Business Wire | Nov 1, 2021 08:16PM EDT

ADTRAN, Inc. Reports Earnings for the Third Quarter of 2021 and Declares Quarterly Cash Dividend

Nov. 02, 2021

HUNTSVILLE, Ala.--(BUSINESS WIRE)--Nov. 02, 2021--ADTRAN, Inc., (NASDAQ:ADTN) ("ADTRAN" or the "Company"), today announced financial results for the third quarter of 2021. For the quarter, revenue was $138.1 million. Earnings for the third quarter of 2021 were a net loss of $10.4 million and earnings per share was a loss of $0.21. Non-GAAP net loss was $0.8 million and non-GAAP earnings per share was a loss of $0.02. Non-GAAP net income (loss) and non-GAAP earnings (loss) per share exclude stock-based compensation expense, acquisition related expenses, amortizations and adjustments, restructuring expenses, amortization of pension actuarial losses, asset impairments, deferred compensation related adjustments, change in valuation allowance related to our deferred tax assets, and the tax effect of these adjustments to net income (loss). The reconciliations between GAAP net income (loss) and earnings (loss) per share to non-GAAP net income (loss) and non-GAAP earnings (loss) per share are set forth in the table provided below.

ADTRAN Chairman and Chief Executive Officer Tom Stanton stated, "We are experiencing unprecedented demand, highlighted by our record-setting Q3 bookings - up 43% year-over-year. We continue to add new customers, including now three new Tier 1 operators since the beginning of the third quarter. An additional highlight was our 61% year-over-year growth rate in customers deploying our SaaS applications. Finally, we remain extremely excited about our announced proposed combination with ADVA and the synergies we believe it will bring in terms of customer base and product portfolio to further accelerate our growth."

The Company also announced that its Board of Directors declared a cash dividend for the third quarter of 2021. The quarterly cash dividend of $0.09 per common share is to be paid to the Company's stockholders of record as of the close of business on November 16, 2021. The payment date will be November 30, 2021.

The Company confirmed that it will hold a conference call to discuss its third quarter results on Tuesday, November 2, 2021, at 9:30 a.m. Central Time. ADTRAN will webcast this conference call. To listen, simply visit ADTRAN's Investor Relations site at www.adtran.com/investor approximately ten minutes prior to the start of the call, click on the event "ADTRAN Releases 3rd Quarter 2021 Financial Results and Earnings Call", and click on the Webcast link.

An online replay of the Company's conference call, as well as the text of the Company's conference call, will be available on the Investor Relations site approximately 24 hours following the call and will remain available for at least 12 months. For more information, visit www.investors.adtran.com or email at investor.relations@adtran.com.

About ADTRAN

At ADTRAN, we believe amazing things happen when people connect. From the cloud edge to the subscriber edge, we help communications service providers around the world manage and scale services that connect people, places and things to advance human progress. Whether rural or urban, domestic or international, telco or cable, enterprise or residential-ADTRAN solutions optimize existing technology infrastructures and create new, multi-gigabit platforms that leverage cloud economics, data analytics, machine learning and open ecosystems-the future of global networking. Find more at ADTRAN.com, LinkedIn and Twitter.

This press release contains forward-looking statements, generally identified by the use of words such as "believe," "expect," "intend," "estimate," "anticipate," "will," "may," "could" and similar expressions, which forward-looking statements reflect management's best judgment based on factors currently known. However, these statements involve risks and uncertainties, including: (i) risks and uncertainties related to the continued impact of the SARS-CoV-2 coronavirus/COVID-19 global pandemic (or variants of the SARS-CoV-2 coronavirus, including the Delta variant), including the severity and duration of the pandemic and the delivery, acceptance and effectiveness of vaccines, which could lead to a decrease in demand for the Company's products and services, and which has disrupted, and could lead to further disruptions in, the Company's supply chain, adversely impacting the operations and financial condition of the Company and its customers; actions that have been taken and that may be taken by the Company, its customers, suppliers and counterparties in response to the pandemic, including the implementation of alternative work arrangements for employees, which may delay the timing of some orders and expected deliveries and which may impact the Company's ability to mitigate inefficiencies, delays and additional costs in the Company's product development, sales, marketing and customer service efforts; the legal, regulatory and administrative developments that have occurred and may continue to occur at the federal, state and local levels and in foreign jurisdictions in response to the pandemic, including travel bans and restrictions, quarantines, shelter-in-place orders, and business limitations and shutdowns; potential disruptions, breaches, or other incidents affecting the proper operation, availability or security of the Company's or its partners' information systems; potential declines in revenues due to declining customer demand and deteriorating macroeconomic conditions; increased expenses related to labor, raw materials, freight or other expenditures; the impact of the COVID-19 pandemic on the Company's liquidity, as well as risks associated with disruptions in the financial markets and the business of financial institutions as a result of the COVID-19 pandemic which could impact the Company from a financial perspective; the pace of recovery in our markets when the COVID-19 pandemic subsides, which could affect demand for our products; and (ii) the other risks detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 and the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2021. These risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release.

