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Daseke Comments on Recent SEC Statement Relating to Warrants and Announces Timing for First Quarter Earnings Call

Nachrichtenquelle: globenewswire
22.04.2021, 23:15  |  141   |   |   

Company reaffirms fiscal 2021 guidance, believes correction in warrant accounting not meaningful to investment thesis in Daseke, and will likely result in an increase to 2021 GAAP net income

ADDISON, Texas, April 22, 2021 (GLOBE NEWSWIRE) -- Daseke, Inc. (NASDAQ: DSKE) (or the “Company”), the largest flatbed, specialized transportation and logistics solutions company in North America, today commented on the recent statement (the “SEC Statement”) from the Staff of the Securities and Exchange Commission (the “SEC”) concerning the accounting for warrants issued by special purpose acquisition companies (“SPACs”). Daseke’s warrants (NASDAQ: DSKEW), which expire in February 2022, are exercisable at a price of $5.75 per one-half of one share of common stock, or $11.50 per whole share.

Jason Bates, Executive Vice President and Chief Financial Officer of Daseke, commented, “While Daseke did go public through a SPAC vehicle which involved the issuance of warrants, that process was completed over four years ago. Any corrections in the accounting for those warrants will be non-operational and non-cash, and thus would have no impact on our Revenue, Operating Income, Operating Ratio, Adjusted EBITDA, Adjusted EPS, or Free Cash Flow in prior years or moving forward. Given the exercise price of Daseke’s outstanding warrants, which expire in February 2022, and the current trading price of our common shares, the accounting correction resulting from the SEC Statement will likely result in an increase to GAAP net income over the next four quarters.

We are very encouraged with the significant progress generated by our entire organization over the past 18 months and remain focused on advancing that positive operational and financial momentum. We believe our strategy to drive long-term shareholder value will continue to manifest itself over the coming quarters and years. As a result, we are reiterating our 2021 revenue and earnings outlook, which we provided on our last earnings call, and are excited to share the results of our first quarter 2021 on May 7th.”

Highlights:

  • The Company notes that GAAP net income over the next four quarters will likely increase as a result of this accounting correction
  • The Company is reaffirming full-year 2021 financial guidance, as detailed on the prior earnings call, including revenue of $1.4 to $1.5 billion and Adjusted EBITDA of $165 to $175 million
  • Daseke has followed the predominantly utilized accounting treatment for its public and private warrants from the time of its IPO
  • Daseke believes that SPACs have almost universally accounted for warrants as equity instruments; though the SEC Statement has provided clarification that these warrants should be accounted for as liabilities
  • The Company has retained a third-party valuation firm to quantify the exact financial impact of the correction, for which we provided preliminary ranges in the Form 8-K, filed with the SEC on April 22, 2021
  • The Company believes the most impactful period of this change relates to the annual and interim periods in 2018, which the Company believes has little to no bearing on the investment thesis in Daseke at present, particularly considering the significant strategic and structural changes undertaken over the past 18 months as a part of the Company’s transformation initiatives
  • The Company notes that this accounting correction will result in changes to its historical financial statements for the interim and annual periods in 2018, 2019 and 2020, but emphasizes that it will not have any effect on previously reported Revenue, Operating Income, Operating Ratio, Adjusted EBITDA, Adjusted EPS, or Free Cash Flow
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Daseke Comments on Recent SEC Statement Relating to Warrants and Announces Timing for First Quarter Earnings Call Company reaffirms fiscal 2021 guidance, believes correction in warrant accounting not meaningful to investment thesis in Daseke, and will likely result in an increase to 2021 GAAP net incomeADDISON, Texas, April 22, 2021 (GLOBE NEWSWIRE) - Daseke, …

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