NewzIntel.com

Category: Americas

  • MIL-OSI USA: USAID Announces New Project to Strengthen Systems that Prevent, Detect, and Respond to New and Emerging Health Threats

    Source: USAID

    Today, the United States Agency for International Development announced a new project that will strengthen the capacity of our partner countries to prevent, detect, and respond to the increasing occurrence and severity of epidemics, pandemics, and novel infectious disease threats.  

    Under the new project, Strengthening Infectious Disease Detection Systems (STRIDES), USAID will work with partner countries to build more reliable, safe and secure laboratory and disease surveillance systems, as well as more effective data management and reporting platforms – systems that are critical to preventing new and emerging infectious disease threats from spreading widely and rapidly.

    In more than 50 countries, USAID is strengthening the specific components necessary for strong global health security and pandemic preparedness. The work of STRIDES will be integral to these efforts, and to USAID’s role in achieving the United States commitment to apply a whole-of-government, science-based approach to strengthening global health security, as laid out in the U.S. Global Health Security Strategy and the National Biodefense Strategy and Implementation Plan for Countering Biological Threats, Enhancing Pandemic Preparedness, and Achieving Global Health Security. 

    STRIDES will be implemented by a consortium led by FHI 360 and consisting of other partners including PATH, Black & Veatch and Panagora Group, and six regional-based public health organizations: Amref Health Africa, African Society for Laboratory Medicine, Prisma, Africa One Health University Network, Southeast Asia One Health University and The Eastern Mediterranean Public Health Network.

    MIL OSI USA News –

  • MIL-OSI USA: Fortinet Updates Guidance and Indicators of Compromise following FortiManager Vulnerability Exploitation

    News In Brief – Source: US Computer Emergency Readiness Team

    Fortinet has updated their security advisory addressing a critical FortiManager vulnerability (CVE-2024-47575) to include additional workarounds and indicators of compromise (IOCs). A remote, unauthenticated cyber threat actor could exploit this vulnerability to gain access to sensitive files or take control of an affected system. At this time, all patches have been released.

    CISA previously added this vulnerability to its Known Exploited Vulnerabilities Catalog, based on evidence of active exploitation, as confirmed by Fortinet.

    CISA strongly encourages users and administrators to apply the necessary updates, hunt for any malicious activity, assess potential risk from service providers, report positive findings to CISA, and review the following articles for additional information: 

    MIL OSI USA News –

  • MIL-OSI USA: Deputy Administrator Isobel Coleman Participates in the World Food Prize

    Source: USAID

    Deputy Administrator Isobel Coleman will travel to Des Moines, Iowa to participate in the 2024 Norman E. Borlaug International Dialogue, hosted by the World Food Prize Foundation.

    The Borlaug International Dialogue is the premier annual event for the U.S. global food security and nutrition community. This Dialogue serves as a vital platform to elevate the actions and innovations needed for stronger and more resilient food systems. Deputy Administrator Coleman will deliver remarks on the bold measures necessary to unlock agriculture-led economic growth in Africa. She will also meet with global leaders committed to policy reforms and private sector investment aimed at reducing poverty, hunger, and malnutrition.

    MIL OSI USA News –

  • MIL-OSI USA: Tips for a Healthy and Safe Halloween

    Source: US State of Rhode Island

    The Rhode Island Department of Health (RIDOH) is reminding Rhode Islanders about Halloween safety precautions.

    Halloween street smarts

    Talk with kids about the risks of distracted walking. This includes texting, talking on or looking at a phone, and listening to music.

    Always accompany young children on their trick-or-treating rounds. Research shows that evenings from 6 p.m. to 9 p.m. are the riskiest times of day for child pedestrians.

    If your older children are trick-or-treating without you, plan and review a route that is acceptable to you. Agree on a specific time when they should return home.

    Older children should travel in groups and create a “buddy system.”

    Cross the street as a group at crosswalks.

    Stay on well-lit streets and always use the sidewalk. If no sidewalk is available, walk at the far edge of the roadway facing traffic.

    Caution kids to never enter a home or a car for a treat.

    Costume safety tips

    Plan costumes that are bright and reflective. Consider adding reflective tape or striping to costumes and trick-or-treat bags for greater visibility.

    Look for “flame resistant” on the costume labels. Wigs and accessories should also clearly indicate this.

    Hats should fit properly to prevent them from sliding over eyes and blocking vision.

    Consider non-toxic makeup and decorative hats as safer alternatives to masks.

    Do not use decorative contact lenses without an eye exam and a prescription from an eye care professional.

    Healthy Halloween tips

    Consider offering non-edible goodies to trick-or-treaters (such as spider rings, vampire fangs, pencils, or bubbles). Halloween is one of the trickiest days of the year for children with food allergies.

    Wait until children are home to sort and check treats before eating them.

    Enjoy sweets in moderation.

    Driving

    Drive slowly in residential neighborhoods.

    Watch for trick-or-treaters at intersections, medians, and on curbs.

    Watch for trick-or-treaters darting from between parked cars.

    Enter and exit driveways carefully.

    If a teen driver is in your household, consider not allowing that person to drive after dark on Halloween. If you have a teen driver who will be driving, talk about precautions and set specific rules.

    Continue to take measures to prevent mosquito bites

    This has been a higher-than-average risk year for mosquito-borne diseases, including Eastern Equine Encephalitis (EEE), in Southeastern New England. Due to seasonably low mosquito populations, the risk of mosquito-borne disease has significantly decreased. However, mosquito biting can still occur during unusually warm weather, with Southeastern New England experiencing warm temperatures late this week, including on Halloween. Mosquitoes become less active at temperatures below 58 degrees and become largely inactive when temperatures fall below 50 degrees. Until the entire state experiences a true hard frost (defined as three consecutive hours below 32 degrees) which kills adult mosquitoes, the risk of mosquito-borne disease remains. For that reason, Rhode Islanders who will be outdoors on Halloween should continue to take mosquito bite prevention measures. These prevention measures are most important at sundown (and sunrise).

    Wear long-sleeved shirts and long pants.

    Use EPA-approved bug spray with at least 20% DEET. Alternatively, people can use a bug spray with one of the following active ingredients: Picaridin, IR3535, oil of lemon eucalyptus (OLE), para-menthane-diol (PMD), or 2-undecanone. People should not use bug spray with DEET on infants under two months of age.

    Put mosquito netting over baby carriages.

    Visit www.health.ri.gov/mosquito for additional mosquito prevention tips.

    MIL OSI USA News –

  • MIL-Evening Report: 215 million hectares of forest – an area bigger than Mexico – could grow back by itself, if we can just leave it alone

    Source: The Conversation (Au and NZ) – By Brooke Williams, Research Fellow, School of Biology & Environmental Science, Queensland University of Technology

    Gustavo Frazao/Shutterstock

    About 215 million hectares of land – an area bigger than Mexico – could be reforested naturally and without costly manual planting, our new research shows.

    This would allow us to offset around 23.4 gigatonnes of global carbon emissions over the next three decades. That’s about 50 years worth of Australia’s carbon emissions (assuming 2023 emission rates continue).

    Extensive and effective forest restoration is crucial to mitigating climate change and conserving biodiversity.

    It’s vital we find cost-effective ways to get and keep more trees in the ground. One way to do this is just to let forests grow back by themselves. However, this isn’t possible in all deforested lands, as certain environmental conditions are needed for this approach to work.

    Our research identified land where this approach had strong potential.

    Allowing forests to grow back naturally in deforested areas, such as this degraded land in Brazil, could be more cost-effective than manual reforestation projects.
    Author provided

    The benefits of natural regeneration

    Globally, 65% of original tropical forest extent has been lost to make way for human development such as agriculture, roads, and urbanisation. Deforestation has contributed to climate change and biodiversity loss.

    We’ve also lost a worrying amount of what researchers call “ecosystem services”, meaning the benefits people derive from nature, such as clean water.

    Forest restoration is an important strategy for reversing the damage.

    Our paper, published in the journal Nature, looked at where natural regeneration is likely to be successful due to the surrounding environmental conditions.

    Natural regeneration is important because it is sometimes better than manual tree planting, which includes the costs of saplings, manual labour, fertilisation and maintenance.

    Using manual techniques in degraded landscapes can be expensive. It can also be less effective in terms of native biodiversity recovery and keeping water systems functioning well.

    Natural regeneration is a less costly alternative. That means allowing forests to grow back on their own or with carefully planned human intervention.

    For example, natural reforestation may cost between $US12 and $3,880 per hectare. By contrast, active regeneration methods in the tropics would cost between $105 and $25,830 per hectare.

    Natural regeneration restoration methods often have better long-term success and biodiversity outcomes than full manual tree-planting.

    Studies have found that biodiversity “success” – meaning richer biodiversity and more species – can be up to 56% higher when natural regeneration approaches were used (rather than manual planting projects).

    It’s vital we find cost-effective ways to get and keep more trees in the ground.
    Richard Whitcombe/Shutterstock

    Where might natural reforestation projects succeed?

    Until now, it’s not always been clear how to predict areas where natural regeneration is most likely to occur. That’s made it hard to do large-scale natural regeneration projects.

    Our research addresses this gap. We identified the best areas to roll out natural approaches in the tropics.

    We focused on tropical forested regions because they are particularly important.

    Their biodiversity is unparalleled and they provide vast economic, cultural, and recreational services to people.

    They also grow much faster than other forest types, and many large tropical forests have already been cleared and degraded.

    Factors that make a forest likely to regenerate naturally include:

    • the amount of surrounding forest
    • distance to existing forest and
    • soil organic carbon content

    This suggests areas with higher levels of landscape degradation and intensive land uses would be less likely to regenerate naturally.

    We found suitable environmental conditions for natural regeneration occur across:

    • 98 million hectares in the Neotropics (which includes many areas in South and Central America)

    • 90 million hectares in the Indomalayan tropics (which includes many areas in Southeast Asia, Malaysia, and India)

    • 25.5 million hectares in the continent of Africa

    Up to 52% of this natural regeneration could occur in just five countries: Brazil, Indonesia, China, Mexico, and Colombia.

    This suggests these countries would be excellent candidates for large scale natural regeneration projects.

    We also found that 29 other countries have at least one million hectares each that could be naturally reforested.

    We identified 400,000 hectares of deforested lands with potential for natural forest regeneration in the Australian tropics.

    Fixing forests will also improve biodiversity.
    Martin Prochazkacz/Shutterstock

    The world has committed to fixing forests

    The world has committed to ambitious forest restoration targets in order to substantially increase the area of forest ecosystems by 2050.

    These commitments include the Bonn Challenge, which aims to restore 350 million hectares by 2030.

    Another is Target 2 of the recently adopted Global Biodiversity Framework, which calls for 30% of the area of degraded ecosystems to be restored by 2030.

    Achieving these targets, especially for nations with emerging economies, will not be possible using active restoration techniques alone. This due to cost and feasibility constraints.

    To assist with this global task, we have made our dataset publicly available and free to use.

    Local communities at the centre

    Encouraging natural regeneration remains a major challenge, particularly on privately held and communally managed land because it can mean reduced land available for other uses.

    Providing local people with training and support to grow, harvest and market products sourced from naturally regenerating forests is also crucial. This could help keep young naturally regenerating forests standing and growing.

    This income could supplement or replace payments landowners and local people currently receive to look after land and prevent it from being deforested. Payment-based approaches are not always sustainable in the long term.

    Currently, many forests are controlled and managed by central or national governments. Giving local and Indigenous communities control over their forests would help encourage restoration that meets local needs.

    However, this requires appropriate technical support and monitoring.

    Importantly, our analysis does not define where restoration activities should or should not occur. We only show where natural forest regeneration is possible or more likely to succeed.

    We echo calls to ensure restoration occurs as equitably as possible, and foregrounds the needs of local people.

    Forest restoration should be as equitable as possible, and foreground the needs of local people.
    WNDR Worlds/Shutterstock

    Let’s give it a chance

    Natural forest regeneration presents an opportunity to restore vast areas of forest cheaply and effectively. It can help mitigate the effects of climate change and help countries meet their emissions reduction targets.

    Other benefits include conserving biodiversity, regulating water resources, reducing erosion, and making ecosystems more resilient.

    Recognising the massive regeneration capacity of tropical forests is key.

    It’s also crucial it occurs alongside protecting intact forests, and reducing deforestation.

    Robin Chazdon is the global co-director of the Assisted Natural Regeneration Alliance. She is a senior fellow with the World Resources Institute’s Global Restoration Initiative.

    Brooke Williams does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. 215 million hectares of forest – an area bigger than Mexico – could grow back by itself, if we can just leave it alone – https://theconversation.com/215-million-hectares-of-forest-an-area-bigger-than-mexico-could-grow-back-by-itself-if-we-can-just-leave-it-alone-236696

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Hurricane Unpreparedness in the Caribbean, Disaster by Imperial Design

    Source: Council on Hemispheric Affairs – Analysis-Reportage

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Canada: Opening Statement before the Senate Standing Committee on Banking, Commerce and the Economy

    Source: Bank of Canada

    Good afternoon. I’m pleased to be here with Senior Deputy Governor Carolyn Rogers to discuss our recent policy announcement and the Bank of Canada’s Monetary Policy Report.

    Last week, we lowered the policy interest rate by 50 basis points. It was our fourth consecutive decrease since June and brings our policy rate to 3.75%.

    We took a bigger step because inflation is now back to the 2% target, and we want to keep it close to the target.

    In the past few months, inflation has come down significantly. Headline inflation was 1.6% in September, and both our measures of core inflation were under 2½%. Price pressures are no longer broad-based. Our surveys also find that business and consumer expectations of inflation have shifted down and are nearing normal. All this suggests we are back to low inflation. This is good news for Canadians.