To provide additional transparency, we have disclosed in the table below non-GAAP operating income (loss), which has been reconciled to operating income (loss), and non-GAAP net income (loss) and non-GAAP earnings (loss) per share - basic and diluted, which have been reconciled to net income (loss) and earnings (loss) per share - basic and diluted, in each case as reported based on Generally Accepted Accounting Principles in the United States ("U.S. GAAP"). These non-GAAP financial measures exclude certain items which management believes are not reflective of the ongoing operating performance of the business. We believe this information is useful in providing period-to-period comparisons of the results of our ongoing operations. Additionally, these measures are used by management in our ongoing planning and annual budgeting processes. The presentation of non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP earnings (loss) per share - basic and diluted, when combined with the U.S. GAAP presentation of operating income (loss), net income (loss) and earnings (loss) per share - basic and diluted, is beneficial to the overall understanding of ongoing operating performance of the Company.

These non-GAAP financial measures are not prepared in accordance with, or an alternative for, U.S. GAAP and therefore should not be considered in isolation or as a substitution for analysis of our results as reported under U.S. GAAP. Additionally, our calculation of non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP earnings (loss) per share - basic and diluted, may not be comparable to similar measures calculated by other companies.

Condensed Consolidated Balance Sheets(Unaudited)(In thousands)



September December 31, 30,

2021 2020

Assets

Current Assets

Cash and cash equivalents $ 75,503 $ 60,161

Restricted cash 102 18

Short-term investments 2,610 3,131

Accounts receivable, net 124,146 98,827

Other receivables 9,867 21,531

Inventory, net 127,241 125,457

Prepaid expenses and other current assets 10,061 8,293

Total Current Assets 349,530 317,418

Property, plant and equipment, net 56,556 62,399

Deferred tax assets, net 8,957 9,869

Goodwill 6,968 6,968

Intangibles, net 20,291 23,470

Other assets 31,675 25,425

Long-term investments 83,935 80,130

Total Assets $ 557,912 $ 525,679



Liabilities and Stockholders' Equity

Current Liabilities

Accounts payable $ 79,074 $ 49,929

Unearned revenue 16,394 14,092

Accrued expenses and other liabilities 15,392 13,609

Accrued wages and benefits 17,270 15,262

Income tax payable, net 5,914 1,301

Total Current Liabilities 134,044 94,193

Non-current unearned revenue 7,426 6,888

Pension liability 16,988 18,664

Deferred compensation liability 28,336 25,866

Other non-current liabilities 7,365 7,124

Total Liabilities 194,159 152,735

Stockholders' Equity 363,753 372,944

Total Liabilities and Stockholders' Equity $ 557,912 $ 525,679

Condensed Consolidated Statements of Income (Loss) (Unaudited) (In thousands, except per share data)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2021

2020

2021

2020

Revenue

Network Solutions

$

120,767

$

115,229

$

360,025

$

323,924

Services & Support

17,314

17,914

48,821

52,457

Total Revenue

138,081

133,143

408,846

376,381

Cost of Revenue

Network Solutions

81,029

62,795

216,044

178,492

Services & Support

9,379

11,386

28,860

33,855

Total Cost of Revenue

90,408

74,181

244,904

212,347

Gross Profit

47,673

58,962

163,942

164,034

Selling, general and administrative expenses

30,972

27,205

89,273

84,624

Research and development expenses

26,759

27,223

82,131

85,794

Asset impairments

-

-

-

65

Operating Income (Loss)

(10,058

)

4,534

(7,462

)

(6,449

)

Interest and dividend income

344

344

887

1,031

Interest expense

(6

)

-

(18

)

(1

)

Net investment gain (loss)

(63

)

2,844

2,942

1,819

Other income (expense), net

648

(1,679

)

2,673

(2,307

)

Income (Loss) Before Income Taxes

(9,135

)

6,043

(978

)

