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nVent Reports Fourth Quarter and Full-Year 2018 Financial Results

gbafNews28

nVent Electric plc (NYSE:NVT) (nVent), a global leader in electrical connection and protection solutions, today announced financial results for the fourth quarter and full-year of 2018 and provided guidance for the first quarter and full-year 2019.

Fourth quarter sales of $568 million grew 5 percent relative to the fourth quarter 2017 and grew 6 percent organically, which excludes the impact from currency fluctuations. Fourth quarter 2018 earnings per diluted share (EPS) were $0.37 while on an adjusted basis, the company had EPS of $0.45. Full-year sales of $2.2 billion grew 6 percent relative to full-year 2017 and grew 5 percent organically. Full-year 2018 EPS were $1.28 while on an adjusted basis, the company had EPS of $1.74. Segment income, adjusted net income, free cash flow and adjusted EPS are described in the attached schedules.

Fourth quarter 2018 operating income was $86 million, up from $59 million in the same quarter in 2017. On an adjusted basis, fourth quarter segment income excluding corporate and other costs was $120 million versus $117 million in 2017. Full-year 2018 operating income was $311 million versus $316 million in 2017. On an adjusted basis, segment income excluding corporate and other costs was $474 million, up 5 percent compared to full-year 2017.

Full-year net cash provided by operating activities was $344 million and total pro forma free cash flow was $301 million, which includes $43 million of tax effected separation and related costs. The company delivered full-year free cash flow of 96 percent of adjusted net income.

“Our fourth quarter sales were above the high end of our guidance marking the fourth consecutive quarter of sales acceleration giving us confidence our strategy is working,” said Beth Wozniak, nVent’s chief executive officer. “I’m very proud of our team for successfully launching nVent as a new public company and achieving 6 percent sales growth. We enter 2019 with momentum to grow and expand margins with our focus on One nVent, key verticals, and new product launches.”

FOURTH QUARTER PERFORMANCE ($ in millions)

           
nVent Electric plc              
Three months ended
     

December 31, 2018

   

December 31, 2017

    % / point

change

Net Sales     $ 568       $ 542       5 %
Organic                 6 %
Operating Income     $ 86       $ 59       45 %
Reported ROS       15.2 %       11.0 %      
Segment Income     $ 108       $ 101       7 %
Adjusted ROS       19.1 %       18.7 %     40 bps
 
           
Enclosures              
Three months ended
     

December 31, 2018

   

December 31, 2017

    % / point

change

Net Sales     $ 251       $ 233       8 %
Organic                 9 %
ROS 15.5 % 14.8 % 70 bps
 

Enclosures’ sales growth was broad based across geographic regions and verticals. Fourth quarter ROS improved 70 basis points and segment income grew 13 percent as the company saw positive price while continuing to make progress to improve segment margin.

           
Thermal Management              
Three months ended
     

December 31, 2018

   

December 31, 2017

    % / point

change

Net Sales     $ 179       $ 178       1 %
Organic                 3 %
ROS 27.1 % 28.3 % -120 bps
 

Thermal Management saw positive organic growth driven by strong Industrial Maintenance, Repair and Overhaul (“MRO”) and Commercial sales. The company’s longer cycle Energy business continued to recover. Fourth quarter ROS contracted due to higher inflation and a difficult year-over-year comparison.

           
Electrical & Fastening Solutions (“EFS”)              
Three months ended
     

December 31, 2018

   

December 31, 2017

    % / point

change

Net Sales     $ 139       $ 132       5 %
Organic                 6 %
ROS 23.8 % 24.7 % -90 bps
 

EFS sales growth was driven by growth in Industrial and Commercial sales, along with strong price realization. Fourth quarter ROS was negatively impacted due to production inefficiencies.