    Now our focus is to maintain low, stable inflation. We need to stick the landing.

    That means the upward and downward forces on inflation need to balance out. Economic activity picked up this year, but it is still soft. This softness has helped take the remaining steam out of inflation. With inflation now back at 2%, we want to see growth strengthen. Last week’s interest rate decision should contribute to a pickup in demand.

    Looking ahead, we expect the economy to gradually strengthen in 2025 and 2026, supported by lower interest rates. Population growth will be slower, but we anticipate consumer spending per capita will be picking up. We also expect growth in residential investment to rise as strong demand for housing lifts sales and spending on renovations. We expect business investment to strengthen as demand picks up, and exports should remain strong, supported by robust demand from the United States.

    Our forecast has inflation staying around the target over the projection horizon. The upward pressure from shelter and other services is expected to gradually diminish. With stronger demand, the downward pressure on inflation should also dissipate, keeping the upward and downward forces roughly balanced.

    There are risks around our inflation outlook. The biggest downside risk to inflation is that it could take longer than anticipated for household spending and business investment to pick up. On the upside, lower interest rates could fuel a stronger rebound in housing activity, or wage growth could remain high relative to productivity. We are also facing elevated geopolitical uncertainty and the risk of new shocks. Overall, we view the risks around our inflation forecast as reasonably balanced.

    If the economy evolves broadly in line with our forecast, we anticipate cutting our policy rate further to support demand and keep inflation on target. The timing and pace of further interest rate cuts will depend on incoming information and our assessment of its implications for the inflation outlook. We will take our monetary policy decisions one at a time.

    Let me conclude.

    High inflation and interest rates have been a heavy burden for Canadians. Now we are coming out the other side—monetary policy has worked to get inflation down. With inflation back to target and interest rates continuing to come down, families, businesses and communities should feel some relief.

    The Bank is committed to maintaining price stability for Canadians by keeping inflation close to the 2% target.

    With that summary, the Senior Deputy Governor and I would be pleased to take your questions.

    MIL OSI Canada News –

  • MIL-OSI USA: Rep. Norcross Presents $750,000 in Community Project Funding for the Redevelopment of John Lucas House in Gibbsboro

    Source: United States House of Representatives – Congressman Donald Norcross (1st District of New Jersey)

    CHERRY HILL, NJ – Today, Rep. Donald Norcross (D-NJ) presented $750,000 in Community Project Funding (CPF) to the Borough of Gibbsboro to redevelop the John Lucas House into a community event space.  

    The funding was secured through the Fiscal Year 2024 government funding package and will be used to assist in lead paint remediation, construct kitchen and restroom facilities, and repair structural deficiencies at the John Lucas House. The Borough envisions the house as the center for activities on Silver Lake and will be used to host public and private events.

    “Community Project Funding grants invest in our communities and support economic development, job creation, and critical projects that improve the quality of life,” Rep. Norcross said. “Bringing neighbors together for events is important for fostering a sense of community, and it’s an honor to have secured this funding to make this new event space a reality.”  

    “The FY2024 Congressional designated spending for the transformation of the former home of John Lucas into an events venue at Silver Lake in Gibbsboro complements the redevelopment of the former Paint Works Corporate Center into a destination with townhomes, walking trails, restaurants and office space,” said?Mayor Ed Campbell. “Gibbsboro is forever grateful to Congressman Norcross for his continued support for this important project and for his persistent dedication to seeing the three superfund sites in Gibbsboro fully remediated and the Borough’s effort toward economic redevelopment.” 

    Rep. Norcross recently secured 14 CPF awards totaling $13,565,031 for projects throughout New Jersey’s First Congressional District to support economic development, create jobs, and respond to the most pressing needs of the community. More information on the 14 projects can be found here. 

    Since the creation of CPFs in 2021, Rep. Norcross has secured $28.8 million in awards for local projects throughout South Jersey. CPF awards secured by Rep. Norcross range from road and transportation projects and affordable housing upgrades to improving health care and education accessibility.  

     

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    MIL OSI USA News –

  • MIL-OSI USA: Scott Slams SCOTUS Ruling Greenlighting Youngkin, Trump & GOP Voter Suppression Tactics

    Source: United States House of Representatives – Congressman Bobby Scott (3rd District of Virginia)

    Headline: Scott Slams SCOTUS Ruling Greenlighting Youngkin, Trump & GOP Voter Suppression Tactics

    NEWPORT NEWS, VA – Congressman Bobby Scott (VA-03), co-chair of the Congressional Voting Rights Caucus and Dean of the Virginia Congressional Delegation, issued the following statement on the U.S. Supreme Court’s decision reversing U.S. District Court Judge Patricia Tolliver Giles’ order requiring the Youngkin Administration to reinstate more than 1,600 voters who may have been illegally purged from Virginia’s voter rolls in violation of the National Voter Registration Act of 1993:

    “I am deeply disappointed and disturbed by the U.S. Supreme Court’s decision to greenlight blatant voter suppression efforts in the Commonwealth of Virginia. This decision will allow Governor Youngkin to strip Virginians of their right to vote in clear violation of federal law. This decision also perpetuates the falsehood that noncitizens are voting in meaningful numbers and former President Trump’s plan to undermine confidence in our elections.

    “The National Voter Registration Act is clear. It requires all states to complete any systematic removal of voters from its voter rolls 90 days before a federal election. This statute gives states ample time prior to this deadline to review its voter rolls. Most importantly, it provides voters sufficient time to rectify any improper removal prior to Election Day. U.S. District Court Judge Patricia Tolliver Giles determined that Governor Youngkin’s actions violated this statute, and the U.S. Court of Appeals for the Fourth Circuit upheld her order citing the Commonwealth’s defense of the action as ‘weak’ and that it ‘violates basic principles of statutory construction.’ Furthermore, the Fourth Circuit recognized that the Commonwealth maintains the ability to remove ineligible voters on an individualized basis to limit the risk of improper removals.

    “Unfortunately, this latest order by the Supreme Court is just one in a series of rulings that have rolled back fundamental rights, freedoms and foundational principles of our democracy. This Court gutted key provisions of the Voting Rights Act, stripped women of their right to make decisions about their own body, diminished the ability of federal agencies to protect communities from toxic pollutants, and created the foundation for a President of the United States to be immune from the law.”

    # # #

    MIL OSI USA News –

  • MIL-OSI USA: Cambodia stops publishing details of new citizenships issued to foreigners – The Straits Times

    Source: United States Institute of Peace

    SINGAPORE – Cambodia has stopped publishing data on new citizenships issued by the kingdom to foreigners, in the wake of the $3 billion money laundering probe in Singapore.

    Checks by The Straits Times and investigative journalism group, Organised Crime and Corruption Reporting Project (OCCRP), showed that the last time new citizenship details were published was in February.

    The latest Royal Gazette, published on Sept 27, did not contain any new citizenship data.

    Observers had zoomed in on the ease of access to Cambodian citizenship and passports after it emerged that nine of the 10 foreigners arrested in August 2023 in the probe in Singapore held Cambodian passports.

    All 10 were originally from China, which does not recognise dual citizenship.

    In 2018, Cambodia moved to allow foreign immigrants to request citizenship through the naturalisation process.

    To be granted citizenship, foreigners have to maintain good behaviour and morality, and have no convictions for serious crime.

    They must also legally reside in Cambodia for more than seven years, be able to speak Khmer, and understand the local culture and history.

    Of the nine foreigners apprehended in Singapore, at least five were convicted for online gambling or were wanted by the authorities in China.

    They are Wang Dehai, Vang Shuiming, Su Jianfeng, Chen Qingyuan and Su Wenqiang.

    Another 17 associates of the 10 foreigners held Cambodian passports as well.

    They include Su Binghai, Su Yongcan, Wang Huoqiang, Su Shuiming, Su Shuijun, Su Fuxiang and Chen Mulin.

    Cambodia had averaged around 50 new citizens every month between January 2020 and August 2023, with details published monthly in the Royal Gazette.

    After the raids in Singapore, the kingdom granted citizenship status to only four individuals in total between September 2023 and December 2023.

    A representative from the Royal Embassy of Cambodia in Singapore told ST on Sept 18 that it could not confirm the figures as it does not have access to the data.

    The representative added that he was unable to confirm if Cambodia’s citizenship by investment scheme, or naturalisation process, is still in place.

    ST had also reached out to government spokesman Pen Bona, the Prime Minister’s spokesman Meas Sophorn, the office of the council of ministers, and Cambodia’s immigration office.

    Established in 1996, the kingdom’s law on nationality also allows foreigners to obtain citizenship through investment in the nation.

    Under the law, foreigners who invest a minimum of US$300,000 (S$384,000) in the country, or donate at least US$250,000 to the economy, will have the right to apply for citizenship.

    Mr Jacob Sims, a visiting expert on transnational crime at the United States Institute of Peace, told ST that for years, Cambodia’s citizenship for investment scheme has served as a channel for individuals from sophisticated organised crime syndicates to migrate.

    Said Mr Sims: “The removal of that data from the public record helps to obscure the nature of the relationship between Cambodian state actions and those criminals, as well as the sheer volume of monied crime actors Cambodia has absorbed in recent years.”

    By removing the once publicly available data, Cambodia can protect those who have purchased citizenship while shielding the government from international scrutiny, he said.

    Associate Professor Kristin Surak from the London School of Economics and Political Science said that not all countries strictly vet citizenship by investment applications.

    She added: “I would say the scheme is very easy to exploit in Cambodia because the government does not do its due diligence. It has issues with corruption and does not have an effective bureaucratic process to ensure applications are properly checked and vetted.”

    Name changes have also made it harder for the authorities to track criminals.

    Dr Surak, the author of The Golden Passport: Global Mobility For Millionaires, pointed out that many applicants in the past have changed their names.

    “This makes it extremely easy for someone to take on a new identity, making Cambodia a target for those with criminal intent to take advantage of,” she added.

    One such example is casino kingpin She Zhijiang. ST previously reported on She and his links to scam operations in Myanmar and Cambodia.

    She, who was originally from China, became a naturalised citizen of Cambodia in 2017. He then changed his name to Tang Kriang Kai.

    He was arrested in Thailand in August 2022 and is currently fighting deportation to China.

    Businessman David Yong, chief executive of Evergreen Group Holdings, had similarly obtained Cambodian citizenship.

    Yong, who is currently facing four charges in Singapore of falsifying accounts, obtained Cambodian citizenship some time in 2023 and changed his name to Duong Dara.

    He was arrested on Aug 1, just three months after he appeared in Netflix series Super Rich In Korea.

    Yong’s lawyer said in court that he had surrendered his Cambodian passport to the authorities in Phnom Penh in June 2024.

    In response, the authorities in Singapore said they wrote several times to their Cambodian counterparts in August to confirm the fact, but have yet to receive any reply.

    Of the 10 foreigners convicted in Singapore’s largest money laundering case, eight were deported to Cambodia – which has an extradition treaty with China.

    Wang Dehai was deported to the UK, while Vang Shuiming was deported to Japan.

    MIL OSI USA News –

  • MIL-OSI USA: Hello Earth? Space Calling

    Source: NASA

    How it started versus how it’s going for astronaut Nick Hague with ISS Ham Radio on the space station.
    Since November 2000, crew members like Hague have used ham radio to communicate with people on Earth through this educational program, also known as Amateur Radio on the International Space Station or ARISS. So far, there have been more than 1,700 events, directly engaging students and listeners from 49 U.S. states, 63 countries, and all seven continents. Students study the space station, radio waves, amateur radio technology, and related topics before their call from space, which encourages interest in STEM.
    Now through Nov 17, 2024, ARISS is accepting applications from formal and informal educational institutions and organizations that want to host events in summer or fall of 2025. There is no charge for these calls from space, although host locations may incur some equipment-related costs. Local amateur radio clubs help hosts prepare for their contacts.
    Read about how ISS Ham Radio and other station programs inspire students.
    Melissa GaskillInternational Space Station Research Communications TeamJohnson Space Center

    MIL OSI USA News –

  • MIL-OSI USA: Attorney General Bonta Issues Local Government Guidance for Tackling the Opioid and Fentanyl Crisis

    Source: US State of California

    Attorney General secures nearly $50 billion in nationwide opioid settlements and bankruptcies 

    California is expected to receive up to $4.2 billion in opioid abatement funds under these settlements 

    Provides local governments with guidance on effectively utilizing funds to combat the opioid and fentanyl crisis and support recovery initiatives 

    OAKLAND – Recognizing the impact of the opioid and fentanyl crisis to both public health and public safety, California Attorney General Bonta today issued guidance to provide local governments with suggestions for the permissible, effective, and strategic use of opioid settlement abatement funds. This guidance is aimed at helping local governments maximize impact, save lives, and strengthen public health infrastructures to tackle the opioid and fentanyl crisis. 

    “The opioid epidemic, fueled by prescription opioid painkillers and fentanyl, continues to devastate families, communities, and lives across this nation,” said Attorney General Bonta. “At the California Department of Justice, the pain felt by those impacted by this epidemic is our driving force in holding accountable those responsible for fueling this crisis, and we will not stop our fight for justice and relief. The funds from opioid settlements are designed to allow multi-faceted approaches for local governments to provide comprehensive prevention, treatment and recovery programs, and other resources to root out the opioid and fentanyl crisis. With a united front of local governments statewide, we can not only put an end to this epidemic, but also provide a pathway toward recovery and renewal. Together, we can heal. Together, we can turn the tide.” 

