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REVENUE UP 51%; EPS RISES TO $0.17; 2021 OUTLOOK INCREASED

LOUISVILLE, Ky.--(BUSINESS WIRE)--$SYPR--Sypris Solutions, Inc. (Nasdaq/GM: SYPR) today reported financial results for its second quarter ended July 4, 2021.


HIGHLIGHTS

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  • Revenue for the second quarter increased 51.4% year-over-year and 30.0% sequentially, driven by the accelerating expansion of shipments at Sypris Technologies.
  • Gross profit increased 103.2% year-over-year and 137.3% sequentially, while gross margin expanded to 16.6%, up 420 basis points over the prior year and up 750 basis points sequentially, with both segments reporting margin expansion.
  • Earnings per diluted share rose to $0.17 per share, up from a loss of $0.02 per share in the prior-year period, reflecting strong revenue growth, positive operating performance and the forgiveness of the Paycheck Protection Program (“PPP”) loan by the Small Business Administration (“SBA”).
  • Backlog for Sypris Electronics increased 29.3% year-over-year and 51.9% year-to-date on the strength of orders in the first half of 2021. Similarly, backlog for the energy products of Sypris Technologies increased 56.4% year-over-year and 32.3% year-to-date, while the order board from commercial vehicle customers continued to increase significantly.
  • Sypris Electronics revenue expanded 30.0% sequentially, while gross profit increased 179.1% and gross margin reached 20.4% of sales.
  • Sypris Technologies revenue increased 130.2% year-over-year and 29.9% sequentially, while gross profit surged and gross margin expanded significantly to 14.6%.
  • The Company updated its full-year outlook for 2021, with revenue now expected to increase 30-35% year-over-year, up from prior guidance of 25-30% in May and 20% in March. The continued improvement in the Company’s financial performance is expected to accelerate during the second half of 2021, with gross margin expected to expand 300-400 basis points over the comparable period of 2020. Cash flow from operations for 2021 is expected to increase significantly year-over-year.
  • Sypris Electronics announced a number of important contract awards during the quarter, including the following:
    • A contract to manufacture and test electronic assemblies for power management and other systems for a Deep Space program from a U.S. DOD prime contractor, with production to begin during 2021.
    • An agreement to manufacture and test electronic power supply modules for multiple high-reliability Subsea Communication Networks, with production to begin during 2021 and continue into 2022.
    • A full-rate production award from a U.S. DOD prime contractor to manufacture and test multiple electronic power supply modules for a large mission-critical Electronic Warfare program for the U.S. Navy, with production to begin during 2021.
  • Sypris Technologies announced awards for specialty high-pressure closures for use in two large projects, the Golden Pass LNG Export project and the Cherry Point Refinery Renewable Diesel Optimization project, with shipments expected to be completed during 2021.
  • Subsequent to quarter end, Sypris Electronics announced a contract award to manufacture and test embedded circuit card assemblies that will perform certain Cryptographic functions for the Army Key Management System, with production to begin during 2021.

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“Both operating segments reported notable improvements in their financial results for the quarter, contributing to a strong quarter for the Company and positioning the business for further improvements during the second half. Backlog for Sypris Electronics is up 29.3% from the second quarter of 2020 and up 51.9% since the beginning of the year, while the OEM backlog of Class 8 commercial vehicles is estimated to be up 187% year-over-year,” commented Jeffrey T. Gill, President and Chief Executive Officer.

“Backlog for Sypris Electronics in 2021 has reached its highest level in eleven years, with deliveries now scheduled well into 2022. Shipments increased during the second quarter, up 30.0% sequentially from the first quarter. We expect shipments from our recent contract wins to begin to contribute to revenue in the third quarter and provide meaningful sequential growth in the top line going forward.

“Demand from customers serving the automotive, commercial vehicle, sport utility and off-highway markets has continued to accelerate. Freight demand is currently overwhelming industry capacity, with supply chain constraints currently dictating OEM production levels. The continued strong outlook for these markets gives us a clear path to support our growth objectives going forward.

“As we discussed on our previous call, activity levels in the oil and gas industry remained challenging during the first half of 2021. However, steadily improving commodity prices, gradually reopening economies and increasing pipeline activity have resulted in increased orders recently, and we continue to anticipate year-over-year growth of our energy related products.”

Concluding, Mr. Gill said, “Our customer base and the markets we serve are considerably more diversified than at any point in our recent history. As an essential business, we have a responsibility to ensure that our defense, communications, energy, and transportation sectors remain vibrant. We will continue to monitor developments, act promptly to mitigate risks and take the necessary steps required to ensure deliveries continue to be made to our customers in a timely manner.”

Second Quarter Results

The Company reported revenue of $26.0 million for the second quarter of 2021, compared to $17.2 million for the prior-year period. Additionally, the Company reported net income of $3.8 million for the second quarter of 2021, or $0.17 per diluted share, compared to a net loss of $0.3 million, or $0.02 per share, for the prior-year period. Net income in the second quarter of 2021 included the recognition of a $3.6 million gain on the forgiveness of the Company’s PPP loan. Results for the second quarter of 2020 include net gains of $0.8 million from the sale of idle assets by Sypris Technologies.

For the six months ended July 4, 2021, the Company reported revenue of $46.0 million compared with $39.6 million for the first half of 2020. The Company reported net income of $2.2 million, or $0.10 per diluted share, compared with a net loss of $0.7 million, or $0.03 per share, for the prior year period. Results for the six months ended July 4, 2021, include the gain from the forgiveness of the Company’s PPP loan noted above. Results for the six months ended July 5, 2020, include gains of $1.0 million from the sale of idle assets by Sypris Technologies.

Sypris Technologies

Revenue for Sypris Technologies was $17.1 million in the second quarter of 2021 compared to $7.4 million for the prior-year period, reflecting the positive impact of new programs and the strength of the commercial vehicle market to drive revenue to its highest quarterly level since the first quarter of 2016. Gross profit for the second quarter of 2021 was $2.5 million, or 14.6% of revenue, compared to $0.2 million, or 3.1% of revenue, for the same period in 2020. Gross profit for the second quarter of 2021 benefitted from the significant increase in shipments, higher levels of fixed cost absorption and greatly improved productivity.

Sypris Electronics

Revenue for Sypris Electronics was $8.8 million in the second quarter of 2021 compared to $9.7 million for the prior-year period. Shipments during the second quarter of 2021 were lower than the prior-year period as production tapered down on a limited rate production contract for a key program that is expected to ramp up beginning late in the third quarter as full rate production is launched. Gross profit for the second quarter of 2021 was $1.8 million, or 20.4% of revenue, compared to $1.9 million, or 19.5% of revenue, for the same period in 2020.

Outlook

Commenting on the future, Mr. Gill added, “Demand has strengthened significantly from customers serving the automotive, commercial vehicle and sport utility markets, with Class 8 forecasts showing year-over-year production increases of over 34.6% for 2021 and an additional 24.6% in 2022. Similarly, demand from customers in the defense and communications sector remains robust. While the energy market continues to be volatile, we continue to secure new orders on important projects around the world.

“The second quarter marks the turning point for the Company. We expect the significant growth in orders and strength of our markets to have a substantial impact on our financial results through the second half of the year, with a strong rise in revenue, margins and income forecast for the period and continuing going forward.

“As a result, we have updated our outlook to include a 30-35% growth in the Company’s top line in 2021, which is up from our previous guidance of 25-30% in May and 20% in March. Gross margin is forecast to expand 300 to 400 basis points year-over-year during the second half of 2021, which is expected to contribute to strong double-digit percentage growth in cash flow generated from operations for the full year.

“We remain focused on meeting the important needs of our customers who serve defense, communications, energy, transportation, and other critical infrastructure industries. With a strong backlog and recovering markets, we believe that the remainder of 2021 has the potential to be very positive for Sypris.”

About Sypris Solutions

Sypris Solutions is a diversified provider of truck components, oil and gas pipeline components and aerospace and defense electronics. The Company produces a wide range of manufactured products, often under multi-year, sole-source contracts. For more information about Sypris Solutions, visit its Web site at www.sypris.com.

Forward Looking Statements

This press release contains “forward-looking” statements within the meaning of the federal securities laws. Forward-looking statements include our plans and expectations of future financial and operational performance. Such statements may relate to projections of the company’s revenue, earnings, and other financial and operational measures, our liquidity, our ability to mitigate or manage disruptions posed by the current coronavirus disease (“COVID-19”), and the impact of COVID-19 and economic conditions on our future operations, among other matters. The COVID-19 pandemic has resulted, and is likely to continue to result, in significant economic disruption and has and will likely adversely affect our business. The Company has continued to operate at each location and sought to remain compliant with government regulations imposed due to the COVID-19 pandemic.

Each forward-looking statement herein is subject to risks and uncertainties, as detailed in our most recent Form 10-K and Form 10-Q and other SEC filings. Briefly, we currently believe that such risks also include the following: the impact of COVID-19 and economic conditions on our future operations; possible public policy response to the pandemic, including legislation or restrictions that may impact our operations or supply chain; our failure to successfully complete final contract negotiations with regard to our announced contract “orders”, “wins” or “awards”; our failure to successfully win new business; the termination or non-renewal of existing contracts by customers; our failure to achieve and maintain profitability on a timely basis by steadily increasing our revenues from profitable contracts with a diversified group of customers, which would cause us to continue to use existing cash resources or require us to sell assets to fund operating losses; breakdowns, relocations or major repairs of machinery and equipment, especially in our Toluca Plant; volatility of our customers’ forecasts especially in the commercial truck markets and our contractual obligations to meet current scheduling demands and production levels (especially in our Toluca Plant), which may negatively impact our operational capacity and our effectiveness to integrate new customers or suppliers, and in turn cause increases in our inventory and working capital levels; cost, quality and availability or lead times of raw materials such as steel, component parts (especially electronic components), natural gas or utilities; the cost, quality, timeliness, efficiency and yield of our operations and capital investments, including the impact of tariffs, product recalls or related liabilities, employee training, working capital, production schedules, cycle times, scrap rates, injuries, wages, overtime costs, freight or expediting costs; dependence on, retention or recruitment of key employees and distribution of our human capital; disputes or litigation involving governmental, supplier, customer, employee, creditor, stockholder, product liability, warranty or environmental claims; the fees, costs and supply of, or access to, debt, equity capital, or other sources of liquidity; our ability to comply with the requirements of the SBA and maintain forgiveness of all or a portion of our Paycheck Protection Program loan; our inability to develop new or improved products or new markets for our products; our reliance on a few key customers, third party vendors and sub-suppliers; inventory valuation risks including excessive or obsolescent valuations or price erosions of raw materials or component parts on hand or other potential impairments, non-recoverability or write-offs of assets or deferred costs; other potential weaknesses in internal controls over financial reporting and enterprise risk management; failure to adequately insure or to identify product liability, environmental or other insurable risks; unanticipated or uninsured disasters, public health crises, losses or business risks; unanticipated or uninsured product liability claims; the costs of compliance with our auditing, regulatory or contractual obligations; labor relations; strikes; union negotiations; pension valuation, health care or other benefit costs; costs associated with environmental claims relating to properties previously owned; our inability to patent or otherwise protect our inventions or other intellectual property from potential competitors; adverse impacts of new technologies or other competitive pressures which increase our costs or erode our margins; our reliance on revenues from customers in the oil and gas and automotive markets, with increasing consumer pressure for reductions in environmental impacts attributed to greenhouse gas emissions and increased vehicle fuel economy; U.S. government spending on products and services that Sypris Electronics provides, including the timing of budgetary decisions; changes in licenses, security clearances, or other legal rights to operate, manage our work force or import and export as needed; risks of foreign operations; currency exchange rates; war, terrorism, or political uncertainty; cyber security threats and disruptions; inaccurate data about markets, customers or business conditions; our ability to maintain compliance with the Nasdaq listing standards minimum closing bid price; risk related to owning our common stock including increased volatility; or unknown risks and uncertainties. We undertake no obligation to update our forward-looking statements, except as may be required by law.

SYPRIS SOLUTIONS, INC.
Financial Highlights
(In thousands, except per share amounts)
 

Three Months Ended

July 4,

 

July 5,

2021

 

2020

(Unaudited)
Revenue

$

25,969

$

17,153

 

Net income (loss)

$

3,823

$

(348

)

Income (loss) per common share:
Basic

$

0.18

$

(0.02

)

Diluted

$

0.17

$

(0.02

)

Weighted average shares outstanding:
Basic

 

21,356

 

21,016

 

Diluted

 

22,846

 

21,016

 

 
 
 
 

Six Months Ended

July 4,

 

July 5,

2021

 

2020

(Unaudited)

Revenue

$

45,951

$

39,578

 

Net income (loss)

$

2,193

$

(653

)

Income (loss) per common share:
Basic

$

0.10

$

(0.03

)

Diluted

$

0.10

$

(0.03

)

Weighted average shares outstanding:
Basic

 

21,475

 

21,005

 

Diluted

 

22,979

 

21,005

 

Sypris Solutions, Inc.

Consolidated Statements of Operations

(in thousands, except for per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

 

July 4,

 

July 5,

 

July 4,

 

July 5,

 

 

 

 

2021

 

2020

 

2021

 

2020

 

 

 

 

(Unaudited)

 

(Unaudited)

Net revenue:

 

 

 

 

 

 

 

 

 

 

Sypris Technologies

 

 

$

17,139

 

 

$

7,445

 

 

$

30,329

 

 

$

21,162

 

Sypris Electronics

 

 

 

8,830

 

 

 

9,708

 

 

 

15,622

 

 

 

18,416

 

Total net revenue

 

 

 

25,969

 

 

 

17,153

 

 

 

45,951

 

 

 

39,578

 

Cost of sales:

 

 

 

 

 

 

 

 

 

Sypris Technologies

 

 

 

14,630

 

 

 

7,216

 

 

 

26,649

 

 

 

18,440

 

Sypris Electronics

 

 

 

7,030

 

 

 

7,816

 

 

 

13,177

 

 

 

15,292

 

Total cost of sales

 

 

 

21,660

 

 

 

15,032

 

 

 

39,826

 

 

 

33,732

 

Gross profit:

 

 

 

 

 

 

 

 

 

 

Sypris Technologies

 

 

 

2,509

 

 

 

229

 

 

 

3,680

 

 

 

2,722

 

Sypris Electronics

 

 

 

1,800

 

 

 

1,892

 

 

 

2,445

 

 

 

3,124

 

Total gross profit

 

 

 

4,309

 

 

 

2,121

 

 

 

6,125

 

 

 

5,846

 

Selling, general and administrative

 

 

3,416

 

 

 

2,981

 

 

 

6,298

 

 

 

6,429

 

Operating income (loss)

 

 

893

 

 

 

(860

)

 

 

(173

)

 

 

(583

)

Interest expense, net

 

 

 

211

 

 

 

193

 

 

 

433

 

 

 

420

 

Other expense (income), net

 

 

145

 

 

 

(769

)

 

 

366

 

 

 

(486

)

Forgiveness of PPP Loan and related interest

 

 

(3,599

)

 

 

-

 

 

 

(3,599

)

 

 

-

 

Income (loss) before taxes

 

 

4,136

 

 

 

(284

)

 

 

2,627

 

 

 

(517

)

Income tax expense, net

 

 

 

313

 

 

 

64

 

 

 

434

 

 

 

136

 

Net income (loss)

 

 

$

3,823

 

 

$

(348

)

 

$

2,193

 

 

$

(653

)

Income (loss) per common share:

 

 

 

 

 

 

 

 

Basic

 

 

 

$

0.18

 

 

$

(0.02

)

 

$

0.10

 

 

$

(0.03

)

Diluted

 

 

 

$

0.17

 

 

$

(0.02

)

 

$

0.10

 

 

$

(0.03

)

Dividends declared per common share

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

 

 

21,356

 

 

 

21,016

 

 

 

21,475

 

 

 

21,005

 

Diluted

 

 

 

 

22,846

 

 

 

21,016

 

 

 

22,979

 

 

 

21,005

 

Sypris Solutions, Inc.
Consolidated Balance Sheets
(in thousands, except for share data)
 

July 4,

 

December 31,

2021

 

2020

(Unaudited)

 

(Note)

ASSETS
Current assets:
Cash and cash equivalents

$

18,194

 

$

11,606

 

