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Hong Kong stocks tumble after Fed meeting signals gradual rate hike

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Hong Kong stocks tumbled in early trading on Friday, after a Federal Reserve meeting signalling a gradual rate hike sent stocks lower in the overnight US markets. The benchmark Hang Seng Index tumbled 1.9 per cent, or 484.29 points, to 25,745.43, while the Hang Seng China Enterprises Index declined 2.1 per cent, or 224.75 points, to 10,478.84 as of 10.51am on Friday. The policymaking Federal Open Market Committee left interest rates unchanged at between 2 per cent to 2.25 per cent on Thursday,... Reported by S.China Morning Post 3 hours ago.

Hong Kong bars FT journalist from entering

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Critics say Chinese territory's rights landscape has deteriorated in recent years amid a spate of controversies. Reported by Al Jazeera 1 hour ago.

Hong Kong bars British editor from entering city following visa ban

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Hong Kong barred the Asia news editor of the Financial Times from entering the city as a visitor, the newspaper said, after authorities refused to renew his work visa in October, raising questions about the city's commitment to free speech. Reported by Reuters 2 hours ago.

Hong Kong bars British news editor from entering city

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HONG KONG: Hong Kong has barred the Asia news editor of the Financial Times from entering the city as a visitor, the newspaper said, after authorities refused to renew his work visa in October, raising questions about the city's commitment to free speech. Reported by Bangkok Post 1 hour ago.

Refusal to let British Financial Times journalist enter Hong Kong ‘nothing to do with freedom of the press’, government says

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A British journalist being barred from Hong Kong “has nothing to do with freedom of expression or freedom of the press”, the city’s security chief said on Friday. But Secretary for Security John Lee Ka-chiu said the government would not explain why it blocked Victor Mallet’s entry as a tourist, citing “data privacy considerations”. It was a second rejection for Mallet, who was denied a work visa renewal last month, sparking a major controversy for the... Reported by S.China Morning Post 2 hours ago.

Technology Companies in Asia-Pacific Plan for Robust Salary Increases in 2019

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· Salary budgets are expected to increase in China, India, Japan and South Korea in 2019, but remain flat at 4.0% in Singapore
· The prevalence of technology companies across Asia-Pacific with aggressive hiring plans rose for the second consecutive quarter. In Singapore, the percentage of technology companies that plan to hire aggressively increased to 4.9%

 

SINGAPORE - Media OutReach - 9 November 2018* - *Salary increase budgets at technology companies are expected to increase in China, India, Japan and South Korea in 2019 according to new data from Radford, a division of the rewards solutions practice at Aon plc (NYSE: AON). In Singapore, salary budgets are expected to remain flat at 4.0% in 2019. The fast-growth, developing markets of China and India report the highest increases in salaries at 7.8% and 10.5%, respectively.

 

 

*Median Overall Salary Increase Budgets*

*Market*

*2018 Actual*

*2019 Planned*

Australia

3.4%

3.3%

China

7.2%

7.8%

Hong Kong

4.2%

4.0%

India

10.4%

10.5%

Japan

2.8%

3.0%

Singapore

4.0%

4.0%

South Korea

4.6%

4.8%

Taiwan

4.0%

4.0%

Source: Radford Global Technology Survey Quarterly Workforce Trends Report, Q3 2018

 

Meanwhile, technology companies across Asia-Pacific also report increasingly optimistic hiring plans despite battling high employee turnover at the same time. The prevalence of technology companies reporting aggressive hiring plans-- defined as actively planning and recruiting for organisational growth-- increased during the third quarter of this year in five of eight key Asia-Pacific markets. In Singapore, the percentage of technology companies that plan to hire aggressively increased for the second consecutive quarter to 4.9%. Companies reporting aggressive hiring plans in India saw the biggest jump with an increase from 16.8% in Q2 2018 to 21.1% in Q3 2018.

 

*Percentage of Technology Companies Reporting Aggressive Hiring Plans *

*Market*

*Q2 2018*

*Q3 2018*

Australia

6.9%

5.9%

China

9.2%

8.6%

Hong Kong

1.8%

2.4%

India

16.8%

21.1%

Japan

4.0%

4.8%

Singapore

4.4%

4.9%

South Korea

2.2%

2.9%

Taiwan

2.5%

1.2%

Source: Radford Global Technology Survey Quarterly Workforce Trends Report, Q3 2018

 

Voluntary employee turnover-- another key metric on the health of the overall technology sector-- is up for the past quarter in six out of eight markets. Voluntary employee turnover is highest in Australia at 13.8% followed by China (13.7%), Singapore (13.2%) and India (12.6%).

 

*Average Voluntary Employee Turnover at Technology Companies *

*Market*

*Q2 2018*

*Q3 2018*

Australia

12.8%

13.8%

China

12.4%

13.7%

Hong Kong

10.9%

12.2%

India

12.7%

12.6%

Japan

10.1%

9.7%

Singapore

12.0%

13.2%

South Korea

8.4%

8.5%

Taiwan

9.2%

10.2%

Source: Radford Global Technology Survey Quarterly Workforce Trends Report, Q3 2018

 

While salary increase budgets are forecasted to be up in several markets, merit increases alone won't be enough to hire, engage and retain talent in a hot labor market. "Companies must assess what jobs are needed for future growth and hire for those roles in a competitive marketplace while also engaging and retaining their current talent when many other job opportunities exist. Businesses with a voluntary turnover of above 10% should evaluate their employee value proposition and talent practices carefully" says Alexander Krasavin, Partner and Radford Leader for Asia Pacific, Middle East, and Africa.

 

*About Radford*

*
*

Radford partners with technology and life sciences companies to reimagine their approach to rewards, empowering them to achieve superior levels of people and business performance. Radford is part of Aon plc (NYSE: AON). For more information, please visit radford.aon.com.

 

*About Aon*

*
*

Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance. For further information, please visit aon.com. Reported by Media OutReach 2 hours ago.

Joao Moreira takes ride on boom sprinter Hot King Prawn

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Superstar jockey Joao Moreira will partner boom speedster Hot King Prawn in next weekend’s Group Two BOCHK Wealth Management Jockey Club Sprint at Sha Tin. Trainer John Size confirmed the booking of the Magic Man ahead of his five-pronged attack on the traditional lead-up race for the Group One Longines Hong Kong Sprint. Moreira is yet to ride Hot King Prawn, who boasts a record of eight wins and a second from nine starts, in a race, but he was aboard for his very first barrier trial at... Reported by S.China Morning Post 1 hour ago.

Hong Kong refuses entry to FT journalist Victor Mallet

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Hong Kong refuses entry to FT journalist Victor Mallet Victor Mallet's Hong Kong work visa was not renewed in October, and he is now barred from entering. Reported by BBC News 1 hour ago.

Asian stock markets sink after Wall Street rally fades

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BEIJING (AP) — Asian stock markets fell Friday after a post-election Wall Street rally faded and the U.S. Federal Reserve suggested it will keep raising interest rates. KEEPING SCORE: The Shanghai Composite Index lost 1.3 percent to 2,614.37 and Tokyo’s Nikkei 225 retreated 0.8 percent to 22,310.16. Hong Kong’s Hang Seng fell 2.4 percent to […] Reported by Seattle Times 41 minutes ago.