(5,907

)

Income tax (expense) benefit

(1,292

)

(562

)

(3,467

)

2,171

Net Income (Loss)

$

(10,427

)

$

5,481

$

(4,445

)

$

(3,736

)

Weighted average shares outstanding - basic

48,609

47,957

48,470

47,957

Weighted average shares outstanding - diluted

48,609

48,424

(1)

48,470

47,957

Earnings (loss) per common share - basic

$

(0.21

)

$

0.11

$

(0.09

)

$

(0.08

)

Earnings (loss) per common share - diluted

$

(0.21

)

$

0.11

(1)

$

(0.09

)

$

(0.08

)

Condensed Consolidated Statements of Income (Loss)(Unaudited)(In thousands, except per share data)



Three Months Ended Nine Months Ended

September 30, September 30,

2021 2020 2021 2020

Revenue

Network Solutions $ 120,767 $ 115,229 $ 360,025 $ 323,924

Services & Support 17,314 17,914 48,821 52,457

Total Revenue 138,081 133,143 408,846 376,381

Cost of Revenue

Network Solutions 81,029 62,795 216,044 178,492

Services & Support 9,379 11,386 28,860 33,855

Total Cost of 90,408 74,181 244,904 212,347 Revenue

Gross Profit 47,673 58,962 163,942 164,034

Selling, generaland administrative 30,972 27,205 89,273 84,624 expenses

Research anddevelopment 26,759 27,223 82,131 85,794 expenses

Asset impairments - - - 65

Operating Income (10,058 ) 4,534 (7,462 ) (6,449 ) (Loss)

Interest and 344 344 887 1,031 dividend income

Interest expense (6 ) - (18 ) (1 )

Net investment gain (63 ) 2,844 2,942 1,819 (loss)

Other income 648 (1,679 ) 2,673 (2,307 ) (expense), net

Income (Loss) (9,135 ) 6,043 (978 ) (5,907 ) Before Income Taxes

Income tax (1,292 ) (562 ) (3,467 ) 2,171 (expense) benefit

Net Income (Loss) $ (10,427 ) $ 5,481 $ (4,445 ) $ (3,736 )



Weighted averageshares outstanding 48,609 47,957 48,470 47,957 - basic

Weighted average ^shares outstanding 48,609 48,424 (1) 48,470 47,957 - diluted



Earnings (loss) percommon share - $ (0.21 ) $ 0.11 $ (0.09 ) $ (0.08 ) basic

Earnings (loss) per ^common share - $ (0.21 ) $ 0.11 (1) $ (0.09 ) $ (0.08 ) diluted

(1)

Assumes exercise of dilutive stock awards calculated under the treasury stock method.

^ Assumes exercise of dilutive stock awards calculated under the treasury(1) stock method.

Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands)

Nine Months Ended

September 30,

2021

2020

Cash flows from operating activities:

Net loss

$

(4,445

)

$

(3,736

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

12,246

12,525

Gain on investments

(3,320

)

(1,819

)

Stock-based compensation expense

5,457

5,056

Deferred income taxes

437

(1

)

Other

89

195

Asset impairments

-

65

Changes in operating assets and liabilities:

Accounts receivable, net

(26,346

)

(9,131

)

Other receivables

11,152

(6,224

)

Inventory, net

(2,669

)

(21,170

)

Prepaid expenses, other current assets and other assets

(8,514

)

(672

)

Accounts payable

29,614

14,204

Accrued expenses and other liabilities

10,392

5,618

Income taxes payable, net

4,798

(227

)

Net cash provided by (used in) operating activities

28,891

(5,317

)

Cash flows from investing activities:

Purchases of property, plant and equipment

(3,572

)

(5,082

)

Proceeds from sales and maturities of available-for-sale investments

28,305

86,145

Purchases of available-for-sale investments

(28,853

)

(42,641

)

Insurance proceeds received

500

-

Acquisition of note receivable

-

(523

)

Net cash provided by (used in) investing activities

(3,620

)

37,899

Cash flows from financing activities:

Proceeds from stock option exercises

6,111

-

Tax withholdings related to stock-based compensation settlements

(113

)

-

Dividend payments

(13,124

)

(12,993

)

Repayment of bonds payable

-

(24,600

)

Net cash used in financing activities

(7,126

)

(37,593

)

Net increase (decrease) in cash, cash equivalents and restricted cash

18,145

(5,011

)

Effect of exchange rate changes

(2,719

)

