [... ]
China’ s CNOOC would like to construct the Hoima refinery that Uganda’ s president is intent on building. And the refinery could help the country overcome its power shortages. [... ]
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AFRICA: Francophone FrancoMine gathering gains stride at Indaba | In a letter sent out to the country's top officials, the Congolese minister of mines Willy Kitobo Samsoni expresses his frustration with the number of contracts cancelled or put on ice by copper producers Eurasian Resources Group and Chemaf because of the coronavirus outbreak. [... ]
Companies active in African mining will be able to attend a virtual forum in April set up to facilitate investments in gold as the world continues to adjust to the coronavirus pandemic. [... ]
The matter of coal at the Essakane gold mine that has been troubling Burkina Faso's current minister of mines Oumarou [... ]
Rumours have been flying as to who will be the next chairman of Burkina's chamber of mines ( CMB), the entity [... ]
In November, law firm McCarthy Tetrault brought on board a [... ]
Leading lights among miners in French-speaking Africa rubbed shoulders at a meeting dubbed Franco-Mine during the Investing in African Mining [... ]
Africa Intelligence uses cookies to provide reliable and secure features, measure and analyse website traffic and provide support to the website users.Apart from those essential for the proper operation of the website, you can choose which cookies you accept to have stored on your device.Either “ Accept and close ” to agree to all cookies or go to “ Manage cookies ” to review your options. You can change these settings at any time by going to our Cookie management page.
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RWANDA: Gemstone traceability: Kigali plays golden boy, thumbs its nose at Kampala | President Paul Kagame's teams want to show that they are following the best international standards in Rwanda's mining sector. After revising its mineral export rules in an attempt to ensure traceability, they are now focusing on the environment. [... ]
The Ugandan authorities are already worried about gold being smuggled into the country from the DRC, and the Busia gold refinery project could see a rise in illegal trade from Kenya, Ethiopia and Somalia. [... ]
Belgian businessman Alain Goetz quit the management of his Ugandan gold refinery a few months ago after being found guilty of money laundering in Belgium. He is also facing accusations of tax evasion in Rwanda, where he is a shareholder in another refinery. [... ]
Concerns over the unequal distribution of the cost of checking the origins of `` 3T '' minerals between upstream operators in the African Great Lakes region and downstream operators outside the region have become increasingly acute as a result of Covid-19 and the increase in world tin prices. [... ]
Uganda's African Gold Refinery has slammed the European Union's new mining traceability rules, which it says are designed to prevent Africa from processing ore locally. This attack appears to be a way of responding to accusations of being involved in the smuggling of gold from the Great Lakes region. [... ]
The Rwandan government's new Kigali International Financial Centre appears to have won over the British public development agency CDC Group. [... ]
As the first person appointed as president of the Rwanda Mines, Petroleum and Gas Board since its creation, the former minister turned UN executive will help authorities in Kigali to polish the country's image as hub of responsible mining production. [... ]
Deloitte, Clifford Chance, Herbert Smith, Squire Patton Boggs - with three months to go before the EU introduces its new conflict minerals regulation, consultants and lawyers are jostling for position to help industry actors comply with the new due diligence requirements. [... ]
Already listed as ethical refiners, Rwanda's LuNa Smelter and South Africa's AU Traders and Refiners and Rand Refiners are well placed to benefit from the new European Union regulation. [... ]
Its trips abroad cancelled on account of the pandemic, the Rwandan government has, with the help of consultants from the foundation of the former British prime minister, set up an online system for advertising mining opportunities in the country and requesting permits. [... ]
Beijing is rolling out a business strategy in the Great Lakes in which Rwandan projects occupy pride of place. [... ]
Despite boasting large reserves of the 3Ts ( tin, tantalum and tungsten), for which global demand is as strong as ever, Rwanda's mining industry is less explored and less developed than that of some its neighbours. [... ]
Belgian tycoon Alain Goetz, who has been accused in a report by American NGO The Sentry ( read here) of refining [... ]
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Jerry Dias accepted money from supplier, Unifor alleges | The information you requested is not available at this time, please check back again soon.
Unifor National President Jerry Dias speaks on Thursday, Nov. 5, 2020 in Toronto., THE CANADIAN PRESS/Carlos Osorio
Canada’ s largest private sector union alleged Wednesday that its former national president Jerry Dias accepted $ 50,000 from a supplier of COVID-19 rapid test kits he promoted to employers of union members, several of whom purchased those test kits.
Unifor national secretary-treasurer Lana Payne said at a press conference Wednesday that Dias is being charged with violating the code of ethics and democratic practices of the union's constitution after an internal investigation.
`` What you're about to hear will be distressing, but I remind you all that no one member is above our constitution, not the highest ranking elected officers, no one, '' Payne said. `` We are all equal under that constitution. ''
She announced Dias will now be subject to a hearing hosted by the union's executive board as soon as April, which could result in his Unifor membership being suspended temporarily or permanently.
The allegations Unifor levelled have cast a shadow on Dias, once their tough-talking and scrappy leader, who has sparred with everyone from automakers to politicians in a bid to secure better job security, benefits and rights for workers.
The allegations have unfolded as Dias neared a decade at the helm of the union, which represents about 315,000 workers, and come as he faces health issues.
The union alleged that at some point before Jan. 20, Dias accepted $ 50,000 from a COVID-19 test kit supplier, which Payne declined to name and said was not a participant in the union's investigation because the company does not employ any Unifor members.
Payne said Dias then gave a Unifor employee what he said was half of those funds, $ 25,000, on Jan. 20, telling the employee that it had come from the supplier. The employee subsequently filed a complaint under the Unifor code of ethics and delivered the money to Payne.
Unifor would also not identify companies who bought the kits or say how many purchases might have been made because of recommendations from Dias.
No other union members are under investigation in connection with this matter, she said.
Dias was notified of an independent investigation on Jan. 29 and began a medical leave on Feb. 6, citing `` ongoing health issues. '' About a month later, the union announced he was retiring, before adding the next day, that he had was subject to an investigation.
In a statement released just before the union's press conference, Dias revealed he will enter a residential rehabilitation facility and temporarily step away from all of his advisory positions due to his use of pain killers, sleeping pills and alcohol to deal with a sciatic nerve issue.
`` These factors have impaired my judgment in recent months, and I owe it to our members to seek the treatment I need, '' he said.
`` My physician has told me, straight up, that I need help. ''
The union said Dias was asked to participate in the investigation, but that Dias was advised against it by his doctor.
`` I hope that he is getting the medical treatment that he feels that he needs, '' said Payne.
She noted that the union has paused an election to name Dias ' predecessor. Unifor Local 444 president Dave Cassidy and Scott Doherty, who served as Dias’ s executive assistant, are both running.
Asked whether the investigation and forthcoming hearing could result in criminal charges, Payne said the union is seeking legal advice and will fulfil any obligations related to the incident.
`` The reins are really in the hands of Unifor, in terms of whether or not criminal charges will be laid, because a lot of the information to support a complaint of that kind has to come from Unifor, '' said Sunira Chaudhri, a partner at Workly Law in Toronto.
But reporting their allegations to police means Unifor can do little to steer the public narrative, which is important to any organization facing turmoil, she added.
`` If there are other instances here of corruption, of bribery, or worse, Unifor is not going to be able to control that message, '' she said.
Payne has said the incident was `` isolated '' and based on a `` balance of probabilities '' because evidence wasn't collected from Dias.
If Unifor were to pursue this matter criminally or in a civil lawsuit, Chaudhri said suppliers, employers and even Dias could be subpoenaed and forced to provide evidence.
`` It sort of gives you an opportunity to poke a bit deeper, '' she said.
Though there's a risk of missteps being made public, those avenues would also build credibility with union members, she said.
`` I don't know that they're going to actually end up having the trust of the membership by not pursuing it beyond this transaction because, as an eight-year president with the tenure, access and reach that he's had, to turn a blind eye to what else could have happened might not go over well. '' | general |
Saskatchewan government to table 2022-23 budget today | The information you requested is not available at this time, please check back again soon.
The Saskatchewan government is to table its 2022-23 budget today that will include more money to help its strained health-care system recover from the COVID-19 pandemic.
Premier Scott Moe has said the budget will include increased spending to address the province's growing backlog of surgeries and to create more intensive care beds.
Moe also said the budget is closer to being balanced.
Finance Minister Donna Harpauer's financial plan for the coming fiscal year is expected to include higher revenues from the rising prices for oil and potash.
Saskatchewan's deficit was pushed to a record high of $ 2.7 billion in November, with the government previously stating it won't be balanced until 2026-27.
Saskatchewan's NDP Opposition says it hopes the government can avoid tax hikes and will spend more on health and education. | general |
Greg Newman's Top Picks: March 23, 2022 | The information you requested is not available at this time, please check back again soon.
This is a difficult time for the world, let alone investors.
War, rising rates, a pandemic, supply chain issues, inflation and the U.S. Fed about to shrink its balance sheet is all a recipe for continued market volatility.
While well intended and just, the U.S. freezing Russia’ s risk free balances will add to long term ramifications of USD hegemony.
What do I recommend during these uncertain times? Own a higher percentage than usual of cash, dividend stocks, blue chips and stocks that can benefit from inflation like energy and materials. Be opportunistic for oversold technology and be prepared to be a little nimble.
Greg Newman, senior wealth advisor and portfolio manager at Scotia Wealth Management, discusses his top picks: Exchange Income Corporation, Gibson Energy, and Chorus Aviation.
Greg Newman, senior wealth advisor and portfolio manager at Scotia Wealth Management, discusses his past picks: BCE Inc., Bank of Montreal, and Enbridge.
Russian government intervention to prop up the stock market helped prevent a renewed selloff in shares on the first day of trading following a record month-long shutdown of the equity market.
NATO agreed to boost its deployments in the eastern portion of the defense alliance, doubling the number of battle groups to eight, as the U.S. said it is working with NATO to prepare for possible biological or nuclear incidents by Russia.
Russia’ s invasion of Ukraine has the potential to accelerate the global shift to green energy and the use of digital currencies, according to BlackRock Inc. Chief Executive Officer Larry Fink.
The U.S. announced a new package of sanctions on Russian elites, lawmakers and defense companies, punishments designed to ramp up pressure on Moscow over its invasion of Ukraine.
Uber will list New York’ s yellow taxis on its app, the first alliance of its kind in the U.S.
The majority of Canadians say they are driving less now as a result of high gas prices, according to a new survey.
The average Wall Street bonus increased 20% last year as a flurry of initial public offerings and higher underwriting fees boosted profitability across the industry.
Statistics Canada says the number of people travelling to Canada in January was up from a year earlier, but remained a fraction of where it was before the COVID-19 pandemic. | general |
UGANDA: Covid-19 throws up roadblock to Museveni's bidding round | Angolan companies with sufficient funds to develop blocks remain few and far between. As such the Angolan administration must make do with bids from firms with strong ties to the former regime. [... ]
US Secretary of State Mike Pompeo's Mr Energy makes further inroads into Africa. [... ]
The Ugandan energy ministry is getting increasingly nervous about CNOOC's recent lack of commitment to developing the crude of Lake Albert. [... ]
The Chinese major has already made its decision: it has no intention of leaving the way clear for its French rival. [... ]
In between cancelled meetings, Total and Tullow Oil were able to prompt swift action from President Yoweri Museveni over the Lake Albert asset sale. Now all that remains to be seen is what CNOOC will decide to do. [... ]
Legal, fiscal, and health crises have thwarted the construction of Uganda's first oil refinery, which is supposed to go up on the shores of Lake Albert. [... ]
Tom Okurut, executive director of the National Environment Management Authority [... ]
The coronavirus pandemic has put the brakes on the bidding round for the Kombi, Likalala and Libondo fields Total had so desperately tried to stop. [... ]
The end of the fiscal fracas could spell the announcement of the much-anticipated FID for the development of Uganda's Lake Albert fields. [... ]
The overriding atmosphere is slowly getting the better of the new block promotion. [... ]
According to our sources, the Ugandan ministry of energy now [... ]
Wanting to push ahead with the development of the Lake Albert fields that Tullow Oil and Heritage Oil discovered since 2006 and are presently under Tullow/Total and Cnooc's watch, President Yoweri Museveni made pivotal changes to Uganda's top oil staff [. [... ]
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A pioneer on the web since 1996, Africa Intelligence is the leading news site on Africa for professionals. | general |
FAA approves plan for new passenger terminal at Trenton-Mercer Airport | The new four-aircraft-gate terminal will be designed to meet the demand forecast up to the year 2035.
Mercer County, New Jersey, US, has received approval from the US Federal Aviation Administration ( FAA) for the design and construction of a new passenger terminal at Trenton-Mercer Airport.
According to the plan, the county will replace the old terminal with a new four-aircraft-gate terminal.
The Finding of No Significant Impacts and Record of Decision ( FONSI/ROD) for the Environmental Assessment ( EA) for the proposed new terminal has been issued by the FAA.
Mercer County executive Brian Hughes said: “ We appreciate the FAA’ s diligence in its review of the EA for the proposed new airport terminal, and we’ re pleased that we have the go-ahead to advance this important project. ”
Related
The proposed terminal, which will be located next to the existing terminal, will be designed to meet the demand forecast up to the year 2035.
Hughes added: “ The existing terminal at Trenton-Mercer Airport is about one-third the size it should be for the number of travellers currently using it. As we emerge from the coronavirus crisis, we expect an increasing demand for leisure travel, and, nationwide and at Trenton-Mercer, we are seeing airlines adding new flights and reviving old ones. ” | general |
ONS says no evidence that COVID-19 vaccines lead to young deaths | The Office for National Statistics ( ONS) has said that there is no evidence that COVID-19 vaccines have led to an increase in deaths in young people.
The Pfizer and Moderna jabs have been linked to very rare heart problems, particularly in young men. The ONS has analysed outcomes shortly after vaccination, when the risk of side effects is at its peak. The researchers found that the chance of a young person dying in that time was no different to later periods that they looked at.
Julie Stanborough, deputy director at the ONS, said: `` We have found no evidence of an increased risk of cardiac death in young people following COVID-19 vaccination. ''
Six months following the mass rollout of COVID-19 vaccines, medical regulators started to report slightly higher rates of two heart conditions, after receiving the Pfizer and Moderna jabs.
The side effects are very rare, but appear to be more common after a second dose of either COVID-19 jab, particularly in young men. Anyone with symptoms, including chest pain, breathlessness, and pounding or a fluttering heartbeat following vaccination, was told to see their doctor.
Myocarditis is an inflammation and damage of the heart muscle, known as myocardium. It is most commonly caused by a viral infection, but can also be an infection of bacteria, fungi, parasite, or a reaction to a drug. | tech |
Pfizer to supply UNICEF oral COVID-19 treatment for low- and middle-income countries | Pfizer have announced the signing of a supply agreement with the United Nations Children’ s Fund ( UNICEF), to deliver up to four million courses of Paxlovid ( nirmatrelvir and ritonavir), the company’ s oral therapy for COVID-19.
The treatment courses will be available for supply to 95 low- and middle-income countries that account for approximately 53% of the world’ s population, beginning in April 2022, pending authorisation.
This includes all low- and lower-middle-income countries and some upper-middle-income countries in Sub-Saharan Africa, alongside countries that have transitioned from lower-middle to upper-middle-income status in the last five years.
Pfizer Chairman and CEO Albert Bourla commented: “ We have seen the negative impacts of COVID-19 in every part of the world and know that we must work towards access for all people regardless of where they live or their circumstances.
“ Supplying to UNICEF is an important part of our comprehensive strategy to accelerate access to Paxlovid to treat COVID-19 infection as quickly as possible and at an affordable price in order to decrease the strain on healthcare systems and help save lives in low- and middle-income countries. ”
Paxlovid is intended for use at initial COVID-19 infection, or exposure to COVID-19, to prevent severe disease. Paxlovid is an inhibitor of the main protease of SARS-CoV-2, given twice a day for five days.
Nirmatrelvir has demonstrated in vitro antiviral activity against earlier and current variants of concern, including Alpha, Beta, Delta, Gamma, and Omicron. | tech |
Arizona Metals Corp’ s Kay Mine Drilling Intersects 68.4 m at 6.7 g/t AuEq; 84.4 m at 5.3 g/t AuEq; and 72.5 m at 2.5% CuEq | Figure 4. Long section displaying Kay Mine drill holes. See Tables 1-3 for additional details. The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 80%. See Table 1 for constituent elements, grades, metals prices and recovery assumptions used for AuEq g/t and CuEq% calculations. Analyzed Metal Equivalent calculations are reported for illustrative purposes only. ( Graphic: Business Wire)
Figure 1. Cross section view looking north showing assay intervals in drilling. See Tables 1-3 for additional details. The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 80%. ( Graphic: Business Wire)
Figure 2. Cross section view looking north showing assay intervals in drilling. See Tables 1-3 for additional details. The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 80%. See Table 1 for constituent elements, grades, metals prices and recovery assumptions for AuEq g/t calculations. Analyzed Metal Equivalent calculations are reported for illustrative purposes only. ( Graphic: Business Wire)
Figure 3. Hole KM-21-58 displaying interval from 667.8 m to 670.5 m downhole, intersecting 1.5 m grading 43.2 g/t Au, 2.6% Cu, 7.8% Zn, and 856 g/t Ag. This is part of a broader 68.4 m interval, from 614.2 m to 682.6 m, grading 6.7 g/t AuEq. See Table 1 for constituent elements, grades, metals prices and recovery assumptions for AuEq g/t calculations. Analyzed Metal Equivalent calculations are reported for illustrative purposes only. ( Photo: Business Wire)
Figure 4. Long section displaying Kay Mine drill holes. See Tables 1-3 for additional details. The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 80%. See Table 1 for constituent elements, grades, metals prices and recovery assumptions used for AuEq g/t and CuEq% calculations. Analyzed Metal Equivalent calculations are reported for illustrative purposes only. ( Graphic: Business Wire)
TORONTO -- ( BUSINESS WIRE) -- Arizona Metals Corp. ( TSX.V: AMC, OTCQX: AZMCF) ( the “ Company ” or “ Arizona Metals ”) is pleased to announce the results of six recently completed drill holes at its Kay Mine project in Yavapai, County Arizona. An additional 20 holes are pending, with three drill rigs turning 24 hours per day.
Marc Pais, CEO, commented “ Drilling at the Kay Mine Project continues to intersect very large widths and high grades of massive sulphide mineralization. The holes released today demonstrate excellent continuity of mineralization in all directions, while also showing that mineralization is substantially thicker than suggested by our original modelling. Drilling has extended mineralization well into both the hanging-wall and foot-wall envelopes, which gives the potential to define a significant tonnage of mineralization.
Hole 51B showed the deepest mineralization assayed to date, at a vertical depth of 900 meters. Drilling is currently underway to test for depth extensions to at least 1,100 meters, while also testing for lateral extensions of the thick hinge zone. The twenty holes pending all encountered semi-massive or massive sulphide mineralization, and those intersections are guiding the drilling currently underway.
We have drilled approximately 45,000 meters at Kay to date, with each hole solidifying our opinion that this is one of the very few large precious-metals rich VMS deposits not yet mined, and more importantly, is potentially part of a much larger mineralized system that has yet to be explored. To that end, we recently completed a property-wide ground-loop electromagnetic survey, which will serve to refine and improve the resolution of the Central and Western targets, located approximately 300 meters and 1,000 meters west of Kay, respectively. Drill pad and road permitting is currently underway for these targets, with a detailed update expected in the next few weeks. ”
Drilling Highlights
Kay Mine Phase 2 Drill Program Update
With the assayed holes released today, the Company has completed a total of 45,000 meters at the Kay Mine since inception of drilling. The Company is fully-funded to complete the remaining 30,000 meters planned for the Phase 2 program, as well as an additional 76,000 meters in the upcoming Phase 3 program.
Table 1. Results of Phase 2 Drill Program at Kay Mine, Yavapai County, Arizona announced in this news release.
Hole ID
From m
To m
Length m
Cu%
Au g/t
Zn%
Ag g/t
Pb%
Cu eq%
Au eq g/t
Zn eq%
Cu eq%
Au eq g/t
Zn eq%
860.5
870.2
9.8
3.00
0.13
0.10
6.5
0.05
3.18
5.21
8.27
2.82
4.63
7.35
864.7
865.6
0.9
8.70
0.09
0.09
16.0
0.10
8.93
14.64
23.24
7.99
13.09
20.78
881.5
884.2
2.7
0.52
0.22
0.62
28.3
0.14
1.15
1.88
2.98
0.92
1.51
2.40
893.7
903.4
9.8
1.51
0.10
0.06
4.4
0.01
1.63
2.67
4.24
1.44
2.36
3.74
898.2
899.3
1.1
6.56
0.11
0.10
15.0
0.04
6.79
11.13
17.67
6.06
9.93
15.75
434.6
435.9
1.2
1.53
0.39
0.13
19.0
0.01
1.97
3.23
5.12
1.66
2.72
4.31
499.1
501.5
2.4
1.53
0.18
7.15
6.4
0.02
4.45
7.29
11.57
3.96
6.48
10.29
499.1
500.2
1.1
1.97
0.31
14.55
7.0
0.02
7.81
12.81
20.33
6.96
11.41
18.10
524.0
525.0
1.1
0.97
0.12
0.07
5.0
0.03
1.12
1.83
2.91
0.97
1.59
2.53
558.2
563.6
5.3
0.82
0.99
3.09
27.0
0.06
2.84
4.65
7.38
2.31
3.78
6.00
577.0
578.2
1.2
0.02
1.66
0.47
5.0
0.02
1.26
2.06
3.27
0.81
1.34
2.12
776.5
784.3
7.8
0.26
2.30
2.59
57.9
0.68
3.27
5.36
8.51
2.39
3.91
6.21
777.8
778.8
0.9
0.25
6.62
11.45
105.0
3.33
10.26
16.81
26.68
7.77
12.73
20.21
819.9
835.5
15.5
1.29
2.17
2.58
90.9
0.27
4.39
7.19
11.41
3.33
5.47
8.67
824.0
827.5
3.5
3.69
4.67
3.81
228.5
0.29
9.88
16.19
25.69
7.49
12.28
19.48
852.5
853.6
1.1
0.30
3.10
2.33
92.0
0.57
3.94
6.46
10.25
2.76
4.52
7.18
728.6
735.5
6.9
2.49
1.04
0.57
6.6
0.02
3.40
5.57
8.84
2.85
4.68
7.42
759.6
821.4
61.9
1.08
2.60
3.73
32.0
0.50
4.46
7.31
11.60
3.46
5.67
9.00
762.3
783.3
21.0
0.42
6.78
9.49
67.9
0.49
8.84
14.50
23.00
6.56
10.75
17.06
577.0
586.4
9.4
0.43
1.28
2.48
41.3
0.47
2.59
4.25
6.74
2.00
3.28
5.20
614.2
682.6
68.4
1.30
3.42
3.85
47.2
0.50
5.35
8.78
13.93
4.08
6.69
10.61
640.7
648.0
7.3
0.79
4.34
10.20
51.9
0.56
7.90
12.94
20.54
6.19
10.14
16.10
668.1
678.6
10.5
5.30
12.19
6.67
194.7
1.88
17.26
28.30
44.90
12.84
21.05
33.40
668.1
669.6
1.5
2.55
43.20
7.76
856.0
0.80
38.86
63.69
101.08
25.03
41.02
65.10
569.4
641.8
72.5
1.12
1.00
2.84
18.1
0.33
3.03
4.97
7.89
2.50
4.10
6.51
584.3
591.9
7.6
0.29
1.19
6.23
4.4
0.40
3.53
5.79
9.19
2.95
4.84
7.68
602.3
613.3
11.0
4.02
0.11
1.38
12.6
0.40
4.80
7.88
12.50
4.27
7.01
11.12
630.3
630.9
0.7
1.14
6.35
11.20
356.0
0.65
12.28
20.13
31.95
9.05
14.83
23.53
633.5
641.8
8.3
1.53
2.33
5.12
26.5
0.36
5.20
8.53
13.53
4.19
6.87
10.91
665.5
676.0
10.5
0.12
2.90
3.88
167.5
1.92
5.13
8.41
13.34
3.69
6.04
9.59
672.5
676.0
3.5
0.12
6.89
6.40
332.0
3.81
10.26
16.82
26.70
7.19
11.78
18.69
673.6
674.5
0.9
0.28
19.65
12.65
844.0
10.20
26.07
42.74
67.82
17.86
29.27
46.45
543.2
627.6
84.4
1.05
2.38
3.44
23.8
0.55
4.13
6.77
10.75
3.23
5.29
8.39
571.2
582.5
11.3
0.51
5.27
9.96
35.4
1.52
8.18
13.40
21.27
6.31
10.34
16.41
605.3
622.7
17.4
3.20
6.19
4.18
40.9
0.22
8.96
14.69
23.31
6.83
11.20
17.78
609.6
612.0
2.4
1.45
17.73
7.97
82.5
0.44
16.08
26.35
41.81
11.03
18.07
28.68
The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 80%. ( 2) Assumptions used in USD for the copper and gold Metal Equivalent calculations were metal prices of $ 4.63/lb Copper, $ 1937/oz Gold, $ 25/oz Silver, $ 1.78/lb Zinc, and $ 1.02/lb Pb. Assumed metal recoveries ( rec.), based on a preliminary review of historic data by SRK and ProcessIQ1, were 90% for each of copper, zinc, and lead, and 60% for each of gold and silver. The following equation was used to calculate copper equivalence: CuEq = Copper (%) ( 90% rec.) + ( Gold ( g/t) x 0.61) ( 60% rec.) + ( Silver ( g/t) x 0.0079) ( 60% rec.) + ( Zinc (%) x 0.3844) ( 90% rec.) + ( Lead (%) x 0.2203) ( 90% rec.). The following equation was used to calculate gold equivalence: AuEq = Gold ( g/t) ( 60% rec.) + ( Copper (%) x 1.638) ( 90% rec.) + ( Silver ( g/t) x 0.01291) ( 60% rec.) + ( Zinc (%) x 0.6299) ( 90% rec.) + ( Lead (%) x 0.3609) ( 90% rec.). Analyzed Metal Equivalent calculations are reported for illustrative purposes only. The metal chosen for reporting on an equivalent basis is the one that contributes the most dollar value after accounting for assumed recoveries.
Table 2. Full results of Phase 2 Drill Program at Kay Mine, Yavapai County, Arizona.
Hole ID
From m
To m
Length m
Cu%
Au g/t
Zn%
Ag g/t
Pb%
Cu eq%
Au eq g/t
Zn eq%
Cu eq%
Au eq g/t
Zn eq%
429.5
449.9
20.4
1.81
1.10
1.20
21.2
0.17
3.14
5.15
8.18
2.58
4.22
6.70
429.5
434.0
4.6
4.61
1.73
1.91
29.1
0.24
6.68
10.96
17.39
5.63
9.23
14.64
432.7
434.0
1.4
0.52
6.81
8.29
40.0
1.10
8.41
13.79
21.89
6.23
10.22
16.21
504.4
505.4
0.9
1.19
4.73
0.05
9.0
0.00
4.17
6.83
10.84
2.86
4.69
7.45
404.3
429.8
25.5
0.35
0.86
1.71
15.8
0.23
1.71
2.80
4.44
1.34
2.20
3.49
408.6
410.6
2.0
0.50
2.22
7.25
64.4
0.82
5.33
8.74
13.87
4.24
6.95
11.03
424.9
427.3
2.4
1.60
2.59
3.16
18.0
0.52
4.66
7.64
12.12
3.68
6.02
9.56
391.4
423.8
32.5
1.09
0.62
1.25
17.7
0.15
2.13
3.48
5.53
1.76
2.88
4.57
393.3
395.8
2.4
9.57
2.83
2.72
40.9
0.28
12.73
20.87
33.12
10.84
17.78
28.21
377.8
378.3
0.5
3.39
5.59
6.83
128.0
0.63
10.58
17.34
27.52
8.19
13.43
21.32
442.7
443.6
0.9
2.56
0.52
3.52
18.5
0.14
4.40
7.22
11.45
3.82
6.26
9.94
456.0
458.1
2.1
1.49
0.35
0.14
6.0
0.04
1.81
2.97
4.71
1.55
2.54
4.04
452.6
495.5
42.8
0.80
0.78
1.52
15.1
0.15
2.01
3.29
5.22
1.63
2.67
4.24
488.7
493.5
4.8
0.26
2.50
6.13
27.6
0.54
4.48
7.34
11.65
3.51
5.75
9.12
422.0
431.4
9.4
1.17
0.57
2.25
8.6
0.36
2.53
4.15
6.58
2.15
3.53
5.60
439.1
502.1
63.0
0.45
1.28
3.14
58.8
0.77
3.08
5.04
8.00
2.39
3.92
6.23
465.0
481.9
16.9
0.52
2.45
4.05
80.9
0.99
4.43
7.26
11.53
3.35
5.49
8.71
394.4
401.4
7.0
0.36
0.93
1.94
13.5
1.17
2.05
3.35
5.32
1.64
2.69
4.26
438.6
459.2
20.6
0.17
1.18
1.93
27.8
0.37
1.94
3.17
5.03
1.46
2.39
3.80
501.2
592.1
90.8
0.45
1.33
3.42
44.6
0.41
3.02
4.95
7.86
2.37
3.88
6.16
501.2
521.7
20.4
1.34
1.70
6.35
113.1
0.66
5.86
9.60
15.24
4.69
7.69
12.20
520.9
521.7
0.8
1.75
16.50
9.55
574.0
1.22
20.31
33.29
52.82
13.89
22.77
36.13
575.9
592.1
16.2
0.16
2.50
6.00
44.4
0.79
4.51
7.40
11.74
3.50
5.74
9.11
588.7
590.4
1.7
0.47
9.98
23.70
18.2
0.13
15.84
25.96
41.20
12.39
20.30
32.22
662.6
741.3
78.6
1.41
2.33
2.79
43.4
0.35
4.33
7.10
11.26
3.37
5.52
8.76
663.2
672.7
9.4
8.06
1.84
1.31
92.3
0.15
10.45
17.13
27.18
8.85
14.50
23.01
693.0
703.9
11.0
0.68
6.28
10.40
99.7
1.17
9.56
15.66
24.86
7.21
11.82
18.77
654.7
719.9
65.2
1.04
1.94
2.15
18.9
0.18
3.25
5.32
8.44
2.52
4.13
6.56
655.5
662.8
7.3
3.66
2.09
1.85
30.2
0.21
5.93
9.73
15.44
4.89
8.01
12.71
710.8
716.9
6.1
2.72
7.95
3.73
37.4
0.31
9.37
15.36
24.38
6.89
11.29
17.92
647.2
648.9
1.7
0.13
0.58
2.41
62.1
0.64
2.04
3.35
5.31
1.58
2.60
4.12
655.6
659.9
4.3
0.93
0.91
0.91
25.3
0.19
2.07
3.40
5.40
1.64
2.69
4.27
666.0
667.8
1.8
0.60
0.72
2.98
33.5
0.43
2.55
4.18
6.63
2.08
3.41
5.42
673.3
674.7
1.4
0.08
2.10
2.39
23.0
0.33
2.53
4.15
6.58
1.84
3.01
4.78
681.2
682.6
1.4
0.09
1.54
2.98
11.0
0.35
2.34
3.83
6.08
1.80
2.95
4.67
506.7
582.8
76.0
0.79
1.61
4.23
32.7
0.54
3.78
6.19
9.83
3.03
4.96
7.88
511.1
526.1
14.9
0.73
1.78
9.68
43.3
0.77
6.05
9.92
15.74
5.02
8.23
13.05
573.8
582.8
9.0
4.02
6.06
3.32
18.2
0.19
9.18
15.04
23.87
7.11
11.65
18.49
706.8
738.2
31.4
1.58
0.16
0.69
9.0
0.06
2.03
3.33
5.28
1.77
2.91
4.62
764.4
777.4
13.0
2.85
0.48
0.17
8.5
0.02
3.29
5.39
8.55
2.85
4.67
7.41
666.3
769.4
103.1
0.79
1.06
1.90
35.8
0.42
2.54
4.17
6.62
2.01
3.30
5.23
666.3
687.0
20.7
3.21
1.39
1.26
19.4
0.20
4.74
7.77
12.33
3.97
6.50
10.32
706.4
724.6
18.3
0.69
2.69
4.70
92.2
1.21
5.13
8.41
13.35
3.91
6.41
10.17
752.9
763.8
11.0
0.07
1.07
4.68
95.3
0.98
3.49
5.73
9.09
2.72
4.46
7.08
665.8
762.9
97.1
1.31
1.62
3.21
31.7
0.40
3.88
6.35
10.08
3.12
5.11
8.11
702.0
723.0
21.0
0.87
4.56
9.03
81.5
1.10
8.01
13.13
20.83
6.18
10.13
16.08
723.0
738.2
15.2
4.97
0.36
0.42
18.7
0.05
5.51
9.03
14.33
4.85
7.95
12.61
640.7
694.9
54.3
1.87
2.85
5.03
29.4
0.70
5.93
9.72
15.43
4.75
7.78
12.34
660.2
671.6
11.4
0.54
4.29
9.30
32.2
1.17
7.24
11.87
18.84
5.66
9.27
14.71
681.1
689.0
7.9
4.39
9.47
10.34
93.1
2.41
15.42
25.27
40.10
11.92
19.54
31.00
690.4
692.6
2.2
16.06
0.82
0.06
55.8
0.01
17.02
27.90
44.28
15.04
24.65
39.12
393.0
393.8
0.8
0.43
1.54
4.92
9.0
0.21
3.38
5.54
8.79
2.74
4.49
7.13
264.9
267.9
3.0
1.18
0.02
0.01
1.5
0.00
1.21
1.98
3.15
1.08
1.77
2.81
316.4
320.0
3.7
1.84
1.29
2.47
38.5
0.30
3.95
6.47
10.27
3.22
5.29
8.39
342.9
345.9
3.0
0.67
0.52
2.70
13.0
0.15
2.16
3.54
5.62
1.82
2.98
4.73
358.9
368.4
9.4
0.60
1.47
1.99
45.7
0.35
2.70
4.42
7.01
2.05
3.36
5.33
171.3
172.5
1.2
3.79
0.45
0.21
63.0
0.17
4.69
7.68
12.19
3.99
6.53
10.37
299.3
303.9
4.6
0.29
1.69
0.94
46.3
0.26
2.12
3.47
5.50
1.48
2.43
3.86
309.7
310.9
1.2
2.27
0.56
1.55
19.9
0.08
3.38
5.54
8.80
2.89
4.74
7.53
609.6
615.1
5.5
0.92
1.26
1.71
57.7
0.02
2.80
4.60
7.29
2.16
3.53
5.61
609.6
613.0
3.4
1.39
1.69
1.98
54.0
0.01
3.61
5.92
9.40
2.81
4.61
7.32
406.5
407.8
1.4
0.60
1.08
9.41
4.0
0.25
4.96
8.13
12.90
4.26
6.98
11.07
467.4
476.1
8.7
0.09
1.73
3.87
61.1
1.22
3.38
5.55
8.80
2.58
4.24
6.72
470.0
475.2
5.2
0.12
2.44
5.68
87.5
1.79
4.88
8.01
12.71
3.74
6.13
9.73
589.8
613.8
24.0
4.98
0.61
0.98
23.4
0.45
6.01
9.86
15.65
5.25
8.60
13.64
589.8
597.9
8.1
7.63
0.43
0.39
27.1
0.17
8.30
13.60
21.58
7.32
12.00
19.05
627.9
680.8
52.9
0.47
2.91
3.40
35.7
0.40
3.93
6.44
10.22
2.92
4.78
7.59
641.1
648.3
7.2
1.15
7.66
8.27
88.5
0.92
9.90
16.23
25.76
7.30
11.97
18.99
670.3
674.1
3.8
1.53
10.89
9.47
24.6
0.61
12.15
19.91
31.59
8.88
14.55
23.10
462.6
559.3
96.7
1.04
1.54
2.66
40.8
0.35
3.41
5.59
8.86
2.69
4.41
6.99
503.2
514.2
11.0
0.99
5.34
8.17
106.3
1.63
8.59
14.08
22.35
6.50
10.65
16.91
546.7
558.1
11.4
5.86
5.83
3.24
185.4
0.04
12.14
19.90
31.58
9.42
15.44
24.49
553.1
556.9
3.8
7.11
9.55
5.70
505.8
0.09
19.16
31.41
49.84
14.29
23.43
37.18
803.5
810.3
6.9
0.05
1.60
1.58
64.3
0.35
2.22
3.64
5.78
1.55
2.55
4.04
835.5
839.7
4.3
0.63
2.46
2.15
21.7
0.21
3.18
5.20
8.26
2.36
3.86
6.13
853.7
854.7
0.9
0.11
1.63
2.88
28.0
0.40
2.52
4.13
6.55
1.90
3.12
4.95
786.7
787.6
0.9
0.03
3.61
2.18
17.0
0.70
3.36
5.51
8.74
2.32
3.81
6.04
805.4
811.1
5.6
6.17
0.92
0.18
39.5
0.01
7.12
11.68
18.53
6.15
10.08
15.99
807.0
808.9
2.0
10.72
0.87
0.11
61.8
0.00
11.79
19.32
30.66
10.30
16.89
26.80
840.9
877.2
36.3
0.55
0.62
1.35
10.7
0.13
1.56
2.56
4.06
1.27
2.08
3.30
808.0
811.2
3.2
0.29
2.06
5.77
63.0
0.94
4.47
7.33
11.63
3.50
5.73
9.10
816.9
819.9
3.0
2.31
0.66
1.23
16.0
0.15
3.35
5.49
8.71
2.85
4.68
7.42
835.5
840.8
5.3
0.02
0.73
2.93
13.5
0.24
1.75
2.87
4.56
1.41
2.31
3.67
849.2
877.4
28.2
3.81
0.47
0.29
12.5
0.09
4.32
7.08
11.24
3.77
6.19
9.82
849.2
854.7
5.5
14.57
0.66
0.16
37.5
0.03
15.34
25.14
39.89
13.59
22.28
35.36
863.8
869.4
5.6
2.29
1.17
0.59
13.1
0.25
3.39
5.55
8.81
2.80
4.59
7.29
874.8
877.4
2.6
2.83
0.26
0.03
7.2
0.01
3.06
5.02
7.96
2.69
4.41
7.00
886.1
889.1
3.0
0.87
0.88
0.50
5.2
0.05
1.65
2.71
4.30
1.31
2.15
3.42
583.7
607.1
23.4
0.39
0.25
3.68
3.1
0.02
1.98
3.25
5.15
1.73
2.84
4.50
598.9
599.8
0.9
0.50
0.18
11.30
3.0
0.03
4.99
8.17
12.97
4.45
7.29
11.57
616.0
633.1
17.1
1.81
0.17
0.14
8.2
0.03
2.04
3.34
5.31
1.79
2.93
4.65
631.2
633.1
1.8
6.30
0.61
0.09
25.0
0.01
6.91
11.32
17.97
6.05
9.91
15.73
353.4
377.3
23.9
0.34
0.97
2.52
18.3
0.33
2.12
3.47
5.50
1.68
2.76
4.38
354.0
356.6
2.6
0.23
2.14
7.97
38.9
0.68
5.06
8.29
13.15
4.07
6.67
10.58
459.6
463.0
3.4
0.32
0.62
6.63
82.3
0.87
4.10
6.71
10.65
3.38
5.53
8.78
461.2
462.1
0.9
0.15
1.23
16.90
182.0
2.50
9.39
15.38
24.41
7.79
12.77
20.26
350.4
362.9
12.4
0.66
2.61
3.69
40.6
0.39
4.08
6.69
10.61
3.10
5.08
8.06
350.4
353.3
2.8
0.77
5.19
6.83
107.0
0.72
7.58
12.42
19.70
5.61
9.20
14.60
433.9
435.9
2.0
0.16
1.88
9.28
138.7
2.17
6.46
10.58
16.79
5.14
8.42
13.36
605.2
610.7
5.5
3.54
0.45
0.19
12.7
0.05
4.00
6.55
10.40
3.49
5.71
9.07
630.3
634.6
4.3
1.11
0.34
0.69
12.7
0.11
1.71
2.80
4.45
1.45
2.37
3.77
685.5
696.8
11.3
0.98
0.05
0.06
4.2
0.02
1.07
1.75
2.77
0.94
1.54
2.45
715.1
718.4
3.4
2.08
0.04
0.03
4.3
0.01
2.15
3.52
5.59
1.92
3.14
4.98
723.0
724.5
1.5
1.54
0.07
0.06
4.0
0.02
1.64
2.68
4.26
1.45
2.38
3.78
735.5
743.6
8.1
0.34
0.60
1.52
9.2
0.07
1.38
2.26
3.59
1.11
1.82
2.89
The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 80%. ( 2) Assumptions used in USD for the copper and gold Metal Equivalent calculations were metal prices of $ 4.63/lb Copper, $ 1937/oz Gold, $ 25/oz Silver, $ 1.78/lb Zinc, and $ 1.02/lb Pb. Assumed metal recoveries ( rec.), based on a preliminary review of historic data by SRK and ProcessIQ2, were 90% for each of copper, zinc, and lead, and 60% for each of gold and silver. The following equation was used to calculate copper equivalence: CuEq = Copper (%) ( 90% rec.) + ( Gold ( g/t) x 0.61) ( 60% rec.) + ( Silver ( g/t) x 0.0079) ( 60% rec.) + ( Zinc (%) x 0.3844) ( 90% rec.) + ( Lead (%) x 0.2203) ( 90% rec.). The following equation was used to calculate gold equivalence: AuEq = Gold ( g/t) ( 60% rec.) + ( Copper (%) x 1.638) ( 90% rec.) + ( Silver ( g/t) x 0.01291) ( 60% rec.) + ( Zinc (%) x 0.6299) ( 90% rec.) + ( Lead (%) x 0.3609) ( 90% rec.). Analyzed Metal Equivalent calculations are reported for illustrative purposes only. The metal chosen for reporting on an equivalent basis is the one that contributes the most dollar value after accounting for assumed recoveries.
Table 2 Continued. Full results of Phase 2 Drill Program at Kay Mine, Yavapai County, Arizona. The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 80%.
Hole ID
From m
To m
Length m
Cu%
Au g/t
Zn%
Ag g/t
Pb%
Cu eq%
Au eq g/t
Zn eq%
Cu eq%
Au eq g/t
Zn eq%
538.0
539.5
1.5
0.31
1.17
2.79
29.0
0.52
2.44
4.01
6.36
1.92
3.14
4.99
687.9
696.9
9.0
1.64
0.36
0.79
7.9
0.01
2.23
3.66
5.80
1.92
3.15
5.00
687.9
688.8
0.9
0.15
1.53
5.35
5.0
0.01
3.18
5.21
8.27
2.57
4.21
6.68
694.9
696.0
1.1
8.36
0.80
0.10
40.0
0.03
9.21
15.10
23.96
8.05
13.19
20.93
489.5
501.9
12.3
0.98
2.30
6.36
111.9
1.24
5.99
9.81
15.57
4.70
7.70
12.22
489.5
493.0
3.4
2.64
3.59
9.49
207.7
1.65
10.49
17.20
27.30
8.29
13.59
21.57
509.0
562.1
53.1
0.44
0.84
1.28
35.8
0.27
1.79
2.93
4.65
1.37
2.24
3.56
538.1
545.6
7.5
0.28
1.94
2.62
112.8
0.82
3.55
5.81
9.23
2.57
4.21
6.68
860.5
870.2
9.8
3.00
0.13
0.10
6.5
0.05
3.18
5.21
8.27
2.82
4.63
7.35
864.7
865.6
0.9
8.70
0.09
0.09
16.0
0.10
8.93
14.64
23.24
7.99
13.09
20.78
881.5
884.2
2.7
0.52
0.22
0.62
28.3
0.14
1.15
1.88
2.98
0.92
1.51
2.40
893.7
903.4
9.8
1.51
0.10
0.06
4.4
0.01
1.63
2.67
4.24
1.44
2.36
3.74
898.2
899.3
1.1
6.56
0.11
0.10
15.0
0.04
6.79
11.13
17.67
6.06
9.93
15.75
751.5
758.2
6.7
1.18
0.66
0.98
18.2
0.14
2.14
3.50
5.56
1.76
2.88
4.58
787.5
789.6
2.1
0.04
1.27
1.68
28.5
0.22
1.73
2.84
4.50
1.26
2.06
3.27
763.7
793.1
29.4
0.25
1.12
1.36
51.6
0.47
1.97
3.22
5.11
1.44
2.36
3.75
763.7
764.9
1.2
0.38
3.01
8.69
132.0
1.68
6.97
11.43
18.13
5.41
8.87
14.07
771.8
774.5
2.7
1.39
2.46
4.59
116.4
1.82
5.98
9.81
15.56
4.66
7.63
12.12
781.5
787.6
6.1
0.31
2.63
1.64
119.5
0.65
3.64
5.97
9.47
2.51
4.12
6.53
801.3
802.5
1.2
0.42
0.90
1.29
82.0
0.17
2.15
3.52
5.59
1.57
2.58
4.09
818.8
820.2
1.4
0.39
1.62
1.29
188.0
0.36
3.45
5.65
8.96
2.36
3.86
6.13
831.2
852.4
21.2
0.05
0.91
0.80
27.2
0.29
1.19
1.95
3.10
0.84
1.38
2.19
837.0
841.6
4.6
0.03
2.16
1.34
69.0
0.79
2.59
4.24
6.73
1.77
2.90
4.60
302.7
308.5
5.8
0.66
0.44
0.53
15.8
0.10
1.28
2.10
3.33
1.03
1.70
2.69
434.6
435.9
1.2
1.53
0.39
0.13
19.0
0.01
1.97
3.23
5.12
1.66
2.72
4.31
499.1
501.5
2.4
1.53
0.18
7.15
6.4
0.02
4.45
7.29
11.57
3.96
6.48
10.29
499.1
500.2
1.1
1.97
0.31
14.55
7.0
0.02
7.81
12.81
20.33
6.96
11.41
18.10
524.0
525.0
1.1
0.97
0.12
0.07
5.0
0.03
1.12
1.83
2.91
0.97
1.59
2.53
558.2
563.6
5.3
0.82
0.99
3.09
27.0
0.06
2.84
4.65
7.38
2.31
3.78
6.00
577.0
578.2
1.2
0.02
1.66
0.47
5.0
0.02
1.26
2.06
3.27
0.81
1.34
2.12
776.5
784.3
7.8
0.26
2.30
2.59
57.9
0.68
3.27
5.36
8.51
2.39
3.91
6.21
777.8
778.8
0.9
0.25
6.62
11.45
105.0
3.33
10.26
16.81
26.68
7.77
12.73
20.21
819.9
835.5
15.5
1.29
2.17
2.58
90.9
0.27
4.39
7.19
11.41
3.33
5.47
8.67
824.0
827.5
3.5
3.69
4.67
3.81
228.5
0.29
9.88
16.19
25.69
7.49
12.28
19.48
852.5
853.6
1.1
0.30
3.10
2.33
92.0
0.57
3.94
6.46
10.25
2.76
4.52
7.18
728.6
735.5
6.9
2.49
1.04
0.57
6.6
0.02
3.40
5.57
8.84
2.85
4.68
7.42
759.6
821.4
61.9
1.08
2.60
3.73
32.0
0.50
4.46
7.31
11.60
3.46
5.67
9.00
762.3
783.3
21.0
0.42
6.78
9.49
67.9
0.49
8.84
14.50
23.00
6.56
10.75
17.06
577.0
586.4
9.4
0.43
1.28
2.48
41.3
0.47
2.59
4.25
6.74
2.00
3.28
5.20
614.2
682.6
68.4
1.30
3.42
3.85
47.2
0.50
5.35
8.78
13.93
4.08
6.69
10.61
640.7
648.0
7.3
0.79
4.34
10.20
51.9
0.56
7.90
12.94
20.54
6.19
10.14
16.10
668.1
678.6
10.5
5.30
12.19
6.67
194.7
1.88
17.26
28.30
44.90
12.84
21.05
33.40
668.1
669.6
1.5
2.55
43.20
7.76
856.0
0.80
38.86
63.69
101.08
25.03
41.02
65.10
569.4
641.8
72.5
1.12
1.00
2.84
18.1
0.33
3.03
4.97
7.89
2.50
4.10
6.51
584.3
591.9
7.6
0.29
1.19
6.23
4.4
0.40
3.53
5.79
9.19
2.95
4.84
7.68
602.3
613.3
11.0
4.02
0.11
1.38
12.6
0.40
4.80
7.88
12.50
4.27
7.01
11.12
630.3
630.9
0.7
1.14
6.35
11.20
356.0
0.65
12.28
20.13
31.95
9.05
14.83
23.53
633.5
641.8
8.3
1.53
2.33
5.12
26.5
0.36
5.20
8.53
13.53
4.19
6.87
10.91
665.5
676.0
10.5
0.12
2.90
3.88
167.5
1.92
5.13
8.41
13.34
3.69
6.04
9.59
672.5
676.0
3.5
0.12
6.89
6.40
332.0
3.81
10.26
16.82
26.70
7.19
11.78
18.69
673.6
674.5
0.9
0.28
19.65
12.65
844.0
10.20
26.07
42.74
67.82
17.86
29.27
46.45
543.2
627.6
84.4
1.05
2.38
3.44
23.8
0.55
4.13
6.77
10.75
3.23
5.29
8.39
571.2
582.5
11.3
0.51
5.27
9.96
35.4
1.52
8.18
13.40
21.27
6.31
10.34
16.41
605.3
622.7
17.4
3.20
6.19
4.18
40.9
0.22
8.96
14.69
23.31
6.83
11.20
17.78
609.6
612.0
2.4
1.45
17.73
7.97
82.5
0.44
16.08
26.35
41.81
11.03
18.07
28.68
The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 80%. ( 2) Assumptions used in USD for the copper and gold Metal Equivalent calculations were metal prices of $ 4.63/lb Copper, $ 1937/oz Gold, $ 25/oz Silver, $ 1.78/lb Zinc, and $ 1.02/lb Pb. Assumed metal recoveries ( rec.), based on a preliminary review of historic data by SRK and ProcessIQ3, were 90% for each of copper, zinc, and lead, and 60% for each of gold and silver. The following equation was used to calculate copper equivalence: CuEq = Copper (%) ( 90% rec.) + ( Gold ( g/t) x 0.61) ( 60% rec.) + ( Silver ( g/t) x 0.0079) ( 60% rec.) + ( Zinc (%) x 0.3844) ( 90% rec.) + ( Lead (%) x 0.2203) ( 90% rec.). The following equation was used to calculate gold equivalence: AuEq = Gold ( g/t) ( 60% rec.) + ( Copper (%) x 1.638) ( 90% rec.) + ( Silver ( g/t) x 0.01291) ( 60% rec.) + ( Zinc (%) x 0.6299) ( 90% rec.) + ( Lead (%) x 0.3609) ( 90% rec.). Analyzed Metal Equivalent calculations are reported for illustrative purposes only. The metal chosen for reporting on an equivalent basis is the one that contributes the most dollar value after accounting for assumed recoveries.
Table 3. Results of Phase 1 Drill Program at Kay Mine, Yavapai County, Arizona. The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 80%.
Hole ID
From m
To m
Length m
Cu%
Au g/t
Zn%
Ag g/t
Pb%
Vertical Depth Below Surface m
275.8
281.5
5.6
0.57
0.48
1.20
11.6
0.18
156
275.8
276.5
0.6
0.50
1.22
5.04
32.0
0.73
279.8
281.5
1.6
1.21
0.98
1.49
22.6
0.23
297.8
300.8
3.0
0.77
0.20
0.04
1.4
0.01
172
256.3
259.1
2.7
3.40
1.01
0.65
69.6
0.09
120
256.3
257.3
0.9
7.42
1.79
1.11
56.0
0.17
292.2
292.6
0.5
2.43
0.19
0.15
2.0
0.04
152
295.4
295.8
0.5
1.35
0.80
0.91
6.0
0.06
154
252.4
256.9
4.6
3.70
2.55
0.27
35.6
0.03
122
252.4
253.1
0.8
9.74
6.34
0.40
164.0
0.11
266.6
269.0
2.4
6.47
1.94
0.57
43.3
0.14
150
266.6
267.8
1.2
10.60
2.21
1.05
50.0
0.26
267.9
281.5
13.5
1.02
0.85
1.23
45.6
0.30
158
267.9
268.4
0.5
1.54
2.20
6.10
31.0
0.81
276.6
281.5
4.9
1.86
0.87
1.96
92.1
0.42
280.0
281.0
1.1
3.22
1.03
0.64
340.0
0.04
588.1
588.4
0.3
0.91
1.74
1.86
15.0
0.40
588
613.4
614.1
0.7
0.90
1.81
1.04
10.0
0.08
612
614.6
614.9
0.3
2.64
0.36
0.98
19.0
0.10
613
632.8
638.9
6.1
0.12
4.18
8.02
41.7
0.82
575
633.6
637.9
4.4
0.15
5.46
9.06
33.1
0.50
636.9
637.9
1.1
0.17
9.77
14.65
68.0
0.78
563.6
568.5
4.9
2.39
2.16
3.27
24.9
0.31
490
563.6
566.6
3.0
3.66
2.42
3.16
28.2
0.32
567.2
568.5
1.2
0.33
2.52
5.10
28.4
0.43
574.2
574.9
0.6
0.12
4.33
11.30
113.0
0.16
498
577.7
579.3
1.6
0.03
0.70
4.38
45.9
0.68
500
582.3
583.1
0.8
0.03
0.42
2.90
51.0
1.07
502
521.2
522.5
1.3
2.13
1.27
7.46
51.1
0.91
437
527.9
538.6
10.7
1.32
1.66
2.58
27.2
0.30
442
527.9
529.4
1.5
6.69
0.92
1.62
30.2
0.07
532.2
535.3
3.1
0.72
1.75
2.99
34.3
0.42
537.2
538.6
1.4
0.16
7.29
9.06
79.2
0.60
503.0
530.7
27.6
0.87
0.97
1.76
21.3
0.32
423
503.0
509.6
6.6
1.78
1.55
2.55
29.8
0.37
513.9
518.3
4.4
1.08
1.89
4.05
47.4
0.68
527.2
530.7
3.5
1.91
2.32
3.93
52.9
0.99
523.9
530.7
6.8
0.58
3.32
5.84
102.0
1.15
422
523.9
528.2
4.3
0.88
4.89
7.61
125.2
1.45
525.6
526.4
0.8
0.52
16.65
21.40
214.0
2.76
554.1
556.9
2.7
4.14
2.83
3.56
70.0
0.28
490
371.9
376.7
4.9
3.99
0.37
0.62
12.4
0.07
318
371.9
373.7
1.9
8.49
0.67
1.53
28.0
0.16
379.5
405.4
25.9
0.73
0.08
0.08
2.3
0.01
326
443.6
486.8
43.1
1.68
1.26
1.67
23.3
0.24
341
444.4
459.6
15.2
3.42
1.80
2.36
38.5
0.39
444.4
447.1
2.7
1.02
3.74
10.64
55.0
1.88
451.4
455.8
4.4
8.41
1.18
0.16
65.3
0.02
421.7
461.6
39.9
1.47
1.00
1.67
18.4
0.19
314
426.3
429.8
3.5
9.56
1.28
0.95
30.0
0.07
457.2
460.7
3.5
0.36
2.58
8.33
26.3
0.38
404.6
409.0
4.4
1.67
1.48
2.50
79.2
0.41
303
404.6
406.4
1.7
4.08
2.46
5.02
173.6
0.53
421.0
443.5
22.5
0.86
0.72
1.51
15.9
0.18
312
421.0
421.8
0.8
9.81
2.91
1.69
45.0
0.19
421.0
425.0
4.1
3.23
1.14
1.30
21.4
0.14
506.8
510.1
3.3
0.05
0.33
3.73
192.0
1.75
402
480.4
518.8
38.4
0.85
0.81
2.24
24.3
0.25
385
480.4
492.9
12.5
1.63
1.98
4.23
48.5
0.50
480.4
483.4
3.0
2.40
4.74
7.49
77.9
0.91
489.8
492.9
3.0
3.61
2.59
6.90
100.7
0.92
Table 4. Locations of Phase 1 and 2 Program drill holes completed at Kay Mine, Arizona
Hole ID
Phase
Drill Pad
Zone
Collar East WGS84
Collar North WGS84
Collar Elev m
Collar Az
Collar Dip
Total Depth m
Distance Drilled Below Wedge m
1
392684
3769388
643
78
-48
335
335
1
392684
3769388
643
75
-50
304
304
1
392684
3769388
643
72
-43.3
366
366
1
392684
3769388
643
72
-43.3
321
177
1
392684
3769388
643
65.1
-47.5
354
354
1
392684
3769388
643
73.3
-47.2
349
349
1
392684
3769388
643
81.3
-48.3
317
317
1
392684
3769388
643
85.6
-47.6
308
308
1
392638
3769266
653
91.1
-77.1
36
36
1
392638
3769266
653
92.1
-77
671
671
1
392638
3769266
653
96.3
-72.2
645
645
1
392638
3769266
653
96.3
-72.2
600
297
1
392638
3769266
653
96.3
-72.2
555
258
1
392638
3769266
653
96.3
-72.2
560
277
1
392552
3769328
638
57.3
-67.5
653
653
1
392684
3769388
643
95.7
-70.8
583
583
1
392684
3769388
643
124
-66.5
524
524
1
392684
3769388
643
133.6
-66
550
550
1
392684
3769388
643
133.6
-66
549
263
1
392638
3769266
653
106.7
-66.8
572
572
1
392638
3769266
653
91.5
-68.9
581
581
2
392638
3769266
653
90.5
-59.5
892
892
2
392638
3769266
653
89.8
-55
518
518
2
392638
3769266
653
89.8
-55
472
236
2
392684
3769388
643
59.3
-69.5
482
482
2
392638
3769266
653
53.7
-67.3
553
553
2
392684
3769388
643
126
-70
561
561
2
392684
3769388
643
126
-70
556
315
2
392552
3769328
638
33
-63
725
725
2
392552
3769328
638
33
-63
694
419
2
392684
3769388
643
114.2
-66.3
528
528
2
392684
3769388
643
119
-75.1
623
623
2
392552
3769328
638
80
-77.4
775
775
2
392552
3769328
638
80
-77.4
746
263
2
392552
3769328
638
80
-77.4
738
404
2
392684
3769388
643
118.2
-79.3
616
616
2
392684
3769388
643
90.4
-86.7
859
859
2
392684
3769388
643
90.4
-86.7
817
391
2
392684
3769388
643
90.4
-86.7
823
427
2
392552
3769328
638
86.7
-70.5
774
774
2
392684
3769388
643
108.5
-54
489
489
2
392733
3769870
630
71.4
-53
539
539
2
392638
3769266
653
115
-62
618
618
2
392684
3769388
643
115
-45.6
496
496
2
392733
3769870
630
106.5
-53
458
458
2
392684
3769388
643
81
-59
430
430
2
392638
3769266
653
102.5
-78.5
716
716
2
392733
3769870
630
132
-50
350
350
2
392733
3769870
630
20
-75
490
490
2
392684
3769388
643
109.2
-71.8
554
554
2
392733
3769870
630
355
-71
427
427
2
392638
3769266
653
72.5
-80.4
742
742
2
392684
3769388
643
112
-77
610
610
2
392552
3769328
638
72.5
-86
958
958
2
392552
3769328
638
72.5
-86
929
334
2
392552
3769328
638
72.5
-86
888
309
2
392552
3769328
638
72.5
-86
953
389
2
392684
3769388
643
103.5
-83.8
686
686
2
392684
3769388
643
124
-42.8
431
431
2
392638
3769266
653
102
-63.4
522
522
2
392684
3769388
643
123.5
-45
412
412
2
392638
3769266
653
97.6
-59.8
511
511
2
392684
3769388
643
99
-86.5
784
784
2
392684
3769388
643
99
-86.5
740
435
2
392638
3769266
653
73.3
-71
326
326
2
392638
3769266
653
71.3
-74.3
636
636
2
392552
3769328
638
20
-80.5
1017
1017
2
392552
3769328
638
20
-80.5
1013
611
2
392552
3769328
638
20
-80.5
986
635
2
392638
3769266
653
65.2
-86.8
849
849
2
392638
3769266
653
65.2
-86.8
906
602
2
392684
3769388
643
133.4
-45
582
582
2
392684
3769388
643
127.5
-45
523
523
2
392684
3769388
643
113
-45
479
479
2
392684
3769388
643
106.7
-81
685
685
2
392638
3769266
653
28
-85.2
1002
1002
2
392638
3769266
653
28
-85.2
857
308
2
392638
3769266
653
28
-85.2
887
354
2
392684
3769388
643
106
-82.8
759
759
2
392684
3769388
643
106
-82.8
680
315
2
392684
3769388
643
106
-82.8
708
403
Covid-19 Monitoring and Mitigation Procedures
The Company’ s drill contractor, Boart Longyear, has instituted Covid-19 monitoring procedures for all drill crew members, including daily temperature and symptom checks. Arizona Metals Corp will be provided with daily health tracking updates for the drill crews and has also instituted its own social distancing policies and provided a guidance manual for employees at site.