Accounts receivable, net

 

10,479

 

 

7,234

 

Inventory, net

 

23,317

 

 

16,236

 

Other current assets

 

5,146

 

 

4,360

 

Total current assets

 

57,136

 

 

39,436

 

Property, plant and equipment, net

 

11,313

 

 

10,161

 

Operating lease right-of-use assets

 

5,665

 

 

6,103

 

Other assets

 

4,552

 

 

5,008

 

Total assets

$

78,666

 

$

60,708

 

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable

$

13,798

 

$

6,734

 

Accrued liabilities

 

17,101

 

 

13,409

 

Operating lease liabilities, current portion

 

1,013

 

 

965

 

Finance lease obligations, current portion

 

447

 

 

393

 

Equipment financing obligations, current portion

 

265

 

 

-

 

Note payable - PPP Loan, current portion

 

-

 

 

1,186

 

Note payable - related party, current portion

 

2,500

 

 

-

 

Total current liabilities

 

35,124

 

 

22,687

 

 
Operating lease liabilities, net of current portion

 

5,420

 

 

5,941

 

Finance lease obligations, net of current portion

 

1,827

 

 

1,927

 

Equipment financing obligations, net of current portion

 

741

 

 

-

 

Note payable - PPP Loan, net of current portion

 

-

 

 

2,372

 

Note payable - related party, net of current portion

 

3,981

 

 

6,477

 

Other liabilities

 

14,875

 

 

6,529

 

Total liabilities

 

61,968

 

 

45,933

 

Stockholders’ equity:
Preferred stock, par value $0.01 per share, 975,150 shares authorized;
no shares issued

 

-

 

 

-

 

Series A preferred stock, par value $0.01 per share, 24,850 shares
authorized; no shares issued

 

-

 

 

-

 

Common stock, non-voting, par value $0.01 per share, 10,000,000 shares
authorized; no shares issued

 

-

 

 

-

 

Common stock, par value $0.01 per share, 30,000,000 shares authorized;
21,514,964 shares issued and 21,514,945 outstanding in 2021 and
21,302,194 shares issued and 21,300,958 outstanding in 2020

 

215

 

 

213

 

Additional paid-in capital

 

154,804

 

 

155,025

 

Accumulated deficit

 

(113,572

)

 

(115,765

)

Accumulated other comprehensive loss

 

(24,749

)

 

(24,698

)

Treasury stock, 19 and 1,236 in 2021 and 2020, respectively

 

-

 

 

-

 

Total stockholders’ equity

 

16,698

 

 

14,775

 

Total liabilities and stockholders’ equity

$

78,666

 

$

60,708

 

 
Note: The balance sheet at December 31, 2020, has been derived from the audited consolidated financial statements at that date but does not include all information and footnotes required by accounting principles generally accepted in the United States for a complete set of financial statements.
Sypris Solutions, Inc.
Consolidated Cash Flow Statements
(in thousands)
 

Six Months Ended

July 4,

 

July 5,

 

2021

 

 

 

2020

 

(Unaudited)
Cash flows from operating activities:
Net income (loss)

 $

                   2,193

 

 $

                    (653

)

Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization

 

                      1,274

 

 

                     1,259

 

Forgiveness of PPP Loan and related interest

 

                     (3,599

)

 

                          -

 

Deferred income taxes

 

                         266

 

 

                          -

 

Stock-based compensation expense

 

                         163

 

 

                       228

 

Deferred loan costs recognized

 

3

 

 

7

 

Net loss (gain) on the sale of assets

 

                          11

 

 

                      (958

)

Provision for excess and obsolete inventory

 

                          65

 

 

                       125

 

Non-cash lease expense

 

                         438

 

 

                       491

 

Other noncash items

 

                          90

 

 

                       100

 

Contributions to pension plans

 

                        (254

)

 

                        (34

)

Changes in operating assets and liabilities:
Accounts receivable

 

                     (3,270

)

 

                     1,053

 

Inventory

 

                     (7,063

)

 

                     1,813

 

Prepaid expenses and other assets

 

                        (335

)

 

                      (457

)

Accounts payable

 

                      7,218

 

 

                    (2,697

)

Accrued and other liabilities

 

                    11,406

 

 

                    (1,318

)

Net cash provided by (used in) operating activities

 

                      8,606

 

 

                    (1,041

)

Cash flows from investing activities:
Capital expenditures

 

(1,213

)

 

(833

)

Proceeds from sale of assets

 

                          10

 

 

                     1,968

 

Net cash (used in) provided by investing activities

 

                     (1,203

)

 

                     1,135

 

Cash flows from financing activities:
Principal payments on finance lease obligations

 

                        (211

)

 

                      (320

)

Principal payments on equipment financing obligations

 

                         (65

)

 

                          -

 

Proceeds from Paycheck Protection Program loan

 

                           -

 

 

                     3,558

 

Indirect repurchase of shares for minimum statutory tax withholdings

 

                        (382

)

 

                          (7

)

Net cash (used in) provided by financing activities

 

                        (658

)

 

                     3,231

 

Effect of exchange rate changes on cash balances

 

                        (157

)

 

                      (610

)

Net increase in cash and cash equivalents

 

                      6,588

 

 

                     2,715

 

Cash and cash equivalents at beginning of period

 

                    11,606

 

 

                     5,095

 

Cash and cash equivalents at end of period

$

                 18,194

 

$

                  7,810

 

 

 


Contacts

Anthony C. Allen
Chief Financial Officer
(502) 329-2000


Read full story here

LEMONT, Ill.--(BUSINESS WIRE)--Residential and commercial buildings consume nearly three-quarters of U.S. electricity — during peak hours, that share reaches 80 percent. Simulating that energy use on a broad scale can help identify ways to reduce it, cutting greenhouse gas emissions in the process.


In a recent study, researchers from the U.S. Department of Energy's (DOE) Oak Ridge National Laboratory (ORNL) assessed energy use across more than 178,000 buildings using supercomputing power at DOE's Argonne National Laboratory. The effort is part of a larger goal to model all of the nation's 129 million buildings. If you were to tally up the energy bills from all of those buildings, the annual total would be around $403 billion.

The research team developed the Automatic Building Energy Modeling (AutoBEM) software, which is used to detect buildings, generate models and simulate building energy use for very large areas. Creating an energy picture of a large network of buildings can illuminate areas of opportunity for planning the most effective energy-saving measures.

For the study, scientists partnered with a municipal utility to create a "digital twin" of 178,337 buildings in Chattanooga, Tennessee. To do this, they integrated the utility's information on energy use for every building down to 15-minute intervals with satellite images, tax assessments and other data sources. Then they projected the effects of eight energy conservation measures on energy use, demand, cost and emissions. To run the simulations, the team used the Theta supercomputer at the Argonne Leadership Computing Facility (ALCF), a DOE Office of Science User Facility.

The AutoBEM simulation of Chattanooga buildings found that 99 percent of them saw energy savings for the set of energy efficiency technologies evaluated. Increasing the efficiency of the heating, ventilation and air conditioning (HVAC) system by 7.5 percent saved $28,500 in annual energy costs averaged across 177,307 buildings, for example. Measures such as improved HVAC efficiency, space sealing, insulation or lighting each could have the potential to offset 500 to 3,000 pounds of carbon dioxide per building, the researchers concluded. Their paper was published in the journal Energies.

"What we do in buildings will have a long-lasting impact," said Joshua Ryan New, a computer scientist at ORNL and lead study author. "Creating a more sustainable and resilient building stock will have an impact that I might not see in my lifetime, but my grandchildren's grandchildren will be thankful we got that right."

Read the full story here.


Contacts

Christopher J. Kramer
Head of Media Relations
Argonne National Laboratory
This email address is being protected from spambots. You need JavaScript enabled to view it.
Office: 630.252.5580

LOS ANGELES & BOCA RATON, Fla.--(BUSINESS WIRE)--NextGen Acquisition Corporation (NASDAQ:NGAC) (“NextGen”) a publicly-traded special purpose acquisition company, reminds its shareholders to vote in favor of the approval of NextGen’s proposed business combination with Xos, Inc. (“Xos” or the “Company”), a leading manufacturer of fully electric Class 5 to Class 8 commercial vehicles, and the related proposals to be voted upon at NextGen’s extraordinary general meeting on August 18, 2021.


The extraordinary general meeting of NextGen’s shareholders to approve, among other things, the proposed business combination will be held in a virtual format and physically at the offices of Skadden, Arps, Slate, Meagher & Flom LLP located at One Manhattan West, New York, NY 10001 on August 18, 2021 at 9:00 a.m. Eastern Time or virtually via live webcast at https://www.cstproxy.com/nextgenacq/sm2021. NextGen strongly recommends that shareholders attend the meeting virtually. NextGen’s shareholders of record as of the close of business on the record date of July 2, 2021 (the “Record Date”) should submit their vote promptly and no later than 11:59 p.m. Eastern Time on August 17, 2021.

It remains important that all holders who owned NextGen’s shares as of July 2, 2021 – even if they have since sold their shares – vote by 11:59 p.m. Eastern Time on August 17, 2021 to ensure the deal proceeds in a timely manner.

We recommend that you vote your shares online, though you may also vote by mail or telephone. More information on how to vote can be found at https://www.nextgenacq.com/vote.html or, if you hold in street name, by following the instructions provided by your broker, bank or other nominee on the Voting Instruction Form mailed or e-mailed to you. If you did not receive or have misplaced your Voting Instruction Form, contact your bank, broker or other nominee to obtain your control number in order to vote.

Holders of NextGen’s shares who need assistance voting or have questions regarding the extraordinary general meeting may contact NextGen’s proxy solicitor, Morrow Sodali LLC, toll-free at toll-free at (800) 662-5200 or (203) 658-9400 or by email at This email address is being protected from spambots. You need JavaScript enabled to view it..

About NextGen

NextGen Acquisition Corporation is a blank check company whose business purpose is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. NextGen is led by George Mattson, a former Partner at Goldman, Sachs & Co., and Gregory Summe, former Chairman and CEO of Perkin Elmer and Vice Chairman of the Carlyle Group. NextGen is listed on NASDAQ under the ticker symbol "NGAC." For more information, please visit www.nextgenacq.com.

About Xos, Inc.

Xos, Inc. is an electric mobility company dedicated to making fleets more efficient. Xos designs and develops fully electric battery mobility systems specifically for commercial fleets. The company’s primary focus is on medium- and heavy-duty commercial vehicles that travel on “last mile” routes (i.e. predictable routes that are less than 200 miles per day). The company leverages its proprietary technologies to provide commercial fleets zero emission vehicles that are easier to maintain and more cost-efficient on a total cost of ownership (TCO) basis than their internal combustion engine and commercial EV counterparts. For more information, please visit www.xostrucks.com.

IMPORTANT LEGAL INFORMATION

Additional Information and Where to Find It

This document relates to a proposed transaction between Xos and NextGen. This document is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the potential transaction and shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of 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 state or jurisdiction. In connection with the proposed transaction, NextGen filed a registration statement on Form S-4 with the SEC on May 14, 2021, as amended on June 25, 2021, July 22, 2021, July 28, 2021 and July 29, 2021, which was declared effective by the SEC on July 30, 2021 and includes a document that serves as a prospectus and proxy statement of NextGen (the “proxy statement/prospectus”). A definitive proxy statement/prospectus has been mailed to all NextGen’s shareholders of record as of July 2, 2021, the record date established for the extraordinary general meeting of shareholders relating to the proposed transaction. NextGen also will file other documents regarding the proposed transaction with the SEC. Before making any voting decision, investors and security holders of NextGen are urged to read the registration statement, the proxy statement/prospectus included therein and all other relevant documents filed or that will be filed with the SEC in connection with the proposed transaction as they become available because they will contain important information about the proposed transaction. Investors and security holders may obtain free copies of the registration statement, the proxy statement/prospectus included therein and all other relevant documents filed or that will be filed with the SEC by NextGen through the website maintained by the SEC at www.sec.gov. The documents filed by NextGen with the SEC also may be obtained free of charge at NextGen’s website at https://www.nextgenacq.com/nextgen-i.html or upon written request to 2255 Glades Road, Suite 324A, Boca Raton, Florida 33431.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws with respect to the proposed transaction between Xos and NextGen, including statements regarding the anticipated timing of the transaction and the products, customers and markets of Xos. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the risk that the transaction may not be completed in a timely manner or at all, which may adversely affect the price of NextGen’s securities, (ii) the risk that the transaction may not be completed by NextGen’s business combination deadline and the potential failure to obtain an extension of the business combination deadline if sought by NextGen, (iii) the failure to satisfy the conditions to the consummation of the transaction, including the adoption of the Merger Agreement by the shareholders of NextGen, the availability of the minimum amount of cash available in the trust account in which substantially all of the proceeds of NextGen's initial public offering and private placements of its warrants have been deposited following redemptions by NextGen’s public shareholders and the receipt of certain governmental and regulatory approvals, (iv) the lack of a third party valuation in determining whether or not to pursue the proposed transaction, (v) the inability to complete the PIPE investment in connection with the transaction, (vi) the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement, (vii) the effect of the announcement or pendency of the transaction on Xos’s business relationships, operating results, and business generally, (viii) risks that the proposed transaction disrupts current plans and operations of Xos and potential difficulties in Xos employee retention as a result of the transaction, (ix) the outcome of any legal proceedings that may be instituted against Xos or against NextGen related to the Merger Agreement or the proposed transaction, (x) the ability to maintain the listing of NextGen’s securities on a national securities exchange, (xi) the price of NextGen’s securities may be volatile due to a variety of factors, including changes in the seven competitive and regulated industries in which NextGen plans to operate or Xos operates, variations in operating performance across competitors, changes in laws and regulations affecting NextGen’s or Xos’ business, Xos’ inability to implement its business plan or meet or exceed its financial projections and changes in the combined capital structure, (xii) the ability to implement business plans, forecasts, and other expectations after the completion of the proposed transaction, and identify and realize additional opportunities, and (xiii) the risk of downturns and a changing regulatory landscape in the highly competitive electric vehicle industry. 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 NextGen’s registration statement on Form S-1 (File No. 333-248921), the registration statement on Form S-4 discussed above, the definitive proxy statement/prospectus and other documents filed or that may be filed by NextGen 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. 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 Xos and NextGen 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 Xos nor NextGen gives any assurance that either Xos or NextGen, or the combined company, will achieve its expectations.


Contacts

Xos Investor Relations
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Xos Media Relations
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NextGen
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DUBLIN--(BUSINESS WIRE)--The "Oil and Gas Wells Drilling Services Global Market Report 2021: COVID-19 Impact and Recovery to 2030" report has been added to ResearchAndMarkets.com's offering.


The global oil and gas wells drilling services market is expected to grow from $146.57 billion in 2020 to $183.9 billion in 2021 at a compound annual growth rate (CAGR) of 25.5%. The market is expected to reach $227.77 billion in 2025 at a CAGR of 5%.

Major companies in the oil and gas wells drilling services market include Schlumberger Ltd; Halliburton; Transocean Ltd; Weatherford International plc and Baker Hughes Incorporated.

The oil and gas wells drilling services market consists of sales of oil and gas wells drilling services by entities (organizations, sole traders or partnerships) that undertake oil and gas wells drilling services for others on a contract or fee basis. The oil and gas wells drilling services industry includes contractors specializing in spudding in, drilling in, redrilling, and directional drilling.

This market covers outsourced drilling services sold on a contract basis to oil and gas extraction companies and does not include any in-house drilling services of oil and gas extraction companies. The oil and gas wells drilling services market is segmented into onshore drilling services and offshore drilling services.

North America was the largest region in the global oil and gas wells drilling services market, accounting for 29% of the market in 2020. Middle East was the second largest region accounting for 16% of the global oil and gas wells drilling services market. Western Europe was the smallest region in the global oil and gas wells drilling services market.

Oil and gas wells drilling companies are adopting 3D visualization systems to reduce project cycle times and increase drilling accuracy. 3D visualization system generates a 3D model of a wellbore and real-time drilling data to monitor and optimize drilling process.

This system facilitates automatic diagnosis of drilling problems and improves and streamlines collaboration by allowing geoscientists and drilling engineers to virtually locate, see, and test drilling sites, resulting in significant cost savings of up to 20% and reduction in non-productive drilling time by 20%.

