Business Wire News

  • Third quarter results improved by $400 million from the second quarter, primarily driven by early stages of demand recovery; excluding identified items, results improved by $2.2 billion
  • On track to exceed reduction targets for 2020 capital and cash expenses; further reductions anticipated in 2021
  • Continued Guyana progress with third major deepwater development approval and two new discoveries

 


IRVING, Texas--(BUSINESS WIRE)--Exxon Mobil Corporation (NYSE:XOM):

 

 

 

 

Second

 

 

 

 

 

Third Quarter

 

Quarter

 

First Nine Months

 

 

2020

2019

 

2020

 

2020

2019

Results Summary

 

 

 

 

 

 

 

(Dollars in millions, except per share data)

 

 

 

 

 

 

 

 

Earnings/(Loss) (U.S. GAAP)

(680)

3,170

 

(1,080)

 

(2,370)

8,650

 

 

 

 

 

 

 

 

 

 

Earnings/(Loss) Per Common Share

 

 

 

 

 

 

 

 

Assuming Dilution

(0.15)

0.75

 

(0.26)

 

(0.55)

2.03

 

 

 

 

 

 

 

 

 

 

Identified Items Per Common Share

 

 

 

 

 

 

 

 

Assuming Dilution

0.03

0.07

 

0.44

 

(0.20)

0.19

 

 

 

 

 

 

 

 

 

 

Earnings/(Loss) Excluding Identified Items

 

 

 

 

 

 

 

 

Per Common Share Assuming Dilution

(0.18)

0.68

 

(0.70)

 

(0.35)

1.84

 

 

 

 

 

 

 

 

 

Capital and Exploration Expenditures

4,133

7,719

 

5,327

 

16,603

22,688

 

Exxon Mobil Corporation today announced an estimated third quarter 2020 loss of $680 million, or $0.15 per share assuming dilution. Third quarter capital and exploration expenditures were $4.1 billion, bringing year-to-date spending to $16.6 billion, more than $6 billion lower than the prior year period.

Oil-equivalent production was 3.7 million barrels per day, up 1 percent from the second quarter of 2020. Production continued to reflect COVID-19 demand impacts, including economic and government mandated curtailments. Excluding entitlement effects, divestments, and government mandates, liquids production increased 2 percent, while natural gas volumes decreased 1 percent.

“We remain confident in our long-term strategy and the fundamentals of our business, and are taking the necessary actions to preserve value while protecting the balance sheet and dividend,” said Darren W. Woods, chairman and chief executive officer. “We are on pace to achieve our 2020 cost-reduction targets and are progressing additional savings next year as we manage through this unprecedented down cycle.”

The company’s preliminary 2021 capital program, which will be reviewed by the board of directors in the fourth quarter, is expected to be in the range of $16 billion to $19 billion, a reduction from the 2020 target of $23 billion announced in April. The company expects to identify further structural efficiencies as it continues previously announced country-by-country reviews.

Third Quarter 2020 Business Highlights

Upstream

  • Average third quarter realizations for crude oil improved significantly, as market prices increased following the second quarter's challenging environment. Natural gas realizations declined, primarily due to a lag in crude-linked LNG contract pricing.
  • Improved market conditions enabled full recovery of production impacted by economic curtailments. Government mandated curtailments negatively impacted third quarter results and are anticipated to continue in the fourth quarter.

Downstream

  • Supply chain optimization, higher product sales due to increased demand, and higher marketing margins more than offset lower industry fuels margins driven by market oversupply and high product inventory levels.
  • Third quarter saw the best reliability and process performance in the last 10 years, while average refinery utilization increased about 6 percent from the second quarter on demand recovery. Refining capacity sparing decreased to about 25 percent.

Chemical

  • Chemical sales volumes were higher than second quarter, benefiting from resilient packaging demand and recovering automotive and construction markets. Chemical margins were negatively impacted by higher feed costs.
  • The company's Corpus Christi chemical complex joint venture is approximately 80 percent complete, with start-up activities expected to commence in the fourth quarter of 2021.

Strengthening the Portfolio

  • ExxonMobil announced that it has funded the Payara development offshore Guyana, following government and regulatory approvals. The third major project in the Stabroek Block will have the capacity to produce up to 220,000 oil-equivalent barrels per day after expected startup in 2024. The company also made its 17th and 18th discoveries at the Yellowtail-2 and Redtail-1 wells, respectively, increasing the estimated recoverable resource to nearly 9 billion oil-equivalent barrels on the Stabroek block.
  • During the quarter, production volumes in the Permian averaged 401,000 oil-equivalent barrels per day which included full recovery of volumes curtailed in the prior quarter. Full year 2020 production is anticipated to be approximately 360,000 oil-equivalent barrels per day. Focus remains on lowering overall development costs through efficiency gains and technology applications. Compared to 2019, drilling and completion costs decreased more than 20 percent, while drilling rates (lateral feet per day) and fracturing rates (stages per day) both increased more than 30 percent. Rig count reductions continue, with 10-15 rigs expected to be operating by year-end.
  • ExxonMobil continues to improve its industry-leading development opportunities, as illustrated by the growth of the recoverable resource base in Guyana to nearly 9 billion barrels of oil equivalent, and other high-value assets in the U.S. Permian Basin, Mozambique, Papua New Guinea and Brazil. Given the high quality opportunities in ExxonMobil's portfolio and the constraints of the current market environment, the corporation is assessing its full portfolio to prioritize assets with the highest value potential within its broad range of available opportunities. This effort includes an ongoing re-assessment of North American dry gas assets currently included in the corporation’s development plan. Depending on the outcome of the planning process, including in particular any significant future changes to the corporation’s current development plans for its dry gas portfolio, long-lived assets with carrying values of approximately $25 billion to $30 billion could be at risk for significant impairment. If these assets remain in our long-term development plan, similar to previous years, it is unlikely the assets would be subject to material impairment. The company expects to complete this assessment in the fourth quarter.

Disciplined Investing and Cost Management

  • ExxonMobil made significant progress during the quarter on previously announced capital and cash operating expense reductions. Planned reductions to the 2020 capital spending program, from $33 billion to $23 billion, are ahead of schedule, reflecting increased efficiencies, lower market prices, and slower project pace. An expected decrease in cash operating expenses of about 15 percent is also ahead of schedule, capturing savings from increased efficiencies, reduced activity, and lower energy costs and volumes.

Advancing Innovative Technologies and Products

  • The company continued to progress work on scaling carbon-capture technologies aimed at reducing emissions. Following 12 months of technical evaluation, ExxonMobil and Global Thermostat announced an expanded joint development agreement to advance and bring to scale breakthrough technology that removes carbon dioxide directly from the atmosphere. ExxonMobil also announced, in collaboration with the University of California, Berkeley and the Lawrence Berkeley National Laboratory, the discovery of a new material that could capture more than 90 percent of carbon dioxide from industrial sources, such as natural gas-fired power plants.
  • ExxonMobil built on the company's longstanding efforts to develop and deliver products that help meet society's energy needs while reducing environmental impacts. These efforts included an agreement with Global Clean Energy Holdings to purchase 2.5 million barrels of renewable diesel per year for five years from a Bakersfield, CA biorefinery starting in 2022. Based on analysis of California Air Resources Board (CARB) data, renewable diesel from various non-petroleum feedstocks can provide life-cycle greenhouse gas emissions reductions of approximately 40 percent to 80 percent compared to petroleum-based diesel.

 

 

Results and Volume Summary

 

 

 

 

 

 

 

 

 

Millions of Dollars

 

3Q

 

3Q

 

 

 

 

(unless noted)

 

2020

 

2019

 

Change

 

Comments

Upstream

 

 

 

 

 

 

 

 

U.S.

 

(681)

 

37

 

-718

 

Lower prices partly offset by reduced expenses

Non-U.S.

 

298

 

2,131

 

-1,833

 

Lower prices and one-time tax items, partly offset by reduced expenses

Total

 

(383)

 

2,168

 

-2,551

 

Prices -2,630, volume -60, expenses +500, other -350, identified item -10

Production (koebd)

 

3,672

 

3,899

 

-227

 

Liquids -106 kbd: higher entitlements, lower downtime/maintenance, and growth, more than offset by government mandates, divestments, and lower demand including economic curtailments

Gas -729 mcfd: higher entitlements more than offset by divestments, higher downtime/maintenance, and decline

Downstream

 

 

 

 

 

 

 

 

U.S.

 

(136)

 

673

 

-809

 

Lower margins on weaker industry refining conditions, partly offset by reduced expenses and improved manufacturing

Non-U.S.

 

(95)

 

557

 

-652

 

Lower margins on weaker industry refining conditions and lower market demand, partly offset by reduced expenses and improved manufacturing

Total

 

(231)

 

1,230

 

-1,461

 

Margins -1,880, market demand -80, expenses +360, other +140

Petroleum Product Sales (kbd)

 

5,023

 

5,504

 

-481

 

 

Chemical

 

 

 

 

 

 

 

 

U.S.

 

357

 

53

 

+304

 

Higher margins and lower expenses; favorable identified item (noncash inventory valuation +29)

Non-U.S.

 

304

 

188

 

+116

 

Lower margins more than offset by lower expenses and favorable identified item (noncash inventory valuation +86)

Total

 

661

 

241

 

+420

 

Margins +70, volumes +30, expenses +170, identified items +120, forex/other +30

Prime Product Sales (kt)

 

6,624

 

6,476

 

+148

 

 

Corporate and financing

 

(727)

 

(469)

 

-258

 

Absence of prior year identified item (-307, tax)

 

Results and Volume Summary

 

 

 

 

 

 

 

 

 

Millions of Dollars

 

3Q

 

2Q

 

 

 

 

(unless noted)

 

2020

 

2020

 

Change

 

Comments

Upstream

 

 

 

 

 

 

 

 

U.S.

 

(681)

 

(1,197)

 

+516

 

Higher liquids prices and lower expenses; unfavorable identified item (noncash inventory valuation -45)

Non-U.S.

 

298

 

(454)

 

+752

 

Higher liquids prices partly offset by lower LNG prices; favorable volume/mix and lower expenses; unfavorable identified item (noncash inventory valuation -179)

Total

 

(383)

 

(1,651)

 

+1,268

 

Prices +1,390, volume +140, expenses +110, identified items -220, other -150

Production (koebd)

 

3,672

 

3,638

 

+34

 

Liquids -20 kbd: higher demand including reduced economic curtailments, more than offset by higher downtime/maintenance, lower entitlements and decline

Gas +326 mcfd: higher entitlements and demand including reduced economic curtailments, partly offset by decline

Downstream

 

 

 

 

 

 

 

 

U.S.

 

(136)

 

(101)

 

-35

 

Higher margins with favorable trading activity more than offsetting weaker industry refining conditions, higher market demand, and improved manufacturing more than offset by unfavorable identified item (noncash inventory valuation -401)

Non-U.S.

 

(95)

 

1,077

 

-1,172

 

Lower margins on weaker industry refining conditions more than offset by higher market demand and lower expenses; unfavorable forex and unfavorable identified item (noncash inventory valuation -1,184)

Total

 

(231)

 

976

 

-1,207

 

Margins +70, market demand +300, expenses +60, identified items -1,580, other -60

Petroleum Product Sales (kbd)

 

5,023

 

4,437

 

+586

 

 

Chemical

 

 

 

 

 

 

 

 

U.S.

 

357

 

171

 

+186

 

Higher volumes; favorable identified item (noncash inventory valuation +58)

Non-U.S.

 

304

 

296

 

+8

 

Lower margins more than offset by higher volumes and lower expenses; unfavorable identified item (noncash inventory valuation -58)

Total

 

661

 

467

 

+194

 

Margins -80, volumes +220, expenses +40, forex/other +10

Prime Product Sales (kt)

 

6,624

 

5,945

 

+679

 

 

Corporate and financing

 

(727)

 

(872)

 

+145

 

Lower financing and corporate costs

 

Results and Volume Summary

 

 

 

 

 

 

 

 

 

Millions of Dollars

 

YTD

 

YTD

 

 

 

 

(unless noted)

 

2020

 

2019

 

Change

 

Comments

Upstream

 

 

 

 

 

 

 

 

U.S.

 

(2,582)

 

468

 

-3,050

 

Lower prices partly offset by reduced expenses; unfavorable identified item (impairment -315)

Non-U.S.

 

1,084

 

7,837

 

-6,753

 

Lower prices and volumes, partly offset by reduced expenses and favorable foreign exchange effects; unfavorable identified items (noncash inventory valuation -61, impairment -41, prior year tax item -487)

Total

 

(1,498)

 

8,305

 

-9,803

 

Prices -9,050, volume -320, expenses +630, identified items -900, other -160

Production (koebd)

 

3,785

 

3,929

 

-144

 

Liquids -12 kbd: growth, higher entitlements, and lower downtime/maintenance, more than offset by divestments, government mandates, and lower demand including economic curtailments

Gas -794 mcfd: higher entitlements and growth, more than offset by divestments and lower demand including economic curtailments

Downstream

 

 

 

 

 

 

 

 

U.S.

 

(338)

 

822

 

-1,160

 

Lower margins on weaker industry refining conditions and reduced market demand partly offset by lower expenses and improved manufacturing

Non-U.S.

 

472

 

603

 

-131

 

Lower margins on weaker industry refining conditions and reduced market demand partly offset by improved manufacturing and lower expenses; unfavorable identified items (-326, mainly impairment)

Total

 

134

 

1,425

 

-1,291

 

Margins -2,260, market demand -520, manufacturing +920, expenses +860, other +40, identified items -330

Petroleum Product Sales (kbd)

 

4,916

 

5,443

 

-527

 

 

Chemical

 

 

 

 

 

 

 

 

U.S.

 

816

 

208

 

+608

 

Higher margins partly offset by lower volumes; lower expenses; unfavorable identified item (-90, impairment)

Non-U.S.

 

456

 

739

 

-283

 

Lower margins and volumes partly offset by lower expenses

Total

 

1,272

 

947

 

+325

 

Margins +190, volumes -220, expenses +380, identified items -90, forex/other +60

Prime Product Sales (kt)

 

18,806

 

19,947

 

-1,141

 

 

Corporate and financing

 

(2,278)

 

(2,027)

 

-251

 

Absence of prior year identified items (-332, tax) and higher financing costs partly offset by lower corporate costs

 

 

 

Cash Flow from Operations and Asset Sales excluding Working Capital

 

Millions of Dollars

 

3Q

 

 

 

 

 

2020

 

Comments

 

Net income (loss) including noncontrolling interests

 

(709)

 

Including ($29) million noncontrolling interests

 

Depreciation

 

4,983

 

 

 

Noncash inventory adjustment

 

(115)

 

Including ($2) million noncontrolling interests

 

Changes in operational working capital

 

863

 

Mainly inventory draw

 

Other

 

(633)

 

Includes changes in deferred income taxes

 

Cash Flow from Operating

 

4,389

 

 

 

Activities (U.S. GAAP)

 

 

 

 

 

Asset sales

 

100

 

 

 

Cash Flow from Operations

 

4,489

 

 

 

and Asset Sales

 

 

 

 

 

Changes in operational working capital

 

(863)

 

 

 

Cash Flow from Operations

 

3,626

 

 

 

and Asset Sales excluding Working Capital

 

 

 

 

 

 

Millions of Dollars

 

YTD

 

 

 

 

 

2020

 

Comments

 

Net income (loss) including noncontrolling interests

 

(2,648)

 

Including ($278) million noncontrolling interests

 

Depreciation

 

15,718

 

Including impairment impacts

 

Noncash inventory adjustment

 

61

 

 

 

Changes in operational working capital

 

(1,539)

 

Mainly unfavorable payables

 

Other

 

(929)

 

Includes changes in deferred income taxes

 

Cash Flow from Operating

 

10,663

 

 

 

Activities (U.S. GAAP)

 

 

 

 

 

Asset sales

 

229

 

 

 

Cash Flow from Operations

 

10,892

 

 

 

and Asset Sales

 

 

 

 

 

Changes in operational working capital

 

1,539

 

 

 

Cash Flow from Operations

 

12,431

 

 

 

and Asset Sales excluding Working Capital

 

 

 

 

 

First Nine Months 2020 Financial Updates

During the first nine months of 2020, Exxon Mobil Corporation purchased 6 million shares of its common stock for the treasury at a gross cost of $305 million. These shares were acquired to offset dilution in conjunction with the company’s benefit plans and programs. The corporation will continue to acquire shares to offset dilution in conjunction with its benefit plans and programs.

ExxonMobil will discuss financial and operating results and other matters during a webcast at 8:30 a.m. Central Time on October 30, 2020. To listen to the event or access an archived replay, please visit www.exxonmobil.com.

Cautionary Statement

Outlooks, projections, goals, targets, descriptions of strategic plans and objectives, and other statements of future events or conditions in this release are forward-looking statements. Actual future results, including financial and operating performance; the impact of the COVID-19 pandemic on results; planned capital and cash operating expense reductions and ability to meet or exceed announced reduction objectives; total capital expenditures and mix; cash flow, dividend and shareholder returns; business and project plans, timing, costs and capacities; resource recoveries and production rates; accounting and financial reporting effects resulting from market developments and ExxonMobil’s responsive actions, including potential impairment charges resulting from any significant changes in current development plan strategy or divestments plans; and the impact of new technologies, including to increase capital efficiency and production and to reduce greenhouse gas emissions and intensity, could differ materially due to a number of factors. These include global or regional changes in the supply and demand for oil, natural gas, petrochemicals, and feedstocks and other market conditions that impact prices and differentials; the outcome of government policies and actions, including actions taken to address COVID-19 and to maintain the functioning of national and global economies and markets; the impact of company actions to protect the health and safety of employees, vendors, customers, and communities; actions of competitors and commercial counterparties; the ability to access short- and long-term debt markets on a timely and affordable basis; the severity, length and ultimate impact of COVID-19 on people and economies; reservoir performance; the outcome of exploration projects and timely completion of development and construction projects; changes in law, taxes, or regulation including environmental regulations, and timely granting of governmental permits; war, trade agreements and patterns, shipping blockades or harassment, and other political or security disturbances; opportunities for and regulatory approval of potential investments or divestments; the actions of competitors; the capture of efficiencies within and between business lines and the ability to maintain near-term cost reductions as ongoing efficiencies while maintaining future competitive positioning; unforeseen technical or operating difficulties; the development and competitiveness of alternative energy and emission reduction technologies; the results of research programs; the ability to bring new technologies to commercial scale on a cost-competitive basis; general economic conditions including the occurrence and duration of economic recessions; and other factors discussed under Item 1A. Risk Factors of ExxonMobil’s 2019 Form 10-K and subsequent Forms 10-Q. Statements regarding plans or potential outcomes for the fourth quarter 2020 and 2021 also remain subject to completion of ExxonMobil's annual corporate planning process and approval of the resulting company plan by the Board of Directors, expected in November 2020. We assume no duty to update these statements as of any future date.

Frequently Used Terms and Non-GAAP Measures

This press release includes cash flow from operations and asset sales. Because of the regular nature of our asset management and divestment program, we believe it is useful for investors to consider proceeds associated with the sales of subsidiaries, property, plant and equipment, and sales and returns of investments together with cash provided by operating activities when evaluating cash available for investment in the business and financing activities. A reconciliation to net cash provided by operating activities for 2020 periods is shown on page 7 and for 2020 and 2019 periods in Attachment V.

This press release also includes cash flow from operations and asset sales excluding working capital. We believe it is useful for investors to consider these numbers in comparing the underlying performance of our business across periods when there are significant period-to-period differences in the amount of changes in working capital. A reconciliation to net cash provided by operating activities for 2020 periods is shown on page 7 and for 2020 and 2019 periods in Attachment V.

This press release also includes earnings/(loss) excluding identified items, which are earnings/(loss) excluding individually significant non-operational events with an absolute corporate total earnings impact of at least $250 million in a given quarter. The earnings/(loss) impact of an identified item for an individual segment may be less than $250 million when the item impacts several segments. We believe it is useful for investors to consider these figures in comparing the underlying performance of our business across periods when one, or both, periods include identified items. A reconciliation to earnings is shown for 2020 and 2019 periods in Attachments II-a and II-b. Corresponding per share amounts are shown on page 1 and in attachment II-a, including a reconciliation to earnings/(loss) per common share – assuming dilution (U.S. GAAP).

This press release also includes total taxes including sales-based taxes. This is a broader indicator of the total tax burden on the corporation’s products and earnings, including certain sales and value-added taxes imposed on and concurrent with revenue-producing transactions with customers and collected on behalf of governmental authorities (“sales-based taxes”). It combines “Income taxes” and “Total other taxes and duties” with sales-based taxes, which are reported net in the income statement. We believe it is useful for the corporation and its investors to understand the total tax burden imposed on the corporation’s products and earnings. A reconciliation to total taxes is shown as part of the Estimated Key Financial and Operating Data in Attachment I.

References to the resource base and other quantities of oil, natural gas or condensate may include estimated amounts that are not yet classified as “proved reserves” under SEC definitions, but which are expected to be ultimately recoverable. The term “project” as used in this release can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports. Further information on ExxonMobil’s frequently used financial and operating measures and other terms including “Cash flow from operations and asset sales”, and “Total taxes including sales-based taxes” is contained under the heading “Frequently Used Terms” available through the “Investors” section of our website at www.exxonmobil.com.