FULL-YEAR PERFORMANCE ($ in millions)

           
nVent Electric plc              
Full-Year
     

December 31, 2018

   

December 31, 2017

    % / point

change

Net Sales     $ 2,214       $ 2,098       6 %
Organic                 5 %
Operating Income     $ 311       $ 316       -2 %
Reported ROS       14.0 %       15.1 %      
Segment Income     $ 424       $ 410       3 %
Adjusted ROS       19.1 %       19.5 %     -40 bps
 
           
Enclosures              
Full-Year
     

December 31, 2018

   

December 31, 2017

    % / point

change

Net Sales     $ 1,020       $ 935       9 %
Organic                 8 %
ROS 17.1 % 17.6 % -50 bps
 

Enclosures saw strong global growth led by Industrial and Infrastructure sales. Segment income and ROS improved throughout the year as the company continued to execute on its plan to expand margins within the Enclosures segment.

           
Thermal Management              
Full-Year
     

December 31, 2018

   

December 31, 2017

    % / point

change

Net Sales     $ 623       $ 622       0 %
Organic                 -1 %
ROS 24.7 % 23.7 % 100 bps
 

Thermal Management saw strong Industrial MRO and Commercial growth throughout the year, offset by a slowdown in the longer cycle Energy business. The 100 basis point expansion in ROS was driven by product mix to higher margin products.

           
EFS              
Full-Year
     

December 31, 2018

   

December 31, 2017

    % / point

change

Net Sales     $ 571       $ 541       6 %
Organic                 5 %
ROS 25.3 % 26.0 % -70 bps
 

EFS saw strong Commercial growth in 2018 while driving price to offset higher inflation. Margin contraction was due to negative product mix and inflationary pressure.

GUIDANCE FOR FULL-YEAR AND FIRST QUARTER 2019

The company is introducing 2019 sales guidance of flat to up 3 percent on a reported basis, which represents 2 to 4 percent organic growth versus the prior year. The company expects full-year 2019 EPS on a GAAP basis of $1.52 to $1.62 and $1.80 to $1.90 on an adjusted basis.

In addition, the company estimates reported sales for the first quarter of 2019 to be in the range of down 1 percent to up 1 percent, which represents 2 to 4 percent on an organic basis. The company estimates first quarter 2019 EPS on a GAAP basis of $0.29 to $0.33 and adjusted EPS of $0.36 to $0.40.

DIVIDENDS

nVent previously announced on September 18, 2018 that its Board of Directors approved a regular cash dividend of $0.175 per ordinary share, which was paid during the fourth quarter on November 2, 2018. nVent also announced on December 11, 2018 that its Board of Directors approved a regular cash dividend of $0.175 per ordinary share, payable during the first quarter on February 8, 2019.

EARNINGS CONFERENCE CALL

nVents management team will discuss the companys fourth quarter and full-year performance on a conference call with analysts and investors at 11:00 a.m. Eastern today. A live audio webcast of the conference call and materials will be available through the Investor Relations section of the companys website (https://investors.nvent.com). To participate, please dial 855-493-3495 or 720-405-2160 along with conference number 9697454 approximately ten minutes before the 11:00 a.m. ET start. A replay of the conference call will be made accessible once it becomes available and will remain accessible through midnight on March 7, 2019 by dialing 855-859-2056 or 404-537-3406, along with the above conference number.

2019 INSTITUTIONAL INVESTOR AND ANALYST DAY

nVent will be hosting an Institutional Investor and Analyst Day on February 27 at the Thermal Management facility in Redwood City, CA. A live webcast of the event and materials will be available through the Investor Relations section of the companys website (https://investors.nvent.com). If you wish to attend, please contact the Investor Relations department at nVent.

