STAMFORD, Conn.--(BUSINESS WIRE)--Crane Co. (NYSE:CR) will host an Aerospace & Electronics investor conference virtually on Wednesday, May 26, 2021, from 1:00 PM to 3:00 PM ET. Speakers will include Max H. Mitchell, Crane Co.’s President and Chief Executive Officer, Stephen M. Zimmerman, President of Crane Aerospace & Electronics, as well as other key Crane Co. and Crane Aerospace & Electronics executives. Interested parties may listen to a simultaneous webcast of this event through the Company’s website www.craneco.com. A web replay will be available on our website shortly after completion of the event.

Crane Co. is a diversified manufacturer of highly engineered industrial products. Founded in 1855, Crane Co. provides products and solutions to customers in the chemicals, oil & gas, power, automated payment solutions, banknote design and production and aerospace & defense markets, along with a wide range of general industrial and consumer related end markets. The Company has four business segments: Fluid Handling, Payment & Merchandising Technologies, Aerospace & Electronics and Engineered Materials. Crane Co. has approximately 11,000 employees in the Americas, Europe, the Middle East, Asia and Australia. Crane Co. is traded on the New York Stock Exchange (NYSE:CR). For more information, visit www.craneco.com.

Jason D. Feldman
Vice President, Investor Relations
203-363-7329
www.craneco.com

ALEXANDRIA, Va.--(BUSINESS WIRE)--VSE Corporation (NASDAQ: VSEC, VSE, or the Company), a leading provider of aftermarket distribution and maintenance, repair and overhaul (MRO) services for land, sea and air transportation assets supporting government and commercial markets, today announced results for the first quarter 2021.

FIRST QUARTER 2021 RESULTS
(as compared to the First Quarter 2020)

• Total Revenues of $165.0 million declined 7.0%
• GAAP Net Income of $5.1 million increased 53.4%
• Adjusted Net Income of $5.3 million declined 45.6%
• Adjusted EBITDA of $15.6 million declined 31.5%

For the three months ended March 31, 2021, the Company reported total revenue of $165.0 million, versus $177.4 million for the same period ended 2020. The Company reported adjusted net income of $5.3 million or $0.44 per adjusted diluted share, compared to $9.8 million or $0.89 per adjusted diluted share in the prior-year period. Adjusted EBITDA declined to $15.6 million in the first quarter 2021, versus $22.7 million for the same period in 2020.

Fleet segment revenue increased 2.9% on a year-over-year basis, as growth in commercial fleet and e-commerce fulfillment offset a slight decline in U.S. Postal Service-related revenue. For the first quarter, Federal and Defense segment revenue was essentially flat on a year-over-year basis, as new contract wins offset the previously announced completion of a DoD program. Aviation segment revenue, excluding the previously divested Prime Turbines and CT Aerospace assets, declined 12.0% on a year-over-year basis in first quarter 2021, as lower airline revenue passenger miles resulted in reduced commercial MRO activity. During the first quarter, Aviation segment revenue increased 15.1% when compared to fourth quarter 2020, representing the third consecutive quarter of sequential segment growth. Aviation segment performance was driven by continued market share gains within the Company’s parts distribution business, together with improved business and general aviation (B&GA) customer demand. VSE Aviation distribution revenue returned to pre-pandemic levels during first quarter 2021, up 13.1% as compared to fourth quarter 2020. VSE Aviation MRO revenue increased 18.1%, compared to fourth quarter 2020.

VSE invested nearly $35 million in new inventory during first quarter 2021 to support recent aviation program wins. These program wins include previously announced distribution agreements with global OEMs to support engine auxiliary power unit (APU), avionics, landing gear and telecommunications products.

STRATEGY UPDATE

VSE continued to execute on its multi-year business transformation plan during the first quarter. The management team remains focused on accelerating business transformation with new development initiatives, product and service line expansions, bolt-on acquisitions, and disciplined balance sheet management.

• Aviation segment new $1 billion engine accessories distribution agreement. In March 2021, VSE announced that it has entered into a 15-year distribution agreement valued at approximately $1.0 billion with a global aircraft engine manufacturer. Under the terms of the agreement, VSE will be the provider for more than 6,000 flight-critical components used in more than 100 business and general aviation (B&GA) and regional jet engine platforms. VSE will support customers with new and exchange components. VSE will service more than 5,000 U.S.-based aircraft with on-demand, flight-critical components on a 24/7 basis to support AOG (aircraft on-ground).

• Federal and Defense segment new contract awards. In April 2021, the Company announced approximately $37.5 million in combined new contract awards with the United States Air Force and a U.S. Government foreign ally, respectively. Revenue related to both of these contract awards is anticipated to commence in the second quarter of 2021. These contract awards reflect the continued execution of Federal and Defense segment’s vehicle and aviation MRO strategy introduced last year, one that emphasizes multi-year growth in higher-margin segment backlog.

• HAECO Special Services (HSS) acquisition and integration. On March 1, 2021, VSE acquired HAECO Special Services, LLC (HSS) from HAECO Airframe Services, LLC, a division of HAECO Americas (HAECO), in an all cash transaction. HSS is a leading provider of fully integrated MRO support solutions for military and government aircraft. HSS offers scheduled depot maintenance, contract field deployment and unscheduled drop-in maintenance for a U.S. Department of Defense contract, specifically for the sustainment of the U.S. Air Force KC-10 fleet. Since March 1, 2021, HSS contributed $3.2 million of revenue to VSE’s first quarter 2021 consolidated results. Integration activity is underway, and HSS will be integrated into VSE’s Federal and Defense segment as part of the aircraft maintenance and modernization business unit.

• Fleet segment organic revenue growth in commercial end-markets. Total commercial revenue, which excludes U.S. Postal Service and Government-related revenue, increased 63.6% on a year-over-year basis in first quarter 2021, driven by increased sales in the e-commerce fulfillment and commercial fleet channels. Commercial revenue represented 26.4% of total Fleet revenue in first quarter 2021, versus 16.6% in the prior-year period.

MANAGEMENT COMMENTARY

“We continued to leverage our unique value proposition across niche, high-value market verticals during the first quarter of 2021, while advancing our business transformation strategy through a combination of both organic and inorganic growth,” stated John Cuomo, President and CEO of VSE Corporation. “Our change management and business transformation initiatives have begun to yield tangible results, as evidenced by new business wins, expanded relationships with commercial and government customers, and improved organizational efficiency.”

“We remain highly focused on growing a backlog of higher-margin, multi-year contracts that position us to cross-sell our products and services into new and existing markets,” continued Cuomo. “Within our Aviation segment, we recently announced a $1 billion, 15-year agreement with a major engine manufacturer with the potential to generate approximately $60 million in annual revenue upon full implementation. This transaction significantly expands our customer base across more than 100 B&GA and regional aviation engine platforms, while providing stable, long-term contract revenue. Within our Federal and Defense segment, we recently announced more than $37 million in new contract awards with the both the U.S. Air Force and a U.S. Government foreign ally. In our Fleet segment, we continue to generate strong organic growth in commercial revenue. Collectively, these new wins reflect a sharpened organizational focus on new business development, while further validating our go-to-market strategies.”

“Aviation segment revenue within distribution returned to pre-pandemic levels during the first quarter, ahead of our market peers, supporting our third quarter of sequential revenue growth in the segment,” continued Cuomo. “While revenue passenger miles remain below historical levels, we anticipate that an increase in B&GA and commercial domestic travel will lead the recovery, creating new opportunities for our business as traffic levels improve into 2022.”

“VSE remains well-capitalized to support the ongoing growth of the business,” stated Stephen Griffin, CFO of VSE Corporation. “While our recently announced business wins will require working capital investments in new inventory during 2021, we anticipate significant returns on these investments in 2022 and beyond. Disciplined balance sheet management remains a priority for us and we anticipate that we will end 2021 in a similar leverage position as compared to 2020. We are targeting a long-term net leverage ratio of 2.5x.”

SEGMENT RESULTS

AVIATION
Distribution & MRO Services

VSE’s Aviation segment provides aftermarket MRO and distribution services to commercial, cargo, business and general aviation, military/defense and rotorcraft customers globally. Core services include parts distribution, component and engine accessory MRO services, rotable exchange and supply chain services.

VSE Aviation segment revenue, less contributions from Prime Turbines (divested February 2020) and CT Aerospace (divested June 2020), decreased 12.0% year-over-year to $44.4 million in the first quarter 2021. The year-over-year revenue decline was attributable to the adverse impact of the COVID-19 pandemic on commercial air traffic, resulting in lower customer demand. The Aviation segment recorded an operating loss of $0.3 million in the first quarter, versus an operating loss of $1.9 million in the prior-year period. Segment Adjusted EBITDA decreased to $2.2 million in the first quarter 2021, versus $7.9 million in the prior-year period.

FLEET
Distribution & Fleet Services

VSE's Fleet segment provides parts, inventory management, e-commerce fulfillment, logistics, supply chain support and other services to support the commercial aftermarket medium- and heavy-duty truck market, the United States Postal Service (USPS), and the United States Department of Defense. Core services include parts distribution, sourcing, IT solutions, customized fleet logistics, warehousing, kitting, just-in-time supply chain management, alternative product sourcing, engineering and technical support.

VSE Fleet segment revenue increased 2.9% year-over-year to $54.7 million in the first quarter 2021. Revenues from commercial customers increased approximately $5.6 million or 63.6%, driven by growth in commercial fleet demand and our e-commerce fulfillment business. Operating income declined 16.9% year-over-year to $5.7 million in the first quarter 2021 due to sales mix and related factors. Segment Adjusted EBITDA declined 15.6% year-over-year in the first quarter 2021 to $8.1 million.

FEDERAL & DEFENSE
Logistics & Sustainment Services

VSE's Federal and Defense segment provides aftermarket MRO and logistics services to improve operational readiness and to extend the life cycle of military vehicles, ships and aircraft for the U.S. Armed Forces, federal agencies and international defense customers. Core services include base operations support, procurement, supply chain management, vehicle, maritime and aircraft sustainment services, IT services and energy consulting.

VSE Federal and Defense segment revenue declined 0.4% year-over-year to $65.9 million in the first quarter 2021, as new contract awards served to offset previously announced contract expirations. Operating income increased 2.1% year-over-year to $5.0 million in the first quarter, while Adjusted EBITDA increased 2.0% year-over-year to $5.8 million in the period, due to a less favorable contract mix.

VSE Federal and Defense segment first quarter bookings declined 6.0% year-over-year to $63 million. Funded backlog declined 6.5% year-over-year to $188 million. The decline in funded backlog was attributable to the expiration of a contract in the first quarter 2020 and the delay of new business awards. The Company continues to focus on revitalizing this business by leveraging its improved technical competencies to capitalize on higher margin growth as evidenced in recent wins announced in April 2021.

FINANCIAL RESOURCES AND LIQUIDITY

As of March 31, 2021, the Company had $167 million in cash and unused commitment availability under its $350 million revolving credit facility maturing in 2023. The Company’s existing credit facility includes a $100 million accordion provision, subject to customary lender commitment approvals. As of March 31, 2021, VSE had total net debt outstanding of $254 million and $68.1 million of trailing-twelve months Adjusted EBITDA.

FIRST QUARTER RESULTS

FIRST QUARTER SEGMENT RESULTS

The following is a summary of revenues and operating income (loss) for the three months ended March 31, 2021 and March 31, 2020:

The Company reported $2.1 million of total capital expenditures for three months ended March 31, 2021.