LIFO Inventory

Crude oil, products and merchandise inventories are carried at the lower of current market value or cost, generally determined under the last-in first-out method (LIFO). The corporation’s results for the first quarter of 2020 included an after-tax earnings charge of $2,096 million from writing down the book value of inventories to their market value at the end of the period.


Contacts

ExxonMobil
Media Relations, 972-940-6007


Read full story here

DUBLIN--(BUSINESS WIRE)--The "Global Bio-Based Chemicals Market 2019-2028" report has been added to ResearchAndMarkets.com's offering.


According to this report, the global market for bio-based chemicals is anticipated to surge at a CAGR of 13.64% during the forecast period of 2019-2028.

The favorable government policies towards bio-based products, growth in the use of eco-friendly products like bioplastics, the high market potential of bio-based chemical products, are key factors driving the global market on a growth path. Additionally, the uncertain prices of crude oil and the focus of the automotive manufacturers to reduce carbon footprints are creating numerous opportunities for the bio-based chemicals market's progress.

However, the high production cost of bio-based chemicals causes cost constraints, further limiting the market's expansion.

REGIONAL OUTLOOK

The global bio-based chemicals market covers the Asia-Pacific, North America, Latin America, Europe, and the Middle East and Africa regions.

The Asia-Pacific is anticipated to become the fast-evolving market globally during the years of 2019-2028. The region's market is expected to be primarily driven by the availability of raw materials, industrial production conditions, consumer demand, and policy adoption. Moreover, the growing demand for green products is an essential factor that is augmenting the demand for bio-based chemical products. This further enhances the development of the bio-based chemicals market in the APAC region.

In the region, China is the largest chemical producer, and ranks second largest globally. The country's interest in the biotechnology sector is a major element responsible for industrial development. China has also adopted several actions, setting guidelines to use marginal land and avoiding environmental damage. Numerous countries in the region have also adopted similar policies. Hence, the APAC region is likely to show growth over the projected phase, especially in China, India, and Japan, owing to rapid industrial demand.

COMPETITIVE OUTLOOK

The key companies involved in the market include NatureWorks LLC, Cargill Incorporated, Corbion NV, Mitsui & Co Ltd, Braskem SA, Teijin Limited, Mitsubishi Chemical Corporation, Royal DSM NV, Abengoa SA, Methanex Corporation, PTT Global Chemical Public Company Limited, Novozymes, BASF SE, and Danimer Scientific Inc.

Cargill Incorporated is involved in providing food, agricultural, financial, and industrial products and services. It also produces commodities for food feed and fuel handles. Further, the company's bio-industrial products comprise industrial vegetable oils, epoxy additives, industrial hydrocolloids, and others. The company has its operations in North America, Latin America, Asia-Pacific, Europe, and the Middle East and Africa regions. It is headquartered in the United States.

Market Dynamics

Drivers

  • Favorable Government Policies Towards Bio-Based Products
  • Growing Use of Eco-Friendly Products Like Bioplastics
  • High Market Potential of Bio-Based Chemical Products

Restraints

  • Cost Constraint

Opportunities

  • Volatile/Uncertain Crude Oil Prices
  • Automotive Manufacturers' Focus on Reducing Carbon Footprint

Challenges

  • Lack of Supply Chain Model in Raw Materials and Feedstock

Companies Mentioned

  • Abengoa Sa
  • Basf Se
  • Braskem Sa
  • Cargill Incorporated
  • Corbion Nv
  • Danimer Scientific Inc
  • Methanex Corporation
  • Mitsubishi Chemical Corporation
  • Mitsui & Co Ltd
  • Natureworks LLC
  • Novozymes
  • PTT Global Chemical Public Company Limited
  • Royal Dsm Nv
  • Teijin Limited

For more information about this report visit https://www.researchandmarkets.com/r/htq72b


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
This email address is being protected from spambots. You need JavaScript enabled to view it.

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

 


CALGARY, Alberta--(BUSINESS WIRE)--Imperial Oil Limited (TSX, NYSEAM:IMO):

  • Net earnings of $3 million in the quarter, up significantly from the second quarter
  • Exceeding previously announced capital and expense reduction targets
  • Year-to-date production and manufacturing expenses $813 million below the same period of 2019
  • Full-year 2020 capital expenditures now expected to be about $900 million
  • Cash flow generated from operating activities of $875 million
  • Cash balance of $817 million at the end of the quarter, up $584 million from the second quarter
  • Maintained quarterly dividend at 22 cents per share

 

 

 

     

 

   

 

   

 

   

 

 

   

 

   

 

 

 

 

     

Third quarter

   

 

Nine months

millions of Canadian dollars, unless noted

     

2020

   

2019

   

   

 

2020

   

2019

   

Net income (loss) (U.S. GAAP)

     

3

   

424

   

-421

   

 

(711)

   

1,929

   

-2,640

Net income (loss) per common share, assuming dilution (dollars)

     

-

   

0.56

   

-0.56

   

 

(0.97)

   

2.51

   

-3.48

Capital and exploration expenditures

     

141

   

442

   

-301

   

 

679

   

1,400

   

-721

 

 

Imperial recorded estimated earnings of $3 million in the third quarter of 2020, an increase of $529 million from the prior quarter. Second quarter 2020 results included a favourable impact of $281 million from the reversal of a non-cash inventory revaluation charge. Despite being impacted by substantial turnaround activities in the quarter and a two-week outage of a third-party pipeline supplying diluent to Kearl, improving market conditions and the company’s continuing focus on reducing costs and enhancing efficiency across its operations allowed it to achieve positive earnings in the ongoing challenging environment.

Third quarter results continue to demonstrate the positive impact of Imperial’s ongoing expense and capital discipline and the resiliency of our company,” said Brad Corson, chairman, president and chief executive officer. “The company generated $875 million of cash from operations in the third quarter, further strengthening Imperial’s balance sheet while covering quarterly capital expenditures and dividend payments.”

Production and manufacturing expenses totalled $1,246 million in the third quarter, a reduction of $355 million compared to the third quarter of 2019. Year-to-date production and manufacturing expenses of $4,098 million are $813 million lower than the prior year, enabling Imperial to already surpass the full-year expense reduction target of $500 million. Capital expenditures of $679 million for the first nine months of the year are down more than 50 percent from 2019 levels for the same period and significantly below prior guidance announced in March. “These expense and capital reductions across virtually all aspects of Imperial’s operations demonstrate our ability to rapidly respond to market conditions and capture structural cost improvements without compromising long-term value and production targets,” said Corson.

Upstream production for the third quarter averaged 365,000 gross oil-equivalent barrels per day, compared to 347,000 barrels per day in the second quarter of 2020. During the quarter, the company advanced and extended a planned turnaround at Kearl and experienced a two-week outage of a third-party pipeline that supplies diluent to the site. During the pipeline outage, site maintenance activities were advanced to reduce planned maintenance impacts during the remainder of the year. Despite impacts from the outage, of approximately 41,000 total gross barrels per day in the third quarter, total gross production at Kearl was 189,000 barrels per day, essentially flat compared to the second quarter of 2020. Site production was quickly restored and achieved a new 15-day production record, reaching average gross production rates of approximately 310,000 barrels per day for the remainder of the quarter. As a result of this strong performance, Imperial maintains its Kearl full-year 2020 gross production outlook of 220,000 barrels per day.

Downstream throughput averaged 341,000 barrels per day in the third quarter, with utilization at 81 percent, up from 278,000 barrels per day and 66 percent utilization in the second quarter of 2020. Petroleum product sales for the third quarter increased to 449,000 barrels per day, up from 357,000 barrels per day in the second quarter of 2020 due to improved product demand.

With the completion of key turnaround activities, recent strong asset performance, and expenses running at a significantly reduced rate, Imperial has substantial momentum as we approach the end of the year - we are well-positioned for strong performance in the fourth quarter.” said Corson.

Third quarter highlights

  • Net income of $3 million or $0.00 per share on a diluted basis, compared to $424 million or $0.56 per share in the third quarter of 2019, driven by lower Upstream realizations and lower margins in the Downstream, partially offset by lower production and manufacturing expenses.
  • Cash flow generated from operating activities was $875 million, compared with $1,376 million in the corresponding period of 2019.
  • Capital and exploration expenditures totalled $141 million, compared with $442 million in the third quarter of 2019, due to the company’s ongoing capital reduction efforts. Capital expenditures for 2020 are now expected to be about $900 million, below the company’s earlier guidance of $1.1 billion to $1.2 billion.
  • Dividends paid totalled $162 million or $0.22 per share, compared to $169 million or $0.22 per share in the third quarter of 2019.
  • Production averaged 365,000 gross oil-equivalent barrels per day, compared to 407,000 barrels per day in the same period of 2019. Production was primarily impacted by a third-party pipeline outage and the planned turnaround at Kearl. Production was up from 347,000 gross oil-equivalent barrels per day in the second quarter of 2020.
  • Total gross bitumen production at Kearl averaged 189,000 barrels per day (134,000 barrels Imperial’s share), compared to 224,000 barrels per day (159,000 barrels Imperial’s share) in the third quarter of 2019 due to the advancement and extension of a planned turnaround at the site and a third-party pipeline outage. Production remained relatively flat compared to gross bitumen production of 190,000 barrels per day (135,000 Imperial’s share) in the second quarter of 2020.
  • Gross bitumen production at Cold Lake averaged 131,000 barrels per day, compared to 142,000 barrels per day in the same period of 2019, due mainly to ongoing steam management. Production was up from 123,000 barrels per day in the second quarter of 2020, mainly due to reduced planned maintenance activities.
  • The company’s share of gross production from Syncrude averaged 67,000 barrels per day, essentially in line with 69,000 barrels per day in the same period of 2019. Production was up from 50,000 barrels per day in the second quarter of 2020, driven mainly by improved demand, partly offset by the revised turnaround schedule.
  • Refinery throughput averaged 341,000 barrels per day, compared to 363,000 barrels per day in the third quarter of 2019. Capacity utilization was 81 percent, compared to 86 percent in the third quarter of 2019. Reduced throughput was due to lower market demand, partially offset by reduced planned maintenance. Throughput increased significantly from 278,000 barrels per day in the second quarter of 2020, driven by stronger product demand.
  • Strathcona refinery cogeneration started operation on October 1, subsequent to the end of the quarter. The newly constructed unit provides approximately 41 megawatts of power, which is approximately 75 to 80 percent of the refinery’s needs. It is anticipated to increase energy efficiency for the facility and help reduce provincial greenhouse gas emissions by approximately 112,000 tonnes per year - the equivalent of taking nearly 24,000 vehicles off the road.
  • Petroleum product sales were 449,000 barrels per day, compared to 488,000 barrels per day in the third quarter of 2019, resulting from reduced demand from the COVID-19 pandemic. Petroleum product sales were up from 357,000 barrels per day in the second quarter of 2020 due to improving demand levels.
  • Chemical earnings were $27 million in the quarter, compared to $38 million in the third quarter of 2019, due to lower margins.
  • Imperial celebrates 140 years applying technology and innovation to responsibly develop and deliver Canada’s energy resources. On September 8, 1880, sixteen Ontario oil refiners created the Imperial Oil Company. In the years since, the company has been responsible for Canada’s first service station, the industry’s first petroleum research centre, and gave rise to the NHL’s “three stars” of the game. Today, Imperial is one of Canada’s largest integrated oil companies with extensive production, refining and marketing operations, including a market-leading retail presence with over 2,000 Esso and Mobil branded stations across the country.

Third quarter 2020 vs. third quarter 2019

The company recorded net income of $3 million or $0.00 per share on a diluted basis in the third quarter of 2020, compared to net income of $424 million or $0.56 per share in the same period of 2019.

Upstream recorded a net loss of $74 million in the third quarter of 2020, compared to net income of $209 million in the same period of 2019. Results were negatively impacted by lower realizations of about $490 million and lower volumes of about $110 million. These items were partially offset by lower royalties of about $150 million and lower operating expenses of about $130 million.

West Texas Intermediate (WTI) averaged US$40.93 per barrel in the third quarter of 2020, down from US$56.44 per barrel in the same quarter of 2019. Western Canada Select (WCS) averaged US$31.81 per barrel and US$44.21 per barrel for the same periods. The WTI / WCS differential averaged approximately US$9 per barrel for the third quarter of 2020, compared to around US$12 in the same period of 2019.

The Canadian dollar averaged US$0.75 in the third quarter of 2020, a decrease of US$0.01 from the third quarter of 2019.

Imperial’s average Canadian dollar realizations for bitumen decreased in the quarter, primarily due to a decrease in WCS. Bitumen realizations averaged $35.95 per barrel in the third quarter of 2020, compared to $51.12 per barrel in the third quarter of 2019. The company’s average Canadian dollar realizations for synthetic crude decreased generally in line with WTI, adjusted for changes in exchange rates and transportation costs. Synthetic crude realizations averaged $50.79 per barrel in the third quarter of 2020, compared to $77.27 per barrel in the same period of 2019.

Total gross production of Kearl bitumen averaged 189,000 barrels per day in the third quarter (134,000 barrels Imperial’s share), compared to 224,000 barrels per day (159,000 barrels Imperial’s share) in the third quarter of 2019. Lower production was due to the advancement and extension of a planned turnaround at the site and a third-party pipeline outage

Gross production of Cold Lake bitumen averaged 131,000 barrels per day in the third quarter, compared to 142,000 barrels per day in the same period of 2019. Lower production was mainly due to production timing associated with steam management.

The company's share of gross production from Syncrude averaged 67,000 barrels per day, compared to 69,000 barrels per day in the third quarter of 2019.

Downstream recorded net income of $77 million in the third quarter of 2020, compared to net income of $221 million in the same period of 2019. Results were negatively impacted by lower margins of about $230 million and lower sales volumes of about $70 million. These items were offset by lower operating expenses of about $70 million, and improved reliability of about $50 million, primarily related to the absence of the Sarnia fractionation tower incident which occurred in April 2019.

Refinery throughput averaged 341,000 barrels per day, compared to 363,000 barrels per day in the third quarter of 2019. Capacity utilization was 81 percent, compared to 86 percent in the third quarter of 2019. Reduced throughput was due to lower market demand, partially offset by reduced planned maintenance.

Petroleum product sales were 449,000 barrels per day, compared to 488,000 barrels per day in the third quarter of 2019. Lower petroleum product sales were mainly due to reduced demand from the COVID-19 pandemic.

Chemical net income was $27 million in the third quarter, compared to $38 million in the same quarter of 2019.

Corporate and other expenses were $27 million in the third quarter, compared to $44 million in the same period of 2019.

Cash flow generated from operating activities was $875 million in the third quarter, compared with cash flow generated from operating activities of $1,376 million in the corresponding period in 2019, primarily reflecting lower realizations in the Upstream and lower margins in the Downstream.

Investing activities used net cash of $125 million in the third quarter, compared with $413 million used in the same period of 2019, primarily reflecting lower additions to property, plant and equipment.

Cash used in financing activities was $166 million in the third quarter, compared with $519 million used in the third quarter of 2019. Dividends paid in the third quarter of 2020 were $162 million. The per share dividend paid in the third quarter was $0.22, consistent with $0.22 in the same period of 2019. The company did not purchase shares during the third quarter. In the third quarter of 2019, the company purchased about 9.8 million shares for $343 million, including shares purchased from Exxon Mobil Corporation.

The company’s cash balance was $817 million at September 30, 2020, versus $1,531 million at the end of third quarter 2019.

Nine months highlights

  • Net loss of $711 million, compared to net income of $1,929 million in 2019.
  • Net loss per share on a diluted basis was $0.97, compared to net income per share of $2.51 in 2019.
  • Cash flow generated from operating activities was $482 million, compared to cash flow generated from operating activities of $3,405 million in 2019.
  • Capital and exploration expenditures totalled $679 million, compared to $1,400 million in 2019.
  • Gross oil-equivalent production averaged 377,000 barrels per day, compared to 398,000 barrels per day in 2019.
  • Refinery throughput averaged 334,000 barrels per day, compared to 363,000 barrels per day in 2019.
  • Petroleum product sales were 423,000 barrels per day, compared to 481,000 barrels per day in 2019.
  • Per share dividends declared during the year totalled $0.66, up from $0.63 per share in 2019.
  • Returned $762 million to shareholders through dividends and share purchases.

Nine months 2020 vs. nine months 2019

Net loss in the first nine months of 2020 was $711 million, or $0.97 per share on a diluted basis, compared to net income of $1,929 million or $2.51 per share in the first nine months of 2019. Current year results include a favourable impact of about $90 million after-tax, associated with the Canada Emergency Wage Subsidy (CEWS), which includes Imperial’s proportionate share of a joint venture. Year-to-date 2019 results included a favourable impact of $662 million associated with the Alberta corporate income tax rate decrease.

Upstream recorded a net loss of $1,126 million for the first nine months of the year, compared to net income of $1,252 million in the same period of 2019. Results were negatively impacted by lower realizations of about $2,330 million, absence of a favourable impact of $689 million associated with the Alberta corporate income tax rate decrease in 2019, and lower volumes of about $300 million. These items were partially offset by lower royalties of about $460 million, lower operating expenses of about $320 million, favourable foreign exchange impacts of about $120 million and about $60 million associated with the CEWS received by the company which includes Imperial's proportionate share of a joint venture.

West Texas Intermediate averaged US$38.10 per barrel in the first nine months of 2020, down from US$57.10 per barrel in the same period of 2019. Western Canada Select averaged US$24.72 per barrel and US$45.32 per barrel for the same periods. The WTI / WCS differential widened to average approximately US$13 per barrel in the first nine months of 2020, from around US$12 per barrel in the same period of 2019.

The Canadian dollar averaged US$0.74 in the first nine months of 2020, a decrease of US$0.01 from the same period in 2019.

Imperial's average Canadian dollar realizations for bitumen decreased in the first nine months of 2020 primarily due to a decrease in WCS. Bitumen realizations averaged $22.24 per barrel, compared to $52.44 per barrel from the same period in 2019. The company's average Canadian dollar realizations for synthetic crude decreased generally in line with WTI in the first nine months of 2020, adjusted for changes in exchange rates and transportation costs. Synthetic crude realizations averaged $49.06 per barrel, compared to $74.59 per barrel from the same period in 2019.

Total gross production of Kearl bitumen averaged 202,000 barrels per day in the first nine months of 2020 (143,000 barrels Imperial's share), down from 204,000 barrels per day (145,000 barrels Imperial's share) in the same period of 2019. Lower production was mainly due to the balancing of near-term production with demand through the advancement and extension of planned turnaround activities and a third-party pipeline outage, partially offset by the addition of supplemental crushing facilities in 2020.

Gross production of Cold Lake bitumen averaged 131,000 barrels per day in the first nine months of 2020, compared to 141,000 barrels per day in the same period of 2019. Lower production was mainly due to production timing associated with steam management.

During the first nine months of 2020, the company's share of gross production from Syncrude averaged 63,000 barrels per day, compared to 76,000 barrels per day in the same period of 2019. Lower production was mainly due to the balancing of near term production with demand.

Downstream net income was $447 million, compared to $736 million in the same period of 2019. Results were negatively impacted by lower margins of about $460 million, and lower sales volumes of about $220 million. These items were offset by improved reliability of $200 million, primarily due to the absence of the Sarnia fractionation tower incident which occurred in April 2019, lower operating expenses of $140 million and lower turnaround costs of $70 million primarily related to reduced turnaround activity in the current year.

Refinery throughput averaged 334,000 barrels per day in the first nine months of 2020, compared to 363,000 barrels per day in the same period of 2019. Capacity utilization was 79 percent, compared to 86 percent in the same period of 2019. Lower throughput was primarily due to reduced demand from the COVID-19 pandemic, partially offset by the absence of impacts from the Sarnia fractionation tower incident which occurred in April 2019.

Petroleum product sales were 423,000 barrels per day in the first nine months of 2020, compared to 481,000 barrels per day in the same period of 2019. Lower petroleum product sales were mainly due to reduced demand resulting from the COVID-19 pandemic.

Chemical net income was $55 million in the first nine months of 2020, compared to $110 million in the same period of 2019. Results were negatively impacted by lower margins of about $60 million.

Corporate and other expenses were $87 million in the first nine months of 2020, compared to $169 million in the same period of 2019, mainly due to lower share-based compensation costs.

Cash flow generated from operating activities was $482 million in the first nine months of 2020, compared with cash flow generated from operating activities of $3,405 million in the same period of 2019, primarily reflecting lower realizations in the Upstream and unfavourable working capital impacts.

Investing activities used net cash of $605 million in the first nine months of 2020, compared with $1,305 million used in the same period of 2019, primarily reflecting lower additions to property, plant and equipment.

Cash used in financing activities was $778 million in the first nine months of 2020, compared with $1,557 million used in the same period of 2019. Dividends paid in the first nine months of 2020 were $488 million. The per share dividend paid in the first nine months of 2020 was $0.66, up from $0.60 in the same period of 2019. During the first nine months of 2020, the company, under its share purchase program, purchased about 9.8 million shares for $274 million. In the first nine months of 2019, the company purchased about 29.6 million shares for $1,072 million.

Key financial and operating data follow.