These systems are integrated with asset teams by means of software, thus facilitating precise and accurate placement of drill sites. For Instance, some of the major companies offering 3D visualization technology companies include eDrilling, Hexagon, Mechdyne, Landmark.

The rapid pace of innovation in the oil and gas exploration and drilling technologies is boosting production volumes and reducing production costs. Technological advances are allowing oil and gas wells drilling companies to enhance oil and gas recovery rates and considerably reduce production costs.

For instance, 3D seismic technology is being used to optimize exploration and drilling processes to enhance oil and gas production levels and cut down costs associated with exploration and drilling. Other areas of rapid technological advances in the oil and gas market include hydraulic fracturing and horizontal drilling.

Thus, advancements and innovation in exploration and drilling technologies are expected to drive the oil and gas wells drilling services market during the forecast period.

Key Topics Covered:

1. Executive Summary

2. Report Structure

3. Oil and Gas Wells Drilling Services Market Characteristics

3.1. Market Definition

3.2. Key Segmentations

4. Oil and Gas Wells Drilling Services Market Product Analysis

4.1. Leading Products/ Services

4.2. Key Features and Differentiators

4.3. Development Products

5. Oil and Gas Wells Drilling Services Market Supply Chain

5.1. Supply Chain

5.2. Distribution

5.3. End Customers

6. Oil and Gas Wells Drilling Services Market Customer Information

6.1. Customer Preferences

6.2. End Use Market Size and Growth

7. Oil and Gas Wells Drilling Services Market Trends and Strategies

8. Impact of COVID-19 on Oil and Gas Wells Drilling Services

9. Oil and Gas Wells Drilling Services Market Size and Growth

9.1. Market Size

9.2. Historic Market Growth, Value ($ Billion)

9.2.1. Drivers of the Market

9.2.2. Restraints on the Market

9.3. Forecast Market Growth, Value ($ Billion)

9.3.1. Drivers of the Market

9.3.2. Restraints on the Market

10. Oil and Gas Wells Drilling Services Market Regional Analysis

10.1. Global Oil and Gas Wells Drilling Services Market, 2020, by Region, Value ($ Billion)

10.2. Global Oil and Gas Wells Drilling Services Market, 2015-2020, 2020-2025F, 2030F, Historic and Forecast, by Region

10.3. Global Oil and Gas Wells Drilling Services Market, Growth and Market Share Comparison, by Region

11. Oil and Gas Wells Drilling Services Market Segmentation

11.1. Global Oil and Gas Wells Drilling Services Market, Segmentation by Type, Historic and Forecast, 2015-2020, 2020-2025F, 2030F, $ Billion

  • Onshore Drilling Services
  • Offshore Drilling Services

12. Oil and Gas Wells Drilling Services Market Metrics

12.1. Oil and Gas Wells Drilling Services Market Size, Percentage of GDP, 2015-2025, Global

12.2. Per Capita Average Oil and Gas Wells Drilling Services Market Expenditure, 2015-2025, Global

Companies Mentioned

  • Schlumberger Ltd
  • Halliburton
  • Transocean Ltd
  • Weatherford International plc
  • Baker Hughes Incorporated

For more information about this report visit https://www.researchandmarkets.com/r/gjyyeg


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

Electrified Fertilizer Customized for Fields and Farmers Rather Than Factories and Freight; Eliminates Expensive, Hazardous Supply Chain and Reduces GHG Emissions

SAN FRANCISCO--(BUSINESS WIRE)--Nitricity, an agtech startup with unique technology to produce renewable nitrogen fertilizer at point-of-use, announced today the close of a $5 million Series Seed investment round led by Energy Impact Partners, a global investment platform leading the transition to a sustainable future. The funding will enable the company to accelerate innovations and recruit top engineering talent in the climate tech and agriculture fields. The round included participation from new investor Fine Structure Ventures as well as existing investors including Lowercarbon Capital and MCJ Collective.


Nitrogen fertilizer has been one of the most important innovations of the past century, but it relies upon a highly centralized value chain that raises prices for farmers, requires dangerous transportation, and contributes 4-6% of global greenhouse gas emissions. Nitricity’s proprietary system connects directly to farm hardware and produces fertilizer using only air, water, and electricity. This breakthrough process has the potential to eliminate 1 gigaton of carbon equivalent per year from carbon dioxide and nitrous oxide while saving farmers money on even the cheapest fertilizer in the world.

“Applying nitrogen to the ground does not require emitting carbon to the sky,” said Nico Pinkowski, CEO and Co-Founder of Nitricity. “Nitricity creates fertilizers that are customized for fields and farmers, rather than optimized for factories and freight. Electrifying and decentralizing fertilizer production will provide farmers a better product, reduce emissions and improve safety. It’s as simple as that.”

Nitricity’s system is producing fertilizer on Terranova Ranch in Fresno County, as well as other farms in the region – one of the most productive agricultural territories in the world. Additionally, in collaboration with Fresno’s Center for Irrigation Technology, Nitricity is running a functional pilot system that is being used to fertigate processing tomatoes. The company also has a commercial-scale pilot that is being used to fertigate green peppers. Both projects use solar-fertilizer technology to enable an irrigation system to produce and inject its own nitrogen fertilizer compounds.

“Nitricity is redefining the fertilizer supply chain by putting farmers in the driver’s seat,” said Shayle Kann, Partner at Energy Impact Partners. “Instead of being reliant on a massive, centralized supply chain with high price volatility, farmers can produce exactly the fertilizer they need, on-farm, and reduce their climate impact in the process.”

Nitricity is currently hiring for a variety of roles. Please visit www.nitricity.co for more information.

About Nitricity

Nitricity produces ready-to-use nitrogen with only air, water and renewable electricity. Founded by a team of Ph.D. and post-doctoral students at Stanford University, the company is scaling the world's only on-farm, cost-effective, decarbonized solution to fertilizer production. For more information, please visit www.nitricity.co.

About Energy Impact Partners

Energy Impact Partners, LP (EIP) is a global investment platform leading the transition to a sustainable energy future. EIP brings together entrepreneurs and the world's most forward-looking energy and industrial companies to advance innovation. With over $2.0 billion in assets under management, EIP invests globally across venture, growth, credit, and infrastructure – and has a team of more than 50 professionals based in its offices in New York, San Francisco, Palm Beach, London, Cologne, and soon Oslo. For more information on EIP, please visit www.energyimpactpartners.com.


Contacts

Tori McDonnell
703-338-2362
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SAN FRANCISCO--(BUSINESS WIRE)--With more than a quarter-million views from across California, the 7 Saturdays to a More Fire-Resistant Home series airs a new episode this week, “Building a More Fire-Resilient Community.” Over the past seven weeks, the 7 Saturdays series has shown viewers how to create defensible space around homes, prepare evacuation plans, be “fire-smart” gardeners and much more.

This week’s episode tackles one of the most important parts of wildfire safety—planning ahead with your community. According to co-host and PG&E Senior Public Safety Specialist, David Hawks, being prepared isn’t just about your personal property—it’s also about communicating with your friends and neighbors. “We are all in this together,” said Hawks. “The more we know and work alongside our neighbors, the better able we are to assist those in need during an emergency,” he said.

In this episode, viewers learn:

  • How to establish an emergency line of communication with family and friends
  • The best ways to work together with neighbors to prepare for emergencies
  • How to find and sign up for Community Emergency Response Teams and Fire Safe Councils in their area

All episodes of the 7 Saturdays series are available on PG&E’s preparedness website, the Safety Action Center, which provides information to help customers keep their families, homes and businesses safe during natural disasters and other emergencies. The show is hosted by Alicia Mason and David Hawks.

About PG&E

Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), is a combined natural gas and electric utility serving more than 16 million people across 70,000 square miles in Northern and Central California. For more information, visit pge.com and pge.com/news.


Contacts

MEDIA RELATIONS:
415-973-5930

Exciting New R&D Program Allows Blockchain For Energy Members to Test Multiple Blockchain Solutions Before Implementation

HOUSTON--(BUSINESS WIRE)--#Blockchain--Blockchain For Energy, the nation’s first energy industry blockchain consortium, has launched a Smart Contracts focused research and development (R&D) program.


Facilitating member interaction around blockchain testing applications, this R&D program allows for functional experimentation and consensus building on industry solutions.

Members, including Chevron, ConocoPhillips, ExxonMobil, Hess, Pioneer Natural Resources, Repsol and Worley, will soon have the flexibility to conduct Smart Contract testing in a safe environment before considering implementation.

Blockchain For Energy Provides Innovative Solutions for its Members

This innovative program was created to help members test and pilot Smart Contracts, gain hands-on learnings, and strategize on implementation of blockchain technology for their companies. It allows for faster, easier testing of Smart Contracts and their interoperability across different platforms.

“The R&D program allows for hands-on learning in an industry-ready ‘sandbox’ that builds comfort and competency with blockchain concepts within our member organizations,” said Rebecca Hofmann, President of Blockchain For Energy. “It allows members to further test blockchain’s viability for value within their organizations all while reducing risk.”

By using Smart Contracts, members will be able to maximize efficiencies, reduce costs, improve timelines, and drive industry transformation through collaboration with peer companies.

How the Program is Transforming the Industry

With an imperative to learn, lead and leverage, Blockchain For Energy is committed to identifying and fostering transformative digital solutions within the energy sector.

“A neutral entity, such as ours, aids blockchain technology adoption and fosters a stronger bond between technology providers and industry users,” said Hofmann. “The result is a hugely beneficial relationship for all, which creates increasingly advanced solutions.

How the Program Works

The program will independently certify industry-grade Smart Contracts for deployment. It will also create a library of Smart Contract templates, helping ease the adoption and scaling of blockchain solutions.

The initial focus is on commodity transport, but it will quickly expand to other solutions and other blockchain developers within the program.

Collaborative Smart Contracts with Data Gumbo

Blockchain For Energy launched the initial phases of the Smart Contracts R&D program in collaboration with Data Gumbo, provider of GumboNet™ — the massively interconnected industrial smart contract network secured and powered by blockchain.

“Blockchain For Energy’s new R&D program is an important step toward the adoption of Smart Contracts by the energy industry. It seeks to confirm how members can improve business relations and their bottom line in a low-risk environment,” said Andrew Bruce, Founder and CEO, Data Gumbo.

The program will offer a variety of Smart Contract templates, demo data, and the ability to test GumboNet in a safe, neutral environment.

“Based on previous successful use cases in the industry, Data Gumbo’s Smart Contracts are applicable across commodities, and we are excited for members to test and prove out all they can do with GumboNet,” said Bruce.

In the near term, Blockchain For Energy will look to include sandbox learnings and use cases from a wider group of vendors to ensure the right technology mix is achieved and maintained across their range of solutions. This helps Blockchain For Energy’s member companies experience blockchain-powered streamlined solutions and their impact on conventional ways of working.

About Blockchain For Energy

Utilizing the benefits of blockchain technology, the Blockchain For Energy consortium (formerly known as the Offshore Operators Committee Oil & Gas Blockchain Consortium) provides its members with the best-in-class industry learnings and solutions. As a nonprofit organization, they drive digital transformation by providing members with a secure, neutral venue to accelerate the digitalization journey. They seek to resolve, reinvent, and transform the industry through collaborative synergies. For more information, visit www.blockchainforenergy.net or follow the organization on LinkedIn, Twitter, Instagram and Facebook.

About Data Gumbo

Data Gumbo is a Houston-headquartered technology company that provides GumboNet™ — a massively interconnected industrial smart contract network secured and powered by blockchain. With integrated real-time capabilities that automate and execute smart contracts, GumboNet reduces contract leakage, frees up working capital, enables real-time cash and financial management and delivers provenance with unprecedented speed, accuracy, visibility and transparency. Data Gumbo also provides GumboNet™ ESG, the automated and accurate sustainability measurement solution that ties a company’s operational data to environmental, social and governance (ESG) standards reporting for industrial supply chains.

To date, Data Gumbo has received equity funding with Saudi Aramco Energy Ventures, the venture subsidiary of Saudi Aramco; Equinor Ventures, the venture subsidiary of Equinor, Norway’s leading energy operator; and with L37, a hybrid venture capital and private equity company. With offices in Stavanger, Norway, and London, UK, the growing company was recognized as the Disruptive Innovator in the Forbes Energy Awards 2020 and named to CB Insights Blockchain 50, among other awards last year. For more information, visit www.datagumbo.com or follow the company on LinkedIn, Twitter and Facebook.


Contacts

Martin Juniper
713.816.4173
Blockchain For Energy
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Gina Manassero
Data Gumbo
VP of Communications
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RESTON, Va.--(BUSINESS WIRE)--Bowman Consulting Group Ltd. (Bowman) is pleased to announce that Solomon Lee “Solly” Van Meter has joined Bowman as a Sr. Project Manager of Energy and Land Services. He will be responsible for managing land acquisition and other real estate matters on behalf of clients as well as community and governmental relations for renewable energy development projects.


“We are excited about growing our renewable energy practice with the addition of Solly and the renewable energy expertise that he brings,” said Spencer Francis, PE, Executive Vice President and Regional Manager. “He has been a trailblazer in the development of solar energy generation sites, particularly in Kentucky, as the Commonwealth moves away from fossil fuels in favor of renewable energy.”

Van Meter served as a consultant for the Carolina Solar Energy team, where his primary responsibilities included community and local government relations and project siting approval for several new solar generation developments in Kentucky – including the state’s first such facility.

As a consultant for BP Wind Energy North America, Inc., Van Meter negotiated wind lease, easements, and transmission right-of-way agreements and performed related title and due diligence field work on wind power projects in New York, Pennsylvania, Illinois, Virginia, and Michigan.

“Bowman’s push further into renewable energy checks all the boxes for me. It gives me the ability to bring a broad array of services and support to the solar developer clients I was already working with and to work with exciting new clients, all while getting to be on a team with a bunch of really smart people,” said Van Meter. “I find that doing early-stage solar development work requires me to use a distillation of almost all of my prior professional experience, not only in wind and solar development, but also in law, business, real estate development, even going all the way back to my undergrad study in agriculture.”

Van Meter received his B.S. in Agricultural Economics from the University of Kentucky, his M.B.A. from the Darden School of Business at the University of Virginia, and his J.D. from Washington and Lee University’s School of Law. He began his new Bowman position last month.

About Bowman Consulting Group Ltd. (Bowman): Headquartered in Reston, Virginia, Bowman is an established professional services firm delivering innovative engineering solutions to customers who own, develop, and maintain the built environment. With over 800 employees and more than 30 offices throughout the United States, Bowman provides a variety of planning, engineering, construction management, commissioning, environmental consulting, geomatics, survey, land procurement and other technical services to customers operating in a diverse set of regulated end markets. On May 11, 2021, Bowman completed its $51.7 million initial public offering and began trading on the Nasdaq under the symbol BWMN. For more information, visit bowman.com.

Photos upon request.


Contacts

Carolyn Artman
313.269.4729
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Growing Nearly 15% in 2020


NEW YORK--(BUSINESS WIRE)--#energyefficiency--Growing nearly 15% in 2020, Bright Power—the premier provider of energy and water management services for real estate owners, investors and operators—is pleased to announce several additions and promotions to our sales and account management team to support our growing client base. Bright Power's expanding business has been recognized by several institutions this year:

  • Real Leaders magazine’s top impact company
  • Inc. 5000 Regionals: NYC Metro list of the fastest-growing privately held companies
  • Financial Times Americas’ fastest-growing companies
  • Jeffrey Perlman, CEO, President, and Founder, was recognized as a Real Leader Earth Advocate by Real Leaders magazine

Real estate organizations across the country are leveraging energy and water efficiency upgrades and ongoing energy management to lower operating costs, meet increasing ESG requirements, and comply with increasing energy and carbon regulations. Over the last two years, Bright Power created new Business Units and reorganized the sales and account management team in order to better serve our expanding customer base. Bright Power is pleased to introduce the following leaders, who will work with new and existing clients to reduce portfolio carbon emissions.

NEW YORK:

Samuel Biele-Fisher leads client services for Bright Power’s affordable and supportive housing clients in New York-metro area as Vice President, Affordable Housing. Prior to this promotion, Samuel served as the Manager of Affordable Housing Services dedicated to New York-area organizations. His work with these organizations led Bright Power to be a preeminent energy consulting company for both new and renovated affordable housing buildings, including the growth of the company’s leading work with electrified and passive house multifamily properties. Samuel volunteers with the New York Housing Conference’s Rising Leaders Network (RLN), serving as co-chair of the RLN board. Samuel is a Building Performance Institute Multifamily Building Analyst.

