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Getinge launches NICCI – the latest innovation in Advanced Hemodynamic Monitoring

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– NICCI is Getinge’s latest innovation in Advanced Hemodynamic Monitoring, providing continuous and noninvasive hemodynamic insights to reduce the risk of severe complications for patients with low blood pressure

GOTHENBURG, Sweden, Oct. 26, 2020 /PRNewswire/ — Blood pressure is one of the most important variables evaluated during almost every surgical intervention, but recent studies[1] show that fluctuations in blood pressure may be missed due to standard intermittent readings.

These occurring blood pressure drops, called hypotensions, result in complications which can get severe and even life threatening. They can however be reduced by continuous, noninvasive blood pressure monitoring. That’s why Getinge launches NICCI, the latest innovation in Advanced Hemodynamic Monitoring, providing continuous and noninvasive hemodynamic insights. It has already been awarded with the Red Dot Award 2020 for its design.

"With NICCI, hemodynamic monitoring has never been easier. While measuring continuously and non-invasively, NICCI provides a complete picture of the patient’s individual hemodynamic status – ensuring the medical staff that they never miss a beat," says Clemens Brühl, Head of Product Management Advanced Patient Monitoring at Getinge.

With dynamic parameters like cardiac index (CI), stroke volume variation (SVV) and pulse pressure variation (PPV) NICCI guides individual treatment decisions for example related to Goal Directed Fluid Therapy (GDFT).

"It has a sensor that comes in three sizes, containing two finger cuffs that perform an automatically alternating continuous measurement from one finger to the other after no more than an hour. This enables continuous use of NICCI for up to 72 hours," explains Clemens Brühl.

He adds:

"The easy click mechanism allows a fast setup and there are smart design elements such as an integrated cable storage and quick access keys to allow a simple handling."

NICCI is based on the Continous Noninvasive Arterial Pressure Technology (CNAP).

NICCI allows the anesthesiologist to assess the patients’ hemodynamic status even before induction of anesthesia and after surgery. Main application area is before, during and after surgery as well as in post-operative care units, but also emergency rooms and cath-labs.

Learn more about NICCI >>

Discover facts and figures on hypotension >>

The availability of NICCI depends on regional regulatory approval status. If you have questions, please reach out to your local Getinge representative.

Source:

[1]  https://www.getinge.com/int/insights-results/optimized-clinical-treatment/advanced-patient-monitoring/reduce-intraoperative-hypotension/hypotension-facts-and-figures

CONTACT:

Media contact:

Anna Appelqvist, Vice President Corporate Communications
Phone: +46-(0)10-335-5906
E-mail: [email protected]   

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Getinge launches NICCI – the latest innovation in Advanced Hemodynamic Monitoring

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The Salvation Army Australia Boosts Relief Capabilities with Business Spend Management

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SAN MATEO, Calif., Nov. 30, 2020 /PRNewswire/ — COVID-19 has impacted nearly every sector in almost every country in the world, resulting in increased humanitarian needs as people struggle to find work, food, and shelter. During these challenging times, The Salvation Army Australia turned to Coupa (NASDAQ: COUP) to help meet its mission of ensuring that every effort and resource is used for greatest effect.

The Salvation Army Australia has a strategic vision and capacity for innovation that is a perfect fit with Coupa's mission of making spend a transformational asset for every company, everywhere. With the increased need to make donations go further, The Salvation Army knew it must invest in technology that provides the visibility, control, and savings required to support people in need.

“Every $125 of savings allows us to provide one night of emergency accommodation and support for one person,” said Ian Girvan, general manager of Strategic Sourcing and Procurement at The Salvation Army Australia Territory. “COVID-19 has increased the urgency for us to focus on cost containment and driving efficiencies across our organization, and to do that we knew we needed a strong technology partner. Coupa's easy-to-use platform will ensure quick adoption across our employees so more of our personnel and financial resources can support our frontline mission efforts.”

The Salvation Army has always been extremely careful in how its funds are allocated, and COVID-19 has heightened the need for additional visibility and control over its spend as it looks to offer more aid with less resources. In the short term, Coupa will help digitize the organization's expense processes ensuring the right level of visibility and control of its spend.

“The global pandemic has created a growing population of people in need who require the critical support and resources made available by relief organizations such as The Salvation Army,” said Stuart O'Neill, managing director in APAC at Coupa. “It is an honor to support such a trusted brand in its efforts to respond to the increased needs of the community they serve. We want every organization to spend smarter, and when people's health and safety are the beneficiary, we're proud to support in any way we can.” 

Coupa empowers companies around the world with the visibility and control they need to manage all their business spend in one place. To learn more, visit https://www.coupa.com/.

About Coupa Software

Coupa empowers companies around the world with the visibility and control they need to spend smarter and safer. To learn more about how Coupa can help you spend smarter, visit www.coupa.com. Read more on the Coupa Blog or follow @Coupa on Twitter.