Current economic conditions

In 2020, the balance of supply and demand for petroleum and petrochemical products experienced two significant disruptive effects. On the demand side, the COVID-19 pandemic spread rapidly across Canada and the world resulting in substantial reductions in consumer and business activity and significantly reduced local and global demand for crude oil, natural gas, and petroleum products. This reduction in demand coincided with announcements of increased production in certain key oil-producing countries which led to increases in inventory levels and sharp declines in prices for crude oil, natural gas, and petroleum products. Throughout the second and third quarters, the effects of COVID-19 continued to have a negative impact on the world’s major economies and demand for the company’s products, and market conditions continue to reflect considerable uncertainty. In Canada, consumer and business activity has exhibited some degree of recovery, but remains lower when compared to prior periods as a result of the pandemic. Despite actions taken by key oil-producing countries to reduce oversupply in the near-term, and improved credit market conditions providing sufficient liquidity to credit-worthy companies, the unfavourable economic impacts appear increasingly likely to persist to some extent well into 2021.

In late March, the company announced significant reductions in 2020 capital and operating expense spending plans. Capital and exploration expenditures in 2020 are now expected to be about $900 million, below the company’s earlier guidance of $1.1 billion to $1.2 billion. In addition, year-to-date production and manufacturing expenses are $813 million lower than the prior year, enabling the company to already surpass the full-year expense reduction target of $500 million.

The effect of COVID-19 and the current business environment on supply and demand patterns has negatively impacted Imperial’s financial and operating results in the first nine months of 2020. Industry conditions seen thus far in 2020 have led to lower realized prices for the company’s products and have resulted in substantially lower earnings and operating cash flow throughout 2020 in comparison to 2019. In response to these conditions, the company operated certain assets at reduced rates in the second and third quarters of 2020. The company advanced and extended planned maintenance and turnaround activities throughout the second and third quarters in an effort to reduce on-site staffing levels and to better balance production with demand. The turnaround activities at Kearl and Syncrude were completed in the third quarter. Refinery utilization rates and petroleum product sales were reduced through the second quarter of 2020, but improved in the third quarter due to improved product demands.


Contacts

Investor relations
(587) 476-4743

Media relations
(587) 476-7010


Read full story here

MINNEAPOLIS--(BUSINESS WIRE)--Xcel Energy Inc. (NASDAQ: XEL) announced today that it has submitted a redemption notice to the trustee to redeem all of its outstanding 2.60% Senior Notes, Series due March 15, 2022 (Notes) on December 1, 2020, (Redemption Date). The redemption price is equal to the greater of the outstanding principal amount of the Notes and a make-whole premium, which will be calculated three business days prior to the Redemption Date in accordance with the terms of the Notes and related indenture, plus accrued and unpaid interest to the Redemption Date. The aggregate principal amount of Notes currently outstanding is $300,000,000.


This press release does not constitute a notice of redemption of the Notes. Holders of the Notes should refer to the notice of redemption to be delivered to the registered holders of the Notes by Wells Fargo Bank, N.A., the trustee with respect to the Notes.

This press release is not an offer to sell or a solicitation of an offer to buy any securities.

Forward Looking Statements

This release contains forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements include the company’s plan to redeem the Notes. Actual results may vary materially. Factors that could cause actual results to differ materially include, but are not limited to: general economic conditions, including the availability of credit, actions of rating agencies and their impact on capital expenditures; business conditions in the energy industry: competitive factors; unusual weather; effects of geopolitical events; including war and acts of terrorism; changes in federal or state legislation; regulation; actions of regulatory bodies; and other risk factors listed from time to time by Xcel Energy in its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2019 (including the items described under Factors Affecting Results of Operations) and the other risk factors listed from time to time by Xcel Energy Inc. in reports filed with the SEC.

About Xcel Energy Inc.

Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on Twitter and Facebook.


Contacts

Xcel Energy
Financial analysts:
Paul Johnson, 612-215-4535
Vice President, Investor Relations
or
News media inquiries:
Xcel Energy Media Relations, 612-215-5300

MIDLAND, Texas--(BUSINESS WIRE)--Ring Energy, Inc. (NYSE American: REI) (“Company”) (“Ring”) stated today that the prospective buyer was unable to consummate the closing of the Company’s Delaware Basin (“Delaware”) assets located in Culberson and Reeves Counties, Texas (“Property”).


Mr. Paul McKinney, Ring’s Chief Executive Officer and Chairman of the Board of Directors, commented, “We are very disappointed that the buyer was unable to complete this important and highly anticipated transaction, but believe we have, after six (6) amendments to the original purchase and sale agreement, in good faith, provided them every opportunity to close the transaction. However, Ring has received $5.5 million in non-refundable deposits which have been used to reduce the outstanding balance on our senior credit facility. While the Delaware is not in our core areas of the Central Basin Platform or the Northwest Shelf, these assets have additional development opportunities that could ultimately lead to more value for the Ring Shareholders.”

About Ring Energy, Inc.

Ring Energy, Inc. is an oil and gas exploration, development and production company with current operations in Texas and New Mexico.
www.ringenergy.com

Safe Harbor Statement

This release contains forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve a wide variety of risks and uncertainties, and include, without limitations, statements with respect to the Company’s strategy and prospects. Such statements are subject to certain risks and uncertainties which are disclosed in the Company’s reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2019, its Form 10Q for the quarter ended June 30, 2020 and its other filings with the SEC. Readers and investors are cautioned that the Company’s actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the Company’s ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, and the conduct of business by the Company, and other factors that may be more fully described in additional documents set forth by the Company.


Contacts

Bill Parsons
K M Financial, Inc.
(702) 489-4447

New Time - October 29, 2020 – 5:30 P.M. ET

ALEXANDRIA, Va.--(BUSINESS WIRE)--VSE Corporation (NASDAQ: VSEC, “VSE”, or the “Company”), a leading provider of distribution and repair services for land, sea and air transportation assets in the public and private sectors, today announced that it will conduct a conference call today, October 29, 2020 at 5:30 P.M. ET, to review the Company’s third quarter 2020 financial results, discuss recent events and conduct a question-and-answer session.


As previously disclosed, VSE postponed its quarterly call, initially scheduled for earlier today, due to a hurricane-related system-wide outage at a conference call vendor. Conference call systems at the vendor have since been restored.

A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of VSE’s website at ir.vsecorp.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software.

To participate in the live teleconference:

Domestic Live: 855-327-6837
International Live: 631-891-4304

To listen to a replay of the teleconference, which will be available through November 12, 2020:

Domestic Replay: 844-512-2921
International Replay: 412-317-6671
Conference ID: 10011750

ABOUT VSE CORPORATION

VSE is a leading provider of aftermarket distribution and repair services for land, sea and air transportation assets for government and commercial markets. Core services include maintenance, repair and overhaul (MRO) services, parts distribution, supply chain management and logistics, engineering support, and consulting and training services for global commercial, federal, military and defense customers. VSE also provides information technology and energy consulting services. For additional information regarding VSE’s services and products, visit us at www.vsecorp.com.

FORWARD LOOKING STATEMENTS

This release contains statements that, to the extent they are not recitations of historical fact, constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. All such statements are intended to be subject to the safe harbor protection provided by applicable securities laws. For discussions identifying some important factors that could cause actual VSE results to differ materially from those anticipated in the forward-looking statements in this news release, see VSE’s public filings with the Securities and Exchange Commission. The forward-looking statements included herein are only made as of the date hereof, and VSE specifically disclaims any obligation to update these statements in the future.


Contacts

INVESTOR RELATIONS CONTACT: Noel Ryan | Phone: 720.778.2415

 

CALGARY, Alberta--(BUSINESS WIRE)--Imperial Oil Limited (TSE: IMO, NYSE American: IMO) today declared a quarterly dividend of 22 cents per share on the outstanding common shares of the company, payable on January 1, 2021, to shareholders of record at the close of business on December 3, 2020.


This fourth quarter 2020 dividend compares with the third quarter 2020 dividend of 22 cents per share.

Imperial has a long and successful history of growth and financial stability in Canada as a leading member of the petroleum industry. The company has paid dividends every year for over a century and has increased its annual dividend payment for 26 consecutive years.

Source: Imperial

After more than a century, Imperial continues to be an industry leader in applying technology and innovation to responsibly develop Canada’s energy resources. As Canada’s largest petroleum refiner, a major producer of crude oil, a key petrochemical producer and a leading fuels marketer from coast to coast, our company remains committed to high standards across all areas of our business.


Contacts

Investor relations
(587) 476-4743

Media relations
(587) 476-7010

BAAR, Switzerland--(BUSINESS WIRE)--Blackstone Resources AG (SWX: BLS) Blackstone Resources AG CEO Ulrich Ernst comments today about Blackstone Resources vision and strategy and which has been confirmed by the newly released Tesla’s battery plans of Elon Musk.

Thoughts on Tesla's plans to make its own batteries

Elon Musk has acknowledged the importance of both having access to the next generation of battery technology and the raw materials needed to produce these batteries. The demand for electric cars is likely to quickly outstrip the amount of battery materials that these vehicles require, even with new technologies which aim to reduce the amount to of battery materials needed. What we saw on that day was a lag between what Tesla would like to achieve and what battery technology currently permits.

This constraint could limit the growth of the EV market if not dealt with and this would have a negative knock-on effect on Tesla. By contrast, it will also reward companies that are involved in either producing the next generation of batteries or supplying the materials needed to make them. Tesla hinted on the day that its vision was to become more vertically integrated and have better control over its supply chains in the future and might even invest in producing battery metals such as lithium.

This is exactly what Blackstone Resources strategy is and has been pursued for the last five years. In fact, the company has built it business model to accommodate this exact type of market once it emerges.

We believe that the key to being successful in the battery market is to have a presence from the battery metal to the battery cell.

Blackstone Resources started as a business by building a diversify portfolio of battery metal mining interests that covered both exploration and production projects. Two years ago, the company also launched its battery technology division and set up a subsidiary Blackstone Technology GmbH with its new 6000m2 facility in Saxony, Germany to gain access to where auto manufactures are based.

Blackstone Resources is therefore one of the first vertically integrated battery company in the world.

Tesla needs to improve the battery technology it currently uses in its vehicles

There is now a huge range of different competing companies vying to bring to market the next generation of battery technology. These companies are likely to beat Tesla when it comes to providing the next generation of technologies, which includes solid-state batteries and new advanced manufacturing techniques. This should be an issue for Tesla, which has significant access to capital and could quickly get up to speed through a targeted acquisition.

At Blackstone Resources we have already developed and tested our 3 D printed batteries that offer a significant improvement in terms of battery density, recharge cycles and costs. Furthermore, we have also developed a technology to mass-produce these batteries in 2021 in any shape or form using our own proprietary battery printing technology.

Battery metals will remain an essential component for the foreseeable future

Elon Musk believes that the next generation of batteries will use significantly less battery metals, such as cobalt but much more of nickel and lithium and so on. In reality, demand for these metals is likely to pick up significantly if Tesla and other auto manufactures want to realistically electrify their vehicle fleets.

While it is true that better battery technology can save battery metals significantly but the increase in demand will need more cobalt, nickel, manganese, graphite and lithium since the sheer demand for new electric vehicles will still vastly outstrip supply. The reason is that now large auto manufacturers are also starting to roll out their first electric vehicles and many have plans to completely electrify their entire range of cars. There will be for sure bottle necks and metal price increases.

Blackstone is aligned with Tesla on their vision

Despite the differences that we have with Tesla and its view of the world, Blackstone Resources shares much of its vision. Tesla's acknowledgement that supply chain risk poses a threat to its business model is a clear indication on the foresight Blackstone Resources had in building a vertically integrated battery company. It is Blackstone who started this vision years ago.

Overall, we are glad to see the progress that Tesla as a company has made. For us, it is an indication of what is to come, which will benefit Blackstone Resources. We look forward therefore, to the future developments that are on their way.

About Blackstone Resources AG

Blackstone Resources AG is a Swiss Holding Company, with its legal domicile in Baar, Kanton Zug, and is concentrating on the battery technology and battery metals market. In addition, it sets up, develops and manages refineries used for gold and battery metals. It offers direct exposure to the battery technology and battery metals revolution that is being driven by the demand of electric vehicles that need vast quantities of these metals. These include cobalt, manganese, graphite, nickel, copper and lithium. In addition, Blackstone Resources has started a research program on new battery technologies on solid state batteries and its production process.

The disclaimer is an integral part of this press release. Please ensure you consult the disclaimer for a full understanding of the content within: http://www.blackstoneresources.ch/investors/disclaimer/


Contacts

For more information please visit www.blackstoneresources.ch or contact:

Blackstone Resources AG
Mrs. Doris Suta
Blegistrasse 5
CH-6340 Baar
Switzerland

T: +41 41 449 61 63
F: +41 41 449 61 69
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Investor Relations
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Media Enquires
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ST. CROIX, U.S. Virgin Islands--(BUSINESS WIRE)--Limetree Bay Ventures, LLC (“Limetree Bay” or the “Company”), a world-class refinery, energy storage and logistics hub, today announced that it has appointed Jeffrey Rinker as its Chief Executive Officer, effective November 11, 2020. Mr. Rinker will lead the Company’s combined refinery and terminal organizations. He succeeds Brian Lever, who will remain with the Company through November 30, 2020 to ensure a smooth transition in senior leadership.

We are thrilled to welcome Jeff to Limetree Bay as CEO,” said R. Blair Thomas, Chairman of the Company’s Board of Directors and CEO of EIG Global Energy Partners, Limetree Bay’s controlling shareholder. “Limetree Bay made significant progress in 2020 and we are confident that Jeff’s deep industry experience and strong track record of delivering commercial results and creating shareholder value make him the ideal person to lead the Company during its next chapter of commercial operation.”

I am honored by the opportunity to join Limetree Bay as CEO,” said Mr. Rinker. “Limetree Bay is an exciting project that is well-positioned to succeed given its recent operating momentum, strategic location and world-class partners and facilities. I look forward to getting started and working with Limetree Bay’s talented team to drive further growth for the Company and bring value to all our stakeholders.”

On behalf of the entire Board, I’d like to thank Brian for his hard work and tremendous contributions to the growth and development of Limetree Bay during his tenure,” Mr. Thomas continued. “Brian was brought on two years ago to lead the refinery restart project and its integration with Limetree Bay’s world-class terminal facilities and, as we approached completion of the restart project, Brian and the Board agreed that it was a natural time to transition leadership to a long-term CEO. We are thankful for Brian’s efforts and wish him the best in his retirement.”

Mr. Rinker is a well-respected executive with more than 30 years of industry experience leading large, international energy businesses. He most recently served as Executive Vice President, Downstream and Midstream for Husky Energy, responsible for leadership of Husky's Downstream business, including refining, upgrading, marketing, trading and delivering improved safety, reliability and profitability. Prior to joining Husky Energy in 2017, Mr. Rinker held various roles of increasing responsibilities at OMV Group and BP plc. Mr. Rinker earned a B.S. in Chemical Engineering with honors from Carnegie Mellon University.

About Limetree Bay Ventures

Limetree Bay Ventures, LLC is a large-scale energy complex strategically located in St. Croix, U.S. Virgin Islands. The complex consists of Limetree Bay Refining, a refinery with peak processing capacity of 650 thousand barrels of petroleum feedstock per day, and Limetree Bay Terminal, a 34-million-barrel crude and petroleum products storage and marine terminal facility serving the refinery and third-party customers.

About EIG Global Energy Partners

EIG Global Energy Partners ("EIG"), is a leading institutional investor to the global energy sector with $21.9 billion under management as of September 30, 2020. EIG specializes in private investments in energy and energy-related infrastructure on a global basis. During its 38-year history, EIG has committed over $34.4 billion to the energy sector through more than 360 projects or companies in 36 countries on six continents. EIG's clients include many of the leading pension plans, insurance companies, endowments, foundations and sovereign wealth funds in the U.S., Asia and Europe. EIG is headquartered in Washington, D.C. with offices in Houston, London, Sydney, Rio de Janeiro, Hong Kong and Seoul. For additional information, please visit EIG's website at www.eigpartners.com.


Contacts

Sard Verbinnen & Co.
Kelly Kimberly / Brandon Messina
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(212) 687-8080

Titan, a leading cold storage owner and operator will handle the operations, marketing, and sales of the PLRS, a state-of-the-art facility & port terminal operations

LOS ANGELES--(BUSINESS WIRE)--Titan Cold Storage, LLC, a leading provider of refrigerated and cold storage solutions for the middle market, has announced a new strategic partnership with Port Logistics Refrigerated Service (PLRS), a cold storage and port terminal operations facility, located on Hooker’s Point at the Port of Tampa Bay. PLRS Powered By Titan Cold is ideally positioned to serve Central Florida and the Southeast, expansion capabilities into the Midwest by truck and CSX rail service.

PLRS is Tampa Bay’s newest, 135,000-sq.ft. facility, designed for handling large volumes of imported and exported cargo, specializing in fresh produce, proteins, and other perishable food and beverage commodities. Regional imports and exports are currently being shipped to and from Mexico, Costa Rica, and other Central American countries as well as domestic U.S. ports such as Brownsville, Texas. The facility’s temperature-controlled warehouse contains separate refrigerated / frozen rooms containing more than 6,300 gravity-fed pallet positions, 152 reefer plugs, and a fumigation building. PLRS Powered By Titan Cold is a full-service, flexible, and independent self-contained port terminal operation situated on 13.7 acres along BERTH 219 hosting two (2) high-speed Gottwald cranes and its own Radiation Portal Monitor.

Titan Cold’s well-seasoned staff are customer service driven offering the best service in the industry with rates below the major cold storage players. The facility has an on-site customs inspection area, dedicated refrigerated fumigation services, and customs lab, with the ability to expand to add ripening rooms and repacking services. It is conveniently located at Berth 219 which has a channel depth of 41’ feet and can simultaneously accommodate two large ships and barges while offering quick access to CSX railways and the I-75/275 and I-4 transportation corridor. The Tampa/Orlando I-4 Corridor is the state’s largest and fastest growing market, as well as being Florida’s distribution hub for the grocery/food and beverage sector. In addition, other Southeastern markets such as Atlanta and Charlotte are accessible by truck with one day runs, improving supply chain logistics for the Southeast United States.


Contacts

Nadene Gallagher
310.991.0230
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LONDON--(BUSINESS WIRE)--#CherrySeedOilMarket--The cherry seed oil market is poised to grow by USD 244.04 million during 2020-2024, progressing at a CAGR of about 4% during the forecast period.



Technavio suggests three forecast scenarios (optimistic, probable, and pessimistic) considering the impact of COVID-19. Download Free Sample Report on COVID-19 Recovery Analysis

The report on the cherry seed oil market provides a holistic update, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis.

The report offers an up-to-date analysis regarding the current global market scenario, the latest trends and drivers, and the overall market environment. The market is driven by demand for cherry seed oil in aromatherapy.

The cherry seed oil market analysis includes product segment and geography landscape. This study identifies the increasing demand for organic cherry seed oil as one of the prime reasons driving the cherry seed oil market growth during the next few years.

This report presents a detailed picture of the market by the way of study, synthesis, and summation of data from multiple sources by an analysis of key parameters

The Cherry Seed Oil Market covers the following areas:

Cherry Seed Oil Market Sizing

Cherry Seed Oil Market Forecast

Cherry Seed Oil Market Analysis

Companies Mentioned

  • Akoma International UK Ltd.
  • AvoGlow Pty. Ltd.
  • Biocosmethic, Biopurus Ltd.
  • CHATEAU Cosmetics botanical beauty
  • Interfat SAU
  • Moons Harvest Bath & Body Shop
  • Plant Guru Inc.
  • Podor Oils and Vinegars
  • Ziani Organic Oils.

     

Key Topics Covered:

PART 01: EXECUTIVE SUMMARY

PART 02: SCOPE OF THE REPORT

PART 03: MARKET LANDSCAPE

  • Market ecosystem
  • Market characteristics
  • Value Chain Analysis
  • Market segmentation analysis

PART 04: MARKET SIZING

  • Market definition
  • Market sizing 2019
  • Market Outlook
  • Market size and forecast 2019-2024

PART 05: FIVE FORCES ANALYSIS

  • Bargaining power of buyers
  • Bargaining power of suppliers
  • Threat of new entrants
  • Threat of substitutes
  • Threat of rivalry
  • Market condition

PART 06: MARKET SEGMENTATION BY PRODUCT

  • Market segmentation by product
  • Comparison by product
  • Conventional cherry seed oil - Market size and forecast 2019-2024
  • Organic cherry seed oil - Market size and forecast 2019-2024
  • Market opportunity by product

PART 07: CUSTOMER LANDSCAPE

PART 08: GEOGRAPHIC LANDSCAPE

  • Geographic segmentation
  • Geographic comparison
  • EMEA - Market size and forecast 2019-2024
  • Americas - Market size and forecast 2019-2024
  • APAC - Market size and forecast 2019-2024
  • Key leading countries
  • Market opportunity

PART 09: DECISION FRAMEWORK

PART 10: DRIVERS AND CHALLENGES

  • Market drivers
  • Market challenges

PART 11: MARKET TRENDS

  • Increasing demand for organic cherry seed oil
  • Expanding retail space
  • Increasing popularity of plant-based food products

PART 12: VENDOR LANDSCAPE

  • Overview
  • Landscape disruption
  • Competitive scenario

PART 13: VENDOR ANALYSIS

  • Vendors covered
  • Vendor classification
  • Market positioning of vendors
  • Akoma International UK Ltd.
  • AvoGlow Pty. Ltd.
  • Biocosmethic
  • Biopurus Ltd.
  • CHATEAU Cosmetics botanical beauty
  • Interfat SAU
  • Moons Harvest Bath & Body Shop
  • Plant Guru Inc.
  • Podor Oils and Vinegars
  • Ziani Organic Oils

PART 14: APPENDIX

  • Research methodology
  • List of abbreviations
  • Definition of market positioning of vendors

PART 15: EXPLORE TECHNAVIO

About Us

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.


Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
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Website: www.technavio.com/

SAN FRANCISCO--(BUSINESS WIRE)--CAI International, Inc. (“CAI” or the “Company”) (NYSE: CAI), one of the world’s leading transportation finance companies, today reported results for the third quarter of 2020.


Highlights

  • Net income from continuing operations attributable to CAI common stockholders for the third quarter of 2020 was $14.8 million, or $0.83 per fully diluted share.
  • Adjusted net income from continuing operations attributable to CAI common stockholders1 for the third quarter of 2020 was $18.4 million, or $1.04 per fully diluted share.
  • Container lease revenue for the third quarter of 2020 was $73.9 million, compared to $69.4 million in the second quarter of 2020.
  • CAI’s Board of Directors declared a cash dividend of $0.25 per common share payable on December 24, 2020 to shareholders of record as of December 9, 2020.
  • Average utilization for CAI’s owned container fleet during the third quarter of 2020 was 98.4%, compared to 98.0% for the second quarter of 2020. Current utilization is 99.2%.
  • During the quarter, the Company disposed of its logistics business and continues to explore opportunities to divest of its railcar leasing business.
  • In September 2020, the Company issued $742.7 million of asset-backed notes at a fixed rate averaging 2.3%. The proceeds have been used to refinance $709.4 million of asset-backed debt with an average interest rate of 4.1%.

Financial and Operating Highlights

   Three Months Ended 
  September 30,
2020
  June 30,
2020
  September 30,
2019
           
Container lease revenue

 $

            73,890

 

 

 $

            69,443

 

 

 $

            75,535

 

           
Continuing operations GAAP          
Net income (loss) attributable to common stockholders

 $

            14,758

 

 

 $

            13,749

 

 

 $

            (7,350

)

Net income per share - diluted

 $

               0.83

 

 

 $

               0.78

 

 

 $

              (0.42

)

           
Continuing operations non-GAAP 1          
Adjusted net income attributable to common stockholders

 $

            18,399

 

 

 $

            14,869

 

 

 $

            12,027

 

Adjusted net income per share - diluted

 $

               1.04

 

 

 $

               0.84

 

 

 $

               0.69

 

           
Return on equity (continuing operations) 2

 

12.5

%

 

 

10.2

%

 

 

8.3

%

           
Total container fleet size in CEUs at end of period

 

           1,732,547

 

 

 

           1,709,697

 

 

 

           1,737,958

 

Container fleet utilization at end of period

 

99.0

%

 

 

97.8

%

 

 

98.4

%

1 Refer to the “Reconciliation of GAAP Amounts to Non-GAAP Amounts” and “Use of Non-GAAP Financial Measures” set forth below.
2 Refer to the “Calculation of Return on Equity” set forth below.

Additional information on CAI's results, as well as comments on market trends, is available in a presentation posted today on the "Investors" section of CAI's website, www.capps.com.

Timothy Page, Interim President and Chief Executive Officer of CAI, commented, “We are very pleased with our results during the third quarter. Adjusted net income from continuing operations attributable to CAI common stockholders was $18.4 million an increase of 24% compared to the second quarter, as the Company benefited from very strong container demand.

“During the third quarter and continuing into the fourth quarter, global containerized trade volumes were ahead of the same period last year. Many shipping lines had significantly reduced the acquisition of new containers last year as a result of uncertainties surrounding the US/China trade disputes and then again in the first half of this year because of uncertainties as result of the global pandemic. Consequently, as trade volumes increased, many shipping lines were in the position of having to add container capacity well in excess of normal growth and fleet attrition. We expect this outsized demand for containers to continue well into next year.

“As global shipping volumes increased, we were able to quickly respond to our customers’ needs for additional containers. CAI’s growth in lease revenue during the quarter benefited from the lease-out of approximately $130 million of new and sale leaseback containers. Customer demand for leasing mid-life and older containers has also been strong. We have a robust forward order book and expect to take delivery of $110 million of new containers during the fourth quarter, with an additional $160 million of new containers scheduled for delivery early next year; in total $400 million of new investment since the end of the second quarter, which represents approximately 17% of our second quarter container book value. Virtually all of this new investment is supported by committed long term leases with attractive mid-teen plus returns.

“The Company continues to maintain its exceptional industry leading utilization. Average utilization in the quarter was 98.4%. Utilization was 99.1% at quarter end and is currently 99.2%. Our continuing strong performance in utilization reflects the long-term nature of our contracts, our focus on tight contract redelivery terms and ongoing fleet management; all of which underscore the long-term committed nature of our cash flow.

“Our average cash interest rate in the second quarter was 2.52%. Approximately 82% of the Company’s debt is now fixed rate. During the quarter, we issued $742.7 million of new ABS notes which carry a cash interest rate of 2.27%. These notes were primarily used to refinance $709.4 million of higher interest rate ABS notes. As a result of this refinancing we expect our average cash interest rate across all of our debt facilities will be in the range of 2.0% in the fourth quarter. The refinancing of the ABS notes is estimated to result in a $11.4 million reduction in cash interest expense in 2021.”

Mr. Page concluded, “The revenue generated from our strong order book combined with our industry-leading utilization, a robust re-sale market and lower interest costs should all result in an expected double-digit growth in net income from continuing operations in the fourth quarter and a significant increase in ROE, setting the stage for a strong beginning to 2021.”

CAI International, Inc.
Consolidated Balance Sheets
(In thousands, except share information)
(UNAUDITED)
   
 

September 30,

 

December 31,

 

 

2020

 

 

 

2019

 

Assets  
Current assets  
Cash  

$

15,516

 

$

19,870

 

Current portion of restricted cash  

 

316,915

 

 

-

 

Cash held by variable interest entities  

 

26,784

 

 

26,594

 

Accounts receivable, net of allowance for doubtful accounts of $418 and $7,671  
at September 30, 2020 and December 31, 2019, respectively  

 

65,574

 

 

72,984

 

Current portion of net investment in finance leases  

 

75,240

 

 

71,274

 

Prepaid expenses and other current assets  

 

15,746

 

 

9,606

 

Assets held for sale  

 

-

 

 

37,781

 

Total current assets  

 

515,775

 

 

238,109

 

Restricted cash  

 

23,232

 

 

26,775

 

Rental equipment, net of accumulated depreciation of $676,330 and $620,990  
at September 30, 2020 and December 31, 2019, respectively  

 

2,018,142

 

 

2,102,839

 

Net investment in finance leases  

 

455,168

 

 

496,094

 

Financing receivable  

 

51,384

 

 

30,693

 

Other non-current assets  

 

5,493

 

 

7,255

 

Total assets  

$

3,069,194

 

$

2,901,765

 

   
Liabilities and Stockholders' Equity  
Current liabilities  
Accounts payable  

$

3,868

 

$

4,534

 

Accrued expenses and other current liabilities  

 

26,423

 

 

25,206

 

Unearned revenue  

 

6,851

 

 

6,405

 

Current portion of debt  

 

502,013

 

 

218,094

 

Rental equipment payable  

 

89,634

 

 

25,137

 

Liabilities held for sale  

 

-

 

 

8,752

 

Total current liabilities  

 

628,789

 

 

288,128

 

Debt  

 

1,706,170

 

 

1,880,122

 

Derivative instruments  

 

1,820

 

 

-

 

Deferred income tax liability  

 

29,626

 

 

35,376

 

Other non-current liabilities  

 

3,759

 

 

4,899

 

Total liabilities  

 

2,370,164

 

 

2,208,525

 

   
Stockholders' equity  
Preferred stock, par value $.0001 per share; authorized 10,000,000  
8.50% Series A fixed-to-floating rate cumulative redeemable perpetual preferred  
stock, issued and outstanding 2,199,610 shares, at liquidation preference  

 

54,990

 

 

54,990

 

8.50% Series B fixed-to-floating rate cumulative redeemable perpetual preferred  
stock, issued and outstanding 1,955,000 shares, at liquidation preference  

 

48,875

 

 

48,875

 

Common stock: par value $.0001 per share; authorized 84,000,000 shares; issued and outstanding  
17,742,443 and 17,479,127 shares at September 30, 2020 and December 31, 2019, respectively  

 

2

 

 

2

 

Additional paid-in capital  

 

106,990

 

 

102,709

 

Accumulated other comprehensive loss  

 

(7,560

)

 

(6,630

)

Retained earnings  

 

495,733

 

 

493,294

 

Total stockholders' equity  

 

699,030

 

 

693,240

 

Total liabilities and stockholders' equity  

$

3,069,194

 

$

2,901,765

 

   
CAI International, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(UNAUDITED)
   
 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

Revenue  
Container lease revenue  

$

73,890

 

$

75,535

 

$

212,446

 

$

225,332

 

Rail lease revenue  

 

5,162

 

 

5,871

 

 

17,247

 

 

20,214

 

Total revenue  

 

79,052

 

 

81,406

 

 

229,693

 

 

245,546

 

   
Operating expenses  
Depreciation of rental equipment  

 

30,428

 

 

28,030

 

 

86,322

 

 

89,629

 

Impairment of rental equipment  

 

-

 

 

25,632

 

 

19,724

 

 

32,955

 

Storage, handling and other expenses  

 

6,686

 

 

8,125

 

 

18,908

 

 

18,444

 

Gain on sale of rental equipment  

 

(2,729

)

 

(3,168

)

 

(6,451

)

 

(12,265

)

Administrative expenses  

 

6,388

 

 

9,278

 

 

21,441

 

 

26,501

 

Total operating expenses  

 

40,773

 

 

67,897

 

 

139,944

 

 

155,264

 

   
Operating income  

 

38,279

 

 

13,509

 

 

89,749

 

 

90,282

 

   
Other expenses  
Net interest expense  

 

16,630

 

 

23,102

 

 

54,604

 

 

70,165

 

Write-off of debt issuance costs  

 

3,641

 

 

-

 

 

3,641

 

 

-

 

Other (income) expense  

 

(306

)

 

380

 

 

(157

)

 

537

 

Total other expenses  

 

19,965

 

 

23,482

 

 

58,088

 

 

70,702

 

   
Income (loss) before income taxes  

 

18,314

 

 

(9,973

)

 

31,661

 

 

19,580

 

Income tax expense (benefit)  

 

1,349

 

 

(4,830

)

 

(594

)

 

(2,098

)

   
Income (loss) from continuing operations  

 

16,965

 

 

(5,143

)

 

32,255

 

 

21,678

 

Loss from discontinued operations, net of income taxes  

 

(1,522

)

 

(636

)

 

(18,768

)

 

(3,389

)

Net income (loss)  

 

15,443

 

 

(5,779

)

 

13,487

 

 

18,289

 

Preferred stock dividends  

 

2,207

 

 

2,207

 

 

6,621

 

 

6,621

 

Net income (loss) attributable to CAI common stockholders  

$

13,236

 

$

(7,986

)

$

6,866

 

$

11,668

 

   
Amounts attributable to CAI common stockholders  
Net income (loss) from continuing operations  

$

14,758

 

$

(7,350

)

$

25,634

 

$

15,057

 

Net loss from discontinued operations  

 

(1,522

)

 

(636

)

 

(18,768

)

 

(3,389

)

Net income (loss) attributable to CAI common stockholders  

$

13,236

 

$

(7,986

)

$

6,866

 

$

11,668

 

   
Net income (loss) per share attributable to  
CAI common stockholders  
Basic  
Continuing operations  

$

0.84

 

$

(0.42

)

$

1.47

 

$

0.84

 

Discontinued operations  

 

(0.09

)

 

(0.04

)

 

(1.08

)

 

(0.19

)

Total basic  

$

0.75

 

$

(0.46

)

$

0.39

 

$

0.65

 

Diluted  
Continuing operations  

$

0.83

 

$

(0.42

)

$

1.45

 

$

0.83

 

Discontinued operations  

 

(0.08

)

 

(0.04

)

 

(1.06

)

 

(0.19

)

Total diluted  

$

0.75

 

$

(0.46

)

$

0.39

 

$

0.64

 

   
Weighted average shares outstanding  
Basic  

 

17,570

 

 

17,330

 

 

17,491

 

 

17,850

 

Diluted  

 

17,706

 

 

17,330

 

 

17,664

 

 

18,122

 

CAI International, Inc.
Consolidated Statements of Cash Flows
(In thousands, except per share data)
(UNAUDITED)
   
 

Nine Months Ended
September 30,

 

 

2020

 

 

 

2019

 

Cash flows from operating activities  
Net income  

$

13,487

 

$

18,289

 

Loss from discontinued operations, net of income taxes  

 

(18,768

)

 

(3,389

)

Income from continuing operations  

 

32,255

 

 

21,678

 

Adjustments to reconcile income from continuing operations to net cash provided by operating activities:  
Depreciation  

 

86,919

 

 

89,664

 

Impairment of rental equipment  

 

19,724

 

 

32,955

 

Amortization and write-off of debt issuance costs  

 

6,839

 

 

3,579

 

Stock-based compensation expense  

 

1,416

 

 

2,202

 

Unrealized (gain) loss on foreign exchange  

 

(229

)

 

345

 

Gain on sale of rental equipment  

 

(6,451

)

 

(12,265

)

Deferred income taxes  

 

(5,021

)

 

(4,796

)

Bad debt (recovery) expense  

 

(6,236

)

 

1,319

 

Changes in other operating assets and liabilities:  
Accounts receivable  

 

11,774

 

 

4,562

 

Prepaid expenses and other assets  

 

(106

)

 

(40

)

Net investment in finance leases  

 

54,660

 

 

48,653

 

Accounts payable, accrued expenses and other liabilities  

 

214

 

 

3,541

 

Unearned revenue  

 

(437

)

 

(1,772

)

Net cash provided by operating activities of continuing operations  

 

195,321

 

 

189,625

 

Net cash provided by (used in) operating activities of discontinued operations  

 

2,883

 

 

(1,423

)

Net cash provided by operating activities  

 

198,204

 

 

188,202

 

Cash flows from investing activities  
Purchase of rental equipment  

 

(48,782

)

 

(335,849

)

Purchase of financing receivable  

 

(30,846

)

 

(37,139

)

Proceeds from sale of rental equipment  

 

87,007

 

 

259,002

 

Receipt of principal payments from financing receivable  

 

4,052

 

 

1,825

 

Purchase of furniture, fixtures and equipment  

 

(441

)

 

(1,416

)

Net cash provided by (used in) investing activities of continuing operations  

 

10,990

 

 

(113,577

)

Net cash provided by (used in) investing activities of discontinued operations  

 

5,614

 

 

(305

)

Net cash provided by (used in) investing activities  

 

16,604

 

 

(113,882

)

Cash flows from financing activities  
Proceeds from debt  

 

1,025,527

 

 

581,582

 

Principal payments on debt  

 

(915,157

)

 

(614,006

)

Debt issuance costs  

 

(8,304

)

 

(768

)

Proceeds from issuance of common stock  

 

116

 

 

-

 

Repurchase of common stock  

 

-

 

 

(34,118

)

Dividends paid to common stockholders  

 

(4,427

)

 

-

 

Dividends paid to preferred stockholders  

 

(6,621

)

 

(6,621

)

Exercise of stock options  

 

3,281

 

 

532

 

Net cash provided by (used in) financing activities of continuing operations  

 

94,415

 

 

(73,399

)

Net cash used in financing activities of discontinued operations  

 

-

 

 

-

 

Net cash provided by (used in) financing activities  

 

94,415

 

 

(73,399

)

Effect on cash of foreign currency translation  

 

(15

)

 

(874

)

Net increase in cash and restricted cash  

 

309,208

 

 

47

 

Cash and restricted cash at beginning of the period  

 

73,239

 

 

75,983

 

Cash and restricted cash at end of the period  

$

382,447

 

$

76,030

 

   
CAI International, Inc.
Fleet Data
(UNAUDITED)
 

As of September 30,

2020

 

2019

 
Owned container fleet in TEUs

1,622,102

 

1,623,588

 

Managed container fleet in TEUs

60,085

 

72,462

 

Total container fleet in TEUs

1,682,187

 

1,696,050

 

 
Owned container fleet in CEUs

1,657,067

 

1,649,465

 

Managed container fleet in CEUs

75,480

 

88,493

 

Total container fleet in CEUs

1,732,547

 

1,737,958

 

 
Owned railcar fleet in units

5,039

 

5,504

 

 
 

Three Months Ended

 

Nine Months Ended

September 30,

 

September 30,

2020

 

2019

 

2020

 

2019

Average Utilization
Container fleet utilization in CEUs

98.4

%

98.4

%

98.2

%

98.7

%

Owned container fleet utilization in CEUs

98.4

%

98.6

%

98.3

%

98.7

%

Railcar fleet utilization in units - excluding new units not yet leased

87.8

%

85.3

%

87.5

%

88.1

%

Railcar fleet utilization in units - including new units not yet leased

85.1

%

82.1

%

84.6

%

84.6

%

 

As of September 30,

2020

 

2019

Period Ending Utilization
Container fleet utilization in CEUs

99.0

%

98.4

%

Owned container fleet utilization in CEUs

99.1

%

98.5

%

Railcar fleet utilization in units - excluding new units not yet leased

88.7

%

85.3

%

Railcar fleet utilization in units - including new units not yet leased

86.1

%

82.1

%

Utilization of containers is computed by dividing the total units on lease in CEUs (cost equivalent units), by the total units in our fleet in CEUs.
The total container fleet excludes new units not yet leased and off-hire units designated for sale.
Utilization of railcars is computed by dividing the total number of railcars on lease by the total number of railcars in our fleet.
The impact on utilization of including new units not yet leased in the total railcar fleet has been included in the table above.
 
CEU is a ratio used to convert the actual number of containers in our fleet to a figure based on the relative purchase prices of our
various equipment types to that of a standard 20 foot dry van container. For example, the CEU ratio for a standard 40 foot dry van
container is 1.6, and a 40 foot high cube container is 1.7.
CAI International, Inc.
Reconciliation of GAAP Amounts to Non-GAAP Amounts
(In thousands, except per share data)
(UNAUDITED)
 

Three Months Ended

September 30,

 

June 30,

 

September 30,

 

2020

 

 

 

2020

 

 

 

2019

 

 
Amounts attributable to CAI common stockholders
 
Net income (loss) from continuing operations

$

14,758

 

$

13,749

 

$

(7,350

)

Write-off of debt issuance costs

 

3,641

 

 

432

 

 

-

 

Impairment of rental equipment

 

-

 

 

557

 

 

25,362

 

Tax effect of impairment of rental equipment

 

-

 

 

131

 

 

(5,985

)

Adjusted net income from continuing operations

$

18,399

 

$

14,869

 

$

12,027

 

 
Diluted net income (loss) per share from continuing operations

$

0.83

 

$

0.78

 

$

(0.42

)

 
Diluted adjusted net income per share from continuing operations

$

1.04

 

$

0.84

 

$

0.69

 

 
Weighted average number of common shares used to calculate
Diluted net income (loss) per share from continuing operations

 

17,706

 

 

17,601

 

 

17,330

 

Diluted adjusted net income per share from continuing operations

 

17,706

 

 

17,601

 

 

17,525

 

 
 
CAI International, Inc.
Calculation of Return on Equity
(In thousands)
(UNAUDITED)
 

Three Months Ended

September 30,

 

June 30,

 

September 30,

 

2020

 

 

 

2020

 

 

 

2019

 

 
Adjusted net income from continuing operations

$

18,399

 

$

14,869

 

$

12,027

 

Annualized adjusted net income from continuing operations

 

73,596

 

 

59,478

 

 

48,106

 

 
Average shareholders' equity 1

$

589,384

 

$

584,942

 

$

580,867

 

 
Return on equity

 

12.5

%

 

10.2

%

 

8.3

%

1 Average shareholders' equity was calculated using the quarter's beginning and ending shareholders' equity, excluding preferred stock.

Conference Call

A conference call to discuss the financial results for the third quarter of 2020 will be held on Thursday, October 29, 2020 at 5:00 p.m. ET. The dial-in number for the teleconference is 1-855-327-6837; outside of the U.S., call 1-631-891-4304. The call may be accessed live over the internet (listen only) under the “Investors” section of CAI’s website, www.capps.com, by selecting “Q3 2020 Earnings Conference Call.” A webcast replay will be available for 30 days on the “Investors” section of our website.

Earnings Presentation

A presentation summarizing our third quarter 2020 results is available on the “Investors” section of our website, www.capps.com.

Use of Non-GAAP Financial Measures

This press release contains non-GAAP financial measures, and includes net income and earnings per share adjusted to reflect the impact of a non-recurring write-off of debt issuance costs, the impairment of rental equipment and the tax effects of such impairment. This press release also refers to return on equity, which is calculated using the non-GAAP financial measure, adjusted net income. These measures are not in accordance with, or an alternative for, generally accepted accounting principles, or GAAP, and may be different from non-GAAP financial measures used by other companies. We believe the presentation of non-GAAP financial measures provides useful information to management and investors regarding various financial and business trends relating to our financial condition and results of operations, and that when GAAP financial measures are viewed in conjunction with non-GAAP financial measures, investors are provided with a more meaningful understanding of our ongoing operating performance. Management utilizes return on equity in evaluating how much profit the Company generates on the shareholders’ equity in the Company and believes it is useful for comparing the profitability of companies in the same industry. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for GAAP financial measures. To the extent this release contains historical non-GAAP financial measures, we have also provided a reconciliation to the corresponding GAAP financial measures for comparative purposes.