About nVent

nVent is a leading global provider of electrical connection and protection solutions. We believe our inventive electrical solutions enable safer systems and ensure a more secure world. We design, manufacture, market, install and service high performance products and solutions that connect and protect some of the world’s most sensitive equipment, buildings and critical processes. We offer a comprehensive range of enclosures, electrical connections and fastening and thermal management solutions across industry-leading brands that are recognized globally for quality, reliability and innovation. Our principal office is in London, United Kingdom and our management office in the United States is in Minneapolis, Minnesota. Our robust portfolio of leading electrical product brands dates back more than 100 years and includes nVent CADDY, ERICO, HOFFMAN, RAYCHEM, SCHROFF and TRACER.

nVent, CADDY, ERICO, HOFFMAN, RAYCHEM, SCHROFF and TRACER are trademarks owned or licensed by nVent Services GmbH or its affiliates.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains statements that we believe to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact are forward-looking statements. Without limitation, any statements preceded or followed by or that include the words targets, plans, believes, expects, intends, will, likely, may, anticipates, estimates, projects, forecasts, should, would, positioned, strategy, future, or words, phrases or terms of similar substance or the negative thereof, are forward-looking statements. All projections in this press release are also forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include adverse effects on our business operations or financial results as a result of the consummation of our separation from Pentair (the “Separation”); the ability of our business to operate independently following the Separation; overall global economic and business conditions impacting our business; the ability to achieve the benefits of our restructuring plans; the ability to successfully identify, finance, complete and integrate acquisitions; competition and pricing pressures in the markets we serve, including the impacts of tariffs; the strength of housing and related markets; volatility in currency exchange rates and commodity prices; inability to generate savings from excellence in operations initiatives consisting of lean enterprise, supply management and cash flow practices; increased risks associated with operating foreign businesses; the ability to deliver backlog and win future project work; failure of markets to accept new product introductions and enhancements; the impact of changes in laws and regulations, including those that limit U.S. tax benefits; the outcome of litigation and governmental proceedings; and the ability to achieve our long-term strategic operating goals. Additional information concerning these and other factors is contained in our filings with the Securities and Exchange Commission, including nVents Registration Statement on Form 10, as amended. All forward-looking statements speak only as of the date of this press release. nVent assumes no obligation, and disclaims any obligation, to update the information contained in this press release.

 
nVent Electric plc
Condensed Consolidated and Combined Statements of Income (Unaudited)
               
Three months ended Twelve months ended
In millions, except per-share data    

December 31, 2018

    December 31, 2017     December 31, 2018     December 31, 2017
Net sales $ 568.1 $ 541.9 $ 2,213.6 $ 2,097.9
Cost of goods sold     349.4       328.5       1,337.5       1,256.0  
Gross profit 218.7 213.4 876.1 841.9
% of net sales 38.5 % 39.4 % 39.6 % 40.1 %
Selling, general and administrative 120.6 143.9 519.7 483.3
% of net sales 21.2 % 26.6 % 23.5 % 23.0 %
Research and development 11.9 10.1 45.6 42.5
% of net sales     2.1 %     1.9 %     2.1 %     2.0 %
Operating income 86.2 59.4 310.8 316.1
% of net sales 15.2 % 11.0 % 14.0 % 15.1 %
Net interest expense 9.6 (0.2 ) 31.2 0.2
Other expense     3.7       (1.6 )     10.9       2.6  
Income before income taxes 72.9 61.2 268.7 313.3
Provision (benefit) for income taxes 5.9 (94.8 ) 37.9 (48.4 )
Effective tax rate     8.1 %     (154.9 )%     14.1 %     (15.4 )%
Net income     $ 67.0       $ 156.0       $ 230.8       $ 361.7  
Earnings per ordinary share
Basic $ 0.38 $ 0.87 $ 1.29 $ 2.02
Diluted     $ 0.37       $ 0.86       $ 1.28       $ 2.00  
Weighted average ordinary shares outstanding
Basic 178.4 179.0 178.6 179.0
Diluted 180.2 181.2 180.8 181.2
 
 
nVent Electric plc
Condensed Consolidated and Combined Balance Sheets (Unaudited)
       
