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Financial Results

PNC Reports Second Quarter 2020 Net Income Of $3.7 Billion

PNC net income 2Q20

Sale of Equity Investment in BlackRock, Inc.

  • PNC divested its 22.4% equity investment in BlackRock in May 2020 primarily through the sale of 31.6 million shares in a registered offering and 2.65 million shares repurchased by BlackRock. PNC also contributed .5 million BlackRock shares to the PNC Foundation. Net proceeds from the sale were $14.2 billion. The after-tax gain on the sale of $4.3 billion, and donation expense and BlackRock’s historical results, are reported in PNC’s consolidated financial statements as discontinued operations.

Income Statement Highlights – Continuing Operations

Second quarter 2020 compared with first quarter 2020

  • Results from continuing operations reflected a loss of $744 million, a decrease of $1.5 billion due to a higher provision for credit losses.
  • Provision for credit losses increased to $2.5 billion for the second quarter compared with $914 million for the first quarter due to the significant estimated economic impact of the pandemic. Provision was calculated under the Current Expected Credit Loss (CECL) accounting standard adopted January 1, 2020.
    • Provision was $1.7 billion for the commercial portfolio and $720 million for the consumer portfolio.
  • Total revenue of $4.1 billion declined $260 million, or 6%.
  • Net interest income of $2.5 billion increased $16 million, or 1%, as lower rates on deposits and borrowings and higher average loans, balances held with the Federal Reserve Bank and securities were partially offset by lower yields on earning assets.
    • Net interest margin decreased 32 basis points to 2.52% reflecting the full quarter impact of the 1.5 percentage point reduction in the federal funds rate by the Federal Reserve in March 2020.
  • Noninterest income of $1.6 billion decreased $276 million, or 15%.
    • Fee income of $1.3 billion declined $204 million, or 14%. Service charges on deposits and consumer service fees decreased $136 million reflecting lower consumer spending and fees waived to assist customers in the pandemic, and residential mortgage revenue decreased $52 million due to a lower benefit from residential mortgage servicing rights valuation, net of economic hedge.
    • Other noninterest income of $271 million declined $72 million primarily due to lower net securities gains partially offset by higher capital markets-related revenue.
  • Noninterest expense of $2.5 billion decreased $28 million, or 1%, reflecting lower business activity related to the economic impact of the pandemic and well-controlled expenses.
  • The effective tax rate was 17.5% for the second quarter and 13.7% for the first quarter.

Balance Sheet Highlights

  • Average loans increased $24.5 billion, or 10%, to $268.1 billion in the second quarter compared with the first quarter.
    • Average commercial loans of $189.3 billion increased $25.2 billion, or 15%, reflecting Paycheck Protection Program (PPP) lending under the CARES Act and higher utilization of loan commitments driven by the economic impact of the pandemic on customer liquidity preferences.
    • Average consumer loans of $78.8 billion decreased $.7 billion, or 1%, primarily due to lower credit card, auto and student loans partially offset by higher residential mortgage loans.
  • Loans at June 30, 2020 declined $6.4 billion, or 2%, to $258.2 billion compared with March 31, 2020.
    • Commercial loans decreased $4.5 billion, or 2%. PNC funded $13.7 billion of PPP loans during the second quarter. New loans were more than offset by paydowns of March 2020 draws on loan commitments.
    • Consumer loans decreased $1.9 billion, or 2%, primarily in auto, credit card and home equity loans.
  • Credit quality performance:
    • Overall delinquencies of $1.3 billion at June 30, 2020 decreased $173 million, or 12%, compared with March 31, 2020 due to lower consumer loan and commercial loan delinquencies reflecting CARES Act and other forbearance.
    • Nonperforming assets of $2.0 billion at June 30, 2020 increased $200 million, or 11%, compared with March 31, 2020.
    • Net loan charge-offs were $236 million for the second quarter compared with $212 million for the first quarter.
    • The allowance for credit losses to total loans was 2.55% at June 30, 2020 and 1.66% at March 31, 2020.
  • Average deposits increased $45.5 billion, or 16%, to $335.2 billion in the second quarter compared with the first quarter due to growth in commercial deposits reflecting pandemic-related accumulation of liquidity by customers. Consumer deposits also increased driven by government stimulus payments and lower consumer spending.
    • Deposits at June 30, 2020 increased $40.8 billion, or 13%, to $346.0 billion compared with March 31, 2020.
  • Average investment securities increased $4.0 billion, or 5%, to $88.4 billion in the second quarter compared with the first quarter.
    • Investment securities at June 30, 2020 increased $8.0 billion, or 9%, to $98.5 billion compared with March 31, 2020.
  • Average balances held with the Federal Reserve Bank of $34.2 billion for the second quarter increased $16.9 billion compared with the first quarter, and balances at June 30, 2020 of $50.0 billion increased $30.4 billion compared with March 31, 2020, reflecting higher liquidity from deposit growth and proceeds from the sale of the equity investment in BlackRock.
  • PNC maintained strong capital and liquidity positions.
    • The PNC board of directors declared a quarterly cash dividend on common stock payable on August 5, 2020 of $1.15 per share, consistent with the second quarter dividend paid on May 5, 2020.
    • PNC announced on March 16, 2020 a temporary suspension of its common stock repurchase program in conjunction with the Federal Reserve’s effort to support the U.S. economy during the pandemic, and will continue the suspension through the third quarter of 2020, with the exception of permissible share repurchases to offset the effects of employee benefit plan-related issuances.
    • The Basel III common equity Tier 1 capital ratio was an estimated 11.3 percent at June 30, 2020 and 9.4 percent at March 31, 2020.
    • The Liquidity Coverage Ratio at June 30, 2020 for both PNC and PNC Bank, N.A. exceeded the regulatory minimum requirement.
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Financial Results

