CWB reports third quarter 2020 financial and strategic performance

CWB reports third quarter 2020 financial and strategic performance

Third Quarter 2020 Highlights(1) (compared to the same period in the prior year)Adjusted EPSTotal revenueLoans(2)Branch-raised depositsCommon share dividend declared(3) $0.74$226. CANTON, Mass., Aug. 27, 2020 (GLOBE NEWSWIRE) — Destination XL Group, Inc. (NASDAQ: DXLG), the largest omni-channel specialty retailer of big and tall… This is CNBC’s markets live blog that will be updated throughout the day. Park Street Nordicom A/S – Interim Financial report, 1st half of 2020 Copenhagen, 27 August 2020 In the first half of 2020 Park Street Nordicom…

Third Quarter 2020 Highlights(1) (compared to the same period in the prior year)

Adjusted EPS

Total revenue

Loans(2)

Branch-raised
deposits

Common share
dividend declared(3)

$0.74

$226.5 million

$29.7 billion

$16.0 billion

$0.29

Down 10%

Up 4%

Up 5% in total;
10% in Ontario

Up 22%

One cent increase from 
last year; consistent
with last quarter

(1)

Highlights include certain non-IFRS measures – refer to definitions provided on page 5 of this news release, with further detail provided on pages 5 and 6 of the 2020 Third Quarter Report to Shareholders.

(2)

Excludes the allowance for credit losses.

(3)

Declared by our Board of Directors on August 27, 2020.

This news release and accompanying financial highlights are supplementary to CWB’s 2020 Third Quarter Report to Shareholders and 2019 Annual Report and should be read in conjunction with those documents.

EDMONTON,  AB, Aug. 28, 2020 /CNW/ – CWB Financial Group (TSX: CWB) (CWB) today announced financial performance for the three and nine month periods ended July 31, 2020, with third quarter net income available to common shareholders of $62 million and adjusted earnings per common share of $0.74, up 21% and 23%, respectively, from the previous quarter.

CWB Financial Group (CNW Group/CWB Financial Group)

“We delivered solid results this quarter, as our teams continue to work diligently to support our clients and prudently manage through the impact of the COVID-19 pandemic on the Canadian economy and financial markets,” said Chris Fowler, President and CEO. “We are encouraged by our sequential financial performance, where net earnings increased strongly, primarily due to a lower estimated performing loan provision for credit losses and higher net interest income.”

“We are excited to continue to expand our presence in Ontario. We closed the acquisition of T.E. Wealth and Leon Frazer & Associates, which have a significant proportion of their client base in Toronto and Montreal and will support acceleration of full-service client growth. We also achieved further geographic diversification of our loan portfolio, with 10% annual loan growth in Ontario. I am also very pleased to announce that we have opened our first full-service branch in Ontario, with the Mississauga branch opening on August 4th.”

“We remain focused to provide proactive service and consistently improve our client experience. We hit a key milestone on our digital roadmap with the launch of a fully digitized onboarding process for Motive Financial. We also delivered 22% annual growth in branch-raised deposits, and carefully managed deposit pricing in this low interest rate environment to stabilize net interest margin.”

“We continued to provide a safe and healthy environment for our clients and our people as public health measures to contain the spread of COVID-19 began to relax. Our dedicated teams remain in frequent communication with our clients to support them through the re-opening of provincial economies, and we have seen significant reductions in deferral arrangements. At present, 10% of loan balances remain under some form of payment deferral, down from our peak of over 25%, with over half of those making interest only payments.”

“Our disciplined and secured lending model continues to support the resilience of our business, and our provision for credit losses on total loans as a percentage of average loans reflects our current expectation for a slightly longer economic recovery compared to the previous quarter. Our capital ratios are strong and well above regulatory requirements, and we hold ample liquidity to support our clients and continue to invest in our strategic priorities.”

“We are excited for the quarter ahead despite the volatile operating environment, thanks to the passion and dedication of our teams to support our clients and advance our strategic initiatives. We continue to expect approval to transition to the Advanced Internal Ratings Based (AIRB) approach for regulatory capital and risk management before this fiscal year end. Leveraging the AIRB approach is expected to result in improved capital ratios that better reflect the strength of our balance sheet. Transition to AIRB will also help level the competitive playing field to position us to deliver higher growth and profitability with an enhanced view of risk. Achievement of this next step will be a foundational capability for us and will enable us to realize our full potential across Canada.”

Financial Performance

On June 1, 2020, we acquired the businesses of T.E. Wealth and Leon Frazer & Associates (the wealth acquisition). The operations of the wealth acquisition, which are included in our third quarter financial results for two months, negatively affected common shareholders’ net income and operating leverage and had an insignificant impact on adjusted earnings per common share and adjusted return on equity. The wealth acquisition is expected to support adjusted earnings per common share modestly at first, with further accretion beginning in fiscal 2022.

Q3 2020,
compared to
Q3 2019(1)

Common shareholders’ net income of $62 million

Down 12%

Adjusted EPS of $0.74

Down 10%

Adjusted ROE of 9.4%

Down 200 bp(2)

Operating leverage of negative 1.3%
(positive 1.7% excluding the impact of the wealth acquisition)

Worsened 20 bp
(Improved 280 bp)

(1)

Includes certain non-IFRS measures – refer to definitions provided on page 5 of this news release, with further detail provided on pages 5 and 6 of the 2020 Third Quarter Report to Shareholders.

(2) 

bp – basis point

Compared to the prior year, common shareholders’ net income declined as 4% revenue growth was more than offset by an elevated estimated performing loan provision for credit losses and increased non-interest expenses, primarily related to the wealth acquisition. In line with our strategy, we delivered robust branch-raised deposit growth of 22%, which included a 34% increase in demand and notice deposits, contributing to a 14% reduction in higher cost broker deposits. Net interest income increased 1% as the benefit of 5% loan growth, including very strong growth in commercial loans, was largely offset by a 20 basis point decline in net interest margin in the current low interest rate environment. Non-interest income growth of 37% was primarily related to the wealth acquisition. Due to the impact of the COVID-19 pandemic, a more pessimistic outlook for the Canadian economy resulted in a performing loan provision for credit losses of 11 basis points, compared to a three basis point recovery in the prior year.

Q3 2020,
compared to
Q2 2020(1)

Common shareholders’ net income of $62 million

Up 21%

Adjusted EPS of $0.74

Up 23%

Adjusted ROE of 9.4%

Up 140 bp(2)

Operating leverage of negative 1.3%
(positive 1.7% excluding the impact of the wealth acquisition) 

Worsened 50 bp
(Improved 250 bp)

(1)

Includes certain non-IFRS measures – refer to definitions provided on page 5 of this news release, with further detail provided on pages 5 and 6 of the 2020 Third Quarter Report to Shareholders.

(2)

bp – basis point

Compared to the prior quarter, the increase in common shareholders’ net income was primarily driven by 6% revenue growth combined with a reduction in the estimated performing loan provision for credit losses, partially offset by higher non-interest expenses, entirely due to the wealth acquisition. Loan growth in the third quarter remained consistent with last quarter at 2%. Branch-raised deposit growth of 5% was driven by very strong 6% growth in demand and notice deposits. Net interest income increased by 5%, driven by the positive impacts of 2% loan growth, two additional interest-earning days and a stable net interest margin. Non-interest income increased 10% as the contribution of the wealth acquisition was partially offset by lower net gains on securities. Our estimated quarterly performing loan provision for credit losses represented 11 basis points as a percentage of average loans, compared to 27 basis points last quarter, which reflected continued evolution of economic forecasts related to the impact of the COVID-19 pandemic.

YTD 2020,
compared to
YTD 2019(1)

Common shareholders’ net income of $186 million

Down 7%

Adjusted EPS of $2.18

Down 8%

Adjusted ROE of 9.6%

Down 180 bp(2)

Operating leverage of negative 1.5%
(negative 0.5% excluding the impact of the wealth acquisition) 

Worsened 20 bp
(Improved 80 bp)

(1)

Includes certain non-IFRS measures – refer to definitions provided on page 5 of this news release, with further detail provided on pages 5 and 6 of the 2020 Third Quarter Report to Shareholders.