NON-GAAP MEASURES

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains Non-GAAP financial measures. The reasons why we believe these measures provide useful information to investors and a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these Non-GAAP measures are included in the supplemental schedules attached.

NON-GAAP FINANCIAL INFORMATION

Reconciliation of Adjusted Net Income and Adjusted EPS to Net Income

Reconciliation of Consolidated EBITDA and Adjusted EBITDA to Net Income

Reconciliation of Segment EBITDA and Adjusted EBITDA to Operating Income

Reconciliation of Operating Cash to Free Cash Flow

Reconciliation of Debt to Net Debt

The non-GAAP Financial Information set forth in this document is not calculated in accordance with U.S. generally accepted accounting principles ("GAAP") under SEC Regulation G. We consider Adjusted Net Income, Adjusted EPS (Diluted), EBITDA, Adjusted EBITDA, net debt and free cash flow as non-GAAP financial measures and important indicators of performance and useful metrics for management and investors to evaluate our business' ongoing operating performance on a consistent basis across reporting periods. These non-GAAP financial measures, however, should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP. Adjusted Net Income represents Net Income adjusted for acquisition-related costs including any earn-out adjustments, loss on sale of a business entity and certain assets, gain on sale of property, and related tax impact. Adjusted EPS (Diluted) is computed by dividing net income, adjusted for the discrete items as identified above and the related tax impacts, by the diluted weighted average number of common shares outstanding. EBITDA represents net income before interest expense, income taxes, amortization of intangible assets and depreciation and other amortization. Adjusted EBITDA represents EBITDA (as defined above) adjusted for discrete items as identified above. Net debt is defined as total debt less cash and cash equivalents. Free cash flow represents operating cash flow less capital expenditures.

CONFERENCE CALL

A conference call will be held Thursday, April 29, 2021 at 8:30 A.M. ET to review the Company’s financial results, discuss recent events and conduct a question-and-answer session.

A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of VSE’s website at https://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: (877) 407-0789
International Live: (201) 689-8562
Audio Webcast: http://public.viavid.com/index.php?id=144084

To listen to a replay of the teleconference through May 31, 2021:

Domestic Replay: (844) 512-2921
International Replay: (412) 317-6671
Replay PIN Number: 13718038

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.

Please refer to the Form 10-Q that will be filed with the Securities and Exchange Commission (SEC) on or about April 29, 2021 for more details on our first quarter 2021 results. Also, refer to VSE’s Annual Report on Form 10-K for the year ended December 31, 2020 for further information and analysis of VSE’s financial condition and results of operations. VSE encourages investors and others to review the detailed reporting and disclosures contained in VSE’s public filings for additional discussion about the status of customer programs and contract awards, risks, revenue sources and funding, dependence on material customers, and management’s discussion of short- and long-term business challenges and opportunities.

FORWARD LOOKING STATEMENTS

This document contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause VSE’s actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this document. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that actual results will not differ materially from these expectations. “Forward-looking” statements, as such term is defined by the Securities Exchange Commission (the “SEC”) in its rules, regulations and releases, represent our expectations or beliefs, including, but not limited to, statements concerning our operations, economic performance, financial condition, the impact of widespread health developments, such as the ongoing COVID-19 outbreak, the health and economic impact thereof, and the governmental, commercial, consumer and other responses thereto, growth and acquisition strategies, investments and future operational plans. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “forecast,” “seek,” “plan,” “predict,” “project,” “could,” “estimate,” “might,” “continue,” “seeking” or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. These statements, by their nature, involve substantial risks and uncertainties, certain of which are beyond our control, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the uncertainty surrounding the ongoing COVID-19 outbreak and the other factors identified in our reports filed or expected to be filed with the SEC including our Annual Report on Form 10-K for the year ended December 31, 2020. All forward-looking statements made herein are qualified by these cautionary statements and risk factors and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. Readers are cautioned not to place undue reliance on these forward looking-statements, which reflect management's analysis only as of the date hereof. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

INVESTOR CONTACT
Noel Ryan
(720) 778-2415
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11 Cabot Facilities Recognized with Responsible Care® Awards for Facility Safety

BOSTON--(BUSINESS WIRE)--Cabot Corporation (NYSE: CBT) announced that 11 sites in the United States were recognized by the American Chemistry Council (ACC) with Responsible Care® awards for Facility Safety. The ACC recognized Cabot at its virtual 2021 Responsible Care® & Sustainability Conference & Expo.

Responsible Care Facility Safety Awards

Each year, the ACC recognizes excellence in safety, health and environmental (SH&E) and sustainability performance of its member companies as part of the Responsible Care® program. In total, 11 Cabot sites received facility safety awards in the Excellence, Honor and Achievement categories for their performance in preventing employee and contractor injuries.

“We have embraced the principles of Responsible Care® since joining the ACC in 2010 and are committed to continuously improving our already high standards for safety, health, environmental and security performance throughout our organization,” said Sean Keohane, president and CEO of Cabot Corporation. “I am immensely proud of all of our operating facilities in the U.S., for being recognized with these Safety Awards. This recognition reflects our efforts to continually improve our safety performance each year and is a testament to the safety culture that our employees and contractors promote on a daily basis. We are pleased with our progress in our safety journey and are committed to our reaching the ultimate goal of zero injuries.”

Cabot Corporation is a member of the ACC and an active participant in the Responsible Care program. Responsible Care® is a voluntary initiative of the global chemistry industry to safely handle products from inception to ultimate reuse, recycle and disposal, involving the public in decision-making processes. For nearly 30 years, Responsible Care has helped ACC member companies significantly enhance their performance and improve the health and safety of their employees, the communities in which they operate and the environment as a whole.

ABOUT CABOT CORPORATION

Cabot Corporation (NYSE: CBT) is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts. The company is a leading provider of carbon black, specialty carbons, activated carbon, elastomer composites, inkjet colorants, masterbatches and conductive compounds, fumed silica and aerogel. For more information on Cabot, please visit the company’s website at cabotcorp.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in the press release regarding Cabot's business that are not historical facts are forward looking statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K.

Vanessa Craigie
Corporate Communications
(617) 342-6015

Steve Delahunt
Investor Relations
(617) 342-6255

DEERFIELD, Ill.--(BUSINESS WIRE)--CF Industries Holdings, Inc. (NYSE: CF) today reported that its Board of Directors has declared a $0.30 per share dividend on its common stock. The dividend will be payable on May 28, 2021, to stockholders of record as of May 17, 2021.

About CF Industries Holdings, Inc.

At CF Industries, our mission is to provide clean energy to feed and fuel the world sustainably. Our employees are focused on safe and reliable operations, environmental stewardship, and disciplined capital and corporate management. We are on a path to decarbonize our ammonia production network – the world’s largest – to enable green and blue hydrogen and nitrogen products for energy, fertilizer, emissions abatement and other industrial activities. Our nine manufacturing complexes in the United States, Canada, and the United Kingdom, an unparalleled storage, transportation and distribution network in North America, and logistics capabilities enabling a global reach underpin our strategy to leverage our unique capabilities to accelerate the world’s transition to clean energy. CF Industries routinely posts investor announcements and additional information on the company’s website at www.cfindustries.com and encourages those interested in the company to check there frequently.

Media
Chris Close
Director, Corporate Communications
847-405-2542 – This email address is being protected from spambots. You need JavaScript enabled to view it.

Investors
Martin Jarosick
Vice President, Investor Relations
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The Joint Agreement Will Help Develop and Deploy Battery Storage and Green Hydrogen Storage Projects to Enable Puget Sound Energy to Reach Its Clean Energy Goals

BELLEVUE, Wash.--(BUSINESS WIRE)--#BESS--Puget Sound Energy has signed a joint development agreement with Mitsubishi Power Americas, Inc. to collaborate on project development and technology solutions in line with PSE’s goal to become a “Beyond Net Zero Carbon” energy company by 2045.

This agreement will help enable the implementation of large scale, carbon-free renewable generation and storage into PSE’s service territory while continuing to meet customer expectations for uncompromised reliability, safety and affordability. Key areas of focus for the partnership will include:

• Developing green hydrogen production, storage and transportation facilities
• Developing utility scale battery storage systems and developing hydrogen gas turbine combined cycle facilities
• Collaborating to pursue cross-sector decarbonization opportunities to create synergies between the power sector and other industrial sectors in the region, including refineries, transportation and distribution

Mitsubishi Power is a first mover in hydrogen-enabled gas turbines and long- and short-duration storage solutions. It also provides the world’s first and only standard integrated green hydrogen package. The Hydaptive™ package optimizes integration across renewables, energy storage, and hydrogen-enabled gas turbine power plants, which all work together to create and incorporate green hydrogen — a key to reaching carbonless emissions.

Additionally, under terms of the agreement, Mitsubishi Power and Magnum Development will jointly develop green hydrogen storage assets in PSE’s service territory. Mitsubishi Power and Magnum Development introduced green hydrogen storage at grid scale in May 2019 with the Advanced Clean Energy Storage Project in Delta, Utah.

In January 2021, PSE set its “Beyond Net Zero Carbon” energy company goal. PSE will target reducing its own carbon emissions to net zero and go beyond by helping other sectors to enable carbon reduction across the state of Washington.

“Our aspirational ‘Beyond Net Zero Carbon’ goal is built on the idea that we cannot get there alone,” said Mary Kipp, President and CEO of PSE. “We need leading organizations like Mitsubishi Power who share our commitment to combating climate change and creating a clean energy future that benefits all of the customers and communities we serve.”

Paul Browning, President and CEO of Mitsubishi Power Americas, said, “At Mitsubishi Power, our mission is to provide power generation and storage solutions to our customers, empowering them to affordably and reliably combat climate change and advance human prosperity. It is our firm belief that to achieve net zero carbon emissions by 2045, we need to develop and deploy renewable energy storage projects of all durations in the decade of the 2020s. This means lithium ion battery storage for short-duration storage, and green hydrogen for long-duration storage. We believe our customers will be the heroes in achieving net zero carbon emissions in the power sector, and we plan to support them with joint development agreements like this one with Puget Sound Energy. Working together with our customers, we will achieve a Change in Power.”

About Mitsubishi Power Americas, Inc.

Mitsubishi Power Americas, Inc., headquartered in Lake Mary, Florida, employs more than 2,000 power generation, energy storage, and digital solutions experts and professionals. Our employees are focused on empowering customers to affordably and reliably combat climate change while also advancing human prosperity throughout North and South America. Mitsubishi Power’s power generation solutions include natural gas, steam, aero-derivative, geothermal, distributed renewable technologies, environmental controls, and services. Energy storage solutions include green hydrogen and battery energy storage systems. Mitsubishi Power also offers digital solutions that enable autonomous operations and maintenance of power assets. Mitsubishi Power, Ltd. is a wholly owned subsidiary of Mitsubishi Heavy Industries, Ltd. (MHI). Headquartered in Tokyo, Japan, MHI is one of the world’s leading heavy machinery manufacturers with engineering and manufacturing businesses spanning energy, infrastructure, transport, aerospace and defense. For more information, visit the Mitsubishi Power Americas website and follow us on LinkedIn.

About Puget Sound Energy

Puget Sound Energy is proud to serve our neighbors and communities in 10 Washington counties. We’re the state’s largest utility, supporting 1.1 million electric customers and nearly 900,000 natural gas customers. We aspire to be a “Beyond Net Zero Carbon” energy company by 2045. For more about us and what we do, visit pse.com. Also follow us on Facebook and Twitter.