MedX Announces First Quarter 2020 Results, Revenue Decreased by 48% y-o-y

MedX Health Corp. (“MedX” or the “Company”) (TSX-V: MDX) announced its results for the three-months ended March 31, 2020.

The Company reported revenue of $95,544 for the three months ended March 31, 2020, compared with revenue of $184,801 for the three months ended March 31, 2019. Revenues from SIAscopy of $21,788 were similar to the prior year three-month period, while revenue from the Company’s therapeutic laser line of $73,766 was 55% lower than $163,238 in the prior year period. The Company reported a loss for the three months ended March 31, 2020 of $740,184 or $0.00 per share compared with a loss of $788,101, or $0.01 per share for the three months ended March 31, 2019.

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Financial Results

Mindtree Reports First Quarter FY21 Results

Revenue at $253.2 million (decline of 4.1% yoy)

Net profit at $28.3 million (growth of 111.7% yoy)

highlights:

  • Clients:
    • 292 active clients as of June 30, 2020
    • 6 new clients added during the quarter
  • People:
    • 21,955 Mindtree Minds as of June 30, 2020
    • Trailing 12 months attrition is 16.6%
  • Q1 deal wins with leading global clients:

New Clients:

  • For a leading manufacturer in outdoor maintenance and gardening equipment, Mindtree has been awarded a program to redefine the e-commerce journey by bringing direct-to-consumer channel using Salesforce commerce cloud and by deploying a new content management system, thereby opening a new revenue stream for the client organization
  • Mindtree has been chosen as the strategic partner for the implementation of Salesforce based Digital Solutions and ServiceNow rollout for pioneer in retail tele-dentistry enterprise based in North America
  • For a global travel technology leader, Mindtree has been chosen as a strategic implementation partner to accelerate their cloud transformation & modernization roadmap to create a new travel market place comprising of critical products and systems across their entire portfolio
  • Mindtree has been chosen for development and testing services for a world leading healthcare manufacturing and distribution company based in North America

Existing Clients:

  • Mindtree has been awarded a multi-year global infrastructure services engagement for a top multinational corporate travel and meetings management company to provide 24×7 remote infrastructure management, administration, monitoring and support services for their data centers across the enterprise

“We closed the quarter with a healthy order book of USD 391M despite the global headwinds due to Covid-19 pandemic. Our unwavering focus on operational efficiencies has helped us to post a healthy EBITDA of 18.2%,” said Debashis Chatterjee, Chief Executive Officer and Managing Director, Mindtree. “With our client-first approach, future-ready talent coupled with increase in digital demand, we are confident to strengthen our position in the market and drive profitable growth in these unprecedented times.”

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Financial Results

Huawei Generated $64 Billion in Revenue 2020 H1

Shenzhen, China, July 13, 2020– Huawei announced its business results for the first half of 2020 today. The company generated CNY454 billion in revenue during this period, a 13.1% increase year-on-year, with a net profit margin of 9.2%.[1] Huawei’s carrier, enterprise, and consumer businesses achieved CNY159.6 billion, CNY36.3 billion, and CNY255.8 billion in revenue, respectively.

As countries around the globe are grappling with the COVID-19 pandemic, information and communications technologies (ICT) have become not only a crucial tool for combatting the virus, but also an engine for economic recovery. Huawei reiterated its commitment to working with carriers and industry partners to maintain stable network operations, accelerate digital transformation, and support efforts to contain local outbreaks and reopen local economies.

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Financial Results

D-BOX Technologies Reports Fiscal Year and Fourth Quarter 2020 Results

D-BOX Technologies Inc. (TSX: DBO), a world leader in immersive entertainment experiences, today announced results for the fiscal year and fourth quarter ended March 31, 2020. All dollar amounts are expressed in Canadian currency.