Philip Clark joins Bright Power to lead client services for New York market rate housing, cooperatives and condominiums, commercial, higher education, and hospitality clients as Vice President, New York Market Rate & Commercial. Before joining Bright Power, Philip was the Vice President of Sales & Marketing at a New York-based demand response firm where he was responsible for $45M in top-line revenue while overseeing business development.

NATIONAL:

Jessica Esposito leads client services for Bright Power’s clients with national portfolios as Vice President, National. Prior to her promotion, Jessica served as the Manager of Affordable Housing Services dedicated to affordable and supportive housing organizations with portfolios across the U.S. In that role, she developed an innovative pay from savings financing approach to enable a customer to improve almost fifty properties. Jessica is a LEED Accredited Professional.

Caitlin Rood joins Bright Power as a Senior Account Manager helping affordable and supportive housing organizations across the U.S. decrease energy and water consumption. Prior to joining Bright Power, Caitlin was the National Environmental Sustainability Director of Mercy Housing where she was responsible for environmental sustainability aspects of all areas of Mercy Housing operations. She led Mercy Housing in exceeding its 20% portfolio-wide goals of energy (EUI) and water (WUI) reduction, becoming the first national affordable housing organization in the U.S. to achieve that designation with the Better Buildings Challenge.

Gregory Sherman, Executive Vice President of Sales, California, will continue to lead Bright Power’s California sales and account management team. Greg joined Bright Power as the third employee and opened our California office with Andrew McNamara, Executive Vice President of Operations, California, in 2015.

“With a mix of leaders who grew within Bright Power and those new to the organization, we will continue to expand our capabilities to deliver impactful services that are a win for building owners and managers, their buildings’ occupants, and the environment,” said Jeffrey Perlman, CEO, President, and Founder of Bright Power.

About Bright Power, Inc.
Bright Power provides strategic energy and water solutions to building owners and operators across the nation. Specializing in multifamily apartment buildings, Bright Power has worked with almost 2 million units that cover over 2 billion square feet. Bright Power’s energy management solutions include EnergyScoreCards benchmarking software, energy audits, energy procurement, clean on-site generation, green building design services, turnkey installation of energy improvements and MoBIUS ongoing energy management. For more information, please visit brightpower.com.


Contacts

Stephanie Driscoll
Chameleon Collective
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781-535-8489

Revenue at high end of guidance

Company reaffirms 2021 financial guidance

SAN FRANCISCO--(BUSINESS WIRE)--Stem, Inc. ("Stem" or the "Company") (NYSE:STEM), a global leader in artificial intelligence (AI)-driven clean energy storage services, announced today its financial results for the second quarter ended June 30, 2021.


Second Quarter 2021 Financial and Operating Highlights

Financial Highlights

  • Revenues of $19.3 million, up from $4.4 million (+339%) in the same quarter last year
  • Gross Margin (GAAP) of (1)% versus (40)% in the same quarter last year
  • Non-GAAP Gross Margin of 11%, up from 5% in the same quarter last year
  • Net Loss of $(100.2) million versus $(19.0) million in the same quarter last year
  • Adjusted EBITDA of $(8.6) million vs. $(7.5) million in the same quarter last year
  • Ended the second quarter with $474 million in cash and zero debt

Operating Highlights

  • 12-month Pipeline of $1.7 billion, up from $1.4 billion (+21%) at end of the first quarter
  • Contracted Backlog of $250 million, up from $221 million (+13%) at end of the first quarter
  • Contracted Assets Under Management (AUM) of 1.2 gigawatt hours (GWh), up from 0.5 GWh in the same quarter last year

John Carrington, Chief Executive Officer of Stem, commented, “We are pleased to announce a solid second quarter of execution, building on our strong first-quarter results. Revenue was at the high end of our guidance range, which, coupled with our gross margin and operating expense performance, keeps us on track to meet our full-year revenue and Adjusted EBITDA targets. Our sales team continued to leverage our partner channel in multiple geographies increasing our contracted backlog to $250 million (13% sequential growth), providing us with increased visibility into 2022 revenue. As the first pure-play publicly traded smart energy storage company, our experience, industry-leading Athena® software platform, robust service offerings, and strong balance sheet will continue to differentiate Stem in this rapidly expanding market.”

Key metrics

$ millions unless otherwise noted

 

Three Months Ended

June 30,

2021

2020

 

Financial metrics

Revenue

$19.3

$4.4

Gross Margin (GAAP)

$(0.1)

$(1.7)

Gross Margin (GAAP, %)

-1%

-40%

Non-GAAP Gross Margin***

$2.1

$0.2

Non-GAAP Gross Margin (%)***

11%

5%

Net Loss (GAAP)

$(100.2)

$(19.0)

Adjusted EBITDA***

$(8.6)

$(7.5)

 

Key Operating metrics*

12-Month Pipeline ($ billions)

$1.7

**

Contracted Backlog

$250

**

Contracted AUM (GWh)

1.2

0.5

 
* at period end
** not available

***Non-GAAP financial measures. See the section below titled “Use of Non-GAAP Financial Measures“ for details and page 9 for reconciliations.

 

Second-Quarter 2021 Financial and Operating Results

Financial Results

Second quarter revenue increased 339% to $19.3 million, versus $4.4 million in the same quarter last year. Higher hardware revenue from Front of the Meter (“FTM”) partnership agreements drove most of the year-over-year increase, in addition to higher services revenue from host customer arrangements.

Gross Margin (GAAP) was $(0.1) million, or (1)%, versus $(1.7) million, or (40)% in the same quarter last year. Non-GAAP Gross Margin was $2.1 million or 11% versus $0.2 million or 5% in the same quarter last year. The year-over-year increases in Gross Margin (GAAP) and Non-GAAP Gross Margin resulted from an increased mix of software service revenues and higher-margin hardware deliveries.

Net Loss increased to $(100.2) million versus $(19.0) million in the same quarter last year. This was primarily due to $76.4 million of non-cash charges recorded in the quarter from the revaluation of warrants tied to an increase in the value of the underlying stock, along with higher operating expenses.

Adjusted EBITDA was $(8.6) million compared to $(7.5) million in the same quarter last year. The lower Adjusted EBITDA results were primarily driven by higher operating expenses, due to increased personnel costs reflecting continued investment in our growth initiatives.

The Company ended the second quarter with $474 million in cash and no debt.

Operating Results

The Company’s 12-month forward Pipeline was $1.7 billion as of June 30, 2021, representing significant year-over-year growth. The 21% increase in the 12-month pipeline from $1.4 billion at March 31, 2021 is a result of increased FTM project opportunities and the seasonal nature of the pipeline.

Contracted Backlog increased 13% sequentially, from $221 million as of March 31, 2021 to $250 million as of June 30, 2021. The increase in Contracted Backlog resulted from strong bookings of $45 million tied to increased commercial activity. Bookings grew 18% year-over-year from $38 million in the quarter ended June 30, 2020.

Contracted AUM more than doubled year-over-year to 1.2 GWh, driven by increased commercial activity and the addition of the 345-megawatt hour (MWh) Electrodes Holdings LLC portfolio. Contracted AUM increased sequentially by 9%, driven by new contracts and new systems that came in service.

The following table provides a summary of current backlog compared to prior quarter backlog:

$ millions

 

Period ending 1Q21

$221

$45

($19)

$3

Period ending 2Q21

$250

 

Business Highlights

Since mid-June 2021, Stem has consistently dispatched more than 500 MWh daily in multiple markets across the United States and Canada in response to heat waves, increased grid interconnections from renewables and wildfires that have caused widespread stress on power grids. Stem’s demand response and grid services programs are designed to use virtual power plants powered by the Athena software platform to flatten electricity usage peaks and deliver power to the most constrained parts of the grid.

Stem has grown rapidly in ISO New England since the system operator expanded market participation activities for Front-of-the-Meter ("FTM") storage in 2020. As of the end of June, Stem-directed systems comprised 52% of Massachusetts and 19% of ISO-NE of the operational continuous storage facilities active in the wholesale energy, ancillary services and forward capacity settlement markets, as reported by the system operator.

On June 25, 2021, Stem entered into an agreement to exchange 7.2 million private warrants for 4.7 million shares of common stock. The transaction closed on June 30, 2021. As of August 11, 2021, 12.8 million public warrants remain outstanding, which are redeemable by the Company beginning August 20, 2021.

On June 2, 2021, Stem announced that it had partnered with Ameresco, a leading cleantech integrator, whereby it will provide 15 MWh of battery storage for Holy Cross Energy, an electric cooperative in western Colorado. Stem and Ameresco plan to further collaborate to provide enhanced returns in electric cooperative markets and beyond. The Company is currently pursuing projects with cooperatives in 26 states and expects this end market to represent a significant component of its FTM business.

Outlook

The Company reaffirms its guidance of full-year 2021 revenue of $147 million and full-year 2021 Adjusted EBITDA of $(25) million. Consistent with prior guidance, the Company reaffirms that it expects to recognize 20-30% of total 2021 revenue in Q3, and 50-60% of total 2021 revenue in Q4.

The Company believes that it has contracted for sufficient supply chain commitments to meet its 2021 revenue goal and will continue to diversify its supply chain, adopt alternative technologies, and deploy its balance sheet to meet the significant growth in customer demand.

Use of Non-GAAP Financial Measures

In addition to financial results determined in accordance with U.S. generally accepted accounting principles (“GAAP”), we use the following non-GAAP financial measures: non-GAAP gross margin and Adjusted EBITDA. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. See “Reconciliations of non-GAAP Financial Measures” on page 9 of this release. We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate our operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our operating performance, such as stock-based compensation and other non-cash charges, as well as discrete cash charges that are infrequent in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors both because they (1) allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and (2) are used by our institutional investors and the analyst community to help them analyze the health of our business.

We define Adjusted EBITDA as net loss before depreciation and amortization, including amortization of internally developed software, net interest expense, further adjusted to exclude stock-based compensation and other income and expense items, including the change in fair value of warrants and embedded derivatives.

We define non-GAAP gross margin as gross margin excluding amortization of capitalized software, impairments related to decommissioning of end-of-life systems, and adjustments to reclassify data communication and cloud production expenses to operating expenses.

About Stem, Inc.

Stem Inc. (NYSE: STEM) provides solutions that address the challenges of today’s dynamic energy market. By combining advanced energy storage solutions with Athena®, a world-class AI-powered analytics platform, Stem enables customers and partners to optimize energy use by automatically switching between battery power, onsite generation and grid power. Stem’s solutions help enterprise customers benefit from a clean, adaptive energy infrastructure and achieve a wide variety of goals, including expense reduction, resilience, sustainability, environmental and corporate responsibility and innovation. Stem also offers full support for solar partners interested in adding storage to standalone, community or commercial solar projects – both behind and in front of the meter.

For more information, visit www.stem.com.

Notes

Stem will hold a conference call to discuss this earnings press release and business outlook on Wednesday, August 11, 2021 at 5:00 p.m. Eastern Time. The conference call may be accessed via a live webcast on a listen-only basis on the Events & Presentations page of the Investor Relations section of the Company’s website at https://investors.stem.com/events-and-presentations. The call can also be accessed live over the telephone by dialing 877-705-6003, or for international callers, 201-493-6725 and referencing Stem. A replay of the webcast will be available shortly after the call on the Events & Presentations page in the Investor Relations section of the Company’s website and will remain available for approximately one month.

Forward-Looking Statements

This second-quarter 2021 earnings release, as well as other statements we make, contain “forward-looking statements” within the meaning of the federal securities laws, which include any statements that are not historical facts. Such statements often contain words such as “expect,” “may,” “can,” “believe,” “predict,” “plan,” “potential,” “projected,” “projections,” “forecast,” “estimate,” “intend,” “anticipate,” “ambition,” “goal,” “target,” “think,” “should,” “could,” “would,” “will,” “hope,” “see,” “likely,” and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as the reduction of greenhouse gas (“GHG”) emissions; the integration and optimization of energy resources; the business strategies of Stem and those of its customers; the global commitment to decarbonization; our ability to retain or upgrade current customers, further penetrate existing markets or expand into new markets; our ability to manage our supply chains and distribution channels and the impact of natural disasters and other events beyond our control, such as the COVID-19 pandemic and the Delta variant; and future results of operations. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon assumptions and estimates that, while considered reasonable by Stem and its management, depend upon inherently uncertain factors and risks that may cause actual results to differ materially from current expectations, including our inability to help reduce GHG emissions; our inability to seamlessly integrate and optimize energy resources; our inability to achieve our financial and performance targets and other forecasts and expectations; our inability to recognize the anticipated benefits of our recent business combination with Star Peak Energy Transition Corp. (“Star Peak”); our ability to grow and manage growth profitably; risks relating to the development and performance of our energy storage systems and software-enabled services; the risk that the global commitment to decarbonization may not materialize as we predict, or even if it does, that we might not be able to benefit therefrom; our inability to retain or upgrade current customers, further penetrate existing markets or expand into new markets; our inability to secure sufficient inventory from our suppliers to meet customer demand, and provide us with contracted quantities of equipment; supply chain interruptions and manufacturing or delivery delays; disruptions in sales, production, service or other business activities; our inability to attract and retain qualified personnel; the risk that our business, financial condition and results of operations may be adversely affected by other political, economic, business and competitive factors; and other risks and uncertainties set forth in the section entitled “Risk Factors” in the registration statement on Form S-1 filed with the SEC on July 19, 2021, and our most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC. If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected in our forward-looking statements. Statements in this second-quarter 2021 press release are made as of the date of this release, and Stem disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Source: Stem, Inc.

 

STEM, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in thousands, except share and per share amounts)

 

 

June 30, 2021

 

December 31, 2020

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

474,138

 

 

$

6,942

 

Accounts receivable, net

17,833

 

 

13,572

 

Inventory, net

27,167

 

 

20,843

 

Other current assets (includes $206 and $123 due from related parties as of June 30, 2021 and December 31, 2020, respectively)

19,199

 

 

7,920

 

Total current assets

538,337

 

 

49,277

 

Energy storage systems, net

118,216

 

 

123,703

 

Contract origination costs, net

11,668

 

 

10,404

 

Goodwill

1,786

 

 

1,739

 

Intangible assets, net

12,387

 

 

12,087

 

Other noncurrent assets

15,945

 

 

8,640

 

Total assets

$

698,339

 

 

$

205,850

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

17,798

 

 

$

13,749

 

Accrued liabilities

9,177

 

 

16,072

 

Accrued payroll

4,565

 

 

5,976

 

Notes payable, current portion

 

 

33,683

 

Convertible promissory notes (includes $— and $45,271 due to related parties as of June 30, 2021 and December 31, 2020, respectively)

 

 

67,590

 

Financing obligation, current

15,336

 

 

14,914

 

Deferred revenue, current

37,056

 

 

36,942

 

Other current liabilities (includes $880 and $399 due to related parties as of June 30, 2021 and December 31, 2020, respectively)

1,910

 

 

1,589

 

Total current liabilities

85,842

 

 

190,515

 

Deferred revenue, noncurrent

18,648

 

 

15,468

 

Asset retirement obligation

4,178

 

 

4,137

 

Notes payable, noncurrent

1,719

 

 

4,612

 

Financing obligation, noncurrent

74,496

 

 

73,128

 

Warrant liabilities

303,798

 

 

95,342

 

Lease liability, noncurrent

880

 

 

57

 

Total liabilities

489,561

 

 

383,259

 

Commitments and contingencies (Note 13)

 

 

 

Stockholders’ equity (deficit):

 

 

 

Preferred stock, $0.0001 par value; 1,000,000 shares authorized as of June 30, 2021 and December 31, 2020, respectively; 0 shares issued and outstanding as of June 30, 2021 and December 31, 2020

 

 

 

Common stock, $0.0001 par value; 500,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 130,418,055 and 40,202,785 issued and outstanding as of June 30, 2021 and December 31, 2020, respectively

13

 

 

4

 

Additional paid-in capital

799,918

 

 

230,620

 

Accumulated other comprehensive loss

(543

)