The path to a vote for all in Hong Kong begins with dialogue with China’s Communist Party

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Recent political developments in Hong Kong have been underpinned by two prominent undercurrents. The first is a general disillusionment with what is perceived to be continued encroachment by China’s Communist Party on Hong Kong’s autonomy. The second is rising frustration at the sheer ineptitude and futility of zealous localists who prioritise ideological posturing over pragmatic dialogue with the party. Both undercurrents point to the value for Hong Kong to restart the search for a... Reported by S.China Morning Post 45 minutes ago.

Asian stocks retreating as Fed on hold, Nikkei back into ¥22,300.00

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· *The Pacific market sector is in full retreat for Friday as the US Fed holds off on rate hikes for now.*
· *China's CPI reading managed to disappoint despite coming in at expectations, worsening the day's mood.*

Asian stocks got pushed back into retreat after the US Federal Reserve held steady on interest rates in advance of December's widely-expected rate increase, and global equities have rolled over to expose their underbellies heading through Friday's action.

US mid-term elections held this week sparked a bullish run in broader equity indexes, but an on-hold Fed has soured the buying mood, with Chinese indexes seeing extended declines in early Friday trading after China's CPI reading for Friday morning barely scraped in at expectations, indicating a worsening decline in the Chinese domestic economy.

The MSCI broad Asia-Pacific index is in the green for the day after struggling in the early hours, up 0.66%,  while Australia's ASX 200 is softly down around -0.11%.

Japan's major bourses are in decline mode as well, with the Nikkei 225 retracting 0.85% and the Tokyo Topix index sits back -0.40%, while Chinese equities are falling once more, with the Shanghai CSI 300 in the red for -1.14% and the Hong Kong Hang Seng index in freefall for -2.24%.

*Nikkei 225 Technical Levels*

Nikkei 225

Overview:
    Last Price: 22305
    Daily change: -1.8e+4 pips
    Daily change: -0.801%
    Daily Open: 22485
Trends:
    Daily SMA20: 22071
    Daily SMA50: 22913
    Daily SMA100: 22694.82
    Daily SMA200: 22388.78
Levels:
    Daily High: 22565
    Daily Low: 22370
    Weekly High: 22320
    Weekly Low: 20805
    Monthly High: 24480
    Monthly Low: 20800
    Daily Fibonacci 38.2%: 22444.49
    Daily Fibonacci 61.8%: 22490.51
    Daily Pivot Point S1: 22381.67
    Daily Pivot Point S2: 22278.33
    Daily Pivot Point S3: 22186.67
    Daily Pivot Point R1: 22576.67
    Daily Pivot Point R2: 22668.33
    Daily Pivot Point R3: 22771.67

  Reported by FXstreet.com 33 minutes ago.

Japan TV cancels show of K-pop's BTS over atom bomb t-shirt furor

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Japan TV cancels show of K-pop's BTS over atom bomb t-shirt furor Record Image: Participants of South Korean Okay-pop band BTS, often referred to as Bangtan Boys, pose at the purple carpet all the way through Mnet Asian Song Awards (MAMA) in Hong Kong, China December 2, 2016. REUTERS/Bobby Yip TOKYO (Reuters) – A Eastern TV station mentioned it had canceled a Friday tv display with South … Reported by The News Articles 16 minutes ago.

Zac Purton and David Hall step into the unknown with Little Giant

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Both the trainer and jockey of excitement machine Little Giant concede they are stepping into the unknown when they tackle Class One company for the first time in the Panasonic Cup (1,400m) on Saturday. The New Zealand import has been beaten just once in his injury-plagued four-start Hong Kong career but faces his toughest test yet as he progresses towards a possible Longines International Races tilt next month. Little Giant could not have been more impressive when returning from injury earlier... Reported by S.China Morning Post 14 minutes ago.

Opening stations on scandal-hit Sha Tin-Central rail link could lead to overcrowding at Kowloon Tong, Hong Kong district councillors warn

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A plan to partially open Hong Kong’s scandal-plagued Sha Tin-Central rail link by mid-2019 could lead to overcrowding at a major transfer station, district councillors warned on Friday. Their comments came after lawmaker and former rail boss Michael Tien Puk-sun revealed that the MTR Corporation planned to begin operations at several stations – Tai Wai, Hin Keng and Diamond Hill – along the long-delayed link before the middle of next year. Ho Hin-ming, chairman of the Kowloon... Reported by S.China Morning Post 8 minutes ago.

Hong Kong bars British journalist from entering

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Hong Kong has barred a Financial Times journalist from entering the city as a visitor, after authorities refused to renew his work visa in October, in a move a British official said undermined free speech. Reported by Reuters India 14 hours ago.

Mogo Finance successfully places EUR 25 million tap on existing 9.50% corporate bond 2018/2022

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Riga, Latvia, 9 November 2018. Mogo Finance and its group companies (the "Group"), specialized in used car financing, is pleased to announce the successful placement of the tap issue of its 9.50% corporate bond 2018/2022 (XS1831877755) at par plus accrued interest. The Holding Company of the Group, Mogo Finance, issued today EUR 25 million of bonds with an annual interest rate of 9.50% to institutional investors by way of private placement. The issue was comfortably oversubscribed. Settlement is expected to take place on 16 November 2018. The bonds will be listed on the regulated market of the Frankfurt Stock Exchange shortly after settlement, subject to final approval of the prospectus by the CSSF in Luxembourg.

After the tap issue, the total amount outstanding of Mogo Finance’s 9.50% corporate bonds 2018/2022 (XS1831877755) amounts to EUR 75 million.

KNG Securities LLP, ABG Sundal Collier AB, Bankhaus Scheich Wertpapierspezialist AG, BlueOrange Bank AS, Gottex Brokers SA and STX Fixed Income B.V. accompanied the transaction. Aalto Capital acted as financial advisor and global coordinator to the Group.

*Edgars Egle, CEO of the Group, commented:*

"We are pleased to see our investor base expanding with this successful tap issue of our Eurobond. This tap shows deep investor support and understanding of our ambition to improve Mogo Finance profitability by continuous financial cost optimizing among other initiatives and actions. Tap proceeds will be used to refinance existing more expensive loans from a peer to peer marketplace, so-called Mintos debt. This tap issue and benefits it brings to Mogo Finance is a boost to our abilities towards strengthening the leading position in European second-hand financing sector."

 

For more information, please contact:

Mogo Finance (CFO)  Email: maris.kreics@mogofinance.com

Maris Kreics  +371 66 900 900

 

Aalto Capital  Email: sven.pauly@aaltocapital.com

Sven Pauly  +49 89 898 67 77 0

 

*Notes to Editors:*

Mogo Finance is one of largest and fastest growing secured used car financing companies in Europe. Recognizing the niche in used car financing underserved by traditional lenders, Mogo Finance has expanded its operations to 12 countries issuing over EUR 320 million up to date and running a net loan portfolio over EUR 130 million. Mogo offers secured loans up to EUR 15,000 with maximum tenor of 84 months making used car financing process convenient, both for its customers and partners. Wide geographical presence makes Mogo unique over its rivals and diversifies revenue streams.