(2)

bp – basis point

Compared to the prior year, common shareholders’ net income declined as 3% revenue growth was more than offset by an increase in the estimated performing loan provision for credit losses, discussed above, and higher non-interest expenses. Net interest income increased 1%, driven by 5% loan growth partially offset by a 16 basis point decrease in net interest margin. Non-interest income growth of 20% benefited from net gains on securities and the contribution of the wealth acquisition. Non-interest expenses increased 5% from continued investment in our teams and technology to support overall business growth and the impact of the wealth acquisition, partially offset by reduced spending on certain expenses in the current operating environment.

Strategic Performance

The continued execution of our focused business transformation and investments in digital capabilities, supported by our talented teams, will enhance our differentiated full-service client experience and position us for accelerated growth as the economy stabilizes. This quarter, we:

  • continued to work through the AIRB approval process and remain on track for regulatory approval this fiscal year;
  • closed the acquisition and began integration of the businesses of T.E. Wealth and Leon Frazer & Associates, leading providers of financial planning and wealth management services across Canada, with an additional focus on serving Indigenous communities;
  • continued to advance our digital capabilities and remained committed to achievement of key milestones, launching digital onboarding for Motive Financial clients; and
  • opened our Mississauga full-service branch on August 4th, our first branch in Ontario.

About CWB Financial Group

CWB Financial Group (CWB) is a diversified financial services organization known for a highly proactive client experience serving businesses and individuals across Canada. Operating from headquarters in Edmonton, Alberta, CWB’s key business lines include full-service business and personal banking offered through branch locations of Canadian Western Bank and Internet banking services provided by Motive Financial. Highly responsive nation-wide specialized financing is delivered under the banners of CWB Optimum Mortgage, CWB Equipment Financing, CWB National Leasing, CWB Maxium Financial and CWB Franchise Finance. Trust services are offered through CWB Trust Services. Comprehensive wealth management services are provided through CWB Wealth Management and its affiliate brands, including T.E. Wealth, Leon Frazer & Associates, CWB McLean & Partners, and Canadian Western Financial. As a public company on the Toronto Stock Exchange (TSX), CWB trades under the symbols “CWB” (common shares), “CWB.PR.B” (Series 5 preferred shares), “CWB.PR.C” (Series 7 preferred shares) and “CWB.PR.D” (Series 9 preferred shares). Learn more at www.cwb.com.

Fiscal 2020 Third Quarter Results Conference Call

CWB’s third quarter results conference call is scheduled for Friday, August 28, 2020, at 10:00 a.m. ET (8:00 a.m. MT). CWB’s executives will comment on financial results and respond to questions from analysts.

The conference call may be accessed on a listen-only basis by dialing (416) 764-8688 (Toronto) or (888) 390-0546 (toll free) and entering passcode: 49186089. The call will also be webcast live on CWB’s website:
www.cwb.com/investor-relations/quarterly-reports.

A replay of the conference call will be available until September 4, 2020, by dialing (416) 764-8677 (Toronto) or (888) 390-0541 (toll-free) and entering passcode 186089#.

Forward-looking Statements

From time to time, we make written and verbal forward-looking statements. Statements of this type are included in our Annual Report and reports to shareholders and may be included in filings with Canadian securities regulators or in other communications such as press releases and corporate presentations. Forward-looking statements include, but are not limited to, statements about our objectives and strategies, targeted and expected financial results and the outlook for CWB’s businesses or for the Canadian economy. Forward-looking statements are typically identified by the words “believe”, “expect”, “anticipate”, “intend”, “estimate”, “may increase”, “may impact”, “goal”, “focus”, “potential”, “proposed” and other similar expressions, or future or conditional verbs such as “will”, “should”, “would” and “could”.

By their very nature, forward-looking statements involve numerous assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations and conclusions will not prove to be accurate, that our assumptions may not be correct and that our strategic goals will not be achieved.

A variety of factors, many of which are beyond our control, may cause actual results to differ materially from the expectations expressed in the forward-looking statements. These factors include, but are not limited to, general business and economic conditions in Canada, including housing market conditions, the volatility and level of liquidity in financial markets, fluctuations in interest rates and currency values, the volatility and level of various commodity prices, changes in monetary policy, changes in economic and political conditions, material changes to trade agreements, legislative and regulatory developments, legal developments, the level of competition, the occurrence of natural catastrophes, outbreaks of disease or illness that affect local, national or international economies, changes in accounting standards and policies, information technology and cyber risk, the accuracy and completeness of information we receive about customers and counterparties, the ability to attract and retain key personnel, the ability to complete and integrate acquisitions, reliance on third parties to provide components of business infrastructure, changes in tax laws, technological developments, unexpected changes in consumer spending and saving habits, timely development and introduction of new products, and our ability to anticipate and manage the risks associated with these factors. It is important to note that the preceding list is not exhaustive of possible factors.

Additional information about these factors can be found in the Risk Management section of our interim and/or annual Management’s Discussion and Analysis (MD&A). These and other factors should be considered carefully, and readers are cautioned not to place undue reliance on these forward-looking statements as a number of important factors could cause our actual results to differ materially from the expectations expressed in such forward-looking statements. Unless required by securities law, we do not undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time by us or on our behalf. The forward-looking statements contained in this document are presented for the purpose of assisting readers in understanding our financial position and results of operations as at and for the periods ended on the dates presented, as well as our strategic priorities and objectives, and may not be appropriate for other purposes.

Assumptions about the performance of the Canadian economy over the forecast horizon and how it will affect our businesses are material factors considered when setting organizational objectives and targets. In determining expectations for economic growth, we consider our own forecasts, economic data and forecasts provided by the Canadian government and its agencies, as well as certain private sector forecasts. These forecasts are subject to inherent risks and uncertainties that may be general or specific.

Where relevant, material economic assumptions underlying forward-looking statements are disclosed within the Outlook section of our annual MD&A. The emergence of COVID-19 has cast uncertainty on each of these assumptions and there can be no assurance that they continue to be valid. Given the rapid pace of change, it is premature to make further assumptions about these matters. The full extent of the impact that COVID-19, including government and/or regulatory responses to the outbreak, will have on the Canadian economy and our business is highly uncertain and difficult to predict at this time. See the Financial Results and Outlook and Risk Management sections of our interim MD&A for more information. 

Non-IFRS Measures

We use a number of financial measures to assess our performance against strategic initiatives and operational benchmarks.

Non-IFRS measures provide readers with an enhanced understanding of how we view our ongoing performance. These measures may also provide the ability to analyze trends related to profitability and the effectiveness of our operations and strategies, and determine compliance against regulatory standards. To arrive at certain non-IFRS measures, we make adjustments to the results prepared in accordance with IFRS. Adjustments relate to items which we believe are not indicative of underlying operating performance. Some of these financial measures do not have standardized meanings prescribed by IFRS, and therefore, may not be comparable to similar measures presented by other financial institutions. The non-IFRS measures used in this news release are calculated as follows:

  • Adjusted non-interest expenses – total non-interest expenses, excluding the pre-tax amortization of acquisition-related intangible assets, and acquisition and integration costs. Acquisition and integration costs include one-time direct and incremental costs incurred as part of the execution and ongoing integration of the acquisition of the businesses of T.E. Wealth and Leon Frazer & Associates (see calculation on page 6 of the 2020 Third Quarter Report to Shareholders).
  • Adjusted common shareholders’ net income – total common shareholders’ net income, excluding the amortization of acquisition-related intangible assets, acquisition-related fair value changes, and acquisition and integration costs, net of tax. Acquisition and integration costs include one-time direct and incremental costs incurred as part of the execution and ongoing integration of the acquisition of the businesses of T.E. Wealth and Leon Frazer & Associates (see calculation on page 6 of the 2020 Third Quarter Report to Shareholders).
  • Pre-tax, pre-provision income – total revenue less adjusted non-interest expenses (see calculation on page 6 of the 2020 Third Quarter Report to Shareholders).
  • Adjusted earnings per common share – diluted earnings per common share calculated with adjusted common shareholders’ net income. Prior to the third quarter of fiscal 2020, this metric was named ‘Adjusted cash earnings per common share’.
  • Return on common shareholders’ equity – annualized common shareholders’ net income divided by average common shareholders’ equity.
  • Adjusted return on common shareholders’ equity – annualized adjusted common shareholders’ net income divided by average common shareholders’ equity.
  • Return on assets – annualized common shareholders’ net income divided by average total assets.
  • Efficiency ratio – adjusted non-interest expenses divided by total revenue.
  • Net interest margin – annualized net interest income divided by average total assets.
  • Provision for credit losses on total loans as a percentage of average loans – annualized provision for credit losses on loans, committed but undrawn credit exposures and letters of credit divided by average total loans. Provisions for credit losses related to debt securities measured at fair value through other comprehensive income (FVOCI) and other financial assets are excluded.
  • Provision for credit losses on impaired loans as a percentage of average loans – annualized provision for credit losses on impaired loans divided by average total loans.
  • Provision for credit losses on performing loans as a percentage of average loans – annualized provision for credit losses on performing loans (Stage 1 and 2) divided by average total loans.
  • Operating leverage – growth rate of total revenue less growth rate of adjusted non-interest expenses.
  • Common share dividend payout ratio – common share dividends declared during the past twelve months divided by common shareholders’ net income earned over the same period.
  • Basel III common equity Tier 1, Tier 1, Total capital, and leverage ratios – calculated in accordance with guidelines issued by the Office of the Superintendent of Financial Institutions Canada (OSFI);
  • Risk-weighted assets – on and off-balance sheet assets assigned a risk weighting calculated in accordance with the Standardized approach guidelines issued by OSFI.
  • Average balances – average daily balances.

For the three months ended

Change from
July 31
2019

For the nine months ended

Change from
July 31
2019

(unaudited)

July 31
2020

April 30
2020

July 31
2019(2)

July 31
2020

July 31
2019(2)

(thousands, except per share amounts)

Results from Operations

Net interest income

$

200,773

$

190,988

$

199,746

1

%

$

592,771

$

584,145

1

%

Non-interest income

25,711

23,376

18,738

37

68,049

56,606

20

Total revenue

226,484

214,364

218,484

4

660,820

640,751

3

Pre-tax, pre-provision income

119,949

113,314

116,975

3

353,051

346,740

2

Common shareholders’ net income

62,252

51,381

70,964

(12)

185,576

199,428

(7)

Earnings per common share

Basic

0.71

0.59

0.81

(12)

2.13

2.28

(7)

Diluted

0.71

0.59

0.81

(12)

2.13

2.27

(6)

Adjusted

0.74

0.60

0.82

(10)

2.18

2.37

(8)

Return on common shareholders’ equity

9.1

%

7.9

%

11.3

%

(220)

bp(10)

9.4

%

11.0

%

(160)

bp(10)

Adjusted return on common shareholders’

equity

9.4

8.0

11.4

(200)

9.6

11.4

(180)

Return on assets

0.75

0.65

0.92

(17)

0.77

0.89

(12)

Efficiency ratio(3)

47.0

47.1

46.5

50

46.6

45.9

70

Net interest margin

2.40

2.40

2.60

(20)

2.45

2.61

(16)

Operating leverage(4)

(1.3)

(0.8)

(1.1)

(20)

(1.5)

(1.3)

(20)

Provision for credit losses on total loans as

a percentage of average loans(5)

0.33

0.49

0.19

14

0.34

0.22

12

Provision for credit losses on impaired

loans as a percentage of average loans(5)

0.22

0.22

0.22

0.20

0.22

(2)

Number of full-time equivalent staff(6)

2,502

2,325

2,288

9

%

2,502

2,288

9

%

Per Common Share

Cash dividends

$

0.29

$

0.29

$

0.27

7

%

$

0.86

$

0.80

7

%

Book value

31.50

31.24

28.82

9

31.50

28.82

9

Closing market value

22.80

22.03

30.83

(26)

22.80

30.83

(26)

Common shares outstanding (thousands)

87,100

87,100

87,201

87,100

87,201

Balance Sheet and Off-Balance Sheet
Summary

Assets

$

33,222,764

$

32,958,184

$

30,930,991

7

%

Loans(7)

29,689,751

29,197,575

28,240,686

5

Deposits

26,495,412

26,147,086

24,822,600

7

Debt

2,791,088

2,813,882

2,398,548

16

Shareholders’ equity

3,133,661

3,110,775

2,903,222

8

Assets under administration(8)

12,863,792

10,023,466

8,748,062

47

Assets under management(8)

6,215,083

1,981,062

2,084,757

198

Capital Adequacy(9)

Common equity Tier 1 ratio

8.8

%

9.1

%

9.0

%

(20)

bp(10)

Tier 1 ratio

10.2

10.5

10.6

(40)

Total ratio

12.0

11.9

12.8

(80)

(1)

Includes certain non-IFRS measures – refer to definitions provided on page 5 of this news release, with further detail provided on pages 5 and 6 of the 2020 Third Quarter Report to Shareholders.

(2)

Results for periods beginning on or after November 1, 2019 have been prepared in accordance with IFRS 16 Leases (IFRS 16) (refer to Note 2 of the interim consolidated financial statements). Prior year comparatives have been prepared in accordance with IAS 17 Leases (IAS 17) and have not been restated.

(3)

Excluding the impact of the wealth acquisition, our efficiency ratio would have been 45.7% for the third quarter of fiscal 2020.

(4)

Excluding the impact of the wealth acquisition, our operating leverage ratio would have been positive 1.7% for the third quarter of fiscal 2020.

(5)

Includes provisions for credit losses on loans, committed but undrawn credit exposures and letters of credit.

(6)

The third quarter of fiscal 2020 includes 124 additional staff as a result of the wealth acquisition.

(7)

Excludes the allowance for credit losses.

(8)

The wealth acquisition contributed $4.0 billion to assets under management and $1.8 billion to assets under administration at the acquisition date.

(9)

Capital ratios in the third quarter of fiscal 2020 reflect an approximate 30 basis point investment in the wealth acquisition.

(10)

bp – basis point

SOURCE CWB Financial Group

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Destination XL Group, Inc. Reports Second Quarter Financial Results

Destination XL Group, Inc. Reports Second Quarter Financial Results

CANTON, Mass., Aug. 27, 2020 (GLOBE NEWSWIRE) — Destination XL Group, Inc. (NASDAQ: DXLG), the largest omni-channel specialty retailer of big and tall men’s clothing, today reported operating results for the second quarter of fiscal 2020 and provided a business update with respect to the COVID-19 pandemic.

Management’s Response to COVID-19 

“Our second quarter performance was better than we anticipated, driven by our DXL.com website’s 69% growth and opening stores sooner than initially expected. Although this performance permits us to be cautiously optimistic, we remain exposed to the ongoing challenges brought on by the COVID-19 pandemic. Our stores began to reopen in late April and, by the end of June, all of our retail locations were open. As you will hear me say often, we are striving to maintain a balance between short-term performance and protecting the long-term viability of the Company. During the quarter, we saw gradual improvements in store sales despite curtailed store operating hours. The strong growth in our direct business is a direct outcome of the digital strategies we have implemented and consumers’ shift in shopping preferences further grow in response to COVID-19. Given this increased demand, we have been fortunate that our digital strategies were well-defined and the distribution center has been able to operate without any disruption. We also saw positive growth in our wholesale business during the second quarter, and were quick to mobilize the sourcing and manufacture of protective masks,” said Harvey Kanter, President and Chief Executive Officer.

Kanter continued, “We continued to be very proactive during the second quarter in managing our liquidity. We have worked very closely with our landlords, who have been great partners in helping us make short-term accommodations to manage our cash flow while our stores were closed. We also restructured our business to reduce operating costs, where possible, to adjust to the sales decline. The majority of our associates were on furlough through the end of the first quarter and we began to gradually bring them back this quarter as our stores reopened. We did our best to protect our associates during furlough, extending benefits as long as we could. However, there were approximately 430 associates who we were not able to bring back, mostly store personnel, in order to align our field organization with the reduced sales base.

