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MIL-OSI: Nokia Corporation: Repurchase of own shares on 30.10.2024
Source: GlobeNewswire (MIL-OSI)

Nokia Corporation
Stock Exchange Release
30 October 2024 at 22:30 EET

Nokia Corporation: Repurchase of own shares on 30.10.2024

Espoo, Finland – On 30 October 2024 Nokia Corporation (LEI: 549300A0JPRWG1KI7U06) has acquired its own shares (ISIN FI0009000681) as follows:

Trading venue (MIC Code) Number of shares Weighted average price / share, EUR*

XHEL 1,347,700 4.45

CEUX 200,000 4.45

BATE – –

AQEU – –

TQEX – –

Total 1,547,700 4.45

* Rounded to two decimals

On 25 January 2024, Nokia announced that its Board of Directors is initiating a share buyback program to return up to EUR 600 million of cash to shareholders in tranches over a period of two years. The first phase of the share buyback program started on 20 March 2024. On 19 July 2024, Nokia decided to accelerate the share buybacks by increasing the number of shares to be repurchased during the year 2024. The post-increase repurchases in compliance with the Market Abuse Regulation (EU) 596/2014 (MAR), the Commission Delegated Regulation (EU) 2016/1052 and under the authorization granted by Nokia’s Annual General Meeting on 3 April 2024 started on 22 July 2024 and end by 31 December 2024 with a maximum aggregate purchase price of EUR 600 million for all purchases during 2024.

Total cost of transactions executed on 30 October 2024 was EUR 6,883,705. After the disclosed transactions, Nokia Corporation holds 190,407,909 treasury shares.

Details of transactions are included as an appendix to this announcement.

On behalf of Nokia Corporation

BofA Securities Europe SA

About Nokia
At Nokia, we create technology that helps the world act together.

As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs.

Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.

Inquiries:

Nokia Communications
Phone: +358 10 448 4900
Email: press.services@nokia.com
Maria Vaismaa, Global Head of External Communications

Nokia Investor Relations
Phone: +358 40 803 4080
Email: investor.relations@nokia.com

Attachment
- Daily Report 2024-10-30
The MIL Network –
January 25, 2025
MIL-OSI: Altair Signs Definitive Agreement with Siemens to be Acquired for $10.6 Billion

Source: GlobeNewswire (MIL-OSI)

TROY, Mich., Oct. 30, 2024 (GLOBE NEWSWIRE) — Altair (Nasdaq: ALTR), a global leader in computational intelligence, today announced that it has entered into a definitive agreement to be acquired by Siemens, a leading technology company focused on industry, infrastructure, mobility, and healthcare. Altair stockholders will receive $113.00 per share in cash, representing an equity value of approximately $10.6 billion. The $113.00 per share cash consideration represents a 19% premium to the closing price of Altair common stock on October 21, 2024, the last trading day prior to media speculation regarding a potential transaction, and a 13% premium to Altair’s unaffected all-time high closing price.

“This acquisition represents the culmination of nearly 40 years in which Altair has grown from a startup in Detroit to a world-class software and technology company. We have added thousands of customers globally in manufacturing, life sciences, energy and financial services, and built an amazing workforce, and innovative culture,” said James Scapa, Altair’s founder and CEO. “We believe this combination of two strongly complementary leaders in the engineering software space brings together Altair’s broad portfolio in simulation, data science, and HPC with Siemens’ strong position in mechanical and EDA design. Siemens’ outstanding technology, strategic customer relationships, and honest, technical culture is an excellent fit for Altair to continue its journey driving innovation with computational intelligence.”

“Acquiring Altair marks a significant milestone for Siemens. This strategic investment aligns with our commitment to accelerate the digital and sustainability transformations of our customers by combining the real and digital worlds. The addition of Altair’s capabilities in simulation, high performance computing, data science, and artificial intelligence together with Siemens Xcelerator will create the world’s most complete AI-powered design and simulation portfolio,” said Roland Busch, President and CEO of Siemens AG. “It is a logical next step: we have been building our leadership in industrial software for the last 15 years, most recently, democratizing the benefits of data and AI for entire industries.”

Approvals and Timing

The transaction, which was unanimously approved by the Altair Board of Directors, is expected to close in the second half of 2025, following the receipt of regulatory approvals, Altair stockholder approval and the satisfaction of customary closing conditions. Upon completion of the transaction, Altair’s common stock will no longer be listed on any public stock exchange.

Third Quarter 2024 Financial Results

In a separate press release, Altair today announced its third quarter fiscal year 2024 financial results. The press release is available on the Investor Relations section of the Company’s website. In light of the announced transaction with Siemens, Altair has cancelled its earnings conference call previously scheduled for 5:00 p.m. ET / 2:00 p.m. PT this afternoon, October 30, 2024.

Advisors

Citi and J.P. Morgan Securities LLC are serving as financial advisors to Altair, and Davis Polk & Wardwell LLP and Lowenstein Sandler LLP are serving as the Company’s legal advisors.

About Altair
Altair is a global leader in computational intelligence that provides software and cloud solutions in simulation, high-performance computing (HPC), data analytics, and AI. Altair enables organizations across all industries to compete more effectively and drive smarter decisions in an increasingly connected world – all while creating a greener, more sustainable future. To learn more, please visit www.altair.com.

About Siemens

Siemens AG (Berlin and Munich) is a leading technology company focused on industry, infrastructure, mobility, and healthcare. The company’s purpose is to create technology to transform the everyday, for everyone. By combining the real and the digital worlds, Siemens empowers customers to accelerate their digital and sustainability transformations, making factories more efficient, cities more livable, and transportation more sustainable. Siemens also owns a majority stake in the publicly listed company, Siemens Healthineers, a leading global medical technology provider shaping the future of healthcare. In fiscal 2023, which ended on September 30, 2023, the Siemens Group generated revenue of €74.9 billion and net income of €8.5 billion. As of September 30, 2023, the company employed around 305,000 people worldwide on the basis of continuing operations. Further information is available on the Internet at www.siemens.com.

Important Information and Where to Find It

This communication relates to a proposed transaction between Altair and Siemens Industry Software Inc. (“Parent”). In connection with this proposed transaction, Altair will file a Current Report on Form 8-K with further information regarding the terms and conditions contained in the definitive transaction agreements and a proxy statement on Schedule 14A or other documents with the United States Securities and Exchange Commission (the “SEC”). This communication is not a substitute for any proxy statement or other document that Altair may file with the SEC in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF ALTAIR ARE URGED TO READ THE PROXY STATEMENT, INCLUDING THE DOCUMENTS INCORPORATED BY REFERENCE INTO THE PROXY STATEMENT, AND OTHER DOCUMENTS THAT MAY BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The definitive proxy statement, when available, will be mailed to stockholders of Altair as applicable. Investors and security holders will be able to obtain free copies of these documents, when available, and other documents filed with the SEC by Altair through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by Altair will be available free of charge on Altairs internet website at https://investor.altair.com or by contacting Altair’s primary investor relations contact by email at ir@altair.com or by phone at (248) 614-2400.

Participants in Solicitation

Altair, Parent, Siemens AG, their respective directors and certain of their respective executive officers may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information about the directors and executive officers of Altair, their ownership of Altair common shares, and Altair’s transactions with related persons is set forth in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 22, 2024 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001701732/000095017024018804/altr-20231231.htm), in its proxy statement on Schedule 14A for its 2024 Annual Meeting of Stockholders in the sections entitled “Corporate Governance Matters,” “Security Ownership of Certain Beneficial Owners and Management” and “Transactions with Related Persons”, which was filed with the SEC on April 5, 2024 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001701732/000119312524087903/d722499ddef14a.htm), certain of its Quarterly Reports on Form 10-Q and certain of its Current Reports on Form 8-K.

These documents can be obtained free of charge from the sources indicated above. Additional information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials to be filed with the SEC when they become available.

No Offer or Solicitation

This communication is for informational purposes only and is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Forward Looking Statements

This communication contains “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. Any statements contained in this communication that are not statements of historical fact, including statements regarding the proposed transaction, including the expected timing and closing of the proposed transaction; Altair’s ability to consummate the proposed transaction; the expected benefits of the proposed transaction and other considerations taken into account by the Altair Board of Directors in approving the proposed transaction; the amounts to be received by stockholders and expectations for Altair prior to and following the closing of the proposed transaction, may be deemed to be forward-looking statements. All such forward-looking statements are intended to provide management’s current expectations for the future of Altair based on current expectations and assumptions relating to Altair’s business, the economy and other future conditions. Forward-looking statements generally can be identified through the use of words such as “believes,” “anticipates,” “may,” “should,” “will,” “plans,” “projects,” “expects,” “expectations,” “estimates,” “forecasts,” “predicts,” “targets,” “prospects,” “strategy,” “signs,” and other words of similar meaning in connection with the discussion of future performance, plans, actions or events. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. Such risks and uncertainties include, among others: (i) the timing to consummate the proposed transaction, (ii) the risk that a condition of closing of the proposed transaction may not be satisfied or that the closing of the proposed transaction might otherwise not occur, (iii) the risk that a regulatory approval that may be required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated, (iv) the diversion of management time on transaction-related issues, (v) risks related to disruption of management time from ongoing business operations due to the proposed transaction, (vi) the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the common stock of Altair, (vii) the risk that the proposed transaction and its announcement could have an adverse effect on the ability of Altair to retain customers and retain and hire key personnel and maintain relationships with its suppliers and customers, (viii) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the Merger Agreement, dated October 30, 2024, with Siemens (the “Merger Agreement”), including in circumstances requiring Altair to pay a termination fee, (ix) the risk that competing offers will be made; (x) unexpected costs, charges or expenses resulting from the merger, (xi) potential litigation relating to the merger that could be instituted against the parties to the Merger Agreement or their respective directors, managers or officers, including the effects of any outcomes related thereto, (xii) worldwide economic or political changes that affect the markets that Altair’s businesses serve which could have an effect on demand for Altair’s products and impact Altair’s profitability and (xiii) disruptions in the global credit and financial markets, including diminished liquidity and credit availability, changes in international trade agreements, including tariffs and trade restrictions, cyber-security vulnerabilities, foreign currency volatility, swings in consumer confidence and spending, raw material pricing and supply issues, retention of key employees, increases in fuel prices, and outcomes of legal proceedings, claims and investigations. Accordingly, actual results may differ materially from those contemplated by these forward-looking statements. Investors, therefore, are cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in Altair’s filings with the SEC, including the risks and uncertainties identified in Part I, Item 1A – Risk Factors of Altair’s Annual Report on Form 10-K for the year ended December 31, 2023 and in Altair’s other filings with the SEC. The list of factors is not intended to be exhaustive.

These forward-looking statements speak only as of the date of this communication, and Altair does not assume any obligation to update or revise any forward-looking statement made in this communication or that may from time to time be made by or on behalf of Altair.

Media Relations
Jennifer Ristic
216-849-3109
jristic@altair.com

Investor Relations
Stephen Palmtag
669-328-9111
spalmtag@altair.com

The MIL Network –

January 25, 2025

MIL-OSI: Altair Announces Third Quarter 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

TROY, Mich., Oct. 30, 2024 (GLOBE NEWSWIRE) — Altair (Nasdaq: ALTR), today released its financial results for the third quarter and nine months ended September 30, 2024.

Immediately prior to the dissemination of this press release, Altair issued a press release announcing that it has entered into a merger agreement with a subsidiary of Siemens pursuant to which Altair will be acquired and stockholders of Altair will receive cash merger consideration as more fully described in that press release.

Third Quarter 2024 Financial Results

Software revenue was $138.7 million compared to $119.1 million for the third quarter of 2023, an increase of 16.5% in reported currency and 16.2% in constant currency
Total revenue was $151.5 million compared to $134.0 million for the third quarter of 2023, an increase of 13.0% in reported currency and 12.8% in constant currency
Net income was $1.8 million compared to a net loss of $(4.4) million for the third quarter of 2023, an improvement in earnings of $6.2 million. Net income per share, diluted was $0.02 based on 88.4 million diluted weighted average common shares outstanding, compared to net loss per share, diluted of $(0.05) for the third quarter of 2023, based on 80.4 million diluted weighted average common shares outstanding. Net income margin was 1.2% compared to net loss margin of (3.3)% for the third quarter of 2023
Non-GAAP net income was $21.2 million, compared to non-GAAP net income of $12.7 million for the third quarter of 2023, an increase of $8.5 million. Non-GAAP net income per share, diluted was $0.24 based on 88.4 million non-GAAP diluted common shares outstanding, compared to non-GAAP net income per share, diluted of $0.15 for the third quarter of 2023, based on 85.3 million non-GAAP diluted common shares outstanding
Adjusted EBITDA was $25.7 million compared to $15.5 million for the third quarter of 2023, an increase of 66.3% Adjusted EBITDA margin was 17.0% compared to 11.5% for the third quarter of 2023
Cash provided by operating activities was $14.5 million, compared to $16.4 million for the third quarter of 2023
Free cash flow was $9.8 million, compared to $14.7 million for the third quarter of 2023.

Conference Call Information

In light of the proposed transaction with Siemens, Altair is suspending quarterly financial results conference calls and its quarterly and annual guidance.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: Non-GAAP Net Income, Non-GAAP Net Income Per Share, Billings, Adjusted EBITDA, Free Cash Flow, Non-GAAP Gross Profit and Non-GAAP Operating Expense.

Altair believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. The Company also believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP net income excludes stock-based compensation, amortization of intangible assets related to acquisitions, asset impairment charges, non-cash interest expense, other special items as identified by management and described elsewhere in this press release, and the impact of non-GAAP tax rate to income tax expense, which approximates our tax rate excluding discrete items and other specific events that can fluctuate from period to period.

Non-GAAP diluted common shares is calculated using the treasury stock method to calculate the effect of dilutive securities, stock options, restricted stock units and employee stock purchase plan shares and using the if-converted method to calculate the effect of convertible instruments. This is the same methodology that is used when calculating GAAP diluted shares. However, the determination of whether the shares are dilutive or antidilutive is made independently on a GAAP and non-GAAP net income (loss) basis and therefore the number of diluted shares outstanding for GAAP and non-GAAP may be different.

Billings consists of total revenue plus the change in deferred revenue, excluding deferred revenue from acquisitions.

Adjusted EBITDA represents net income adjusted for income tax expense, interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, asset impairment charges and other special items as identified by management and described elsewhere in this press release.

Free cash flow consists of cash flow from operations less capital expenditures.

Non-GAAP gross profit represents gross profit adjusted for stock-based compensation expense and other special items as identified by management and described elsewhere in this press release.

Non-GAAP operating expense represents operating expense excluding stock-based compensation expense, amortization, asset impairment charges and other special items as identified by management and described elsewhere in this press release.

Company management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Altair urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release.

About Altair

Altair is a global leader in computational intelligence that provides software and cloud solutions in simulation, high-performance computing (HPC), data analytics and AI. Altair enables organizations across all industries to compete more effectively and drive smarter decisions in an increasingly connected world – all while creating a greener, more sustainable future. To learn more, please visit https://www.altair.com.

Important Information and Where to Find It

This communication relates to a proposed transaction between Altair and Siemens Industry Software Inc. (“Parent”). In connection with this proposed transaction, Altair will file a Current Report on Form 8-K with further information regarding the terms and conditions contained in the definitive transaction agreements and a proxy statement on Schedule 14A or other documents with the United States Securities and Exchange Commission (the “SEC”). This communication is not a substitute for any proxy statement or other document that Altair may file with the SEC in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF ALTAIR ARE URGED TO READ THE PROXY STATEMENT, INCLUDING THE DOCUMENTS INCORPORATED BY REFERENCE INTO THE PROXY STATEMENT, AND OTHER DOCUMENTS THAT MAY BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The definitive proxy statement, when available, will be mailed to stockholders of Altair as applicable. Investors and security holders will be able to obtain free copies of these documents, when available, and other documents filed with the SEC by Altair through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by Altair will be available free of charge on Altair’s internet website at https://investor.altair.com or by contacting Altair’s primary investor relations contact by email at ir@altair.com or by phone at (248) 614-2400.

Participants in Solicitation

Altair, Parent, Siemens AG, their respective directors and certain of their respective executive officers may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information about the directors and executive officers of Altair, their ownership of Altair common shares, and Altair’s transactions with related persons is set forth in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 22, 2024 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001701732/000095017024018804/altr-20231231.htm), in its proxy statement on Schedule 14A for its 2024 Annual Meeting of Stockholders in the sections entitled “Corporate Governance Matters,” “Security Ownership of Certain Beneficial Owners and Management” and “Transactions with Related Persons”, which was filed with the SEC on April 5, 2024 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001701732/000119312524087903/d722499ddef14a.htm), certain of its Quarterly Reports on Form 10-Q and certain of its Current Reports on Form 8-K.

These documents can be obtained free of charge from the sources indicated above. Additional information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials to be filed with the SEC when they become available.

