Link AKC Partners With Kate Upton To Help Dog Owners ‘Speak Dog’

Six-Part Video Series Features the Adventures of 'Dog Mom' Kate and Her Boxer, Harley

STAMFORD, Conn., May 10, 2017 /PRNewswire/ -- Do you "speak dog"? If not, Link AKC, Kate Upton and her dog Harley can help! Link AKC, creators of the Link AKC smart collar for dogs, is launching a content series starring supermodel, actress and dog lover Kate Upton and her Boxer, Harley. The entertaining and informative six-part video series is part of a brand partnership between Link AKC and Kate Upton to support the national launch of the smart collar and educate consumers how this product can strengthen the bond between owner and dog. Fans will get an up close look at the special bond between Harley and "his human" and how the cutting-edge technology in the smart collar helps Kate play a more active role in managing Harley's health and happiness. The first two videos are available to view starting today on www.linkakc.com/kateupton

A self-described "dog mom," Kate Upton is one of 60 million U.S. households that consider their dog a member of the family and are looking for ways to better understand their best friend. The Link AKC smart collar and app incorporates sophisticated smart home, wearable and mobile technologies in an easy-to-use product that provides valuable insights for dog owners to give them peace of mind that they are doing what is best for their dog.  

"The team of passionate tech experts, designers and dog lovers at Link AKC designed the smart collar for the lifestyle and needs of today's dog owner and dog," said Herbie Calves, CMO & SVP of Marketing. "Kate and Harley are the perfect ambassadors to showcase the functionality, fashion, engagement and fun of the smart collar that makes it a leader in the pet tech/wearables industry."   

"Everyone knows I am obsessed with Harley. And I'm pretty sure he feels the same about me! When we're together, the LINK AKC smart collar allows me to record and share our hikes and other adventures," said Kate Upton. "When Harley can't be by my side, I can still feel connected to him through his smart collar, which tells me his location, environment and activity levels from anywhere, right on my phone."

The Link AKC smart collar launched in September 2016 and began shipping to consumers in February 2017. CES recognized the smart collar as a 2017 "Best of Innovation" winner. With a range of valuable features and great user experience, the Link AKC smart collar is poised to lead a new category of luxury technology for a large and growing consumer demographic. The pet wearables market, alone, is expected to reach $2.4 billion by 2022.  

The Link AKC smart collar is made of high quality, durable leather that is both fashionable and functional and is the only curved smart device designed to comfortably fit the natural shape of a dog's neck. Collars are available in four different sizes to fit a wide range of dogs, from small to extra-large.

Dog owners will appreciate the many features that provide benefits for both the dog and owner, including:

  • GPS tracking and location: Gives dog owners peace of mind with the ability to track the dog's location and receive alerts if the dog becomes loose.
  • Activity monitor: Provides insightful activity recommendations to help owners take a more informed role in managing their dogs' wellness. Owners can monitor and track their dogs' daily activity levels to help ensure their dogs are getting the right level of activity for the dog's breed, age, and size.
  • Remote-controlled light: The only smart collar with a remote- controlled light to help an owner find their dog in the dark.
  • Temperature: Alerts to notify you if your dog may be in an environment that is too hot or cold.
  • Adventures: Record, save and share your special adventures together on social media.
  • Training: App controlled sound that can assist owners in training their dog.

Fans and dog lovers are invited to watch the first two Link AKC videos featuring Kate and Harley today on Link AKC's Facebook – www.facebook.com/LinkAKC16.

Link AKC smart collar is currently being spotlighted on www.Amazon.com/Launchpad, which features the "newest products from the brightest startups," and available for purchase exclusively on LinkAKC.com and Amazon (AMZN). For more information, visit www.LinkAKC.com and follow us on Facebook, Instagram and Twitter.

About Link AKC
Link AKC is dedicated to enhancing the bond between dogs and owners. The cutting-edge technology in the Link AKC GPS-enabled dog collar and smartphone app combines state-of-the-art smart home, wearable and mobile technology and was recognized by CES as a 2017 "Best of Innovation" winner. The team behind the Link AKC smart collar is made up of passionate dog lovers, tech experts and designers who have combined the best of design and technology to elevate dog wearables to a lifestyle product category. By tapping into The American Kennel Club's 132 years of devotion to our best friends, Link AKC is able to help owners better understand their dogs.

Contact:
Kristen Wasko
WME|IMG
212-774-6835
kristen.wasko@img.com

Herbie Calves
Link AKC
203-553-9336
herbie.calves@linkakc.com

SOURCE Link AKC

National OCD Walk Returns to Boston to Raise Awareness & Fight Stigma

BOSTON, May 10, 2017 /PRNewswire-USNewswire/ -- The International OCD Foundation (IOCDF) is pleased to announce the 5th Annual 1 Million Steps 4 OCD Walk in Boston on June 3, 2017 at Jamaica Pond. The Walk aims to raise awareness about obsessive compulsive disorder (OCD), a mental health disorder that affects over two million adults and a half million children in the U.S. alone, as well as for related disorders including body dysmorphic disorder (BDD) and hoarding disorder (HD). Over the past 5 years, the Boston Walk has continued to grow, thanks in large part to the community members and businesses that have stepped up to support this important cause.

This year, the IOCDF is pleased to have Brookline resident, Jo-Ann Winston, serve as the grand marshal for the Boston Walk, along with the entire Winston Family! Jo-Ann and her family's involvement with the IOCDF started three years ago when she read Denis Asselin's story about his son Nathaniel, the inspiration for the 1 Million Steps 4 OCD Walk. She read about the Boston Walk taking place at Jamaica Pond, created a Walk Team, and began raising money for the IOCDF. After attending the Walk and meeting members of the community, as well as the IOCDF staff, she started volunteering at the IOCDF office in downtown, and is now a member of the IOCDF Board of Directors.

"My family's story is like so many families struggling with OCD," Jo-Ann explains. "We were lost, confused, uneducated, and alone. When I found the IOCDF, I found families that shared my story. I found parents who shared the same frustrations and had the same questions. I found children who had the same controlling voice in their heads that my daughter had. I found professionals who had the research and compassion to help. With all of this, I found a community that my family and I could lean on. Finding this community made me want to be involved even more."

In addition to the Winston Family, the IOCDF is extremely appreciative to all of the walkers, donors, sponsors, and partners who are supporting this year's Walk. One of the most coveted items from the 1 Million Steps 4 OCD Walk is the Official Walk T-shirt. Each year, the IOCDF designs a special commemorative Walk T-shirt for all registered walkers who raise $25 or more on their personal fundraising pages. For the second year in a row, the IOCDF is pleased and honored to be working with a fellow non-profit, Spectrum Designs Foundation, for the printing of the Boston Walk T-shirts.

Spectrum Designs Foundation is a non-profit, social enterprise company specializing in custom apparel decoration with the mission of providing meaningful work opportunities for teens and young adults with autism. Grounded in its vision of providing gainful employment opportunities to people with autism, Spectrum Designs' employees earn at least minimum wage and Spectrum's unique structure allows for people of all abilities to grow and thrive, both within the organization and beyond.

Through their continued partnership, the IOCDF and Spectrum Designs Foundation have been able to simultaneously support two amazing causes.

"Spectrum Designs is incredibly proud to be a sponsor of the IOCDF for the second year running," says Tim Howe – Chief Operating Officer of Spectrum Designs. "The IOCDF has a pragmatic and positive approach to mental health that we share wholeheartedly — an emphasis on inherent self-worth, productivity and community. A number of our employees live with OCD and related disorders, and we appreciate the incredible work the IOCDF is doing to end the stigma associated with mental health illnesses, as well as their willingness to partner with organizations that share that vision.

As we expand our operations and employ more and more teens and young adults with autism and related developmental disabilities, it is partnerships like our enduring one with the IOCDF that propel us forwards and allow us to blaze a trail for disability employment."

In 2016 Spectrum Designs Foundation has continued to grow. They purchased a 7,500 square foot building to serve as a flagship, allowing them to double the number of individuals with disabilities that they employ, and have added three other social enterprises to their offering:

  • Spectrum Bakes, a custom artisanal bakery creating home baked treats for special events
  • Spectrum Grows, homegrown hydroponic microgreens for local restaurants and chefs
  • Spectrum Suds, a boutique laundry service offering pickup and delivery to local clients

Along with Spectrum Designs, the IOCDF is thankful to have the support of Bradley Hospital, CLIF Bar, McLean Hospital OCD Institute, Mountain Valley Treatment Center, Polar Beverages, and Winston Flowers. In addition to the Walk itself, Boston participants will enjoy a community celebration complete with live band, face painting, and awards!

Boston is one of four cities with 1 Million Steps 4 OCD Walks co-hosted by the IOCDF and its Local Affiliates. OCD Georgia and OCD Texas will co-host Walks with the IOCDF in Atlanta and Houston, respectively, on June 3rd and OCD Sacramento and OCD SF Bay Area, the IOCDF Northern California Affiliates, will co-host a Walk at the California State Capitol in Sacramento on June 10th. Beyond these four cities, hundreds of Virtual Walkers will raise funds and awareness in their local communities across the country — and globe — as well.

"OCD affects 1 in 100 adults, but it is still little understood in the general public," explains Jeff Szymanski, PhD, executive director of the IOCDF. "This 1 Million Steps 4 OCD Walk is about building a community of support — and making sure people know how to access the resources and support they need."

The Walk is open to people of all ages in the Boston area — visit www.iocdf.org/walkBoston to learn more.

About the International OCD Foundation
The International OCD Foundation is celebrating its 30th anniversary as a donor-supported nonprofit organization, working to increase access to effective treatment, end the stigma associated with mental health issues, and foster a community for those affected by OCD and the professionals who treat them. Based in Boston, the IOCDF has affiliates in 24 states and territories, as well as 11 global partners. The IOCDF has a $2 million annual operating budget, has granted millions of dollars for OCD research, and is a vital resource for the estimated 1 in 100 individuals with OCD around the world. For more information, visit www.iocdf.org.

Contact:
Meghan Buco
Communications Manager, International OCD Foundation
Phone: 617-973-5801     
Email: mbuco@iocdf.org

 

SOURCE International OCD Foundation

Research Reports on Oil & Gas Equities — Weatherford, Halliburton, Schlumberger, and Helix Energy Solutions

NEW YORK, May 10, 2017 /PRNewswire/ --

Oil and Gas Equipment and Services companies design, manufacture, and sell systems, components, and products used in oil and gas drilling and production. They may also provide oilfield services and supplies. Pre-market, Stock-Callers.com observes the recent performances of Weatherford International PLC (NYSE: WFT), Halliburton Co. (NYSE: HAL), Schlumberger Ltd (NYSE: SLB), and Helix Energy Solutions Group Inc. (NYSE: HLX). Learn more about these stocks by accessing their free research reports at:

http://stock-callers.com/registration

Weatherford  

Baar, Switzerland headquartered Weatherford International PLC's shares saw a decline of 1.17%, finishing Tuesday's trading session at $5.07. A total volume of 25.77 million shares was traded, which was higher than their three months average volume of 22.15 million shares. The stock has advanced 1.60% since the start of this year, and is trading below its 200-day moving average by 9.69%. Moreover, shares of Weatherford, which together with its subsidiaries, operates as a multinational oilfield service company worldwide, have a Relative Strength Index (RSI) of 32.52.

On April 13th, 2017, research firm Goldman downgraded the Company's stock rating from 'Buy' to 'Neutral'.

On April 27th, 2017, Weatherford announced to its shareholders, customers, and employees that the Company has published its 2016 Annual Report. The digital and interactive report shares the Company's strategic achievements throughout 2016, and discusses its priorities for the coming year. Free research report on WFT is available at:

http://stock-callers.com/registration/?symbol=WFT


Halliburton  

On Tuesday, shares in Houston, Texas-based Halliburton Co. recorded a trading volume of 8.35 million shares, which was above their three months average volume of 8.31 million shares. The stock ended the session 0.73% lower at $45.03. The Company's shares are trading 7.99% below their 200-day moving average. Furthermore, shares of Halliburton, which provides a range of services and products to the upstream oil and natural gas industry worldwide, have an RSI of 31.03.

On April 26th, 2017, research firm Cowen reiterated its 'Market Perform' rating on the Company's stock with a decrease of the target price from $59 a share to $54 a share.

