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Arkansas Division of Elementary and Secondary Education and Solution Tree Announce Fifth Cohort of Schools in Professional Learning Communities at Work® Project

Bloomington, Ind., April 30, 2021 (GLOBE NEWSWIRE) — The Arkansas Department of Education’s Division of Elementary and Secondary Education (DESE), in partnership with Solution Tree, a national professional development provider, announces the fifth cohort selected for the Arkansas Professional Learning Communities at Work® project.  Thirteen schools and two districts from around the state were selected for the 2021-2022 school year and join 39 schools and five districts chosen over the last four years. Because of additional funding allocated by legislators, DESE was able to select additional schools and districts to participate this upcoming school year.  As with the first four cohorts, each school and district in the fifth cohort will receive up to 50 days of training, coaching, and support to build and sustain a strong culture of collaboration that will enhance student learning. Those chosen completed a rigorous application and evaluation process. A panel of education professionals reviewed all applications, and DESE selected the following schools and districts to receive support from Solution Tree:

  • Arkansas High School, Texarkana School District
  • Booker Arts Magnet Elementary School, Little Rock School District
  • Camden Fairview Middle School, Camden Fairview School District
  • Glenview Elementary School, North Little Rock School District
  • Hellstern Middle School, Springdale School District
  • Howard Elementary School, Fort Smith School District
  • Lake Hamilton Middle School, Lake Hamilton School District
  • Leverett Elementary School, Fayetteville School District
  • Magazine School District
  • Meekins Middle School, Stuttgart School District
  • Oaklawn STEM Magnet School, Hot Springs School District
  • Parson Hills Elementary School, Springdale School District
  • Searcy County School District
  • University Heights Elementary School, Nettleton School District
  • Washington Elementary School, Little Rock School District

“The PLC model has proven to be a successful best practice implemented in many schools around the state,” Gov. Asa Hutchinson said. “Schools that have embraced the PLC partnership, teacher coordination, and student-focused learning have seen improved learning and a culture that breeds success. I am excited that additional schools and districts now have the opportunity to learn about the benefits associated with this highly successful program.”

“Since the first cohort was announced four years ago, we have seen tremendous growth in teacher collaboration, school culture, and student learning,” ADE Secretary Johnny Key said. “This new cohort has joined the others by making an important commitment to rebuilding internal systems, leveraging best practices, and creating a strong culture of learning. I congratulate them on their dedication to student learning and embracing the hard–but rewarding–work involved with this initiative.”

Recent research conducted by Education Northwest, a third-party research firm, validates the success of the Arkansas PLC program. Data show the project positively impacted student achievement in math on the ACT Aspire assessment. (Learn more at https://bit.ly/3sP2Jh4.)

“We are encouraged by the accomplishments of these cohorts year after year,” Solution Tree President and COO Ed Ackerman said. “We truly believe – and now research confirms – there is no better way to improve student education than with the transformative process of implementing professional learning communities. We are excited to welcome the fifth cohort to the project and look forward to working in conjunction with DESE to help Arkansas schools succeed.”

As with the previous four cohorts, the 2021-2022 cohort will be matched with a certified PLC at Work associate from Solution Tree and receive intensive job-embedded training, observation, and coaching. The schools and districts will create action plans that focus on increasing student achievement through aligned curriculum, formative assessments, and proven instructional strategies. During the second year, the schools and districts will deepen their understanding and focus on implementing multi-tiered systems of support, followed by strengthening their systems and sustaining the process in year three.

Solution Tree recently launched a new documentary, “A Child’s Best Hope: The Arkansas PLC Story,” that highlights the efforts of three schools throughout various stages of the implementation process. The documentary is available at https://bitly.com/3tQvJ9M. For more information about the Arkansas PLC at Work project, please visit the DESE website at https://bit.ly/2QNvSvU.
About Solution Tree
Since 1998, Solution Tree has worked to transform education worldwide by empowering educators to raise student achievement. With more than 48,962 educators attending professional learning events and more than 5,500 professional development sessions in schools each year, Solution Tree helps teachers and administrators confront essential challenges. Solution Tree has a catalog of more than 500 titles, hundreds of videos, and online courses and is the creator of Global PD, an online tool that facilitates the work of professional learning communities for more than 20,000 educators. No other professional learning company provides Solution Tree’s unique blend of research-based, results-driven services that improve learning outcomes for students. Follow @SolutionTree on TwitterFacebook and Instagram.

Solution Tree
Ed Ackerman
Ed.Ackerman@SolutionTree.com
800.733.6786 ext. 239

Horizon Therapeutics plc Selects AGC Biologics to Further Supply KRYSTEXXA® (pegloticase injection) at AGC’s Copenhagen Facility

Seattle, April 30, 2021 (GLOBE NEWSWIRE) — AGC Biologics, a leading global Biopharmaceutical Contract Development and Manufacturing Organization (CDMO), announced the expansion of their partnership with Horizon Therapeutics plc (Nasdaq: HZNP), to include the manufacturing of KRYSTEXXA® (pegloticase injection) – a biologic medicine for treatment of chronic gout refractory to conventional therapies (uncontrolled gout), at its state-of-the-art facility in Copenhagen, Denmark.

“We are extremely happy to further expand our strategic partnership with Horizon by leveraging the microbial capacity and expert team at our Copenhagen facility,” said AGC Biologics Chief Business Officer, Mark Womack. “We look forward to working closely with the Horizon team to further supply KRYSTEXXA to meet market demand.”

KRYSTEXXA is a recombinant uricase enzyme that is administered intravenously and approved by the U.S. Food and Drug Administration (FDA) for the treatment of uncontrolled gout in adult patients.

“The expansion of the partnership with AGC Biologics will provide Horizon additional capacity and dual sourcing for KRYSTEXXA when added to our existing successful partnership with BTG of Israel, a Ferring company,” said Michael DesJardin, Executive Vice President, Technical Operations and Corporate Quality, Horizon.

“We are extremely pleased that Horizon has entrusted us to produce KRYSTEXXA at our Copenhagen facility,” says AGC Biologics General Manager, Copenhagen, Andrea Porchia. “We are very proud to work alongside Horizon to improve patients’ lives.”

AGC Biologics and Horizon first partnered in 2017 and are actively working on numerous programs together, including TEPEZZA (teprotumumab-trbw), at AGC Biologics’ Copenhagen, Seattle and Boulder facilities.

About AGC Biologics:
AGC Biologics is a leading global biopharmaceutical Contract Development and Manufacturing Organization (CDMO) with a strong commitment to deliver the highest standard of service as we work side-by-side with our clients and partners, every step of the way. We provide world-class development and manufacture of mammalian and microbial-based therapeutic proteins, plasmid DNA (pDNA), viral vectors and genetically engineered cells. Our global network spans the U.S., Europe and Asia, with cGMP-compliant facilities in Seattle, Washington; Boulder, Colorado; Copenhagen, Denmark; Heidelberg, Germany; Milan, Italy; and Chiba, Japan and we currently employ more than 1,700 employees worldwide. Our commitment to continuous innovation fosters the technical creativity to solve our clients’ most complex challenges, including specialization in fast-track projects and rare diseases. AGC Biologics is the partner of choice. To learn more, visit www.agcbio.com.

David Self
AGC Biologics
dself@agcbio.com

 

Toga Limited’s Wholly Owned Subsidiary TOGL Technology Sdn Bhd Earns ISO 9001:2015 Certifications for Quality Management System

KUALA LUMPUR, Malaysia, April 29, 2021 (GLOBE NEWSWIRE) — Toga Limited, (OTC: TOGL), announces that on February 26, 2021, its wholly owned subsidiary, TOGL Technology Sdn Bhd (TOGL Technology), earned two ISO 9001:2015 Certifications for its Quality Management System by The British Standards Institution (BSI).

ISO 9001:2015 is a globally recognized quality management standard developed and published by the International Organization for Standardization (ISO). The standard is based on several quality management principles, including having a strong customer focus, involvement of high-level company management, an outlined process-based approach, and a philosophy of continuous improvement.

“Our team is very proud to earn these prestigious quality certifications,” said Toga Limited Co-founder and TOGL Technology Group General Manager, Mr. Roy Lim Jun Hao. “The Toga culture is built on a commitment to deliver the highest quality products to our customers, on time and free of flaws. The attainment of our ISO 9001:2015 certifications validates our Total Quality System – and the commitment we have to product quality and customer satisfaction.”

Toga’s ISO 9001:2015 Certificates (#FS739984 & #FS739987) were issued by BSI, a world-class, ANAB and Standards Malaysia Accredited management system certification body. The scope of Toga’s certifications includes the design, development, and provisions of social messaging and online flight booking platforms.