No Offer or Solicitation

This communication is for informational purposes only and is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Forward-Looking Statements

This communication contains “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. Any statements contained in this communication that are not statements of historical fact, including statements regarding the proposed transaction, including the expected timing and closing of the proposed transaction; Altair’s ability to consummate the proposed transaction; the expected benefits of the proposed transaction and other considerations taken into account by the Altair Board of Directors in approving the proposed transaction; the amounts to be received by stockholders and expectations for Altair prior to and following the closing of the proposed transaction, may be deemed to be forward-looking statements. All such forward-looking statements are intended to provide management’s current expectations for the future of Altair based on current expectations and assumptions relating to Altair’s business, the economy and other future conditions. Forward-looking statements generally can be identified through the use of words such as “believes,” “anticipates,” “may,” “should,” “will,” “plans,” “projects,” “expects,” “expectations,” “estimates,” “forecasts,” “predicts,” “targets,” “prospects,” “strategy,” “signs,” and other words of similar meaning in connection with the discussion of future performance, plans, actions or events. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. Such risks and uncertainties include, among others: (i) the timing to consummate the proposed transaction, (ii) the risk that a condition of closing of the proposed transaction may not be satisfied or that the closing of the proposed transaction might otherwise not occur, (iii) the risk that a regulatory approval that may be required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated, (iv) the diversion of management time on transaction-related issues, (v) risks related to disruption of management time from ongoing business operations due to the proposed transaction, (vi) the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the common stock of Altair, (vii) the risk that the proposed transaction and its announcement could have an adverse effect on the ability of Altair to retain customers and retain and hire key personnel and maintain relationships with its suppliers and customers, (viii) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the Merger Agreement, dated October 30, 2024, with Siemens (the “Merger Agreement”), including in circumstances requiring Altair to pay a termination fee, (ix) the risk that competing offers will be made; (x) unexpected costs, charges or expenses resulting from the merger, (xi) potential litigation relating to the merger that could be instituted against the parties to the Merger Agreement or their respective directors, managers or officers, including the effects of any outcomes related thereto, (xii) worldwide economic or political changes that affect the markets that Altair’s businesses serve which could have an effect on demand for Altair’s products and impact Altair’s profitability and (xiii) disruptions in the global credit and financial markets, including diminished liquidity and credit availability, changes in international trade agreements, including tariffs and trade restrictions, cyber-security vulnerabilities, foreign currency volatility, swings in consumer confidence and spending, raw material pricing and supply issues, retention of key employees, increases in fuel prices, and outcomes of legal proceedings, claims and investigations. Accordingly, actual results may differ materially from those contemplated by these forward-looking statements. Investors, therefore, are cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in Altair’s filings with the SEC, including the risks and uncertainties identified in Part I, Item 1A – Risk Factors of Altair’s Annual Report on Form 10-K for the year ended December 31, 2023 and in Altair’s other filings with the SEC. The list of factors is not intended to be exhaustive.

These forward-looking statements speak only as of the date of this communication, and Altair does not assume any obligation to update or revise any forward-looking statement made in this communication or that may from time to time be made by or on behalf of Altair.

Media Relations
Altair
Jennifer Ristic
216-849-3109
jristic@altair.com

Investor Relations
Altair
Stephen Palmtag
669-328-9111
spalmtag@altair.com

ALTAIR ENGINEERING INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

	September 30, 2024			December 31, 2023
(In thousands)	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	513,371		$	467,459
Accounts receivable, net		121,345			190,461
Income tax receivable		20,794			16,650
Prepaid expenses and other current assets		31,489			26,053
Total current assets		686,999			700,623
Property and equipment, net		40,908			39,803
Operating lease right of use assets		31,856			30,759
Goodwill		476,209			458,125
Other intangible assets, net		84,904			83,550
Deferred tax assets		9,661			9,955
Other long-term assets		47,331			40,678
TOTAL ASSETS	$	1,377,868		$	1,363,493
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	3,607		$	8,995
Accrued compensation and benefits		43,497			45,081
Current portion of operating lease liabilities		8,212			8,825
Other accrued expenses and current liabilities		40,267			48,398
Deferred revenue		114,525			131,356
Current portion of convertible senior notes, net		—			81,455
Total current liabilities		210,108			324,110
Convertible senior notes, net		226,812			225,929
Operating lease liabilities, net of current portion		24,484			22,625
Deferred revenue, non-current		26,310			32,347
Other long-term liabilities		53,254			47,151
TOTAL LIABILITIES		540,968			652,162
Commitments and contingencies
STOCKHOLDERS’ EQUITY:
Preferred stock ($0.0001 par value), authorized 45,000 shares, none issued and outstanding		—			—
Common stock ($0.0001 par value)
Class A common stock, authorized 513,797 shares, issued and outstanding 59,518 and 55,240 shares as of September 30, 2024, and December 31, 2023, respectively		5			5
Class B common stock, authorized 41,203 shares, issued and outstanding 25,432 and 26,814 shares as of September 30, 2024, and December 31, 2023, respectively		3			3
Additional paid-in capital		971,835			864,135
Accumulated deficit		(117,324	)		(130,503	)
Accumulated other comprehensive loss		(17,619	)		(22,309	)
TOTAL STOCKHOLDERS’ EQUITY		836,900			711,331
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,377,868		$	1,363,493

ALTAIR ENGINEERING INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands, except per share data)	2024			2023			2024			2023
Revenue
License	$	92,939		$	79,825		$	303,345		$	279,972
Maintenance and other services		45,733			39,252			129,179			114,069
Total software		138,672			119,077			432,524			394,041
Engineering services and other		12,778			14,926			40,633			47,157
Total revenue		151,450			134,003			473,157			441,198
Cost of revenue
License		2,795			3,083			10,437			11,888
Maintenance and other services		16,045			13,689			46,410			41,754
Total software *		18,840			16,772			56,847			53,642
Engineering services and other		11,175			12,314			34,577			38,976
Total cost of revenue		30,015			29,086			91,424			92,618
Gross profit		121,435			104,917			381,733			348,580
Operating expenses:
Research and development *		56,111			51,598			164,014			160,126
Sales and marketing *		45,559			44,069			136,468			132,543
General and administrative *		17,500			17,218			54,555			53,791
Amortization of intangible assets		9,246			7,704			24,313			23,143
Other operating (income) expense, net		(2,669	)		(4,408	)		(4,337	)		1,324
Total operating expenses		125,747			116,181			375,013			370,927
Operating (loss) income		(4,312	)		(11,264	)		6,720			(22,347	)
Interest expense		1,317			1,529			4,497			4,583
Other income, net		(10,758	)		(1,890	)		(20,465	)		(9,698	)
Income (loss) before income taxes		5,129			(10,903	)		22,688			(17,232	)
Income tax expense (benefit)		3,350			(6,541	)		9,509			11,369
Net income (loss)	$	1,779		$	(4,362	)	$	13,179		$	(28,601	)
Earnings (loss) per share, basic
Earnings (loss) per share	$	0.02		$	(0.05	)	$	0.16		$	(0.36	)
Weighted average shares		84,835			80,431			83,680			80,204
Earnings (loss) per share, diluted
Earnings (loss) per share	$	0.02		$	(0.05	)	$	0.15		$	(0.36	)
Weighted average shares		88,425			80,431			87,854			80,204

* Amounts include stock-based compensation expense as follows (in thousands):

	(Unaudited)
	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Cost of revenue – software	$	2,131	$	2,468	$	6,230	$	7,792
Research and development		6,378		7,824		19,356		26,510
Sales and marketing		5,176		6,933		14,675		22,105
General and administrative		3,671		3,301		10,449		10,016
Total stock-based compensation expense	$	17,356	$	20,526	$	50,710	$	66,423

ALTAIR ENGINEERING INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)

	Nine Months Ended September 30,
(In thousands)	2024			2023
OPERATING ACTIVITIES:
Net income (loss)	$	13,179		$	(28,601	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		31,120			29,271
Stock-based compensation expense		50,710			66,423
Deferred income taxes		(114	)		2,178
Loss on mark-to-market adjustment of contingent consideration		189			4,494
Other, net		1,520			1,385
Changes in assets and liabilities:
Accounts receivable, net		72,916			47,226
Prepaid expenses and other current assets		(7,895	)		959
Other long-term assets		408			(1,491	)
Accounts payable		(5,416	)		(5,494	)
Accrued compensation and benefits		(1,977	)		(2,726	)
Other accrued expenses and current liabilities		(12,261	)		(4,526	)
Deferred revenue		(25,825	)		(3,442	)
Net cash provided by operating activities		116,554			105,656
INVESTING ACTIVITIES:
Payments for acquisition of businesses, net of cash acquired		(25,575	)		(3,235	)
Capital expenditures		(9,739	)		(7,882	)
Other investing activities, net		(5,036	)		(2,452	)
Net cash used in investing activities		(40,350	)		(13,569	)
FINANCING ACTIVITIES:
Settlement of convertible senior notes		(81,729	)		—
Proceeds from the exercise of common stock options		43,721			25,526
Proceeds from employee stock purchase plan contributions		7,112			5,772
Payments for repurchase and retirement of common stock		—			(6,255	)
Other financing activities		—			(73	)
Net cash (used in) provided by financing activities		(30,896	)		24,970
Effect of exchange rate changes on cash, cash equivalents and restricted cash		554			(2,599	)
Net increase in cash, cash equivalents and restricted cash		45,862			114,458
Cash, cash equivalents and restricted cash at beginning of year		467,576			316,958
Cash, cash equivalents and restricted cash at end of period	$	513,438		$	431,416

Change in Presentation of Revenue and Cost of Revenue

Effective in the first quarter of 2024, the Company changed the presentation of revenue and cost of revenue in its Consolidated Statements of Operations to combine the financial statement line items (“FSLIs”) labeled “Software related services”, “Client engineering services” and “Other” into one FSLI labeled “Engineering services and other”. The change in presentation has been applied retrospectively and does not affect the software revenue, total revenue, software cost of revenue or total cost of revenue amounts previously reported or have any effect on segment reporting.

Financial Results

The following table provides a reconciliation of Non-GAAP net income and Non-GAAP net income per share – diluted, to net income (loss) and net income (loss) per share – diluted, the most comparable GAAP financial measures:

		(Unaudited)
		Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands, except per share amounts)		2024			2023			2024			2023
Net income (loss)		$	1,779		$	(4,362	)	$	13,179		$	(28,601	)
Stock-based compensation expense			17,356			20,526			50,710			66,423
Amortization of intangible assets			9,246			7,704			24,313			23,143
Non-cash interest expense			310			469			1,204			1,399
Impact of non-GAAP tax rate ⁽¹⁾			(3,721	)		(10,997	)		(14,564	)		(8,897	)
Special adjustments and other ⁽²⁾			(3,756	)		(658	)		(2,622	)		4,212
	Non-GAAP net income	$	21,214		$	12,682		$	72,220		$	57,679

Net income (loss) per share, diluted		$	0.02		$	(0.05	)	$	0.15		$	(0.36	)
Non-GAAP net income per share, diluted		$	0.24		$	0.15		$	0.82		$	0.68

GAAP diluted shares outstanding			88,425			80,431			87,854			80,204
Non-GAAP diluted shares outstanding			88,425			85,347			87,854			84,857

(1)	For the three and nine months ended September 30, 2024, the Company used a non-GAAP effective tax rate of 25%. For the three and nine months ended September 30, 2023, the Company used a non-GAAP effective tax rate of 26%.
(2)	The three months ended September 30, 2024, includes $3.8 million of currency gains on acquisition-related intercompany loans. The three months ended September 30, 2023, includes a $3.5 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition and $2.8 million of currency losses on acquisition-related intercompany loans. The nine months ended September 30, 2024, includes $2.8 million of currency gains on acquisition-related intercompany loans, and a $0.2 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition. The nine months ended September 30, 2023, includes a $4.5 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition and $0.3 million of currency gains on acquisition-related intercompany loans.

The following table provides a reconciliation of Adjusted EBITDA to net income (loss), the most comparable GAAP financial measure:

		(Unaudited)
		Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)		2024			2023			2024			2023
Net income (loss)		$	1,779		$	(4,362	)	$	13,179		$	(28,601	)
Income tax (benefit) expense			3,350			(6,541	)		9,509			11,369
Stock-based compensation expense			17,356			20,526			50,710			66,423
Interest expense			1,317			1,529			4,497			4,583
Depreciation and amortization			11,563			9,783			31,120			29,271
Special adjustments, interest income and other ⁽¹⁾			(9,660	)		(5,481	)		(20,144	)		(7,480	)
	Adjusted EBITDA	$	25,705		$	15,454		$	88,871		$	75,565

(1)	The three months ended September 30, 2024, includes $5.9 million of interest income and $3.8 million of currency gains on acquisition-related intercompany loans. The three months ended September 30, 2023, includes $4.8 million of interest income, a $3.5 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, and $2.8 million currency losses on acquisition-related intercompany loans. The nine months ended September 30, 2024, includes $17.5 million of interest income, $2.8 million of currency gains on acquisition-related intercompany loans, and a $0.2 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition. The nine months ended September 30, 2023, includes $11.7 million of interest income, a $4.5 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, and $0.3 million currency gains on acquisition-related intercompany loans.

The following table provides a reconciliation of Free Cash Flow to net cash provided by operating activities, the most comparable GAAP financial measure:

	(Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2024			2023			2024			2023
Net cash provided by operating activities	$	14,547		$	16,427		$	116,554		$	105,656
Capital expenditures		(4,735	)		(1,698	)		(9,739	)		(7,882	)
Free cash flow	$	9,812		$	14,729		$	106,815		$	97,774

The following table provides a reconciliation of Non-GAAP gross profit to gross profit, the most comparable GAAP financial measure, and a comparison of Non-GAAP gross margin (Non-GAAP gross profit as a percentage of total revenue) to gross margin (gross profit as a percentage of total revenue), the most comparable GAAP financial measure:

	(Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2024			2023			2024			2023
Gross profit	$	121,435		$	104,917		$	381,733		$	348,580
Stock-based compensation expense		2,131			2,468			6,230			7,792
Non-GAAP gross profit	$	123,566		$	107,385		$	387,963		$	356,372

Gross profit margin		80.2	%		78.3	%		80.7	%		79.0	%
Non-GAAP gross margin		81.6	%		80.1	%		82.0	%		80.8	%

The following table provides a reconciliation of Non-GAAP operating expense to Total operating expense, the most comparable GAAP financial measure:

	(Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2024			2023			2024			2023
Total operating expense	$	125,747		$	116,181		$	375,013		$	370,927
Stock-based compensation expense		(15,225	)		(18,058	)		(44,480	)		(58,631	)
Amortization		(9,246	)		(7,704	)		(24,313	)		(23,143	)
Loss on mark-to-market adjustment of contingent consideration		—			3,493			(189	)		(4,494	)
Non-GAAP operating expense	$	101,276		$	93,912		$	306,031		$	284,659

The following table provides the calculation of non-GAAP diluted common shares and non-GAAP net income per share, diluted:

		Three Months Ended September 30,				Nine Months Ended September 30,
		2024		2023		2024		2023
Numerator:
	Non-GAAP net income	$	21,214	$	12,682	$	72,220	$	57,679
	Interest expense related to convertible notes, net of tax ⁽¹⁾		—		—		—		—
	Numerator for non-GAAP diluted income per share	$	21,214	$	12,682	$	72,220	$	57,679
Denominator:
	Weighted average shares outstanding, basic		84,835		80,431		83,680		80,204
	Effect of dilutive shares		3,590		4,916		4,174		4,653
	Non-GAAP diluted shares outstanding		88,425		85,347		87,854		84,857
Non-GAAP net income per share, diluted		$	0.24	$	0.15	$	0.82	$	0.68

(1)	Interest expense related to the convertible notes has been excluded from the numerator for non-GAAP diluted earnings per share because its effect would have been anti-dilutive.

The following table provides a reconciliation of Billings to revenue, the most comparable GAAP financial measure:

	(Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2024			2023			2024			2023
Revenue	$	151,450		$	134,003		$	473,157		$	441,198
Ending deferred revenue		140,835			138,933			140,835			138,933
Beginning deferred revenue		(152,184	)		(148,547	)		(163,703	)		(144,460	)
Deferred revenue acquired		(253	)		—			(1,825	)		—
Billings	$	139,848		$	124,389		$	448,464		$	435,671

The following table provides Software revenue, Total revenue, Billings and Adjusted EBITDA on a constant currency basis:

	(Unaudited)
	Three Months Ended September 30, 2024							Three Months Ended September 30, 2023		Increase/ (Decrease) %
(in thousands)	As reported		Currency changes			As adjusted for constant currency		As reported		As reported			As adjusted for constant currency
Software revenue	$	138.7	$	(0.3	)	$	138.4	$	119.1		16.5	%		16.2	%
Total revenue	$	151.5	$	(0.4	)	$	151.1	$	134.0		13.0	%		12.8	%
Billings	$	139.8	$	(0.1	)	$	139.7	$	124.4		12.4	%		12.3	%
Adjusted EBITDA	$	25.7	$	(0.1	)	$	25.6	$	15.5		66.3	%		65.5	%


	Nine Months Ended September 30, 2024							Nine Months Ended September 30, 2023		Increase/ (Decrease) %
(in thousands)	As reported		Currency changes			As adjusted for constant currency		As reported		As reported			As adjusted for constant currency
Software revenue	$	432.5	$	4.4		$	436.9	$	394.0		9.8	%		10.9	%
Total revenue	$	473.2	$	4.6		$	477.8	$	441.2		7.2	%		8.3	%
Billings	$	448.5	$	4.5		$	453.0	$	435.7		2.9	%		4.0	%
Adjusted EBITDA	$	88.9	$	3.3		$	92.2	$	75.6		17.6	%		22.0	%

The MIL Network –

January 25, 2025

MIL-OSI Economics: Microsoft Cloud strength drives first quarter results

Source: Microsoft

Headline: Microsoft Cloud strength drives first quarter results

Microsoft Cloud Strength Drives First Quarter Results

REDMOND, Wash. — October 30, 2024 — Microsoft Corp. today announced the following results for the quarter ended September 30, 2024, as compared to the corresponding period of last fiscal year:

· Revenue was $65.6 billion and increased 16%

· Operating income was $30.6 billion and increased 14%

· Net income was $24.7 billion and increased 11% (up 10% in constant currency)

· Diluted earnings per share was $3.30 and increased 10%

“AI-driven transformation is changing work, work artifacts, and workflow across every role, function, and business process,” said Satya Nadella, chairman and chief executive officer of Microsoft. “We are expanding our opportunity and winning new customers as we help them apply our AI platforms and tools to drive new growth and operating leverage.”