About CAI International, Inc.

CAI is one of the world’s leading transportation finance companies. As of September 30, 2020, CAI operated a worldwide fleet of approximately 1.7 million CEUs of containers, and owned a fleet of 5,039 railcars that it leases within North America. CAI operates through 14 offices located in 12 countries including the United States.

Forward-Looking Statements

This press release contains forward-looking statements regarding future events and the future performance of CAI, including but not limited to: management’s business outlook for the container leasing business, management’s decision to divest of CAI’s non-core businesses and management's outlook for growth of CAI’s leasing investments. These statements and others herein are forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and involve risks and uncertainties that could cause actual results of operations and other performance measures to differ materially from current expectations including, but not limited to: utilization rates, expected economic conditions, expected growth of international trade, availability of credit on commercially favorable terms or at all, customer demand, container investment levels, container prices, lease rates, increased competition, volatility in exchange rates, growth in world trade and world container trade, the ability of CAI to convert letters of intent with its customers to binding contracts, potential to sell CAI’s securities to the public and others.

CAI refers you to the documents that it has filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2019, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. These documents contain additional important factors that could cause actual results to differ from current expectations and from forward-looking statements contained in this press release. Furthermore, CAI is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements contained in this press release whether as a result of new information, future events or otherwise, unless required by law.


Contacts

Tim Page, Interim President and Chief Executive Officer
(415) 788-0100
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  • Waste Management’s Acquisition of Advanced Disposal Combines Dedicated and Experienced Teams with Shared Commitments to Safety, Outstanding Customer Service and Operational Excellence
  • Waste Management Continues to be Confident in the Long-Term Value from the Acquisition and Expects Annual Cost and Capital Expenditure Synergies to Exceed $100 Million

HOUSTON--(BUSINESS WIRE)--Waste Management (NYSE: WM) announced today that it completed its acquisition of all outstanding shares of Advanced Disposal on October 30, following the receipt of required regulatory approvals. The previously announced purchase price of $30.30 per share in cash represents a total enterprise value of $4.6 billion when including approximately $1.8 billion of Advanced Disposal’s net debt. Advanced Disposal stock will no longer be traded on the NYSE.


This acquisition grows Waste Management’s footprint and allows the Company to deliver unparalleled access to differentiated, sustainable waste management and recycling services to approximately 3 million new commercial, industrial and residential customers primarily located in 16 states in the eastern half of the United States.

“We are excited to reach the finish line on this compelling acquisition, and I would like to welcome the Advanced Disposal team members to the WM family,” said Jim Fish, President and Chief Executive Officer of Waste Management. “The acquisition expands Waste Management’s reach and positions us for significant earnings and cash flow growth. The hard work our integration teams have done has prepared us to provide a seamless transition for employees and customers.”

Immediately following the completion of the Advanced Disposal acquisition, Waste Management and Advanced Disposal completed the sale to GFL Environmental of all of the assets required by the U.S. Department of Justice to be divested in connection with the Advanced Disposal acquisition.

Waste Management funded the transaction using a combination of credit facilities and commercial paper. Waste Management expects to maintain a strong balance sheet and solid investment-grade credit profile with leverage ratios well within the financial covenants of its credit facilities.

“With integration getting underway, the team is focused on a strong finish to 2020,” Fish concluded. “We look forward to providing our 2021 outlook for the combined organization when we announce fourth quarter and full-year earnings.”

ABOUT WASTE MANAGEMENT

Waste Management, based in Houston, Texas, is the leading provider of comprehensive waste management environmental services in North America. Through its subsidiaries, Waste Management provides collection, transfer, disposal services, and recycling and resource recovery. It is also a leading developer, operator and owner of landfill gas-to-energy facilities in the United States. Waste Management’s customers include residential, commercial, industrial, and municipal customers throughout North America. To learn more information about Waste Management, visit www.wm.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the U.S. federal securities laws about Waste Management, including but not limited to all statements about integration of the acquisition and all outcomes of the acquisition, including future operations, synergies, cost savings, and impact on earnings, cash flow, revenue, return on capital, shareholder returns, strength of the balance sheet and credit ratings; future capital allocation; and future leverage ratio, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “likely,” “outlook,” “forecast,” “preliminary,” “would,” “could,” “should,” “can,” “will,” “project,” “intend,” “plan,” “goal,” “guidance,” “target,” “continue,” “sustain, “ “synergy,” “on track,” “believe,” “seek,” “estimate,” “anticipate,” “may,” “possible,” “assume,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Potential investors, stockholders, and other readers should view these statements with caution and should not place undue reliance on such statements. They are based on the facts and circumstances known to Waste Management as of the date the statements are made. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those set forth in such forward-looking statements, including but not limited to, general economic and capital markets conditions; public health risk and other impacts of COVID-19 or similar pandemic conditions, including increased costs, social and commercial disruption, service reductions and other adverse effects on business, financial condition, results of operations and cash flows; legal proceedings that may be instituted related to the acquisition; unexpected costs, charges or expenses; failure to successfully integrate the acquisition, realize anticipated synergies or obtain the results anticipated; and other risks and uncertainties described in Waste Management’s filings with the SEC, including Part I, Item 1A of its most recently filed Annual Report on Form 10-K and subsequent reports on Form 10-Q, which are incorporated herein by reference, and in other documents that Waste Management shall file or furnish with the SEC. Except to the extent required by law, Waste Management does not assume any obligation to update any forward-looking statement, including financial estimates and forecasts, after it has been made, whether as a result of new information, future events, circumstances or developments or otherwise.


Contacts

Waste Management

Web site
https://www.wm.com

Analysts
Ed Egl
713.265.1656
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Media
Janette Micelli
602.579.6152
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SEATTLE--(BUSINESS WIRE)--Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its third quarter ended September 30, 2020.


  • Operating cash flow increased 56% to $55.3 billion for the trailing twelve months, compared with $35.3 billion for the trailing twelve months ended September 30, 2019.
  • Free cash flow increased to $29.5 billion for the trailing twelve months, compared with $23.5 billion for the trailing twelve months ended September 30, 2019.
  • Free cash flow less principal repayments of finance leases and financing obligations increased to $18.4 billion for the trailing twelve months, compared with $14.6 billion for the trailing twelve months ended September 30, 2019.
  • Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations increased to $17.9 billion for the trailing twelve months, compared with $10.5 billion for the trailing twelve months ended September 30, 2019.
  • Common shares outstanding plus shares underlying stock-based awards totaled 518 million on September 30, 2020, compared with 511 million one year ago.
  • Net sales increased 37% to $96.1 billion in the third quarter, compared with $70.0 billion in third quarter 2019. Excluding the $691 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 36% compared with third quarter 2019.
  • Operating income increased to $6.2 billion in the third quarter, compared with operating income of $3.2 billion in third quarter 2019.
  • Net income increased to $6.3 billion in the third quarter, or $12.37 per diluted share, compared with net income of $2.1 billion, or $4.23 per diluted share, in third quarter 2019.

Two years ago, we increased Amazon’s minimum wage to $15 for all full-time, part-time, temporary, and seasonal employees across the U.S. and challenged other large employers to do the same. Best Buy and Target have stepped up, and we hope other large employers will also make the jump to $15. Now would be a great time,” said Jeff Bezos, Amazon founder and CEO. “Offering jobs with industry-leading pay and great healthcare, including to entry-level and front-line employees, is even more meaningful in a time like this, and we’re proud to have created over 400,000 jobs this year alone. We’re seeing more customers than ever shopping early for their holiday gifts, which is just one of the signs that this is going to be an unprecedented holiday season. Big thank you to our employees and selling partners around the world who’ve been busy getting ready to deliver for customers this holiday.”

Highlights

Investing in Jobs and Employees

  • Amazon announced that it is creating hundreds of thousands of new jobs around the world for people at all skill levels and stages of their careers, including:
    • 100,000 new permanent jobs with industry-leading pay of at least $15 per hour, benefits starting on day one, sign-on bonuses of up to $1,000 in select U.S. cities, and access to company-subsidized upskilling programs like Career Choice. This hiring was part of Amazon opening 100 new operations buildings across North America.
    • 100,000 new seasonal jobs with Amazon Air, logistics, fulfillment centers, sortation centers, and global specialty fulfillment teams in the U.S. and Canada.
    • 10,000 corporate and technology jobs in Bellevue, WA as part of the continued expansion of Amazon’s Puget Sound headquarters, and 7,000 new jobs at Tech Hubs in Dallas, Detroit, Denver, New York, Phoenix, San Diego, Toronto, and Vancouver.
    • 10,000 new permanent jobs in the UK, bringing the total in the country to 40,000; and thousands of new permanent jobs in Germany, bringing the total in the country to 16,000.
    • In India, Amazon announced the expansion of its operations network with 10 new fulfillment centers, 5 new sortation centers, nearly 200 delivery stations, and over 100,000 seasonal jobs to help meet customer demand during the festive season. The company also launched an all-women delivery station in the state of Gujarat – the second of its kind in the country and part of the company’s ongoing efforts to provide more opportunities for women to build careers at Amazon.
  • More than 320,000 people attended Amazon’s Career Day, a virtual event that provided insights, tips, and advice to job seekers on how to build their career and apply for more than 130,000 corporate, technology, and operations positions available at Amazon in North America. Amazon received a record 384,000 applications for roles in Canada and the U.S. within a week of announcing the event.
  • Amazon has promoted more than 35,000 people across its U.S. operations network this year, and more than 30,000 people have participated in Career Choice, an innovative program to upskill employees interested in pursuing a future outside Amazon. Over half of the tens of thousands of program participants this year are from underrepresented minority groups.
  • Amazon Studios and Howard University announced they will partner for a second year of the Howard Entertainment Program, which aims to further diversify the entertainment industry by creating a pipeline of underrepresented talent, including Black students, through internships and other educational opportunities.
  • Amazon continues to ramp up its in-house COVID-19 testing program to keep front-line employees safe, with capacity reaching 50,000 tests a day across 650 sites by November.
  • Amazon was named to multiple leading rankings and awards, including: #2 on the Forbes World’s Best Employers, a survey of workers on satisfaction with their employers’ COVID-19 response, talent development, gender equality, social responsibility, and more; #3 on the Axios Harris Poll 100, Amazon’s eighth year in a row in the top 3 of this brand reputation survey; and #4 on Morning Consult’s Most Loved Brands in America, a measure of favorability, trust, and community impact.

Supporting Communities

  • Amazon announced plans to add more than 3,000 new schools to Amazon Future Engineer, a four-part program that funds high-quality, age-appropriate computer science curriculum for students and professional development for teachers. With the addition of these new schools, Amazon Future Engineer will expand to reach over 550,000 K-12 students across more than 5,000 elementary, middle, and high schools in underserved communities.
  • Amazon donated more than one million emergency aid items, including water, generators, air filters, food, KN95 masks, and cleaning supplies, to community partners providing disaster relief to people affected by wildfires in California, Oregon, and Washington, as well as Hurricane Laura along the Gulf Coast.
  • Amid the COVID-19 pandemic, Amazon expanded its Right Now Needs Fund in the Puget Sound region and launched a new fund focused on Northern Virginia. The $3.5 million donation will provide students located near Amazon’s two headquarters with immediate access to food, shelter, clothing, school supplies, and more to help eliminate barriers to learning and ensure students can focus on education throughout the school year.
  • To support communities disproportionately impacted by COVID-19, Amazon announced it will make millions of dollars in product and monetary donations to more than a thousand charities this holiday season in Australia, Canada, China, France, Germany, India, Italy, Japan, Singapore, Spain, the UK, the U.S., and more.

Protecting the Planet

  • Mercedes-Benz, Best Buy, McKinstry, Real Betis, Schneider Electric, and Siemens signed The Climate Pledge, a commitment co-founded by Amazon and Global Optimism to achieve net-zero carbon by 2040, a decade ahead of the Paris Agreement.
  • CarbonCure, Pachama, Redwood Materials, Rivian, and Turntide Technologies were the first companies to receive investments from Amazon as part of The Climate Pledge Fund, a $2 billion fund that invests in visionary companies whose product and service solutions will facilitate the transition to a zero-carbon economy.
  • In Europe, Amazon announced it will add 1,800 electric delivery vehicles from Mercedes-Benz Vans to its delivery fleet—the largest order of electric vehicles from Mercedes-Benz Vans to date.
  • Amazon unveiled its first custom electric delivery vehicle, designed and built in partnership with Rivian. The new vehicles will make their first deliveries to Amazon customers in 2021. As early as 2022, there will be 10,000 of these vehicles on roads in the U.S. and EU, and all 100,000 vehicles are expected to be on the road by 2030.
  • In the U.S. and EU, Amazon launched Climate Pledge Friendly, a new program that identifies products with one or more of 19 different sustainability certifications, making it easy for customers to discover and shop for more sustainable products in Amazon’s store. Products identified as Climate Pledge Friendly meet standards that help preserve the natural world, such as reducing the carbon footprint of shipments to customers. Amazon also announced Compact by Design, a new sustainability certification for products with a more efficient design that leads to carbon emission reductions by requiring less packaging or less frequent purchases by customers.
  • Amazon announced its most sustainable devices ever. The new Echo and Fire TV devices include 100% post-consumer recycled fabric, 100% recycled die-cast aluminum, and 30-50% post-consumer recycled plastic, and new features like Low Power Mode and an energy dashboard will enable customers to understand and reduce the energy consumption of their devices.
  • Amazon is building new wind and solar farms to produce clean energy equivalent to the electricity used by every customer’s Echo device. The company has said it will continue building new renewable energy projects until it accounts for the energy consumption of all Amazon devices.
  • Amazon announced its first operational wind farm outside the U.S. in Bäckhammar, Sweden. The wind farm is expected to deliver 280,000-megawatt hours of clean energy annually into the Swedish grid.

Empowering Small and Medium-Sized Businesses

  • Amazon hosted Amazon Accelerate, its largest-ever U.S. event to share best practices with small businesses on how to serve customers in Amazon’s store and grow their businesses. At the virtual event, Amazon also announced plans to invest billions of dollars to help small and medium-sized businesses succeed, and it outlined plans to onboard an additional 100,000 small and medium-sized businesses in the next year.
  • Amazon hosted its second annual Ignite Digital Festival for more than 1,500 Delivery Service Partners (DSP). The virtual event showcased product and technology innovations to help them succeed, including over 250 logistics program and product changes, from routing updates and navigation improvements on the drivers’ delivery app to state-of-the-art safety technology adjustments. Since the DSP program launched over two years ago, there are now more than 1,700 owners across Canada, Germany, Spain, the UK, and the U.S. who have created over 100,000 jobs in their communities, delivered more than 2.2 billion packages worldwide, and generated over $5 billion in revenue for their small businesses.
  • Amazon India hosted Stand for Handmade, a 10-week program to help boost sales for Indian artisans, weavers, and women entrepreneurs by waiving selling fees and promoting local, handmade products to customers. Participating Karigar (artisans) and Saheli (women) sellers more than doubled their sales during this period, and more than 200 new sellers joined the Karigar program.
  • Amazon Australia launched Amazon Launchpad Innovation Grants, an initiative to celebrate innovation by Australian start-ups, entrepreneurs, and small and medium-sized businesses. The program will offer grant packages to organizations with innovative products that support Australians through the pandemic.

Shopping and Entertainment

  • In 19 countries, Amazon’s Prime Day kicked-off the holiday shopping season on October 13-14 with the two biggest days ever for small and medium businesses in Amazon’s stores. Third-party sellers—most of which are small and medium-sized businesses—surpassed $3.5 billion in sales on Prime Day—a nearly 60% year-over-year increase, growing even more than Amazon’s retail business. Prime members saved more than $1.4 billion, taking advantage of deep discounts and incredible deals over the two-day event.
  • Amazon India kicked off the Great Indian Festival on October 17, a month-long celebration with deals across popular categories such as smartphones, appliances, televisions, and consumer electronics. Sellers and brand partners experienced the biggest two days of sales in the festival’s history. Amazon India also hosted Prime Day on August 6-7, during which twice as many customers became Prime members compared to the previous year.
  • Amazon launched Prime in Turkey, bringing the total number of countries with Prime to 20. Prime in Turkey includes free, fast delivery on thousands of items across 20 categories, as well as access to Prime Video, Prime Gaming, and exclusive deals on Prime Day and throughout the year.
  • Amazon.se launched in Sweden, offering customers more than 150 million products to choose from with everyday low prices and free delivery for eligible orders above SEK 229.
  • Amazon announced that Project Zero—a tool enabling brands to remove potential counterfeit products in Amazon’s store—is available in 17 countries around the world, with Australia, Brazil, the Netherlands, Saudi Arabia, Singapore, Turkey, and the UAE recently added to the program. Project Zero combines Amazon’s advanced technology and machine learning with the sophisticated knowledge that brands have of their own intellectual property to drive counterfeits to zero.
  • Amazon launched Amazon One, a fast, convenient, contactless way for people to use their palm to enter, identify, and pay. The highly-secure service uses custom-built algorithms and hardware to create a person’s unique palm signature. Amazon One is currently available in two Amazon Go stores in Seattle, with plans to expand to additional Amazon stores.
  • The first Amazon Fresh grocery stores opened in Woodland Hills and Irvine, CA. Amazon Fresh offers a seamless grocery shopping experience whether customers are shopping in-store or online, consistently low prices, a wide assortment of national brands and freshly prepared foods made daily, and free same-day delivery and pick-up for Prime members. The stores also offer new ways to make grocery shopping more convenient, including the Amazon Dash Cart, which enables customers to skip the checkout line, and new Alexa features to help customers manage their shopping lists and better navigate aisles.
  • Amazon Fashion announced the launch of Luxury Stores, a new shopping experience for eligible U.S. Prime members, offering established and emerging luxury fashion and beauty brands.
  • The Amazon Studios global original movies slate continues to grow, with additions such as Sacha Baron Cohen’s political satire Borat Subsequent Moviefilm, which recently launched globally on Prime Video, as well as Tom Clancy’s Without Remorse, starring Michael B. Jordan, slated to launch in 2021.
  • Amazon premiered several new and returning Amazon Original series, including The Boys, Breathe into the Shadows, Bandish Bandits, Mirzapur, and Putham Pudhu Kaalai in India, Peep Time and Documental S8 in Japan, Pan y Circo in Mexico, and All or Nothing: Tottenham Hotspur in the UK.
  • Amazon Prime Video announced that live international rugby games will be exclusively available to UK Prime customers this winter with a brand new tournament called the Autumn Nations Cup. The tournament will feature the Six Nations (England, France, Ireland, Italy, Scotland, and Wales) as well as two guest teams from Fiji and Georgia.
  • Amazon Music announced multiple new services and features, including partnering with Twitch to add livestreaming to the Amazon Music app, enabling fans to engage with artists in brand-new ways and move seamlessly between livestreams and recorded music; launching podcasts for customers in Germany, Japan, the UK, and the U.S., across all tiers of service at no additional cost; and expanding its HD streaming tier to Canada, France, Italy, and Spain.
  • Amazon announced the launch of Prime Gaming, a new service that lets Prime members enjoy free, exclusive content for their favorite PC, console, and mobile games, plus a collection of PC games for free every month. Prime Gaming is included with Prime memberships and Prime Video subscriptions in over 200 countries and territories.