Contact:

Alexander D. Henderson
TOGA LIMITED, 515 S. Flower Street, 18th Floor, Los Angeles, CA 90071
(949) 333-1603
info@togalimited.com

Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact (including, but not limited to, statements to the effect that Toga Limited or its management (the “Company”) “anticipates,” “plans,” “estimates,” “expects,” or “believes,” or the negative of these terms and other similar expressions) should be considered forward-looking statements, including, without limitation, statements regarding the Company’s guidance, outlook, growth, opportunities and long-term strategy. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release. These risks and uncertainties include, without limitation, risks associated with the impact of the COVID-19 pandemic; the Company’s ability to execute on its long-term strategy; the Company’s ability to successfully compete in its intensely competitive industry; the Company’s ability to manage its growth; the Company’s ability to maintain or improve its operating margins; the Company’s ability to identify and react to trends in consumer preferences; product supply disruptions; general economic conditions; accounting standard changes; and other factors as set forth from time to time in the Company’s Securities and Exchange Commission filings, including, without limitation, the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company intends these forward-looking statements to speak only as of the time of this Press Release and does not undertake to update or revise them as more information becomes available, except as required by law.

NOTICE TO DISREGARD — GSB GOLD STANDARD BANKING CORPORATION AG

HAMBURG, Germany, April 29, 2021 (GLOBE NEWSWIRE) — We are advised by GSB GOLD STANDARD BANKING CORPORATION AG that journalists and other readers should disregard the news release, “GSB Group doubts in gold reserves of Karatbars and the V999 Coin as well as the existence of the Osint Group” issued April 28, 2021, over GlobeNewswire.

WillScot Mobile Mini Holdings Announces First Quarter Results and Updates 2021 Outlook

Q1 Performance, Strong Commercial Trends, And Integration Execution Support Increase To 2021 Outlook

PHOENIX, April 29, 2021 (GLOBE NEWSWIRE) — WillScot Mobile Mini Holdings Corp. (“WillScot Mobile Mini Holdings” or the “Company”) (Nasdaq: WSC), the North American leader in innovative flexible work space and portable storage solutions, today announced preliminary first quarter 2021 results and provided an update on its 2021 outlook. Given our momentum exiting the first quarter, coupled with strong commercial trends in our business and continued integration execution, we are raising our full year 2021 revenue and Adjusted EBITDA guidance. While our first quarter results are preliminary due to an SEC Statement published on April 12, 2021 (the “SEC Statement”), indicating that many warrant structures common in SPACs should be accounted for as liabilities rather than as equity and then marked to market in each reporting period, this change will not impact our Revenue, Adjusted EBITDA, or Free Cash Flow. As discussed in more detail in a Current Report Form 8-K filed with the SEC, we will conform to this change when we amend our Annual Report on Form 10-K for the year ended December 31, 2020 and file our Quarterly Report on the Form 10-Q for the quarter ended March 31, 2021. There have been no changes to the terms of the warrants, our operational performance indicators, our GAAP metrics above Operating Income, our non-GAAP metrics, or our capital structure as a result of this change in presentation.

On July 1, 2020, Williams Scotsman, Inc. closed the merger with Mobile Mini, Inc. (the “Merger”) and changed its name to WillScot Mobile Mini Holdings Corp. (Nasdaq: WSC). Our reported results only include Mobile Mini for the periods subsequent to the Merger. Our pro forma results include Mobile Mini’s results as if the Merger and related financing transactions had occurred on January 1, 2019, which we believe is a better representation of how the combined company has performed over time. Following the Merger, we expanded our reporting segments from two reporting segments to four reporting segments. The North America Modular segment aligns with the WillScot legacy business prior to the Merger and the North America Storage, UK Storage and Tank and Pump segments align with the Mobile Mini segments prior to the Merger.

WillScot Mobile Mini Holdings’ Financial Highlights1
Highlights of First Quarter Results

  • Total revenues of $425.3 million increased by $169.5 million relative to prior year, or 66.3%, driven by the addition of Mobile Mini’s revenues to our consolidated results, upon closing of the Merger on July 1, 2020, as well as due to increased leasing revenues in the NA Modular segment.
    • Modular space monthly rental rates in the NA Modular segment increased by 12.9% year over year.
    • NA Storage monthly rental rates increased by 5.0% year over year.
  • Adjusted EBITDA of $163.6 million increased by $74.1 million, or 82.8% year over year, driven both by the addition of Mobile Mini to our results and 8.8% year over year organic growth in the NA Modular segment.
  • Adjusted EBITDA Margin of 38.5% increased by 350 basis points (“bps”) relative to prior year, driven by 160 bps of margin expansion in the NA Modular segment, and the addition of Mobile Mini’s higher margin portable storage business.
  • Net income (loss) range of ($3.3 million) to $11.7 million pending the finalization of the mark-to-market adjustment of our 2015 private warrants. Adjusted Net Income, which excludes the change in fair value of the warrant liability, was $31.7 million, up $35.4 million year over year.
  • Generated $91.2 million of Free Cash Flow, an increase of $83.4 million or 1068% relative to prior year, representing a free cash flow margin of 21.4%.
  • Reduced leverage to 3.7x our pro forma last-twelve-months Adjusted EBITDA of $660.6 million while repurchasing $81.6 million of common stock and warrants.
  • Redeemed $65.0 million of our 6.125% senior notes due 2025.
  • Increased share repurchase authority to $500 million from $250 million.

Additional Supplemental Pro Forma Financial Information will be filed in our Quarterly Report on Form 10-Q to be filed with the SEC and made available on the WillScot Mobile Mini Holdings Corp. investor relations website for full reconciliations of our reported and pro forma results.

Three Months Ended March 31,
(in thousands) 2021
2020
Revenue $ 425,323 $ 255,821
Consolidated net income (loss) range (preliminary as restated) $ (3,346) – 11,654 $ 76,456 – 106,456
Adjusted EBITDA1 $ 163,585 $ 89,544
Net cash provided by operating activities $ 122,071 $ 38,348
Free Cash Flow1 $ 91,160 $ 7,808
Three Months Ended March 31,
Pro Forma Adjusted EBITDA1 by Segment (in thousands) 2021 2020
NA Modular $ 97,371 $ 89,544
NA Storage 46,322 43,994
UK Storage 11,064 6,405
Tank and Pump 8,828 9,477
Consolidated Adjusted EBITDA $ 163,585 $ 149,420

Management Commentary1

Brad Soultz, Chief Executive Officer of WillScot Mobile Mini Holdings, commented, “our first quarter results surpassed my expectations, with solid performance across our segments. Leasing revenue and Adjusted EBITDA increased year over year on a pro forma basis, driven by strength across all of our key leasing metrics and end markets. Our NA Modular segment saw average monthly rental rate growth of 12.9% year over year, the 14th consecutive quarter of double-digit rate growth. VAPS penetration continued to progress, producing an average monthly rate per unit delivered over the last twelve months of $337, a 22.1% year over year increase and a 8.4% sequential increase. Our pricing strategy drove improvement in our other segments as well, with increases of 5.0% and 25.5% year over year in average monthly rental rate for NA Storage and UK Storage, respectively. And we saw modest unit on rent growth sequentially from December to March, which is consistent with a normal seasonal acceleration heading into Q2. In our NA Storage segment, portable storage units on rent were stable year over year, modular space units on rent increased 6.0% year over year. I’d like to thank our team for their significant progress towards key milestones that will unlock the full potential of the merger with Mobile Mini, driving shareholder value for years to come. Due to our strong performance in the first quarter and strengthening commercial KPIs, we are raising our 2021 guidance for Adjusted EBITDA to a midpoint of $705 million, our revenue midpoint to $1.79 billion, and our net capex midpoint to $210 million.”

Tim Boswell, Chief Financial Officer of WillScot Mobile Mini Holdings, commented “we are seeing consistent high execution by our team both in our operating results, as well as in the progress towards our ERP migration in the second quarter of 2021. We generated $91.2 million of Free Cash Flow and a 21% Free Cash Flow Margin this quarter, which allows us to pursue multiple capital allocation priorities. We raised our capex guidance to fund the organic growth opportunities that we see in the market, which will benefit our run-rate heading into 2022. We de-levered to 3.7x, progressing towards our target of 3.0x to 3.5x by the end of the year, while refinancing $65 million of our 2025 notes and reducing our weighted average cost of debt to 4.0%. And we repurchased $82 million of common stock and warrants opportunistically. With our end markets and organic growth drivers strengthening, we are incredibly excited to progress towards our $500 million run-rate free cash flow milestone next year and continue pulling these value creation levers.”

First Quarter 2021 Results1

Total revenues increased 66.3% to $425.3 million, while leasing revenues increased 67.6% versus the prior year quarter driven primarily by the addition of Mobile Mini’s revenues to our consolidated results as well as due to increased leasing revenues in the NA Modular segment.

  • Average modular space units on rent increased 22,360 units, or 25.4%, and average portable storage units on rent increased 129,014 units, both driven by the Merger.
  • Average modular space monthly rental rate increased $26, or 4.0% to $679 driven by a $84, or 12.9% increase in the NA Modular segment, offset by the dilutive impact of lower rates due to mix on the Mobile Mini modular space units.
  • Average portable storage monthly rental rate increased $16, or 13.4% to $135 driven by the accretive impact of higher rates from the Mobile Mini portable storage fleet.
  • NA Modular segment revenue increased $10.4 million, or 4.1%, to $266.2 million, primarily driven by an $11.3 million, or 6.0%. increase to leasing revenue due to continued growth of pricing and value added products:
    • NA Modular space average monthly rental rate of $737 increased 12.9% year over year, representing a continuation of the long-term price optimization and VAPS penetration opportunities across our portfolio.
    • Average modular space units on rent decreased 3,194, or 3.6% year over year driven by lower deliveries, including reduced demand for new project deliveries as a result of the COVID-19 pandemic primarily in the second and third quarter of 2020.