Christa Reichhardt
+1 407-484-5599
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Andrew Padula
+1 888-831-7250
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Record Double-Digit Organic Orders Growth; Raising 2021 Guidance

Important note: On February 29, 2020, Gardner Denver Holdings, Inc. closed on the acquisition of Ingersoll-Rand plc’s Industrial segment (“the Transaction”) and assumed the name Ingersoll Rand Inc. “Reported results” reflect the respective contributions from each company based on the close of the Transaction. For comparative purposes, management has also presented herein Supplemental Financial Information as if the Transaction was completed on January 1, 2018. All comparisons provided are on a year-over-year basis unless otherwise noted.

First-Quarter 2021 Highlights

(All comparisons against the first quarter of 2020 unless otherwise noted.)

Strong performance and transformation fueled by Ingersoll Rand Execution Excellence (IRX) drove the following:

• Reported revenues of $1.4 billion, up 95%, and up 17% (12% organically) as compared to prior year supplemental adjusted revenues
• Reported orders of $1.7 billion, up 124%, and up 29% (24% organically) as compared to prior year supplemental adjusted orders
• Reported net loss attributable to Ingersoll Rand of $90 million, or a loss of $0.21 per share, including $319 million of pre-tax loss from discontinued operations, amortization, restructuring and related business transformation costs, acquisition-related expenses and other adjustments, down 146% from prior year net loss attributable to Ingersoll Rand of $37 million
  • Adjusted income from continuing operations, net of tax of $192 million, or $0.45 per share
• Adjusted EBITDA of $293 million, up 57% from prior year supplemental adjusted EBITDA of $186 million, with a margin of 21.4%
• Reported operating cash flow from continuing operations of $123 million and free cash flow from continuing operations of $108 million, both including Transaction-related outflows of $10 million
• Liquidity of $2.6 billion as of March 31, 2021, including $1.6 billion of cash on hand and undrawn capacity of $1.0 billion under available credit facilities

Portfolio Optimization

• Completed the sale of a majority interest in High Pressure Solutions (“HPS”) business to American Industrial Partners on April 1, 2021; Ingersoll Rand received approximately $300 million in cash at closing (representing a 24x multiple of 2020 HPS segment adjusted EBITDA) and retained a 45% common equity interest in the business
• Announced the sale of the Specialty Vehicle Technologies (“SVT” or “Club Car®”) segment to Platinum Equity on April 12, 2021; the all-cash transaction is valued at $1.68 billion, which is approximately 12.1x 2020 SVT segment adjusted EBITDA, and is expected to be completed by the third quarter of 2021

2021 Revised Guidance, excluding Specialty Vehicle Technologies Segment

• Raising full-year 2021 revenue growth expectation, excluding SVT, to low double digits (up approximately 200 bps of organic growth from initial guidance) and raising adjusted EBITDA guidance, excluding SVT, to $1.12 billion to $1.15 billion (up approximately $45 million from initial guidance midpoint)

DAVIDSON, N.C.--(BUSINESS WIRE)--Ingersoll Rand Inc. (NYSE: IR) reported record double-digit organic orders and organic revenue growth in the first quarter of 2021.

Vicente Reynal, chief executive officer, stated, “Our strong first-quarter performance demonstrates our continued focus on executing our strategy, enabled by the transformative power of IRX. We continue to successfully navigate the rapidly changing landscape – from cautionary mode to growth mode as the economy and our markets recover. I want to thank our employees, who are shareholders, for their steadfast dedication to serving our customers, living our core values every day, and creating a culture of accountability and collaboration. This quarter, we substantially accelerated our portfolio transformation with the sale of a majority interest in our High Pressure Solutions business and agreement to sell Club Car for a total of approximately $2 billion. The proceeds from these transactions will create long-term value, including enabling significant organic and inorganic investment into our core business segments as we advance our growth strategies and expand our addressable market. As we build Ingersoll Rand into a leading employer of choice, I am proud of the strides we are making. Our recently released 2025 Diversity, Equity and Inclusion goals exemplify our continued commitment to making a positive impact for our employees around the globe. Thinking back to our Gardner Denver IPO in 2017, it is humbling and inspiring to reflect on all we have accomplished in a relatively short timeframe but even more exciting when we think about all the opportunity in front of us.”

First-Quarter 2021 Segment Review

(All comparisons against the first quarter of 2020 unless otherwise noted.)

Industrial Technologies and Services Segment: broad range of compressor, vacuum and blower solutions as well as fluid transfer equipment, loading systems, power tools and lifting equipment

• Reported Revenues of $914 million, up 81%, and up 15% (9% organically) as compared to prior year supplemental adjusted revenues
• Reported Orders of $1,042 million, up 84%, and up 17% (11% organically) as compared to prior year supplemental adjusted orders
• Reported Segment Adjusted EBITDA of $212 million, up 123%, and up 57% as compared to prior year supplemental segment adjusted EBITDA
• Reported Segment Adjusted EBITDA Margin of 23.1%, up 430 basis points and up 610 basis points as compared to prior year supplemental segment Adjusted EBITDA margin, fueled by the use of IRX to drive execution and realization of Transaction synergies
• Core industrial end markets saw continued strong demand with orders up 17% as compared to prior year supplemental adjusted orders, including positive momentum across all major regions. Orders for total compressor offerings, which represent approximately 65% of the total segment, were up 20%+. Orders in Industrial Vacuum & Blowers and Power Tools and Lifting were both up low double digits.

Precision and Science Technologies Segment: highly specialized gas, fluid management systems, liquid and precision syringe pumps and compressors

• Reported Revenues of $216 million, up 91%, and up 12% (7% organically) as compared to prior year supplemental adjusted revenues
• Reported Orders of $258 million, up 97%, and up 18% (12% organically) as compared to prior year supplemental adjusted orders
• Reported Segment Adjusted EBITDA of $67 million, up 104% and up 26% as compared to prior year supplemental segment adjusted EBITDA
• Reported Segment Adjusted EBITDA Margin of 31.2%, up 210 basis points and up 350 basis points as compared to prior year supplemental segment Adjusted EBITDA margin, driven by revenue growth coupled with IRX execution to deliver synergies and productivity improvements
• Orders increased 18% as compared to supplemental adjusted orders driven primarily by continued strong double-digit growth from both medical pumps and the Dosatron product line, which serves niche end markets such as lab and life sciences, water treatment, food sanitation and animal health, as well as strong performance from the ARO product line, which largely serves core industrial end markets.

Specialty Vehicle Technologies Segment¹: Club Car golf, utility and consumer low-speed vehicles

• Reported Revenues of $240 million, up 177%, and up 30% (29% organically) as compared to prior year supplemental adjusted revenues
• Reported Orders of $405 million, up 549%, and up 90% (89% organically) as compared to prior year supplemental adjusted orders
• Reported Segment Adjusted EBITDA of $48 million, up 242%, and up 162% as compared to prior year supplemental segment adjusted EBITDA of $18 million
• Reported Segment Adjusted EBITDA Margin was 20.1%, up 380 basis points and up 1,020 basis points as compared to prior year supplemental segment adjusted EBITDA margin, driven by strong revenue growth and the use of IRX to accelerate productivity initiatives
• Strong orders momentum, driven by record demand for consumer vehicles as well as growth in golf, commercial and aftermarket product offerings

Discontinued Operations

High Pressure Solutions business: diverse range of positive displacement pumps, integrated systems, consumables and associated aftermarket parts and services largely for use in the upstream oil and gas market

• Beginning in Q1 2021, Ingersoll Rand classified the HPS business as discontinued operations and has reclassified certain prior year amounts to conform to the current year presentation

Environmental, Social and Governance (ESG) Update

• Announced 2030 and 2050 Environmental goals to reduce the impact of operations and products on the environment, and support customers and partners in doing the same. These goals include achieving net-zero greenhouse gas emissions by 2050, reduction of water use by 17% by 2030 and achieving zero waste to landfill at >50% of current sites by 2030
• Announced 2025 Diversity, Equity and Inclusion goals to accelerate representation, career advancement and employee sense of belonging. These goals include an increase in under-represented talent in the U.S. workforce to at least 30% and an increase in global employment of women to at least 25%

Balance Sheet and Cash Flow

Ingersoll Rand remains in a strong financial position with ample liquidity of $2.6 billion. Free cash flow continues to increase. On a reported basis, Ingersoll Rand generated $123 million of cash flow from operating activities from continuing operations and invested $15 million in capital expenditures, resulting in free cash flow from continuing operations of $108 million, compared to cash flow from operating activities from continuing operations of $38 million and free cash flow from continuing operations of $30 million in the year-ago period. Operating cash flows from continuing operations in the first quarter of 2021 include outflows of approximately $10 million related to synergy delivery costs and stand-up related outflows. Net debt to supplemental adjusted EBITDA leverage was 1.9x for the first quarter, which was a 0.1x improvement as compared to prior quarter.

2021 Guidance, Excluding Specialty Vehicle Technologies Segment

The company is experiencing continued strong performance in 2021. As a result, Ingersoll Rand is raising its full-year 2021 revenue growth and Adjusted EBITDA guidance, excluding SVT, to the following:

Conference Call

Ingersoll Rand will host a live earnings conference call to discuss the first-quarter results on Thursday, April 29, 2021 at 8 a.m. (Eastern Time). To participate in the call, please dial 1-844-200-6205, domestically, or 1-646-904-5544, internationally, and use conference ID, 833508, or ask to be joined into the Ingersoll Rand call. A real-time audio webcast of the presentation can be accessed via the Events and Presentations section of the Ingersoll Rand Investor Relations website (https://investors.irco.com), where related materials will be posted prior to the conference call. A replay of the webcast will be available after conclusion of the conference and can be accessed on the Ingersoll Rand Investor Relations website.

¹ Beginning in Q2 2021, Ingersoll Rand will classify SVT as discontinued operations and will reclassify certain prior year amounts to conform to the current year presentation.

Forward-Looking Statements

This news release contains “forward-looking statements” as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, including statements regarding the completed Transaction (the “Transaction”) between Ingersoll-Rand plc’s Industrial segment (“Ingersoll Rand Industrial”) and the Company (f/k/a Gardner Denver Holdings, Inc. or “Gardner Denver”) and the recently-announced sale of the SVT Segment to Platinum Equity (the “SVT Sale”). These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “forecast,” “outlook,” “target,” “endeavor,” “seek,” “predict,” “intend,” “strategy,” “plan,” “may,” “could,” “should,” “will,” “would,” “will be,” “on track to” “will continue,” “will likely result,” or the negative thereof or variations thereon or similar terminology generally intended to identify forward-looking statements. All statements, other than historical facts, including, but not limited to, statements regarding the expected benefits of the Transaction, including future financial and operating results and strategic benefits, the tax consequences of the Transaction, the combined company’s plans, objectives, expectations and intentions, legal, economic and regulatory conditions, the future impact of the ongoing coronavirus (COVID-19) pandemic on the Company’s business and any assumptions underlying any of the foregoing, are forward-looking statements.