“Strong execution by our sales teams and partners delivered a solid start to our fiscal year with Microsoft Cloud revenue of $38.9 billion, up 22% year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

Business Highlights

Revenue in Productivity and Business Processes was $28.3 billion and increased 12% (up 13% in constant currency), with the following business highlights:

· Microsoft 365 Commercial products and cloud services revenue increased 13% (up 14% in constant currency) driven by Microsoft 365 Commercial cloud revenue growth of 15% (up 16% in constant currency)

· Microsoft 365 Consumer products and cloud services revenue increased 5% (up 6% in constant currency) driven by Microsoft 365 Consumer cloud revenue growth of 6% (up 7% in constant currency)

· LinkedIn revenue increased 10% (up 9% in constant currency)

· Dynamics products and cloud services revenue increased 14% driven by Dynamics 365 revenue growth of 18% (up 19% in constant currency)

Revenue in Intelligent Cloud was $24.1 billion and increased 20% (up 21% in constant currency), with the following business highlights:

· Server products and cloud services revenue increased 23% driven by Azure and other cloud services revenue growth of 33% (up 34% in constant currency)

Revenue in More Personal Computing was $13.2 billion and increased 17%, with the following business highlights:

· Windows OEM and Devices revenue increased 2%

· Xbox content and services revenue increased 61% driven by 53 points of net impact from the Activision acquisition

· Search and news advertising revenue excluding traffic acquisition costs increased 18% (up 19% in constant currency)

Microsoft returned $9.0 billion to shareholders in the form of dividends and share repurchases in the first quarter of fiscal year 2025.

Business Outlook

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Quarterly Highlights, Product Releases, and Enhancements

Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.

Here are the major product releases and other highlights for the quarter, organized by product categories, to help illustrate how we are accelerating innovation across our businesses while expanding our market opportunities.

Environmental, Social, and Governance (ESG)

To learn more about Microsoft’s corporate governance and our environmental and social practices, please visit our investor relations Board and ESG website and reporting at Microsoft.com/transparency.

Webcast Details

Satya Nadella, chairman and chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Keith Dolliver, corporate secretary and deputy general counsel, and Brett Iversen, vice president of investor relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on October 30, 2025.

Constant Currency

Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding our performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Financial Performance Constant Currency Reconciliation

	Three Months Ended September 30,
($ in millions, except per share amounts)	Revenue	Operating Income	Net Income	Diluted Earnings per Share
2023 As Reported (GAAP)	$56,517	$26,895	$22,291	$2.99
2024 As Reported (GAAP)	$65,585	$30,552	$24,667	$3.30
Percentage Change Y/Y (GAAP)	16%	14%	11%	10%
Constant Currency Impact	$(217)	$(181)	$78	$0.01
Percentage Change Y/Y Constant Currency	16%	14%	10%	10%

Segment Revenue Constant Currency Reconciliation

	Three Months Ended September 30,
($ in millions)	Productivity and Business Processes	Intelligent Cloud	More Personal Computing
2023 As Reported (GAAP)	$25,226	$20,013	$11,278
2024 As Reported (GAAP)	$28,317	$24,092	$13,176
Percentage Change Y/Y (GAAP)	12%	20%	17%
Constant Currency Impact	$(128)	$(72)	$(17)
Percentage Change Y/Y Constant Currency	13%	21%	17%

We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

Selected Product and Service Revenue Constant Currency Reconciliation

	Three Months Ended September 30, 2024
	Percentage Change Y/Y (GAAP)	Constant Currency Impact	Percentage Change Y/Y Constant Currency
Microsoft Cloud	22%	0%	22%
Microsoft 365 Commercial products and cloud services	13%	1%	14%
Microsoft 365 Commercial cloud	15%	1%	16%
Microsoft 365 Consumer products and cloud services	5%	1%	6%
Microsoft 365 Consumer cloud	6%	1%	7%
LinkedIn	10%	(1)%	9%
Dynamics products and cloud services	14%	0%	14%
Dynamics 365	18%	1%	19%
Server products and cloud services	23%	0%	23%
Azure and other cloud services	33%	1%	34%
Windows OEM and Devices	2%	0%	2%
Xbox content and services	61%	0%	61%
Search and news advertising excluding traffic acquisition costs	18%	1%	19%

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

· intense competition in all of our markets that may adversely affect our results of operations;

· focus on cloud-based and AI services presenting execution and competitive risks;

· significant investments in products and services that may not achieve expected returns;

· acquisitions, joint ventures, and strategic alliances that may have an adverse effect on our business;

· impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;

· cyberattacks and security vulnerabilities that could lead to reduced revenue, increased costs, liability claims, or harm to our reputation or competitive position;

· disclosure and misuse of personal data that could cause liability and harm to our reputation;

· the possibility that we may not be able to protect information stored in our products and services from use by others;

· abuse of our advertising, professional, marketplace, or gaming platforms that may harm our reputation or user engagement;

· products and services, how they are used by customers, and how third-party products and services interact with them, presenting security, privacy, and execution risks;

· issues about the use of AI in our offerings that may result in reputational or competitive harm, or legal liability;

· excessive outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;

· supply or quality problems;

· government enforcement under competition laws and new market regulation may limit how we design and market our products;

· potential consequences of trade and anti-corruption laws;

· potential consequences of existing and increasing legal and regulatory requirements;

· laws and regulations relating to the handling of personal data that may impede the adoption of our services or result in increased costs, legal claims, fines, or reputational damage;

· claims against us that may result in adverse outcomes in legal disputes;

· uncertainties relating to our business with government customers;

· additional tax liabilities;

· sustainability regulations and expectations that may expose us to increased costs and legal and reputational risk;

· an inability to protect and utilize our intellectual property may harm our business and operating results;

· claims that Microsoft has infringed the intellectual property rights of others;

· damage to our reputation or our brands that may harm our business and results of operations;

· adverse economic or market conditions that may harm our business;

· catastrophic events or geo-political conditions, such as the COVID-19 pandemic, that may disrupt our business;

· exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange and

· the dependence of our business on our ability to attract and retain talented employees.

For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

All information in this release is as of September 30, 2024. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

For more information, press only:

Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, rrt@we-worldwide.com

For more information, financial analysts and investors only:

Brett Iversen, Vice President, Investor Relations, (425) 706-4400

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.

**MICROSOFT CORPORATION**

INCOME STATEMENTS

(In millions, except per share amounts) (Unaudited)
	Three Months Ended September 30,
	Three Months Ended September 30,
	2024	2023
Revenue:
Product	$15,272	$15,535
Service and other	50,313	40,982
Total revenue	65,585	56,517
Cost of revenue:
Product	3,294	3,531
Service and other	16,805	12,771
Total cost of revenue	20,099	16,302
Gross margin	45,486	40,215
Research and development	7,544	6,659
Sales and marketing	5,717	5,187
General and administrative	1,673	1,474
Operating income	30,552	26,895
Other income (expense), net	(283)	389
Income before income taxes	30,269	27,284
Provision for income taxes	5,602	4,993
Net income	$24,667	$22,291
Earnings per share:
Basic	$3.32	$3.00
Diluted	$3.30	$2.99
Weighted average shares outstanding:
Basic	7,433	7,429
Diluted	7,470	7,462

COMPREHENSIVE INCOME STATEMENTS

(In millions) (Unaudited)
	Three Months Ended September 30,
	Three Months Ended September 30,
	2024	2023
Net income	$24,667	$22,291
Other comprehensive income (loss), net of tax:
Net change related to derivatives	(10)	21
Net change related to investments	1,114	(260)
Translation adjustments and other	304	(355)
Other comprehensive income (loss)	1,408	(594)
Comprehensive income	$26,075	$21,697

BALANCE SHEETS

(In millions) (Unaudited)
	September 30, 2024	June 30, 2024
Assets
Current assets:
Cash and cash equivalents	$20,840	$18,315
Short-term investments	57,588	57,228
Total cash, cash equivalents, and short-term investments	78,428	75,543
Accounts receivable, net of allowance for doubtful accounts of $647 and $830	44,148	56,924
Inventories	1,626	1,246
Other current assets	25,724	26,021
Total current assets	149,926	159,734
Property and equipment, net of accumulated depreciation of $80,517 and $76,421	152,863	135,591
Operating lease right-of-use assets	20,528	18,961
Equity and other investments	15,778	14,600
Goodwill	119,374	119,220
Intangible assets, net	26,751	27,597
Other long-term assets	37,793	36,460
Total assets	$523,013	$512,163
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$22,768	$21,996
Short-term debt	0	6,693
Current portion of long-term debt	2,249	2,249
Accrued compensation	8,326	12,564
Short-term income taxes	9,717	5,017
Short-term unearned revenue	53,026	57,582
Other current liabilities	19,114	19,185
Total current liabilities	115,200	125,286
Long-term debt	42,868	42,688
Long-term income taxes	24,452	27,931
Long-term unearned revenue	2,663	2,602
Deferred income taxes	2,581	2,618
Operating lease liabilities	16,361	15,497
Other long-term liabilities	31,165	27,064
Total liabilities	235,290	243,686
Commitments and contingencies
Stockholders’ equity:
Common stock and paid-in capital – shares authorized 24,000; outstanding 7,436 and 7,434	102,976	100,923
Retained earnings	188,929	173,144
Accumulated other comprehensive loss	(4,182)	(5,590)
Total stockholders’ equity	287,723	268,477
Total liabilities and stockholders’ equity	$523,013	$512,163

CASH FLOWS STATEMENTS

(In millions) (Unaudited)
	Three Months Ended September 30,
	Three Months Ended September 30,
	2024	2023
Operations
Net income	$24,667	$22,291
Adjustments to reconcile net income to net cash from operations:
Depreciation, amortization, and other	7,383	3,921
Stock-based compensation expense	2,832	2,507
Net recognized losses (gains) on investments and derivatives	(125)	14
Deferred income taxes	(1,433)	(568)
Changes in operating assets and liabilities:
Accounts receivable	14,037	11,034
Inventories	(373)	(505)
Other current assets	(82)	(796)
Other long-term assets	(1,761)	(2,013)
Accounts payable	(916)	1,214
Unearned revenue	(5,553)	(4,126)
Income taxes	1,016	1,425
Other current liabilities	(5,479)	(4,106)
Other long-term liabilities	(33)	291
Net cash from operations	34,180	30,583
Financing
Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net	(5,746)	18,692
Proceeds from issuance of debt	0	7,073
Repayments of debt	(966)	(1,500)
Common stock issued	706	685
Common stock repurchased	(4,107)	(4,831)
Common stock cash dividends paid	(5,574)	(5,051)
Other, net	(889)	(307)
Net cash from (used in) financing	(16,576)	14,761
Investing
Additions to property and equipment	(14,923)	(9,917)
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets	(1,849)	(1,186)
Purchases of investments	(1,620)	(8,460)
Maturities of investments	2,136	15,718
Sales of investments	1,968	5,330
Other, net	(913)	(982)
Net cash from (used in) investing	(15,201)	503
Effect of foreign exchange rates on cash and cash equivalents	122	(99)
Net change in cash and cash equivalents	2,525	45,748
Cash and cash equivalents, beginning of period	18,315	34,704
Cash and cash equivalents, end of period	$20,840	$80,452

SEGMENT REVENUE AND OPERATING INCOME

(In millions) (Unaudited)
	Three Months Ended September 30,
	Three Months Ended September 30,
	2024	2023
Revenue
Productivity and Business Processes	$28,317	$25,226
Intelligent Cloud	24,092	20,013
More Personal Computing	13,176	11,278
Total	$65,585	$56,517
Operating Income
Productivity and Business Processes	$16,516	$14,297
Intelligent Cloud	10,503	8,908
More Personal Computing	3,533	3,690
Total	$30,552	$26,895

We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

MIL OSI Economics –

January 25, 2025

MIL-OSI USA: Welch Joins NEK Broadband and USDA Rural Development to Celebrate $20.5 Million in Rural Broadband Funding

US Senate News:

Source: United States Senator Peter Welch (D-Vermont)

ISLAND POND, VT — U.S. Senator Peter Welch (D-Vt.), Chair of the Senate Agriculture Subcommittee on Rural Development and Energy, today joined NEK Broadband, U.S. Department of Agriculture (USDA) Rural Development officials, broadband advocates, customers, workers, and State and local leaders to announce that NEK Broadband was awarded $2.8 million through the USDA’s Community Connect Grant program. The fiber infrastructure project funded by this program will help provide high-speed internet to the residents of Groton. Including this funding, USDA Rural Development has invested more than $20.5 million in connectivity projects throughout Vermont’s Northeast Kingdom through NEK Broadband.
Before the press conference, NEK Broadband taught Senator Welch and USDA RD State Director Sarah Waring how to splice broadband fiber.
“With the help of the USDA RD and this federal funding from the Biden-Harris Administration, NEK Broadband is meeting the challenge and building out the broadband that every rural community deserves and needs. I am thrilled to celebrate more than $20 million total in USDA grants, including new funding through the Community Connect grant program,” said Senator Peter Welch. “To get this fiber to the barn at the end of the dirt road requires overcoming so many practical challenges—and that takes continuity, that takes confidence, competence, collaboration, and cooperation. Every day brings new problems to solve, and they’re solving them every day to provide their neighbors with high-speed, reliable internet. I’ll keep fighting in the Senate for more broadband funding and will keep advocating for the passage of my bipartisan bill to improve the ReConnect program and speed broadband deployment.”
“This Community Connect grant is special because of the way in which residents and town officials in Groton stepped up to find solutions in coordination with regional, state, and federal resources to contribute to NEK Broadband’s mission to build public infrastructure and help bring service to the unserved in over 70 towns in northeastern and central Vermont,” said Christa Shute, Executive Director, NEK Community Broadband. “With the assistance of this grant from USDA, NEK Community Broadband dba NEKCV takes another step forward in our digital equity program by staffing and equipping three community centers in Groton and Ryegate that will help provide opportunities for the residents to access high speed internet during days, evenings, and weekends, while providing training, teaching and resources to build digital literacy.”
View photos and B-Roll from the event below:

“Among the many things we learned over the last few years, is that having reliable online access should be seen as a human right for everyone—especially those living in our remotest rural communities,” said Sarah Waring, USDA Rural Development State Director for Vermont and New Hampshire. “Securing important goods and services, and simply being connected to friends and family, can no longer be a hit-or-miss proposition that depends on your area code. We all know the stories of kids at home who can’t access school assignments, or small businesses who can’t make online sales, or the inadequate delivery of telemedicine where there’s no high-speed internet access. That’s why I am so proud that the Biden-Harris Administration continues to send a clear and resounding message to our neighbors in this remote corner of our state: we’re here, with your local providers, working hard to get you connected.”
“The Community Connect Grant will transform the ability of our residents and area organizations to access & leverage the enormous potential of the Internet for jobs, education, healthcare, public safety, and community development,” said Michael Gaiss, Groton’s primary representative on the Governing Board of NEK Broadband. “The impact on our town and region will be felt for years to come. Our grateful thanks and appreciation to the USDA for this opportunity.”
Including today’s funding, USDA RD has invested $20,501,567 in Northeast Kingdom connectivity projects through NEK Broadband, a nonprofit organization known as a Communication Union District (CUD). In August, NEK Broadband and CVFiber, a CUD serving towns in Central Vermont, merged to form NEKCV. In May 2023, USDA obligated more than $17 million in broadband funding through the ReConnect Grant Program. The same month, Senator Welch convened a hearing on rural broadband access featuring testimony from Christa Shute. In August 2021, NEK Broadband received a $190,380 Rural Business Development Grant to extend the fiber network into western Concord and the town of Waterford.
As Chair of the Senate Agriculture Subcommittee on Rural Development and Energy, Senator Welch introduced the bipartisan ReConnecting Rural America Act, which would codify and clarify components of USDA’s ReConnect Loan and Grant Program and, in so doing, reduce red tape, and speed broadband deployment. The ReConnect Program plays a central role in expanding access to high-speed broadband in rural America.s. The bipartisan bill was included in the Senate’s draft Farm Bill, the Rural Prosperity and Food Security Act.

MIL OSI USA News –

January 25, 2025
MIL-OSI United Kingdom: Russia should end the war now instead of sending other countries’ sons to die: UK statement at the UN Security Council

Source: United Kingdom – Government Statements

Statement by Ambassador Barbara Woodward, UK Permanent Representative to the UN, at the UN Security Council meeting on maintenance of peace and security of Ukraine.