About Arizona Metals Corp
Arizona Metals Corp owns 100% of the Kay Mine Property in Yavapai County, which is located on a combination of patented and BLM claims totaling 1,300 acres that are not subject to any royalties. An historic estimate by Exxon Minerals in 1982 reported a “ proven and probable reserve of 6.4 million short tons at a grade of 2.2% copper, 2.8 g/t gold, 3.03% zinc, and 55 g/t silver. ” ( Fellows, M.L., 1982, Kay Mine massive sulfide deposit: Internal report prepared for Exxon Minerals Company, November 1982, 29 p.) The historic estimate at the Kay Mine was reported by Exxon Minerals in 1982. The historic estimate has not been verified as a current mineral resource. None of the key assumptions, parameters, and methods used to prepare the historic estimate were reported, and no resource categories were used. Significant data compilation, re-drilling and data verification may be required by a “ qualified person ” ( as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects) before the historic estimate can be verified and upgraded to be a current mineral resource. A qualified person has not done sufficient work to classify it as a current mineral resource, and Arizona Metals is not treating the historic estimate as a current mineral resource.
The Kay Mine is a steeply dipping VMS deposit that has been defined from a depth of 60 m to at least 900 m. It is open for expansion on strike and at depth.
The Company also owns 100% of the Sugarloaf Peak Property, in La Paz County, which is located on 4,400 acres of BLM claims. Sugarloaf is a heap-leach, open-pit target and has a historic estimate of “ 100 million tons containing 1.5 million ounces gold ” at a grade of 0.5 g/t ( Dausinger, 1983, Westworld Resources).
The historic estimate at the Sugarloaf Peak Property was reported by Westworld Resources in 1983. The historic estimate has not been verified as a current mineral resource. None of the key assumptions, parameters, and methods used to prepare the historic estimate were reported, and no resource categories were used. Significant data compilation, re-drilling and data verification may be required by a qualified person before the historic estimate can be verified and upgraded to a current mineral resource. A qualified person has not done sufficient work to classify it as a current mineral resource, and Arizona Metals is not treating the historic estimate as a current mineral resource.
Qualified Person and Quality Assurance/Quality Control
All of Arizona Metals’ drill sample assay results have been independently monitored through a quality assurance/quality control ( “ QA/QC ”) protocol which includes the insertion of blind standard reference materials and blanks at regular intervals. Logging and sampling were completed at Arizona Metals’ core handling facilities located in Anthem and Black Canyon City, Arizona. Drill core was diamond sawn on site and half drill-core samples were securely transported to ALS Laboratories’ ( “ ALS ”) sample preparation facility in Tucson, Arizona. Sample pulps were sent to ALS’ s labs in Vancouver, Canada, for analysis.
Gold content was determined by fire assay of a 30-gram charge with ICP finish ( ALS method Au-AA23). Silver and 32 other elements were analyzed by ICP methods with four-acid digestion ( ALS method ME-ICP61a). Over-limit samples for Au, Ag, Cu, and Zn were determined by ore-grade analyses Au-GRA21, Ag-OG62, Cu-OG62, and Zn-OG62, respectively.
ALS Laboratories is independent of Arizona Metals Corp. and its Vancouver facility is ISO 17025 accredited. ALS also performed its own internal QA/QC procedures to assure the accuracy and integrity of results. Parameters for ALS’ internal and Arizona Metals’ external blind quality control samples were acceptable for the samples analyzed. Arizona Metals is not aware of any drilling, sampling, recovery, or other factors that could materially affect the accuracy or reliability of the data referred to herein.
The qualified person who reviewed and approved the technical disclosure in this release is David Smith, CPG, a qualified person as defined in National Instrument43-101–Standards of Disclosure for Mineral Projects. Mr. Smith supervised the preparation of the scientific and technical information that forms the basis for this news release and has reviewed and approved the disclosure herein. Mr. Smith is the Vice-President, Exploration of the Company. Mr. Smith supervised the drill program and verified the data disclosed, including sampling, analytical and QA/QC data, underlying the technical information in this news release, including reviewing the reports of ALS, methodologies, results, and all procedures undertaken for quality assurance and quality control in a manner consistent with industry practice, and all matters were consistent and accurate according to his professional judgement. There were no limitations on the verification process.
Disclaimer | general |
Ameresco Hosts 2022 Investor Day | - Announces 2024 Adjusted EBITDA Target of $ 300 Million, Double 2021 Levels –
- Articulates Expanding and Rapidly Growing Addressable Markets -
- Provides Details on Expected/Targeted RNG Asset Build Schedule -
- Provides Updates on SCE BESS Project -
FRAMINGHAM, Mass. -- ( BUSINESS WIRE) -- Ameresco, Inc. ( NYSE: AMRC), a leading cleantech integrator specializing in energy efficiency and renewable energy, hosted its previously announced 2022 Investor Day in NYC today. Members of the leadership team discussed key growth opportunities highlighting the Company’ s portfolio of innovative solutions which makes Ameresco a preferred partner for complex and comprehensive advanced energy projects highlighting Ameresco’ s integrated business model and long-term growth opportunities at the nexus of cost savings, energy resiliency and carbon footprint reduction. A copy of the investor day presentation will also be available in the “ Investor Relations ” section of the Company’ s website along with a replay of the day’ s presentations.
“ In conjunction with our first investor day we were pleased to set a 2024 target of $ 300 million in Adjusted EBITDA, or double our recently reported 2021 Adjusted EBITDA results. Ameresco’ s expanding addressable markets along with the continued rapid growth of our Energy Asset business gives us confidence in setting this goal, ” said George P. Sakellaris, President and Chief Executive Officer. “ Our management team and board are fully aligned on executing this impressive profit growth goal. ”
Increased corporate and macro drivers, along with a favorable policy environment, has continued to expand Ameresco’ s addressable markets at a rapid rate. Our strong market share position in the ESCO market as well as our reputation for executing on complex projects put us in a strong position to benefit from a total addressable market which is projected to grow from approximately $ 80B in 2022 to over $ 100B in 2026.
Ameresco provided more color to the roadmap previously outlined for the growth plan in its green gas business, including reaching mechanical completion of RNG assets by the end of 2024 that could result in a four-fold cumulative MMBtu output compared to 2021 levels when the plants are placed in service, with the company’ s RNG Assets in Development as of the end of 2021 already in the permitting or construction phase. As noted previously, the company recently doubled its engineering and construction team to execute this aggressive RNG development strategy.
In addition, Ameresco provided an update on its transformational utility scale battery energy storage systems ( BESS) at three sites for Southern California Edison ( SCE). The company is pleased to report that it has placed purchase orders for all major equipment, has executed subcontracts for all major civil, electrical and mechanical work and that all sites have been mobilized in preparation for equipment deliveries. Ameresco is actively managing global supply chain challenges and continues to expect timely completion of the project.
“ We are excited for the vast opportunity ahead of Ameresco. Our addressable markets continue to expand as customers continue to seek out Ameresco to solve their complex energy and environmental challenges. The breadth and depth of our technological expertise along with our proven track record across all our markets positions Ameresco well to benefit from the rapidly growing number of opportunities in front of us, ” Mr. Sakellaris concluded.
About Ameresco, Inc.
Founded in 2000, Ameresco, Inc. ( NYSE: AMRC) is a leading cleantech integrator and renewable energy asset developer, owner and operator. Our comprehensive portfolio includes energy efficiency, infrastructure upgrades, asset sustainability and renewable energy solutions delivered to clients throughout North America and Europe. Ameresco’ s sustainability services in support of clients’ pursuit of Net-Zero include upgrades to a facility’ s energy infrastructure and the development, construction, and operation of distributed energy resources. Ameresco has successfully completed energy saving, environmentally responsible projects with Federal, state and local governments, healthcare and educational institutions, housing authorities, and commercial and industrial customers. With its corporate headquarters in Framingham, MA, Ameresco has more than 1,200 employees providing local expertise in the United States, Canada, and Europe. For more information, visit www.ameresco.com.
Forward Looking Statements
Any statements in this press release about future expectations, plans and prospects for Ameresco, Inc., including statements about market conditions, pipeline and backlog, as well as expectation on estimated future financial results, statements about our long term outlook and our expected timeline of SCE Project, and other statements containing the words “ projects, ” “ believes, ” “ anticipates, ” “ plans, ” “ expects, ” “ will ” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward looking statements as a result of various important factors, including the timing of, and ability to, enter into contracts for awarded projects on the terms proposed or at all; the timing of work we do on projects where we recognize revenue on a percentage of completion basis, including the ability to perform under recently signed contracts without delay; demand for our energy efficiency and renewable energy solutions; our ability to arrange financing to fund our operations and projects and to comply with covenants in our existing debt agreements; changes in federal, state and local government policies and programs related to energy efficiency and renewable energy and the fiscal health of the government; the ability of customers to cancel or defer contracts included in our backlog; the effects of our acquisitions and joint ventures; seasonality in construction and in demand for our products and services; a customer’ s decision to delay our work on, or other risks involved with, a particular project; availability and costs of labor and equipment particularly given global supply chain challenges; our reliance on third parties for our construction and installation work; the addition of new customers or the loss of existing customers including our reliance on the agreement with SCE for a significant portion of our revenues in 2022; the impact from Covid-19 on our business; market price of the Company's stock prevailing from time to time; the nature of other investment opportunities presented to the Company from time to time; the Company's cash flows from operations; cybersecurity incidents and breaches; and other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the U.S. Securities and Exchange Commission ( SEC) on March 1, 2022. The forward-looking statements included herein represent our views as of the date hereof. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date hereof.
Use of Non-GAAP Financial Measures | general |
Max Stock Limited Reports Fiscal 2021 Full Year and Fourth Quarter Financial Results | Company Executes Non-Binding Memorandum of Understanding Regarding Expansion into Portugal and Spain
CEASAREA, Israel -- ( BUSINESS WIRE) -- Max Stock Limited ( TASE: MAXO) ( the “ Company ”) today reported financial results for the year and fourth quarter ended December 31, 2021.
2021 Full Year Summary Compared with 2020 ( excluding the impact of one-time sales of COVID-19 related goods in 2020):
The Company views comparison to the fourth quarter 2019 period to be more meaningful than the fourth quarter 2020 given the unique operating conditions in Israel during the year ago period as a result of COVID-19. In the fourth quarter of 2020, the Company experienced exceptional year-over-year growth including a 53.9% increase in revenue and a 43.0% increase in comparable store sales, as some Max Stock stores were deemed essential under Israeli regulation and remained opened during two separate lockdowns, while other non-essential businesses were required to temporarily close.
Fourth Quarter 2021 Summary Compared with Fourth Quarter 2019
Fourth Quarter 2021 Summary Compared with Fourth Quarter 2020
Ori Max, Founder and Chief Executive Officer, stated, “ Max Stock achieved another year of double-digit growth in revenues. This growth is particularly impressive in light of the Company's exceptional performance in all parameters in 2020. In 2021 we continued to solidify our position as Israel's leading discount retailer and we continued to expand the product range and categories we offer our customers. Despite sharp increases in freight and logistic costs, our gross margins have remained stable, this, among other things, thanks to the actions we already started to take in 2020 to significantly build up inventories. Max Stock is one of Israel's favorite brands and we are continuing to expand the chain to offer our products in additional locations throughout Israel. From the start of 2022 we have already opened two more stores in Nahariya and in Nof Hagalil and this year we are also planning to open another flagship store in Kfar Saba. I am very pleased with how well the organization is executing our key growth strategies and I look forward to creating even greater value for our customers and our shareholders in the months and years ahead. ”
Full Year Results
Revenue increased 10.2% to ILS 976.3 million in fiscal 2021 as compared with revenue ( excluding one-time bulk sales of COVID-19 related goods of ILS 885.7 million in fiscal 2020. The year-over-year increase in revenue was driven by a 6.5% increase in comparable store sales; an expansion of existing stores and the addition of 5 new stores ( four new owned stores, of which two replaced two other existing stores, and one franchised store); and growth in royalties and sales to franchisees.
Gross profit increased 10.1% to ILS 379.3 million in fiscal 2021 from ILS 344.6 million in fiscal 2020. Gross margin was 38.8% for fiscal 2021 as compared to 38.9% for fiscal 2020.
Selling, general and administrative expenses increased to ILS 251.2 million in 2021 from ILS 203.9 million in 2020, primarily driven by higher expenses related to share-based payments, one-time COVID-19 related discounts and grants received by the Company in 2020, higher salary and wage expenses associated with new stores, higher public company expenses and higher logistics costs ( net of the benefit from the NIS appreciation). Excluding expenses related to share-based payments from both periods, selling, general and administrative expenses as a percentage of net sales were 24.1% compared with 22.8% in the year ago period.
Adjusted EBITDA ( pre IFRS 16) was ILS 142.9 million in fiscal 2021 and ILS 142.7 million in fiscal 2020. Adjusted EBITDA margin decreased to 14.6% in fiscal 2021 compared with 16.1% in fiscal 2020, but expanded 100 basis points vs. fiscal 2019.
Adjusted net income increased 5.2% to ILS 98.1 million, or ILS 0.59 per diluted share, in fiscal 2021 as compared with net income of ILS 93.2 million, or ILS 0.55 per diluted share, in fiscal 2020.
Fourth Quarter Results
Revenue decreased 11.2% to ILS 245.1 million in the fourth quarter 2021 as compared with revenue of ILS 276.1 million in the fourth quarter 2020. The decrease over the same period last year was driven primarily by the one-time benefit in Q4 2020 of Max stores being designated as an essential business while many competitors were temporarily closed due to the spread of COVID-19. Revenue in Q4 2021 increased 36.6% from ILS 179.3 million in Q4 2019.
Gross profit decreased 9.4% to ILS 95.3 million in the fourth quarter 2021 from ILS 105.2 million in the fourth quarter 2020. Gross margin was 38.9% as compared to 38.1% in the last year period and 39.9% in the two year ago period. Gross profit in Q4 2021 increased 33.3% from ILS 71.5 million in Q4 2019.
Selling, general and administrative expenses increased to ILS 68.8 million in the fourth quarter 2021 from ILS 65.7 million in the fourth quarter 2020, primarily driven by growth in volume activity, higher salary and wage expenses associated with new stores and higher expenses related to share-based payments. Selling, general and administrative expenses in Q4 2019 were ILS 50.1 million. Excluding expenses related to share-based payments from both periods, selling, general and administrative expenses as a percentage of net sales were 26.5% in Q4 2021 compared with 22.9% in Q4 2020. The 360-basis point decline was driven primarily by lower revenue in Q4 2021 when compared to the record Q4 2020 period generated from the essential business designation during COVID-19 lockdowns. Selling, general and administrative expenses as a percentage of net sales in Q4 2019 were 27.9%.
Adjusted net income decreased 20.9% to ILS 20.1 million, or ILS 0.12 per share, in the fourth quarter of 2021 as compared with adjusted net income of ILS 25.4 million, or ILS 0.15 per share, in the fourth quarter of 2020. Adjusted net income in Q4 2019 was ILS 14.9, or ILS 0.09 per share.
Adjusted EBITDA decreased 22.2% to ILS 33.4 million in the fourth quarter fiscal 2021 from ILS 42.9 million in the fourth quarter 2020. Adjusted EBITDA in Q4 2019 was ILS 20.6 million.
Other Updates
On March 22, 2022, the Company executed a non-binding memorandum of understanding with a local partner in Portugal ( the “ MoU ”). Under the MoU, the parties will act in the framework of a joint venture controlled by the Company, whose objective is to establish and manage the Max Stock store chain in Portugal and Spain. In the event that the parties execute a binding agreement and subject thereto and an agreed-upon business plan, the joint venture is anticipated to open its first store in Portugal in the next 12 months.
The forecasted financing for the first three years of the venture is up to EUR 5 million, which shall be extended to the joint venture by the Company in accordance with milestones established in the business plan. The sources of financing may be from the Company’ s internal sources and/or from external sources.
The Company assesses that establishing the joint venture will enable it to penetrate the Western European market, as a first step in examining the possibility of expanding its operations to the international market.
Balance Sheet and Cash Flow Highlights
The Company's cash and cash equivalents balance at December 31, 2021 was ILS 50.3 million compared with ILS 142.8 million at December 31, 2020, primarily reflecting the ILS 70.0 million dividend paid to stockholders in 2021. The Company ended the year with total debt of ILS 70.5 million compared with total debt of ILS 36.1 million at the end of fiscal 2020.
Inventories at the end fiscal 2021 increased 67.9% to ILS 213.7 million compared with ILS 127.3 million at the end fiscal 2020. The increase was primarily driven by growth in volume activity, higher expenses related to shipping costs, and a purposeful build up of certain key inventory items in anticipation of potential supply chain disruptions.
Conference Call Information
The Company will host a conference call on March 23, 2022 at 8:30 a.m. Eastern Standard Time to discuss fiscal 2020 results. There will be a slide presentation that accompanies the call. The slides and audio will be accessible through a live webcast at https: //ir.maxstock.co.il/en/event-en/. Investors and analysts interested in participating in the call are also invited to dial ( 877) 407-9716 ( US) or ( 201) 493-6779 ( international) and entering the conference identification number: 13727860.
A telephone replay of the call will be available until March 30, 2022, ( 844) 512-2921 ( US) or ( 412) 317-6671 ( international) and entering the conference identification number: 13727860.
About Max Stock
Max Stock is Israel’ s leading extreme value retailer, currently present in 55 locations throughout Israel. We offer a broad assortment of quality products for customers’ everyday needs at affordable prices, helping customers “ Dream Big, Pay Small ”. For more information, please visit https: //ir.maxstock.co.il
Forward-Looking Statements
It should be emphasized that this report includes forward-looking information as defined under the Securities Law, 5728-1968. Forward-looking information is uncertain information regarding the future, including forecasts, projections, estimates or other information which refer to a future event or matter, the eventuation of which is uncertain and/or not within the Company’ s control. The forward-looking information included in this report is based on the current information held by the Company or its current assessments, as of the publication date of this report. | general |
Theta Lake Attracts $ 50 Million in Series B Funding to Fuel Expansion of Security and Compliance Solutions for Modern Communications and the Future of Work | Battery Ventures Leads Watershed Round Along with Zoom Video Communications, Inc., Salesforce Ventures, RingCentral Ventures, Cisco Investments, and More to Drive Theta Lake’ s Scale to Meet Customer and Market Demand Amid Shift to Hybrid- and Remote-Work Setups
SANTA BARBARA, Calif. -- ( BUSINESS WIRE) -- Theta Lake, the leader in unified communication security and compliance solutions tailored to today’ s new, increasingly digital and distributed world of work, announced a $ 50 million series B funding round led by Battery Ventures. The round also includes investments from existing investors such as Lightspeed Venture Partners, Neotribe Ventures and Cisco Investments, as well as new investments from RingCentral Ventures, Salesforce Ventures, and Zoom Video Communications, Inc. The new investment brings the company’ s total funding raised to date to over $ 70 million.
Leveraging certified integration partnerships with the world’ s leading unified-communication and online-meeting providers, Theta Lake is helping organizations manage increasingly complex security and compliance issues across new video, voice, chat, and document platforms that are quickly augmenting or replacing older technologies, like traditional e-mail and intranets, as well as in-person meetings. The latest funding round is a validation that the workplace has become increasingly digital since the COVID-19 pandemic, and organizations need new tools to stay compliant and avoid damaging outside cyber threats.
“ Theta Lake’ s proven, cloud-native technology is gaining traction in the market amid tectonic shifts in the way organizations work, both online and offline, ” said Dharmesh Thakker, a Battery Ventures general partner who is joining Theta Lake’ s board. “ The company’ s value proposition is clear: Its technology helps customers avoid costly regulatory missteps and potentially devastating data breaches—mistakes and threats that might not be caught with legacy, email-centric security and compliance technologies. I am so impressed with the Theta Lake team and look forward to helping them continue to scale, and to execute on its broader vision. ”
“ At Theta Lake, we are rearchitecting compliance with integrated security for the modern communication and information sharing platforms of today’ s workforce, ” said Devin Redmond, CEO and Co-founder of Theta Lake. “ We have seen tremendous adoption of our platform and it is inspiring to see customers using our solutions to unlock more collaboration and productivity for their end-users. Modern compliance and security should be a strategic enabler and we are proving that it can be. The addition of Battery Ventures, along with so many of our strategic integration partners, coupled with our existing investors, will drive our ability to innovate and deliver value to our customers at even a more global scale. ”
Theta Lake’ s category-defining technology and design leverages patented machine and deep learning ( ML and DL), natural-language processing ( NLP), and enhanced user experience to capture, archive, detect, and surface risks across video, visual, voice, chat, document, and email content. This includes seamless, truly certified integrations and partnerships with the industry’ s leading unified-communication, video-meeting, asynchronous-video, and collaboration suites. These include Webex by Cisco, Microsoft 365 and Teams, RingCentral, Salesforce, Symphony, Verint, Vidyard, Zoom, and many more.
Theta Lake has an industry agnostic platform, currently servicing customers across verticals including financial services, the public sector, healthcare, technology and others to unlock the collaboration-first workplace. By adding advanced security and compliance coverage across what is shared, shown, spoken, and typed, Theta Lake increases the efficiency and effectiveness of compliance and risk teams, while reducing the cost of security and compliance.
In addition to having a “ 100% would recommend rating ” from customers in the Enterprise Information Archiving market via Gartner® Peer InsightsTM, Theta Lake received an honorable mention in the 2022 Gartner Magic QuadrantTM for Enterprise Information Archiving1. The “ Strategic Planning Assumptions ” for the 2022 Gartner Magic Quadrant for Enterprise Information Archiving2 are:
With the industry’ s first patent for risk detection in video communication, Theta Lake is built for the world of video, voice, and workstream collaboration with partner integrations and now, strategic investments from many of the key leaders in the video meeting and workstream collaboration space.
Cisco Investments: “ Cisco Investments and the Cisco Collaboration team are excited to continue as investors and collaborators with Theta Lake, ” said Abhay Kulkarni, Senior Vice President, General Manager, Webex, Cisco. “ We have seen global customers significantly expand the depth of their usage of Webex Meetings and Messaging by using the integrated solution. That includes hundreds of millions of meetings, messages, and shared file content archived and scanned for compliance, data exposure, and security risks. The ability to bring integrated advanced compliance and security capabilities to Webex customers globally has proven tremendously successful and creates a foundation for our ongoing collaboration. ”
RingCentral Ventures ( NYSE: RNG): “ At RingCentral Ventures, we are excited by the positive impact the Theta Lake integration into our platform has had for our customers, ” said Kira Makagon, Chief Innovation Officer of RingCentral. “ Leveraging compliance and security to increase collaboration adoption is a compelling value proposition. As a RingCentral Premier Partner with tightly integrated technology, we now have integrated customers with Theta Lake in over three countries and across more than four industry verticals. We are happy to invest in Theta Lake’ s ability to continue innovating and delivering value for RingCentral customers. ”
Salesforce Ventures ( NYSE: CRM): “ Salesforce Ventures is very excited to expand our relationship from ISV partner to an investor in Theta Lake’ s continued growth, ” said Eran Agrios, SVP and GM of Financial Services at Salesforce. “ Salesforce and Slack have a vision of enabling the digital HQ, along with integrating the compliance and security technology advancements that Theta Lake continues to deliver for modern communications. ”
Zoom ( NASDAQ: ZM): “ At Zoom, our accelerated pace of innovation addresses customers’ needs quickly and securely, which is why we understand the value of security and compliance for the modern collaboration stack that Theta Lake enables, ” said Oded Gal, Chief Product Officer at Zoom. “ As one of the earliest integration partners for Theta Lake, we are excited to invest in their future success and drive more joint innovation around integrated security and compliance across the Zoom communications platform. ”
“ We have been a believer in the vision of Theta Lake as an ‘ N-of-one’ security and compliance player for modern communications since leading the Series A, ” said Arif Janmohamed, Partner at Lightspeed. “ Its accelerating global success has been tremendous, and we continue to be excited in fueling that growth. ”
“ Since leading the company’ s seed round, we’ ve been amazed by the team, technology, and market opportunity, ” said Swaroop “ Kittu ” Kolluri, Founder and Managing Partner Neotribe Ventures. “ Although not a given, the successful execution of its plan to-date is certainly no surprise, and we are thrilled to invest in accelerating that success out of our new growth fund. ”
To learn more about the series B funding and Theta Lake’ s vision for the future, please read our blog.
1 Gartner Peer Insights ratings are current as of March 16, 2022.
2 Gartner, Magic Quadrant for Enterprise Information Archiving, 2022, Michael Hoeck, Jeff Vogel, January 24, 2022.
Gartner Disclaimer
Gartner and Magic Quadrant are registered trademarks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. | general |
Jointly Released by Tricor China and the Tsinghua University PBC School of Finance ( Tsinghua PBCSF), 'China Hedge Fund Report 2022 ' Provides an Introduction to Hedge Funds in China | Including an Assessment of the Market Landscape, the Boom of the Private Fund Sector, and Recommendations for Foreign Investors Looking to Leverage the Burgeoning Opportunities
HONG KONG SAR -- ( BUSINESS WIRE) --’ China Hedge Fund Report 2022’ combines Tricor’ s many years of experience serving private fund managers and funds in China with in-depth industry research and insights from PBC School of Finance, Tsinghua University. The publication summarizes the state of China's capital market environment, the current situation and trends of private fund development, regulatory requirements, and considerations for establishment and operation.
Along with China’ s rapid economic development, rising wealth and expanding middle class, there is still much room for improvement with regard to the proportion of financial assets held by Chinese households, which brings huge growth potential to the wealth management industry and a growing demand for diversification and private equity products.
The number and scale of private equity investment fund offerings in China have soared in recent years. In the last two years, the market scale increased by more than 70%. According to the Asset Management Association of China, by the end of 2021, there were over 70,000 private equity investment fund offerings in China, with a total scale of over RMB 6 trillion, accounting for 31% of total private funds. Led by the international ESG ( environment, social responsibility and corporate governance) investment boom and driven by domestic strategies and policies, many more private equity investment funds are incorporating ESG factors into their investment decisions and processes. ESG performance and responsible investment will further promote the development of high-quality private funds.
China's capital market has been gradually opening up, with more and more foreign investors taking part in China's capital market through qualified foreign institutional investors ( QFII), RMB qualified foreign institutional investors ( RQFII), Shanghai-Shenzhen-Hong Kong Stock Connect and other channels. Of particular note are private fund managers entering China's capital market in recent years. As of December 2021, there were 57 foreign private fund managers in China, 10 of which had asset management scale of more than RMB 1 billion.
Chinese regulators have introduced detailed requirements for foreign investors to set up private fund management companies in China. Due to the nature of the industry, the rapid growth of private funds will be accompanied by further tightening of regulations and higher information disclosure requirements. Private fund managers must also pay closer attention to operational compliance.
Despite the numerous challenges, including evolving compliance requirements, local competition and operational complexity, China has created a positive investment environment and attractive opportunities for private funds. As market volatility increases due to rapid economic development and the pandemic, foreign private funds are picking up pace, and it is the right time for foreign investors to enter China for private placement.
Xinyuan Chair Professor of Finance and Associate Dean at Tsinghua PBCSF, Xiaoyan Zhang, said “ In recent years, with the government’ s progressive efforts to promote the opening-up of its capital market, an increasing number of foreign institutional investors are gaining greater access to China’ s colossal market. Foreign private fund managers have emerged as very prominent players. Though their rise has contributed to a more diversified pool of investors in the Chinese capital market, it has also brought various challenges for Chinese-funded participants. Against this backdrop, this report features a systematic review of foreign private funds in China, with a focus on the regulatory environment, industrial development and rules on fund establishment, among other key aspects. Based on a combination of Tsinghua PBCSF’ s professional insights and the rich experience of Tricor as a service provider for private funds, this report aims to shed some light on foreign private funds in China, as well as practical implications. ”
CEO of Tricor Mainland China, Hailiang Zhang, said “ With ongoing improvements to the business environment and China’ s financial opening up in full swing, we have witnessed heightened optimism among foreign private funds in the Chinese investment market. Despite the COVID-19 pandemic, the Chinese economy has exhibited stunning resilience, and foreign players are also enjoying widened access to the market. The hedge fund business in China has boomed in recent years. Meanwhile, Chinese investors are becoming increasingly particular about hedge funds’ professional ability, investment strategies and services, posing further challenges on top of compliance with regulatory requirements, local competition and operational complexity. With tighter regulations and stricter information disclosure requirements being implemented in the near future, private funds with strong professional management teams and well-established risk control systems will be favored by investors. ”
Please view our report here: https: //www.tricorglobal.com/china-hedge-fund-report-2022
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About Tricor Mainland China
Tricor China specializes in guiding investors to navigate the vast Mainland China market, where business conditions and industry specific requirements may vary from province to province. Our expert teams across our 5 offices in Mainland China offers a comprehensive range of advisory services with a focus on business services ( accounting & financial reporting, treasury & payment administration, tax compliance & advisory, payroll outsourcing, employment & dependent visa application) and corporate services ( entity formation & business establishment, bank account opening, corporate governance, compliance & secretarial services, process agent, due diligence & corporate health check, liquidation, dissolution & cessation of business).
Tricor Group ( Tricor) is Asia’ s leading business expansion specialist, with global knowledge and local expertise in business, corporate, investor, human resources & payroll, corporate trust & debt services, and governance advisory. Tricor provides the building blocks for clients’ business growth, from incorporation to IPO. Tricor has had a rapid expansion through organic growth and development as well as partnerships, mergers and acquisitions. The Group today has ~50,000 clients globally ( including ~20,000 clients in Mainland China), a staff strength of ~3,000 and a network of offices in 49 cities across 22 countries / territories. Our client portfolio includes ~2,000 listed companies in Hong Kong SAR, Mainland China, Singapore and Malaysia, and more than 40% of the Fortune Global 500 companies, as well as a significant share of multinationals and private enterprises operating across international markets.
For more information, please visit: Website: www.tricorglobal.com WeChat: TricorGroup LinkedIn: Tricor Group
About Tsinghua PBCSF
The PBC School of Finance ( PBCSF), Tsinghua University’ s 17th school, was founded on March 29, 2012 as a joint venture between the University and the People’ s Bank of China ( PBC). It was built on the successes of the Graduate School of PBC, an esteemed school founded by the Central Bank in the early 1980s.
With the mission of promoting excellence in the finance industry and financial regulation through top-notch education and cutting-edge research, Tsinghua PBCSF, following advanced education modes of international financial programs and business schools, is committed to building a world-class platform for financial education, finance and policy research. | general |
US new home sales fell but supply crunch eases in February | Hi, what are you looking for?
Sales of new homes fell two percent last month to an annual rate of 772,000, seasonally adjusted,.
By
Published
After months of high prices and scarcity, the supply of new US homes on the market increased in February, though sales fell once again amid rising lending rates, according to government data released Wednesday.
Sales of new homes fell two percent last month to an annual rate of 772,000, seasonally adjusted, and January sales were revised down sharply, the Commerce Department said
The result was substantially worse than analysts expected.
The US real estate market boomed during the Covid-19 pandemic thanks to the Federal Reserve’ s easy money policies and the disruptions to daily life caused by the coronavirus.
However, the boom started to fade as available properties grew scarce and prices surged, and now is being hit by the Fed’ s interest rate hikes aimed at lowering inflation that have tightened borrowing conditions.
“ We are braced for sales ( to) quickly to return to their pre-Covid level and then drop to multi-year lows in the late summer. With inventory already quite high, at just over six months, the rate of price gains will slow sharply too, ” Ian Shepherdson of Pantheon Macroeconomics said.
The supply of new real estate for sale last month ticked up for the second month, rising to 407,000, an increase of 9,000 compared to January, which is equal to a 6.3 months supply at the current sales pace, the report said.
Meanwhile the median sales prices, not seasonally adjusted, fell in February to $ 400,600, much lower than the month prior, when it came in at $ 427,400. However, the average sales prices rose to $ 511,000 from $ 494,000 in January.
Sales were uneven across regions, shooting up 59.3 percent in the Northeast and growing 6.3 percent in the Midwest. But in the West, they fell 13 percent, while in the South, the drop was nearly two percent.
With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.
The dangers facing America's homeless were highlighted earlier this month when a man murdered two homeless men.
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Philippine social media has exploded with support for presidential election favourite Ferdinand Marcos Junior, driven by a misinformation campaign.
The timing of the new variant is interesting in a black humor sort of way.
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Flanders Investment and Trade décerne à Legend Biotech le titre de Newcomer of the Year | SOMERSET, New Jersey -- ( BUSINESS WIRE) -- Legend Biotech Corporation ( NASDAQ: LEGN) ( Legend Biotech), une société de biotechnologie mondiale qui développe, fabrique et commercialise des thérapies innovantes pour traiter des maladies potentiellement mortelles, a été désignée Révélation de l'année lors de la dixième édition annuelle du Foreign Investment Trophy, organisé par Flanders Investment & Trade ( FIT).
Flanders Investment and Trade est un organisme gouvernemental flamand qui gère les projets d'investissement en Flandre, une région dans le nord de la Belgique, et qui soutient les entreprises flamandes. Le Foreign Investment Trophy récompense des sociétés internationales avec des projets d'investissement en Flandre, et le prix Newcomer of the Year de FIT est décerné à des organisations ayant récemment démarré d'importants projets d'investissement dans la région.
Legend Biotech a reçu la distinction pour son investissement conjoint dans une unité de fabrication de pointe en Flandre avec Janssen Pharmaceutica N.V. ( Janssen). Tout premier site de fabrication de thérapies cellulaires en Flandre, l’ installation fera office de pôle régional pour la production de thérapies cellulaires pour les patients en Europe, au Moyen-Orient et en Afrique.
Le centre de fabrication de 26 000 mètres carrés fait partie d’ une collaboration entre Legend et Janssen visant à faire progresser la fabrication de ciltacabtagène autoleucel ( cilta-cel), une thérapie à cellules CAR-T ciblant l'antigène de maturation des cellules B en cours d'évaluation pour le traitement du myélome multiple récidivant ou réfractaire par l’ Agence européenne des médicaments. En avril 2019, cilta-cel a obtenu la désignation PRIME ( médicaments prioritaires). La désignation PRIME permet une interaction accrue et un dialogue anticipé avec les développeurs de médicaments prometteurs, en vue d’ optimiser les plans de développement de médicaments et d’ accélérer l’ évaluation d’ avancées scientifiques ciblant un important besoin médical non satisfait.
Le centre de fabrication européen, dont la mise en service est prévue en 2023, sera géré par Legend Biotech.
Lorsqu’ il a reçu le prix en Belgique, Ying Huang, PhD, PDG et directeur financier de Legend Biotech, a déclaré: « Cette distinction constitue une reconnaissance spéciale de notre investissement en Flandre, l’ un des pôles biotechnologiques les plus prometteurs d’ Europe. Le prix Newcomer of the Year illustre les progrès accomplis depuis la création de Legend dans le but d’ appliquer la thérapie cellulaire aux maladies rares et peu communes. Nous nous réjouissons à l’ idée de progresser vers cet objectif et de jouer un rôle important dans l’ écosystème de Gand au cours des années à venir. »
À propos de Legend Biotech
Legend Biotech est une société de biotechnologie mondiale qui se consacre au traitement de maladies potentiellement mortelles, dans le but de permettre un jour une guérison. Basés à Somerset, dans le New Jersey, nous développons des thérapies cellulaires avancées sur un large éventail de plateformes technologiques, dont une immunothérapie à base de cellules tueuses naturelles ( NK), de récepteur des cellules T ( TCR-T) et de cellules T à récepteur antigénique chimérique autologue et allogénique. Dans nos trois sites de R & D à travers le monde, nous appliquons ces technologies innovantes pour faciliter la découverte de substances thérapeutiques sûres, efficaces et de pointe pour les patients dans le monde entier.
Pour en savoir plus, consultez www.legendbiotech.com, vous pouvez aussi nous suivre sur Twitter et LinkedIn.
À propos de Flanders Investment & Trade
Flanders Investment & Trade ( FIT) promeut activement les affaires internationales durables en Flandre en tant qu’ élément clé du développement socioéconomique de la région. FIT réalise cela en soutenant des entreprises basées en Flandre dans le cadre de leurs activités commerciales à l’ international et en attirant des investisseurs étrangers. FIT aide des entreprises de toute la Flandre dans leurs activités internationales et fournit des conseils et un support personnalisés. Les entreprises peuvent faire appel aux réseaux de contacts locaux et internationaux de l’ agence, tandis que FIT offre également un appui financier et des informations au sujet des incitations financières disponibles.
Mise en garde à l'égard des énoncés prospectifs
Les énoncés contenus dans le présent communiqué de presse concernant les attentes, plans et perspectives futurs, ainsi que tout autre énoncé se rapportant à des questions qui ne sont pas des faits historiques, constituent des “ énoncés prospectifs ” au sens de la loi Private Securities Litigation Reform Act de 1995. Ces énoncés incluent, sans toutefois s’ y limiter, les énoncés relatifs aux stratégies et objectifs de Legend Biotech; les énoncés relatifs au CARVYKTI™, dont les attentes de Legend Biotech pour le CARVYKTI™, comme ses attentes quant à la fabrication et à la commercialisation du CARVYKTI™ et l'effet potentiel du traitement avec le CARVYKTI™; les énoncés relatifs aux soumissions pour le cilta-cel et les progrès de ces soumissions auprès de l'Agence américaine des produits alimentaires et médicamenteux ( FDA), de l'Agence européenne des médicaments ( EMA), du Centre chinois d'évaluation des médicaments de l’ Administration nationale des produits médicaux ( CDE) et d’ autres autorités réglementaires; le calendrier prévu des essais cliniques et la capacité à les faire avancer, y compris le recrutement des patients; le dépôt de demandes IND de “ nouveau médicament de recherche ” auprès des autorités réglementaires et le suivi de ces demandes; la capacité à générer, analyser et présenter les données des essais cliniques; ainsi que les avantages potentiels des produits candidats de Legend Biotech. Les termes “ anticiper ”, “ penser que ”, “ continuer ”, “ estimer ”, “ s’ attendre à ”, “ envisager ”, “ planifier ”, “ potentiel ”, “ prédire ”, “ projeter ”, “ cibler ”, l’ utilisation du futur, du conditionnel ou d’ expressions similaires visent à identifier les énoncés prospectifs; cependant, tous les énoncés prospectifs ne contiennent pas ces mots identifiants. Les résultats réels pourraient différer sensiblement de ceux indiqués dans ces énoncés prospectifs en raison de divers facteurs importants. Les attentes de Legend Biotech pourraient être affectées par, entre autres, les incertitudes liées au développement de nouveaux produits pharmaceutiques; des résultats d’ essais cliniques inattendus, notamment en raison de l’ analyse supplémentaire de données cliniques existantes ou de nouvelles données cliniques inattendues; des actions ou retards imprévus liés à la réglementation, y compris les demandes de données de sécurité et/ou d’ efficacité ou d’ analyses de données supplémentaires, ou la réglementation gouvernementale dans son ensemble; des retards imprévus en raison d’ actions entreprises, ou de carences d'action, de la part de nos partenaires tiers; les incertitudes découlant de la contestation de brevets ou de la protection d’ autres propriétés intellectuelles exclusives de Legend Biotech, y compris les incertitudes associées au processus de contentieux aux États-Unis; la concurrence en général; les prix de la part des gouvernements, de l'industrie et du grand public et les autres pressions politiques; la durée et la gravité de la pandémie de COVID-19 et les mesures gouvernementales et réglementaires mises en œuvre en réponse à l'évolution de la situation; ainsi que les autres facteurs examinés dans la section “ Risk Factors ” du Rapport annuel de Legend Biotech déposé auprès de la Commission américaine des opérations de Bourse ( la “ SEC ”) le 2 avril 2021. Si un ou plusieurs de ces risques ou incertitudes se matérialisent, ou si les hypothèses sous-jacentes s'avèrent inexactes, les résultats réels pourraient varier considérablement par rapport à ceux décrits dans ce communiqué de presse comme étant anticipés, espérés, estimés ou attendus. Les énoncés prospectifs contenus dans ce communiqué de presse ne sont valables qu’ à la date de publication de celui-ci. Legend Biotech rejette expressément toute obligation de mettre à jour un quelconque énoncé prospectif, que ce soit à la suite de nouvelles informations, d’ événements futurs ou pour toute autre raison.
Le texte du communiqué issu d’ une traduction ne doit d’ aucune manière être considéré comme officiel. La seule version du communiqué qui fasse foi est celle du communiqué dans sa langue d’ origine. La traduction devra toujours être confrontée au texte source, qui fera jurisprudence. | general |
COVID vaccine maker Moderna flags Japan ambition with sumo sponsorship | - Moderna Inc is sponsoring sumo flags in its first such promotion in Japan, as the COVID-19 vaccine maker seeks to wrestle market share from compatriot Pfizer Inc.
The U.S. firm's introduction to the broader Japanese public was set back after some of its doses last year were found to be contaminated, although it has clawed back market share since with the help of a government-endorsed program.
Now, as the government plans a fourth-dose vaccination program, Moderna is looking to sumo to boost its public appeal as it seeks to expand beyond COVID-19 shots.
The sumo flags, known as kensho-hata, are held by banner bearers circling the sumo ring and have traditionally served as ads for everyday goods such as vitamins, teas, juices and rice.
Moderna debuted its banner on March 13 at the start of the national sport's two-week spring tournament - a simple white design with the company name in chunky, red, sumo-style script.
The promotion signals the company's growth aspirations in Japan, which has come to know Moderna through some 50 million doses of its mRNA-based COVID-19 vaccine imported last year by local partner Takeda Pharmaceutical Co Ltd.
Those doses made up less than 20% of shots in Japan's initial double-shot inoculation push, with the bulk made up of the shot Pfizer developed with Germany's BioNTech SE.
During that time, 1.63 million Moderna doses were recalled in Japan after metal fragments were found in some vials - a problem traced to a partner factory in Spain.
When booster shots became available, residents rushed to book appointments for Pfizer supplies, leaving many Moderna slots vacant. That prompted the government to actively promote a vaccine mix-and-match strategy, emphasizing speed over brand.
That helped the numbers even out, with Moderna accounting for about 42% of booster shots.
Last week, the government said vaccines for fourth doses will be split nearly even between the two suppliers. It plans to secure 75 million doses from Pfizer and 70 million from Moderna.
For the fourth shot, which is under development and will be a combination of vaccines designed for the Delta and Omicron variants of the novel coronavirus, Moderna directly holds the rights in Japan, Rami Suzuki, Moderna's recently appointed representative director in Japan, told Reuters.
Takeda said it is in discussion with Moderna about distribution.
Moderna, founded in 2010 and based in Cambridge in the U.S. state of Massachusetts, did not have an office in Japan until October, and Suzuki, who previously held roles at pharmaceutical firms Janssen and Eisai Co Ltd, joined in November.
Going forward, the company plans to combine COVID-19 and influenza vaccines in one shot, with possible market introduction in 2023, Suzuki said. Later, the combined shot could include a third vaccine for respiratory syncytial virus ( RSV), she said.
The Japan push comes as Moderna increases its Asia presence with a plan to produce mRNA vaccines in Australia and create four subsidiaries in Malaysia, Taiwan, Singapore and Hong Kong.
It also has a vaccine production deal with South Korean drugmaker Samsung BioLogics Co Ltd.
Based on trials showing Moderna's shot has the strongest antibody effect when combined with other vaccines, the firm '' still has opportunity to seize market share from Pfizer in terms of boosters, '' said healthcare analyst Xinyao Wang, who publishes on the SmartKarma platform. ( Reporting by Rocky Swift; Editing by Miyoung Kim and Christopher Cushing) | business |
South Korea central bank governor nominee Rhee says inflation, economic risks mounting | `` Concerns that inflation and economic risks at home can intensify simultaneously are mounting as uncertainty in external conditions heightens, '' Rhee Chang-yong, a veteran International Monetary Fund official, said in a written speech.
His remarks come a day after the presidential office nominated Rhee as the new central bank chief.
The uncertainty in external conditions Rhee mentioned includes a quicker normalisation in Federal Reserve's monetary policy, economic slowdown in China due to the fast-spreading Omicron coronavirus variant and the Ukraine war.
`` I will elaborate my ideas on the policy and organisational management through the upcoming parliamentary hearing session, '' Rhee said.
( Reporting by Joori Roh; Editing by Sam Holmes) | business |
Low-cost student-designed filter removes lead from tap water | Lead-contaminated tap water is still a problem in much of the world, where conventional lead removal filters may be too expensive for most households. An inexpensive new filter could help – and it was designed by a group of high school students.
The project is being spearheaded by Rebecca Bushway, who is a science teacher at Barrie Middle and Upper School in Silver Spring, Maryland. She was motivated after seeing video of a woman in Michigan turning on her tap, releasing a stream of water which was visibly brown with dissolved metals from her home's pipes.
Bushway asked the students in her upper-level high school chemistry class if they could invent a low-cost filter that would remove lead from such water.
Due to COVID restrictions at the time, the home-based students proceeded to discuss designs for the device via the internet. When they returned to the classroom last spring, they 3D-printed a prototype out of biodegradable plastic.
The resulting filter is 3 inches long ( 76 mm), and screws onto the end of an existing faucet. It utilizes a mixture of calcium phosphate and potassium iodide powder, contained within a series of hexagonal structures through which the water spirals on its way down.
As lead-tainted water flows through the device, the lead binds with the calcium phosphate, resulting in the formation of lead phosphate and free calcium. A nylon screen at the bottom of the filter traps the lead phosphate, which is an inert solid. The calcium, which is harmless to consume, proceeds through.
Once the calcium phosphate is used up, dissolved lead in the water reacts with the potassium iodide, causing the water to turn yellow. This visual cue lets homeowners know that the filter is no longer functioning, and needs to be replaced.
That said, plans call for a future version of the device to incorporate a miniature spectrophotometer and an LED at the bottom. As soon as the spectrophotometer detects the yellow color – even when lead levels are so low that the color isn't detectable by the human eye – it will trigger the LED to illuminate. It is hoped that once they reach production, the filters could sell for as little as US $ 1 each.
`` Ultimately, this experience has shown students that they can make a difference to somebody, and there are problems that they can fix with science, '' said Bushway.
Team members are presenting their work this week at spring meeting of the American Chemical Society.
Source: American Chemical Society via EurekAlert | science |
Digihost Sets Fourth Quarter and Full Year 2021 Earnings | March 23, 2022 12:04 ET | Source: Digihost Technology Inc. Digihost Technology Inc. Toronto, Ontario, CANADA
This news release constitutes a “ designated news release ” for the purposes of the Company’ s prospectus supplement dated March 4, 2022 to its short form base shelf prospectus dated February 23, 2022.
TORONTO, March 23, 2022 ( GLOBE NEWSWIRE) -- Digihost Technology Inc. ( “ Digihost ” or the “ Company ”) ( Nasdaq: DGHI; TSXV: DGHI), an innovative U.S. based Bitcoin self-mining company will host a conference call on Monday, March 28, 2022 at 5:00 p.m. Eastern Time to discuss its operations and results from the fourth quarter and full year 2021. The Company will report its fiscal fourth quarter and full year 2021 financial results audited by Raymond Chabot Grant Thornton LLP and a press release detailing these results will be issued prior to the commencement of trading on the same day.
Digihost management will provide prepared remarks, followed by a question-and-answer period. Pre-submitted questions may be considered, and interested parties may submit questions at michel @ digihostblockchain.com and don @ digihostblockchain.com through March 25, 2022.
Date: Monday, March 28, 2022 Time: 5:00 p.m. Eastern time ( 2:00 p.m. Pacific time) Local - Toronto: ( +1) 416-764-8658Toll Free - North America: ( +1) 888-886-7786
Please call the conference telephone number approximately 10 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Digihost’ s investor relations team at ( +1) 818-280-9758.
A replay of the call will be available after 7:00 p.m. Eastern time on the same day through Monday, April 4, 2022 at 11:59 p.m. Eastern time.
Digihost is a growth-oriented blockchain technology company primarily focused on Bitcoin mining. Through its self-mining operations and joint venture agreements, the Company is currently hashing at a rate of approximately 500PH.
Digihost Technology Inc. www.digihost.ca Michel Amar, Chief Executive Officer Email: michel @ digihostblockchain.com Phone: 1 818 280-9758
Cautionary Statement Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. 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.
Forward-Looking Statements Except for the statements of historical fact, this news release contains “ forward-looking information ” and “ forward-looking statements ” ( collectively, “ forward-looking information ”) that are based on expectations, estimates and projections as at the date of this news release and are covered by safe harbors under U.S. and Canadian securities laws. Forward-looking information in this news release includes information about hashrate and infrastructure expansion, diversification of operations, potential further improvements to profitability and efficiency across mining operations, potential for the Company’ s long-term growth, and the business goals and objectives of the Company. Factors that could cause actual results, performance or achievements to differ materially from those described in such forward-looking information include, but are not limited to: continued effects of the COVID19 pandemic may have a material adverse effect on the Company’ s performance as supply chains are disrupted and prevent the Company from operating its assets; the ability to establish new facilities for the purpose of cryptocurrency mining; receipt of Public Service Commission approval or other regulatory or board approvals; the ability to establish new facilities for the purpose of research & development; a decrease in cryptocurrency pricing, volume of transaction activity or generally, the profitability of cryptocurrency mining; delivery of mining rigs for self-mining and for hosting may not be realized in the number anticipated, or at all, or on the schedule anticipated, and resulting hashing power may materially differ from that anticipated; further improvements to profitability and efficiency may not be realized; the digital currency market; the Company’ s ability to successfully mine digital currency on the cloud; the Company may not be able to profitably liquidate its current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on the Company’ s operations; the volatility of digital currency prices; and other related risks as more fully set out in the Annual Information Form of the Company and other documents disclosed under the Company’ s filings at www.sedar.com. The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about: the current profitability in mining cryptocurrency ( including pricing and volume of current transaction activity); profitable use of the Company’ s assets going forward; the Company’ s ability to profitably liquidate its digital currency inventory as required; historical prices of digital currencies and the ability of the Company to mine digital currencies on the cloud will be consistent with historical prices; and there will be no regulation or law that will prevent the Company from operating its business. The Company has also assumed that no significant events occur outside of the Company’ s normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein. Except as expressly required by applicable securities laws, the Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, changed circumstances or future events or for any other reason. | general |
Ouster and Hexagon Launch New Advanced Lidar Security Solution for the Multibillion Dollar Physical Security Market | Hexagon company, Tacticaware, developed an exclusive version of its Accur8vision security solution with Ouster for broad adoption across public and private infrastructure
Ouster x Accur8vision security solution ( Graphic: Business Wire)
SAN FRANCISCO -- ( BUSINESS WIRE) -- Ouster, Inc. ( NYSE: OUST) ( “ Ouster ” or “ the Company ”) and Tacticaware, a Hexagon ( Nasdaq Stockholm: HEXA B) company that manufactures and produces the volumetric security system Accur8vision, today announced the launch of their joint security solution: Ouster x Accur8vision. The solution combines Ouster’ s 3D digital lidar technology with Hexagon’ s industry-leading security software to target the multibillion dollar physical security market.
The Ouster x Accur8vision solution is capable of monitoring and protecting a wide-variety of environments, including critical infrastructure such as airports, commercial buildings, and residential properties. Incumbent technologies, such as cameras and radar, are not sufficient in complex environments, such as a crowded setting, or where visibility is reduced. Ouster x Accur8vision is designed to enhance existing security systems by providing an added layer of perception that can be used to proactively detect potential threats.
The Ouster x Accur8vision security solution helps operators:
“ Our solution combines Ouster’ s high-resolution, reliable digital lidar technology with Hexagon’ s industry-leading security expertise, ” said Martin Vojtek, Chief Executive Officer of Tacticaware. “ Together, we are introducing a revolutionary security product that is designed to address the single biggest and most expensive pain point for security operators today: false alarms. Our goal is to help customers improve the accuracy of their existing security systems while reducing operational costs. ”
The global physical security market is projected to reach an estimated $ 153 billion by 2023, in part driven by a rise in intrusions, terrorism, and other threats1. Within private organizations, there is a growing interest in leveraging physical security data in other parts of the business, such as to understand occupancy management and people counting. While demand for security solutions has been increasing, government regulations around data privacy, such as the U.S. Facial Recognition and Biometric Technology Moratorium Act, have limited the use of biometric surveillance, such as camera-based security systems. Lidar-based security solutions are uniquely positioned to fill the gap.
“ A high-resolution lidar security system is capable of transforming the security market by providing the accurate and comprehensive detection required without infringing on citizens’ privacy, ” said Itai Dadon, Vice President of Smart Infrastructure at Ouster. “ Performance and reliability are critical for the security market. The versatility of our solution makes it an optimal choice for any security operator, from government to enterprise campuses or even private homes. We expect this collaboration to jumpstart Ouster’ s entry into the security market, further diversifying its revenue streams and accelerating the adoption of digital lidar. ”
About Hexagon
Hexagon is a global leader in digital reality solutions that combine sensor, software and autonomous technologies. Hexagon is putting data to work to boost efficiency, productivity, quality and safety across industrial, manufacturing, infrastructure, public sector, and mobility applications. Its technologies are shaping production and people related ecosystems to become increasingly connected and autonomous – ensuring a scalable, sustainable future. Tacticaware, a subsidiary of Hexagon, is the manufacturer and producer of the world-known volumetric security system, Accur8vision. Hexagon ( Nasdaq Stockholm: HEXA B) has approximately 22,000 employees in 50 countries and net sales of approximately 4.3bn EUR. Learn more at hexagon.com and follow @ HexagonAB.
About Ouster
Ouster ( NYSE: OUST) is building a safer and more sustainable future through its high-resolution digital lidar sensors for the automotive, industrial, smart infrastructure, and robotics industries. Ouster’ s sensors offer an excellent combination of price and performance with the flexibility to span hundreds of use-cases and enable revolutionary autonomy across industries. With a global team and high-volume manufacturing, Ouster supports approximately 600 customers in over 50 countries. Ouster is headquartered in San Francisco, CA with offices in the Americas, Europe, Asia-Pacific, and the Middle East. For more information, visit www.ouster.com, or connect with us on Twitter or LinkedIn.