Adjusted EBITDA of $163.6 million increased $74.1 million, or 82.8% year over year. Of this increase, $66.2 million was driven by the addition of Mobile Mini to our consolidated results, with the remainder driven by strong organic growth in the NA Modular segment.

  • Adjusted EBITDA in our NA Modular segment increased $7.9 million, or 8.8% to $97.4 million primarily driven by increases in leasing and services gross profit excluding depreciation of $6.7 million, or 4.6%, driven by increased pricing and VAPS.
  • Consolidated Adjusted EBITDA Margin was 38.5% in the first quarter and increased 350 bps versus prior year driven by a 160 bps increase in the NA Modular segment, as well as the addition of the higher margin Mobile Mini operations in Q3 2020. Within the NA Modular segment, margin expansion was driven by a 50 bps improvement in leasing and services gross profit margin excluding depreciation due to a higher mix of more profitable leasing revenues driven by increased pricing and VAPS growth.

Net income (loss) range of ($3.3 million) to $11.7 million for the three months ended March 31, 2021, pending the finalization of the mark-to-market adjustment of our 2015 private warrants. Adjusted Net Income of $31.7 million for the three months ended March 31, 2021, which excludes the change in fair value of the warrant liability, was up $35.4 million year over year.

Free Cash Flow increased by $83.4 million year over year to $91.2 million, representing a 21.4% Free Cash Flow Margin.

Capitalization and Liquidity Update1,3

As of March 31, 2021

  • Generated $91.2 million of Free Cash Flow in the first quarter.
  • Repurchased 2,750,000 shares of our common stock for $73.7 million in connection with a secondary offering by our primary shareholder and repurchased an additional $8.0 million of common stock and warrants, returning a total of $81.6 million to our shareholders.
  • Redeemed $65.0 million of our 6.125% senior notes due 2025.
  • Over $1.0 billion of excess availability under the asset-based revolving credit facility, which combined with strong cash generation from operations and a flexible covenant structure, creates ample liquidity with which to operate the business.
  • Weighted average interest rate is approximately 4.0% and annual cash interest expense based on the current debt structure is approximately $100 million.
  • No debt maturities prior to 2025.
  • Ended period with $27 million of cash on hand and total debt of $2,470 million.
  • Reduced leverage to 3.7x our pro forma last-twelve-months Adjusted EBITDA of $660.6 million and are on a rapid deleveraging trajectory.

2021 Updated Outlook1, 2, 3

This guidance is subject to risks and uncertainties, including those described in “Forward-Looking Statements” below. Based on strong performance in the first quarter, we updated our 2021 guidance as follows:

Previous Updated Outlook
Revenue $1,700 million – $1,800 million $1,750 million – $1,830 million
Adjusted EBITDA1,2 $675 million – $715 million $690 million – $720 million
Net CAPEX2,3 $180 million – $220 million $190 million – $230 million

1 – Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and Adjusted Net Income are non-GAAP financial measures. Further information and reconciliations for these Non-GAAP measures to the most directly comparable financial measure under generally accepted accounting principles in the US (“GAAP”) is included at the end of this press release.
2 – Information reconciling forward-looking Adjusted EBITDA and Net CAPEX to GAAP financial measures is unavailable to the Company without unreasonable effort and therefore no reconciliation to the most comparable GAAP measures is provided.
3 – Net CAPEX is a non-GAAP financial measure. Please see the non-GAAP reconciliation tables included at the end of this press release.

Share Repurchase Authority

Our Board of Directors approved an increase of $250 million to our share repurchase authority, for a total share repurchase authority of $500 million.

Brad Soultz, Chief Executive Officer, commented “I’m pleased that our Board of Directors approved our recommendation to increase our share repurchase authority to $500 million. Our strong first quarter preliminary results, integration progress, organic growth levers, and long duration leases create excellent forward visibility into free cash flow. This increase gives us ample headroom to continue to support shareholder returns as we look ahead to 2022.”

Discussion of the SEC Guidance Issued April 12, 2021 and Impacts to our Financial Statements

Tim Boswell, Chief Financial Officer of WillScot Mobile Mini, commented, “We’re excited about our first quarter results and WillScot Mobile Mini’s trajectory heading into the remainder of 2021. As has been widely publicized in the media and as we recently disclosed in an 8-K, the SEC made a public statement on April 12th clarifying its interpretation of accounting guidance related to warrants that are common in special purpose acquisition companies. WillScot, consistent with common market practice up until April 12th, historically classified its warrants as equity. However, to conform with the SEC Statement, we will reclassify our warrants as liabilities and mark them to market in our income statement and restate the financial statements in an amendment to our 10-K. This change to conform to the SEC’s interpretations will not impact the terms of the warrants, our operational performance indicators, our GAAP metrics above Operating Income, our non-GAAP metrics, or our capital structure.”

We expect the restatement to impact net income, earnings per share, total liabilities, and total shareholders’ equity. We do not expect the restatement to impact other GAAP metrics, such as Revenue, Operating Income (Loss), Cash and Cash Equivalents, Assets, or Debt, or our non-GAAP operating metrics, including Pro Forma Revenue, Adjusted EBITDA, Free Cash Flow, Free Cash Flow Margin, Leverage, Liquidity, or Net Capex. Further, we do not expect the restatement to impact compliance with the covenants contained in our credit facility.

Williams Scotsman combined with Double Eagle Acquisition Corp (“DEAC”) in 2017. DEAC was a SPAC, and the restatement pertains to the accounting treatment for our 2015 private and 2015 public warrants that were issued by DEAC in connection with its IPO, as well as our 2018 public warrants issued in connection with our acquisition of ModSpace. Consistent with our review of the applicable accounting literature, guidance provided by third-party advisors, the market transactions that we engage in with our warrant-holders, as well as common accounting practice by companies with warrants similar to ours, we previously accounted for our warrants in our audited financial statements as equity under a fixed accounting model. However, to conform to the SEC Statement, we intend to restate certain of our historical financial statements such that our warrants will be accounted for as liabilities and marked-to-market at each warrant transaction date and at the end of each reporting period. In general, under the mark-to-market accounting model, as our stock price increases, the warrant liability increases, and we recognize additional non-operating and non-cash expense in our income statement. The opposite impact occurs when our stock price declines. We believe that the mark-to-market expense or income included in our financial statements may not be necessarily reflective of the actual financial performance of our business.

As of March 31, 2021, we had 2015 private warrants outstanding representing 6.0 million common share equivalents, no 2015 public warrants outstanding, and 2018 public warrants outstanding representing 9.5 million common share equivalents. All warrants expire in accordance with their terms on November 29, 2022.

As a result of the restatement, we expect to recognize incremental non-operating and non-cash expense or income in 2018, 2019, and 2020 depending on the change in our stock price during the applicable period. In the future we will present net income excluding this mark-to-market impact as a non-GAAP metric, so that users of financial statements can both understand our historical results and more easily estimate future results.

Our previously reported net cash flow and debt will not be impacted. We anticipate that the first quarter 2021 non-operating and non-cash expense will be between $20 million and $35 million.

The following provides additional detail regarding how we currently anticipate the restatement will impact our various financial statements:

  • Balance Sheet Impact: as of the date of the combination of Williams Scotsman and DEAC, the fair value of the warrants will be reflected as warrant liabilities in our balance sheet.
  • Income Statement Impact: the impact of warrant repurchase, exchange or redemption transactions and any change in the fair value of the warrants is recognized in our income statement below operating income as “Change in fair value of warrant liabilities.”
  • Cash Flow Impact: Changes in the fair value of the warrants have no impact on net cash provided by operating activities. Cash received for the exercise of warrants is reflected in net cash (used in) provided by financing activities.

Effective June 30, 2020, only the 2015 private warrants will be considered warrant liabilities and subject to the accounting discussed above. The 2018 public warrants were reclassified to equity at June 30, 2020 and the 2015 public warrants were exercised, exchanged, redeemed, or extinguished by the end of the first quarter of 2020.

The estimates contained herein are subject to change as management completes the restatement, and our independent registered public accounting firm has not audited or reviewed these estimates. As a result, the expected financial impact described above is preliminary and subject to change.