December 31, 2018 December 31, 2017
In millions        
Assets
Current assets
Cash and cash equivalents $ 159.0 $ 26.9
Accounts and notes receivable, net 340.9 349.3
Inventories 228.2 224.1
Other current assets     118.4       132.3
Total current assets 846.5 732.6
Property, plant and equipment, net 264.8 265.8
Other assets
Goodwill 2,234.3 2,238.2
Intangibles, net 1,173.3 1,236.6
Other non-current assets     33.8       251.8
Total other assets     3,441.4       3,726.6
Total assets     $ 4,552.7       $ 4,725.0
Liabilities and Equity
Current liabilities
Current maturities of long-term debt and short-term borrowings $ 12.5 $
Accounts payable 186.4 174.1
Employee compensation and benefits 75.8 75.5
Other current liabilities     187.0       141.3
Total current liabilities 461.7 390.9
Other liabilities
Long-term debt 929.2
Pension and other post-retirement compensation and benefits 177.9 176.7
Deferred tax liabilities 224.8 279.4
Other non-current liabilities     72.0       86.7
Total liabilities     1,865.6       933.7
Equity     2,687.1       3,791.3
Total liabilities and equity     $ 4,552.7       $ 4,725.0
 
 
nVent Electric plc
Condensed Consolidated and Combined Statements of Cash Flows (Unaudited)
 
    Twelve months ended
In millions     December 31, 2018     December 31, 2017
Operating activities    
Net income $ 230.8 $ 361.7
Adjustments to reconcile net income to net cash provided by (used for) operating activities
Depreciation 36.2 36.5
Amortization 60.9 61.4
Deferred income taxes (23.6 ) (158.0 )
Share-based compensation 12.8 14.6
Impairment of trade names 16.4
Pension and other post-retirement expense 14.9 14.3
Pension and other post-retirement contributions (6.7 ) (6.7 )
Changes in assets and liabilities, net of effects of business acquisitions
Accounts and notes receivable (1.3 ) (18.2 )
Inventories (12.0 ) (8.9 )
Other current assets 7.3 5.6
Accounts payable 13.4 17.0
Employee compensation and benefits 6.8 11.6
Other current liabilities 27.5 21.3
Other non-current assets and liabilities     (23.5 )     41.1  
Net cash provided by (used for) operating activities 343.5 409.7
Investing activities
Capital expenditures (39.5 ) (31.8 )
Proceeds from sale of property and equipment 2.4 4.2
Acquisitions, net of cash acquired     (2.0 )     (13.6 )
Net cash provided by (used for) investing activities (39.1 ) (41.2 )
Financing activities
Net repayments of short-term borrowings (0.3 )
Proceeds from long-term debt 1,000.0
Repayments of long-term debt (52.5 )
Debt issuance costs (9.9 )
Cash provided at separation to Parent (993.6 )
Dividends paid (62.9 )
Net transfers to Parent prior to separation (359.5 )
Shares issued to employees, net of shares withheld 8.6
Repurchases of ordinary shares     (56.0 )      
Net cash provided by (used for) financing activities     (166.6 )     (359.5 )
Effect of exchange rate changes on cash and cash equivalents     (5.7 )     (3.6 )
Change in cash and cash equivalents     132.1       5.4
Cash and cash equivalents, beginning of year     26.9       21.5  
Cash and cash equivalents, end of year     $ 159.0       $ 26.9  
 
 
nVent Electric plc
Supplemental Financial Information by Reportable Segment (Unaudited)
                   