These forward-looking statements are based on Ingersoll Rand’s current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from these current expectations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) the impact on the Company’s business, suppliers and customers and global economic conditions of the COVID-19 pandemic (2) unexpected costs, charges or expenses resulting from the Transaction; (3) uncertainty of the expected financial performance of the combined company following completion of the Transaction; (4) failure to realize the anticipated benefits of the Transaction, including as a result of delay in integrating the businesses of Gardner Denver and Ingersoll Rand Industrial; (5) the ability of the combined company to implement its business strategy; (6) difficulties and delays in the combined company achieving revenue and cost synergies; (7) inability of the combined company to retain and hire key personnel; (8) risks and uncertainties with respect to the proposed SVT Sale, including, without limitation, that one or more closing conditions to the transaction, including certain regulatory approvals, may not be satisfied or waived, on a timely basis or otherwise, or that the proposed transaction may not be completed on the terms or in the time frame expected by the Company, or at all; (9) evolving legal, regulatory and tax regimes; (10) changes in general economic and/or industry specific conditions; (11) actions by third parties, including government agencies; and (12) adverse impact on our operations and financial performance due to natural disaster, catastrophe, pandemic or other events outside of our control. Additional factors that could cause Ingersoll Rand’s results to differ materially from those described in the forward-looking statements can be found under the section entitled “Risk Factors” in its most recent annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), as such factors may be updated from time to time in its periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. The foregoing list of important factors is not exclusive.

Any forward-looking statements speak only as of the date of this release. Ingersoll Rand undertakes no obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

About Ingersoll Rand Inc.

Ingersoll Rand Inc. (NYSE:IR), driven by an entrepreneurial spirit and ownership mindset, is dedicated to helping make life better for our employees, customers and communities. Customers lean on us for our technology-driven excellence in mission-critical flow creation and industrial solutions across 40+ respected brands where our products and services excel in the most complex and harsh conditions. Our employees develop customers for life through their daily commitment to expertise, productivity and efficiency. For more information, visit www.IRCO.com.

Non-U.S. GAAP Measures of Financial Performance

In addition to consolidated GAAP financial measures, Ingersoll Rand reviews various non-GAAP financial measures, including “Adjusted EBITDA,” “Supplemental Adjusted EBITDA,” “Adjusted Net Income,” “Supplemental Further Adjusted Net Income,” “Supplemental Further Adjusted Diluted EPS,” “Adjusted Diluted EPS,” “Free Cash Flow,” “Supplemental Revenue” and “Incrementals/Decrementals.”

Ingersoll Rand believes Supplemental Revenue, Supplemental Further Adjusted Net Income, Supplemental Further Adjusted Diluted EPS and Supplemental Adjusted EBITDA are helpful supplemental measures to assist management and investors in evaluating the Company’s operating results as they provide supplemental information about the Company’s financial performance on a combined basis as if the Transaction had occurred on January 1, 2018. Ingersoll Rand believes Adjusted EBITDA, Supplemental Adjusted EBITDA, Adjusted Net Income, Supplemental Further Adjusted Net Income, Supplemental Further Adjusted Diluted EPS, Adjusted Diluted EPS and Supplemental Revenue are helpful supplemental measures to assist management and investors in evaluating the Company’s operating results as they exclude certain items that are unusual in nature or whose fluctuation from period to period do not necessarily correspond to changes in the operations of Ingersoll Rand’s business. Adjusted EBITDA represents net income before interest, taxes, depreciation, amortization and certain non-cash, non-recurring and other adjustment items. Supplemental Adjusted EBITDA represents Adjusted EBITDA as if the Transaction had occurred on January 1, 2018. Adjusted Net Income is defined as net income including interest, depreciation and amortization of non-acquisition related intangible assets and excluding other items used to calculate Adjusted EBITDA and further adjusted for the tax effect of these exclusions. Supplemental Further Adjusted Net Income represents Adjusted Net Income as if the Transaction had occurred on January 1, 2018. Ingersoll Rand believes that the adjustments applied in presenting Adjusted EBITDA, Supplemental Adjusted EBITDA, Adjusted Net Income and Supplemental Further Adjusted Net Income are appropriate to provide additional information to investors about certain material non-cash items and about non-recurring items that the Company does not expect to continue at the same level in the future. Adjusted Diluted EPS is defined as Adjusted Net Income divided by Adjusted Diluted Average Shares Outstanding. Supplemental Further Adjusted Diluted EPS is defined as Supplemental Further Adjusted Net Income divided by Adjusted Diluted Average Shares Outstanding as if the Transaction had occurred on January 1, 2018. Supplemental Revenue represents revenue for the Company as if the Transaction had occurred on January 1, 2018. Incrementals/Decrementals are defined as the change in Adjusted EBITDA versus the prior year period divided by the change in revenue versus the prior year period.

Ingersoll Rand uses Free Cash Flow to review the liquidity of its operations. Ingersoll Rand measures Free Cash Flow as cash flows from operating activities less capital expenditures. Ingersoll Rand believes Free Cash Flow is a useful supplemental financial measure for management and investors in assessing the Company’s ability to pursue business opportunities and investments and to service its debt. Free Cash Flow is not a measure of our liquidity under GAAP and should not be considered as an alternative to cash flows from operating activities.

Management and Ingersoll Rand’s board of directors regularly use these measures as tools in evaluating the Company’s operating and financial performance and in establishing discretionary annual compensation. Such measures are provided in addition to, and should not be considered to be a substitute for, or superior to, the comparable measures under GAAP. In addition, Ingersoll Rand believes that Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, Incrementals/Decrementals and Free Cash Flow are frequently used by investors and other interested parties in the evaluation of issuers, many of which also present Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Free Cash Flow when reporting their results in an effort to facilitate an understanding of their operating and financial results and liquidity.

Adjusted EBITDA, Supplemental Adjusted EBITDA, Adjusted Net Income, Supplemental Further Adjusted Net Income, Supplemental Further Adjusted Diluted EPS, Adjusted Diluted EPS, Incrementals/Decrementals, Free Cash Flow and Supplemental Revenue should not be considered as alternatives to net income, diluted earnings per share or any other performance measure derived in accordance with GAAP, or as alternatives to cash flow from operating activities as a measure of our liquidity. Adjusted EBITDA, Supplemental Adjusted EBITDA, Adjusted Net Income, Supplemental Further Adjusted Net Income, Supplemental Further Adjusted Diluted EPS, Adjusted Diluted EPS, Free Cash Flow and Supplemental Revenue have limitations as analytical tools, and you should not consider such measures either in isolation or as substitutes for analyzing Ingersoll Rand’s results as reported under GAAP.

Reconciliations of Adjusted EBITDA, Supplemental Adjusted EBITDA, Adjusted Net Income, Supplemental Further Adjusted Net Income, Supplemental Further Adjusted Diluted EPS, Adjusted Diluted EPS, Free Cash Flow and Supplemental Revenue to their most comparable U.S. GAAP financial metrics for historical periods are presented in the tables below.

Reconciliations of non-GAAP measures related to full year 2021 guidance have not been provided due to the unreasonable efforts it would take to provide such reconciliations due to the high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations, including net income (loss) and adjustments that could be made for acquisitions-related expenses, restructuring and other business transformation costs, gains or losses on foreign currency exchange and the timing and magnitude of other amounts in the reconciliation of historic numbers. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.

Media:
Misty Zelent
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Investor Relations:
Christopher Miorin
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SEATTLE--(BUSINESS WIRE)--APsystems has announced that the company has withdrawn its IPR cases with the patent office against Tigo Energy following the joint settlement reached by both APsystems and Tigo Energy in the IP dispute.

While APsystems denies any kind of infringement and complies with Sunspec RSD requirements, to avoid the expenses and inconvenience of litigation, APsystems has agreed on the settlement with Tigo under which APsystems obtains a license to use Tigo’s rapid shutdown technology. The licensed technology is the same as the 6 patents that Tigo disclosed to Sunspec in 2017.

APsystems will continue to deliver leading edge RSD solutions to its customers.

Terms of the license agreement are not disclosed and include APsystems legal entities in the US as well as in China.

About APsystems

APsystems is the #1 global multi-platform MLPE solution provider, offering both AC and DC MLPE power conversion products as well as energy storage and rapid shutdown devices for the global solar PV industry. APsystems microinverters are intelligent, innovative, and the best-selling multi-module microinverters in the world.

Founded in Silicon Valley in 2010, APsystems encompasses 4 global business units serving customers in more than 120 countries. With millions of units sold producing more than 1 TWh of clean, renewable energy, APsystems continues to be a leader in the ever-growing solar MLPE segment.

Information on APsystems can be found at https://APsystems.com.

Information on APsmart Rapid Shutdown Devices can be found at https://apsmartglobal.com/

United States press contact:
Jason Higginson – This email address is being protected from spambots. You need JavaScript enabled to view it.

Company Positioned to Deliver Higher Annual Dividend Payout for 34^th Consecutive Year

SAN RAMON, Calif.--(BUSINESS WIRE)--The Board of Directors of Chevron Corporation (NYSE: CVX) today declared a quarterly dividend of one dollar and thirty-four cents ($1.34) per share, an increase of five cents ($0.05) per share or approximately 4 percent. The dividend is payable June 10, 2021, to all holders of common stock as shown on the transfer records of the Corporation at the close of business May 19, 2021.

This increase puts Chevron on track to make 2021 the 34^th consecutive year with an increase in annual dividend payout per share.

Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to achieving a more prosperous and sustainable world. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. To advance a lower-carbon future, we are focused on cost efficiently lowering our carbon intensity, increasing renewables and offsets in support of our business, and investing in low-carbon technologies that enable commercial solutions.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This news release contains forward-looking statements relating to Chevron’s operations that are based on management's current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “advances,” “commits,” “forecasts,” “projects,” “believes,” “approaches,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “could,” “should,” “will,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on track,” “goals,” “objectives,” “strategies,” “opportunities,” “poised,” “potential” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices and demand for our products, and production curtailments due to market conditions; crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries (OPEC) and other producing countries; public health crises, such as pandemics (including coronavirus (COVID-19)) and epidemics, and any related government policies and actions; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic and political conditions; changing refining, marketing and chemicals margins; the company’s ability to realize anticipated cost savings, expenditure reductions and efficiencies associated with enterprise transformation initiatives; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; technological developments; the results of operations and financial condition of the company’s suppliers, vendors, partners and equity affiliates, particularly during extended periods of low prices for crude oil and natural gas during the COVID-19 pandemic; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s operations due to war, accidents, political events, civil unrest, severe weather, cyber threats, terrorist acts, or other natural or human causes beyond the company’s control; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures to limit or reduce greenhouse gas emissions; the potential liability resulting from pending or future litigation; the company’s ability to achieve the anticipated benefits from the acquisition of Noble Energy, Inc.; the company’s future acquisitions or dispositions of assets or shares or the delay or failure of such transactions to close based on required closing conditions; the potential for gains and losses from asset dispositions or impairments; government mandated sales, divestitures, recapitalizations, industry-specific taxes, tariffs, sanctions, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; material reductions in corporate liquidity and access to debt markets; the receipt of required Board authorizations to pay future dividends; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the company’s ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors” on pages 18 through 23 of the company’s 2020 Annual Report on Form 10-K and in subsequent filings with the U.S. Securities and Exchange Commission. Other unpredictable or unknown factors not discussed in this news release could also have material adverse effects on forward-looking statements.