Amazon Devices and Alexa

  • Amazon introduced a reimagined family of Echo devices. The new Echo combines the best of Echo and Echo Plus into a single device with an all-new design, built-in smart home hub, and more powerful speakers; Echo Dot and Echo Dot with Clock feature a powerful speaker packed into a compact design; Echo Dot Kids Edition comes in Panda and Tiger designs with even more features for kids to enjoy; and the all-new Echo Show 10 now features a brilliant 10-inch, adaptive HD display that automatically moves to stay in view as you interact with Alexa.
  • Amazon announced the new Fire TV Stick and Fire TV Stick Lite. Customers have purchased over 100 million Fire TV devices globally, and Fire TV customers are streaming billions of hours each month. The new Fire TV devices are 50% more powerful while using 50% less power than the previous Fire TV Stick. Amazon also introduced a redesigned Fire TV experience that provides new content-discovery features, enhanced Alexa voice integration, and user profiles for personalized recommendations.
  • Amazon announced new ways for customers to connect their devices with Amazon Sidewalk, a shared network that helps devices like Amazon Echo, Ring Security Cams, outdoor lights, and motion sensors work better at home and beyond the front door.
  • Amazon announced the latest AI advancements that make Alexa more natural, conversational, and useful. These advancements include a new teaching capability that helps Alexa get smarter by asking questions to fill gaps in her understanding, and natural turn-taking that will allow customers to interact with Alexa at their own pace without using a wake word, even when multiple people are talking.
  • Amazon introduced new features and services that continue to make Alexa smarter, like Guard Plus and the Care Hub, that help customers keep their homes and loved ones safe. Amazon also announced new Alexa privacy controls including the option for customers to not save voice recordings or simply say, “Alexa, delete everything I’ve said” to delete their voice history. Amazon expanded Alexa Calling and Messaging capabilities to help customers stay connected with the addition of group calling and integrations with Zoom and Amazon Chime. AT&T customers can also link eligible mobile numbers to make and receive hands-free calls with Alexa.
  • Amazon announced customers have connected more than 100 million smart home devices to Alexa, and introduced smart home features like additional Hunches, that let customers choose to have Alexa proactively act on their behalf.
  • Amazon introduced new devices and features to help kids and families learn, stay connected, and have fun together. Kids can now make Alexa Announcements with their Fire Kids Edition Tablets, help build reading fluency with Reading Sidekick, and enjoy a custom-built kids experience with the new Echo Dot Kids Edition.
  • Amazon announced Amazon Halo, a new service dedicated to helping customers improve their health and wellness. Amazon Halo combines a suite of AI-powered health features that provide actionable insights into overall wellness via the new Amazon Halo app with the Amazon Halo Band, which uses multiple advanced sensors to provide the information necessary to power Halo insights.
  • Amazon announced Luna, a new cloud gaming service that allows customers to play high-quality games on devices they already own. As part of early access, players will have access to more than 100 games through the Luna+ game channel and Ubisoft channel, with more games to come. Luna is built on AWS and harnesses the power of the industry’s broadest and deepest cloud platform. Amazon also announced Luna Controller, which is Alexa-enabled and connects directly to the cloud for lower latency gaming. Luna will be available on Fire TV, PC, and Mac as well as on web apps for iPhone and iPad, with Android coming soon.
  • Ring announced several new products and features, including a new category of devices for the car (Ring Car Alarm, Ring Car Cam, Ring Car Connect API, and Ring Car Connect for Tesla), the autonomous flying indoor security camera Ring Always Home Cam, and a new Mailbox Sensor.
  • Amazon announced new eero Pro 6 and eero 6 mesh wifi systems that feature Wi-Fi 6 support for faster speeds, higher performance, and better support for simultaneous connected devices.
  • Amazon continues to support developers and startups with new Alexa tools and features, investments, and programs. Amazon announced that Dolby, Facebook, Garmin, and Xiaomi have joined the Voice Interoperability Initiative, a program to ensure voice-enabled products provide customers with choice and flexibility through multiple, interoperable voice services. The Alexa Fund invested in health and fitness companies Tonal and Zwift; enterprise AI company Fiddler Labs; maker of smart sensor chips Aspinity; and creators of personalized sound environments Endel. The investments are in addition to the launch of two new programs in collaboration with Blavity’s AfroTech World and All Raise to support underrepresented founders.
  • The Federal Communications Commission voted unanimously to approve Project Kuiper, a low earth orbit satellite constellation capable of providing reliable, affordable broadband to unserved and underserved communities around the world. Amazon will invest more than $10 billion in the initiative, creating jobs and infrastructure around the U.S. that will enable the team to deliver on its vision for the project.
  • Blink launched Blink Indoor and Outdoor, two new wireless smart home security cameras that offer two-year battery life, HD video, new privacy zones features, and local or cloud storage options for saved clips. Cameras are available for purchase in Canada, France, Germany, Italy, Netherlands, Spain, the UK, and the U.S.

Amazon Web Services

  • AWS announced significant customer momentum with new commitments and migrations, including: leading payments technology company Global Payments, to manage issuer processing and handling of their approximately 27 billion transactions processed annually; biotechnology company Moderna, to accelerate the development of messenger RNA medicines to prevent and fight diseases, including a vaccine candidate against COVID-19; restaurant chain Jack in the Box to enhance digital ordering, dining, and customer service experiences for its guests and to drive operational efficiency across its more than 2,200 restaurants; premier visual effects company Weta Digital to accelerate rendering of graphical visual effects, free up talent and resources, and deliver on its multi-year movie slate; leading job site Indeed to migrate more than 30 petabytes of data to AWS, reducing its global data center footprint by 40% while streamlining its IT operations; household appliance manufacturer Arçelik to use analytics, IoT, and machine learning services to build smart factories, automated production lines, and cloud connected appliances; IT services company and AWS Partner Network (APN) Premier Consulting Partner DXC Technology to replace its legacy contact center technology and drive automation, cutting operational costs by 40%, reducing volume of common calls by up to 60%, and migrating 1,000 service desk seats; hotel franchise Best Western International to migrate largest contact center within one month and move all agents to remote within one week, enabling seamless support for 14 languages in over 35 countries while reducing costs by 40%; and cold chain provider Carrier to transform how temperature-sensitive goods such as food, medicines, and vaccines are moved around the world by enhancing safety, reliability, and efficiency.

Contacts

Amazon Investor Relations
Dave Fildes, This email address is being protected from spambots. You need JavaScript enabled to view it.
amazon.com/ir

Amazon Public Relations
Dan Perlet, This email address is being protected from spambots. You need JavaScript enabled to view it.
amazon.com/pr


Read full story here

COLUMBUS, Ind.--(BUSINESS WIRE)--Today, Cummins Inc. (NYSE: CMI) announced the launch of Cummins Advocating for Racial Equity (CARE). CARE is another step forward in Cummins’ intent to take a leading role in undoing systemic discrimination against the Black community in the U.S.


“Institutional racism is a disease; deeply rooted and longstanding, and makes our society weaker,” said Tom Linebarger, Chairman and CEO, Cummins Inc. “It will take decisive and sustained action to dismantle racism, and Cummins will be part of that action. We are in the midst of a national reckoning on race, and we need awareness, education and accountability to drive results. It’s the right thing to do and we will all benefit when we are cured of this disease.”

The creation of CARE is the first step in Cummins’ effort to undo systemic discrimination; and since its creation in July, the company has developed strategies and initiated work in four identified areas:

  • Achieve police reform
  • Realize criminal justice reform
  • Create economic empowerment by building Black wealth and income
  • Drive social justice reform in healthcare, housing, workforce development and civil rights, including voting rights and education

“Our core value of Diversity and Inclusion demands we recognize and value our differences,” Linebarger added. “Our value of Integrity drives us to do what is right and act against injustice; through CARE, we are focusing our efforts to end racial injustice in selected communities where Cummins has operations.”

“We are using impact assessment tools to select work that will generate meaningful change with measurable results specific to each community,” added Linebarger. He added the company has already begun work and making progress in all four of the focus areas including:

  • In Indianapolis, Cummins recently joined forces with Eli Lilly and Company, Roche Diagnostics, the Indianapolis Urban League, the local American Civil Liberties Union and other Indianapolis business and community organizations, and successfully advocated for the establishment of a first-of-its-kind majority civilian General Orders Board that has the power to create policies and procedures that determine the manner in which policing is conducted in Indianapolis.
  • Cummins will launch four new Technical Education for Communities (TEC) workforce development programs. Two programs will be created in Nashville, Tennessee; one in Charleston, South Carolina; and one in Memphis, Tennessee. Each of the TEC sites will be focused on creating educational pathways for Black residents to good, living wage jobs in transportation, logistics and other industries.
  • Investing in current and future Black-owned suppliers by using Cummins’ industry influence to support their growth and sustainability.
  • Cummins has committed $250,000 towards an Indianapolis Urban League initiative to invest in Black-owned businesses and entrepreneurship, in partnership with Eli Lilly and Company.

As Cummins continues to move forward with CARE, the company will be providing updates on its progress to its employees and communities.

About Cummins Inc.

Cummins Inc., a global power leader, is a corporation of complementary business segments that design, manufacture, distribute and service a broad portfolio of power solutions. The company’s products range from diesel, natural gas, electric and hybrid powertrains and powertrain-related components including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, electric power generation systems, batteries, electrified power systems, hydrogen generation and fuel cell products. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 61,600 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment and equality of opportunity. Cummins serves its customers online, through a network of company-owned and independent distributor locations, and through thousands of dealer locations worldwide and earned about $2.3 billion on sales of $23.6 billion in 2019. See how Cummins is powering a world that’s always on by accessing news releases and more information at https://www.cummins.com/always-on.


Contacts

Jon Mills
Cummins Inc.
Phone: 317-658-4540
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Revenues increased six percent year-over-year to $121.1 million; GAAP earnings were $0.24 per diluted share; non-GAAP earnings were $0.40 per diluted share

SAN JOSE, Calif.--(BUSINESS WIRE)--Power Integrations (Nasdaq: POWI) today announced financial results for the quarter ended September 30, 2020. Net revenues for the third quarter were $121.1 million, up 13 percent compared to the prior quarter and up six percent from the third quarter of 2019. Net income for the third quarter was $14.8 million or $0.24 per diluted share compared to $0.22 per diluted share in the prior quarter and $0.29 per diluted share in the third quarter of 2019. (Per-share measures for all periods have been adjusted for the 2:1 stock split effected as a stock dividend in August 2020.) Cash flow from operations for the third quarter was $16.2 million.


In addition to its GAAP results, the company provided certain non-GAAP measures that exclude stock-based compensation, amortization of acquisition-related intangible assets and the tax effects of these items. Non-GAAP net income for the third quarter of 2020 was $24.2 million or $0.40 per diluted share compared with $0.33 per diluted share in the prior quarter and $0.39 per diluted share in the third quarter of 2019. A reconciliation of GAAP to non-GAAP financial results appears at the end of this press release.

Commented Balu Balakrishnan, president and CEO of Power Integrations: “Third-quarter revenues exceeded our expectations as we saw continued growth in fast charging for mobile devices as well as improved demand from the appliance market. Distribution sell-through strengthened considerably compared to the prior quarter, and we expect healthy sequential revenue growth in the fourth quarter. At the midpoint of our fourth-quarter revenue range, we would achieve double-digit revenue growth for the full year.”

Power Integrations paid a cash dividend of $0.11 per share (post-split) on September 30, 2020. The company will pay another dividend of $0.11 per share on December 31, 2020 to stockholders of record as of November 30, 2020.

Financial Outlook

The company issued the following forecast for the fourth quarter of 2020:

  • Revenues are expected to be $130 million plus or minus $5 million.
  • GAAP gross margin is expected to be approximately 49 percent, and non-GAAP gross margin is expected to be approximately 50 percent. (The difference between the expected GAAP and non-GAAP gross margins comprises approximately 0.6 percentage points from amortization of acquisition-related intangible assets and 0.4 percentage points from stock-based compensation.)
  • GAAP operating expenses are expected to be approximately $45 million; non-GAAP operating expenses are expected to be approximately $37 million. (Non-GAAP expenses are expected to exclude approximately $7.8 million of stock-based compensation and $0.2 million of amortization of acquisition-related intangible assets.)

Conference Call Today at 1:30 p.m. Pacific Time

Power Integrations management will hold a conference call today at 1:30 p.m. Pacific time. Members of the investment community can register for the call by visiting the following link: http://www.directeventreg.com/registration/event/5339866. A webcast of the call will also be available on the investor section of the company's website, http://investors.power.com.

About Power Integrations

Power Integrations, Inc. is a leading innovator in semiconductor technologies for high-voltage power conversion. The company’s products are key building blocks in the clean-power ecosystem, enabling the generation of renewable energy as well as the efficient transmission and consumption of power in applications ranging from milliwatts to megawatts. For more information please visit www.power.com.

Note Regarding Use of Non-GAAP Financial Measures

In addition to the company's consolidated financial statements, which are presented according to GAAP, the company provides certain non-GAAP financial information that excludes stock-based compensation expenses recorded under ASC 718-10, amortization of acquisition-related intangible assets, and the tax effects of these items. The company uses these measures in its financial and operational decision-making and, with respect to one measure, in setting performance targets for compensation purposes. The company believes that these non-GAAP measures offer important analytical tools to help investors understand its operating results, and to facilitate comparability with the results of companies that provide similar measures. Non-GAAP measures have limitations as analytical tools and are not meant to be considered in isolation or as a substitute for GAAP financial information. For example, stock-based compensation is an important component of the company’s compensation mix, and will continue to result in significant expenses in the company’s GAAP results for the foreseeable future, but is not reflected in the non-GAAP measures. Also, other companies, including companies in Power Integrations’ industry, may calculate non-GAAP measures differently, limiting their usefulness as comparative measures. Reconciliations of non-GAAP measures to GAAP measures are attached to this press release.

Note Regarding Forward-Looking Statements

The above statements regarding the company’s forecast for its fourth-quarter financial performance are forward-looking statements reflecting management's current expectations and beliefs. These forward-looking statements are based on current information that is, by its nature, subject to rapid and even abrupt change. Due to risks and uncertainties associated with the company's business, actual results could differ materially from those projected or implied by these statements. These risks and uncertainties include, but are not limited to: the impact of the COVID-19 pandemic on demand for the company’s products, its ability to supply products and its ability to conduct other aspects of its business such as competing for new design wins; changes in global macroeconomic conditions, including changing tariffs and uncertainty regarding trade negotiations, which may impact the level of demand for the company’s products; potential changes and shifts in customer demand away from end products that utilize the company's integrated circuits to end products that do not incorporate the company's products; the effects of competition, which may cause the company’s revenues to decrease or cause the company to decrease its selling prices for its products; unforeseen costs and expenses; and unfavorable fluctuations in component costs or operating expenses resulting from changes in commodity prices and/or exchange rates. In addition, new product introductions and design wins are subject to the risks and uncertainties that typically accompany development and delivery of complex technologies to the marketplace, including product development delays and defects and market acceptance of the new products. These and other risk factors that may cause actual results to differ are more fully explained under the caption “Risk Factors” in the company's most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission (SEC) on February 7, 2020. The company is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

Power Integrations and the Power Integrations logo are trademarks or registered trademarks of Power Integrations, Inc.

POWER INTEGRATIONS, INC.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per-share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30, 2020

June 30, 2020

September 30, 2019

 

September 30, 2020

September 30, 2019

NET REVENUES

$

121,129

 

$

106,832

 

$

114,159

 

$

337,625

 

$

306,212

 

 
COST OF REVENUES

 

61,560

 

 

53,296

 

 

56,028

 

 

168,040

 

 

151,035

 

 
GROSS PROFIT

 

59,569

 

 

53,536

 

 

58,131

 

 

169,585

 

 

155,177

 

 
OPERATING EXPENSES:
Research and development

 

20,868

 

 

19,770

 

 

17,957

 

 

59,790

 

 

55,172

 

Sales and marketing

 

13,442

 

 

12,807

 

 

13,074

 

 

39,465

 

 

38,479

 

General and administrative

 

10,302

 

 

7,804

 

 

9,224

 

 

26,867

 

 

26,948

 

Amortization of acquisition-related intangible assets

 

216

 

 

230

 

 

378

 

 

703

 

 

1,199

 

Total operating expenses

 

44,828

 

 

40,611

 

 

40,633

 

 

126,825

 

 

121,798

 

 
INCOME FROM OPERATIONS

 

14,741

 

 

12,925

 

 

17,498

 

 

42,760

 

 

33,379

 

 
OTHER INCOME

 

877

 

 

1,480

 

 

1,078

 

 

4,134

 

 

3,540

 

 
INCOME BEFORE INCOME TAXES

 

15,618

 

 

14,405

 

 

18,576

 

 

46,894

 

 

36,919

 

 
PROVISION FOR INCOME TAXES

 

798

 

 

1,213

 

 

1,477

 

 

2,996

 

 

1,742

 

 
NET INCOME

$

14,820

 

$

13,192

 

$

17,099

 

$

43,898

 

$

35,177

 

 
EARNINGS PER SHARE:
Basic

$

0.25

 

$

0.22

 

$

0.29

 

$

0.74

 

$

0.60

 

Diluted

$

0.24

 

$

0.22

 

$

0.29

 

$

0.72

 

$

0.59

 

 
SHARES USED IN PER-SHARE CALCULATION:
Basic

 

59,823

 

 

59,712

 

 

58,770

 

 

59,582

 

 

58,426

 

Diluted

 

60,852

 

 

60,624

 

 

59,732

 

 

60,668

 

 

59,418

 

 
 
 
SUPPLEMENTAL INFORMATION: Three Months Ended Nine Months Ended
September 30, 2020 June 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019
Stock-based compensation expenses included in:
Cost of revenues

$

602

 

$

252

 

$

280

 

$

1,250

 

$

824

 

Research and development

 

2,976

 

 

2,351

 

 

1,893

 

 

7,436

 

 

5,669

 

Sales and marketing

 

1,900

 

 

1,258

 

 

1,211

 

 

4,550

 

 

3,413

 

General and administrative

 

3,880

 

 

2,120

 

 

1,722

 

 

8,813

 

 

5,103

 

Total stock-based compensation expense

$

9,358

 

$

5,981

 

$

5,106

 

$

22,049

 

$

15,009

 

 
Cost of revenues includes:
Amortization of acquisition-related intangible assets

$

799

 

$

799

 

$

940

 

$

2,397

 

$

2,528

 

 
 
Three Months Ended Nine Months Ended
REVENUE MIX BY END MARKET September 30, 2020 June 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019
Communications

 

32

%

 

28

%

 

29

%

 

28

%

 

24

%

Computer

 

9

%

 

6

%

 

5

%

 

6

%

 

5

%

Consumer

 

31

%

 

31

%

 

32

%

 

34

%

 

36

%

Industrial

 

28

%

 

35

%

 

34

%

 

32

%

 

35

%

 

POWER INTEGRATIONS, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS

(in thousands, except per-share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30, 2020

 

June 30, 2020

 

September 30, 2019

 

September 30, 2020

 

September 30, 2019

RECONCILIATION OF GROSS PROFIT
GAAP gross profit

$

59,569

 

$

53,536

 

$

58,131

 

$

169,585

 

$

155,177

 

GAAP gross margin

 

49.2

%

 

50.1

%

 

50.9

%

 

50.2

%

 

50.7

%

 
Stock-based compensation included in cost of revenues

 

602

 

 

252

 

 

280

 

 

1,250

 

 

824

 

Amortization of acquisition-related intangible assets

 

799

 

 

799

 

 

940

 

 

2,397

 

 

2,528

 

 
Non-GAAP gross profit

$

60,970

 

$

54,587

 

$

59,351

 

$

173,232

 

$

158,529

 

Non-GAAP gross margin

 

50.3

%

 

51.1

%

 

52.0

%

 

51.3

%

 

51.8

%

 
 

Three Months Ended

 

Nine Months Ended

RECONCILIATION OF OPERATING EXPENSES

September 30, 2020

 

June 30, 2020

 

September 30, 2019

 

September 30, 2020

 

September 30, 2019

GAAP operating expenses

$

44,828

 

$

40,611

 

$

40,633

 

$

126,825

 

$

121,798

 

 
Less:Stock-based compensation expense included in operating expenses
Research and development

 

2,976

 

 

2,351

 

 

1,893

 

 

7,436

 

 

5,669

 

Sales and marketing

 

1,900

 

 

1,258

 

 

1,211

 

 

4,550

 

 

3,413

 

General and administrative

 

3,880

 

 

2,120

 

 

1,722

 

 

8,813

 

 

5,103

 

Total

 

8,756

 

 

5,729

 

 

4,826

 

 

20,799

 

 

14,185

 

 
Amortization of acquisition-related intangible assets

 

216

 

 

230

 

 

378

 

 

703

 

 

1,199

 

 
Non-GAAP operating expenses

$

35,856

 

$

34,652

 

$

35,429

 

$

105,323

 

$

106,414

 

 
 
Three Months Ended Nine Months Ended
RECONCILIATION OF INCOME FROM OPERATIONS September 30, 2020 June 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019
GAAP income from operations

$

14,741

 

$

12,925

 

$

17,498

 

$

42,760

 

$

33,379

 

GAAP operating margin

 

12.2

%

 

12.1

%

 

15.3

%

 

12.7

%

 

10.9

%

 
Add:Total stock-based compensation

 

9,358

 

 

5,981

 

 

5,106

 

 

22,049

 

 

15,009

 

Amortization of acquisition-related intangible assets

 

1,015

 

 

1,029

 

 

1,318

 

 

3,100

 

 

3,727

 

 
Non-GAAP income from operations

$

25,114

 

$

19,935

 

$

23,922

 

$

67,909

 

$

52,115

 

Non-GAAP operating margin

 

20.7

%

 

18.7

%

 

21.0

%

 

20.1

%

 

17.0

%

 
 
Three Months Ended Nine Months Ended
RECONCILIATION OF PROVISION FOR INCOME TAXES September 30, 2020 June 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019
GAAP provision for income taxes

$

798

 

$

1,213

 

$

1,477

 

$

2,996

 

$

1,742

 

GAAP effective tax rate

 

5.1

%

 

8.4

%

 

8.0

%

 

6.4

%

 

4.7

%

 
Tax effect of adjustments to GAAP results

 

(971

)

 

(272

)

 

(266

)

 

(1,994

)

 

(1,902

)

 
Non-GAAP provision for income taxes

$

1,769

 

$

1,485

 

$

1,743

 

$

4,990

 

$

3,644

 

Non-GAAP effective tax rate

 

6.8

%

 

6.9

%

 

7.0

%

 

6.9

%

 

6.5

%

 
 
Three Months Ended Nine Months Ended
RECONCILIATION OF NET INCOME PER SHARE (DILUTED) September 30, 2020 June 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019
GAAP net income

$

14,820

 

$

13,192

 

$

17,099

 

$

43,898

 

$

35,177

 

 
Adjustments to GAAP net income
Stock-based compensation

 

9,358

 

 

5,981

 

 

5,106

 

 

22,049

 