Mogo Finance operates through its own branch network, more than 1,500 partner locations and strong online presence. Physical footprint makes Mogo Finance top of mind brand in used car financing. Established in 2012, headquartered in Riga, Latvia and operates in: Latvia, Estonia, Lithuania, Georgia, Poland, Romania, Bulgaria, Moldova, Albania, Belarus, Armenia and Ukraine.

www.mogofinance.com

*IMPORTANT INFORMATION*

The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States, Australia, Canada, Hong Kong, Japan, New Zealand, South Africa or any other countries or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. Persons into whose possession this announcement may come are required to inform themselves of and observe all such restrictions. None of Mogo Finance, KNG Securities LLP, ABG Sundal Collier AB, Bankhaus Scheich Wertpapierspezialist AG, BlueOrange Bank AS, Gottex Brokers SA and STX Fixed Income B.V. or their respective representatives accept any legal responsibility for any violation by any person, whether or not the persons contemplating investing in or divesting Mogo’s securities, including the bonds, are aware of such restrictions.

This announcement does not constitute an offer of securities for sale in the United States. The bonds have not been and will not be registered under the Securities Act or under the applicable securities laws of any state of the United States and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

This announcement constitutes advertising material and is meant as preliminary information about an upcoming securities offering by the Issuer for sounding general investor interest. This document in particular does not constitute a prospectus for the purposes of Directive 2003/71/EC, as amended (the “*Prospectus Directive*”) and does not constitute a public offer of securities in any member state of the European Economic Area (the “*EEA*”).

This announcement does not constitute an offer of bonds to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the bonds. Accordingly, this announcement is not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of this announcement as a financial promotion may only be distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as “Relevant Persons”). Any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this announcement or any of its contents.

PROFESSIONAL INVESTORS ONLY – Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as the bonds do not constitute packaged products and will be offered to eligible counterparties and professional clients only.

  Reported by GlobeNewswire 15 hours ago.

Ageas and BlackRock: Transparency notification

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*In accordance with the rules on financial transparency*, Blackrock has notified Ageas on 8 November 2018 that, on 7 November 2018, its shareholding stands at 4.98%.*

 

Reason for the notification
Acquisition or disposal of voting securities or voting rights

Notification by
A parent undertaking or a controlling person

Persons subject to the notification requirement

BlackRock, Inc. 55 East 52nd Street, New York, NY, 10055, U.S.A.
BlackRock (Netherlands) B.V. Rembrandt Tower, 17th floor, Amstelplein, Amsterdam, Netherlands
BlackRock (Singapore) Limited 20 Anson Road #18-01, Singapore, 79912, Singapore
BlackRock Advisors (UK) Limited 12 Throgmorton Avenue, London, EC2N 2DL, U.K.
BlackRock Advisors, LLC 100 Bellevue Parkway, Wilmington, DE, 19809, U.S.A.
BlackRock Asset Management Canada Limited 161 Bay Street, Suite 2500, Toronto, Ontario, M5J 2S1, Canada
BlackRock Asset Management Deutschland AG Max-Joseph-Straße 6, Munich, 80333, Germany
BlackRock Asset Management North Asia Limited 15/F, 16/F, 17/F Citibank Tower & 17/F ICBC Tower, 3 Garden Road, Central, Hong Kong
BlackRock Capital Management, Inc. 100 Bellevue Parkway, Wilmington, 19809, U.S.A.
BlackRock Financial Management, Inc. 55 East 52nd Street, New York, NY, 10055, U.S.A.
BlackRock Fund Advisors 400 Howard Street, San Francisco, CA, 94105, U.S.A.
BlackRock Institutional Trust Company, National Association 400 Howard Street, San Francisco, CA, 94105, U.S.A.
BlackRock International Limited Exchange Place One, 1 Semple Street, Edinburgh, EH3 8BL, U.K.
BlackRock Investment Management (Australia) Limited Level 37, Chifley Tower, 2 Chifley Square, Sydney NSW 2000 Australia
BlackRock Investment Management (UK) Limited 12 Throgmorton Avenue, London, EC2N 2DL, U.K.
BlackRock Investment Management, LLC 1 University Square Drive, Princeton, NJ, 8540, U.S.A.
BlackRock Japan Co., Ltd. 1-8-3 Marunouchi Chiyoda-ku, Trust Tower Main, Tokyo, 100-8217, Japan

Date on which the threshold is crossed
7 November 2018

Threshold that is crossed (in %)
5 %

Denominator
203,022,199

Additional information
The disclosure obligation arose due to total holdings in voting rights for BlackRock, Inc. going below 5%.

This press release and the notifications received by Ageas are available on the website.

*Ageas* is a listed international insurance Group with a heritage spanning 190 years. It offers Retail and Business customers Life and Non-Life insurance products designed to suit their specific needs, today and tomorrow. As one of Europe's larger insurance companies, Ageas concentrates its activities in Europe and Asia, which together make up the major part of the global insurance market. It operates successful insurance businesses in Belgium, the UK, Luxembourg, France, Portugal, Turkey, China, Malaysia, India, Thailand, Vietnam, Laos, Cambodia, Singapore, and the Philippines through a combination of wholly owned subsidiaries and long term partnerships with strong financial institutions and key distributors. Ageas ranks among the market leaders in the countries in which it operates. It represents a staff force of over 50,000 people and reported annual inflows close to EUR 34 billion in 2017 (all figures at 100%).

*Attachment*

· Read the full press release.pdf Reported by GlobeNewswire 14 hours ago.

$25 Billion Cannabis Market Complicated by Lack of Federal Legality

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U.S. cannabis business operators face unique challenges across every facet of the legal cannabis market

Washington, Nov. 09, 2018 (GLOBE NEWSWIRE) -- New Frontier Data, the authority in data, analytics and business intelligence on the global cannabis industry, in partnership with CohnReznick, one of the largest accounting, tax and advisory firms in the United States*, *releases its latest report, *The Cannabis Accounting & Financial Management Report: 2018-2019 Best Practices.* The report examines the rapidly evolving financial dynamics of the booming cannabis industry, including surging investments, consolidation, tax implications, under-banking, real estate and more, presenting the case for and defining accounting best practices for the cannabis industry.“Despite a growing majority of Americans and state governments supporting cannabis legalization, its federal prohibition creates unique challenges for cannabis businesses already trying to keep up with a fast-growing emerging industry. Investors and operators in the industry and others seeking to enter it should understand the complexities of running any legally compliant cannabis business,” said Giadha Aguirre de Carcer, Founder and CEO of New Frontier Data.