Location:

United Nations, New York

Delivered on:

30 October 2024 (Transcript of the speech, exactly as it was delivered)

When Russia invaded Ukraine, almost 1000 days ago, the General Assembly was clear in its condemnation: it deplored Russia’s aggression in the strongest terms, demanded its full withdrawal and declared Russia’s invasion to be in violation of the UN Charter.

Only five countries voted against, including the Democratic People’s Republic of Korea.

Today the DPRK’s support for Russia goes even further. Pyongyang provides significant support to Russia by supplying munitions, arms, and other materiel, and now 10,000 troops have arrived in Russia, with a significant number believed to be deploying to Kursk.

In addition to aiding Russia’s ongoing violation of the UN Charter, and a UN Member State’s sovereignty and territorial integrity, this cooperation between Russia and the DPRK is a direct violation of multiple UN Security Council resolutions.

Russia voted for these resolutions. Now it violates them. This undermines not only international peace and security, but also the Security Council itself.

Council members have repeatedly condemned these violations, yet the transfers continue.

This latest development, Russia’s training and deployment of DPRK troops, is a significant step further for both countries. Russia has now suffered over 600,000 casualties. Instead of sending other countries’ sons to die for the imperialistic whims of one man, they should end the war now.

Russia is not just paying for this invasion in the lives of young men. Defence and security will consume over 40% of state spending next year.

We can be sure that DPRK will be extracting a high price from Russia in return for the transfer of its troops, including military assistance. This risks further raising tensions on the Korean peninsula and undermining regional security in the Indo-Pacific.

A DPRK with improved military technology and enhanced capacity to export weapons, could fuel instability in vulnerable conflict areas around the world. An escalation of violence and expansion of the battlefield is in no one’s interest.

It is clear that a desperate and impoverished Russia needs external support for this war to continue. Any country providing assistance to Russia’s aggression is thereby prolonging Russia’s illegal war.

But Russia’s desperation will not deter our resolve to support Ukraine to exercise its right to self-defence in line with the UN Charter, and to protect their people and sovereignty.

Updates to this page

Published 30 October 2024

MIL OSI United Kingdom –

January 25, 2025
MIL-OSI Canada: Manitoba Government Introduces Bill 41 to Expand Mandatory Training for Prospective Judges and Judicial Justices of the Peace
Source: Government of Canada regional news

October 30, 2024

Manitoba Government Introduces Bill 41 to Expand Mandatory Training for Prospective Judges and Judicial Justices of the Peace

New Training Would Include Intimate Partner Violence and Experiences of Indigenous and 2SLGBTQIA+ Persons: Wiebe

The Manitoba government has introduced legislation that would expand continuing education requirements for prospective provincial court judges and judicial justices of the peace in areas of intimate partner violence, coercive control and the experiences of Indigenous persons and 2SLGBTQIA+ persons, Justice Minister Matt Wiebe announced today.

“Training in intimate partner violence, coercive control and the experience of Indigenous persons and 2SLGBTQIA+ community would help ensure that everyone feels respected in our justice system,” said Wiebe. “Manitoba would be among the leaders in Canada by requiring continuing education on these topics. I want to thank all the advocates who have worked tirelessly to enact Keira’s Law and acknowledge members of the judiciary who are committed to enhancing judicial education. Our government is dedicated to creating a more just system for all Manitobans.”

Under proposed amendments to the Provincial Court Act, candidates for appointment as provincial court judges would be required to participate in continuing education in three new areas:
- intimate partner violence;
- coercive control in intimate partner and family relationships; and
- the experience of Indigenous persons and 2SLGBTQIA+ persons in the justice system and in society generally.
These would be in addition to current requirements to participate in continuing education on sexual assault law and social context including systemic racism and systemic discrimination.

Currently, the Provincial Court Act does not address continuing education for judicial justices of the peace. With the proposed amendments, judicial justice of the peace candidates would be required to participate in continuing education on the same subjects as provincial court judge candidates. This is important because judicial justices of the peace have jurisdiction to make decisions regarding protection orders, provincial offences and search orders, the minister noted.

The governments of Canada and Ontario have enacted similar legislation known as “Keira’s Law” to ensure judges receive education on domestic violence and coercive control in intimate partner and family relationships.

The Manitoba government’s proposed legislation includes additional requirements, the minister noted, formalizing the requirement of training surrounding the experiences of Indigenous persons and 2SLGBTQIA+ persons in the justice system and in society.

Continuing education seminars may be developed by the chief judge in consultation with affected persons including survivors of sexual assault and intimate partner violence along with persons, groups or organizations that support them. For seminars on social context and community experiences, consultation may include representatives of Indigenous and 2SLQBTQIA+ communities and other communities that have experienced systemic racism and discrimination. This legislation would also ensure funding for these continuing education seminars established by the chief judge does not lapse at the end of the fiscal year, noted Wiebe.

– 30 –

MIL OSI Canada News –
January 25, 2025
MIL-OSI USA: Congressman Raja Krishnamoorthi Presents Veterans of the Vietnam War with Lapel Pins Honoring their Service as 50-Year Anniversary of War’s End Approaches

Source: United States House of Representatives – Congressman Raja Krishnamoorthi (8th District of Illinois)

St. Charles, IL – Today, Congressman Raja Krishnamoorthi (D-IL) presented veterans from the U.S. military with lapel pins honoring the upcoming 50-year anniversary of the end of American military involvement during the Vietnam War. The ceremony, which took place at Veterans of Foreign Wars (VFW) Post 5036 in St. Charles, was attended by veterans of several branches of the military and American Legion Post 342 Commander Joe Morgan. Earlier this year, Congressman Krishnamoorthi championed the passage of bipartisan legislation that renamed the town’s post office to the Veterans of the Vietnam War Memorial Post Office to honor those who served the country in Vietnam.

“The debt of gratitude our country owes to those who have risked so much for our nation in uniform is immeasurable,” Congressman Krishnamoorthi said. “As the 50-year anniversary of the Vietnam War’s end approaches, now is a special time to honor the millions of Americans who served our country in uniform during the conflict. It was a privilege to meet and speak to so many of these heroes this morning, and an honor to recognize their service as we show them that our grateful nation will never forget their courage, commitment, and sacrifice.”

MIL OSI USA News –

January 25, 2025
MIL-OSI USA: Jayapal Statement on Second Death at Northwest Immigrant Processing Center in 2024

Source: United States House of Representatives – Congresswoman Pramila Jayapal (7th District of Washington)

SEATTLE, WA – U.S. Representative Pramila Jayapal (WA-07), Ranking Member of the Immigration Integrity, Security, and Enforcement Subcommittee, issued the following statement regarding the death of Jose Manuel Sanchez-Castro at the Northwest Immigrant Processing Center (NWIPC), formerly the Northwest Detention Center, an immigration detention facility in Washington State operated by Immigration and Customs Enforcement (ICE):

“First and foremost, I extend my condolences to Mr. Sanchez-Castro’s family and loved ones. While his official cause of death is still unknown, there must be accountability and a full investigation to understand exactly what happened. My office is tracking this closely and is in contact with ICE.

“This is now the second death at NWIPC in 2024 after Charles Leo Daniel died in custody after spending 1,418 days in solitary confinement. Following his death, I inspected the facility and was not permitted to speak directly with detained people. I remain deeply concerned about reports from detained people regarding conditions at the facility and will continue to closely monitor and engage with federal officials about my concerns.”

In 2018, another detained person at the facility died by suicide. Detained people at the facility have consistently been forced to resort to hunger strikes to protest conditions, including allegations of medical neglect, unsafe food, and unsanitary conditions among other complaints.

Jayapal has been a leader in efforts to end the use of private, for-profit detention centers and to instead utilize alternatives to detention. She has led multiple calls to the Department of Homeland Security (DHS) to urge the closure of facilities with records of abuse. She has also worked to push accountability and transparency at many of these detention facilities.

She is also the lead sponsor of the Dignity for Detained Immigrants Act, transformative legislation that would end the use of for-profit, private detention facilities and protect the civil and human rights of immigrants.

Issues: Immigration

MIL OSI USA News –

January 25, 2025
MIL-OSI USA: Congressman Kim, Burlington County Commissioners Break Ground on Emergency Shelter and Celebrate the Impact of Federal Project Funding

Source: United States House of Representatives – Congressman Andy Kim (NJ-03)

WESTAMPTON, N.J. – Today, Congressman Andy Kim (NJ-03) joined Burlington County Commissioners for a groundbreaking ceremony to celebrate the start of construction on Burlington County’s first-ever emergency shelter. In 2022, Congressman Kim helped secure $3 million in Community Project Funding for Burlington County to address local needs with the new facility.

“As we continue working to address affordability and housing access issues, we must also look after people’s immediate needs and uphold the basic right for everyone to have a roof over their head,” said Congressman Kim. “Today’s groundbreaking is a culmination of incredible planning and leadership in Burlington County to address a long-overdue community need. The first of its kind in Burlington, this shelter will not just look after people’s safety, but also help set them up for healthy and secure lives after they leave. I am proud to have brought federal dollars back to get shovels in the ground and look forward to seeing this project through to its completion.”

“The Burlington County emergency shelter will assist and guide those experiencing emergent housing needs through the services and programs available to help them move into transitional and permanent housing,” said Burlington County Commissioner Director Felicia Hopson. “This is something our county has desperately needed for decades. We’re excited to be taking this important step, and we are grateful for the support of leaders like Congressman Kim who have championed this initiative by helping to secure significant federal assistance that is moving this project toward completion.”

For Fiscal Year 2023, Congressman Kim secured Burlington County $3 million to help construct a non-congregate homeless shelter, support county residents who fall below the poverty line, and provide a safer alternative than emergency housing in unsupervised area motels and hotels. The emergency shelter will be a standalone two-story, 33,792 square-foot building and will serve adult men and women experiencing an emergent housing crisis, providing them sleeping accommodations, warm meals, showers, laundry facilities, and bathrooms. Individuals will be paired with a case manager to guide them through the services and programs to help them move into transitional or permanent housing.

The groundbreaking ceremony was held at the site of the new shelter behind the existing Burlington County Human Services Building in Westampton and included Congressman Kim, Burlington County Commissioner Director Felicia Hopson and Commissioners Daniel O’Connell, Allison Eckel, and Balvir Singh, State Senator Troy Singleton, Westampton Mayor Sandy Henley, Assemblywoman Andrea Katz, Assemblyman Herb Conaway, and Pastor Darlene Trappier, founder and director of Beacon of Hope, a Mount Holly-based social service provider that aids and advocates for those experiencing homelessness.

Congressman Kim is committed to supporting individuals experiencing homelessness and tackling the affordability crisis and other root causes of housing insecurity. In Congress, he has supported $2.5 billion for the HOME Investment Partnerships Program to help meet the needs of the millions of low income households across the U.S. without access to affordable housing. Congressman Kim is also a cosponsor of the Housing Crisis Response Act to build fair and affordable housing and the Housing Supply and Affordability Act to remove barriers to local and state governments from increasing housing supply.

Congressman Kim is the Ranking Member on the Military Personnel Subcommittee, and a member of the House Armed Services Committee, the Foreign Affairs Committee, and the House Select Committee on Strategic Competition between the United States and the Chinese Communist Party. More information about Congressman Kim’s accessibility, his work serving New Jersey’s 3rd Congressional District, and information on newsletters and his monthly town halls can be found on his website by clicking here.

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MIL OSI USA News –

January 25, 2025
MIL-OSI USA: Governor Ron DeSantis Appoints Brad Embry as Okaloosa County Clerk of the Circuit Court and Comptroller

Source: US State of Florida

TALLAHASSEE, Fla.—Today, Governor Ron DeSantis announced the appointment of Brad Embry as Okaloosa County Clerk of the Circuit Court and Comptroller. This appointment is effective January 1, 2025.

Brad Embry
Embry is the Okaloosa County Clerk of the Circuit Court and Comptroller-Elect. Previously, he served as Chief of Staff for the Okaloosa County Clerk of the Circuit Court and Comptroller, a Special Agent for the Florida Department of Law Enforcement, and an Investigator for the Okaloosa County Sheriff’s Office. Embry earned his bachelor’s degree in criminal justice from Troy University and his master’s degree in public administration from the University of West Florida.

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MIL OSI USA News –

January 25, 2025
MIL-OSI USA: Governor Ron DeSantis Appoints Four to the Board of Architecture and Interior Design

Source: US State of Florida

TALLAHASSEE, Fla.—Today, Governor Ron DeSantis announced the appointment of Ivette A. Arango, Charles Clary, Beverly Frank, and Peter Jones to the Board of Architecture and Interior Design.

Ivette A. Arango
Arango, of Coral Gables, is the Owner and Principal Interior Designer of Ivette Arango Interiors. She is the recipient of the 2019 Coral Gables Chamber of Commerce Outstanding Renovation and Restoration Project Award. Arango earned her bachelor’s degree in design and her master’s degree in architecture from the University of Florida.

Charles Clary
Clary, of Baker, is the former Owner and President of DAG Architects. He was previously elected as a Florida State Senator and served in the United States Navy. He is the recipient of the Florida Association of the American Institute of Architects President’s Award and is a Fellow of the American Institute of Architects. Clary earned his bachelor’s degrees in architecture and arts in environmental design from Auburn University.

Beverly Frank
Frank, of St. Petersburg, is the Principal and Architect at BFRANK Studios, LLC. Active in her community, she currently serves on the Florida Council on Arts and Culture and previously served as the President of the American Institute of Architects of Florida. Frank earned her bachelor’s degree in art education and her master’s degree in architecture from the University of South Florida.

Peter Jones
Jones, of Port St. Lucie, is the former Director of Architecture & Design at Atlantic Fields Club. He was previously appointed to the Florida Building Code Administrators and Inspectors Board. Jones earned his bachelor’s degree in architecture from the University of Florida and a master’s degree in architecture from Rice University.

These appointments are subject to confirmation by the Florida Senate.

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MIL OSI USA News –

January 25, 2025
MIL-OSI USA: Governor Ron DeSantis Appoints Cecil “Trey” Hightower as Jefferson County Clerk of the Circuit Court and Comptroller

Source: US State of Florida

TALLAHASSEE, Fla.—Today, Governor Ron DeSantis announced the appointment of Cecil “Trey” Hightower as Jefferson County Clerk of the Circuit Court and Comptroller. This appointment is effective November 1, 2024.

Cecil “Trey” Hightower
Hightower is the Jefferson County Clerk of the Circuit Court and Comptroller-Elect. Previously, he served as an Administrative Specialist for the City of Tallahassee Treasurer-Clerk’s Treasury Management Office. Hightower has a background in account balancing, account reconciliation, budgeting, and fraud monitoring.

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MIL OSI USA News –

January 25, 2025
MIL-OSI USA: Governor Ron DeSantis Appoints Amy Blackburn as Hernando County Tax Collector

Source: US State of Florida

TALLAHASSEE, Fla.—Today, Governor Ron DeSantis announced the appointment of Amy Blackburn as Hernando County Tax Collector. This appointment is effective November 1, 2024.

Amy Blackburn
Blackburn is the Hernando County Tax Collector-Elect. Previously, she served as the Chief Deputy of Finance Administration for the Hernando County Tax Collector. Blackburn earned her bachelor’s degree in business administration and marketing from the University of Florida.

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MIL OSI USA News –

January 25, 2025
MIL-OSI USA: Governor Ron DeSantis Appoints Derek Barrs to the School Board of Flagler County

Source: US State of Florida

TALLAHASSEE, Fla.—Today, Governor Ron DeSantis announced the appointment of Derek Barrs to the School Board of Flagler County.

Derek Barrs
Barrs is the Associate Vice President for HNTB Corporation. Active in his community, he currently serves as a member of the American Trucking Association Law Enforcement Advisory Board, the Florida Trucking Association, and the Flagler Sheriffs Employee Trust Board of Directors. Barrs earned his associate degree in criminal justice from North Florida College and his bachelor’s degree in public administration from Flagler College.

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MIL OSI USA News –

January 25, 2025
MIL-OSI Security: Marion Man Sentenced to 262 Months in Prison

Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

FORT WAYNE–James Darquan McCreary, 45 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to possessing with intent to distribute cocaine and possessing a firearm as a convicted felon, announced United States Attorney Clifford D. Johnson.

McCreary was sentenced to 262 months in prison followed by 8 years of supervised release.

According to documents in the case, in March 2020, McCreary possessed more than 500 grams of cocaine that was intended for distribution and illegally possessed firearms as a convicted felon. McCreary was determined to be a career offender based on his prior felony battery and robbery convictions from Grant County, Indiana.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the J.E.A.N. (Joint Effort Against Narcotics) Team Drug Task Force, the Indiana State Police, the Marion Police Department, the Grant County Sheriff’s Department, the Grant County Prosecuting Attorney’s Office, the Cass County Sheriff’s Department, and the Wabash County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Anthony W. Geller.