 

15,009

 

Amortization of acquisition-related intangible assets

 

1,015

 

 

1,029

 

 

1,318

 

 

3,100

 

 

3,727

 

Tax effect of items excluded from non-GAAP results

 

(971

)

 

(272

)

 

(266

)

 

(1,994

)

 

(1,902

)

 
Non-GAAP net income

$

24,222

 

$

19,930

 

$

23,257

 

$

67,053

 

$

52,011

 

 
Average shares outstanding for calculation
of non-GAAP net income per share (diluted)

 

60,852

 

 

60,624

 

 

59,732

 

 

60,668

 

 

59,418

 

 
Non-GAAP net income per share (diluted)

$

0.40

 

$

0.33

 

$

0.39

 

$

1.11

 

$

0.88

 

 
GAAP net income per share

$

0.24

 

$

0.22

 

$

0.29

 

$

0.72

 

$

0.59

 

 
POWER INTEGRATIONS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
 
 
September 30, 2020 June 30, 2020 December 31, 2019
ASSETS
CURRENT ASSETS:
Cash and cash equivalents

$

232,014

 

$

251,325

 

$

178,690

 

Short-term marketable securities

 

211,926

 

 

194,556

 

 

232,398

 

Accounts receivable, net

 

29,447

 

 

12,872

 

 

24,274

 

Inventories

 

104,805

 

 

103,963

 

 

90,380

 

Prepaid expenses and other current assets

 

14,755

 

 

14,512

 

 

15,597

 

Total current assets

 

592,947

 

 

577,228

 

 

541,339

 

 
PROPERTY AND EQUIPMENT, net

 

147,719

 

 

138,572

 

 

116,619

 

INTANGIBLE ASSETS, net

 

13,582

 

 

14,658

 

 

16,865

 

GOODWILL

 

91,849

 

 

91,849

 

 

91,849

 

DEFERRED TAX ASSETS

 

2,660

 

 

1,514

 

 

2,836

 

OTHER ASSETS

 

27,311

 

 

29,956

 

 

34,388

 

Total assets

$

876,068

 

$

853,777

 

$

803,896

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable

$

43,623

 

$

42,871

 

$

27,433

 

Accrued payroll and related expenses

 

12,892

 

 

14,365

 

 

13,408

 

Taxes payable

 

379

 

 

363

 

 

584

 

Other accrued liabilities

 

9,357

 

 

7,156

 

 

9,051

 

Total current liabilities

 

66,251

 

 

64,755

 

 

50,476

 

 
LONG-TERM LIABILITIES:
Income taxes payable

 

15,497

 

 

15,329

 

 

14,617

 

Deferred tax liabilities

 

87

 

 

121

 

 

164

 

Other liabilities

 

14,436

 

 

14,100

 

 

14,093

 

Total liabilities

 

96,271

 

 

94,305

 

 

79,350

 

 
STOCKHOLDERS' EQUITY:
Common stock

 

28

 

 

28

 

 

28

 

Additional paid-in capital

 

181,192

 

 

168,470

 

 

152,117

 

Accumulated other comprehensive loss

 

(2,355

)

 

(1,720

)

 

(3,130

)

Retained earnings

 

600,932

 

 

592,694

 

 

575,531

 

Total stockholders' equity

 

779,797

 

 

759,472

 

 

724,546

 

Total liabilities and stockholders' equity

$

876,068

 

$

853,777

 

$

803,896

 

 
POWER INTEGRATIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 
Three Months Ended Nine Months Ended
September 30, 2020 June 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income

$

14,820

 

$

13,192

 

$

17,099

 

$

43,898

 

$

35,177

 

Adjustments to reconcile net income to cash provided by operating activities
Depreciation

 

6,002

 

 

5,581

 

 

4,831

 

 

17,071

 

 

14,262

 

Amortization of intangible assets

 

1,076

 

 

1,090

 

 

1,357

 

 

3,283

 

 

3,840

 

Loss on disposal of property and equipment

 

19

 

 

262

 

 

62

 

 

311

 

 

214

 

Stock-based compensation expense

 

9,358

 

 

5,981

 

 

5,106

 

 

22,049

 

 

15,009

 

Amortization of premium (accretion of discount) on marketable securities

 

204

 

 

167

 

 

(66

)

 

525

 

 

(296

)

Deferred income taxes

 

(1,179

)

 

184

 

 

(381

)

 

100

 

 

1,278

 

Increase in accounts receivable allowances for credit losses

 

309

 

 

-

 

 

-

 

 

155

 

 

57

 

Change in operating assets and liabilities:
Accounts receivable

 

(16,884

)

 

7,725

 

 

(351

)

 

(5,328

)

 

(14,804

)

Inventories

 

(842

)

 

(7,330

)

 

487

 

 

(14,425

)

 

(7,853

)

Prepaid expenses and other assets

 

2,041

 

 

8,084

 

 

580

 

 

6,133

 

 

(3,034

)

Accounts payable

 

504

 

 

(2,967

)

 

(6,789

)

 

6,365

 

 

(2,636

)

Taxes payable and other accrued liabilities

 

801

 

 

4,684

 

 

(91

)

 

(864

)

 

1,126

 

Net cash provided by operating activities

 

16,229

 

 

36,653

 

 

21,844

 

 

79,273

 

 

42,340

 

 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment

 

(14,116

)

 

(10,019

)

 

(5,977

)

 

(35,738

)

 

(14,325

)

Proceeds from sale of property and equipment

 

-

 

 

331

 

 

-

 

 

331

 

 

-

 

Acquisition of technology licenses

 

-

 

 

-

 

 

(100

)

 

-

 

 

(351

)

Purchases of marketable securities

 

(46,239

)

 

(2,989

)

 

(80,864

)

 

(66,066

)

 

(135,288

)

Proceeds from sales and maturities of marketable securities

 

28,033

 

 

43,015

 

 

46,762

 

 

86,995

 

 

66,184

 

Net cash provided by (used in) investing activities

 

(32,322

)

 

30,338

 

 

(40,179

)

 

(14,478

)

 

(83,780

)

 
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock

 

3,364

 

 

769

 

 

4,005

 

 

9,662

 

 

9,683

 

Repurchase of common stock

 

-

 

 

(623

)

 

-

 

 

(2,636

)

 

(7,302

)

Payments of dividends to stockholders

 

(6,582

)

 

(6,271

)

 

(4,999

)

 

(18,497

)

 

(14,916

)

Net cash used in financing activities

 

(3,218

)

 

(6,125

)

 

(994

)

 

(11,471

)

 

(12,535

)

 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

(19,311

)

 

60,866

 

 

(19,329

)

 

53,324

 

 

(53,975

)

 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

 

251,325

 

 

190,459

 

 

99,491

 

 

178,690

 

 

134,137

 

 
CASH AND CASH EQUIVALENTS AT END OF PERIOD

$

232,014

 

$

251,325

 

$

80,162

 

$

232,014

 

$

80,162

 

 


Contacts

Joe Shiffler
Power Integrations, Inc.
(408) 414-8528
This email address is being protected from spambots. You need JavaScript enabled to view it.

ARLINGTON, Va.--(BUSINESS WIRE)--Leaders from the financial and energy sectors today announced the establishment of the Analysis & Resilience Center (ARC) for Systemic Risk, a non-profit, cross-sector organization designed to mitigate systemic risk to the nation’s most critical infrastructure from existing and emerging threats.


The ARC will conduct analysis of systemically important critical systems, assets, and functions; further capabilities to monitor and warn against threats to those systems, assets, and functions; and develop resilience measures. This work will be conducted through private sector-led operational collaboration between ARC’s member companies, sector partners, and the U.S. Government.

The only way to effectively address systemic risk to our nation’s most critical infrastructure is through public-private, cross-sector operational collaboration,” said Scott DePasquale, President and CEO of the ARC. “The ARC will ensure a scalable model is adopted for improving joint risk identification, intelligence cooperation, and early warning with critical infrastructure operators and U.S. Government partners.”

The ARC will build upon the frameworks and models for addressing systemic risk originally developed by the Financial Systemic Analysis & Resilience Center (FSARC), which was launched by the Financial Services Information Sharing and Analysis Center (FS-ISAC) in 2016. FS-ISAC is contributing FSARC’s operations to advance the mission of the ARC and will continue to collaborate with the ARC as appropriate along with the Electricity Information Sharing and Analysis Center (E-ISAC).

FSARC and its members successfully developed an approach to identify and address systemic risk in the financial sector,” said Craig Froelich, Chief Information Security Officer at Bank of America and Chairman of the ARC Board of Directors. “Leveraging this approach to other critical infrastructure sectors will help ensure continued service to customers, clients, partners, and the broader ecosystem through increased resilience.”

The ARC seeks to establish a unified, cross-sector coalition that applies consistent approaches to assess, prioritize, and mitigate risk to critical systems, assets, and functions that are interconnected, interdependent, and digitally exposed.

There must be a hand-in-glove relationship among the operators of systemically important critical infrastructure and the government to enhance the resilience of the systems and assets that underpin national critical functions, and ultimately our national security,” said Tom Fanning, CEO of Southern Company and ARC Board of Directors Executive Committee member. “We see the ARC as the central platform for critical infrastructure sectors to drive private sector and government collaboration and strategy on systemic risk going forward.”

I am proud of the role FS-ISAC played in standing up FSARC and proactively responding to demands for focused collaboration among designated critical infrastructure entities,” said Jerry Perullo, Chief Security Officer at the Intercontinental Exchange, Inc., Chairman of FS-ISAC, and ARC Board of Directors member. “With that mission accomplished, I am excited to see the evolution into the ARC and look forward to collaborating with designated critical infrastructure in other sectors, beginning with energy.”

In the future, the ARC membership will be expanded to other owners and operators of critical infrastructure entities designated as critical to the country’s national security.

About the Analysis & Resilience Center (ARC) for Systemic Risk

The ARC is a non-profit, cross-sector organization designed to mitigate systemic risk to the nation’s most critical infrastructure from existing and emerging threats. We facilitate operational collaboration between our critical infrastructure members from the financial and energy sectors, the U.S. Government, and other key sector partners in a secure environment to assess, prioritize, and mitigate risk to critical systems, assets, and functions.

The ARC was jointly established by leaders from the financial and energy sectors to build upon the frameworks and models for addressing systemic risk originally developed by the Financial Systemic Analysis and Resilience Center (FSARC). The ARC’s members are owners and operators responsible for the systems and assets that underpin national critical functions.


Contacts

Press Contact:
Lauren Archambeault
Keybridge Communications
This email address is being protected from spambots. You need JavaScript enabled to view it.
(202) 471-4228 ext. 113

Revenue of $200.3 million, an increase of 6.6% sequentially from 2Q20, and gross margin of 28%

SAN JOSE, Calif.--(BUSINESS WIRE)--Bloom Energy Corporation (NYSE: BE) today announced financial results for the third quarter ended September 30, 2020. Bloom Energy has issued a shareholder letter discussing its third quarter 2020 financial results, and it may be accessed on the Investor Relations section of Bloom Energy’s website at: https://investor.bloomenergy.com.


Key highlights from the third quarter include:

  • Revenue of $200.3 million, gross margin of 28.0%, and net loss of $12.0 million
  • Adjusted EBITDA of $27.7 million

Commenting on its third quarter results, KR Sridhar, founder, chairman and CEO, Bloom Energy said:

“From the ongoing COVID-19 pandemic, to natural disasters occurring on either coast of the United States, and countries around the globe calling for immediate and necessary shifts to hydrogen and better forms of energy, we continue to see an increasing need for the sustainable and resilient energy power sources that Bloom Energy’s technology provides. As we move forward, we will continue to serve our customers and communities around the world through ground-breaking innovation and access to leading technologies to improve global energy consumption.”

Bloom Energy will hold a conference call today to discuss its financial results for the third quarter of 2020 and to provide an update on the business. The details are included below.

Conference Call Details

Bloom Energy will host a conference call today, October 29, 2020, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its third quarter 2020 financial results. To participate in the live call, analysts and investors may call +1 (833) 520-0063 and enter the passcode: 6975469. Those calling from outside the U.S. may dial +1 (236) 714-2197 and enter the same passcode: 6975469. A simultaneous live webcast will also be available under the Investor Relations section on Bloom Energy’s website at https://investor.bloomenergy.com/. Following the webcast, an archived version will be available on Bloom Energy’s website for one year. A telephonic replay of the conference call will be available until November 5, 2020, by dialing +1 (800) 585-8367 or +1 (416) 621-4642 and entering passcode 6975469.

About Bloom Energy

Bloom Energy’s mission is to make clean, reliable energy affordable for everyone in the world. Bloom’s product, the Bloom Energy Server, delivers highly reliable and resilient, always-on electric power that is clean, cost-effective, and ideal for microgrid applications. Bloom’s customers include many Fortune 100 companies and leaders in manufacturing, data centers, healthcare, retail, higher education, utilities, and other industries. For more information, visit www.bloomenergy.com.

Forward-Looking Statements under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of the federal securities laws that involve risks and uncertainties. Words such as “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “seeks,” “estimates,” “can,” “may,” “will,” “would” and similar expressions identify such forward-looking statements. These statements include, but are not limited to statements regarding the demand and value for sustainable and resilient power sources; and Bloom Energy’s ability to innovate and provide leading technologies to improve global energy consumption. These statements should not be taken as guarantees of results and should not be considered an indication of future activity or future performance. Actual events or results may differ materially from those described in this press release due to a number of risks and uncertainties, including those included in the Risk Factor section of Bloom Energy’s Annual Report on Form 10-K for the year ended December 31, 2019, its Quarterly Report (amended) on Form 10-Q for the quarter ended June 30, 2020 and other risks detailed in Bloom’s SEC filings from time to time. Bloom undertakes no obligation to revise or publicly update any forward-looking statements unless if and as required by law.

Use of Non-GAAP Financial Information

This release includes a non-GAAP financial measure as defined by SEC rules. This non-GAAP financial measure is in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. For a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure, please see the table below.

(In Thousands)

Q3’20

Net loss to Common Stockholders

(11,954)

Loss (gain) on extinguishment of debt

(1,220)

Loss (gain) for non-controlling interests1

(5,922)

Loss (gain) on warrant & derivatives liabilities2

(1,505)

Loss (gain) on the Fair Value Adjustments for certain PPA derivatives3

(726)

Stock-based compensation

15,735

Depreciation & Amortization

13,036

Provision for Income Tax

7

Interest Expense / Other Misc

20,222

Adjusted EBITDA

27,673

  1. Represents the profits and losses allocated to the non-controlling interests under the hypothetical liquidation at book value (HLBV) method
  2. Represents the adjustments to the fair value of the warrants issued or embedded derivatives associated with the convertible notes and other derivatives
  3. Represents the adjustments to the fair value of the derivative forward contract for one PPA entity (our first PPA company)

 


Contacts

Investor Relations:

Mark Mesler
Bloom Energy
+1 (408) 543-1743
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:

Jennifer Duffourg
Bloom Energy
+1 (480) 341-5464
This email address is being protected from spambots. You need JavaScript enabled to view it.

LONDON--(BUSINESS WIRE)--#GlobalPumpsMarketforOilandGasIndustry--The new pumps market research for oil and gas industry from Technavio indicates Neutral growth in the short term as the business impact of COVID-19 spreads.



Get detailed insights on the COVID-19 pandemic Crisis and Recovery analysis of the pumps market for oil and gas industry. Download free report sample

"One of the primary growth drivers for this market is the Growing Need for Energy-efficient Pumps,” says a senior analyst for Industrials at Technavio.

The considerably increasing need for energy-efficient pumps is one of the key factors driving pumps market growth for oil and gas industry. With the aging infrastructure and increased focus on reducing operating expenditure (OPEX) by improving production efficiency, there has been a significant rise in the requirement of energy-efficient pumps. Additionally, technological advances in PD pumps have made them a viable choice for consumers in the oil and gas industry as they can replace several small pumps due to their variable frequency drive. Such advantages of pumps are encouraging vendors to develop energy-efficient pumps to improve overall operational efficiency. Furthermore, regulatory authorities across the globe are encouraging the adoption of energy-efficient equipment, including pumps. For instance, the US Department of Energy funded USD 25 million for the development of energy-efficient motor technology. Such initiatives by the governments across the globe will further contribute significantly to the growth of pumps market for oil and gas industry during the forecast period.

As the markets recover Technavio expects the pumps market size for oil and gas industry to grow by USD 2.23 billion during the period 2020-2024.

Pumps Market for Oil and Gas Industry Segment Highlights for 2020

  • The pumps market for oil and gas industry is expected to post a year-over-year growth rate of 3.33%.
  • Centrifugal pumps are preferred for handling large volumes of fluids because of their higher flow rate as compared to PD pumps.
  • Centrifugal pumps can regulate their flow rate with changes in oil and gas piping systems. The resurging investments in shale resources in the US, which is a key oil and gas market, is expected to fuel the growth of the pumps market in this segment.
  • However, market growth in this segment will be slower than the growth of the market in the PD segment.

Regional Analysis

  • 40% of the growth will originate from the North America region.
  • The significant investments in upstream oil and gas activities will significantly influence pumps market growth for oil and gas industry in this region.
  • The US and Mexico are the key markets for pumps in North America. Market growth in this region will be faster than the growth of the market in Europe and South America.

Click here to learn about report detailed analysis and insights on how you can leverage them to grow your business.

Notes:

  • The pumps market for oil and gas industry size is expected to accelerate at a CAGR of almost 4% during the forecast period.
  • The pumps market for oil and gas industry is segmented by Product (centrifugal and PD) and Geographic Landscape (APAC, Europe, MEA, North America, and South America).
  • The market is fragmented due to the presence of many established vendors holding significant market share.
  • The research report offers information on several market vendors, including Danfoss AS, Enerpac Tool Group Corp., Flowserve Corp., General Electric Co., Grundfos Holding AS, Ingersoll Rand Co., ITT Inc., Robert Bosch GmbH, Sulzer Management Ltd., and The Weir Group Plc

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• Net earnings of $225 million; adjusted net earnings of $499 million


• Outstanding results, great execution in all three businesses

• Continued focus on Readiness to drive growth, innovation, sustainability

CHICAGO--(BUSINESS WIRE)--ADM (NYSE: ADM) today reported financial results for the quarter ended September 30, 2020.

“We delivered an outstanding quarter, and I am proud of our team’s continued great performance,” said Chairman and CEO Juan Luciano.

“Across the enterprise, ADM colleagues are doing what it takes to help our customers and our company succeed and grow. Our strategic initiatives, combined with exceptional execution, are driving strong results across all of our businesses. Readiness is enhancing our performance, accelerating our work in areas ranging from operations to sales. Our strong cash generation is allowing us to retire higher-cost debt while retaining balance sheet flexibility. And Nutrition continues its impressive upward trajectory, delivering a fifth consecutive quarter of 20-plus percent year-over-year operating profit growth.

“From our Strive 35 sustainability goals, to our partnership with Spiber to produce plant-based polymers, to the announcement of a significant expansion in probiotics with our new state-of-the art facility in Valencia, we’re advancing our work to enrich the quality of life around the globe. We’re excited about our future as we look ahead to another strong quarter, with positive momentum continuing through 2021.”

Third Quarter 2020 Highlights

(Amounts in millions except per share amounts)

2020

 

2019

Earnings per share (as reported)

$

0.40

 

 

$

0.72

 

Adjusted earnings per share1

$

0.89

 

 

$

0.77

 

 

 

 

 

Segment operating profit

$

904

 

 

$

758

 

Adjusted segment operating profit1

$

849

 

 

$

764

 

Ag Services and Oilseeds

436

 

 

417

 

Carbohydrate Solutions

246

 

 

182

 

Nutrition

147

 

 

118

 

Other Business

20

 

 

47

 

  • EPS as reported of $0.40 includes a $0.53 per share charge related to early debt retirement, a $0.03 per share charge related to the mark-to-market adjustment of the exchangeable bond issued in August 2020, a $0.10 per share credit related to the gain on sale of Wilmar shares and certain assets, and other charges totaling $0.03 per share. Adjusted EPS, which excludes these items, was $0.89.1

1 Non-GAAP financial measures; see pages 5, 10, 11 and 13 for explanations and reconciliations, including after-tax amounts.

Results of Operations

Ag Services & Oilseeds results were higher than the third quarter of 2019. Both Ag Services and Crushing saw expanding margins during the quarter, resulting in approximately $155 million in total negative timing effects, which are expected to reverse in the coming quarters.

  • Ag Services executed extremely well to capitalize on strong North American industry export margins and volumes. Results were lower in South America, as the pace of Brazilian farmer selling slowed as expected following the aggressive selling in the first half of the year. Global Trade’s continued focus on serving customers contributed significantly to results, as did a $54 million settlement related to 2019 U.S. high water insurance claims. Negative timing impacts of almost $80 million led to lower overall results versus the prior year.
  • In Crushing, strong execution in an environment of tighter soybean supplies and solid global demand for meal and oil supported improved execution margins in North and South America, partially offset by lower year-over-year margins in EMEAI. Negative timing impacts of approximately $75 million versus a gain of approximately $50 million recognized in the prior-year quarter led to lower year-over-year results.
  • Refined Products and Other delivered significantly higher year-over-year results, driven by improved biodiesel margins around the globe. Packaged oils in South America also contributed.
  • Equity earnings from Wilmar were substantially higher versus the prior-year period.