Forward-Looking Statements
This press release contains “ forward-looking statements ” within the meaning of the “ safe harbor ” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding Ouster’ s financial outlook, market positioning, and anticipated results. Forward-looking statements give Ouster’ s current expectations and projections relating to its financial condition, competitive position, results of operations, plans, objectives, future performance and growth, potential revenue opportunity, market penetration, the success and adoption of the Ouster x Accur8vision, its ability to reduce the number of false alarms, its undefeated accuracy, and the ability of this joint security solution to meeting continually evolving legal standards in various jurisdictions. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “ anticipate ”, “ estimate ”, “ expect ”, “ project ”, “ plan ”, “ intend ”, “ believe ”, “ may ”, “ will ”, “ should ”, “ can have ”, “ likely ” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including: Ouster’ s limited operating history and history of losses; the negotiating power and product standards of its customers; fluctuations in its operating results; cancellation or postponement of contracts or unsuccessful implementations; the adoption of its products and the growth of the lidar market generally; its ability to grow its sales and marketing organization; substantial research and development costs needed to develop and commercialize new products; the competitive environment in which it operates; selection of our products for inclusion in target markets; its future capital needs; its ability to use tax attributes; its dependence on key third party suppliers, in particular Benchmark Electronics, Inc., and manufacturers; ability to maintain inventory and the risk of inventory write-downs; inaccurate forecasts of market growth; its ability to manage growth; the creditworthiness of our customers; risks related to acquisitions; risks related to international operations; risks of product delivery problems or defects; costs associated with product warranties; its ability to keep its competitive edge and maintain competitive average selling prices or high sales volumes or reduce product costs; conditions in its customers industries; its ability to recruit and retain key personnel; its use of professional employer organizations; its ability to timely and adequately protect and enforce its intellectual property rights; its ability to effectively respond to evolving regulations and standards; risks related to operating as a public company; risks related to the COVID-19 pandemic; and other important factors discussed in the Company’ s final prospectus and definitive proxy statement, dated February 12, 2021, filed with the Securities and Exchange Commission ( the “ SEC ”), as updated by the factors disclosed in the section titled “ Risk Factors ” in its final prospectus filed with the SEC and dated August 19, 2021 and in Form 10-K filed with the SEC on February 28, 2022. Any such forward-looking statements represent management’ s estimates and beliefs as of the date of this press release. While Ouster may elect to update such forward-looking statements at some point in the future, other than as required by law, it disclaims any obligation to do so, even if subsequent events cause its views to change.
1 Allied Market Research, Physical Security Market Outlook-2023
Ouster:
For Investors Sarah Ewing investors @ ouster.io
For Media Heather Shapiro press @ ouster.io
Hexagon AB:
For Investors Maria Luthström +46 8 601 26 27 ir @ hexagon.com
For Media Kristin Christensen +1 404 554 0972 media @ hexagon.com | general |
Alnylam sues Moderna and Pfizer over key vaccine ingredient | Alnylam Pharmaceuticals, a Cambridge, Massachusetts-based company, has sued Moderna and Pfizer over allegations that the firms used patented nanoparticle technology in COVID-19 vaccines.
Alnylam is an RNA therapies pioneer, and claims that the messenger RNA ( mRNA) vaccines from pharmaceutical giants Moderna and Pfizer infringe on a patented technology, key to the function of these products and the way that they are able to be delivered to the body, breaking down without causing toxic effects.
“ The lipid nanoparticles are crucial, ” said Mansoor Amiji, a pharmaceutical scientist at Northeastern University. “ It is because we have these lipid nanoparticles that mRNA vaccines became a reality. ” Lipid nanoparticles allow the large and delicate mRNA molecule to enter cells, shielding the molecule from destructive enzymes at the perimeters of cells. The lawsuits center on particular ingredients and ratios used in the COVID-19 vaccines, as lipid nanoparticles are made from specific ratios of four kinds of fat molecules.
“ Alnylam is seeking fair compensation for use of its technology based on patent claims to a broad class of biodegradable lipids invented over a decade ago resulting from extensive research and investment, ” the company wrote in a statement. “ The company is proud that this work has supported rapid development of the life-saving vaccines. ”
Alnylam has filed separate lawsuits against both companies, and is asking for an undisclosed amount of money in damages. Pfizer and Moderna have both been vocally opposed to lifting patent rights for their vaccines, to make the jabs more available and affordable in the developing world.
Moderna is additionally facing a lawsuit from the National Institute of Health ( NIH), as well as two small Vancouver-based biopharmaceutical firms. The NIH claims that the creation of the vaccine was a collaborative project between the agency and Moderna. The company meanwhile declined to include three NIH scientists on its patent application for the mRNA sequence that forms the basis of the vaccine. | tech |
CORRECTING and REPLACING Navidea Biopharmaceuticals Reports Fourth Quarter 2021 Financial Results | Conference Call to be held Wednesday, March 23, 2022 at 5:00 pm ( EST)
DUBLIN, Ohio -- ( BUSINESS WIRE) -- This press release is being re-issued to revise the language in the Selling, General and Administrative bullet under Financial Results. That third bullet, third sentence should read: The net increase during the year to date was primarily due to separation expenses related to the resignation... ( instead of The net increase during the year to date was primarily due to termination...)
The updated release reads:
NAVIDEA BIOPHARMACEUTICALS REPORTS FOURTH QUARTER 2021 FINANCIAL RESULTS
Conference Call to be held Wednesday, March 23, 2022 at 5:00 pm ( EST)
Navidea Biopharmaceuticals, Inc. ( NYSE American: NAVB) ( “ Navidea ” or the “ Company ”), a company focused on the development of precision immunodiagnostic agents and immunotherapeutics, today announced its financial results for the fourth quarter and year-to-date for the period ended December 31, 2021.
Alexander L. Cappello, Chair of Navidea’ s Board of Directors, said, “ We remain focused on our mission of developing precision immunodiagnostic agents and immunotherapeutics to enhance patient care. We are confident that our strong management team, supported by our experienced and active Board of Directors, can continue to execute on our business plan and fulfill the vision we have for Navidea. ”
Fourth Quarter 2021 Highlights and Subsequent Events
Michael Rosol, Ph.D., Chief Medical Officer for Navidea, said, “ The clinical research team continues to work diligently to advance the technology in key disease areas, with an emphasis on our RA program. The NAV3-33 Phase 3 trial is enrolling, we continue to enroll into the NAV3-32 Phase 2b trial comparing tilmanocept imaging to synovial tissue biopsy samples of RA patients, and we have completed our normative database trial enrollment. Concurrent with all of this, we continue to make progress in our therapeutics pipeline, and we expect to keep advancing these towards the clinic. ”
Financial Results
Conference Call Details
Investors and the public are invited to dial into the earnings call through the information listed below, or participate via the audio webcast on the company website. Dr. Michael Rosol, Chief Medical Officer, and Erika Eves, Vice President of Finance and Administration, will host the call and webcast to discuss the financial results and provide an update on recent developments and clinical progress. Management will be available to answer questions live immediately following the earnings announcement and prepared remarks portion of the call.
To participate in the call and webcast, please refer to the information below:
Event: Fourth Quarter 2021 Earnings Conference Call and Business Update
Date: Wednesday, March 23, 2022
Time: 5:00 p.m. ( EDT)
U.S. & Canada Dial-In: 877-407-0312
International Dial-In: +1 201-389-0899
Conference ID: 13726541
Webcast Link: https: //www.webcast-eqs.com/navidbioph20220323/en
A live audio webcast of the conference call will also be available on the investor relations page of Navidea’ s corporate website at www.navidea.com. In addition, the recorded conference call can be replayed and will be available for 90 days following the call on Navidea’ s website.
About Navidea
Navidea Biopharmaceuticals, Inc. ( NYSE American: NAVB) is a biopharmaceutical company focused on the development of precision immunodiagnostic agents and immunotherapeutics. Navidea is developing multiple precision-targeted products based on its Manocept™ platform to enhance patient care by identifying the sites and pathways of disease and enable better diagnostic accuracy, clinical decision-making, and targeted treatment. Navidea’ s Manocept platform is predicated on the ability to specifically target the CD206 mannose receptor expressed on activated macrophages. The Manocept platform serves as the molecular backbone of Tc99m tilmanocept, the first product developed and commercialized by Navidea based on the platform. Navidea’ s strategy is to deliver superior growth and shareholder return by bringing to market novel products and advancing the Company’ s pipeline through global partnering and commercialization efforts. For more information, please visit www.navidea.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Forward-looking statements include our expectations regarding pending litigation and other matters. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including, among other things: our history of operating losses and uncertainty of future profitability; the final outcome of any pending litigation; our ability to successfully complete research and further development of our drug candidates; the timing, cost and uncertainty of obtaining regulatory approvals of our drug candidates; our ability to successfully commercialize our drug candidates; dependence on royalties and grant revenue; our ability to implement our growth strategy; anticipated trends in our business; our limited product line and distribution channels; advances in technologies and development of new competitive products; our ability to comply with the NYSE American continued listing standards; our ability to maintain effective internal control over financial reporting; the impact of the current coronavirus pandemic; and other risk factors detailed in our most recent Annual Report on Form 10-K and other SEC filings. You are urged to carefully review and consider the disclosures found in our SEC filings, which are available at http: //www.sec.gov or at http: //ir.navidea.com.
Investors are urged to consider statements that include the words “ will, ” “ may, ” “ could, ” “ should, ” “ plan, ” “ continue, ” “ designed, ” “ goal, ” “ forecast, ” “ future, ” “ believe, ” “ intend, ” “ expect, ” “ anticipate, ” “ estimate, ” “ project, ” and similar expressions, as well as the negatives of those words or other comparable words, to be uncertain forward-looking statements.
You are cautioned not to place undue reliance on any forward-looking statements, any of which could turn out to be incorrect. We undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this report. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this report may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements.
2021
2020
$
4,230,865
$
2,670,495
1,152,420
3,857,833
1,261,548
1,229,690
$
6,644,833
$
7,758,018
$
5,299,802
$
4,715,105
700,000
700,000
20,288
296,006
6,020,090
5,711,111
( 106,556
)
1,315,604
731,299
731,303
624,743
2,046,907
$
6,644,833
$
7,758,018
2021
2020
2021
2020
$
50,348
$
219,251
$
531,513
$
915,013
-
-
-
1,048
50,348
219,251
531,513
913,965
1,372,314
1,271,141
5,141,910
4,930,187
2,317,285
1,748,680
7,450,015
6,694,959
3,689,599
3,019,821
12,591,925
11,625,146
( 3,639,251
)
( 2,800,570
)
( 12,060,412
)
( 10,711,181
)
( 1,938
)
( 1,478
)
( 6,361
)
11,344
-
-
366,000
-
( 10,974
)
( 21,077
)
( 14,115
)
( 21,854
)
( 3,652,163
)
( 2,823,125
)
( 11,714,888
)
( 10,721,691
)
-
-
( 16,043
)
-
( 3,652,163
)
( 2,823,125
)
( 11,730,931
)
( 10,721,691
)
-
1
4
-
-
( 180,556
)
-
( 663,889
)
$
( 3,652,163
)
$
( 3,003,680
)
$
( 11,730,927
)
$
( 11,385,580
)
$
( 0.12
)
$
( 0.11
)
$
( 0.40
)
$
( 0.48
)
30,161,825
26,724,753
29,343,542
| general |
Ligand to Spin-Off its OmniAb Business Through Merger with Avista Public Acquisition Corp. II | Transaction will result in OmniAb becoming an independent publicly traded company
Ligand’ s shareholders to receive 100% of Ligand’ s shares in OmniAb through a tax-free distribution immediately prior to the merger
EMERYVILLE, Calif. & NEW YORK -- ( BUSINESS WIRE) -- Ligand Pharmaceuticals Incorporated ( Ligand) ( NASDAQ: LGND) today announced the signing of a definitive merger agreement with Avista Public Acquisition Corp. II ( APAC) ( NASDAQ: AHPA), a publicly traded special purpose acquisition company ( SPAC), providing for the spin-off of OmniAb, Inc. ( OmniAb), Ligand’ s antibody discovery business, immediately followed by a merger with a newly formed subsidiary of APAC. The combined company will be led by Ligand’ s President, Matt Foehr, and will be renamed “ OmniAb, Inc. ”
Upon the closing of the transaction, Avista Capital Partners ( Avista), APAC’ s sponsor and a leading private equity firm focused on the healthcare industry, has agreed to invest up to $ 115 million in the combined company, and Ligand will contribute $ 15 million. The combined company will have an initial pre-money equity valuation of $ 850 million. Immediately prior to the transaction close, Ligand intends to distribute 100% of its ownership of OmniAb to Ligand shareholders in a tax-free distribution. The transaction is expected to close in the second half of 2022.
Ligand’ s OmniAb antibody discovery platform provides pharmaceutical industry partners with access to diverse antibody repertoires and high-throughput screening technologies to enable discovery of next-generation therapeutics. At the heart of the OmniAb platform is the Biological Intelligence™ ( BI) of its proprietary transgenic animals including OmniRat, OmniChicken and OmniMouse, which have been genetically modified to generate antibodies with human sequences to facilitate the development of human therapeutic candidates. Over 55 partners currently have access to OmniAb-derived antibodies and more than 250 programs are being actively developed or commercialized. In 2021, nine antibodies derived from the OmniAb platform entered clinical testing and two royalty-bearing antibodies received regulatory approvals.
“ In late 2021, Ligand’ s Board of Directors decided to separate Ligand into two public companies given the growth prospects and needs of our various proprietary technology platforms, and to unlock value to Ligand’ s shareholders, ” said John Higgins, CEO of Ligand. “ We considered multiple ways to pursue a separation with the goals of ensuring a smooth transition of operations, a healthy balance sheet for both OmniAb and Ligand, and strong market sponsorship. As we were preparing for a first-half 2022 direct spin-off of OmniAb to Ligand’ s shareholders, as discussed on our recent earnings call, we received an offer from Avista to merge OmniAb with their SPAC. The Avista team is comprised of high-quality healthcare operators and investors with an excellent track record. They have done extensive due diligence and see the potential and value of OmniAb, a highly competitive, leading platform with strong momentum given recent major clinical and regulatory successes. We are very pleased to partner with APAC and its shareholders to take OmniAb to the next level. ”
“ The OmniAb business is positioned for continued growth and success as we provide partners with access to diverse antibody repertoires and cutting-edge high-throughput screening technologies that enable the discovery of next-generation therapeutics, ” said Mr. Foehr. “ Two OmniAb-derived antibodies recently received regulatory approvals in China and a third approval is expected in the United States later this year. Our growing roster of partners and new programs illustrates the value our technology offers. We are excited to join forces with Avista to further build and expand our differentiated capabilities with applicability to a variety of modalities, and to leverage our technical strengths to become the industry’ s partner of choice. ”
David Burgstahler, CEO of APAC, added, “ OmniAb’ s merger with APAC and its subsequent status as a standalone public company will help propel the company toward a new phase of growth and value creation. The merger will empower OmniAb with access to the capital markets, strong cash reserves, the agility to drive innovation and a superb leadership team. We look forward to partnering with Matt and the entire organization as they continue to differentiate OmniAb as a critical partner in advancing drug discovery and development. ”
Matt Foehr will lead OmniAb as CEO and will resign from his role as Ligand’ s President and COO at closing. Kurt Gustafson has joined the OmniAb management team as CFO, bringing over 25 years of diverse experience in corporate finance and senior management roles in growth-oriented publicly traded biopharmaceutical companies, most recently as CFO of Spectrum Pharmaceuticals. Mr. Gustafson previously served as CFO of Halozyme Therapeutics and held senior finance roles at Amgen.
Transaction Details
The combination of OmniAb and AHPA is structured to guarantee a minimum of $ 130 million in gross cash to the combined company at the time of closing, and up to $ 266 million in the event of no redemptions by APAC shareholders. APAC’ s shareholders will be eligible to participate in the transaction or to elect redemption of their shares. Avista has agreed to guarantee that Avista and AHPA will provide at least $ 115 million of gross cash to the combined company through a $ 15 million PIPE investment and a $ 100 million facility to backstop potential redemptions. Ligand’ s $ 15 million contribution to OmniAb will be made irrespective of the number of redemptions or the Avista contributions.
Ligand intends to distribute 100% of the equity in OmniAb to Ligand shareholders immediately prior to the business combination with APAC. The transaction will be effected through a “ Reverse Morris Trust ” transaction pursuant to which OmniAb will be spun-off to Ligand’ s shareholders and simultaneously merged as a subsidiary of APAC. The transaction is expected to be tax-free to Ligand and its shareholders for U.S. federal income tax purposes, except for cash received in lieu of fractional shares. Upon the closing of the transaction, Ligand shareholders are expected to own approximately 75% to 84% of the combined company, depending on redemptions, which will be listed on the Nasdaq Global Markets under the ticker symbol “ OABI ”.
The Boards of Directors of both APAC and Ligand have unanimously approved the proposed transaction, which is subject to customary closing conditions, including receipt of required regulatory approvals and receipt of approval from APAC’ s shareholders.
Credit Suisse is acting as lead capital markets and financial advisor to OmniAb, Cowen, Stifel, SVB Leerink and Truist Securities are also acting as capital markets and financial advisors to OmniAb, and CJS Securities, Craig-Hallum Capital Group LLC, H.C. Wainwright & Co. and Roth Capital Partners are acting as advisors to OmniAb. Weil, Gotshal & Manges LLP is legal advisor to APAC. Latham & Watkins LLP is legal advisor to Ligand.
Additional information about the transaction will be provided in a Current Report on Form 8-K to be filed by APAC with the Securities and Exchange Commission ( SEC) and will be available on the SEC’ s website at www.sec.gov.
Technologies
Following the completion of this transaction, OmniAb will consist of the OmniAb discovery platform featuring transgenic animals that have been genetically modified to generate antibodies with human sequences to facilitate development of human therapeutic candidates, as well as the Icagen ion channel technology. Ligand Pharmaceuticals’ platform technologies will consist of the Captisol® technology, a patent-protected, chemically modified cyclodextrin with a structure designed to optimize the solubility and stability of drugs, and the Pelican Expression Technology®, a robust, validated, cost-effective and scalable platform for recombinant protein production that is especially well-suited for complex, large-scale protein production.
About OmniAb®
The OmniAb discovery platform provides pharmaceutical industry partners with access to diverse antibody repertoires and high-throughput screening technologies to enable discovery of next-generation therapeutics. At the heart of the OmniAb platform is the Biological Intelligence ( BI) of our proprietary transgenic animals, including OmniRat, OmniChicken and OmniMouse, which have been genetically modified to generate antibodies with human sequences to facilitate development of human therapeutic candidates. OmniFlic ( transgenic rat) and OmniClic ( transgenic chicken) address industry needs for bispecific antibody applications though a common light chain approach, and OmniTaur features unique structural attributes of cow antibodies for complex targets. OmniAb animals comprise the most diverse host systems available in the industry and they are optimally leveraged through computational antigen design and immunization methods, paired with high-throughput microfluidic-based single B cell screening and deep computational analysis of next-generation sequencing datasets to identify fully human antibodies with superior performance and developability characteristics. An established core competency focused on ion channels and transporters further differentiates our technology and creates opportunities to further leverage across modalities, including antibody-drug conjugates and others. The OmniAb suite of technologies and differentiating computational capabilities and BI features are combined to offer a highly efficient and customizable end-to-end solution for the growing discovery needs of the global pharmaceutical industry. For more information, please visit www.omniab.com.
About Avista Public Acquisition Corp. II
APAC is a special purpose acquisition company that completed its initial public offering in August 2021. APAC was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or business combination with one or more businesses. APAC is sponsored by Avista Acquisition LP II, which was formed for the express purpose of acting as the sponsor for APAC. Avista Acquisition Corp. is an affiliate of Avista Capital Holdings, L.P. For more information, please visit www.avistapac.com/ahpac.
About Ligand
Ligand is a biopharmaceutical company focused on developing or acquiring technologies that help pharmaceutical companies discover and develop medicines. Our business model creates value for shareholders by providing a diversified portfolio of biotech and pharmaceutical product revenue streams that are supported by an efficient and low corporate cost structure. Our goal is to offer investors an opportunity to participate in the promise of the biotech industry in a profitable, diversified and lower-risk business than a typical biotech company. Our business model is based on doing what we do best: drug discovery, early-stage drug development, product reformulation and partnering. We partner with other pharmaceutical companies to leverage what they do best ( late-stage development, regulatory management and commercialization) ultimately to generate our revenue. Ligand’ s OmniAb® technology platform is a patent-protected transgenic animal platform used in the discovery of fully human monoclonal and bispecific therapeutic antibodies. The Captisol® platform technology is a patent-protected, chemically modified cyclodextrin with a structure designed to optimize the solubility and stability of drugs. Ligand’ s Pelican Expression Technology® is a robust, validated, cost-effective and scalable platform for recombinant protein production that is especially well-suited for complex, large-scale protein production where traditional systems are not. Ligand has established multiple alliances, licenses and other business relationships with the world’ s leading pharmaceutical companies including Amgen, Merck, Pfizer, Sanofi, Janssen, Takeda, Servier, Gilead Sciences and Baxter International. For more information, please visit www.ligand.com.
Forward-Looking Statements
This news release contains forward-looking statements. The words “ anticipate, ” “ believe, ” “ continue, ” “ could, ” “ estimate, ” “ expect, ” “ intend, ” “ may, ” “ might, ” “ plan, ” “ possible, ” “ potential, ” “ predict, ” “ project, ” “ should, ” “ would ” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical facts contained in this news release, including statements regarding the expected timing and structure of the proposed transaction, the ability of the parties to complete the proposed transaction, the expected benefits of the proposed transaction, the tax consequences of the proposed transaction, the amount of gross proceeds expected to be available to OmniAb after the closing and giving effect to any redemptions by APAC shareholders, OmniAb’ s future results of operations and financial position, business strategy and its expectations regarding the application of, and the rate and degree of market acceptance of, the OmniAb technology platform and other technologies, OmniAb’ s expectations regarding the addressable markets for our technologies, including the growth rate of the markets in which it operates, the potential for and timing of receipt of milestones and royalties under OmniAb’ s license agreements with partners, are forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the control of Ligand, OmniAb and APAC, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include, but are not limited to: the risk that the transactions may not be completed in a timely manner or at all, which may adversely affect the price of Ligand’ s or APAC’ s securities; the risk that APAC shareholder approval of the proposed transactions is not obtained; the inability to recognize the anticipated benefits of the proposed transactions, which may be affected by, among other things, the amount of funds available in APAC’ s trust account following any redemptions by APAC’ s shareholders; the failure to receive certain governmental and regulatory approvals; the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement; changes in general economic conditions, including as a result of the COVID-19 pandemic or the conflict between Russia and Ukraine; the outcome of litigation related to or arising out of the proposed transactions, or any adverse developments therein or delays or costs resulting therefrom; the effect of the announcement or pendency of the transactions on Ligand’ s, OmniAb’ s or APAC’ s business relationships, operating results, and businesses generally; the ability to continue to meet Nasdaq’ s listing standards following the consummation of the proposed transactions; costs related to the proposed transactions; that the price of APAC’ s or Ligand’ s securities may be volatile due to a variety of factors, including Ligand’ s, APAC’ s or OmniAb’ s inability to implement their business plans or meet or exceed their financial projections and changes in the combined capital structure; the ability to implement business plans, forecasts, and other expectations after the completion of the proposed transactions, and identify and realize additional opportunities; and the ability of OmniAb to implement its strategic initiatives.
The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “ Risk Factors ” section of APAC’ s registration statement on Form S-1 ( File No. 333-257177), the registration statement on Form S-4, the registration statement on Form 10, the proxy/information statement/prospectus and certain other documents filed or that may be filed by APAC, Ligand or OmniAb from time to time with the SEC following the date hereof. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Ligand, OmniAb and APAC assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Neither Ligand, OmniAb, or APAC gives any assurance that Ligand, OmniAb or APAC will achieve their expectations. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Additional Information
In connection with the proposed transaction, OmniAb will file a registration statement on Form 10 registering shares of OmniAb common stock and APAC will file with the SEC a registration statement on Form S-4 registering shares of APAC common stock, warrants and certain equity awards. The Form S-4 to be filed by APAC will include a proxy statement/prospectus in connection with the APAC shareholder vote required in connection with the proposed transaction. The Form 10 to be filed by OmniAb will include the Form S-4 registration statement filed by APAC which will serve as an information statement/prospectus in connection with the spin-off of OmniAb. This communication does not contain all the information that should be considered concerning the business combination. This communication is not a substitute for the registration statements that OmniAb and APAC will file with the SEC or any other documents that APAC or OmniAb may file with the SEC or that APAC, Ligand or OmniAb may send to shareholders in connection with the business combination. It is not intended to form the basis of any investment decision or any other decision in respect to the business combination. APAC's shareholders and Ligand’ s shareholders and other interested persons are advised to read, when available, the preliminary and definitive registration statements, and documents incorporated by reference therein, as these materials will contain important information about APAC, OmniAb and the business combination. The proxy statement/prospectus contained in APAC’ s registration statement will be mailed to APAC's shareholders as of a record date to be established for voting on the business combination.
The registration statements, proxy statement/prospectus and other documents ( when they are available) will also be available free of charge, at the SEC's website at www.sec.gov, or by directing a request to: Avista Public Acquisition Corp. II, 65 East 55th Street, 18th Floor, New York, NY 10022.
Participants in the Solicitation
APAC, Ligand and OmniAb and each of their respective directors, executive officers and other members of their management and employees may be deemed to be participants in the solicitation of proxies from APAC’ s shareholders in connection with the business combination. Shareholders are urged to carefully read the proxy statement/prospectus regarding the business combination when it becomes available, because it will contain important information. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of APAC’ s shareholders in connection with the business combination will be set forth in the registration statement when it is filed with the SEC. Information about APAC's executive officers and directors and OmniAb's management and directors also will be set forth in the registration statement relating to the business combination when it becomes available.
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such other jurisdiction.
Ligand Pharmaceuticals Incorporated Simon Latimer investors @ ligand.com ( 858) 550-7766 | general |
ATSG Publishes Inaugural Sustainability Report | Air Transport Services Group ( ATSG) has published its first Sustainability Report, highlighting progress in the company’ s Environmental, Social and Governance ( ESG) practices and initiatives. To view the full report, visit https: //www.atsginc.com/responsibility/sustainability. ( Photo: Business Wire)
Air Transport Services Group ( ATSG) has published its first Sustainability Report, highlighting progress in the company’ s Environmental, Social and Governance ( ESG) practices and initiatives. To view the full report, visit https: //www.atsginc.com/responsibility/sustainability. ( Photo: Business Wire)
WILMINGTON, Ohio -- ( BUSINESS WIRE) -- Air Transport Services Group, Inc. ( Nasdaq: ATSG), the world’ s largest lessor of freighter aircraft, today announced the publication of its first Sustainability Report, highlighting progress in the company’ s Environmental, Social and Governance ( ESG) practices and initiatives. This inaugural report covers achievements in key focus areas since 2020.
“ Since the beginning of the COVID-19 pandemic, our priority has been the safety of our employees and the continuing ability of our company to meet the needs of its customers, ” said ATSG President and CEO Rich Corrado. “ And while safety will always remain at the forefront of everything we do, we also were determined to make progress in our Environmental, Sustainability and Governance efforts during 2020 and 2021. ”
Highlights from the 2021 Sustainability Report include:
Environmental
Social
Governance
“ ATSG is pleased to share this inaugural Sustainability Report in order to provide greater transparency with respect to our ESG efforts and initiatives, ” stated Corrado. “ This report details our ongoing efforts to reduce the amount of fuel per operating hour that we use in our airline operations, reduce our level of greenhouse gas emissions, and pursue other initiatives to mitigate our impact on the environment and improve the lives of those around us. ” | general |
U.S. NTSB working to address quarantine, visa issues on China crash probe | - The U.S. National Transportation Safety Board said on Wednesday it has not yet determined if it will travel to China to take part in the investigation into the China Eastern Airlines Boeing 737-800 crash.
The NTSB noted that `` travel to China is currently limited by visa and COVID quarantine requirements. We are working with the Department of State to address those issues with the Chinese government before any travel will be determined. `` ( Reporting by David Shepardson; Editing by Leslie Adler) | business |
Ra Medical Systems Reports 2021 Fourth Quarter and Full Year Financial Results | Conference call begins at 4:30 p.m. Eastern time today
CARLSBAD, Calif. -- ( BUSINESS WIRE) -- Ra Medical Systems, Inc. ( NYSE American: RMED), a medical device company focusing on developing its excimer laser system to treat vascular disease, reports financial results for the three months and full year ended December 31, 2021 and provides a business update.
Recent Operational Highlights
“ I am pleased with the progress we are making on all key initiatives, ” said Will McGuire, Ra Medical Systems CEO. “ First, filing the 510 ( k) for our next-generation catheter that incorporates the braided overjacket is a significant engineering and regulatory stepping-stone toward our flagship commercial DABRA catheter, which will be a guidewire-compatible design. Second, I’ m encouraged that we continued to advance subject enrollment in our clinical study during the pandemic. And third, we believe that fracturing medial calcium in benchtop models validated our system’ s potential to be competitive in the emerging intravascular lithotripsy market.
“ Finally, I want to commend the Ra Medical team for executing during these unprecedented times and for the support of our physician partners who have helped us achieve our milestones to date, ” added Mr. McGuire.
Fourth Quarter Financial Highlights
Net revenue for the fourth quarter of 2021 consisted of product sales of $ 5,000, compared with no net revenue for the fourth quarter of 2020.
Total cost of revenue for the fourth quarter of 2021 was $ 0.3 million, compared with $ 0.4 million for the fourth quarter of 2020.
Selling, general and administrative expenses for the fourth quarter of 2021 were $ 4.2 million, which included $ 0.2 million in stock-based compensation, compared with $ 6.4 million for the fourth quarter of 2020, which included $ 0.8 million in stock-based compensation. Research and development expenses for the fourth quarter of 2021 were $ 3.7 million, which included $ 0.1 million in stock-based compensation, compared with $ 3.4 million for the fourth quarter of 2020, which included $ 0.1 million in stock-based compensation.
The net operating loss for the fourth quarter of 2021 was $ 8.3 million, or $ 1.23 per share on 6.7 million weighted-average shares outstanding, compared with a loss for the fourth quarter of 2020 of $ 10.2 million, or $ 3.54 per share on 2.9 million weighted-average shares outstanding.
Adjusted EBITDA for the fourth quarter of 2021 was negative $ 7.8 million, compared with negative $ 8.8 million for the fourth quarter of 2020. Adjusted EBITDA is a non-GAAP measure presented as loss from continuing operations before depreciation and amortization expense, interest income, interest expense, income taxes, stock-based compensation, gain and loss from sales and disposals of property and equipment, and gain on extinguishment of the Paycheck Protection Program ( PPP) promissory note. For additional information regarding the non-GAAP financial measures discussed in this news release, please see `` Non-GAAP Reconciliations '' below.
2021 Financial Highlights
Continuing Operations
Net revenue for 2021 consisted of product sales of $ 22,000. This compares with net revenue for 2020 of $ 0.3 million which consisted primarily of product sales.
Total cost of revenue for 2021 was $ 1.6 million, compared with $ 2.2 million for 2020.
Selling, general and administrative expenses for 2021 were $ 15.5 million, which included $ 1.8 million in stock-based compensation, compared with $ 24.5 million for 2020, which included $ 3.2 million in stock-based compensation. Research and development expenses for 2021 were $ 12.3 million, which included $ 0.3 million in stock-based compensation, compared with $ 9.0 million for 2020, which included $ 0.4 million in stock-based compensation.
Net operating loss for 2021 was $ 27.3 million, or $ 5.39 per share on 5.1 million weighted-average shares outstanding, compared with a loss for 2020 of $ 35.3 million, or $ 20.79 per share on 1.7 million weighted-average shares outstanding.
Adjusted EBITDA for 2021 was negative $ 26.5 million, compared with negative $ 29.7 million for 2020. For additional information regarding the non-GAAP financial measures discussed in this news release, please see `` Non-GAAP Reconciliations '' below.
Ra Medical reported cash and cash equivalents of $ 15.0 million as of December 31, 2021.
2021 Financial Highlights
Discontinued Operations
Net revenue for 2021 was $ 2.6 million, which consisted of product sales of $ 0.9 million and service and other revenue of $ 1.7 million. This compares with net revenue for 2020 of $ 4.1 million, which consisted of product sales of $ 1.1 million and service and other revenue of $ 3.0 million.
Total cost of revenue for 2021 was $ 2.3 million, compared with $ 3.3 million for 2020.
Selling, general and administrative expenses for 2021 were $ 1.1 million, compared with $ 1.4 million for 2020. Research and development expenses for 2021 were $ 0.4 million, compared with $ 0.1 million for 2020.
The loss from discontinued operations for 2021 was $ 1.3 million, compared with a loss for 2020 of $ 0.7 million.
The gain on sale of the dermatology business for 2021 was $ 3.5 million.
The income/loss from discontinued operations, including the gain on sale of the dermatology business, for 2021 was income of $ 2.2 million, or $ 0.43 per share on 5.1 million weighted-average shares outstanding, compared with a loss for 2020 of $ 0.7 million, or $ 0.43 per share on 1.7 million weighted-average shares outstanding.
Conference Call and Webcast
Ra Medical will hold a conference call and audio webcast to discuss this announcement and answer questions at 4:30 p.m. Eastern time today. The conference call dial-in numbers are 866-777-2509 for domestic callers and 412-317-5413 for international callers, and the passcode is 9255498. A live webcast of the call will be available on the Investor Relations section of www.ramed.com.
A recording of the call will be available for 48 hours beginning approximately two hours after the completion of the call by dialing 877-344-7529 for domestic callers, 855-669-9658 for Canadian callers or 412-317-0088 for international callers. Please use the passcode 9255498. A webcast replay will be available on the Investor Relations section of www.ramed.com for 30 days, beginning approximately two hours after the completion of the call.
Non-GAAP Financial Measures
Ra Medical has presented certain financial information in accordance with U.S. GAAP and also on a non-GAAP basis for the three-month periods and full years ended December 31, 2021 and 2020. EBITDA and Adjusted EBITDA are performance measures that provide supplemental information management believes is useful to analysts and investors to evaluate Ra Medical’ s ongoing results of operations, when considered alongside other GAAP measures. These measures are intended to aid investors in better understanding Ra Medical’ s current financial performance and prospects for the future as seen through management. Management uses non-GAAP measures to compare the company’ s performance relative to forecasts and strategic plans and to benchmark the company’ s performance externally against competitors. Management believes that these non-GAAP financial measures facilitate comparisons with Ra Medical’ s historical results and with the results of peer companies who present similar measures ( although other companies may define non-GAAP measures differently than we define them, even when similar terms are used to identify such measures). Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of the company’ s operating results as reported under U.S. GAAP. Ra Medical encourages investors to carefully consider its results under U.S. GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between U.S. GAAP and non-GAAP operating results are presented in the accompanying tables of this news release.
Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business. Ra Medical defines EBITDA as our GAAP loss from continuing operations as adjusted to exclude depreciation and amortization, interest income, interest expense and income tax expense. Ra Medical defines Adjusted EBITDA as EBITDA adjusted to exclude stock-based compensation, gain on extinguishment of PPP promissory note and gain/loss on sales and disposals of property and equipment.
About Ra Medical Systems
Ra Medical Systems manufactures the DABRA excimer laser and catheters for the treatment of vascular diseases. DABRA has been cleared by the FDA for crossing chronic total occlusions in patients with symptomatic infrainguinal lower extremity vascular disease and has an intended use for ablating a channel in occlusive peripheral vascular disease. In addition, DABRA has been granted CE mark clearance for the endovascular treatment of infrainguinal arteries via atherectomy and for crossing total occlusions. DABRA breaks down plaque to proteins, lipids and other chemical compounds, eliminating blockages by essentially dissolving them without generating potentially harmful particulates. DABRA excimer lasers and catheters are manufactured in a 32,000 square-foot facility located in Carlsbad, CA. The vertically integrated facility is ISO 13485 certified and is licensed by the State of California to manufacture sterile, single-use catheters in clean room environments.
Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Ra Medical’ s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “ may, ” “ will, ” “ should, ” “ expects, ” “ plans, ” “ anticipates, ” “ could, ” “ intends, ” “ target, ” “ projects, ” “ contemplates, ” “ believes, ” “ estimates, ” “ predicts, ” “ potential ” or “ continue ” or the negative of these words or other similar terms or expressions that concern Ra Medical’ s future expectations, strategy, plans or intentions. Forward-looking statements in this press release include, but are not limited to, statements regarding Ra Medical’ s business strategy, the potential of the DABRA system for new applications of use, the market opportunity and growth of current and potential markets and its ability to continue to manage expenses and cash burn rate at sustainable levels. Ra Medical’ s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied by such forward-looking statements. The potential risks and uncertainties which contribute to the uncertain nature of these statements include, among others, challenges inherent in developing, manufacturing, launching, marketing, and selling new products or new applications of use; risks associated with acceptance of DABRA devices for current and potential applications of use and procedures performed using such devices by physicians, payors, and other third parties; development and acceptance of new products, product enhancements or applications of use; clinical and statistical verification of the benefits achieved via the use of Ra Medical’ s products; the results from our clinical trials, which may not support intended indications or may require Ra Medical to conduct additional clinical trials or modify ongoing clinical trials; challenges related to commencement, patient enrollment, completion, an analysis of clinical trials; Ra Medical’ s ability to manage operating expenses; Ra Medical’ s ability to recruit and retain management and key personnel; Ra Medical’ s need to comply with complex and evolving laws and regulations; intense and increasing competition and consolidation in Ra Medical’ s industry; the impact of rapid technological change; adverse outcome of regulatory inspections; impacts from public health crises, such as the Covid-19 pandemic, geopolitical conflicts, such as Russia’ s invasion of Ukraine and related sanctions against Russia and Belarus, or natural disasters; and the other risks and uncertainties described in Ra Medical’ s news releases and filings with the Securities and Exchange Commission. Information on these and additional risks, uncertainties, and other information affecting Ra Medical’ s business and operating results is contained in Ra Medical’ s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 and in its other filings with the Securities and Exchange Commission. Additional information is also set forth in Ra Medical’ s Annual Report on Form 10-K for the year ended December 31, 2021 to be filed with the Securities and Exchange Commission. The forward-looking statements in this press release are based on information available to Ra Medical as of the date hereof, and Ra Medical disclaims any obligation to update any forward-looking statements, except as required by law.
Ra Medical investors and others should note that we announce material information to the public about the company through a variety of means, including our website ( www.ramed.com), our investor relations website ( https: //ir.ramed.com/), press releases, SEC filings and public conference calls in order to achieve broad, non-exclusionary distribution of information to the public and to comply with our disclosure obligations under Regulation FD. We encourage our investors and others to monitor and review the information we make public in these locations as such information could be deemed to be material information. Please note that this list may be updated from time to time.
Ra Medical Systems, Inc.
Condensed Balance Sheets
( Unaudited)
( in thousands)
December 31, 2021
December 31, 2020
ASSETS
Current Assets
Cash and cash equivalents
$
15,045
$
23,906
Accounts receivable, net
21
24
Inventories
986
877
Prepaid expenses and other current assets
1,037
1,100
Current assets of discontinued operations
—
1,713
Total current assets
17,089
27,620
Property and equipment, net
1,809
2,527
Operating lease right-of-use-assets
2,110
2,484
Other long-term assets
36
45
Long-term assets of discontinued operations
—
762
TOTAL ASSETS
$
21,044
$
33,438
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable
$
988
$
471
Accrued expenses
4,119
4,147
Current portion of operating lease liabilities
283
356
Current portion of PPP promissory note
—
421
Current portion of equipment financing
—
265
Current liabilities of discontinued operations
—
2,102
Total current liabilities
5,390
7,762
Operating lease liabilities
1,981
2,264
PPP promissory note
—
1,579
Long-term liabilities of discontinued operations
—
686
Total liabilities
7,371
12,291
Total stockholders’ equity
13,673
21,147
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
21,044
$
33,438
Ra Medical Systems, Inc.
Condensed Statements of Operations
( Unaudited)
( in thousands, except per share data)
Three Months Ended December 31,
Year Ended December 31,
2021
2020
2021
2020
Net revenues
Product sales
$
5
$
—
$
22
$
254
Service and other
—
—
—
5
Total net revenues
5
—
22
259
Cost of revenues
Product sales
156
238
832
1,369
Service and other
191
188
728
803
Total cost of revenues
347
426
1,560
2,172
Gross loss
( 342
)
( 426
)
( 1,538
)
( 1,913
)
Operating expenses
Selling, general and administrative
4,190
6,379
15,475
24,533
Research and development
3,732
3,421
12,253
8,955
Total operating expenses
7,922
9,800
27,728
33,488
Operating loss
( 8,264
)
( 10,226
)
( 29,266
)
( 35,401
)
Other income ( expense), net
( 19
)
( 9
)
2,009
88
Loss from continuing operations before income taxes
( 8,283
)
( 10,235
)
( 27,257
)
( 35,313
)
Income taxes
4
7
4
7
Loss from continuing operations
( 8,287
)
( 10,242
)
( 27,261
)
( 35,320
)
Discontinued operations
( Loss) income from discontinued operations ( including gain on sale of $ 3,500 in 2021) before income taxes
—
( 226
)
2,191
( 725
)
Income taxes
—
—
—
—
( Loss) Income from discontinued operations
—
( 226
)
2,191
( 725
)
Net loss
$
( 8,287
)
$
( 10,468
)
$
( 25,070
)
$
( 36,045
)
Net ( loss) income per share, basic and diluted
Continuing operations
$
( 1.23
)
$
( 3.54
)
$
( 5.39
)
$
( 20.79
)
Discontinued operations
—
( 0.08
)
0.43
( 0.43
)
Total net loss per share, basic and diluted
$
( 1.23
)
$
( 3.62
)
$
( 4.96
)
$
( 21.22
)
Basic and diluted weighted average common shares outstanding
6,742
2,895
5,055
1,699
2021
2020
2021
2020
$
( 8,287
)
$
( 10,242
)
$
( 27,261
)
$
( 35,320
)
315
417
1,289
1,947
( 1
)
( 1
)
( 3
)
( 129
)
—
10
12
41
4
7
4
7
( 7,969
)
( 9,809
)
( 25,959
)
( 33,454
)
252
941
2,054
3,682
—
—
( 2,023
)
—
( 61
)
99
( 550
)
99
$
( 7,778
)
$
( 8,769
)
$
( 26,478
)
$
( 29,673 | general |
CR2/IBS Intelligence Latest Market Insight Report Looks at the Importance of Digital Onboarding for Banks Today | DUBLIN -- ( BUSINESS WIRE) -- The latest IBS Intelligence report, in partnership with CR2 ( www.cr2.com), looks at how critical digital onboarding is for banks and other financial institutions to retain their current customers while also attracting new ones. As a result, banks are attempting to create an easy, tailored, and frictionless end-to-end digital buying and contracting experience. Having the capability to digitally onboard customers simplifies and streamlines the very first user experience that a customer has with the bank as well as significantly reducing the cost of customer onboarding.
Due to the COVID-19 pandemic, banks and financial services providers have faced unanticipated challenges. As clients shift online to receive essential services, the financial industry needs to rethink the future of digital banking through quick adaption methods and a deeper focus on banks’ digital presence. Digital customer onboarding has become the buzzword in the industry as business leaders begin to recognise the enormous potential of digitisation.
The benefits and drivers of digital onboarding for banks are abundant, including higher efficiency and cost optimisation. IBS Intelligence’ s 4S framework sheds light on the essentials of digital onboarding. For a digital onboarding platform to provide the imagined benefits, it must have the following characteristics: Speed, Smart, Secure, Seamless.
In the Banking and Financial Services sector, digital onboarding addresses some of the long-standing issues with traditional onboarding models. It helps businesses onboard new clients remotely and quickly through integrated customer journeys. | general |
Aura Biosciences Reports Fourth Quarter and Full Year 2021 Financial Results and Provides Clinical Development and Operational Highlights | On Track to Initiate Pivotal Trial in Choroidal Melanoma and Phase 1 Trial in Non-Muscle Invasive Bladder Cancer with AU-011 in 2H 2022
Orphan Drug Designation Granted to AU-011 by European Commission for the Treatment of Uveal Melanoma ( Includes Choroidal Melanoma)
John Maraganore, Ph.D., Joins as a Strategic Advisor
CAMBRIDGE, Mass. -- ( BUSINESS WIRE) -- Aura Biosciences Inc. ( NASDAQ: AURA), a clinical-stage biotechnology company developing a novel class of virus-like drug conjugate ( VDC) therapies for multiple oncology indications, today reported financial results for the fourth quarter and year ended December 31, 2021, and provided clinical development and operational highlights.
“ We have begun 2022 with strong momentum, being on track to advance AU-011 in the clinic in multiple indications with significant unmet medical need. We look forward to initiating the pivotal trial in patients with early stage choroidal melanoma, which is the first indication in our ocular oncology franchise, in the second half of this year, ” said Elisabet de los Pinos, Ph.D., Chief Executive Officer of Aura. “ We are excited to have received Orphan Drug Designation from the European Commission, further validating the important role that AU-011 could play in the treatment of patients with this life-threatening disease globally. ”
Dr. de los Pinos continued: “ We are also excited to expand our pipeline into additional solid tumors by initiating our Phase 1 trial in non-muscle invasive bladder cancer ( NMIBC) in the second half of this year. We are encouraged by the NMIBC preclinical data that we presented at the 2022 American Society of Clinical Oncology Genitourinary Cancer Symposium, which supports this indication, as well as the preclinical data that will be presented at the 2022 American Association for Cancer Research Annual Meeting that further supports the broad oncology potential of our VDC platform. Underscoring our pipeline advancement is a solid balance sheet, with our cash position supporting operations into 2024. ”
Recent Pipeline Developments
Recent Corporate Updates
Recent Events
Full Year and Fourth Quarter 2021 Financial Results
About Aura Biosciences
Aura Biosciences, Inc. is a clinical-stage biotechnology company developing virus-like drug conjugates ( VDCs), a novel class of therapies, for the treatment of multiple oncology indications. Aura’ s lead VDC candidate, AU-011 ( belzupacap sarotalocan), consists of a virus-like particle conjugated with an anti-cancer agent. AU-011 selectively targets and destroys cancer cells and activates the immune system with the potential to create long-lasting anti-tumor immunity. AU-011 is currently in development for ocular cancers, with an ongoing Phase 2 dose escalation clinical trial evaluating first-line treatment of choroidal melanoma, a vision- and life-threatening form of eye cancer where standard of care with radiotherapy leaves patients with severe comorbidities, including major vision loss. Aura plans to develop AU-011 across its ocular oncology franchise including for the treatment of patients with choroidal metastases. In addition, leveraging Aura’ s technology platform, Aura is developing AU-011 more broadly across multiple cancers, starting with a planned Phase 1 clinical trial in patients with non-muscle invasive bladder cancer. Aura is headquartered in Cambridge, MA.
For more information, visit aurabiosciences.com, or follow us on Twitter and LinkedIn.
Forward Looking Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and other federal securities laws. Any statements that are not statements of historical fact may be deemed to be forward looking statements. Words such as “ may, ” “ will, ” “ could ”, “ should, ” “ expects, ” “ intends, ” “ plans, ” “ anticipates, ” “ believes, ” “ estimates, ” “ predicts, ” “ projects, ” “ seeks, ” “ endeavor, ” “ potential, ” “ continue ” or the negative of such words or other similar expressions that can be used to identify forward-looking statements. These forward looking statements include express or implied statements regarding Aura’ s future expectations, plans and prospects, including, without limitation, statements regarding the therapeutic potential of AU-011 for the treatment of NMIBC, expectations with respect to the anticipated timing of AU-011’ s pivotal trial in CM and Phase 1 clinical trial in NMIBC, AU-011’ s use as a potential first-line treatment in BCG, preclinical data to be presented at the AACR annual meeting, the potential for AU-011 to be considered for treatment of numerous solid tumors in the clinic, the potential clinical development of the VDC platform in broad oncology indications, and Aura’ s anticipated cash runway.
The forward-looking statements in this press release are neither promises nor guarantees, and investors should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, many of which are beyond Aura’ s control and which could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including, without limitation, uncertainties inherent in clinical trials and in the availability and timing of data from ongoing clinical trials; the expected timing for submissions for regulatory approval or review by governmental authorities; the risk that the results of Aura’ s clinical trials may not be predictive of future results in connection with future clinical trials; whether Aura will receive regulatory approvals to conduct trials or to market products; whether Aura’ s cash resources will be sufficient to fund its foreseeable and unforeseeable operating expenses and capital expenditure requirements; risks, assumptions and uncertainties regarding the impact of the continuing COVID-19 pandemic on Aura’ s business, operations, strategy, goals and anticipated timelines; Aura’ s ongoing and planned pre-clinical activities; and Aura’ s ability to initiate, enroll, conduct or complete ongoing and planned clinical trials. These risks, uncertainties, and other factors include those risks and uncertainties described under the heading “ Risk Factors ” in Aura’ s most recent Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission ( SEC) and in subsequent filings made by Aura with the SEC, which are available on the SEC’ s website at www.sec.gov. Except as required by law, Aura disclaims any intention or responsibility for updating or revising any forward-looking statements contained in this press release in the event of new information, future developments or otherwise. These forward-looking statements are based on Aura’ s current expectations and speak only as of the date hereof and no representations or warranties ( express or implied) are made about the accuracy of any such forward-looking statements.
Aura Biosciences, Inc. Consolidated Statement of Operations and Comprehensive Loss ( in thousands, except share and per share amounts)
Year Ended December 31,
2021
2020
Operating Expenses:
Research and development
25,161
18,042
General and administrative
10,089
4,164
Total operating expenses
35,250
22,206
Total operating loss
( 35,250
)
( 22,206
)
Other income ( expense):
Change in fair value of warrant liability
( 11
)
3
Interest income ( expense), including amortization of discount
13
( 3
)
Loss on disposal of assets
( 3
)
—
Total other expense
( 1
)
—
Net loss and comprehensive loss
$
( 35,251
)
$
( 22,206
)
Net loss attributable to common stockholders—basic and diluted
$
( 46,193
)
$
( 30,132
)
Net loss per share attributable to common stockholders—basic and diluted
( 8.95
)
( 82.06
)
Weighted average common stock outstanding—basic and diluted
5,159,973
367,204
Aura Biosciences, Inc. Consolidated Balance Sheets ( in thousands, except share and per share amounts)
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalents
$
149,063
$
17,393
Restricted cash and deposits
23
19
Prepaid expenses and other current assets
4,618
1,043
Total current assets
153,704
18,455
Restricted cash and deposits, net of current portion
125
75
Right of use assets - operating lease
950
—
Property and equipment, net
5,251
3,574
Total Assets
$
160,030
$
22,104
Liabilities, Convertible Preferred Stock, and Stockholders’ Equity ( Deficit)
Current liabilities:
Accounts payable
2,401
611
Short-term operating lease liability
615
—
Accrued expenses and other current liabilities
4,256
2,050
Total current liabilities
7,272
2,661
Deferred rent
—
8
Long-term operating lease liability
360
—
Warrant liability
83
72
Total Liabilities
7,715
2,741
Commitments and Contingencies
Convertible preferred stock
—
128,076
Stockholders’ Equity ( Deficit):
Common stock, $ 0.00001 par value, 150,000,000 and 232,697,999 authorized at December 31, 2021, and December 31, 2020, respectively, and 29,211,643 and 381,123 shares issued and outstanding at December 31, 2021, and December 31, 2020, respectively
—
—
Additional paid-in capital
304,452
8,173
Accumulated deficit
( 152,137
)
( 116,886
)
Total Stockholders’ Equity ( Deficit)
152,315
( 108,713
)
Total Liabilities, Convertible Preferred Stock, and Stockholders’ Deficit
$
160,030
| general |
Talkdesk Implements Contact Center Solution for Iberostar Hotels & Resorts | Talkdesk supports iconic travel and tourism brand on journey to the cloud
SAN FRANCISCO & MADRID -- ( BUSINESS WIRE) -- Talkdesk®, Inc., a global customer experience leader for customer-obsessed companies, has been selected by Palma-based travel icon Iberostar Hotels & Resorts as its contact center solution provider. Talkdesk ensured a successful journey for Iberostar as the company navigated from on premises to remote call center operations.
As with many companies in the hospitality industry, COVID-19 became a catalyst for Iberostar Hotel & Resorts’ contact center modernization. Pre-pandemic, the hotel chain’ s reservation center agents worked exclusively on premises, on desktops. COVID-19 restrictions meant that agents would need to work from home, immediately and indefinitely. Additionally, worldwide travel disruptions led to unprecedented call volumes. While Iberostar Hotels & Resorts quickly pivoted reservation center operations to a remote model, the company recognized the need for a more advanced, flexible technology to support immediate requirements, as well as long-term goals.
Talkdesk CX Cloud™, an end-to-end customer experience solution, allowed Iberostar Hotels & Resorts to create a single virtual reservation center. Advanced routing capabilities helped their agents better manage fluctuating call volumes, and deep integration with Salesforce™ enabled agents to provide a more personalized experience for every guest. The Talkdesk solution empowered Iberostar Hotel & Resorts agents to continue providing the company’ s signature global standard setting customer service no matter where they were working from.
“ One of Iberostar Hotel & Resorts ' greatest strengths is our commitment to quality. For us, customers aren’ t just guests, they’ re an extension of our family and we’ re dedicated to providing the best holiday experience for them from start to finish, ” said Lucía Rubio, contact centers and CX online director, Iberostar Hotels & Resorts. “ With the Talkdesk solution, no matter where our agents are working, they have the tools they need to make guests feel valued and welcomed in every interaction. ”
“ As global travel starts a return to pre-pandemic volume, competition for guest loyalty will be even greater. Travelers will look to re-engage with the brands they trust most, and customer experience is essential to building and nurturing that trust, ” said Kieran King, chief customer officer, Talkdesk. “ With a modernized virtual contact center solution, Iberostar Hotels & Resorts empowers their agents to support the kind of holiday experience guests deserve, from the very first contact onwards. Talkdesk is proud to partner with them in achieving their customer experience goals. ”
Additional Resources
Social Networks | general |
H.B. Fuller Reports First Quarter Fiscal 2022 Results | Earnings per share ( EPS) of $ 0.69; Adjusted EPS of $ 0.80 up 21% year-over-year Adjusted EBITDA of $ 113M, up 12% year-over-over Organic revenue growth of 21% driven by strong volume growth and pricing gains Company raises its full year guidance
ST. PAUL, Minn. -- ( BUSINESS WIRE) -- H.B. Fuller Company ( NYSE: FUL) today reported financial results for its first quarter ended Feb. 26, 2022.
Items of Note for First Quarter 2022
Summary of First Quarter 2022 Results
Net revenue of $ 857 million increased 18% compared with the first quarter of 2021. Foreign currency exchange rates unfavorably impacted revenue by 3.7%. Acquisitions favorably impacted revenue by 0.9%. Organic revenue increased 20.8% versus last year with 6.1% from volume growth and 14.7% from pricing. All three GBUs delivered mid-teens percentage or higher organic revenue growth compared with the prior year.
Gross profit was $ 213 million. Adjusted gross profit of $ 214 million increased 10% versus the same period last year. Gross profit margin and adjusted gross profit margin declined year over year as higher sales volume and pricing gains were offset by elevated raw material and freight costs. Selling, General and Administrative ( SG & A) expense was $ 156 million. SG & A and adjusted SG & A improved as a percent of revenue compared with the first quarter last year resulting from strong volume leverage and general expense controls. Adjusted SG & A as a percent of revenue improved by 210 basis points versus with last year.
As a result of these factors, net income attributable to H.B. Fuller in the quarter was $ 38 million, or $ 0.69 per diluted share. Adjusted net income attributable to H.B. Fuller of $ 44 million and adjusted EPS of $ 0.80 were up 26% and 21%, respectively, versus the same period last year. Adjusted EBITDA of $ 113 million increased 12% compared with the prior year.
“ H.B. Fuller had a strong start to fiscal 2022, with 21% growth in organic revenues and adjusted EPS. We also delivered adjusted EBITDA growth of 12% which exceeded our guidance for the quarter, ” said Jim Owens, H.B. Fuller president and chief executive officer. “ Our momentum was driven by volume growth and strong pricing performance in all three of our global business units. Our remarkable first-quarter results are a direct result of executing our multi-year strategy to strengthen our operational agility and grow our portfolio of highly specialized solutions to solve customers’ toughest adhesion problems.
Owens continued, “ The unexpected and tragic events in Ukraine have all of us focused on the safety of people in the region. From an H.B. Fuller business perspective, Russia and Ukraine make up less than one percent of our annual revenue, however, these events have dramatically increased the level of supply chain uncertainty and accelerated inflationary pressures in an already fragile environment. We have moved quickly to take additional actions to secure global supply and to strategically price our products aligned with the value we deliver. H.B. Fuller’ s solutions are critical for our customers to meet high demand for durable goods, electronics, packaged products, transportation, solar panels, hygiene and medical products, building construction and maintenance, and we remain confident in our ability to deliver strong results in this turbulent environment. We have increased our outlook for fiscal 2022 to reflect the contributions from our recent acquisitions of Apollo and Fourny and our strong performance in the first quarter. As we continue to execute our strategy, we are well-positioned to drive sustainable shareholder value in 2022 and in the years ahead. ”
Key Balance Sheet and Cash Flow Items
At the end of the first quarter of fiscal 2022, the company had cash on hand of $ 63 million and total debt equal to $ 1,914 million. This compares to cash and debt levels of $ 81 million and $ 1,758 million, respectively, in the same period last year. As expected, cash flow from operations declined compared with the prior year driven by working capital due to increased sales, significantly higher raw material costs and extended lead times. Capital expenditures of $ 49 million increased year over year primarily due to timing of projects.
