NEW YORK, Oct. 7, 2020 /PRNewswire/ -- ALJ Regional
Holdings, Inc. (NASDAQ: ALJJ) ("ALJ") announced that its
results for the fiscal fourth quarter and year ended September 30, 2020 will be above previously
provided guidance.
Jess Ravich, Chief Executive
Officer of ALJ, said, "Results at Faneuil continued to improve in
the fiscal fourth quarter of 2020 and benefited from the recent
addition of state unemployment contracts. For Phoenix, results were stronger than expected
for the fiscal fourth quarter due to higher volumes for trade
components and books. As a result, we anticipate ALJ's fiscal
fourth quarter adjusted EBITDA to be above prior forecasts
previously provided."
Updated Financial Results Forecast – Three Months and Year
Ended September 30, 2020
ALJ is reaffirming its net revenue forecast for the three months
and year ended September 30, 2020, as
previously provided in our fiscal third quarter earnings
release.
ALJ is currently forecasting adjusted EBITDA for the three
months ended September 30, 2020 to be
in the range of $8.0 million to
$9.0 million versus $5.3 million to $6.8
million as previously provided during our fiscal third
quarter investor conference call. Adjusted EBITDA for the
comparable prior year fiscal quarter was $5.2 million.
ALJ is currently forecasting adjusted EBITDA for the year ended
September 30, 2020 to be in the range
of $23.2 million to $24.2 million versus $20.5
million to $22.0 million as
previously provided during our fiscal third quarter investor
conference call. Adjusted EBITDA for the comparable prior
fiscal year was $27.7
million.
Non-GAAP Financial Measures
In our earnings releases, prepared remarks, conference calls,
presentations, and webcasts, we may present certain adjusted
financial measures that are not calculated according to generally
accepted accounting principles in the
United States ("GAAP"). These non-GAAP financial measures
are designed to complement the GAAP financial information presented
in this release because management believes they present
information regarding ALJ that is useful to investors. The non-GAAP
financial measures presented should not be considered in isolation
from, or as a substitute for, the comparable GAAP financial
measure.
We present adjusted EBITDA because we believe it is frequently
used by analysts, investors, and other interested parties in the
evaluation of our company. ALJ defines segment adjusted
EBITDA as segment net income (loss) before depreciation and
amortization expense, interest expense, litigation loss, recovery
of litigation loss, restructuring and cost reduction initiatives,
loan amendment expenses, fair value of warrants issued in
connection with loan amendments, stock-based compensation,
acquisition-related expenses, (loss) gain on disposal of assets and
other gain, net, provision for income taxes, and other
non-recurring items. Adjusted EBITDA measures are
not calculated in the same manner by all companies and,
accordingly, may not be an appropriate measure for comparison.
The Company is not able to provide a reconciliation of the
Company's non-GAAP financial guidance to the corresponding GAAP
measures without unreasonable effort because of the inherent
difficulty in forecasting and quantifying certain amounts necessary
for such a reconciliation such as certain non-cash, nonrecurring or
other items that are included in net income and EBITDA as well as
the related tax impacts of these items, due to the uncertainty and
variability of the nature and amount of these future charges and
costs.
About ALJ Regional Holdings, Inc.
ALJ Regional Holdings, Inc. is the parent company of (i)
Faneuil, Inc., a leading provider of call center services, back
office operations, staffing services, and toll collection services
to commercial and governmental clients across the United States, (ii) Floors-N-More, LLC,
d/b/a Carpets N' More, one of the largest floor covering retailers
in Las Vegas, Nevada, and a
provider of multiple products for the commercial, retail, and home
builder markets including all types of flooring, countertops, and
cabinets, and (iii) Phoenix Color Corp., a leading manufacturer of
book components, educational materials, and related products
producing value-added components, heavily illustrated books, and
specialty commercial products using a broad spectrum of materials
and decorative technologies.
Forward-Looking Statements
ALJ's revised guidance and related communications contain
forward-looking statements within the meaning of federal securities
laws. Such statements include information regarding our
expectations, impact of COVID-19, goals or intentions regarding the
future, including but not limited to statements about our financial
projections and business growth, our plans to reduce capital
expenditures and deleverage our balance sheet, our ability to
achieve target adjusted EBITDA margins on customer contracts, the
impact of new customer contracts for Faneuil, the impact of new
Faneuil contracts on Faneuil's financial results and other
statements including the words "will," "anticipate," and "expect"
and similar expressions. You should not place undue reliance
on these statements, as they involve certain risks and
uncertainties, and actual results or performance may differ
materially from those discussed in any such statement. Factors that
could cause actual results to differ materially are discussed in
our annual report on Form 10-K and quarterly reports on Form 10-Q
filed with the Securities and Exchange Commission and available
through EDGAR on the SEC's website at www.sec.gov.
All forward-looking statements in this release are made as of
the date hereof and we assume no obligation to update any
forward-looking statement.
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SOURCE ALJ Regional Holdings, Inc.