At the end of the second quarter of fiscal 2020, we had a cash balance of $20.4 million, total debt of $81.4 million and remaining availability under our credit facility of $12.4 million. Our focus on cash has been relentless. Over the past two quarters, we have worked with our vendors on extended payment terms, including entering into short-term promissory terms with vendors, and rent concessions with the majority of our landlords. We have a cash management plan for the next 12 months and we believe that we have sufficient liquidity to navigate our working capital needs given no further significant shutdowns of the economy,” Mr. Kanter concluded.

Second Quarter Financial Highlights

  • Total sales for the second quarter were $76.4 million, down 38.0% from $123.2 million in the prior-year second quarter.
  • Cash Flow from operations of ($9.0) million as compared to the prior year of $0.9 million. Free Cash Flow was ($11.1) million as compared to ($6.7) million last year.
  • Net loss for the second quarter was $(10.7) million as compared to net income of $0.0 million in the prior year’s second quarter. 
  • Adjusted EBITDA for the second quarter was $(4.3) million compared to $7.1 million in the prior-year quarter.
  • At August 1, 2020, cash balance of $20.4 million, total debt of $81.4 million and remaining availability under our credit facility of $12.4 million.

Second Quarter Results

Sales

Total sales for the second quarter of fiscal 2020 decreased 38.0% to $76.4 million from $123.2 million in the second quarter of fiscal 2019. We were able to reopen our retail stores sooner than expected, and by the end of June, all locations had been reopened. Given the nature of the pandemic, we experienced headwinds due to the virus during the quarter in critically important states which produce higher than average sales. Because our stores were closed temporarily during much of the second quarter of fiscal 2020 and continue to operate with reduced hours, we do not believe a discussion of comparable sales is a meaningful metric at this time. We continued to see a material shift to online shopping during the second quarter and expect to see a similar trend through the remainder of fiscal 2020. Overall sales in the second quarter were driven by a 69% increase in our dxl.com business, which brought total direct sales penetration up to 46.1% of total retail sales. 

Our wholesale business contributed $5.0 million in sales during the second quarter, as compared to $2.7 million in the prior year, driven primarily by the sale of $4.1 million in protective masks. 

Gross Margin

For the second quarter of fiscal 2020, our gross margin rate, inclusive of occupancy costs, was 28.1% as compared to a gross margin rate of 44.3% for the second quarter of fiscal 2019. Our gross margin rate declined 5.1% from the deleveraging in occupancy costs and a decrease of 11.1% in merchandise margins. We remained highly promotional during the first half of the second quarter in order to reduce inventories and drive our on-line business, but began to scale back after Father’s Day. Our gross margin improved significantly post Father’s Day, where we saw a merchandise margin improvement of 1260 basis points for the month of July, as compared to May. Because of the growth in our direct channel and free shipping promotions, shipping costs for the second quarter increased over the prior year.

Selling, General & Administrative

As a percentage of sales, SG&A (selling, general and administrative) expenses for the second quarter of fiscal 2020 were 33.7% as compared to 38.5% for the second quarter of fiscal 2019. On a dollar basis, SG&A decreased by $21.7 million, or 45.7%, as compared to the second quarter of fiscal 2019. We took several steps to reduce our operating costs while our stores were closed, including the furlough of our store associates and certain corporate associates, reduced marketing costs, a temporary salary reduction of 10-20% for management, and the non-employee directors voluntarily suspended their compensation for the second quarter. As we reopened stores during the second quarter, our operating costs were realigned with the expected sales levels and associates were brought back on a staggered schedule. We continue to assess and rationalize our entire SG&A cost structure. Given the changes to our business as a result of this pandemic, we are restructuring various areas to ensure that we can operate most efficiently. This included the elimination of approximately 34 corporate positions in the first quarter of fiscal 2020 and an additional 430 store associates in the second quarter. With the reduced sales levels and store traffic, our stores are operating at minimal staffing levels and reduced operating hours. 

Management views SG&A expenses through two primary cost centers: Customer Facing Costs and Corporate Support Costs. Customer Facing Costs, which include store payroll, marketing and other store operating costs, represented 15.8% of sales in the second quarter of fiscal 2020 as compared to 23.9% of sales in the second quarter of last year. Corporate Support Costs, which include the distribution center and corporate overhead costs, represented 17.9% of sales in the second quarter of fiscal 2020 compared to 14.6% of sales in the second quarter of last year. 

Net Loss

For the second quarter of fiscal 2020, we had a net loss of $(10.7) million, or $(0.21) per diluted share, compared with a net income of $0.0 million, or $0.00 per diluted share, for the second quarter of fiscal 2019.

On a non-GAAP basis, adjusting for a normalized tax rate of 26% for both periods, the adjusted net loss for the second quarter of fiscal 2020 was ($0.15) per diluted share, as compared to an adjusted net income of $0.00 per diluted share for the second quarter of fiscal 2019. 

Adjusted EBITDA

Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), a non-GAAP measure, for the second quarter of fiscal 2020 were $(4.3) million, compared to $7.1 million for the second quarter of fiscal 2019.

Cash Flow

Cash flow from operations for the first six months of fiscal 2020 was $(9.0) million as compared to $0.9 million for the first six months of fiscal 2019 and free cash flow was $(11.1) million for the first six months of fiscal 2020 as compared to $(6.7) million for the first six months of fiscal 2019.

Preserving liquidity was our primary financial goal this quarter. We have eliminated costs where possible and have reduced the majority of our capital spending, unless such spending is necessary to our immediate business needs. Our capital expenditures for the first six months of fiscal 2020 were $2.1 million as compared to $7.6 million for the same period last year.

Non-GAAP Measures

Adjusted EBITDA, adjusted net income (loss), adjusted net (income) loss per diluted share and free cash flow are non-GAAP financial measures. Please see “Non-GAAP Measures” below and reconciliations of these non-GAAP measures to the comparable GAAP measures that follow in the tables below.

Balance Sheet & Liquidity

Managing our liquidity and financial flexibility continues to be our primary goal as we navigate through this pandemic. To this end, we have taken several actions since March, including but not limited to: (i) amending our credit facility to increase our borrowing base, (ii) decreasing our payroll and operating costs to align with the expected decrease in revenues, (iii) working with our landlords on short-term rent relief, (iv) cancellation of purchase orders, and (v) negotiating extended payment terms with our merchandise vendors.

At the end of the second quarter of fiscal 2020, we had a cash balance of $20.4 million, total debt (which consists of our revolving credit facility and long-term FILO loan) of $81.4 million and remaining availability under our credit facility of $12.4 million. Our availability under our credit facility is based on inventory levels, which are intentionally at lower levels given the current environment. Total debt less cash for the second quarter is $61.0 million compared to $58.7 million in the second quarter of fiscal 2019. At August 1, 2020, the accounts payable balance of $18.5 million included $2.0 million of promissory notes, payable through April 1, 2021. During the second quarter of fiscal 2020, the Company entered into rent concessions with the majority of its landlords, in the form of rent abatements and deferments. As a result of lease modifications, the Company has reduced rent payments by approximately $10.0 million for fiscal 2020.

As of August 1, 2020, our inventory decreased approximately $23.0 million to $87.4 million, as compared to $110.4 million at August 3, 2019. We cancelled approximately $148 million, at retail, of open orders leading into the second quarter. With respect to the remainder of fiscal 2020, we expect to be responsive to business changes, but expect that our fall inventory buys will be below fiscal 2019 levels. Our objective is to maintain a healthy inventory, which will include narrowing our assortment while also continuing to manage clearance levels. At August 1, 2020, our clearance inventory decreased by approximately $2.2 million, representing 11.3% of our total inventory, as compared to 10.9% at August 3, 2019.

Retail Store Information

Total retail square footage has remained relatively constant since the end of fiscal 2017:

E-Commerce Information

The Company distributes its licensed branded and private label products directly to consumers through its stores, website and third-party marketplaces. E-commerce sales, which we also refer to as direct sales, are defined as sales that originate online, whether through our website, at the store level or through a third-party marketplace. For the second quarter of fiscal 2020, our direct sales increased by $7.6 million to 46.1% of retail segment sales as compared to 21.1% for the second quarter of fiscal 2019. The increase in sales growth and penetration was driven by a 69% increase in sales on our own website at DXL.com. Even though all of our stores had reopened by the end of June 2020, store traffic has been slow to rebound and we continue to see our e-commerce business playing a vital role in enabling us to continue to engage with our customers. Our direct business will be a critical component of how we navigate through the remainder of fiscal 2020 and beyond.