Non-GAAP Financial Measures
This press release includes non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Free Cash Flow Margin, Pro Forma Revenue, Adjusted Net Income, and Net CAPEX. Adjusted EBITDA is defined as net income (loss) before income tax expense, net interest expense, depreciation and amortization adjusted for non-cash items considered non-core to business operations including net currency gains and losses, goodwill and other impairment charges, restructuring costs, costs to integrate acquired companies, costs incurred related to transactions, non-cash charges for stock compensation plans, gains and losses resulting from changes in fair value and extinguishment of warrant liabilities, and other discrete expenses. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue. Free Cash Flow is defined as net cash provided by operating activities, less purchases of, and proceeds from, rental equipment and property, plant and equipment, which are all included in cash flows from investing activities. Net CAPEX is defined as purchases of rental equipment and refurbishments and purchases of property, plant and equipment (collectively, “Total Capital Expenditures”), less proceeds from sale of rental equipment and proceeds from the sale of property, plant and equipment (collectively, “Total Proceeds”), which are all included in cash flows from investing activities. Our management believes that the presentation of Net CAPEX provides useful information to investors regarding the net capital invested into our rental fleet and plant, property and equipment each year to assist in analyzing the performance of our business. Pro Forma Revenue is defined the same as revenue, but includes pre-acquisition results from Mobile Mini for all periods presented. Adjusted Net Income is defined as Net Income plus or minus the impact of the change in the fair value of the warrant liability. The Company believes that our financial statements that will include the impact of this mark-to-market expense or income may not be necessarily reflective of the actual financial performance of our business. The Company believes that Adjusted EBITDA and Adjusted EBITDA margin are useful to investors because they (i) allow investors to compare performance over various reporting periods on a consistent basis by removing from operating results the impact of items that do not reflect core operating performance; (ii) are used by our board of directors and management to assess our performance; (iii) may, subject to the limitations described below, enable investors to compare the performance of the Company to its competitors; and (iv) provide additional tools for investors to use in evaluating ongoing operating results and trends. The Company believes that pro forma revenue is useful to investors because they allow investors to compare performance of the combined Company over various reporting periods on a consistent basis. The Company believes that Net CAPEX provide useful additional information concerning cash flow available to meet future debt service obligations. However, Adjusted EBITDA is not a measure of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income or cash flow from operating activities as an indicator of operating performance or liquidity. These non-GAAP measures should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. Other companies may calculate Adjusted EBITDA and other non-GAAP financial measures differently, and therefore the Company’s non-GAAP financial measures may not be directly comparable to similarly-titled measures of other companies. For reconciliation of the non-GAAP measures used in this press release (except as explained below), see “Reconciliation of Non-GAAP Financial Measures” included in this press release.

Information reconciling forward-looking Adjusted EBITDA to GAAP financial measures is unavailable to the Company without unreasonable effort. We cannot provide reconciliations of forward-looking Adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of our control and/or cannot be reasonably predicted, such as the provision for income taxes. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to the Company without unreasonable effort. Although we provide a range of Adjusted EBITDA that we believe will be achieved, we cannot accurately predict all the components of the Adjusted EBITDA calculation. The Company provides Adjusted EBITDA guidance because we believe that Adjusted EBITDA, when viewed with our results under GAAP, provides useful information for the reasons noted above.

Conference Call Information

WillScot Mobile Mini Holdings will host a conference call and webcast to discuss its first quarter 2021 results and outlook at 10 a.m. Eastern Time on Friday, April 30, 2021. The live call may be accessed by dialing (855) 312-9420 (US/Canada toll-free) or (210) 874-7774 (international) and asking to be connected to the WillScot Mobile Mini Holdings call. A live webcast will also be accessible via the “Events & Presentations” section of the Company’s investor relations website www.willscotmobilemini.com. Choose “Events” and select the information pertaining to the WillScot Mobile Mini Holdings First Quarter 2021 Conference Call. Additionally, there will be slides accompanying the webcast. Please allow at least 15 minutes prior to the call to register, download and install any necessary software. For those unable to listen to the live broadcast, an audio webcast of the call will be available for 60 days on the Company’s investor relations website.

About WillScot Mobile Mini Holdings

WillScot Mobile Mini Holdings trades on the Nasdaq stock exchange under the ticker symbol “WSC.” Headquartered in Phoenix, Arizona, the Company is a leading business services provider specializing in innovative flexible workspace and portable storage solutions. WillScot Mobile Mini services diverse end markets across all sectors of the economy from a network of approximately 275 branch locations and additional drop lots throughout the United States, Canada, Mexico, and the United Kingdom.

Forward-Looking Statements

This news release contains forward-looking statements (including the guidance/outlook contained herein) within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. The words “estimates,” “expects,” “anticipates,” “believes,” “forecasts,” “plans,” “intends,” “may,” “will,” “should,” “shall,” “outlook” and variations of these words and similar expressions identify forward-looking statements, which are generally not historical in nature. Certain of these forward-looking statements include statements relating to: the effects of the restatement on our financial statements; our long-term growth prospects, the ability of our capital structure to support the business, our future cash flow and liquidity, our deleveraging trajectory, continued VAPS penetration opportunities, and our revenue and our growth, Adjusted EBITDA and Net Capex outlooks. Forward-looking statements are subject to a number of risks, uncertainties, assumptions and other important factors, many of which are outside our control, which could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Although the Company believes that these forward-looking statements are based on reasonable assumptions, they are predictions and we can give no assurance that any such forward-looking statement will materialize. Important factors that may affect actual results or outcomes include, among others, our ability to acquire and integrate new assets and operations; our ability to achieve planned synergies related to acquisitions; our ability to manage growth and execute our business plan; our estimates of the size of the markets for our products; the rate and degree of market acceptance of our products; the success of other competing modular space and portable storage solutions that exist or may become available; rising costs adversely affecting our profitability; potential litigation involving our Company; general economic and market conditions impacting demand for our products and services; our ability to maintain an effective system of internal controls; and such other risks and uncertainties described in the periodic reports we file with the SEC from time to time (including our Form 10-K for the year ended December 31, 2020), which are available through the SEC’s EDGAR system at www.sec.gov and on our website. Any forward-looking statement speaks only at the date which it is made, and the Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Additional Information and Where to Find It

Additional information can be found on the company’s website at www.willscotmobilemini.com.

Contact Information
Investor Inquiries: Media Inquiries:
Nick Girardi Scott Junk
investors@willscotmobilemini.com scott.junk@willscotmobilemini.com


WillScot Corporation

Consolidated Statements of Operations
(in thousands, except share and per share data)

Three Months Ended
March 31,
(in thousands, except share and per share data) 2021
2020

(As Restated)
Revenues:
Leasing and services revenue:
Leasing $ 315,662 $ 188,352
Delivery and installation 83,504 51,070
Sales revenue:
New units 10,955 9,613
Rental units 15,202 6,786
     Total revenues 425,323 255,821
Costs:
Costs of leasing and services:
Leasing 69,895 49,809
Delivery and installation 70,136 43,865
Costs of sales:
New units 7,109 6,203
Rental units 9,105 3,806
Depreciation of rental equipment 55,698 45,948
Gross profit 213,380 106,190
Expenses:
Selling, general and administrative 116,485 65,537
Transaction costs 844 9,431
Other depreciation and amortization 18,324 3,074
Lease impairment expense and other related charges 1,253 1,661
Restructuring costs 3,142 (60 )
Currency losses, net 36 898
Other (income) expense, net (1,988 ) 276
    Operating income 75,284 25,373
Interest expense 29,964 28,257
Loss on extinguishment of debt 3,185
Fair value (gain) loss on warrant liabilities 20,000 – 35,000 (80,000) – (110,000)
Income (loss) before income tax 7,135 – 22,135 77,116 – 107,116
Income tax expense 10,481 790
Net income (loss) (3,346) – 11,654 76,326 – 106,326
Net loss attributable to non-controlling interest, net of tax (130 )
Net income (loss) attributable to WillScot Mobile Mini $ (3,346) – 11,654 $ 76,456 – 106,456

Unaudited Segment Operating Data

Comparison of Three Months Ended March 31, 2021 and 2020

Three Months Ended March 31, 2021
(in thousands, except for units on rent and rates) NA Modular NA Storage UK Storage Tank and
Pump
Total
Revenue $ 266,224 $ 107,748 $ 27,007 $ 24,344 $ 425,323
Gross profit $ 113,002 $ 72,619 $ 16,493 $ 11,266 $ 213,380
Adjusted EBITDA $ 97,371 $ 46,322 $ 11,064 $ 8,828 $ 163,585
Capital expenditures for rental equipment $ 39,135 $ 3,472 $ 6,770 $ 3,158 $ 52,535
Average modular space units on rent 84,795 16,439 9,115 110,349
Average modular space utilization rate 67.6 % 79.4 % 83.8 % % 70.3 %
Average modular space monthly rental rate $ 737 $ 535 $ 404 $ $ 679
Average portable storage units on rent 14,903 105,810 24,647 145,360
Average portable storage utilization rate 60.3 % 73.9 % 89.2 % % 74.4 %
Average portable storage monthly rental rate $ 124 $ 148 $ 82 $ $ 135
Average tank and pump solutions rental fleet utilization based on original equipment cost % % % 67.4 % 67.4 %
Three Months Ended March 31, 2020
(in thousands, except for units on rent and rates) NA Modular NA Storage UK Storage Tank and
Pump
Total
Revenue $ 255,821 $ $ $ $ 255,821
Gross profit $ 106,190 $ $ $ $ 106,190
Adjusted EBITDA $ 89,544 $ $ $ $ 89,544
Capital expenditures for rental equipment $ 39,648 $ $ $ $ 39,648
Average modular space units on rent 87,989 87,989
Average modular space utilization rate 69.2 % % % % 69.2 %
Average modular space monthly rental rate $ 653 $ $ $ $ 653
Average portable storage units on rent 16,346 16,346
Average portable storage utilization rate 64.1 % % % % 64.1 %
Average portable storage monthly rental rate $ 119 $ $ $ $ 119
Average tank and pump solutions rental fleet utilization based on original equipment cost % % % % %

Reconciliation of Non-GAAP Financial Measures

We use certain non-GAAP financial information that we believe is important for purposes of comparison to prior periods and development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of our ongoing operations and analyze our business performance and trends.