Fiscal 2022 Outlook
H.B. Fuller has updated its outlook for fiscal year 2022 based on current market conditions and to include the impact from the Apollo and Fourny acquisitions which were completed in January 2022. The company’ s outlook is based on the following planning assumptions:
Conference Call
The company will hold a conference call on March 24, 2022, at 9:30 a.m. CT ( 10:30 a.m. ET) to discuss its results. Interested parties may listen to the conference call on a live webcast. The webcast, along with a supplemental presentation, may be accessed from the company’ s website at https: //investors.hbfuller.com. Participants should access the webcast 10 minutes prior to the start of the call to install and test any necessary software and audio connections. A telephone replay of the conference call will be available from 12:30pm CT on March 23, 2022 through 10:59pm CT on March 31, 2022. To access the telephone replay dial ( 800) 585-8367 or ( 416) 621-4642, and enter Conference ID: 5892118.
Regulation G
The information presented in this earnings release regarding consolidated and segment organic revenue growth, operating income, adjusted gross profit, adjusted gross profit margin, adjusted selling, general and administrative expense, adjusted income before income taxes and income from equity investments, adjusted income taxes, adjusted effective tax rate, adjusted net income, adjusted diluted earnings per share and adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA) does not conform to U.S. generally accepted accounting principles ( U.S. GAAP) and should not be construed as an alternative to the reported results determined in accordance with U.S. GAAP. Management has included this non-GAAP information to assist in understanding the operating performance of the company and its operating segments as well as the comparability of results to the results of other companies. The non-GAAP information provided may not be consistent with the methodologies used by other companies. All non-GAAP information is reconciled with reported U.S. GAAP results in the “ Regulation G Reconciliation ” tables in this press release with the exception of our forward-looking non-GAAP measures contained above in our Fiscal 2022 Guidance, which the company can not reconcile to forward-looking GAAP results without unreasonable effort.
About H.B. Fuller
Since 1887, H.B. Fuller has been a leading global adhesives provider focusing on perfecting adhesives, sealants and other specialty chemical products to improve products and lives. With fiscal 2021 net revenue of $ 3.3 billion, H.B. Fuller’ s commitment to innovation and sustainable adhesive solutions brings together people, products and processes that answer and solve some of the world's biggest challenges. Our reliable, responsive service creates lasting, rewarding connections with customers in electronics, disposable hygiene, medical, transportation, aerospace, clean energy, packaging, construction, woodworking, general industries and other consumer businesses. And, our promise to our people connects them with opportunities to innovate and thrive. For more information, visit us at https: //www.hbfuller.com/.
Safe Harbor for Forward-Looking Statements
Certain statements in this press release may be considered forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as “ anticipate, ” “ believe, ” “ estimate, ” “ expect, ” “ intend, ” “ may, ” “ opportunity, ” “ outlook, ” “ plan, ” “ project, ” “ seek, ” “ should, ” “ strategy, ” `` target, '' “ will, ” “ will be, ” “ will continue, ” “ will likely result, ” “ would ” and similar expressions, and variations or negatives of these words or phrases. These statements are subject to various risks and uncertainties that could cause our actual results to differ materially from those in the forward-looking statements, including but not limited to the following: the consequences of the COVID-19 outbreak and other pandemics on our operations and financial results; the impact on the supply chain, raw material costs and pricing of our products due to the Russia-Ukraine war; the impact on our margins and product demand due to inflationary pressures; the substantial amount of debt we have incurred to finance our acquisition of Royal, our ability to repay or refinance our debt or to incur additional debt in the future, our need for a significant amount of cash to service and repay the debt and to pay dividends on our common stock, the effect of debt covenants that limit the discretion of management in operating the business or in paying dividends; our ability to pay dividends and to pursue growth opportunities if we continue to pay dividends according to the current dividend policy; our ability to achieve expected synergies, cost savings and operating efficiencies from our restructuring initiatives and operational improvement projects within the expected time frames or at all; our ability to effectively implement Project ONE; uncertain political and economic conditions; fluctuations in product demand; competing products and pricing; our geographic and product mix; availability and price of raw materials; disruptions to our relationships with our major customers and suppliers; failures in our information technology systems; regulatory compliance across our global footprint; trade policies and economic sanctions impacting our markets; changes in tax laws and tariffs; devaluations and other foreign exchange rate fluctuations; the impact of litigation and investigations, including for product liability and environmental matters; impairment charges on our goodwill or long-lived assets; the effect of new accounting pronouncements and accounting charges and credits; and similar matters. Many of the foregoing risks and uncertainties are, and will be, exacerbated by COVID-19 and the Russia-Ukraine war and the resulting deterioration of the global business and economic environment.
Additional information about these various risks and uncertainties can be found in the “ Risk Factors ” section of our Form 10-K filings, and any updates to the risk factors in our Form 10-Q and 8-K filings with the SEC, but there may be other risks and uncertainties that we are unable to identify at this time or that we do not currently expect to have a material impact on the business. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update or revise any forward-looking statements, except as required by law.
H.B. FULLER COMPANY AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
In thousands, except per share amounts ( unaudited)
Three Months Ended
Percent of
Three Months Ended
Percent of
February 26, 2022
Net Revenue
February 27, 2021
Net Revenue
Net revenue
$
856,482
100.0
%
$
725,904
100.0
%
Cost of sales
( 643,589
)
( 75.1
)%
( 533,540
)
( 73.5
)%
Gross profit
212,893
24.9
%
192,364
26.5
%
Selling, general and administrative expenses
( 155,894
)
( 18.2
)%
( 144,014
)
( 19.8
)%
Other income, net
6,142
0.7
%
7,869
1.1
%
Interest expense
( 18,196
)
( 2.1
)%
( 20,361
)
( 2.8
)%
Interest income
1,940
0.2
%
2,659
0.4
%
Income before income taxes and income from equity method investments
46,885
5.5
%
38,517
5.3
%
Income taxes
( 10,148
)
( 1.2
)%
( 10,607
)
( 1.5
)%
Income from equity method investments
1,583
0.2
%
1,896
0.3
%
Net income including non-controlling interest
38,320
4.5
%
29,806
4.1
%
Net income attributable to non-controlling interest
( 14
)
( 0.0
)%
( 15
)
( 0.0
)%
Net income attributable to H.B. Fuller
$
38,306
4.5
%
$
29,791
4.1
%
Basic income per common share attributable to H.B. Fuller
$
0.72
$
0.57
Diluted income per common share attributable to H.B. Fuller
$
0.69
$
0.56
Weighted-average common shares outstanding:
Basic
53,353
52,492
Diluted
55,395
53,339
Dividends declared per common share
$
0.168
$
0.163
H.B. FULLER COMPANY AND SUBSIDIARIES
REGULATION G RECONCILIATION
In thousands, except per share amounts ( unaudited)
Three Months Ended
February 26,
February 27,
2022
2021
Net income attributable to H.B. Fuller
$
38,306
$
29,791
Adjustments:
Acquisition project costs1
5,857
73
Organizational realignment2
1,629
3,635
Royal restructuring and integration3
398
1,282
Project One
3,204
2,205
Other4
1,166
45
Discrete tax items5
( 2,901
)
42
Income tax effect on adjustments6
( 3,510
)
( 2,018
)
Adjusted net income attributable to H.B. Fuller7
44,149
35,055
Add:
Interest expense
18,210
20,392
Interest income
( 1,951
)
( 2,659
)
Adjusted Income taxes
16,559
12,583
Depreciation and Amortization expense8
35,797
35,502
Adjusted EBITDA7
112,764
100,873
Diluted Shares
55,395
53,339
Adjusted diluted income per common share attributable to H.B. Fuller7
$
0.80
$
0.66
Revenue
$
856,482
$
725,904
Adjusted EBITDA margin7
13.2
%
13.9
%
1 Acquisition project costs include costs related to integrating and accounting for acquisitions.
2 Organizational realignment includes costs incurred as a direct result of the organizational realignment program, including compensation for employees supporting the program, consulting expense and operational inefficiencies related to the closure of production facilities and consolidation of business activities.
3 Royal restructuring and integration includes costs incurred as a direct result of the Royal restructuring and integration program including compensation for employees supporting the program, consulting expense and operational inefficiencies related to the closure of production facilities and consolidation of business activities.
4 Other includes costs incurred for COVID-19 testing, vaccinations, personal protective equipment and exceptional medical claims, and non-cash gains and losses related to legal entity consolidations.
5 Discrete tax items include impacts of legal entity mergers offset by various foreign tax matters.
6 The income tax effect on adjustments represents the difference between income taxes on net income before income taxes and income from equity method investments reported in accordance with U.S. GAAP and adjusted net income before income taxes and income from equity method investments.
7 Adjusted net income attributable to H.B. Fuller, adjusted diluted income per common share attributable to H.B. Fuller, adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures. Adjusted net income attributable to H.B. Fuller is defined as net income before the specific adjustments shown above. Adjusted diluted income per common share is defined as adjusted net income attributable to H.B. Fuller divided by the number of diluted common shares. Adjusted EBITDA is defined as net income before interest, income taxes, depreciation, amortization and the specific adjustments shown above. Adjusted EBITDA margin is defined as adjusted EBITDA divided by net revenue. The table above provides a reconciliation of adjusted net income attributable to H.B. Fuller, adjusted diluted income per common share attributable to H.B. Fuller, adjusted EBITDA and adjusted EBITDA margin to net income attributable to H.B. Fuller, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.
8 Depreciation and amortization expense added back for EBITDA is adjusted for amounts already included in adjusted net income attributable to H.B. Fuller totaling ( $ 158) and ( $ 227) for the three months ended February 26, 2022 and February 27, 2021, respectively.
H.B. FULLER COMPANY AND SUBSIDIARIES
SEGMENT FINANCIAL INFORMATION
In thousands ( unaudited)
Three Months Ended
February 26,
February 27,
2022
2021
Net Revenue:
Hygiene, Health and Consumable Adhesives
$
389,538
$
335,669
Engineering Adhesives
353,977
312,663
Construction Adhesives
112,967
77,572
Corporate unallocated
-
-
Total H.B. Fuller
$
856,482
$
725,904
Segment Operating Income ( Loss):
Hygiene, Health and Consumable Adhesives
$
32,213
$
29,912
Engineering Adhesives
32,572
30,417
Construction Adhesives
4,356
( 4,703
)
Corporate unallocated
( 12,142
)
( 7,276
)
Total H.B. Fuller
$
56,999
$
48,350
Adjusted EBITDA7
Hygiene, Health and Consumable Adhesives
$
46,598
$
44,606
Engineering Adhesives
49,879
48,168
Construction Adhesives
15,877
6,286
Corporate unallocated
410
1,813
Total H.B. Fuller
$
112,764
$
100,873
Adjusted EBITDA Margin7
Hygiene, Health and Consumable Adhesives
12.0
%
13.3
%
Engineering Adhesives
14.1
%
15.4
%
Construction Adhesives
14.1
%
8.1
%
Corporate unallocated
NMP
NMP
Total H.B. Fuller
13.2
%
13.9
%
NMP = non-meaningful percentage
H.B. FULLER COMPANY AND SUBSIDIARIES
REGULATION G RECONCILIATION
In thousands, except per share amounts ( unaudited)
Three Months Ended
February 26,
February 27,
2022
2021
Income before income taxes and income from equity method investments
$
46,885
$
38,517
Adjustments:
Acquisition project costs1
5,857
73
Organizational realignment2
1,629
3,635
Royal restructuring and integration3
398
1,282
Project One
3,204
2,205
Other4
1,166
45
Adjusted income before income taxes and income from equity method investments9
$
59,139
$
45,757
9 Adjusted income before income taxes and income from equity investments is a non-GAAP financial measure. Adjusted income before income taxes and income from equity investments is defined as income before income taxes and income from equity investments before the specific adjustments shown above. The table above provides a reconciliation of adjusted income before income taxes and income from equity investments to income before income taxes and income from equity investments, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.
H.B. FULLER COMPANY AND SUBSIDIARIES
REGULATION G RECONCILIATION
In thousands, except per share amounts ( unaudited)
Three Months Ended
February 26,
February 27,
2022
2021
Income Taxes
$
( 10,148
)
$
( 10,607
)
Adjustments:
Acquisition project costs1
( 1,678
)
( 20
)
Organizational realignment2
( 466
)
( 1,013
)
Royal restructuring and integration3
( 114
)
( 357
)
Project One
( 918
)
( 615
)
Other4
( 3,235
)
29
Adjusted income taxes10
$
( 16,559
)
$
( 12,583
)
Adjusted income before income taxes and income from equity method investments
$
59,139
$
45,757
Adjusted effective income tax rate10
28.0
%
27.5
%
10 Adjusted income taxes and adjusted effective income tax rate are non-GAAP financial measures. Adjusted income taxes are defined as income taxes before the specific adjustments shown above. Adjusted effective income tax rate is defined as income taxes divided by adjusted income before income taxes and income from equity method investments. The table above provides a reconciliation of adjusted income taxes and adjusted effective income tax rate to income taxes, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.
H.B. FULLER COMPANY AND SUBSIDIARIES
REGULATION G RECONCILIATION
In thousands ( unaudited)
Three Months Ended
February 26,
February 27,
2022
2021
Net revenue
$
856,482
$
725,904
Gross profit
$
212,893
$
192,364
Gross profit margin
24.9
%
26.5
%
Adjustments:
Acquisition project costs1
662
-
Organizational realignment2
263
249
Royal restructuring and integration3
233
740
Project ONE
-
725
Other4
378
9
Adjusted gross profit11
$
214,429
$
194,087
Adjusted gross profit margin11
25.0
%
26.7
%
11 Adjusted gross profit and adjusted gross profit margin are non-GAAP financial measures. Adjusted gross profit and adjusted gross profit margin is defined as gross profit and gross profit margin excluding the specific adjustments shown above. The table above provides a reconciliation of adjusted gross profit and gross profit margin to gross profit and gross profit margin, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.
H.B. FULLER COMPANY AND SUBSIDIARIES
REGULATION G RECONCILIATION
In thousands ( unaudited)
Three Months Ended
February 26,
February 27,
2022
2021
Selling, general and administrative expenses
$
( 155,894
)
$
( 144,014
)
Adjustments:
Acquisition project costs1
5,195
73
Organizational realignment2
1,354
3,387
Royal restructuring and integration3
179
572
Project ONE
3,204
1,480
Other4
675
37
Adjusted selling, general and administrative expenses12
$
( 145,287
)
$
( 138,465
)
12 Adjusted selling, general and administrative expenses is a non-GAAP financial measure. Adjusted selling, general and administrative expenses is defined as selling, general and administrative expenses excluding the specific adjustments shown above. The table above provides a reconciliation of adjusted selling, general and administrative expenses to selling, general and administrative expenses, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.
H.B. FULLER COMPANY AND SUBSIDIARIES
REGULATION G RECONCILIATION
In thousands ( unaudited)
Hygiene, Health
Three Months Ended:
and Consumable
Engineering
Construction
Corporate
H.B. Fuller
February 26, 2022
Adhesives
Adhesives
Adhesives
Total
Unallocated
Consolidated
Net income attributable to H.B. Fuller
$
35,137
$
34,737
$
6,683
$
76,557
$
( 38,251
)
$
38,306
Adjustments:
Acquisition project costs1
-
-
-
-
5,857
5,857
Organizational realignment2
-
-
-
-
1,629
1,629
Royal Restructuring and integration3
-
-
-
-
398
398
Project One
-
-
-
-
3,204
3,204
Other4
-
-
-
-
1,166
1,166
Discrete tax items5
-
-
-
-
( 2,901
)
( 2,901
)
Income tax effect on adjustments6
-
-
-
-
( 3,510
)
( 3,510
)
Adjusted net income attributable to H.B. Fuller7
35,137
34,737
6,683
76,557
( 32,408
)
44,149
Add:
Interest expense
-
-
-
-
18,210
18,210
Interest income
-
-
-
-
( 1,951
)
( 1,951
)
Adjusted Income taxes
-
-
-
-
16,559
16,559
Depreciation and amortization expense
11,461
15,142
9,194
35,797
-
35,797
Adjusted EBITDA7
$
46,598
$
49,879
$
15,877
$
112,354
$
410
$
112,764
Revenue
$
389,538
$
353,977
$
112,967
$
856,482
-
$
856,482
Adjusted EBITDA Margin7
12.0
%
14.1
%
14.1
%
13.1
%
NMP
13.2
%
Note: Adjusted EBITDA is a non-GAAP financial measure. The table above provides a reconciliation of adjusted EBITDA for each segment to net income attributable to H.B. Fuller for each segment, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.
NMP = Non-meaningful percentage
H.B. FULLER COMPANY AND SUBSIDIARIES
REGULATION G RECONCILIATION
In thousands ( unaudited)
Hygiene, Health
Three Months Ended:
and Consumable
Engineering
Construction
Corporate
H.B. Fuller
February 27, 2021
Adhesives
Adhesives
Adhesives
Total
Unallocated
Consolidated
Net income attributable to H.B. Fuller
$
33,170
$
32,916
$
( 2,528
)
$
63,558
$
( 33,767
)
$
29,791
Adjustments:
Acquisition project costs1
-
-
-
-
73
73
Organizational realignment2
-
-
-
-
3,635
3,635
Royal Restructuring and integration3
-
-
-
-
1,282
1,282
Project One
-
-
-
-
2,205
2,205
Other4
-
-
-
-
45
45
Discrete tax items5
-
-
-
-
42
42
Income tax effect on adjustments6
-
-
-
-
( 2,018
)
( 2,018
)
Adjusted net income attributable to H.B. Fuller7
33,170
32,916
( 2,528
)
63,558
( 28,503
)
35,055
Add:
Interest expense
-
-
-
-
20,392
20,392
Interest income
-
-
-
-
( 2,659
)
( 2,659
)
Adjusted Income taxes
-
-
-
-
12,583
12,583
Depreciation and amortization expense
11,436
15,252
8,814
35,502
-
35,502
Adjusted EBITDA7
$
44,606
$
48,168
$
6,286
$
99,060
$
1,813
$
100,873
Revenue
$
335,669
$
312,663
$
77,572
$
725,904
-
$
725,904
Adjusted EBITDA Margin7
13.3
%
15.4
%
8.1
%
13.6
%
NMP
13.9
%
Note: Adjusted EBITDA is a non-GAAP financial measure. The table above provides a reconciliation of adjusted EBITDA for each segment to net income attributable to H.B. Fuller for each segment, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.
NMP = Non-meaningful percentage
H.B. FULLER COMPANY AND SUBSIDIARIES
SEGMENT FINANCIAL INFORMATION
NET REVENUE GROWTH ( DECLINE)
( unaudited)
Three Months Ended
February 26, 2022
Price
14.7
%
Volume
6.1
%
Organic Growth13
20.8
%
M & A
0.9
%
Constant currency
21.7
%
F/X
( 3.7
)%
Total H.B. Fuller Net Revenue Growth
18.0
%
Revenue growth versus 2021
Three Months Ended
February 26, 2022
Net Revenue
F/X
Constant Currency
M & A
Organic Growth 13
Hygiene, Health and Consumable Adhesives
16.0
%
( 4.7)
%
20.7
%
0.0
%
20.7
%
Engineering Adhesives
13.2
%
( 3.3)
%
16.5
%
0.0
%
16.5
%
Construction Adhesives
45.6
%
( 0.8)
%
46.4
%
8.1
%
38.3
%
Total H.B. Fuller
18.0
%
( 3.7)
%
21.7
%
0.9
%
20.8
%
13 We use the term “ organic revenue ” to refer to net revenue, excluding the effect of foreign currency changes and acquisitions and divestitures. Organic growth reflects adjustments for the impact of period-over-period changes in foreign currency exchange rates on revenues and the revenues associated with acquisitions and divestitures.
CONSOLIDATED BALANCE SHEETS
H.B. Fuller Company and Subsidiaries
( In thousands, except share and per share amounts)
February 26,
November 27,
2022
2021
Assets
Current assets:
Cash and cash equivalents
$
63,511
$
61,786
Trade receivables ( net of allowances of $ 10,736 and $ 9,935, as of February 26, 2022 and November 27, 2021, respectively)
616,274
614,645
Inventories
547,868
448,404
Other current assets
120,966
96,335
Total current assets
1,348,619
1,221,170
Property, plant and equipment
1,536,539
1,500,989
Accumulated depreciation
( 823,744
)
( 805,622
)
Property, plant and equipment, net
712,795
695,367
Goodwill
1,425,936
1,298,845
Other intangibles, net
785,389
687,075
Other assets
368,700
372,073
Total assets
$
4,641,439
$
4,274,530
Liabilities, non-controlling interest and total equity
Current liabilities:
Notes payable
$
25,866
$
24,983
Trade payables
531,428
500,321
Accrued compensation
65,604
109,542
Income taxes payable
20,570
15,943
Other accrued expenses
78,468
86,061
Total current liabilities
721,936
736,850
Long-term debt
1,888,264
1,591,479
Accrued pension liabilities
71,358
71,651
Other liabilities
314,033
277,190
Total liabilities
2,995,591
2,677,170
Commitments and contingencies ( Note 12)
Equity:
H.B. Fuller stockholders ' equity:
Preferred stock ( no shares outstanding) shares authorized – 10,045,900
-
-
Common stock, par value $ 1.00 per share, shares authorized – 160,000,000, shares outstanding – 53,041,801 and 52,777,753 as of February 26, 2022 and November 27, 2021, respectively
53,042
52,778
Additional paid-in capital
221,338
213,637
Retained earnings
1,629,943
1,600,601
Accumulated other comprehensive loss
( 259,070
)
( 270,247
)
Total H.B. Fuller stockholders ' equity
1,645,253
1,596,769
Non-controlling interest
595
591
Total equity
1,645,848
1,597,360
Total liabilities, non-controlling interest and total equity
$
4,641,439
$
4,274,530
CONSOLIDATED STATEMENTS of CASH FLOWS
H.B. Fuller Company and Subsidiaries
( In thousands)
Three Months Ended
February 26, 2022
February 27, 2021
Cash flows from operating activities:
Net income including non-controlling interest
$
38,320
$
29,806
Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities:
Depreciation
18,163
17,833
Amortization
17,792
17,896
Deferred income taxes
( 6,020
)
( 2,281
)
Income from equity method investments, net of dividends received
( 1,583
)
( 1,896
)
Loss on sale or disposal of assets
( 13
)
( 16
)
Share-based compensation
5,091
6,821
Pension and other post-retirement benefit plan activity
( 5,361
)
( 7,999
)
Change in assets and liabilities, net of effects of acquisitions:
Trade receivables, net
13,283
3,318
Inventories
( 87,419
)
( 63,598
)
Other assets
( 3,195
)
( 1,871
)
Trade payables
46,464
67,373
Accrued compensation
( 44,066
)
( 18,146
)
Other accrued expenses
( 6,839
)
753
Income taxes payable
6,698
882
Other liabilities
( 8,810
)
( 17,921
)
Other
( 178
)
4,895
Net cash provided by operating activities
( 17,673
)
35,849
Cash flows from investing activities:
Purchased property, plant and equipment
( 48,883
)
( 35,283
)
Purchased businesses, net of cash acquired
( 229,314
)
( 5,445
)
Proceeds from sale of property, plant and equipment
22
263
Cash received from government grant
3,928
-
Cash payments related to government grant
-
( 1,526
)
Net cash used in investing activities
( 274,247
)
( 41,991
)
Cash flows from financing activities:
Proceeds from debt
307,500
-
Repayment of long-term debt
-
( 11,000
)
Payment of debt issuance costs
( 400
)
-
Net payments of notes payable
( 7,604
)
( 22
)
Dividends paid
( 8,881
)
( 8,460
)
Contingent consideration payment
( 5,000
)
-
Proceeds from stock options exercised
5,754
6,398
Repurchases of common stock
( 3,577
)
( 2,580
)
Net cash provided by ( used in) financing activities
287,792
( 15,664
)
Effect of exchange rate changes on cash and cash equivalents
5,853
2,464
Net change in cash and cash equivalents
1,725
( 19,342
)
Cash and cash equivalents at beginning of period
61,786
100,534
Cash and cash equivalents at end of period
$
63,511
$ | general |
Traeger Announces Fourth Quarter and Full Year 2021 Results Provides Guidance For 2022 | SALT LAKE CITY -- ( BUSINESS WIRE) -- Traeger, Inc. ( `` Traeger '' or the `` Company '') ( NYSE: COOK), creator and category leader of the wood pellet grill, today announced its financial results for the fourth quarter and year ended December 31, 2021.
Fourth Quarter Highlights
Full year 2021 Results
`` We are very pleased with our fourth quarter performance as we continue to see strong momentum across our categories and geographies. Stepping back, we achieved several milestones in 2021 including a successful IPO, our acquisition of MEATER, and the introduction of a new direct to consumer platform, Traeger Provisions. Along with that, we achieved fourth quarter sales growth of 30.8% which capped a tremendous year with full year sales increasing 43.9% versus 2020. While we are projecting lower than typical growth in 2022, our strong multi-year growth CAGR and market share gains give us confidence in our long-term opportunity to grow household penetration and to disrupt the grilling category. Despite near-term headwinds, we are very excited about the upcoming year with significant new product innovation throughout our categories and we remain focused on executing strategic initiatives that we believe will drive long-term shareholder value, '' said Jeremy Andrus, CEO of Traeger.
Operating Results for the Fourth Quarter
Total revenues increased by 30.8% to $ 174.9 million, compared to $ 133.7 million in the fourth quarter last year, driven by strong performance across the following product categories:
Geographically, North America revenues increased 19.6% driven by strong growth in the US as well as continued strength in Canada. Rest of World revenues increased 439.5% reflecting the continued robust growth in core international markets.
Gross profit increased to $ 65.5 million, compared to $ 51.1 million in the fourth quarter last year. Gross profit margin was 37.4% in the fourth quarter, compared to 38.2% in the same period last year. Gross margin was down 80 basis points, reflecting higher inbound freight costs, the amortization of acquired intangible assets and increased warehousing costs, offset by price increases implemented in the second half of 2021, a higher mix of customer orders fulfilled via our direct import program, favorability in freight out, and a favorable change in the cost per grill for WiFIRE connectivity.
Sales and marketing expenses were $ 38.5 million, compared to $ 29.4 million in the fourth quarter last year. The increase was driven primarily by advertising costs related to MEATER, which is not a component of the 2020 comparable period. The increase was also driven by higher equity-based compensation expense of $ 3.4 million due to the restricted stock units issued under the Traeger, Inc. 2021 Incentive Award Plan, as well as higher personnel-related expenses associated with an increase in headcount in our marketing, customer experience and sales functions.
General and administrative ( “ G & A ”) expenses were $ 44.4 million, compared to $ 14.6 million in the fourth quarter last year. The increase in general and administrative expense was driven primarily by higher equity-based compensation expense of $ 15.6 million due to the restricted stock units issued under the Traeger, Inc. 2021 Incentive Award Plan, higher personnel-related expenses, increased professional services fees related to non-routine costs for our Traeger Provisions platform, and non-routine legal expenses.
Net loss was $ 33.7 million, or $ 0.29 per diluted share, as compared to a net loss of $ 3.3 million, or $ 0.03 per diluted share,1 in the fourth quarter of last year.
Adjusted net income was $ 3.6 million, or $ 0.03 per diluted share as compared to adjusted net income of $ 3.7 million, or $ 0.03 per diluted share in the fourth quarter last year.2
Adjusted EBITDA was $ 13.8 million compared to $ 13.8 million in the fourth quarter last year.2
Operating Results for the Full Year ended December 31, 2021
Total revenues increased by 43.9% to $ 785.5 million, compared to $ 545.8 million last year, driven by growth across product categories:
Geographically, North America revenues increased 39.1% driven by strong growth in the US as well as continued strength in Canada. Rest of World revenues increased 205.0% reflecting the continued robust growth in core international markets.
Gross profit increased to $ 303.7 million, compared to $ 235.4 million last year. Gross profit margin was 38.7%, compared to 43.1% last year. The decrease in gross profit margin was primarily due to increased freight costs and logistics costs, offset by price actions taken in the second-half of the year and a favorable change in the cost per grill for WiFIRE connectivity.
Sales and marketing expenses were $ 165.2 million, compared to $ 93.7 million last year. The increase was primarily due to increased advertising expense to expand brand awareness and to drive demand as well as higher equity-based compensation. In addition, sales and marketing expense increased due to additional investments in talent across marketing, sales and customer experience.
General and administrative ( “ G & A ”) expenses were $ 158.6 million, compared to $ 50.2 million last year. The increase in G & A expenses was driven by higher equity-based compensation expense, increased professional fees and increased investments in personnel-related expenses.
Net loss was $ 88.8 million, or a loss of $ 0.79 per diluted share, as compared to net income of $ 31.6 million, or $ 0.29 per diluted share in the same period last year.
Adjusted net income was $ 66.9 million, or $ 0.60 per diluted share, as compared to adjusted net income of $ 73.3 million, or $ 0.67 per diluted share in the same period last year.2
Adjusted EBITDA was $ 109.0 million compared to $ 116.1 million in the same period last year.2
Balance Sheet
Cash and cash equivalents at December 31, 2021 totaled $ 16.7 million, compared to $ 11.6 million at December 31, 2020.
Inventory at December 31, 2021 was $ 145.0 million, compared to $ 68.8 million at December 31, 2020. While strategically navigating challenges in the global supply chain, we have invested in and managed our inventory balance to a level that represents the right product mix to meet expected demand and targeted levels of safety stock. Inventory costs increased primarily due to macroeconomic factors, including increased freight rates, logistics costs, rising commodity prices and other product costs, as well as inventory related to MEATER, which was not in the comparable period of the prior year.
Guidance For Full Year Fiscal 2022
Full year guidance reflects a moderation in year over year sales growth driven by comparing against two years of accelerated retail activity and the impact of inflationary pressures and geopolitical turmoil on consumer sentiment and discretionary spending, as well as gross margin pressures due to global supply chain challenges.
Guidance For First Quarter 2022
First quarter guidance reflects a decline in year over year sales growth driven by comparing against accelerated retail activity in the first quarter of 2021 and the impact of inflationary pressures and geopolitical turmoil on consumer sentiment and discretionary spending, as well as gross margin pressures due to global supply chain challenges.
A reconciliation of Adjusted EBITDA guidance to net loss on a forward-looking basis can not be provided without unreasonable efforts, as the Company is unable to provide reconciling information with respect to provision ( benefit) for income taxes, other ( income) expense, interest expense, depreciation and amortization, equity-based compensation, non-routine legal expenses, non-routine start-up costs, non-routine acquisition expenses, change in fair value of contingent consideration, offering related expenses, non-routine refinancing expenses, and other adjustment items all of which are adjustments to Adjusted EBITDA.
Conference Call Details
A conference call to discuss the Company's fourth quarter and full year 2021 results is scheduled for March 23, 2022, at 4:30 p.m. ET. To participate, please dial ( 646) 904-5544 or ( 929) 526-1599 for international callers, conference ID 606484. The conference call will also be webcast live at https: //investors.traeger.com. A recording will be available shortly after the conclusion of the call. To access the replay, please dial ( 929) 458-6194 or +44 ( 204) 525-0658 for international callers, conference ID 415189. A replay of the webcast will also be available approximately two hours after the conclusion of the call on the Company's website at https: //investors.traeger.com.
Annual Meeting Date
The Board of Directors of Traeger, Inc. has established June 14, 2022 as the date of its Annual Meeting of Stockholders ( the “ 2022 Annual Meeting ”). The 2022 Annual Meeting will be held virtually by means of remote communication. The details of the virtual annual meeting, including how stockholders can log into the virtual meeting, vote and submit questions, will be disclosed in the Company’ s definitive proxy statement for the 2022 Annual Meeting to be filed with the Securities and Exchange Commission.
Any stockholder seeking to bring business before the 2022 Annual Meeting or to nominate a director must provide timely notice, as set forth in the Company’ s Bylaws ( the “ Bylaws ”). Specifically, written notice of any proposed business or nomination must be received at the Company’ s principal executive offices no later than April 2, 2022 ( which is the tenth day following this public announcement of the date of the 2022 Annual Meeting). Any notice of proposed business or nomination must comply with the specific requirements set forth in the Bylaws.
About Traeger
Traeger, headquartered in Salt Lake City, is the creator and category leader of the wood pellet grill, an outdoor cooking system that ignites all-natural hardwoods to grill, smoke, bake, roast, braise, and barbecue. Our grills are versatile and easy to use, empowering cooks of all skill sets to create delicious meals with a wood-fired flavor that can not be replicated with gas, charcoal, or electric grills. Grills are at the core of our platform and are complemented by Traeger wood pellets, rubs, sauces, premium frozen meal kits and accessories.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our anticipated first quarter and full year fiscal 2022 results. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, our history of operating losses; the sustainability of our growth rates; our ability to manage or future growth effectively; our growth depending in part on our continued penetration and expansion into additional markets; our dependence on maintaining and strengthening our brand to generate and maintain ongoing demand for our products; our ability to cost-effectively attract new customers or retain our existing customers; our failure to maintain product quality and product performance at an acceptable cost; product liability and warrant claims and product calls; the highly competitive market in which we operate; use of social media and community ambassadors affecting our reputation or subjecting us to fines or other penalties; any decline in sales of our grills, which would negatively affect our future revenue and results; any decline in demand from certain retailers; our ability to anticipate customer preferences; our ability to maximize short-term financial results; the market for wood pellet grills; the COVID-19 pandemic; and the other factors discussed under the caption `` Risk Factors '' in our periodic and current reports filed with the Securities and Exchange Commission from time to time, including our Quarterly Report on Form 10-Q for the period ended September 30, 2021, and, once filed, our Annual Report on Form 10-K for the year ended December 31, 2021. Any such forward-looking statements represent management's estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.
TRAEGER, INC. CONSOLIDATED BALANCE SHEETS
( unaudited)
( in thousands, except unit, share, and per share amounts)
December 31,
2021
2020
ASSETS
Current Assets
Cash and cash equivalents
$
16,740
$
11,556
Accounts receivable, net
92,927
64,840
Inventories
145,038
68,835
Prepaid expenses and other current assets
15,036
13,776
Total current assets
269,741
159,007
Property, plant, and equipment, net
55,477
32,404
Goodwill
297,047
256,838
Intangible assets, net
555,151
539,841
Other long-term assets
3,608
1,491
Total assets
$
1,181,024
$
989,581
LIABILITIES, MEMBER’ S, AND STOCKHOLDERS ' EQUITY
Current Liabilities
Accounts payable
$
42,694
$
21,673
Accrued expenses
69,773
54,697
Line of credit
41,138
—
Current portion of notes payable
—
3,407
Current portion of capital leases
420
296
Current portion of contingent consideration
12,200
—
Total current liabilities
166,225
80,073
Notes payable
379,395
433,605
Capital leases, net of current portion
677
536
Contingent consideration, net of current portion
13,100
—
Deferred tax liability
11,673
—
Other long-term liabilities
434
327
Total liabilities
571,504
514,541
Commitments and contingencies ( see Note 14)
Member’ s and stockholders ' equity
0 and 108,724,422 member’ s capital common units authorized, issued, and outstanding as of December 31, 2021 and 2020
—
—
Preferred stock, $ 0.0001 par value; 25,000,000 shares authorized and no shares issued or outstanding as of December 31, 2021 and 2020
—
—
Common stock, $ 0.0001 par value; 1,000,000,000 shares authorized
Issued shares - 117,547,916 and 0 as of December 31, 2021 and 2020
Outstanding shares - 117,547,916 and 0 as of December 31, 2021 and 2020
12
—
Member’ s capital
—
571,038
Additional paid-in capital
794,413
—
Accumulated deficit
( 184,819
)
( 95,998
)
Accumulated other comprehensive loss
( 86
)
—
Total member’ s and stockholders ' equity
609,520
475,040
Total liabilities, member’ s, and stockholders ' equity
$
1,181,024
$
989,581
TRAEGER, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME ( LOSS) ( unaudited) ( in thousands, except share and per share amounts)
Three Months Ended December 31,
Year-ended December 31,
2021
2020
2021
2020
Revenue
$
174,932
$
133,727
$
785,545
$
545,772
Cost of revenue
109,481
82,584
481,834
310,408
Gross profit
65,451
51,143
303,711
235,364
Operating expense:
Sales and marketing
38,541
29,353
165,180
93,690
General and administrative
44,373
14,606
158,555
50,243
Amortization of intangible assets
8,888
8,135
34,379
32,533
Change in fair value of contingent consideration
900
—
3,800
—
Total operating expense
92,702
52,094
361,914
176,466
Income ( loss) from operations
( 27,251
)
( 951
)
( 58,203
)
58,898
Other income ( expense):
Interest expense
( 5,253
)
( 7,764
)
( 26,646
)
( 34,073
)
Loss on extinguishment of debt
—
—
( 5,185
)
—
Other income
1,590
5,480
2,702
7,526
Total other expense
( 3,663
)
( 2,284
)
( 29,129
)
( 26,547
)
Income ( loss) before provision for income taxes
( 30,914
)
( 3,235
)
( 87,332
)
32,351
Provision for income taxes
2,744
52
1,489
749
Net income ( loss)
$
( 33,658
)
$
( 3,287
)
$
( 88,821
)
$
31,602
Net income ( loss) per share, basic and diluted
$
( 0.29
)
$
( 0.03
)
$
( 0.79
)
$
0.29
Weighted-average common shares outstanding, basic and diluted
117,547,916
108,724,387
112,374,669
108,724,387
Other comprehensive loss:
Foreign currency translation adjustments
$
( 97
)
$
—
$
( 86
)
$
—
Total other comprehensive loss
( 97
)
—
( 86
)
—
Comprehensive income ( loss)
$
( 33,755
)
$
( 3,287
)
$
( 88,907
)
$
31,602
TRAEGER, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS ( unaudited) ( in thousands)
Year-ended December 31,
2021
2020
2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ( loss)
$
( 88,821
)
$
31,602
$
( 29,593
)
Adjustments to reconcile net income ( loss) to net cash provided by ( used in) operating activities:
Depreciation of property, plant, and equipment
9,150
7,762
6,057
Amortization of intangible assets
38,350
33,206
33,100
Amortization of deferred financing costs
2,523
2,762
2,640
Loss on disposal of property, plant, and equipment
274
186
618
Loss on extinguishment of debt
5,185
—
—
Equity-based compensation expense
81,112
12,810
2,352
Bad debt expense
468
—
206
Unrealized loss ( gain) on derivative contracts
4,821
( 6,087
)
( 581
)
Change in fair value of contingent consideration
3,800
—
—
Change in operating assets and liabilities:
Accounts receivable
( 26,365
)
( 30,170
)
( 8,494
)
Inventories, net
( 70,772
)
( 29,531
)
( 4,949
)
Prepaid expenses and other current assets
( 5,787
)
( 4,311
)
( 49
)
Other long-term assets
( 681
)
—
—
Accounts payable and accrued expenses
20,417
28,351
17,052
Deferred rent
( 866
)
17
127
Net cash provided by ( used in) operating activities
( 27,192
)
46,597
18,486
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant, and equipment
( 23,714
)
( 14,127
)
( 7,501
)
Capitalization of patent costs
( 563
)
( 511
)
( 503
)
Proceeds from notes receivable
—
21
48
Business combination, net of cash acquired
( 56,855
)
( 12,724
)
( 1,141
)
Net cash used in investing activities
( 81,132
)
( 27,341
)
( 8,997
)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from line of credit
118,000
57,000
34,500
Repayments on line of credit
( 67,862
)
( 67,000
)
( 40,000
)
Proceeds from long-term debt
510,000
—
—
Payment of deferred financing costs
( 8,601
)
( 810
)
—
Repayments of long-term debt
( 579,921
)
( 3,407
)
( 3,407
)
Principal payments on capital lease obligations
( 382
)
( 310
)
( 273
)
Distribution to members
—
( 250
)
( 80
)
Proceeds from initial public offering, net of issuance costs
142,274
—
—
Net cash provided by ( used in) financing activities
113,508
( 14,777
)
( 9,260
)
Net increase in cash
5,184
4,479
229
Cash at beginning of period
11,556
7,077
6,848
CASH AT END OF PERIOD
$
16,740
$
11,556
$
7,077
TRAEGER, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS ( unaudited) ( in thousands)
( Continued)
Year-ended December 31,
2021
2020
2019
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for interest
$
23,444
$
31,327
$
36,791
Cash paid for income taxes
$
1,654
$
76
$
124
NON-CASH FINANCING AND INVESTING ACTIVITIES
Equipment purchased under capital leases
$
645
$
393
$
350
Property, plant, and equipment included in accounts payable
$
7,351
$
576
$
318
Unpaid amount for acquisition of subsidiaries included in accrued expenses
$
—
$
2,414
$
—
TRAEGER, INC. RECONCILIATIONS OF AND OTHER INFORMATION REGARDING NON-GAAP FINANCIAL MEASURES ( unaudited)
In addition to our results and measures of performance determined in accordance with U.S. GAAP, we believe that certain non-GAAP financial measures are useful in evaluating and comparing our financial and operational performance over multiple periods, identifying trends affecting our business, formulating business plans and making strategic decisions.
Each of Adjusted EBITDA and Adjusted Net Income is a key performance measure that our management uses to assess our financial performance and is also used for internal planning and forecasting purposes. We believe that these non-GAAP financial measures are useful to investors and other interested parties in analyzing our financial performance because it provides a comparable overview of our operations across historical periods. In addition, we believe that providing each of Adjusted EBITDA and Adjusted Net Income, together with a reconciliation of net income ( loss) to each such measure, helps investors make comparisons between our company and other companies that may have different capital structures, different tax rates, and/or different forms of employee compensation. For example, due to finite-lived intangible assets included on our balance sheet following our corporate reorganization in 2017, we have significant non-cash amortization expense attributable to the nature of our capital structure.
Each of Adjusted EBITDA and Adjusted Net Income is used by our management team as an additional measure of our performance for purposes of business decision-making, including managing expenditures, and evaluating potential acquisitions. Period-to-period comparisons of Adjusted EBITDA and Adjusted Net Income help our management identify additional trends in our financial results that may not be shown solely by period-to-period comparisons of net income or income from continuing operations. In addition, we may use Adjusted EBITDA in the incentive compensation programs applicable to some of our employees. Each of Adjusted EBITDA and Adjusted Net Income has inherent limitations because of the excluded items and may not be directly comparable to similarly titled metrics used by other companies.
Adjusted EBITDA
We calculate Adjusted EBITDA as net income ( loss) adjusted to exclude provision for income taxes, other ( income) expense, interest expense, depreciation and amortization, equity-based compensation, non-routine legal expenses, non-routine start-up costs, non-routine acquisition expenses, change in fair value of contingent consideration, offering related expenses, non-routine refinancing expenses, and other adjustment items. Other ( income) expense are gains ( losses) on disposal of property, plant and equipment, impairments of long-term assets, unrealized gains ( losses) from derivatives, and the loss on extinguishment of debt upon refinancing and early repayment. Non-routine legal expenses are primarily external legal expenses for litigation, patent and trademark defense, and legal costs related to an acquisition. Non-routine start-up costs represent investments in Traeger Provisions. Non-routine acquisition expenses are primarily for consulting and legal costs incurred in connection with the acquisition of MEATER. Change in fair value of contingent consideration results from changes in the fair value of the contingent consideration associated with the acquisition of MEATER due to changes in discount periods and rates, and changes in probability assumptions with respect to the likelihood of achieving the performance targets. Offering related expenses are primarily for a one-time bonus paid to certain employees, including certain of our executive officers, as well as legal and consulting costs incurred in connection with our IPO process. Non-routine refinancing expenses are primarily for consulting and legal costs incurred to refinance our credit facilities. Other adjustment items include inventory write-offs and restoration of our wood pellet production facility due to flood damage sustained as a result of a tropical storm and costs to establish our China warehouse.3 Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of revenue. Adjusted EBITDA and Adjusted EBITDA Margin should be viewed as measures of operating performance that are supplements to, and not substitutes for, operating income or loss, net earnings or loss and other U.S. GAAP measures of income ( loss). The following table presents a reconciliation of net income ( loss), the most directly comparable financial measure calculated in accordance with U.S. GAAP, to Adjusted EBITDA on a consolidated basis.
Three Months Ended December 31,
Year-ended December 31,
2021
2020
2021
2020
( dollars in thousands)
Net income ( loss)
$
( 33,658
)
$
( 3,287
)
$
( 88,821
)
$
31,602
Adjusted to exclude the following:
Provision for income taxes
2,744
52
1,489
749
Other ( income) expense
473
( 3,789
)
10,518
( 5,947
)
Interest expense
5,253
7,764
26,646
34,073
Depreciation and amortization
12,984
10,574
47,499
40,968
Equity-based compensation
19,401
1,751
81,112
12,810
Non-routine legal expenses
2,275
741
6,343
1,820
Non-routine start-up costs
3,038
—
8,901
—
Non-routine acquisition expenses
—
—
2,624
—
Change in fair value of contingent consideration
900
—
3,800
—
Offering related expenses
83
—
3,725
—
Non-routine refinancing expenses
—
—
3,895
—
Other adjustment items
304
—
1,276
—
Adjusted EBITDA
$
13,797
$
13,806
$
109,007
$
116,075
Revenue
174,932
133,727
785,545
545,772
Net ( loss) income as a percentage of revenue
( 19.2
)%
( 2.5
)%
( 11.3
)%
5.8
%
Adjusted EBITDA Margin
7.9
%
10.3
%
13.9
%
21.3
%
Adjusted Net Income
We calculate Adjusted Net Income as net income ( loss) adjusted to exclude other ( income) expense, equity-based compensation, non-routine legal expenses, amortization of acquisition intangibles, non-routine start-up costs, non-routine acquisition expenses, change in fair value of contingent consideration, offering related expenses, non-routine refinancing expenses, other adjustment items, and tax impact of adjusting items. Amortization of acquisition intangibles includes amortization expense associated with intangible assets recorded in connection with the 2017 corporate reorganization and acquisition of Traeger Pellet Grills Holdings LLC. Tax impact of adjusting items for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on Adjusted Net Income. This rate is based on our estimated annual GAAP income ( loss) tax rate forecast, adjusted to account for items excluded from GAAP income ( loss) in calculating the non-GAAP financial measures presented below.
Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates, our estimated tax rate on Adjusted Net Income may differ from our GAAP tax rate and from our actual tax liabilities. Adjusted Net Income should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, operating income or loss, net earnings or loss and other U.S. GAAP measures of income ( loss). The following table presents a reconciliation of net ( loss) income, the most directly comparable financial measure calculated in accordance with U.S. GAAP, to Adjusted Net Income on a consolidated basis.
Three Months Ended December 31,
Year-ended December 31,
2021
2020
2021
2020
( in thousands)
Net income ( loss)
$
( 33,658
)
$
( 3,287
)
$
( 88,821
)
$
31,602
Adjusted to exclude the following:
Other expense ( income)
473
( 3,789
)
10,518
( 5,947
)
Equity-based compensation
19,401
1,751
81,112
12,811
Non-routine legal expenses
2,275
741
6,343
1,821
Amortization of acquisition intangibles
8,253
8,253
33,014
33,014
Non-routine start-up costs
3,038
—
8,901
—
Non-routine acquisition expenses
—
—
2,624
—
Change in fair value of contingent consideration
900
—
3,800
—
Offering related expenses
83
—
3,725
—
Non-routine refinancing expenses
—
—
3,895
—
Other adjustment items
304
—
1,276
—
Tax impact of adjusting items
2,555
—
477
—
Adjusted net income
$
3,624
$
3,669
$
66,864
$
73,301
| general |
Murphy, Exxon Drill Frontier Wildcat Off Brazil | Drilling for the closely watched Exxon-led Cutthroat-1 wildcat in Brazil’ s Sergipe-Alagoas Basin is expected to wrap up sometime in April, according to details from one of its partners.
Partner Murphy Oil said in a presentation to investors that drilling time for the well is planned at between 45 and 60 days. The probe spudded on Feb. 20, according to Brazilian oil regulator ANP.
Murphy said its estimate of the well’ s resource potential ranges between 500 million and 1 billion barrels of oil equivalent.
“ We’ re drilling a big exploration target in Brazil, that well’ s ongoing, ” CEO Roger Jenkins told the Scotia Howard Weil Conference on Tuesday. “ We’ re outboard of some very successful fields drilled by Petrobras. ”
Exxon operates the well with a 50% stake, with Murphy on 20% and Brazilian independent Enauta on 30%. Murphy estimates its well costs at about $ 27.5 million.
“ It’ s an example of how, for not even the cost of drilling a pad in the Eagle Ford Shale, we have a chance to find... proven oil reserves, ” Jenkins continued. “ That’ s very rare and very unique for a company of our size. ”
The deep waters of the Sergipe-Alagoas Basin are one of the lesser-explored frontiers off Brazil and have seen less attention than the country's formidable pre-salt trend. But they are still thought to hold significant promise.
The basin is starting to come into its own. Some 2.8 billion boe have been discovered in the basin, with 1.2 billion boe found in deepwater since 2017, per data cited by Murphy.
Murphy and Exxon hope to follow in the footsteps of state producer Petrobras, which last year green-lighted its first floating production, storage and offloading ( FPSO) unit in the basin, a project known as SEAP.
The unit will have capacity for 120,000 barrels per day of production and is expected to come on line in 2026. A second unit is expected to follow in the years to come.
Petrobras Production Development Officer Joao Henrique Rittershaussen told Energy Intelligence in December that the Sergipe-Alagoas resource can be developed with a simpler production system than what is used in the pre-salt.
That's because the project’ s oil profile lacks the hydrogen sulfide and CO2 found in pre-salt fields that require more intensive processing.
Sergipe-Alagoas does hold more natural gas, Rittershaussen said, which adds to the complexity of the development, and more discoveries by different operators in the basin could help with development synergies.
Murphy also plans to pursue exploration in Mexican waters again, where it plans to drill the Tulum-1 wildcat this year, its first exploration push in the country since the pandemic.
Jenkins called the objective “ very similar to the Lower and Middle Miocene targets we’ ve been very successful at drilling and producing in the ( US) Gulf of Mexico for decades. ”
The Block 5 prospect is near other successful wells recently drilled by Eni, Repsol, Talos and others.
Murphy sees a resource potential of 500 million to as much as 2 billion barrels of oil across the block.
Murphy operates the block with a 40% stake, with Petronas and Wintershall Dea on 30% each.
Murphy drilled the Cholula discovery in 2019, an early and closely watched wildcat after companies snapped up blocks in bid rounds following the opening of the sector to public operators. However, follow-up drilling has since been delayed due to the Covid-19 pandemic. | general |
Asia: Covid, High Prices Limit China’ s Oil Demand | China’ s oil demand growth, already expected to slow down this year from its 2021 rebound, could be even slower than expected this quarter on surging prices at the pump, limited travel and possibly even flat economic growth as the country is crippled with its worst Covid-19 outbreaks in two years. Prices at the pump have jumped to 10-year highs in line with surging crude oil prices, which could prompt drivers to reduce their mileage. While the government in Japan has introduced gasoline subsidies to help customers, China has done nothing of the sort so far, nor reduced consumption taxes. | general |
Europe's Educational Robot Market is Expected to Grow at a CAGR of over 20.7% During 2021-2028 - ResearchAndMarkets.com | DUBLIN -- ( BUSINESS WIRE) -- The `` Europe Educational Robot Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Type ( Humanoid and Non-Humanoid) and Application ( Primary Education, Secondary Education, Higher Education, and Others) '' report has been added to ResearchAndMarkets.com's offering.
Higher Education Segment to Dominate Europe Educational Robot Market during 2020-2028.
According to a new market research study on `` Europe Educational Robot Market to 2028 - COVID-19 Impact and Regional Analysis and Forecast by Type and Application, '' is expected to reach US $ 927.73 million by 2028 from US $ 248.12 million in 2021. The market is estimated to grow at a CAGR of 20.7% from 2021 to 2028. The report provides trends prevailing in the Europe educational robot market along with the drivers and restraints pertaining to the market growth. Use of robots for autism is the major factor driving the growth of the Europe educational robot market. However, the huge capital required for research & development of robots hinder the growth of the Europe educational robot market.
Europe is one of the key regions for the growth of the educational robot market with the presence of many developed countries such as Germany, UK, France, Italy, Norway, and Sweden, where education spending is quite high in comparison to other regions coupled with high investments in robotic startups. Also, the high adoption of advanced technology solutions in various industries makes this region an ideal market for the growth of educational robot market. All these countries are characterized by the presence of large number of companies, especially in the education technology sector. Presently, Russia, UK, Spain, Italy, Germany, Turkey, and France are some of the major countries that are affected in a negative manner due to COVID-19 outbreak. Due to COVID-19 outbreak, the governments in various European countries have imposed lockdowns/movement restrictions and closed the educational institutions to contain the outbreak. This is expected to negatively impact the demand for educational robots from these institutions. Moreover, the rapid spread of the covid-19 infection has also disrupted the supply chain of the market thereby negatively impacting the growth of the market.
The market for educational robot market is segmented into type, application, and country. Based on type, the educational robot market is segmented into humanoid and non-humanoid. In 2020, the non-humanoid segment held the largest share Europe educational robot market. Based on application the educational robot market is categorized into primary education and secondary education, higher education and others In 2020, the higher education segment held the largest share Europe educational robot market. Based on the country the educational robot market is categorized into Germany, France, Italy, UK, Russia, Rest of Europe.
Aisoy Robotics; Lego System A/S; PAL Robotics; Sanbot Innovation Technology. Ltd; SoftBank Robotics Group Corp. are among the leading companies in the Europe educational robot market. The companies are focused on adopting organic growth strategies such as product launches and expansions to sustain their position in the dynamic market. For instance, in 2016 Aisoy Robotics announced its joint venture with UMH Researchers to further expand its competencies of their robot-assistant for treating children suffering from autism spectrum disorder ( ASD).
Key Topics Covered:
1. Introduction
1.1 Scope of the Study
1.2 Research Report Guidance
1.3 Market Segmentation
2. Key Takeaways
3. Research Methodology
3.1 Coverage
3.2 Secondary Research
3.3 Primary Research
4. Europe Educational Robot Market Landscape
4.1 Market Overview
4.2 PEST Analysis
4.2.1 Europe - PEST Analysis
4.3 Ecosystem Analysis
4.4 Expert Opinion
5. Europe Educational Robot Market - Key Market Dynamics
5.1 Key Market Drivers
5.1.1 Growing Focus Towards STEM Education
5.1.2 Use of Robots for Autism
5.2 Key Market Restraints
5.2.1 Huge Capital Required for Research & Development of Robots
5.3 Key Market Opportunities
5.3.1 Rising Demand for Robots for Learning Language
5.4 Future Trends
5.4.1 Combination of Artificial Intelligence
5.5 Impact Analysis of Drivers and Restraints
6. Educational Robot Market - Europe Market Analysis
6.1 Europe Educational Robot Market Forecast And Analysis
7. Europe Educational Robot Market - By Type
7.1 Overview
7.2 Europe Educational Robot Market Breakdown, By Type, 2020 & 2028
7.3 Humanoid
7.4 Non-Humanoid
8. Europe Educational Robot Market - By Application
8.1 Overview
8.2 Europe Educational Robot Market Breakdown, By Application, 2020 & 2028
8.3 Primary Education
8.4 Secondary Education
8.5 Higher Education
8.6 Others
9. Europe Educational Robot Market - Country Analysis
9.1 Overview
9.1.1 Europe Educational Robot Market Revenue And Forecast to 2028 ( US $ Mn)
9.1.2 Europe Educational Robot Market Breakdown, By Country
10. Europe Educational Robot Market - COVID-19 Impact Analysis
10.1 Overview
10.2 Europe
11. Educational Robot Market - Industry Landscape
11.1 Overview
11.2 Market Initiative
11.3 New Product Development
11.4 Merger and Acquisition | general |
U.K.’ s Lockdown Anniversary Marked by Another Virus Surge | The information you requested is not available at this time, please check back again soon.
A sign for the Covid-19 testing centre at London Luton Airport in Luton, U.K., on Wednesday, Aug. 4, 2021. The French government redoubled its efforts to get the U.K. to reverse Covid-19 restrictions on visitors from France, ahead of a British reassessment of those rules later this week., Bloomberg
( Bloomberg) -- Two years ago, Prime Minister Boris Johnson locked down the U.K., instructing people to stay at home and imposing sweeping restrictions in a desperate effort to slow the surging coronavirus.
Today, lockdowns are history. But Covid-19 remains.
In recent weeks, cases have risen anew, driven by the highly infectious omicron BA.2 subvariant. Over the past two weeks, daily cases have averaged more than 75,500 -- far above levels during the first wave in 2020, when testing was far less widespread.
The introduction of the first lockdown in 2020 was a major reversal for Johnson. He’ d been reluctant to implement such strict measures, and he was heavily criticized for delaying action.
The latest rapid spread of infections may also be linked to changes in behavior. Johnson announced the end of virtually all Covid-related restrictions in January after a series of start-stop moves as pandemic waves came and went over the past two years.