Conference Call

The Company will hold a conference call to review its financial results today, August 27, 2020 at 9:00 a.m. ET. To listen to the live webcast, visit the “Investor Relations” section of the Company’s website. The live call also can be accessed by dialing: (866) 680-2311. Please reference conference ID: 8157438. An archived version of the webcast may be accessed by visiting the “Events” section of the Company’s website for up to one year.

During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends. The Company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.

Non-GAAP Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release contains non-GAAP financial measures, including adjusted EBITDA, adjusted net income (loss), adjusted net income (loss) per diluted share and free cash flow. The presentation of these non-GAAP measures is not in accordance with GAAP, and should not be considered superior to or as a substitute for net income (loss), net income (loss) per diluted share or cash flows from operating activities or any other measure of performance derived in accordance with GAAP. In addition, not all companies calculate non-GAAP financial measures in the same manner and, accordingly, the non-GAAP measures presented in this release may not be comparable to similar measures used by other companies. The Company believes the inclusion of these non-GAAP measures help investors gain a better understanding of the Company’s performance, especially when comparing such results to previous periods, and that they are useful as an additional means for investors to evaluate the Company’s operating results, when reviewed in conjunction with the Company’s GAAP financial statements. Reconciliations of these non-GAAP measures to their comparable GAAP measures are provided in the tables below. 

The Company believes that adjusted EBITDA (calculated as earnings before interest, taxes, depreciation and amortization and excluding CEO transition costs and asset impairment charges, if applicable) is useful to investors in evaluating its performance and is a key metric to measure profitability and economic productivity. 

The Company has fully reserved against its deferred tax assets and, therefore, its net income (loss) is not reflective of earnings assuming a “normal” tax position. In addition, we have added back charges for costs associated with the CEO transition and asset impairment charges, if applicable, because it provides comparability of results without these charges. Adjusted net income (loss) provides investors with a useful indication of the financial performance of the business, on a comparative basis, assuming a normalized effective tax rate of 26%.

Free cash flow is a metric that management uses to monitor liquidity. Management believes this metric is important to investors because it demonstrates the Company’s ability to strengthen liquidity while supporting its capital projects and new store growth. Free cash flow is calculated as cash flow from operating activities, less capital expenditures and excludes the mandatory and discretionary repayment of debt.

About Destination XL Group, Inc.

Destination XL Group, Inc. is the largest retailer of men’s clothing in sizes XL and up, with operations throughout the United States as well as in Toronto, Canada. In addition to DXL Big + Tall retail and outlet stores, subsidiaries of Destination XL Group, Inc. also operate Casual Male XL retail and outlet stores, and e-commerce sites, including DXL.com. DXL.com offers a multi-channel solution similar to the DXL store experience with the most extensive selection of online products available anywhere for Big + Tall men. The Company is headquartered in Canton, Massachusetts, and its common stock is listed on the NASDAQ Global Market under the symbol “DXLG.” For more information, please visit the Company’s investor relations website: https://investor.dxl.com.

Forward-Looking Statements

Certain statements and information contained in this press release constitute forward-looking statements under the federal securities laws, including statements regarding the Company’s expectations for performance in the second half of fiscal 2020, its ability to maintain sufficient liquidity to meet its working capital needs, expected inventory levels in the remainder of fiscal 2020 and the impact of its direct business on results in the remainder of fiscal 2020. The discussion of forward-looking information requires management of the Company to make certain estimates and assumptions regarding the Company’s strategic direction and the effect of such plans on the Company’s financial results. The Company’s actual results and the implementation of its plans and operations may differ materially from forward-looking statements made by the Company. The Company encourages readers of forward-looking information concerning the Company to refer to its filings with the Securities and Exchange Commission, including without limitation, its Annual Report on Form 10-K filed on March 19, 2020, its Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission that set forth certain risks and uncertainties that may have an impact on future results and direction of the Company, including risks relating to the COVID-19 pandemic and its impact on the Company’s results of operations, the Company’s execution of its DXL strategy and ability to grow its market share, predict customer tastes and fashion trends, forecast sales growth trends and compete successfully in the United States men’s big and tall apparel market.

Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The Company undertakes no obligation and expressly disclaims any duty to update such statements.


Destination XL Group, Inc.

Canton, Massachusetts, UNITED STATES

Source: www.globenewswire.com

Author: Destination XL Group, Inc.


Stock market live updates: Dow gains more than 100, new S&P record, VIX jumps to 6-week high

Stock market live updates: Dow gains more than 100, new S&P record, VIX jumps to 6-week high

  • The Dow rose 160.35 points, or 0.57%, its fifth positive day in six
  • S&P 500 closed up 0.17% for its sixth  straight positive day. The index finished at a new record close, its 19th of the year
  • For the week, the S&P 500 is up 2.57% for its best week since July 2 when the index gained 4.02% and its fifth straight week of gains for the first time this year
  • Eight out of 11 sectors were positive Thursday led by financials up 1.74%
  • Nasdaq Composite closed down 0.34% for its first negative day in six
  • For the week, the Nasdaq is up 2.77%, on pace for its fifth straight positive week for the first time since Jan. 17. — Gina Francolla, Jesse Pound

The market lost a little steam in the final hour of trading, but the Dow and S&P 500 still closed in positive territory for the day, gaining 0.6% and 0.2%, respectively. The Nasdaq Composite sank 0.3% as several major tech stocks struggled. — Jesse Pound

The Dow traded more than 200 points higher, or nearly 1%, with less than one hour left in the session as bank stocks and Microsoft shares led the gains for the 30-stock average. The S&P 500 climbed 0.5% and the Nasdaq struggled to find its footing. —Fred Imbert

After briefly falling into negative territory around 1 p.m. ET, the S&P 500 has climbed once again and last traded up 0.4% for the day. The Dow was the leader for the day, rising 0.9%, or 250 points, while the Nasdaq Composite hovered just below the flat line. — Jesse Pound

Here are a few of the stocks with notable moves so far on Thursday.

Walmart, Microsoft – Shares of Walmart jumped to its session high after the supermarket chain confirmed it’s teaming up with Microsoft in a bid for popular Chinese social media app TikTok. TikTok is nearing an agreement to sell its U.S., Canadian, Australian and New Zealand operations in a deal likely in the $20 billion to $30 billion range and it could announce a deal in the coming days, sources say.

Abbott Laboratories — Shares of Abbott Laboratories rose after the company received U.S. marketing authorization for a Covid-19 antigen test that can deliver results within 15 minutes. The company said it expects to ship tens of millions of tests next month.

Peloton — Shares of the stationary bike company popped after Goldman Sachs — which has a buy rating on the stock — hiked its 12-month price target to $96 from $84 per share. The Wall Street firm said expectations from the stay-at-home stock’s growth and profitability are “far too low,” even after the stock has rallied more than 140% this year.

The Cboe Volatility Index, or the VIX, continued its rise in afternoon trading, climbing 3.82 points to a high of 27.09. The gauge is now on pace to close at its highest level since July 16.— Yun Li

The Cboe Volatility Index, also known as the VIX or “fear gauge,” popped 1.70 points to hit a session high of 24.97 on Thursday, its highest level since Aug. 3. The VIX tracks the 30-day implied volatility of the S&P 500 futures via options prices. The spike in volatility came as investors digested the Federal Reserve’s latest policy adjustments. The gauge has been hovering below 24 most of August. — Yun Li

Shares of DraftKings popped 3% to its session high on Thursday after ESPN reported NBA players have decided to resume the playoff games this weekend. NBA’s Milwaukee Bucks and Orlando Magic canceled their game Wednesday in the wake of Jacob Blake’s shooting. — Yun Li

At midday, the Dow traded nearly 1% higher and erased its year-to-date losses on the back of an inflation policy announcement from the Federal Reserve. The S&P 500 and Nasdaq were also higher by 0.6% and 0.5%, respectively. —Fred Imbert

Travel stocks surged on Thursday morning after Abbott Laboratories announced that a 15-minute coronavirus test had been granted emergency use authorization by the Food and Drug Administration. CNBC’s Jim Cramer said on “Squawk on the Street” that he would “buy any airline stock” after seeing the news. Airlines and cruise stocks jumped in early trading, with United Airlines and Norwegian Cruise Line Holdings both gaining more than 6%. — Jesse Pound 

Hurricane Laura has made landfall as a category four hurricane, jeopardizing the nation’s largest refining facilities and shutting down more than 80% of offshore production in the Gulf of Mexico. But oil prices were little changed on Thursday as the demand drop-off from Covid-19 continues to be the primary driver of price swings.