Sean Comey -- +1 925-842-5509

Cutting-edge industrial inspection company transforms former shipbuilding warehouse into ‘smart factory’ for close to 100 workers

New space expected to generate $33.5 million for state and city government & create 190 jobs by 2026 

VIDEO and IMAGES HERE

BROOKLYN, N.Y.--(BUSINESS WIRE)--#ArtificialIntelligence--Mayor de Blasio today joined the Brooklyn Navy Yard Development Corporation (BNYDC), Nanotronics, Empire State Development (ESD) and CUNY's Medgar Evers College for a ribbon-cutting ceremony to celebrate the opening of the company’s flagship manufacturing center located in the Navy Yard's historic Building 20, a 150-year-old former shipbuilding factory. The opening reinforces the Navy Yard’s mission to anchor the rebirth of urban manufacturing, create sustainable urban manufacturing jobs and grow the modern industrial sector in New York City, and comes as the city is focused on reopening and getting New Yorkers back to work. The project was primarily funded through $3.25 million from the City of New York and a $2.25 million Regional Economic Development Council capital grant through ESD in exchange for a commitment of 190 jobs.

Nanotronics, a science technology company that combines AI, automation and sophisticated imaging to manufacture hardware and software capable of working on a nanometer scale, will use the new 45,000-square-foot building as its headquarters. The new factory, designed by Rogers Partners Architects + Urban Designers, will house many aspects of the company’s business, from research and development to production and design, while ensuring quality and safety through its proprietary platform, Intelligent Factory Control (IFC). Nanotronics' artificial intelligence researchers, computer scientists, chemists and physicists will be able to work directly with skilled machinists on the manufacturing floor, developing innovations that will lead partner industries to a smaller factory footprint, less waste and a faster route from R&D to production.

The firm will also be able to recruit top talent locally through New York institutions including the Navy Yard's Employment Center and STEAM Center (the Yard’s on-site vocational high school), the City University of New York (CUNY), Cornell Tech, New York University and Columbia University. Nanotronics has partnered with CUNY Medgar Evers College to host nearly 30 interns in the last three years as part of Empire State Development’s STARTUP-NY program.

“The Brooklyn Navy Yard has a history of serving New Yorkers in times of crisis, and it proved its worth once again at the height of the COVID-19 pandemic. Today, it has an important role to play in our city’s recovery – by building a sustainable and high-tech manufacturing base in the heart of New York City,” said Mayor Bill de Blasio. “From creating hundreds of jobs to nurturing the next generation of STEM talent, Nanotronics and the Navy Yard are helping build a recovery for all of us, and I’m proud to support their extraordinary efforts.”

“The Navy Yard is quickly becoming a national model for bringing sustainable manufacturing jobs back to cities, and companies like Nanotronics are leading that charge,” said David Ehrenberg, President & CEO of the Brooklyn Navy Yard Development Corporation. “Nanotronics is the perfect example of the type of innovative, vertically-integrated manufacturer that can grow and thrive at the Yard, exemplifying a new model of urban manufacturing and creating high-quality, middle class jobs.”

“We wanted to create a modern-day Edison Lab,” said Matthew Putman, CEO and cofounder of Nanotronics. “That vision of building in a way that was never done before, with the same hope and possibilities of better jobs, local products, and leading the world in invention seemed like a real possibility in the Brooklyn Navy Yard. We are thrilled to advance manufacturing with the perspective of seeing our past, looking out of our windows at the city where so much of our present is on view, and build an intelligent factory where robotics, AI, and humans can work together to create a sustainable future.”

Empire State Development Acting Commissioner and President & CEO-Designate Eric Gertler said, “This project not only honors the Brooklyn Navy Yard's manufacturing roots and history of innovation, but it also helps to grow New York's tech talent to drive our economy forward. From groundbreaking to ribbon-cutting, Empire State Development has been a proud partner of Nanotronics, and its success is yet another example of how New York State's smart investments ensure New York City is better positioned for the future.”

“Nanotronics has provided on-the-job training to our students, with internships resulting in full-time employment,” said Jo-Ann Rolle, Dean of the School of Business at Medgar Evers College. “We hope to replicate this partnership and are excited to see current and future employees who are now at the forefront of innovation.”

“It’s such a privilege to be involved with a project that combines historic infrastructure with innovative technology and pioneering practices; one poised to have an impact in the revival of New York City’s urban manufacturing legacy,” said Vincent Lee, Associate Partner at Rogers Partners Architects + Urban Designers.

Nanotronics expanded its New York presence into the Brooklyn Navy Yard in 2016. As the first and largest tenant of New Lab, the company grew its Research and Development workforce three-fold. By 2018, the company needed to expand manufacturing operations both for redundant manufacturing and to rapidly scale new products. The foundational roots within the former manufacturing hub created an ideal location with waterfront access. The hub's location in the Navy Yard also provides space for partner firms in the life sciences, semiconductor, aerospace, automobile, additive manufacturing and quantum computing sectors to grow alongside Nanotronics.

BNYDC played an integral role at the outset of the COVID-19 pandemic last spring, serving as a central PPE production hub for the City as it faced shortages in face shields, medical gowns and ventilators, among other equipment. Ultimately BNYDC spearheaded the production of roughly a dozen products by Yard tenants, including nearly 10M units of PPE and more than 26,000 gallons of hand sanitizer.

Nanotronics played a critical role in COVID-19 response efforts as well. BNYDC helped Nanotronics open half of Building 20 at the start of the pandemic to enable the implementation of Intelligent Factory Control (IFC) – a first step to building the tools that sequenced the virus’ genome, necessary for diagnosing SARS-CoV-2, identifying variants, validating the first vaccines, and the production of the vaccine itself.

In July 2020, ESD restructured the disbursement schedule for Nanotronics’ $2.25 million capital grant to assist with COVID-19 response efforts and frontloaded the funding to help the company accelerate production of nHale, a BIPAP machine it created for patients suffering from COVID-19 that received an EAU from the FDA.

In just 90 days, Nanotronics team conceived, designed, built, and received Emergency Use Authorization from the FDA for its non-invasive respiratory relief product, nHale®, to treat COVID-19 in private hospitals, homes, and large converted spaces. nHale was one of the first and most cost-effective products to fill the much-needed gap in the NIH treatment guidelines for a phased respiratory approach to COVID treatment.

Additionally, Nanotronics is partnering with CUNY's Medgar Evers College in the START-UP NY program, which fosters collaboration between innovative companies and universities across New York State. Through this program, Nanotronics' executives work with faculty and students at Medgar Evers to mentor students, collaborate on research projects, host career service workshops, place students in meaningful paid internships and job and develop teaching curriculums and programs in STEM and the humanities. Students receive real-world business and technical experience in an emerging high-tech industry – preparing them for a wide variety of future careers, including at Nanotronics.

The opening of Building 20 comes as the Navy Yard is undergoing its largest expansion since World War II, which will increase the Yard’s job total from 12,000 to 20,000 in the coming years. The expansion includes the $187 million renovation of Building 77 to provide space to vertically integrated design and manufacturing companies and the ground-floor Food Manufacturing Market; the Green Manufacturing Center, which houses New Lab, Crye Precision, and Bednark; and an expanded Steiner Studios, the largest film and television production studio outside Hollywood in the United States. BNYDC also recently announced a $2.5 billion master plan to create 10,000 additional jobs housed in vertical manufacturing buildings, which would bring the total number of jobs at the Yard to 30,000 in the coming decades.

Building 20 was constructed in 1865 and housed the production for the Navy’s first iron-plated wooden warships. Rogers Partners collaborated with Nanotronics to turn the warehouse into a vertically integrated advanced manufacturing headquarters for the company. Few advanced manufacturing facilities seamlessly integrate the entire process; bringing together R&D and manufacturing under one roof. Initially coined as New York City’s first “smart factory,” Rogers Partners designed the building to be cleaner and more efficient than traditional factories. The adaptive re-use on legacy infrastructure along with the design, greatly reduces carbon footprint. This work helped the project win an Architect’s Newspaper Best of Design award in 2019.

The new building is also a model for sustainable development. While the construction of the main shell for a similarly sized facility would result in approximately 1,971 metric tons of embodied CO2, the newly constructed portion of the project is estimated at approximately 425 metric tons. The building is one of the first Commercial Cross Laminated Timber (CLT) projects built in New York City – using CLT for the interior to act as a carbon sink. Altogether, the CLT stores an estimated value of 411.2 metric tons of CO2, effectively offsetting the new construction’s emissions and resulting in a carbon neutral project.

About Nanotronics

Nanotronics is a science technology company that has redefined factory control through the invention of a platform that combines AI, automation and sophisticated imaging to assist human ingenuity in detecting flaws and anomalies in manufacturing. Industry agnostic but customer specific, we work with leading-edge companies across the globe from aerospace to electronics and healthcare, to drive up yield, reduce footprint and waste, lower costs, and speed up design iteration.

Nanotronics is a key player in helping to solidify New York’s role as a global center of the innovation economy. To learn more visit https://nanotronics.co/. Follow the company on LinkedIn, Twitter, Facebook, and Instagram.

Mary Cunney, Nanotronics
Chief Marketing/Communications Officer
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Jack Kerwin, Nanotronics
Business Development Associate
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IRVING, Texas--(BUSINESS WIRE)--The Board of Directors of Exxon Mobil Corporation (NYSE:XOM) today declared a cash dividend of $0.87 per share on the Common Stock, payable on June 10, 2021 to shareholders of record of Common Stock at the close of business on May 13, 2021.

This second quarter dividend is at the same level as the dividend paid in the first quarter of 2021.

Through its dividends, the corporation has shared its success with its shareholders for more than 100 years.

Important Additional Information Regarding Proxy Solicitation
Exxon Mobil Corporation (“ExxonMobil”) has filed a definitive proxy statement and form of associated BLUE proxy card with the U.S. Securities and Exchange Commission (the “SEC”) in connection with the solicitation of proxies for ExxonMobil’s 2021 Annual Meeting (the “Proxy Statement”). ExxonMobil, its directors and certain of its executive officers will be participants in the solicitation of proxies from shareholders in respect of the 2021 Annual Meeting. Information regarding the names of ExxonMobil’s directors and executive officers and their respective interests in ExxonMobil by security holdings or otherwise is set forth in the Proxy Statement. To the extent holdings of such participants in ExxonMobil’s securities are not reported, or have changed since the amounts described, in the Proxy Statement, such changes have been reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC. Details concerning the nominees of ExxonMobil’s Board of Directors for election at the 2021 Annual Meeting are included in the Proxy Statement. BEFORE MAKING ANY VOTING DECISION, INVESTORS AND SHAREHOLDERS OF THE COMPANY ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH OR FURNISHED TO THE SEC, INCLUDING THE COMPANY’S DEFINITIVE PROXY STATEMENT AND ANY SUPPLEMENTS THERETO AND ACCOMPANYING BLUE PROXY CARD, BECAUSE THEY CONTAIN IMPORTANT INFORMATION. Investors and shareholders can obtain a copy of the Proxy Statement and other relevant documents filed by ExxonMobil free of charge from the SEC’s website, www.sec.gov. ExxonMobil’s shareholders can also obtain, without charge, a copy of the Proxy Statement and other relevant filed documents by directing a request by mail to ExxonMobil Shareholder Services at 5959 Las Colinas Boulevard, Irving, Texas, 75039-2298 or at This email address is being protected from spambots. You need JavaScript enabled to view it. or from the investor relations section of ExxonMobil’s website, www.exxonmobil.com/investor.

Media Relations
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• Revenue $755 million and Net Revenue $600 million
• Operating Margin up 114 basis points Y/Y
• EPS $0.83, up 26% Y/Y
• Cash from Operations increased to $124 million, up 23% Y/Y
• Increased quarterly dividend by 18% to $0.20

PASADENA, Calif.--(BUSINESS WIRE)--Tetra Tech, Inc. (NASDAQ: TTEK), a leading provider of high-end consulting and engineering services, today announced results for the second quarter ended March 28, 2021.