More people have returned to offices, are traveling again, and surveys show that the social distancing measures that came to define life during the pandemic are fast being discarded.
One major U.K. success story has been its vaccination rollout. Almost 86% of the country has had two doses, and 67% have got a booster shot. That’ s helped to keep hospitalizations and deaths lower relative to earlier coronavirus waves.
But even with that huge effort to rapidly develop vaccines and get them into people, deaths have surpassed 160,000.
And the emergence of new variants continues to drive fresh surges in infections, as it has in multiple countries around the world.
There’ s hope that Covid is moving toward a less dangerous phase, with omicron causing less severe illness, and vaccines and new therapies bolstering the body’ s defenses against the disease. Still, in addition to variants, scientists worry about long Covid and the measures in place to respond to future flare-ups.
World Health Organization officials and some scientists have expressed concerns over the pace at which restrictions were lifted, but politicians were under pressure from a public eager to move on from two years of limitations on movement and socializing.
The U.K. has also moved to reduce the availability of costly Covid tests.
“ I understand that the U.K. government is keen to stop spending on expensive testing infrastructure, and people have had enough of isolation requirements, ” said Simon Clarke, associate professor in Cellular Microbiology at the University of Reading. “ But the government must be careful not to dismantle all the systems which have allowed U.K. planners to stay ahead of the omicron wave through a successful vaccination drive. ” | general |
Prophix Software Shares New Survey Data: Senior Finance Leaders Say Technology and Automation Essential to Navigating Business Impact of Shifting Post-Pandemic Macroeconomic Trends | Prophix Software, a global leader in mid-market Corporate Performance Management ( CPM) software, shared findings from its new “ State of the Finance Function ” survey completed in collaboration with CFO Dive. The survey revealed as much as 82% of finance executives are planning substantial upgrades to their automated financial planning and analysis ( FP & A) processes in 2022, partly in response to challenges faced during the pandemic, but also to support organizational performance and better respond to rapidly shifting macroeconomic trends.
The data also showed, however, that CFOs have significant concerns about their ability to attract and retain the skilled talent needed to accurately interpret the financial data and analytics these technology tools uncover.
“ The finance team, and CFOs in particular, have been under extreme pressure since the onset of the pandemic to lead their businesses through enormous uncertainty, ” said Alok Ajmera, CEO of Prophix. “ Our survey shows many finance executives were able to quickly migrate their automated FP & A technology to the cloud during COVID-19 to address remote work. This underscores the need for digital transformation to enable financial professionals to be better equipped for whatever comes their way. But just as organizations are moving in the right direction with these technology advancements, our findings highlighted there is a shortage of employees proficient in these new technologies, particularly regarding the ability to accurately interpret data and analytics, which is a major concern for CFOs. ”
Prophix’ s survey queried more than 200 North American financial executives across more than 20 different industries to assess the top challenges they faced over the past two years and gauge their priorities for the year ahead.
“ Although finance leaders will continue to be challenged by market shifts, talent acquisition, and other economic factors in the coming 12 months, one of the most encouraging conclusions from our survey was the fact that finance leaders are finally in a position to commit to cloud-based CPM software for more accurate, real-time data insights and improved forecasting – all of which address their struggles over the past two years to more nimbly forecast, plan strategically, and manage risk, ” Ajmera added. “ Thoroughly embracing digital transformation will help prepare organizations for the new finance imperative – to move at the speed of change. ” | tech |
NatWest to hold first climate policy vote | Shareholders will be asked to back the lender's climate strategy and its intention to publish a transition plan to align with Paris Agreement climate goals, the state-backed bank said.
Rival Barclays on Tuesday published updated climate targets - including a phase-out from thermal coal financing - after pressure from activists.
NatWest's CEO Alison Rose made limiting the bank's impact on the climate a focus of her strategy unveiled in 2020.
The lender said last month it cut lending to oil and gas clients by more than a fifth last year, as part of plans to decarbonise its loan book.
It also aims to halve the climate impact of its financing activity by 2030 and to reach net zero across its operations, financed emissions and assets under management by 2050.
The lender on Wednesday also proposed resolutions that would allow it to buy back 10% of its shares from the market, and 4.99% of directed buybacks from the government - which still owns around 51% of the bank since its 2008 financial crisis bailout.
The bank will hold an in-person investor meeting for the first time since the COVID-19 pandemic in Edinburgh on April 28.
( Reporting by Iain Withers, Editing by Lawrence White and Barbara Lewis) | business |
Doomscrolling: Reveals Wakefit.co Great Indian Sleep Scorecard 2022 | On World Sleep Day, Wakefit.co, one of India’ s largest D2C sleep and home solutions providers released the 5th edition of its Great Indian Sleep Scorecard ( GISS) 2022. The key findings indicate that a whopping 59% of India’ s population goes to sleep post 11 pm. This is a worrying sign, as experts believe that the ideal bedtime for adults is between 10 pm to 11 pm. The use of electronic devices at night and stressful work culture have also impacted sleep patterns. The report indicates that these trends vary across different genders and age groups. To combat these deteriorating sleep habits, people seemed to rely on aspects such as a dedicated sleeping space and a good mattress.
As the largest sleep study with over 2 Lakh responses garnered across 5 years and 30,000+ responses this year, the GISS study highlights key observations in India’ s sleep patterns. The report also shares stark differences in sleep patterns of Indians pre and post-pandemic. The findings have been elucidated below.
59% of India goes to bed past the ideal bedtime of 11 pm, and social media browsing is the major factor keeping the late-night owls up, with 36% of respondents blaming digital devices for their sleeplessness. An alarming 88% of people use their phone just before bedtime and while this number has come down from last year ( 92%), it is still a gigantic indicator of addiction to digital devices.
According to the report, people have become conscious of their sleep space and are taking steps to spruce it up. They have started adapting to some aspects of a new lifestyle caused by the Covid-19 pandemic. The GISS 2022 report shows that around 74% of people claimed to have a dedicated sleep space in their homes. This number was significantly higher among people below 18 years of age with 80% of people sharing this habit. Moreover, 65% of the respondents make their bed immediately after waking up, indicating a closer affinity to their bed spaces.
It is a proven fact that people simply sleep better when their bedrooms are optimized for light, noise levels, temperature, and comfort. The report indicated that 50% of 18 to 24-year-olds claimed that their bedroom environment has been affecting their sleep health, while 40% of the same group did not have a dedicated sleep space for themselves. However, the senior citizen group seemed to care the least about dedicated sleep spaces with only 18% of them claiming that their sleep is impacted by their bedroom environment. Despite a dedicated sleeping space, 80% of people below 18 years of age did not feel refreshed after waking up.
According to the data, one in four Indians think they have insomnia. Moreover, there has been an increase in late-night social media browsing which has increased by 57% this year as compared to pre-pandemic years. The fear of insomnia seems to be higher in women at 31% as compared to men at 23%. About 38% of women and 31% of men feel browsing social media keeps them awake till late at night. Additionally, 50% of people below 18 years of age feel they have insomnia. Out of this group, 44% believe that a better mattress would help improve their sleep.
The hybrid working model has made a positive impact on individuals. The percentage of people feeling sleepy during work hours has decreased from 83% in 2020 ( pre-pandemic period) to 48% in 2022. The hybrid working model seems to have made a positive impact on individuals due to its flexibility to take naps at regular intervals. People seem to have thrived in this kind of work environment, balancing office and home. The report shows a marginal decrease of 5% in people staying up late due to work since last year. Although marginal, there seems to be a positive impact of the hybrid workplace on late night workaholics.
People across different cities have cited varied reasons for sleeping late at night. Kolkata has unseated Mumbai in terms of burning the midnight oil as compared to last year with over 40% of the city going to bed well after midnight. About 40% of the Hyderabad population said their work required them to stay up late, followed by Gurugram at 36%. Electronic devices and social media also contribute to late sleeping patterns. About 39% Mumbai population is up late, browsing social media and 29% of Gurugram stays awake because of late-night binge-watching. In contrast, 42% of the Bangalore population and 43% of Delhites emphasized reducing the usage of digital devices before sleep.
Commenting on the report, Chaitanya Ramalingegowda, Co-founder and Director, Wakefit.co, said, “ At Wakefit.co, we have been analyzing the sleep patterns of people from across the country to understand how India has been sleeping over the last five years. Our findings have not only helped gain better insights into the science of sleep but have also allowed us to educate people about the importance of sleep.
He added, “ In 2022, we observed that over 59% of people went to bed past the ideal bed time of 11 pm. As a sleep and home solutions provider, our goal is to encourage more and more people in the country to focus on sleep and the advantages of maintaining a consistent sleep cycle. We believe that the findings in the study will resonate with people from across the country. It will also help them understand what could be impacting their sleep, and inspire them to take appropriate steps towards better sleep health. ”
The Great Indian Sleep Scorecard is an ongoing survey and the 2022 edition received 30000+ responses, recorded from March 2021 to February 2022. It covers respondents in all Indian cities, across age groups and various demographics. The survey has collected over 2 Lakh responses to date since the last 5 years. | tech |
FTSE to Open Higher as Traders Weigh Inflation Data, Focus on Budget | FTSE 100 to Open Higher as Traders Weigh UK Inflation Data, Focus on UK Budget
The FTSE 100 is expected to open higher as traders weigh U.K. inflation data and look ahead to the U.K. government's fiscal spending plans. Spreadbetting firm IG expects London's index of blue-chip stocks to rise 33 points at the start of trading. The annual rate of U.K. inflation accelerated to 6.2% in February from 5.5% in January, above the 6.0% expected by economists in a WSJ survey. `` With inflation soaring to 6.2% in February, the Chancellor [ of the Exchequer Rishi Sunak ] is now under greater pressure to respond to the cost of living crisis when he delivers his Spring Statement later today, '' Abrdn says. Sunak is expected to unveil the spending plans at 1230 GMT.
Ultra Electronics 2021 Revenue, Pretax Profit Fell on Stronger Pound, One-Off Loss
Ultra Electronics Holdings PLC said Wednesday that revenue and pretax profit fell in 2021 due to a stronger pound against the dollar and a one-off loss on the disposal of two small loss-making noncore businesses.
-- -
Saga Says FY 2022 Pretax Loss Narrowed Despite Covid-19 Backdrop
Saga PLC reported on Wednesday a significantly narrowed pretax loss and a material increase in revenue for fiscal 2022, and said it continued to apply its turnaround strategy amid a challenging Covid-19 backdrop.
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Petrofac 2021 Pretax Loss Widened on Drop in Revenue
Petrofac Ltd. said Wednesday that its pretax loss widened in 2021 on a fall in revenue.
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Dignity Swung to 2021 Pretax Profit; Says New Strategy Means Lower Short-Term Profits
Dignity PLC said Wednesday that it swung to 2021 pretax profit after booking lower costs, and that its new strategy will lead to lower profits in the short term.
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Halma Sees FY 2022 Profit in Line With Market Expectations, Strong Sterling Could Hurt Profit
Halma PLC said Wednesday that fiscal 2022 adjusted pretax profit is expected to be in line with market expectations due to increased demand across the group, but warned that a strong sterling could have a negative impact on its profit.
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RWS Holdings Expects FY 2022 Results in Lower End of Range of Expectations
RWS Holdings PLC said Wednesday that it expects fiscal 2022 results to be around the lower end of the range of current market expectations.
Rio Tinto May Need to Sweeten Offer for Turquoise Hill
Rio Tinto will likely need to increase its C $ 34.00/share cash offer to minority shareholders in Turquoise Hill to win them over, according to Macquarie, as it raises its target on Turquoise Hill by 45% to C $ 44.00/share. `` We believe a premium to valuation is justified given the quality of the Oyu Tolgoi project. '' Macquarie says Rio Tinto's offer implies a long-term copper price of US $ 3.00/pound; its price target implies a copper price closer to US $ 3.40/pound. `` At spot prices our valuation for TRQ rises to circa C $ 78.00, more than double Rio's offer price. ''
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas @ wsj.com
( END) Dow Jones Newswires
03-23-22 0359ET | business |
Equities creep to five-week highs, ignore bond selloff | Two-year U.S. Treasury yields are up 70 bps so far in March and set for their biggest monthly jump since 2004. But investors have been relatively sanguine about the implications of higher yields on stock market valuations, with many choosing to buy back in after a bruising few months for equity prices.
MSCI's broadest gauge of world stocks rose 0.2% to a Feb. 17 high, a level last seen days before Russia invaded Ukraine. An Asian gauge rose 0.7% to its highest since early March.
European stocks also gained, with a pan-European equity benchmark hitting a new 1-month high in early London trading before they fell back as traders took profits.
U.S. stock futures signalled some weakness on Wall Street when it opens.
`` It is almost as if the negative impacts of inflation, rising interest rates and the uncertainties of war are no longer of concern, '' said Stuart Cole, head macro economist at Equiti Capital, who added that investors were focusing on stocks that could withstand the high inflationary environment.
Technology shares, which have had an inverse correlation with higher interest rates in the past, were the biggest drivers of broader market gains, with a Hong Kong gauge of technology stocks rising to a three-week high.
In Asia, battered e-commerce giant Alibaba, which recently expanded a buyback programme, rose 6.7% and in Tokyo out-of-favour tech investment firm SoftBank Group rose 7.2% to its highest since Feb. 10.
The main U.S. tech index ended up 2% overnight, cutting its year-to-date losses to 10% from 20% earlier this month.
Some previously solidly bullish investors, however, are worried about the impact of rising interest rates on the outlook for stocks.
`` Although there is widespread criticism, it's too early to take the view that the Fed won't be able to negotiate the fine line of reducing inflation without derailing growth, '' said Mark Haefele, Chief Investment Officer, UBS Global Wealth Management.
`` Given a higher degree of uncertainty, rather than make a directional play on stocks moving higher, we prefer selected overweight and underweight positions, yielding an overall neutral allocation to equities. ''
BOND SELLOFF
The most eye-catching moves recently have been in the bond market, although there was some calm on Wednesday. Two-year U.S. yields dipped from a six-year high.
The sharp rise in short-dated yields has flattened the gap between two and 10-year U.S. yields to its lowest levels since the coronavirus pandemic hit global markets in March 2020. An inverted yield curve is widely seen as a predictor for future U.S. recessions.
The selloff in short-dated yields prompted fed fund futures to price in an aggressive 190 bps through the remainder of the year after a 25 bps rate hike last week. Futures were nearly pricing in the probability of a 50 bps hike in May.
The selloff in U.S. markets has reverberated elsewhere with German and British bond yields climbing this week, although they too fell back slightly on Wednesday.
British inflation data on Wednesday showed prices rising to a new 30-year high of 6.2% last month versus a year ago -- higher than economist expectations -- although yields were unmoved.
Currency market activity continued to be relatively subdued, confirming the lack of any clear directional trends.
Against the U.S. dollar, the Japanese yen was down by 1130 GMT but held below 121 yen after Bank of Japan Governor Haruhiko Kuroda said it was premature to debate the exit from ultra-loose monetary policy.
The euro dropped 0.5% to $ 1.0981 while sterling was nearly half a percent weaker against a broadly stronger dollar.
Commodity prices, sent soaring by anticipated supply disruptions from the war in Ukraine, rose again against a lack of tangible progress toward peace.
Oil rallied. Brent crude futures rose 2.45% to $ 118.31 a barrel and U.S. crude climbed 2.15% to $ 111.62. [ O/R ]
Grain prices, which have jumped since Russia invaded Ukraine in late February, remained supported by supply concerns, especially for delivery later in the year. [ GRA/ ]
( Reporting by Saikat Chatterjee and Tommy Wilkes; Additional reporting by Tom Westbrook in Singapore; Editing by Alison Williams and Chizu Nomiyama)
By Saikat Chatterjee and Tommy Wilkes | business |
Shanghai rebar, HRC futures rise after steel hub Tangshan enters lockdown | Construction material steel rebar and hot-rolled coils ( HRC), used in the manufacturing sector, were trading higher on Wednesday amid supply concerns after top steelmaking city Tangshan implemented a temporary lockdown.
The Tangshan government implemented a temporary lockdown on Tuesday to avoid further cases of COVID-19 as infections surged, the local government said in a statement.
`` Although consumption for steel products are relatively sluggish, but production is also falling, '' analysts with Huatai Futures wrote in a note.
The situation of tight raw materials inventories has not been reversed yet, which could further sustain steel prices, it added.
Most-traded steel rebar on the Shanghai Futures Exchange, for May delivery, jumped 1% to 4,983 yuan ( $ 154.21) a tonne when market closed.
Hot-rolled coils, used in cars and home appliances, inched up 0.4% to 5,189 yuan per tonne.
Stainless steel prices on the Shanghai bourse ended 2.8% higher to 20,415 yuan a tonne, after raw material nickel showed signs of normalising. They were up as much as 3.7% earlier during the session.
Steelmaking ingredients on the Dalian Commodity Exchange were mixed after falling more than 3% during night session, with benchmark iron ore edging up 0.4% to 823 yuan a tonne.
Spot prices of iron ore with 62% iron content for delivery to China < SH-CCN-IRNOR62 > dropped $ 3 to $ 147 a tonne on Tuesday, data from SteelHome consultancy showed.
`` Due to transportation disruptions, most steel mills face raw material shortages... and there's even possibility for production halt, '' said Huatai Futures, noting that iron ore demand will be dampened.
Dalian coking coal prices declined 1.6% to 2,940 yuan a tonne and coke futures slipped 0.7% to 3,545 yuan per tonne.
( $ 1 = 6.3743 Chinese yuan renminbi) ( Reporting by Min Zhang in Beijing and Enrico Dela Cruz in Manila; Editing by Sherry Jacob-Phillips) | business |
Japan's March factory activity up, Ukraine crisis weighs on outlook | Activity in the services sector, which has been battered by the pandemic, contracted for the third straight month, but the pace of decline slowed.
The au Jibun Bank Flash Japan Manufacturing Purchasing Managers ' Index ( PMI) rose to a seasonally adjusted 53.2 in March from a final 52.7 in the previous month. A reading below 50 indicates contraction from the previous month, above 50 expansion.
The survey showed output rebounded from a contraction in the previous month, while activity in new orders posted an expansion, albeit at its slowest rate in six months.
The conflict in Ukraine and soaring oil and raw material prices hurt momentum for the world's third-largest economy, even as it saw new coronavirus infections caused by the Omicron variant slow.
`` Firms across the Japanese private sector reported a further intensification of price pressures, '' said Usamah Bhatti, economist at IHS Markit, which compiles the survey.
`` Input prices rose at the fastest pace since August 2008 with businesses attributing the rise to surging raw material prices, notably energy, oil and semiconductors amid deteriorating supplier performance. ''
The au Jibun Bank Flash Services PMI Index rose to a seasonally adjusted 48.7 from February's final 44.2 to mark the third straight month of contraction.
The au Jibun Bank Flash Japan Composite PMI, which is calculated by using both manufacturing and services, also shrank for a third straight month, rising to 49.3 from last month's final of 45.8.
Japanese firms reported softer optimism for the 12 months ahead in March, Bhatti said.
`` Positive sentiment was the weakest for 14 months amid concerns regarding the economic impact of the Russia-Ukraine conflict. ''
( Reporting by Daniel Leussink; Editing by Sam Holmes) | business |
China stainless steel futures hit over 2-week high as nickel jumps | - Chinese stainless steel futures soared as much as 10% on Thursday to their highest since March 9, after raw material nickel's prices hit upper limits on both the London Metal Exchange ( LME) and the Shanghai bourse.
Benchmark nickel on the LME climbed for the first time since trade resumed last week and gained 15% on Wednesday. Shanghai nickel futures opened up 17% to hit trading upper limit on Thursday.
`` Stainless steel futures are again led by LME nickel prices and detached from the fundamentals in the short term, '' Huatai Futures wrote in a note, adding that consumption of the metal was still dragged by the COVID-19 situation.
The most-active stainless steel contract on the Shanghai Futures Exchange, for April delivery, jumped 6.3% to 21,600 yuan ( $ 3,389.62) a tonne as of 0252 GMT. They rose to 22,345 yuan per tonne earlier during the session.
Other steel products on the Shanghai exchange were steady, with construction used rebar, for May delivery, inching 0.6% higher to 4,955 yuan a tonne. Hot rolled coils rose 0.3% to 5,164 yuan per tonne.
Top steelmaking city Tangshan, also a major production hub for hot rolled steel products, is still under lockdown as local government struggles to contain infections after reporting dozens of locally transmitted COVID-19 cases.
Benchmark iron ore futures on the Dalian Commodity Exchange rose 1.3% to 818 yuan a tonne. Spot prices of 62% iron ore was unchanged at $ 147 per tonne on Wednesday, data from SteelHome consultancy showed. < SH-CCN-IRNOR62 >
Coking coal futures increased 1.6% to 2,968 yuan a tonne and coke prices added 1.7% to 3,569 yuan per tonne. ( $ 1 = 6.3724 Chinese yuan) ( Reporting by Min Zhang in Beijing and Enrico Dela Cruz in Manila; editing by Uttaresh.V) | business |
Hong Kong hopes to'resolve ' COVID flight-ban rule as cases ease | - Hong Kong is looking to resolve a problem over a ban on airlines which bring in COVID-positive passengers as it eases travel curbs that have sealed off the city for two years, its leader said on Wednesday.
The government said this week a ban on flights from nine countries - Canada, India, Pakistan, Nepal, Britain, the United States, France, Australia and the Philippines - would be lifted on April 1 but it was not clear if airlines would face a two-week ban if they bring in infected people, as is currently the case.
Many residents have not been able to return to the Chinese-ruled city because of a shortage of mandatory quarantine hotels and city leader Carrie Lam suggested in a media briefing more space would be provided.
But an equally pressing issue for many has been the rule that bans an airline from flying to the city for 14 days if it carries several people who test positive for the coronavirus upon arrival.
The city's flagship carrier, Cathay Pacific, said on Tuesday it would only operate one flight every two weeks from popular destinations including the United States and Britain because of the rule, compounding a feeling of isolation that many frustrated residents feel.
Lam, asked what the government might do about the rule and if there was any chance it could be scrapped, said: `` I can only say that we know the problem, and we are looking on how we could resolve this without compromising our border control measures. ''
Health authorities reported 12,240 new COVID-19 cases on Wednesday, down from 14,152 the previous day, and 205 new deaths.
Hong Kong's `` dynamic zero '' coronavirus strategy, which aims to stamp out outbreaks as they occur with contact tracing, testing and isolation, largely protected it from the virus until the beginning of this year.
But the Omicron variant has breached the defenses, surging through the city of 7.4 million people over recent weeks, killing large numbers of elderly who declined to get vaccinated, many because of fear of side-effects and the belief Hong Kong had dodged the worst.
Since the pandemic began in 2020, Hong Kong has recorded more than 1 million infections and more than 6,300 deaths - most of them in the past month.
Densely populated Hong Kong has registered the most deaths per million people globally in recent weeks. ( Reporting by Farah Master, Donny Kwok, Twinnie Siu, Jessie Pang and Anne Marie Roantree; Editing by Nick Macfie) | business |
BOJ policymaker warns of risks to Japan's recovery from Ukraine crisis | * BOJ must focus on downside risks to economy - Kataoka
* Jan BOJ minutes show growing focus on inflationary pressure
* Wage growth key to sustained rise in inflation - minutes
* March factory activity sped up in March - survey
TOKYO, March 24 ( Reuters) - Russia's invasion of Ukraine will weigh on global growth and heighten risks to Japan's economic recovery, a central bank policymaker said on Thursday, highlighting the need to keep monetary policy ultra-loose even as inflation perks up.
While consumer inflation may briefly exceed 1.5%, it likely won't gain momentum to sustainably head toward the Bank of Japan's 2% target, said Goushi Kataoka, who has been a sole proponent to ramp up monetary stimulus.
`` Disruptions in Russia-related trade will weigh not just on Russia's economy but global growth by prolonging worldwide supply constraints, '' Kataoka told business leaders in a speech.
`` For the time being, we must pay attention to downside risks to Japan's economy... as well as upside risks to prices. ''
While supporting the economy remains a priority over the fight against inflation, BOJ policymakers were paying more attention to rising inflationary pressures even before Russia's invasion of Ukraine on Feb. 24.
At their January gathering, bank board members agreed that consumer inflation may overshoot their expectations if companies pass on rising costs quicker than forecast, minutes of the meeting showed on Thursday.
`` Many companies are feeling the limit of sticking to a business model that was effective during deflation. As they change their price-setting behaviour, inflationary pressure may heighten, '' one member was quoted as saying.
`` We're seeing stock prices rise for companies that hike prices, '' another member said. `` Price hikes may broaden, and heighten medium- to long-term inflation expectations. ''
Many members said they were closely watching wages, which make up a big component of service costs and determine the extent to which households can absorb price hikes, the minutes showed.
Japan has lagged other advanced nations in recovering from the pandemic slump, with economic growth seen stalling in the current quarter due to weak consumption.
In a glimmer of hope, a survey released on Thursday showed Japan's manufacturing activity sped up in March as falling COVID-19 cases helped lift orders.
But soaring fuel and grain costs are adding pains to resource-poor Japan by pushing up import costs, casting doubt on the BOJ's view the world's third-largest economy is headed for a moderate recovery.
At last week's meeting, the BOJ downgraded its economic assessment and warned of heightening risks from the Ukraine crisis in a sign it was in no rush to dial back stimulus.
Japan's core consumer prices rose 0.6% in February from a year earlier, marking the fastest pace in two years but still well below the BOJ's 2% target, as weak household spending discouraged firms from passing on soaring raw material costs.
While many analysts expect rising fuel costs to push up core consumer inflation near 2% in coming months, there is uncertainty on whether the increase will be sustained as slow wage growth weighs on consumption.
The BOJ has repeatedly stressed its resolve to maintain its massive stimulus for the time being, even as other major central banks eye exits from crisis-mode policies. ( Reporting by Leika Kihara; Editing by Jane Wardell and Sam Holmes) | business |
Azerbaijan confirms 38 more COVID-19 cases, 101 recoveries | Azerbaijan has detected 38 new COVID-19 cases, 101 patients have recovered, and four patients have died, Trend reports citing the Operational Headquarters under Azerbaijani Cabinet of Ministers.
Up until now, 791,583 people have been infected with coronavirus in the country, 781,303 of them have recovered, and 9,670 people have died. Currently, 610 people are under treatment in special hospitals.
To reveal the COVID-19 cases, 2,695 tests have been carried out in Azerbaijan over the past day, and a total of 6,673,982 tests have been conducted so far.
Some 6,999 people were vaccinated against COVID-19 in Azerbaijan on March 23.
The first dose of the vaccine was injected into 333 citizens, the second one to 781 citizens, the third dose and the next doses to 5,542 citizens. Some 343 citizen was vaccinated with a booster dose after a positive test result for COVID-19.
Totally, up until now, 13,375,580 vaccine doses were administered, 5,319,726 citizens received the first dose of the vaccine, 4,815,285 people - the second dose, 3,015,906 people - the third dose and the next doses.
Some 224,663 citizens were vaccinated with a booster dose after a positive test result for COVID-19. | general |
ClearDATA Announces Health Tech Acceleration Program, Speeding Time to Market and Revenue for Healthcare Information Technology Organizations | ClearDATA, healthcare’ s largest managed cloud and security provider, announced the launch of the HealthTech Acceleration Program, a new suite of incentives for Healthcare Information Technology ( HCIT) organizations designed to speed their time to market, boost ROI—faster—and decrease barriers to scale. Providing participants with financial and services incentives and marketing support, as well as programmatic support in the form of HITRUST inheritance; the HealthTech Acceleration Program is hastening growth in the booming HCIT market and improving outcomes for an exponential number of patients.
As value-based care transforms the healthcare landscape—putting greater focus than ever before on quality care, patient satisfaction and lowered costs—HCIT products and services have become a vital tool for delivering the most effective medical care. However, health care specific regulatory and security concerns associated with Public Cloud adoption can slow innovation. That’ s why ClearDATA launched the HealthTech Acceleration Program, to increase market penetration of HCIT solutions and help deliver life-changing, life-saving health technologies to patients across the globe.
“ HCIT is rapidly modernizing healthcare’ s delivery, which is a central tenet of our mission at ClearDATA—to make healthcare work better, every single day, ” said Darin Brannan, CEO and co-founder of ClearDATA. “ Our partnership with the HCIT industry enables us to facilitate their speed to market, so they can get impactful technologies like remote symptom monitoring, telehealth, at-home testing for COVID and other conditions, on-the-scene testing for traumatic brain injuries, and more into the hands of providers—helping them improve outcomes and save lives. ”
In today’ s rapidly changing healthcare environment, a lack of speed spells failure for HCIT organizations. On the other hand, accelerated time to market means dramatically improved ROI and revenues. That’ s exactly the goal of the Health Tech Fast Start program. Features and benefits of the program include:
Cleerly Health Chief Technology Officer Nick Nieslanik has seen first-hand the value of engaging ClearDATA to design and implement his health tech security and compliance programs. “ I’ ve been partnering with ClearDATA for years and across multiple organizations, ” he said. “ Their compliance and security hardening frameworks have been invaluable in our ability to quickly meet Healthcare IT security demands of market segments. Knowing that ClearDATA is HITRUST-certified with inheritance capability also accelerated my team’ s ability to certify and also helped us to message to clients and patients that their data was safe and secure. ” | tech |
Indian president confers Padma Awards to 54 distinguished personalities | India's first Chief of Defence Staff General Bipin Rawat, who died in a chopper crash last December, late Radheshyam Khemka, former chairman of Gita Press that publishes Hindu religious books, and Congress leader Ghulam Nabi Azad were among 54 prominent personalities who were conferred Padma awards by President Ram Nath Kovind on Monday.
While General Rawat and Radheshyam Khemka were given Padma Vibhushan, the country's second-highest civilian award, posthumously, Mr Azad, Tata Sons chairman N Chandrasekharan, former CAG Rajiv Mehrishi, founder of Serum Institute of India that made COVID-19 vaccine Covishield Cyrus Poonawalla were among the eight honoured with Padma Bhushan, the country's third-highest civilian award, at a civil investiture ceremony held at Rashtrapati Bhavan.
This year, no names were announced for 'Bharat Ratna ', India's highest civilian award, which was last awarded in 2019 to former president Pranab Mukherjee, social reformer Nanaji Deshmukh and noted singer Bhupen Hazarika.
The award for General Rawat was received by his daughters while a close family member received the award for Khemka.
Many of those who received the Padma awards were `` unsung heroes '', including 125-year-old yoga practitioner Swami Sivananda. | general |
India's maize exports up 22% YoY, hit all-time high of $ 816.31 mn in FY22 | The export of maize has touched USD 816.31 million in the first ten months of the current fiscal 2021-22 ( April-January), already exceeding the USD 634.85 million achieved during the last financial year, Union Ministry of Commerce and Industry informed on Sunday, Trend reports citing Business Standart.
`` From an exports realization of USD 142.8 million in 2019-20, the export of maize increased nearly six-fold, taking the total value of shipment to USD 1593.73 million in the last three years despite logistical challenges posed by the COVID-19 pandemic outbreak, '' the Ministry said in a press release.
Neighbouring countries like Bangladesh and Nepal are the major importers of maize from India.
As per the Ministry, Bangladesh has imported maize worth USD 345.5 million in the current fiscal ( April-January), while Nepal has imported maize worth USD 132.16 million during this period.
`` Vietnam has emerged as a major destination for the export of maize. India exported maize worth USD 244.24 million to Vietnam in the first ten months of the current fiscal ( April-January 2021-22). Other prominent importing countries are Malaysia, Myanmar, Sri Lanka, Bhutan, Taiwan, Oman, etc, '' the release read.
Maize, which is globally known as the queen of cereals, has emerged as one of the significant foreign exchange-earners under the commodities covered under the Agricultural and Processed Food Products Export Development Authority ( APEDA) ambit.
`` The significant rise in agri-exports is seen as a testimony of the government's commitment to increase farmers ' income through creating requisite infrastructure and improving value chains on boosting exports of agricultural and processed food products, '' Dr M Angamuthu, Chairman, APEDA said.
Maize is the third most important cereal crop in India after rice and wheat. The cereal crop is primarily cultivated in the states of Karnataka, Madhya Pradesh, Kerala, Bihar, Tamil Nadu, Telangana, Maharashtra and Andhra Pradesh.
Having the highest genetic yield potential among the cereals, maize is one of the most versatile emerging crops having wider adaptability under varied agro-climatic conditions.
In India, maize is grown throughout the year and it is predominantly a Kharif crop with 85 per cent of the area under cultivation in the season.
In addition to staple food for human beings and quality feed for animals, maize serves as a basic raw material/ingredient to many industrial products that include starch, oil, protein, alcoholic beverages, food sweeteners, pharmaceutical, cosmetic, film, textile, gum, package and paper industries etc.
`` The rise in export of agricultural and processed food products has been largely due to the various initiatives taken by APEDA such as organizing B2B exhibitions in different countries, exploring new potential markets through product-specific and general marketing campaigns by the active involvement of Indian Embassies, '' the Ministry said. | general |
Biden approval rating drops to new low of 40%, Reuters/Ipsos poll finds | U.S. President Joe Biden's public approval rating fell to a new low of 40% this week, a clear warning sign for his Democratic Party as it seeks to retain control of Congress in the Nov. 8 election, according to a Reuters/Ipsos opinion poll, Trend reports citing Reuters.
The national poll, conducted on March 21 and 22, found that 54% of Americans disapprove of his job performance as the country struggles with high inflation and Russia's invasion of Ukraine has pushed geopolitical concerns to the fore.
Biden's approval rating, down three percentage points from the prior week, mirrors that which his Republican predecessor, Donald Trump, received at this point in his presidency, as both stood at 40% in mid-March in their second year in office.
Trump's approval rating sank as low as 33% in December 2017.
Poll respondents cited the economy as their top concern, followed by war and foreign conflicts.
Biden's popularity began dropping in mid-August as COVID-19 deaths began to rise and the U.S. military faced a chaotic withdrawal from Afghanistan.
Biden has sought to lower the political temperature following Trump's divisive presidency.
But Americans remain polarized under his presidency. While 77% of self-identified Democrats said they approved of his job performance, only 10% of self-identified Republicans and 27% of independents gave him a positive rating.
Democrats hold razor-thin majorities in the House of Representatives and Senate. The loss of either could grind Biden's legislative agenda to a halt.
The Reuters/Ipsos poll is conducted online in English throughout the United States. The latest poll gathered responses from a total of 1,005 adults, including 432 Democrats and 366 Republicans. It has a credibility interval - a measure of precision - of 4 percentage points. | general |
EUROPEAN MIDDAY BRIEFING - Stocks Suffer Modest Losses; UK Budget Statement Eyed | MARKET WRAPS
Stocks:
European stocks edged into the red Wednesday, giving up earlier modest gains. London's FTSE 100 bucked the trend, however, with the blue chip index remaining just in positive territory, as investors digested the latest U.K. inflation data.
Ahead, U.K. Treasury chief Rishi Sunak unveils his latest fiscal spending plans when he presents the budget later Wednesday.
Stocks to Watch:
Adidas's strategic plan to focus on its premium and sportswear offerings looks well-thought-out, Jefferies said after the sporting-goods giant held a two-day innovation event this week.
Adidas is looking to boost its top-line through premiumization of its offering, with the benefits boosted by greater direct-to-consumer sales, Jefferies added. Adidas is also aiming to expand its sportswear offering, targeting younger consumers especially, and this looks to have started well with strong wholesale orders.
Further validation will come with strong second-half sell out, reinforcing Adidas's upbeat outlook for this year and beyond, Jefferies said. The bank kept a buy rating and a EUR250 target on the stock.
Economic Insight:
The U.K.'s annual inflation rate is expected to peak above 8% in April as higher food and gas prices combine with the increase in household utility bills, ING said. Inflation is then expected to fall to around 6% -6.5% in late-2022, but its path is difficult to predict given the current uncertainty and volatility in energy prices, ING added.
`` The situation later this year is looking less worrisome than it was a few weeks ago given the pullback in gas prices, '' ING said. The main unknown is how far the war in Ukraine, alongside the recent Covid-19 outbreaks in parts of Asia, amplify the bottlenecks on supply chains.
Pantheon Macroeconomics said February's U.K. inflation rate is at the top end of the range expected by the Bank of England, but it isn't high enough to warrant a very aggressive rate increase path.
The near-term outlook for inflation is clearly uncomfortable for the BOE, but the economic recovery is likely to slow sharply as households feel the pinch of the cost of living crisis, Pantheon said.
`` We expect the [ Monetary Policy ] Committee to pause raising bank rate, once it has increase it to 1.00% in May. Further rate hikes would increase the risk of a recession and the chances that inflation ultimately would significantly undershoot the 2% target in the medium term, '' Pantheon said.
U.S. Markets:
Stock futures fell and a selloff in government bonds stabilized, as investors digested the recent sharp swings that have dominated markets and awaited updates on the war in Ukraine.
A sharp rally in U.S. government bond yields slowed, with the yield on the 10-year Treasury note hovering around 2.375% in recent trading, unchanged from the day before. The last time the yield on the benchmark note traded around that level was May 2019.
In premarket trading in New York, shares of meme stocks -- which have largely slumped this year -- enjoyed a resurgence. Shares of GameStop climbed 11% after the company's chairman, Ryan Cohen, disclosed his firm bought 100,000 shares of the company's stock on Tuesday. Shares of AMC Entertainment Holdings, which tend to move in correlation with GameStop, climbed 6.5%.
Meanwhile, shares of Adobe slumped 3.1%. The software company reported higher profit and better-than-expected revenue growth Tuesday, but said it expects a hit to annual revenue from the war in Ukraine.
Forex:
The dollar is likely to get a boost from the market raising its expectations for U.S. interest rates, according to ING analysts. `` The futures market is fully pricing in 75 basis points of tightening in the next two meetings, which implies at least one 50bp increase. ''
That should offer the dollar a `` positive undercurrent, '' particularly against low-yielding currencies and European currencies exposed to the Ukraine war, the analysts said.
-- -
Expectations that the European Central Bank will raise interest rates by more than previously thought is capping the euro's depreciation against the dollar after the Fed signalled more aggressive rate rises, Monex Europe said.
Markets are now pricing in about three rate rises by the ECB within the next 12 months after the central bank accelerated the removal of stimulus at last Thursday's meeting despite uncertainty over the Ukraine crisis.
`` This has shielded the euro from further downside against the dollar in Monday's and Tuesday's session, and is likely to serve as a backstop for the euro in the months ahead in an environment where U.S. yields are rising. ''
-- -
Sterling edged lower versus the dollar but was little changed against the euro after data showed U.K. inflation accelerated by more than expected in February.
BRI Wealth Management said it seems inevitable the Bank of England will continue to raise interest rates to curb inflation. `` Raising rates at a time of high household bills and rising taxes could stifle the economic recovery by putting the consumer under too much pressure though. ''
Bank of America said interest rate rises may not necessarily support the pound. The BOE seemed to raise rates with a tinge of regret for the second consecutive meeting last Thursday, BofA analysts said.
`` With the Monetary Policy Committee sounding almost apologetic about hiking once again, this serves to underscore to us the position of weakness the BOE finds itself: hiking due to supply shocks [ one of which -- Brexit -- it still does not acknowledge ] and against the backdrop of a generational squeeze in personal incomes. ''
Raising rates into a slowing economy and squeeze on personal incomes will inevitably take its toll on sterling over the medium term, the BofA analysts said.
Bonds:
Rising German Bund yields `` seem on a one-way street, '' said Commerzbank's rates strategists, adding that multiyear resistance levels are proving `` soft as butter '' as central banks talk up their inflation resolve.
10-year Bund yields rose above 0.50% on Tuesday for the first time since October 2018. Commerzbank's strategists see the scope for further rises, but recommend selling Bunds into recoveries during the day.
-- -
DZ Bank analysts are betting on Spanish and Portuguese government bonds in the eurozone periphery, and they also like Irish, French and Belgian government bonds in the semicore segment. `` Compared with Italy, Spain and Portugal offer much lower political risks and, to a degree, also the chance to improve their rating profiles. ''
The trading link between Ireland, France and Belgium on the one hand and Russia on the other are less close than for other countries, DZ's analysts said. These countries also benefit from the fact that they are geographically not as close to the current conflict and they also offer a higher carry within the semicore segment, the analysts said.
Other News:
The German Finance Agency's review of the issuance schedule for the second quarter is `` unlikely to feature major surprises, '' said Commerzbank's rates strategists.
`` We don't expect major adjustments: the government's indications about additional funding requirements from the supplementary Ukraine-related expenditures are still very vague and will most likely be incorporated at a later stage. ''
In the preliminary funding plans published in December, the German Finance Agency penciled in EUR52.5 billion in capital market issuance and EUR54 billion in treasury bills, with these figures excluding inflation-linked bond sales and syndications.
Read: Russian Steelmaker Evraz Says Bond Payment Moves Step Closer to Investors
Commodities:
Suggestions that the EU could ban Russian oil imports have supported crude prices, though news that Germany and Hungary still oppose a ban has softened the rise. Prices have also gained from reports that Russian and Kazakhstan oil exports via the Caspian Pipeline Consortium from the Black Sea may fall by 1 million barrels a day due to storm-damaged berths, according to SPI Asset Management.
Read: Jamie Dimon tells Biden that U.S., Europe Need 'Marshall Plan ' for Energy Independence
DOW JONES NEWSPLUS
EMEA HEADLINES
Biden, Allies Aim to Project United Front Against Russia at NATO Meeting
BRUSSELS-President Biden and European allies are gathering for meetings here Thursday to project a united front as they announce new measures to target Russian President Vladimir Putin's war in Ukraine and escalating attacks on civilians.
Mr. Biden, who is scheduled to land in Brussels Wednesday, plans to meet with leaders of the North Atlantic Treaty Organization, the European Union and the Group of Seven leading industrial countries to discuss deterrence efforts, humanitarian relief and the campaign of sanctions against Russia.
Ukraine's President Eyes Talks With China's Xi Jinping
Volodymyr Zelensky plans to hold talks with Chinese leader Xi Jinping, Ukrainian presidential spokesman Andriy Yermak said, as part of a whirlwind of virtual visits for Ukraine's president to rally support for his country in the face of Russia's nearly monthlong assault.
`` Kyiv is hopeful Beijing will play a more prominent role in bringing this war to an end, '' Mr. Yermak tweeted.
U.K. Inflation Rate Hit 6.2% in February, a 30-Year High
Inflation in the U.K. reached a new three-decade high in February, accelerating to a 6.2% annual rate, and is expected to rise further in the coming months on higher energy and other commodity prices.
This is the highest rate since March 1992 -- when prices rose at an annual pace of 7.1% -- and beats the 6.0% rate expected by economists polled by The Wall Street Journal. In January, consumer prices increased 5.5% on year, according to the data from the Office for National Statistics.
U.S., U.K. Strike Trade Deal to End Tariffs on British Steel and American Whiskey
WASHINGTON-The U.S. and U.K. struck a trade accord Tuesday that will remove U.S. tariffs on British steel and aluminum, while the U.K. will lift levies on American whiskey, motorcycles and tobacco.
( MORE TO FOLLOW) Dow Jones Newswires
03-23-22 0643ET | business |
Fortuna Reports Results for Fourth Quarter and Full Year 2021 | VANCOUVER, British Columbia, March 23, 2022 ( GLOBE NEWSWIRE) -- Fortuna Silver Mines Inc. ( NYSE: FSM) ( TSX: FVI) ( “ Fortuna ” or the “ Company ”) today reported its consolidated financial and operating results for the fourth quarter and full year 2021.
Fourth Quarter 2021 Highlights
Full Year 2021 Highlights
Jorge A. Ganoza, President and CEO, commented, “ Fortuna’ s record sales and adjusted EBITDA in the fourth quarter of approximately $ 199 million and $ 90 million respectively, reflect strong operating results across our four mines in Latin America and West Africa. Lindero’ s solid performance in the quarter is particularly worth highlighting as the mine delivered 36,072 ounces of gold, in line with expectations and 37% above its gold production for the third quarter. ” Mr. Ganoza added, “ With free cash flow generation from operations1 of $ 33 million in the quarter and the expansion of our corporate revolving credit facility to $ 200 million, we closed 2021 with a strong liquidity position of $ 187 million, $ 51 million over the third quarter considering $ 20 million in funding for the construction of the Séguéla Mine. ” Mr. Ganoza concluded, “ Throughout 2022, we expect to spend $ 110 million in Séguéla and $ 20 million in Brownfields exploration, which includes $ 7.4 million at San Jose and $ 7.2 million at Séguéla. ”
Notes:
Fourth Quarter 2021 and Full Year 2021 Consolidated Results
Fourth Quarter 2021 Results
Sales for the quarter were $ 198.9 million, a 92% increase from the $ 103.5 million reported in the same period in 2020. The increase was driven by the contribution from the Lindero and Yaramoko mines. Lindero recognized adjusted sales of $ 65.6 million from the sale of 36,389 ounces of gold. Yaramoko recognized adjusted sales of $ 52.2 million from the sale of 29,077 ounces of gold. The San Jose Mine recognized adjusted sales of $ 56.7 million, a 6% decrease from the $ 60.5 million reported in the same period in 2020. Lower sales at San Jose were driven by a 6% decrease in the volume of gold ounces sold. The Caylloma Mine recognized adjusted sales of $ 24.4 million, a 7% increase from the $ 22.7 million reported in the same period in 2020. The increased sales at Caylloma were driven by higher lead and zinc prices, partially offset by lower volumes of metal sold.
Operating income for the quarter was $ 38.9 million, a $ 10.7 million increase from the $ 28.2 million reported in the same period in 2020. The higher operating income was driven by the contribution of Lindero and Yaramoko, partially offset by lower operating income at San Jose and low-grade inventory write-downs in the current quarter of $ 5.3 million ( Yaramoko: $ 4.2 million; Lindero: $ 1.1 million).
Net income for the quarter was $ 16.6 million, a $ 2.0 million decrease from the $ 18.6 million reported in the same period in 2020. The lower net income was due to a $ 4.2 million loss on derivative contracts, higher interest expense of $ 2.7 million, and a higher effective tax rate ( Q4 2021: 45%; Q4 2020: 34%).
Adjusted net income for the quarter was $ 29.1 million compared to $ 23.0 million reported in the same period in 2020.
Adjusted EBITDA for the quarter was $ 89.6 million, a margin of 45% over sales, compared to $ 44.8 million reported in the same period in 2020, a margin of 43% over sales.
Full Year 2021 Results
Consolidated sales for the year ended December 31, 2021 increased 115% to $ 599.9 million compared to $ 279.0 million for the same period in 2020. The increase was driven by the contribution of Yaramoko and Lindero as well as higher silver prices in 2021 compared to 2020. Lindero recognized $ 179.0 million in gold doré sales comprising 100,177 ounces of gold. Yaramoko recognized $ 101.3 million of gold doré sales comprising 56,571 ounces of gold. Sales at San Jose increased 13% to $ 216.1 million as realized silver price increased 18% compared to 2020, along with a 3% increase in the volume of silver and gold ounces sold. Sales at Caylloma increased 53% to $ 103.5 million due primarily to an increase in the volume of metals sold and increases in the realized prices of lead and zinc of 20% and 32%, respectively, compared to realized prices in 2020.
Operating income for the the year ended December 31, 2021 was $ 136.9 million, a $ 79.7 million increase from the $ 57.2 million reported in the same period in 2020. The higher operating income was driven mainly by the contribution of Lindero of $ 45.2 million and Yaramoko of $ 17.0 million, and higher operating income at Caylloma of $ 23.9 million. This was partially offset by the San Jose Progreso royalty settlement of $ 14.3 million, and low-grade inventory write-downs amounting $ 7.0 million of which, Yaramoko and Lindero accounted for $ 4.2 million and $ 2.8 million, respectively.
Net income for the year ended December 31, 2021 was $ 59.4 million, a $ 37.8 million increase from the $ 21.6 million reported in 2020. The higher net income was offset by $ 14.1 million in transaction costs associated with the Company's acquisition ( the `` Roxgold Acquisition '') of all of the issued and outstanding common shares of Roxgold Inc., as well as higher interest expenses of $ 10.2 million. Interest expense was $ 8.7 million higher in 2021 compared to 2020 as $ 9.4 million was capitalized in 2020 related to the construction of the Lindero Mine.
Adjusted net income for the year ended December 31, 2021 was $ 100.6 million compared to $ 31.8 million in 2020.
Adjusted EBITDA for the year ended December 31, 2021 was $ 280.7 million compared to $ 112.6 million in 2020.
Liquidity
Free cash flow from ongoing operations for the three months ended December 31, 2021 was $ 30.9 million compared to $ 34.5 million in the same period in 2020. Free cash flow from ongoing operations for the year ended December 31, 2021 was $ 97.0 million compared to $ 78.9 million in 2020.
Total liquidity available to the Company as at December 31, 2021 was $ 187.1 million. The Company’ s $ 200.0 million revolving credit facility was fully available as at the end of December 2021 and $ 80.0 million remained undrawn.
Lindero Mine, Argentina
The table below shows the key metrics used to measure the operating performance of the Lindero Mine for the fourth quarter of 2021 and for the year ended December 31, 2021: throughput, head grade, recovery, and gold production. The Lindero Mine was under construction during a portion of the fourth quarter of 2020, with first gold poured in October 2020.
During the fourth quarter of 2021, the onsite impact of COVID-19 continued to be minimal as the site reported 60 positive cases with no disruptions to operations. Travel restrictions in Argentina were also lifted in November 2021 which led to an improvement in lead times and onsite technical assistance from foreign vendors.
In the fourth quarter of 2021, a total of 1,459,513 tonnes of ore were placed on the heap leach pad averaging 1.04 g/t gold, containing an estimated 48,900 ounces of gold. Total gold production was 36,072 ounces of gold. Gold production for 2021 totaled 104,161 ounces, comprised of 99,313 ounces in doré, 730 ounces of gold contained in precipitate/sludge and 4,118 ounces of gold-in-carbon ( GIC) inventory, in the upper range of the updated production and cost guidance issued in July 2021 ( refer to Fortuna news release dated July 19, 2021, “ Fortuna reports production of 55,953 gold equivalent ounces for the second quarter and issues updated guidance for 2021 ”).
All processing areas performed according to plan:
Cash cost per ounce of gold for the three and twelve months ended December 31, 2021 was $ 585 and $ 617 per ounce, respectively.
All-in sustaining cash costs per gold ounce sold was $ 994 during Q4 2021 and $ 1,116 in 2021 in line with the Company’ s updated cost guidance.
Total sustaining capital expenditures of $ 7.2 million during the quarter were primarily related to the completion of the ADR plant expansion, $ 4.2 million, and capitalized stripping, $ 2.0 million.
Yaramoko Mine, Burkina Faso
The table below shows the key metrics used to measure the operating performance of the Yaramoko Mine for the fourth quarter of 2021 and for the year ended December 31, 2021: throughput, head grade, recovery, and gold production. The Company acquired the Yaramoko Mine in connection with the Roxgold Acquisition, which closed on July 2, 2021. Accordingly, all production, operating and financial results in respect of the Yaramoko Mine for the year ended December 31, 2021 included in this news release reflect only those results from July 2, 2021 to December 31, 2021, unless indicated otherwise.
The Yaramoko Mine produced 28,787 ounces of gold in the fourth quarter of 2021 with an average gold head grade of 6.99 g/t; below the plan for the quarter. Total gold production for the second semester of 2021 totaled 57,538 ounces of gold which was below guidance for the period. The production shortfall was the result of lower than planned mill feed grade in the fourth quarter of 2021, caused by the delay in mining of several high-grade stopes and some localized grade variability in the 55 Zone. The unmined stopes was resequenced into the mine plan in the first quarter of 2022.
Cash cost per gold ounce sold was $ 754, which was above plan, primarily due to lower production during Q4 2021 and $ 739 for the second semester of 2021.
All-in sustaining cash cost per gold ounce sold was $ 1,436 and $ 1,317 for Q4 2021 and for the second semester of 2021, respectively, which were above the Company’ s guidance. Higher all-in sustaining cash costs were the result of lower ounces sold due to the mine sequencing issue described.
Sustaining capital expenditures of $ 21.5 million during the second half of the year were related primarily to underground mine development costs and construction of a ventilation raise.
San Jose Mine, Mexico
The following table shows the key metrics used to measure the operating performance of the San Jose Mine for the fourth quarter of 2021 and for the year ended December 31, 2021: throughput, head grade, recovery, gold and silver production and unit costs:
The San Jose Mine produced 1,717,533 ounces of silver and 9,929 ounces of gold during the three months ended December 31, 2021, which represents an 4% increase and 2% decrease over the same period in 2020, respectively. The decrease in gold production was due to lower tonnes milled.
Annual production of silver and gold totaled 6,425,029 ounces and 39,406 ounces, an increase of 4% for both from 2020 annual production, respectively, which was in line with guidance.
The cash cost per tonne for the three months ended December 31, 2021 was $ 79.66 per tonne compared to $ 71.48 per tonne in the same period in 2020 primarily due to higher indirect costs. Cash cost per tonne for the full year 2021 increased to $ 75.80 compared to $ 68.79 for 2020 due to higher mine preparation and support and higher indirect costs.
The all-in sustaining cash cost of payable silver equivalent for the full year 2021 increased 24% to $ 14.38 per ounce compared to $ 11.56 for the same period in 2020. The increase was primarily as a result of additional sustaining capital expenditures and Brownfields exploration which were limited in 2020 due to the impacts of business restrictions relating to the COVID-19 pandemic. All-in sustaining cash costs for the year were in line with guidance.
Caylloma Mine, Peru
The following table shows the key metrics used to measure the operating performance of the Caylloma Mine for the fourth quarter of 2021 and for the year ended December 31, 2021: throughput, head grade, recovery, silver, lead and zinc production and unit costs:
The Caylloma Mine produced 262,710 ounces of silver, 8.4 million pounds of lead and 11.4 million pounds of zinc during the three months ended December 31, 2021, which was in line with the same period in 2020 except for zinc which was lower by 8% due to a lower head grade. Gold production totaled 1,374 ounces with an average head grade of 0.44 g/t.
Annual production of silver, lead and zinc totaled 1,073,672 ounces of silver, 33.0 million pounds of lead, and 47.5 million pounds of zinc, which represent an 11% increase in silver, 11% increase in lead, and a 4% increase in zinc production compared to 2020. Gold production for the full year 2021 totaled 6,086 ounces, which was an increase of 48% over 2020, with an average head grade of 0.49 g/t. Production for the year was in line with guidance.
The cash cost per tonne of processed ore for the three months ended December 31, 2021 increased 20% to $ 97.87 compared to $ 81.65 in the same period in 2020. The increase was the result of higher mining costs related to shotcrete and transportation and higher energy costs at the plant. Cash cost per tonne for the full year 2021 increased to $ 88.41 compared to $ 76.59 for 2020 due to higher mine preparation and support and higher indirect costs related to administration and energy.
The all-in sustaining cash cost for the three months ended December 31, 2021 increased 11% to $ 20.71 per ounce compared to $ 18.69 per ounce for the same period in 2020. The increase was driven by higher sustaining capital expenditures and Brownfields exploration.
The all-in sustaining cash cost for the full year 2021 increased 9% to $ 18.94 per ounce compared to $ 17.37 per ounce in 2020 due to higher sustaining capital expenditures and Brownfields exploration. The increase was primarily due to the significantly decreased capital expenditures in 2020 due to the impacts of business restrictions relating to COVID-19 pandemic. The Caylloma Mine finished 2021 slightly below cost guidance as a result of higher silver equivalent metal sales.
Qualified Person
Eric N. Chapman, Senior Vice President of Technical Services of Fortuna, is a Professional Geoscientist of the Association of Professional Engineers and Geoscientists of the Province of British Columbia ( Registration Number 36328), and is the Company’ s Qualified Person ( as defined by National Instrument 43-101). Mr. Chapman has reviewed and approved the scientific and technical information contained in this news release and has verified the underlying data.
Non-IFRS Financial Measures
The Company has disclosed certain financial measures and ratios in this news release which are not defined under the International Financial Reporting Standards ( “ IFRS ”), as issued by the International Accounting Standards Board, and are not disclosed in the Company’ s financial statements, including but not limited to: cash cost per ounce of gold sold; all-in sustaining cash cost per ounce of gold sold; all-in cash cost per ounce of gold sold; total production cash cost per tonne; cash cost per payable ounce of silver equivalent sold; all-in sustaining cash cost per payable ounce of silver equivalent sold; all-in cash cost per payable ounce of silver equivalent sold; free cash flow from ongoing operations; adjusted net income; and adjusted EBITDA.
These non-IFRS financial measures and non-IFRS ratios are widely reported in the mining industry as benchmarks for performance and are used by management to monitor and evaluate the Company’ s operating performance and ability to generate cash. The Company believes that, in addition to financial measures and ratios prepared in accordance with IFRS, certain investors use these non-IFRS financial measures and ratios to evaluate the Company’ s performance. However, the measures do not have a standardized meaning under IFRS and may not be comparable to similar financial measures disclosed by other companies. Accordingly, non-IFRS financial measures and non-IFRS ratios should not be considered in isolation or as a substitute for measures and ratios of the Company’ s performance prepared in accordance with IFRS. The Company has calculated these measures consistently for all periods presented.