MIL Security OSI –

January 25, 2025
MIL-OSI Security: South Florida Man Sentenced to 30 Years in Prison for Distribution of Fentanyl Resulting in Death of Baby and Possession of Firearms as a Convicted Felon

Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

MIAMI – Yesterday afternoon, Darnell Mendez, 36, was sentenced to 30 years in federal prison, followed by five years of supervised release, by U. S. District Judge Robin L. Rosenberg. Mendez and his girlfriend, Samantha Yi, previously pled guilty to federal offenses resulting from a long-term joint investigation by the Boynton Beach Police Department (BBPD), the Palm Beach County Sheriff’s Office (PBSO), and the Drug Enforcement Administration (DEA) following the death of a 10-month-old infant in Boynton Beach, Fla. who had ingested fentanyl. Yi is scheduled to be sentenced on Jan. 9, 2025, and faces a minimum mandatory sentence of at least twenty years in prison.

On March 31, 2022, PBSO responded to a 911 call of an infant in distress. The infant was transported to Bethesda Hospital East in Boynton Beach with her mother. On April 1, 2022, the baby was transferred to Joe DiMaggio Children’s Hospital in Hollywood, Fla. On April 5, 2022, the baby died. An autopsy conducted by the Palm Beach County Medical Examiner determined that the baby’s death was caused by fentanyl intoxication and that her manner of death was a homicide.

The BBPD conducted a homicide investigation during which law enforcement recovered fentanyl at the baby’s home. The investigation determined that the baby’s mother and father were addicts and had been abusing fentanyl regularly in the kitchen of their apartment. The investigation also determined that the baby was teething and ingested fentanyl on March 31, 2022, while in the care of her mother, and while her father was at work. The mother was arrested by the BBPD and charged with aggravated manslaughter of a child by culpable negligence.

DEA joined the investigation to identify the drug dealers that were responsible for the distribution of the fentanyl that killed the baby. Through data and information retrieved from the mother’s cellphone, law enforcement was able to identify Yi as the drug dealer. The investigation uncovered months of electronic communications exchanged between Yi and the mother involving drug transactions in which the mother was the customer. The investigation further determined that Yi’s boyfriend, Mendez was also involved in the distribution of fentanyl. Investigators were able to determine that on March 30, 2022, the mother met with Yi in Boynton Beach to purchase fentanyl, and that fentanyl was ingested by the baby resulting in her death.

As part of the joint investigation, DEA, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), BBPD, and PBSO conducted an operation involving two undercover officers who purchased fentanyl from Yi and Mendez. The undercover operation culminated in the arrests of Yi and Mendez on March 6, at their residence in Lake Worth, where law enforcement discovered 14 firearms. As part of their pleas, Yi and Mendez admitted being felons unlawfully in possession of firearms.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the DEA, Miami Field Division, Special Agent in Charge Christopher A. Robinson of the ATF, Miami Field Division, Chief Joe DeGiulio of BBPD, and Sheriff Ric Bradshaw of PBSO announced the sentencing.

The Office of State Attorney Dave Aronberg for the 15^th Judicial Circuit – Palm Beach County provided invaluable assistance. Assistant U.S. Attorneys Adam McMichael and Shannon O’Shea Darsch are prosecuting the case.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-cr-80041.

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MIL Security OSI –

January 25, 2025
MIL-OSI Security: Convicted Murderer Found Guilty of Illegally Possessing Multiple Firearms Following Federal Jury Trial

Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

INDIANAPOLIS— A federal jury has convicted Salam Abdul Ali, 57, of Indianapolis, of illegally possessing firearms as a previously convicted felon, following a one-day trial.

According to court documents and evidence introduced at trial, on January 28, 2024, Indianapolis Metropolitan Police Department (IMPD) officers were dispatched to a home for a domestic disturbance call. Upon arrival, a woman who lived at the home with her children reported that her ex-boyfriend, Salam Abdul Ali, owned guns and made threats to kill her, her children, and her brother following an argument the previous night.

On February 14, 2024, IMPD investigators conducted a court-authorized search at Ali’s residence. During the search, investigators located five firearms in his bedroom, along with ammunition and firearm accessories. Ali was present and admitted to law enforcement officers, “I got guns, I sure do,” which was captured on body worn camera.

During the investigation, officers learned that Ali’s former name was Christopher Butler. Ali changed his name from Butler after he was convicted of murder in Marion County and sentenced to sentenced to 60 years in prison. He was released from state prison in approximately 2013. In 2019, Ali was convicted in federal court for his involvement in a drug trafficking conspiracy and sentenced to time served in federal prison. Ali was still on federal supervised release at the time of his most recent arrest. Ali is permanently prohibited from ever again legally possessing a firearm as a result of his felony convictions.

The Bureau of Alcohol, Tobacco, Firearms and Explosives and IMPD investigated this case. U.S. District Judge Matthew P. Brookman presided over the trial and will sentence the defendant at a future hearing. Ali faces up to 15 years in federal prison.

U.S. Attorney Zachary A. Myers thanked Assistant U.S. Attorneys Pam Domash and Zachary Szilagyi, who prosecuted this case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

###

MIL Security OSI –

January 25, 2025
MIL-OSI Security: Gore Resident Sentenced For Federal Firearm Charge

Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kelly Don Girty, Jr., age 30, of Gore, Oklahoma, was sentenced to 46 months for illegally possessing a firearm. The Court ordered the federal sentence to run consecutive to state sentences Girty received in the District Court of Sequoyah County.

The charges arose from an investigation by the Sequoyah County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

On May 2, 2024, Girty pleaded guilty to one count of Felon in Possession of a Firearm. According to investigators, on January 7, 2024, a Sequoyah County Sheriff’s deputy conducting a routine traffic stop discovered Girty in possession of a .22 caliber bolt action rifle. At the time of the stop, Girty had been convicted of a crime punishable by imprisonment for a term exceeding one year and was prohibited from possessing firearms.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The Honorable John C. Coughenour, Senior U.S. District Judge in the United States District Court for the Western District of Washington, sitting by assignment, presided over the hearing in Muskogee, Oklahoma. Girty will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.

Assistant U.S. Attorney Jonathan E. Soverly represented the United States.

MIL Security OSI –

January 25, 2025
MIL-OSI USA: Wyden, Merkley, Blumenauer, Hoyle: State of Oregon & Four Tribes Earn More Than $12 Million in Federal Funds for Grid Resilience

US Senate News:

Source: United States Senator Ron Wyden (D-Ore)
October 30, 2024
Tribes with Oregon presence to receive federal investments are the Confederated Tribes of the Warm Springs, Cow Creek Band of Umpqua Tribe of Indians, Burns Paiute and Nez Perce
Washington, D.C. – U.S. Sens. Ron Wyden and Jeff Merkley as well as U.S. Reps. Earl Blumenauer and Val Hoyle today announced that Oregon’s Energy Department has secured $10.9 million and four Tribes with members in Oregon have earned a combined $1.16 million in federal investment to modernize the electric grid and reduce the impacts of extreme weather while also ensuring power sector reliability.
The four Tribes securing the federal funds are the Confederated Tribes of the Warm Springs, Cow Creek Band of Umpqua Tribe of Indians, Burns Paiute and Nez Perce.
“Oregon families, small businesses, schools, hospitals and more rely on a dependable energy grid, said Wyden, who also has introduced the Grid Resilience Improvement through Dedicated (GRID) Assistance Act. “These fresh federal investments in grid resilience are incredibly timely after this year’s state record of nearly 2 million acres burned by wildfires. I’m gratified these resources are heading to these Tribes along with the state Energy Department, and will keep battling for similar funds for communities throughout the state.”
“As devastating wildfires, droughts, and intense winter storms continue to grip Oregon, we must invest in strengthening our power grids to safeguard Oregon families and businesses,” Merkley said. “It is great news that these federal funds from the Bipartisan Infrastructure Law are heading to the Oregon Department of Energy and Tribes to make these critical improvements that will make all the difference for communities across Oregon when disasters strike.”
“Our communities need an electric grid that can withstand the increasingly severe impacts of the climate crisis. Thanks to Democrats in Congress, Oregon and Tribal nations are receiving the investments necessary build this reality with a smarter, more resilient power grid,” said Blumenauer.
“As this season’s record-breaking wildfire season showed, extreme weather, caused by the climate crisis, is becoming increasingly common across Oregon,” Hoyle said. “These funds will help to fortify our energy infrastructure against extreme weather and improve its dependability across the state and in Tribal communities. I’ll continue working with federal and state partners to ensure Oregon’s electric grid is safe and resilient.”
The federal money for the state Energy Department and four Tribes is part of a combined total of $473.6 million nationally in fiscal year 2024 Grid Resilience State and Tribal Formula Grants from the U.S. Department of Energy. The resources will be distributed as follows:
·      Oregon Department of Energy, $10.9 million
·      Confederated Tribes of the Warm Springs, $454,958
·      Nez Perce Tribe, $290,877
·      Cow Creek Band of Umpqua Tribes of Indians, $268,172
·      Burns Paiute Tribe, $148,901
“The Confederated Tribes of the Warm Springs is thankful for the federal government’s financial investment in our ability to protect our communities from extreme weather situations,” said Jonathan W. Smith, Sr., Chairman, Tribal Council for the Confederated Tribes of the Warm Springs Reservation of Oregon. “These funds will allow us to develop community resilience centers on our reservation for our tribal members to seek refuge during unbearably hot and cold weather patterns.”
“The Burns-Paiute tribe has identified energy security and resilience as a key priority,” said Tracy Kennedy, Chair of the Burns-Paiute Tribe. “We appreciate the support from Senator Wyden and Senator Merkley in helping us get funding to achieve our goals.”
“For the Cow Creek Band of Umpqua Tribe of Indians, we aim to use these generous funds to improve the reliability of delivering power, water and utility services provided by our own Umpqua Indian Utility Cooperative to the many Cow Creek Umpqua Tribally-owned properties, our Tribal citizens, and our community members in Canyonville,” said Carla Keene, Chairman of the Cow Creek Band of Umpqua Tribe of Indians. “This grant allows us to exercise our sovereign rights, strengthen the resilience of our system, and put us closer to achieving one of our long-term goals of energy independence.”–
“The Nez Perce Tribe is committed to helping the Northwest meet its energy needs in a cleaner and smarter way that will address the impacts of current energy demands on salmon restoration,” said Shannon F. Wheeler, Chairman, Nez Perce Tribal Executive Committee. “These funds are an important component of this collaborative work with energy utilities and other stakeholders in the Northwest and we are excited that these funds will allow us to continue to do this work.”

MIL OSI USA News –

January 25, 2025
MIL-OSI: NVIDIA Sets Conference Call for Third-Quarter Financial Results

Source: GlobeNewswire (MIL-OSI)

SANTA CLARA, Calif., Oct. 30, 2024 (GLOBE NEWSWIRE) — NVIDIA will host a conference call on Wednesday, November 20, at 2 p.m. PT (5 p.m. ET) to discuss its financial results for the third quarter of fiscal year 2025, which ended October 27, 2024.

The call will be webcast live (in listen-only mode) on investor.nvidia.com. The company’s prepared remarks will be followed by a question-and-answer session, which will be limited to questions from financial analysts and institutional investors.

Ahead of the call, NVIDIA will provide written commentary on its third-quarter results from its chief financial officer, Colette Kress. This material will be posted to investor.nvidia.com immediately after the company’s results are publicly announced at approximately 1:20 p.m. PT.

The webcast will be recorded and available for replay until the company’s conference call to discuss financial results for its fourth quarter and fiscal year 2025.

About NVIDIA
NVIDIA (NASDAQ: NVDA) is the world leader in accelerated computing.

For further information, contact:

Investor Relations Corporate Communications

NVIDIA Corporation NVIDIA Corporation

ir@nvidia.com press@nvidia.com

© 2024 NVIDIA Corporation. All rights reserved. NVIDIA and the NVIDIA logo are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and other countries.

The MIL Network –

January 25, 2025

MIL-OSI: North American Construction Group Ltd. Announces Results for the Third Quarter Ended September 30, 2024

Source: GlobeNewswire (MIL-OSI)

ACHESON, Alberta, Oct. 30, 2024 (GLOBE NEWSWIRE) — North American Construction Group Ltd. (“NACG”) (TSX:NOA.TO/NYSE:NOA) today announced results for the third quarter ended September 30, 2024. Unless otherwise indicated, financial figures are expressed in Canadian dollars and compared to the prior period ended September 30, 2023.

Third Quarter 2024 Highlights:

Combined revenue of $367.2 million compared favorably to $274.8 million in the same period last year, is a third quarter record, and reflected the best operational quarter to date from the Australian fleet of the MacKellar Group which was acquired on October 1, 2023.
Reported revenue of $286.9 million, compared to $196.9 million in the same period last year, was primarily driven by strong equipment utilization of 84% in Australia but was also supported by the Canadian heavy equipment fleet which posted an increase from 2024 Q2.
Our net share of revenue from equity consolidated joint ventures was $80.3 million in 2024 Q3 and compared to $77.9 million in the same period last year as the increases at the Fargo project in the current quarter were offset by gold mine project scopes in Northern Ontario completed in the prior quarter.
Adjusted EBITDA of $106.4 million and margin of 29.0% compared favorably to the prior period operating metrics of $59.4 million and 21.6%, respectively, as revenue increases resulted in higher gross EBITDA with margin improvements driven by effective operations in Australia and Canada.
Combined gross profit of $80.4 million and margin of 21.9% compares favorably to the 13.8% posted in the same period last year as both diversification efforts and effective operations during steady and consistent months contributed to improved margins in the quarter.
Cash flows generated from operating activities of $48.2 million was higher than the $37.5 million generated in the prior period as higher cash generation from the strong EBITDA was offset by the temporary impact of changes to working capital in the quarter.
Free cash flow generated in the quarter was $10.8 million. Free cash flow prior to working capital changes and increases in capital work in progress was over $55 million resulting from strong revenues and margins offset by our routine capital maintenance programs.
Net debt was $882.5 million at September 30, 2024, an increase of $159.1 million from December 31, 2023, as year-to-date free cash flow usage and growth asset purchases required debt financing. The cash-related interest rate was 6.5% driven by Bank of Canada posted rates and corresponding equipment financing rates.
On October 29, 2024, the Board of Directors declared a regular quarterly dividend of twelve cents which represents a 20% increase from the previous rate of ten cents per quarter.
Additional highlights include: i) in August, signed a $375 million five-year contract for fully maintained equipment fleet in Queensland; ii) in September, surpassed the 50% completion mark at the Fargo-Moorhead flood diversion project, iii) in October, completed delivery to site of twenty-five haul trucks from Canada to Australia; iv) commenced go-live activities for the Company’s ERP system in Australia phased integration ongoing through early November and iv) extended the credit facility agreement through to October 2027.

Joe Lambert, President and CEO, stated, “I would like to thank our operations team for their safe and efficient performance this quarter. The quarterly records set in Australia demonstrate both growth and operational excellence. The recent five-year contract award and the 25 trucks delivered from Fort McMurray have pushed this region to higher than 50% of our overall business and are further indicators of what will be an exciting 2025. In the oil sands region, we are in discussions with producers and expect to secure meaningful contracts in the near term, reaffirming strong client relationships and supporting our targets for next year.”

Consolidated Financial Highlights

	Three months ended						Nine months ended
	September 30,						September 30,
(dollars in thousands, except per share amounts)	2024			2023^(iv)			2024			2023^(iv)
Revenue	$	286,857		$	196,881		$	860,197		$	636,398
Total combined revenue⁽ⁱ⁾		367,155			274,757			1,042,591			875,666

Gross profit		65,098			26,518			168,057			89,213
Gross profit margin⁽ⁱ⁾		22.7	%		13.5	%		19.5	%		14.0	%

Combined gross profit⁽ⁱ⁾		80,415			38,004			205,229			130,181
Combined gross profit margin^(i)(ii)		21.9	%		13.8	%		19.7	%		14.9	%

Operating income		53,805			14,344			130,786			50,386

Adjusted EBITDA^(i)(iii)		106,384			59,371			286,516			195,827
Adjusted EBITDA margin^(i)(iii)		29.0	%		21.6	%		27.5	%		22.4	%

Net income		13,901			11,387			39,277			45,495
Adjusted net earnings⁽ⁱ⁾		31,253			14,295			72,961			52,060

Cash provided by operating activities		48,184			37,512			119,063			109,521
Cash provided by operating activities prior to change in working capital⁽ⁱ⁾		79,838			41,666			222,641			134,646

Free cash flow⁽ⁱ⁾		10,785			8,940			(32,518	)		(21,817	)

Purchase of PPE		61,812			39,295			203,772			114,210
Sustaining capital additions⁽ⁱ⁾		21,127			42,290			118,317			127,792
Growth capital additions⁽ⁱ⁾		21,437			1,727			60,987			4,475

Basic net income per share	$	0.52		$	0.43		$	1.47		$	1.72
Adjusted EPS⁽ⁱ⁾	$	1.17		$	0.54		$	2.73		$	1.96

⁽ⁱ⁾See “Non-GAAP Financial Measures”.
⁽ⁱⁱ⁾Combined gross profit margin is calculated using combined gross profit over total combined revenue.
⁽ⁱⁱⁱ⁾Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue.
^(iv)The prior year amounts are adjusted to reflect a change in accounting policy. See “Change in significant accounting policy – Basis of presentation”.