Second Quarter Results

Revenue in the second quarter totaled $755 million and revenue, net of subcontractor costs (net revenue)¹, was $600 million. Operating income was $61 million, up 28% year-over-year, driven by a 114 basis point increase in operating margin. Earnings per share (“EPS”) was $0.83, up 26% year-over-year. Cash generated from operations was a record $124 million, up 23% year-over-year. Backlog at the end of the quarter was $3.15 billion, up 5% year-over-year.

Quarterly Dividend and Share Repurchase Program

On April 26, 2021, Tetra Tech’s Board of Directors declared a $0.20 per share quarterly dividend, an 18% increase over the prior year, payable on May 28, 2021 to stockholders of record as of May 12, 2021; the seventh consecutive double-digit annual increase. In the second quarter, Tetra Tech repurchased $15 million of common stock. Additionally, as of March 28, 2021, the Company had $178 million remaining under the approved share repurchase program.

Chairman and CEO Comments

Tetra Tech’s Chairman and CEO, Dan Batrack, commented, “Tetra Tech continued to build on its strong start to fiscal year 2021, generating record second quarter revenue and operating income on higher margins in both our government and commercial businesses. We achieved year-over-year double digit revenue growth for our U.S. state & local and U.S. federal water and environmental services by leveraging our Tetra Tech Delta suite of advanced data analytics and digital water technologies. We continued to invest in these strategic growth areas by adding Coanda Research & Development and IBRA-RMAC, leaders in computational fluid dynamics and digital water transformation. Given our results to date and outlook, we are increasing guidance for both net revenue and EPS for fiscal 2021.”

Six-Month Results

Revenue for the six-month period was $1.52 billion and net revenue was $1.20 billion. Operating income was $127 million, up 15% compared to the same period in fiscal 2020, and EPS increased 19% to $1.79. Cash flow from operations was $157 million, up 89% year-over-year.

Business Outlook

The following statements are based on current expectations. These statements are forward looking and the actual results could differ materially. These statements do not include the potential impact of transactions that may be completed or developments that become evident after the date of this release. The Business Outlook section should be read in conjunction with the information on forward-looking statements at the end of this release.

Tetra Tech expects EPS for the third quarter of fiscal 2021 to range from $0.85 to $0.90 and net revenue to range from $600 million to $650 million. For fiscal 2021, Tetra Tech is increasing its guidance outlook and now expects EPS to range from $3.60 to $3.70 and net revenue to range from $2.45 billion to $2.55 billion.²

Webcast

Investors will have the opportunity to access a live audio-visual webcast and supplemental financial information concerning the second quarter fiscal 2021 results through a link posted on the Company’s website at tetratech.com on April 29, 2021 at 8:00 a.m. (PT).

About Tetra Tech

Tetra Tech is a leading provider of high-end consulting and engineering services for projects worldwide. With 20,000 associates working together, Tetra Tech provides clear solutions to complex problems in water, environment, sustainable infrastructure, renewable energy, and international development. We are Leading with Science^® to provide sustainable and resilient solutions for our clients. For more information about Tetra Tech, please visit tetratech.com, follow us on Twitter (@TetraTech), or like us on Facebook.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "anticipate," "expect," "could," "may," "intend," "plan" and "believe," among others, generally identify forward-looking statements. These forward-looking statements are based on currently available operating, financial, economic and other information, and are subject to a number of risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. A variety of factors, many of which are beyond our control, could cause actual future results or events to differ materially from those projected in the forward-looking statements in this release, including but not limited to: the impact of the COVID-19 pandemic; continuing worldwide political and economic uncertainties; the U.S. Administration’s potential changes to fiscal policies; the cyclicality in demand for our overall services; the fluctuation in demand for oil and gas, and mining services; risks related to international operations; concentration of revenues from U.S. government agencies and potential funding disruptions by these agencies; dependence on winning or renewing U.S. government contracts; the delay or unavailability of public funding on U.S. government contracts; the U.S. government’s right to modify, delay, curtail or terminate contracts at its convenience; compliance with government procurement laws and regulations; credit risks associated with certain clients in certain geographic areas or industries; acquisition strategy and integration risks; goodwill or other intangible asset impairment; the failure to comply with worldwide anti-bribery laws; the failure to comply with domestic and international export laws; the failure to properly manage projects; the loss of key personnel or the inability to attract and retain qualified personnel; the ability of our employees to obtain government granted eligibility; the use of estimates and assumptions in the preparation of financial statements; the ability to maintain adequate workforce utilization; the use of the percentage-of-completion method of accounting; the inability to accurately estimate and control contract costs; the failure to adequately recover on our claims for additional contract costs; the failure to win or renew contracts with private and public sector clients; growth strategy management; backlog cancellation and adjustments; risks relating to cyber security breaches; the failure of partners to perform on joint projects; the failure of subcontractors to satisfy their obligations; requirements to pay liquidated damages based on contract performance; the adoption of new legal requirements; changes in resource management, environmental or infrastructure industry laws, regulations or programs; changes in capital markets and the access to capital; credit agreement covenants; industry competition; liability related to legal proceedings, investigations, and disputes; the availability of third-party insurance coverage; the ability to obtain adequate bonding; employee, agent, or partner misconduct; employee risks related to international travel; safety programs; conflict of interest issues; liabilities relating to reports and opinions; liabilities relating to environmental laws and regulations; force majeure events; protection of intellectual property rights; stock price volatility; the ability to impede a business combination based on Delaware law and charter documents; and other risks and uncertainties as may be described in Tetra Tech’s periodic filings with the Securities and Exchange Commission, including those described in the “Risk Factors” section of Tetra Tech’s Annual Report on Form 10-K for the fiscal year ended September 27, 2020, and Tetra Tech’s Quarterly Reports on Form 10-Q for fiscal year 2021, as well as in Tetra Tech’s other filings with the SEC. Readers should not place undue reliance on forward-looking statements since such information speaks only as of the date of this release. Tetra Tech does not intend to update forward-looking statements and expressly disclaims any obligation to do so.

Non-GAAP Financial Measures

To supplement the financial results presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we present certain non-GAAP financial measures within the meaning of Regulation G under the Securities Exchange Act of 1934, as amended. We provide these non-GAAP financial measures because we believe they provide a valuable perspective on our financial results. However, non-GAAP measures have limitations as analytical tools and should not be considered in isolation and are not in accordance with, or a substitute for, GAAP measures. In addition, other companies may define non-GAAP measures differently which limits the ability of investors to compare non-GAAP measures of Tetra Tech to those used by our peer companies. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is included in this release.

Jim Wu, Investor Relations
Charlie MacPherson, Media & Public Relations
(626) 470-2844

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

TORONTO--(BUSINESS WIRE)--Sherritt International Corporation (“Sherritt”, the “Corporation”, the “Company”) (TSX: S), a world leader in the mining and hydrometallurgical refining of nickel and cobalt from lateritic ores, today reported its financial results for the three-month period ended March 31, 2021. All amounts are in Canadian currency unless otherwise noted.

CEO COMMENTARY

“Sherritt sustained the momentum we established following the successful close of our balance sheet initiative last year into 2021 as evidenced by our strong performance in Q1,” said David Pathe, President and CEO of Sherritt International. “Even while managing against the continuing global pandemic, we ended the quarter with improved finished nickel and cobalt production results at the Moa Joint Venture, a $5 million reduction in our long-term debt, our highest adjusted EBITDA in almost three years, and improved nickel and cobalt market conditions.”

Mr Pathe added, “In addition to continuing to work with our Cuban partners on overdue receivables, we will focus during 2021 on further developing and commercializing the know-how within our Technologies business. We have continued to make improvements to our patented process for upgrading bitumen, which produces lower emissions and virtually eliminates coke waste compared to current upgrading methods. It also eliminates the need for diluent when transporting bitumen by pipeline, thereby reducing costs and increasing pipeline capacity with no need for new investment in pipelines. We are also progressing with the patenting of a hydrometallurgical process for the treatment of high arsenic copper concentrates, which offers superior environmental benefits by rendering the arsenic inert and reducing emissions relative to current methodologies. We also continue to engage our Technologies team in the development of next generation battery-grade nickel and cobalt production from lateritic ores to lower capital intensity, reduce emissions, and eliminate waste. Over the longer term, Sherritt is well positioned to create significant value – both economic and environmental – as it capitalizes on the growing demand for high-purity nickel as the market adoption of electric vehicles accelerates.”

SELECTED Q1 2021 HIGHLIGHTS

• Adjusted EBITDA⁽¹⁾ was $30.2 million, up 602% from last year, and reflective of strong production totals at the Moa Joint Venture (Moa JV), improved nickel and cobalt prices, and reduced administrative costs. Q1’s Adjusted EBITDA total represents Sherritt’s highest since Q3 2018.
• Sherritt’s share of finished nickel production at the Moa JV was 4,188 tonnes, up 9% from last year while Sherritt’s share of finished cobalt production was 477 tonnes, up 19%. The growth was largely attributable to high inventories of mixed sulphides at the refinery in Fort Saskatchewan, Alberta and improved refinery reliability. Production totals for Q1 2020 were adversely impacted by the disruption of mixed sulphides deliveries to the refinery caused by rail blockades in Canada and by extended transit times for shipping vessels from Cuba.
• NDCC⁽¹⁾ at the Moa JV was US$3.83/lb, the lowest total since Q4 2019.
• Received US$5 million in distributions from the Moa JV, indicative of improved nickel and cobalt market conditions.
• Received US$5.7 million in Cuban energy payments. Sherritt anticipates continued variability in the timing of collections through the remainder of 2021, and is working with its Cuban partners to ensure timely receipts.
• Received a $20.3 million prepayment against nickel deliveries in 2021. The prepayment is consistent with Sherritt’s efforts to enhance its liquidity.
• Purchased an aggregate total of $5 million principal amount of second lien notes at an aggregate cost of $3.3 million. The $5 million debt reduction will also result in cash interest savings of $2.4 million through to the maturity of the 8.5% second lien notes in November 2026.
• Excluding depreciation and share-based compensation, administrative expenses declined by $1.5 million from Q1 2020.
• Sherritt’s emerging Technologies business continued to make progress on several of its research projects, including enhancing a proprietary process to fully upgrade bitumen. The enhanced process, which builds on previous research efforts, eliminates the need for diluent, increases the economic value of oil transported to downstream markets and provides a number of environmental benefits, including reduced carbon emissions and reduced coke waste.
• Launched an initiative at its Moa operations to electrify light vehicles in support of carbon reduction targets.
• Sherritt’s refinery in Fort Saskatchewan had its operating license renewed for 10 years by Alberta’s Ministry of Environment and Parks.
• Sherritt’s Board continued its search for a successor to CEO David Pathe who has agreed to stay on with the Company until a replacement is in place and an orderly transition has been effected.
  ^{(1) For additional information see the Non-GAAP measures section of this press release.}

Q1 2020 FINANCIAL HIGHLIGHTS

^{(1) For additional information see the Non-GAAP measures section.}

Cash, cash equivalents, and short-term investments at March 31, 2021 were $158.3 million, down from $167.4 million at December 31, 2020. The decrease was due to a number of factors, including consolidated cash used by continuing operating activities, use of $3.3 million towards the repurchase of 8.5% second lien notes with a principal value of $5 million, and $1.3 million in capital expenditures. The decrease was partially offset by a $20.3 million prepayment against nickel deliveries in 2021, receipt of US$5 million in distributions from the Moa JV, and the receipt of US$5.7 million in Cuban energy payments.