To facilitate a better understanding of these measures and ratios as calculated by the Company, descriptions are provided below. In addition, see “ Non-IFRS Financial Measures ” in the Company’ s management’ s discussion and analysis for the fiscal year ended December 31, 2021 ( “ 2021 MD & A ”), which section is incorporated by reference in this news release, for additional information regarding each non-IFRS financial measure and non-IFRS ratio disclosed in this news release, including an explanation of their composition; an explanation of how such measures and ratios provide useful information to an investor and the additional purposes, if any, for which management of Fortuna uses such measures and ratio. The 2021 MD & A may be accessed on SEDAR at www.sedar.com under the Company’ s profile, Fortuna Silver Mines Inc.
Except as otherwise described in the 2021 MD & A, the Company has calculated these measures consistently for all periods presented.
Reconciliation to Adjusted Net Income for the three and twelve months ended December 31, 2021 and 2020
Reconciliation to Adjusted EBITDA for the three and twelve months ended December 31, 2021 and 2020
Reconciliation of free cash flow from ongoing operations for three and twelve months ended December 31, 2021 and 2020
Reconciliation of cash cost per ounce of gold sold for the three and twelve months ended December 31, 2021 and 2020
Reconciliation of all-in sustaining cash cost per ounce of gold sold for the three and twelve months ended December 31, 2021 and 2020
Reconciliation of production cash cost per tonne and cash cost per payable ounce of silver equivalent sold for the three and twelve months ended December 31, 2021 and 2020
Reconciliation of All-in Sustaining Cash Cost and All-in Cash Cost per Payable Ounce of Silver Equivalent Sold for three and twelve months ended December 31, 2021 and 2020
Additional information regarding the Company’ s financial results and activities underway are available in the Company’ s audited consolidated financial statements for the year ended December 31, 2021 and accompanying 2021 MD & A, which are available for download on the Company’ s website, on SEDAR and on EDGAR.
Conference Call and Webcast
A conference call to discuss the financial and operational results will be held on Thursday, March 24, 2022 at 9:00 a.m. Pacific time | 12:00 p.m. Eastern time. Hosting the call will be Jorge A. Ganoza, President and CEO, Luis D. Ganoza, Chief Financial Officer, Cesar Velasco, Chief Operating Officer - Latin America, and Paul Criddle, Chief Operating Officer - West Africa.
Shareholders, analysts, media and interested investors are invited to listen to the live conference call by logging onto the webcast or over the phone by dialing in just prior to the starting time.
Conference call details:
Date: Thursday, March 24, 2022Time: 9:00 a.m. Pacific time | 12:00 p.m. Eastern time
Dial in number ( Toll Free): +1.888.506.0062Dial in number ( International): +1.973.528.0011Entry code: 382909
Replay number ( Toll Free): +1.877.481.4010Replay number ( International): +1.919.882.2331Replay Passcode: 44738
Playback of the earnings call will be available until Thursday, April 7, 2022. Playback of the webcast will be available until Saturday, March 25, 2023. In addition, a transcript of the call will be archived on the Company’ s website. | business |
March U.S. auto sales to tumble on rising inflation, Ukraine crisis- data | Supply bottlenecks were showing signs of easing in recent months, but that progress is likely to be stalled by Russia's invasion of Ukraine as well as new lockdowns in China following a resurgence in COVID-19 infections.
`` This year, with fewer than 900,000 units in inventory, it will be impossible for the sale pace to even approach last year's level, '' said Thomas King, president of the data and analytics division at J.D. Powers.
U.S. retail sales of new vehicles could fall 27.8% to 1,044,500 units in March from a year earlier, according to a report released by the consultants on Wednesday.
The consultants expect global vehicle sales in March to suffer from the added effect of the war in Ukraine and an increase in inflationary pressure on consumers worldwide.
Total new-vehicle U.S. sales for the month, including retail and non-retail transactions, are expected to reach 1,188,300 units, a 28.9% decrease from last year, the report showed.
With supply still lagging behind demand, the U.S. average of new-vehicle retail transaction price in March is expected to rise 17.4% to $ 43,737, dropping from the previous high in December 2021 at $ 45,283.
The seasonally adjusted annualized rate for total new-vehicle sales is expected to be 12.7 million units, down 5.1 million units from 2021.
Separately, research firm Cox Automotive said https: //www.coxautoinc.com/news/february-2022-forecast-u-s-auto-sales earlier this month that there is no indication that inventories will notably improve in March, and that the seasonally adjusted annual rate will drop well below January and February.
( Reporting by Kannaki Deka in Bengaluru; Editing by Shinjini Ganguli) | business |
South Korea's disgraced ex-president Park leaves hospital after prison release | Park, 70, became the country's first democratically elected leader to be forced from office when the Constitutional Court upheld a parliament vote in 2017 to impeach her over a scandal that also landed the chiefs of two conglomerates, Samsung and Lotte, in jail.
The Supreme Court last year upheld Park's sentence of 20 years in prison for colluding with a friend, who was also jailed, to receive millions of dollars from the companies, mostly to fund her friend's family and non-profit groups.
Outgoing President Moon Jae-in granted a special pardon to Park in December, citing her deteriorating health and his hopes to move past the `` unfortunate history '' and promote national unity.
Park smiled as she left the Samsung Medical Centre in Seoul dressed in a dark navy coat and holding a purse.
`` I offer my greetings after five years, '' she said. `` I have recovered a lot thanks to your concerns. ''
She declined to answer reporters ' questions.
Some 40 supporters cheered as Park, the daughter of former dictator Park Chung-hee, appeared. Dozens of officials who served in her administration and her conservative political party also gathered to offer their best wishes.
Park visited her father's grave before heading to a new residence in the southeastern city of Daegu.
Park's imprisonment divided a country in which old Cold War rivalry between right and left still shapes politics.
Right-wing groups supporting Park had staged weekly rallies to denounce Moon and his liberal administration until COVID-19 distancing rules limited protests.
Park's release comes days after a presidential election won by conservative candidate Yoon Suk-yeol.
President-elect Yoon, who was in involved in the investigation of the corruption charges against Park when he served as prosecutor-general, said during the election campaign that he was sorry about what happened to her.
On Thursday, he said he hoped to meet her and would invite her to his inauguration in May.
Moon's office said he had sent Park an orchid and wished her well.
( Reporting by Hyonhee Shin; Editing by Robert Birsel)
By Hyonhee Shin | business |
Corporacion America Airports Reports Fourth Quarter and Full Year 2021 Results | December 2021 passenger traffic recovered to 66.8% of December 2019 levels
4Q21 Adjusted EBITDA margin expanded 7.3pp YoY, supported by passenger traffic recovery and strategic execution
LUXEMBOURG -- ( BUSINESS WIRE) -- Corporación América Airports S.A. ( NYSE: CAAP), ( “ CAAP ” or the “ Company ”) the largest private sector airport operator based on the number of airports under management reported today its unaudited, consolidated results for the three months ended December 31, 2021, and audited results for the full year 2021. Financial results are expressed in millions of U.S. dollars and are prepared in accordance with International Financial Reporting Standards ( IFRS) as issued by the International Accounting Standards Board ( “ IASB ”).
Commencing 3Q18, the Company began reporting results of its Argentinean subsidiaries applying Hyperinflation Accounting, in accordance to IFRS rule IAS 29 ( “ IAS 29 ”), as detailed on Section “ Hyperinflation Accounting in Argentina ” on page 26.
Fourth Quarter 2021 Highlights1
Full Year 2021 Highlights1
14Q and FY 2020 figures have been adjusted to reflect the discontinuation of the Peru business in 2021, for comparison purposes.
CEO Message
Commenting on the results for the quarter Mr. Martín Eurnekian, CEO of Corporación América Airports, noted, “ Our performance this quarter demonstrates the successful execution of the multiple initiatives we have been undertaking since the onset of the pandemic. Today, we have a leaner cost structure, a strengthened financial position and have made significant progress towards further enhancing the equity value of our business. ”
“ Passenger traffic continued to recover throughout our operations driven by pent-up demand and the overall reduction in traffic restrictions, including the opening of borders in Argentina and Uruguay starting November 1, 2021. Passenger traffic, therefore, increased to 63% of the 21 million passengers served in 4Q19, with a significant sequential improvement compared to the 46% of pre-pandemic levels reached in 3Q21. Cargo operations also continued to perform well at 80% of 4Q19 levels. ”
“ Increased traffic brought a strong recovery in revenues, ex-IFRIC12, which nearly doubled year-on-year to $ 200 million, to close to 70% of 4Q19 revenues, up from the 55% of pre-pandemic levels achieved in the prior quarter. We also delivered substantially higher profitability in the quarter, with $ 92 million Comparable Adjusted EBITDA, doubling 4Q20 levels. Results benefited from improved top line performance and a leaner cost structure following cost reduction initiatives implemented over the past two years, as well as a $ 26 million compensation recorded this quarter related to the re-equilibrium of the Brasilia Airport concession for the 2021 calendar year, reinforcing the intrinsic value of our concessions. We also accounted a 9.5 million euro government grant in Italy in the fourth quarter. ”
“ During the quarter we extended debt maturities for a combined amount of $ 425 million in Argentina and Uruguay; further strengthening the Company´s liquidity position and improving our debt profile. We also obtained new long term financing for more than $ 350 million in these two countries, including $ 174 million raised last February. ”
“ On the ESG front, and building on our commitment to sustainability, this year we joined the World Economic Forum´s “ Clean Skies for Tomorrow 2030 ” coalition that aims to accelerate the supply and use of sustainable aviation fuel technologies to reach 10% of global jet aviation fuel supply by 2030. ”
“ Looking ahead, we expect to see a sustained recovery in passenger traffic trends led by pent-up demand and lower travel restrictions. While we observed a slowdown in traffic in January due to concerns around the Omicron variant, February already showed an improvement. In the near term, we are closely monitoring the impact of Omicron, as well as the rapidly developing conflict in the Ukraine, which at this time is not impacting our operations. In this context, we remain fully-committed to advancing on our Action Plan which has proven to deliver solid results, despite passenger traffic levels not having reached full recovery, while actively developing additional value creation opportunities and expanding our capabilities. ”
Operating & Financial Highlights
( In millions of U.S. dollars, unless otherwise noted)
4Q21 as reported
4Q20 as reported
% Var as reported
IAS 29
4Q21 ex IAS 29
4Q20 ex IAS 29
% Var ex IAS 29
Passenger Traffic ( Million Passengers) ( 1) ( 2)
13.2
5.1
159.2%
13.2
5.1
159.2%
Revenue
218.7
129.4
69.1%
0.1
218.6
133.3
64.0%
Aeronautical Revenues
92.6
35.9
158.0%
0.6
92.0
36.3
153.1%
Non-Aeronautical Revenues
126.1
93.5
34.9%
-0.4
126.6
96.9
30.6%
Revenue excluding construction service
202.7
101.0
100.8%
2.6
200.1
101.8
96.5%
Operating Income / ( Loss)
60.4
5.3
1035.2%
-12.5
72.9
20.4
256.9%
Operating Margin
27.6%
4.1%
2350
0.0%
33.3%
15.3%
1802
Net ( Loss) / Income Attributable to Owners of the Parent
-22.3
-38.8
-42.6%
11.4
-33.7
-53.3
-36.8%
EPS ( US $)
-0.14
-0.24
-42.8%
0.07
-0.21
-0.33
-37.1%
Adjusted EBITDA
92.8
45.5
104.1%
1.0
91.8
45.0
103.9%
Adjusted EBITDA Margin
42.4%
35.1%
729
-
42.0%
33.8%
822
Adjusted EBITDA Margin excluding Construction Service
45.2%
45.3%
-3
-
45.3%
44.5%
86
Net Debt to LTM Adjusted EBITDA
7.12x
78.27x
-
-
-
-
-
Net Debt to LTM Adjusted EBITDA excl. impairment on intangible assets ( 3)
7.11x
14.02x
-
-
-
-
-
Note: Figures in historical dollars ( excluding IAS29) are included for comparison purposes.
1)
Note that preliminary passenger traffic figures for Ezeiza Airport, in Argentina, for January 2020 were adjusted to include additional inbound passengers not accounted for in the initial count, for an average of approximately 5% of total passenger traffic at Ezeiza Airport and 1% of total traffic at CAAP, during that period. Importantly, inbound traffic does not affect revenues, as tariffs are applicable on departure passengers.
2)
Starting November 2019, the Company has reclassified its passenger traffic figures for Brasilia Airport between international, domestic and transit retroactively since June 2018 to return to the count methodology utilized until May 2018. Notwithstanding, total traffic figures remain unchanged.
3)
LTM Adjusted EBITDA excluding impairments of intangible assets
Operating & Financial Highlights FY 2021
( In millions of U.S. dollars, unless otherwise noted)
2021 as reported
2020 as reported
% Var as reported
IAS 29
2021 ex IAS 29
2020 ex IAS 29
% Var ex IAS 29
Passenger Traffic ( Million Passengers) ( 1) ( 2)
35.7
25.2
41.5%
35.7
25.2
41.5%
Revenue
706.9
607.4
16.4%
29.2
677.7
622.8
8.8%
Aeronautical Revenues
262.8
220.0
19.5%
7.4
255.4
224.5
13.8%
Non-Aeronautical Revenues
444.1
387.4
14.6%
21.9
422.2
398.3
6.0%
Revenue excluding construction service
627.2
481.6
30.2%
27.9
599.2
488.9
22.6%
Operating Income / ( Loss)
6.5
-163.7
-103.9%
-46.3
52.8
-86.9
-160.7%
Operating Margin
0.9%
-27.0%
2787
-
7.8%
-14.0%
2175
Net ( Loss) / Income Attributable to Owners of the Parent
-117.8
-253.1
-53.5%
-13.2
-104.5
-262.9
-60.2%
EPS ( US $)
-0.73
-1.58
-53.6%
-0.08
-0.65
-1.64
-60.4%
Adjusted EBITDA
149.3
18.1
725.8%
6.5
142.8
20.0
613.9%
Adjusted EBITDA Margin
21.1%
3.0%
1815
-
21.1%
3.2%
1786
Adjusted EBITDA Margin excluding Construction Service
23.4%
3.5%
1997
-
23.4%
3.8%
1963
Note: Figures in historical dollars ( excluding IAS29) are included for comparison purposes.
1)
Note that preliminary passenger traffic figures for Ezeiza Airport, in Argentina, for January 2020 were adjusted to include additional inbound passengers not accounted for in the initial count, for an average of approximately 5% of total passenger traffic at Ezeiza Airport and 1% of total traffic at CAAP, during that period. Importantly, inbound traffic does not affect revenues, as tariffs are applicable on departure passengers.
2)
Starting November 2019, the Company has reclassified its passenger traffic figures for Brasilia Airport between international, domestic and transit retroactively since June 2018 to return to the count methodology utilized until May 2018. Notwithstanding, total traffic figures remain unchanged.
3)
LTM Adjusted EBITDA excluding impairments of intangible assets
Update on Action Plan to Compensate for Impact of Covid-19 in CAAP´s Business
Governmental Flight Restrictions
Most of CAAP’ s markets have been gradually lifting travel restrictions:
Impact of Covid-19 on CAAP’ s Passenger Traffic and Cargo Activity
Compared to the 2019 pre-pandemic corresponding months, total passenger traffic showed a monthly sequential improvement within the quarter, declining 41.6% in October 2021, 35.0% in November, and 33.2% in December. During 4Q21, commercial flights were operated across all CAAP’ s countries of operations and overall traffic experienced a strong sequential recovery when compared to 3Q21, as travel restrictions commenced to gradually relax, although certain requirements still applied. Cargo activity continued to perform well and stood at 80% of 4Q19 pre-pandemic levels.
Action Plan
Since the onset of the pandemic, CAAP has consistently made significant progress on the implementation of its action plan to mitigate the impact of the crisis, including:
Cost controls and cash preservation measures: The Company achieved a 24% reduction in cash operating costs and expenses in the quarter against 4Q19, compared with YoY reductions of 43%, 34%, 43% and 46% in 3Q21, 2Q21, 1Q21 and 4Q20, respectively. Note this excludes concession fees and construction costs.
Financial position and liquidity: As cash preservation is a critical focus, since the beginning of the pandemic the Company has renegotiated a significant portion of its debt maturing in 2020 and 2021 in key markets, renegotiated debt covenants, and secured additional debt financing.
Debt Transactions:
Re-equilibrium of the Concession Agreements:
4Q21 Operating Performance
Passenger Traffic
Total passenger traffic increased 1.6x YoY to 13.2 million passengers, reflecting a recovery in travel demand and easing travel restrictions. When compared to 4Q19, total passenger traffic decreased 36.6%, with Armenia and Brazil leading the recovery, reaching 90% and 82% of pre-pandemic traffic levels, respectively. Traffic in Argentina and Uruguay, the two countries with prolonged government-imposed travel restrictions, stood at 53% and 50% of 4Q19 levels, respectively, recovering strongly from the past quarter, following the opening of borders, effective November 1, 2021. International and domestic traffic grew by 2.7x and 1.8x YoY, reaching 47.7% and 70.3% of 4Q19 levels, respectively. Sequentially, passenger traffic grew by 26.6% when compared to 3Q21, with strong improvements in Argentina, Brazil and Uruguay. On a monthly basis, traffic in October, November and December of 2021, increased to 58.4%, 65.0% and 66.8%, of traffic for the same months in 2019, respectively.
Passenger Traffic in Argentina increased 5.2x YoY and improved to 52.5% of 4Q19 levels. International passenger traffic increased 2.1x YoY in 4Q21 and reached 29.8% of 4Q19 traffic, showing a sequential quarterly improvement following the re-opening of borders to non-resident foreigners, effective November 1, 2021. Domestic passenger traffic, which accounted for 80% of total traffic in the quarter, increased 7.2x YoY and improved to 63.4% of 4Q19 levels, showing a continued sequential recovery.
In Italy, passenger traffic increased 3.7x YoY, and was 18% down versus 3Q21. As compared to 4Q19, traffic declined 39.8%, reflecting prolonged air travel restrictions in the country. Domestic and international traffic increased by 2.1x and 5.4x YoY, respectively, and stood at 80.0% and 53.6% of 4Q19 pre-pandemic levels. Traffic in the quarter was impacted by weaker demand caused by the emergence of the Omicron variant, in the last months of the year.
In Brazil, total passenger traffic grew 37.2 YoY, and was 18.3% below pre-pandemic levels of 4Q19. Domestic passenger traffic, which accounted for 66% of total traffic in the quarter, was up 48.2 YoY and reached nearly 90% of 4Q19 pre-pandemic levels, while transit passengers accounted for the remaining 33% of total traffic and increased 16.7% YoY to 77.9% of 4Q19 traffic.
In Uruguay, passenger traffic increased 4.1x YoY, reaching 50.2% of 4Q19 levels, showing a strong sequential recovery versus 3Q21, reflecting the re-opening of borders to non-resident foreigners, effective November 1, 2021. Borders had only partially opened to property-owners, on September 1, 2021.
In Armenia, where traffic is 100% international, traffic has been increasing sequentially since the elimination of restrictions on air travel in September 2020 and the opening of Russian borders to foreigners, although some requirements apply upon entry. Total traffic improved 3.7x YoY, or stood at 90% of 4Q19 pre-pandemic levels.
In Ecuador, total passenger traffic grew 1.2x YoY, and increased to 76.2% of 4Q19 levels. Both, domestic and international passenger traffic continued to improve sequentially since the third quarter of 2020.
Cargo Volume
Cargo volume increased 27.0% YoY in 4Q21, and stood at 79.9% of pre-pandemic levels of 4Q19, with strong contributions from Argentina, Brazil and Uruguay, which together accounted for more than 80% of total volume, in the quarter. Notably, cargo volume in Italy and Uruguay was above 4Q19 levels.
Aircraft Movements
Total aircraft movements increased 89.0% YoY in 4Q21, and reached 76.2% of 4Q19 levels, impacted by travel restrictions and lower travel demand across all segments particularly in Argentina, which accounted for almost two thirds of the aircraft movement reduction, when compared to 2019.
Tables with detailed passenger traffic, cargo volume and aircraft movement information for each airport can be found on page 39 of this report.
Operational Statistics: Passenger Traffic, Cargo Volume and Aircraft Movements
4Q21
4Q20
4Q19
% Var. ( '21 vs '20)
% Var. ( '21 vs '19)
Domestic Passengers ( in thousands)
8,527
3,011
12,127
183.1%
-29.7%
International Passengers ( in thousands)
3,163
866
6,626
265.3%
-52.3%
Transit Passengers ( in thousands)
1,557
1,233
2,155
26.3%
-27.8%
Total Passengers ( in thousands)
13,246
5,110
20,907
159.2%
-36.6%
Cargo Volume ( in thousands of tons)
91.6
72.1
114.7
27.0%
-20.1%
Total Aircraft Movements ( in thousands)
162.1
85.8
212.6
89.0%
-23.8%
Passenger Traffic Breakdown
Cargo Volume
Aircraft Movements
Country
4Q21
4Q20
% Var.
4Q21
4Q20
% Var.
4Q21
4Q20
% Var.
( thousands)
( tons)
Argentina ( 1)
5,591
898
522.6%
50,723
41,249
23.0%
76,941
31,772
142.2%
Italy
1,087
231
371.1%
4,380
3,754
16.7%
13,199
5,360
146.3%
Brazil ( 2)
4,177
3,046
37.2%
14,874
10,249
45.1%
36,964
27,665
33.6%
Uruguay ( 3)
260
51
408.5%
8,379
6,837
22.6%
7,363
2,568
186.7%
Ecuador ( 4)
850
382
122.6%
6,745
4,970
35.7%
16,762
12,494
34.2%
Armenia
695
149
365.8%
5,664
4,349
30.2%
5,918
2,218
166.8%
Peru ( 5)
586
353
65.7%
832
718
15.9%
4,905
3,681
33.3%
TOTAL
13,246
5,110
159.2%
91,597
72,126
27.0%
162,052
85,758
89.0%
Passenger Traffic Breakdown
Cargo Volume
Aircraft Movements
Country
4Q21
4Q19
% Var.
4Q21
4Q19
% Var.
4Q21
4Q19
% Var.
( thousands)
( tons)
Argentina ( 1)
5,591
10,646
-47.5%
50,723
63,592
-20.2%
76,941
109,183
-29.5%
Italy
1,087
1,807
-39.8%
4,380
3,626
20.8%
13,199
17,438
-24.3%
Brazil ( 2)
4,177
5,112
-18.3%
14,874
22,879
-35.0%
36,964
42,486
-13.0%
Uruguay ( 3)
260
518
-49.8%
8,379
8,149
2.8%
7,363
7,537
-2.3%
Ecuador ( 4)
850
1,115
-23.8%
6,745
8,646
-22.0%
16,762
21,416
-21.7%
Armenia
695
772
-9.9%
5,664
6,369
-11.1%
5,918
7,006
-15.5%
Peru ( 5)
586
937
-37.5%
832
1,393
-40.2%
4,905
7,536
-34.9%
TOTAL
13,246
20,907
-36.6%
91,597
114,653
-20.1%
162,052
212,602
-23.8%
1)
See Note 1 in Table `` Operating & Financial Highlights ”
2)
Starting November 2019, the Company has reclassified its passenger traffic figures for Brasilia Airport between international and transit retroactively since June 2018 to return to the count methodology utilized until May 2018. Notwithstanding, total traffic figures remain unchanged.
3)
Cargo volumes in Uruguay were rectified from January to June 2020, to reflect all cargo passing through the cargo terminal, instead of air cargo only.
4)
CAAP owns 99.9% of ECOGAL, which operates and maintains the Galapagos Airport, but due to the terms of the concession agreement, ECOGAL’ s results are accounted for by the equity method. However, 100% of ECOGAL’ s passenger traffic and aircraft movements are included in this table.
5)
CAAP owns 50.0% of AAP and accounts for its results by the equity method. However, 100% of AAP’ s passenger traffic and aircraft movements are included in this table.
Review of Consolidated Results
Results for ECOGAL, which operates the Galapagos Airport in Ecuador, are accounted for under the equity method. In December 2021, CAAP signed an agreement to transfer its 50% ownership interest in Aeropuertos Andinos del Perú S.A. to Andino Investment Holding S.A. and, consequently, stop operating the five airports that were under concession. As such, fourth quarter and full year 2020 figures have been adjusted to reflect the discontinuation of the Peru business in 2021, for comparison purposes.
Commencing 3Q18, the Company began reporting results of its Argentinean subsidiaries applying Hyperinflation Accounting, in accordance to IFRS rule IAS 29, as detailed on Section “ Hyperinflation Accounting in Argentina ” on page 26.
Revenues
Consolidated Revenues increased 69.1% YoY to $ 218.7 million in 4Q21. When excluding Construction Services and the impact of IAS 29, revenues increased 96.5% YoY to $ 200.1 million, reaching 69.1% of 4Q19 levels, reflecting the impacts of the pandemic and currency depreciation over the share of local currency revenues in Argentina, Brazil and Uruguay. Compared to 3Q21, revenues ex IFRIC 12 improved 20.2% sequentially, with strong performance in Argentina ( +50.7%) and Uruguay ( +34.7%), reflecting higher passenger traffic following the re-opening of borders on November 1, 2021, coupled with a positive seasonal impact.
The following table shows revenue performance by country. More detail on the performance of CAAP´s key countries of operations can be found on page 17.
Revenues by Segment ( in US $ million)
Country
4Q21 as reported
4Q20 as reported
% Var as reported
IAS 29
4Q21 ex IAS 29
4Q20 ex IAS 29
% Var ex IAS 29
Argentina
108.9
72.2
50.9%
0.1
108.8
76.1
43.0%
Italy
23.9
16.5
44.7%
-
23.9
16.5
44.7%
Brazil
18.1
12.5
44.0%
-
18.1
12.5
44.0%
Uruguay
18.2
7.7
134.3%
-
18.2
7.7
134.3%
Armenia
30.1
8.5
255.8%
-
30.1
8.5
255.8%
Ecuador ( 1)
19.4
11.9
63.9%
-
19.4
11.9
63.9%
Unallocated
0.1
0.0
222.7%
-
0.1
0.0
222.7%
Total consolidated revenue ( 2)
218.7
129.4
69.1%
0.1
218.6
133.3
64.0%
1)
Only includes Guayaquil Airport.
2)
Excluding Construction Service revenue, ‘ As reported’ revenues increase 96.3% YoY in Argentina, 81.2% in Italy, 44.0% in Brazil, 125.8% in Uruguay, 240.4% in Armenia and 82.1% in Ecuador.
Revenue Breakdown ( in US $ million)
4Q21 as reported
4Q20 as reported
% Var as reported
IAS 29
4Q21 ex IAS 29
4Q20 ex IAS 29
% Var ex IAS 29
Aeronautical Revenue
92.6
35.9
158.0%
0.6
92.0
36.3
153.1%
Non-aeronautical Revenue
126.1
93.5
34.9%
-0.4
126.6
96.9
30.6%
Commercial revenue
109.3
64.1
70.5%
2.1
107.2
64.5
66.3%
Construction service revenue ( 1)
16.0
28.4
-43.7%
-2.5
18.5
31.5
-41.2%
Other revenue
0.9
1.0
-13.5%
0.0
0.9
1.0
-13.5%
Total Consolidated Revenue
218.7
129.4
69.1%
0.1
218.6
133.3
64.0%
Total Revenue excluding Construction Service revenue ( 2)
202.7
101.0
100.8%
2.6
200.1
101.8
96.5%
1)
Construction Service revenue equals the construction or upgrade costs plus a reasonable margin.
2)
Excludes Construction Service revenue.
Revenue Breakdown ( in US $ million)
4Q21 as reported
4Q19 as reported
% Var as reported
IAS 29
4Q21 ex IAS 29
4Q19 ex IAS 29
% Var ex IAS 29
Aeronautical Revenue
92.6
173.7
-46.7%
0.6
92.0
170.8
-46.1%
Non-aeronautical Revenue
126.1
206.4
-38.9%
-0.4
126.6
204.1
-38.0%
Commercial revenue
109.3
120.8
-9.5%
2.1
107.2
117.9
-9.1%
Construction service revenue ( 1)
16.0
84.7
-81.1%
-2.5
18.5
85.3
-78.3%
Other revenue
0.9
0.8
7.6%
-
0.9
0.8
7.6%
Total Consolidated Revenue
218.7
380.1
-42.5%
0.1
218.6
374.9
-41.7%
Total Revenue excluding Construction Service revenue ( 2)
202.7
295.4
-31.4%
2.6
200.1
289.6
-30.9%
1)
Construction Service revenue equals the construction or upgrade costs plus a reasonable margin.
2)
Excludes Construction Service revenue.
Aeronautical Revenues accounted for 42.3% of total revenues and increased 1.6x YoY. When compared to 4Q19, aeronautical revenues declined 46.1% to $ 92.0 million had IAS 29 not been applied, reflecting the continued impact of the pandemic in traffic volumes, despite the gradual relaxation of travel restrictions in materially all markets. During the quarter and excluding IAS 29, aeronautical revenue declined 59.7%, or $ 54.3 million, in Argentina, 38.8%, or $ 8.6 million, in Italy, and 48.7%, or $ 6.3 million, in Uruguay, compared to the same quarter of 2019. Moreover, Brazil declined 44.9%, or $ 6.7 million, and Ecuador declined 18.6%, or $ 3.2 million, while aeronautical revenues in Armenia increased 2.7%, compared to pre-pandemic levels of 4Q19.
Non-Aeronautical Revenues accounted for 57.7% of total revenues and increased 34.9% YoY, to $ 126.1 million. When compared to 4Q19 and excluding the impact of IAS 29, non-aeronautical revenues declined 38.0% to $ 126.6 million, mainly driven by the following decreases:
Excluding Construction Service Revenue and the impact of IAS 29, non-aeronautical revenues declined 9.0% against 4Q19, to $ 108.1 million.
Operating Costs and Expenses
During 4Q21, Operating Costs and Expenses, excluding Construction Service Cost, increased 27.2% YoY to $ 182.8 million, mainly driven by higher Salaries and social security contributions, Concession fees and Maintenance expenses, in line with higher YoY activity. When compared to 4Q19, Operating Costs and Expenses, excluding Construction Service Cost and IAS 29, declined 37.7% to $ 167.6 million. The decline is mainly explained by reductions in Maintenance expenses resulting from lower services and renegotiation with suppliers, together with lower Concession Fees, Salaries and Social Contributions and SG & A expenses. Currency depreciation in Argentina, Brazil and Uruguay also benefited costs.
Cost of Services increased 14.1% YoY, to $ 162.4 million. When compared to 4Q19 and excluding IAS29, Cost of Services declined 43.6%, to $ 154.8 million, mainly reflecting the following declines:
Excluding Construction Service cost, Cost of Services increased 29.7% YoY, to $ 147.5 million. On a comparable basis against 4Q19 and excluding the impact of IAS29, Cost of Services declined 27.5%, or $ 52.3 million, to $ 137.4 million.
Selling, General and Administrative Expenses ( “ SG & A ”) increased 18.7% YoY, to $ 33.7 million in 4Q21 on an ‘ As reported’ basis. When compared to 4Q19 and excluding the impact of IAS 29, SG & A declined 17.9%, to $ 28.7 million.
Other Operating Expenses were $ 1.4 million in 4Q21, down 43.3% from the $ 2.5 million recorded in 4Q20 and relatively in line with the $ 1.1 million posted in 4Q19.
Costs and Expenses ( in US $ million)
4Q21 as reported
4Q20 as reported
% Var as reported
IAS 29
4Q21 ex IAS 29
4Q20 ex IAS 29
% Var ex IAS 29
Cost of Services
162.4
142.4
14.1%
7.6
154.8
131.5
17.8%
Salaries and social security contributions
37.6
24.6
53.1%
0.4
37.2
25.2
47.3%
Concession fees
28.6
16.7
71.1%
0.3
28.3
16.9
67.4%
Construction service cost
14.9
28.6
-48.1%
-2.5
17.4
31.7
-45.2%
Maintenance expenses
24.8
16.5
50.5%
0.4
24.4
16.9
44.7%
Amortization and depreciation
28.5
39.2
-27.2%
8.9
19.6
23.8
-17.7%
Other
28.1
16.8
66.8%
0.1
28.0
16.9
65.1%
Cost of Services Excluding Construction Service cost
147.5
113.7
29.7%
10.1
137.4
99.8
37.8%
Selling, general and administrative expenses
33.7
28.4
18.7%
5.0
28.7
28.2
1.9%
Other expenses
1.5
1.5
-1.4%
0.1
1.4
1.5
-8.2%
Total Costs and Expenses
197.6
172.3
14.7%
12.7
185.0
161.2
14.7%
Total Costs and Expenses Excluding Construction Service cost
182.8
143.7
27.2%
15.2
167.6
129.5
29.4%
Costs and Expenses ( in US $ million)
4Q21 as reported
4Q19 as
reported
% Var as reported
IAS 29
4Q21 ex IAS 29
4Q19 ex IAS 29
% Var ex IAS 29
Cost of Services
162.4
292.6
-44.5%
7.6
154.8
274.4
-43.6%
Salaries and social security contributions
37.6
49.5
-24.0%
0.4
37.2
48.6
-23.5%
Concession fees
28.6
40.4
-29.3%
0.3
28.3
39.6
-28.6%
Construction service cost
14.9
84.1
-82.3%
-2.5
17.4
84.7
-79.5%
Maintenance expenses
24.8
38.4
-35.4%
0.4
24.4
37.6
-35.1%
Amortization and depreciation
28.5
40.3
-29.3%
8.9
19.6
24.4
-19.7%
Other
28.1
40.1
-30.0%
0.1
28.0
39.4
-29.0%
Cost of Services Excluding Construction Service cost
147.5
208.6
-29.3%
10.1
137.4
189.8
-27.6%
Selling, general and administrative expenses
33.7
36.2
-6.9%
5.0
28.7
35.0
-17.9%
Other expenses
1.5
43.9
-96.6%
0.1
1.4
43.9
-96.8%
Total Costs and Expenses
197.6
372.7
-47.0%
12.7
185.0
353.4
-47.7%
Total Costs and Expenses Excluding Construction Service cost
182.8
288.6
-36.7%
15.2
167.6
268.8
-37.7%
Adjusted EBITDA and Adjusted EBITDA excluding Construction Service
During 4Q21, CAAP reported Adjusted EBITDA of $ 92.8 million, up from an Adjusted EBITDA of $ 45.5 million in the year-ago period, and 70.8% higher than the $ 54.3 million reported in 4Q19. All countries of operations reported positive Adjusted EBITDA in the quarter, with strong contributions from Argentina, Brazil, Armenia and Italy, which together accounted for more than 88% of the consolidated Adjusted EBITDA. Adjusted EBITDA margin ex-IFRIC12, expanded to 45.2% from 45.3% in 4Q20 and 18.2% in 4Q19.
Excluding the impact from IAS 29, Adjusted EBITDA was $ 91.8 million, up from an Adjusted EBITDA of $ 45.0 million in the year ago period and $ 52.2 million in 4Q19, while Adjusted EBITDA margin excluding construction service expanded to 45.3%, from 44.5% in 4Q20 and 17.8% in 4Q19. When also adjusting for impairment charges, Adjusted EBITDA improved to $ 91.9 million in 4Q21 from $ 44.0 million in 4Q20, and was 3.3% below the $ 95.0 million posted in 4Q19.
As Reported Adjusted EBITDA figures included: ( i) economic compensations of $ 25.5 million in Brazil and $ 10.9 million in Italy, in 4Q21, ( ii) economic compensations of $ 46.7 million in Brazil and Italy, in 4Q20, and ( iii) an impairment loss of $ 42.8 million in Brazil, in 4Q19.
Adjusted EBITDA by Segment ( in US $ million)
4Q21 as reported
4Q20 as reported
% Var as reported
IAS 29
4Q21 ex IAS 29
4Q20 ex IAS 29
% Var ex
IAS 29
Argentina
31.0
9.7
219.3%
1.0
30.0
9.3
223.5%
Italy
11.8
4.8
146.7%
-
11.8
4.8
146.7%
Brazil
26.2
31.8
-17.6%
-
26.2
31.8
-17.6%
Uruguay
8.2
1.0
722.2%
-
8.2
1.0
722.2%
Armenia
13.3
1.0
1298.2%
-
13.3
1.0
1298.2%
Ecuador
4.8
0.1
6436.7%
-
4.8
0.1
6436.7%
Unallocated
-2.6
-2.9
-11.4%
-
-2.6
-2.9
-11.4%
Total segment EBITDA
92.8
45.5
104.1%
1.0
91.8
45.0
103.9%
4Q21 as reported
4Q19 as reported
% Var as reported
IAS 29
4Q21 ex IAS 29
4Q19 ex IAS 29
% Var ex IAS 29
Argentina
31.0
52.1
-40.5%
1.0
30.0
50.1
-40.0%
Italy
11.8
7.3
62.0%
-
11.8
7.3
62.0%
Brazil
26.2
-32.8
-180.0%
-
26.2
-32.8
-180.0%
Uruguay
8.2
12.0
-31.7%
-
8.2
12.0
-31.7%
Armenia
13.3
12.5
6.3%
-
13.3
12.5
6.3%
Ecuador
4.8
5.9
-18.2%
-
4.8
5.9
-18.2%
Unallocated
-2.6
-2.7
-5.6%
-
-2.6
-2.7
-5.6%
Total segment EBITDA
92.8
54.3
70.8%
1.0
91.8
52.2
75.8%
Adjusted EBITDA Reconciliation to Income from Continuing Operations ( in US $ million)
4Q21 as reported
4Q20 as reported
% Var as reported
IAS 29
4Q21 ex IAS 29
4Q20 ex IAS 29
% Var ex IAS 29
Income from Continuing Operations
-0.2
-47.6
-99.6%
11.4
-11.6
-62.1
-81.4%
Financial Income
-4.8
-9.1
-47.2%
4.7
-9.5
-8.9
7.2%
Financial Loss
32.8
63.7
-48.5%
-56.2
89.0
120.4
-26.1%
Inflation adjustment
-4.1
9.9
-141.2%
-3.9
-0.2
0.2
-202.9%
Income Tax Expense
38.5
-12.9
-398.8%
31.5
7.0
-30.5
-123.0%
Amortization and Depreciation
30.5
41.5
-26.4%
13.5
17.0
25.9
-34.3%
Adjusted EBITDA
92.8
45.5
104.1%
1.0
91.8
45.0
103.9%
Adjusted EBITDA Margin
42.4%
35.1%
729
-
42.0%
33.8%
822
Adjusted EBITDA Margin excluding Construction Service
45.2%
45.3%
-3
-
45.3%
44.5%
86
Financial Income and Loss
CAAP reported a Net financial loss of $ 24.0 million in 4Q21 compared to a loss of $ 64.5 million in 4Q20. Had IAS 29 not been applied, and compared to 4Q19, Net financial loss increased 26.4%, or $ 16.6 million, to $ 79.4 million, mainly driven by higher net interest expenses resulting from higher outstanding debt.
4Q21 as reported
4Q20 as reported
% Var as reported
IAS 29
4Q21 ex IAS 29
4Q20 ex IAS 29
% Var ex IAS 29
Financial Income
4.8
9.1
-47.2%
-4.7
9.5
8.9
7.2%
Interest income
0.8
2.1
-63.5%
0.2
0.5
2.0
-72.2%
Foreign exchange income
0.3
2.1
-87.1%
-4.9
5.2
1.9
166.9%
Other
3.8
4.9
-23.3%
0.0
3.8
4.9
-24.0%
Inflation adjustment
4.1
-9.9
-141.2%
3.9
0.2
-0.2
-202.9%
Inflation adjustment
4.1
-9.9
-141.2%
3.9
0.2
-0.2
-202.9%
Financial Loss
-32.8
-63.7
-48.5%
56.2
-89.0
-120.4
-26.1%
Interest Expenses
-28.9
-32.1
-9.9%
-0.7
-28.3
-32.2
-12.3%
Foreign exchange transaction expenses
28.7
-1.2
-2445.1%
56.9
-28.2
-57.2
-50.7%
Changes in liability for concessions
-30.1
-28.6
5.5%
-
-30.1
-28.6
5.5%
Other expenses
-2.4
-1.8
34.5%
-
-2.4
-2.4
1.5%
Financial Loss, Net
-24.0
-64.5
-62.8%
55.4
-79.4
-111.7
-29.0%
See “ Use of Non-IFRS Financial Measures ” on page 27.
Income Tax Expense
During 4Q21, the Company reported an income tax expense of $ 38.5 million. Excluding the impact of IAS 29, CAAP reported an income tax expense of $ 7.0 million compared to income tax benefit of $ 30.5 million in the year ago quarter and an expense of $ 13.3 million in 4Q19. Income tax expense in the quarter reflected better year-over-year results.
Net Income and Net Income Attributable to Owners of the Parent
During 4Q21, CAAP reported a Net Loss of $ 0.2 million compared to a Net Loss of $ 47.6 million in 4Q20, mainly explained by: ( i) operating income of $ 60.4 million in 4Q21 versus $ 5.3 million in 4Q20, and ( ii) lower net financial losses, partially offset by ( iii) higher income tax expenses.
During 4Q21, the Company reported a Net Loss Attributed to Owners of the Parent of $ 22.3 million and a loss per common share of $ 0.14, compared with a Net Loss Attributable to Owners of the Parent of $ 38.8 million in 4Q20 equivalent to a loss per common share of $ 0.24. In 4Q19, the Company reported a Net Loss Attributed to Owners of the Parent of $ 37.3 million and a loss per common share of $ 0.23.
Consolidated Financial Position
As of December 31, 2021, cash and cash equivalents amounted to $ 375.8 million, increasing 72.3%, or $ 157.7 million, from the $ 218.1 million reported as of September 30, 2021, and improving 33.7%, or $ 94.8 million, from the $ 281.0 million reported as of December 31, 2020. Total liquidity position at December 31, 2021, which included cash and cash equivalents as well as other financial assets, was $ 451.1 million, up $ 154.2 million, or 51.9%, from $ 296.9 million at September 30, 2021.
Total Debt at the close of the fourth quarter increased 7.0%, or $ 94.8 million, to $ 1,439.6 million, from $ 1,344.8 million as of December 31, 2020. An amount of $ 912.2 million, or 63.4% of total debt is denominated in U.S. dollars, while $ 264.6 million, or 18.4%, is denominated in Euros, $ 221.8 million, or 15.4%, is in Brazilian Reals, $ 40.7 million, or 2.8%, is in Argentine Pesos, and $ 0.3 million is denominated in Armenian Drams.
The Net Debt to LTM Adjusted EBITDA ( excluding impairment of intangible assets) ratio stood at 7.11x as of December 2021, down from 14.02x as of December 2020, reflecting the year-over-year Adjusted EBITDA growth, supported by traffic recovery and tight cost control measures. As of December 31, 2021, all of CAAP’ s subsidiaries were in compliance with their covenants.
Consolidated Debt Indicators ( in US $ million)
As of Dec 31, 2021
As of Dec 31, 2020
Leverage
Total Debt / LTM Adjusted EBITDA ( Times) 1,3
9.64x
98.95x
Total Net Debt / LTM Adjusted EBITDA ( Times) 2,3, 4
7.12x
78.28x
Total Net Debt / LTM Adjusted EBITDA ( Times) 2,3,5
7.11x
14.02x
Total Debt
1,439.6
1,344.8
Short-Term Debt
421.3
216.4
Long-Term Debt
1,018.3
1,128.4
Cash & Cash Equivalents
375.8
281.0
Total Net Debt3
1,063.8
1,063.8
1)
The Total Debt to EBITDA Ratio is calculated as CAAP’ s interest-bearing liabilities divided by its EBITDA.
2)
The Total Net Debt to EBITDA Ratio is calculated as CAAP’ s interest-bearing liabilities minus Cash & Cash Equivalents, divided by its EBITDA.
3)
The Total Net Debt is calculated as Total Debt minus Cash & Cash Equivalents.
4)
LTM Adjusted EBITDA as of December 31, 2021 was $ 149.3 million.
5)
LTM Adjusted EBITDA excluding impairment of intangible assets as of December 31, 2021 was $ 149.7 million.
Total Debt by Segment ( in US $ million)
As of Dec 31, 2021
As of Dec 31, 2020
Argentina
625.3
530.8
Italy ( 1)
232.4
256.7
Brazil ( 2)
221.8
241.8
Uruguay
274.1
222.4
Armenia
63.1
64.8
Ecuador
22.9
28.2
Total
1,439.6
1,344.8
1
Of which approximately $ 164 million remain at Toscana Aeroporti level.
2
Of which approximately $ 206 million remain at Inframérica Concessionaria do Aeroporto de Brasilia level.
Maturity of borrowings:
1 year or less
1 - 2 years
2 – 5 years
Over 5 years
Total
Debt service ( 1)
524.3
233.0
500.2
711.7
1,969.2
1
The amounts disclosed in the table are undiscounted cash flows of principal and estimated interest. Variable interest rate cash flows have been estimated using variable interest rates applicable at the end of the reporting period.
Maturity of borrowings - Breakdown by segment ( in USD) as of December 31, 2021:
Segment
Currency
1 year or less
1 - 2 years
2 – 5 years
Over 5 years
Total
Argentina
Principal
USD
119.9
65.1
103.1
312.1
600.2
Interest
USD
42.2
37.1
94.4
68.4
242.1
Principal
ARS
0.0
19.2
19.2
-
38.5
Interest
ARS
19.2
15.4
5.9
-
40.5
Italy
Principal
EUR
57.2
27.6
143.9
3.2
232.0
Interest
EUR
5.0
4.8
6.6
0.0
16.4
Brazil
Principal
R $
206.9
1.2
3.7
8.7
220.5
Interest
R $
18.6
1.2
2.9
2.6
25.3
Uruguay
Principal
USD
2.7
6.2
39.5
238.6
287.1
Interest
USD
18.7
18.8
53.6
78.0
169.1
Armenia
Principal
USD
11.2
13.3
7.4
-
31.9
Interest
USD
1.8
1.1
0.2
-
3.1
Principal
DRAM
0.3
-
-
-
0.3
Interest
DRAM
0.0
-
-
-
0.0
Principal
EUR
11.7
13.9
7.7
-
33.2
Interest
EUR
1.8
1.1
0.2
-
3.1
Ecuador
Principal
USD
5.8
5.9
10.9
-
22.6
Interest
USD
1.4
1.0
0.9
-
3.3
Total
524.3
233.0
500.2
711.7
1,969.2
Pro-Forma Maturity of borrowings - Breakdown by segment ( in USD) as of December 31, 2021:
Segment
Currency
1 year or less
1 - 2 years
2 – 5 years
Over 5 years
Total
Argentina
Principal
USD
106.5
67.1
105.1
312.1
590.8
Interest
USD
42.5
37.4
94.5
68.4
242.8
Principal
ARS
0.0
24.0
23.9
-
47.9
Interest
ARS
22.8
19.3
7.4
-
49.6
Italy
Principal
EUR
57.2
27.6
143.9
3.2
232.0
Interest
EUR
5.0
4.8
6.6
0.0
16.4
Brazil
Principal
R $
14.5
12.1
42.8
151.4
220.8
Interest
R $
18.6
17.6
45.9
51.3
133.5
Uruguay
Principal
USD
2.7
6.2
39.5
238.6
287.1
Interest
USD
18.7
18.8
53.6
78.0
169.1
Armenia
Principal
USD
11.2
13.3
7.4
-
31.9
Interest
USD
1.8
1.1
0.2
-
3.1
Principal
DRAM
0.3
-
-
-
0.3
Interest
DRAM
0.0
-
-
-
0.0
Principal
EUR
11.7
13.9
7.7
-
33.2
Interest
EUR
1.8
1.1
0.2
-
3.1
Ecuador
Principal
USD
5.8
5.9
10.9
-
22.6
Interest
USD
1.4
1.0
0.9
-
3.3
Total
322.6
271.2
590.6
903.1
2,087.4
Cash by Segment ( in US $ million)
As of Dec 31, 2021
As of Dec 31, 2020
Argentina
158.9
61.6
Italy ( 1)
66.3
99.8
Brazil ( 2)
13.4
13.3
Uruguay
22.0
13.4
Armenia
44.7
18.9
Ecuador
10.8
19.2
Intermediate holding Companies
59.7
54.8
Total
375.8
281.0
1)
Of which approximately $ 61.3 million remain at Toscana Aeroporti level.
2)
Of which approximately $ 11.9 million remain at Inframérica Concessionaria do Aeroporto de Brasilia level.
CAPEX
During 4Q21, CAAP made capital expenditures of $ 24.0 million, a 40.3% YoY decline from $ 40.2 million in 4Q20, mainly reflecting lower investments in Argentina during the quarter, in line with the Company´s strategy of preserving liquidity in the current environment. Excluding IAS29, total Capex amounted to $ 23.1 million versus $ 33.8 million in the year ago period.
Review of Segment Results
Argentina
Starting in 3Q18, reported numbers are presented applying Hyperinflation accounting for the Company’ s Argentinean subsidiaries, in accordance with IAS 29, as explained above. The following table presents the impact from Hyperinflation accounting under the column ‘ IAS 29’, while the columns indicated with “ ex IAS 29 ” present results calculated without the impact from Hyperinflation accounting. The impact of IAS 29 is presented only for AA2000, the Company’ s largest subsidiary in Argentina, which accounted for over 95% of passenger traffic, revenues and Adjusted EBITDA of the Argentina segment in 4Q21.
4Q21 as reported
4Q20 as reported
% Var as reported
IAS 29
4Q21 ex IAS 29
4Q20 ex IAS 29
% Var ex IAS 29
OPERATING STATISTICS
Domestic Passengers ( in millions) ( 1)
4.5
0.5
719.9%
4.5
0.5
719.9%
International Passengers ( in millions) ( 1)
1.0
0.3
211.7%
1.0
0.3
211.7%
Transit Passengers ( in millions) ( 1)
0.2
0.0
266.3%
0.2
0.0
266.3%
Total Passengers ( in millions) ( 1)
5.6
0.9
522.6%
5.6
0.9
522.6%
Cargo Volume ( in thousands of tons)
50.7
41.2
23.0%
50.7
41.2
23.0%
Total Aircraft Movements ( in thousands)
76.9
31.8
142.2%
76.9
31.8
142.2%
FINANCIAL HIGHLIGHTS
Aeronautical Revenue
37.2
12.9
189.1%
0.6
36.7
13.4
174.7%
Non-aeronautical revenue
71.7
59.3
20.9%
-0.4
72.1
62.8
15.0%
Commercial revenue
62.2
37.8
64.7%
2.1
60.1
38.2
57.6%
Construction service revenue
9.5
21.5
-55.9%
-2.5
12.0
24.6
-51.2%
Total Revenue
108.9
72.2
50.9%
0.1
108.8
76.1
43.0%
Total Revenue Excluding IFRIC12 ( 2)
99.5
50.7
96.3%
2.6
96.8
51.5
88.0%
Cost of Services
80.8
76.2
6.1%
7.6
73.2
65.3
12.2%
Selling, general and administrative expenses
13.5
11.3
19.9%
5.0
8.5
11.1
-22.8%
Other expenses
0.5
0.2
215.1%
0.1
0.4
0.1
159.4%
Total Costs and Expenses
94.8
87.6
8.3%
12.7
82.2
76.5
7.4%
Total Costs and Expenses Excluding IFRIC12 ( 3)
85.4
66.1
29.3%
15.2
70.2
51.9
35.3%
Adjusted Segment EBITDA
31.0
9.7
219.3%
1.0
30.0
9.3
223.5%
Adjusted Segment EBITDA Mg
28.5%
13.4%
1,501
-
27.6%
12.2%
1,540
Adjusted EBITDA Margin excluding IFRIC 12 ( 4)
31.1%
19.2%
1,198
-
31.0%
18.0%
1,297
Capex
12.9
31.0
-58.4%
0.9
12.0
24.6
-51.2%
1)
See Note 1 in Table `` Operating & Financial Highlights ”
2)
Excludes Construction Service revenue.
3)
Excludes Construction Service cost.
4)
Excludes the effect of IFRIC 12 with respect to the construction or improvements to assets under the concession, and is calculated by dividing EBITDA by total revenues less Construction Service revenue.
2021 as reported
2020 as reported
% Var as reported
IAS 29
2021 ex IAS 29
2020 ex IAS 29
% Var ex IAS 29
OPERATING STATISTICS
Domestic Passengers ( in millions) ( 1)
10.8
6.3
72.3%
10.8
6.3
72.3%
International Passengers ( in millions) ( 1)
2.0
3.3
-40.0%
2.0
3.3
-40.0%
Transit Passengers ( in millions) ( 1)
0.5
0.4
24.7%
0.5
0.4
24.7%
Total Passengers ( in millions) ( 1)
13.3
10.0
33.3%
13.3
10.0
33.3%
Cargo Volume ( in thousands of tons)
174.4
143.9
21.2%
174.4
143.9
21.2%
Total Aircraft Movements ( in thousands)
227.3
155.6
46.1%
227.3
155.6
46.1%
FINANCIAL HIGHLIGHTS
Aeronautical Revenue
94.9
106.7
-11.1%
7.4
87.5
111.2
-21.3%
Non-aeronautical revenue
268.0
243.3
10.2%
21.9
246.1
254.3
-3.2%
Commercial revenue
214.5
147.5
45.4%
20.5
194.0
150.4
29.0%
Construction service revenue
53.5
95.8
-44.1%
1.3
52.2
103.9
-49.8%
Total Revenue
362.9
350.0
3.7%
29.2
333.6
365.4
-8.7%
Total Revenue Excluding IFRIC12 ( 2)
309.4
254.2
21.7%
27.9
281.5
261.5
7.6%
Cost of Services
326.8
380.0
-14.0%
66.5
260.3
319.9
-18.6%
Selling, general and administrative expenses
38.5
38.2
0.8%
8.1
30.4
38.0
-19.9%
Other expenses
14.9
2.7
459.2%
1.7
13.2
2.0
571.9%
Total Costs and Expenses
380.2
420.9
-9.7%
76.3
303.9
359.8
-15.5%
Total Costs and Expenses Excluding IFRIC12 ( 3)
326.8
325.2
0.5%
74.9
251.8
256.0
-1.6%
Adjusted Segment EBITDA
65.6
50.7
29.2%
6.5
59.0
52.7
12.1%
Adjusted Segment EBITDA Mg
18.1%
14.5%
357
-
17.7%
14.4%
329
Adjusted EBITDA Margin excluding IFRIC 12 ( 4)
21.1%
19.9%
123
-
20.9%
20.1%
85
Capex
53.5
95.8
-44.1%
1.3
52.2
103.9
-49.8%
1)
See Note 1 in Table `` Operating & Financial Highlights ”
2)
Excludes Construction Service revenue.
3)
Excludes Construction Service cost.
4)
Excludes the effect of IFRIC 12 with respect to the construction or improvements to assets under the concession, and is calculated by dividing EBITDA by total revenues less Construction Service revenue.
Passenger Traffic increased 5.2x YoY in 4Q21, reflecting the recovery in passenger traffic as travel restrictions were much tougher in the corresponding year ago period, and was 47.5% below 4Q19 pre-pandemic levels. This result reflected a strong quarterly sequential improvement from the 72.1% decline in traffic recorded in 3Q21 ( vs. 3Q19), helped by better sanitary conditions in the country and the re-opening of borders to all foreigners on November 1, 2021. Domestic passenger traffic, which accounted for 80% of total traffic in the quarter, increased 7.2x YoY, as domestic travel continued to recover, but was 36.6% below 4Q19 levels showing, however, a strong sequential improvement.
Revenues increased 50.9% YoY to $ 108.9 million in 4Q21 on an ‘ As reported’ basis or 43.0% to $ 108.8 million when excluding the impact of rule IAS29, primarily due to a significant increase in Aeronautical revenues, reflecting higher year-over-year activity and easier passenger traffic comparisons, as 4Q20 was severely impacted by the Covid-19 pandemic. This was partially offset by lower construction revenues as a result of lower Capex in the quarter. When compared to 4Q19 and excluding both Construction Service and the impact of IAS 29, revenues declined 34.1%, or $ 50.2 million to $ 96.8 million, mainly impacted by the pandemic and the FX translation effect on local currency revenues resulting from the 69.4% average depreciation of the Argentine peso since 4Q19.
Total Costs and Expenses increased 8.3% YoY to $ 94.8 million in 4Q21 on an ‘ As reported’ basis, mainly reflecting increases of 6.1% in Cost of Services and 19.9% in SG & A, in line with higher year-over-year activity. Excluding Construction Service and the impact of IAS 29, Total Cost and Expenses increased 35.3% YoY, due to the rise in operating costs following traffic recovery from the minimum levels posted in the same period of last year. When compared to 4Q19, however, Total Cost and Expenses excluding the impact of rule IAS 29 and Construction Services declined 35.9%, or $ 39.3 million, primarily due to lower operating expenses and Concession Fees.
Adjusted Segment EBITDA increased $ 21.3 million YoY to $ 31.0 million in 4Q21 on an ‘ As reported basis’. When excluding the impact of IAS 29, Adjusted Segment EBITDA was $ 30.0 million with Adjusted EBITDA margin EX-IFRIC12 of 31.0% in the quarter, compared to 18.0% in 4Q20. Compared to pre-pandemic levels of 4Q19, Adjusted EBITDA excluding IAS 29 declined 40.0%, or $ 20.1 million from $ 50.1 million, while Adjusted EBITDA margin EX-IFRIC12 contracted 3.0 percentage points from 34.0%.
During 4Q21, CAAP made Capital Expenditures ex-IAS29 of $ 12.0 million, compared to $ 24.6 million in 4Q20 and $ 69.4 million in 4Q19, mainly related to expansion works at Aeroparque Airport.
Italy
4Q21
4Q20
% Var.
2021
2020
% Var.