2018
In millions     First

Quarter

    Second

Quarter

    Third

Quarter

    Fourth

Quarter

    Full

Year

Net sales
Enclosures $ 254.1 $ 255.6 $ 259.5 $ 250.5 $ 1,019.7
Thermal Management 147.9 139.0 157.4 178.9 623.2
Electrical & Fastening Solutions     136.9       148.1       147.0       138.7       570.7  
Total     $ 538.9       $ 542.7       $ 563.9       $ 568.1       $ 2,213.6  
Segment income (loss)
Enclosures $ 40.6 $ 47.9 $ 47.4 $ 38.9 $ 174.8
Thermal Management 33.5 30.4 41.9 48.4 154.2
Electrical & Fastening Solutions 31.7 40.9 38.9 33.0 144.5
Other     (12.3 )     (12.4 )     (13.2 )     (12.0 )     (49.9 )
Total     $ 93.5       $ 106.8       $ 115.0       $ 108.3       $ 423.6  
Return on sales
Enclosures 16.0 % 18.7 % 18.3 % 15.5 % 17.1 %
Thermal Management 22.7 % 21.9 % 26.6 % 27.1 % 24.7 %
Electrical & Fastening Solutions     23.2 %     27.6 %     26.5 %     23.8 %     25.3 %
Total     17.4 %     19.7 %     20.4 %     19.1 %     19.1 %
 
                   
2017
In millions     First Quarter     Second Quarter     Third Quarter     Fourth

Quarter

    Full

Year

Net sales
Enclosures $ 226.5 $ 234.1 $ 241.7 $ 232.6 $ 934.9
Thermal Management 145.4 139.9 159.1 177.8 622.2
Electrical & Fastening Solutions     130.3       139.2       139.8       131.5       540.8  
Total     $ 502.2       $ 513.2       $ 540.6       $ 541.9       $ 2,097.9  
Segment income (loss)
Enclosures $ 40.3 $ 45.7 $ 44.1 $ 34.5 $ 164.6
Thermal Management 26.0 27.6 43.3 50.4 147.3
Electrical & Fastening Solutions 31.7 41.3 35.2 32.5 140.7
Other     (9.3 )     (8.9 )     (8.7 )     (16.2 )     (43.1 )
Total     $ 88.7       $ 105.7       $ 113.9       $ 101.2       $ 409.5  
Return on sales
Enclosures 17.8 % 19.5 % 18.2 % 14.8 % 17.6 %
Thermal Management 17.9 % 19.7 % 27.2 % 28.3 % 23.7 %
Electrical & Fastening Solutions     24.3 %     29.7 %     25.2 %     24.7 %     26.0 %
Total     17.7 %     20.6 %     21.1 %     18.7 %     19.5 %
 
 
nVent Electric plc
Reconciliation of the GAAP year ended December 31, 2018 to the non-GAAP financial measures
excluding the effect of 2018 adjustments (Unaudited)
                   
In millions, except per-share data     First

Quarter

    Second

Quarter

    Third

Quarter

    Fourth

Quarter

    Full

Year

Net sales     $ 538.9       $ 542.7       $ 563.9       $ 568.1       $ 2,213.6  
Operating income 65.6 65.3 93.7 86.2 310.8
% of net sales 12.2 % 12.0 % 16.6 % 15.2 % 14.0 %
Adjustments:
Restructuring and other 2.8 2.3 1.3 1.3 7.7
Intangible amortization 15.4 15.2 15.2 15.1 60.9
Separation costs 9.7 24.8 4.8 5.7 45.0
Corporate allocations           (0.8 )                 (0.8 )
Segment income 93.5 106.8 115.0 108.3 423.6
Return on sales 17.4 % 19.7 % 20.4 % 19.1 % 19.1 %
Corporate and other costs     12.3       12.4       13.2       12.0       49.9  
Segment income excluding corporate and other costs     105.8       119.2       128.2       120.3       473.5  
Net income – as reported 52.3 43.3 68.2 67.0 230.8
Interest expense adjustment – pro forma (5.6 ) (5.6 )
Adjustments to operating income 27.9 41.5 21.3 22.1 112.8
Pension and other post-retirement mark-to-market loss 4.1 2.9 7.0
Income tax adjustments     (4.0 )     (9.8 )     (5.5 )     (11.7 )     (31.0 )
Net income – pro forma adjusted     $ 70.6       $ 79.1       $ 84.0       $ 80.3       $ 314.0  
Diluted earnings per ordinary share – pro forma adjusted
Diluted earnings per ordinary share – pro forma $ 0.29 $ 0.24 $ 0.38 $ 0.37 $ 1.28
Adjustments     0.10       0.20       0.08       0.08       0.46  
Diluted earnings per ordinary share – pro forma adjusted     $ 0.39       $ 0.44       $ 0.46       $ 0.45       $ 1.74  
Diluted weighted average ordinary shares outstanding – pro forma 181.2 180.8 181.5 180.2