	Three months ended						Nine months ended
	September 30,						September 30,
(dollars in thousands)	2024			2023			2024			2023
Consolidated Statements of Cash Flows
Cash provided by operating activities	$	48,184		$	37,512		$	119,063		$	109,521
Cash used in investing activities		(60,221	)		(26,970	)		(198,919	)		(107,123	)
Effect of exchange rate on changes in cash		1,385			(1,100	)		508			(1,462	)
Add back of growth and non-cash items included in the above figures:
Growth capital additions^(i)(ii)		21,437			1,727			60,987			4,475
Capital additions financed by leases⁽ⁱ⁾		—			(2,229	)		(14,157	)		(27,228	)
Free cash flow⁽ⁱ⁾	$	10,785		$	8,940		$	(32,518	)	$	(21,817	)

⁽ⁱ⁾See “Non-GAAP Financial Measures”.
⁽ⁱⁱ⁾Included above in Cash used in investing activities.

Declaration of Quarterly Dividend

On October 29, 2024, the NACG Board of Directors declared a regular quarterly dividend (the “Dividend”) of twelve Canadian cents ($0.12) per common share, payable to common shareholders of record at the close of business on November 27, 2024. The Dividend will be paid on January 3, 2025, and is an eligible dividend for Canadian income tax purposes.

Financial Results for the Three Months Ended September 30, 2024

Revenue for 2024 Q3 of $286.9 million represented an increase of approximately $90.0 million (or 46%) from 2023 Q3. The increase is primarily due to the inclusion of results from the MacKellar Group (“MacKellar”) following our acquisition on October 1, 2023.

The Heavy Equipment – Australia segment showed strong performance, driven by MacKellar’s Q3 results generated from stable operating conditions during the quarter. Equipment utilization of the MacKellar fleet for the quarter of 84% was similar to 2024 Q2 but generated higher revenue as growth assets commissioned late in the second quarter in Western Australia and Queensland provided full quarter contributions. The month of July was particularly strong with utilization being above the target of 85% while August and September averaged 82%. DGI Trading Pty Ltd. (“DGI”) posted lower revenue in the quarter due to timing of large component sales but continues to benefit from international demand for low-cost used components and major parts required by heavy equipment fleets in the mining industry.

The Heavy Equipment – Canada segment posted a decline in revenue compared to the prior year as equipment utilization was 51% for the quarter in comparison to 56% in 2023 Q3. Quarter over quarter, the decrease in revenue represented a 23% decrease and was primarily driven by changes in work scopes at the Fort Hills and Syncrude mines offset by increases in operating hours at the Millennium mine. Additionally, the prior year’s quarter benefited from higher utilization rates from NACG assets being operated at the gold mine in northern Ontario, a project that concluded in 2023 Q3. When comparing to 2024 Q2, top-line revenue achieved in the quarter was 8% higher on consistent operating conditions from July to September as well as increased work scopes at the Millennium mine.

Combined revenue of $367.2 million represented a $92.4 million (or 34%) increase from 2023 Q3. Our share of revenue generated in 2024 Q3 by joint ventures and affiliates was $80.3 million, compared to $77.9 million in 2023 Q3. The Fargo-Moorhead flood diversion project, which completed another strong operational quarter, posted a 32% increase from scopes completed in the prior quarter and surpassed the 50% completion mark during the quarter. Mostly offsetting this variance was the completion of the gold mine project in northern Ontario which occurred in 2023 Q3.

Combined gross profit and margin of $80.4 million and 21.9% compares favorably to the $38.0 million and 13.8% posted in the prior quarter and was the compilation of strong operations across all business lines. In particular, consistent weather conditions in Australia resulted in productive operations and a 24.6% gross margin over the three months. In Canada, heavy equipment operations posted a 19.4% margin as operations stabilized from the first half of the year. The joint ventures posted a 19.1% margin, up from 14.7% in the prior quarter, as Nuna returned to profitable operations. The increases in margin were offset slightly within the Fargo joint ventures as additional costs were recognized in the quarter primarily related to project cost escalation.

Adjusted EBITDA and the associated margin of $106.4 million and 29.0% exceeded our 2023 Q3 results of $59.4 million and 21.6%, respectively. As mentioned above and despite lower revenue in the oil sands region, effective and efficient operation of the heavy equipment fleets in Australia and Canada generated a strong EBITDA margin. EBITDA margin for this quarter was more consistent with the first quarter and is reflective of the underlying consistent business of our heavy equipment fleets.

Depreciation of our Canadian and Australian heavy equipment fleets was 13.4% of revenue in the quarter. Depreciation as a percentage of revenue was 16.4% for the Heavy Equipment – Canada fleet which is higher than our historical average as increased customer demand for heavy equipment rentals has changed the revenue profile. The Heavy Equipment – Australia fleet, which averaged approximately 11.7% of revenue reflected both productive operations in the quarter as well as the depreciation of fair market values allocated upon purchase. On a combined basis, depreciation averaged 12.1% of combined revenue in the quarter as the lower capital intensity in Fargo and Nuna joint ventures modestly reduced the ratio.

General and administrative expenses (excluding stock-based compensation) were $9.6 million, or 3.4% of revenue, compared to $6.9 million, or 3.5% of revenue in 2023 Q3. The increase in expenses reflects the acquisition of the MacKellar Group. Cash related interest expense for the quarter was $14.2 million at an average cost of debt of 6.5%, compared to $7.8 million at an average cost of debt of 7.1% in 2023 Q3, as rates posted by the Bank of Canada directly impact our Credit Facility and have a delayed impact on the rates for secured equipment-backed financing. Total interest expense was $15.0 million in the quarter, compared to $8.1 million in 2023 Q3 based on the debt financing incurred upon acquisition of the MacKellar Group on October 1, 2023.

Adjusted earnings per share (“EPS”) of $1.17 on adjusted net earnings of $31.3 million was up 117% from the prior year figure of $0.54, consistent with the adjusted EBIT performance which was up 144% quarter over quarter. As mentioned above, the step-changes in interest from the MacKellar acquisition offset EBIT performance with the effective income tax rates being comparable for both quarters. Weighted-average common shares for the third quarters of 2024 and 2023 were relatively stable at 26,823,124 and 26,700,303, respectively, net of shares classified as treasury shares.

For the quarter, free cash flow generation was $10.8 million, driven primarily by adjusted EBITDA of $106.4 million. After accounting for sustaining capital additions of $21.1 million, cash interest expense of $14.2 million, and cash taxes paid of $9.3 million, the positive cash flow generation reached $61.8 million. However, changes in working capital and increases in capital work in progress deferred approximately $45 million of cash flow to future quarters, and the accumulation of distributable profits in our joint ventures negatively impacted cash flow by $10 million. Sustaining capital expenditures were focused on routine maintenance of heavy equipment fleets in Australia and Canada, with Canadian expenditures being lower than previous periods due to reduced operating hours and a disciplined approach in preparation for winter work scopes.

2024 Strategic Focus Areas

Safety – now on an international basis, maintain our uncompromising commitment to health and safety while elevating the standard of excellence in the field;
Execution – enhance equipment availability in Canada and Australia through in-house fleet maintenance, reliability programs, technical improvements, and management systems;
Operational excellence – with a specific focus on Nuna Group of Companies, put into action practical and experienced-based protocols to ensure predictable high-quality project execution;
Integration – implement ERP and best practices at MacKellar, including identification of opportunities to better utilize our capital and equipment in Australia;
Diversification – pursue diversification of customers and resources through strategic partnerships, industry expertise and investment in Indigenous joint ventures; and
Sustainability – further develop and deliver into our environmental, social, and governance targets as disclosed and committed to in our annual reporting.

Liquidity

Our current liquidity positions us well moving forward to fund organic growth and the required correlated working capital investments. Including equipment financing availability and factoring in the amended Credit Facility agreement, total available capital liquidity of $173.1 million includes total liquidity of $135.7 million and $20.0 million of unused finance lease borrowing availability as at September 30, 2024. Liquidity is primarily provided by the terms of our $485.7 million credit facility which allows for funds availability based on a trailing twelve-month EBITDA as defined in the agreement.

	September 30, 2024			December 31, 2023
Cash	$	77,670		$	88,614
Credit Facility borrowing limit		485,700			478,022
Credit Facility drawn		(395,700	)		(317,488	)
Letters of credit outstanding		(32,011	)		(31,272	)
Cash liquidity⁽ⁱ⁾	$	135,659		$	217,876
Finance lease borrowing limit		350,000			350,000
Other debt borrowing limit		20,000			20,000
Equipment financing drawn		(267,544	)		(220,466	)
Guarantees provided to joint ventures		(65,008	)		(74,831	)
Total capital liquidity⁽ⁱ⁾	$	173,107		$	292,579

⁽ⁱ⁾See “Non-GAAP Financial Measures”.

NACG’s Outlook for 2024

The following table provides projected key measures for 2024. These measures are predicated on contracts currently in place, including expected renewals, and the heavy equipment fleet that we own and operate.

Key measures		2024
Combined revenue⁽ⁱ⁾		$1.4 – $1.5B
Adjusted EBITDA⁽ⁱ⁾		$395 – $415M
Sustaining capital⁽ⁱ⁾		$150 – $170M
Adjusted EPS⁽ⁱ⁾		$3.95 – $4.15
Free cash flow⁽ⁱ⁾		$100 – $120M

Capital allocation
Growth spending⁽ⁱ⁾		$85 – $95M
Net debt leverage⁽ⁱ⁾		Targeting 2.1x

⁽ⁱ⁾See “Non-GAAP Financial Measures”.

Conference Call and Webcast

Management will hold a conference call and webcast to discuss our financial results for the quarter ended September 30, 2024, tomorrow, Thursday, October 31, 2024, at 7:00 am Mountain Time (9:00 am Eastern Time).

The call can be accessed by dialing:
Toll free: 1-800-717-1738
Conference ID: 86919

A replay will be available through November 29, 2024, by dialing:
Toll Free: 1-888-660-6264
Conference ID: 86919
Playback Passcode: 86919

The 2024 Q3 earnings presentation for the webcast will be available for download on the company’s website at www.nacg.ca/presentations/

The live presentation and webcast can be accessed at:

https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=71BDBAD7-6AC1-4CF9-9CFF-5BBCBBDEF924

A replay will be available until November 29, 2024, using the link provided.

Basis of Presentation

We have prepared our consolidated financial statements in conformity with accounting principles generally accepted in the United States (“US GAAP”). Unless otherwise specified, all dollar amounts discussed are in Canadian dollars. Please see the Management’s Discussion and Analysis (“MD&A”) for the quarter ended September 30, 2024, for further detail on the matters discussed in this release. In addition to the MD&A, please reference the dedicated 2024 Q3 Results Presentation for more information on our results and projections which can be found on our website under Investors – Presentations.

Change in significant accounting policy – Basis of presentation

During the first quarter of 2024, we changed our accounting policy for the elimination of our proportionate share of profit from downstream sales to affiliates and joint ventures to record through equity earnings in affiliates and joint ventures on the Consolidated Statements of Operations and Comprehensive Income. Prior to this change, we eliminated our proportionate share of profit on downstream sales to affiliates and joint ventures through revenue and cost of sales. The change in accounting policy simplifies the presentation for downstream profit eliminations and has no cumulative impact on retained earnings. We have accounted for the change retrospectively in accordance with the requirements of US GAAP Accounting Standards Codification (“ASC”) 250 by restating the comparative period. For details of retrospective changes, refer to note 16 in the Financial Statements.

Forward-Looking Information

The information provided in this release contains forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words “anticipate”, “believe”, “expect”, “should” or similar expressions and include all information provided under the above heading “NACG’s Outlook”.

The material factors or assumptions used to develop the above forward-looking statements and the risks and uncertainties to which such forward-looking statements are subject, are highlighted in the MD&A for the three and nine months ended September 30, 2024. Actual results could differ materially from those contemplated by such forward-looking statements because of any number of factors and uncertainties, many of which are beyond NACG’s control. Undue reliance should not be placed upon forward-looking statements and NACG undertakes no obligation, other than those required by applicable law, to update or revise those statements. For more complete information about NACG, please read our disclosure documents filed with the SEC and the CSA. These free documents can be obtained by visiting EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedarplus.com.

Non-GAAP Financial Measures

This press release presents certain non-GAAP financial measures because management believes that they may be useful to investors in analyzing our business performance, leverage and liquidity. The non-GAAP financial measures we present include “adjusted EBIT”, “adjusted EBITDA”, “adjusted EBITDA margin”, “adjusted EPS”, “adjusted net earnings”, “capital additions”, “capital work in progress”, “cash provided by operating activities prior to change in working capital”, “combined gross profit”, “combined gross profit margin”, “equity investment EBIT”, “free cash flow”, “general and administrative expenses (excluding stock-based compensation)”, “gross profit margin”, “growth capital”, “margin”, “net debt”, “sustaining capital”, “total capital liquidity”, “total combined revenue”, and “total debt”. A non-GAAP financial measure is defined by relevant regulatory authorities as a numerical measure of an issuer’s historical or future financial performance, financial position or cash flow that is not specified, defined or determined under the issuer’s GAAP and that is not presented in an issuer’s financial statements. These non-GAAP measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other companies. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Each non-GAAP financial measure used in this press release is defined and reconciled to its most directly comparable GAAP measure in the “Non-GAAP Financial Measures” section of our Management’s Discussion and Analysis filed concurrently with this press release.

Reconciliation of total reported revenue to total combined revenue

	Three months ended						Nine months ended
	September 30,						September 30,
(dollars in thousands)		2024		2023⁽ⁱⁱ⁾				2024		2023⁽ⁱⁱ⁾
Revenue from wholly-owned entities per financial statements	$	286,857		$	196,881		$	860,197		$	636,398
Share of revenue from investments in affiliates and joint ventures		144,574			168,667			382,789			516,637
Elimination of joint venture subcontract revenue		(64,276	)		(90,791	)		(200,395	)		(277,369	)
Total combined revenue⁽ⁱ⁾	$	367,155		$	274,757		$	1,042,591		$	875,666

⁽ⁱ⁾See “Non-GAAP Financial Measures”.
⁽ⁱⁱ⁾The prior year amounts are adjusted to reflect a change in accounting policy. See “Change in significant accounting policy – Basis of presentation”.

Reconciliation of reported gross profit to combined gross profit

	Three months ended				Nine months ended
	September 30,				September 30,
(dollars in thousands)		2024	2023⁽ⁱⁱ⁾			2024	2023⁽ⁱⁱ⁾
Gross profit from wholly-owned entities per financial statements	$	65,098	$	26,518	$	168,057	$	89,213
Share of gross profit from investments in affiliates and joint ventures		15,317		11,486		37,172		40,968
Combined gross profit⁽ⁱ⁾	$	80,415	$	38,004	$	205,229	$	130,181

Reconciliation of net income to adjusted net earnings, adjusted EBIT, and adjusted EBITDA

	Three months ended						Nine months ended
	September 30,						September 30,
(dollars in thousands)		2024			2023			2024			2023
Net income	$	13,901		$	11,387		$	39,277		$	45,495
Adjustments:
Loss (gain) on disposal of property, plant and equipment		348			(311	)		641			189
Write-down on assets held for sale		—			—			4,181			—
Stock-based compensation (benefit) expense		1,332			5,583			3,081			16,324
Change in fair value of contingent obligation from adjustments to estimates		17,727			—			26,585			—
Restructuring costs		—			—			4,517			—
Acquisition costs		—			1,161			—			1,161
Loss on equity investment customer bankruptcy claim settlement		—			—			—			759
Loss (gain) on derivative financial instruments		572			(2,618	)		845			(6,979	)
Net unrealized loss (gain) on derivative financial instruments included in equity earnings in affiliates and joint ventures		1,836			572			2,806			(649	)
Tax effect of the above items		(4,463	)		(1,479	)		(8,972	)		(4,240	)
Adjusted net earnings⁽ⁱ⁾		31,253			14,295			72,961			52,060
Adjustments:
Tax effect of the above items		4,463			1,479			8,972			4,240
Increase in fair value of contingent obligation from interest accretion expense		4,262			—			12,360			—
Interest expense, net		15,003			8,119			44,939			22,941
Income tax expense		6,768			1,733			16,325			11,892
Equity earnings in affiliates and joint ventures⁽ⁱⁱⁱ⁾		(4,428	)		(4,277	)		(9,545	)		(22,963	)
Equity investment EBIT^(i)(iii)		4,365			3,983			7,152			23,307
Adjusted EBIT⁽ⁱ⁾		61,686			25,332			153,164			91,477
Adjustments:
Depreciation and amortization		38,662			28,884			122,844			90,239
Write-down on assets held for sale		—			—			(4,181	)		—
Equity investment depreciation and amortization⁽ⁱ⁾		6,036			5,155			14,689			14,111
Adjusted EBITDA⁽ⁱ⁾	$	106,384		$	59,371		$	286,516		$	195,827
Adjusted EBITDA margin⁽ⁱ⁾⁽ⁱⁱ⁾		29.0	%		21.6	%		27.5	%		22.4	%

⁽ⁱ⁾See “Non-GAAP Financial Measures”.
⁽ⁱⁱ⁾Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue.
⁽ⁱⁱⁱ⁾The prior year amounts are adjusted to reflect a change in presentation. See “Accounting Estimates, Pronouncements and Measures”.