The financial challenges facing cannabis business operators detailed in the report, include:

· All plant-touching businesses are liable for taxes under Internal Revenue Code §250E
· The 2017 Tax Cuts and Jobs Act afforded some breathing room to cannabis businesses
· Lowering operational costs is not just good business, it can be a source of competitive advantage
· Cost-segregation studies offer an effective way to minimize tax liabilities
· Operating a cash-based cannabis business creates additional complexity, and security risks
· As company valuations rise, thorough due diligence becomes more important
· Cannabis real estate is booming, but it is not without risks
· With international markets quickly opening, this is the dawn of a global cannabis industry

“The challenges identified in this report are unlike those faced by any other industry, which is why we felt the need to create a set of best practices cannabis business operators can turn to as they strive for compliance with all applicable tax and financial laws. We hope we can ease the burden of the many owners, operators and accountants who have ventured into the rapidly evolving cannabis industry and now face a very unique set of financial management challenges,” said Michael Harlow, CPA, Partner, CohnReznick.

Visit newfrontierdata.com/financial-management to download the full report - *The Cannabis Accounting & Financial Management Report: 2018-2019 Best Practices*. New Frontier Data’s online intelligence portal, Equio, provides readers with reports on global markets and a series of country profiles which offer an introduction to various markets, trends and recent investment activities in the cannabis industry.

*About New Frontier Data:*
New Frontier Data is an independent, technology-driven analytics company specializing in the cannabis industry. It offers vetted data, actionable business intelligence and risk management solutions for investors, operators, researchers and policymakers. New Frontier Data’s reports and data have been cited in over 69 countries around the world to inform industry leaders. Founded in 2014, New Frontier Data is headquartered in Washington, D.C. with additional offices in Denver, CO, London, UK, Bogota, Colombia, and Hong Kong. 

New Frontier Data does not take a position on the merits of cannabis legalization. Rather, its mission and mandate are to inform cannabis-related policy and business decisions through rigorous, issue-neutral and comprehensive analysis of the legal cannabis industry worldwide. For more information about New Frontier Data please visit: http://www.NewFrontierData.com.* *

*About CohnReznick:*
CohnReznick LLP is one of the top accounting, tax, and advisory firms in the United States, combining the deep resources of a national firm with the hands-on, agile approach that today’s dynamic business environment demands. With diverse industry expertise, the Firm provides companies with the insight and experience to help them break through and seize growth opportunities. The Firm, with origins dating back to 1919, is headquartered in New York, NY with 2,700 employees in offices nationwide. CohnReznick is a member of Nexia International, a global network of independent accountancy, tax, and business advisors. For more information or media inquiries, please visit www.cohnreznick.com or contact Julie Rogers Murawski at 973-364-6693 or Julie.Murawski@CohnReznick.com.

*Attachment*

· CRPrdImg-600x786

CONTACT: Nick Olsen
PReturn for New Frontier Data
1-844-420-3882 ext. 3
media@newfrontierdata.com Reported by GlobeNewswire 12 hours ago.

GNC Holdings, Inc. Reports Third Quarter 2018 Results

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· Closes on $100 million investment from Harbin Pharmaceutical· Same store sales decreased 2.1%; excluding impact of loyalty points redeemed, same store sales decreased 1.3%· Net loss of $8.6 million; adjusted net income of $2.1 million· Adjusted EBITDA of $50.1 million

PITTSBURGH, Nov. 09, 2018 (GLOBE NEWSWIRE) -- GNC Holdings, Inc. (NYSE: GNC) (the “Company”) reported consolidated revenue of $580.2 million in the third quarter of 2018, compared with consolidated revenue of $613.0 million in the third quarter of 2017.  Revenue in the prior year quarter included $20.8 million related to Lucky Vitamin, which was sold on September 30, 2017.

Same store sales decreased 2.1% in domestic company-owned stores (including GNC.com) in the third quarter of 2018.  Excluding the impact of higher loyalty points redemption in the current quarter compared with the prior year quarter as the program matures, same store sales decreased 1.3%.  In domestic franchise locations, same store sales decreased 4.1%.

For the third quarter of 2018, the Company reported a net loss of $8.6 million compared with net income of $21.1 million in the prior year quarter. Diluted loss per share was $0.10 in the current quarter compared with diluted earnings per share ("EPS") of $0.31 in the prior year quarter.  Excluding the non-cash long-lived asset impairment and other store closing charges of $14.6 million in the current quarter and other expenses outlined in the table below, adjusted net income was $2.1 million in the current quarter compared with adjusted net income of $21.8 million in the prior year quarter, and adjusted EPS was $0.02 in the current quarter compared with $0.32 in the prior year quarter.

Adjusted EBITDA, as defined and reconciled to net (loss) income in the table below, was $50.1 million in the current quarter compared with $62.1 million in the prior year quarter.

The Company also announced the completion of the funding of a $100 million investment by Harbin Pharmaceutical Group Co., Ltd. (“Harbin”) in GNC. GNC has issued 100,000 shares of convertible preferred stock to Harbin in connection with the funding of the first tranche of the previously announced $300 million strategic investment in GNC by Harbin. Harbin has agreed to fund an additional $50 million investment by December 28, 2019 and the final tranche of approximately $150 million by February 13, 2019. GNC and Harbin will complete the formation of their previously announced joint ventures in Hong Kong and China upon the funding of the final tranche of Harbin’s investment in GNC.

“During the third quarter, although our comparable same store sales were softer than Q2, we demonstrated our ability to respond to market dynamics and drive sales improvements progressively as we moved through the quarter,” said Ken Martindale, GNC’s chairman and CEO. “With the finalized terms of our partnership with Harbin, we have completed the first important step in strengthening our capital structure and accelerating our expansion in China.  Moving forward we are focusing on continuing the strategy of repositioning our business and executing our strategic plan.”

Zhang Zhenping, Chairman of Harbin, commented, “This partnership will enable us to leverage Harbin’s leadership position in China to accelerate GNC’s growth and expansion and deliver GNC products and solutions to millions.”

*Key Updates*

· As we focus on optimizing profitability, we performed a detailed review of our store portfolio and identified approximately 700-900 stores in the U.S. and Canada that will be closed within the next three years at the end of their lease terms. This review also identified other stores in which we are considering alternatives such as seeking lower rent or a shorter term.
 
· The International segment continued to grow with an increase in sales of 6.1%, driven by 1.5% same store sales for our franchise business.
 
· At the end of September, we launched the nature-inspired Earth Genius product line that spans multiple categories and TamaFlex, an exclusive blend of botanicals proven effective for joint health.
 
· GNC brand mix for domestic system-wide sales increased to 52% compared with 45% in the third quarter of 2017, and 50% in the second quarter of 2018.
 
· Increase in loyalty membership of 10.7% in the current quarter compared to June 30, 2018; now 16.2 million members, including approximately 1.0 million members enrolled in PRO Access.

*Segment Operating Performance*

U.S. & Canada

Revenues in the U.S. and Canada segment decreased $15.9 million, or 3.2%, to $476.5 million for the three months ended September 30, 2018 compared with $492.4 million in the prior year quarter. E-commerce sales were 7.2% of U.S. and Canada revenue for the three months ended September 30, 2018 compared with 6.2% in the prior year quarter.

The decrease in revenue compared with the prior year quarter was primarily due to the impact of company-owned net store closures, which contributed an approximate $9 million decrease in revenue, and negative same store sales of 2.1%, which resulted in a revenue decrease of $7.7 million.  In addition, domestic franchise revenue declined $3.6 million due to a decrease in retail same store sales as well as a reduction in the number of franchise stores. Partially offsetting the above decreases was an increase of $7.5 million relating to the Company’s loyalty programs; PRO Access paid membership fees and the myGNC Rewards change in deferred points liability.