2,641

Cash, cash equivalents and restricted cash, beginning of period

60,179

73,773

Cash, cash equivalents and restricted cash, end of period

$

75,605

$

71,403

Supplemental disclosure of non-cash investing activities:

Right-of-use assets obtained in exchange for lease obligations

$

1,833

$

231

Purchases of property, plant and equipment included in accounts payable

$

100

$

442

Condensed Consolidated Statements of Cash Flows(Unaudited)(In thousands)



Nine Months Ended

September 30,

2021 2020

Cash flows from operating activities:

Net loss $ (4,445 ) $ (3,736 )

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization 12,246 12,525

Gain on investments (3,320 ) (1,819 )

Stock-based compensation expense 5,457 5,056

Deferred income taxes 437 (1 )

Other 89 195

Asset impairments - 65

Changes in operating assets and liabilities:

Accounts receivable, net (26,346 ) (9,131 )

Other receivables 11,152 (6,224 )

Inventory, net (2,669 ) (21,170 )

Prepaid expenses, other current assets and other (8,514 ) (672 )assets

Accounts payable 29,614 14,204

Accrued expenses and other liabilities 10,392 5,618

Income taxes payable, net 4,798 (227 )

Net cash provided by (used in) operating activities 28,891 (5,317 )



Cash flows from investing activities:

Purchases of property, plant and equipment (3,572 ) (5,082 )

Proceeds from sales and maturities of 28,305 86,145 available-for-sale investments

Purchases of available-for-sale investments (28,853 ) (42,641 )

Insurance proceeds received 500 -

Acquisition of note receivable - (523 )

Net cash provided by (used in) investing activities (3,620 ) 37,899



Cash flows from financing activities:

Proceeds from stock option exercises 6,111 -

Tax withholdings related to stock-based (113 ) - compensation settlements

Dividend payments (13,124 ) (12,993 )

Repayment of bonds payable - (24,600 )

Net cash used in financing activities (7,126 ) (37,593 )



Net increase (decrease) in cash, cash equivalents 18,145 (5,011 )and restricted cash

Effect of exchange rate changes (2,719 ) 2,641

Cash, cash equivalents and restricted cash, 60,179 73,773 beginning of period



Cash, cash equivalents and restricted cash, end of $ 75,605 $ 71,403 period



Supplemental disclosure of non-cash investing activities:

Right-of-use assets obtained in exchange for lease $ 1,833 $ 231 obligations

Purchases of property, plant and equipment included $ 100 $ 442 in accounts payable

Supplemental Information Reconciliation of Operating Income (Loss) to Non-GAAP Operating Income (Loss) (Unaudited)

Three Months Ended September 30,

Nine Months ended September 30,

2021

2020

2021

2020

Operating Income (Loss)

$

(10,058

)

$

4,534

$

(7,462

)

$

(6,449

)

Acquisition-related expenses, amortizations and adjustments

6,041

(1)

1,042

(4)

9,470

(8)

3,499

(11)

Stock-based compensation expense

1,842

(2)

1,610

(5)

5,457

(9)

5,056

(12)

Restructuring expenses

-

1,903

(6)

309

(10)

3,648

(13)

Deferred compensation adjustments

(459

)

(3)

791

(3)

2,091

(3)

765

(3)

Asset impairments

-

-

-

65

(14)

Settlement income

-

(28

)

(7)

-

(28

)

(7)

Non-GAAP Operating Income (Loss)

$

(2,634

)

$

9,852

$

9,865

$

6,556

Supplemental InformationReconciliation of Operating Income (Loss) to Non-GAAP Operating Income (Loss)(Unaudited)



Three Months Ended Nine Months ended September 30, September 30,

2021 2020 2021 2020

Operating Income $ (10,058 ) $ 4,534 $ (7,462 ) $ (6,449 ) (Loss)

Acquisition-relatedexpenses, 6,041 ^ 1,042 ^ 9,470 ^(8) 3,499 ^amortizations and (1) (4) (11)adjustments

Stock-based ^ ^ ^compensation 1,842 (2) 1,610 (5) 5,457 ^(9) 5,056 (12)expense

Restructuring - 1,903 ^ 309 ^ 3,648 ^expenses (6) (10) (13)

Deferred ^ ^compensation (459 ) (3) 791 (3) 2,091 ^(3) 765 ^(3)adjustments

Asset impairments - - - 65 ^ (14)

Settlement income - (28 ) ^ - (28 ) ^(7) (7)

Non-GAAP Operating $ (2,634 ) $ 9,852 $ 9,865 $ 6,556 Income (Loss)

(1)

$5.6 million is included in selling, general and administrative expenses and $0.5 million is included in research and development expenses on the condensed consolidated statements of income (loss).