OPERATING STATISTICS
Domestic Passengers ( in millions)
0.4
0.1
206.8%
1.0
0.7
46.7%
International Passengers ( in millions)
0.7
0.1
538.4%
1.8
1.3
40.7%
Transit Passengers ( in millions)
0.0
0.0
923.6%
0.0
0.0
166.4%
Total Passengers ( in millions)
1.1
0.2
371.1%
2.8
2.0
42.7%
Cargo Volume ( in thousands of tons)
4.4
3.8
16.7%
15.3
13.3
15.6%
Total Aircraft Movements ( in thousands)
13.2
5.4
146.3%
39.6
30.2
31.2%
FINANCIAL HIGHLIGHTS
Aeronautical Revenue
13.6
5.4
150.0%
37.5
29.4
27.6%
Non-aeronautical revenue
10.3
11.1
-6.9%
33.0
28.9
14.0%
Commercial revenue
6.1
4.9
22.8%
17.1
16.8
1.7%
Construction service revenue
3.4
5.2
-34.5%
13.7
10.4
31.9%
Other revenue
0.9
0.9
-9.2%
2.2
1.8
26.3%
Total Revenue
23.9
16.5
44.7%
70.5
58.3
20.8%
Total Revenue Excluding IFRIC12 ( 1)
20.5
11.3
81.2%
56.8
48.0
18.4%
Cost of Services
24.4
21.6
12.9%
83.2
72.2
15.2%
Selling, general and administrative expenses
3.7
5.4
-32.1%
13.1
14.4
-9.6%
Other Expenses
0.1
-0.5
-113.5%
0.4
0.0
-2104.3%
Total Costs and Expenses
28.1
26.5
6.2%
96.6
86.6
11.5%
Total Costs and Expenses Excluding IFRIC12 ( 2)
25.7
21.0
22.5%
84.9
77.4
9.7%
Adjusted Segment EBITDA
11.8
4.8
146.7%
0.2
-4.3
-104.7%
Adjusted Segment EBITDA Mg
49.5%
29.0%
2046
0.3%
-7.3%
762
Adjusted EBITDA Margin excluding IFRIC 12 ( 3)
52.6%
44.6%
802
-3.2%
-11.4%
823
Capex
5.9
7.1
-17.0%
19.9
13.8
44.0%
1
Excludes Construction Service revenue.
2
Excludes Construction Service cost.
3
Excludes the effect of IFRIC 12 with respect to the construction or improvements to assets under the concession, and is calculated by dividing EBITDA by total revenues less Construction Service revenue.
Passenger Traffic in Italy increased 3.7x YoY reflecting a recovery in passenger traffic, from the 87.2% decline in 4Q20 due to air travel restrictions introduced to contain the spread of the Covid-19 pandemic. However, passenger traffic was 39.8% below pre-pandemic levels of 4Q19, reflecting a quarterly sequential improvement from the 49.8% decrease recorded in 3Q21 ( vs. 3Q19) benefiting from higher demand during the European summer season and better sanitary conditions in the region. Domestic traffic was down 20.0% compared to 4Q19, while international traffic was 46.4% below 4Q19, improving sequentially from the 57.7% drop in 3Q21. Throughout the quarter and compared to the same month in 2019, traffic declined 41.1% in October, 34.9% in November and 43.0% in December, when traffic was impacted by weaker demand caused by the emergence of the Omicron variant.
Revenues increased 44.7% YoY to $ 23.9 million in 4Q21, mainly driven by increases in Aeronautical revenues, reflecting higher year-over-year activity and easier comparisons against 4Q20, which was significantly impacted by the Covid-19 pandemic. Commercial revenues grew 22.8% YoY, mainly driven by passenger-related services such as Parking facilities, VIP lounges and Duty free shops, following the strong year-over-year traffic recovery. When compared to 4Q19, revenues excluding Construction service declined 38.1%, or $ 12.6 million, to $ 20.5 million, principally due to lower passenger traffic due to the Covid-19 pandemic.
Total Costs and Expenses increased 6.2% YoY, or $ 1.6 million, in 4Q21 driven by higher Cost of Services, partially offset by lower SG & A. Excluding Construction Service, Total Cost and Expenses rose 22.5% YoY to $ 25.7 million, due to an increase in operating costs following higher airport activity when compared to 4Q20. By contrast, against the same quarter of 2019, Total Cost and Expenses declined 15.1%, or 13.4% when excluding Construction Services, primarily due to lower operating expenses and Concession Fees, partially offset by the appreciation of the euro against the US dollar.
Adjusted Segment EBITDA increased $ 7.0 million YoY to $ 11.8 million in 4Q21, supported by traffic growth, cost reductions and a Eur. 9.5 million government grant, as part of the overall Eur. 800 million sovereign fund to support the airport sector in the country. Against pre-pandemic levels, Adjusted EBITDA increased by $ 4.5 million from $ 7.3 million in 4Q19, with Adjusted Segment EBITDA margin ex-IFRIC12 expanding to 52.6%, from 20.3% in 4Q19.
During 4Q21, CAAP made Capital Expenditures of $ 5.9 million, compared to $ 7.1 million in 4Q20 and $ 7.4 million in 4Q19.
Brazil
4Q21
4Q20
% Var.
2021
2020
% Var.
OPERATING STATISTICS
Domestic Passengers ( in millions)
2.7
1.9
48.2%
7.8
5.6
39.1%
International Passengers ( in millions) ( 1)
0.1
0.0
380.5%
0.1
0.2
-50.4%
Transit Passengers ( in millions) ( 1)
1.4
1.2
16.7%
4.4
3.3
34.4%
Total Passengers ( in millions) ( 1)
4.2
3.0
37.2%
12.3
9.1
35.5%
Cargo Volume ( in thousands of tons)
14.9
10.2
45.1%
60.0
34.9
72.2%
Total Aircraft Movements ( in thousands)
37.0
27.7
33.6%
117.9
89.4
31.8%
FINANCIAL HIGHLIGHTS
Aeronautical Revenue
8.2
5.6
45.3%
24.1
20.9
15.5%
Non-aeronautical revenue
9.8
6.9
42.9%
34.3
30.5
12.5%
Commercial revenue
9.8
6.9
42.9%
34.3
30.5
12.5%
Total Revenue
18.1
12.5
44.0%
58.4
51.4
13.7%
Cost of Services
15.3
14.2
7.7%
59.2
60.8
-2.6%
Selling, general and administrative expenses
2.0
2.2
-10.4%
8.4
11.3
-26.2%
Other expenses
0.7
1.1
-33.3%
2.2
29.7
-92.6%
Total Costs and Expenses
18.0
17.5
2.9%
69.8
101.8
-31.5%
Adjusted Segment EBITDA
26.2
31.8
-17.6%
19.0
-6.5
-390.5%
Adjusted Segment EBITDA Mg
145.3%
253.9%
-10866
32.5%
-12.7%
4517
Capex
0.7
0.2
269.7%
1.8
3.2
-43.0%
Note: This segment does not include the effects of IFRIC 12 with respect to the construction or improvements to assets under the concession.
1)
Preliminary data on 1,256 in January and 195 in February 2020 at Brasilia Airport, due to delays in the submission of information by third parties. Moreover, starting November 2019 the Company has reclassified its passenger traffic figures for Brasilia Airport between international, domestic and transit retroactively since June 2018 to return to the count methodology utilized until May 2018. Notwithstanding, total traffic figures remain unchanged.
Passenger Traffic increased 37.2% YoY reflecting a recovery in traffic from the 40.4% decline in 4Q20 due to the Covid-19 pandemic. Compared to the same quarter of 2019, however, passenger traffic dropped 18.3% in 4Q21, improving from the declines of 26.1% in 3Q21 and 52.9% in 2Q21, reflecting higher activity due to lower travel restrictions and better sanitary conditions in the country. Domestic passenger traffic, which accounted for 66% of total traffic in the quarter, was up 48.2 YoY and stood at almost 90% of 4Q19 pre-pandemic levels, while transit passengers accounted for the remaining 33% of total traffic and increased 16.7% YoY and dropped 22.1% against 4Q19. Throughout the quarter, passenger traffic declined 20.9% in October, 20.7% in November, and 13.5% in December, compared to the same month of 2019, still impacted by the pandemic but improving strongly month over month.
Revenues increased 44.0% YoY to $ 18.1 million in 4Q21 due to higher aeronautical and commercial revenues reflecting higher year-over-year activity as 4Q20 was significantly impacted by the Covid-19 pandemic. When compared to 4Q19, revenues declined 39.8%, or $ 12.0 million, mainly reflecting lower aeronautical and commercial activities resulting from the drop in passenger traffic, and to a lesser extent, the 35.7% average depreciation of the Brazilian real against the US dollar since 4Q19.
Total Costs and Expenses increased 2.9% YoY to $ 18.0 million but declined 73.0% against pre-pandemic levels of 4Q19, when the Company recorded a $ 42.8 million one-time impairment charge of the Natal airport intangible assets, in accordance with accounting rules.
Adjusted Segment EBITDA decreased $ 5.6 million YoY to $ 26.2 million in 4Q21 and benefited from an economic compensation of $ 25.5 million obtained from the government in connection with the economic re-equilibrium of the Brasilia concession to offset the COVID-19 impact during 2021. To note, the economic compensation received in 2020 amounted to $ 36.6 million. Compared to 4Q19, Adjusted EBITDA improved significantly from negative $ 32.8 million, which included the aforementioned $ 42.8 million impairment loss at the Natal airport.
During 4Q21, CAAP made Capital Expenditures for $ 0.7 million, compared with $ 0.2 million in 4Q20 and $ 2.3 million in 4Q19.
Uruguay
4Q21
4Q20
% Var.
2021
2020
% Var.
OPERATING STATISTICS
Domestic Passengers ( in millions)
0.0
0.0
369.1%
0.0
0.0
207.4%
International Passengers ( in millions)
0.3
0.1
411.6%
0.5
0.6
-20.2%
Transit Passengers ( in millions)
0.0
0.0
64.3%
0.0
0.0
14.3%
Total Passengers ( in millions)
0.3
0.1
408.5%
0.5
0.6
-19.9%
Cargo Volume ( in thousands of tons) ( 1)
8.4
6.8
22.6%
30.4
28.9
5.3%
Total Aircraft Movements ( in thousands)
7.4
2.6
186.7%
17.8
13.0
36.2%
FINANCIAL HIGHLIGHTS
Aeronautical Revenue
6.6
1.5
341.0%
14.6
19.6
-25.8%
Non-aeronautical revenue
11.5
6.2
84.8%
36.7
38.7
-5.1%
Commercial revenue
10.0
5.8
70.9%
31.4
29.4
7.1%
Construction service revenue
1.6
0.4
288.9%
5.3
9.3
-43.1%
Total Revenue
18.2
7.7
134.3%
51.3
58.3
-12.0%
Total Revenue Excluding IFRIC12 ( 2)
16.6
7.3
125.8%
46.0
49.0
-6.1%
Cost of Services
8.9
7.7
15.8%
39.9
44.4
-10.0%
Selling, general and administrative expenses
2.8
2.0
39.8%
9.0
9.5
-4.7%
Other expenses
0.1
0.1
-42.3%
0.2
0.3
-29.8%
Total Costs and Expenses
11.8
9.9
19.5%
49.1
54.1
-9.2%
Total Costs and Expenses Excluding IFRIC12 ( 3)
10.2
9.5
8.0%
43.9
44.8
-2.2%
Adjusted Segment EBITDA
8.2
1.0
722.2%
13.7
16.3
-16.1%
Adjusted Segment EBITDA Mg
45.1%
12.9%
3227
26.7%
28.0%
-131
Adjusted EBITDA Margin excluding IFRIC 12 ( 4)
49.4%
13.6%
3585
29.8%
33.3%
-355
Capex
2.3
0.3
566.6%
8.1
12.0
-32.7%
1)
Cargo volumes in Uruguay were rectified from January to June 2020, to reflect all cargo passing through the cargo terminal, instead of air cargo only.
2)
Excludes Construction Service revenue.
3)
Excludes Construction Service cost.
4)
Excludes the effect of IFRIC 12 with respect to the construction or improvements to assets under the concession, and is calculated by dividing EBITDA by total revenues less Construction Service revenue.
Passenger Traffic increased 4.1x YoY reflecting higher activity and the recovery in traffic from the 90.1% decline in 4Q20 due to air travel restrictions introduced to contain the spread of the Covid-19 pandemic. Compared to 2019 pre-pandemic levels, however, passenger traffic declined 49.8% in 4Q21, improving from drops of 74.7%, 89.7% and 91.5% in 3Q21, 2Q21 and 1Q21, respectively, showing a strong sequential recovery as a result of the re-opening of borders to non-resident foreigners, on November 1, 2021. Throughout the quarter, passenger traffic declined 64.5% in October, 39.2% in November, and 45.9% in December, when compared to the same month of 2019. November traffic benefited from the hosting of relevant continental final football games.
Revenues increased 134.3% YoY to $ 18.2 million in 4Q21 on an ‘ As reported’ basis, or 125.8% when excluding Construction service revenue. Compared to 4Q19, and excluding IFRIC12, revenues declined 32.3%, or $ 7.9 million, to $ 16.6 million, primarily reflecting lower passenger traffic in the quarter.
Total Costs and Expenses increased 19.5% YoY to $ 11.8 million. Excluding Construction Service, Total Cost and Expenses rose 8.0% YoY to $ 10.2 million, due to an increase in operating costs following higher traffic activity when compared to 4Q20. By contrast, against the same quarter in 2019, Total Cost and Expenses excluding IFRIC12 declined 32.7%, or $ 5.0 million, primarily due to lower operating expenses, further supported by local currency depreciation against the US dollar.
Adjusted Segment EBITDA increased 7.2x YoY to $ 8.2 million in 4Q21, but declined 31.7%, or $ 3.8 million, when compared to 4Q19, with Adjusted EBITDA Margin Ex IFRIC12 remaining unchanged at 49.4%.
During 4Q21, CAAP made Capital Expenditures of $ 2.3 million in Uruguay, compared to $ 0.3 million in 4Q20 and $ 1.2 million in 4Q19.
Key Quarter Highlights and Subsequent Events
CAAP | Exit business in Peru
On December 17, 2021, CAAP signed an agreement to transfer its 50% ownership interest in Aeropuertos Andinos del Perú S.A. ( “ AAP ”) to Andino Investment Holding S.A. ( “ Andino ”). AAP was a joint venture between CAAP and Andino that in 2011 was awarded with the concession rights to operate the Peruvian airports located in the cities of Arequipa, Ayacucho, Juliaca, Puerto Maldonado and Tacna. Following this transaction, Andino now owns 100% of AAP.
CAAP’ s decision to no longer operate in Peru is part of a long-term strategic plan that seeks to concentrate efforts and resources towards core and relevant assets in jurisdictions with long-term meaningful growth opportunities.
AA2000 | Increase in Domestic Passenger Fees in Argentina
On December 29, 2021, CAAP announced that the Argentine airport regulator, Organismo Regulador del Sistema Nacional de Aeropuertos ( “ ORSNA ”) published Resolution No. 83/2021, approving an increase in the domestic passenger fee to ARS614 from ARS195, effective March 1, 2022.
AA2000 | Indebtedness and Issuance of New Notes
On February 2, 2022, AA2000 agreed with Citibank N.A. to modify the amortization schedule of the principal installments of the Offshore Loan originally due in February, May and August 2022. Under the new schedule, the $ 11.7 million loan will be paid in 6 equal installments maturing in February, March, May, June, August and September 2022.
Additionally, on February 21, 2022, AA2000 issued $ 174 million of dollar-linked notes, in the local market, in two tranches: ( i) $ 138 million, with an annual interest rate of 5.5%, a 5-year grace period and quarterly amortization, starting May 2027, and ( ii) $ 36 million, with an interest rate of 2%, maturing in February 2025.
AA2000 | Preferred Shares
On February 25, 2022, the Board of Directors of AA2000 resolved to redeem all of the 910,978,514 outstanding preferred shares for a total redemption value of AR $ 17,225,719,240. The sum of AR $ 11,100,000,000 will be paid once the capital reduction procedure has been completed and the period for oppositions provided for in the General Corporations Law has elapsed. The balance will be paid before December 31, 2024, with the possibility of partial payments.
For further information on subsequent events, please refer to Note 33 of the annual financial statements filed with the S.E.C, on Form 6-K.
Hyperinflation Accounting in Argentina
Following the categorization of Argentina as a country with a three-year cumulative inflation rate greater than 100%, the country is considered highly inflationary in accordance with IFRS. Consequently, starting July 1, 2018, the Company reports results of its Argentinean subsidiaries applying IFRS rule IAS 29. IAS 29 requires that results of operations in hyperinflationary economies are reported as if these economies were highly inflationary as of January 1, 2018, and thus year-to-date results should be restated adjusting for the change in general purchasing power of the local currency, using official indices, before converting the local amounts at the closing rate of the period ( i.e. December 31, 2019 closing rate for 2019 results). For comparison purposes, the impact of adopting IAS 29 in Aeropuertos Argentina 2000 ( “ AA2000 ”), the Company’ s largest subsidiary in Argentina, which accounted for over 95% of passenger traffic, revenues and Adjusted EBITDA, respectively, of the Argentina segment in 3Q21, is presented separately in each of the applicable sections of this earnings release, in a column denominated “ IAS 29 ”.
4Q21 EARNINGS CONFERENCE CALL
When:
10:00 a.m. Eastern Time, March 24, 2022
Who:
Mr. Martín Eurnekian, Chief Executive Officer
Mr. Jorge Arruda, Chief Financial Officer
Mr. Patricio Iñaki Esnaola, Head of Investor Relations
Dial-in:
1-646-904-5544 ( U.S. Local); 1-226-828-7575 ( Canada, Local); +1-929-526-1599 ( Intern.). Participant access code: 436870
Webcast:
https: //events.q4inc.com/attendee/579597509
Replay:
1-929-458-6194 ( U.S. Local); 1-226-828-7578 ( Canada, Local); +44-204-525-0658 ( Intern.). Replay access code: 302480
Use of Non-IFRS Financial Measures
This announcement includes certain references to Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Construction Service and Adjusted EBITDA Margin excluding Construction service, as well as Net Debt:
Adjusted EBITDA is defined as income for the period before financial income, financial loss, income tax expense, depreciation and amortization.
Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues.
Adjusted EBITDA excluding Construction Service ( “ Adjusted EBITDA ex-IFRIC ”) is defined as income for the period before construction services revenue and cost, financial income, financial loss, income tax expense, depreciation and amortization.
Adjusted EBITDA Margin excluding Construction Service ( “ Adjusted EBITDA Margin ex-IFRIC12 ”) excludes the effect of IFRIC 12 with respect to the construction or improvements to assets under the concession and is calculated by dividing Adjusted EBITDA excluding Construction Service revenue and cost, by total revenues less Construction service revenue.
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Construction Service and Adjusted EBITDA Margin excluding Construction Service are not measures recognized under IFRS and should not be considered as an alternative to, or more meaningful than, consolidated net income for the year as determined in accordance with IFRS or as indicators of our operating performance from continuing operations. Accordingly, readers are cautioned not to place undue reliance on this information and should note that these measures as calculated by the Company, may differ materially from similarly titled measures reported by other companies. We believe that the presentation of Adjusted EBITDA and Adjusted EBITDA excluding Construction Service enhances an investor’ s understanding of our performance and are useful for investors to assess our operating performance by excluding certain items that we believe are not representative of our core business. In addition, Adjusted EBITDA and Adjusted EBITDA excluding Construction Service are useful because they allow us to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods, capital structure or income taxes and construction services ( when applicable).
Net debt is calculated by deducting “ Cash and cash equivalents ” from total financial debt.
Figures ex-IAS 29 result from dividing nominal Argentine pesos for the Argentine Segment, by the average foreign exchange rate of the Argentine Peso against the US dollar in the period. Percentage variations ex-IAS 29 figures compare results as presented in the prior year quarter before IAS 29 came into effect, against ex-IAS 29 results for this quarter as described above. For comparison purposes, the impact of adopting IAS 29 in Aeropuertos Argentina 2000, the Company’ s largest subsidiary in Argentina, is presented separately in each of the applicable sections of this earnings release, in a column denominated “ IAS 29 ”. The impact from “ Hyperinflation Accounting in Argentina ” is described in more detail page 24 of this report.
Definitions and Concepts
Commercial Revenues: CAAP derives commercial revenue principally from fees resulting from warehouse usage ( which includes cargo storage, stowage and warehouse services and related international cargo services), services and retail stores, duty free shops, car parking facilities, catering, hangar services, food and beverage services, retail stores, including royalties collected from retailers’ revenue, and rent of space, advertising, fuel, airport counters, VIP lounges and fees collected from other miscellaneous sources, such as telecommunications, car rentals and passenger services.
Construction Service revenue and cost: Investments related to improvements and upgrades to be performed in connection with concession agreements are treated under the intangible asset model established by IFRIC 12. As a result, all expenditures associated with investments required by the concession agreements are treated as revenue generating activities given that they ultimately provide future benefits, and subsequent improvements and upgrades made to the concession are recognized as intangible assets based on the principles of IFRIC 12. The revenue and expense are recognized as profit or loss when the expenditures are performed. The cost for such additions and improvements to concession assets is based on actual costs incurred by CAAP in the execution of the additions or improvements, considering the investment requirements in the concession agreements. Through bidding processes, the Company contracts third parties to carry out such construction or improvement services. The amount of revenues for these services is equal to the amount of costs incurred plus a reasonable margin, which is estimated at an average of 3.0% to 5.0%. | general |
energyware™ Helps Clients Begin Journey to Achieve LEED | NEW YORK, March 23, 2022 ( GLOBE NEWSWIRE) -- In the U.S., residential and commercial buildings account for nearly 40% of the country's carbon dioxide emissions. Green buildings, like those that are Leadership in Energy and Environmental Design ( LEED) certified, are critical in reducing these harmful emissions and waste; conserving water; and lowering exposure to toxins. energyware™, a leading national provider of energy efficiency technology, plays a pivotal role in helping organizations achieve a clean energy future through its variety of offerings.
energyware™ reduces and/or eliminates electricity, water, and gas bills for its clients through its energy efficiency technology, including solar and LED smart lighting. To date, it has installed hundreds of thousands of its projects across 35 states and counting. energyware™ provides turnkey solar solutions ― including carports, rooftops, ground-mount, and energy storage systems ― with its solar team specializing in designing and installing commercial and industrial solar power systems. The company's LED smart lighting solutions also can preserve and improve employee health while yielding significant energy savings at the same time.
`` At energyware™, we're proud to serve as a partner to organizations as they embark on their journey to achieving LEED certification, '' said Jon Novaro, energyware™. `` Our robust portfolio of offerings lays the framework for energy-efficient, cost-saving green buildings which, in turn, helps create a cleaner energy future for everyone. ''
As the workforce continues to return to the office following the COVID-19 pandemic, providing employee incentives like health and safety is a top priority for most companies. LEED certification is not only beneficial from an economic perspective, as it generates energy efficiency savings, but it also creates a healthier environment for those occupying a facility. These appealing employee health benefits include cleaner air, access to daylight, and avoiding the harmful chemicals often found in paints and finishings.
To achieve LEED certification, a project earns points by adhering to prerequisites and credits that address carbon, energy, waste, transportation, materials, health, and indoor environmental quality. Projects then go through a verification and review process by Green Business Certification Inc. ( GBCI) and are awarded points that correspond to a level of LEED certification, with Platinum being the top tier with more than 80 points earned.
energyware™ has emerged as a one-stop-shop for businesses seeking energy efficiency solutions. By offering a wide range of options for businesses looking to conserve energy costs, energyware™ has been able to successfully position itself as an industry leader in the energy efficiency space.
To learn more, visit https: //energywarellc.com.
A national provider of energy efficiency technology, energyware™ eliminates the guesswork of energy efficiency by bringing engineers, designers, best in breed manufacturing, and trained energy technology installers all under one umbrella. To learn more, visit www.energywarellc.com.
This content was issued through the press release distribution service at Newswire.com. | general |
Amid Women’ s History Month, E * TRADE from Morgan Stanley Study Reveals Confidence Boost in Investing Decisions Among Females | As COVID restrictions ease, more rely on mobile apps to trade on-the-go
( Graphic: Business Wire)
( Graphic: Business Wire)
ARLINGTON, Va. -- ( BUSINESS WIRE) -- E * TRADE from Morgan Stanley today announced results from the most recent wave of StreetWise, the E * TRADE quarterly tracking study of experienced investors and traders. In recognition of Women’ s History Month, the study looked at female trading trends:
“ While historically many tended to associate trading the markets with men, the reality is that today there’ s a whole new generation of female investors and traders who are tackling the market on their own terms, ” said Mary Ryan, Executive Director of Trading at E * TRADE from Morgan Stanley. “ The switch has been flipped on the narrative around trading being a male-dominated practice, and as an industry we must lean into this trend. Delivering intuitive, seamless, and useful tools is key. ”
Ms. Ryan offered additional insights to female investors as they continue their trading journeys:
About the Survey
This wave of the survey was conducted from January 3 to January 11 of 2022 among an online US sample of 901 self-directed active investors who manage at least $ 10,000 in an online brokerage account. The survey has a margin of error of ±3.20 percent at the 95 percent confidence level. It was fielded and administered by Dynata. The panel is broken into thirds of active ( trade more than once a week), swing ( trade less than once a week but more than once a month), and passive ( trade less than once a month). The panel is 60% male and 40% female, with an even distribution across online brokerages, geographic regions, and age bands. The female data set comprises 359 investors.
About E * TRADE from Morgan Stanley and Important Notices
E * TRADE from Morgan Stanley provides financial services to retail customers. Securities products and services offered by E * TRADE Securities LLC, Member SIPC. Investment advisory services offered by E * TRADE Capital Management, LLC, a Registered Investment Adviser. Commodity futures and options on futures products and services offered by E * TRADE Futures LLC, Member NFA. Banking products and services are offered by Morgan Stanley Private Bank, National Association, Member FDIC. All are separate but affiliated subsidiaries of Morgan Stanley. More information is available at www.etrade.com.
The information provided herein is for general informational purposes only and should not be considered investment advice. Past performance does not guarantee future results.
E * TRADE from Morgan Stanley, E * TRADE, and the E * TRADE logo are trademarks or registered trademarks of E * TRADE from Morgan Stanley. ETFC-G
ETFC
© 2022 E * TRADE from Morgan Stanley. All rights reserved.
E * TRADE engages Dynata to program, field, and tabulate the study. Dynata provides digital research data and has locations in the Americas, Europe, the Middle East and Asia-Pacific. For more information, please go to www.dynata.com.
Referenced Data
How confident are you that you are making the right decisions for your portfolio?
Women
Q1’ 21
Q1’ 22
Top 2 Box
45%
51%
Extremely confident
12%
15%
Very confident
33%
36%
Somewhat confident
44%
40%
Only a little confident
10%
8%
Not confident at all
1%
1%
The time I devote to my portfolio has within the last three months of the pandemic.
Women
Q1’ 22
Top 2 Box
41%
Greatly increased
9%
Somewhat increased
32%
Stayed the same
51%
Somewhat decreased
6%
Greatly decreased
2%
Within the last three months of the pandemic, would you say you are trading equities...
Women
Q1’ 22
Top 2 Box
31%
Much more frequently
6%
Somewhat more frequently
25%
About the same
56%
Somewhat less frequently
8%
Much less frequently
5%
Within the last three months of the pandemic, would you say you are trading derivatives, ( i.e., options and futures)...
Women
Q1’ 22
Top 2 Box
28%
Much more frequently
7%
Somewhat more frequently
21%
About the same
55%
Somewhat less frequently
9%
Much less frequently
8%
To what extent do you agree or disagree with the following statement?
* * Investing/trading apps have positively affected the way I handle my investments. * *
Women
Q1’ 21
Q1’ 22
Top 2 Box
58%
67%
Strongly agree
21%
24%
Somewhat agree
37%
43%
Somewhat disagree
23%
16%
Strongly disagree
19%
17%
Approximately how often do you use an investing and trading app on your smart phone?
Women
Q1’ 21
Q1’ 22
Top 3 Box
44%
50%
At least once per day
11%
13%
2-3 times each week
20%
15%
About once per week
13%
22%
2-3 times each month
12%
10%
About once per month
5%
5%
Less than once per month
11%
7%
I do not have/use an investing/trading app
28%
28%
Within the last three months of the pandemic, when it comes to managing your accounts, have you found yourself... ( Top 1)
Women
Q1’ 22
More likely to seek out financial advice from an investment professional
29%
More likely to rely on a mobile app to trade
27%
None
24%
More likely to use a sophisticated software like a dedicated trading platform
13%
More likely to use an automated investment solution like a robo advisor
6%
Other
1%
To what extent do you agree or disagree with the following statement?
* * It is important to me that my brokerage's mobile app has robust capabilities that rival my brokerage's website experience. * *
Total
Q1’ 22
Agree ( Top 2 Box)
74%
Strongly agree
33%
Somewhat agree
41%
Somewhat disagree | general |
WHO says there were 64 instances of attacks on health care since Ukraine war started | Close to 7 million Ukrainians have been internally displaced in the one month of war, with one in three of them suffering from a chronic health condition, according to the global health agency.
Pressure has been mounting on medical professionals and volunteers from Ukraine and abroad to keep the country's healthcare system going, since the start of the Russian invasion.
The conflict, which began on Feb. 24, has caused more than 3.6 million refugees to flee Ukraine and already led to the unprecedented isolation of Russia's economy due to sanctions.
Limited access to medicines, healthcare facilities and staff in Ukraine is further pressuring ongoing treatments of chronic conditions, the WHO said, adding that half of the country's pharmacies were thought to be closed.
The war has also impacted COVID-19 vaccinations and routine immunizations in Ukraine, the health agency said.
Between Feb. 24 and March 15 COVID-19 vaccines were administered to 175,000 people, compared with at least 50,000 vaccinations per day before the Russian invasion, according to the WHO.
The European Centre for Disease Prevention and Control last week said refugees from Ukraine should be offered a full course of COVID-19 vaccines and booster doses, if they do not have proof of prior inoculation.
( Reporting by Manojna Maddipatla in Bengaluru; Editing by Shounak Dasgupta) | business |
Fed officials nod to big rate hikes to fight 'inflation, inflation, inflation ' | Federal Reserve policymakers on Wednesday signaled they stand ready to take more aggressive action to bring down unacceptably high inflation, including a possible half-percentage-point interest rate hike at the next policy meeting in May.
`` I have everything on the table right now. If we need to do 50 ( basis points), 50 is what we 'll do, `` San Francisco Fed President Mary Daly said at an event organized by Bloomberg. `` With the labor market so strong, inflation, inflation, inflation is top of everyone's mind. ''
Daly has often been more cautious than her colleagues about policy tightening, and her openness to a bigger-than-usual rate hike at the May 3-4 meeting shows a rising sense of urgency that swift and concerted action is needed to stop inflation, running at three times the Fed's 2% target, from getting entrenched.
Accelerating inflation `` has necessitated, I think, all of us to think more about how fast they're going to have to go in order to keep inflation under control, '' St. Louis Fed President Bullard told the Mid-Size Bank Coalition of America. `` We have to think bigger, maybe, than we thought about in the past. ''
Bullard was the lone dissenter last week on the U.S. central bank's March 16 decision to raise the benchmark overnight interest rate by a quarter of a percentage point from the near-zero level. Bullard said a half-percentage-point hike was appropriate to kick off the tightening cycle and he wants the policy rate to rise to 3% this year.
It's now clear Bullard is far from a lone voice in advocating for more aggressive action, especially given a growing sense that higher oil, wheat and other commodity prices stemming from Russia's invasion of Ukraine will only worsen the inflation picture, while doing little to dent economic growth.
Fed Chair Jerome Powell earlier this week said the central bank would move `` expeditiously '' to move interest rates up after last week's hike, and left the door wide open to a larger jump in borrowing costs at the May meeting.
Fed policymaker forecasts released last week signaled most saw the policy rate rising to 1.9% or higher by the end of the year.
`` I would like to front-load some of that, '' Cleveland Fed President Loretta Mester said on Wednesday in a call with reporters when asked about the path of interest rate increases this year. `` That better positions us if we do it earlier rather than later for what happens in the second half of the year. ''
Mester wants the federal funds rate to increase to about 2.5% by the end of the year, the level she sees as neither braking nor boosting the economy, and which would require `` some '' 50-basis-point rate rises.
Markets have taken that view on board, with traders pricing in two half-percentage-point hikes in coming meetings, and a year-end policy rate range of 2.25% -2.5%.
BALANCE SHEET REDUCTIONS
Powell, speaking to a National Association for Business Economics conference on Monday, also said May could mark the start of reductions in the central bank's nearly $ 9 trillion balance sheet, which ballooned during the COVID-19 pandemic as policymakers strove to bolster the economy.
Trimming the Fed's portfolio of Treasuries and mortgage-backed securities would put further downward pressure on inflation, providing what Daly said on Wednesday would be the equivalent of at least one quarter-percentage-point rate hike this year.
`` I think the data will tell us whether 50 basis points, or 25 basis points with the balance sheet, is the right recipe; or 50 basis points with the balance sheet, '' she said.
Daly said she thinks the federal funds rate will likely need to rise above 2.5%, but probably not until next year. Still, she said, `` we're prepared to do whatever it takes to ensure price stability, and in the wake of all of the other challenges that we have. ''
Mester also told reporters there is nothing to stop the Fed from hiking rates and beginning to reduce its balance sheet at the same policy meeting.
`` I think given the situation we're in and the communications that Chair Powell has already made about the balance sheet process, I don't have concerns that that would be destabilizing, and I think that we have to recognize inflation is very elevated, '' Mester said, noting that financial markets could handle such a move. `` We have to do what we can with both our policy tools to get inflation under control. ''
Bullard on Wednesday repeated his preference for the Fed to immediately start paring its balance sheet, with asset sales possible later on if inflation remained high. ( Reporting by Lindsay Dunsmuir and Ann Saphir; Editing by Paul Simao) | business |
Georgia gets first batch of Covid-19 pills Paxlovid | The first batch of Pfizer’ s Covid-19 pills Paxlovid has arrived in Georgia on Tuesday, Trend reports citing 1TV.
According to Health Ministry, patients would receive the pills free of charge.
Paxlovid is the most effective tool in treating COVID-19. It reduces hospitalizations in high-risk patients by around 90%.
US Food and Drug Administration ( FDA) and the European Medicines Agency ( EMA) have authorized Pfizer’ s Paxlovid. The drug is already widely used in the United States and European countries. | general |
Hong Kong Sees Mass Testing as Feasible Option Once Cases Ease | The information you requested is not available at this time, please check back again soon.
A healthcare worker wearing personal protective equipment ( PPE) directs residents at a Covid-19 testing facility operated by Phase Scientific International Ltd. in Hong Kong, China, on Friday, Feb. 25, 2022. The city, roiled by its worst outbreak since the pandemic began, saw its ranking tumble to 52nd on Bloomberg's Covid Resilience Ranking in February -- the lowest position ever occupied by a developed economy since the measure began., Bloomberg
( Bloomberg) -- Hong Kong may enact plans to mass test its residents as infections ease, the city’ s leader said.
“ During that period, once the pandemic eases to a certain level, we would look to identify the remaining cases in the community and curb the transmission chain, ” Carrie Lam said in a press briefing on Wednesday. “ By then universal testing would be a feasible option. ”
Lam also said reopening the border with mainland China remained a top priority, but there is no timetable to reopen. Talks with mainland authorities will resume once conditions permit, she said.
Lam on Monday said the government was putting the universal testing plan was on hold. Officials have shifted their focus to protecting the elderly and protecting the city’ s status as a financial hub by rolling back some Covid-Zero measures. The city is ending a ban on flights from certain countries, halving hotel quarantine for arrivals, while social distancing measures will be reduced in phases.
Canada joins U.S., U.K. in diplomatic boycott of Beijing games
Trudeau weighs auto-content rules as next U.S. trade flashpoint
Joe Natale left Rogers with a $ 14.1M golden parachute | general |
Pillow Queens on living the dream with a new album and tour of America | Pillow Queens release Leave The Light On on April 1. Picture: Rich Gilligan
The first line of Pillow Queens’ debut album In Waiting had singer Pam Connolly drawling: “ I’ m still a baby. ” On that 2020 record, the Dublin band had channeled a few years of local hype into an anthem-busting 42 minutes, tracks like 'Gay Girls ' proclaiming their manifesto, and comparisons soon being drawn to bands like Weezer and Illuminati Hotties.
Two years later, and with the follow-up album ready to go, Connolly echoes that opening line of In Waiting when discussing the successes Pillow Queens have notched up since. “ We're not a baby band, we 've been together for five-and-a-half years, but we still consider ourselves as, 'Oh, we're just trucking along '. No, we're not. We're professionals. And we 've been doing this for a while - we work really hard. It's hard to not feel like that sometimes because it feels like it has been a long journey, ” she says. “ We know that we're good enough, but we also have that self-doubt. ”
Perhaps those misgivings will be assauged by the potential reception to the release of Leave the Light On, due April 1 on Canadian indie imprint Royal Mountain Records, home to the likes of Alvvays and Mac DeMarco. The release follows on from Pillow Queens signing a publishing deal with the legendary Sub Pop label.
And while the title of In Waiting proved sadly telling, seeing the aspirations that come with an acclaimed debut album grounded by Covid-19 and confining them to their bedrooms around Dublin, Leave the Light On is released with the band halfway through a month-long US tour. That adventure began at SXSW in Austin, Texas, in mid-March, and has just seen them make their second appearance on The Late Late Show with James Corden on CBS.
How does the band, completed by Sarah Corcoran ( co-vocals, bass), Cathy McGuinness ( guitar), and Rachel Lyons ( drums), think of the past two years? “ Obviously, you don't really want to take too many positives from a global pandemic, but we did. We got so much not out of it, but during that time, we did so much, ” says Connolly. “ We're lucky that we had that creative output… during a time when people were more cooped up than we were, because we were doing things to have an excuse to get dressed up, even if it was just going to a studio and doing a stream. ”
Lyons continues: “ At one point I remember my friends saying 'Pillow Queens are our only friends in Dublin that are allowed to do anything right now. ' And that's because we were doing that - getting dressed up and going on the telly. 'Well, it's for broadcast! ' We're allowed to - literally nobody else could do anything for a while. So we had that. And that kept us going. ”
While In Waiting was recorded in snatches and blocks at erstwhile Villagers guitarist Tommy McLoughlin’ s Attica Audio studio in Donegal, Leave the Light On was done in one go at the same facility. Written in spring 2021 - very much around the strict lockdown of the blurry first five months of the year - they recorded it with McLoughlin in August.
“ It wasn't as difficult as we thought it was gon na be. We definitely were very stressed out about it, ” admits Lyons.
Another stress was physically manifested while recording in Donegal. “ I broke my arm when I was there, '' says Lyons, explaining that she accidentally fell over, and stressing that no drink had been involved. | general |
Ash Barty built a near-perfect game but never lost sight of the No.1 priority: herself | Goodbye to all that: World No.1 Ash Barty's final Grand Slam moment was also Australia's most-watched women's sporting event of all time. Pic: AP Photo/Hamish Blair
Throughout the chaotic month of January, Ash Barty burst into the new tennis season in full flow, dismantling all challengers. She scythed them with her backhand slice, out-served opponents who towered over her by half a foot or more, and continually displayed her encyclopaedic knowledge of each opponent’ s game, homing in on their weaknesses and methodically picking them apart.
In a sport where players tend to focus only on themselves, that last quality is distinct enough. But it is even more fascinating considering Barty’ s relationship with tennis. Despite the game flowing through her veins, it is not of particular interest aside from her personal ambitions and daily work. Off the court she keeps a healthy distance from it, her hobbies are elsewhere, and tennis is never on the TV when she is nearby. “ It’ s gon na be a great match, ” Barty said, when asked about the second semi-final after she reached the Australian Open final. She chuckled to herself. “ I probably won’ t watch it. ” While Barty’ s decision to retire on Wednesday at the age of just 25, as the No 1 player in the world and during such a beautiful moment in her career, is a shock on the surface, the manner of her departure fits perfectly into the way she has conducted her career.
Since 2014, when as an 18-year-old she took an indefinite break from the sport because of burnout and depression, her message has been consistent. She has worked hard, with ambition and drive, but her priorities have remained her family, personal happiness and mental wellbeing.
Barty has always done things her own way. She scheduled tournaments sparingly, always ensuring she had enough time to return home during the season and to enjoy her various sporting hobbies. When she couldn’ t compete without compromising those priorities, as in 2020 when she sat out the second half of the season during Australia’ s strictest Covid restrictions, she chose herself. | general |
Buffett Is Sitting on Occidental Warrants That Could Give Him a 23.6% Stake | The information you requested is not available at this time, please check back again soon.
( Bloomberg) -- Warren Buffett’ s Occidental Petroleum Corp. warrants are looking increasingly attractive as the share price climbs.
As part of Berkshire Hathaway Inc.’ s $ 10 billion investment in the oil company in 2019, Buffett has the option to acquire 83.86 million shares at $ 59.62 each, a level that the stock has closed above the past two days. Exercising those warrants could give Berkshire a nearly 23.6% stake in the oil company, in addition to its preferred stock. Buffett’ s firm is already Occidental’ s biggest shareholder.
“ He does have a very good track record of lending out money in times of duress for the recipient, for the borrower, and procuring these warrants, ” said Darren Pollock, whose Cheviot Value Management LLC oversees investments including Berkshire shares. “ Over time when those businesses do well, he does have this added kicker of so many additional warrants that are worth so much over time. ”
Buffett declined to comment when asked if Berkshire would exercise the warrants.
Occidental stock was up 3.1% to $ 61.50 at 8:46 a.m. before the start of regular trading in New York.
Occidental is the top performer in the S & P 500 Index this year, gaining nearly 106% at the close of trading on March 22. Rising oil prices helped the Houston-based company pay down debt more rapidly than expected, raise its dividend and restart a share-buyback program. Sanctions against Russia for its invasion of Ukraine also boosted investor appetite for U.S. shale-focused oil stocks.
The revival brought an end to a tough three years for the company, which saddled itself with debt in the 2019 purchase of rival Anadarko Petroleum Corp. for $ 37 billion, just months before Covid-19 caused oil prices to collapse.
Berkshire’ s preferred-stock bet on Occidental provided part of the funding for the Anadarko deal. Buffett has also been plowing money into Occidental in recent weeks, accumulating a stake that now ranks among Berkshire’ s top 10 common-stock holdings.
A new report from Capital Economics is warning the expected magnitude of interest rate increases from the Bank of Canada could “ topple ” the domestic housing market.
The Financial Services Regulatory Authority of Ontario says anyone using the financial planner or advisor title will soon be overseen by a credentialing body and subject to a complaints and discipline process.
The Trudeau Liberals and federal NDP's shared ambition for a national pharmacare program could shave at least two per cent off annual earnings for owners of some top pharmacy chains, according to an analyst.
An energy company backed by Indonesian tycoon Sukanto Tanoto plans to spend US $ 500 million this year on a long-planned liquefied natural gas project in Canada, the clearest signal yet that it may move ahead with an LNG export facility on the country’ s west coast. | general |
Aurora to purchase Thrive Cannabis owner TerraPharma in $ 38M deal | The stock symbol { { StockChart.Ric } } does not exist
Aurora Cannabis Inc. is bolstering its premium pot strategy by acquiring TerraFarma Inc., the parent company of Thrive Cannabis.
The deal announced Tuesday will see Thrive amalgamate with a subsidiary of Aurora, which will acquire all of TerraFarma’ s issued and outstanding shares in exchange for $ 38 million in cash and Aurora shares.
Thrive will also be eligible for up to $ 20 million in shares, cash or both, if it reaches revenue targets within two years of the transaction.
The deal — nicknamed Project Willow — will help Aurora double down on premium and craft products, so it can reach profitability by the first half of its fiscal 2023, but Aurora's chief executive said the transaction is really about harnessing Thrive's talented staff.
`` Brands are moving too fast. The consumers are moving too fast, '' said Miguel Martin.
`` The only thing that's really consistent right now is really good people and Thrive has that in spades. ''
Simcoe, Ont.-based Thrive is known for its premium craft cannabis products, which include concentrates, dried flower and sublingual strips sold under the Greybeard Cannabis Co. and Being Cannabis brands.
The company was also Ontario's first licensed producer to open a farmgate cannabis shop, where pot products are sold at the site where they’ re made.
Thrive says it decided to sell after spending nine months getting to know Aurora and its vision. Thrive wanted to be sure any deal wouldn't compromise its brands and its strong relationship with customers.
`` We aren't selling out, '' said Geoff Hoover, Thrive’ s chief executive. `` This gives us an opportunity to increase the brand awareness, to bring new products to market to reach consumers that we could never reach before. ''
Unlike most deals between large licensed producers and craft producers, Hoover's team will maintain a starring role in Thrive's operations and he will lead Aurora's recreational business, which includes the San Rafael, Drift and Whistler Cannabis brands.
`` There's no style points for San Raf winning at the expense of Whistler winning at the expense of Greybeard, so there's not that type of inherent tension, '' added Martin.
`` More things will change probably on Whistler and San Raf and Aurora Drift than we 'll change on Greybeard and Being. ''
Premium brands like Thrive’ s Greybeard have become increasingly attractive since recreational pot was legalized in Canada in 2018, when companies believed slashing prices to better compete with the illicit market would deliver profitability.
Instead, their interest in the discount segment left them operating with thin margins, declaring persistent losses and searching for ways to earn more.
Premium and craft products are seen as a potential solution because they have higher price points and loyal customer bases.
A Nov. 4 report from Deloitte Canada, BDSA and Hifyre found that craft flower experienced 158 per cent sales growth last year, despite products having prices that are between 16 and 41 per cent higher than non-craft offerings.
Martin has zeroed in on premium offerings because he feels the discount market is “ irrational. ”
The Thrive deal will deepen his bet on premium, but also signals a departure for Aurora, which has not made as dramatic or plentiful acquisitions during the COVID-19 pandemic as its rivals did.
Aurora hasn't added to its empire since it bought Reliva LLC in May 2020, but in the last few years consolidation has been happening in the industry. Competitors Tilray Inc. and Aphria Inc. merged, Hexo Corp. bought Zenabis Global Inc., Redecan and 48North Corp.
Canopy Growth Corp. snatched up Supreme Cannabis, Ace Valley Cannabis and Wana Brands.
Amid those deals, Martin said in a May earnings call, “ We don't see anything in Canada that we have got to have. Buying or renting market share, I think, right now is not a great play in Canada. ''
Martin now feels he got `` beat up a little bit '' by industry observers for taking that approach, but said, `` I wasn't in a rush because I was looking for something really specific. ''
That something specific was a cannabis company with the usual deal attractions — a strong balance sheet, product and brand — but more importantly, smart and savvy people.
`` I wanted a group of people that I wouldn't just buy in their brand, '' said Martin.
`` I was really going to have them join us on this journey and lead this piece of business for us. ''
Aurora said the transaction will provide immediate positive adjusted EBITDA and close during the company’ s fiscal fourth quarter of this year, but is subject to customary closing conditions.
This U.S. legislation is a game changer: Curaleaf executive chairman
U.S. democratic senators to unveil draft cannabis reform bill on Wednesday: Report | general |
Africa Needs Off-Grid Support to Avoid 30 Million Losing Access | The information you requested is not available at this time, please check back again soon.
A visitor inspects photovoltaic panels operating in the Sishen solar park, operated by Acciona SA, in Kathu, Northern Cape, South Africa, on Tuesday, June 2, 2015. South Africa, which has implemented rolling blackouts this year as electricity demand exceeds supply, is running a five-round program of tenders to tap new sources of energy and encourage more private companies to build power projects., Bloomberg via Getty Images
( Bloomberg) -- Off-grid power development in Africa needs support to prevent at least 30 million people from losing electricity access after disruptions related to the global pandemic caused many distributors to struggle to remain operational, according to a new report.
Solar technology and other off-grid solutions have brought power to about 60 million people over the last decade, but restrictions designed to mitigate the spread of Covid-19 slowed providers down, causing funding shortages and delays, researchers at the Smith School of Enterprise and the Environment at the University of Oxford wrote in a policy brief.
Africa, which has a population of 1.3 billion people, has an electricity access rate of just over 40%, the lowest in the world, according to the African Development Bank.
To meet a United Nations goal of universal access by 2030, further progress is needed not only in grid link-ups, but in off-grid systems using sources such as solar energy. An estimated $ 350 billion of investment will be required to accomplish that target.
Some lockdown measures in East Africa were particularly severe and initially didn’ t consider businesses in the off-grid industry essential services, according to the study. That caused some to close and held up deliveries, the researchers found, citing interviews with participants in the sector. Systems such as mini-grids are also relied upon to support health care and agriculture in areas where electricity connections are absent or unreliable.
The brief recommends developing local supply chains and strengthening regional manufacturing to once again increase electricity access in Africa. Reducing the cost of mobile money platforms for low-income and rural households may also help as companies struggle to reduce their budgets, the researchers said.
A new report from Capital Economics is warning the expected magnitude of interest rate increases from the Bank of Canada could “ topple ” the domestic housing market.
The Trudeau Liberals and federal NDP's shared ambition for a national pharmacare program could shave at least two per cent off annual earnings for owners of some top pharmacy chains, according to an analyst.
Global stocks drifted lower Wednesday as the bond market stabilized from an unprecedented rout. | general |
Shoppers can still get a $ 95 pair of prescription glasses at Warby Parker despite inflation | Warby Parker Inc. began in 2010 offering prescription glasses for $ 95 and, despite sky high inflation and other changes over the past dozen years, the company continues to offer eyeglasses for less than $ 100.
“ We launched selling prescription glasses for $ 95 and we have not changed this price point in the 12-plus years since launch, but over the years we have introduced many other products at different price points that have led to increasing average order value and improving customer economics over time, ” said Dave Gilboa, co-founder and co-chief executive of the company on its most recent earnings call, according to a FactSet transcript.
“ And as we have introduced these new price points, we have not seen them impact demand. ”
See:
Warby Parker IPO: 5 things to know about the affordable-eyeglass maker now that it has gone public
Also:
U.S. stocks pull back as Fed official calls for ‘ some’ 50 basis point rate hikes this year, oil prices push higher
Many companies across a wide spectrum, from
food companies
to
recreational vehicles
, have raised prices to manage record inflation and supply chain disruptions.
Gilboa said that the average revenue per customer has increased $ 28 to $ 246 since 2020. The increase is attributed to the shopper’ s addition of eye exams and contact lenses to their eyeglass purchase and the sale of progressive glasses, which start at $ 295 — the company’ s “ highest price point and highest product margin, ” Gilboa said. Progressive glasses, which skew to a demographic ages 45 and older, will be a focus going forward.
“ We’ re particularly excited by the fact that today progressive purchases tend to skew more towards bricks and mortar, given the complex nature of the prescription and the older customer demographic, ” said Neil Blumenthal, also a co-founder and co-CEO, on the call, according to the FactSet transcript.
“ So as we scale our retail footprint and our stores return to full productivity, we expect to see compounding growth of this product. ”
Warby Parker
WRBY,
-1.45%
has 40 brick-and-mortar stores planned for 2022, which would bring the number of locations to 201. By the end of the year, the company’ s goal is to have 154 stores providing eye exams.
The low price point attracts shoppers who probably can afford to spend more.
“ Given our customer base generally skews more affluent, we did not detect an increase in sales last year because of the federal stimulus in March and are therefore not lapping a one-time bump, ” Blumenthal said.
Also:
‘ It’ s shameful’: Nearly one-third of U.S. workers make less than $ 15 an hour
Warby Parker
reported
a wider-than-expected loss in the fourth quarter and revenue in line with the Street consensus. The company says the spread of the omicron variant had an impact during a period that is usually significant for the company.
“ Because of FSA spending in vision insurance utilization at year-end, we typically see our highest sales days of the year between Christmas and New Year’ s, ” said Gilboa on the earnings call last week.
“ This year omicron peaked during that same window in many of our biggest markets. As a result, we saw significantly lower retail foot traffic, staffing-related store closures and fewer eye exams. ”
The company says it lost $ 5 million due to omicron in the fourth quarter, and $ 15 million in the first quarter as people stayed away from stores.
“ The stock could be range bound near-term as risk factors around COVID variants and lower store traffic levels are digested, ” wrote Cowen in a note.
“ That said, Warby Parker’ s active customer growth and implementation of new categories remain core positives to our investment thesis. ”
Cowen rates Warby Parker stock outperform with a $ 38 price target.
Warby Parker stock began trading in
September 2021
through a direct listing with a $ 40 reference price. Shares jumped 7.8% in Wednesday trading, closing at $ 33.96. The stock has slumped 28.5% over the past three months.
The benchmark S & P 500 index
SPX,
+0.23%
is down 5.7% for the last three months. | business |
What’ s the Latest Economic Research on Africa? A Round-up of Human Capital Studies from CSAE 2022 | With rigorous economic research and practical policy solutions, we focus on the issues and institutions that are critical to global development. Explore our core themes and topics to learn more about our work.
In timely and incisive analysis, our experts parse the latest development news and devise practical solutions to new and emerging challenges. Our events convene the top thinkers and doers in global development.
CGD works to reduce global poverty and improve lives through innovative economic research that drives better policy and practice by the world’ s top decision makers.
This week was the Centre for the Study of African Economies’ annual conference. It included more than a hundred papers on topics ranging from bureaucracy to trade and from political economy to deforestation.
It’ s a great collection of novel work from researchers around the world, including many who are based in African countries. Much ( but far from all) of the continent was included in the research presented ( Figure 1A). Ethiopia was the African country with the most studies ( 13), Uganda had 9, and Kenya had 7. There are also many studies from non-African countries ( especially South Asia, with 14 studies from India, more than any single African country) but with relevance to policy decisions on the continent. If you missed the conference, you can read the papers!
We went through the 43 papers we identified that engaged with the topics we research ourselves: education, health, early childhood development, cash transfers, and gender. These papers represent a smaller share of the continent ( Figure 1B).
Figure 1A. Countries in at least one study in the CSAE conference
Figure 1B. Countries in at least one study among human development studies
Notes: This figure does not include studies that cover more than three countries. For example, there are several studies that use data from dozens of countries but do not focus on specific countries. They are included in the summaries below but not in the map. Non-African countries are also not included in the figure.
We provide a micro-summary of each study below. Before you dive in, here are a few notes:
Several of the papers belong in multiple categories: for example, does more education boost health? ( In Ghana, according to Aboyadana’ s analysis, it does.) Is that an education paper or a health paper? We’ ve repeated studies in multiple sections below so if you’ re focused on health, you’ ll find all the health-related papers in the health section. The second or third time a paper appears, we put an asterisk after the summary so you can skip it if you’ re reading straight through.
Our brief summaries can’ t capture either the richness of results from many papers or all the caveats that accompany a highlighted result. We’ ve linked to all the papers: if you find something interesting, go check out the paper.
Hashtags give information on the research methods used: # RCT = randomized controlled trial, # RD = regression discontinuity, # DID = difference-in-differences, # FE = fixed effects, and # PSM = propensity score matching.