Operating income decreased $20.4 million to $11.5 million, or 2.4% of segment revenue, for the three months ended September 30, 2018 compared with $31.9 million, or 6.5% of segment revenue, for the same period in 2017. In the current quarter we recorded long-lived asset impairment and other store closing charges totaling $14.6 million, and in the prior year quarter we recorded long-lived asset impairment charges of $3.9 million.  Excluding these items and immaterial gains on refranchising in the current quarter and prior year quarter, operating income was $26.0 million, or 5.5% of segment revenue, in the current quarter, compared with $35.6 million, or 7.2% of segment revenue, in the prior year quarter.  The decrease in operating income percentage was primarily due to lower domestic retail product margin rate as a result of adjustments to promotional pricing in response to the competitive environment in the early portion of the quarter, lower vendor funding and impacts from the new loyalty program, partially offset by a higher sales mix of proprietary product which contribute higher margins relative to third-party sales.

International

Revenues in the International segment increased $2.9 million, or 6.1%, to $51.4 million for the three months ended September 30, 2018 compared with $48.5 million in the prior year quarter primarily due to an increase in sales to our international franchisees of $3.9 million with an increase in same store sales of 1.5%.

Operating income increased $0.3 million to $16.5 million, or 32.0% of segment revenue, for the three months ended September 30, 2018 compared with $16.2 million, or 33.4% of segment revenue for the same period in 2017.  Excluding joint venture start-up costs of $1.0 million in the current quarter, of which $0.6 million related to costs incurred in the first six months of 2018 within corporate costs and was reclassified to International in the current quarter, operating income was $17.4 million, or 33.9% of segment revenue, compared with $16.2 million, or 33.4% of segment revenue, in the prior year quarter.  The increase in operating income percentage was primarily due to a higher mix of franchise sales, which contribute higher margins relative to China sales.

Manufacturing / Wholesale

Revenues in the Manufacturing / Wholesale segment, excluding intersegment sales, increased $1.0 million, or 1.9%, to $52.3 million for the three months ended September 30, 2018 compared with $51.3 million in the prior year quarter primarily due to an increase of $1.9 million in third-party contract manufacturing sales. Intersegment sales increased $5.7 million reflecting the Company's increasing focus on proprietary products.

Operating income decreased $2.3 million, or 12.0%, to $16.9 million for the three months ended September 30, 2018 compared with $19.2 million in the prior year quarter.  Operating income as a percentage of segment revenue decreased from 17.5% in the prior year quarter to 14.5% in the current quarter primarily due to a lower margin rate from third-party contract manufacturing, partially offset by higher intersegment sales, which contribute higher margins.

*Year-to-Date Performance*

For the nine months ended September 30, 2018, the Company reported consolidated revenue of $1,805.7 million, a decrease of $112.4 million compared with consolidated revenue of $1,918.1 million for the same period in 2017. Revenue in the prior year period includes $66.2 million from Lucky Vitamin, which was sold on September 30, 2017, and $23.0 million recognition of deferred revenue related to the U.S. Gold Card Member Pricing program, which was terminated in December 2016.

Same store sales decreased 0.6% in domestic company-owned stores (including GNC.com sales) for the first nine months of 2018, and excluding the impact of loyalty points redeemed same store sales increased 0.8%. In domestic franchise locations, same store sales decreased 3.3%.

For the nine months ended September 30, 2018, the Company reported net income of $10.9 million and EPS of $0.13 compared with net income of $62.4 million and EPS of $0.91 for the nine months ended September 30, 2017. Excluding the expenses outlined in the table below, adjusted EPS was $0.47 and $1.12 for the nine months ended September 30, 2018 and 2017, respectively.

*Cash Flow and Liquidity Metrics*

For the nine months ended September 30, 2018, the Company generated net cash from operating activities of $55.7 million compared with $149.6 million for the nine months ended September 30, 2017. The decrease was primarily due to the comparative effect of a $48.8 million inventory reduction in the prior year period as part of the Company's supply chain optimization which was launched at the end of 2016.  The remaining decrease was primarily related to reduced operating performance, the refinancing of the long-term debt, which resulted in $16.3 million in fees paid to third-parties and higher interest payments, partially offset by lower tax payments.

For the nine months ended September 30, 2018, the Company generated $60.6 million in free cash flow, compared with $124.8 million for the nine months ended September 30, 2017. The Company defines free cash flow as cash provided by operating activities (excluding fees relating to the debt refinancing) less cash used in investing activities. At September 30, 2018, the Company’s cash and cash equivalents were $33.3 million and debt was $1.2 billion. No borrowings were outstanding on the Revolving Credit Facility.

*Conference Call*

GNC has scheduled a live webcast to report its third quarter 2018 financial results on November 9, 2018 at 4:30 p.m. ET. To participate on the live call, listeners in North America may dial (888) 599-8686 and international listeners may dial (323) 794-2551.  In addition, a live webcast of the call will be available on www.gnc.com via the Investor Relations section under “About GNC.”  A replay of this webcast will be available through November 23, 2018.

*About Us*

GNC Holdings, Inc.  (NYSE: GNC) - is a global health and wellness brand that helps people live well. The company is known and trusted for quality performance and nutritional supplements, and its broad assortment features innovative private-label products as well as national recognized third-party brands, many of which are exclusive to GNC.

GNC’s diversified, multi-channel business model has global reach and a well-recognized, trusted brand, and provides customers with excellent service, product knowledge and solutions. The company reaches consumers worldwide through company-owned retail locations, and domestic and international franchise activities, and e-commerce. GNC also has exceptional innovation and product development capabilities, manufactures products for third parties and generates revenue through corporate partnerships. As of September 30, 2018, GNC had approximately 8,500 locations, of which approximately 6,400 retail locations are in the United States (including approximately 2,200 Rite Aid franchise store-within-a-store locations) and franchise operations in approximately 50 countries.

*Forward-Looking Statements Involving Known and Unknown Risks and Uncertainties*

This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the Company’s financial condition, results of operations and business that is not historical information. Forward-looking statements can be identified by the use of terminology such as “subject to,” “believes,” “anticipates,” “plans,” “expects,” “intends,” “estimates,” “projects,” “may,” “will,” “should,” “can,” the negatives thereof, variations thereon and similar expressions, or by discussions regarding dividend, share repurchase plan, strategy and outlook. While GNC believes there is a reasonable basis for its expectations and beliefs, they are inherently uncertain. The Company may not realize its expectations and its beliefs may not prove correct. Many factors could affect future performance and cause actual results to differ materially from those matters expressed in or implied by forward-looking statements, including but not limited to unfavorable publicity or consumer perception of the Company's products; costs of compliance and any failure on management's part to comply with new and existing governmental regulations governing our products; limitations of or disruptions in the manufacturing system or losses of manufacturing certifications; disruptions in the distribution network; conditions to the subsequent closings of the Harbin transaction may not be satisfied; the occurrence of any event, change or other circumstances that could give rise to the termination of the Securities Purchase Agreement with Harbin; other risks to consummation of the Harbin transaction, including the risk that the Harbin transaction, the first subsequent closing and/or the second subsequent closing will not be consummated within the expected time period or at all; or failure to successfully execute the Company's growth strategy, including any inability to expand franchise operations or attract new franchisees, any inability to expand company-owned retail operations, any inability to grow the international footprint, any inability to expand the e-commerce businesses, or any inability to successfully integrate businesses that are acquired. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Actual results could differ materially from those described or implied by such forward-looking statements. For a listing of factors that may materially affect such forward-looking statements, please refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