 

(192

)

Accumulated deficit

(590,610

)

 

(407,841

)

Total stockholders’ equity (deficit)

208,778

 

 

(177,409

)

Total liabilities and stockholders’ equity (deficit)

$

698,339

 

 

$

205,850

 

STEM, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(in thousands, except share and per share amounts)

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2021

 

2020

 

2021

 

2020

Revenue

 

 

 

 

 

 

 

Services revenue

$

5,153

 

 

$

3,670

 

 

$

10,035

 

 

$

7,062

 

Hardware revenue

14,184

 

 

 

709

 

 

24,723

 

 

1,427

 

Total revenue

19,337

 

 

 

4,379

 

 

34,758

 

 

8,489

 

Cost of revenue

 

 

 

 

 

 

 

Cost of service revenue

5,809

 

 

 

5,510

 

 

12,715

 

 

10,255

 

Cost of hardware revenue

13,655

 

 

 

614

 

 

22,286

 

 

1,365

 

Total cost of revenue

19,464

 

 

 

6,124

 

 

35,001

 

 

11,620

 

Gross margin

(127

)

 

 

(1,745

)

 

(243

)

 

(3,131

)

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

3,913

 

 

 

4,242

 

 

6,580

 

 

8,646

 

Research and development

4,827

 

 

 

3,619

 

 

9,234

 

 

7,032

 

General and administrative

15,014

 

 

 

2,404

 

 

17,706

 

 

5,383

 

Total operating expenses

23,754

 

 

 

10,265

 

 

33,520

 

 

21,061

 

Loss from operations

(23,881

)

 

 

(12,010

)

 

(33,763

)

 

(24,192

)

Other income (expense), net:

 

 

 

 

 

 

 

Interest expense

(3,929

)

 

 

(5,192

)

 

(10,162

)

 

(9,561

)

Loss on extinguishment of debt

(5,064

)

 

 

 

 

(5,064

)

 

 

Change in fair value of warrants and embedded derivative

(67,179

)

 

 

(1,918

)

 

(133,577

)

 

(909

)

Other income (expenses), net

(163

)

 

 

139

 

 

(203

)

 

(1,790

)

Total other income (expense)

(76,335

)

 

 

(6,971

)

 

(149,006

)

 

(12,260

)

Loss before income taxes

(100,216

)

 

 

(18,981

)

 

(182,769

)

 

(36,452

)

Income tax expense

 

 

 

 

 

 

 

 

Net loss

$

(100,216

)

 

$

(18,981

)

 

$

(182,769

)

 

$

(36,452

)

Net loss per share attributable to common shareholders, basic and diluted

$

(1.00

)

 

$

(0.48

)

 

$

(2.59

)

 

$

(1.14

)

Weighted-average shares used in computing net loss per share, basic and diluted

100,611,965

 

 

 

39,801,379

 

 

70,684,750

 

 

40,209,877

 

STEM, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)

 

 

Six Months Ended June 30,

 

2021

 

2020

OPERATING ACTIVITIES

 

 

 

Net loss

$

(182,769

)

 

$

(36,452

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

Depreciation and amortization expense

10,315

 

 

7,918

 

Non-cash interest expense, including interest expenses associated with debt issuance costs

7,119

 

 

4,570

 

Stock-based compensation

1,784

 

 

932

 

Change in fair value of warrant liability and embedded derivative

133,577

 

 

909

 

Noncash lease expense

334

 

 

286

 

Accretion expense

112

 

 

160

 

Impairment of energy storage systems

1,275

 

 

947

 

Issuance of warrants for services

9,183

 

 

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

(4,219

)

 

2,212

 

Inventory

(6,323

)

 

(6,340

)

Other assets

(16,924

)

 

(2,691

)

Contract origination costs

(1,650

)

 

(1,383

)

Accounts payable and accrued expenses

3,292

 

 

412

 

Deferred revenue

3,294

 

 

12,308

 

Lease liabilities

(289

)

 

(310

)

Other liabilities

56

 

 

25

 

Net cash used in operating activities

(41,833

)

 

(16,497

)

INVESTING ACTIVITIES

 

 

 

Purchase of energy storage systems

(5,603

)

 

(7,555

)

Capital expenditures on internally-developed software

(2,693

)

 

(2,628

)

Purchase of property and equipment

(300

)

 

 

Net cash used in investing activities

(8,596

)

 

(10,183

)

FINANCING ACTIVITIES

 

 

 

Proceeds from exercise of stock options and warrants

2,933

 

 

54

 

Net contributions from Merger and PIPE financing, net of transaction costs of $58,061

550,322

 

 

 

Proceeds from financing obligations

4,929

 

 

8,391

 

Repayment of financing obligations

(4,609

)

 

(4,267

)

Proceeds from issuance of convertible notes, net of issuance costs of $8 and $911 for the six months ended June 30, 2021 and 2020, respectively

1,118

 

 

14,050

 

Proceeds from issuance of notes payable, net of issuance costs of $101 and $1,502 for the six months ended June 30, 2021 and 2020, respectively

3,940

 

 

23,498

 

Repayment of notes payable

(41,446

)

 

(19,665

)

Net cash provided by financing activities

517,187

 

 

22,061

 

Effect of exchange rate changes on cash and cash equivalents

438

 

 

(176

)

Net increase (decrease) in cash and cash equivalents

467,196

 

 

(4,795

)

Cash and cash equivalents, beginning of period

6,942

 

 

12,889

 

Cash and cash equivalents, end of period

$

474,138

 

 

$

8,094

 

STEM, INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

(unaudited)

 

The following table provides a reconciliation of net loss to Adjusted EBITDA:

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

 

(in thousands)

 

(in thousands)

Net loss

$

(100,216

)

 

$

(18,981

)

 

$

(182,769

)

 

$

(36,452

)

Adjusted to exclude the following:

 

 

 

 

 

 

 

Depreciation and amortization

5,236

 

 

3,924

 

 

10,315

 

 

7,918

 

Interest expense

3,929

 

 

5,192

 

 

10,162

 

 

9,561

 

Loss on extinguishment of debt

5,064

 

 

 

 

5,064

 

 

 

Stock-based compensation

1,024

 

 

476

 

 

1,784

 

 

932

 

Vesting of warrants

9,184

 

 

 

 

9,184

 

 

 

Change in fair value of warrants and embedded derivative

67,179

 

 

1,918

 

 

133,577

 

 

909

 

Provision for income taxes

 

 

 

 

 

 

 

Adjusted EBITDA

$

(8,600

)

 

$

(7,471

)

 

$

(12,683

)

 

$

(17,132

)

 

 

 

 

 

 

 

 

Adjusted EBITDA as used in connection with the Company's 2021 outlook is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability. The Company is unable to reconcile Adjusted EBITDA to net loss, its most directly comparable forward-looking GAAP financial measure, without unreasonable efforts, because the Company is currently unable to predict with a reasonable degree of certainty its change in fair value of warrants expense for 2021. In addition, the Company may incur additional expenses that may affect Adjusted EBITDA, such as stock-based compensation expense and other items. The unavailable information could have a significant effect on the Company’s full year 2021 GAAP financial results.

The following table provides a reconciliation of gross margin (GAAP)


Contacts

Stem Investor Contacts
Ted Durbin, Stem
Marc Silverberg, ICR
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(847) 905-4400

Stem Media Contacts
Cory Ziskind, ICR
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Read full story here

DUBLIN--(BUSINESS WIRE)--The "Egypt Upstream (Oil and Gas) Fiscal and Regulatory Guide" report has been added to ResearchAndMarkets.com's offering.


"Egypt Upstream (Oil and Gas) Fiscal and Regulatory Guide", presents the essential information relating to the terms which govern investment into Egypt's upstream oil and gas sector.

The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state's take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Egypt's upstream oil and gas investment climate.

Egypt offers upstream acreage in the form of production sharing agreements (PSAs) and in some cases through service contracts. Several blocks have been awarded during the last few years due to a renewed investment interest after significant Mediterranean gas discoveries, improved gas pricing, and wider energy sector reforms.

Supermajors such as BP, ENI, and Shell have strengthened their presence in the country while ExxonMobil and Chevron are few of the new entrants. Following the success of recent licensing rounds, EGPC and EGAS have launched a new bid round between March-August 2021, offering 24 blocks in the Mediterranean Sea, Gulf of Suez and Western Desert.

Although, Egypt's fiscal terms are generally more burdensome than those offered in neighboring Israeli, Cypriot and Greek waters, this is counterbalanced by the benefits of Egypt's more developed sector, such as infrastructure availability and strong local gas demand. The fiscal terms remain more attractive than those offered in neighboring Libya and slightly better than in Sudan.

The restart of Damietta's LNG plant in 2021 after nine years will enhance further Egypt's export LNG capacity and flexibility. Although, regional maritime border disputes in the East Mediterranean are ongoing, the deal between Egypt and Greece in 2020, the cancellation of Turkey-GNA Libya's agreement in early 2021 and the political reproachment between Turkey and Greece can favour regional cooperation.

Scope

  • Overview of current fiscal terms governing upstream oil and gas operations in Egypt
  • Assessment of the current fiscal regime's state take and attractiveness to investors
  • Charts illustrating the regime structure, and legal and institutional frameworks
  • Detail on legal framework and governing bodies administering the industry
  • Levels of upfront payments and taxation applicable to oil and gas production
  • Information on application of fiscal and regulatory terms to specific licenses
  • Outlook on future of fiscal and regulatory terms in Egypt

Key Topics Covered:

1. Executive Summary

1.1 Regime Overview - Production Sharing Agreements (PSAs)

1.2 Regime Overview - Service Contracts

1.3 Timeline

2. State Take Assessment

3. Key Fiscal Terms - Production Sharing Agreements

3.1 Royalties, Bonuses, and Fees

3.2 Cost Recovery

3.3 Profit Sharing

3.4 Direct Taxation

3.5 Domestic Market Obligations

3.6 Local Content

4. Key Fiscal Terms - Service Contracts

4.1 Royalties, Bonuses, and Fees

4.2 Baseline Service Fee

4.3 Renumeration

4.4 Direct Taxation

5. Regulation and Licensing

5.1 Legal Framework

5.2 Institutional Framework

5.3 Licensing Process

6. Appendix

For more information about this report visit https://www.researchandmarkets.com/r/6cjbrl


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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LOS ANGELES--(BUSINESS WIRE)--#EVs--Fisker Inc. (NYSE: FSR) (“Fisker”) today announced its intention to offer, subject to market conditions and other factors, $600,000,000 aggregate principal amount of its Green Convertible Senior Notes due 2026 (the "notes") in a private offering only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Act"). Fisker also expects to grant the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date the notes are first issued, up to an additional $90,000,000 aggregate principal amount of the notes.



The notes will be senior unsecured obligations of Fisker, and interest on the notes will be payable semi-annually in arrears on March 15 and September 15 of each year, beginning on March 15, 2022. The notes will mature on September 15, 2026, unless earlier converted, redeemed or repurchased. The notes will be convertible under certain circumstances into cash, shares of Fisker's Class A common stock (the “Common Stock”), or a combination thereof, at Fisker's election. The interest rate, initial conversion rate and other terms of the notes are to be determined upon pricing of the offering.

In connection with the pricing of the notes, Fisker expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers of the notes or affiliates thereof and/or other financial institutions (the "option counterparties"). The capped call transactions are expected to cover, subject to anti-dilution adjustments substantially similar to those applicable to the notes, the number of shares of Common Stock that will initially underlie the notes. The capped call transactions are expected generally to reduce the potential dilution to the Common Stock upon any conversion of notes and/or offset any potential cash payments that Fisker is required to make in excess of the principal amount of converted notes, as the case may be, with such reduction and/or offset subject to a cap. If the initial purchasers exercise their option to purchase additional notes, Fisker expects to enter into additional capped call transactions with the option counterparties.

In connection with establishing their initial hedge of the capped call transactions, the option counterparties and/or their respective affiliates expect to enter into various derivative transactions with respect to the Common Stock and/or may purchase shares of Common Stock concurrently with, or shortly after, the pricing of the notes. These activities could increase (or reduce the size of any decrease in) the market price of the Common Stock or the notes at that time. In addition, Fisker expects that the option counterparties and/or their respective affiliates may modify their hedge positions by entering into or unwinding certain derivative transactions with respect to the Common Stock and/or by purchasing or selling shares of Common Stock or other securities of Fisker in secondary market transactions following the pricing of the notes and from time to time prior to the maturity of the notes (and are likely to do so during any observation period related to a conversion of the notes). This activity could also cause or avoid an increase or a decrease in the market price of the Common Stock or the notes, which could affect the ability of noteholders to convert the notes, and, to the extent the activity occurs during any observation period related to a conversion of the notes, it could affect the number of shares of Common Stock, if any, and value of the consideration that noteholders will receive upon conversion of the notes.

Fisker intends to allocate an amount equal to the net proceeds from the offering of the notes to finance or refinance, in whole or in part, one or more new or existing “eligible green projects” of Fisker, including PEAR program development, battery pack assembly and potential localization, the furtherance of new model development and technology development. Pending such allocation of net proceeds to eligible green projects, Fisker intends to use the net proceeds from the offering to fund the cost of the capped call transactions described above and for working capital and general corporate purposes. If the initial purchasers exercise their option to purchase additional notes, Fisker intends to use a portion of the additional net proceeds to fund the cost of entering into additional capped call transactions.

This press release is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful. The notes will be offered to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Act. Neither the notes nor the shares of Common Stock issuable upon conversion of the notes, if any, have been registered under the Act or the securities laws of any other jurisdiction and unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, such registration requirements of the Act and other applicable securities laws.

About Fisker Inc.

California-based Fisker Inc. is revolutionizing the automotive industry by developing the most emotionally desirable and eco-friendly electric vehicles on Earth. Passionately driven by a vision of a clean future for all, Fisker is on a mission to become the No. 1 e-mobility service provider with the world’s most sustainable vehicles.

Forward-Looking Statements

This press release includes forward-looking statements, which are subject to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “feel,” “believes,” expects,” “estimates,” “projects,” “intends,” “should,” “is to be,” or the negative of such terms, or other comparable terminology and include, among other things, statements regarding the notes offering, the anticipated use of proceeds therefrom and the capped call transactions and other future events that involve risks and uncertainties. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to: the ability to consummate the offering of the notes within the timing and at the price anticipated by Fisker; the ability to enter into the capped call transactions on the timing and at the price anticipated by Fisker; changes in the terms of the notes and the capped call transactions; and those factors discussed in Fisker’s Annual Report on Form 10-K/A for the year ended December 31, 2020, its Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, its Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 and in its subsequent filings with the Securities and Exchange Commission. Any forward-looking statements speak only as of the date on which they are made, and Fisker undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.


Contacts

Fisker Inc.
Simon Sproule, SVP, Communications
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Rebecca Lindland, Director, Communications
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Dan Galves, VP, Investor Relations
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Company Increases Focus on Consumer Market, Leveraging New Consumer-Oriented Products and Ongoing Innovation, in Response to Ongoing COVID-19 Pandemic Impact on Its Customers

Conference Call to be Held Today at 11 a.m. ET

SOLON, Ohio--(BUSINESS WIRE)--Energy Focus, Inc. (NASDAQ:EFOI), a leader in sustainable and human-centric lighting (“HCL”) technologies, and developer of a range of UV-C disinfection (“UVCD”) products, today announced financial results for its second quarter ended June 30, 2021.