We evaluate business segment performance on Adjusted EBITDA, a non-GAAP measure that excludes certain items as described in the reconciliation of our consolidated net income (loss) to Adjusted EBITDA reconciliation below. We believe that evaluating segment performance excluding such items is meaningful because it provides insight with respect to intrinsic operating results of the Company.

We also regularly evaluate gross profit by segment to assist in the assessment of the operational performance of each operating segment. We consider Adjusted EBITDA to be the more important metric because it more fully captures the business performance of the segments, inclusive of indirect costs.

We also evaluate Free Cash Flow, a non-GAAP measure that provides useful information concerning cash flow available to meet future debt service obligations and working capital requirements.

Adjusted EBITDA

We define EBITDA as net income (loss) plus interest (income) expense, income tax expense (benefit), depreciation and amortization. Our adjusted EBITDA (“Adjusted EBITDA”) reflects the following further adjustments to EBITDA to exclude certain non-cash items and the effect of what we consider transactions or events not related to our core business operations:

  • Currency (gains) losses, net: on monetary assets and liabilities denominated in foreign currencies other than the subsidiaries’ functional currency. Substantially, all such currency gains (losses) are unrealized and attributable to financings due to and from affiliated companies.
  • Goodwill and other impairment charges related to non-cash costs associated with impairment charges to goodwill, other intangibles, rental fleet and property, plant and equipment.
  • Restructuring costs, lease impairment expense, and other related charges associated with restructuring plans designed to streamline operations and reduce costs including employee and lease termination costs.
  • Transaction costs including legal and professional fees and other transaction specific related costs.
  • Costs to integrate acquired companies, including outside professional fees, non-capitalized costs associated with system integrations, non-lease branch and fleet relocation expenses, employee training costs, and other costs required to realize cost or revenue synergies.
  • Non-cash charges for stock compensation plans.
  • Gains and losses resulting from changes in fair value and extinguishment of warrant liabilities.
  • Other expense includes consulting expenses related to certain one-time projects, financing costs not classified as interest expense, and gains and losses on disposals of property, plant, and equipment.

Adjusted EBITDA has limitations as an analytical tool, and you should not consider the measure in isolation or as a substitute for net income (loss), cash flow from operations or other methods of analyzing the Company’s results as reported under US GAAP. Some of these limitations are:

  • Adjusted EBITDA does not reflect changes in, or cash requirements for our working capital needs;
  • Adjusted EBITDA does not reflect our interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness;
  • Adjusted EBITDA does not reflect our tax expense or the cash requirements to pay our taxes;
  • Adjusted EBITDA does not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments;
  • Adjusted EBITDA does not reflect the impact on earnings or changes resulting from matters that we consider not to be indicative of our future operations;
  • although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements; and
  • other companies in our industry may calculate Adjusted EBITDA differently, limiting its usefulness as a comparative measure.

Because of these limitations, Adjusted EBITDA should not be considered as discretionary cash available to reinvest in the growth of our business or as measures of cash that will be available to meet our obligations. The following tables provide unaudited reconciliations of Net income (loss) to Adjusted EBITDA.

Adjusted EBITDA

Three Months Ended
March 31,
(in thousands) 2021
2020

(As Restated)
Net income (loss) $ (3,346) – 11,654 $ 76,326 – 106,326
Fair value (gain) loss on warrant liabilities 20,000 – 35,000 (80,000) – (110,000 )
Income tax expense 10,481 790
Loss on extinguishment of debt 3,185
Interest expense 29,964 28,257
Depreciation and amortization 74,022 49,022
Currency (gains) losses, net 36 898
Restructuring costs, lease impairment expense and other related charges 4,395 1,601
Merger transaction costs 844 9,431
Integration costs 7,342 1,685
Stock compensation expense 3,514 1,787
Other (1,852 ) (253 )
Adjusted EBITDA $ 163,585 $ 89,544

Adjusted EBITDA Margin Non-GAAP Reconciliation

We define Adjusted EBITDA Margin as Adjusted EBITDA divided by Revenue. Management believes that the presentation of Adjusted EBITDA Margin provides useful information to investors regarding the performance of our business.

The following tables provide unaudited reconciliations of Adjusted EBITDA Margin.

Three Months Ended March 31,
(in thousands) 2021 2020
Adjusted EBITDA (A) $ 163,585 $ 89,544
Revenue (B) $ 425,323 $ 255,821
Adjusted EBITDA Margin (A/B) 38.5 % 35.0 %


Adjusted Net Income Non-GAAP Reconciliation
We define Adjusted Net Income as Net Income plus or minus the impact of the change in the fair value of the warrant liability. Management believes that our financial statements that will include the impact of this mark-to-market expense or income may not be necessarily reflective of the actual financial performance of our business.

Three Months Ended March 31,
(in thousands) 2021 2020
(As Restated)
Net income (loss) $ (3,346) – 11,654 $ 76,326 – 106,326
Fair value (gain) loss on warrant liabilities 20,000 – 35,000 (80,000) – (110,000 )
Adjusted Net Income 31,654 (3,544 )


Free Cash Flow
We define Free Cash Flow as net cash provided by operating activities, less purchases of, and proceeds from, rental equipment and property, plant and equipment, which are all included in cash flows from investing activities. Management believes that the presentation of Free Cash Flow provides useful information to investors regarding our results of operations because it provides useful additional information concerning cash flow available to meet future debt service obligations and working capital requirements.

The following table provides unaudited reconciliations of net cash provided by operating activities to Free Cash Flow.

Three Months Ended
March 31,
(in thousands) 2021 2020
Net cash provided by operating activities $ 122,071 $ 38,348
Purchase of rental equipment and refurbishments (52,535 ) (39,648 )
Proceeds from sale of rental equipment 15,202 6,786
Purchase of property, plant and equipment (7,307 ) (1,518 )
Proceeds from the sale of property, plant and equipment 13,729 3,840
Free Cash Flow $ 91,160 $ 7,808


Adjusted Gross Profit and Adjusted Gross Profit Percentage
We define Adjusted Gross Profit as gross profit plus depreciation on rental equipment. Adjusted Gross Profit Percentage is defined as Adjusted Gross Profit divided by revenue. Adjusted Gross Profit and Percentage are not measurements of our financial performance under GAAP and should not be considered as an alternative to gross profit, gross profit percentage, or other performance measures derived in accordance with GAAP. In addition, our measurement of Adjusted Gross Profit and Adjusted Gross Profit Percentage may not be comparable to similarly titled measures of other companies. Our management believes that the presentation of Adjusted Gross Profit and Adjusted Gross Profit Percentage provides useful information to investors regarding our results of operations because it assists in analyzing the performance of our business.

The following table provides unaudited reconciliations of gross profit to Adjusted Gross Profit and Adjusted Gross Profit Percentage.

Three Months Ended
March 31,
(in thousands) 2021 2020
Revenue (A) $ 425,323 $ 255,821
Gross profit (B) $ 213,380 $ 106,190
Depreciation of rental equipment 55,698 45,948
Adjusted Gross Profit (C) $ 269,078 $ 152,138
Gross Profit Percentage (B/A) 50.2 % 41.5 %
Adjusted Gross Profit Percentage (C/A) 63.3 % 59.5 %

Net CAPEX

We define Net CAPEX as purchases of rental equipment and refurbishments and purchases of property, plant and equipment (collectively, “Total Capital Expenditures”), less proceeds from sale of rental equipment and proceeds from the sale of property, plant and equipment (collectively, “Total Proceeds”), which are all included in cash flows from investing activities. Our management believes that the presentation of Net CAPEX provides useful information to investors regarding the net capital invested into our rental fleet and plant, property and equipment each year to assist in analyzing the performance of our business.

The following table provides unaudited reconciliations of Net CAPEX:

Three Months Ended
March 31,
(in thousands) 2021 2020
Total purchases of rental equipment and refurbishments $ (52,535 ) $ (39,648 )
Total proceeds from sale of rental equipment 15,202 6,786
Net CAPEX for Rental Equipment (37,333 ) (32,862 )
Purchase of property, plant and equipment (7,307 ) (1,518 )
Proceeds from sale of property, plant and equipment 13,729 3,840
Net CAPEX $ (30,911 ) $ (30,540 )

 

 

Fortinet Reports First Quarter 2021 Financial Results

First Quarter 2021 Highlights

  • Total revenue of $710.3 million, up 23% year over year
  • Product revenue of $240.7 million, up 25% year over year
  • Service revenue of $469.6 million, up 22% year over year
  • Billings of $850.6 million, up 27% year over year1
  • Deferred revenue of $2.75 billion, up 25% year over year
  • GAAP operating margin of 17.1%, down 310 basis points year over year
  • Non-GAAP operating margin of 24.5%, up 210 basis points year over year1
  • GAAP diluted net income per share of $0.64
  • Non-GAAP diluted net income per share of $0.811
  • Cash flow from operations of $315.9 million
  • Free cash flow of $263.8 million1

SUNNYVALE, Calif., April 29, 2021 (GLOBE NEWSWIRE) — Fortinet® (Nasdaq: FTNT), a global leader in broad, integrated and automated cybersecurity solutions, today announced financial results for the first quarter ended March 31, 2021.