 

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SOURCE Coupa Software

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Golub Capital BDC, Inc. Announces Fiscal Year 2020 Fourth Quarter Financial Results and Declares Fiscal Year 2021 First Quarter Distribution of $0.29 Per Share

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NEW YORK, Nov. 30, 2020 /PRNewswire/ — Golub Capital BDC, Inc., a business development company (Nasdaq: GBDC), today announced its financial results for its fourth fiscal quarter ended September 30, 2020.

Except where the context suggests otherwise, the terms “we,” “us,” “our,” and “Company” refer to Golub Capital BDC, Inc. and its consolidated subsidiaries. “GC Advisors” refers to GC Advisors LLC, our investment adviser.

SELECTED FINANCIAL HIGHLIGHTS

(in thousands, expect per share data)

September 30, 2020

June 30, 2020

Investment portfolio, at fair value

$

4,238,210

$

4,250,370

Total assets

$

4,444,284

$

4,391,720

Net asset value per share

$

14.33

$

14.05

Quarter Ended

September 30, 2020

June 30, 2020

Net investment income per share

$

0.23

$

0.23

Amortization of purchase premium per share

$

0.05

$

0.05

Adjusted net investment income per share1

$

0.28

$

0.28

Net realized/unrealized gain/(loss) per share

$

0.34

$

0.71

Reversal of realized / unrealized loss resulting from the amortization of the purchase premium per share

$

(0.05)

$

(0.05)

Adjusted net realized/unrealized gain/(loss) per share1

$

0.29

$

0.66

Earnings/(loss) per share

$

0.57

$

0.93

Retroactive adjustment to per share data resulting from the rights offering

$

$

0.01

Adjusted earnings/(loss) per share1

$

0.57

$

0.94

Net asset value per share

$

14.33

$

14.05

Distributions paid per share

$

0.29

$

0.29

1  

On September 16, 2019, the Company completed its acquisition of Golub Capital Investment Corporation (“GCIC”). The merger was accounted for under the asset acquisition method of accounting in accordance with Accounting Standards Codification 805-50, Business Combinations — Related Issues. Under asset acquisition accounting, where the consideration paid to GCIC's stockholders exceeded the relative fair values of the assets acquired, the premium paid by the Company was allocated to the cost of the GCIC assets acquired by the Company pro-rata based on their relative fair value. Immediately following the acquisition of GCIC, the Company recorded its assets at their respective fair values and, as a result, the purchase premium allocated to the cost basis of the GCIC assets acquired was immediately recognized as unrealized depreciation on the Company's Consolidated Statement of Operations. The purchase premium allocated to investments in loan securities acquired from GCIC will amortize over the life of the loans through interest income with a corresponding reversal of the unrealized depreciation on such loans acquired through their ultimate disposition. The purchase premium allocated to investments in equity securities will not amortize over the life of the equity securities through interest income and, assuming no subsequent change to the fair value of the GCIC equity securities acquired and disposition of such equity securities at fair value, the Company will recognize a realized loss with a corresponding reversal of the unrealized depreciation upon disposition of the GCIC equity securities acquired.

As a supplement to U.S. generally accepted accounting principles (“GAAP”) financial measures, the Company is providing the following non-GAAP financial measures that it believes are useful for the reasons described below:

“Adjusted Net Investment Income” and “Adjusted Net Investment Income Per Share” – excludes the amortization of the purchase premium and the accrual for the capital gain incentive fee required under GAAP (including the portion of such accrual that is not payable under the Company's investment advisory agreement) from net investment income calculated in accordance with GAAP.

“Adjusted Net Realized and Unrealized Gain/(Loss)” and “Adjusted Net Realized and Unrealized Gain/(Loss) Per Share” – excludes the unrealized loss resulting from the purchase premium write-down and the corresponding reversal of the unrealized loss from the amortization of the premium from the determination of realized and unrealized gain/(loss) in accordance with GAAP.

“Adjusted Net Income/(Loss)” and “Adjusted Earnings/(Loss) Per Share” – calculates net income and earnings per share based on Adjusted Net Investment Income and Adjusted Net Realized and Unrealized Gain/(Loss). “Adjusted earnings per share” also excludes the impact of the retroactive adjustment to the weighted average shares calculation due to the bonus element of the rights offering and the resulting impact on earnings per share.

The Company believes that excluding the financial impact of the purchase premium write down in the above non-GAAP financial measures is useful for investors as it is a non-cash expense/loss resulting from the acquisition of GCIC and is one method the Company uses to measure its financial condition and results of operations. In addition, the Company believes excluding the accrual of the capital gain incentive fee in the above non-GAAP financial measures is useful as it includes the portion of such accrual that is not contractually payable under the terms of the Company's investment advisory agreement with GC Advisors.  Finally, the Company believes excluding the impact of the retroactive adjustment to the weighted average shares calculation due to the bonus element of the rights offering and the resulting impact on per share data is useful for investors as it presents per share financial data that is consistent with what was previously reported.