 

180.8
 
 
nVent Electric plc
Reconciliation of the GAAP year ended December 31, 2017 to the non-GAAP financial measures
excluding the effect of 2017 adjustments (Unaudited)
                   
In millions     First

Quarter

    Second Quarter     Third Quarter     Fourth Quarter     Full Year
Net sales     $ 502.2       $ 513.2       $ 540.6       $ 541.9       $ 2,097.9  
Operating income 67.6 89.5 99.6 59.4 316.1
% of net sales 13.5 % 17.4 % 18.4 % 11.0 % 15.1 %
Adjustments:
Restructuring and other 9.3 3.7 13.0
Intangible amortization 15.3 15.3 15.4 15.4 61.4
Trade name impairment 16.4 16.4
Separation costs 2.2 4.7 9.2 16.1
Corporate allocations     (3.5 )     (5.0 )     (5.8 )     0.8       (13.5 )
Segment income 88.7 105.7 113.9 101.2 409.5
Return on sales 17.7 % 20.6 % 21.1 % 18.7 % 19.5 %
Corporate and other costs     9.3       8.9       8.7       16.2       43.1  
Segment income excluding corporate and other costs 98.0 114.6 122.6 117.4 452.6
 
 
nVent Electric plc
Reconciliation of the GAAP year ended December 31, 2019 to the non-GAAP financial measures
excluding the effect of 2019 adjustments (Unaudited)
       
In millions, except per-share data Forecast (1)
    First Quarter Full Year
Net income – as reported 56 $ 278
Intangible amortization 15 61
Income tax adjustments     (3 ) (11 )
Net income – as adjusted     $ 68   $ 328  
Diluted earnings per ordinary share
Diluted earnings per ordinary share – as reported $0.29 – $0.33 $1.52 – $1.62
Adjustments     0.07   0.28  
Diluted earnings per ordinary share – as adjusted     $0.36 – $0.40   $1.80 – $1.90  
(1) Forecast information represents an approximation
 
 
nVent Electric plc
Reconciliation of Net Sales Growth to Organic Net Sales Growth by Segment
for the quarter and year ended December 31, 2018 (Unaudited)
 
    Q4 Net Sales Growth     Full Year Net Sales Growth
      Organic     Currency     Acq./Div.     Total     Organic     Currency     Acq./Div.     Total
nVent 6.3 %     (1.5 )%     %     4.8 % 4.7 %     0.8 %     %     5.5 %
Enclosures 9.0 % (1.2 )% % 7.8 % 8.3 % 0.8 % % 9.1 %
Thermal Management 2.7 % (2.1 )% % 0.6 % (0.5 )% 0.7 % % 0.2 %
Electrical & Fastening Solutions     6.4 %     (1.0 )%     %     5.4 %     4.7 %     0.8 %     %     5.5 %
 
 
nVent Electric plc
Reconciliation of Net Sales Growth to Organic Net Sales Growth by Segment
for the quarter ended March 31, 2019 and the year ended December 31, 2019 (Unaudited)
 
    Forecast (1)
Q1 Net Sales Growth     Full Year Net Sales Growth
      Organic     Currency     Acq./Div.     Total     Organic     Currency     Acq./Div.     Total
nVent 2 – 4 %     (3 )%     %     (1 ) – 1% 2 – 4 %    

(1) – (2

)%

    %     0 – 3 %
Enclosures 2 – 4 % (1 )% % 1 – 3 %
Thermal Management 2 – 6 %

(2) – (3

)%

%

(1) – 4

%

Electrical & Fastening Solutions                             2 – 4 %     (1 )%     %     1 – 3 %
(1) Forecast information represents an approximation
 
 
nVent Electric plc
Reconciliation of cash from operating activities to free cash flow (Unaudited)
 