“We delivered strong revenue and billings growth in the first quarter while investing to increase market share across our existing businesses and drive growth in newer product areas such as 5G, SASE, and SD-WAN,” said Ken Xie, Founder, Chairman, and Chief Executive Officer. “Fortinet’s platform of on-premise and cloud security products is resonating with new and existing customers, confirmed by our highest quarterly product revenue growth in five years. With good visibility and strong business momentum, we are pleased to raise our full year guidance.”

Financial Highlights for the First Quarter of 2021

  • Revenue: Total revenue was $710.3 million for the first quarter of 2021, an increase of 23.0% compared to $577.7 million for the same quarter of 2020.
  • Product Revenue: Product revenue was $240.7 million for the first quarter of 2021, an increase of 25.2% compared to $192.3 million for the same quarter of 2020.
  • Service Revenue: Service revenue was $469.6 million for the first quarter of 2021, an increase of 21.8% compared to $385.4 million for the same quarter of 2020.
  • Billings1: Total billings were $850.6 million for the first quarter of 2021, an increase of 27.4% compared to $667.8 million for the same quarter of 2020.
  • Deferred Revenue: Total deferred revenue was $2.75 billion as of March 31, 2021, an increase of 24.8% compared to $2.20 billion as of March 31, 2020.
  • GAAP Operating Income and Margin: GAAP operating income was $121.6 million for the first quarter of 2021, representing a GAAP operating margin of 17.1%. GAAP operating income was $116.7 million for the same quarter of 2020, representing a GAAP operating margin of 20.2%.
  • Non-GAAP Operating Income and Margin1: Non-GAAP operating income was $173.9 million for the first quarter of 2021, representing a non-GAAP operating margin of 24.5%. Non-GAAP operating income was $129.2 million for the same quarter of 2020, representing a non-GAAP operating margin of 22.4%.
  • GAAP Net Income and Diluted Net Income Per Share: GAAP net income was $107.2 million for the first quarter of 2021, compared to GAAP net income of $104.6 million for the same quarter of 2020. GAAP diluted net income per share was $0.64 for the first quarter of 2021, based on 166.4 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $0.60 for the same quarter of 2020, based on 174.2 million diluted weighted-average shares outstanding.
  • Non-GAAP Net Income and Diluted Net Income Per Share1: Non-GAAP net income was $135.6 million for the first quarter of 2021, compared to non-GAAP net income of $105.1 million for the same quarter of 2020. Non-GAAP diluted net income per share was $0.81 for the first quarter of 2021, based on 166.4 million diluted weighted-average shares outstanding, compared to $0.60 for the same quarter of 2020, based on 174.2 million diluted weighted-average shares outstanding.
  • Cash Flow: In the first quarter of 2021, cash flow from operations was $315.9 million compared to $319.4 million in the same quarter of 2020.
  • Free Cash Flow1: Free cash flow was $263.8 million during the first quarter of 2021, compared to $241.8 million for the same quarter of 2020.

Guidance

For the second quarter of 2021, Fortinet currently expects:

  • Revenue in the range of $733 million to $747 million
  • Billings in the range of $860 million to $880 million
  • Non-GAAP gross margin in the range of 78.5% to 79.5%
  • Non-GAAP operating margin in the range of 24.5% to 25.5%
  • Diluted non-GAAP net income per share in the range of $0.83 to $0.88, assuming a non-GAAP effective tax rate of 21%. This assumes a diluted share count of 168 million to 170 million.

For the fiscal year 2021, Fortinet currently expects:

  • Revenue in the range of $3.080 billion to $3.130 billion
  • Service revenue in the range of $2.020 billion to $2.050 billion
  • Billings in the range of $3.685 billion to $3.745 billion
  • Non-GAAP gross margin in the range of 78.0% to 80.0%
  • Non-GAAP operating margin in the range of 25.0% to 27.0%
  • Diluted non-GAAP net income per share in the range of $3.65 to $3.80, assuming a non-GAAP effective tax rate of 21%. This assumes a diluted share count of 170 million to 172 million.

These statements are forward looking and actual results may differ materially. Refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets and gain on intellectual property matter. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.

1 A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures”.

Conference Call Details

Fortinet will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the earnings results. The call can be accessed by dialing (877) 303-6913 (domestic) or (224) 357-2188 (international) with conference ID # 1998423. A live webcast of the conference call and supplemental slides will be accessible from the Investor Relations page of Fortinet’s website at https://investor.fortinet.com and a replay will be archived and accessible at https://investor.fortinet.com/events-and-presentations. A replay of this conference call can also be accessed through May 6 by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) with conference ID #1998423.

Second Quarter 2021 Virtual Conference Participation Schedule:

  • J.P. Morgan Virtual 49th Annual Global Technology, Media and Communications Conference
    May 25, 2021
  • Bernstein’s Virtual 37th Annual Strategic Decisions Conference
    June 2, 2021
  • Bank of America’s Virtual 2021 Global Technology Conference
    June 8, 2021

Members of Fortinet’s management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Fortinet’s conference presentations are expected to be available via webcast on the company’s web site. To access the most updated information and listen to the webcast of each event, please visit the Investor Relations page of Fortinet’s website at https://investor.fortinet.com. The schedule is subject to change.

About Fortinet (www.fortinet.com)

Fortinet (Nasdaq: FTNT) secures the largest enterprise, service provider, and government organizations around the world. Fortinet empowers its customers with complete visibility and control across the expanding attack surface and the power to take on ever-increasing performance requirements today and into the future. The Fortinet Security Fabric platform can address the most critical security challenges and protect data across the entire digital infrastructure, whether in networked, application, multi-cloud or edge environments. Both a technology company and a learning organization, the Fortinet Network Security Institute has one of the largest and broadest cybersecurity training programs in the industry. Learn more at https://www.fortinet.com, the Fortinet Blog or FortiGuard Labs.

Copyright © 2021 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAI, FortiAP, FortiAppEngine, FortiAppMonitor, FortiAuthenticator, FortiBalancer, FortiBIOS, FortiBridge, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCenter, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCWP, FortiDB, FortiDDoS, FortiDeceptor, FortiDirector, FortiDNS, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFone, FortiGSLB, FortiHypervisor, FortiInsight, FortiIsolator, FortiLocator, FortiLog, FortiMeter, FortiMoM, FortiMonitor, FortiNAC, FortiPartner, FortiPenTest, FortiPhish, FortiPortal, FortiPresence , FortiProtect, FortiProxy, FortiRecorder, FortiReporter, FortiSASE, FortiScan, FortiSDNConnector, FortiSIEM, FortiSDWAN, FortiSMS, FortiSOAR, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiVoIP, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLCOS and FortiWLM. Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.

FTNT-F

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding demand for our products and services, guidance and expectations around future financial results, including guidance and expectations for the second quarter and full year 2021, statements regarding the momentum in our business and future growth expectations and objectives and statements regarding growth in market demand. Although we attempt to be accurate in making forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based such that actual results are materially different from our forward-looking statements in this release. Important factors that could cause results to differ materially from the statements herein include the following: general economic risks, including those caused by the COVID-19 pandemic; negative impacts from the COVID-19 pandemic on sales, billings, revenue, demand and buying patterns, component supply and ability to manufacture products to meet demand in a timely fashion, and costs such as possible increased costs for shipping and components; global economic conditions, country-specific economic conditions, and foreign currency risks; competitiveness in the security market; the dynamic nature of the security market and its products and services; specific economic risks worldwide and in different geographies, and among different customer segments; uncertainty regarding demand and increased business and renewals from existing customers; uncertainties around continued success in sales growth and market share gains; actual or perceived vulnerabilities in our supply chain, products or services, and any actual or perceived breach of our network or our customers’ networks; longer sales cycles, particularly for larger enterprise, service providers, government and other large organization customers; the effectiveness of our salesforce and failure to convert sales pipeline into final sales; risks associated with successful implementation of multiple integrated software products and other product functionality risks; risks associated with integrating acquisitions and changes in circumstances and plans associated therewith, including, among other risks, changes in plans related to product and services integrations, product and services plans and sales strategies; sales and marketing execution risks; execution risks around new product development and introductions and innovation; litigation and disputes and the potential cost, distraction and damage to sales and reputation caused thereby or by other factors; cybersecurity threats, breaches and other disruptions; market acceptance of new products and services; the ability to attract and retain personnel; changes in strategy; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive; risks associated with the adoption of, and demand for, our products and services in general and by specific customer segments, including those caused by the COVID-19 pandemic; competition and pricing pressure; product inventory shortages for any reason, including those caused by the COVID-19 pandemic; risks associated with business disruption caused by natural disasters and health emergencies such as earthquakes, fires, power outages, typhoons, floods, health epidemics and viruses such as the COVID-19 pandemic, and by manmade events such as civil unrest, labor disruption, international trade disputes, international conflicts, terrorism, wars, and critical infrastructure attacks; tariffs, trade disputes and other trade barriers, and negative impact on sales based on geo-political dynamics and disputes and protectionist policies; any political and government disruption around the world, including the impact of any future shutdowns of the U.S. government; and the other risk factors set forth from time to time in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission (SEC), copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events.