On April 27th, 2017, Halliburton, Trendsetter Engineering, and C-Innovations announced that they have formed a strategic alliance to provide Gulf of Mexico customers with technologically advanced, integrated offshore well intervention packages. The alliance leverages the companies' strengths to create subsea solutions for hydraulic interventions. The combined packages will improve operator efficiency while addressing in-field production and subsea challenges. The complimentary research report on HAL can be downloaded at:


http://stock-callers.com/registration/?symbol=HAL


Schlumberger  

Shares in Houston, Texas-based Schlumberger Ltd closed at $72.28, rising 0.08% from the last trading session. The stock recorded a trading volume of 6.63 million shares. The Company's shares are trading 6.56% below their 50-day moving average. Additionally, shares of Schlumberger, which supplies technology products and services to the oil and gas exploration and production industry worldwide, have an RSI of 31.97.

On April 20th, 2017, research firm SunTrust upgraded the Company's stock rating from 'Hold' to 'Buy'.

On April 21st, 2017, Schlumberger reported results for Q1 2017. Revenue for Q1 2017 was $6.9 billion; GAAP EPS, including Cameron integration charges of $0.05 per share, was $0.20; EPS, excluding Cameron integration charges, was $0.25; and cash flow from operations was $656 million. During the quarter, the Company repurchased 4.7 million shares of its common stock at an average price of $78.97 per share, for a total purchase price of $372 million. Visit us today and access our complete research report on SLB at:

http://stock-callers.com/registration/?symbol=SLB


Helix Energy Solutions  

Houston, Texas headquartered Helix Energy Solutions Group Inc.'s stock ended 0.17% lower at $5.86 with a total trading volume of 1.20 million shares. The Company's shares are trading below their 50-day moving average by 19.01%. Shares of the Company, which together with its subsidiaries, provides specialty services to the offshore energy industry primarily in the Gulf of Mexico, North Sea, the Asia Pacific, and West Africa regions, have an RSI of 32.68.

On April 19th, 2017, Helix Energy Solutions announced that the Siem Helix 1 has commenced operations offshore Brazil and is on contract for Petroleo Brasileiro S.A. The vessel will be performing well intervention services under a multi-year contract with Petrobras. The duo has agreed to commence operations at reduced day rates for Siem Helix 1 as they work through certain items identified in the vessel acceptance process. Get free access to your research report on HLX at:

http://stock-callers.com/registration/?symbol=HLX

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TSO3 Reports Record First Quarter 2017 Results

QUEBEC CITY, May 10, 2017 /PRNewswire/ - TSO3 Inc. (TSX: TOS), an innovator in sterilization technology for medical devices in healthcare settings, reported financial results for its first fiscal quarter 2017 ended March 31, 2017. 

First Quarter 2017 Financial Summary

  • Revenue increased to a record $4.2 million, a 13.5% sequential increase over the $3.7 million recorded in the fourth quarter of 2016 and a 35% increase over the $3.1 million recorded in the first quarter of 2016. The Company shipped 36 STERIZONE® VP4 Sterilizers, along with associated accessories and consumables, to Getinge Infection Control, its exclusive global distributor, in the first quarter of 2017.
  • Gross profit on an IFRS basis was $1.6 million, or 37% of revenue, which compares non-IFRS gross profit of $1.3 million, or 36% of revenue, in the fourth quarter of 2016 and an IFRS gross profit of $1.1 million, or 36% of revenue in the first quarter of 2016. The Company experienced improvements in sterilizer production costs, and sales growth of higher-gross margin consumables in the first quarter of 2017 relative to prior periods. IFRS gross profit in the fourth quarter of 2016 was $1.0 million and includes a one-time write-off of $0.3 million for obsolete raw materials inventory.
  • Research and Development (R&D) expense grew to $1.4 million, as compared to $1.3 million in the fourth quarter of 2016 and $0.6 million in the year-ago quarter.
  • Sales, General and Administrative (SG&A) expense was $2.2 million, which compares to $1.8 million in the fourth quarter of 2016 and $1.4 million in the first quarter of 2016. $0.3 million of the increase from Q4 2016 to Q1 2017 related to additional non-cash stock compensation expense.
  • The Company's IFRS net loss was $(2.0) million or $(0.02) per share in the first quarter of 2017 and compares to non-IFRS net losses of $(1.8) million or $(0.02) per share in the fourth quarter of 2016 and $(0.9) million, or $(0.01) per share, in the first quarter of 2016. On an IFRS basis, the Company reported a net loss of $(2.1) million or $(0.02) per share in the fourth quarter of 2016 and a net profit of $0.6 million, or $0.01 per share, in the first quarter of 2016.
  • The Company had $19.6 million in cash, cash equivalents and investments and no debt as at March 31, 2017, as compared to $19.3 million and no debt at the end of 2016.

Management Commentary

"We are pleased with our first quarter 2017 results as we continue to expand our business in North America and EMEA," said TSO3 President and CEO, R.M. (Ric) Rumble. "We continue to see solid progress with manufacturing, sales, installations and end customer utilization of our industry leading technology into hospitals. We continue to support Getinge in North America, Europe and other international markets, including leveraging the traction we are gaining within the flexible endoscope reprocessing area of healthcare facilities. This includes implementing complete transitions away from traditional high level disinfection practices in favour of our low-temperature terminal sterilization solution in cleared markets and preparation to pursue expanded regulatory claims for duodenoscopes in the United States."

Supplemental Non-IFRS Financial Measures

In addition to IFRS financial measures, management uses non-IFRS financial measures to assess the Company's operational performance. It is likely that the non-IFRS financial measures used by the Company will not be comparable to similar measures reported by other issuers or those used by financial analysts as their measures may have different definitions. The measures used by the Company are intended to provide additional information and should not be considered in isolation or as a substitute for IFRS financial performance measures.

Generally, a non-IFRS financial measure is a numerical measure of an entity's historical or future financial performance, financial position or cash flows that is neither calculated nor recognized under IFRS. Management believes that such non-IFRS financial measures are important as they provide users of the financial statements with a better understanding of the results of the Company's recurring operations and their related trends, while increasing transparency and clarity into its operating results. Management also believes these measures can be useful in assessing the Company's capacity to discharge its financial obligations.

In 2016, management began assessing its operational performance using supplemental non-IFRS statement of income which removes typically one-time unusual items that do not reflect the recurring and ongoing operational results and trends. The results of the associated adjustments in 2016 included the removal of a one-time expense associated with a commitment to purchase of raw materials made in the year but made obsolete by adjustments and improvements in installation alternatives in response to feedback from end customers, and a one-time foreign exchange gain recorded in the first quarter of 2016, which resulted in the calculation of adjusted gross profit, adjusted EBITDA and adjusted net income.

 



2017

2016


Q1

Q1

Adjust-
ment(1)

Q1

Q2

Q3

Q4

Adjust-
ment(1)

Q4

$000's

 

IFRS

 

IFRS

Non-
IFRS

 

IFRS

 

IFRS

 

IFRS

Non-
IFRS

Revenues

4,211

3,071

-

3,071

2,977

3,507

3,746

-

3,746

Cost of Goods Sold

2,641

1,961

-

1,961

2,143

2,368

2,716

(312)

2,404

Gross Profit

1,570

1,110

-

1,110

834

1,139

1,030

(312)

1,341

Gross Margin

37%

36%

-

36%

28%

32%

28%

(8%)

36%











R&D

1,353

606

-

606

803

806

1,297

-

1,297

SGA

2,209

1,385

-

1,385

1,529

1,841

1,774

-

1,774

Financial

(39)

(1,588)

1,578

(10)

-

(50)

(21)

-

(21)

Net Income (loss) before tax

(1,953)

707

(1,578)

(871)

(1,499)

(1,458)

(2,020)

(312)

(1,708)

Tax

27

58

-

58

(12)

15

48

-

48

Net Income (loss)

(1,980)

649

(1,578)

(929)

(1,487)

(1,473)

(2,068)

(312)

(1,756)

Net Income (loss) per share

(0.02)

0.01

(0.02)

(0.01)

(0.02)

(0.02)

(0.02)

0.00

(0.02)

Adjusted Ebitda

(1,176)

1,000

(1,578)

(578)

(1,128)

(977)

(1,614)

(312)

(1,302)

 (1) Refer to the Non-IFRS financial measures.

 

Non-IFRS cost of goods sold, non-IFRS gross profit and non-IFRS gross margin in 2016 were impacted in Q4-2016 by a one-time write-off of inventory of $0.3 million associated with a commitment to purchase of raw materials made in the year, but made obsolete by improvements in installation alternatives in response to feedback from end customers.

Non-IFRS financial income in Q1-2016 was impacted by the one-time foreign exchange gain realized of $1.6 million following the change in functional currency from Canadian dollars to US dollars.

Adjusted EBITDA, is adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (Adjusted EBITDA). Adjusted EBITDA adjusts net income for (1) significant realized and unrealized foreign exchange gains or losses, (2) amortization and depreciation expenses (3) share-based compensation expense, (4) amortization or write-downs of certain tangible and intangible assets, (5) one-time write-off of inventory, (6) income taxes, and (7) other significant unusual items.

  

Summary of Results

Periods ended March 31 (Unaudited, IFRS Basis, in thousands of US dollars, except per share amounts)




First Quarter


2017

$

2016

$

Revenues

4,211

3,071

Cost of sales

2,641

1,961


1,570

1,110

Expenses




Research and development

1,353

606


Selling, general and administrative

2,209

1,385


Financial expenses (income)

(39)

(1,588)

Total Expenses

3,523

403

Net income (loss) before income taxes

(1,953)

707

Income taxes

27

58

Net income (loss) and total comprehensive income (loss)

(1,980)

649

Basic and diluted net income (loss) per share (in $)

(0.02)

0.01

Basic and diluted net comprehensive income (loss) per share (in $)

(0.02)

0.01

 

Consolidated Statements of Financial Position

(Unaudited, IFRS Basis, in thousands of US dollars)





March 31,

2017

$

December 31,

2016

$

Current Assets




Cash and Cash Equivalents

5,086

2,698


Short-term Investments

14,504

15,064


Accounts Receivable

507

2,318


Inventories

2,075

1,703


Prepaid Expenses

190

102


22,362

21,885

Non-current Assets




Long-term Investments

-

1,498


Property, Plant and Equipment

2,427

2,357


Intangible Assets

1,920

1,836


4,347

5,691


26,709

27,576

Current Liabilities




Accounts Payable and Accrued Liabilities

2,748

2,272


Warranty Provision

728

575


Deferred Revenues

1,083

1,004


4,559

3,851

Non-current Liabilities




Deferred Income Tax Liabilities

136

109


Deferred Revenues

5,651

5,945


10,346

9,905

Equity




Share Capital

110,515

110,406


Reserve – Share-based Compensation

5,272

4,709


Deficit

(97,712)

(95,732)


Accumulated Other Comprehensive Loss

(1,712)

(1,712)


16,363

17,671


26,709

27,576

 

Consolidated Statements of Cash Flows

As of March 31, 2017 and 2016 (Unaudited, IFRS Basis, in thousands of US dollars)




First Quarter


2017 $

2016 $

Cash flows from operating activities



Net income (loss)

(1,980)

649

Adjustments for:




Depreciation and amortization

168

77


Deferred income tax liabilities

27

-


Share-based compensation

609

216


Investment income

(75)

(38)


(1,251)

904


Changes in non-cash operating working capital items

1,765

(1,656)


Interest received

41

29

Cash flows generated by (used in) operating activities

555

(723)

Cash flows from investing activities




Acquisition of investments

(1,412)

(2,000)


Disposal of short-term investments

3,504

2,466


Acquisition of property, plant and equipment

(193)

(102)


Acquisition of intangible assets

(129)

(55)

Cash flows generated by investing activities

1,770

309

Cash flows from financing activities




Options exercised

63

-


Warrants exercised

-

10,145

Cash flows generated by financing activities

63

10,145

Increase in cash and cash equivalents

2,388

9,731

Cash and cash equivalents at the beginning

2,698

12,654

Cash and cash equivalents at the end

5,086

22,385

Investments at the end

14,504

2,000

Total cash, cash equivalents and investments at the end

19,590

24,385

 

Annual General Meeting of Shareholders

TSO3 will also hold its Annual Meeting of shareholders at 10:30 a.m. (EDT) today. The meeting will be held at the McCord Museum in Montreal. TSO3 President and CEO, R.M. (Ric) Rumble and CFO, Glen Kayll will host the meeting, where management will also discuss its first quarter 2017 financial results and provide an operational update, followed by a question and answer period.

The meeting will be webcast live and available for replay at http://event.on24.com/r.htm?e=1383427&s=1&k=26BB6E3FB663B27C9D25F93D0DBD1D4C  and via the Investors section of the Company's website at www.tso3.com.

About TSO3

Founded in 1998, TSO3's activities encompass the sale, production, maintenance, research, development and licensing of sterilization processes, related consumable supplies and accessories for heat-sensitive medical devices. The Company designs products for sterile processing areas in the hospital environment that offer an advantageous replacement solution to other low temperature sterilization processes currently used in hospitals. TSOalso offers services related to the maintenance of sterilization equipment and compatibility testing of medical devices with such processes.