Free primary education in Ghana “ led to a decrease in the probability of smoking, fertility behaviour, ” and sexually transmitted infections, and an increase in “ healthy eating, antenatal visits and the risk of obesity. ” ( Aboyadana) # RD
A survey of 900+ senior government officials in 35 low- and middle-income countries finds that policymakers largely prioritize vocational education over foundational skills ( like literacy), but they also “ dramatically overestimate foundational learning levels in their country. ” ( Crawfurd et al.; summary blog post) # SurveyExperiment
Does free primary education hurt learning outcomes? In Lesotho, free primary education improved academic performance at the university level by “ at least 4 percent. ” ( Moshoeshoe) # DID
Conditional cash transfers to “ girls attending secondary schools in Punjab, Pakistan ” led to a higher likelihood of completing secondary school ( 1.3 percent), a lower likelihood of early marriage ( 3.5percent), and in the next generation, less stunting ( 1.2 percent) and fewer underweight children ( 1.7 percent). ( Musaddiq and Said) # FE # DID
Providing SMS messages with practice problems and phone calls to parents boosted learning among children in Botswana while schools were closed for COVID-19. ( Angrist, Bergman, and Matsheng) # RCT
Providing better toilet facilities and menstrual health education in Bangladesh reduced both girls’ absenteeism and their dropout rates, both by 5 percentage points. Coupling it with a parental education program further reduced absenteeism ( but not dropout). ( Sol, Nillesen, and Smeets) # RCT
Giving a certificate to head teachers in Pakistan who did well in their training didn’ t boost their performance. But putting them on a list that qualifies them for future career opportunities did. ( Mansoor) # RCT
A nationwide program in Peru that provided training sessions and monitoring tools to school heads improved reporting of incidence of school violence by 37 percentage points. Students also switched schools less. ( Smarrelli) # RD
School reopenings in Kenya boosted the hours parents worked in a week by 21 percent. The effect is there for both women and men. ( Biscaye, Egger, and Pape) # DID
Providing sexual harassment awareness training for undergraduate women in Delhi, India, made them “ less likely to accept job offers to work in male majority teams. ” ( Sharma) # RCT
Showing “ a video of successful relatable female role models ” to female undergraduate students at public colleges in Pakistan increased their likelihood of working by 4 to 6 percentage points 18 months after graduating. ( Ahmed et al.) # RCT
“ Can governments leverage existing service-delivery platforms to scale early childhood development programs? ” Integrating a home visiting intervention into Bangladesh’ s national nutrition program led to improvement in both children’ s cognitive development and their nutrition. ( Bos et al.) # RCT
In the face of high COVID-19 vaccine hesitancy in Papua New Guinea, “ a message that emphasized the relative safety of the vaccine by highlighting that severe side effects are rare, while also emphasizing the dangers of COVID-19, increased intention to get vaccinated by around 50 percent. ” ( Hoy, Wood, and Moscoe) # SurveyExperiment
In rural Bangladesh, providing information by phone and an unconditional cash transfer reduced “ the number of reported deaths by about 50 percent ” in participating villages. ( Chowdhury et al.) # RCT
In urban Pakistan, expanding the scope of services covered by health insurance and offering telehealth services ( virtual doctor’ s appointments) was associated with better self-reported health and more ( and earlier) doctor consultations. ( Ahmad, Hussain, and Nazif) # Matching
Providing “ pregnant and immediate postpartum women with improved access to family planning through counseling, free transport to a clinic, and financial reimbursement for family planning services over a two-year period ” reduced stunting among children in Malawi. ( Maggio, Kara, and Canning) # RCT
When food aid in a large refugee camp in Uganda was cut by 50 percent, refugees experienced `` a 56 percent reduction in weekly caloric intake. ” ( Vintar and Sterck) # RD
In India, women call the shots on toilet finance: `` Households where the woman perceives the benefit of the toilet to be similar or higher than the man are around four times more likely to take '' a loan to build a toilet. ( Augsburg et al.) # RCT
In Côte d'Ivoire, there is no inequality between foster children and biological children ages 6-10 in terms of how much they consume. For older kids, `` parents are less likely to forgo some of their consumption of adult goods for foster boys. '' ( Olié) # FE
In Nigeria, “ burning off the gas coming out of oil wells ” ( called “ gas flaring ”) is associated with more respiratory diseases and fevers among kids under five years old. ( Alimi and Gibson) # FE
Drawing on data from 36 African countries, “ being born in a village located downstream an opened mine increases the mortality rates under 2 years old by 7.9 percentage points. ” ( Gittard and Hu) # DID
Drawing on data from 25 African countries, “ a 10 percentage point increase in mobile network coverage is associated with a 0.45 percentage point reduction in infant mortality. ” ( Mensah, Tafere, and Abay) # IV
In Ethiopia, health workers diverge in their motivations: some are motivated principally by salary and others are motivated by seeing good health outcomes. Understanding this can help health systems to structure jobs to keep workers motivated. ( Arora et al.) # SurveyExperiment
Are health workers more motivated by the nature of the work they’ re doing or because they value their organization’ s mission? Among medical students in Burkina Faso, being engaged in interesting tasks drives motivation much more than a charitable mission. ( Banuri, Keefer, and de Walque) # LabInField
Free primary education in Ghana “ led to a decrease in the probability of smoking, fertility behaviour, ” and sexually transmitted infections, and an increase in “ healthy eating, antenatal visits and the risk of obesity. ” ( Aboyadana) # RD *
Providing better toilet facilities and menstrual health education in Bangladesh reduced both girls’ absenteeism and their dropout rates, both by 5 percentage points. Coupling it with a parental education program further reduced absenteeism ( but not dropout). ( Sol, Nillesen, and Smeets) # RCT *
In Burkina Faso, a quarter of women offered use of community childcare centers enrolled their children, showing high unmet demand for childcare. Women’ s employment, financial outcomes, and self-reported well-being all improved. So did child development. ( Ajayi, Dao, and Koussoubé) # RCT
“ Can governments leverage existing service-delivery platforms to scale early childhood development programs? ” Integrating a home visiting intervention into Bangladesh’ s national nutrition program led to improvement in both children’ s cognitive development and their nutrition. ( Bos et al.) # RCT *
Providing cash grants and financial training to 1,000 poor women in Tunisia increased income-generating activities by 3.4 percentage points. Inviting the husbands in the training session actually reduced the effect. ( Gazeud et al.) # RCT
Providing a cash grant and psychosocial support to women in Niger produced large impacts on economic welfare and well-being six months later. Providing only the psychosocial support ( life skills training and a community discussion about values) initially produced smaller effects than providing only the cash grant, but effects were similarly large by 18 months. ( Bossuroy et al.) # RCT
It's common to try and target social programs to people who are most “ deprived ” ( e.g., they have the least wealth or the least food). But do the poorest of the poor gain the most from the programs? In a cash transfer program in Kenya, they often don’ t, so whether or not targeting the poorest makes sense will depend on whether the program focus is principally on having the biggest impact or on redistributing to the poorest. ( Haushofer et al.) # MachineLearning
How do business grants perform relative to unconditional cash transfers in Somalia? It's like the story of Goldilocks: the effects of small grants didn't persist, big grants weren't cost effective, but medium-sized grants were just right. ( Abdullahi et al.) # RCT
An unconditional cash transfer program to farmers in Malawi led to 75 percent higher harvests after one year. The additional cash allowed them to work more on their own farms ( by 27 percent) instead of providing labor to other farms for cash. ( Sirma) # RCT
Providing grants to households with children in Zambia increased the likelihood that a household would have a non-farm business ( by 17 percent) and increased the proportion of women with savings by 25 percent. ( Viberti et al.) # RCT
In a lab-in-the-field experiment in Nigeria, most women deferred `` decision-making to their spouse. '' If women were receiving cash transfers, they still deferred, unless they knew their husbands wouldn't find out about it. ( Bakhtiar et al.) # LabInField
COVID-19 increased the poverty in Zambia from 56 to 58 percent over the course of a year, driven by the pandemic's impact on urban areas. Simulations show a social cash transfer program could reduce poverty by up to 6 percentage points. ( Paul et al.) # Simulation
When food aid in a large refugee camp in Uganda was cut by 50 percent, refugees experienced `` a 56 percent reduction in weekly caloric intake. ” ( Vintar and Sterck) # RD *
In rural Bangladesh, providing information by phone and an unconditional cash transfer reduced “ the number of reported deaths by about 50 percent ” in participating villages. ( Chowdhury et al.) # RCT *
Providing “ pregnant and immediate postpartum women with improved access to family planning through counseling, free transport to a clinic, and financial reimbursement for family planning services over a two-year period ” reduced stunting among children in Malawi. ( Maggio, Kara, and Canning) # RCT
Promoting women garment workers to supervisory positions in Bangladesh increased remittances ( often to other family members taking care of their children) from 6 percent of household income to 9.5 percent. ( Uckat) # RD # Matching
The economic shock caused by extensive flooding in Bangladesh in 2017 `` led women to engage more in market activities, to decrease their time spent in domestic work, and to be more empowered. '' Men, on the other hand, `` decreased their time spent at work and they engaged more in housework substituting for women’ s domestic work. '' ( Vitellozi) # DID
Based on data from 30 countries across Africa, women who have their first child born before they get married tend to put off marriage longer if the child is a girl. But women who have their first child after marriage are more likely to divorce if the child is a girl. ( Genicot and Hernandez-de-Benito) # IV
Providing grants to households with children in Zambia increased the likelihood that a household would have a non-farm business ( by 17 percent) and increased the proportion of women with savings by 25 percent. ( Viberti et al.) # RCT
`` Female-led firms were, on average, 4 percentage points more likely to close their business than male-led firms in 2020 '' based on a survey across 50 middle- and high-income countries, partly driven by school closures and increased domestic work burden on women. ( Goldstein et al.) # Matching
Women entrepreneurs in urban Bangladesh who attended counseling on goal setting, time management, and problem-solving strategies are `` 11 percentage points less likely to be depressed and 23 percent less likely to lose an hour of work to solve problems at home. '' ( Lopez-Pena) # RCT
Across matchmaking websites in India, `` women who signal wanting to work after marriage receive up to 22 percent less interest from men than those of women who have never worked. '' ( Dhar) # RCT
Women’ s employment has been disproportionately affected by the COVID crisis. A commonly proposed reason for this is that women had to take on even more work of caring for people at home during the crisis, but among young women in Peru and Vietnam, that only explains 11 percent of the increased employment gap. In India, it explains even less. ( Scott et al.) # FE
Street safety in urban Indonesia and India is associated with more women working: women in very safe neighborhoods are 8.5 percentage points more likely to be in the labor force relative to women in unsafe neighborhoods. ( Cahill) # PSM
During COVID, companies in Ethiopia lost a lot of business and so had to lay off lots of workers. But even after companies recovered, many of those laid off—mostly women and migrants from rural areas—remained unemployed. ( Hardy et al.) # DID
Across Ethiopia, Malawi, and Tanzania, women are less likely to have full rights to sell, rent, or bequeath their land and more likely to need permission or consent from someone else to exercise those rights than men. ( Hasanbasri et al.) # MachineLearning
Providing better toilet facilities and menstrual health education in Bangladesh reduced both girls’ absenteeism and their dropout rates, both by 5 percentage points. Coupling it with a parental education program further reduced absenteeism ( but not dropout). ( Sol, Nillesen, and Smeets) # RCT *
Providing cash grants and financial training to 1,000 poor women in Tunisia increased income-generating activities by 3.4 percentage points. Inviting the husbands in the training session actually reduced the effect. ( Gazeud et al.) # RCT *
Providing a cash grant and psychosocial support to women in Niger produced large impacts on economic welfare and well-being six months later. Providing only the psychosocial support ( life skills training and a community discussion about values) initially produced smaller effects than providing only the cash grant, but effects were similarly large by 18 months. ( Bossuroy et al.) # RCT *
In India, women call the shots on toilet finance: `` Households where the woman perceives the benefit of the toilet to be similar or higher than the man are around four times more likely to take '' a loan to build a toilet. ( Augsburg et al.) # RCT *
In Burkina Faso, a quarter of women offered use of community childcare centers enrolled their children, showing high unmet demand for childcare. Women’ s employment, financial outcomes, and self-reported well-being all improved. So did child development. ( Ajayi, Dao, and Koussoubé) # RCT *
In a lab-in-the-field experiment in Nigeria, most women deferred `` decision-making to their spouse. '' If women were receiving cash transfers, they still deferred, unless they knew their husbands wouldn't find out about it. ( Bakhtiar et al.) # LabInField *
Providing sexual harassment awareness training for undergraduate women in Delhi, India, made them “ less likely to accept job offers to work in male majority teams. ” ( Sharma) # RCT *
Showing “ a video of successful relatable female role models ” to female undergraduate students at public colleges in Pakistan increased their likelihood of working by 4 to 6 percentage points 18 months after graduating. ( Ahmed et al.) # RCT *
CGD blog posts reflect the views of the authors, drawing on prior research and experience in their areas of expertise. CGD is a nonpartisan, independent organization and does not take institutional positions.
CGD works to reduce global poverty and improve lives through innovative economic research that drives better policy and practice by the world’ s top decision makers. | general |
North American Morning Briefing: Stock Futures Waver as Bond Selloff Continues | MARKET WRAPS
Watch For:
New Home Sales for February; EIA Weekly Petroleum Status Report
Opening Call:
Stock futures edged lower Wednesday as investors considered comments from Federal Reserve officials that endorsed interest-rate increases to combat inflation.
Mark Haefele, chief investment officer at UBS Global Wealth Management, said that `` while the increasingly hawkish tone of the Fed is unequivocally bad for bonds, the outlook for equities is more uncertain. ''
Haefele did say, however, that he still sees a `` path to markets ending the year higher. Although there is widespread criticism, it's too early to take the view that the Fed won't be able to negotiate the fine line of reducing inflation without derailing growth. ''
Read Barrons.com: Why a Long/Short Fund Is Betting on Energy, Chips, and Tesla Stock
Stocks to Watch:
Microsoft confirmed Tuesday that hacking group Lapsus $ managed to gain `` limited access '' to its systems just hours after Okta confirmed it was a target of the same group.
The tech giant said it has been actively tracking the group in recent weeks, noting that it is known for `` using a pure extortion and destruction model without deploying ransomware payloads, '' in a blog post Tuesday.
Lapsus $ claimed this week to have gained access to Microsoft and exfiltrated portions of source code.
`` Our investigation has found a single account had been compromised, granting limited access, '' Microsoft said in the blog post. `` Our cybersecurity response teams quickly engaged to remediate the compromised account and prevent further activity. '' Microsoft noted that viewing source doesn't lead to elevation of risk.
Forex:
The dollar is likely to get a boost from the market raising its expectations for U.S. interest rates, according to ING analysts. `` The futures market is fully pricing in 75 basis points of tightening in the next two meetings, which implies at least one 50bp increase. ''
That should offer the dollar a `` positive undercurrent, '' particularly against low-yielding currencies and European currencies exposed to the Ukraine war, the analysts said.
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Expectations that the European Central Bank will raise interest rates by more than previously thought is capping the euro's depreciation against the dollar after the Fed signalled more aggressive rate rises, Monex Europe said.
Markets are now pricing in about three rate rises by the ECB within the next 12 months after the central bank accelerated the removal of stimulus at last Thursday's meeting despite uncertainty over the Ukraine crisis.
`` This has shielded the euro from further downside against the dollar in Monday's and Tuesday's session, and is likely to serve as a backstop for the euro in the months ahead in an environment where U.S. yields are rising. ''
Bonds:
Bond yields rose for a second day, with the yield on the 10-year Treasury hovering around 2.4%. Less than a week ago the 10-year yield was at 2.14%.
Commodities:
Oil prices were higher, with Joe Biden and NATO allies expected to announce additional sanctions on Russia when they meet in Brussels this week.
Read: Jamie Dimon tells Biden that U.S., Europe Need 'Marshall Plan ' for Energy Independence
TODAY 'S TOP HEADLINES
Amazon Union Vote Set to Begin in New York, Which Has Challenged Company in Past
Amazon.com Inc. over the next month will face union elections at separate warehouses in New York City, a union-friendly area that has challenged the e-commerce giant in the past.
Current and former workers at the company's largest Staten Island warehouse are leading the effort to become the first group of Amazon employees to unionize in the U.S. They are operating without the backing of a major labor union, an uncommon tactic, but one that organizers believe will win support from workers.
Judge Frees China's ZTE From Some U.S. Oversight
HONG KONG-A U.S. judge ruled that ZTE Corp.'s probation for violations of U.S. sanctions on Iran could end, freeing the Chinese technology company from some oversight following years of government supervision.
The decision by the federal judge in Texas effectively ends ZTE's five-year term of supervision under a Dallas lawyer assigned to police the company's adherence to the terms of its 2017 settlement agreement resolving the sanctions charges.
China, Hong Kong Covid Restrictions Exacerbate Earnings Reporting Delays
Strict measures aimed at curbing the spread of Covid-19 in China and Hong Kong are having knock-on effects in ways that wouldn't immediately spring to mind, including causing the delay of audited earnings results.
The delays, affecting heavily indebted China Evergrande Group as well as property peers and companies operating in several other sectors, mean not only that investors and analysts will have to wait for 2021 results; it also means that shares of some affected companies are days away from automatic trading suspensions, effectively taking them out of the market at a time of heightened volatility and uncertainty.
Disney Workers Walk Out to Protest Company's Response to Florida Bill
Small groups of Walt Disney Co. employees across the U.S. took Tuesday off from work and gathered to protest what they described as the company's continued failure to support LGBT employees.
The walkouts mark the beginning of a third week of turmoil inside the entertainment giant as its leadership struggles to contain fallout from its bungled response to a Republican-led education bill in Florida, which many employees said targeted the LGBT community.
GameStop's Stock Rises After Chairman Buys More Shares
Shares of GameStop Corp. rose 16% in after-hours trading after the videogame retailer's chairman disclosed his firm bought 100,000 shares of the company's stock on Tuesday.
Ryan Cohen's RC Ventures LLC said it paid between $ 96.81 and $ 108.82 for the shares it purchased Tuesday. Mr. Cohen owns an 11.9% stake in the retailer, or 9.1 million shares.
Starbucks Workers Vote to Unionize in Seattle Store
A Starbucks Corp. store in Seattle voted to unionize Tuesday, the first in the coffee chain's hometown to seek representation from a growing union of chain baristas.
Chain workers at a single Seattle location voted 9-0 to be represented by the Starbucks Workers United union. Starbucks had petitioned the National Labor Relations Board to review that vote's structure ahead of Tuesday's tally. The federal labor agency denied the appeal, as it has done in response to other review requests by the company so far.
Quantum Startup Sandbox Emerges From Alphabet
Sandbox AQ, a software startup developing quantum-computing and artificial-intelligence tools for commercial use, on Tuesday officially spun off from Alphabet Inc.'s Google to become a stand-alone company.
The move was fueled by a `` nine-figure '' funding round that included Breyer Capital, T. Rowe Price Associates Inc. and Guggenheim Partners LLC, among other investors, the company said. The amount and terms of the deal were not disclosed.
Tencent's Fourth-Quarter Revenue Grew at Slowest Pace in Nearly Two Decades
Tencent Holdings Ltd.'s fourth-quarter revenue growth slowed to its weakest pace in nearly two decades, the latest sign of a severe slowdown in China's technology sector amid the country's weakening consumption and a yearlong regulatory crackdown.
The world's largest videogame developer's revenue rose 7.9% to 144.19 billion yuan ( $ 22.65 billion). The result missed expectations of analysts polled by FactSet and marked the company's worst top-line growth since it went public in 2004.
Fed Officials Lay Out Case for Further Rate Rises
Federal Reserve Bank of Cleveland President Loretta Mester said Tuesday the U.S. central bank has quite a few rate rises ahead of it as it seeks to lower very high levels of inflation.
`` In my view, inflation, which is at a 40-year high, is the No. 1 challenge for the U.S. economy at this time, '' Ms. Mester said in a speech text.
High Gasoline Prices Have Consumers Thinking Electric
With gasoline prices setting records across the U.S. and oil topping $ 100 a barrel, consumer interest in electric vehicles and other clean energy technologies is speeding up.
Gasoline prices, which hit a nationwide average record high of $ 4.33 on March 11, are about $ 1.35 higher than they were a year ago, according to AAA. Every dollar of higher gasoline prices adds more than a $ 50 increase in households ' monthly expenses, according to Northern Trust.
U.S., U.K. Strike Trade Deal to End Tariffs on British Steel and American Whiskey
WASHINGTON-The U.S. and U.K. struck a trade accord Tuesday that will remove U.S. tariffs on British steel and aluminum, while the U.K. will lift levies on American whiskey, motorcycles and tobacco.
Biden administration officials said the agreement with the U.K. will allow the U.K to ship `` historically-based sustainable volumes '' of steel and aluminum products to the U.S. without levies imposed under the former Trump administration.
Global Finance Watchdog Warns of Risks Posed by Migrant Smuggling
Countries must do more to understand the money-laundering and terrorist-financing risks posed by the clandestine business of migrant smuggling, a global finance watchdog said Tuesday.
Over the past decade, political instability, poverty and the effects of climate change have led to more migrants and refugees, fueling the growth of an illegal industry with annual profits exceeding $ 10 billion, according to a new report by the Financial Action Task Force.
U.K. Inflation Rate Hit 6.2% in February, a 30-Year High
Inflation in the U.K. reached a new three-decade high in February, accelerating to a 6.2% annual rate, and is expected to rise further in the coming months on higher energy and other commodity prices.
( MORE TO FOLLOW) Dow Jones Newswires
03-23-22 0601ET | business |
Tencent Posts Slowest Revenue Growth Since Going Public -- Update | By Yifan Wang
Tencent Holdings Ltd.'s fourth-quarter revenue growth slowed to its weakest pace in nearly two decades, the latest sign of a severe slowdown in China's technology sector amid the country's weakening consumption and a yearlong regulatory crackdown.
The world's largest videogame developer's revenue rose 7.9% to 144.19 billion yuan ( $ 22.65 billion). The result missed expectations of analysts polled by FactSet and marked the company's worst top-line growth since it went public in 2004.
Net profit jumped 60% to CNY94.96 billion, mainly driven by about CNY86 billion of disposal gains, including CNY78.0 billion from Tencent's recent sale of its stake in e-commerce company JD.com Inc.
The slowdown was mainly because growth weakened to 1% in Tencent's domestic games revenue, one of the tech giant's largest income streams. Revenue from another key business segment, online advertising, fell 13%, as China's wide-ranging regulatory actions last year hurt demand from advertisers across industries, particularly those in the after-school-tutoring and internet-services sectors.
The company said it expects its advertising business to resume growth in late 2022, while the gaming business could `` fully digest the impact of minor protection measures '' in the second half of the year.
For its cloud business, which has served as a key growth engine amid softness in other operations, Tencent said it is shifting the focus to margins and quality of growth from `` revenue growth at all costs. ''
Tencent's muted results add to a host of emerging troubles for the company. Last week, The Wall Street Journal reported that the company is facing a potential record fine for violations of anti-money-laundering rules and some central bank regulations. The Journal this week reported on the company's plan to lay off thousands of employees, including about a fifth of the staff at its cloud unit, its fastest-growing business.
Chinese tech giants ' earnings momentum has faltered across the board since the later half of 2021 as a tighter regulatory landscape took its toll on financial performance, while China's economic recovery also slowed after a series of Covid-19 outbreaks since last summer. In the December quarter, e-commerce giant Alibaba Group Holding Ltd. posted its slowest revenue growth since it went public in 2014, while its rival JD.com swung to a loss due to weaker top-line growth and higher expenses.
Beijing last year released a raft of regulations targeting sectors including gaming, internet platforms, entertainment, education and finance. Tencent has been particularly hit by more-stringent rules on minors ' videogame play time, released last August.
Write to Yifan Wang at yifan.wang @ wsj.com
( END) Dow Jones Newswires
03-23-22 0611ET | business |
PRIMAVERA CAPITAL ACQUISITION CORP.: Entry into a Material Definitive Agreement, Unregistered Sale of Equity Securities, Regulation FD Disclosure, Financial Statements and Exhibits ( form 8-K) | Item 1.01 Entry Into A Material Definitive Agreement
The Business Combination Agreement
On March 23, 2022, Primavera Capital Acquisition Corporation, a Cayman Islands exempted company ( `` PCAC '') entered into a Business Combination Agreement ( as it may be amended, supplemented or otherwise modified from time to time, the `` BCA '') by and among ( i) PCAC, ( ii) Lanvin Group Holdings Limited, a Cayman Islands exempted company ( `` PubCo ''), ( iii) Lanvin Group Heritage I Limited, a Cayman Islands exempted company and a direct wholly owned subsidiary of PubCo ( `` Merger Sub 1 ''), ( iv) Lanvin Group Heritage II Limited, a Cayman Islands exempted company and a direct wholly owned subsidiary of PubCo ( `` Merger Sub 2 '', and together with Merger Sub 1, the `` Merger Subs ''), and ( v) Fosun Fashion Group ( Cayman) Limited, a Cayman Islands exempted company ( `` FFG '').
The BCA and the transaction contemplated thereby were unanimously approved by the board of directors of each of PCAC and FFG.
Pursuant to the BCA, on the closing of the Business Combination ( as defined below) ( the `` Closing '' and the date on which the Closing actually occurs, the '' Closing Date '') and in sequential order, ( i) the Forward Purchase Subscriptions ( as defined below) will be consummated immediately prior to the completion of the Initial Merger or otherwise in accordance with the terms thereof, ( ii) PCAC will merge with and into Merger Sub 1, with Merger Sub 1 as the surviving entity in the merger, and, after giving effect to such merger, continuing as a wholly owned subsidiary of PubCo ( the `` Initial Merger ''), ( iii) Merger Sub 2 will merge with and into FFG, with FFG as the surviving entity in the merger ( such surviving entity, the `` Surviving Company ''), and, after giving effect to such merger, continuing as a wholly owned subsidiary of PubCo ( the `` Second Merger ''), ( iv) the PIPE Investment ( as defined below) shall be consummated immediately following the completion of the Initial Merger and the Second Merger, and ( v) Merger Sub 1 will merge with and into the Surviving Company, with the Surviving Company as the surviving entity in the merger ( the `` Third Merger ''). The Forward Purchase Subscriptions, the Initial Merger, the Second Merger, the PIPE Investment, the Third Merger, and the other transactions contemplated by the BCA are hereinafter referred to as the `` Business Combination. ''
The Business Combination
Subject to, and in accordance with, the terms and conditions of the BCA, in connection with the Initial Merger, ( i) each PCAC unit will ( to the extent not already separated) be automatically severed and the holder thereof will be deemed to hold one PCAC Class A ordinary share and one-half of a PCAC warrant, ( ii) immediately following the separation of each PCAC unit, each issued and outstanding PCAC Class A ordinary share ( but excluding ( x) all of the PCAC Class A ordinary shares that will be redeemed pursuant to the election of eligible holders thereof in accordance with PCAC's organizational documents in connection with the transactions contemplated by the BCA ( the `` PCAC Shareholder Redemption ''), and ( y) all of the PCAC Class A ordinary shares that may have been issued upon the exercise of any PCAC warrants or in connection with the Private Placements ( as defined below), the `` Eligible PCAC Shares '') will automatically be converted into the right to receive a number of newly issued PubCo ordinary shares equal to ( x) the sum of the aggregate number of Eligible PCAC Shares and 3,600,000, divided by ( y) the aggregate number of Eligible PCAC Shares, subject to rounding, ( iii) each ( x) PCAC Class A ordinary share other than the Eligible PCAC Shares and ( y) PCAC Class B ordinary share issued and outstanding will automatically be converted into the right to receive one newly issued PubCo ordinary share, ( iv) each issued and outstanding PCAC warrant will be assumed by PubCo and converted into a warrant to purchase one PubCo ordinary share and ( v) the issued and outstanding share in the capital of Merger Sub 1 will continue existing and constitute the only issued and outstanding share in the capital of Merger Sub 1.
Subject to, and in accordance with, the terms and conditions of the BCA, in connection with the Second Merger, ( i) each issued and outstanding FFG ordinary share, FFG non-voting ordinary share and FFG preferred share ( other than any Company Dissenting Shares ( as defined in the BCA), collectively, `` Company Shares '') will automatically be converted into the right to receive such number of newly issued PubCo ordinary shares that is equal to the Company Exchange Ratio, subject to rounding, and ( ii) the issued and outstanding share in the capital of Merger Sub 2 will automatically be converted into one ordinary share of the Surviving Company, which ordinary share will constitute the only issued and outstanding share in the share capital of the Surviving Company. The '' Company Exchange Ratio '' is a number determined by dividing the price per Company Share ( i.e. US $ 3.365773) by US $ 10.00.
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Subject to, and in accordance with, the terms and conditions of the BCA, in connection with the Third Merger, ( i) the issued and outstanding ordinary share of the Surviving Company will be cancelled and cease to exist by virtue of the Third Merger, and ( ii) the issued and outstanding share in the capital of Merger Sub 1 will automatically be converted into one ordinary share of the Surviving Company, which ordinary share will constitute the only issued and outstanding share in the share capital of the Surviving Company.
The Business Combination is expected to close in the second half of 2022, following the receipt of the required approvals by PCAC's shareholders and the fulfillment of other closing conditions.
Representations and Warranties; Covenants
The BCA contains representations, warranties and covenants of each of the parties thereto that are customary for transactions of this type. The representations and warranties of the parties contained in the BCA will terminate and be of no further force and effect as of the closing of the Business Combination.
PubCo has also agreed to take all action within its power as may be necessary or appropriate such that, effective immediately after the Closing, PubCo board of directors will consist of seven ( 7) directors. Primavera Capital Acquisition LLC ( the `` Sponsor '') will have the right to designate one ( 1) member of PubCo board of directors.
Conditions to Each Party's Obligations
The obligation of PCAC, FFG, Merger Subs and PubCo to consummate the Business Combination is subject to certain closing conditions, including, among others: ( i) required approval of PCAC's shareholders, ( ii) required approval of FFG's shareholders, ( iii) waiting period or periods ( including any extension thereof) applicable to the consummation of the transactions contemplated by the BCA under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 ( as amended) shall have been terminated or expired, ( iv) the registration statement on Form F-4 ( as amended from time to time, the `` Registration Statement '') becoming effective, ( v) approval for PubCo's listing application and listing of PubCo ordinary shares to be issued in connection with the Business Combination, ( vi) the...
Item 3.02 Unregistered Sales of Equity Securities
The disclosure set forth above in Item 1.01 of this Current Report on Form 8-K is incorporated by reference herein. PubCo ordinary shares to be offered and sold in connection with the Private Placement have not been registered under the Securities Act, in reliance upon the exemption provided in Section 4 ( a) ( 2) thereof.
Item 7.01 Regulation FD Disclosure
On March 23, 2022, PCAC and FFG issued a press release announcing their entry into the BCA. The press release is furnished hereto as Exhibit 99.1 and incorporated by reference herein. Additionally, furnished as Exhibit 99.2 hereto and incorporated into this Item 7.01 by reference is the investor presentation that PCAC and FFG prepared for use in connection with the announcement of the Business Combination and furnished as Exhibit 99.3 hereto and incorporated into this Item 7.01 by reference is the transcript of a recorded webcast by PCAC and FFG to discuss the transactions contemplated by the Business Combination Agreement described above.
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The foregoing ( including Exhibits 99.1, 99.2 and 99.3) is being furnished pursuant to Item 7.01 and will not be deemed to be filed for purposes of Section 18 of the Exchange Act, or otherwise be subject to the liabilities of that section, nor will it be deemed to be incorporated by reference in any filing under the Securities Act or the Exchange Act.
Forward-Looking Statements
This communication including the description of the transactions, agreements, and other information contained herein ( collectively, this `` communication '') includes `` forward-looking statements '' within the meaning of the federal securities laws with respect to the proposed Business Combination, and also contains certain financial forecasts and projections. All statements other than statements of historical fact contained in this communication, including, but not limited to, statements as to future results of operations and financial position, planned products and services, business strategy and plans, objectives of management for future operations of the FFG, market size and growth opportunities, competitive position, technological and market trends and the potential benefits and expectations related to the terms and timing of the proposed Business Combination, are forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including `` anticipate, '' `` expect, '' `` suggests, '' `` plan, '' `` believe, '' '' intend, '' `` estimates, '' `` targets, '' `` projects, '' `` should, '' `` could, '' `` would, '' `` may, '' '' will, '' `` forecast '' or other similar expressions. All forward-looking statements are based upon estimates and forecasts and reflect the views, assumptions, expectations, and opinions of the FFG and PCAC, which are all subject to change due to various factors including, without limitation, changes in general economic conditions as a result of COVID-19. Any such estimates, assumptions, expectations, forecasts, views or opinions, whether or not identified in this communication, should be regarded as indicative, preliminary and for illustrative purposes only and should not be relied upon as being necessarily indicative of future results.
The forward-looking statements and financial forecasts and projections contained in this communication are subject to a number of factors, risks and uncertainties. Potential risks and uncertainties that could cause the actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to, changes in domestic and foreign business, market, financial, political and legal conditions; the timing and structure of the Business Combination; changes to the proposed structure of the Business Combination that may be required or appropriate as a result of applicable laws or regulations; the inability of the parties to successfully or timely consummate the Business Combination and the other transactions in connection therewith, including as a result of the COVID-19 pandemic or the risk that any regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect the combined company or the expected benefits of the Business Combination or that the approval of the shareholders of PCAC or the FFG is not obtained; the risk that the business combination disrupts current plans and operations of PCAC or the FFG as a result of the announcement and consummation of the Business Combination; the ability of the FFG to grow and manage growth profitably and retain its key employees including its chief executive officer and executive team; the inability to obtain or maintain the listing of the post-acquisition company's securities on the NYSE following the Business Combination; failure to realize the anticipated benefits of Business Combination; risk relating to the uncertainty of the projected financial information with respect to the FFG; the amount of redemption requests made by PCAC's shareholders and the amount of funds available in the PCAC trust account; general economic conditions and other factors affecting the FFG's business; FFG's ability to implement its business strategy; FFG's ability to manage expenses; changes in applicable laws and governmental regulation and the impact of such changes on FFG's business, FFG's exposure to litigation claims and other loss contingencies; the risks associated with negative press or reputational harm; disruptions and other impacts to FFG's business, as a result of the COVID-19 pandemic and government actions and restrictive measures implemented in response; FFG's ability to protect patents, trademarks and other intellectual property rights; any breaches of, or interruptions in, FFG's technology infrastructure; changes in tax laws and liabilities; and changes in legal, regulatory, political and economic risks and the impact of such changes on FFG's business. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the `` Risk Factors '' section of the Registration Statement, the proxy statement/consent solicitation statement/prospectus discussed below, PCAC's Quarterly Report on Form 10-Q and other documents filed by PubCo or PCAC from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. In addition, there may be additional risks that neither PCAC nor FFG presently knows, or that PCAC or FFG currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. Forward-looking statements reflect PCAC's and FFG's expectations, plans, projections or forecasts of future events and view. If any of the risks materialize or PCAC's or FFG's assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements.
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Forward-looking statements speak only as of the date they are made. PCAC and FFG anticipate that subsequent events and developments may cause their assessments to change. However, while PubCo, PCAC and FFG may elect to update these forward-looking statements at some point in the future, PubCo, PCAC and FFG specifically disclaim any obligation to do so, except as required by law. The inclusion of any statement in this document does not constitute an admission by FFG nor PCAC or any other person that the events or circumstances described in such statement are material. These forward-looking statements should not be relied upon as representing PCAC's or FFG's assessments as of any date subsequent to the date of this document. Accordingly, undue reliance should not be placed upon the forward-looking statements. In addition, the analyses of FFG and PCAC contained herein are not, and do not purport to be, appraisals of the securities, assets or business of the FFG, PCAC or any other entity.
Financial Information; Use of Non-IFRS Financial Metrics and Other Key Financial Metrics
Certain financial information and data contained in this communication is unaudited.
Accordingly, such information and data may not be included, may be adjusted or may be presented differently in any proxy statement, prospectus or registration statement or other report or document to be filed or furnished by PCAC or PubCo with the SEC. This communication includes certain non-IFRS financial measures ( including on a forward-looking basis). These non-IFRS measures are an addition, and not a substitute for or superior to measures of financial performance prepared in accordance with IFRS and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with IFRS. FFG believes that these non-IFRS measures of financial results ( including on a forward-looking basis) provide useful supplemental information to investors about FFG. FFG's management uses forward looking non-IFRS measures to evaluate FFG's projected financial and operating performance. FFG believes that the use of these non-IFRS financial measures provides an additional tool for investors to use in evaluating projected operating results and trends in and in comparing FFG's financial measures with other similar companies, many of which present similar non-IFRS financial measures to investors.
However, there are a number of limitations related to the use of these non-IFRS measures and their nearest IFRS equivalents. For example, other companies may calculate non-IFRS measures differently, or may use other measures to calculate their financial performance, and therefore FFG's non-IFRS measures may not be directly comparable to similarly titled measures of other companies. FFG does not consider these non-IFRS measures in isolation or as an alternative to financial measures determined in accordance with IFRS. The principal limitation of these non-IFRS financial measures is that they exclude significant expenses, income and tax liabilities that are required by IFRS to be recorded in FFG's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgements by FFG about which expense and income are excluded or included in determining these non-IFRS financial measures. In order to compensate for these limitations, FFG presents non-IFRS financial measures in connection with IFRS results.
Important Additional Information
This communication relates to a proposed Business Combination between FFG and PCAC. This document does not constitute an offer to sell or exchange, or the solicitation of an offer to buy or exchange, any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, sale or exchange would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The proposed Business Combination will be...
Item 9.01. Financial Statements and Exhibits.
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© Edgar Online, source Glimpses | business |
Exclusive-Indonesia preparing tough new curbs for online platforms -sources | The rules, which authorities believe are needed to make platforms remove `` unlawful '' content quickly, are among the most stringent globally on social media and follow intensifying crackdowns on online content that have alarmed activists in countries like India.
Indonesia is a top-10 market globally by number of users for social media companies, including Alphabet Inc's Youtube, TikTok, Twitter Inc and Meta's Facebook, Instagram and Whatsapp.
Some executives of online companies briefed on the plans warned the measures will be hard to comply with, raise their operating costs, and could undermine freedom of expression in the world's fourth most populous country, the sources said.
The new rules, which build upon internet regulations from 2019, mean companies will be required to take down content deemed unlawful within four hours if a request is designated as `` urgent '', the sources said. Other requests, which can come from any government agency, will be have to be met within 24 hours.
The measures, which are being drafted by Indonesia's finance and communications ministries, are due to be finalised soon and brought in from June, the sources told Reuters.
The six sources from companies and government declined to be named as the discussions were confidential.
Officials told internet companies that `` urgent '' government requests would include content perceived as sensitive in areas such as `` security, terrorism and public order, child protection, and pornography '', two of the sources said.
After receiving an official complaint, companies will be fined per item of content, with fines rising the longer content stays on platforms, according to three sources and a government document reviewed by Reuters.
Fines will be determined by the size of a company in terms of local users and the `` content severity '', according to the document. The quantum of fines is still to be finalised but could amount to millions of rupiah ( 1 million rupiah = $ 69.71) per item.
And platforms failing to comply with government requests on too many occasions could be blocked in Indonesia and their staff might face criminal sanctions, two of the sources said.
The regulations will apply to all internet and digital platforms determined to be `` internet system operators '', ranging from social media giants to e-commerce and fintech companies as well as telecommunication firms.
Indonesia's finance and communications ministries did not immediately respond to requests for comment.
RISK OF CRIMINAL SANCTIONS
Compared to Indonesia's proposed measures, social media companies in Vietnam are required to remove offending content from their platforms within one day of receiving a request from the authorities. India gives companies 36 hours windows to remove, with possible criminal sanctions if they don't comply.
The `` trigger '' for Indonesia's tougher measures was a flood of unlawful online content ranging from fraud to political and coronavirus hoaxes or disinformation, said one government official familiar with the matter.
`` We need firm actions now because the government has been criticised and deemed incapable of carrying out its obligations, '' said the official.
Five company sources involved in the talks said both local and international firms did not have enough staff to comply with government requests on time and the appeals process on cases remains unclear. Two warned it could prompt `` over-censorship '' by platforms.
The regulations will have the biggest impact on social media companies, which count Indonesia's youthful population of 270 million as a huge opportunity for growth.
Meta's Facebook reached as many as 150 million users in Indonesia in 2021, according to company data. Indonesia's booming digital economy reached $ 70 billion according to a report by Bain, Google, and Temasek.
Meta, Alphabet, Twitter, and Tiktok did not answer requests for comment.
Three sources at three social media firms said they were concerned about possible government overreach on online content.
`` There's a lack of ( clear) definitions on what's covered, as under 'terrorism ', we could be asked to take down criticism of the government on topics like West Papua, '' one source told Reuters, referring to Indonesia's easternmost area that has suffered a simmering decades-long separatist conflict and where the government has labelled separatists `` terrorists ''.
`` Many issues on freedom of expression are going to appear. ''
( $ 1 = 14,360.0000 rupiah)
( Reporting by Fanny Potkin in Singapore and Stefanno Sulaiman in Jakarta, Editing by Ed Davies and Muralikumar Anantharaman)
By Fanny Potkin and Stefanno Sulaiman | business |
U.S. airline CEOs urge Biden to lift COVID mask mandate -letter | - The chief executives of American Airlines, United Airlines, Delta Air Lines and other carriers on Wednesday urged U.S. President Joe Biden to end a federal mask mandate on airplanes and international pre-departure testing requirements.
The airline executives, including the chairman of Southwest Airlines and JetBlue's CEO, said in a letter the restrictions `` are no longer aligned with the realities of the current epidemiological environment. ''
The Biden administration this month opted to extend current COVID-19 mask requirements at airports, train stations, ride share vehicles and other transit modes through April 18. The order was set to expire on March 18. `` It makes no sense that people are still required to wear masks on airplanes, yet are allowed to congregate in crowded restaurants, schools and at sporting events without masks, despite none of these venues having the protective air filtration system that aircraft do, '' the airline letter said.
The White House declined to comment, but earlier this month said the Centers for Disease Control and Prevention ( CDC) was working to help develop `` a revised policy framework for when, and under what circumstances, masks should be required in the public transportation corridor. ''
Delta CEO Ed Bastian in a separate statement https: //news.delta.com/delta-asks-biden-administration-end-covid-era-travel-restrictions said `` considering the improved public health metrics in the U.S. and medical advancements to prevent the worst outcomes of COVID-19, the federal mask mandate and pre-departure testing no longer fits with the current environment. ''
The letter also made reference to `` thousands of airline employees charged with enforcing '' the COVID rules.
The mask requirements have resulted in significant friction on airplanes. The Federal Aviation Administration says since January 2021, there have been a record 6,942 unruly passenger incidents reported - and 70% involved masking rules
Last week, the U.S. Senate voted 57 to 40 to overturn the 13-month-old public health order requiring masks on airplanes and other forms of public transportation, a move that drew a quick veto threat from Biden.
The mask mandate has drawn significant opposition from Republicans who noted the CDC says 99.5% of Americans live in places where it is safe to ditch indoor masks.
The letter cited the CDC data arguing `` the science clearly supports lifting the mask mandate. ''
The 2021 CDC order said the mask mandate could help prevent the spread of COVID-19 in crowded transport settings.
( Reporting by David Shepardson Editing by Chris Reese and Bill Berkrot) | business |
Chemical found in leafy greens shown to slow growth of COVID-19 and common cold viruses -- ScienceDaily | In a study described March 18 in the Nature journal Communications Biology, the scientists showed that sulforaphane, a plant-derived chemical, known as a phytochemical, already found to have anti-cancer effects, can inhibit the replication of SARS-CoV-2, the coronavirus that causes COVID-19, and another human coronavirus in cells and mice.
While the results are promising, the researchers caution the public against rushing to buy sulforaphane supplements available online and in stores, noting that studies of sulforaphane in humans are necessary before the chemical is proven effective, and emphasizing the lack of regulation covering such supplements.
Sulforaphane's natural precursor is particularly abundant in broccoli, cabbage, kale and Brussels sprouts. First identified as a `` chemopreventive '' compound by a team of Johns Hopkins scientists decades ago, natural sulforaphane is derived from common food sources, such as broccoli seeds, sprouts and mature plants, as well as infusions of sprouts or seeds for drinking. Previous studies, including those at Johns Hopkins Medicine, have shown sulforaphane to have cancer and infection-prevention properties by way of interfering with certain cellular processes.
`` When the COVID-19 pandemic started, our multidisciplinary research teams switched our investigations of other viruses and bacteria to focus on a potential treatment for what was then a challenging new virus for us, '' says Children's Center microbiologist Lori Jones-Brando, Ph.D., an assistant professor of pediatrics at the Johns Hopkins University School of Medicine and the senior author of the paper. `` I was screening multiple compounds for anti-coronavirus activity and decided to try sulforaphane since it has shown modest activity against other microbial agents that we study. '' The researchers used purified, synthetic sulforaphane purchased from commercial chemical suppliers in their experiments.
In one experiment, the research team first exposed cells to sulforaphane for one to two hours before infecting the cells with SARS-CoV-2 and the common cold coronavirus, HCoV-OC43. They found that low micromolar ( µM) concentrations of sulforaphane ( 2.4-31 µM) reduced the replication by 50% of six strains of SARS-CoV-2, including the delta and omicron variants, as well as that of the HCoV-OC43 coronavirus. The investigators also observed similar results with cells that had been previously infected with the viruses, in which the protective effects of sulforaphane were seen even with an already established virus infection.
The group also examined the effects of sulforaphane when combined with remdesivir, an antiviral medication used to shorten the recovery of hospitalized adults with COVID-19 infections. In their findings, remdesivir inhibited 50% of the replication of HCoV-OC43 and SARS-CoV-2 at 22 µM and 4 µM, respectively. Further, the research team reports that sulforaphane and remdesivir interacted synergistically at several combination ratios to reduce by 50% the viral burden in cells infected with HCoV-OC43 or SARS-CoV-2. In this context, synergism means that lower doses of both sulforaphane ( for example, 1.6-3.2 µM) and remdesivir ( for example, 0.5-3.2 µM), when combined, are more effective against the viruses than either applied alone.
`` Historically, we have learned that the combination of multiple compounds in a treatment regimen is an ideal strategy to treat viral infections, '' says Alvaro Ordonez, M.D., the first author of the paper and an assistant professor of pediatrics at the Johns Hopkins University School of Medicine. `` The fact that sulforaphane and remdesivir work better combined than alone is very encouraging. ''
The researchers then conducted studies in a mouse model of SARS-CoV-2 infection. They found that giving 30 milligrams of sulforaphane per kilogram of body weight to mice before infecting them with the virus significantly decreased the loss of body weight that's typically associated with virus infection ( 7.5% decrease). Further, the pretreatment resulted in a statistically significant decrease in both the viral load, or amount of virus, in the lungs ( 17% decrease) and upper respiratory tract ( 9% decrease) as well as the amount of lung injury ( 29% decrease) compared with infected mice that were not given sulforaphane. The compound also decreased inflammation in the lungs, protecting the cells from a hyperactive immune response that seems to be one of the driving factors that has caused many people to die from COVID-19.
`` What we found is that sulforaphane is antiviral against HCoV-OC43 and SARS-CoV-2 coronaviruses while also helping control the immune response, '' Ordonez says. `` This multifunctional activity makes it an interesting compound to use against these viral infections, as well as those caused by other human coronaviruses. ''
The team plans to conduct studies in humans to evaluate if sulforaphane can be effective in preventing or treating these infections.
`` Despite the introduction of vaccines and other medications that can have side effects, effective antiviral agents are still necessary to prevent and treat COVID-19, particularly considering the potential effects of new coronavirus variants arising in the population, '' Jones-Brando says. `` Sulforaphane could be a promising treatment that is less expensive, safe and readily available commercially. ''
Along with Jones-Brando and Ordonez, other Johns Hopkins Medicine authors of the paper include C. Korin Bullen, Andres F. Villabona-Rueda, Elizabeth A. Thompson, Mitchell L. Turner, Vanessa F. Merino, Yu Yan, John Kim, Stephanie L. Davis, Oliver Komm, Jonathan D. Powell, Franco R. D'Alessio, Robert H. Yolken and Sanjay K. Jain.
The study was funded by the National Institutes of Health, Mercatus Center, the Center for Infection and Inflammation Imaging Research at the Johns Hopkins University School of Medicine and the Stanley Medical Research Institute.
Jones-Brando, Ordonez, Yolken and Jain are co-inventors on a pending patent application ( USPA 22 719 # 63/142,598), `` Methods for inhibiting coronaviruses using sulforaphane '' filed by The Johns Hopkins University. All other authors have no competing interests. | science |
January travel up from year ago, but still fraction of pre-pandemic levels | The information you requested is not available at this time, please check back again soon.
Statistics Canada says the number of people travelling to Canada in January was up from a year earlier, but remained a fraction of where it was before the COVID-19 pandemic.
The agency says the number of trips by U.S. residents to Canada in January was 218,600, up from 86,500 a year earlier, but well short of the 1.2 million in January 2020.
The number of residents of countries other than the U.S. arriving in Canada in January totalled 79,700, up from 34,500 in January 2021, however that total was nearly 365,600 in January 2020.
Statistics Canada says Canadian residents returned from 690,200 trips to the United States in January, up from 265,000 a year earlier, but down from the 3.1 million trips in January 2020.
The number of Canadian residents returning from visiting overseas totalled 463,700 in January, up from 160,500 in January 2021, but down from 1.4 million in January 2020.
As COVID-19 cases surged at the end of last year, Ottawa advised Canadians on Dec. 15 to avoid non-essential travel outside of Canada. and, on Dec. 21, required all travellers entering Canada to provide a negative COVID-19 molecular test. | general |
Q & A: From homes to hotels, how will we house 68,000 Ukrainian refugees? | Diana Petrovsky, 5, looks out on new surroundings as she arrived at the Kingsley Hotel, Cork with her brother Hlib, mother Angelina and grandfather Adam, from Ukraine. Picture: Michael Mac Sweeney/Provision
How many Ukrainians are now expected to arrive in Ireland?
About 3.4m people have already fled Ukraine, and the Government now expects that at least 68,000 people will arrive here in the coming weeks, but that the number could reach as high as 200,000.
As of Wednesday night, 10,414 Ukrainians had arrived in Ireland and 4,942 of those had sought accommodation from the State.
Where will people be housed?
The Government is now taking a three-pronged approach to sourcing and providing emergency accommodation for those fleeing Ukraine. This will be carried out in different phases.
The immediate priority has been securing additional hotels, B & Bs, and other tourist accommodation. To date, 2,700 hotel rooms have been secured, which have been contracted out for between three and six months.
The Department of Children, which is the leading the State's response, is also drawing on the generous public pledges made through the Irish Red Cross.
More than 20,000 pledges of accommodation have been made via the Irish Red Cross portal, with about 4,000 of those are related to vacant properties.
Unoccupied properties will be the first to be used, and the Institute of Professional Auctioneers and Valuers ( IPAV) will be deployed to check houses to see if they are suitable.
Lastly, the Government is identifying State-owned or local authority properties which may be suitable for immediate and longer-term accommodation needs.
Major venues such as Citywest, Millstreet Arena, the National Show Centre, which previously operated as Covid testing and treatments centres, will now be repurposed as emergency accommodation centres.
Ministers also discussed the possibility of using Defence Forces ' land at Gormanstown, North Dublin, at their weekly meeting on Tuesday.
There is ongoing engagement with the religious communities and others to seek to identify potential properties that might be used.
While the GAA and other organisations have not yet been officially contacted, Arts Minister Catherine Martin has said sports grounds and complexes could also be used as `` everything has to be considered ''.
Children's Minister Roderic O'Gorman said authorities have already identified about 500 properties that are suitable for use.
Who is leading the operation, and how will costs be covered?
A number of departments including Justice, Children, Housing, Health, and Social Protection are involved in providing emergency accommodation and supports to those arriving into the country. | general |
FIRST ADVANTAGE CORP Management's Discussion and Analysis of Financial Condition and Results of Operations. ( form 10-K) | Overview
Basis of Presentation
We have one operating segment.
Recent Developments
Initial Public Offering
November Follow-On Offering
M & A
Factors Affecting Operating Results
We believe that the future growth and profitability of our business depend on numerous factors, including the following:
Acquiring New Customers
Expanding Wallet Share with Existing Customers
Maintaining Performance Through Macroeconomic Environments
Developing New Products to Expand Our Revenue Opportunity with Existing Customers
Profitably Managing our Growth
Our ability to grow profitably depends on our ability to manage our cost structure. Our costs are affected by third-party costs including government fees and data vendors, as these third-parties have discretion to adjust pricing, although these third-party fees are typically invoiced to our customers as direct pass-through costs.
COVID-19
Recently Issued Accounting Standards
See Note 2 to the audited consolidated financial statements included elsewhere in this Annual Report for disclosure of the impact that recent accounting pronouncements may have on the consolidated financial statements.
Components of our Results of Operations
Revenues
Operating Expenses
We incur the following expenses related to our cost of revenues and operating expenses:
•
•
•
•
Other Expense ( Income)
Our other expense ( income) consists of the following:
•
Interest Expense: Relates primarily to our debt service costs and, to a lesser extent, the interest-related expenses of our interest rate swaps and the interest on our capital lease obligations. Additionally, interest expense includes the amortization of deferred financing costs.
•
Interest Income: We earn interest income on our cash and cash equivalent balances held in interest-bearing accounts. We also earn interest income on our short-term investments which are fixed-time deposits having a maturity date within twelve months.
•
Loss on Extinguishment of Debt: Reflects losses on the extinguishment of certain debt.
•
Provision for Income Taxes
The increase in revenues was primarily driven by:
•
•
increased revenues of $ 39.1 million attributable to new customers, and
•
revenues of $ 24.6 million attributable to our acquisitions, which were all within the first year of acquisition in 2021.
The Company experienced high demand among customers in the essential retail, e-commerce, transportation and home delivery, technology, and business / financial services and flexible workforce / staffing verticals during 2021. Pricing was relatively stable across all periods.
The increase in cost of services was primarily due to:
•
•
•
foreign currency exchange losses of $ 0.5 million due to the impact of foreign exchange rate volatility, and
•
a number of cost of services related operating expense increases attributable to insurance, software licenses, and other expenses related to the increased revenue volumes experienced in 2021.
The increase in cost of services was partially offset by:
•
a number of other operating expense decreases including a decrease in travel-related expenses due to COVID-19 related restrictions.
Product and Technology Expense
The increase in product and technology expense was primarily due to:
•
a $ 7.3 million increase in personnel-related and professional service fee expenses as a result of additional investments made to enhance our products, solutions, and technology, and
•
a $ 4.4 million increase in software licensing related expenses.
The increase in product and technology was partially offset by:
•
a $ 2.5 million decrease in third-party fees related to a one-time product and technology organization restructuring that took place in 2020 and did not continue into 2021.
Selling, General, and Administrative Expense
Selling, general, and administrative expense increased primarily due to:
•
•
•
•
a $ 3.5 million increase in share-based compensation expenses as a result of performance related vesting related to the Company's IPO, the November Follow-On, and incremental awards granted in the fourth quarter of 2021, offset by accelerated vesting related to the Silver Lake Transaction that did not reoccur in 2021,
•
a $ 2.0 million increase in legal expenses ( see Note 12 to the audited consolidated financial statements included elsewhere in this Annual Report), and
•
The increase in selling, general, and administrative expense was partially offset by:
•
decreases in bad debt and travel expenses.
Depreciation and Amortization
Depreciation and amortization $ 142,815 $ 135,057 $
2,105 $ 6,124 $ 143,286
4,514 $ ( 741) $ 51,687
Interest expense was $ 25.1 million for the year ended December 31, 2021 ( Successor), compared to $ 47.9 million for the period from February 1, 2020 through December 31, 2020 ( Successor) and $ 4.5 million for the period from January 1, 2020 through January 31, 2020 ( Predecessor). On a pro forma basis, interest expense was $ 51.7 million for the twelve months ended December 31, 2020. Interest expense for the year ended December 31, 2021 ( Successor) decreased by $ 26.6 million, or 51.4%, compared to the twelve months ended December 31, 2020, on a pro forma basis.
Interest income decreases were primarily due to general decreases in interest rates.
Loss on Extinguishment of Debt
Transaction Expenses, Change in Control
22,370 $ ( 22,370) $ 9,423
The increase in our provision for income taxes was primarily due to the pre-tax income in 2021, the tax impact of high GILTI inclusion, and nondeductible executive share-based compensation expense incurred during the year ended December 31, 2021 ( Successor).
Net Income ( Loss) and Net Income ( Loss) Margin
The improvement in our net income ( loss) margin is attributable to our ability to leverage operating efficiencies to control our overall expenses while increasing revenue and our reduction in interest expense as a result of the February 2021 refinancing.
Key Operating and Financial Metrics
Adjusted EBITDA and Adjusted EBITDA Margin
Growth in Adjusted EBITDA was driven primarily from revenue growth attributed to new and existing customers and margin expansion attributed to increased automation, cost efficiencies, and operating leverage.
Net income ( loss) $ 16,051 $ ( 47,492) $ ( 36,530) $ 20,447 $ ( 63,575) Interest expense, net
Adjusted Net Income and Adjusted Diluted Earnings Per Share
Acquisition-related
Adjusted Net Income $ 142,399 $ 63,895 $ 1,371 $ 351 $ 65,617
Acquisition-related
0.01 $ 0.00 $ 0.50
( a)
Liquidity and Capital Resources
Liquidity
Long-Term Debt
Cash Flow Analysis
Comparison of Cash Flows for the Year Ended December 31, 2021 ( Successor) compared to the Period from February 1, 2020 through December 31, 2020 ( Successor) and for the Period from January 1, 2020 through January 31, 2020 ( Predecessor)
Cash Flows from Operating Activities
Cash Flows from Investing Activities
Cash Flows from Financing Activities
Notes to the Unaudited Supplemental Pro Forma Financial Information Presented in Management's Discussion and Analysis of Financial Condition and Results of Operations
Note 1. Basis of Presentation & Description of the Transactions
The Silver Lake Transaction and Silver Lake Transaction Refinancing
The allocation of the purchase price is based on the fair value of assets acquired and liabilities assumed as of the acquisition date, less transaction expenses funded by transaction proceeds. The following table summarizes the consideration paid and the amounts recognized for the assets acquired and liabilities assumed ( in thousands):
Consideration
1,556,810
19,148
1,575,958
145,277
Note 2. Notes to Unaudited Pro Forma Consolidated Statements of Operations
The following adjustments were made related to the unaudited pro forma consolidated statement of operations for the year ended December 31, 2020:
Silver Lake Transaction Accounting Adjustments
a)
b)
Silver Lake Transaction Refinancing Accounting Adjustments
c)
d)
Silver Lake Transactions Accounting Adjustments
e)
Contractual Obligations and Commitments
The following table summarizes our contractual obligations and commitments as of December 31, 2021 that require us to make future cash payments:
( in thousands) 2022 2023 2024 2025 2026 Thereafter Total Debt Principal ( 1) $ - $ - $ - $ - $
( 1)
As of December 31, 2021, the Company had no standby letters of credit or other contingently available credit outstanding.
Recent Accounting Pronouncements
See Note 2 to the audited consolidated financial statements included in Part II, Item 8 of this Annual Report for a full description of recent accounting pronouncements.
Critical Accounting Policies and Estimates
Revenue Recognition
Business Combinations
Share-Based Compensation
Pre-IPO Valuation of Equity
•
our current and historical operating performance;
•
our expected future operating performance;
•
our financial condition at the grant date;
•
the liquidation rights and preferences of our equity;
•
any recent privately negotiated sales of our securities to independent third parties;
•
the amount of debt on our balance sheet;
•
the business risks inherent in our business and industry generally; and
•
the market performance of comparable public companies.
Long-Lived Assets
Goodwill
Income Taxes
Jumpstart Our Business Startups Act of 2012
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