FINANCIAL HIGHLIGHTS

Highlights for the Year Ended March 31, 2020

Compared with the year ended March 31, 2019:

  • Revenues decreased from $34.2 million to $25.9 million.
  • Recurring revenues decreased from $8.6 million to $7.3 million.
  • Net loss went from $1.7 million to $6.3 million.  
  • Net loss for this year includes $1.4 million of restructuring costs to reflect the change of the organizational structure and $1.3 million of impairment charges.
  • Adjusted EDITDA* decreased from $2.1 million to $0.6 million.

Highlights for the Fourth Quarter Ended March 31, 2020

Compared with the fourth quarter ended March 31, 2019:

  • Revenues decreased from $8.3 million to $6.6 million.
  • Recurring revenues decreased from $1.8 million to $1.3 million.
  • Net loss went from $0.6 million to $3.1 million.
  • Net loss for this quarter includes $0.4 million of restructuring costs and $1.3 million of impairment charges.
  • Quarterly Adjusted EBITDA* amounted to $7 thousand compared with $0.3 million.

OPERATIONAL HIGHLIGHTS

  • On March 11, 2020, the World Health Organization declared coronavirus (“COVID-19) a global pandemic. Most governments have enacted emergency measures to combat the spread of the virus, including travel bans, mandatory closures of nonessential services and businesses and social distancing. These measures have caused material disruption to businesses worldwide resulting in economic uncertainty, supply chain disruption, change in consumer demand. At the present time, D-BOX cannot reliably provide an estimate of the duration or magnitude of the outbreak and its impact on the Corporation’s financial results. 
     
  • In the professional simulation segment, CM Labs, the leading vendor for simulation-based training in the construction industry with over 1,000 simulators in 30 countries, has developed a new simulator. This simulator, which integrates D-BOX’s motion technology, is adapted for the training of heavy equipment operators.
     
  • In the themed entertainment, BRP Inc., a global leader in powersport vehicles and marine products, has developed a Ski-Doo simulator with D-BOX’s motion technology to replicate an immersive experience.
     
  • In the theatrical segment, D-BOX expanded its footprint with the additions from Premiere Cinemas (USA), Traumpalast (Germany) and Golden Screen Cinemas (Malaysia).
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Financial Results

ECMOHO Announces First Quarter 2020 Unaudited Financial Results

ECMOHO Limited (Nasdaq: MOHO) (“ECMOHO” or the “Company”), a leading integrated solutions provider in the non-medical health and wellness market in China, today announced its unaudited financial results for the first quarter ended March 31, 2020.

First Quarter 2020 Financial Highlights

  • Total net revenues were US$61.2 million, compared with US$63.9 million in the same quarter last year.
  • Operating loss was US$5.6 million, compared with operating income of US$0.8 million in the same quarter last year.
  • Non-GAAP operating loss was US$5.3 million, compared with Non-GAAP operating income of US$1.1 million in the same quarter last year.
  • Net loss was US$4.6 million, compared with net income of US$0.3 million in the same quarter last year.
  • Non-GAAP net loss was US$4.3 million, compared with net income of US$0.6 million in the same quarter last year.
  • Basic and diluted net loss per American Depositary Share (“ADS1”) attributable to ECMOHO Limited’s ordinary shareholders were US$0.13 and US$0.13, respectively, compared with US$0.01 and US$0.01, respectively, for the same period of 2019.
  • Non-GAAP basic and diluted net loss per ADS attributable to ECMOHO Limited’s ordinary shareholders were US$0.12 and US$0.12, respectively, compared with net earnings per ADS of US$0.01 and US$0.01, respectively, for the same period of 2019.

First Quarter 2020 Operational Highlights

  • Number of brands offered by the Company increased to 76 as of March 31, 2020, from 70 as of December 31, 2019.
  • Number of cumulative paying consumers was 8.6 million as of March 31, 2020.
  • Repeat purchase rate2 reached 38% in the three months ended March 31, 2020, from 35% in the three months ended December 31, 2019.

First Quarter 2020 Financial Results

Total net revenues were US$61.2 million, a decrease of 4.2% from US$63.9 million in the same quarter in 2019 with increases in product sales offset by declines in other revenues.  Total net revenues calculated in Renminbi declined by 0.9% year-over-year and declined further in US dollar terms as a result of the Renminbi’s depreciation year-over-year. The decrease was mainly due to disruptions caused by the COVID-19 pandemic, as some of the Company’s employees were not able to return to work as scheduled after the Lunar New Year public holiday and the Company’s domestic logistics and transport service providers, who experienced temporary shutdowns or worker absenteeism, were unable to ship products for us. 