*Same Store Sales*

Same store sales for company-owned stores include point-of-sale retail sales from all domestic stores which have been operating for twelve full months following the opening period. The Company is an omnichannel retailer with capabilities that allow a customer to use more than one channel when making a purchase, including in-store and through e-commerce channels which include its wholly-owned website GNC.com and third party websites (the sales from which are included in the GNC.com business unit) where product assortment and price are controlled by the Company, in which purchases are fulfilled by direct shipment to the customer from one of the Company's distribution facilities as well as third party e-commerce vendors. In-store sales are reduced by sales originally consummated online or through mobile devices and subsequently returned in-store. Sales of membership programs, including the new PRO Access loyalty program and former Gold Card program, which is no longer offered in the U.S., as well as the net change in the deferred points liability associated with the myGNC Rewards program, are excluded from same store sales.

Same store sales are calculated on a daily basis for each store and exclude the net sales of a store for any period if the store was not open during the same period of the prior year. When a store’s square footage has been changed as a result of reconfiguration or relocation in the same mall or shopping center, the store continues to be treated as a same store. If, during the period presented, a store was closed, relocated to a different mall or shopping center, or converted to a franchise store or a company-owned store, sales from that store up to and including the closing day or the day immediately preceding the relocation or conversion are included as same store sales as long as the store was open during the same period of the prior year. Corporate stores are included in same store sales after the thirteenth month following a relocation or conversion to a company-owned store.

The Company also provides retail comparable same store sales of its franchisees as well as its Canada business if meaningful to current results. While retail sales of franchisees are not included in the Company's Consolidated Financial Statements, the metric serves as a key performance indicator for its franchisees, which ultimately impacts wholesale sales, royalties and fees received from franchisees. The Company computes same store sales for its franchisees and Canada business consistent with the description of corporate same store sales above. Same store sales for international franchisees and Canada exclude the impact of foreign exchange rate changes relative to the U.S. dollar.

*Non-GAAP Measures*

Management has included non-GAAP financial measures in this press release because it believes they represent an effective supplemental means by which to measure the Company’s operating performance, including adjusted net income, adjusted EPS, adjusted EBITDA, segment operating income, and segment operating income as a percentage of segment revenue, adjusted as reflected in this release, and free cash flow.  Adjusted EBITDA is defined as net income plus interest expense, net, loss on debt refinancing, income taxes and depreciation and amortization and certain other items as reflected in this release.

Management believes that these measures are useful to investors as they enable the Company and its investors to evaluate and compare the Company’s results from operations in a more meaningful and consistent manner by excluding specific items which are not reflective of ongoing operating results and that can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate and capital investments.

However, these measures are not measurements of the Company’s performance under GAAP and should not be considered as alternatives to earnings per share, net income or any other performance measures derived in accordance with GAAP, or as an alternative to GAAP cash flow from operating activities, or as a measure of the Company’s profitability or liquidity.  For more information, see the attached reconciliations of non-GAAP financial measures.

*GNC HOLDINGS, INC. AND SUBSIDIARIES*
*Consolidated Statements of Operations*
*(in thousands, except per share amounts)*

  *Three months ended
September 30,*   *Nine months ended
September 30,*
  *2018 * * * *2017* * * *2018 * * * *2017 *
               
  *(unaudited)*
*Revenue* $ 580,185     $ 612,953     $ 1,805,662     $ 1,918,139  
Cost of sales, including warehousing, distribution and occupancy 395,483     411,661     1,206,351     1,277,202  
*Gross profit* 184,702     201,292     599,311     640,937  
Selling, general, and administrative 149,903     156,051     469,164     481,618  
Long-lived asset impairments 14,556     3,861     14,556     23,217  
Other loss (income), net 282     1,579     357     (40 )
*Operating income* 19,961     39,801     115,234     136,142  
Interest expense, net 35,732     16,339     90,448     48,300  
Loss on debt refinancing —     —     16,740     —  
*(Loss) income before income taxes* (15,771 )   23,462     8,046     87,842  
Income tax (benefit) expense (7,181 )   2,406     (2,895 )   25,398  
*Net (loss) income* $ (8,590 )   $ 21,056     $ 10,941     $ 62,444  
*(Loss) earnings per share:*              
Basic $ (0.10 )   $ 0.31     $ 0.13     $ 0.91  
Diluted $ (0.10 )   $ 0.31     $ 0.13     $ 0.91  
*Weighted average common shares outstanding:*              
Basic 83,412     68,354     83,326     68,296  
Diluted 83,412     68,569     83,431     68,411  
                       
                       

*GNC HOLDINGS, INC. AND SUBSIDIARIES*
*Reconciliation of Net (Loss) Income and Diluted EPS to Adjusted Net Income and Adjusted EPS*
*(in thousands, except per share data)*

  *Three months ended September 30,*   *Nine months ended September 30,*
  *2018*   *2017*   *2018*   *2017*
  *Net *
*(Loss) *
*Income*   *Diluted *
*EPS*   *Net
I**ncome*   *Diluted *
*EPS*   *Net *
*Income*   *Diluted *
*EPS*   *Net *
*Income*   *Diluted *
*EPS*
                               
  *(unaudited)*
*Reported* $ (8,590 )   $ (0.10 )   $ 21,056     $ 0.31     $ 10,941     $ 0.13     $ 62,444     $ 0.91  
Gains on refranchising (68 )   —     (190 )   —     (276 )   —     (314 )   —  
Retention ^(1) 2,116     0.03     —     —     5,155     0.05     —     —  
Loss on debt refinancing —     —     —     —     16,740     0.20     —     —  
Joint venture start-up costs^ (2) 341     —     —     —     973     0.01     —     —  
SG&A ^(3) 1,300     0.02     4,062     0.06     1,300     0.02     6,159     0.09  
Long-lived asset impairments^ (4) 14,556     0.17     3,861     0.06     14,556     0.17     23,217     0.34  
Loss on sale of Lucky Vitamin —     —     1,696     0.02     —     —     1,696     0.02  
Tax effect of items above (4,010 )   (0.06 )   (2,685 )   (0.04 )   (6,721 )   (0.07 )   (10,577 )   (0.15 )
Reduction to valuation allowance on DTA ^(5) —     —     (5,953 )   (0.09 )   —     —     (5,953 )   (0.09 )
Discrete tax benefit ^(6) (3,583 )   (0.04 )   —     —     (3,583 )   (0.04 )   —     —  
*Adjusted* $ 2,062     $ 0.02     $ 21,847     $ 0.32     $ 39,085     $ 0.47     $ 76,672     $ 1.12  
                               