    Twelve months ended
In millions     December 31, 2018
Free cash flow
Net cash provided by (used for) operating activities – as reported $ 343.5
Interest expense – pro forma     (5.6 )
Net cash provided by (used for) operating activities – pro forma 337.9
Capital expenditures (39.5 )
Proceeds from sale of property and equipment     2.4  
Free cash flow – pro forma     $ 300.8  
 

Investor Contact
J.C. Weigelt
Vice President, Investor
Relations
nVent
763.204.7750
[email protected]

Media Contact
Jill Saletta
Vice President,
Communications
nVent
763.204.7771
[email protected]

News

AirNet Announces Receipt of Deficiency Letter from Nasdaq

gbafNews28

BEIJING, Sept. 19, 2020 /PRNewswire/ — AirNet Technology Inc., formerly known as AirMedia Group Inc. ("AirNet" or the "Company") (Nasdaq: ANTE), an in-flight solution provider on connectivity, entertainment, and digital multimedia in China, today announced that it received a notification letter dated September 16, 2020 (the "Deficiency Letter") from the Listing Qualifications Department of The Nasdaq Stock Market Inc. (the "Nasdaq") notifying that the Company is no longer in compliance with the Nasdaq Listing Rule 5550(b)(1) for continued listing due to its failure to maintain a minimum of $2.5 million in stockholders’ equity. In the Company’s Form 20-F for the fiscal year ended December 31, 2019, the Company reported a negative stockholders’ equity of approximately $19 million. Nasdaq also determined that the Company does not meet the alternatives of market value of listed securities or net income from continuing operations for continued listing.

The Deficiency Letter does not result in the immediate delisting of the Company’s ordinary shares represented by American depositary shares on the Nasdaq Capital Market. The Company has 45 calendar days from the date of the Deficiency Letter, or until November 2, 2020, to submit a plan (the "Compliance Plan") to Nasdaq to regain compliance with the minimum stockholders’ equity standard. If the Compliance Plan is accepted by Nasdaq, the Company may be granted a compliance period of up to 180 calendar days from the date of the Deficiency Letter to evidence compliance. However, since Nasdaq previously notified the Company that its bid price compliance period expires on December 10, 2020, the Compliance Plan shall also set forth a plan to address the minimum bid price requirement by such date.

The Company’s management is looking into various options available to regain compliance and maintain its continued listing on the Nasdaq Capital Market. The Company intends to submit the Compliance Plan as soon as practicable.

This announcement is made in compliance with the Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a notification of deficiency.

About AirNet

Incorporated in 2007 and headquartered in Beijing, China, AirNet provides in-flight solutions to connectivity, entertainment and digital multimedia in China. Collaborating with its partners, AirNet empowers Chinese airlines with seamlessly immersive Internet connections through a network of satellites and land-based beacons, provides airline travelers with interactive entertainment and a coverage of breaking news, and furnishes corporate clients with advertisements tailored to the perceptions of the travelers. For more information, please visit http://ir.ihangmei.com.  

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "is expected to," "anticipates," "aim," "future," "intends," "plans," "believes," "are likely to," "estimates," "may," "should" and similar expressions, and include, without limitation, statements regarding the development of the COVID-19 pandemic and its impact on the Company’s business operations. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements are based upon management’s current expectations and current market and operating conditions, and involve inherent risks and uncertainties, all of which are difficult to predict and many of which are beyond the Company’s control, which may cause its actual results, performance or achievements to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but not limited to the following: its ability to achieve and maintain profitability; its ability to continuously improve its solutions and services enabling inflight connectivity; its ability to compete effectively against its competitors; the expected growth in consumer spending, average income levels and advertising spending levels; the growth of the inflight connectivity industry in China; and government policies affecting the inflight connectivity industry in China. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

 