For more information about TSO3, visit the Company's website at www.tso3.com         

The statements in this release and oral statements made by representatives of TSO3 relating to matters that are not historical facts (including, without limitation, those regarding the timing or outcome of TSO3's sales, business or operations) are forward-looking statements that involve certain risks, uncertainties and hypotheses, including, but not limited to, the ability of the Company to obtain the required regulatory clearance to market its products on a worldwide basis; general business and economic conditions, the condition of the financial markets, the ability of TSO3 to obtain financing on favourable terms and other risks and uncertainties. Although TSO3 believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The complete versions of the cautionary note regarding forward-looking statements as well as a description of the relevant assumptions and risk factors likely to affect TSO3's actual or projected results are included in the Management's Discussion and Analysis for the year ended December 31, 2016, which is available on the Company's website. The forward-looking statements contained in this press release are made as of the date hereof and TSO3 does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless expressly required by applicable securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.

 

 

SOURCE TSO3 Inc.

Gastar Exploration Inc. Declares Monthly Cash Dividend on 8.625% Series A Preferred Stock and 10.75% Series B Preferred Stock

HOUSTON, May 10, 2017 /PRNewswire/ -- Gastar Exploration Inc. (NYSE MKT: GST) ("Gastar") announced today that it has declared monthly cash dividends on its 8.625% Series A Preferred Stock ("Series A Preferred Stock") and its 10.75% Series B Preferred Stock ("Series B Preferred Stock") for May 2017.

The dividend on the Series A Preferred Stock is payable on May 31, 2017 to holders of record at the close of business on May 22, 2017.  The May 2017 dividend payment will be an annualized 8.625% per share, which is equivalent to $0.1796875 per share, based on the $25.00 per share liquidation preference of the Series A Preferred Stock.  The Series A Preferred Stock is currently listed on the NYSE MKT and trades under the ticker symbol "GST.PRA."

The dividend on the Series B Preferred Stock is payable on May 31, 2017 to holders of record at the close of business on May 22, 2017.  The May 2017 dividend payment will be an annualized 10.75% per share, which is equivalent to $0.2239584 per share, based on the $25.00 per share liquidation preference of the Series B Preferred Stock.  The Series B Preferred Stock is currently listed on the NYSE MKT and trades under the ticker symbol "GST.PRB."

About Gastar

Gastar Exploration Inc. is a pure play Mid-Continent independent energy company engaged in the exploration, development and production of oil, condensate, natural gas and natural gas liquids. Gastar's principal business activities include the identification, acquisition, and subsequent exploration and development of oil and natural gas properties with an emphasis on unconventional reserves, such as shale resource plays. Gastar holds a concentrated acreage position in what is believed to be the core of the STACK Play, an area of central Oklahoma which is home to multiple oil and natural gas-rich reservoirs including the Meramec, Oswego, Osage, Woodford and Hunton formations. For more information, visit Gastar's website at www.gastar.com.

Forward-Looking Statements

This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements give our current expectations, opinion, belief or forecasts of future events and performance.  A statement identified by the use of forward-looking words including "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "will," "should," and certain of the other foregoing statements may be deemed forward-looking statements.  Although Gastar believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release.  These include risks inherent in oil and natural gas drilling and production activities, including risks with respect to continued low or further declining prices for oil and natural gas that could result in further downward revisions to the value of proved reserves or otherwise cause Gastar to further delay or suspend planned drilling and completion operations or reduce production levels, which would adversely impact cash flow; risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and continued low or further declining prices for oil and natural gas; risks of fire, explosion, blowouts, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; delays in receipt of drilling permits; risks relating to unexpected adverse developments in the status of properties; risks relating to the absence or delay in receipt of government approvals or third-party consents; risks relating to Gastar's ability to realize the anticipated benefits from acquired assets; and other risks described in Gastar's Annual Report on Form 10-K and other filings with the U.S. Securities and Exchange Commission ("SEC"), available at the SEC's website at www.sec.gov.   By issuing forward-looking statements based on current expectations, opinions, views or beliefs, Gastar has no obligation and, except as required by law, is not undertaking any obligation, to update or revise these statements or provide any other information relating to such statements.

Contacts:
Gastar Exploration Inc.
J. Russell Porter, Chief Executive Officer
713-739-1800 / rporter@gastar.com

Investor Relations Counsel:
Lisa Elliott / lelliott@DennardLascar.com
Dennard-Lascar Associates: 713-529-6600

 

SOURCE Gastar Exploration Inc.

Wolverine Worldwide Reports First-Quarter Results And Updates Full-Year Earnings Guidance

ROCKFORD, Mich., May 10, 2017 /PRNewswire/ -- Wolverine World Wide, Inc. (NYSE: WWW) today reported financial results for the first quarter ended April 1, 2017.

"We had a solid start to the year, highlighted by first-quarter revenue and earnings that surpassed expectations and strong progress toward our holistic, enterprise-wide strategic transformation initiative, the WOLVERINE WAY FORWARD," said Blake W. Krueger, Wolverine Worldwide's Chairman, Chief Executive Officer and President. "The transformation of our business is well underway with our strategy focused on elevating our most powerful brands with consumers, delivering continuous product innovation and sustained organic growth, and unlocking incremental operational efficiencies, with an emphasis on pace and speed. We believe that the WOLVERINE WAY FORWARD will put us in the best position to compete and win in the "new normal" fast-changing global consumer retail environment."

WOLVERINE WAY FORWARD TRANSFORMATION UPDATE

  • The WOLVERINE WAY FORWARD transformation includes key operational excellence initiatives with incremental operating profit benefits, further solidifying the Company's confidence in achieving its stated goal of 12% adjusted operating margin by the end of 2018.
  • The previously announced Store Restructuring Plan has accelerated, with 180 stores now closed since the beginning of 2017. The Company incurred approximately $9.2 million of operating losses in Q1 2017 for stores within the Plan that will not reoccur next year. The losses include $4.4 million of inventory mark-downs related to accelerated store closures. All Stride Rite and Track-N-Trail concept stores are now closed. These store closures allowed the Company to liquidate inventory totaling approximately $20 million during the quarter.

FIRST-QUARTER 2017 REVIEW
Prior to fiscal 2017, the Company reported its quarterly results of operations on the basis of 12-week periods for each of the first three fiscal quarters and a 16 or 17-week period for the fiscal fourth quarter. Beginning in fiscal 2017, the Company's fiscal year will be comprised of 13-week quarters for each of the first three fiscal quarters and a 13 or 14-week period for the fiscal fourth quarter. There is no change to the Company's fiscal year-end date. References to the "quarter ended" or "fiscal quarter" refer to the 13-week period ended April 1, 2017 or the 12-week period ended March 26, 2016.

  • Reported revenue of $591.3 million decreased 4.8% after taking into consideration the impact of the additional week of operations in the first quarter of fiscal 2017. Underlying revenue declined 2.0%.
  • Reported gross margin of 39.7%, compared to 39.6% in the prior year.  Adjusted gross margin on a constant currency basis was 41.7%, up 120 basis points versus the prior year. 
  • Reported operating margin was 5.5%, compared to 5.9% in the prior year.  Adjusted operating margin on a constant currency basis was 11.0%, up 260 basis points versus the prior year and excludes $4.4 million of incremental inventory markdowns related to the accelerated store closings.
  • Reported diluted earnings per share were $0.17, compared to earnings per share of $0.18 in the prior year.  Adjusted diluted earnings per share were $0.37, and, on a constant currency basis, were $0.40, compared to $0.31 in the prior year.
  • Inventory at the end of the quarter was down 25.9% versus the prior year, meaningfully better than expected.
  • The Company successfully exited 104 underperforming stores during the quarter and an additional 76 stores subsequent to quarter-end.

"We are pleased to deliver better-than-expected results for the first quarter, demonstrating the success of our strategy focused on operational excellence, growth and speed," stated Mike Stornant, Senior Vice President and Chief Financial Officer. "Our proactive efforts aimed at overcoming the challenging global market conditions paid off in Q1, with nearly all brands in the portfolio exceeding their revenue plans for the quarter, while also over-delivering on our operating profit goals. We made tremendous progress on our store realignment plan including the closure of all Stride Rite stores, and now have line-of-sight to our go-forward store-fleet. We managed our working capital well in the quarter, with inventory down over 25% and DSOs improving by 1.1 days. We believe the strength of our global brands combined with the continued discipline in the management of our business and implementation of our WOLVERINE WAY FORWARD plan leaves us well placed to achieve our goals."

FISCAL 2017 OUTLOOK
A good first quarter, coupled with some improving trends in the business have resulted in the following update to the Company's full-year 2017 outlook:

  • Reported revenue in the range of $2.270 billion to $2.370 billion - unchanged from the Company's original outlook. This is a decline of approximately 9.0% to 5.0%.  Underlying revenue is expected in the range of down 2.3% to growth of 1.9%, reflecting approximately $160 million to $180 million of impact from currency and retail store closures.
  • Reported operating margin in the range of 5.2% to 5.9% and adjusted operating margin in the range of 10.2% to 10.7%, resulting from operational excellence initiatives focused on supply chain optimization, omnichannel transformation, and operational efficiencies.
  • Reported diluted earnings per share in the range of $0.73 to $0.83 compared to $0.89 in fiscal 2016. Adjusted diluted earnings per share are now expected in the range of $1.50 to $1.60 compared to $1.36 in fiscal 2016 adjusted on the same basis. On a constant currency basis, adjusted earnings per share in the range of $1.58 to $1.68.

NON-GAAP FINANCIAL MEASURES
This earnings release contains certain non-GAAP financial measures. References to "underlying" revenue indicate reported revenue adjusted for the impact of foreign exchange, closed retail stores, the impact of the additional week of operations and the exit of the Cushe business. Measures referred to as "adjusted" financial results exclude restructuring and impairment costs, organizational transformation costs, debt extinguishment and other costs, and the impact of the additional week of operations. In addition to these adjustments of the type the Company has made in recent periods, adjusted gross profit, adjusted operating income and adjusted earnings per share in this release are further adjusted to exclude incremental inventory markdowns related to 180 stores that are now closed under management's previously announced 2016 store restructure Plan. In light of the large scale of closures in a compressed time frame, management believes this treatment gives investors a better view of continuing operations. Pursuant to the requirements of Regulation G, the company has provided a reconciliation of the above of non-GAAP financial measures to the most directly comparable GAAP financial measure.

EARNINGS CALL INFORMATION
The Company will host a conference call today at 8:30 a.m. Eastern Time to discuss these results and current business trends. The conference call will be broadcast live and accessible under the "Investor Relations" tab at wolverineworldwide.com. A replay of the conference call will be available at the Company's website for a period of approximately 30 days.

ABOUT WOLVERINE WORLDWIDE
With a commitment to service and product excellence, Wolverine World Wide, Inc. is one of the world's leading marketers of branded casual, active lifestyle, work, outdoor sport, athletic, children's and uniform footwear and apparel. The Company's portfolio of highly recognized brands includes: Merrell®, Sperry®, Hush Puppies®, Saucony®, Wolverine®, Keds®, Stride Rite®, Sebago®, Chaco®, Bates®, and HYTEST®.  The Company also is the global footwear licensee of the popular brands Cat® and Harley-Davidson®.  The Company's products are carried by leading retailers in the U.S. and globally in approximately 200 countries and territories.  For additional information, please visit our website, wolverineworldwide.com

FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements, including statements regarding: the Company's ability to successfully execute key strategic initiatives, elevate brands with consumers, and deliver product innovation, organic growth and operational efficiencies; the Company's ability to compete and win in the current environment; and the Company's fiscal 2017 outlook and guidance. In addition, words such as "guidance," "estimates," "anticipates," "believes," "forecasts," "step," "plans," "predicts," "projects," "is likely," "expects," "intends," "should," "will," "confident," variations of such words, and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions ("Risk Factors") that are difficult to predict with regard to timing, extent, likelihood, and degree of occurrence.  Risk Factors include, among others: changes in general economic conditions, employment rates, business conditions, interest rates, tax policies and other factors affecting consumer spending in the markets and regions in which the Company's products are sold; the inability for any reason to effectively compete in global footwear, apparel and consumer-direct markets; the inability to maintain positive brand images and anticipate, understand and respond to changing footwear and apparel trends and consumer preferences; the inability to effectively manage inventory levels; increases or changes in duties, tariffs, quotas or applicable assessments in countries of import and export; foreign currency exchange rate fluctuations; currency restrictions; capacity constraints, production disruptions, quality issues, price increases or other risks associated with foreign sourcing; the cost and availability of raw materials, inventories, services and labor for owned and contract manufacturers; labor disruptions; changes in relationships with, including the loss of, significant wholesale customers; the failure of the U.S. Department of Defense to exercise future purchase options or award new contracts, or the cancellation or modification of existing contracts by the Department of Defense or other military purchasers; risks related to the significant investment in, and performance of, the Company's consumer-direct operations; risks related to expansion into new markets and complementary product categories  as well as consumer-direct operations; the impact of seasonality and unpredictable weather conditions; changes in general economic conditions and/or the credit markets on the Company's distributors, suppliers and customers; increase in the Company's effective tax rates; failure of licensees or distributors to meet planned annual sales goals or to make timely payments to the Company; the risks of doing business in developing countries, and politically or economically volatile areas; the ability to secure and protect owned intellectual property or use licensed intellectual property; the impact of regulation, regulatory and legal proceedings and legal compliance risks; the potential breach of the Company's databases, or those of its vendors, which contain certain personal information or payment card data; problems affecting the Company's distribution system, including service interruptions at shipping and receiving ports; strategic actions, including new initiatives and ventures, acquisitions and dispositions, and the Company's success in integrating acquired businesses, and implementing new initiatives and ventures; the risk of impairment to goodwill and other acquired intangibles; the success of the Company's consumer-direct realignment initiatives; changes in future pension funding requirements and pension expenses; and additional factors discussed in the Company's reports filed with the Securities and Exchange Commission and exhibits thereto. The foregoing Risk Factors, as well as other existing Risk Factors and new Risk Factors that emerge from time to time, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.  Furthermore, the Company undertakes no obligation to update, amend, or clarify forward-looking statements.