Second Quarter 2021 and Subsequent Business Highlights:

  • Net sales of $2.1 million, a decrease of 37.8% compared to the second quarter of 2020 and a decrease of 21.4% sequentially from the first quarter of 2021, reflecting fluctuations in timing of military orders and funding availability, and continued COVID-19-related challenges and delays, particularly for its commercial sector customers
  • Loss from operations of $2.2 million, compared to a loss from operations of $0.9 million in the second quarter of 2020 and sequentially to a loss from operations of $2.3 million in the first quarter of 2021
  • Net loss of $2.5 million, or $(0.59) per basic and diluted share of common stock, compared to a net loss of $4.3 million, or $(1.36) per basic and diluted share of common stock, in the second quarter of 2020. Sequentially, the net loss increased by $0.8 million compared to net loss of $1.6 million, or $(0.45) per basic and diluted share of common stock, inclusive of a $0.8 million non-cash gain from the forgiveness of the Paycheck Protection Program (“PPP”) loan, in the first quarter of 2021
  • Strengthened balance sheet with net proceeds of $4.5 million from an equity financing and net proceeds of $1.5 million from a bridge financing, and increased its inventory-based line of credit capacity by $0.5 million, increasing overall liquidity
  • Cash of $1.3 million as of June 30, 2021, compared to $1.8 million as of December 31, 2020

“Our second quarter results were impacted by the military market that experienced funding delays and from the continued weakness in our commercial lighting retrofit market, although we have already seen a few orders so far in the third quarter that we believe represent opportunities delayed from the first half of 2021” commented James Tu, Chairman and CEO of Energy Focus, Inc. “The pandemic has continued to exert unprecedented impacts on our commercial and, to a lesser extent, military lighting retrofit customers. Therefore, in addition to continuing to expand our sales team and outreach campaigns for our existing business, since second quarter 2020, we have been enhancing our focus on developing new and innovative products for the consumer market as well. Consumer spending has been, in many ways, positively impacted by the pandemic, as homebound consumers seek to improve their homes and make their homes and home offices more comfortable and productive. We believe that our award-winning, patented SuncycleTM lighting control system, which we plan to launch in late 2021 to early 2022, has the potential to vastly improve the lighting experience at home by providing high-quality, dimmable, color tunable and autonomous circadian lighting in an affordable, user-friendly and cyber-secure manner with only simple swaps of wall switches and lamps.”

“In addition, we are excited about our portable nUVoTM air disinfection devices, which should go on sale by the end of the third quarter of 2021, including nUVoTM Tower, a powerful disinfection device for larger spaces, and nUVoTM Traveler, a tumbler-sized portable UV-C disinfection device that is ideal for vehicles and other personal spaces,” commented Mr. Tu. “All these products have been developed by leveraging our extensive experience in advanced lighting technologies as well as our engineering capability to think outside-of-the-box and innovate to bring advancements to human safety, health and well-being at home.”

“In the meantime, we have also been expanding our channel partnerships to distribute these impactful human-centric lighting products, notably by signing a marketing partnership with FirstEnergy Home and FirstEnergy Advisors, for both our lighting and UVCD products, and a distribution agreement with threeUV, a leading UV product distributor for the public and institutional sectors,” Mr. Tu added.

“We anticipate our military market will improve in the second half of the year as funding becomes available, and we believe that our strategy to focus on leading the sales activities with our unique offerings such as RedCap® and EnFocusTM, as well as our newly launched products for both consumer and commercial markets, will lead to recovering sales during the second half of 2021,” concluded Mr. Tu.

Second Quarter 2021 Financial Results:

Net sales were $2.1 million for the second quarter of 2021, compared to $3.3 million in the second quarter of 2020, a decrease of 37.8%. Net sales from commercial products were $1.1 million, or 52.0% of total net sales, for the second quarter of 2021, flat as compared to $1.1 million, or 31.7% of total net sales, in the second quarter of 2020, reflecting the continued impact of the COVID-19 pandemic and continued customer interruptions and project delays. Net sales from military maritime products were $1.0 million, or 48.0% of total net sales, for the second quarter of 2021, compared to $2.3 million, or 68.3% of total net sales, in the second quarter of 2020, primarily due to the availability of government funding and the delayed timing of orders. Sequentially, net sales were down 21.4% compared to $2.6 million in the first quarter of 2021, reflecting primarily the timing fluctuations of expected military orders as well as the continued impact of the COVID-19 pandemic, particularly for our customers in the commercial market.

Gross profit was $0.4 million, or 18.9% of net sales, for the second quarter of 2021. This compares with gross profit of $1.3 million, or 40.3% of net sales, in the second quarter of 2020. Sequentially, this compares with gross profit of $0.6 million, or 21.0% of net sales, in the first quarter of 2021. Gross margin for the second quarter of 2021 was positively impacted by favorable price and usage variances for material and labor of $0.4 million, partially offset by low sales, which impacted our gross profit rate. Adjusted gross margin, as defined under “Non-GAAP Measures” below, was 17.6% for the second quarter of 2021, compared to 33.0% in the second quarter of 2020 and 24.3% in the first quarter of 2021, primarily being driven by product mix in the military maritime product sales during the second quarter of 2021 as compared to the second quarter of 2020 and first quarter of 2021, as well as low sales in the second quarter of 2021.

Operating loss was $2.2 million for the second quarter of 2021, compared to an operating loss of $0.9 million in the second quarter of 2020. Sequentially, this compares to an operating loss of $2.3 million in the first quarter of 2021. Net loss was $2.5 million, or $(0.59) per basic and diluted share of common stock, for the second quarter of 2021, compared with a net loss of $4.3 million, or $(1.36) per basic and diluted share of common stock, in the second quarter of 2020. Sequentially, this compares with a net loss of $1.6 million, or $(0.45) per basic and diluted share of common stock, in the first quarter of 2021, which was inclusive of a favorable $0.8 million non-cash, pre-tax gain resulting from the forgiveness of the PPP loan during the first quarter.

Adjusted EBITDA, as defined under “Non-GAAP Measures” below, was a loss of $2.0 million for the second quarter of 2021, compared with a loss of $0.7 million in the second quarter of 2020 and a loss of $2.0 million in the first quarter of 2021. The increased adjusted EBITDA loss in the second quarter of 2021, as compared to the second quarter of 2020, was primarily due to a combination of gross margin fluctuation and higher operating expenses due to our investment for future growth primarily in the areas of sales and engineering personnel.

Cash was $1.3 million as of June 30, 2021. This compares with cash of $1.8 million as of December 31, 2020. As of June 30, 2021, the Company had total availability, as defined under “Non-GAAP Measures” below, of $4.1 million, which consisted of $1.3 million of cash and $2.8 million of additional borrowing availability under its credit facilities. This compares to total availability of $3.9 million as of June 30, 2020 and total availability of $1.2 million as of March 31, 2021. Our net inventory balance of $8.1 million as of June 30, 2021, increased $2.4 million over our net inventory balance as of December 31, 2020. This increase primarily relates to global supply chain challenges, which are impacting our inventory purchasing strategy, leading to a buildup of inventory and inventory components in an effort to manage both shortages of available components and longer lead times in obtaining components. Our accounts payable balance as of June 30, 2021 increased by $0.4 million over December 31, 2020, primarily related to this inventory buildup.

Financings:

In June 2021, we completed a registered direct offering of 990,100 shares of our common stock to certain institutional investors, at a purchase price of $5.05 per share. Net proceeds to us, after $0.5 million in expenses, were $4.5 million.

In April 2021, the Company expanded its inventory line of credit availability by $0.5 million. The Company has two debt financing arrangements that mature on August 11, 2022, consisting of a two-year inventory financing facility for up to $3.5 million (following the increase), and a two-year receivables financing facility for up to $2.5 million. Also during April 2021, the Company secured net proceeds of $1.5 million, after expenses of $0.2 million, from a bridge financing.

Earnings Conference Call:

The Company will host a conference call and webcast today, August 12, 2021, at 11 a.m. ET to discuss the second quarter 2021 results, followed by a Q & A session.

You can access the live conference call by dialing the following phone numbers:

  • Toll free 1-877-300-8521 or
  • International 1-412-317-6026
  • Conference ID# 10159037

The conference call will be simultaneously webcast. To listen to the webcast, log onto it at: http://public.viavid.com/index.php?id=145969. The webcast will be available at this link through August 27, 2021. Financial information presented on the call, including this earnings press release, will be available on the investors section of Energy Focus’ website, investors.energyfocus.com.

About Energy Focus

Energy Focus is an industry-leading innovator of sustainable LED lighting and lighting control technologies and solutions, as well as UV-C Disinfection technologies and solutions. As the creator of the first flicker-free LED lamps, Energy Focus develops high quality LED lighting products and controls that provide extensive energy and maintenance savings, as well as aesthetics, safety, health and sustainability benefits over conventional lighting. Our EnFocusTM lighting control platform enables existing and new buildings to provide quality, convenient and affordable, dimmable and color-tunable, circadian and human-centric lighting capabilities. In addition, our patent-pending UVCD technologies and products, announced in late 2020, aim to provide effective, reliable and affordable UVCD solutions for buildings, facilities and homes. Energy Focus’ customers include U.S. and foreign navies, U.S. federal, state and local governments, healthcare and educational institutions, as well as Fortune 500 companies. Since 2007, Energy Focus has installed approximately 900,000 lighting products across the U.S. Navy fleet, including tubular LEDs, waterline security lights, explosion-proof globes and berth lights, saving more than five million gallons of fuel and 300,000 man-hours in lighting maintenance annually. Energy Focus is headquartered in Solon, Ohio. For more information, visit our website at www.energyfocus.com.

Forward-Looking Statements:

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “feels,” “seeks,” “forecasts,” “projects,” “intends,” “plans,” “may,” “will,” “should,” “could” or “would” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies, capital expenditures, and the industry in which we operate. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Although we base these forward-looking statements on assumptions that we believe are reasonable when made in light of the information currently available to us, we caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and industry developments may differ materially from statements made in or suggested by the forward-looking statements contained in this release. We believe that important factors that could cause our actual results to differ materially from forward-looking statements include, but are not limited to: (i) disruptions and a slowing in the U.S. and global economies and business interruptions experienced by us, our customers and our suppliers as a result of the COVID-19 pandemic and related impacts on travel, trade and business operations; (ii) our ability to realize the expected novelty, disinfection effectiveness, affordability and estimated delivery timing of our UVCD products and their appeal compared to other products; (iii) our ability to extend our product portfolio into commercial services and consumer products; (iv) market acceptance of our LED lighting, control and UVCD technologies, services and products; (v) our need for additional financing in the near term to continue our operations; (vi) our ability to refinance or extend maturing debt on acceptable terms or at all; (vii) our ability to continue as a going concern for a reasonable period of time; (viii) our ability to implement plans to increase sales and control expenses; (ix) our reliance on a limited number of customers for a significant portion of our revenue, and our ability to maintain or grow such sales levels; (x) our ability to add new customers to reduce customer concentration; (xi) our reliance on a limited number of third-party suppliers and research and development partners, our ability to manage third-party product development and obtain critical components and finished products from such suppliers on acceptable terms and of acceptable quality, and the impact of our fluctuating demand on the stability of such suppliers; (xii) our ability to timely and efficiently transport products from our third-party suppliers to our facility by ocean marine and other logistics channels; (xiii) our ability to increase demand in our targeted markets and to manage sales cycles that are difficult to predict and may span several quarters; (xiv) the timing of large customer orders, significant expenses and fluctuations between demand and capacity as we invest in growth opportunities; (xv) our ability to compete effectively against companies with lower prices or cost structures, or greater resources, or more rapid development efforts, and new competitors in our target markets; (xvi) our ability to successfully scale our network of sales representatives, agents, distributors and other channel partners to match the sales reach of larger, established competitors; (xvii) our ability to attract, develop and retain qualified personnel, and to do so in a timely manner; (xviii) the impact of any type of legal inquiry, claim or dispute; (xix) general economic conditions in the United States and in other markets in which we operate or secure products; (xx) our dependence on military maritime customers and on the levels and timing of government funding available to such customers, as well as the funding resources of our other customers in the public sector and commercial markets; (xxi) business interruptions resulting from geopolitical actions, including war and terrorism, natural disasters, including earthquakes, typhoons, floods and fires, or from health epidemics or pandemics or other contagious outbreaks; (xxii) our ability to respond to new lighting technologies and market trends; (xxiii) our ability to fulfill our warranty obligations with safe and reliable products; (xxiv) any delays we may encounter in making new products available or fulfilling customer specifications; (xxv) any flaws or defects in our products or in the manner in which they are used or installed; (xxvi) our ability to protect our intellectual property rights and other confidential information, and manage infringement claims made by others; (xxvii) our compliance with government contracting laws and regulations, through both direct and indirect sale channels, as well as other laws, such as those relating to the environment and health and safety; (xxviii) risks inherent in international markets, such as economic and political uncertainty, changing regulatory and tax requirements and currency fluctuations, including tariffs and other potential barriers to international trade; (xxix) our ability to maintain effective internal controls and otherwise comply with our obligations as a public company; and (xxx) our ability to maintain compliance with the continued listing standards of The Nasdaq Stock Market. For additional factors that could cause our actual results to differ materially from the forward-looking statements, please refer to our most recent annual report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.

 

Condensed Consolidated Balance Sheets

(in thousands)

 

 

June 30, 2021

 

December 31, 2020

 

(Unaudited)

 

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash

$

1,327

 

 

$

1,836

 

Trade accounts receivable, less allowances of $16 and $8, respectively

1,149

 

 

2,021

 

Inventories, net

8,129

 

 

5,641

 

Short-term deposits

908

 

 

796

 

Prepaid and other current assets

810

 

 

782

 

Total current assets

12,323

 

 

11,076

 

 

 

 

 

Property and equipment, net

531

 

 

420

 

Operating lease, right-of-use asset

548

 

 

794

 

Restructured lease, right-of-use asset

 

 

107

 

Total assets

$

13,402

 

 

$

12,397

 

 

 

 

 

LIABILITIES

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

2,846

 

 

$

2,477

 

Accrued liabilities

101

 

 

45

 

Accrued legal and professional fees

38

 

 

149

 

Accrued payroll and related benefits

685

 

 

885

 

Accrued sales commissions

49

 

 

95

 

Accrued restructuring

 

 

11

 

Accrued warranty reserve

239

 

 

227

 

Deferred revenue

71

 

 

72

 

Operating lease liabilities

621

 

 

598

 

Restructured lease liabilities

 

 

168

 

Finance lease liabilities

2

 

 

3

 

Streeterville note, net of discount and loan origination fees

1,527

 

 

 

PPP loan

 

 

529

 

Credit line borrowings, net of loan origination fees

1,573

 

 

2,298

 

Total current liabilities

7,752

 

 

7,557

 

Condensed Consolidated Balance Sheets

(in thousands)

 

 

June 30, 2021

 

December 31, 2020

 

(Unaudited)

 

 

Operating lease liabilities, net of current portion

34

 

 

 

318

 

 

Finance lease liabilities, net of current portion

 

 

 

1

 

 

PPP loan, net of current maturities

 

 

 

266

 

 

Streeterville note, net of current maturities

13

 

 

 

 

 

Total liabilities

7,799

 

 

 

8,142

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

Preferred stock, par value $0.0001 per share:

 

 

 

Authorized: 5,000,000 shares (3,300,000 shares designated as Series A Convertible Preferred Stock) at June 30, 2021 and December 31, 2020

 

 

 

Issued and outstanding: 876,447 at June 30, 2021 and 2,597,470 at December 31, 2020

 

 

 

 

 

Common stock, par value $0.0001 per share:

 

 

 

Authorized: 50,000,000 shares at June 30, 2021 and December 31, 2020

 

 

 

Issued and outstanding: 5,085,274 at June 30, 2021 and 3,525,374 at December 31, 2020

 

 

 

 

 

Additional paid-in capital

140,576

 

 

 

135,113

 

 

Accumulated other comprehensive loss

(3

)

 

 

(3

)

 

Accumulated deficit

(134,970

)

 

 

(130,855

)

 

Total stockholders' equity

5,603

 

 

 

4,255

 

 

Total liabilities and stockholders' equity

$

13,402

 

 

 

$

12,397

 

 

 

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

 

 

Three months ended

 

Six months ended June 30,

 

June 30, 2021

 

March 31, 2021

 

June 30, 2020

 

2021

 

 

2020

 

Net sales

$

2,074

 

 

 

$

2,637

 

 

 

$

3,335

 

 

 

$

4,711

 

 

 

$

7,118

 

 

Cost of sales

1,681

 

 

 

2,084

 

 

 

1,992

 

 

 

3,765

 

 

 

4,743

 

 

Gross profit

393

 

 

 

553

 

 

 

1,343

 

 

 

946

 

 

 

2,375

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Product development

370

 

 

 

653

 

 

 

313

 

 

 

1,023

 

 

 

595

 

 

Selling, general, and administrative

2,268

 

 

 

2,218

 

 

 

1,973

 

 

 

4,486

 

 

 

4,000

 

 

Restructuring

(3

)

 

 

(19

)

 

 

(14

)