Fourth Fiscal Quarter 2020 Highlights

  • Net investment income per share for each of the quarters ended September 30, 2020 and June 30, 2020 was $0.23. Excluding $0.05 per share in purchase premium amortization from the GCIC acquisition, Adjusted Net Investment Income Per Share1 for each of the quarters ended September 30, 2020 and June 30, 2020 was $0.28.
  • Net realized and unrealized gain per share for the quarter ended September 30, 2020 was $0.34. Adjusted Net Realized and Unrealized Gain Per Share1 was $0.29 when excluding the $0.05 per share reversal of net realized loss and unrealized depreciation resulting from the amortization of purchase premium. The Adjusted Net Realized and Unrealized Gain Per Share1 for the quarter ended September 30, 2020 primarily resulted from a partial reversal in unrealized depreciation in the fair value of some of our portfolio company investments that was recognized during the quarter ended March 31, 2020 primarily due to the adverse economic effects of the COVID-19 pandemic. The partial reversal in unrealized depreciation for the quarter ended September 30, 2020 was primarily attributable to the strong rebound in the U.S. economy from the heavily COVID-impacted quarter ended June 30, 2020, portfolio companies that generally continued to perform better than expected during the period, especially those in COVID-impacted sub-sectors, and private equity sponsors that have generally continued to step up to support their portfolio companies. For additional analysis refer to the Quarter Ended 9.30.20 Investor Presentation available on the Investor Resources link on the homepage of Company's website (www.golubcapitalbdc.com) under Events/Presentations. The Investor Presentation was also filed with the Securities and Exchange Commission as an Exhibit to a Form 8-K. These results compare to net realized and unrealized gain per share of $0.71 during the quarter ended June 30, 2020. Adjusted Net Realized and Unrealized Gain Per Share1 for the quarter ended June 30, 2020 was $0.66 when excluding the $0.05 per share reversal of net realized loss and unrealized loss resulting from the amortization of purchase premium.
  • Earnings per share for the quarter ended September 30, 2020 was $0.57 as compared to $0.93 for the quarter ended June 30, 2020. Adjusted Earnings Per Share1 for the quarter ended September 30, 2020 was $0.57 as compared to $0.94 for the quarter ended June 30, 2020.
  • Net asset value per share increased to $14.33 at September 30, 2020 from $14.05 at June 30, 2020.
  • On September 29, 2020, we paid a quarterly distribution of $0.29 per share and on November 20, 2020, our board of directors declared a quarterly distribution of $0.29 per share, which is payable on December 30, 2020 to stockholders of record as of December 11, 2020.

Portfolio and Investment Activities

As of September 30, 2020, the Company had investments in 254 portfolio companies with a total fair value of $4,238.2 million. This compares to the Company's portfolio as of June 30, 2020, as of which date the Company had investments in 254 portfolio companies with a total fair value of $4,250.4 million. Investments in portfolio companies as of September 30, 2020 and June 30, 2020 consisted of the following:

As of September 30, 2020

As of June 30, 2020

Investments

Percentage of

Investments

Percentage of

at Fair Value

Total

at Fair Value

Total

Investment Type

(In thousands)

Investments

(In thousands)

Investments

Senior secured

$

640,213

15.1

%

$

604,452

14.2

%

One stop

3,485,585

82.2

3,548,148

83.5

Junior debt*

20,215

0.5

20,978

0.5

Equity

92,197

2.2

76,792

1.8

Total

$

4,238,210

100.0

%

$

4,250,370

100.0

%

*

Junior debt is comprised of subordinated debt and second lien loans. 

The following table shows the asset mix of our new investment commitments for the three months ended September 30, 2020:

For the three months ended September 30, 2020

New Investment

Commitments

Percentage of

(In thousands)

Commitments

Senior secured

$

38,720

27.4

%

One stop

99,982

70.8

Equity

2,546

1.8

Total new investment commitments

$

141,248

100.0

%

Total investments in portfolio companies at fair value were $4,238.2 million at September 30, 2020.  As of September 30, 2020, total assets were $4,444.3 million, net assets were $2,396.2 million and net asset value per share was $14.33

Consolidated Results of Operations

For the fourth fiscal quarter of 2020, the Company reported GAAP net income and Adjusted Net Income1 of $94.6 million or $0.57 per share. GAAP net investment income was $39.3 million or $0.23 per share and Adjusted Net Investment Income1 was $47.2 million or $0.28 per share. GAAP net realized and unrealized gain was $55.3 million or $0.34 per share and Adjusted Realized and Unrealized Gain/(Loss)1 was $47.4 million or $0.29 per share.

Net income can vary substantially from period to period due to various factors, including the level of new investment commitments, the recognition of realized gains and losses and unrealized appreciation and depreciation, including as a result of the effects of the COVID-19 pandemic, and as a result of the acquisition of GCIC. As a result, quarterly comparisons of net income may not be meaningful. 