 

 

WOLVERINE WORLD WIDE, INC.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

(In millions, except per share data)



13 Weeks Ended
April 1, 2017


12 Weeks Ended
March 26, 2016

Revenue

$

591.3



$

577.6


Cost of goods sold

352.0



344.9


Restructuring costs

4.6



3.9


Gross profit

234.7



228.8


Gross margin

39.7

%


39.6

%





Selling, general and administrative expenses

182.1



184.1


Restructuring and impairment costs

20.0



10.7


Operating expenses

202.1



194.8


Operating expenses as a % of revenue

34.2

%


33.7

%





Operating profit

32.6



34.0


Operating margin

5.5

%


5.9

%





Interest expense, net

8.9



8.5


Other expense (income), net

2.5



(0.1)


Total other expenses

11.4



8.4


Earnings before income taxes

21.2



25.6






Income tax expense

4.4



8.0


Effective tax rate

20.7

%


31.4

%





Net earnings

16.8



17.6






Less: net earnings attributable to noncontrolling interests

0.1



0.2


Net earnings attributable to Wolverine World Wide, Inc.

$

16.7



$

17.4


Diluted earnings per share

$

0.17



$

0.18






Supplemental information:




Net earnings used to calculate diluted earnings per share

$

16.3



$

17.0


Shares used to calculate diluted earnings per share

96.0



96.2


Weighted average shares outstanding

97.0



99.2


 

 

WOLVERINE WORLD WIDE, INC.

CONSOLIDATED CONDENSED BALANCE SHEETS

(Unaudited)

(In millions)



April 1,
 2017


March 26,
 2016

ASSETS




Cash and cash equivalents

$

304.1



$

158.2


Accounts receivables, net

287.7



326.0


Inventories, net

356.5



480.8


Other current assets

39.5



40.3


Total current assets

987.8



1,005.3


Property, plant and equipment, net

145.1



135.3


Goodwill and other indefinite-lived intangibles

1,103.6



1,115.6


Other non-current assets

151.3



168.4


Total assets

$

2,387.8



$

2,424.6






LIABILITIES AND STOCKHOLDERS' EQUITY




Accounts payable and other accrued liabilities

$

236.5



$

247.1


Current maturities of long-term debt

41.2



16.9


Borrowings under revolving credit agreements and other short-term notes

2.4



60.0


Total current liabilities

280.1



324.0


Long-term debt

769.5



793.4


Other non-current liabilities

342.7



326.1


Stockholders' equity

995.5



981.1


Total liabilities and stockholders' equity

$

2,387.8



$

2,424.6


 

 

WOLVERINE WORLD WIDE, INC.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

(In millions)



13 Weeks Ended
April 1, 2017


12 Weeks Ended
March 26, 2016

OPERATING ACTIVITIES:




Net earnings

$

16.8



$

17.6


Adjustments to reconcile net earnings to net cash used in operating activities:




Depreciation and amortization

9.2



9.8


Stock-based compensation expense

7.7



7.6


Excess tax benefits from stock-based compensation



(0.1)


Pension and SERP expense

3.7



2.4


Restructuring and impairment costs

24.6



14.6


Other

(17.9)



(9.8)


Changes in operating assets and liabilities

(74.9)



(121.0)


Net cash used in operating activities

(30.8)



(78.9)






INVESTING ACTIVITIES:




Additions to property, plant and equipment

(11.1)



(9.9)


Other

(0.7)



(0.6)


Net cash used in investing activities

(11.8)



(10.5)






FINANCING ACTIVITIES:




Net borrowings (payments) under revolving credit agreements and other short-term notes

(0.6)



60.0


Payments on long-term debt

(7.5)




Cash dividends paid

(5.8)



(6.0)


Purchase of common stock for treasury

(11.5)



(0.1)


Purchases of shares under employee stock plans

(4.9)



(4.2)


Proceeds from the exercise of stock options

6.5



1.9


Excess tax benefits from stock-based compensation



0.1


Contributions from noncontrolling interests



0.8


Net cash provided by (used in) financing activities

(23.8)



52.5






Effect of foreign exchange rate changes

0.7



1.0


Decrease in cash and cash equivalents

(65.7)



(35.9)






Cash and cash equivalents at beginning of the year

369.8



194.1


Cash and cash equivalents at end of the period

$

304.1



$

158.2


 

 

The following tables contain information regarding the non-GAAP adjustments used by the Company in the presentation of its financial results:

WOLVERINE WORLD WIDE, INC.


Q1 2017 RECONCILIATION TABLES


RECONCILIATION OF REPORTED REVENUE GROWTH TO

UNDERLYING REVENUE GROWTH*

(Unaudited)

(In millions)



GAAP
Basis


Impact of Additional Week (1)


Adjusted on
a Restated
Basis


Foreign Exchange Impact


Adjustments (2)


As Adjusted
on a Constant
Currency
Basis













Revenue - Fiscal 2017 Q1

$

591.3





$

591.3



$

2.5





$

593.8














Growth

2.4

%




(4.8)

%






(2.0)%














Revenue - Fiscal 2016 Q1

$

577.6



$

43.2



$

620.8





$

(14.9)



$

605.9


























(1)   

Given the first quarter of fiscal 2016 had 12 weeks of operations and the first quarter of fiscal 2017 had 13 weeks of operations, the Company quantified the impact of adding an additional week to the first quarter of fiscal 2016 to allow for a better comparison to the first quarter of fiscal 2017.

(2)  

Adjustments include the impact from retail stores closed ($13.6 million) and the exit of the Cushe business ($1.3 million).

 

 

RECONCILIATION OF REPORTED GROSS MARGIN TO ADJUSTED

GROSS MARGIN ON A CONSTANT CURRENCY BASIS*

(Unaudited)

(In millions)



GAAP
Basis


Foreign
Exchange
Impact


Restructuring Costs


Store
Inventory
Mark-
downs (1)


Impact of Additional Week (2)


As Adjusted
on a
Constant
Currency
Basis













Gross Profit - Fiscal 2017 Q1

$

234.7



$

4.0



$

4.6



$

4.4





$

247.7














Gross margin

39.7

%










41.7

%













Gross Profit - Fiscal 2016 Q1

$

228.8





$

3.9



$

0.5



$

18.4



$

251.6














Gross margin

39.6

%










40.5

%

























(1)  

Q1 2017 store inventory mark-downs relate to retail stores closed since January 1, 2017 as part of the Company's previously announced 2016 store closure plan ("2016 Plan") as disclosed in the Company's 2016 Form 10-K. Q1 2016 store inventory mark-downs related to retail stores closed in Q1 2016 as part of the Company's 2014 restructuring plan ("2014 Plan") as disclosed in the Company's 2014 Form 10-K

(2)  

Given the first quarter of fiscal 2016 had 12 weeks of operations and the first quarter of fiscal 2017 had 13 weeks of operations, the Company quantified the impact of adding an additional week to the first quarter of fiscal 2016 to allow for a better comparison to the first quarter of fiscal 2017.

 

 

RECONCILIATION OF REPORTED OPERATING MARGIN TO ADJUSTED

OPERATING MARGIN ON A CONSTANT CURRENCY BASIS*

(Unaudited)

(In millions)



GAAP
Basis


Foreign Exchange Impact


Restructuring
and
Impairment
Costs


Store
Inventory
Mark-
downs (1)


Organizational
Transformation
Costs (2)


Impact of
Additional
Week (3)


As Adjusted
on a Constant
Currency
Basis















Operating Profit -
Fiscal 2017 Q1

$

32.6



$

3.1



$

24.6



$

4.4



$

0.8





$

65.5
















Operating margin

5.5

%












11.0

%















Operating Profit -
Fiscal 2016 Q1

$

34.0





$

14.6



$

0.5



$



$

2.9



$

52.0
















Operating margin

5.9

%












8.4

%





























(1)

Q1 2017 store inventory mark-downs relate to retail stores closed since January 1, 2017 as part of the 2016 Plan. Q1 2016 store inventory mark-downs related to retail stores closed in Q1 2016 as part of the 2014 Plan.

(2)

Organizational transformation costs include third party consulting costs and costs related to the Company's distribution center optimization.

(3)

Given the first quarter of fiscal 2016 had 12 weeks of operations and the first quarter of fiscal 2017 had 13 weeks of operations, the Company quantified the impact of adding an additional week to the first quarter of fiscal 2016 to allow for a better comparison to the first quarter of fiscal 2017.

 

 

RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED

DILUTED EPS ON A CONSTANT CURRENCY BASIS*

(Unaudited)



GAAP Basis
EPS


Adjustments (1)


As Adjusted
EPS


Foreign
Exchange
Impact


As Adjusted
EPS On a
Constant
Currency Basis











Fiscal 2017 Q1

$

0.17



$

0.20



$

0.37



$

0.03



$

0.40












Fiscal 2016 Q1

$

0.18



$

0.13



$

0.31


























(1) 

Fiscal 2017 adjustments include the impact of restructuring and impairment costs, store inventory mark-downs related to retail stores closed since January 1, 2017 as part of the 2016 Plan, and organizational transformation costs. Fiscal 2016 adjustments include the impact of restructuring and impairment costs, store inventory mark-downs related to retail stores closed in Q1 2016 as part of the 2014 Plan, and the impact of the additional week of operations.

 

 

2017 GUIDANCE RECONCILIATION TABLES


RECONCILIATION OF FISCAL 2017 FULL-YEAR REPORTED REVENUE GROWTH

GUIDANCE TO UNDERLYING REVENUE GROWTH GUIDANCE*

(Unaudited)

(In millions)



GAAP Basis

Full-Year Revenue


Foreign
Exchange
Impact


Adjustments (1)


Underlying Full-
Year Revenue









Fiscal 2017 Revenue Guidance

$         2,270 - 2,370



$

30.0





$          2,300 - 2,400


Fiscal 2016 Revenue

$

2,494.6





$

(140.0)



$

2,354.6


Percentage growth (decline)

(9.0) - (5.0)%







(2.3) - 1.9%


















(1)

Adjustments include the estimated impact from retail store closures.

 

 

RECONCILIATION OF FISCAL 2017 FULL-YEAR REPORTED OPERATING PROFIT

GUIDANCE TO ADJUSTED OPERATING PROFIT GUIDANCE*

(Unaudited)

(In millions)



GAAP Basis

Full-Year Operating Profit


Adjustments (1)


As Adjusted

Full-Year Operating Profit







Fiscal 2017 Operating Profit Guidance

$         118 - 139


$

115.0



$          233 - 254

Operating Margin

5.2 - 5.9%




10.2 - 10.7%









(1)

Adjustments include the estimated impact from restructuring and impairment costs, organizational transformation costs and $8.6 million of store inventory mark-downs related to retail stores closed since January 1, 2017 as part of the 2016 Plan.