Reconciliation of equity earnings in affiliates and joint ventures to equity investment EBIT

	Three months ended						Nine months ended
	September 30,						September 30,
(dollars in thousands)		2024		2023⁽ⁱⁱ⁾				2024		2023⁽ⁱⁱ⁾
Equity earnings in affiliates and joint ventures	$	4,428		$	4,277		$	9,545		$	22,963
Adjustments:
Interest (income) expense, net		(618	)		(742	)		(1,337	)		(915	)
Income tax expense		738			448			(698	)		1,294
Loss (gain) on disposal of property, plant and equipment		(183	)		—			(358	)		(35	)
Equity investment EBIT⁽ⁱ⁾	$	4,365		$	3,983		$	7,152		$	23,307

About the Company

North American Construction Group Ltd. is a premier provider of heavy civil construction and mining services in Canada, the U.S. and Australia. For 70 years, NACG has provided services to the mining, resource and infrastructure construction markets.

For further information contact:

Jason Veenstra
Chief Financial Officer
North American Construction Group Ltd.
(780) 960-7171
IR@nacg.ca
www.nacg.ca

Interim Consolidated Balance Sheets

(Expressed in thousands of Canadian Dollars)
(Unaudited)

	September 30, 2024			December 31, 2023
Assets
Current assets
Cash	$	77,670		$	88,614
Accounts receivable		158,179			97,855
Contract assets		16,128			35,027
Inventories		77,150			64,962
Prepaid expenses and deposits		8,477			7,402
Assets held for sale		7,355			1,340
		344,959			295,200
Property, plant and equipment, net of accumulated depreciation of $474,655 (December 31, 2023 – $423,345)		1,235,447			1,142,946
Operating lease right-of-use assets		13,404			12,782
Investments in affiliates and joint ventures		85,192			81,435
Other assets		5,082			7,144
Intangible assets		10,052			6,971
Total assets	$	1,694,136		$	1,546,478
Liabilities and shareholders’ equity
Current liabilities
Accounts payable	$	123,110		$	146,190
Accrued liabilities		47,724			72,225
Contract liabilities		300			59
Current portion of long-term debt		94,485			81,306
Current portion of contingent obligations		37,601			22,501
Current portion of operating lease liabilities		1,852			1,742
		305,072			324,023
Long-term debt		723,487			611,313
Contingent obligations		101,752			93,356
Operating lease liabilities		12,010			11,307
Other long-term obligations		41,768			41,001
Deferred tax liabilities		118,133			108,824
		1,302,222			1,189,824
Shareholders’ equity
Common shares (authorized – unlimited number of voting common shares; issued and outstanding – September 30, 2024 – 27,827,282 (December 31, 2023 – 27,827,282))		229,455			229,455
Treasury shares (September 30, 2024 – 996,435 (December 31, 2023 – 1,090,187))		(15,809	)		(16,165	)
Additional paid-in capital		22,524			20,739
Retained earnings		154,398			123,032
Accumulated other comprehensive income (loss)		1,346			(407	)
Shareholders’ equity		391,914			356,654
Total liabilities and shareholders’ equity	$	1,694,136		$	1,546,478

Interim Consolidated Statements of Operations and
Comprehensive Income

(Expressed in thousands of Canadian Dollars, except per share amounts)
(Unaudited)

	Three months ended						Nine months ended
	September 30,						September 30,
		2024		2023⁽ⁱ⁾				2024		2023⁽ⁱ⁾
Revenue	$	286,857		$	196,881		$	860,197		$	636,398
Cost of sales		183,405			141,771			570,222			457,856
Depreciation		38,354			28,592			121,918			89,329
Gross profit		65,098			26,518			168,057			89,213
General and administrative expenses		10,945			12,485			36,630			38,638
Loss (gain) on disposal of property, plant and equipment		348			(311	)		641			189
Operating income		53,805			14,344			130,786			50,386
Equity earnings in affiliates and joint ventures		(4,428	)		(4,277	)		(9,545	)		(22,963	)
Interest expense, net		15,003			8,119			44,939			22,941
Change in fair value of contingent obligations		21,989			—			38,945			—
Loss (gain) on derivative financial instruments		572			(2,618	)		845			(6,979	)
Income before income taxes		20,669			13,120			55,602			57,387
Current income tax expense		2,238			1,495			5,003			3,198
Deferred income tax expense		4,530			238			11,322			8,694
Net income	$	13,901		$	11,387		$	39,277		$	45,495
Other comprehensive income
Unrealized foreign currency translation (gain) loss		(1,115	)		1,100			(1,753	)		1,462
Comprehensive income	$	15,016		$	10,287		$	41,030		$	44,033
Per share information
Basic net income per share	$	0.52		$	0.43		$	1.47		$	1.72
Diluted net income per share	$	0.47		$	0.39		$	1.32		$	1.51

⁽ⁱ⁾The prior year amounts are adjusted to reflect a change in accounting policy. See “Accounting Estimates, Pronouncements and Measures”.

The MIL Network –

January 25, 2025

MIL-OSI: North American Construction Group Ltd. Announces Normal Course Issuer Bid

Source: GlobeNewswire (MIL-OSI)

ACHESON, Alberta, Oct. 30, 2024 (GLOBE NEWSWIRE) — North American Construction Group Ltd. (“NACG” or “the Company”) (TSX:NOA/NYSE:NOA) today announced that it intends to commence a normal course issuer bid (the “NCIB”) to purchase, for cancellation, up to 2,087,577 common shares in the capital of the Company (“Common Shares”), which represents approximately 10% of the public float (as defined in the TSX Company Manual) and approximately 7.5% of the issued and outstanding Common Shares as of October 24, 2024. As at October 24, 2024, the Company had 27,827,282 Common Shares issued and outstanding.

Purchases of Common Shares under the NCIB may be made through the facilities of the Toronto Stock Exchange (“TSX”), the New York Stock Exchange (“NYSE”) and alternative trading systems in Canada and the United States by means of open market transactions or by such other means as may be permitted under applicable securities laws. Under the NCIB, and in order to comply with applicable securities laws, the Company will purchase a maximum of 1,391,364 Common Shares (or approximately 5% of the issued and outstanding voting common shares) on the NYSE and alternative trading systems.

The Company believes that the current market price of its Common Shares does not fully reflect their underlying value and that current market conditions provide opportunities for the Company to acquire Common Shares at attractive prices. In the Company’s view, a repurchase of Common Shares would be an effective use of its cash resources and would be in the best interests of the Company and its shareholders. The Company believes that it would both enhance liquidity for shareholders seeking to sell and provide an increase in the proportionate interests of shareholders wishing to maintain their positions.

The NCIB is expected to commence on or about November 4, 2024 and will terminate no later than November 3, 2025. All purchases of Common Shares will be made in compliance with applicable TSX and NYSE rules. The average daily trading volume of the Common Shares on the TSX for the six calendar months preceding October 1, 2024 is 62,910 Common Shares. In accordance with the TSX rules and subject to the exemption for block purchases, a maximum daily repurchase of 25% of this average may be made, representing 15,727 Common Shares. The price per Common Share will be based on the market price of such shares at the time of purchase in accordance with regulatory requirements.

About NACG
NACG is one of Canada and Australia’s largest providers of heavy construction and mining services. For over 70 years, NACG has provided services to mining, resource, and infrastructure construction markets.

Jason Veenstra, CPA, CA
Chief Financial Officer
P: 780.960.7171
E: ir@nacg.ca

The information provided in this release contains forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words “expected”, “estimated” or similar expressions, including the anticipated revenues and backlog to be generated by the contract. The material factors or assumptions used to develop the above forward-looking statements and the risks and uncertainties to which such forward-looking statements are subject are highlighted in the Company’s MD&A for the year ended December 31, 2023 and quarter ending September 30, 2024. Actual results could differ materially from those contemplated by such forward-looking statements because of any number of factors and uncertainties, many of which are beyond NACG’s control. For more complete information about NACG, please read our disclosure documents filed with the SEC and the CSA. These free documents can be obtained by visiting EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedarplus.com.

The MIL Network –

January 25, 2025

MIL-OSI Economics: IMF Executive Board Concludes the Seventh and Eighth Reviews under the Extended Fund Facility and Extended Credit Facility and Review under the Resilience and Sustainability Facility Arrangement with Kenya

Source: International Monetary Fund

October 30, 2024

The Executive Board’s decision to complete the reviews enables a combined disbursement of around US$606 million to support the authorities’ efforts to rebuild fiscal and external buffers, including to enhance resilience to climate shocks.
Resolution of the exceptional external financing pressure earlier this year has revived market confidence, aided stabilization of the shilling, and enabled a faster buildup of foreign exchange reserves. However, large revenue shortfalls in FY2023/24 and pushback against revenue measures owing to governance concerns pose a challenge to the ongoing fiscal consolidation efforts.
The Kenyan authorities face a difficult balancing act of boosting domestic revenues to protect critical spending in priority areas while meeting heavy debt service obligations. Delivering on this would call for improving governance and transparency to restore public trust in the effective use of public resources.

Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded today the seventh and the eighth reviews under the extended arrangement under the Extended Fund Facility (EFF) and the arrangement under the Extended Credit Facility (ECF), approved in April 2021, and a review under the Resilience and Sustainability Facility (RSF) arrangement, approved in July 2023, with Kenya.

The EFF/ECF arrangements aim to support Kenya’s program to address debt vulnerabilities while safeguarding resources for priority social and developmental needs; build resilience to shocks; improve governance and transparency; and support broader economic reforms to realize the country’s medium-term potential. The RSF arrangement aims to reinforce Kenya’s strong efforts to address climate-related challenges and catalyze further private climate finance.

The Executive Board’s decision allows for the immediate disbursements of SDR365.28 million (about US$485.8 million) under the EFF/ECF arrangements and SDR90.47 million (about US$120.3 million) under the RSF arrangement. In addition, following the resolution of exceptional financing needs earlier this year, the Board approved a reduction in the total access under the EFF/ECF arrangements from exceptional access, approved in January 2024 (see PR24/12), to within the normal access limits and a rebalancing of access toward the zero-interest ECF arrangement. Together with the recent changes to the IMF’s charges and surcharges policy, these adjustments would lower Kenya’s interest payments to the IMF.

Under the EFF/ECF arrangements, total IMF financial commitment stands at SDR2.714 billion (about US$3.61 billion), of which SDR2.343 billion (about US$3.12 billion) has been approved for disbursement. For the RSF arrangement, the corresponding amounts are SDR407.1 million (about US$541.3 million) and SDR135.70 million (about US$180.4 million), respectively.

In completing the reviews, the Executive Board recognized that the resolution of the exceptional external financing pressure earlier this year has revived market confidence, supporting shilling stabilization and facilitating faster buildup of reserves. However, the fiscal consolidation efforts have faced headwinds following a sizable tax revenue shortfall in FY2023/24 and withdrawal of the 2024 Finance Bill after widespread public protests. Nevertheless, the EFF/ECF program has delivered on reducing inflation, strengthening external buffers, and stabilizing the exchange rate. In addition, the Board approved waivers of non-observance for the end-December 2023 tax revenue and the end-June 2024 primary budget balance and tax revenue targets based on the corrective action taken through the passage of the Supplementary FY2024/25 Budget, which together with medium-term fiscal consolidation would help reduce debt vulnerabilities, a core objective of the program. The Board also completed review under the RSF arrangement and approved the disbursements associated with two reform measures implemented.

The Board emphasized that sustaining progress requires improving the quality of fiscal adjustment, addressing fiscal and financial sector vulnerabilities, advancing governance reforms, and implementing the structural agenda, including climate-related reforms. Continued efforts to support the vulnerable population, broadening the socio-political support for reforms, and ensuring agile policymaking will also be necessary.

At the conclusion of the Executive Board’s discussion, Ms. Gita Gopinath, First Deputy Managing Director of the IMF and Acting Chair, made the following statement:

“Kenya’s economy remains resilient, with growth above the regional average, inflation decelerating, and external inflows supporting the shilling and a buildup of external buffers, despite a difficult socio-economic environment.

“The EFF/ECF and the RSF arrangements continue to support the authorities’ efforts to anchor macroeconomic stability, reduce debt vulnerabilities, promote reforms, and mitigate climate-related risks.

“Performance since the last reviews of these arrangements has weakened. While accumulation of foreign exchange reserves and inflation were better than expected, the fiscal performance fell significantly short of the targets. The revenue and export underperformances increased debt vulnerabilities. Implementation of several reforms was also delayed.

“In this context, a difficult adjustment path lies ahead. A credible fiscal consolidation strategy remains central to addressing debt vulnerabilities while protecting social and development spending. Reforms to make the tax regime more efficient, equitable, and progressive as well as strengthening accountability, transparency, and efficiency of public finances will help garner political and societal support for reforms. Clearly communicating the necessity and benefits of the reforms is paramount.

“Given the elevated risks around the fiscal strategy, policymaking needs to be agile. Contingency planning remains critical, with policies adapting to evolving outcomes to safeguard stability and ensure that program objectives continue to be met.

“The Central Bank of Kenya’s decisive actions have supported price stability and external sustainability, including through institutional changes to improve the functioning of the monetary policy operational framework and the money and foreign exchange markets. Exchange rate flexibility is vital to improve resilience to external shocks and competitiveness. Addressing banks’ deteriorating asset quality and emerging risks requires close monitoring and strengthened oversight.

“Fast-tracking key reforms would raise medium-term potential. In particular, addressing deficiencies in governance, anti-corruption frameworks, and AML/CFT, including leveraging the requested governance diagnostic, is essential for garnering public trust and enhancing policy credibility, and for attracting fresh investments, including finance to build climate resilience.”

Kenya: Selected Economic Indicators, 2021–2026

2021		2022	2023	2024	2025	2026
Act.		Act.	Act.	Est./ Proj.	Proj.	Proj.
Output
Real GDP growth (percent)	7.6	4.9	5.6	5.0	5.0	5.0
Prices
Inflation –average (percent)	6.1	7.6	7.7	5.0	5.3	5.1
Central government finances (fiscal year)¹
Total revenue (percent of GDP)	16.1	17.5	16.7	17.2	18.0	18.7
Expenditure and net lending (percent of GDP)	24.4	23.7	22.5	22.8	22.3	22.7
Overall fiscal balance (percent of GDP)	–8.3	–6.2	–5.6	–5.3	–4.3	–4.0
Public debt
Gross nominal debt (percent of GDP)	68.1	67.8	73.1	67.0	68.8	68.8
Gross external debt (percent of GDP)	34.7	34.6	40.4	34.9	37.0	37.4
Money and Credit (end of period)
Broad money (percent change)	6.1	7.1	21.3	5.6	10.3	10.2
Credit to private sector (percent change)	8.6	12.5	13.9	3.3	12.4	11.2
Policy rate, end-of-period (percent)	7.0	8.75	12.50	…	…	…
Balance of payments
Current account balance (percent of GDP)	–5.2	–5.0	–4.0	–3.9	–4.0	–4.1
Gross international reserves (in months of imports)	4.7	4.4	3.8	4.1	4.1	4.2
Exchange rate
REER (average percent change; positive = appreciation)	–2.6	2.2	–8.3	…	…	…

Sources: Kenyan authorities; and IMF staff estimates and projections.

¹ Based on fiscal year (i.e., 2025 represents fiscal year 2024/25, covering July 2024–June 2025).

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER: Pavis Devahasadin

Phone: +1 202 623-7100Email: MEDIA@IMF.org

@IMFSpokesperson

MIL OSI Economics –

January 25, 2025

MIL-OSI USA: Congressman Jake Ellzey’s Staff Deployed as Election Observers

Source: United States House of Representatives – Representative Jake Ellzey (Texas, 6)

The Constitution entrusts each House of Congress with the responsibility to “judge the Elections, Returns, and Qualifications of its own Members.” This authority was brought into focus in 2020 when Democrats attempted to overturn the certified results of an Iowa congressional race and install their preferred candidate instead.

The Election Observer Program deploys congressional observers to polling locations nationwide to collect real-time, factual data that can assist in election disputes, seating challenges, and other election-related matters. This initiative is essential to House Administration Republicans’ work to promote election integrity and rebuild public confidence in the voting process. House staff members are encouraged to volunteer, and mandatory training is required for participation.

“Elections have consequences, and there are few elections as consequential as the one taking place this November,” said Ellzey. We must ensure that every citizen has their voice heard, and I am grateful to the members of my staff who have volunteered to participate in the Election Observer Program. Through this program, they will be deployed across the country in New Mexico’s 2^nd district, Michigan’s 13^th, and Connecticut’s 5^th. These races currently sit within the margin of error, and we must ensure that every vote is counted.”

Ellzey continued, “Whoever you vote for, as a citizen of the United States, you have a right to have the vote count, and we have a duty to ensure that it does. So, I want to thank every volunteer who is dedicating their time to ensure that we have safe and fair elections.”

######

MIL OSI USA News –

January 25, 2025
MIL-OSI Canada: Manitoba Government Now Requires Heated Buses on Roads
Source: Government of Canada regional news

October 21, 2024

Manitoba Government Now Requires Heated Buses on Roads

Requirements Will Improve Safety and Comfort for Buses on Manitoba Roads Starting Nov. 1: Naylor

Regulatory amendments that will require functional passenger heating systems on all buses travelling on Manitoba roadways and mandate daily inspection checks for the systems on some buses are coming into force Nov. 1, Transportation and Infrastructure Minister Lisa Naylor announced today.

“Many Manitobans travel by bus for personal, business, educational or medical reasons,” said Naylor. “Whether travelling by bus is the only option or their preferred choice, all passengers must be safe and comfortable when travelling during cold weather.”