“The impact on the price of oil has been relatively modest at this point because the demand is really not back yet from the virus,” Canary Oil CEO Dan Eberhart told CNBC’s “Squawk On The Street.” “We’re really looking at a big yawn in the market so far even though this could potentially cause quite severe damage to the oil capacity for the nation.”

West Texas Intermediate crude, the U.S. oil benchmark, slid 93 cents, or 2.14%, to $42.47 per barrel. International benchmark Brent crude traded 96 cents lower at $44.68 per barrel. 

“As consumers we are not going to feel this at the pump quite as severely,” Eberhart added. – Pippa Stevens 

A deal for Microsoft to buy TikTok could come within the next 48 hours, sources told CNBC’s Julia Boorstin. Shares of the tech giant rose more than 3% following the report and helped the Nasdaq Composite trim its earlier losses. — Jesse Pound 

Americans are continuing to buy homes during the coronavirus pandemic. Pending home sales, which measure signed contracts to purchase existing homes, increased 5.9% in July compared with June, according to the National Association of Realtors. Sales were 15.5% higher annually. “We are witnessing a true V-shaped sales recovery as homebuyers continue their strong return to the housing market,” said Lawrence Yun, NAR’s chief economist. “Home sellers are seeing their homes go under contract in record time, with nine new contracts for every 10 new listings.” Mortgage rates marked new record lows in July, giving buyers additional purchasing power. — Diana Olick, Maggie Fitzgerald 

The Dow Jones Industrial Average is officially in the green for 2020, making back all of the 30-stock average’s coronavirus related losses. The Dow has climbed nearly 57% from its low in March. The average is still more than 3% from its 52-week high. The Dow jumped nearly 250 points in early trading on Thursday, boosted by Powell’s speech on inflation. — Maggie Fitzgerald 

As investors digested Chair Powell’s comments, some of the early moves reversed course. Several major tech stocks fell, dragging the Nasdaq Composite into negative territory. Amazon and Alphabet fell slightly, while Netflix and Facebook both dropped more than 1%.

Bond yields also moved higher after falling earlier in the morning. Bank stocks followed the yields, with Citigroup gaining 1.8% and JPMorgan climbing 2.2%. — Jesse Pound 

The major U.S. indexes climbed after the opening bell after Fed Chair Jerome Powell detailed the central bank’s new inflation targeting strategy. The Dow rose 100 points, or 0.4%, while the Nasdaq Composite and S&P 500 each rose 0.2%. — Jesse Pound

Shares of major technology companies jumped in premarket trading on Thursday when Federal Reserve chair Jerome Powell announced the central bank’s new approach to inflation, which will likely keep interest rates low. Tech shares have soared in the current environment as lower rates fuel their expansion and make their high future earnings growth look that much more attractive. Shares of Microsoft, Amazon and Apple all jumped before the bell.  — Maggie Fitzgerald 

Federal Reserve chair Jerome Powell said Thursday that the central bank will let inflation rise higher than normal in a way to combat the ailing labor market and support the broader economy. A major policy shift for the Fed, the body formally agreed to a policy of “average inflation targeting.” That means it will allow inflation to run “moderately” above the Fed’s 2% goal “for some time” following periods when it has run below that objective. The inflation change means the Fed will be less inclined to hike interest rates when the unemployment rate falls. Futures jumped during Powell’s speech. — Jeff Cox, Maggie Fitzgerald 

Federal Reserve chair Jerome Powell just started speaking at in the annual Jackson Hole symposium. The central bank is expected to change the way it addresses inflation, after it has taken numerous extraordinary measures to fight the impact of the coronavirus on the economy.

Watch Powell’s speech here and read live blog updates here. — Maggie Fitzgerald 

  • Stephens named Darden a best idea.
  • Oppenheimer downgraded Dick’s to perform from outperform.
  • Goldman Sachs raised its price target on Peloton to $96 from $84.
  • Mizuho initiated Visa, Mastercard, PayPal, and Square as buy.
  • Morgan Stanley upgraded Dick’s to overweight from equal weight.
  • Credit Suisse reinstated Marvell as outperform.

U.S. Q2 GDP has been revised to show a slightly lower decline than first expected. The second reading for the quarterly figure shows a decline of 31.7%, compared with estimates of 32.5%. The initial reading on July 30 showed a 32.9% drop in economic activity. While the latest reading is slightly more optimistic, it still marks the largest quarterly plunge on record. – Pippa Stevens 

Jobless claims came in at 1.01 million for the week ending Aug. 22, in line with estimates from Dow Jones. This was a decline from the previous week’s 1.104 million initial jobless claims. Continuing claims — which account for those receiving unemployment benefits for at least two straight weeks — fell by 223,000 to 14.535 million for the week ending Aug. 15. — Maggie Fitzgerald 

Shares of Abbott Laboratories jumped nearly 10% in the premarket after the company received U.S. marketing authorization for a Covid-19 antigen test that can deliver results within 15 minutes. The test will sell for $5. Abbott said it expects to ship tens of millions of tests next month and to ramp up shipping to 50 million per month in October. —Fred Imbert

At 8:30 a.m. E.T. the Labor Department will release the latest unemployment numbers, giving investors a read on the ongoing economic recovery from Covid-19. Economists are looking for 1 million new claims for the week ending August 22, according to Dow Jones. While a decrease from last week’s reading of 1.106 million, it’s still very high by historical standards. – Pippa Stevens 

The Street is divided when it comes to Dick’s Sporting Goods. Morgan Stanley upgraded the stock to an overweight rating on Thursday, while Oppenheimer cut the stock to perform. 

Morgan Stanley’s bullish stance rests on what the firm believes will be a “2nd half comeback,” based on earnings upside, gross margin expansion and improving e-commerce profitability. The firm’s $65 target implies a 20% rally ahead.

Oppenheimer’s downgrade is a valuation call based on the stock’s 48% jump over the last three months. “While we admire the efforts of management to thrive amid consumer sector upheaval, we look upon stronger sales and earnings lately as largely shorter-term in nature and are hard-pressed to envision the market awarding shares a meaningfully higher multiple,” the firm said.

The retailer reported second quarter earnings on Wednesday that beat top and bottom line estimates. Comparable store sales rose 20.7% compared with an expected 9.9% jump according to estimates from FactSet, while e-commerce sales nearly tripled. 

Shares were about 1% lower during premarket trading on Thursday. – Pippa Stevens 

Senate Republicans are preparing a Covid-19 relief package worth roughly $500 billion, CNBC’s Kayla Tausche reported. The bill would include enhanced unemployment benefits and help to small businesses, but not the $1,200 direct payments to Americans that were included in the first bill at the beginning of the pandemic. The bill is unlikely to find sufficient support in the House of Representatives, where Speaker Nancy Pelosi has pushed for at least $2 trillion in the next aid package. — Jesse Pound 

Source: www.cnbc.com

Author: CNBC.com staff


Park Street Nordicom A/S – Interim Financial Report, 1st half of 2020

Park Street Nordicom A/S – Interim Financial Report, 1st half of 2020

Park Street Nordicom A/S – Interim Financial report, 1st half of 2020

Copenhagen, 27 August 2020

In the first half of 2020 Park Street Nordicom achieved EBVAT (Earnings before value adjustments and tax) of DKK 36.2 million (2019: DKK 40.4 million). Profit for the period after tax is DKK 63.3 million against DKK 36.5 million in 2019. The increase compared to previous year is due to the profit generated in the sale of two properties (DKK 38.3 million).
The Group Equity at 30 of June 2020 is DKK 994.5 million compared to DKK 931.1 million at 31 December 2019; with the increase attributed to the profit of the period. The Group has also repaid a loan facility existing at 31 December 2019 with a total value of DKK 105.1 million.