 

 

RECONCILIATION OF FISCAL 2017 FULL-YEAR DILUTED EPS GUIDANCE TO ADJUSTED
DILUTED EPS ON A CONSTANT CURRENCY BASIS GUIDANCE*

(Unaudited)



GAAP Basis

Full-Year 2017


Adjustments (1)


As Adjusted

Full-Year 2017


Foreign
Exchange
Impact


As Adjusted

Full-Year 2017
Constant
Currency Basis











Diluted earnings per share
Guidance

$  0.73  -  0.83


$

0.77



$  1.50  -  1.60


$

0.08



$  1.58  -  1.68















(1)

Adjustments include estimated restructuring and impairment costs, organizational transformation costs and $8.6 million of store inventory mark-downs related to retail stores closed since January 1, 2017 as part of the 2016 Plan.

 

 

 

RECONCILIATION OF FISCAL 2016 FULL-YEAR REPORTED

DILUTED EPS TO ADJUSTED DILUTED EPS *

(Unaudited)

 



GAAP Basis

Full-Year 2016


Adjustments (1)


As Adjusted Full-Year
2016 EPS







Diluted earnings per share

$

0.89



$

0.47



$

1.36














 (1)

Adjustments include restructuring and impairment costs, organizational transformation costs and $0.6 million of store inventory mark-downs related to retail stores closed in fiscal 2016 as part of 2016 Plan and 2014 Plan.

 

 

*   

To supplement the consolidated financial statements presented in accordance with Generally Accepted Accounting Principles ("GAAP"), the Company describes what certain financial measures would have been if restructuring and impairment costs, incremental store inventory mark-downs and organizational transformation costs were excluded. The Company also describes underlying revenue, which excludes the impact of foreign exchange, the impact of retail store closures, the impact of the additional week of operations and the exit of the Cushe business in fiscal 2016. The Company believes these non-GAAP measures provide useful information to both management and investors to increase comparability to the prior period by adjusting for certain items that may not be indicative of core operating measures and to better identify trends in our business.  The adjusted financial results are used by management to, and allow investors to, evaluate the operating performance of the Company on a comparable basis.  The Company evaluates results of operations on both a reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. The Company believes providing constant currency information provides valuable supplemental information regarding results of operations, consistent with how the Company evaluates performance. The Company calculates constant currency by converting the current-period local currency financial results using the prior period exchange rates and comparing these adjusted amounts to our current period reported results. Management does not, nor should investors, consider such non-GAAP financial measures in isolation from, or as a substitution for, financial information prepared in accordance with GAAP.  A reconciliation of all non-GAAP measures included in this press release, to the most directly comparable GAAP measures, are found in the financial tables above.

 

 

SOURCE Wolverine World Wide, Inc.

Concrete Bonding Agents Market 2017 Growth, Drivers, Trends, Challenges, Share, Opportunities and Analysis to 2021

Analysts forecast the Global Concrete Bonding Agents Market to grow at a CAGR of 7.43%  during the period 2017-2021. The Concrete Bonding Agents Market Report Forecast 2017-2021 is a valuable source of understanding data for business strategies. Global Concrete Bonding Agents Market overview with growth analysis and historical & futuristic cost, revenue, demand and supply data. The research analysts provide an elaborate description of the value chain and its distributor analysis. This Concrete Bonding Agents industry provides comprehensive data which enhances the understanding, scope and application of this report.

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Concrete is a composite material, which is a mixture of coarse aggregates bonded together with a fluid cement that hardens over time. Bonding agents are used to enhance the joining of individual components of a structure without using mechanical fasteners. These products are used in repair applications such as bonding of fresh concrete, sprayed concrete, cement repair mortar, and hardened concrete.

The vendor competition is based on cost, product quality, reliability, and aftermarket service. Moreover, it is imperative for the vendors to offer cost-effective and high-quality alternative sources of energy generation to sustain and succeed in the aviation industry. And Key vendors in the market are: BASF, Dow Chemical, Mapei, Saint-Gobain, Sika and others.

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Global Concrete Bonding Agents Market report provides segmentation by Market Driver (Rising income of people leading to growth in infrastructural development in emerging economies), Market Challenge (Lack of awareness and inadequate workmanship) and analysis of the Market Trend (Increasing government investment in repair and maintenance)

Major Points covered in the report: The market size and the growth rate be in 2021, The key factors driving the Concrete Bonding Agents market, the key market trends impacting the growth of the Concrete Bonding Agents market, the challenges to market growth, the market opportunities and threats faced by the vendors, Trending factors influencing the Concrete Bonding Agents market, The key outcomes of the five forces analysis of the Concrete Bonding Agents market

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Geographical Segmentation of Concrete Bonding Agents Market:

The Concrete Bonding Agents report also presents the vendor landscape and a corresponding detailed analysis of the major vendors operating in the market. Concrete Bonding Agents report analyses the market potential for each geographical region based on the growth rate, macroeconomic parameters, consumer buying patterns, and market demand and supply scenarios. Concrete Bonding Agents Market report then estimates 2017-2021 market development trends of Industry. Analysis of upstream raw materials, downstream demand, and current market dynamics is also carried out. In the end, the report makes some important proposals for a new project of Concrete Bonding Agents Market before evaluating its feasibility.

And continued….

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Getaround Expands To Boston

SAN FRANCISCO, May 10, 2017 /PRNewswire/ — Today, Getaround, the leading peer-to-peer car-sharing platform, announced its expansion into the greater Boston area. Previously, car-sharing in Boston was limited to just options for a renter, but now, car owners can participate in the sharing economy by renting out their cars to people nearby. Those without cars can easily discover and rent cars by the hour using the Getaround website, iOS or Android apps. With thousands of users in Boston looking to rent cars this spring and summer for weekend road trips, mid-week apartment moves and daily errands, now is the time for car owners to list their cars and start earning money.

„We are thrilled to launch in Boston, an early adopter of car-sharing, and one that is dense with people, cars and a good transportation system,” said Jessica Scorpio, Founder and Chief Marketing Officer. „Good transportation systems often times lead to people leaving their cars unused, which through Getaround can provide car-free residents with an innovative transportation option taking cars off the road, reducing pollution and traffic and helping the car owner earn extra income. It’s a win-win for everyone.”

Getaround is the only company to make car-sharing safe, keyless and seamless through the Getaround mobile app and Getaround Connect™.  This award-winning, proprietary technology, combines GPS, Bluetooth LE and keyless remote technology allowing renters to unlock the car from their mobile phones and eliminating the need for owners to provide keys to the renter in-person.

Boston is a hub for innovation, and I’m pleased to welcome Getaround’s unique services to Boston’s growing list of startups,” said Boston Chief of Economic Development John Barros.

Within two months of the company’s soft launch in March 2017, there are already about 50 cars live and available to rent on Getaround in the greater Boston area. These cars can be discovered and booked through the website and mobile app today. Car owners have the potential to earn hundreds of dollars per month funding their car payment, groceries or next vacation. Getaround handles background and license checks and provides insurance to ensure both owner and renter have peace of mind.

„Getaround’s smart technology integration, which allows renters to unlock my car from their phones while I’m sitting at my desk or not near my car, makes Getaround the best car-sharing option out there,” said Brandon Crowe, Getaround user and Boston resident. „Not only does the technology save me time and energy, but the money I make from renting out my car covers my lease and fuels a night out or weekend trip with friends.”

Since launching Getaround in 2011, car owners across the country have made significant money by sharing their cars on the platform. Read more stories about those owners on the Getaround blog.

For those who don’t own cars and want to rent one by the hour, they can open the mobile app or head to www.getaround.com to find and book a car nearby.

In addition to creating economic opportunity for car owners in Boston, Getaround will be creating local jobs as the company looks to open a Boston office and hire around five people within the next several months.

Headquartered in San Francisco, Getaround is available to owners and renters in San Francisco, Portland, Chicago, Washington D.C., the Tri-State New Jersey and New York areas and now Boston. With its mission to maximize the cars that already exist and ultimately take cars off the road, the company plans to continue expansion to several new markets in 2017. The Tri-State New Jersey and New York area was launched earlier in April, and the Boston area is the second new market to be launched this year and hot on the heels of the company’s announcement of its $45M Series C round of financing. The company has also recently secured a number of strategic partnerships to broaden the ways its technology can be used, including a technology integration with Toyota, alongside partnerships with Uber and top carmakers, transforming consumer access to mobility.

To learn more, list your car, or rent a car nearby, head to www.getaround.com, or download the iPhone or Android mobile app.

About Getaround

Getaround empowers people to safely share cars by the hour and day. Combining Getaround Connect™, the patented connected car technology, with auto insurance, Getaround creates a seamless sharing experience. Getaround members can conveniently rent nearby cars and save money on auto payments, insurance and maintenance. Owners share cars ranging from a smartcar to a Tesla earning thousands in extra income each year to offset the high cost of car ownership, while making a positive impact on the environment. Getaround currently has nearly half a million users with thousands of cars available to rent instantly in 14 cities across the U.S. For more information visit Getaround.com, download our iPhone or Android app, like us on Facebook, or follow us on Instagram and Twitter.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/getaround-expands-to-boston-300454882.html

SOURCE Getaround

Related Links

http://www.getaround.com

PDP Flat Panel Display Sales Market Analysis Covering Size, Growth Factors, Demand, Trends and Forecast 2022

PDP Flat Panel Display Sales Market report covers detailed competitive outlook including the market share and company profiles of the key participants operating in the global market.

Worldwide PDP Flat Panel Display Sales Market 2022, presents critical information and factual data about the PDP Flat Panel Display Sales Market globally, providing an overall statistical study of the PDP Flat Panel Display Sales Market on the basis of market drivers, PDP Flat Panel Display Sales Market limitations, and its future prospects. The prevalent global PDP Flat Panel Display Sales trends and opportunities are also taken into consideration in PDP Flat Panel Display Sales Market study.

Global PDP Flat Panel Display Sales Market 2022 report has Forecasted Compound Annual Growth Rate (CAGR) in % value for particular period for PDP Flat Panel Display Sales Market, that will help user to take decision based on futuristic chart. Report also includes key players in global PDP Flat Panel Display Sales Market. The PDP Flat Panel Display Sales Market size is estimated in terms of revenue (US$) and production volume in this report.

Various PDP Flat Panel Display Sales industry leading players are studied with respect to their company profile, product portfolio, capacity, price, cost and revenue.

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The Top Companies Report is intended to provide our buyers with a snapshot of the industry’s most influential players

Top Key Players Included:

Panasonic Corporation

Sony Corporation

LG Display

Samsung Electronics

Emerging Display Technologies Corp

NEC

Pioneer Electronics

Hitachi

Fujitsu

Further in the PDP Flat Panel Display Sales Market research report, following points are included along with in-depth study of each point:

Production Analysis- Production of the PDP Flat Panel Display Sales is analysed with respect to different regions, types and applications. Here, price analysis of various PDP Flat Panel Display Sales Market key players is also covered.

Sales and Revenue Analysis– Both, sales and revenue are studied for the different regions of the global PDP Flat Panel Display Sales Market. another major aspect, price, which plays important part in the revenue generation is also assessed in this section for the various regions.

Supply and Consumption- In continuation with sales, this section studies supply and consumption for the PDP Flat Panel Display Sales Market. This part also sheds light on the gap between supple and consumption. Import and export figures are also given in this part.

Competitors– In this section, various PDP Flat Panel Display Sales industry leading players are studied with respect to their company profile, product portfolio, capacity, price, cost and revenue.

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All aspects of the PDP Flat Panel Display Sales Market are quantitatively as well as qualitatively assessed to study the global as well as regional PDP Flat Panel Display Sales Market comparatively. The basic information such as the definition of the PDP Flat Panel Display Sales Market, prevalent PDP Flat Panel Display Sales Market chain, and the government regulations pertaining to the PDP Flat Panel Display Sales Market are also discussed in the report.

The PDP Flat Panel Display Sales Market has been segmented as below:

By Product Analysis:

30 Inches

50 Inches

Other

By Regional Analysis:

  • United States
  • EU
  • China
  • Japan
  • South Korea
  • Taiwan

By End Users/Applications Analysis:

Consumer Electronics

Automotive

Other

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No. of pages: 100

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The product range of the PDP Flat Panel Display Sales Market is examined on the basis of their production chain, PDP Flat Panel Display Sales pricing of products, and the profit generated by them. Various regional markets for PDP Flat Panel Display Sales are analysed in this report and the production volume and efficacy of the PDP Flat Panel Display Sales Market across the world is also discussed.

Walter Investment Management Corp. Announces First Quarter 2017 Highlights And Financial Results

FORT WASHINGTON, Pa., May 10, 2017 /PRNewswire/ — Walter Investment Management Corp. (NYSE: WAC) today announced GAAP net income for the quarter ended March 31, 2017 of $1.9 million, or $0.05 per share, as compared to a GAAP net loss of $172.7 million, or $4.85 per share for the quarter ended March 31, 2016. The 2017 first quarter net income included a $42.0 million after tax, or $1.14 per share, gain on the sale of the principal insurance agency and substantially all of the insurance agency business, which was completed on February 1, 2017, and a non-cash fair value charge of $6.7 million after tax, or $0.18 per share, due to changes in valuation inputs and other assumptions. Adjusted Loss was $25.4 million after tax, or $0.70 per share, and Adjusted EBITDA („AEBITDA”) was $43.3 million in the current quarter as compared to Adjusted Loss of $24.5 million after tax, or $0.69 per share and AEBITDA of $87.1 million in the prior year quarter.