The US$5 million of distributions received from the Moa JV in Q1 2021 was indicative of improved nickel and cobalt realized prices. In Q1 2020, Sherritt received US$10 million in distributions from the Moa JV despite softening nickel prices in the quarter last year. Distributions in Q1 2020 were primarily due to the Moa JV ending 2019 with a higher available cash balance. Sherritt anticipates receipt of distributions from the Moa JV through 2021 based on prevailing nickel and cobalt prices, planned capital spend, and liquidity requirements for the Moa JV. Sherritt also anticipates the receipt of re-directed distributions from its Moa JV partner, and is currently in discussions with its Cuban partners to determine amounts and timing of these distributions.

Collections against overdue amounts owed to Sherritt by its Cuban energy partners in Q1 were adversely impacted by a combination of factors, including the ongoing effects of U.S. sanctions against Cuba, Cuba’s reduced access to foreign currency on account of the global pandemic, and the country’s launch of a currency unification process. Total overdue scheduled receivables at March 31, 2021 were US$154.2 million, up from US$145.9 million at December 31, 2020. Subsequent to quarter end, Sherritt received US$4.5 million in Cuban energy payments. Sherritt anticipates variability in the timing and the amount of energy payments through the remainder of 2021, and continues to work with its Cuban partners to ensure timely receipt of energy payments.

As at March 31, 2021, $74.4 million of Sherritt’s cash and cash equivalents was held by Energas in Cuba, down from $75.0 million at December 31, 2020. Excluding the cash held by Energas in Cuba, Sherritt’s cash was $83.9 million at March 31, 2021.

Adjusted net loss⁽¹⁾

^{(1) For additional information see the Non-GAAP measures section.}

Net loss from continuing operations for Q1 2021 was $1.9 million, or nil per share, compared to a net loss of $34.5 million, or $0.09 per share, for the same period last year. The improvement was driven largely by strong contributions from the Moa JV as a result of higher sales volumes and stronger realized prices.

Net loss for Q1 2021 includes a loss from discontinued operations net of tax of $3.7 million relating to a provision retained by Sherritt following the sale of its Coal operations in 2014 and a loss on the disposal of its Ambatovy Joint Venture Interests.

Adjusted net loss from continuing operations was $2.3 million, or $0.01 per share, for the three months ended March 31, 2021 compared to an adjusted net loss from continuing operations of $28.9 million, or $0.07 per share, for Q1 2019.

METALS MARKET

Nickel

After a strong start to 2021 marked by nickel prices climbing to a high of US$8.93/lb on February 21, the highest price since September 2014, nickel market conditions softened considerably through to the end of Q1. By March 31, nickel prices had dropped to $US$7.30/lb, down 18% from Q1’s peak.

The pullback was principally driven by the announcement in early March made by Tsingshan, a stainless steel producer based in China, that it plans to supply 100,000 tonnes of a nickel intermediate product amenable for use in electric vehicle batteries starting in October 2021. The news initially caused the markets to roil as some industry observers and media coverage suggested that the development would address the shortfall in nickel supply needed for the surge in demand for electric vehicles expected in the coming years.

Since the market’s initial reaction to the announcement, many industry experts have since raised questions about Tsingshan’s process, including the increased amount of carbon emissions its pyro-metallurgical process will produce, the capital spend required to refine nickel matte to a purer form, and the reduced recoverability of by-product metals, which increase production costs and lower by-product credits.

Nickel prices since Tsinghan’s announcement have improved modestly and currently trade at US7.80/lb. Over the near term, nickel prices are expected to fluctuate in concert with the world’s economy as it reacts to the impact of the global pandemic.

The economic impact of COVID-19 on nickel market fundamentals in Q1 was evident by the increase in nickel inventory levels on the London Metal Exchange (LME), which rose by 7% to 260,244 tonnes by March 31. In contrast, inventory levels on the Shanghai Future Exchange (SHFE) shrank nearly in half to 8,972 tonnes.

As mining operations resume production activities, nickel inventory levels may rise given that supply could exceed demand as a number of industries that are large consumers of stainless steel, such as the food and hospitality sector, will experience a delayed or slower economic recovery, particularly if the third wave of the pandemic is prolonged.

The long-term outlook for nickel remains bullish, however, due to the strong demand expected from the electric vehicle battery market. Over the past six months, in particular, multiple automakers and governments have announced plans for significant investments to expand electric vehicle production capacity to meet growing demand. In 2020, more than 3.2 million electric vehicles were sold despite the global pandemic. Industry observers estimate that the number of electric vehicles sold in 2021 will grow by approximately 70%. As a result of Class 1 nickel’s unique properties, it remains as the dominant metal in cathode chemistries being adopted by automakers. Sherritt is particularly well positioned given our Class 1 production capabilities and the fact that Cuba possesses the world’s fourth largest nickel reserves.

Cobalt

Cobalt prices experienced a significant surge in Q1 2021, rising 46% according to data collected by Fastmarkets MB. Standard grade cobalt prices on March 31 closed at US$22.75/lb, up from US$15.60/lb at the start of the quarter.

Cobalt prices since the start of 2021 largely rose on news reports that consumers in China have started to stockpile inventory to take advantage of weak prices in anticipation of stronger demand expected with accelerated growth of electric vehicle demand in the coming years. Cobalt is a key component of rechargeable batteries providing energy density and stability.

The rise of cobalt prices in Q1 also reflected improved market conditions as demand grew from sectors particularly impacted at the start of the pandemic, such as the aerospace sector and consumer electronics. During the first wave of the pandemic, cobalt prices declined to US$13.90/lb from U$15.53/lb at the start of 2020. Industry observers expect cobalt prices to continue to rise in the near term with prices forecasted to peak at US$32/lb in 2023.

The outlook for cobalt over the long term remains bullish as demand from the EV sector in China alone is expected to grow annually by 26% through 2025.

REVIEW OF OPERATIONS

Moa Joint Venture (50% interest) and Fort Site (100%)

^{(1) For additional information see the Non-GAAP measures section.
(2) Average standard grade cobalt published price per Fastmarkets MB.}

Mixed sulphides production at the Moa JV in Q1 2021 was 3,931 tonnes, down 2% from 4,014 tonnes produced in Q1 2020. The decline was primarily due to the negative impact of heavy rainfall on mining operations and variations in ore quality. Lower mixed sulphides production was offset by high feed inventory levels at the refinery in Fort Saskatchewan, Alberta. Weather conditions at Moa have since improved and mixed sulphides inventory continues to be replenished.

Finished nickel production in Q1 2021 totaled 4,188 tonnes, up 9% from the 3,836 tonnes produced in Q1 2020 while finished cobalt production for Q1 2021 was 477 tonnes, up 19% from the 400 tonnes produced in Q1 2020. The growth was largely attributable to high inventories of mixed sulphides at the refinery and improved refinery reliability. Finished nickel and cobalt production totals in Q1 2020 were impacted by the reduced availability of mixed sulphides due to the disruption of deliveries to the refinery caused by rail blockades in Canada and by extended transit time for shipping vessels from Cuba.

Consistent since the start of the global pandemic in February 2020, production of mixed sulphides and finished nickel and cobalt were not affected by the spread of COVID-19 in Q1 2021 largely because of additional health and safety measures implemented to protect employees, suppliers and various stakeholders at operations at Moa and at the refinery in Fort Saskatchewan.

Second quarter finished nickel and cobalt production will be impacted, however, by the annual maintenance shutdown of the refinery in Fort Saskatchewan. This year’s shutdown will be a full-facility shutdown, including all of the refinery and utility plants, that occurs once every six years. The extended interval between full-facility shutdowns reflects ongoing commitments to asset management and operational excellence measures implemented over the past several years. This year’s shutdown is expected to last approximately 11 days compared to the typical five-day annual shutdowns. Sherritt’s guidance for 2021 production, unit cost and capital spend at the Moa JV was based on a full-facility shutdown.

Sales volume for finished nickel and cobalt in Q1 2021 were up 11% and 25%, respectively, from last year. The year-over-year increase was largely due to higher production and improved market conditions as a result of economic recovery since the onset of the global pandemic.

Total Moa JV revenue in Q1 2021 was $126.3 million, up 35% from $93.5 million last year. The revenue increase was attributable to a number of factors, including higher realized nickel and cobalt prices as well as higher nickel and sales volumes, but partially offset by lower fertilizer prices and reduced fertilizer sales volumes. In Q1 2021, realized nickel and cobalt prices were up 31% and 14%, respectively, from last year. Realized prices may be impacted by the timing of deliveries and settlement against contract terms.

Mining, processing and refining (MPR) costs per pound of nickel sold for Q1 2021 were down 5% to US$5.09/lb largely due to the effect of Cuba’s unification of its currencies in lowering labour and other service costs. Lower labor costs were offset by higher sulphur costs and fuel prices, which rose 24% and 32%, respectively, from Q1 2020. MPR costs in Q1 2021 were also impacted by the purchase of sulphuric acid in anticipation of the planned sulphuric acid plant shutdown at Moa in Q2 2021 for maintenance repairs.

Net direct cash cost (NDCC) per pound of nickel sold in Q1 2021 was US$3.83/lb, down 12% from last year. The improvement was largely due to higher cobalt by-product credits and lower MPR costs than Q1 2020.

Sustaining capital spending in Q1 2021 was $4.7 million, down from $6.6 million in Q1 2020. The year-over-year decrease was due primarily to the timing of planned capital expenditures. Sherritt’s share of planned spending at the Moa JV and Fort Site in 2021 is forecasted at US$44 million, primarily earmarked for the continued replacement of mine and plant equipment.

Oil and Gas

^{(1) For additional information see the Non-GAAP measures section.}

Gross working-interest oil production in Cuba in Q1 2021 was 2,202 barrels of oil per day (BOPD), down 33% from 3,277 BOPD produced in Q1 2020. Lower production was primarily due to natural reservoir declines at Puerto Escondido/Yumuri, the absence of new development drilling, and expiration of the Puerto Escondido/Yumuri production sharing contract (PSC) on March 19, 2021.

Revenue in Q1 2021 was relatively unchanged at $7.5 million when compared to $7.1 million for Q1 2020 as a higher reference oil price offset the reduction in production.

Unit operating costs in Cuba in Q1 2021 were $20.64 per barrel, down 24% from Q1 2020 due to higher recoveries and lower labour and third-party service costs resulting from the effect of Cuba’s currency unification and the expiration of the PSC.

With the expiration of its sole production sharing contract and the absence of new development drilling, Sherritt has not provided any production, unit costs or capital spend guidance for its Oil and Gas business unit for the balance of the year due to limited near-term visibility. Sherritt continues its efforts to secure an earn-in partner for drilling and exploration activities for its concessions on Block 10 and Block 6A. Sherritt is not contemplating any further investments in drilling or exploration activities without first securing an earn-in partner.

Power

^{(1) For additional information see the Non-GAAP measures section.
(2) Gigawatt hours (GWh), Megawatt hours (MWh).}

Power production in Q1 2021 was 95 gigawatt hours (GWh) of electricity, down 38% from 153 GWh for the comparable period of 2020. The decline was due to the completion of previously deferred maintenance activities on a turbine at the Boca de Jaruco power production facility. The facility has returned to production following the maintenance shutdown.