Liquidity and Capital Resources

The Company's liquidity and capital resources are derived from the Company's debt securitizations (also known as collateralized loan obligations, or CLOs), U.S. Small Business Administration, or SBA, debentures, revolving credit facilities and cash flow from operations. The Company's primary uses of funds from operations include investments in portfolio companies and payment of fees and other expenses that the Company incurs. The Company has used, and expects to continue to use, its debt securitizations, SBA debentures, revolving credit facilities, proceeds from its investment portfolio and proceeds from offerings of its securities and its dividend reinvestment plan to finance its investment objectives.

As of September 30, 2020, we had cash, cash equivalents and foreign currencies of $25.1 million, restricted cash, cash equivalents and foreign currencies of $159.3 million and $2,023.7 million of debt outstanding. As of September 30, 2020, subject to leverage and borrowing base restrictions, we had approximately $283.6 million of remaining commitments and $106.0 million of availability, in the aggregate, on our revolving credit facilities with various banks. In addition, as of September 30, 2020, we had $100.0 million of remaining commitments and availability on our unsecured line of credit with GC Advisors and $29.0 million of unfunded debenture commitments available to be drawn, subject to customary SBA regulatory requirements.

On September 30, 2020, we priced a $400.0 million unsecured notes offering. The offering closed on October 2, 2020 and proceeds from the offering were used to pay down existing debt, including a full repayment of the $153.5 million outstanding as of September 30, 2020 on our revolving credit facility with Deutsche Bank. Following such repayment, the agreements governing the Deutsche Bank credit facility were terminated.

Portfolio and Asset Quality

GC Advisors regularly assesses the risk profile of each of the Company's investments and rates each of them based on an internal system developed by Golub Capital and its affiliates. This system is not generally accepted in our industry or used by our competitors. It is based on the following categories, which we refer to as GC Advisors' internal performance ratings:

Internal Performance Ratings

Rating

Definition

5

Involves the least amount of risk in our portfolio. The borrower is performing above expectations, and the trends and risk factors are generally favorable.

4

Involves an acceptable level of risk that is similar to the risk at the time of origination. The borrower is generally performing as expected, and the risk factors are neutral to favorable.

3

Involves a borrower performing below expectations and indicates that the loan's risk has increased somewhat since origination. The borrower could be out of compliance with debt covenants; however, loan payments are generally not past due.

2

Involves a borrower performing materially below expectations and indicates that the loan's risk has increased materially since origination. In addition to the borrower being generally out of compliance with debt covenants, loan payments could be past due (but generally not more than 180 days past due).

1

Involves a borrower performing substantially below expectations and indicates that the loan's risk has substantially increased since origination. Most or all of the debt covenants are out of compliance and payments are substantially delinquent. Loans rated 1 are not anticipated to be repaid in full and we will reduce the fair market value of the loan to the amount we anticipate will be recovered.

Our internal performance ratings do not constitute any rating of investments by a nationally recognized statistical rating organization or represent or reflect any third-party assessment of any of our investments.  For additional analysis on the Company's internal performance ratings as of September 30, 2020 and the impact from COVID-19, please refer to the Quarter Ended 9.30.2020 Investor Presentation available on Investors Resources link on the homepage of the Company's website (www.golubcapitalbdc.com) under Events/Presentations.  

The following table shows the distribution of the Company's investments on the 1 to 5 internal performance rating scale at fair value as of September 30, 2020 and June 30, 2020:

September 30, 2020

June 30, 2020

Internal

Investments

Percentage of

Investments

Percentage of

Performance

at Fair Value

Total

at Fair Value

Total

Rating

(In thousands)

Investments

(In thousands)

Investments

5

$

257,409

6.1

%

$

46,375

1.1

%

4

3,085,610

72.8

3,184,929

74.9

3

836,560

19.7

948,227

22.3

2

57,754

1.4

70,218

1.7

1

877

0.0

*

621

0.0

*

Total

$

4,238,210

100.0

%

$

4,250,370

100.0

%

*

Represents an amount less than 0.1%.

1

See footnote 1 to 'Selected Financial Highlights' above.

Conference Call

The Company will host an earnings conference call at 11:00 a.m. (Eastern Time) on Tuesday, December 1, 2020 to discuss the quarterly financial results. All interested parties may participate in the conference call by dialing (800) 771-6759 approximately 10-15 minutes prior to the call; international callers should dial (212) 231-2912. Participants should reference Golub Capital BDC, Inc. when prompted. For a slide presentation that we intend to refer to on the earnings conference call, please visit the Investor Resources link on the homepage of our website (www.golubcapitalbdc.com) and click on the Quarter Ended 9.30.20 Investor Presentation under Events/Presentations. An archived replay of the call will be available shortly after the call until 1:00 p.m. (Eastern Time) on December 31, 2020. To hear the replay, please dial (800) 633-8284. International dialers, please dial (402) 977-9140. For all replays, please reference program ID number 21970317.