*Weighted average diluted common shares outstanding* 83,515         68,569         83,431         68,411      
                                       
                                       

*Reconciliation of Net (Loss) Income to Adjusted EBITDA*
*(in thousands)*

  *Three months ended September 30,*   *Nine months ended September 30,*
  *2018*   *2017*   *2018*   *2017*
                               
  *(unaudited)*
*Net (loss) income* $ (8,590 )   $ 21,056     $ 10,941     $ 62,444  
Income tax (benefit) expense (7,181 )   2,406     (2,895 )   25,398  
Interest expense, net 35,732     16,339     90,448     48,300  
Loss on debt refinancing —     —     16,740     —  
Depreciation and amortization ^(7) 11,896     12,834     36,002     43,688  
Retention ^(1) 2,116     —     5,155     —  
Joint venture start-up costs^ (2) 341     —     973     —  
SG&A ^(3) 1,300     4,062     1,300     6,159  
Long-lived asset impairments^ (4) 14,556     3,861     14,556     23,217  
Loss on sale of Lucky Vitamin —     1,696     —     1,696  
Gains on refranchising (68 )   (190 )   (276 )   (314 )
*Adjusted EBITDA* $ 50,102     $ 62,064     $ 172,944     $ 210,588  
                               

(1) Relates to an incentive program to retain senior executives and certain other key personnel below the executive level who are critical to the execution and success of the Company's strategy.  The total amount awarded was approximately $10 million, which vests in four installments of 25% each over the next two years.  Vesting dates are on the earlier of February 2019 or the closing of the Harbin transaction, February 2019, August 2019 and February 2020.

(2) Relates to legal and other start-up costs incurred in connection with the formation of a commercial joint venture in China with Harbin Pharmaceutical Group.

(3) The current quarter includes a legal-related charge. The prior year quarter includes $2.8 million of executive placement costs primarily related to make-whole stock-based compensation awards including the impact of accelerated vesting associated with a Section 83(b) tax election and $1.3 million in legal-related charges. Prior year-to-date also includes a $2.1 million legal charge related to the outcome of litigation the Company pursued for a potential breach under its UK license agreement.(4) The current quarter includes pre-tax impairment of long-lived assets associated with underperforming stores and other store closing costs identified in connection with the Company's detailed review of its store portfolio. The prior year quarter includes pre-tax impairment of long-lived asset impairments associated with underperforming stores.  Prior year-to-date also includes pre-tax non-cash impairment of goodwill and other long-lived assets associated with its Lucky Vitamin e-commerce business.

(5) Relates to a reduction to a valuation allowance based on a change in circumstances, which caused a change in judgment about the realizability of a deferred tax asset related to net operating losses.

(6) Relates to discrete tax benefits associated with finalization of the Company’s 2017 federal income tax return.

(7) The decrease in the current year compared with the prior year was primarily due to the prior year accelerated depreciation associated with the re-platforming of the GNC.com website from a third-party to a cloud-based solution, as well as long-lived asset impairments recorded within the U.S. and Canada segment for certain of our underperforming stores in the third and fourth quarter of 2017.

*GNC HOLDINGS, INC. AND SUBSIDIARIES*
*U.S. Company-Owned Same Store Sales (including GNC.com)*

  *2018*   *2017*
  *Q1 
3/31*   *Q2 
6/30*   *Q3 
9/30*   *Q1 
3/31*   *Q2 
6/30*   *Q3 
9/30*
*Contribution to same store sales:*                      
Domestic retail same store sales (1.2 )%   (4.2 )%   (3.4 )%   (3.6 )%   (0.5 )%   (1.2 )%
GNC.com contribution to same store sales 1.7 %   3.8 %   1.3 %   (0.3 )%   (0.4 )%   2.5 %
*Total same store sales* 0.5 %   (0.4 )%   (2.1 )%   (3.9 )%   (0.9 )%   1.3 %
                                   
                                   

*GNC HOLDINGS, INC. AND SUBSIDIARIES*
*Consolidated Balance Sheets*
*(in thousands)*

  *September 30,*   *December 31,*
  *2018*   *2017*
                               
  *(unaudited)*
*Current assets:*              
Cash and cash equivalents $ 33,348     $ 64,001  
Receivables, net 131,951     126,650  
Inventory 489,639     485,732  
Prepaid and other current assets 76,536     66,648  
*Total current assets* 731,474     743,031  
*Long-term assets:*      
Goodwill 140,844     141,029  
Brand name 324,400     324,400  
Other intangible assets, net 94,461     99,715  
Property, plant and equipment, net 159,136     186,562  
Other long-term assets 29,272     25,026  
*Total long-term assets* 748,113     776,732  
*Total assets* $ 1,479,587     $ 1,519,763  
*Current liabilities:*      
Accounts payable $ 159,100     $ 153,018  
Current debt 204,480     —  
Deferred revenue and other current liabilities 121,475     114,081  
*Total current liabilities* 485,055     267,099  
*Long-term liabilities:*      
Long-term debt 1,040,646     1,297,023  
Deferred income taxes 43,090     56,060  
Other long-term liabilities 81,479     85,502  
*Total long-term liabilities* 1,165,215     1,438,585  
*Total liabilities* 1,650,270     1,705,684  
*Stockholders’ deficit:*      
Common stock 130     130  
Additional paid-in capital 1,006,121     1,001,315  
Retained earnings 554,797     543,814  
Treasury stock, at cost (1,725,349 )   (1,725,349 )
Accumulated other comprehensive loss (6,382 )   (5,831 )
*Total stockholders’ deficit* (170,683 )   (185,921 )
*Total liabilities and stockholders’ deficit* $ 1,479,587     $ 1,519,763  
               
               

*GNC HOLDINGS, INC. AND SUBSIDIARIES*
*Consolidated Statements of Cash Flows*
*(in thousands)*

               
  *Nine months ended
September 30,*
  *2018*   *2017*
                               
  *(unaudited)*
*Net income* $ 10,941     $ 62,444  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization expense 36,002     43,688  
Amortization of debt costs 14,583     9,893  
Stock-based compensation 5,102     6,025  
Long-lived asset impairments 14,556     23,217  
Gains on refranchising (276 )   (314 )
Loss on debt refinancing 16,740     —  
Third-party fees associated with refinancing (16,322 )   —  
Changes in assets and liabilities:      
(Increase) decrease in receivables (6,080 )   1,204  
(Increase) decrease in inventory (5,794 )   45,753  
Increase in prepaid and other current assets (6,552 )   (5,205 )
Increase (decrease) in accounts payable 6,860     (19,732 )
Decrease in deferred revenue and accrued liabilities (10,565 )   (19,891 )
Other operating activities (3,506 )   2,486  
*Net cash provided by operating activities* 55,689     149,568  
       
*Cash flows from investing activities:*      
Capital expenditures (13,355 )   (26,210 )
Refranchising proceeds 2,136     3,410  
Store acquisition costs (220 )   (1,930 )
*Net cash used in investing activities* (11,439 )   (24,730 )
       