COVID-19 Impact

While the broader implications of the COVID-19 pandemic on our employees and overall financial performance remain uncertain, we have seen certain impacts on our business and operations, results of operations, financial condition, cash flows, liquidity and capital and financial resources. Going forward, the situation is uncertain, rapidly changing and hard to predict, and the COVID-19 pandemic may have a material negative impact on our future periods, including our results for the three months ending June 30, 2021, our annual results for 2021, and beyond. To highlight the uncertainty remaining for the three month period ending June 30, 2021, it should be noted that, due to customer buying patterns and the efforts of our sales force and channel partners to meet or exceed quarterly quotas, we have historically received a substantial portion of each quarter’s sales orders and generated a substantial portion of each quarter’s billings and revenue during the last two weeks of the quarter. If we experience significant changes in our billings growth rates, it will impact product revenue in the current quarter and FortiGuard and FortiCare service revenues in subsequent quarters, as we sell annual and multi-year service contracts that are recognized ratably over the contractual service term. In addition, the broader implications of the pandemic on our business and operations and our financial results, including the extent to which the effects of the pandemic will impact future results and growth in the cybersecurity industry, remain uncertain. The duration and severity of the economic downturn from the pandemic may negatively impact our business and operations, results of operations, financial condition, cash flows, liquidity and capital and financial resources in a material way. As a result, the effects of the pandemic may not be fully reflected in our results of operations until future periods.

Non-GAAP Financial Measures

We have provided in this release financial information that has not been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). These non-GAAP financial and liquidity measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.

Billings (non-GAAP). We define billings as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period, less any deferred revenue balances acquired from business combination(s) during the period. We consider billings to be a useful metric for management and investors because billings drive current and future revenue, which is an important indicator of the health and viability of our business. There are a number of limitations related to the use of billings instead of GAAP revenue. First, billings include amounts that have not yet been recognized as revenue and are impacted by the term of security and support agreements. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures. Management accounts for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with GAAP revenue.

Free cash flow (non-GAAP). We define free cash flow as net cash provided by operating activities minus purchases of property and equipment and excluding any significant non-recurring items, such as proceeds from intellectual property matter. We believe free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after capital expenditures and net of proceeds from intellectual property matter, can be used for strategic opportunities, including repurchasing outstanding common stock, investing in our business, making strategic acquisitions and strengthening the balance sheet. A limitation of using free cash flow rather than the GAAP measures of cash provided by or used in operating activities, investing activities, and financing activities is that free cash flow does not represent the total increase or decrease in the cash and cash equivalents balance for the period because it excludes cash flows from significant non-recurring items, such as proceeds from intellectual property matter, investing activities other than capital expenditures and cash flows from financing activities. Management accounts for this limitation by providing information about our capital expenditures and other investing and financing activities on the face of the cash flow statement and under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by presenting cash flows from investing and financing activities in our reconciliation of free cash flow. In addition, it is important to note that other companies, including companies in our industry, may not use free cash flow, may calculate free cash flow in a different manner than we do or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a comparative measure.

Non-GAAP operating income and operating margin. We define non-GAAP operating income as operating income plus stock-based compensation, impairment and amortization of acquired intangible assets, less gain on intellectual property matter and, when applicable, other significant non-recurring items in a given quarter, such as non-recurring gains or losses on litigation-related matters. Non-GAAP operating margin is defined as non-GAAP operating income divided by GAAP revenue. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the items noted above so that our management and investors can compare our recurring core business operating results over multiple periods. There are a number of limitations related to the use of non-GAAP operating income instead of operating income calculated in accordance with GAAP. First, non-GAAP operating income excludes the items noted above. Second, the components of the costs that we exclude from our calculation of non-GAAP operating income may differ from the components that peer companies exclude when they report their non-GAAP results of operations. Management accounts for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP operating income and evaluating non-GAAP operating income together with operating income calculated in accordance with GAAP.

Non-GAAP net income and diluted net income per share. We define non-GAAP net income as net income or loss plus the items noted above under non-GAAP operating income and operating margin. In addition, we adjust non-GAAP net income and diluted net income per share for gains or losses on investments in privately held companies and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We define non-GAAP diluted net income per share as non-GAAP net income divided by the non-GAAP diluted weighted-average shares outstanding. We consider these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income and non-GAAP operating margin. However, in order to provide a more complete picture of our recurring core business operating results, we include in non-GAAP net income and non-GAAP diluted net income per share, the tax adjustment required resulting in an effective tax rate on a non-GAAP basis, which often differs from the GAAP tax rate. We believe the non-GAAP effective tax rates we use are reasonable estimates of normalized tax rates for our current and prior fiscal years under our global operating structure. The same limitations described above regarding our use of non-GAAP operating income and non-GAAP operating margin apply to our use of non-GAAP net income and non-GAAP diluted net income per share. We account for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income and non-GAAP diluted net income per share and evaluating non-GAAP net income and non-GAAP diluted net income per share together with net income or loss and diluted net income per share calculated in accordance with GAAP.

FORTINET, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in millions)

March 31,
2021
December 31,
2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,860.2 $ 1,061.8
Short-term investments 1,076.7 775.5
Accounts receivable—net 637.3 720.0
Inventory 149.6 139.8
Prepaid expenses and other current assets 57.4 43.3
Total current assets 3,781.2 2,740.4
LONG-TERM INVESTMENTS 151.1 118.3
PROPERTY AND EQUIPMENT—NET 494.2 448.0
DEFERRED CONTRACT COSTS 320.2 304.8
DEFERRED TAX ASSETS 260.6 245.2
GOODWILL AND OTHER INTANGIBLE ASSETS—NET 131.5 124.6
OTHER ASSETS 143.4 63.2
TOTAL ASSETS $ 5,282.2 $ 4,044.5
LIABILITIES AND STOCKHOLDERS EQUITY
CURRENT LIABILITIES:
Accounts payable $ 129.5 $ 141.6
Accrued liabilities 143.2 149.2
Accrued payroll and compensation 141.9 145.9
Deferred revenue 1,465.1 1,392.8
Total current liabilities 1,879.7 1,829.5
DEFERRED REVENUE 1,280.5 1,212.5
INCOME TAX LIABILITIES 97.7 90.3
LONG-TERM DEBT 987.0
OTHER LIABILITIES 56.5 56.2
Total liabilities 4,301.4 3,188.5
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock 0.2 0.2
Additional paid-in capital 1,225.2 1,207.2
Accumulated other comprehensive income 0.3 0.7
Accumulated deficit (244.9 ) (352.1 )
Total stockholders’ equity 980.8 856.0
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 5,282.2 $ 4,044.5

FORTINET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in millions, except per share amounts)

Three Months Ended
  March 31,
2021
March 31,
2020
REVENUE:
Product $ 240.7 $ 192.3
Service 469.6 385.4
Total revenue 710.3 577.7
COST OF REVENUE:
Product 91.3 76.3
Service 65.3 52.4
Total cost of revenue 156.6 128.7
GROSS PROFIT:
Product 149.4 116.0
Service 404.3 333.0
Total gross profit 553.7 449.0
OPERATING EXPENSES:
Research and development 97.2 80.3
Sales and marketing 304.0 260.0
General and administrative 32.0 28.8
Gain on intellectual property matter (1.1 ) (36.8 )
Total operating expenses 432.1 332.3
OPERATING INCOME 121.6 116.7
INTEREST INCOME (EXPENSE) —NET (0.2 ) 9.2
OTHER EXPENSE—NET (2.0 ) (8.0 )
INCOME BEFORE INCOME TAXES 119.4 117.9
PROVISION FOR INCOME TAXES 12.2 13.3
NET INCOME $ 107.2 $ 104.6
Net income per share:
Basic $ 0.66 $ 0.61
Diluted $ 0.64 $ 0.60
Weighted-average shares outstanding:
Basic 163.0 170.6
Diluted 166.4 174.2

FORTINET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in millions)