The Board of Directors of Park Street Nordicom A/S today discussed and approved the company’s Interim report 2020, which contained the following:

The period in outline

  • The period generated a profit of DKK 63.3 million (1st half of 2019: DKK 36.5 million).
  • During the period, Park Street Nordicom achieved EBVAT (earnings before value adjustments and tax) of DKK 36.2 million (1st half of 2019: DKK 40.4 million). The reduction of gross profit (DKK -10.7 million compared to previous year) is due to a lower revenue on a hotel operated by the Group and slight increase in vacancies. This reduction in profit has been partially compensated by a reduction of overhead costs (DKK 6.0 million) and financial expenses (DKK -0.3 million). The reduction in overhead costs is caused by lower employee expenses (DKK 1.9 million) and a reduction of other external costs (DKK -3.9 million) caused by a change on accounting principles applied from July 1st, 2019 and a decrease in external advisors expenses.
  • During the period, Park Street Nordicom acquired the following assets:
    • Residential unit in Copenhagen
  • During the period, Park Street Nordicom sold:
    • Office building in Copenhagen
    • Residential unit in Ballerup
    • The Group’s equity was positive at DKK 994.5 million at 30 June 2020 (31 December 2019: DKK 931.1 million).
    • Park Street Nordicom’s net cash flow in the 1st half of 2020 was negative by DKK 24.8 million (1st half of 2019: DKK 11.1 million). Cash flow from operating activities was DKK 28.0 million (1st half of 2019: DKK 48.1 million), while the cash flow from investing activities was DKK 148.9 million (1st half of 2019: DKK -105.0 million) mainly due to the disposal of assets. The cash flow from financing activities is negative by DKK 201.7 million (1st half of 2019: DKK 68.0 million) impacted mainly by repayment to short term debt and repayment of debt from disposed assets.
    • Expectations for 2020

      Park Street Nordicom did not publish expectations for EBVAT (earnings before value adjustments and tax) for 2020 in the Annual Report 2019 approved on the 23rd of April, 2020 due to the uncertainties and potential disruptions generated by Covid-19 related Global Economic Disruption.

      Since the publication of the Annual Report 2019 Park Street Nordicom has been able to better assess the implications of Covid-19 on the Company’s operations and has, as a result, decided to publish its EBVAT expectations for the period 2020.

      Park Street Nordicom expectations for EBVAT at year end 2020 are in the range of DKK 70-75 million which is lower than DKK 83 million obtained by year end 2019. The reduction of the expectations is a direct consequence of the disruptions generated by Covid-19 due to reduction of the profit generated on the hotel business and delay on filling existing vacant units in the portfolio.

      Subsequent events after June 30, 2020

      As part of the strategy of disposal of non core assets Park Street Nordicom has completed on July 1st, 2020 the sale of a gas station in the Greater Copenhagen area for a price slightly above the book value. An additional residential unit in an existing property of the group has been acquired in August 2020 in Copenhagen, Østerbro.  

      Management comments on the Interim report

      In connection with the interim report for Q2 2020, CEO Pradeep Pattem states the following:

      ”I am quite proud of the team at Park Street Nordicom for having made significant adjustments to cope with the changed way of working, taking on additional uncertainties from the ongoing Covid-19 related disruption stoically. We have redoubled our efforts to systematise the operations, and optimise our portfolio of assets to be able to sustain any potential further challenges in the market. We have also taken significant positive steps on various projects including our assets in Taastrup, Copenhagen and Odense. While the year 2020 seems to be one where we need to be very diligent with our operations, risk management, it also has presented us the opportunity to improve our operations leveraging technology and to re-gear the team to identify future opportunities.”

      Attached files

      Interim report 2020 is attached to this announcement. 
      Copenhagen,

      Andrew La Trobe                           Pradeep Pattem
      Chairman                                        CEO

      Further information 

      For further information please contact Pradeep Pattem, CEO at nordicom@nordicom.dk
      Company Website: www.psnas.com
      Telephone number: +45 33 33 93 03

      This company announcement contains some forward-looking statements, including statements about Park Street Nordicom’s activities. Such forward-looking statements are based on information, assumptions and assessments that Park Street Nordicom finds reasonable. These forward-looking statements cover known and unknown risks, uncertainties and other material factors that may cause Park Street Nordicom’s actual profits, growth or performance to differ considerably from the future profits, growth and performance expressed or implied in connection with these forward-looking statements. If one or more of these risk factors or elements of uncertainty is triggered or if an underlying assumption turns out to be incorrect, Park Street Nordicom’s actual financial position or operating profits may differ considerably from that which is described as assumed, assessed, estimated or expected.

      København K, DENMARK

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      Source: www.globenewswire.com

      Author: Park Street Nordicom A/S


      Reuters - Wikipedia

      Reuters – Wikipedia

      This article is about the Reuters news agency. For the current parent company, see Thomson Reuters. For the former parent company prior to its 2008 acquisition by The Thomson Corporation, see Reuters Group.

      Reuters Building, Canary Wharf, London

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      Roderick Jones, general
      manager 1915–1941

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    • Read, Donald (1992). The Power of News: The History of Reuters 1849–1989. Oxford, Oxford University Press. ISBN 0-19-821776-5.
    • Mooney, Brian; Simspon, Barry (2003). Breaking News: How the Wheels Came off at Reuters. Capstone. ISBN 1-84112-545-8.
    • Fenby, Jonathan (12 February 1986). The International News Services. Schocken Books. p. 275. ISBN 0-8052-3995-2.
    • Schwarzlose, Richard (1 January 1989). Nation’s Newsbrokers Volume 1: The Formative Years: From Pretelegraph to 1865. Northwestern University Press. p. 370. ISBN 0-8101-0818-6.
    • Schwarzlose, Richard (1 February 1990). Nation’s Newsbrokers Volume 2: The Rush to Institution: From 1865 to 1920. Northwestern University Press. p. 366. ISBN 0-8101-0819-4.
    • Schwarzlose, Richard (June 1979). The American Wire Services. Ayer Co Pub. p. 453. ISBN 0-405-11774-4.
    • Silberstein-Loeb, Jonathan (2014). The International Distribution of News: The Associated Press, Press Association, and Reuters, 1848–1947.
    • Reuters Interactive launches on BTX Enterprise as Reuters Interactive community site
    • Editorials on Reuters’ use of ‘terrorist’: The Wall Street Journal’s James Taranto, Norman Solomon, Institute for Public Accuracy/U.S. columnist
    • Criticism of references to the Holocaust from OpinionJournal.com, 9 December 2005
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    • Interfax (Moscow)
    • Inter Press Service (Rome)
    • Islamic Republic News Agency (Tehran)
    • Jewish Telegraphic Agency (New York)
    • MTI (Budapest)
    • News Agency of Nigeria (Abuja)
    • Pakistan Television (Islamabad)
    • Philippine News Agency (Quezon City)
    • PAP (Warsaw)
    • Lusa (Lisbon)
    • Maghreb Arabe Press (Rabat)
    • MENA (Cairo)
    • PanaPress (Dakar)
    • PA Media (London)
    • Prensa Latina (Havana)
    • Press Trust of India (Delhi)
    • RIA Novosti (Moscow)
    • Swiss Telegraphic Agency (Bern)
    • TASR (Bratislava)
    • TASS (Moscow)
    • Tanjug (Belgrade)
    • Télam (Buenos Aires)
    • Tunis Afrique Presse (Tunis)
    • TDH (Turkmenistan)
    • Ukrinform (Kiev)
    • United Press International (Boca Raton, FL)
    • United News of India (New Delhi)
    • Vietnam News Agency (Hanoi)
    • Xinhua (Beijing)
    • Yonhap (Seoul)
    • Zenit (Rome)
    • European Alliance of News Agencies

      • v
      • t
      • e

      Reuters Group plc

      • v
      • t
      • e

      Thomson Reuters

    • Carswell
    • FindLaw (Writ)
    • La Ley
    • Pangea3
    • Practical Law Company
    • Sweet & Maxwell (IDS)
    • West
    • Westlaw
      • Refinitiv (45%)
      • Breakingviews
    • ITN (20%)
      • World-Check
    • Reuters Group
    • The Thomson Corporation
    • International Thomson Organization
    • 3 Times Square
    • Tom Glocer
    • David Thomson
    • The Woodbridge Company
      • v
      • t
      • e