(2)

$0.1 million is included in total cost of revenue, $1.1 million is included in selling, general and administrative expenses and $0.6 million is included in research and development expenses on the condensed consolidated statements of income (loss).

(3)

Includes non-cash change in fair value of equity investments held in the ADTRAN, Inc. Deferred Compensation Program for Employees, all of which is included in selling, general and administrative expenses on the condensed consolidated statement of income (loss).

(4)

$0.6 million is included in selling, general and administrative expenses and $0.5 million is included in research and development expenses on the condensed consolidated statements of income (loss).

(5)

$0.1 million is included in total cost of revenue, $0.9 million is included in selling, general and administrative expenses and $0.6 million is included in research and development expenses on the condensed consolidated statements of income (loss).

(6)

$0.2 million is included in total cost of revenue, $1.1 is included in selling, general and administrative expenses and $0.6 million is included in research and development expenses on the condensed consolidated statements of income (loss).

(7)

Includes income related to certain freight forwarder claim settlements, all of which is included in total cost of sales on the condensed consolidated statements of income.

(8)

$8.0 million is included in selling, general and administrative expenses and $1.5 million is included in research and development expenses on the condensed consolidated statements of income (loss).

(9)

$0.4 million is included in total cost of revenue, $3.3 million is included in selling, general and administrative expenses and $1.8 million is included in research and development expenses on the condensed consolidated statements of income (loss).

(10)

$0.1 million is included in selling, general and administrative expenses and $0.2 million is included in research and development expenses on the condensed consolidated statements of income (loss).

(11)

$0.3 million is included in total cost of revenue, $1.7 million is included in selling, general and administrative expenses and $1.5 million is included in research and development expenses on the condensed consolidated statements of income (loss).

(12)

$0.3 million is included in total cost of revenue, $3.0 million is included in selling, general and administrative expenses and $1.8 million is included in research and development expenses on the condensed consolidated statements of income (loss).

(13)

$0.3 million is included in total cost of revenue, $1.6 million is included in selling, general and administrative expenses and $1.7 million is included in research and development expenses on the condensed consolidated statements of income (loss).

(14)

Includes abandonment of certain information technology projects.

$5.6 million is included in selling, general and administrative expenses^(1) and $0.5 million is included in research and development expenses on the condensed consolidated statements of income (loss).

$0.1 million is included in total cost of revenue, $1.1 million is^(2) included in selling, general and administrative expenses and $0.6 million is included in research and development expenses on the condensed consolidated statements of income (loss).

Includes non-cash change in fair value of equity investments held in the^(3) ADTRAN, Inc. Deferred Compensation Program for Employees, all of which is included in selling, general and administrative expenses on the condensed consolidated statement of income (loss).

$0.6 million is included in selling, general and administrative expenses^(4) and $0.5 million is included in research and development expenses on the condensed consolidated statements of income (loss).

$0.1 million is included in total cost of revenue, $0.9 million is^(5) included in selling, general and administrative expenses and $0.6 million is included in research and development expenses on the condensed consolidated statements of income (loss).

$0.2 million is included in total cost of revenue, $1.1 is included in^(6) selling, general and administrative expenses and $0.6 million is included in research and development expenses on the condensed consolidated statements of income (loss).

Includes income related to certain freight forwarder claim settlements,^(7) all of which is included in total cost of sales on the condensed consolidated statements of income.

$8.0 million is included in selling, general and administrative expenses^(8) and $1.5 million is included in research and development expenses on the condensed consolidated statements of income (loss).

$0.4 million is included in total cost of revenue, $3.3 million is^(9) included in selling, general and administrative expenses and $1.8 million is included in research and development expenses on the condensed consolidated statements of income (loss).

^ $0.1 million is included in selling, general and administrative expenses(10) and $0.2 million is included in research and development expenses on the condensed consolidated statements of income (loss).

$0.3 million is included in total cost of revenue, $1.7 million is^ included in selling, general and administrative expenses and $1.5(11) million is included in research and development expenses on the condensed consolidated statements of income (loss).

$0.3 million is included in total cost of revenue, $3.0 million is^ included in selling, general and administrative expenses and $1.8(12) million is included in research and development expenses on the condensed consolidated statements of income (loss).