    Since the first wave of the opioid epidemic hit the United States in the 1990s, it has taken hundreds of thousands of lives, torn families apart, and eroded the social fabric of communities. Its toll has grown year after year. Data from the Centers for Disease Control and Prevention (CDC) indicate that in 2022, the most recent year for which we have reliable data, more than 10,900 Californians died from overdose. Nearly 6,500 of those overdoses were due to fentanyl.

    Fentanyl is a powerful and addictive synthetic opioid that is up to 50 times stronger than heroin. A small amount of fentanyl, just two milligrams, can result in overdose or death. Fentanyl can be found in different forms, including pills, powder, and liquid, and can be obtained legally, with a prescription, or illegally. Illicit fentanyl has been found in many drugs, including heroin, as well as laced into non-opioids such as methamphetamine, counterfeit pills, and cocaine. Fentanyl mixed with any drug, and in particular non-opioids, increases the likelihood of a fatal overdose. Illicit fentanyl is often packaged to look like prescription drugs, often by using the labeling of an illicit drug or pressing pills in specific colors in order to promote consumption among users.

    In California in 2022, more than 7,000 people died due to opioid overdose, with almost 90% of those deaths involving fentanyl. According to the CDC, the nation has experienced the overdose epidemic in three interconnected waves: an increase in deaths from prescription opioid overdoses beginning in the 1990s, an increase in heroin deaths starting in 2010, and a more recent surge in deaths from other illicit opioids such as fentanyl.

    To date, the Attorney General has secured nearly $50 billion in abatement funding through nationwide settlements and bankruptcies. California is expected to receive up to $4.2 billion in opioid abatement funds under these settlements, with the bulk of these funds going to our local governments.

    These settlements have ensured a stream of opioid abatement funds for California’s cities and counties far into the future. By design, the settlements ensure that the vast majority of funds are used to abate the opioid crisis.

    View the guidance here.

    MIL OSI USA News –

  • MIL-OSI Video: Department of State Daily Press Briefing – October 30, 2024

    Source: United States of America – Department of State (video statements)

    Spokesperson Matthew Miller leads the Department Press Briefing, at the Department of State, on October 30, 2024.

    ———-
    Under the leadership of the President and Secretary of State, the U.S. Department of State leads America’s foreign policy through diplomacy, advocacy, and assistance by advancing the interests of the American people, their safety and economic prosperity. On behalf of the American people we promote and demonstrate democratic values and advance a free, peaceful, and prosperous world.

    The Secretary of State, appointed by the President with the advice and consent of the Senate, is the President’s chief foreign affairs adviser. The Secretary carries out the President’s foreign policies through the State Department, which includes the Foreign Service, Civil Service and U.S. Agency for International Development.

    Get updates from the U.S. Department of State at www.state.gov and on social media!
    Facebook: https://www.facebook.com/statedept
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    Subscribe to the State Department Blog: https://www.state.gov/blogs
    Watch on-demand State Department videos: https://video.state.gov/
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    White House website: https://www.whitehouse.gov/

    #StateDepartment #DepartmentofState #Diplomacy

    https://www.youtube.com/watch?v=EMLOey2yWOA

    MIL OSI Video –

  • MIL-OSI USA: Congressman Cory Mills Recovers Over $45 Million for Florida’s 7th Congressional District Constituents

    Source: United States House of Representatives – Congressman Cory Mills Florida (7th District)

    Lake Mary, FL – Congressman Cory Mills (FL-07) proudly announces the recovery of over $45 million from federal agencies on behalf of the residents of Florida’s 7th Congressional District.

    “I am proud to announce that my team and I have secured over $45 million from federal agencies and bureaus who held benefits from Florida’s 7th Congressional District constituents. After the destruction caused by Hurricanes Helene and Milton, we understand that many families are in need of assistance. Navigating FEMA’s processes can be overwhelming, especially when recovering from the impact of hurricanes,” said Rep. Cory Mills (FL-07). “My team is dedicated to ensuring that constituents have access to the federal disaster relief they need. If you or someone you know is struggling to receive assistance from FEMA or any other federal agency due to delays, paperwork issues, or other barriers, my office is here to assist in finding solutions.”

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    MIL OSI USA News –

  • MIL-OSI USA: Magaziner, HealthSource RI Kick Off 2025 Open Enrollment for Rhode Island’s State-Based Health Insurance Marketplace

    Source: United States House of Representatives – Representative Seth Magaziner (RI-02)

    November 1 is the first date to enroll.

    CRANSTON, R.I. — U.S. Representative Seth Magaziner (RI-02) joined HealthSource RI (HSRI) Director Lindsay Lang today at Comprehensive Community Action Program (CCAP)’s Family Health Services of Cranston to kick off the annual Open Enrollment period for the state’s health exchange, beginning Friday, November 1 and running through January 31. New customers can purchase plans, and existing customers can change their plan selections during this time without needing a qualifying life event.

    HSRI has served nearly 161,000 Rhode Islanders since its inception in 2013, roughly mirroring the proportion of 1 in 7 Americans, or about 50 million individuals, served by state and federal exchanges nationwide. HSRI’s role in connecting Rhode Islanders to coverage has been booming in recent months, with enrollment swelling to an all-time high of more than 46,000 in its individual and family plan offerings, and an additional 8,200 lives covered through its small employers arm serving local businesses and nonprofits with access to small group plans. Recent findings of its Health Information Survey put Rhode Island’s uninsured rate at a remarkably low 2.2%, among the best in the nation.

    “Every Rhode Islander deserves access to affordable, high-quality healthcare,” said Rep. Seth Magaziner. “The Affordable Care Act has expanded health coverage for tens of thousands of people in our state, and I will continue fighting to protect this lifesaving law from those who seek to repeal it.”

    As the only place Rhode Islanders can receive financial help to pay for their health coverage, HSRI plays a vital role in connecting customers to quality coverage. Currently, 6 out of 7 HSRI customers receive financial assistance, and nearly a third of customers pay less than $10 per month for their health coverage. For 2025, customers can choose from an array of 20 health plans and seven dental plans, all provided by well-known insurance carriers, when shopping through the marketplace. Cost-comparison tools on the HealthSource RI website and an abundance of phone, web-based and in-person support options make it convenient to get help when reviewing plans.

    “HealthSource RI is proud to serve an important role in connecting so many Rhode Islanders to quality coverage,” said HSRI Director Lindsay Lang. “Having the coverage you need for preventive care, or treatment when you or your loved one are sick, is a vital stabilizing tool for families and individuals, across all walks of life. With more than a decade of experience as a trusted guide, HSRI is here to help ensure our fellow Rhode Islanders have that peace of mind.”

    Along with Magaziner and Lang, Joanne McGunagle, President & CEO of CCAP, whose trained navigators assist community members at numerous locations statewide in the application process for coverage through both HealthSource RI and Medicaid, spoke to the importance of high-quality health coverage for patients in order to seek preventative health care and maintain healthier communities.

    “As the major provider of health care in the City of Cranston, we know how vitally important it is for our patients to have access to affordable health insurance. CCAP is proud to have our Navigators working directly with patients to assist with enrollment in health insurance, in collaboration with RIHCA and HealthsourceRI. HealthSource RI provides expert staff to assist them in selecting a plan that makes sense for them and their families. With diminishing availability of medical providers, having health insurance gives them a step up and more options to receive care.  We are grateful to Congressman Magaziner for championing this most valued service for the most vulnerable,” said Joanne McGunagle, President & CEO of CCAP.

    Individuals and families can learn about various types of assistance, compare costs, and enroll in, change or renew their health and dental coverage at HealthSourceRI.com/OE, or call 1-855-840-HSRI (4774).

    MIL OSI USA News –

  • MIL-OSI USA: Rep. Huffman, Richardson Bay Regional Agency Celebrate Launch of New Eelgrass Protection Zone

    Source: United States House of Representatives – Congressman Jared Huffman Representing the 2nd District of California

    Initiative will protect critical environmental component of Richardson Bay

    October 30, 2024

    Sausalito, CA— U.S. Representative Jared Huffman (D-CA-02) along with the Richardson Bay Regional Agency (RBRA) and federal, state, and local partners today celebrated the launch of a new Eelgrass Protection Zone, an area of the water off-limits to anchoring that will help restore and protect a critical ecological component of the Bay.

    “This is such an important day for the environment of Richardson Bay and the entire San Francisco Bay area,” said Representative Jared Huffman. “Eelgrass acts as the foundation for so much of what we love about the bay — from supporting herring runs and thousands of migratory birds, to helping ward off the impacts of climate change. By taking these measures now, RBRA is protecting Richardson Bay’s amazing natural resources for generations to come, and I’m glad we could help support this work with funding from the Biden-Harris administration.”

    Eelgrass is a critical component of a healthy and vibrant Richardson Bay. It supports fisheries, reduces erosion, sequesters carbon and is a crucial ecological resource for harbor porpoises, seals, and sea lions. However, when anchors, chains, and other ground tackle scrape along the Bay bottom, they essentially act as a lawn mower for all living plants. This creates “crop circles” or barren areas where no eelgrass can grow.

    To combat those impacts and to provide an opportunity for eelgrass to recover, after an extensive public process, the RBRA established an Eelgrass Protection Zone (EPZ) in Richardson Bay where no anchoring is allowed. While a few vessels remain in the EPZ, all boats will eventually be removed from the area. Today, the RBRA celebrated the implementation of the EPZ with new signage and markings dictating the exact parameters of the off-limits area.

    “We’ve been able to reduce the number of vessels in the Eelgrass Protection Zone by working in a productive, supportive manner with boat owners.,” said RBRA Board Chair Jim Lynch. “From finding housing for people transitioning off the anchorage to buying back vessels people could no longer manage, we’ve worked tirelessly to find solutions to the challenge of protecting our environment while being mindful of housing needs, and the historic conditions on the Bay.”

    In 2022, there were more than 100 vessels in the Eelgrass Protection Zone. Through various efforts, the RBRA has reduced that number to just 20 as of October 23.

    Last year, the RBRA and its partners at Audubon California and San Francisco State University secured a $2.8 million federal grant from the US Environmental Protection Agency to support eelgrass restoration and protection efforts. This builds on years of investment by the National Oceanic and Atmospheric Administration, the California Ocean Protection Council, and others in improving environmental conditions in the bay through targeted restoration, marine debris removal, wildlife monitoring, and outreach.

    The EPA grant is aimed at restoring at least 15 acres of eelgrass over four years through an innovative public-private partnership centered around the EPZ. The funding was made possible by the progress RBRA and its partners have made in securing the eelgrass bed from future damage, and will support RBRA’s recently-adopted 10-year Restoration and Adaptive Management Plan for Eelgrass in Richardson Bay.

    “Initiatives like the Eelgrass Protection Zone are essential to support a healthy San Francisco Bay,” said U.S. EPA Pacific Southwest Regional Administrator Martha Guzman. “The Richardson Bay Regional Agency and its partners have established themselves as protectors of eelgrass habitat through this detailed plan that can ensure an expansion of eelgrass acres over time.”

    “This is a landmark moment for the Richardson Bay community,” said Wade Crowfoot, Secretary of the California Natural Resources Agency. “Initiatives like the Eelgrass Protection Zone play a vital role in achieving California’s goal of conserving 30 percent of our lands and coastal waters by 2030. The eelgrass habitat is essential to the rich biodiversity that makes Richardson Bay unique, and putting this plan into action will safeguard these invaluable natural resources.”

    In 2021, the RBRA entered into an agreement with the San Francisco Bay Conservation and Development Commission (BCDC), stipulating that all vessels and floating homes be removed from the anchorage by October 26, 2026, except those abiding by 72-hour time restrictions.

    The agreement with BCDC was driven in large part by the need to protect the eelgrass ecosystem of Richardson Bay. Along with supporting key fisheries, tens of thousands of migratory waterbirds rely on Richardson Bay for feeding and resting during migration along the Pacific Flyway.

    To incentivize vessels to move off the Richardson Bay anchorage, the RBRA created a housing voucher program last year, allowing boaters previously living on the water to move into safe, secure housing on land. The RBRA manages the program in collaboration with the Marin Housing Authority, Marin Health and Human Services, and Episcopal Community Services.

    Additionally, the RBRA manages a vessel buyback program, which offers eligible participants money based on the length of their boat ($150 per foot) if they turn their vessel into the RBRA for proper disposal.

    “We are proud of all that we have accomplished on Richardson Bay to create a safe, supportive and accessible environment for all,” said Marin County Supervisor Stephanie Moulton-Peters, who also sits on the RBRA Board. “We know that there is still work to be done, but if we keep working together collaboratively with our community, we can help achieve everyone’s goals.”

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    MIL OSI USA News –

  • MIL-OSI USA: Hoyer Joins President Biden, Team Maryland to Celebrate $147 Million Clean Energy Investment in the Port of Baltimore

    Source: United States House of Representatives – Congressman Steny H Hoyer (MD-05)

    WASHINGTON, DC – Congressman Steny H. Hoyer (MD-05) joined President Joseph R. Biden, Governor Wes Moore, U.S. Senators Ben Cardin and Chris Van Hollen (all D-MD), Congressman Kweisi Mfume, Congressman John Sarbanes, Congressman Dutch Ruppersberger (all D-MD), Maryland Department of Transportation Secretary Paul Wiedefeld, and Maryland Port Administration Executive Director Jonathan Daniels at the Port of Baltimore to celebrate more than $147 million in federal funding to create good-paying, clean jobs and to expedite decarbonization and electrification efforts at the Port. The U.S. Environmental Protection Agency awarded the funding to the Port of Baltimore through its Clean Ports Program, created under the Biden-Harris Administration’s Inflation Reduction Act.