„We are focused on building out our leadership and management team, our capital efficiency, including our debt restructuring and core and legacy initiatives, and improving our process efficiency and operational effectiveness,” said Anthony Renzi, Chief Executive Officer and President of Walter. „We continue to be confident that the changes underway will put Walter in the best position to succeed but it will take time to implement and realize the benefits of these changes.”

The Company recently changed its principal executive offices from Tampa, Florida to Fort Washington, Pennsylvania, which change was due to, among other things, the Chief Executive Officer and President and certain other senior executive officers of the Parent Company being based in Fort Washington.

First Quarter 2017 Financial and Operating Overview

Total revenue for the first quarter of 2017 was $245.3 million, an increase of $178.5 million as compared to the prior year quarter, primarily due to an increase of $218.9 million in net servicing revenue and fees partially offset by a $20.5 million decrease in fair value gains on reverse loans and related HMBS obligations. The increase in net servicing revenue and fees primarily resulted from a $273.1 million improvement in fair value losses on mortgage servicing rights driven by changes in valuation inputs or other assumptions. Offsetting this increase was a $44.4 million decline in servicing fees primarily due to the planned shift of the third-party servicing portfolio from servicing to subservicing combined with runoff of the portfolio.

Total expenses for the first quarter of 2017 were $313.7 million, a decrease of $29.7 million as compared to the prior year quarter, driven primarily by headcount related expenses, including $12.9 million decrease in compensation and benefits resulting primarily from a lower average headcount driven by site closures and various organizational changes, as well as the decision to exit the reverse mortgage originations business, $4.6 million decrease in bonus accruals, $3.5 million decrease related to a change in the commissions structure, and $3.4 million reduction in overtime driven by cost reduction measures.

In addition, pre-tax income for the quarter ended March 31, 2017, included a $67.7 million gain on the sale of the principal insurance agency and substantially all of the insurance agency business, which was completed on February 1, 2017.

Results for the Company’s segments are presented below.

Servicing

Ditech serviced 1.9 million accounts, with a UPB of $220.2 billion as of March 31, 2017. During the quarter ended March 31, 2017, the Company experienced a net disappearance rate of 13.56%, an increase of 0.58% as compared to the prior year quarter.

The Servicing segment reported $33.2 million of pre-tax income for the first quarter of 2017 as compared to a pre-tax loss of $256.3 million in the prior year quarter. During the first quarter of 2017, the segment generated revenue of $147.8 million, a $211.0 million increase as compared to the prior year quarter, primarily due to an increase of $218.1 million in net servicing revenue and fees. The increase in net servicing revenue and fees primarily resulted from a $273.1 million improvement in fair value losses on mortgage servicing rights driven by changes in valuation inputs or other assumptions. Partially offsetting this increase was a $44.5 million decline in servicing fees primarily due to the planned shift of the third-party servicing portfolio from servicing to subservicing combined with runoff of the portfolio.

Total expenses in the Servicing segment for the first quarter of 2017 were $180.9 million, a decrease of $12.2 million as compared to the prior year quarter. This decrease was driven by $11.4 million of lower compensation and benefits resulting primarily from a lower average headcount driven by site closures and organizational changes, $5.4 million in lower compensating interest due to a shift from servicing to subservicing, $3.5 million decrease related to a change in the commissions structure, $2.4 million in lower postage and printing costs driven by fewer mailings made during the first quarter of 2017, $1.7 million in lower contractor costs related to the servicing platform conversion that occurred in the second quarter of 2016 and $1.2 million reduction in overtime driven by cost reduction measures. These decreases were partially offset by $8.3 million in higher charges associated with foreclosure and bankruptcy practices, $4.3 million in additional costs associated with the use of MSP and outsourcing initiatives, $3.0 million in higher legal expenses, $2.1 million in professional fees related to the sale of substantially all of the insurance agency business in the first quarter of 2017, and $1.3 million in higher advance loss provision. Current quarter expenses included $13.5 million of interest expense and $8.9 million of depreciation and amortization.

The Servicing segment reported an Adjusted Loss of $19.6 million and AEBITDA of $30.7 million for the first quarter of 2017, a decline of $8.7 million and $43.9 million, respectively, as compared to the prior year quarter. The declines in these metrics were due to lower adjusted revenues, partially offset by decreased expenses, as described above.

Originations

Ditech generated total pull-through adjusted locked volume of $4.9 billion for the first quarter of 2017, an increase of $0.3 billion as compared to the prior year quarter, driven by increases in the correspondent and wholesale lending channels. Funded loans in the current quarter totaled $5.0 billion, which was consistent with the prior year quarter. The combined direct margin for the current quarter was 51 bps, consisting of a weighted average of 148 bps direct margin in the consumer lending channel and 32 bps direct margin in the correspondent channel. The decrease in combined direct margin of 29 bps from the prior year quarter was primarily due to lower gain on sale of loans and fee income margins, partially offset by lower direct expense margins. Gain on sale margins decreased due to the shift in mix to the lower margin correspondent and wholesale channels, combined with lower margins in the consumer channel due to a lower portion of HARP volume. Fee income margins declined during the three months ended March 31, 2017 primarily in the consumer channel as loans continued to fund during the quarter under a program in place through December 31, 2016 in which certain fees were waived. Direct expense margins declined primarily due to lower intersegment expense as a result of lower portion of retention volume subject to the lead fee and lower servicing rights values. The Originations business delivered a recapture rate of 26% for the current quarter.

The Originations segment reported $10.8 million of pre-tax income for the first quarter of 2017, a decrease of $5.6 million from the prior year quarter. During the first quarter of 2017, this segment generated revenue of $80.8 million, a decrease of $19.5 million from the prior year quarter. Net gains on sales of loans decreased $14.3 million as compared to the prior year quarter, primarily due to lower gain on sale margins in the consumer channel combined with a shift in mix from the higher margin consumer channel to the lower margin correspondent and wholesale channels, which was partially offset by an increase in total locked volume during the quarter.

Total expenses for the Originations segment for the first quarter of 2017 were $70.0 million, a decrease of $13.9 million compared to the prior year quarter, driven by a $7.1 million decrease in intersegment retention expense, a $4.1 million decrease in general and administrative expenses primarily due to lower advertising costs and a $2.4 million decrease in salaries and benefits expenses. Current quarter expenses included $9.4 million of interest expense and $1.0 million of depreciation and amortization.

The Originations segment reported Adjusted Earnings of $12.2 million and AEBITDA of $12.4 million for the first quarter of 2017, a decrease of $5.5 million and $11.4 million, respectively, as compared to the prior year quarter, due primarily to lower revenues offset by a decrease in expenses, as described above.

Reverse Mortgage

The Reverse Mortgage segment serviced 116,452 accounts, with a UPB of $20.5 billion at March 31, 2017. During the current quarter, the business securitized $140.8 million of HECM loans.

The Reverse Mortgage segment reported $5.3 million of pre-tax loss for the first quarter of 2017 as compared to pre-tax income of $5.0 million in the prior year quarter. During the first quarter of 2017, this segment generated revenue of $22.5 million, a decline of $21.6 million from the prior year quarter, primarily driven by a decrease of $21.0 million in net non-cash fair value adjustments due primarily to higher LIBOR rates in 2017 as compared to 2016. Cash generated by the origination, purchase and securitization of HECMs decreased $3.0 million during the three months ended March 31, 2017 as compared to the same period of 2016 primarily as a result of overall lower origination volumes due to the exit from the reverse mortgage originations business, partially offset by a shift in mix from lower margin new originations to higher margin tails. The decrease in cash generated was offset by a $3.5 million increase in net interest margin. Current quarter revenues also included $7.5 million in net servicing revenue and fees and $0.3 million of other revenues.

Total expenses for the Reverse Mortgage segment for the first quarter of 2017 were $27.8 million, a decrease of $10.3 million from the prior year quarter primarily due to $6.3 million decrease in general and administrative expenses driven by $1.9 million decrease in curtailment-related accruals, $1.6 million decrease in loss accruals, $1.1 million lower advertising costs, $0.5 million decrease in contractor fees and $4.9 million decrease in salaries and benefits and loan origination expenses due to the exit from the reverse mortgage originations business. Current quarter expenses included $2.4 million of interest expense and $1.1 million of depreciation and amortization.

The Reverse Mortgage segment reported an Adjusted Loss of $0.9 million and AEBITDA of $0.5 million for the first quarter of 2017, an improvement of $10.4 million and $10.1 million, respectively, as compared to the prior year quarter, primarily due to the decrease in general and administrative expenses and in salaries and benefits, as described above.

Other Non-Reportable Segment

The Other Non-Reportable segment reported $34.3 million of pre-tax loss for the first quarter of 2017, an improvement of $9.7 million as compared to the prior year quarter. Other net fair value gains were $6.5 million for the three months ended March 31, 2017 as compared to other net fair value losses of $2.2 million the same period of 2016 primarily related to increases in the forward LIBOR rate impacting the value of the assets and liabilities of the Non-Residual Trusts.

The Other non-reportable segment had an Adjusted Loss of $32.6 million and AEBITDA of ($0.3) million for the first quarter of 2017 as compared to an Adjusted Loss of $34.9 million and AEBITDA of ($1.7) million in the first quarter of 2016.

Debt Restructuring Initiative

In the fourth quarter of 2016, the Company announced it had engaged Weil, Gotshal & Manges LLP and Houlihan Lokey to assist in reviewing a number of potential actions that may be taken to reduce the Company’s leverage. These efforts have continued in 2017.

About Walter Investment Management Corp.

Walter Investment Management Corp. is an independent servicer and originator of mortgage loans and servicer of reverse mortgage loans. Based in Fort Washington, Pennsylvania, the Company has approximately 4,500 employees and services a diverse loan portfolio. For more information about Walter Investment Management Corp., please visit the Company’s website at www.walterinvestment.com. The information on the Company’s website is not a part of this release.

This press release and the accompanying reconciliations include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP, please see the reconciliations as well as „Non-GAAP Financial Measures” at the end of this press release.

The terms „Walter Investment”, „Walter”, the „Company”, „we”, „us”, and „our” as used throughout this release refer to Walter Investment Management Corp. and its consolidated subsidiaries. We use certain acronyms and terms throughout this release that are defined in the Glossary of Terms in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2016, and in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017, and in our other filings with the SEC.

Disclaimer and Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release constitute „forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Statements that are not historical fact are forward-looking statements. Certain of these forward-looking statements can be identified by the use of words such as „believes,” „anticipates,” „expects,” „intends,” „plans,” „projects,” „estimates,” „assumes,” „may,” „should,” „will,” „seeks,” „targets,” or other similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors, and our actual results, performance or achievements could differ materially from future results, performance or achievements expressed in these forward-looking statements. These forward-looking statements are based on our current beliefs, intentions and expectations. These statements are not guarantees or indicative of future performance, nor should any conclusions be drawn or assumptions be made as to any potential outcome of any strategic review we conduct. Important assumptions and other important factors that could cause actual results to differ materially from those forward-looking statements include, but are not limited to, those factors, risks and uncertainties described below and in more detail under the caption „Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2016, our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017, and in our other filings with the SEC.