Carbohydrate Solutions results were significantly higher year over year.

  • Starches and Sweeteners subsegment results were substantially higher versus the third quarter of 2019. In North America, balanced ethanol industry supply and demand drove improved wet mill ethanol margins versus the prior year. Demand for starches in North America was substantially stronger than earlier in the year, and higher than the prior-year quarter. Reduced food service demand affected sweetener and flour volumes, though retail demand for flour remained solid. Strong risk management and improved net corn costs contributed positively to results. EMEAI delivered improved results on higher demand and reduced manufacturing and raw material costs.
  • In Vantage Corn Processors, distribution gains on wet mill ethanol, in addition to significantly improved year-over-year industry ethanol margins, helped to offset fixed costs from the two temporarily idled dry mills, driving higher year-over-year results. Increased volumes and margins of USP-grade industrial alcohol for hand sanitizer also supported improved performance.

Nutrition delivered its fifth consecutive quarter of 20-plus percent year-over-year profit growth.

  • Human Nutrition results were substantially higher versus the prior-year quarter, with improved results across the business portfolio. Flavors delivered another exceptional quarter, driven by increased revenue globally and improved mix and margins. Plant-based proteins helped drive a solid performance in Specialty Ingredients. Sales growth in probiotics, along with income from the Spiber fermentation agreement, contributed to strong results in Health & Wellness.
  • Animal Nutrition was higher year over year. Continued delivery of Neovia synergies, strength in livestock feed and year-over-year improvement in amino acids were partially offset by softer aquaculture feed demand as well as negative foreign currency impacts.

Other Business results were lower, driven by lower ADM Investor Services earnings and captive insurance underwriting losses, including a $17 million settlement impact for the high water claim with Ag Services & Oilseeds.

Other Items of Note

As additional information to help clarify underlying business performance, the table on page 10 includes reported earnings and EPS as well as adjusted earnings and EPS.

Segment operating profit of $904 million for the quarter includes charges related to asset impairment, restructuring, and settlement activities of $2 million and gains on the sale of Wilmar shares and certain assets of $57 million ($0.10 per share).

During the quarter, the company leveraged its strong cash position to re-balance its mix of long- and short-term debt, which will also reduce future interest payments, by economically retiring $1.2 billion of higher-coupon debt, resulting in a debt extinguishment charge of $396 million ($0.53 per share).

In Corporate results, unallocated corporate costs for the quarter were higher year over year due primarily to variable performance-related compensation expense accruals, which were low in the prior year. Other charges increased due to railroad maintenance expenses, partially offset by improved foreign hedging results on intercompany funding and investment gains in ADM Ventures. Corporate results also include the early debt retirement charge referenced above, a mark-to-market loss on the exchangeable bonds issued in August 2020 of $15 million ($0.03 per share), and an impairment charge of $6 million ($0.01 per share).

The effective tax rate for the quarter was a benefit of 13 percent compared to an expense of 19 percent in the prior year. The current quarter rate reflects the effects of the early debt retirement as well as the sale of Wilmar shares and increased year-over-year Wilmar earnings on the annual effective tax rate. The impact of U.S. tax credits, primarily the biodiesel and railroad tax credits, also contributed significantly to the decreased Q3 rate from the prior year; the railroad tax credits have an offsetting expense in cost of products sold. Absent the effect of EPS adjusting items, the effective tax rate for the current quarter was approximately 11 percent.

Note: Additional Facts and Explanations

Additional facts and explanations about results and industry environment can be found at the end of the ADM Q3 Earnings Presentation at www.adm.com/webcast.

Conference Call Information

ADM will host a webcast on October 30, 2020, at 8:00 a.m. Central Time to discuss financial results and provide a company update, including an overview of our Nutrition business. To listen to the webcast, go to www.adm.com/webcast. A replay of the webcast will also be available for an extended period of time at www.adm.com/webcast.

Forward-Looking Statements

Some of our comments and materials in this presentation constitute forward-looking statements that reflect management’s current views and estimates of future economic circumstances, industry conditions, Company performance and financial results. These statements and materials are based on many assumptions and factors that are subject to risk and uncertainties. ADM has provided additional information in its reports on file with the SEC concerning assumptions and factors that could cause actual results to differ materially from those in this presentation, and you should carefully review the assumptions and factors in our SEC reports. To the extent permitted under applicable law, ADM assumes no obligation to update any forward-looking statements as a result of new information or future events.

About ADM

At ADM, we unlock the power of nature to provide access to nutrition worldwide. With industry-advancing innovations, a complete portfolio of ingredients and solutions to meet any taste, and a commitment to sustainability, we give customers an edge in solving the nutritional challenges of today and tomorrow. We’re a global leader in human and animal nutrition and the world’s premier agricultural origination and processing company. Our breadth, depth, insights, facilities and logistical expertise give us unparalleled capabilities to meet needs for food, beverages, health and wellness, and more. From the seed of the idea to the outcome of the solution, we enrich the quality of life the world over. Learn more at www.adm.com.

Financial Tables Follow

Source: Corporate Release

Segment Operating Profit, Adjusted Segment Operating Profit (a non-GAAP financial measure)

and Corporate Results

(unaudited)

 

Quarter ended

 

 

Nine months ended

 

 

September 30

 

 

September 30

 

(In millions)

2020

2019

Change

 

2020

2019

Change

 

 

 

 

 

 

 

 

Segment Operating Profit

$

904

 

$

758

 

$

146

 

 

$

2,316

 

$

2,014

 

$

302

 

Specified items:

 

 

 

 

 

 

 

(Gains) losses on sales of assets and businesses

(57

)

 

(57

)

 

(80

)

(12

)

(68

)

Impairment, restructuring, and settlement charges

2

 

6

 

(4

)

 

60

 

52

 

8

 

Adjusted Segment Operating Profit

$

849

 

$

764

 

$

85

 

 

$

2,296

 

$

2,054

 

$

242

 

 

 

 

 

 

 

 

 

Ag Services and Oilseeds

$

436

 

$

417

 

$

19

 

 

$

1,271

 

$

1,196

 

$

75

 

Ag Services

147

 

161

 

(14

)

 

482

 

326

 

156

 

Crushing

66

 

138

 

(72

)

 

249

 

493

 

(244

)

Refined Products and Other

127

 

80

 

47

 

 

286

 

223

 

63

 

Wilmar

96

 

38

 

58

 

 

254

 

154

 

100

 

 

 

 

 

 

 

 

 

Carbohydrate Solutions

$

246

 

$

182

 

$

64

 

 

$

509

 

$

470

 

$

39

 

Starches and Sweeteners

257

 

197

 

60

 

 

533

 

547

 

(14

)

Vantage Corn Processors

(11

)

(15

)

4

 

 

(24

)

(77

)

53

 

 

 

 

 

 

 

 

 

Nutrition

$

147

 

$

118

 

$

29

 

 

$

447

 

$

316

 

$

131

 

Human Nutrition

128

 

102

 

26

 

 

372

 

293

 

79

 

Animal Nutrition

19

 

16

 

3

 

 

75

 

23

 

52

 

 

 

 

 

 

 

 

 

Other Business

$

20

 

$

47

 

$

(27

)

 

$

69

 

$

72

 

$

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Profit

$

904

 

$

758

 

$

146

 

 

$

2,316

 

$

2,014

 

$

302

 

 

 

 

 

 

 

 

 

Corporate Results

$

(704

)

$

(255

)

$

(449

)

 

$

(1,189

)

$

(922

)

$

(267

)

 

 

 

 

 

 

 

 

Interest expense - net

(83

)

(85

)

2

 

 

(246

)

(276

)

30

 

Unallocated corporate costs

(196

)

(139

)

(57

)

 

(579

)

(454

)

(125

)

Other charges

(8

)

 

(8

)

 

(25

)

(18

)

(7

)

Specified items:

 

 

 

 

 

 

 

LIFO credit (charge)

 

16

 

(16

)

 

91

 

(10

)

101

 

Early debt retirement charges

(396

)

 

(396

)

 

(410

)

 

(410

)

Expenses related to acquisitions

 

 

 

 

 

(14

)

14

 

Loss on debt conversion option

(15

)

 

(15

)

 

(15

)

 

(15

)

Impairment and restructuring charges

(6

)

(47

)

41

 

 

(5

)

(150

)

145

 

Earnings Before Income Taxes

$

200

 

$

503

 

$

(303

)

 

$

1,127

 

$

1,092

 

$

35

 

Segment operating profit is ADM’s consolidated income from operations before income tax excluding corporate items. Adjusted segment operating profit, a non-GAAP financial measure, is segment operating profit excluding specified items. Management believes that segment operating profit and adjusted segment operating profit are useful measures of ADM’s performance because they provide investors information about ADM’s business unit performance excluding corporate overhead costs as well as specified items. Segment operating profit and adjusted segment operating profit are not measures of consolidated operating results under U.S. GAAP and should not be considered alternatives to income before income taxes, the most directly comparable GAAP financial measure, or any other measure of consolidated operating results under U.S. GAAP.

Consolidated Statements of Earnings

(unaudited)

 

 

Quarter ended

 

Nine months ended

 

September 30

 

September 30

 

2020

 

2019

 

2020

 

2019

 

(in millions, except per share amounts)

 

 

 

 

 

 

 

 

Revenues

$

15,126

 

 

$

16,726

 

 

$

46,377

 

 

$

48,327

 

Cost of products sold (1)

14,084

 

 

15,648

 

 

43,276

 

 

45,349

 

Gross profit

1,042

 

 

1,078

 

 

3,101

 

 

2,978

 

Selling, general, and administrative expenses (2)

636

 

 

578

 

 

1,938

 

 

1,839

 

Asset impairment, exit, and restructuring costs (3)

4

 

 

53

 

 

61

 

 

200

 

Equity in (earnings) losses of unconsolidated affiliates

(160

)

 

(88

)

 

(403

)

 

(279

)

Interest income

(16

)

 

(47

)

 

(71

)

 

(142

)

Interest expense (4)

100

 

 

97

 

 

270

 

 

307

 

Other (income) expense - net (5)

278

 

 

(18

)

 

179

 

 

(39

)

Earnings before income taxes

200

 

 

503

 

 

1,127

 

 

1,092

 

Income tax (benefit) expense (6)

(26

)

 

95

 

 

38

 

 

212

 

Net earnings including noncontrolling interests

226

 

 

408

 

 

1,089

 

 

880

 

 

 

 

 

 

 

 

 

Less: Net earnings (losses) attributable to noncontrolling interests

1

 

 

1

 

 

4

 

 

5

 

Net earnings attributable to ADM

$

225

 

 

$

407

 

 

$

1,085

 

 

$

875

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

$

0.40

 

 

$

0.72

 

 

$

1.93

 

 

$

1.55

 

 

 

 

 

 

 

 

 

Average diluted shares outstanding

562

 

 

563

 

 

563

 

 

565

 

 

 

 

 

 

 

 

 

(1) Includes a charge (credit) related to changes in the Company’s LIFO reserves of $(91) million in the current YTD and $(16) million and $10 million in the prior quarter and YTD, respectively.

(2) Includes a settlement charge of $4 million in the current quarter and YTD and acquisition-related expenses of $14 million in the prior YTD.

(3) Includes charges related to impairment of certain assets and restructuring of $4 million and $61 million in the current quarter and YTD, respectively, and charges related to impairment of certain assets, restructuring, and pension settlement of $53 million and $200 million in the prior quarter and YTD, respectively.

(4) Includes charges related to the mark-to-market adjustment of the conversion option of the exchangeable bond issued in August 2020 of $15 million in the current quarter and YTD.

(5) Includes current quarter and YTD gains related to the sale of Wilmar shares and certain other assets totaling $57 million and $80 million, respectively, and early debt retirement charges of $396 million and $410 million, respectively, and prior YTD gains related to the sale of certain assets and a step-up gain on an equity investment of $12 million and a settlement charge of $2 million.

(6) Includes the tax benefit impact of the above specified items and tax discrete items totaling $88 million and $69 million, in the current quarter and YTD, respectively, and the tax benefit impact of the above specified items and certain discrete items totaling $13 million and $57 million in the prior quarter and YTD, respectively.

Summary of Financial Condition

(unaudited)

 

 

 

September 30,
2020

 

September 30,
2019

 

 

(in millions)

Net Investment In

 

 

 

 

Cash and cash equivalents (a)

 

$

948

 

 

$

932

 

Short-term marketable securities (a)

 

 

 

26

 

Operating working capital (b)

 

8,122

 

 

7,457

 

Property, plant, and equipment

 

9,816

 

 

10,101

 

Investments in and advances to affiliates

 

4,771

 

 

5,399

 

Long-term marketable securities

 

9

 

 

10

 

Goodwill and other intangibles

 

5,275

 

 

5,401

 

Other non-current assets

 

2,158

 

 

1,715

 

 

 

$

31,099

 

 

$

31,041

 

Financed By

 

 

 

 

Short-term debt (a)

 

$

209

 

 

$

1,242

 

Long-term debt, including current maturities (a)

 

7,924

 

 

7,646

 

Deferred liabilities

 

3,540

 

 

3,205

 

Temporary equity

 

85

 

 

53

 

Shareholders’ equity

 

19,341

 

 

18,895

 

 

 

$

31,099

 

 

$

31,041

 

(a)

Net debt is calculated as short-term debt plus long-term debt (including current maturities) less cash and cash equivalents and short-term marketable securities.

(b)

Current assets (excluding cash and cash equivalents and short-term marketable securities) less current liabilities (excluding short-term debt and current maturities of long-term debt).

Summary of Cash Flows

(unaudited)

 

 

 

Nine months
ended

 

 

September 30

 

 

2020

 

2019

 

 

(in millions)

Operating Activities

 

 

 

 

Net earnings

 

$

1,089

 

 

$

880

 

Depreciation and amortization

 

727

 

 

742

 

Asset impairment charges

 

50

 

 

50

 

(Gains) losses on sales of assets

 

(132

)

 

(37

)

Loss on debt extinguishment

 

410

 

 

 

Other - net

 

151

 

 

65

 

Change in deferred consideration in securitized receivables(a)

 

(4,603

)

 

(5,714

)

Other changes in operating assets and liabilities

 

792

 

 

375

 

Total Operating Activities

 

(1,516

)

 

(3,639

)

 

 

 

 

 

Investing Activities

 

 

 

 

Purchases of property, plant and equipment

 

(558

)

 

(566

)

Net assets of businesses acquired

 

(3

)

 

(1,946

)

Proceeds from sale of business/assets

 

708

 

 

43

 

Investments in retained interest in securitized receivables(a)

 

(2,121

)

 

(3,813

)

Proceeds from retained interest in securitized receivables(a)

 

6,724

 

 

9,527

 

Marketable securities - net

 

(1

)

 

41

 

Investments in and advances to affiliates

 

(5

)

 

(12

)

Other investing activities

 

(16

)

 

(23

)

Total Investing Activities

 

4,728

 

 

3,251

 

 

 

 

 

 

Financing Activities

 

 

 

 

Long-term debt borrowings

 

1,790

 

 

3

 

Long-term debt payments

 

(2,032

)

 

(615

)

Net borrowings (payments) under lines of credit

 

(993

)

 

960

 

Share repurchases

 

(117

)

 

(150

)

Cash dividends

 

(607

)

 

(592

)

Other

 

16

 

 

(36

)

Total Financing Activities

 

(1,943

)

 

(430

)

 

 

 

 

 

Increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents

 

1,269

 

 

(818

)

Cash, cash equivalents, restricted cash, and restricted cash equivalents - beginning of period

 

2,990

 

 

3,843

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents - end of period

 

$

4,259

 

 

$

3,025

 

(a)

Cash flows related to the Company’s retained interest in securitized receivables as required by ASU 2016-15 which took effect January 1, 2018.

Segment Operating Analysis

(unaudited)

 

 

Quarter ended

 

Nine months ended

 

September 30

 

September 30

 

2020

 

2019

 

2020

 

2019

 

(in ‘000s metric tons)

Processed volumes (by commodity)

 

 

 

 

 

 

 

Oilseeds

8,970

 

 

9,062

 

 

27,236

 

 

27,002

 

Corn

4,084

 

 

5,619

 

 

13,717

 

 

16,297

 

Total processed volumes

13,054

 

 

14,681

 

 

40,953

 

 

43,299

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended

 

Nine months ended

 

September 30

 

September 30

 

2020

 

2019

 

2020

 

2019

 

(in millions)

Revenues

 

 

 

 

 

 

 

Ag Services and Oilseeds

$

11,527

 

 

$

12,616

 

 

$

35,347

 

 

$

36,382

 

Carbohydrate Solutions

2,064

 

 

2,565

 

 

6,394

 

 

7,409

 

Nutrition

1,451

 

 

1,457

 

 

4,359

 

 

4,263

 

Other Business

84

 

 

88

 

 

277

 

 

273

 

Total revenues

$

15,126

 

 

$

16,726

 

 

$

46,377

 

 

$

48,327

 

Adjusted Earnings Per Share

A non-GAAP financial measure

(unaudited)

 

 

Quarter ended September 30

 

Nine months ended September 30

 

2020

2019

 

2020

2019

 

In millions

Per share

In millions

Per share

 

In millions

Per share

In millions

Per share

Net earnings and fully diluted EPS

$

225

 

$

0.40

 

$

407

 

$

0.72

 

 

$

1,085

 

$

1.93

 

$

875

 

$

1.55

 

Adjustments:

 

 

 

 

 

 

 

 

 

LIFO charge (credit) (a)

 

 

(12

)

(0.02

)

 

(69

)

(0.12

)

8

 

0.01

 

Losses (gains) on sales of assets and businesses (b)

(54

)

(0.10

)

 

 

 

(72

)

(0.13

)

(9

)

(0.02

)

Impairment, restructuring, and settlement charges (c)

5

 

0.01

 

41

 

0.08

 

 

49

 

0.09

 

156

 

0.28

 

Expenses related to acquisitions (d)

 

 

 

 

 

 

 

9

 

0.02

 

Early debt retirement charges (e)

300

 

0.53

 

 

 

 

311

 

0.55

 

 

 

Loss on debt conversion option (f)

15

 

0.03

 

 

 

 

15

 

0.03

 

 

 

Tax adjustment (g)

8

 

0.02

 

(5

)

(0.01

)

 

16

 

0.03

 

(7

)

(0.01

)

Sub-total adjustments

274

 

0.49

 

24

 

0.05

 

 

250

 

0.45

 

157

 

0.28

 

Adjusted net earnings and adjusted EPS

$

499

 

$

0.89

 

$

431

 

$

0.77

 

 

$

1,335

 

$

2.38

 

$

1,032

 

$

1.83

 

 

 

 

 

 

 

 

 

 

 

(a)

 

Current YTD changes in the Company’s LIFO reserves of $(91) million pretax ($69 million after tax), tax effected using the Company’s U.S. income tax rate. Prior quarter and YTD changes in the Company’s LIFO reserves of $(16) million and $10 million pretax, respectively ($12 million and $8 million after tax, respectively), tax effected using the Company’s U.S. income tax rate.

(b)

 

Current quarter and YTD gain of $57 million pretax ($54 million after tax) and $80 million pretax ($72 million after tax), respectively, primarily related to the sale of Wilmar shares and certain other assets, tax effected using the applicable tax rates. Prior YTD gains of $12 million pretax ($9 million after tax) related to the sale of certain assets and a step-up gain on an equity investment, tax effected using the Company’s U.S. income tax rate.

(c)

Current quarter and YTD charges of $8 million pretax ($5 million after tax) and $65 million pretax ($49 million after tax), respectively, related to the impairment of certain assets, restructuring, and a settlement, tax effected using the applicable rates. Prior quarter and YTD charges of $53 million and $202 million pretax, respectively ($41 million and $156 million after tax, respectively), related to the impairment of certain assets, restructuring, and pension settlement, tax effected using the applicable tax rates.

(d)

Prior YTD acquisition expenses of $14 million pretax ($9 million after tax) consisted of expenses primarily related to the Neovia acquisition.

(e)

Current quarter and YTD early debt retirement charges of $396 million pretax ($300 million after tax) and $410 million pretax ($311 million after tax), respectively, tax effected using the Company’s U.S. income tax rate, related to the early repurchase of certain of the Company’s debentures.

(f)

Current quarter and YTD loss on debt conversion option of $15 million pretax ($15 million after tax) related to the mark-to-market adjustment of the conversion option of the exchangeable bonds issued in August 2020.

(g)

Tax adjustment totaling $8 million and $16 million due to certain discrete items in the current quarter and YTD, respectively, and $(5) million and $(7) million due to U.S. tax reform and certain discrete items in the prior quarter and YTD, respectively.

Adjusted net earnings reflects ADM’s reported net earnings after removal of the effect on net earnings of specified items as more fully described above. Adjusted EPS reflects ADM’s fully diluted EPS after removal of the effect on EPS as reported of specified items as more fully described above. Management believes that Adjusted net earnings and Adjusted EPS are useful measures of ADM’s performance because they provide investors additional information about ADM’s operations allowing better evaluation of underlying business performance and better period-to-period comparability. These non-GAAP financial measures are not intended to replace or be alternatives to net earnings and EPS as reported, the most directly comparable GAAP financial measures, or any other measures of operating results under GAAP.


Contacts

Media Relations
Jackie Anderson
312-634-8484

Investor Relations
Victoria de la Huerga
312-634-8457


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