    “The Biden-Harris Administration’s Investing in America agenda continues to leave no community behind and promote clean air and water in communities that have long borne the brunt of pollution,” said Congressman Steny Hoyer. “Thanks to the Inflation Reduction Act that I brought to the House Floor as Majority Leader last Congress, the Port of Baltimore is getting the tools it needs to upgrade its equipment, improve electric charging infrastructure, and fight the climate crisis in a way that benefits Marylanders across the state. As Chair of the Regional Leadership Council, I appreciate Administrator Regan and the Biden-Harris Administration’s partnership as we continue to ensure the historic investments Democrats passed last Congress reach every community in America. We must continue to work together to strengthen the Port of Baltimore and ensure environmental justice for all Marylanders.”

    The Port of Baltimore generates about 20,300 direct jobs, with more than 273,000 jobs overall linked to port activities. The funding will enable the Maryland Port Administration and its private partners to purchase 213 pieces of new zero-emission vehicles, equipment, and charging infrastructure that will replace old, inefficient, and polluting diesel combustion engines. The funding will also pay for capacity upgrades to the port’s electrical grid, which will help significantly reduce greenhouse gas emissions with an estimated 35% decrease in carbon dioxide equivalency compared to 2020 levels. 

    “In Maryland, we aren’t going to choose between building a competitive state and a sustainable one -— we will do both at the same time,” said Gov. Moore. “In partnership with the Biden-Harris Administration, we are investing in the Port of Baltimore and electrifying the way to a greener, cleaner, and healthier future with a strong economy and good-paying jobs.” 

    “The Port of Baltimore is a vital economic engine for the state and a leader among the nation’s ports. As we work to improve the port, it is essential that we build for the future. The projects supported by the Clean Ports Program will help reduce emissions, improve air quality in the Baltimore region and create more clean energy jobs,” said U.S. Senator Ben Cardin. “The Biden-Harris Administration’s bold investments in modernizing our infrastructure are driving our economy forward while enabling us to take on climate change in a meaningful way.” 

    “We fought to pass the Inflation Reduction Act to create good-paying jobs in our communities while tackling the climate crisis head-on, and today’s announcement shows these investments are being put to work,” said U.S. Senator Chris Van Hollen. “This new federal funding will support the Port of Baltimore’s transition to electric infrastructure as part of its plans to reduce emissions – both bolstering the port’s growth and improving air quality for nearby communities. These efforts will help strengthen Baltimore’s economy and create more local jobs for Marylanders.” 

    “The tremendous projects selected for these federal funding awards will improve air quality and combat climate change by dramatically diminishing the Port of Baltimore’s greenhouse gas and toxic pollutant emissions via installation of zero-emission cargo handling equipment and trucks, while also bolstering the Maryland Port Administration’s overall emissions reduction strategy. These extraordinary federal investments into our port are consistent with our collective duty to preserve the planet – while also continuing to uplift the Port of Baltimore’s workforce and surrounding communities in the transition to a zero-emissions facility,” said Congressman Kweisi Mfume. “As exemplified by this compelling announcement, the historic Inflation Reduction Act continues to tackle the climate crisis with fierce urgency right here in Baltimore.”

    “The Port of Baltimore is a critical hub for Maryland and our nation as a whole, supporting good-paying jobs, driving economic growth and keeping goods and resources moving. This investment will improve the health of our region’s environment and provide cleaner air for port workers and nearby communities – all while ensuring that the Port remains a thriving center of commerce for generations to come,” said Congressman John Sarbanes. “I appreciate the Biden-Harris Administration for its continued partnership to enhance clean energy and improve infrastructure in Maryland, and for its tireless efforts to advance environmental justice and create a greener, more sustainable future across the country.”

    “This critical investment into the Port of Baltimore will not only keep us globally competitive, but will help mitigate pollution driving climate change,” said Congressman Dutch Ruppersberger. “The Port of Baltimore has always been at the forefront of efficiency and productivity and now we are leading the nation environmentally. I am proud to have supported this funding request and thank the Biden Administration for this strategic and responsible use of tax dollars.”

    Federal grant funding will also support community engagement with neighborhoods such as Turner Station, Brooklyn, and Curtis Bay.  

    “These improvements will provide an immediate impact to the people who live and work around the Port of Baltimore and who have borne the brunt of transportation-related health impacts,” said Maryland Department of Transportation Secretary Paul Wiedefeld. “Thanks to the EPA’s grants, the Port of Baltimore and its partners are accelerating their collective efforts to support Maryland’s climate goals of reaching net zero by 2045.” 

    Today’s announcement builds on the Biden Administration’s championship of the Port of Baltimore and the State of Maryland’s infrastructure needs, which includes the recent $30.9 million Infrastructure for Rebuilding America award for Dundalk Marine Terminal Reconstruction of Berth 11 and the $7.5 million award for Curtis Creek Drawbridge Rehabilitation and Resiliency projects. The projects directly advance the federal government and State of Maryland’s partnership to recover and rebuild after the DALI struck the Francis Scott Key Bridge.

    “The Maryland Port Administration is committed to integrating our overall mission of increasing cargo and generating jobs through the Port of Baltimore with forward-looking environmental and sustainability solutions,” said Maryland Port Administration Executive Director Jonathan Daniels. “Our customers and port partners are driven to change the way they do business to reduce greenhouse gas emissions, decarbonize, increase electrification throughout our marine terminals, and, most importantly, positively impact our near-port environmental justice communities.”

    To learn more about the clean port project and its benefits, read the Port of Baltimore’s grant proposal.

    MIL OSI USA News –

  • MIL-OSI USA: Golden questions regulators over proposed reduction to herring quota

    Source: United States House of Representatives – Congressman Jared Golden (ME-02)

    WASHINGTON — Congressman Jared Golden (ME-02) today sent a letter to the National Oceanic and Atmospheric Administration (NOAA) and New England Fishery Management Council (NEFMC) questioning the methodology regulators used as the basis for a nearly 90 percent reduction to the Atlantic herring fishery quota for the next three years. The fishery supplies the primary bait used in the lobster fishery. 

    “Once again, Maine fishermen find themselves on the verge of economic ruin due to federal regulations based on incomplete and inadequate data. In my conversations with fishermen, it has always been clear that their top concerns are the sustainability of the stock and the ability for it to be harvested by future generations,” Golden wrote. “That is why these decisions must always be based on scientifically sound, comprehensive data that incorporates the invaluable input of those most impacted — the harvesters themselves.”

    A July assessment by NOAA claims that the population of herring capable of reproducing is at 26 percent of the agency’s target. This sparked a proposal from NEFMC to reduce the species’ annual catch limit by 89 percent from 2025-2027 — the lowest level in the history of the Council’s Atlantic Herring Fishery Management Plan. However, Maine fishermen have expressed concern that the research vessel used to measure the herring stock is unable to operate in the areas fishermen actually target the species, instead trawling at depths fishermen avoid due to the low concentration of herring.

    According to the Maine Department of Marine Resources, Atlantic herring landings in Maine during 2019 totaled an estimated 13 million pounds and $5.8 million in ex-vessel value. 

    “NEFSA is thankful that Congressman Golden is drawing criticism to the massive, 90 percent cut to the herring quota for the next two years. Very little attention has been given to this action which will eliminate more commercial fishermen from their livelihoods,” commercial fishermenJerry LeemanandDustin Delano, CEO and COO of the New England Fishermen’s Stewardship Association, respectively, said. “We thank Congressman Golden for his efforts and hope the council will reconsider its egregious decision to further decimate the commercial fishing fleet.”

    “We’re grateful to Rep. Golden for speaking out against this misinformed change to the herring quota. Moving forward with a near total cut would be absolutely devastating for fishermen, the lobster industry, and the coastal communities that depend on them,” Virginia Olsen, commercial lobsterman and director of the Maine Lobstering Union said. “It’s more proof that he is not afraid to work across party lines to support fishermen and that matters to me.” 

    Golden’s letter pressed the agencies on whether they also include industry-based surveys like those considered by Canadian regulators, how spawning data is collected if both regulators and fishermen avoid operating in herrings’ spawning waters, and why there was not an economic impact study conducted during the process.

    “My main concern with this seemingly unreasonable quota reduction is that these fishermen will be forced to switch over to a less desirable species of fish. Next season, when everyone has to substitute herring with something else, the increased demand in these alternative baits will make the already rising cost of doing business hard for these fishermen hard to justify fishing in the spring, early summer, and late fall…” Alex Poke, general manager at the Winter Harbor co-op said. “…I expect there to be more frequent and longer periods where I can’t find any bait for the lobster fishermen here at the co-op.”

     “Thank you to Rep. Golden for highlighting these ill-informed quota reductions. These reductions will have crushing economic impacts on my family and our community,” Branden Loveyjoy, a herring fisherman and bait dealer from Columbia said. “I, too, am concerned about the sustainability of the fishery and the next generation, but these reductions go too far without the data to inform them.” 

    Full text of Golden’s letter can be found here, and is included below in full:

    +++

     

    October 30, 2024

    Michael Pentony
    Regional Administrator
    Greater Atlantic Regional Fisheries Office
    NOAA Fisheries
    55 Great Republic Drive
    Gloucester, MA 01930

     

    Jon Hare, PhD
    Science and Research Director
    Northeast Fisheries Science Center
    NOAA Fisheries 
    166 Water Street
    Woods Hole, MA 02543

     

    Cate O’Keefe, PhD
    Executive Director 
    New England Fishery Management Council
    50 Water Street, Mill 2
    Newburyport, MA 01950

    Dear Administrator Pentony, Dr. Hare, and Dr. O’Keefe: 

    I am writing to seek additional information regarding the action the New England Fishery Management Council (NEFMC) recently took to reduce the Atlantic herring fishery quota by nearly 90 percent for fishing year 2025-2027. Based on conversations I have had with Maine fishermen, I am concerned that this decision by the NEFMC was predicated on inaccurate and incomplete surveys and estimates of spawning stock biomass data that also fails to account for the potential economic impacts on fishing communities.

    As you know, the Atlantic herring fishery is an essential part of Maine’s marine economy and is the most important pelagic fishery resource in the state. According to the Maine Department of Marine Resources, in 2019 Atlantic herring landings in Maine were around 13 million pounds, valued at an estimated $5.8 million ex-vessel. This fishery also supplies the primary bait used in our lobster fishery, one of the most valuable in the nation at $464 million. Together, these fisheries employ thousands of Mainers through dealers and seafood processors, vessel and trap manufacturers, restaurants, and other coastal businesses.. 

    That is why I was alarmed when the NEFMC passed new specifications for the Atlantic herring fishery that will result in the lowest catch limits in the history of the Atlantic Herring Fishery Management Plan. This is despite the fact that for some time, I have heard from fishermen who have expressed their concerns about the Henry B. Bigelow (Bigelow), the sole survey vessel used by the federal government to determine the abundance and health of the inshore Atlantic herring stock. While the Bigelow may be a capable vessel – when operational – for conducting trawling operations in depths of 600 feet or greater, due to potential gear conflicts and bottom conditions closer to the coast, it is unable to tow in the areas that Maine’s herring fishermen utilize most. 

    This is particularly true in the interior of area 1A, which is between one and 20 nautical miles from shore. It is here where fishermen are telling me that they are observing herring in volumes they have not seen in recent years, while the Bigelow trawls areas in which they would never consider fishing. Moreover, due to major mechanical issues in the Spring of 2023, the vessel was prevented from conducting tows for the three-year stock assessments for any of the fisheries it samples – including Atlantic herring. The discrepancy between the experience of harvesters and the practical limitations of the Bigelow raises legitimate questions as to whether or not federal regulators are capturing accurate and complete data of the herring stock that is then being used to inform fishing quotas. 

    In order to better understand the methodology behind the NEFMC’s decision-making for setting a 90 percent quota reduction for Atlantic herring, I would appreciate your answers to the following questions:
     

    1. The Canadian herring fishery utilizes industry boats and fishermen who know how to operate the vessels and the gear required to target a particular fish species effectively. Has the NEFMC considered industry-based surveys that utilize the observations of experienced herring fishermen when making quota decisions or to validate assessments conducted by the Bigelow? 

    2.      Fishermen intentionally avoid spawning areas; if they catch spawned herring, they risk being shut down by federal regulators. If the Bigelow is not operating during these spawning seasons or in these areas, and fishermen are prohibited from catching spawned fish, how is this data collected? 

    3.      Based on the Atlantic herring quotas in the motion the NEFMC voted to approve for 2025-2027, we are certain to see crippling economic conditions for those fishermen and other fisheries that are dependent on herring. Why was no shore-side economic impact study conducted to understand the socioeconomic harm these proposed reductions would cause?

    Once again, Maine fishermen find themselves on the verge of economic ruin due to federal regulations based on incomplete and inadequate data. In my conversations with fishermen, it has always been clear that their top concerns are the sustainability of the stock and the ability for it to be harvested by future generations. That is why these decisions must always be based on scientifically sound, comprehensive data that incorporates the invaluable input of those most impacted – the harvesters themselves. 

    I will continue to monitor this situation closely and appreciate your attention to this important matter. 

     

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    MIL OSI USA News –

  • MIL-OSI USA: 56th Security Consultative Meeting Joint Communique

    Source: United States Department of Defense

    1. The 56th United States (U.S.)-Republic of Korea (ROK) Security Consultative Meeting (SCM) was held in Washington, D.C., on October 30, 2024. U.S. Secretary of Defense Lloyd J. Austin III and ROK Minister of National Defense Kim Yong Hyun led their respective delegations, which included senior defense and foreign affairs officials. On October 17, 2024, the U.S. Chairman of the Joint Chiefs of Staff, General Charles Q. Brown Jr., and ROK Chairman of the Joint Chiefs of Staff, Admiral Kim Myung-soo, presided over the 49th ROK-U.S. Military Committee Meeting (MCM).