$0.3 million is included in total cost of revenue, $1.6 million is^ included in selling, general and administrative expenses and $1.7(13) million is included in research and development expenses on the condensed consolidated statements of income (loss).

^ Includes abandonment of certain information technology projects.(14)

Supplemental Information Reconciliation of Net Income (Loss) and Earnings (Loss) per Common Share - Basic and Diluted to Non-GAAP Net Income (Loss) and Non-GAAP Earnings (Loss) per Common Share - Basic and Diluted (Unaudited)

Three Months Ended

September 30,

Nine Months ended

September 30,

2021

2020

2021

2020

Net Income (Loss)

$

(10,427

)

$

5,481

$

(4,445

)

$

(3,736

)

Acquisition-related expenses, amortizations and adjustments

6,041

1,042

9,470

3,499

Stock-based compensation expense

1,842

1,610

5,457

5,056

Restructuring expenses

-

1,903

309

3,648

Pension expense(1)

272

248

825

720

Deferred compensation adjustments(2)

(262

)

(90

)

552

(1,432

)

(3)

Valuation allowance related to deferred tax assets

2,455

(956

)

4,413

2,622

Asset impairments

-

-

-

65

Settlement income

-

(28

)

-

(28

)

Tax effect of adjustments to net income (loss)

(736

)

(1,279

)

(2,931

)

(3,089

)

Non-GAAP Net Income (Loss)

$

(815

)

$

7,931

$

13,650

$

7,325

Weighted average shares outstanding - basic

48,609

47,957

48,470

47,957

Weighted average shares outstanding - diluted

48,609

48,424

48,470

47,957

Earnings (loss) per common share - basic

$

(0.21

)

$

0.11

$

(0.09

)

$

(0.08

)

Earnings (loss) per common share - diluted

$

(0.21

)

$

0.11

$

(0.09

)

$

(0.08

)

Non-GAAP earnings (loss) per common share - basic

$

(0.02

)

$

0.17

$

0.28

$

0.15

Non-GAAP earnings (loss) per common share - diluted

$

(0.02

)

$

0.16

$

0.28

$

0.15

Supplemental InformationReconciliation of Net Income (Loss) and Earnings (Loss) per Common Share -Basic and Dilutedto Non-GAAP Net Income (Loss) and Non-GAAP Earnings (Loss) per Common Share -Basic and Diluted(Unaudited)



Three Months Ended Nine Months ended September 30, September 30,

2021 2020 2021 2020

Net Income (Loss) $ (10,427 ) $ 5,481 $ (4,445 ) $ (3,736 )

Acquisition-relatedexpenses, 6,041 1,042 9,470 3,499 amortizations andadjustments

Stock-based 1,842 1,610 5,457 5,056 compensation expense

Restructuring - 1,903 309 3,648 expenses

Pension expense^(1) 272 248 825 720

Deferred ^compensation (262 ) (90 ) 552 (1,432 ) (3)adjustments^(2)

Valuation allowancerelated to deferred 2,455 (956 ) 4,413 2,622 tax assets

Asset impairments - - - 65

Settlement income - (28 ) - (28 )

Tax effect ofadjustments to net (736 ) (1,279 ) (2,931 ) (3,089 ) income (loss)

Non-GAAP Net Income $ (815 ) $ 7,931 $ 13,650 $ 7,325 (Loss)



Weighted averageshares outstanding - 48,609 47,957 48,470 47,957 basic

Weighted averageshares outstanding - 48,609 48,424 48,470 47,957 diluted



Earnings (loss) per $ (0.21 ) $ 0.11 $ (0.09 ) $ (0.08 ) common share - basic

Earnings (loss) percommon share - $ (0.21 ) $ 0.11 $ (0.09 ) $ (0.08 ) diluted



Non-GAAP earnings(loss) per common $ (0.02 ) $ 0.17 $ 0.28 $ 0.15 share - basic

Non-GAAP earnings(loss) per common $ (0.02 ) $ 0.16 $ 0.28 $ 0.15 share - diluted

(1)

Includes amortization of actuarial losses related to the Company's pension plan for employees in certain foreign countries.

(2)

Includes a non-cash change in fair value of equity investments held in deferred compensation plans offered to certain employees.

(3)

Includes a net investment gain of $1.5 million related to the out of period remeasurement to historical cost basis of certain long-term investments held in the Company's stock as part of one of the Company's deferred compensation plans.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211101006017/en/

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