 

 

(22

)

 

 

(28

)

 

Total operating expenses

2,635

 

 

 

2,852

 

 

 

2,272

 

 

 

5,487

 

 

 

4,567

 

 

Loss from operations

(2,242

)

 

 

(2,299

)

 

 

(929

)

 

 

(4,541

)

 

 

(2,192

)

 

 

 

 

 

 

 

 

 

 

 

Other expenses (income):

 

 

 

 

 

 

 

 

 

Interest expense

216

 

 

 

127

 

 

 

87

 

 

 

343

 

 

 

220

 

 

Gain on forgiveness of debt

 

 

 

(801

)

 

 

 

 

 

(801

)

 

 

 

 

Loss from change in fair value of warrants

 

 

 

 

 

 

3,300

 

 

 

 

 

 

2,427

 

 

Other expenses

15

 

 

 

17

 

 

 

24

 

 

 

32

 

 

 

42

 

 

Net loss

$

(2,473

)

 

 

$

(1,642

)

 

 

$

(4,340

)

 

 

$

(4,115

)

 

 

$

(4,881

)

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share attributable to common stockholders - basic:

 

 

 

 

 

 

 

 

 

From operations

$

(0.59

)

 

 

$

(0.45

)

 

 

$

(1.36

)

 

 

$

(1.05

)

 

 

$

(1.55

)

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock outstanding:

 

 

 

 

 

 

 

 

 

Basic and diluted *

4,211

 

 

3,612

 

 

3,192

 

 

3,913

 

 

3,139

 

*Shares outstanding for the three and six months ended June 30, 2020 have been restated for the 1-for-5 reverse stock split effective June 11, 2020.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

Three months ended

 

Six months ended June 30,

 

June 30, 2021

 

March 31, 2021

 

June 30, 2020

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net loss

$

(2,473

)

 

 

$

(1,642

)

 

 

$

(4,340

)

 

 

$

(4,115

)

 

 

$

(4,881

)

 

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

 

Gain on forgiveness of PPP loan

 

 

 

(801

)

 

 

 

 

 

(801

)

 

 

 

 

Depreciation

53

 

 

 

47

 

 

 

46

 

 

 

100

 

 

 

92

 

 

Stock-based compensation

208

 

 

 

140

 

 

 

41

 

 

 

348

 

 

 

61

 

 

Change in fair value of warrant liabilities

 

 

 

 

 

 

3,300

 

 

 

 

 

 

2,427

 

 

Provision for doubtful accounts receivable

2

 

 

 

6

 

 

 

 

 

 

8

 

 

 

(12

)

 

Provision for slow-moving and obsolete inventories

(28

)

 

 

89

 

 

 

(241

)

 

 

61

 

 

 

(319

)

 

Provision for warranties

 

 

 

12

 

 

 

(24

)

 

 

12

 

 

 

20

 

 

Amortization of loan discounts and origination fees

59

 

 

 

38

 

 

 

38

 

 

 

97

 

 

 

76

 

 

Changes in operating assets and liabilities (sources / (uses) of cash):

 

 

 

 

 

 

 

 

 

Accounts receivable

358

 

 

 

532

 

 

 

(614

)

 

 

890

 

 

 

(169

)

 

Inventories

(586

)

 

 

(1,963

)

 

 

(959

)

 

 

(2,549

)

 

 

587

 

 

Short-term deposits

137

 

 

 

12

 

 

 

25

 

 

 

149

 

 

 

(215

)

 

Prepaid and other assets

(32

)

 

 

4

 

 

 

(36

)

 

 

(28

)

 

 

17

 

 

Accounts payable

(869

)

 

 

951

 

 

 

1,429

 

 

 

82

 

 

 

1,277

 

 

Accrued and other liabilities

(149

)

 

 

(209

)

 

 

71

 

 

 

(358

)

 

 

293

 

 

Deferred revenue

(2

)

 

 

1

 

 

 

57

 

 

 

(1

)

 

 

43

 

 

Total adjustments

(849

)

 

 

(1,141

)

 

 

3,133

 

 

 

(1,990

)

 

 

4,178

 

 

Net cash used in operating activities

(3,322

)

 

 

(2,783

)

 

 

(1,207

)

 

 

(6,105

)

 

 

(703

)

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Acquisitions of property and equipment

(102

)

 

 

(109

)

 

 

(71

)

 

 

(211

)

 

 

(118

)

 

Net cash used in investing activities

(102

)

 

 

(109

)

 

 

(71

)

 

 

(211

)

 

 

(118

)

 


Contacts

Investor Contact:
Brett Maas
(646) 536-7331


Read full story here

PLANO, Texas--(BUSINESS WIRE)--Vine Energy Inc. announced today that it cancelled its second-quarter 2021 conference call scheduled for August 16, 2021 at 9am Central time following the announcement of the definitive agreement in which Chesapeake Energy intends to acquire Vine. The call is not expected to be rescheduled.


The company expects to file its second-quarter 2021 results on Form 10-Q on or before August 16, 2021.

About Vine Energy Inc.

Vine Energy Inc., based in Plano, Texas, is an energy company focused on the development of natural gas properties in the stacked Haynesville and Mid-Bossier shale plays in the Haynesville Basin of Northwest Louisiana. The Company is listed on the New York Stock Exchange under the symbol “VEI”.


Contacts

David Erdman
(469) 605-2480
This email address is being protected from spambots. You need JavaScript enabled to view it.

HAMDEN, Conn.--(BUSINESS WIRE)--TransAct Technologies Incorporated (Nasdaq: TACT) (“TransAct,” the “Company,” “we” or “our”), a global leader in software-driven technology and printing solutions for high-growth markets, today announced the pricing of an underwritten public offering of 732,500 newly issued shares of its common stock at a price of $14.50 per share. The proceeds to the Company from the offering are expected to be approximately $10.6] million before deducting underwriting discounts and commissions and estimated offering expenses payable by the Company. TransAct has also granted to the underwriters of the offering a 30-day option to purchase an additional 109,875 shares of common stock to cover overallotments in connection with the offering. The offering is expected to close on August 16, 2021, subject to customary closing conditions.

Roth Capital Partners is acting as the sole book-running manager for the offering, and Craig-Hallum Capital Group and Barrington Research Associates, Inc. are acting as co-managers for the offering.

TransAct intends to use the net proceeds from the offering for working capital and other general corporate purposes, which may include funding the further development of TransAct’s food service technology business and related sales, marketing and product development efforts, technology improvements and personnel costs in support of TransAct’s growth strategy.

A shelf registration statement relating to the shares of common stock to be issued in the offering was filed with the Securities and Exchange Commission (the “SEC”) on August 17, 2020 and is effective, and an additional registration statement on Form S-3 was filed with the SEC on August 11, 2021 pursuant to Rule 462(b) promulgated under the Securities Act of 1933, as amended, and became immediately effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these 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 any such state or jurisdiction. A preliminary prospectus supplement and accompanying base prospectus relating to and describing the terms of the offering have been filed with the SEC, and a final prospectus supplement and accompanying base prospectus describing the final terms of the offering will be filed with the SEC and, when available, may be obtained from Roth Capital Partners, LLC, 888 San Clemente, Suite 400, Newport Beach, CA 92660, by email at This email address is being protected from spambots. You need JavaScript enabled to view it. or by telephone at (800) 678-9147, or by accessing the SEC’s website, www.sec.gov.

About TransAct Technologies Incorporated

TransAct Technologies Incorporated is a global leader in developing software-driven technology and printing solutions for high-growth markets including food service, casino and gaming, POS automation, and oil and gas. The Company’s solutions are designed from the ground up based on customer requirements and are sold under the BOHA! ™, AccuDate™, EPICENTRAL®, Epic, Ithaca® and Printrex® brands. TransAct has sold over 3.5 million printers, terminals and other hardware devices around the world and is committed to providing world-class service, spare parts and accessories to support its installed product base. Through the TransAct Services Group, the Company also provides customers with a complete range of supplies and consumable items both online at http://www.transactsupplies.com and through its direct sales team. TransAct is headquartered in Hamden, CT. For more information, please visit http://www.transact-tech.com or call (203) 859-6800.

TransAct®, BOHA!™, AccuDate™, Epic, EPICENTRAL®, Ithaca® and Printrex® are trademarks of TransAct Technologies Incorporated. ©2021 TransAct Technologies Incorporated. All rights reserved.

Forward-Looking Statements

Certain statements in this press release include forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology, such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “project,” “plan” or “continue,” or the negative thereof, or other similar words. All forward-looking statements involve risks and uncertainties, including, but not limited to, the adverse effects of the COVID-19 pandemic, related vaccination rates and the emergence of virus variants on our business, operations, financial condition, results of operations and capital resources, including as a result of supply chain disruptions, shutdowns and/or operational restrictions imposed on our customers, an inability of our customers to make payments on time or at all, diversion of management attention, necessary modifications to our business practices and operations, cost cutting measures we have made and may continue to make, a possible future reduction in the value of goodwill or other intangible assets, inadequate manufacturing capacity or a shortfall or excess of inventory as a result of difficulty in predicting manufacturing requirements due to volatile economic conditions, price increases or decreased availability of component parts or raw materials, exchange rate fluctuations, volatility of and decreases in trading prices of our common stock and the availability of needed financing on acceptable terms or at all; our ability to successfully develop new products that garner customer acceptance and generate sales, both domestically and internationally, in the face of substantial competition; our reliance on an unrelated third party to develop, maintain and host certain web-based food service application software and develop and maintain selected components of our downloadable software applications pursuant to a non-exclusive license agreement, and the risk that interruptions in our relationship with that third party could materially impair our ability to provide services to our food service technology customers on a timely basis or at all and could require substantial expenditures to find or develop alternative software products; our ability to successfully transition our business into the food service technology market; our ability to fully remediate a previously disclosed material weakness in our internal control over financial reporting; risks associated with potential future acquisitions; general economic conditions; our dependence on contract manufacturers for the assembly of a large portion of our products in Asia; our dependence on significant suppliers; our ability to recruit and retain quality employees as the Company grows; our dependence on third parties for sales outside the United States; our dependence on technology licenses from third parties; marketplace acceptance of new products; risks associated with foreign operations; the availability of third-party components at reasonable prices; price wars or other significant pricing pressures affecting the Company’s products in the United States or abroad; increased product costs or reduced customer demand for our products due to changes in U.S. policy that may result in trade wars or tariffs; our ability to protect intellectual property; the effect of the United Kingdom’s withdrawal from the European Union; and other risk factors detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, and other reports filed with the SEC. Actual results may differ materially from those discussed in, or implied by, the forward-looking statements. The forward-looking statements speak only as of the date of this release, and the Company assumes no duty to update them to reflect new, changing or unanticipated events or circumstances, except as required by applicable law.


Contacts

Investor:
Bart Shuldman
Chairman and Chief Executive Officer
TransAct Technologies Incorporated
702-388-8180

Michael Bowen
ICR, Inc.
This email address is being protected from spambots. You need JavaScript enabled to view it.
203-682-8299

Ryan Gardella
ICR, Inc.
This email address is being protected from spambots. You need JavaScript enabled to view it.
203-682-8240

HAMDEN, Conn.--(BUSINESS WIRE)--TransAct Technologies Incorporated (Nasdaq: TACT) (“TransAct,” the “Company,” “we” or “our”), a global leader in software-driven technology and printing solutions for high-growth markets, today announced that it intends to offer newly issued shares of its common stock in an underwritten public offering. TransAct also expects to grant to the underwriters of the offering a 30-day option to purchase up to an additional 15% of the shares of common stock offered in the underwritten public offering on the same terms and conditions.

Roth Capital Partners is acting as the sole book-running manager for the offering, and Craig-Hallum Capital Group is acting as co-manager for the offering. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the size or terms of the offering.

TransAct intends to use the net proceeds from the offering for working capital and other general corporate purposes, which may include funding the further development of TransAct’s food service technology business and related sales, marketing and product development efforts, technology improvements and personnel costs in support of TransAct’s growth strategy.

A shelf registration statement relating to the shares of common stock to be issued in the proposed offering was filed with the Securities and Exchange Commission (the “SEC”) on August 17, 2020 and is effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these 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 any such state or jurisdiction. Copies of the preliminary prospectus supplement and accompanying prospectus will be filed with the SEC and, when available, may be obtained from Roth Capital Partners, LLC, 888 San Clemente, Suite 400, Newport Beach, CA 92660, by email at This email address is being protected from spambots. You need JavaScript enabled to view it. or by telephone at (800) 678-9147, or by accessing the SEC’s website, www.sec.gov.

About TransAct Technologies Incorporated

TransAct Technologies Incorporated is a global leader in developing software-driven technology and printing solutions for high-growth markets including food service, casino and gaming, POS automation, and oil and gas. The Company’s solutions are designed from the ground up based on customer requirements and are sold under the BOHA! ™, AccuDate™, EPICENTRAL®, Epic, Ithaca® and Printrex® brands. TransAct has sold over 3.5 million printers, terminals and other hardware devices around the world and is committed to providing world-class service, spare parts and accessories to support its installed product base. Through the TransAct Services Group, the Company also provides customers with a complete range of supplies and consumable items both online at http://www.transactsupplies.com and through its direct sales team. TransAct is headquartered in Hamden, CT. For more information, please visit http://www.transact-tech.com or call (203) 859-6800.

TransAct®, BOHA!™, AccuDate™, Epic, EPICENTRAL®, Ithaca® and Printrex® are trademarks of TransAct Technologies Incorporated. ©2021 TransAct Technologies Incorporated. All rights reserved.

Forward-Looking Statements

Certain statements in this press release include forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology, such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “project,” “plan” or “continue,” or the negative thereof, or other similar words. All forward-looking statements involve risks and uncertainties, including, but not limited to, the adverse effects of the COVID-19 pandemic, related vaccination rates and the emergence of virus variants on our business, operations, financial condition, results of operations and capital resources, including as a result of supply chain disruptions, shutdowns and/or operational restrictions imposed on our customers, an inability of our customers to make payments on time or at all, diversion of management attention, necessary modifications to our business practices and operations, cost cutting measures we have made and may continue to make, a possible future reduction in the value of goodwill or other intangible assets, inadequate manufacturing capacity or a shortfall or excess of inventory as a result of difficulty in predicting manufacturing requirements due to volatile economic conditions, price increases or decreased availability of component parts or raw materials, exchange rate fluctuations, volatility of and decreases in trading prices of our common stock and the availability of needed financing on acceptable terms or at all; our ability to successfully develop new products that garner customer acceptance and generate sales, both domestically and internationally, in the face of substantial competition; our reliance on an unrelated third party to develop, maintain and host certain web-based food service application software and develop and maintain selected components of our downloadable software applications pursuant to a non-exclusive license agreement, and the risk that interruptions in our relationship with that third party could materially impair our ability to provide services to our food service technology customers on a timely basis or at all and could require substantial expenditures to find or develop alternative software products; our ability to successfully transition our business into the food service technology market; our ability to fully remediate a previously disclosed material weakness in our internal control over financial reporting; risks associated with potential future acquisitions; general economic conditions; our dependence on contract manufacturers for the assembly of a large portion of our products in Asia; our dependence on significant suppliers; our ability to recruit and retain quality employees as the Company grows; our dependence on third parties for sales outside the United States; our dependence on technology licenses from third parties; marketplace acceptance of new products; risks associated with foreign operations; the availability of third-party components at reasonable prices; price wars or other significant pricing pressures affecting the Company’s products in the United States or abroad; increased product costs or reduced customer demand for our products due to changes in U.S. policy that may result in trade wars or tariffs; our ability to protect intellectual property; the effect of the United Kingdom’s withdrawal from the European Union; and other risk factors detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, and other reports filed with the SEC. Actual results may differ materially from those discussed in, or implied by, the forward-looking statements. The forward-looking statements speak only as of the date of this release, and the Company assumes no duty to update them to reflect new, changing or unanticipated events or circumstances, except as required by applicable law.