    2. The Secretary and the Minister reaffirmed that the U.S.-ROK Alliance is the linchpin of peace, stability, and prosperity on the Korean Peninsula and beyond based on our shared values, including freedom, human rights, and the rule of law. The two leaders reviewed progress taken during 2024 to implement the “Defense Vision of the U.S.-ROK Alliance,” including enhancing extended deterrence against the Democratic People’s Republic of Korea (DPRK), modernizing Alliance capabilities based on science and technology cooperation, and strengthening solidarity and regional security cooperation with like-minded partners. They noted that the SCM has played a pivotal role in developing the ROK-U.S. Alliance into a Global Comprehensive Strategic Alliance and would continue maintaining its role as a core consultative mechanism to discuss the future development of the Alliance and provide strategic direction.  The two leaders also provided direction and guidance for continued progress in 2025 through a newly endorsed framework of U.S.-ROK bilateral defense consultative mechanisms that effectively and efficiently support Alliance objectives.  Both concurred that the current U.S.-ROK Alliance is stronger than ever and reaffirmed the two nations’ unwavering mutual commitment to a combined defense posture to defend the ROK as stated in the U.S-ROK Mutual Defense Treaty, and as reflected in the Washington Declaration. The two leaders also resolved to continue to strengthen the Alliances’ deterrence and defense posture against DPRK aggression and promote stability on the Korean Peninsula and throughout the region.

    3. The Secretary and the Minister reviewed the current security environment in and around the Korean Peninsula and discussed cooperative measures between the two nations. The Secretary and Minister expressed grave concern that the DPRK continues to modernize and diversify its nuclear and ballistic missile capabilities.  The two sides condemned the DPRK’s multiple missile launches, including ballistic missiles, its attempted launches of a space launch vehicle, and Russian-DPRK arms trade as clear violations of existing UN Security Council resolutions (UNSCRs).  They noted that these actions present profound security challenges to the international community and pose an increasingly serious threat to peace and stability on the Korean Peninsula and throughout the Indo-Pacific region, as well as in the Euro-Atlantic region.

    4. Secretary Austin reiterated the firm U.S. commitment to provide extended deterrence to the ROK, utilizing the full range of U.S. defense capabilities, including nuclear, conventional, missile defense, and advanced non-nuclear capabilities.  He noted that any nuclear attack by the DPRK against the United States or its Allies and partners is unacceptable and would result in the end of the Kim regime in line with the 2022 U.S. Nuclear Posture Review.  He highlighted the increased frequency and routinization of U.S. strategic asset deployments as committed to by President Biden in the Washington Declaration, and noted that these were tangible evidence of the U.S. commitment to defend the ROK.

    5. The two leaders highly appreciated the work of the Nuclear Consultative Group (NCG) inaugurated following the Washington Declaration.  Both applauded the completion on July 11, 2024, of “United States and Republic of Korea Guidelines for Nuclear Deterrence and Nuclear Operations on the Korean Peninsula,” which represents tremendous progress of the NCG commended and endorsed by President Biden and President Yoon. The two leaders affirmed that the completion of the Guidelines established the foundation for enhancing ROK-U.S. extended deterrence in an integrated manner.  Minister Kim noted that, through such progress, the ROK-U.S. Alliance was elevated to a nuclear-based alliance. The two leaders stressed that the principles and procedures contained in the Guidelines enable Alliance policy and military authorities to maintain an effective nuclear deterrence policy and posture.  The Secretary and Minister also welcomed the successful execution of the ROK-U.S. NCG table-top simulations and table-top exercises to enhance decision-making about nuclear deterrence and operations, and planning for potential nuclear contingencies on the Korean Peninsula.  Both sides affirmed that the full capabilities of the two countries would contribute to the Alliance’s combined deterrence and defense posture, and in this regard the Secretary welcomed the recent establishment of the ROK Strategic Command.  The Secretary and Minister directed the NCG to continue swift progress on NCG workstreams, including security protocols and expansion of information sharing; nuclear consultation processes in crises and contingencies; nuclear and strategic planning; ROK conventional support to U.S. nuclear operations in a contingency through conventional-nuclear integration (CNI); strategic communications; exercises, simulations, training, and investment activities; and risk reduction practices.  They noted that such efforts would be coordinated to strengthen capabilities of the ROK and United States to enhance U.S.-ROK extended deterrence cooperation in an integrated manner, and looked forward to receiving regular updates on NCG progress activities at future SCMs.

    6. The two sides pledged to continue coordinating efforts to deter DPRK’s nuclear threat with the Alliance’s overwhelming strength, while continuing to pursue efforts through sanctions and pressure to dissuade and delay DPRK’s nuclear development.  Both leaders stressed the importance of full implementation of UNSCRs by the entire international community, including the People’s Republic of China (PRC) and Russia, both permanent members of the UN Security Council.  The two leaders urged the international community to prevent and respond to DPRK’s sanctions evasion so that it abandons its illegal nuclear and ballistic missile development.  To this end, they decided to work closely with each other and the international community to combat the DPRK’s illegal and malicious cyber activities, cryptocurrency theft, overseas laborer dispatches, and ship-to-ship transfers.  The Secretary and Minister expressed concern that Russia-DPRK military cooperation, which has been intensified since the signing of a Comprehensive Strategic Partnership Treaty between the two, is deepening regional instability.  The two leaders made clear that military cooperation, including illegal arms trade and high-technology transfers between Russia and the DPRK, constitute a clear violation of UNSCRs, and called on Russia to uphold its commitments.  The two leaders also strongly condemned in the strongest terms with one voice that the military cooperation between Russia and the DPRK has expanded beyond transfers of military supplies to actual deployment of forces, and pledged to closely coordinate with the international community regarding this issue. 

    7. Both leaders reiterated the willingness of their Presidents to pursue dialogue and diplomacy, backed by a robust and credible deterrence and defense posture.  In this regard, Secretary Austin expressed support for the goals of the ROK’s Audacious Initiative and President Yoon’s vision of a free, peaceful, and prosperous unified Korean Peninsula, and welcomed President Yoon’s desire to open a path for serious and sustained diplomacy with the DPRK.  Both sides reaffirmed that they remain open to dialogue with the DPRK without preconditions and pledged to continue close coordination.

    8. The Minister and the Secretary noted concerns that the DPRK’s claims of “two hostile countries,” and activities near the Military Demarcation Line (MDL) could threaten peace and the Armistice on the Korean Peninsula.  The two leaders strongly condemned DPRK’s activities that raise tension on the Korean Peninsula, such as multiple unmanned aerial vehicle (UAV) infiltrations in the past, as well as the recent unilateral detonation of sections of inter-Korean roads and ongoing launches of “filth and trash balloons,” and urged the DPRK to immediately cease such activities.  The Secretary and the Minister concurred that the Armistice Agreement remains in effect as an international norm guaranteeing the stable security order on the Korean Peninsula, and that all parties of the Korean War should abide by it while it remains in force.  Both sides noted that the Northern Limit Line (NLL) has been an effective means of separating military forces and preventing military tension over the past 70 years, and urged the DPRK to respect the NLL.

    9. Secretary Austin and Minister Kim reaffirmed the role of the United Nations Command (UNC) in implementing, managing, and enforcing the Korean Armistice Agreement, deterring DPRK aggression, and coordinating a multinational, united response in case of contingencies on the Korean Peninsula.  They reaffirmed that UNC has successfully contributed to those aims for more than 70 years and continues to carry out its mission with the utmost respect for the sovereignty of ROK, the primary host nation.  Both sides welcomed the successful organization of the second ROK-UNC Member States Defense Ministerial Meeting and expressed their appreciation for UNC Member State contributions.  They welcomed the addition of Germany to UNC, and noted that peace and prosperity in the Indo-Pacific, including the Korean Peninsula, and Euro-Atlantic regions are increasingly connected.  The two leaders are determined to continue seeking the expanded participation in UNC by like-minded countries that share the values of the 1953 Washington Declaration, anchored in the principles of the UN Charter and mandates of relevant UNSCRs. Secretary Austin thanked Minister Kim for the ROK’s efforts to support the UNC’s role to maintain and enforce the Armistice Agreement, and to support the defense of the ROK against DPRK aggression.  In this regard, the Secretary and Minister both highlighted their desire to expand combined exercises, information sharing, and interoperability between the ROK, the Combined Forces Command, and UNC Member States.

    10. The Secretary and the Minister also noted the critical role that U.S. forces in the ROK have played for more than 70 years and reaffirmed that U.S. Forces Korea (USFK) continues to play a decisive role in preventing armed conflict on the Korean Peninsula, and in promoting peace and stability in Northeast Asia.  Secretary Austin reiterated the U.S. commitment to maintain current USFK force levels to defend the ROK. 

    11. The Secretary and Minister also reviewed the work of the various bilateral mechanisms such as the U.S.-Korea Integrated Defense Dialogue (KIDD).  They welcomed efforts to enhance information sharing through the U.S. Shared Early Warning System (SEWS) for strengthening the Alliance’s detection capabilities in response to advancing DPRK missile threats.  They also commended the work of the Counter-Missile Working Group (CMWG) and reviewed “the Joint Study on Alliance Comprehensive Counter-Missile Strategy” aimed at informing recommendations for counter-missile capabilities and posture of ROK and United States.  The Secretary and Minister also discussed concrete efforts to strengthen cooperation in space and cyber to robustly deter and defend against growing threats.  They endorsed efforts by the Space Cooperation Working Group (SCWG) to improve space situational awareness information sharing and interoperability, and acknowledged the need to expand ROK participation in exercises and training that can strengthen Alliance space capability and improve resilience against growing space threats.  In particular, the Secretary also welcomed ROK participation in the Joint Commercial Operations (JCO) cell to leverage space industry and strengthen allied space capabilities.  The Secretary and Minister also pledged to deepen cyber cooperation through the Cyber Cooperation Working Group and improve coordination through cyber defense exercises, such as Cyber Alliance and Cyber Flag.  Overall, both leaders expressed appreciation for the continuing cooperation to ensure the Alliance’s space, cyber, and counter-missile efforts to keep pace with the evolving threats posed by the DPRK.

    12. Noting the importance of science and technology (S&T) cooperation, the Secretary and Minister decided to establish the Defense Science and Technology Executive Committee (DSTEC) at the Vice-Minister-Under Secretary level within this year, to guide and prioritize Alliance defense S&T cooperation.  They noted priority areas for cooperation including autonomy, artificial intelligence, and crewed-uncrewed teaming are particularly vital to ensure the ROK is able to achieve the goals of Defense Innovation 4.0 and modernize Alliance capabilities.  Both leaders also welcomed future S&T cooperation related to quantum technologies, future-generation wireless communication technologies, and directed energy to ensure that S&T advancements enhance the combined capabilities of the Alliance.  This included efforts to identify potential areas of collaboration on AUKUS Pillar II.  The Secretary welcomed the Minister’s proposal to host a Defense Science and Technology conference in 2025, and concurred that the DSTEC should leverage this conference to baseline and prioritize Alliance defense S&T collaboration.

    13. The Secretary and Minister also reviewed efforts to improve the interoperability, interchangeability, and resilience of the U.S. and ROK defense industrial base.  They underscored the need to improve efficient and effective collaboration in the development, acquisition, fielding, logistics, sustainment, and maintenance of defense capabilities, and to ensure that S&T advancements are swiftly and seamlessly transitioned into acquisition and sustainment efforts.  Both leaders welcomed progress under the U.S. Regional Sustainment Framework (RSF) and welcomed ROK participation in a Maintenance, Repair, and Overhaul (MRO) pilot project on Air Force aviation maintenance.  The two leaders noted that this pilot project could lead to more bilateral co-sustainment opportunities, and also expand defense industrial collaboration with like-minded partners in the region in light of the ROK’s key role in the Partnership for Indo-Pacific Industrial Resilience (PIPIR) contact group.  The Secretary and Minister also noted with satisfaction the recent U.S. Navy contract with ROK shipyards to conduct MRO services for U.S. vessels, and underscored the potential to expand such work to improve the resilience of the Alliance’s posture in the Indo-Pacific Region.  The Secretary and Minister also recognized the need to improve reciprocal market access to deepen defense industrial cooperation and enhance supply chain resiliency, and are committed to accelerate cooperation with the goal of signing the Reciprocal Defense Procurement Agreement next year based on guidance from both Presidents.

    14. The Secretary and the Minister received and endorsed the MCM Report to the SCM presented by the U.S. Chairman of the Joint Chiefs of Staff, General Charles Q. Brown.  They welcomed the efforts of General Brown, Admiral Kim, and the MCM to enhance military plans, posture, training, exercises, and efforts to coordinate U.S.-ROK Combined Forces Command (CFC) activities and enhance military strength of the Alliance.  The Secretary and Minister concurred that the Freedom Shield 24 (FS 24) and Ulchi Freedom Shield 24 (UFS 24) exercises, which included realistic threats from the DPRK advancing nuclear, missile, space, and cyber threats, enhanced the Alliance’s crisis management and strengthened deterrence and defense capabilities.  In addition, they assessed that combined field training exercises (FTX), which were more extensive than the past year and conducted in land, maritime and air domains, enhanced interoperability and combined operations execution capabilities.  Based on such outcomes, both leaders decided to continue strengthening combined exercises and training in line with the rapidly changing security environment of the Korean Peninsula, and further decided that future combined exercises should include appropriate and realistic scenarios including responses to DPRK nuclear use.  The Secretary and the Minister also emphasized that ensuring consistent training opportunities for USFK is critical to maintaining a strong combined defense posture.  Secretary Austin noted the efforts of ROK Ministry of National Defense (MND) to improve the training conditions for U.S. and ROK forces and stressed the importance of maintaining close cooperation between USFK and MND for the joint use of ROK facilities and airspace for training. 