      Current White House James S. Brady Press Briefing Room seating chart

      White House Correspondents’ Association

      • v
      • t
      • e

      Media in the United Kingdom

      UK national newspapers, magazines, and other periodicals

    • Financial Times
    • The Daily Telegraph
    • The Sunday Telegraph
    • The Sunday Times
    • i
    • The Times
    • The Guardian
    • The Observer
    • Daily Express
    • Daily Mail
    • The Mail on Sunday
    • Daily Mirror
    • Sunday Mirror
    • Morning Star
    • The Sunday People
    • Daily Star
    • Daily Star Sunday
    • The Sun
    • Sunday Sport
      • List of magazines by circulation

      Radio in the UK

    • List of BBC Local Radio stations
    • List of BBC Regional Radio stations
    • List of community radio stations
    • List of local commercial radio stations
    • List of semi-national / regional analogue and digital radio stations
    • List of hospital radio stations
    • Pirate radio
      • List of RSL stations
    • List of satellite radio stations
    • List of student and schools radio
    • Broadcasting House
    • FM broadcasting
    • The Studios, MediaCityUK
      • Radio Academy Awards
    • Radio Independents Group
    • RAJAR
    • Most listened to programmes
    • Television in the UK

      • Film4oD
      • analogue terrestrial (defunct)
      • BBC Three
    • BBC Store
    • TalkTalk TV Store
    • BT TV
    • cable
    • digital terrestrial
    • List of channels
      • Freesat+
    • Freeview
      • List of channels
      • ITV Hub, STV Player
    • local television
    • My5
    • Now TV
    • Real Digital
    • Restricted Service Licence
      • List of channels
    • Freesat from Sky
    • On Demand
    • Sky+
    • Sky+ HD
    • TalkTalk TV
    • Top Up TV
    • TVPlayer
    • FilmFlex
    • TiVo
    • V+
    • YouView
    • Zattoo
    • 3 Mills Studios
    • BBC Elstree Centre
    • BBC Pacific Quay
    • The Bottle Yard Studios
    • Broadcasting House
    • Broadcasting House, Belfast
    • Broadcasting House, Bristol
    • Broadcasting House, Cardiff
    • dock10
    • Elstree Studios (Shenley Road)
    • Gas Street Studios
    • The Hospital Club
    • The Leeds Studios
    • The Maidstone Studios
    • Mailbox Birmingham
    • MediaCityUK
    • Riverside Studios
    • Roath Lock
    • The Sharp Project
    • Sky Campus
    • Space Studios Manchester
    • Television Centre, London
    • British and Dominions Imperial Studios
    • Fountain Studios
    • Gate Studios
    • Granada Studios
    • Lime Grove Studios
    • Limehouse Studios
    • The London Studios
    • MGM-British Studios
    • Pebble Mill Studios
    • Teddington Studios
    • Television Centre, Newcastle upon Tyne
    • Television Centre, Southampton
    • Upper Boat Studios
    • Defunct channels
    • Edinburgh International Television Festival
      • List of years
    • List of channels
    • Student television
      • Most-watched broadcasts

      Companies and organisations

    • Archant
    • Ascential
    • Bauer Radio
    • BBC
    • Bloomsbury Publishing
    • BT Group
    • Channel Four Television Corporation
    • Daily Mail and General Trust
    • Dentsu Aegis Network
    • Economist Group
    • EMI Music Publishing
    • Endemol Shine UK
    • Global
    • Guardian Media Group
    • Haymarket Media Group
    • Informa
    • ITN
    • ITV plc
    • Johnston Press
    • Mecom Group
    • News UK
    • Newsquest
    • Northern & Shell
    • Pearson plc
    • Press Holdings
    • Reach plc
    • RELX
    • Reuters
    • Sky
    • STV Group
    • Syco
    • Sony Pictures Television Networks
    • TalkTalk Group
    • TI Media
    • UBM plc
    • ViacomCBS Networks UK & Australia
    • Virgin Media
    • Wireless Group
    • Arqiva
    • List of largest UK book publishers
    • Advertising Standards Authority
    • BBC Trust
    • British Board of Film Classification
    • British Film Institute
    • Culture, Media, and Sport Select Committee
    • Department for Digital, Culture, Media and Sport
    • Independent Press Standards Organisation
    • Ofcom
    • Press Recognition Panel
    • S4C Authority
    • British Academy of Film and Television Arts
    • British Phonographic Industry
    • Broadcasting, Entertainment, Cinematograph and Theatre Union
    • Clearcast
    • Digital TV Group
    • Digital UK
    • Equity
    • Federation Against Copyright Theft
    • National Union of Journalists
    • The Publishers Association
    • Royal Television Society
    • United Kingdom Independent Broadcasting
    • BBC Academy
    • National Film and Television School
    • National Science and Media Museum
    • Regional and student media

    • Birmingham
    • London
    • Manchester
    • Aberdeen
    • Dundee
    • Glasgow
      • Cardiff
    • Student television
    • Student press
      • v
      • t
      • e

      Gerald Loeb Award winners for Images, Graphics, Interactives, and Visuals

      Gerald Loeb Award for Images/Visuals (2013–2015)

    • Tom Giratikanon (2013 shared)
    • Amanda Cox (2013 shared)
    • Sergio Pecanha (2013 shared)
    • Alicia Parlapiano (2013 shared)
    • Jeremy White (2013 shared)
    • Robert Gebeloff (2013 shared)
    • Ford Fessenden (2013 shared)
    • Archie Tse (2013 shared)
    • Alan McLean (2013 shared)
    • Shan Carter (2013 shared)
    • Mike Bostock (2013 shared)
    • Matthew Ericson (2013 shared)
    • Ford Fessenden (2014 shared)
    • Tom Giratikanon (2014 shared)
    • Josh Keller (2014 shared)
    • Archie Tse (2014 shared)
    • Tim Wallace (2014 shared)
    • Derek Watkins (2014 shared)
    • Jeremy White (2014 shared)
    • Karen Yourish (2014 shared)
    • Shan Carter (2014 shared)
    • Hannah Fairfield (2014 shared)
    • Alicia Parlapiano (2014 shared)
    • Mike Bostock (2014 shared)
    • Amanda Cox (2014 shared)
    • Matthew Ericson (2014 shared)
    • Kevin Quealy (2014 shared)
    • Josh Williams (2014 shared)
    • Gregor Aisch (2015 shared)
    • Wilson Andrews (2015 shared)
    • Jeremy Ashkenas (2015 shared)
    • Matthew Bloch (2015 shared)
    • Mike Bostock (2015 shared)
    • Shan Carter (2015 shared)
    • Haeyoun Park (2015 shared)
    • Alicia Parlapiano (2015 shared)
    • Archie Tse (2015 shared)
    • Gerald Loeb Award for Images/Graphics/Interactives (2016–2018)

    • Amanda Cox (2016 shared)
    • Gregor Aisch (2016 shared)
    • Kevin Quealy (2016 shared)
    • Matthew Bloch (2016 shared)
    • Wilson Andrews (2016 shared)
    • Josh Keller (2016 shared)
    • Karen Yourish (2016 shared)
    • Eric Buth (2016 shared)
    • Nicholas Confessore (2016 shared)
    • Sarah Cohen (2016 shared)
    • Larry Buchanan (2017 shared)
    • Karen Yourish (2017 shared)
    • Walt Bogdanich (2017 shared)
    • Jacqueline Williams (2017 shared)
    • Ana Graciela Mendez (2017 shared)
    • Motoko Rich (2017 shared)
    • Amanda Cox (2017 shared)
    • Matthew Bloch (2017 shared)
    • Christine Chan (2018 shared)
    • Matthew Weber (2018 shared)
    • Reuters team (2018 shared)
    • Gerald Loeb Award for Visual Storytelling (2016–2018)

    • Tom Randall (2019 shared)
    • Dean Halford (2019 shared)
    • Source: en.wikipedia.org

      Author: Authority control


      CWB reports third quarter 2020 financial and strategic performance


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