Contacts

Investor:
Bart Shuldman
Chairman and Chief Executive Officer
TransAct Technologies Incorporated
702-388-8180

Michael Bowen
ICR, Inc.
This email address is being protected from spambots. You need JavaScript enabled to view it.
203-682-8299

Ryan Gardella
ICR, Inc.
This email address is being protected from spambots. You need JavaScript enabled to view it.
203-682-8240

The company to offer up to $30,000 in grants to support regional 501c3 non-profit organizations and local communities in the fight against climate change and to advance environmental justice


NORTHFIELD, Mass.--(BUSINESS WIRE)--FirstLight Power (FirstLight), a leading clean power producer and energy storage company, announced today that the company is launching two grant programs – the Climate Action Grant and Environmental Justice Grant. The grant programs were created as an opportunity for Franklin County communities and 501c3 non-profit organizations to join FirstLight in having a positive impact on climate change and on environmental justice. The program includes two grant applications – for work in climate action and environmental justice-related projects in Franklin County – that will be eligible for grants up to $15,000 each, totaling up to $30,000. Applications will be accepted from August 1 through October 8, 2021, and FirstLight will work with a selection committee to choose and announce grant winners in November 2021.

“FirstLight is proud of our role in making Franklin County an epicenter of clean energy leadership and environmental stewardship through our operation of some of the region’s largest clean power assets and by making our recreational and educational facilities accessible to our neighbors and local communities,” said Alicia Barton, CEO of FirstLight. “Building on our long-standing commitment to have a positive impact on the communities that we serve, we are excited for the opportunity to sponsor work by local environmental, education and tribal organizations to advance new projects that will improve the local environment and public health while fostering greater climate resiliency within our communities.”

FirstLight’s Climate Action Grant Program will support the efforts of 501c3 non-profit organizations for climate action-related projects in Franklin County. Climate Action Grant projects can be educational, support workforce development, help preserve critical environmental resources, study or mitigate the impacts of climate change, increase resiliency, or otherwise enhance the community’s opportunities for sustainability. A selection committee will award grants up to $15,000, depending on availability of funding.

FirstLight’s Environmental Justice Grant Program supports and empowers community-based 501c3 organizations, tribal and local government entities, and cultural and social action organizations working on solutions to local environmental and public health issues. The program is designed to help communities understand and address exposure to multiple environmental harms and risks. Environmental Justice Grant projects can study, educate, train, or promote awareness of environmental or public health impacts in the community, provide solutions to critical environmental problems, public health issues, or preservation of important resources in environmental justice communities, or otherwise enhance the community’s environmental empowerment. A selection committee will award grants up to $15,000, depending on availability of funding every year.

FirstLight’s Climate Action and Environmental Justice Grant Programs request that eligible organizations and communities apply through an online application form by October 8, 2021. In this application, communities and organizations will share their preliminary approach and will outline how they plan to have a lasting impact on the local community, spur action on climate or environmental justice issues, elevate existing community assets to create new benefits or opportunities, how the project fits into the community’s broader goals, and the ability of the group to complete the proposed project and how it aligns with the group’s overall mission. Grant recipients will be announced in November 2021.

For questions regarding eligibility or the application process, please contact This email address is being protected from spambots. You need JavaScript enabled to view it..

ABOUT FIRSTLIGHT POWER

FirstLight Power (FirstLight) is a leading clean power producer and energy storage company in New England with a portfolio that includes nearly 1,400 megawatts of pumped-hydro storage, battery storage, hydroelectric generation, and solar generation – the largest clean energy generation portfolio in New England today. Based in Burlington, MA, with operating offices in Northfield, MA and New Milford, CT, FirstLight provides stewardship of and recreational access to 14,000 acres of land and waters along the Connecticut, Housatonic, Shetucket, Still, and Quinebaug Rivers. To learn more, visit www.firstlightpower.com.


Contacts

Carter Wall, Manager of Government Affairs and Community Relations
Cell: 413-834-2126, Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Brittany Murphy, Slowey McManus Communications
Cell: 508-826-2817, Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

NEWCASTLE & HOUSTON--(BUSINESS WIRE)--TechnipFMC (NYSE: FTI) (PARIS: FTI) is joining forces with Loke Marine Minerals (Loke) to develop enabling technologies for the extraction of seabed minerals, driving the energy transition and a sustainable future.


Marine minerals have been identified by the World Bank, World Economic Forum, and International Energy Agency as one of the potential solutions to meet the increasing demand for metals used in electric vehicle batteries, clean energy technologies, and consumer electronics.

Together, Loke and TechnipFMC are developing a patent-pending, autonomous subsea production system that aims to have minimal impact on the environment and positions the company well for potential offshore licensing on the Norwegian Continental Shelf (NCS) and internationally.

Jonathan Landes, President, Subsea at TechnipFMC commented, “We are pleased to partner with Loke in the development of this important resource. Our culture of collaboration, integration, and innovation, along with our expertise in subsea robotics and extensive history on the NCS can help meet the rising demand for new technologies and resources that are driving the energy transition.”

TechnipFMC has a minority ownership stake in Loke. Wilh. Wilhemsen Holding ASA, a global maritime industry group, and NorSea Group have also taken an ownership stake in Loke.

Walter Sognnes, CEO at Loke, commented, “We are very excited and pleased to get these first class and top choice companies to join on the owner side of Loke. We see great benefits for the exciting phase the company now is entering from what they are bringing to the table, with regards to knowledge, experience, and culture. Their complementary business areas with common overlap is an ideal match with our ambition of becoming an international leading marine minerals company.”

The NCS is known to have copper, zinc, cobalt, and other rare earth elements. Norway is one of the only countries to have formalized marine mineral legislation. The Norwegian government is expected to make a final decision on licensing approval for exploration and production in 2023.

Important Information for Investors and Securityholders

Forward-Looking Statement

This release contains "forward-looking statements" as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. The words “expect,” “believe,” “estimated,” and other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. Such forward-looking statements involve significant risks, uncertainties and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. For information regarding known material factors that could cause actual results to differ from projected results, please see our risk factors set forth in our filings with the United States Securities and Exchange Commission, which include our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law.

About TechnipFMC

TechnipFMC is a leading technology provider to the traditional and new energy industries, delivering fully integrated projects, products, and services.

With our proprietary technologies and comprehensive solutions, we are transforming our clients’ project economics, helping them unlock new possibilities to develop energy resources while reducing carbon intensity and supporting their energy transition ambitions.

Organized in two business segments — Subsea and Surface Technologies — we will continue to advance the industry with our pioneering integrated ecosystems (such as iEPCI™, iFEED™ and iComplete™), technology leadership and digital innovation.

Each of our approximately 20,000 employees is driven by a commitment to our clients’ success, and a culture of strong execution, purposeful innovation, and challenging industry conventions.

TechnipFMC uses its website as a channel of distribution of material company information. To learn more about how we are driving change in the industry, go to www.TechnipFMC.com and follow us on Twitter @TechnipFMC.


Contacts

Investor relations

Matt Seinsheimer
Vice President, Investor Relations
Tel: +1 281 260 3665
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

James Davis
Senior Manager, Investor Relations
Tel: +1 281 260 3665
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Media relations

Nicola Cameron
Vice President, Corporate Communications
Tel: +44 1383 742297
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Catie Tuley
Director, Public Relations
Tel: +1 713 876 7296
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Lesley Elwell Named Chief Human Resources Officer; Greg Greenwood Named Chief Strategy Officer

KANSAS CITY, Mo.--(BUSINESS WIRE)--Evergy, Inc. (NYSE: EVRG) today announced Lesley Elwell will join the Company as Senior Vice President and Chief Human Resources Officer. In this role, Elwell will lead Evergy’s Human Resources organization, with an emphasis on talent strategy, employee engagement, organizational development and performance management. She will report to David Campbell, Evergy’s President and Chief Executive Officer.


Lesley’s proven leadership will be invaluable to Evergy,” said David Campbell, Evergy President and Chief Executive Officer. “She brings deep expertise and experience in leadership development, change management, diversity and inclusion, organizational excellence, HR analytics and employee engagement. She has a demonstrated track record of driving high performance and I’m excited to have her join the Evergy team.”

Elwell joins Evergy with more than 25 years of experience holding human resources and operations leadership roles for large, publicly traded companies in consumer and business-to-business industries, including Walmart, DIRECTV and Sprint. Currently she serves as Chief People Officer at Kansas City-based JE Dunn, one of the largest commercial construction firms in the United States. In that role, she helped transform JE Dunn’s human resource function and developed a workforce strategy to align with key strategic business priorities.

I can’t imagine a more exciting time to join Evergy,” Lesley Elwell said. “Over the next decade our company will experience a period of ongoing change given the innovative and evolving dynamics of our industry. I am honored to join the Evergy team as the company helps to lead the industry through this strategic transformation.”

Elwell currently serves on the Board of Directors at Starlight Theatre, Kansas City Global Design and Tecta America, a commercial nationwide roofing company. She holds a Master of Engineering Management from the University of Kansas and a Bachelor of Science in industrial engineering from Universidad Nacional Experimental Del Tachira in Venezuela.

Elwell succeeds Jerl Banning, who left the Company in May 2021.

In addition, Evergy announced today that Greg Greenwood, currently Executive Vice President and Chief Administrative Officer, has been named as Executive Vice President and Chief Strategy Officer. Greenwood will continue to lead the Company’s Enterprise Analytics and Continuous Improvement departments and will work directly with David Campbell to provide strategic oversight on the Sustainability Transformation Plan through his anticipated departure and retirement in the middle of 2022. He then plans to transition to an advisory role following his retirement through early 2024.

In his 30-year career with the company, Greg has delivered results in a broad set of leadership roles and he brings compelling insights and judgment to the key strategic issues that we face,” Campbell explained. “I look forward to working closely with him as our Chief Strategy Officer and subsequently taking advantage of his expertise as an advisor as we advance our Sustainability Transformation Plan.”

Sustainability Transformation Plan

Evergy’s STP was announced in August 2020. The plan honors prior regulatory and merger commitments made in connection with Evergy's formation, while furthering the company's focus on grid modernization, renewable energy investment and cost management. Under the STP, Evergy plans continued cost discipline coupled with increased system investment to enhance the customer experience and improve system resilience and reliability. These capital investments are expected to support 5% to 6% compounded annual rate base growth from 2019 to 2024, targeting EPS compounded annual growth of 6% to 8% over the same period, consistent with top-performing utilities.

About Evergy, Inc.

Evergy, Inc. (NYSE: EVRG) serves approximately 1.6 million customers in Kansas and Missouri. We were formed in 2018 when long-term local energy providers KCP&L and Westar Energy merged. We are a leader in renewable energy, supplying nearly half of the power we provide to homes and businesses from emission-free generation. We support our local communities where we live and work and strive to meet the needs of customers through energy savings and innovative solutions.

Cautionary Statements Regarding Certain Forward-looking Information

Statements made in this press release that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements relating to Evergy’s strategic plan, including, without limitation, those related to earnings per share, dividend, operating and maintenance expense and capital investment goals; the outcome of legislative efforts and regulatory and legal proceedings; future energy demand; future power prices; plans with respect to existing and potential future generation resources; the availability and cost of generation resources and energy storage; target emissions reductions; and other matters relating to expected financial performance or affecting future operations. Forward-looking statements are often accompanied by forward-looking words such as “anticipates,” “believes,” “expects,” “estimates,” “forecasts,” “should,” “could,” “may,” “seeks,” “intends,” “proposed,” “projects,” “planned,” “target,” “outlook,” “remain confident,” “goal,” “will” or other words of similar meaning. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from the forward-looking information.

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Evergy, Inc., Evergy Kansas Central, Inc. and Evergy Metro, Inc. (collectively, the Evergy Companies) are providing a number of risks, uncertainties and other factors that could cause actual results to differ from the forward-looking information. These risks, uncertainties and other factors include, but are not limited to: economic and weather conditions and any impact on sales, prices and costs; changes in business strategy or operations; the impact of federal, state and local political, legislative, judicial and regulatory actions or developments, including deregulation, re-regulation, securitization and restructuring of the electric utility industry; decisions of regulators regarding, among other things, customer rates and the prudency of operational decisions such as capital expenditures and asset retirements; changes in applicable laws, regulations, rules, principles or practices, or the interpretations thereof, governing tax, accounting and environmental matters, including air and water quality and waste management and disposal; the impact of climate change, including increased frequency and severity of significant weather events and the extent to which counterparties are willing to do business with, finance the operations of or purchase energy from the Evergy Companies due to the fact that the Evergy Companies operate coal-fired generation; prices and availability of electricity in wholesale markets; market perception of the energy industry and the Evergy Companies; the impact of the Coronavirus (COVID-19) pandemic on, among other things, sales, results of operations, financial condition, liquidity and cash flows, and also on operational issues, such as the availability and ability of the Evergy Companies’ employees and suppliers to perform the functions that are necessary to operate the Evergy Companies; changes in the energy trading markets in which the Evergy Companies participate, including retroactive repricing of transactions by regional transmission organizations (RTO) and independent system operators; financial market conditions and performance, including changes in interest rates and credit spreads and in availability and cost of capital and the effects on derivatives and hedges, nuclear decommissioning trust and pension plan assets and costs; impairments of long-lived assets or goodwill; credit ratings; inflation rates; the transition to a replacement for the London Interbank Offered Rate (LIBOR) benchmark interest rate; effectiveness of risk management policies and procedures and the ability of counterparties to satisfy their contractual commitments; impact of physical and cybersecurity breaches, criminal activity, terrorist attacks and other disruptions to the Evergy Companies’ facilities or information technology infrastructure or the facilities and infrastructure of third-party service providers on which the Evergy Companies rely; ability to carry out marketing and sales plans; cost, availability, quality and timely provision of equipment, supplies, labor and fuel; ability to achieve generation goals and the occurrence and duration of planned and unplanned generation outages; delays and cost increases of generation, transmission, distribution or other projects; the Evergy Companies’ ability to manage their transmission and distribution development plans and transmission joint ventures; the inherent risks associated with the ownership and operation of a nuclear facility, including environmental, health, safety, regulatory and financial risks; workforce risks, including those related to the Evergy Companies’ ability to attract and retain qualified personnel, maintain satisfactory relationships with their labor unions and manage costs of, or changes in, retirement, health care and other benefits; disruption, costs and uncertainties caused by or related to the actions of individuals or entities, such as activist shareholders or special interest groups, that seek to influence Evergy’s strategic plan, financial results or operations; the possibility that strategic initiatives, including mergers, acquisitions and divestitures, and long-term financial plans, may not create the value that they are expected to achieve in a timely manner or at all; difficulties in maintaining relationships with customers, employees, regulators or suppliers; and other risks and uncertainties.

This list of factors is not all-inclusive because it is not possible to predict all factors. Additional risks and uncertainties are discussed from time to time in current, quarterly and annual reports filed by the Evergy Companies with the Securities and Exchange Commission (SEC). Reports filed by the Evergy Companies with the SEC should also be read for more information regarding risk factors. Each forward-looking statement speaks only as of the date of the particular statement. The Evergy Companies undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.


Contacts

Media Contact:
Gina Penzig
Manager, External Communications
Phone: 785-508-2410
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Media line: 888-613-0003

Investor Contact:
Cody VandeVelde
Director, Investor Relations
Phone: 785-575-8227
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HOUSTON--(BUSINESS WIRE)--#DNOW--NOW Inc. (NYSE:DNOW) announced today that Wayne Richards has resigned from the Company’s board of directors effective as of August 10, 2021 for personal reasons. The resignation was not the result of any disagreement with the Company or any of its affiliates on any matter relating to the Company's operations, policies or practices.


Dick Alario, Chairman of the Board of NOW Inc., stated, "I would like to thank Wayne for all of his contributions to DNOW's success through these past years. Wayne joined the Board prior to our spin-off into an independent, publicly traded company and has contributed significantly to the Company's progress during his tenure as a founding board member and former Chairman of the DNOW Board. We are grateful for his contributions to DNOW and wish him the very best in the future."

NOW Inc. is one of the largest distributors to energy and industrial markets on a worldwide basis, with a legacy of over 150 years. NOW Inc. operates primarily under the DistributionNOW and DNOW brands. Through its network of approximately 195 locations and 2,450 employees worldwide, NOW Inc. offers a comprehensive line of products and solutions for the upstream, midstream and downstream energy and industrial sectors. Our locations provide products and solutions to exploration and production companies, energy transportation companies, refineries, chemical companies, utilities, manufacturers and engineering and construction companies.


Contacts

NOW Inc.
Brad Wise, (281) 823-4006
Vice President of Digital Strategy and Investor Relations

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