The amendments to the Vehicle Equipment, Safety and Inspection Regulation and Commercial Vehicle Trip Inspection Regulation under the Highway Traffic Act will:
- require functional passenger heating systems on all buses;
- detail the methods of inspection to determine the heating system is functional; and
- add passenger heaters to the list of equipment that must be inspected before the start of a trip.
“For northern bus passengers travelling overnight during the winter, working heaters are a necessity,” said Mayor Colleen Smook, City of Thompson. “They’re a vital piece of safety equipment on highways where communities are hundreds of kilometres apart.”

The minister noted the regulatory amendments were initiated following concerning reports of incidents of passengers travelling by bus during frigid temperatures without adequate heat.

– 30 –

MIL OSI Canada News –
January 25, 2025
MIL-OSI Canada: Larger fines for illegal slaughter, uninspected meat
Source: Government of Canada regional news

[embedded content]

The sale of uninspected meat is illegal in Alberta. Illegal slaughter and food safety non-compliance pose a risk to human and animal health and could harm Alberta’s entire livestock and meat processing industry. If passed, the Meat Inspection Amendment Act would increase fines from a maximum of $10,000 to $100,000 for each offence.

Alberta’s government is proposing to increase these fines to ensure there is a significant deterrent, so offenders are motivated to comply with the Meat Inspection Act. The proposed changes would support food safety for Albertans without increasing consumer costs for inspected meat or operating costs for industry. The changes propose increased fines for those who commit an offence under the Meat Inspection Act and would bring Alberta in line with other jurisdictions.

“We are taking action to maintain public confidence in our food system. I strongly encourage all Albertans to buy their meat from licensed operators and retailers, and while buying meat, ask your retailer where the meat comes from and if it’s inspected.”

RJ Sigurdson, Minister of Agriculture and Irrigation

In addition to increasing fines, amendments would extend the amount of time to investigate and lay charges for the illegal slaughter and sale of uninspected meat. Currently, the act allows inspectors one year after the offence to investigate allegations of illegal slaughter or sale of uninspected meat. If passed, the investigation timeframe for a complex case would be extended to two years from the date the offence came to the attention of an inspector.

“Food safety is something that most Albertans take for granted because Alberta has some of the best people in our province and country looking out for our health. Both the federal and provincial regulatory bodies truly have the best interests of all Albertans in mind when they go out each day to do their jobs. That is the reason why changes are needed and made, to improve overall food safety and strengthen our provincial acts and regulations, to protect the health and safety of all Albertans.”

Mike Bouma, general manager, Family Meats

“As a meat safety and quality researcher, I applaud the Alberta government for their proposed amendments to the Meat Inspection Act. The substantial increase in penalties for contravention of the Meat Inspection Act will help to ensure that the meat that is available to consumers is safe for consumption.”

Lynn McMullen, professor emerita, University of Alberta

Quick facts
- The sale of uninspected meat is illegal in Alberta.
- Any meat or meat product that is sold or distributed in Alberta must come from an inspected slaughter facility (abattoir) or processing facility.
- Alberta government meat inspectors are on site in provincially licensed abattoirs to ensure the meat produced is safe for consumption.
- When required, Alberta provides additional inspected slaughter days to provincially licensed facilities, including on weekends, to support cultural celebrations.
- Alberta licenses 121 abattoirs that produce inspected meat under the supervision of provincial meat inspectors.
- Alberta has 65 meat inspectors and program specialists who support licensing, inspections and surveillance.
Related information
- Meat Inspection Act – rules on the slaughter and sale of inspected meat
- Directory of licensed slaughter operations – abattoirs, mobile butchers, mobile butcher facilities and on-farm slaughter operations
- Resources for provincially licensed slaughter operations
- Bill 28: Meat Inspection Amendment Act
Multimedia
- Watch the news conference
- Listen to the news conference
MIL OSI Canada News –
January 25, 2025
MIL-OSI New Zealand: Understanding Policing Delivery phase two research published

Source: New Zealand Police (National News)

Today Police and the Understanding Policing Delivery (UPD) Independent Panel have released a report, Kia Tika Ai, Kia Tōkeke Ai: Make Fair and Just Decisions, which summarises the phase two research of UPD.

Police Commissioner Andrew Coster says he is pleased to have been able to see this important work through from the beginning to the end.

“A number of recommendations have come out of this report and the earlier one (released in August).

“Police has already accepted a number from the first report.

“Whilst this new report will be for the incoming Commissioner and Executive to consider, the recommendations are broadly in line with work already underway in Police across a range of different work programmes.

“I want to thank our staff and communities for taking part and sharing their honest and vulnerable experiences.

“We know our staff are dealing with individuals every day who may have their own struggles, issues, addictions, or complex needs.

“I know our people work very hard to provide the best response in every circumstance.

“This research has shown the value in pursuing a deeper understanding of ourselves and all the communities we serve.”

The Panel identified the following themes across the phase two UPD research:

• Authentic and collaborative community and policing innovations are making a difference

• Systems, processes and cumulative experiences are getting in the way of fair and equitable policing for all communities

• Some incidents of unprofessional conduct were reported

• Being under-served, seen as undeserving, or being treated unfairly by police, is harmful.

“This is not a barometer of policing in New Zealand but an in-depth look at what works, and what is not working.

“We wanted to see policing from some of the perspectives and experiences of people in marginalised communities.”

Tā Kim Workman, Pou Ārahi and the first chair of the UPD Independent Panel says if there is one thing that stands out for him, it is the way the Police engaged in this research.

“The remarkable foresight and courage of Commissioner Coster in initiating this work will mark him out historically.

“What was even more remarkable was the preparedness of frontline staff to engage in the fairness and equity conversation.

“No other police jurisdiction has managed to get that level of Police staff cooperation.

“This was not research about the Police – it was research with the Police.

“That preparedness to have ‘difficult conversations’ explains why we arguably have the most progressive Police service in the world.”

The phase one research gave an indication of what the inequities were and who experienced them through an analysis of existing Police data.

In phase two, the qualitative approach provided insights into how these inequities are experienced by different communities and Police, including their impacts and what would make the difference.

This includes tangible ways forward towards fairer and more equitable policing and examples of where this is already happening.

The phase two research included engagement with tāngata whaikaha, D/deaf and disabled people, wāhine Māori who experience family harm, people who have experienced significant mental distress, Takatāpui and members of the rainbow community, gang whānau and some Police sites of innovation.

A deliberate focus was on gathering voices not typically heard.

UPD Independent Panel Chairperson Professor Khylee Quince says our researchers deliberately sought to hear the good and the bad of policing.

“Some of the experiences shared by community members in encounters with Police will be confronting to hear, and we thank them for their courage in coming forward.

“The researchers also heard of good Police practice across various sites of innovation around Aotearoa.

“Together these insights support our recommendations – that Police do more of what leads to fair and equitable policing, and less of what does not align with Police values, the upholding of human rights and their obligations under Te Tiriti o Waitangi.

“The Panel looks forward to the acceptance of this research by Police and the implementation and oversight of its recommendations under the incoming Police leadership team.”

Notes to media

This report makes eleven recommendations that build on the forty recommendations from the first phase research. The phase two recommendations are summarised below:

1. Value relational ways of working with communities and police-experienced whānau to provide more effective solutions

2. Amplify Māori and community-led local collaborations, where the Police play a supporting, enabling and resourcing role

3. Introduce a practising certificate for all police officers, supported by ongoing professional development

4. Further enhance Police training on de-escalation, history, Māori and other cultural responses and disability rights and disability justice to empower Police Officers

5. Embed an organisational learning approach across the Police and lead out from the top

6. Commit to regular analysis and public reporting on levels of service delivery and equity for Māori and marginalised communities

7. Build on the Police Disability Roadmap to embed disability and mental health responsive policing model as standard

8. Introduce independent governance and monitoring for all uses of TASER on people with existing health and disability conditions, children under 18, older people, and those in secure units, to ensure safe practice

9. Work with disabled people and whānau to record relevant individual information as a flag in NIA to support positive and effective engagement

10. Monitor and evaluate local and national innovative programmes and collaborations with iwi, communities and other agencies to scale what works

11. Build on the existing Āwhi programme to ensure Police Officers can, and do, act as a conduit to community and specialist supports and services.

The report can be viewed here.

ENDS

Issued by Police Media Centre

MIL OSI New Zealand News –

January 25, 2025
MIL-OSI New Zealand: Affordable housing project supporting home ownership
Source: New Zealand Government

Up to 300 affordable, healthy, community-tailored homes helping to support home ownership are set to be built in eastern Porirua, supported by Government funding for Our Whare Our Fale through the Building Homes for Pacific in Porirua initiative, Minister for Pacific Peoples Dr Shane Reti and Associate Housing Minister Tama Potaka say.

The blessing of the whenua and the groundbreaking ceremony took place today in Cannons Creek, with attendees from Pasefika communities, government, and members of local iwi Ngāti Toa Rangatira and Central Pacific Collective (CPC).

“This is a fantastic initiative that is helping address housing needs in our communities,” Dr Reti says.

“I am pleased that it’s achieving this in a way that transcends just providing housing, through designs that will strengthen communities and an initiative that will help people to purchase homes,” adds Mr Potaka.

The project, led in partnership by Central Pacific Collective and Ngāti Toa Rangatira, was allocated $114.611 million in government funding in 2022, managed by the Ministry for Pacific Peoples.

The housing and the spaces, inspired by Pacific villages and cultures, are intended to promote connection and belonging through community support and collective living.

The builds focus on promoting better health outcomes among Pacific peoples and factor in environmental sustainability.

Affordability is being ensured through several features:
- The land in eastern Porirua is being leased into perpetuity from Ngāti Toa, removing land costs from the purchase price.
- CPC is the developer, with houses built at cost and margins not passed on to the buyers.
- The project benefits from scale, minimising costs from suppliers, and keeping costs down through innovation and partnerships.
- CPC offers a shared equity scheme making it easier for households to raise a deposit and service housing costs.
Building for the first 18 homes will commence tomorrow on 1 November, following the turning of the first sod, and construction is expected to be completed in 2025.

Resource consent for the following two sites is underway.

“I want to acknowledge Central Pacific Collective, Te Rūnanga o Toa Rangatira, Ministry for Pacific Peoples and Kāinga Ora in coming together to support better housing outcomes in our communities,” says Dr Reti.

“This is an exciting development that ultimately will improve the lives of families, ease the cost of living, and improve outcomes in communities while we continue to help rebuild the economy, build more houses, and grow the economy for the benefit of New Zealanders.”

MIL OSI New Zealand News –
January 25, 2025
MIL-OSI USA: Kishida’s legacy: Scandals and compromise at home, global respect for security and diplomacy – AP

Source: United States Institute of Peace

TOKYO (AP) — Japanese Prime Minister Fumio Kishida will step down Tuesday, handing over leadership to his successor Shigeru Ishiba,…

TOKYO (AP) — Japanese Prime Minister Fumio Kishida will step down Tuesday, handing over leadership to his successor Shigeru Ishiba, who is expected to formally take office later in the day. He says he plans to call a snap election for Oct. 27.

Kishida’s popularity ratings were precarious during most of his three-year term due to damaging corruption scandals that eventually led him to bow out.

At home, Kishida was seen as a leader without a vision who compromised with powerful conservative nationalists within the ruling Liberal Democratic Party to stay in power. But he has won respect outside Japan, especially from the United States, for pushing bold changes in Japanese defense and security policies and for standing tougher against Russia and China.

Here is a lookback at Kishida’s leadership and his legacy:

Distress at home

After taking office in October 2021, Kishida made a number of major decisions, such as reversing Japan’s nuclear energy phase-out and pursuing a rapid military buildup. But he avoided controversial social issues related to gender and sexual diversity. As head of a smaller faction in the ruling party, his top priority appeared to be keeping a stable grip on power by avoiding clashes with members of the Liberal Democrats’ powerful conservative group, led by the late Prime Minister Shinzo Abe.

Abe’s assassination in July 2022 and subsequent major corruption scandals linked to Abe’s faction members left constantly in damage control mode, as his support ratings tumbled. Kishida himself narrowly escaped an explosives attack during a speech at a fishing port in western Japan’s Wakayama in April, 2023.

Investigations into Abe’s assassination led to revelations of the Liberal Democrats’ decades-long links to South Korea’s Unification Church. That was followed by a more damaging corruption scandal involving more than 80 LDP lawmakers, again mostly in Abe’s faction, involving illegal slush funds.

Several lawmakers, their aides and accountants were indicted in that scandal.

Kishida led internal probes and moved to reform and tighten political funding laws, but opposition lawmakers and voters viewed the measures as inadequate.

Public outrage over the slush funds scandal has caused the LDP to lose a few local elections this year and lawmakers within the party called for a fresh face to shake off the scandals in order to win the next national election.

Kishida ends his term as a kingmaker who could remain influential behind the scenes after he helped lift Ishiba to a come-from-behind victory in the party’s vote on Friday against staunch conservative Sanae Takaichi.

Stronger defense

Kishida, who long served as foreign minister under Abe, has won respect for his national security and foreign policies that significantly deepened ties with the United States and other partners such as Australia, the U.K., South Korea and the Philippines, while elevating the country’s international profile.

In December 2022, Kishida’s government adopted a security and defense strategy involving a rapid buildup of Japan’s military power to acquire a “counter-strike” capability with long-range cruise missiles, a major break from Japan’s post-World War II self-defense-only principle.

Kishida’s government set a five-year goal to double Japan’s military spending to nearly 2% of GDP, eventually to about 10 trillion yen ($70 billion), making it the world’s third biggest spender after the United States and China. But it’s unclear how Japan will fund that spending and balance it against other urgent needs such as coping with the country’s shrinking population.

In December, Kishida substantially eased Japan’s weapons export rules, allowing licensing of Japanese-made PAC-3 missile interceptors to the United States and future foreign sales of fighter jets that Japan is developing with the U.K. and Italy.

Kishida quickly joined other G7 countries in sanctioning Russia and supporting Ukraine. He has repeatedly said “Ukraine today may be East Asia tomorrow,” comparing the Russian invasion of Ukraine to China’s growing assertiveness in the Asia-Pacific region. He has worked on strengthening economic and security cooperation in the region.

“Although Kishida’s successes on foreign affairs were overshadowed by domestic political scandals involving his Liberal Democratic Party, as well as lackluster economic growth, he oversaw increases in Japan’s reputation and popularity in the region and globally, as well as the institutionalization of related partnership gains,” Mirna Galic, a senior policy analyst at the U.S. Institute of Peace, wrote in a recent article.

Better ties with South Korea

One of Kishida’s diplomatic successes was Japan’s improved ties with South Korea, especially in regional security and in ties with their mutual ally, the United Sates, due to shared concerns about China and North Korea.

Kishida, under pressure from Washington and with support from South Korean President Yoon Suk Yeol, helped mend ties between the two Asian neighbors that have suffered over Japan’s colonial-era legacy of colonialism and atrocities. Stable relations are key to the U.S.-led united front in the Pacific.

In April, Kishida made a state visit to Washington and spoke to Congress, stressing Japan’s determination to stand by America as a global partner. In 2023, President Joe Biden invited him to a trilateral summit at Camp David with Yoon where they agreed to strengthen their trilateral security framework.

When Kishida announced in August his plans to step down, Biden lauded Kishida’s leadership, saying he had helped take the U.S.-Japan alliance “to new heights.”

“Guided by unflinching courage and moral clarity, Prime Minister Kishida has transformed Japan’s role in the world,” Biden said in a statement. Kishida’s “courageous leadership will be remembered on both sides of the Pacific for decades to come,” he said.

Kishida also recently helped work out a deal with Beijing to lift a Chinese ban on imports of Japanese seafood that Beijing imposed due to Japan’s release of treated radioactive wastewater into the Pacific from its wrecked Fukushima Daiichi nuclear power plant. Tensions over China’s military activity near Japanese water and airspace persist.

He also deepened ties with Southeast Asian countries, the Pacific Island nations as well as so-called Global South developing countries.

G7 Hiroshima and nuclear disarmament

Kishida represents a constituency in Hiroshima and hosting a summit of the Group of Seven wealthy nations in the city in May 2023 was a highlight of his time in office aligned with his career goal of working toward a world free of nuclear weapons.

However, the G7 summit statement on nuclear disarmament defended the possession of nuclear weapons as a deterrence, disappointing and angering survivors of the U.S. 1945 atomic bomb attack.

Kishida says he adheres to Japan’s principles of not developing, possessing or allowing the deployment of nuclear weapons in its territory. Ishiba, a former defense minister, has advocated deepening a discussion among regional partners about the U.S. nuclear deterrence strategy.

“New Capitalism” never took off

Kishida espoused a “new capitalism” economic strategy calling for more equitable distribution of national wealth, an alternative to Abe’s heavy government spending and hyper-easy monetary policy. Neither policy has managed to get flagging growth back on track.

Kishida’s defense and childcare policies would require big spending and the wage hikes he supported failed to keep pace with price increases.

Government moves to try to reverse Japan’s falling birth rate involved mostly childcare allowances for married couples and didn’t address the problems of the growing number of young Japanese reluctant to marry and start families due to bleak job prospects, the high cost of living and a corporate culture that is unfriendly to working mothers.

Copyright © 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.

MIL OSI USA News –

January 25, 2025

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