    15. Given the growth and diversification of the DPRK’s chemical, biological, radiological, and nuclear (CBRN) weapons and delivery systems, both leaders assessed efforts and works to ensure execution of Alliance missions under a CBRN-challenged environment.  In particular, they welcomed progress by the Countering Weapons of Mass Destruction Committee (CWMDC), including the expansion of information sharing required for nuclear elimination operations consistent with the Nuclear Weapons Non-proliferation Treaty (NPT), and the strengthening of cooperation to prevent proliferation of WMD in the Indo-Pacific region. Both leaders welcomed continued multinational counter-proliferation activities in the region amidst advancements of DPRK nuclear and missile program and intensification of arms trade between Russia and the DPRK following the Comprehensive Strategic Partnership Treaty.  Secretary Austin expressed appreciation for ROK contributions to various global security efforts such as Proliferation Security Initiative (PSI), and the Minister and the Secretary concurred on the importance of maintaining cooperative efforts to enforce relevant counter-proliferation UNSCRs.

    16. The Secretary and Minister also reviewed the progress and works to fulfill the Conditions-based Wartime Operational Control (OPCON) Transition Plan (COTP).  Both leaders reaffirmed that the conditions stated in the bilaterally approved COTP must be met before wartime OPCON is transitioned in a stable and systematic manner.  They received the results of the annual U.S.-ROK bilateral evaluation on the capabilities and systems for conditions #1 and #2 based on the bilaterally-approved assessment criteria and standards.  Both leaders affirmed that there was a significant progress of this year’s bilateral evaluation on readiness posture and capabilities, and pledged to continue close consultations between the ROK and the United States. for the establishment of the Future-CFC.  The Secretary and the Minister also reaffirmed that Future-CFC Full Operational Capability (FOC) Certification would be pursued when the results of the bilateral evaluation on the capabilities and systems of conditions #1 and #2 meet the mutually approved levels.  Regarding condition #3, the Secretary and the Minister decided to remain in close consultation for the assessment of the security environment.  Both sides pledged to support continued evaluation and progress in wartime OPCON transition implementation through annual MCMs and SCMs, and affirmed that the wartime OPCON transition would strengthen ROK and Alliance capabilities and the combined defense posture. 

    17. The Secretary and the Minister reviewed the regional security environment, and plans to expand U.S.-ROK security cooperation throughout the Indo-Pacific region to support maintaining a free and open Indo-Pacific that is connected, prosperous, secure, and resilient.  They also reaffirmed support for Association of Southeast Asian Nation (ASEAN) centrality and the ASEAN-led regional architecture as well as regional efforts of the Pacific Islands Forum.  In particular, the two leaders noted the importance of enhancing cooperation during the implementation of both the ROK and U.S. respective strategies for the Indo-Pacific region.  To this end, the Secretary and the Minister endorsed the “Regional Cooperation Framework for U.S.-ROK Alliance Contributions to Security in the Indo-Pacific,” and discussed priorities areas and partners to better respond to the complex regional and global security situation.  After reviewing the work of the ROK-U.S. Regional Cooperation Working Group (RCWG), both leaders reaffirmed their commitment to strengthen defense cooperation with ASEAN members and work together with the Pacific Island Countries to contribute to regional security.  The Secretary and the Minister also acknowledged the importance of preserving peace and stability in the Taiwan Strait as reflected in the April 2023 “Joint Statement in Commemoration of the 70th Anniversary of the Alliance between the United States of America and the Republic of Korea.”  

    18. The Secretary and the Minister reflected on the remarkable progress made during 2024 to fulfill the historic understandings at the Camp David Summit.  They welcomed the Memorandum of Cooperation on the Trilateral Security Cooperation Framework (TSCF), signed by the Ministers and the Secretary of the United States, ROK, and Japan in July, along with enhanced sharing of missile warning information and efforts to systematically conduct trilateral exercises, including the first execution of the multi-domain trilateral exercise FREEDOM EDGE.  The Secretary and the Minister reaffirmed their commitment to continuing to promote and expand trilateral security cooperation including senior-level policy consultations, trilateral exercises, information sharing, and defense exchange cooperation.

    19. The two sides also took the opportunity to reaffirm that expediting the relocation and return of U.S. military bases in the ROK is in the interests of both countries, and decided to work closely to ensure the timely return of the bases in accordance with the Status of Forces Agreement (SOFA) and related agreements.  The two leaders noted the significance of the complete construction of Yongsan Park, and pledged to expedite the remaining return of Yongsan Garrison.  The Minister and the Secretary also reaffirmed their mutual commitment to discuss the return of other U.S. military bases through regular consultations through SOFA channels to reach mutually acceptable outcomes in the future.

    20. Secretary Austin expressed his gratitude that the ROK is contributing toward ensuring a stable environment for U.S. Forces Korea.  The Secretary and Minister also welcomed the recent conclusion of consultations related to a 12th Special Measures Agreement (SMA), and concurred that it would greatly contribute to the strengthening of the U.S.-ROK combined defense posture.

    21. Secretary Austin and Minister Kim affirmed that the discussions during the 56th SCM and the 49th MCM contributed to strengthening the U.S.-ROK Alliance with a vision toward the further development of a truly global alliance.  The two leaders commended the U.S. and ROK military and civilian personnel that worked to strengthen the bond of the Alliance, and expressed appreciation for their shared commitment and sacrifice.  Both sides expect to hold the 57th SCM and 50th MCM in Seoul at a mutually convenient time in 2025.

    MIL OSI USA News –

  • MIL-OSI USA: Regional Cooperation Framework for U.S.-ROK Alliance Contributions to Security in the Indo-Pacific

    Source: United States Department of Defense

    The United States (U.S.) – Republic of Korea (ROK) Alliance remains the linchpin of peace and security not only on the Korean Peninsula but also in the Indo-Pacific region.

    Today the U.S. Department of Defense and ROK Ministry of National Defense announce the following Regional Cooperation Framework for U.S.-ROK Alliance Contributions to Security in the Indo-Pacific to facilitate deeper collaboration between our two countries and to demonstrate our commitment to maintaining a free, peaceful, and prosperous Indo-Pacific region.

    Our two nations share fundamentally common interests and values that underpin regional security efforts, such as respect for democratic governance, the rule of law, territorial integrity, and sovereignty. We seek to better align our efforts in the Indo-Pacific to help realize the vision of a global comprehensive strategic alliance and to advance the security and prosperity of our people, the region, and the globe.

    This framework builds upon our respective strategies for the region – the U.S. Indo-Pacific Strategy, and the ROK Strategy for a Free, Peaceful, and Prosperous Indo-Pacific region – to help develop and maintain a sustainable, secure, and resilient regional order. Our cooperative efforts also draw upon the 2023 Defense Vision of the U.S.-ROK Alliance, which identifies strengthening solidarity and regional security cooperation with like-minded partners as one of our key bilateral priorities, and are intended to support the Republic of Korea’s goal of becoming a “Global Pivotal State.” 

    To advance this cooperation, the U.S. Secretary of Defense and the ROK Minister of National Defense endorse the following general principles and seek to chart a path forward that ensures our common national interest:

    • Our cooperative efforts should seek to create a region that is more connected, prosperous, secure, and resilient. We intend to utilize approaches and pursue initiatives that are based on mutual confidence, trust, reciprocity, and respect for relevant international laws, standards, and norms.
    • Both the U.S. and ROK recognize that our national interests, as well as those of our bilateral Alliance, can be advanced by firmly upholding and strengthening the rules-based order in the Indo-Pacific region; this includes the freedoms of navigation and overflight, and other uses of the sea guaranteed to all nations under international law.
    • Both sides reaffirm their strong support for Association of Southeast Asian Nations (ASEAN) centrality, unity, and the ASEAN-led regional architecture; we commit to partnering closely with ASEAN to advance implementation of the ASEAN Outlook on the Indo-Pacific in defense-related areas; we are also determined to work closely with Pacific Island countries and the Pacific Islands Forum to build capacity in the region.
    • Both sides intend to pursue initiatives and activities together that more comprehensively build partner capacity, bolster maritime security, and foster collaboration and interoperability with like-minded countries in the region.
    • Through increased participation in multilateral exercises, both sides are determined to enhance the readiness, capability, and resilience of combined forces to be prepared to respond to evolving and complex threats in the region.
    • To expand comprehensive security cooperation, the U.S. and ROK intend to pursue initiatives that strengthen collaboration in the areas of non-proliferation, counter-terrorism, humanitarian aid and disaster relief, climate change, and the prevention of infectious diseases as well as empower regional organizations to contribute to greater regional stability; both sides also intend to increase information sharing with like-minded countries to better address challenges in the region.
    • In the area of defense exports and defense industrial cooperation, both sides intend to work together on issues of mutual interest including: sharing best practices on export controls, foreign direct investment, and technology security; exchanging information on expert planning and decision-making; and cooperating effectively to secure supply chains.
    • Both sides are also determined to work together to increase information sharing in the cyber domain to enhance regional cybersecurity practices and situational awareness, and build cyber resilience to defend against globally-expanding malicious cyber threats.
    • Finally, both sides also pledge to continue using established forums such as the Regional Cooperation Working Group (RCWG), and other existing bilateral mechanisms, to develop and sustain dialogue between the U.S. and ROK on defense cooperation in priority areas identified in both the government and industrial sectors. The mechanisms will report to the annual Security Consultative Meeting (SCM) through the Korea-U.S. Integrated Defense Dialogue (KIDD).

    To implement this framework, both sides intend to present concepts for cooperative projects through government channels and, where appropriate, facilitate business-to-business connections that may advance opportunities for collaboration and cooperation. These projects should complement other efforts being undertaken by other like-minded countries in the region and seek to effectively utilize public sector resources.

    Initiatives and projects under this framework will focus on the following areas, which both sides have identified as priority areas for cooperation, with a particular focus on cooperation with ASEAN and Pacific Island countries:

    Maritime Security 

    Multilateral Exercises

    Capacity Building 

    Defense Exports and Defense Industrial Cooperation

    Technical Cooperation (e.g., cyber security and emerging capabilities)

    Information Sharing

    Both sides intend to identify points of contact responsible for coordinating engagements and tracking the implementation of cooperative projects decided upon under this framework. The lead points of contact should review potential opportunities and prioritize actions, with the goal of presenting at least one project or initiative each year before the SCM.

    MIL OSI USA News –

  • MIL-OSI USA: Statement by Secretary of Defense Lloyd J. Austin III on the Fiscal Year 2024 Recruiting and Retention Report

    Source: United States Department of Defense

    The American military is the strongest fighting force on Earth.  For more than 50 years, our all-volunteer force has been sustained by qualified patriots who stand up to serve and keep our republic secure.  Our greatest strategic asset is our people, and we must continue to recruit and retain the best that our country has to offer.

    I am proud of the efforts of our service leaders and our recruiting teams, who recruited nearly 225,000 Americans into the ranks of the U.S. military in Fiscal Year 2024—25,000 more recruits than the previous year.  Nearly all active components met their recruiting goals for the year, and the Navy made significant strides forward by reaching its contracting goals.  Our Reserve Components also had a strong year, with the Army National Guard, the Air National Guard, and the Air Force Reserve all meeting their recruiting targets.  This strong progress on recruiting comes alongside our impressive retention rates for our brave and talented troops.

    As we look to build on these successes, we must continue to push against the ongoing headwinds in recruiting—including low unemployment and the legacies of the COVID years.  We’re reaching young people where they are, including in schools.  We’re finding new ways to tell the story of military service, underscoring that service to America’s defense is not only honorable but also a clear path to personal and professional success.  And we’re driving even harder to do right by our Service members and their families, including providing top-tier training, competitive compensation, and robust benefits that reflect their commitment to our country.

    The all-volunteer force remains the foundation of America’s national defense, and it is all of our duty to ensure that it remains strong for generations to come.  The Department of Defense remains deeply committed to ensuring that every qualified patriot has the opportunity to answer the call.

    MIL OSI USA News –

  • MIL-OSI USA: Sen. Russ Goodman Urges USDA Secretary to Extend Indemnity Coverage to Georgia Counties Impacted by Hurricane Helene

    Source: US State of Georgia

    ATLANTA (October 30, 2024) —Sen. Russ Goodman (R–Cogdell), Chairman of the Senate Committee on Agriculture and Consumer Affairs, has formally requested that the United States Department of Agriculture (USDA) re-evaluate its coverage area for the Hurricane Indemnity Program to include several Georgia counties heavily impacted by Hurricane Helene. In a letter sent to USDA Secretary Tom Vilsack, Sen. Goodman emphasized the urgent need for support for Georgia’s agricultural community, citing an estimated $6.4 billion in total damage to the state’s agricultural industry, with direct crop losses expected to exceed $3 billion.

    Several counties—Bulloch, Burke, Candler, Effingham, Evans, Jenkins, Lincoln, Long, Pierce, Richmond, Screven, Tattnall and Wayne—were excluded from the USDA Risk Management Agency’s initial coverage, potentially leaving local farmers without access to vital resources for recovery. Sen. Goodman’s letter, co-signed by several of his legislative colleagues, calls for a thorough analysis of the hurricane’s impact on these areas, leveraging all available data from reliable sources such as the National Oceanic and Atmospheric Administration (NOAA) and IBTrACS.