 

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Financial Condition

(In thousands, except share and per share data)

September 30, 2020

June 30, 2020

Assets

(audited)

(unaudited)

Investments, at fair value (cost of $4,398,900 and $4,474,722, respectively)

$

4,238,210

$

4,250,370

Cash and cash equivalents

24,569

29,266

Unrestricted foreign currencies (cost of $567 and $1,173, respectively)

567

1,173

Restricted cash and cash equivalents

157,566

87,584

Restricted foreign currencies (cost of $1,727 and $2,070, respectively)

1,728

2,070

Unrealized appreciation on forward currency contracts

720

Interest receivable

17,263

18,589

Other assets

4,381

1,948

Total Assets

$

4,444,284

$

4,391,720

Liabilities

Debt

$

2,023,698

$

2,008,572

Less unamortized debt issuance costs

5,896

4,597

Debt less unamortized debt issuance costs

2,017,802

2,003,975

Unrealized depreciation on forward currency contracts

1,064

Interest payable

7,875

11,936

Management and incentive fees payable

17,347

17,518

Accounts payable and accrued expenses

4,003

8,238

Total Liabilities

2,048,091

2,041,667

Net Assets

Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of September 30, 2020 and June 30, 2020, respectively.

Common stock, par value $0.001 per share, 200,000,000 shares authorized, 167,259,511 issued and outstanding as of September 30, 2020 and June 30, 2020, respectively.

167

167

Paid in capital in excess of par

2,624,608

2,631,233

Distributable earnings

(228,582)

(281,347)

Total Net Assets

2,396,193

2,350,053

Total Liabilities and Total Net Assets

$

4,444,284

$

4,391,720

Number of common shares outstanding

167,259,511

167,259,511

Net asset value per common share

$

14.33

$

14.05

 

 

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Operations

(In thousands, except share and per share data)

Three months ended

September 30, 2020

June 30, 2020

(unaudited)

(unaudited)

Investment income

Interest income

$

79,107

$

80,097

GCIC acquisition purchase price premium amortization

(7,925)

(7,558)

Dividend income

111

Fee income

720

671

Total investment income

72,013

73,210

Expenses

Interest and other debt financing expenses

13,514

17,516

Base management fee

14,742

14,437

Incentive fee

999

3,081

Professional fees

1,420

1,324

Administrative service fee

1,576

1,613

General and administrative expenses

448

171

Total expenses

32,699

38,142

Net investment income

39,314

35,068

Net gain (loss) on investment transactions

Net realized gain (loss) from:

Investments

(4,572)

(4,925)

Foreign currency transactions

5

1

Net realized gain (loss) in investment transactions

(4,567)

(4,924)

Net change in unrealized appreciation (depreciation) from:

Investments

63,664

113,432

Translation of assets and liabilities in foreign currencies

(1,980)

(1,222)

Forward currency contracts

(1,785)

(211)

Net change in unrealized appreciation (depreciation) on investment transactions

59,899

111,999

Net gain (loss) on investments

55,332

107,075

Net increase (decrease) in net assets resulting from operations

$

94,646

$

142,143

Per Common Share Data

Basic and diluted earnings (loss) per common share

$

0.57

$

0.93

Dividends and distributions declared per common share

$

0.29

$

0.29

Basic and diluted weighted average common shares outstanding

167,259,511

153,184,678

 

ABOUT GOLUB CAPITAL BDC, INC.

Golub Capital BDC, Inc. is an externally-managed, non-diversified closed-end management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. Golub Capital BDC Inc. invests primarily in one-stop and other senior secured loans of U.S. middle-market companies that are often sponsored by private equity investors. Golub Capital BDC, Inc.'s investment activities are managed by its investment adviser, GC Advisors LLC, an affiliate of the Golub Capital group of companies (“Golub Capital”).

ABOUT GOLUB CAPITAL

Golub Capital is a market-leading, award-winning direct lender and credit asset manager, with over $30 billion of capital under management. Golub Capital specializes in delivering reliable, creative and compelling financing solutions to middle market companies backed by private equity sponsors. The firm's credit expertise also forms the foundation of its Late Stage Lending business and its Broadly Syndicated Loan investment program. Across its activities, Golub Capital nurtures long-term, win-win partnerships that inspire repeat business from its private equity sponsor clients and investors. Founded over 25 years ago, Golub Capital today has over 500 employees and lending offices in Chicago, New York, and San Francisco. For more information, please visit golubcapital.com. 

FORWARD-LOOKING STATEMENTS

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those expressed or implied in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. Golub Capital BDC, Inc. undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

 

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SOURCE Golub Capital BDC, Inc.