The average-realized price in Q1 2021 was $54.81 largely unchanged from Q1 2020. The modest variance was primarily due to fluctuations of the Canadian currency relative to the U.S. dollar.

Revenue in Q1 2021 totaled $5.9 million, down 37% from $9.4 million for last year primarily due to lower power production as a result of scheduled maintenance activities.

Joe Racanelli, Director of Investor Relations
Telephone: (416) 935-2457
Toll-free: 1 (800) 704-6698
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

• Net Sales of $588 million
• Net Income of $120 million, 20% of Net Sales
• Adjusted EBITDA of $222 million, 38% of Net Sales
• Diluted EPS of $1.07
• Company raises full year 2021 net sales guidance to $2,325 to $2,475 million

INDIANAPOLIS--(BUSINESS WIRE)--Allison Transmission Holdings Inc. (NYSE: ALSN), a leading designer and manufacturer of vehicle propulsion solutions for commercial and defense vehicles, the largest global manufacturer of medium- and heavy-duty fully automatic transmissions, and a leader in electrified propulsion systems, today reported net sales for the first quarter of $588 million, a 10 percent increase from the fourth quarter of 2020 and an 8 percent decrease from the same period in 2020, as the recovery in customer demand and the global economy that began in the second half of 2020 continued through the first quarter of 2021.

Net income for the quarter was $120 million. Diluted EPS for the quarter was $1.07. Adjusted EBITDA, a non-GAAP financial measure, for the quarter was $222 million. Net cash provided by operating activities for the quarter was $128 million. Adjusted free cash flow, a non-GAAP financial measure, for the quarter was $107 million.

David S. Graziosi, President and Chief Executive Officer of Allison Transmission commented, “I would like to once again express my deep gratitude to Allison’s employees, customers, suppliers and communities for their continued dedication and resilience during this critical period. Despite the severe disruptions to global supply chains that are currently impacting our end markets, customer demand is improving and the Allison team continues its tireless efforts to fulfill the Allison promise. I am extremely proud of Allison’s extended family and the commitment demonstrated every day.”

Graziosi continued, “Thanks to improving customer demand and a resilient outlook, we are increasing our full year 2021 net sales guidance from a range of $2,265 to $2,415 million to $2,325 to $2,475 million. We also continue to fund significant investments in engineering – research and development and capital expenditures to further position Allison to capitalize on meaningful growth opportunities across all of our end markets. And finally during the first quarter, we continued our well-defined approach to capital allocation by settling approximately $96 million of share repurchases, or over 2 percent of outstanding shares, and increased the quarterly dividend from $0.17 to $0.19 per share.”

First Quarter Net Sales by End Market

First Quarter Highlights

North America On-Highway end market net sales were down 9 percent from the same period in 2020 due to the continued effects of the pandemic, and up 12 percent on a sequential basis principally driven by improving demand for last mile delivery, regional haul and vocational trucks.

North America Off-Highway end market net sales were down $6 million from the same period in 2020 principally driven by lower demand for hydraulic fracturing applications and up $1 million sequentially.

Defense end market net sales were up 13 percent from the same period in 2020 and up 2 percent on a sequential basis, in both cases principally driven by higher demand for Tracked vehicle applications.

Outside North America On-Highway end market net sales were up 17 percent from the same period in 2020 and up 9 percent sequentially, in both cases principally driven by higher demand in Asia.

Outside North America Off-Highway end market net sales were down $11 million from the same period in 2020 and up $5 million on a sequential basis, in both cases principally driven by fluctuations in demand in the energy sector.

Service Parts, Support Equipment & Other end market net sales were down 12 percent from the same period in 2020 principally driven by lower demand for North America service parts and up 3 percent sequentially principally driven by higher demand for aluminum die cast component volume, support equipment and North America Off-Highway service parts.

Gross profit for the quarter was $291 million, a decrease of 11 percent from $326 million for the same period in 2020. Gross margin for the quarter was 49.5 percent, a decrease of 170 basis points from a gross margin of 51.2 percent for the same period in 2020. The decrease in gross profit was principally driven by lower net sales and unfavorable material costs partially offset by price increases on certain products.

Selling, general and administrative expenses for the quarter were $73 million, a decrease of $2 million from $75 million for the same period in 2020. The decrease was principally driven by lower commercial activities spending and lower intangible amortization expense.

Engineering – research and development expenses for the quarter were $38 million, an increase of $2 million from $36 million for the same period in 2020. The increase was principally driven by the intra-year timing of product initiatives spending.

Net income for the quarter was $120 million, a decrease of $19 million from $139 million for the same period in 2020. The decrease was principally driven by lower gross profit partially offset by lower interest expense, as a result of the refinancing of our long-term debt in November 2020.

Net cash provided by operating activities was $128 million, a decrease of $20 million from $148 million for the same period in 2020. The decrease was principally driven by higher operating working capital requirements and lower gross profit partially offset by lower cash incentive compensation expense and lower cash income taxes.

First Quarter Non-GAAP Financial Measures

Adjusted EBITDA for the quarter was $222 million, a decrease of $35 million from $257 million for the same period in 2020. The decrease in Adjusted EBITDA was principally driven by lower gross profit and increased incentive compensation expense partially offset by lower commercial activities spending.

Adjusted free cash flow for the quarter was $107 million, a decrease of $20 million from $127 million for the same period in 2020. The decrease was driven by lower net cash provided by operating activities.

Full Year 2021 Guidance Update

Allison expects 2021 Net Sales in the range of $2,325 to $2,475 million, Net Income in the range of $395 to $465 million, Adjusted EBITDA in the range of $795 to $885 million, Net Cash Provided by Operating Activities in the range of $585 to $655 million, Adjusted Free Cash Flow in the range of $415 to $475 million and Capital Expenditures in the range of $170 to $180 million.

Our 2021 net sales guidance reflects higher demand in the global On-Highway, Service Parts, Support Equipment & Other and North America Off-Highway end markets as a result of the ongoing global economic recovery and price increases on certain products.

Conference Call and Webcast

The company will host a conference call at 5:00 p.m. ET on Wednesday, April 28 to discuss its first quarter 2021 results. The dial-in phone number for the conference call is 1-877-425-9470 and the international dial-in number is 1-201-389-0878. A live webcast of the conference call will also be available online at http://ir.allisontransmission.com.

For those unable to participate in the conference call, a replay will be available from 8:00 p.m. ET on April 28 until 11:59 p.m. ET on May 5. The replay dial-in phone number is 1-844-512-2921 and the international replay dial-in number is 1-412-317-6671. The replay passcode is 13718729.

About Allison Transmission

Allison Transmission (NYSE: ALSN) is the world’s largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, as well as a supplier of commercial vehicle propulsion solutions, including electric hybrid and fully electric propulsion systems. Allison products are used in a wide variety of applications, including on-highway trucks (distribution, refuse, construction, fire and emergency), buses (school, transit and coach), motorhomes, off-highway vehicles and equipment (energy, mining and construction applications) and defense vehicles (wheeled and tracked). Founded in 1915, the company is headquartered in Indianapolis, Indiana, USA. With a market presence in more than 80 countries, Allison has regional headquarters in the Netherlands, China and Brazil with manufacturing facilities in the U.S., Hungary and India. Allison also has approximately 1,400 independent distributor and dealer locations worldwide. For more information, visit allisontransmission.com.

Forward-Looking Statements

This press release contains forward-looking statements. All statements other than statements of historical fact contained in this press release are forward-looking statements, including all statements regarding future financial results. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plans,” “project,” “anticipate,” “believe,” “estimate,” “predict,” “intend,” “forecast,” “could,” “potential,” “continue” or the negative of these terms or other similar terms or phrases. Forward-looking statements are not guarantees of future performance and involve known and unknown risks. Factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made include, but are not limited to: the duration and spread of the COVID-19 pandemic, including new variants of the virus and the pace and availability of vaccines, mitigating efforts deployed by government agencies and the public at large, and the overall impact from such outbreak on economic conditions, financial market volatility and our business, including but not limited to the operations of our manufacturing and other facilities, our supply chain, our distribution processes and demand for our products and the corresponding impacts to our net sales and cash flow; increases in cost, disruption of supply or shortage of raw materials or components used in our products, including as a result of the COVID-19 pandemic; risks related to our substantial indebtedness; our participation in markets that are competitive; the highly cyclical industries in which certain of our end users operate; uncertainty in the global regulatory and business environments in which we operate; our ability to prepare for, respond to and successfully achieve our objectives relating to technological and market developments, competitive threats and changing customer needs; the concentration of our net sales in our top five customers and the loss of any one of these; the failure of markets outside North America to increase adoption of fully-automatic transmissions; the success of our research and development efforts, the outcome of which is uncertain; U.S. and foreign defense spending; risks associated with our international operations, including increased trade protectionism; general economic and industry conditions; the discovery of defects in our products, resulting in delays in new model launches, recall campaigns and/or increased warranty costs and reduction in future sales or damage to our brand and reputation; our ability to identify, consummate and effectively integrate acquisitions; labor strikes, work stoppages or similar labor disputes, which could significantly disrupt our operations or those of our principal customers; our intention to pay dividends and repurchase shares of our common stock and other risks and uncertainties associated with our business described in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All information is as of the date of this press release, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in expectations.

Use of Non-GAAP Financial Measures

This press release contains information about Allison’s financial results and forward-looking estimates of financial results which are not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures at the end of this press release. Non-GAAP financial measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures of other companies.

We use Adjusted EBITDA and Adjusted EBITDA as a percent of net sales to measure our operating profitability. We believe that Adjusted EBITDA and Adjusted EBITDA as a percent of net sales provide management, investors and creditors with useful measures of the operational results of our business and increase the period-to-period comparability of our operating profitability and comparability with other companies. Adjusted EBITDA as a percent of net sales is also used in the calculation of management’s incentive compensation program. The most directly comparable GAAP measure to Adjusted EBITDA is Net income. The most directly comparable GAAP measure to Adjusted EBITDA as a percent of net sales is Net Income as a percent of net sales. Adjusted EBITDA is calculated as the earnings before interest expense, income tax expense, amortization of intangible assets, depreciation of property, plant and equipment and other adjustments as defined by Allison Transmission, Inc.’s, the Company’s wholly-owned subsidiary, Second Amended and Restated Credit Agreement. Adjusted EBITDA as a percent of net sales is calculated as Adjusted EBITDA divided by net sales.

We use Adjusted Free Cash Flow to evaluate the amount of cash generated by our business that, after the capital investment needed to maintain and grow our business and certain mandatory debt service requirements, can be used for the repayment of debt, stockholder distributions and strategic opportunities, including investing in our business. We believe that Adjusted Free Cash Flow enhances the understanding of the cash flows of our business for management, investors and creditors. Adjusted Free Cash Flow is also used in the calculation of management’s incentive compensation program. The most directly comparable GAAP measure to Adjusted Free Cash Flow is Net cash provided by operating activities. Adjusted Free Cash Flow is calculated as Net cash provided by operating activities, after additions of long-lived assets.

Attachments

• Condensed Consolidated Statements of Operations
• Condensed Consolidated Balance Sheets
• Condensed Consolidated Statements of Cash Flows
• Reconciliation of GAAP to Non-GAAP Financial Measures
• Reconciliation of GAAP to Non-GAAP Financial Measures for Full Year Guidance