    “Seeing almost every Senator in our state come together on this issue speaks volumes about the gravity of the situation our farming families are facing,” said Sen. Goodman. “These farmers did their part by investing in Hurricane Indemnity policies. Now, they deserve to see the USDA step up to the plate. The impact of Hurricane Helene is apparent, and our farmers are counting on Secretary Vilsack to act, ensuring they are able to financially recover and rebuild from this devastation. As a legislative body, we’re united in backing our farmers and the belief that they deserve the support they were promised.”

    Sen. Goodman’s letter also highlighted challenges due to Hurricane Helene’s impact on the National Center for Environmental Information, emphasizing that these data limitations should not hinder the assessment of damages in affected regions.

    You can find a copy of the letter to Secretary Vilsack here.

    # # # #
    Sen. Russ Goodman serves as Chairman of the Senate Committee on Agriculture and Consumer Affairs. He represents the 8th Senate District, which includes Atkinson, Clinch, Echols, Lanier, Lowndes and Pierce Counties and a large portion of Ware County. He may be reached at 404.656.7454 or at     russ.goodman@senate.ga.gov

    MIL OSI USA News –

  • MIL-OSI: Climb Global Solutions Reports Record Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Net Income and Adjusted Net Income up more than 2x to $5.5 Million or $1.19 per Share and $7.1 million or $1.55 per share, respectively; Adjusted EBITDA up 96% to $9.9 Million

    Net Sales up 52% to $119.3 Million, with Adjusted Gross Billings Up 65% to $465.2 Million

    EATONTOWN, N.J., Oct. 30, 2024 (GLOBE NEWSWIRE) — Climb Global Solutions, Inc. (NASDAQ:CLMB) (“Climb”, the “Company”, “we”, or “our”), a value-added global IT channel company providing unique sales and distribution solutions for innovative technology vendors, is reporting results for the third quarter ended September 30, 2024.

    Third Quarter 2024 Summary vs. Same Year-Ago Quarter

    • Net sales increased 52% to $119.3 million.
    • Adjusted gross billings (a non-GAAP financial measure defined below) increased 65% to $465.2 million.
    • Net income increased more than 2x to $5.5 million or $1.19 per diluted share.
    • Adjusted net income (a non-GAAP financial measure defined below) also increased more than 2x to $7.1 million or $1.55 per diluted share.
    • Adjusted EBITDA (a non-GAAP financial measure defined below) increased 96% to $9.9 million.

    Management Commentary

    “Q3 was another period of exceptional growth for Climb as we generated record levels across all key financial metrics, while delivering on our acquisition objectives,” said CEO Dale Foster. “Our strong performance was driven by the execution of our core initiatives and the integration of DSS and DataSolutions into our operating platform. We also generated double-digit organic growth in both the U.S. and Europe as we deepened relationships with existing customers while signing new, innovative vendors to our line card.

    “Looking ahead, we will continue to leverage our global infrastructure to foster organic growth while actively evaluating M&A targets that complement our geographic footprint, expand our service and solution offerings and, most importantly, align with our high-performance culture. We expect to unlock additional synergies from our acquisitions and further improve operating leverage as we execute across our global platform. We believe that these initiatives, coupled with our proven track record of accretive M&A, will enable us to close out 2024 on a strong note and achieve another year of record results.”

    Dividend

    Subsequent to quarter end, on October 28, 2024, Climb’s Board of Directors declared a quarterly dividend of $0.17 per share of its common stock payable on November 15, 2024, to shareholders of record on November 11, 2024.

    Third Quarter 2024 Financial Results

    Net sales in the third quarter of 2024 increased 52% to $119.3 million compared to $78.5 million for the same period in 2023. This reflects organic growth from new and existing vendors, as well as contributions from the Company’s acquisitions of Douglas Stewart Software & Services, LLC (“DSS”) on July 31, 2024 and DataSolutions Holdings Limited (“DataSolutions”) on October 6, 2023. In addition, adjusted gross billings (“AGB”) in the third quarter of 2024 increased 65% to $465.2 million compared to $281.9 million in the year-ago period.

    Gross profit in the third quarter of 2024 increased 70% to $24.3 million compared to $14.3 million for the same period in 2023. The increase was driven by organic growth from new and existing vendors in both North America and Europe, as well as contributions from DSS and DataSolutions.

    Selling, general, and administrative (“SG&A”) expenses in the third quarter of 2024 were $13.9 million compared to $10.1 million in the year-ago period. SG&A from DSS and DataSolutions drove the majority of the increase as well as variable sales compensation attributed to the growth in AGB. SG&A as a percentage of adjusted gross billings decreased to 3.0% for the third quarter of 2024 compared to 3.6% in the year-ago period.

    Net income in the third quarter of 2024 increased more than 2x to $5.5 million or $1.19 per diluted share, compared to $2.4 million or $0.52 per diluted share for the same period in 2023. Net income was impacted by a $1.2 million charge related to a change in fair value of acquisition contingent consideration associated with DataSolutions. Adjusted net income also increased more than 2x to $7.1 million or $1.55 per diluted share, compared to $2.6 million or $0.56 per diluted share for the year-ago period. The Company’s earnings per diluted share in the third quarter of 2024 was negatively impacted by $0.05 in FX compared to the year-ago period.

    Adjusted EBITDA in the third quarter of 2024 increased 96% to $9.9 million compared to $5.1 million for the same period in 2023. The increase was primarily driven by organic growth from both new and existing vendors, as well as contribution from the Company’s acquisitions of DSS and DataSolutions. Effective margin, which is defined as adjusted EBITDA as a percentage of gross profit, increased 500 basis points to 41% compared to 36% for the same period in 2023.

    On September 30, 2024, cash and cash equivalents were $22.1 million compared to $36.3 million on December 31, 2023, while working capital decreased by $12.3 million during this period. The decrease in cash was primarily attributed to the cash paid at closing for the acquisition of DSS, $20.9 million, as well as the timing of receivable collections and payables. Climb had $0.9 million of outstanding debt on September 30, 2024, with no borrowings outstanding under its $50 million revolving credit facility.

    For more information on the non-GAAP financial measures discussed in this press release, please see the section titled, “Non-GAAP Financial Measures,” and the reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures at the end of this press release.

    Conference Call

    The Company will conduct a conference call tomorrow, October 31, 2024, at 8:30 a.m. Eastern time to discuss its results for the third quarter ended September 30, 2024.

    Climb management will host the conference call, followed by a question-and-answer period.

    Date: Thursday, October 31, 2024
    Time: 8:30 a.m. Eastern time
    Toll-free dial-in number: (800) 274-8461
    International dial-in number: (203) 518-9814
    Conference ID: CLIMB
    Webcast: Climb’s Q3 2024 Conference Call

    If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.

    The conference call will also be available for replay on the investor relations section of the Company’s website at www.climbglobalsolutions.com.

    About Climb Global Solutions

    Climb Global Solutions, Inc. (NASDAQ:CLMB) is a value-added global IT distribution and solutions company specializing in emerging and innovative technologies. Climb operates across the US, Canada and Europe through multiple business units, including Climb Channel Solutions, Grey Matter and Climb Global Services. The Company provides IT distribution and solutions for companies in the Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & ALM industries.

    Additional information can be found by visiting www.climbglobalsolutions.com.

    Non-GAAP Financial Measures

    Climb Global Solutions uses non-GAAP financial measures, including adjusted gross billings, adjusted net income and adjusted EBITDA, as supplemental measures of the performance of the Company’s business. Use of these financial measures has limitations, and you should not consider them in isolation or use them as substitutes for analysis of Climb’s financial results under generally accepted accounting principles in the United States of America (“U.S. GAAP”). The attached tables provide definitions of these measures and a reconciliation of each non-GAAP financial measure to the most nearly comparable measure under U.S. GAAP.

    Forward-Looking Statements

    The statements in this release, other than statements of historical fact, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to come within the safe harbor protection provided by those sections. These forward-looking statements are subject to certain risks and uncertainties. Many of the forward-looking statements may be identified by words such as ”look forward,” “believes,” “expects,” “intends,” “anticipates,” “plans,” “estimates,” “projects,” “forecasts,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “under construction,” “in development,” “opportunity,” “target,” “outlook,” “maintain,” “continue,” “goal,” “aim,” “commit,” or similar expressions, or when we discuss our priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations. In this press release, the forward-looking statements relate to, among other things, declaring and reaffirming our strategic goals, future operating results, and the effects and potential benefits of the strategic acquisition on our business. Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include, without limitation, our ability to recognize the anticipated benefits of the acquisitions of Data Solutions Holdings Limited and Douglas Stewart Software & Services, LLC, the continued acceptance of the Company’s distribution channel by vendors and customers, the timely availability and acceptance of new products, product mix, market conditions, competitive pricing pressures, the successful integration of acquisitions, contribution of key vendor relationships and support programs, inflation, as well as factors that affect the software industry in general. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described in the section entitled “Risk Factors” contained in Item 1A. of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and from time to time in the Company’s filings with the Securities and Exchange Commission.

    Company Contact

    Drew Clark
    Chief Financial Officer
    (732) 389-0932
    Drew@ClimbGS.com

    Investor Relations Contact

    Sean Mansouri, CFA or Aaron D’Souza
    Elevate IR
    (720) 330-2829
    CLMB@elevate-ir.com

             
    CLIMB GLOBAL SOLUTIONS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
      (Unaudited)
    (Amounts in thousands, except share and per share amounts)
             
        September 30, 2024   December 31, 2023
             
    ASSETS
             
    Current assets      
      Cash and cash equivalents $ 22,139     $ 36,295  
      Accounts receivable, net of allowance for doubtful accounts of $640 and $709, respectively   247,907       222,269  
      Inventory, net   4,445       3,741  
      Prepaid expenses and other current assets   6,629       6,755  
    Total current assets   281,120       269,060  
             
    Equipment and leasehold improvements, net   12,151       8,850  
    Goodwill   29,628       27,182  
    Other intangibles, net   46,041       26,930  
    Right-of-use assets, net   937       878  
    Accounts receivable long-term, net   752       797  
    Other assets   863       1,077  
    Deferred income tax assets   448       324  
             
    Total assets $ 371,940     $ 335,098  
             
    LIABILITIES AND STOCKHOLDERS’ EQUITY
             
    Current liabilities      
      Accounts payable and accrued expenses $ 273,893     $ 249,648  
      Lease liability, current portion   533       450  
      Term loan, current portion   555       540  
    Total current liabilities   274,981       250,638  
             
      Lease liability, net of current portion   796       879  
      Deferred income tax liabilities   5,671       5,554  
      Term loan, net of current portion   334       752  
      Non-current liabilities   2,490       2,505  
             
    Total liabilities   284,272       260,328  
             
             
    Stockholders’ equity      
      Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares      
      issued, and 4,606,790 and 4,573,448 shares outstanding , respectively   53       53  
      Additional paid-in capital   36,676       34,647  
      Treasury stock, at cost, 677,710 and 711,052 shares, respectively   (12,777 )     (12,623 )
      Retained earnings   62,560       53,215  
      Accumulated other comprehensive income (loss)   1,156       (522 )
    Total stockholders’ equity   87,668       74,770  
    Total liabilities and stockholders’ equity $ 371,940     $ 335,098  
             
    CLIMB GLOBAL SOLUTIONS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
    (Unaudited)
    (Amounts in thousands, except per share data)
                   
      Nine months ended   Three months ended
      September 30,   September 30,
        2024       2023       2024       2023  
                   
    Net Sales $ 303,847     $ 245,229     $ 119,349     $ 78,457  
                   
    Cost of sales, excluding depreciation and amortization expense   244,014       202,053       95,092       64,183  
                   
    Gross profit   59,833       43,176       24,257       14,274  
                   
                   
    Selling, general and administrative expenses   39,433       31,930       13,937       10,122  
    Depreciation & amortization expense   2,933       1,934       1,197       617  
    Acquisition related costs   1,201       277       609       246  
    Total selling, general and administrative expenses   43,567       34,141       15,743       10,985  
                   
    Income from operations   16,266       9,035       8,514       3,289  
                   
    Interest, net   755       760       198       318  
    Foreign currency transaction loss   (688 )     (100 )     (442 )     (140 )
    Change in fair value of acquisition contingent consideration   (1,152 )     –       (1,152 )     –  
    Income before provision for income taxes   15,181       9,695       7,118       3,467  
    Provision for income taxes   3,561       2,618       1,659       1,095  
                   
    Net income $ 11,620     $ 7,077     $ 5,459     $ 2,372  
                   
    Income per common share – Basic $ 2.54     $ 1.57     $ 1.19     $ 0.52  
    Income per common share – Diluted $ 2.54     $ 1.57     $ 1.19     $ 0.52  
                   
    Weighted average common shares outstanding – Basic   4,458       4,392       4,476       4,414  
    Weighted average common shares outstanding – Diluted   4,458       4,392       4,476       4,414  
                   
    Dividends paid per common share $ 0.51     $ 0.51     $ 0.17     $ 0.17  
                   
                   
    Reconciliation of GAAP and Non-GAAP Financial Measures (unaudited)            
    (Amounts in thousands, except per share data)              
                   
    The table below presents net sales reconciled to Adjusted Gross Billings (Non-GAAP) (1):        
                   
      Nine months ended   Three months ended
      September 30, September 30,   September 30,   September 30,
        2024       2023       2024       2023  
    Net sales $ 303,847     $ 245,229     $ 119,349     $ 78,457  
    Costs of sales related to sales where the Company is an agent   876,447       618,110       345,835       203,458  
    Adjusted gross billings (Non-GAAP) $ 1,180,294     $ 863,339     $ 465,184     $ 281,915  
                   

    (1) We define adjusted gross billings as net sales in accordance with US GAAP, adjusted for the cost of sales related to sales where the Company is an agent. We provided a reconciliation of adjusted gross billings to net sales, which is the most directly comparable US GAAP measure. We use adjusted gross billings of product and services as a supplemental measure of our performance to gain insight into the volume of business generated by our business, and to analyze the changes to our accounts receivable and accounts payable. Our use of adjusted gross billings of product and services as analytical tools has limitations, and you should not consider them in isolation or as substitutes for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate adjusted gross billings of product and services or similarly titled measures differently, which may reduce their usefulness as comparative measures.