Related Links :

http://ir.ihangmei.com/

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LAIX Inc. Announces Changes in Board and Committee Composition

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SHANGHAI, Sept. 19, 2020 /PRNewswire/ — LAIX Inc. ("LAIX" or the "Company") (NYSE: LAIX), an artificial intelligence (AI) company in China that creates and delivers products and services to popularize English learning, today announced that Mr. Christopher Ludwig Eisgruber, one of the Company’s independent directors, will cease to serve on the Company’s board of directors and its committees upon the expiration of his current term ending on September 30, 2020. Upon the effectiveness of Mr. Eisgruber’s departure, Ms. Min (Jenny) Zhang will be appointed as a member of the compensation committee and the chairperson of the nominating and corporate governance committee of the board of directors of the Company, replacing Mr. Christopher Ludwig Eisgruber. In addition, Dr. Li-Lan Cheng was re-elected to serve another two-year term as an independent director of the Company, effective September 30, 2020.

About LAIX Inc.

LAIX Inc. ("LAIX" or the "Company") is an artificial intelligence (AI) company in China that creates and delivers products and services to popularize English learning. Its proprietary AI teacher utilizes cutting-edge deep learning and adaptive learning technologies, big data, well-established education pedagogies and the mobile internet. LAIX believes its innovative approach fundamentally transforms learning. LAIX provides its products and services on demand via its mobile apps, primarily its flagship "English Liulishuo" mobile app launched in 2013. On the Company’s platform, AI technologies are seamlessly integrated with diverse learning content incorporating well-established language learning pedagogies, gamified features and strong social elements to deliver an engaging, adaptive learning experience. LAIX provides a variety of courses inspired by a broad range of topics and culture themes to make English learning more interesting and is committed to offering a fun, interactive learning environment to motivate and engage its users.

For investor and media inquiries, please contact:

LAIX Inc.
Harry He
Investor Relations
Email: [email protected]

The Piacente Group Investor Relations
Brandi Piacente
Tel: +1-212-481-2050
Email: [email protected]

Emilie Wu
Tel: +86-21-6039-8363
Email: [email protected]

Related Links :

http://www.liulishuo.com

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Spectrio Named to Inc. Magazine’s 2020 List of America’s Fastest-Growing Private Companies

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Spectrio, one of the nations leading providers of customer engagement technology, announced that it is on Inc. Magazines annual Inc. 5000 list, the most prestigious ranking of the nations fastest-growing private companies.

The ninth time in 13 years its earned the prestigious honor, Spectrio previously ranked on the Inc. 5000 list in 2019, 2014, 2013, 2012, 2010, 2009, 2008, and 2007. Spectrio was listed at no. 3050 on the Inc. 5000 list, up 756 from the previous year.

In early 2020, Spectrio was also named to Inc. Magazines inaugural 2020 Inc. 5000 Series: Florida, ranking at No. 180 of the fastest-growing Florida-based private companies.

Were honored to receive the Inc. 5000 award for the ninth time, as well as being named as one of Floridas fastest-growing companies in 2020, said Brian Harris, vice president of marketing at Spectrio. I am proud of how our team continues to serve our clients at a time when they need us most, while we also set new records for growth.

Spectrios growth has included the expansion of its engineering and product teams, allowing the Company to launch new solutions and complete integrations with major brands including Shutterstock and Amazon Alexa. Spectrio also released its new SHARE mobile application as well as SpectrioCloud, its online account and content management portal.

About Spectrio

Spectrio is one of the nations leading customer engagement technology providers. Known for cultivating unique brand experiences powered by professionally-produced content and marketing technology, Spectrios solutions create a holistic customer journey with Digital Signage, Interactive Kiosks, On-Hold Marketing, On-Premise Messaging and Music, Wi-Fi Marketing, and Scent Marketing. Spectrio serves more than 100,000 client locations, ranging from local businesses to global brands. For more information, visit www.Spectrio.com.

Megan Colby

Communications Director

[email protected]

800-584-4653 x6313

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