Three Months Ended
  March 31,
2021
March 31,
2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 107.2 $ 104.6
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation 49.5 44.8
Amortization of deferred contract costs 39.7 31.3
Depreciation and amortization 17.3 17.6
Amortization of investment premium (discounts) 1.2 (0.6 )
Other 0.4 4.3
Changes in operating assets and liabilities:
Accounts receivable—net 82.5 69.6
Inventory (14.7 ) 6.7
Prepaid expenses and other current assets (13.4 ) (12.9 )
Deferred contract costs (55.2 ) (43.0 )
Deferred tax assets (15.2 ) 7.3
Other assets (4.8 ) 0.9
Accounts payable (12.4 ) (9.0 )
Accrued liabilities (2.8 ) 1.8
Accrued payroll and compensation (3.9 ) 1.8
Other liabilities 0.2 4.1
Deferred revenue 140.3 90.1
Net cash provided by operating activities 315.9 319.4
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments (647.1 ) (368.3 )
Sales of investments 18.6 126.8
Maturities of investments 292.4 277.2
Purchases of property and equipment (52.1 ) (27.6 )
Purchase of investment in privately held company (75.0 )
Payments made in connection with business combination, net of cash acquired (10.3 ) (3.1 )
Other (0.4 )
Net cash provided by (used in) investing activities (473.5 ) 4.6
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt, net of discount and underwriting fees 989.4
Payments for debt issuance costs (1.9 )
Repurchase and retirement of common stock (889.9 )
Proceeds from issuance of common stock 9.9 7.4
Taxes paid related to net share settlement of equity awards (41.4 ) (37.8 )
Other (0.1 )
Net cash provided by (used in) financing activities 956.0 (920.4 )
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 798.4 (596.4 )
CASH AND CASH EQUIVALENTS—Beginning of period 1,061.8 1,222.5
CASH AND CASH EQUIVALENTS—End of period $ 1,860.2 $ 626.1

Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures
(Unaudited, in millions, except per share amounts)
Reconciliation of net cash provided by operating activities to free cash flow

Three Months Ended
March 31,
2021
March 31,
2020
Net cash provided by operating activities $ 315.9 $ 319.4
Less: Purchases of property and equipment (52.1 ) (27.6 )
Less: Proceeds from intellectual property matter (50.0 )
Free cash flow $ 263.8 $ 241.8
Net cash provided by (used in) investing activities $ (473.5 ) $ 4.6
Net cash provided by (used in) financing activities $ 956.0 $ (920.4 )

Reconciliation of GAAP operating income to non-GAAP operating income, operating margin, net income and diluted net income per share

Three Months Ended March 31, 2021 Three Months Ended March 31, 2020
GAAP
Results
Adjustments Non-GAAP
Results
GAAP
Results
Adjustments Non-GAAP
Results
Operating income $ 121.6 $ 52.3 (a) $ 173.9 $ 116.7 $ 12.5 (b) $ 129.2
Operating margin 17.1 % 24.5 % 20.2 % 22.4 %
Adjustments:
Stock-based
compensation
50.0 45.3
Amortization of
acquired intangible assets
3.4 4.0
Gain on intellectual
property matter
(1.1 ) (36.8 )
Loss on investments in
privately-held
companies
4.3 (c)
Tax adjustment (23.9 ) (d) (16.3 ) (d)
Net income $ 107.2 $ 28.4 $ 135.6 $ 104.6 $ 0.5 $ 105.1
Diluted net income per share $ 0.64 $ 0.81 $ 0.60 $ 0.60
Shares used in diluted net
income per share
calculations
166.4 166.4 174.2 174.2
(a) To exclude $50.0 million of stock-based compensation and $3.4 million of amortization of acquired intangible assets, offset by a $1.1 million gain on intellectual property matter, in the three months ended March 31, 2021.
(b)  To exclude $45.3 million of stock-based compensation and $4.0 million of amortization of acquired intangible assets, offset by a $36.8 million gain on intellectual property matter, in the three months ended March 31, 2020.
(c) To exclude a $4.3 million impairment charge on an investment in a privately held company in the three months ended March 31, 2020.
(d)  Non-GAAP financial information is adjusted to an effective tax rate of 21% and 22% in the three months ended March 31, 2021 and 2020, respectively, on a non-GAAP basis, which differs from the GAAP effective tax rate.

Reconciliation of total revenue to total billings

Three Months Ended
March 31,
2021
March 31,
2020
Total revenue $ 710.3 $ 577.7
Add: Change in deferred revenue 140.3 90.1
Less: Deferred revenue balance acquired in business acquisition
Total billings $ 850.6 $ 667.8
Investor Contact: Media Contact:
Peter Salkowski Sandra Wheatley
Fortinet, Inc. Fortinet, Inc.
408-331-4595 408-391-9408
psalkowski@fortinet.com swheatley@fortinet.com

 

Link Health and George Clinical Create New Mode of Pharmaceutical Research and Development in China

BEIJING and SYDNEY, April 29, 2021 (GLOBE NEWSWIRE) — Guangzhou Link Health Pharma Co., Ltd. (Link Health) and George Clinical Pty Ltd (George Clinical) have signed a term sheet to enter into a strategic agreement to establish an independent joint venture clinical development company called Link-George Clinical Research Co., Ltd (Link-George). Link-George will deliver clinical trials for Link Health and related companies that it has entered into licensing deals with. The plan is for Link-George to launch six clinical trials in 2021 and this is expected to grow as Link Health’s in-licensed portfolio expands. Link-George will be majority owned by Link Health and operationally led by George Clinical with a board that comprises representatives from both Link Health and George Clinical.

“We are very excited to enter into this joint venture with Link Health as part of a novel platform providing a one-stop service for in-licensing, clinical development, marketing authorization and commercialization.  This will enable both companies to further optimize the tremendous growth in the pharmaceutical industry in China and in so doing, help to advance clinical research in this region,” stated George Clinical Chief Executive Officer James Cheong.

George Clinical is a leading Asia Pacific contract research organization with more than 20 years of experience and a global reach across 38 countries. Collaborating with clients in the areas of biopharmaceuticals, medical devices and diagnostics, it provides a full range of clinical trial services related to all trial phases, registration and post-marketing trials. George Clinical is differentiated by its extensive scientific networks and has rich project execution experience in therapeutic areas such as oncology, kidney and metabolic disease, cardiovascular, respiratory, CNS and medical devices.  George Clinical brings a scientific, flexible and customer-orientated approach to delivering clinical development services.

Established in 2012, Link Health Pharma is committed to satisfying the unmet clinical needs of patients in China and the Asia-Pacific region with affordable solutions. Through independent research and development and global technical cooperation, Link Health has developed 14 varieties of innovative drugs for different stages of diseases, including the major chronic diseases related to aging. Since 2014, Link Health has completed more than eight deals and created a pipeline with six drugs assets in the IND and NDA stage. Link Health also contributed in several licensing deals to support partnered affiliates and their regional registrations.

Link-George will combine the expertise of Link Health and George Clinical to achieve higher efficiency and deliver greater value across a suite of services from pharma licensing to project delivery. Link Health brings in-depth knowledge in the evaluation of pharma targets as well as consultation on pharma licensing and the regulatory and commercial landscape in China. George Clinical has deep experience leveraging its scientific networks, clinical protocol design, study management, data science and global trial execution. Bringing together the complementary strengths of both companies will provide Link Health and its related businesses with a value-add service in China that combines pharma licensing and drug development innovation that is second to none.  Yin Zhenfei, George Clinical’s business unit head in China will serve as the General Manager of the new joint venture.

Dr. Song Yan, CEO and founder of Link Health, said, “To speed up the pace of going global, Link Health has been expanding business in North America, Europe, Asia-Pacific and other regions. Since 2018, the European subsidiary of Link Health has started to play a significant role introducing international advanced technologies, establishing expert networks, etc. Through this joint venture, Link Health and George Clinical will complement each other’s advantages in the fields of drug-ability evaluation, medical writing, medical statistics, clinical protocol design, real-world research, and jointly provide Link Health and its customers with end-to-end integrated solutions.”

“I am pleased that two complementary and innovative companies have come together with foresight, agility and trust to establish this joint venture. George Clinical is happy to utilize its clinical delivery expertise to support the growth of this joint venture in China to meet the needs of Link Health and its in-licensed drug portfolio. I wish our joint venture every success as it contributes to advance new treatments for unmet medical needs in China,” stated George Clinical Executive Chairman Glenn Kerkhof.

About George Clinical

George Clinical is a leading global clinical research organization founded in Asia-Pacific driven by scientific expertise and operational excellence. With 20 years of experience and more than 300 people managing 38 geographical locations throughout the USA, Asia-Pacific region and Europe, George Clinical provides the full range of clinical trial services to biopharmaceutical, medical device, and diagnostic customers, for all trial phases, registration and post-marketing trials.

Contact:          mreabold@georgeclinical.com

Website:         https://www.georgeclinical.com

LinkedIn:         https://www.linkedin.com/company/george-clinical-pty-ltd

Twitter:           https://twitter.com/george_clinical

Facebook:       https://www.facebook.com/georgeclinical

For more information of George Clinical, contact:

Donna McDonnell

M +1-901-229-5345

E dmcdonnell@georgeclinical.com

W georgeclinical.com | georgeinstitute.org

For more information on Link Health, contact:

Shaofeng He

T (0086) 020-82118463

E office@healthinlink.com

W www.healthinlink.com/en

B3-601, No 162 Science Avenue, Huangpu District, Guangzhou, China

400 Amsterdam Science Park, Netherlands

Donna McDonnell
George Clinical
901-229-5345
dmcdonnell@georgeclinical.com