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4Front Announces Third Quarter 2020 Results and Business Update

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  • Q3 Systemwide Pro Forma Revenue increased 18% quarter-over-quarter to $22.3 million, 170% year-over-year – Company became cash flow positive from operations in August
  • Company sale leaseback transaction with Innovative Industrial Properties scheduled to close within two weeks. As a result of close, together with proceeds from the recently closed bought deal financing, the Company will have $16 million of cash and $43 million in long-term debt
  • Company is in the process of acquiring acreage to construct up to 210,000 square feet of flowering canopy and supporting manufacturing facility in Cook County, Illinois to exponentially increase capacity in state
  • Initial guidance for 2021 with Systemwide Pro Forma Revenue of $170-180 million and Adjusted EBITDA of $40-50 million
  • The Company's existing projects at maturity represent a long-term revenue and EBITDA opportunity upwards of $650 million and $250 million

PHOENIX, Nov. 30, 2020 /PRNewswire/ – 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (“4Front” or the “Company“) today announced its financial results for the third quarter of 2020. All financial information is presented in U.S. dollars unless otherwise indicated.

Third Quarter 2020 Financial Results Highlights

  • Systemwide Pro Forma Revenue for the third quarter 2020 increased 18% quarter-over-quarter to $22.3 million
  • IFRS Sales for the third quarter of 2020 increased by 25% quarter-over-quarter to $12.4 million
  • Adjusted EBITDA for the third quarter was $3.7 million

Business Updates and Developments

Q3 2020 Systemwide Pro Forma Revenue increased 18% quarter over quarter to $22.3 million.  Robust revenue trends continued across the portfolio led by the launch of recreational sales in Massachusetts in the quarter and the re-opening of Mission South Chicago in late July.  Washington state experienced record sales in the quarter while increasing prices.  The Company achieved positive operating cash flow beginning in the month of August 2020 and is poised to show significant operating leverage in 2021.

Strong balance sheet supports continued growth in 2020 through 2021.  As of September 30, 2020, 4Front's balance sheet had cash and equivalents of $8.5 million with total debt of $76.5 million (excluding in-the-money convertible debt of $5.8 million). On November 23, 2020, the Company closed an oversubscribed bought deal led by Beacon Securities for US$13.2 million.  The Company also announced it entered into definitive purchase and sale agreements with an affiliate of Innovative Industrial Properties, Inc., providing for the sale and leaseback of 4Front's cultivation and production facilities in Tumwater, Washington and Georgetown, Massachusetts. The all-cash sale price of $30 million is on-track to close by mid-December and will be used by the Company to pay down the outstanding senior secured debt obligation to affiliates of Gotham Green Partners. As of November 30, 2020, pro forma for the close of the pending sale-leaseback transaction and including proceeds from the recently closed bought deal financing, the Company will have approximately $16 million of cash and $43 million of long-term debt due May 2024.

Company is finalizing plans to exponentially expand its cultivation and manufacturing presence in Illinois.  The Company has one of 20 cultivation licenses in Illinois that allows for 210,000 square feet of flowering canopy and is currently acquiring acreage for construction of a cultivation facility and state of the art manufacturing facility, adding significant blue sky to its already established presence in Illinois

Final stages in construction of 185,000 square foot manufacturing facility in Commerce, California underway with completion scheduled for Q2 2021.  The Company's fully funded state of the art 185,000 square foot manufacturing only facility in Commerce, California is nearing completion and should be ready to serve the $3 billion California cannabis market in Q2 2021. The project is on target to be completed in April 2021 with the Company planning for the first of its full line of edibles, tinctures and vape products to be on California retail shelves by May 2021.

Cultivation facility expansion completed in Illinois. Massachusetts facility retrofitting enters final phased approach.   The Company's expansion at its Elk Grove, Illinois cultivation facility, which will increase the flowering canopy from 3,000 to 9,072 square feet, is substantially completed on time and under budget. The retrofitting of the Company's Georgetown facility is complete and ready for the phased installation of LED lights, which are expected to increase yields by 35 – 50%.  In the quarter, weighted average annualized yields from flowering canopy across the portfolio was 319 grams per square foot.

Q4 opening of second Illinois retail location in Calumet City remains on schedule. Construction of the dispensary is substantially completed as the Company is set to open its second Illinois retail location in Calumet City (approximately one mile from the Indiana border) in December 2020.  Final inspection is scheduled for December 8 with a Grand Opening currently anticipated on December 15, 2020.  

Initial guidance for 2021 with Systemwide Pro Forma Revenue of $170-180 million and Adjusted EBITDA of $40-50 million.  This guidance is fully funded and contemplates only current operations including December opening of the Calumet City retail location plus the opening of a Brookline, Massachusetts dispensary and the Commerce production facility in May 2021.  This guidance includes facilities scheduled to open in 2021.  If such openings are delayed due to Covid-19, guidance could be negatively affected.

Management Commentary

Leo Gontmakher, CEO of 4Front, said, “We are incredibly pleased with our third quarter 2020 results that reflect the Company's laser focus on execution.  We have big plans for our platform, but it all starts with operational excellence and delivering to shareholders what we say we are going to deliver.  While we have much more to accomplish, the hard work of our team has set the table for what I expect to be an exciting year for our company in 2021. With 4Front's constant operational improvements and an expected strong year for the cannabis industry overall, we are pleased to provide Covid-qualified initial 2021 guidance of $170$180 million in Pro Forma Systemwide Revenue and $40$50 million in Adjusted EBITDA, with the longer-term opportunity in our current geographical footprint upwards of $650 million in revenue and $250 million in EBITDA.