In particular (but not by way of limitation), the following important factors, risks and uncertainties could affect our future results, performance and achievements and could cause actual results, performance and achievements to differ materially from those expressed in the forward-looking statements:

  • our ability to operate our business in compliance with existing and future laws, rules, regulations and contractual commitments affecting our business, including those relating to the origination and servicing of residential loans, default servicing and foreclosure practices, the management of third-party assets and the insurance industry, and changes to, and/or more stringent enforcement of, such laws, rules, regulations and contracts;
  • scrutiny of our industry by, and potential enforcement actions by, federal and state authorities;
  • the substantial resources (including senior management time and attention) we devote to, and the significant compliance costs we incur in connection with, regulatory compliance and regulatory examinations and inquiries, and any consumer redress, fines, penalties or similar payments we make in connection with resolving such matters;
  • uncertainties relating to interest curtailment obligations and any related financial and litigation exposure (including exposure relating to false claims);
  • potential costs and uncertainties, including the effect on future revenues, associated with and arising from litigation, regulatory investigations and other legal proceedings, and uncertainties relating to the reaction of our key counterparties to the announcement of any such matters;
  • our dependence on U.S. GSEs and agencies (especially Fannie Mae, Freddie Mac and Ginnie Mae) and their residential loan programs and our ability to maintain relationships with, and remain qualified to participate in programs sponsored by, such entities, our ability to satisfy various existing or future GSE, agency and other capital, net worth, liquidity and other financial requirements applicable to our business, and our ability to remain qualified as a GSE and agency approved seller, servicer or component servicer, including the ability to continue to comply with the GSEs’ and agencies’ respective residential loan selling and servicing guides;
  • uncertainties relating to the status and future role of GSEs and agencies, and the effects of any changes to the origination and/or servicing requirements of the GSEs, agencies or various regulatory authorities or the servicing compensation structure for mortgage servicers pursuant to programs of GSEs, agencies or various regulatory authorities;
  • our ability to maintain our loan servicing, loan origination or collection agency licenses, or any other licenses necessary to operate our businesses, or changes to, or our ability to comply with, our licensing requirements;
  • our ability to comply with the terms of the stipulated order resolving allegations arising from an FTC and CFPB investigation of Ditech Financial and a CFPB investigation of RMS;
  • operational risks inherent in the mortgage servicing and mortgage originations businesses, including our ability to comply with the various contracts to which we are a party, and reputational risks;
  • risks related to the significant amount of senior management turnover and employee reductions recently experienced by the Company;
  • risks related to our substantial levels of indebtedness, including our ability to comply with covenants contained in our debt agreements or obtain any necessary waivers or amendments, generate sufficient cash to service such indebtedness and refinance such indebtedness on favorable terms, or at all, as well as our ability to incur substantially more debt;
  • our ability to renew advance financing facilities or warehouse facilities on favorable terms, or at all, and maintain adequate borrowing capacity under such facilities;
  • our ability to maintain or grow our residential loan servicing or subservicing business and our mortgage loan originations business;
  • our ability to achieve our strategic initiatives, particularly our ability to: increase the mix of our fee-for-service business, including by entering into new subservicing arrangements; improve servicing performance; successfully develop our originations capabilities in the consumer and wholesale lending channels; reduce our debt; and execute and realize planned operational improvements and efficiencies, including those relating to our non-core assets;
  • the success of our business strategy in returning us to sustained profitability;
  • changes in prepayment rates and delinquency rates on the loans we service or subservice;
  • the ability of Fannie Mae, Freddie Mac and Ginnie Mae, as well as our other clients and credit owners, to transfer or otherwise terminate our servicing or subservicing rights, with or without cause;
  • a downgrade of, or other adverse change relating to, our servicer ratings or credit ratings;
  • our ability to collect reimbursements for servicing advances and earn and timely receive incentive payments and ancillary fees on our servicing portfolio;
  • our ability to collect indemnification payments and enforce repurchase obligations relating to mortgage loans we purchase from our correspondent clients and our ability to collect in a timely manner indemnification payments relating to servicing rights we purchase from prior servicers;
  • local, regional, national and global economic trends and developments in general, and local, regional and national real estate and residential mortgage market trends in particular, including the volume and pricing of home sales and uncertainty regarding the levels of mortgage originations and prepayments;
  • uncertainty as to the volume of originations activity we will benefit from prior to, and following, the expiration of HARP, which is scheduled to occur on September 30, 2017, including uncertainty as to the number of „in-the-money” accounts we may be able to refinance and uncertainty as to what type of product or government program will be introduced, if any, to replace HARP;
  • risks associated with the reverse mortgage business, including changes to reverse mortgage programs operated by FHA, HUD or Ginnie Mae, our ability to accurately estimate interest curtailment liabilities, our ability to fund HECM repurchase obligations, our ability to fund principal additions on our HECM loans, and our ability to securitize our HECM loans and tails;
  • our ability to realize all anticipated benefits of past, pending or potential future acquisitions or joint venture investments;
  • the effects of competition on our existing and potential future business, including the impact of competitors with greater financial resources and broader scopes of operation;
  • changes in interest rates and the effectiveness of any hedge we may employ against such changes;
  • risks and potential costs associated with technology and cybersecurity, including: the risks of technology failures and of cyber-attacks against us or our vendors; our ability to adequately respond to actual or alleged cyber-attacks; and our ability to implement adequate internal security measures and protect confidential borrower information;
  • risks and potential costs associated with the implementation of new or more current technology, such as MSP, the use of vendors (including offshore vendors) or the transfer of our servers or other infrastructure to new data center facilities;
  • our ability to comply with evolving and complex accounting rules, many of which involve significant judgment and assumptions;
  • risks related to our deferred tax asset, including the risk of an „ownership change” under Section 382 of the Code, changes to existing tax rates or any additional valuation allowance;
  • uncertainties regarding impairment charges relating to our goodwill or other intangible assets;
  • risks associated with a material weakness in our internal controls over financial reporting, including the timing and effectiveness of our remediation plan;
  • our ability to maintain effective internal controls over financial reporting and disclosure controls and procedures;
  • our ability to manage potential conflicts of interest relating to our relationship with WCO; and
  • risks related to our relationship with Walter Energy and uncertainties arising from or relating to its bankruptcy filings and liquidation proceedings, including potential liability for any taxes, interest and/or penalties owed by the Walter Energy consolidated group for the full or partial tax years during which certain of the Company’s former subsidiaries were a part of such consolidated group and certain other tax risks allocated to us in connection with our spin-off from Walter Energy.

All of the above factors, risks and uncertainties are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond our control. New factors, risks and uncertainties emerge from time to time, and it is not possible for our management to predict all such factors, risks and uncertainties.

Although we believe that the assumptions underlying the forward-looking statements (including those relating to our outlook) contained herein are reasonable, any of the assumptions could be inaccurate, and therefore any of these statements included herein may prove to be inaccurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved. We make no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made, except as otherwise required under the federal securities laws. If we were in any particular instance to update or correct a forward-looking statement, investors and others should not conclude that we would make additional updates or corrections thereafter except as otherwise required under the federal securities laws.

In addition, this release may contain statements of opinion or belief concerning market conditions and similar matters. In certain instances, those opinions and beliefs could be based upon general observations by members of our management, anecdotal evidence and/or our experience in the conduct of our business, without specific investigation or statistical analyses. Therefore, while such statements reflect our view of the industries and markets in which we are involved, they should not be viewed as reflecting verifiable views and such views may not be shared by all who are involved in those industries or markets.

Walter Investment Management Corp. and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

(in thousands, except per share data)

For the Three Months
Ended March 31,

2017

2016

REVENUES

Net servicing revenue and fees

$

113,187

$

(105,762)

Net gains on sales of loans

74,356

84,477

Net fair value gains on reverse loans and related HMBS obligations

14,702

35,208

Interest income on loans

10,980

12,171

Insurance revenue

4,940

10,367

Other revenues

27,120

30,310

Total revenues

245,285

66,771

EXPENSES

General and administrative

131,627

129,606

Salaries and benefits

107,957

132,639

Interest expense

60,410

64,248

Depreciation and amortization

10,932

14,423

Other expenses, net

2,783

2,506

Total expenses

313,709

343,422

OTHER GAINS (LOSSES)

Gain on sale of business

67,727

Other net fair value gains (losses)

5,083

(2,144)

Gain on extinguishment

928

Other

(1,024)

Total other gains (losses)

72,810

(2,240)

Income (loss) before income taxes

4,386

(278,891)

Income tax expense (benefit)

2,498

(106,189)

Net income (loss)

$

1,888

$

(172,702)

Comprehensive income (loss)

$

1,871

$

(172,677)

Net income (loss)

$

1,888

$

(172,702)

Basic earnings (loss) per common and common equivalent share

$

0.05

$

(4.85)

Diluted earnings (loss) per common and common equivalent share

$

0.05

$

(4.85)

Weighted-average common and common equivalent shares outstanding — basic

36,412

35,579

Weighted-average common and common equivalent shares outstanding — diluted

36,812

35,579

Walter Investment Management Corp. and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share and per share data)

March 31, 
2017

December 31,
2016

(unaudited)

ASSETS

Cash and cash equivalents

$

237,174

$

224,598

Restricted cash and cash equivalents

174,324

204,463

Residential loans at amortized cost, net (includes $5,633 and $5,167 in allowance for loan
   losses at March 31, 2017 and December 31, 2016, respectively)

678,482

665,209

Residential loans at fair value

12,240,962

12,416,542

Receivables, net (includes $13,848 and $15,033 at fair value at March 31, 2017 and
   December 31, 2016, respectively)

224,282

267,962

Servicer and protective advances, net (includes $150,305 and $146,781 in allowance for
   uncollectible advances at March 31, 2017 and December 31, 2016, respectively)

1,005,157

1,195,380

Servicing rights, net (includes $930,333 and $949,593 at fair value at March 31, 2017 and
   December 31, 2016, respectively)

1,006,428

1,029,719

Goodwill

47,747

47,747

Intangible assets, net

10,445

11,347

Premises and equipment, net

73,999

82,628

Deferred tax assets, net

299,629

299,926

Assets held for sale

71,085

Other assets (includes $47,173 and $87,937 at fair value at March 31, 2017 and December
   31, 2016, respectively)

201,346

242,290

Total assets

$

16,199,975

$

16,758,896

LIABILITIES AND STOCKHOLDERS’ EQUITY

Payables and accrued liabilities (includes $14,271 and $11,804 at fair value at March 31,
   2017 and December 31, 2016, respectively)

$

699,741

$

759,011

Servicer payables

138,059

146,332

Servicing advance liabilities

662,206

783,229

Warehouse borrowings

1,094,677

1,203,355

Servicing rights related liabilities at fair value

3,537

1,902

Corporate debt

2,112,328

2,129,000

Mortgage-backed debt (includes $498,768 and $514,025 at fair value at March 31, 2017
   and December 31, 2016, respectively)

916,952

943,956

HMBS related obligations at fair value

10,289,505

10,509,449

Liabilities held for sale

2,402

Total liabilities

15,917,005

16,478,636

Commitments and contingencies

Stockholders’ equity:

Preferred stock, $0.01 par value per share:

Authorized – 10,000,000 shares

Issued and outstanding – 0 shares at March 31, 2017 and December 31, 2016

Common stock, $0.01 par value per share:

Authorized – 90,000,000 shares

Issued and outstanding – 36,464,218 and 36,391,129 shares at March 31, 2017
   and December 31, 2016, respectively

365

364

Additional paid-in capital

596,905

596,067

Accumulated deficit

(315,216)

(317,104)

Accumulated other comprehensive income

916

933

Total stockholders’ equity

282,970

280,260

Total liabilities and stockholders’ equity

$

16,199,975

$

16,758,896

Non-GAAP Financial Measures

The Company is managed through three reportable segments: Servicing, Originations and Reverse Mortgage. We evaluate the performance of our business segments through the following measures: income (loss) before income taxes, Adjusted Earnings (Loss), and Adjusted EBITDA. Management considers Adjusted Earnings (Loss) and Adjusted EBITDA, both non-GAAP financial measures, to be important in the evaluation of our business segments and of the Company as a whole, as well as for allocating capital resources to our segments. Adjusted Earnings (Loss) and Adjusted EBITDA are supplemental metrics utilized by management to assess the underlying key drivers and operational performance of the continuing operations of the business. In addition, analysts, investors, and creditors may use these measures when analyzing our operating performance. Adjusted Earnings (Loss) and Adjusted EBITDA are not presentations made in accordance with GAAP and our use of these measures and terms may vary from other companies in our industry.

Adjusted Earnings (Loss) is defined as income (loss) before income taxes, plus changes in fair value due to changes in valuation inputs and other assumptions; goodwill and intangible assets impairment, if any; a portion of the provision for curtailment expense, net of expected third-party recoveries, if applicable; share-based compensation expense or benefit; non-cash interest expense; exit costs; estimated settlements and costs for certain legal and regulatory matters; fair value to cash adjustments for reverse loans; and select other cash and non-cash adjustments, primarily including severance; gain or loss on extinguishment of debt; the net impact of the Non-Residual Trusts; transaction and integration costs; and certain non-recurring costs, as applicable. Adjusted Earnings (Loss) excludes unrealized changes in fair value of MSR that are based on projections of expected future cash flows and prepayments. Adjusted Earnings (Loss) includes both cash and non-cash gains from mortgage loan origination activities. Non-cash gains are net of non-cash charges or reserves provided. Adjusted Earnings (Loss) includes cash generated from reverse mortgage origination activities for the period in which we were originating reverse mortgages. Adjusted Earnings (Loss) may from time to time also include other adjustments, as applicable based upon facts and circumstances, consistent with the intent of providing investors with a supplemental means of evaluating our operating performance.