*Cash flows from financing activities:*      
Borrowings under revolving credit facility 261,500     177,500  
Payments on revolving credit facility (261,500 )   (256,500 )
Payments on Tranche B-1 Term Loan (3,413 )   (40,853 )
Payments on Tranche B-2 Term Loan (32,100 )   —  
Original Issuance Discount and revolving credit facility fees (35,235 )   —  
Deferred fees associated with pending equity transaction (3,443 )   —  
Minimum tax withholding requirements (296 )   (252 )
*Net cash used in financing activities* (74,487 )   (120,105 )
       
Effect of exchange rate changes on cash and cash equivalents (416 )   921  
Net (decrease) increase in cash and cash equivalents (30,653 )   5,654  
Beginning balance, cash and cash equivalents 64,001     34,464  
Ending balance, cash and cash equivalents $ 33,348     $ 40,118  
               
               

*GNC HOLDINGS, INC. AND SUBSIDIARIES*
*Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow*
*(in thousands)*

  *Nine months ended
September 30,*
  *2018*   *2017*
               
  *(unaudited)*
               
*Net cash provided by operating activities* $ 55,689     $ 149,568  
Capital expenditures (13,355 )   (26,210 )
Refranchising proceeds 2,136     3,410  
Store acquisition costs (220 )   (1,930 )
Third-party fees associated with refinancing 16,322     —  
*Free cash flow* $ 60,572     $ 124,838  
       
       

*GNC HOLDINGS, INC. AND SUBSIDIARIES*
*Segment Financial Data*
* (in thousands)*

                               
  *Three months ended
September 30,*   *Nine months ended 
September 30,*
  *2018*   *2017*   *2018*   *2017*
                               
  *(unaudited)*
*Revenue:*                              
U.S. and Canada $ 476,519     $ 492,383     $ 1,506,250     $ 1,556,818  
International 51,407     48,458     140,107     132,022  
Manufacturing / Wholesale:              
Intersegment revenues 63,695     58,037     193,596     175,335  
Third-party 52,259     51,286     159,305     163,117  
Subtotal Manufacturing / Wholesale 115,954     109,323     352,901     338,452  
Total reportable segment revenues 643,880     650,164     1,999,258     2,027,292  
Other —     20,826     —     66,182  
Elimination of intersegment revenues (63,695 )   (58,037 )   (193,596 )   (175,335 )
*Total revenue* $ 580,185     $ 612,953     $ 1,805,662     $ 1,918,139  
*Operating income:*              
U.S. and Canada $ 11,466     $ 31,864     $ 100,559     $ 134,844  
International 16,468     16,169     46,624     46,825  
Manufacturing / Wholesale 16,869     19,168     47,722     55,072  
Total reportable segment operating income 44,803     67,201     194,905     236,741  
Corporate costs (24,732 )   (25,558 )   (79,511 )   (79,839 )
Other (110 )   (1,842 )   (160 )   (20,760 )
Unallocated corporate costs and other (24,842 )   (27,400 )   (79,671 )   (100,599 )
*Total operating income* $ 19,961     $ 39,801     $ 115,234     $ 136,142  
                               
                               

*GNC HOLDINGS, INC. AND SUBSIDIARIES*
*Consolidated Store Count Activity*

  *Nine months ended September 30,*
  *2018*   *2017*
*U.S. & Canada*      
*Company-owned^(a):*      
Beginning of period balance 3,423     3,513  
Store openings 18     47  
Acquired franchise stores^(b) 20     46  
Franchise conversions^(c) (4 )   (2 )
Store closings (174 )   (136 )
End of period balance 3,283     3,468  
*Domestic Franchise:*      
Beginning of period balance 1,099     1,178  
Store openings 10     22  
Acquired franchise stores^(b) (20 )   (46 )
Franchise conversions^(c) 4     2  
Store closings (45 )   (30 )
End of period balance 1,048     1,126  
*International^(d):*      
Beginning of period balance 2,015     1,973  
Store openings 42     207  
Store closings (89 )   (105 )
End of period balance 1,968     2,075  
*Store-within-a-store (Rite Aid):*      
Beginning of period balance 2,418     2,358  
Store openings 42     62  
Store closings ^(e) (218 )   (6 )
End of period balance 2,242     2,414  
*Total Stores* 8,541     9,083  

_______________________________________________________________________________

(a) Includes Canada.

(b) Stores that were acquired from franchisees and subsequently converted into company-owned stores.

(c) Company-owned store locations sold to franchisees.

(d) Includes franchise locations in approximately 50 countries (including distribution centers where sales are made) and company-owned stores located in Ireland and China.

(e) In 2018, store closings primarily related to Walgreens acquisition of certain Rite Aid locations.

Contacts:
Investors:  
Matt Milanovich, Senior Director - Investor Relations, Analysis & Strategy, (412) 402-7260; or
John Mills, Partner - ICR, (646) 277-1254

SOURCE:  GNC Holdings, Inc.

Web site: http://www.gnc.com Reported by GlobeNewswire 10 hours ago.

Liquidation and Dissolution of Asia Pacific Fund, Inc.

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NEW YORK, Nov. 09, 2018 (GLOBE NEWSWIRE) -- The Asia Pacific Fund, Inc. (NYSE:APB) announced today that the liquidation and dissolution of the Fund’s portfolio is being conducted in an orderly fashion pursuant to the Plan of Liquidation and Dissolution approved by the Fund’s stockholders at the 2018 Annual Meeting of Stockholders. The Fund expects to make a liquidating distribution to stockholders in February 2019.Additional details regarding the liquidation, including the day on which the books of the Fund will be closed with respect to stockholders and trading on the New York Stock Exchange will cease as well as the precise date on which the liquidating distribution is expected to occur, will be provided in one or more future press releases.

For more information, contact:

*P**r**i**s**ti**ne Advisers – 1-**888-4-ASIA-PAC (1-888-427-4272)* *or *
*v**i**a email at pbaronowski@pristineadvisers.com*

The Asia Pacific Fund, Inc. is a diversified, closed-end management investment company, organized as a Maryland corporation and is registered with the SEC under the Investment Company Act of 1940, as amended.

The investment objective of the Fund is to achieve long-term capital appreciation through investment primarily in equity securities in the Asia Pacific countries (excluding Japan). The Fund is managed by Value Partners Hong Kong Limited.

Past performance is no guarantee of future performance. An investment in the Fund is subject to certain risks, including market risk. In general, shares of closed-end funds often trade at a discount from their net asset value and at the time of sale may be trading on the exchange at a price that is more or less than the original purchase price or the net asset value. An investor should carefully consider the Fund’s investment objective, risks, charges and expenses. Please read a Fund’s disclosure documents before investing.

In addition to historical information, this release contains forward-looking statements, which may concern, among other things, domestic and foreign markets, industry and economic trends and developments and government regulation and their potential impact on the Fund’s investment portfolio. These statements are subject to risks and uncertainties, including the factors set forth in the Fund’s disclosure documents, filed with the SEC, and actual trends, developments and regulations in the future, and their impact on the Fund could be materially different from those projected, anticipated or implied.  The Fund has no obligation to update or revise forward-looking statements. Reported by GlobeNewswire 9 hours ago.
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