Mr. Gontmakher added, “In addition to the strong fundamentals across our legacy markets, plus an encouraging regulatory environment, we are excited to announce the timing of our entry into California and will soon provide details about our aggressive expansion plans in Illinois, projected to be a multi-billion, medical and adult-use market.

“In summary,” said Gontmakher, “achieving robust expansion and sustained profitability through our low-cost production model has proven to be both replicable and scalable across key US cannabis markets positioning 4Front as a major MSO player. With the completion of our bought deal financing, as well as the sale-leaseback transaction, 4Front will end the year with a strong balance sheet providing the financial stability to expand the business in our key target states.”

(Please see Note Regarding Non-IFRS Measures, Reconciliation, and Discussion below.) (*Please see the Financial Statement section below, and the Company's Third Quarter 2020 Unaudited Condensed Consolidated Financial Statements and Management Discussion and Analysis (“MD&A”), available under the Company's SEDAR profile, for more information.)

Additional Details

As of the date of the MD&A, there were the equivalent of 534,177,375 Class A Subordinate Voting Shares outstanding when calculated as if all share classes were converted to Subordinate Voting Shares. For further details regarding 4Front's share structure, please see its profile at www.thecse.com.

Conference Call

The Company will also host a conference call and webcast on Monday, November 30, 2020 at 5:00 p.m. ET to review its operational and financial results and provide an update on current business trends.

To join the call, dial 1-877-407-0792 toll free from the United States or Canada or 1-201-689-8263 if dialing from outside those countries. The webcast can be accessed at this link.

The call will be available for replay until Monday, December 7, 2020. To access the telephone replay, dial 1-844-512-2921 toll free from the United States and Canada, or 1-412-317-6671 if dialing from outside those countries, and use this replay pin number: 13712867.

Financial Statements

The condensed consolidated interim financial statements for the three and nine months ended September 30, 2020 and 2019, have been prepared in accordance with IAS 34 – Interim Financial Reporting. These statements have not been reviewed by an auditor.

4FRONT VENTURES CORP.

Formerly 4Front Holdings, LLC

Condensed Consolidated Interim Statements of Financial Position

As of September 30, 2020 and December 31, 2019 (unaudited)

Amounts expressed in thousands United States dollars unless otherwise stated

 September 30, 

 December 31, 

2020

2019

ASSETS

Current assets:

Cash 

$                8,499

$                5,789

Accounts receivable

677

677

Other receivables

325

Lease receivables

11,626

9,556

Inventory

15,666

9,138

Biological assets

2,233

2,187

Notes receivable

4,138

1,871

Prepaid expenses

1,668

2,198

Total current assets

44,507

31,741

Restricted cash

2,352

Property and equipment, net

45,565

41,822

Notes receivable 

414

1,049

Lease receivables

22,186

23,944

Intangible assets

39,197

41,442

Goodwill

28,854

33,988

Right-of-use assets

25,286

20,476

Investments

759

759

Deposits

3,135

6,346

TOTAL ASSETS

$            209,903

$            203,919

LIABILITIES AND EQUITY

LIABILITIES

Current liabilities:

Accounts payable and accrued expenses

$                5,304

$                8,138

Taxes payable

7,332

1,609

Lease liability

1,499

972

Contingent consideraton payable

2,100

750

Notes payable and accrued interest

8,026

7,382

Total current liabilities

24,261

18,851

Convertible notes

43,279

35,607

Notes payable and accrued interest

45,027

44,289

Long term notes payable

1,857

1,903

Long term accounts payable

1,600

1,600

Contingent consideration payable

3,122

4,714

Deferred tax liability

2,134

Lease liability

25,391

20,976

TOTAL LIABILITIES

146,671

127,940

Equity (Deficiency)

Equity attributable to 4Front Ventures Corp.

240,268

252,656

Reserves

35,374

25,618

Deficit

(212,410)

(202,090)

Non-controlling interest

(205)

TOTAL EQUITY (DEFICIENCY)

63,232

75,979

TOTAL LIABILITIES AND EQUITY (DEFICIENCY) 

$            209,903

$            203,919

 

4FRONT VENTURES CORP.