Among brand partners, the Company saw revenue growth from existing partners Gerber, Perrier, Wyeth Pharmaceutical, Harbin Pharmaceutical and new partners Jiangzhong Shiliao and Bayer.  The growth in these brands was offset by decreases in the sales of milk powder products, such as Abbott and Wyeth Nutrition.

Cost of revenues was US$50.5 million, an increase of 6.5% from US$47.4 million in the same quarter in 2019.  The increase in cost of revenue was mainly due to higher sales to online retailers which typically generate lower gross profit.

Operating expenses were US$16.3 million, compared with US$15.7 million in the same quarter in 2019.  Operating expenses represented 26.6% of total net revenue, compared with 24.6% of total net revenues in the same quarter in 2019.

  • Fulfilment expenses were US$3.8 million, a decrease of 2.6% from US$3.9 million in the same quarter in 2019.  Fulfilment expenses declined primarily due to higher sales recorded to online retailers, which generally have lower fulfilment expenses per unit.  The above mentioned decline of fulfilment expense was offset by the increase in air freight expense per unit due to the nonfunctional logistics system in the first quarter.  Fulfillment expenses represented 6.2% of total net revenues, up slightly from 6.1% in the same quarter in 2019.
  • Sales and marketing expenses were US$9.1 million, flat with the same quarter in 2019.  Within sales and marketing expenses, platform fees and labor expenses grew and these increases were offset by a reduction in promotional expenses, which was a result of the Company doing fewer promotional activities during the COVID-19 pandemic.  Sales and marketing expenses represented 14.9% of total net revenues, up from 14.2% in the same quarter in 2019.
  • General and administrative expenses were US$3.1 million, an increase of 40.9% from US$2.2 million in the same quarter in 2019.  The increase was primarily due to higher professional service fees, higher labor expenses, and insurance expense in the first quarter of 2020 and offset by (1) a reduction in value added tax paid on inter-subsidiary transactions, which resulted from the Company receiving approval for VAT tax exemption for export of services in the second quarter of 2019, and (2) reductions in entertainment and office expenses.  General and administrative expenses represented 5.1% of total net revenues, up from 3.4% in the same quarter in 2019.
  • Research and development expenses were US$0.3 million, representing a 40.0% decline from US$0.5 million in the same quarter in 2019.  The decline was primarily due to a reduced headcount in the R&D department in the period.

Operating loss was US$5.6 million, compared with operating income of US$0.8 million in the same quarter in 2019.

Non-GAAP operating loss was US$5.3 million, compared with Non-GAAP operating income of US$1.1 million in the same quarter in 2019. 

Net loss was US$4.6 million, compared with net income of US$0.3 million during the same quarter in 2019.

Non-GAAP net loss was US$4.3 million, compared with Non-GAAP net income of US$0.6 million during the same quarter in 2019.

Net loss attributable to ECMOHO Limited was US$4.4 million, compared with net income attributable to ECMOHO Limited of US$0.3 million during the same quarter in 2019.

Non-GAAP net loss attributable to ECMOHO Limited was US$4.1 million, compared with Non-GAAP net income attributable to ECMOHO Limited of US$0.6 million during the same quarter in 2019.

As of March 31, 2020, the Company had US$53.0 million in cash, cash equivalents and restricted cash, an increase from US$51.1 million as of December 31, 2019. 

Inventory days in the first quarter of 2020 increased to 89 days from 62 days in the fourth quarter of 2019.  The increase in inventory days were influenced by three factors:

  • At the end of the fourth quarter 2019, the Company had just completed its double-eleven and double-twelve shopping events and inventory days were therefore relatively low;
  • During the first quarter of the calendar year the Company generally experiences lower levels of sales activity due to the Lunar New Year holiday, during which the volumes of online purchases and logistical operations drop significantly due to vacations and business closures;
  • The Company pulled in some of its orders to its overseas suppliers for the 618 shopping event from April to March, as a precaution against potential disruptions in the supply chain. 

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Financial Results

TD Holdings, Inc. Reports First Quarter 2020 Financial Results

  • Income from commodities trading business was $1.47 million, consisting of $1.05 million from sales of commodities products, and $0.42 million from supply chain management services;
  • Net loss was $0.14 million, compared with net loss of $1.83 million for the three months ended March 31, 2019.

The Company started to operate its current used luxurious car leasing business in China, after it disposed its direct loans, loan guarantees and financial leasing services in July 2018, and began to operate commodities trading business in China in November 2019. In January 2020, the company changed the name to TD Holdings, Inc.

Mrs. Renmei Ouyang, the Chief Executive Officer of the Company, stated, “We are pleased to report our financial results for the three months ended March 31, 2020. We started our commodity trading business in late 2019, and we have increased our revenues from the commodities trading business despite of the outbreak of COVID-19. I believe that the commodity trading business will continue to bolster the Company’s income and increase shareholder value.”