We revised our method of calculating Adjusted Earnings (Loss) beginning with the Annual Report on Form 10-K for the fiscal year ended December 31, 2016 to eliminate adjustments for the step-up depreciation and amortization, which represents depreciation and amortization costs related to the increased basis in assets (including servicing rights and subservicing contracts) acquired within business combination transactions. Prior period amounts have been adjusted to reflect this revision.

Adjusted EBITDA eliminates the effects of financing, income taxes and depreciation and amortization. Adjusted EBITDA is defined as income (loss) before income taxes, plus amortization of servicing rights and other fair value adjustments; interest expense on corporate debt; depreciation and amortization; goodwill and intangible assets impairment, if any; a portion of the provision for curtailment expense, net of expected third-party recoveries, if applicable; share-based compensation expense or benefit; exit costs; estimated settlements and costs for certain legal and regulatory matters; fair value to cash adjustments for reverse loans; select other cash and non-cash adjustments, primarily the net provision for the repurchase of loans sold; non-cash interest income; severance; gain or loss on extinguishment of debt; interest income on unrestricted cash and cash equivalents; the net impact of the Non-Residual Trusts; the provision for loan losses; Residual Trust cash flows; transaction and integration costs; servicing fee economics; and certain non-recurring costs, as applicable. Adjusted EBITDA includes both cash and non-cash gains from mortgage loan origination activities. Adjusted EBITDA excludes the impact of fair value option accounting on certain assets and liabilities and includes cash generated from reverse mortgage origination activities for the period in which the Company was originating reverse mortgages. Adjusted EBITDA may also include other adjustments, as applicable based upon facts and circumstances, consistent with the intent of providing investors a supplemental means of evaluating our operating performance.

Adjusted Earnings (Loss) and Adjusted EBITDA should not be considered as alternatives to (i) net income (loss) or any other performance measures determined in accordance with GAAP or (ii) operating cash flows determined in accordance with GAAP. Adjusted Earnings (Loss) and Adjusted EBITDA have important limitations as analytical tools, and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Some of the limitations of these metrics are:

  • Adjusted Earnings (Loss) and Adjusted EBITDA do not reflect cash expenditures for long-term assets and other items that have been and will be incurred, future requirements for capital expenditures or contractual commitments;
  • Adjusted Earnings (Loss) and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs;
  • Adjusted Earnings (Loss) and Adjusted EBITDA do not reflect certain tax payments that represent reductions in cash available to us;
  • Adjusted Earnings (Loss) and Adjusted EBITDA do not reflect any cash requirements for the assets being depreciated and amortized that may have to be replaced in the future;
  • Adjusted Earnings (Loss) and Adjusted EBITDA do not reflect non-cash compensation that is and will remain a key element of our overall long-term incentive compensation package;
  • Adjusted Earnings (Loss) and Adjusted EBITDA do not reflect the change in fair value due to changes in valuation inputs and other assumptions;
  • Adjusted EBITDA does not reflect the change in fair value resulting from the realization of expected cash flows; and
  • Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on our servicing rights related liabilities and corporate debt, although it does reflect interest expense associated with our servicing advance liabilities, master repurchase agreements, mortgage-backed debt, and HMBS related obligations.

Because of these limitations, Adjusted Earnings (Loss) and Adjusted EBITDA should not be considered as measures of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted Earnings (Loss) and Adjusted EBITDA only as supplements. Users of our financial statements are cautioned not to place undue reliance on Adjusted Earnings (Loss) and Adjusted EBITDA.

Walter Investment Management Corp.

Segment Results of Operations and Non-GAAP Financial Measures

For the Three Months Ended March 31, 2017

(in thousands)

Servicing

Originations

Reverse
Mortgage

Other

Eliminations

Total
Consolidated

REVENUES

Net servicing revenue and fees

$

108,541

$

$

7,508

$

$

(2,862)

$

113,187

Net gains (losses) on sales of loans

(320)

73,704

972

74,356

Net fair value gains on reverse loans and related
   HMBS obligations

14,702

14,702

Interest income on loans

10,968

12

10,980

Insurance revenue

4,940

4,940

Other revenues

23,651

7,092

283

510

(4,416)

27,120

Total revenues

147,780

80,808

22,493

510

(6,306)

245,285

EXPENSES

Interest expense

13,533

9,400

2,391

35,086

60,410

Depreciation and amortization

8,911

967

1,054

10,932

Other expenses, net

158,467

59,606

24,347

6,253

(6,306)

242,367

Total expenses

180,911

69,973

27,792

41,339

(6,306)

313,709

OTHER GAINS (LOSSES)

Gain on sale of business

67,727

67,727

Other net fair value gains (losses)

(1,429)

6,512

5,083

Total other gains

66,298

6,512

72,810

Income (loss) before income taxes

33,167

10,835

(5,299)

(34,317)

4,386

Adjustments to income (loss) before income taxes

Gain on sale of business

(67,727)

(67,727)

Changes in fair value due to changes in valuation
   inputs and other assumptions

7,397

7,397

Non-cash interest expense

1,513

2,671

4,184

Fair value to cash adjustment for reverse loans

3,339

3,339

Exit costs

823

433

678

(63)

1,871

Share-based compensation expense (benefit)

142

(182)

134

771

865

Other

5,107

1,071

205

(1,694)

4,689

Total adjustments

(52,745)

1,322

4,356

1,685

(45,382)

Adjusted Earnings (Loss)

(19,578)

12,157

(943)

(32,632)

(40,996)

EBITDA Adjustments

Amortization of servicing rights and other fair value
   adjustments

40,612

399

41,011

Interest expense on debt

32,414

32,414

Depreciation and amortization

8,911

967

1,054

10,932

Other

757

(733)

28

(110)

(58)

Total adjustments

50,280

234

1,481

32,304

84,299

Adjusted EBITDA

$

30,702

$

12,391

$

538

$

(328)

$

$

43,303

Walter Investment Management Corp.

Segment Results of Operations and Non-GAAP Financial Measures

For the Three Months Ended March 31, 2016

(in thousands)

Servicing

Originations

Reverse
Mortgage

Other

Eliminations

Total
Consolidated

REVENUES

Net servicing revenue and fees

$

(109,520)

$

$

6,909

$

$

(3,151)

$

(105,762)

Net gains (losses) on sales of loans

(4,536)

87,982

1,031

84,477

Net fair value gains on reverse loans and related
   HMBS obligations

35,208

35,208

Interest income on loans

12,158

13

12,171

Insurance revenue

10,367

10,367

Other revenues

28,276

12,282

1,978

30

(12,256)

30,310

Total revenues

(63,255)

100,277

44,095

30

(14,376)

66,771

EXPENSES

Interest expense

18,562

8,275

1,515

35,896

64,248

Depreciation and amortization

10,781

2,345

1,288

9

14,423

Other expenses, net

163,814

73,256

35,241

6,816

(14,376)

264,751

Total expenses

193,157

83,876

38,044

42,721

(14,376)

343,422

OTHER GAINS (LOSSES)

Other net fair value gains (losses)

91

(2,235)

(2,144)

Gain on extinguishment

928

928

Other

(1,024)

(1,024)

Total other gains (losses)

91

(1,024)

(1,307)

(2,240)

Income (loss) before income taxes

(256,321)

16,401

5,027

(43,998)

(278,891)

Adjustments to income (loss) before income taxes

Changes in fair value due to changes in valuation
   inputs and other assumptions

240,329

240,329

Non-cash interest expense

(29)

2,867

2,838

Fair value to cash adjustment for reverse loans

(17,709)

(17,709)

Exit costs

1,881

1,796

227

3,904

Share-based compensation expense (benefit)

781

(587)

313

352

859

Other

2,504

1,048

5,603

9,155

Total adjustments

245,466

1,209

(16,348)

9,049

239,376

Adjusted Earnings (Loss) (1)

(10,855)

17,610

(11,321)

(34,949)

(39,515)

EBITDA Adjustments

Amortization of servicing rights and other fair value
   adjustments

72,270

460

72,730

Interest expense on debt

2,735

33,030

35,765

Depreciation and amortization

10,781

2,345

1,288

9

14,423

Other

(335)

3,801

33

178

3,677

Total adjustments

85,451

6,146

1,781

33,217

126,595

Adjusted EBITDA

$

74,596

$

23,756

$

(9,540)

$

(1,732)

$

$

87,080

(1)

We revised our method of calculating Adjusted Earnings (Loss) beginning with the Annual Report on Form 10-K for the fiscal year ended December 31, 2016 to eliminate adjustments for step-up depreciation and amortization, which represents depreciation and amortization costs related to the increased basis in assets (including servicing rights and subservicing contracts) acquired within business combination transactions. Prior period amounts have been adjusted to reflect this revision.

Reconciliation of GAAP Net Income (Loss) to

Non-GAAP Adjusted Loss

 (in millions, except per share amounts)

For the Three Months Ended
March 31,

2017

2016

Net income (loss)

$

1.9

$

(172.7)

Adjustment for income tax expense (benefit)

2.5

(106.2)

Income (loss) before income taxes

4.4

(278.9)

Adjustments to income (loss) before income taxes

Gain on sale of business

(67.7)

Changes in fair value due to changes in valuation inputs and other assumptions (1)

7.4

240.3

Non-cash interest expense

4.2

2.8

Fair value to cash adjustment for reverse loans (2)

3.3

(17.7)

Exit costs (3)

1.9

3.9

Share-based compensation expense

0.9

0.9

Other (4)

4.6

9.2

Sub-total

(45.4)

239.4

Adjusted Loss

(41.0)

(39.5)

Tax benefit at estimated effective tax rate of 38%

(15.6)

(15.0)

Adjusted Loss after tax

$

(25.4)

$

(24.5)

Adjusted Loss after tax per common and common equivalent share

$

(0.70)

$

(0.69)

Weighted-average common and common equivalent shares outstanding

36.4

35.6

__________

(1)

Consists of the change in fair value due to changes in valuation inputs and other assumptions relating to servicing rights and charged-off loans.

(2)

Represents the non-cash fair value adjustment to arrive at cash generated from reverse mortgage origination activities.

(3)

Exit costs include expenses related to the closing of offices and the termination and replacement of certain employees as well as other expenses to institute efficiencies. Exit costs incurred in the three months ended March 31, 2017 include those relating to our exit from the consumer retail channel of the Originations segment, our exit from the reverse mortgage originations business, and actions initiated in 2015, 2016, and 2017 in connection with our continued efforts to enhance efficiencies and streamline processes in the organization.

(4)

Includes severance, costs associated with transforming the business, gain on extinguishment of debt, the net impact of the Non-Residual Trusts, transaction and integration costs, and certain non-recurring costs.

Reconciliation of GAAP Net Income (Loss) to

Non-GAAP AEBITDA

(in millions)

For the Three Months Ended
March 31,

2017

2016

Net income (loss)

$

1.9

$

(172.7)

Adjustment for income tax expense (benefit)

2.5

(106.2)

Income (loss) before income taxes

4.4

(278.9)

EBITDA Adjustments

Gain on sale of business

(67.7)

Amortization of servicing rights and other fair value adjustments (1)

48.4

313.1

Interest expense

36.6

38.6

Depreciation and amortization

10.9

14.4

Fair value to cash adjustment for reverse loans (2)

3.3

(17.7)

Exit costs (3)

1.9

3.9

Share-based compensation expense

0.9

0.9

Other (4)

4.6

12.8

Sub-total

38.9

366.0

Adjusted EBITDA

$

43.3

$

87.1

__________

(1)

Consists of the change in fair value due to changes in valuation inputs and other assumptions relating to servicing rights and charged-off loans as well as the amortization of servicing rights and the realization of expected cash flows relating to servicing rights carried at fair value.

(2)

Represents the non-cash fair value adjustment to arrive at cash generated from reverse mortgage origination activities.

(3)

Exit costs include expenses related to the closing of offices and the termination and replacement of certain employees as well as other expenses to institute efficiencies. Exit costs incurred in the three months ended March 31, 2017 include those relating to our exit from the consumer retail channel of the Originations segment, our exit from the reverse mortgage originations business, and actions initiated in 2015, 2016, and 2017 in connection with our continued efforts to enhance efficiencies and streamline processes in the organization.

(4)

Includes the net provision for the repurchase of loans sold, non-cash interest income, severance, interest income on unrestricted cash and cash equivalents, costs associated with transforming the business, gain on extinguishment of debt, the net impact of the Non-Residual Trusts, the provision for loan losses, Residual Trust cash flows, transaction and integration costs, servicing fee economics, and certain non-recurring costs.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/walter-investment-management-corp-announces-first-quarter-2017-highlights-and-financial-results-300455069.html

SOURCE Walter Investment Management Corp.

Related Links

http://www.walterind.com