Formerly 4Front Holdings, LLC

Condensed Consolidated Interim Statements of Operations and Comprehensive Loss

For The Three and Nine Months Ended September 30, 2020 and 2019 (unaudited)

Amounts expressed in thousands United States dollars unless otherwise stated

Three Months Ended

Nine Months Ended

September 30, 2020

September 30, 2019

September 30, 2020

September 30, 2019

REVENUE

$                   12,410

$                     3,805

$                   32,132

$                     8,410

Cost of goods sold, sale of grown and manufactured products

(3,696)

(1,308)

(11,545)

(3,657)

Cost of goods sold, sale of purchased products

(2,365)

(1,519)

(7,211)

(2,195)

Gross profit before fair value adjustments

6,349

978

13,376

2,558

Realized fair value included in inventory sold

(457)

(256)

(1,030)

(368)

Unrealized fair value gain on biological assets

1,482

25

3,335

520

Gross profit

7,374

747

15,681

2,710

Real estate income

2,883

1,676

8,514

1,676

OPERATING EXPENSES

Selling and marketing expenses

4,158

4,493

15,975

7,699

General and administrative expenses

3,808

3,980

11,904

13,257

Depreciation and amortization

917

1,824

3,077

2,530

Equity based compensation

1,517

3,491

3,792

4,200

Total operating expenses

10,400

13,788

34,748

27,686

Loss from operations

(143)

(11,365)

(10,553)

(23,300)

Other income (expense)

Interest income

7

15

71

15

Interest expense

(5,794)

(2,728)

(12,747)

(3,851)

Accretion

274

605

Gain on sale of subsidiaries

4,729

15,940

Gain on restructuring of notes receivable

281

Change in fair value of derivative liability

3,035

3,035

Loss on investment

(518)

(518)

Other income

2,456

2,500

Foreign exchange gain (loss)

8

56

(10)

56

Total other income (expense)

(1,294)

378

6,078

1,755

Net loss before income taxes

(1,437)

(10,987)

(4,475)

(21,545)

Income tax (expense) benefit

(2,504)

12

(5,427)

(440)

Net loss from continuing operations

(3,941)

(10,975)

(9,902)

(21,985)

Net income (loss) from discontinued operations, net of taxes

32

(274)

(467)

(1,224)

Net loss

(3,909)

(11,249)

(10,369)

(23,209)

Net income (loss) attributable to non-controlling interest

37

(6)

(49)

(116)

Net loss attributable to shareholders

$                   (3,946)

$                 (11,243)

$                 (10,320)

$                 (23,093)

Basic and Diluted Loss Per Share

$                     (0.01)

$                     (0.02)

$                     (0.02)

$                     (0.06)

Weighted Average Number of Shares Outstanding, Basic and Diluted

503,793,796

466,668,216

517,323,350

382,932,216

Note Regarding Non-IFRS Measures, Reconciliation, and Discussion

In this press release, 4Front refers to certain non-IFRS financial measures such as Systemwide Pro Forma Revenue, Adjusted EBITDA These measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. 4Front defines Systemwide Pro Forma Revenue as total revenue plus revenue from entities with which the Company has a management contract, or effectively similar relationship (net of any management fee or effectively similar revenue) but does not consolidate the financial results of per IFRS 10 – Consolidated Financial Statements. 4Front considers this measure to be an appropriate indicator of the growth and scope of the business.

Adjusted EBITDA is defined by the Company as earnings before interest, taxes, depreciation and amortization less share-based compensation expense and one-time charges related to acquisition and financing related costs, excluding fair value adjustments for biological assets. 4Front considers these measures to be an important indicator of the financial strength and performance of our business.

About 4Front Ventures Corp.
4Front (CSE: FFNT) (OTCQX: FFNTF) is a national multi-state cannabis operator and retailer, with a market advantage in mass-produced, low-cost quality branded cannabis products. 4Front manufactures and distributes a portfolio of over 25 cannabis brands including Marmas, Crystal Clear, Funky Monkey, Pebbles, and the Pure Ratios wellness collection, distributed through retail outlets and their chain of strategically positioned Mission branded dispensaries.

Headquartered in Phoenix, Arizona, 4Front has operations in Illinois, Massachusetts, California, Michigan and Washington state. From plant genetics to the cannabis retail experience, 4Front's team applies expertise across the entire cannabis value chain. For more information, visit 4Front's website www.4frontventures.com.

This news release was prepared by management of 4Front Ventures, which takes full responsibility for its contents. The Canadian Securities Exchange (“CSE”) has not reviewed and does not accept responsibility for the adequacy of this news release. Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States.

Forward Looking Statements

Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in 4Front Ventures' periodic filings with securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should,” and similar expressions, are forward-looking statements.

Forward-looking statements may include, without limitation, statements related to future developments and the business and operations of 4Front Ventures, statements regarding when or if transactions will close or if/when required conditions to closing are attained, the impact of the transactions on the business of 4Front and other statements regarding future developments of the business. The closing of the transactions described in this news release is subject to customary conditions and there can be no guarantee that such transactions will close.

Although 4Front Ventures has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on satisfying closing conditions, [obtaining regulatory approvals]; and engagement in activities currently considered illegal under U.S. federal laws; change in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.

There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.

Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. 4Front Ventures disclaims any intention or obligation to update or revise such information, except as required by applicable law, and 4Front Ventures does not assume any liability for disclosure relating to any other company mentioned herein.

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/4front-announces-third-quarter-2020-results-and-business-update-301181889.html

SOURCE 4Front

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