      The table below presents net income reconciled to adjusted EBITDA (Non-GAAP) (2):
                     
        Nine months ended   Three months ended
        September 30, September 30,   September 30,   September 30,
          2024       2023       2024       2023  
                     
    Net income $ 11,620     $ 7,077     $ 5,459     $ 2,372  
      Provision for income taxes   3,561       2,618       1,659       1,095  
      Depreciation and amortization   2,933       1,934       1,197       617  
      Interest expense   266       94       105       45  
    EBITDA   18,380       11,723       8,420       4,129  
      Share-based compensation   2,810       3,422       904       687  
      Acquisition related costs   1,201       277       609       246  
    Adjusted EBITDA $ 22,391     $ 15,422     $ 9,933     $ 5,062  
                     
                     
        Nine months ended   Three months ended
        September 30, September 30,   September 30,   September 30,
    Components of interest, net   2024       2023       2024       2023  
                     
      Amortization of discount on accounts receivable with extended payment terms $ (23 )   $ (41 )   $ (6 )   $ (12 )
      Interest income   (998 )     (813 )     (297 )     (351 )
      Interest expense   266       94       105       45  
    Interest, net $ (755 )   $ (760 )   $ (198 )   $ (318 )
                     

    (2) We define adjusted EBITDA, as net income, plus provision for income taxes, depreciation, amortization, share-based compensation, interest and acquisition related costs. We define effective margin as adjusted EBITDA as a percentage of gross profit. We provided a reconciliation of adjusted EBITDA to net income, which is the most directly comparable US GAAP measure. We use adjusted EBITDA as a supplemental measure of our performance to gain insight into our businesses profitability when compared to the prior year and our competitors. Adjusted EBITDA is also a component to our financial covenants in our credit facility. Our use of adjusted EBITDA has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate adjusted EBITDA, or similarly titled measures differently, which may reduce their usefulness as comparative measures.

    The table below presents net income reconciled to adjusted net income (Non-GAAP) (3):
                   
      Nine months ended   Three months ended
    September 30, September 30,   September 30,   September 30,
      2024       2023       2024       2023  
                   
    Net income $ 11,620     $ 7,077     $ 5,459     $ 2,372  
    Acquisition related costs, net of income taxes   901       208       457       185  
    One-time CEO stock grant   –       1,796       –       –  
    Change in fair value of acquisition contingent consideration   1,152       –       1,152       –  
    Adjusted net income $ 13,673     $ 9,081     $ 7,068     $ 2,557  
                   
    Adjusted net income per common share – diluted $ 3.00     $ 2.03     $ 1.55     $ 0.56  
                                   

    (3) We define adjusted net income as net income excluding acquisition related costs, net of income taxes, the stock compensation expense recognized for the one-time CEO stock grant, and the change in fair value of acquisition contingent consideration. We provided a reconciliation of adjusted net income to net income, which is the most directly comparable U.S. GAAP measure. We use adjusted net income as a supplemental measure of our performance to gain insight into comparison of our businesses profitability when compared to the prior year. Our use of adjusted net income has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. In addition, other companies, including companies in our industry, might calculate adjusted net income, or similarly titled measures differently, which may reduce their usefulness as comparative measures.

    The MIL Network –

  • MIL-OSI: Trupanion Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    SEATTLE, Oct. 30, 2024 (GLOBE NEWSWIRE) — Trupanion, Inc. (Nasdaq: TRUP), a leading provider of medical insurance for cats and dogs, today announced financial results for the third quarter ended September 30, 2024.

    “Q3 was a very strong financial quarter for the company, combining consistent revenue growth with a 66% year-over-year increase in subscription discretionary profit,” said Margi Tooth, Chief Executive Officer and President of Trupanion. “This outperformance was driven by aligning the cost of veterinary care with member pricing, resulting in the achievement of our target value proposition of 71%. Trupanion is solving a bigger problem today than ever before, and after generating $30 million in free cash flow over the past 12 months, we are well positioned to reach even more pets in this globally underpenetrated market.”

    Third Quarter 2024 Financial and Business Highlights

    • Total revenue was $327.5 million, an increase of 15% compared to the third quarter of 2023.
    • Total enrolled pets (including pets from our other business segment) was 1,688,903 at September 30, 2024, a decrease of 1% over September 30, 2023.
    • Subscription business revenue was $219.0 million, an increase of 20% compared to the third quarter of 2023.
    • Subscription enrolled pets was 1,032,042 at September 30, 2024, an increase of 6% over September 30, 2023.
    • Net income was $1.4 million, or $0.03 per basic and diluted share, compared to a net loss of $(4.0) million, or $(0.10) per basic and diluted share, in the third quarter of 2023.
    • Adjusted EBITDA was $14.5 million, compared to adjusted EBITDA of $6.1 million in the third quarter of 2023.
    • Operating cash flow was $15.3 million and free cash flow was $13.4 million in the third quarter of 2024. This compared to operating cash flow of $11.4 million and free cash flow of $7.0 million in the third quarter of 2023.

    First Nine Months 2024 Financial and Business Highlights

    • Total revenue was $948.4 million, an increase of 17% compared to the first nine months of 2023.
    • Subscription business revenue was $628.7 million, an increase of 21% compared to the first nine months of 2023.
    • Net loss was $(11.3) million, or $(0.27) per basic and diluted share, compared to a net loss of $(42.5) million, or $(1.03) per basic and diluted share, in the first nine months of 2023.
    • Adjusted EBITDA was $26.7 million, compared to adjusted EBITDA of $(2.1) million in the first nine months of 2023.
    • Operating cash flow was $24.6 million and free cash flow was $16.7 million in the first nine months of 2024. This compared to operating cash flow of $1.1 million and free cash flow of $(13.2) million in the first nine months of 2023.
    • At September 30, 2024, the Company held $293.1 million in cash and short-term investments, including $36.4 million held outside the insurance entities, with an additional $15 million available under its credit facility.
    • The Company maintained $274.6 million of capital surplus at its insurance subsidiaries. This was $139.9 million more than the estimated risk-based capital requirement of $134.7 million.

    Conference Call
    Trupanion’s management will host a conference call today to review its third quarter 2024 results. The call is scheduled to begin shortly after 1:30 p.m. PT/ 4:30 p.m. ET. A live webcast will be accessible through the Investor Relations section of Trupanion’s website at https://investors.trupanion.com/ and will be archived online for 3 months upon completion of the conference call. Participants can access the conference call by dialing 1-877-300-8521 (United States) or 1-412-317-6026 (International). A telephonic replay of the call will also be available after the completion of the call, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (International) and entering the replay pin number: 10192561.

    About Trupanion
    Trupanion is a leader in medical insurance for cats and dogs throughout the United States, Canada, Continental Europe, Australia, and Puerto Rico with over 1,000,000 pets enrolled. For over two decades, Trupanion has given pet owners peace of mind so they can focus on their pet’s recovery, not financial stress. Trupanion is committed to providing pet owners with the highest value in pet medical insurance with unlimited payouts for the life of their pets. With its patented process, Trupanion is the only North American provider with the technology to pay veterinarians directly in seconds at the time of checkout. Trupanion is listed on NASDAQ under the symbol “TRUP”. The company was founded in 2000 and is headquartered in Seattle, WA. Trupanion policies are issued, in the United States, by its wholly-owned insurance entity American Pet Insurance Company and, in Canada, by Accelerant Insurance Company of Canada. Trupanion Australia is a partnership between Trupanion and Hollard Insurance Company. Policies are sold and administered by Trupanion Managers USA, Inc. (CA license No. 0G22803, NPN 9588590). For more information, please visit trupanion.com.

    Forward-Looking Statements
    This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to, among other things, expectations, plans, prospects and financial results for Trupanion, including, but not limited to, its expectations regarding its ability to continue to grow its enrollments and revenue, and otherwise execute its business plan. These forward-looking statements are based upon the current expectations and beliefs of Trupanion’s management as of the date of this press release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements made in this press release are based on information available to Trupanion as of the date hereof, and Trupanion has no obligation to update these forward-looking statements.

    In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the ability to achieve or maintain profitability and/or appropriate levels of cash flow in future periods; the ability to keep growing our membership base and revenue; the accuracy of assumptions used in determining appropriate member acquisition expenditures; the severity and frequency of claims; the ability to maintain high retention rates; the accuracy of assumptions used in pricing medical plan subscriptions and the ability to accurately estimate the impact of new products or offerings on claims frequency; actual claims expense exceeding estimates; regulatory and other constraints on the ability to institute, or the decision to otherwise delay, pricing modifications in response to changes in actual or estimated claims expense; the effectiveness and statutory or regulatory compliance of our Territory Partner model and of our Territory Partners, veterinarians and other third parties in recommending medical plan subscriptions to potential members; the ability to retain existing Territory Partners and increase the number of Territory Partners and active hospitals; compliance by us and those referring us members with laws and regulations that apply to our business, including the sale of a pet medical plan; the ability to maintain the security of our data; fluctuations in the Canadian currency exchange rate; the ability to protect our proprietary and member information; the ability to maintain our culture and team; the ability to maintain the requisite amount of risk-based capital; our ability to implement and maintain effective controls, including to remediate material weaknesses in internal controls over financial reporting; the ability to protect and enforce Trupanion’s intellectual property rights; the ability to successfully implement our alliance with Aflac; the ability to continue key contractual relationships with third parties; third-party claims including litigation and regulatory actions; the ability to recognize benefits from investments in new solutions and enhancements to Trupanion’s technology platform and website; our ability to retain key personnel; and deliberations and determinations by the Trupanion board based on the future performance of the company or otherwise.

    For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the Securities and Exchange Commission (SEC), including but not limited to, Trupanion’s Annual Report on Form 10-K for the year ended December 31, 2023 and any subsequently filed reports on Forms 10-Q, 10-K and 8-K. All documents are available through the SEC’s Electronic Data Gathering Analysis and Retrieval system at https://www.sec.gov or the Investor Relations section of Trupanion’s website at https://investors.trupanion.com.

    Non-GAAP Financial Measures
    Trupanion’s stated results may include certain non-GAAP financial measures. These non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry as other companies in its industry may calculate or use non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Trupanion’s reported financial results. The presentation and utilization of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Trupanion urges its investors to review the reconciliation of its non-GAAP financial measures to the most directly comparable GAAP financial measures in its consolidated financial statements, and not to rely on any single financial or operating measure to evaluate its business. These reconciliations are included below and on Trupanion’s Investor Relations website.

    Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, Trupanion believes that providing various non-GAAP financial measures that exclude stock-based compensation expense and depreciation and amortization expense allows for more meaningful comparisons between its operating results from period to period. Trupanion offsets new pet acquisition expense with sign-up fee revenue in the calculation of net acquisition cost because it collects sign-up fee revenue from new members at the time of enrollment and considers it to be an offset to a portion of Trupanion’s new pet acquisition expense. Trupanion believes this allows it to calculate and present financial measures in a consistent manner across periods. Trupanion’s management believes that the non-GAAP financial measures and the related financial measures derived from them are important tools for financial and operational decision-making and for evaluating operating results over different periods of time.

    Trupanion, Inc.
    Condensed Consolidated Statements of Operations
    (in thousands, except share data)
      Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
        2024       2023       2024       2023  
      (unaudited)
    Revenue:              
    Subscription business $ 218,986     $ 182,906     $ 628,738     $ 521,369  
    Other business   108,470       102,947       319,639       291,379  
    Total revenue   327,456       285,853       948,377       812,748  
    Cost of revenue:              
    Subscription business(1)   177,365       157,444       525,237       455,055  
    Other business   100,712       93,176       297,265       266,741  
    Total cost of revenue(2)   278,077       250,620       822,502       721,796  
    Operating expenses:              
    Technology and development(1)   7,933       5,302       23,083       15,434  
    General and administrative(1)   16,977       12,664       46,903       46,817  
    New pet acquisition expense(1)   18,308       17,772       53,025       60,183  
    Depreciation and amortization   4,381       2,990       12,542       9,445  
    Total operating expenses   47,599       38,728       135,553       131,879  
    Gain (loss) from investment in joint venture   (34 )     4       (184 )     (140 )
    Operating income (loss)   1,746       (3,491 )     (9,862 )     (41,067 )
    Interest expense   3,820       3,053       11,071       8,380  
    Other income, net   (3,538 )     (2,465 )     (9,601 )     (6,445 )
    Income (loss) before income taxes   1,464       (4,079 )     (11,332 )     (43,002 )
    Income tax expense (benefit)   39       (43 )     (43 )     (472 )
    Net income (loss) $ 1,425     $ (4,036 )   $ (11,289 )   $ (42,530 )
                   
    Net income (loss) per share:              
    Basic $ 0.03     $ (0.10 )   $ (0.27 )   $ (1.03 )
    Diluted $ 0.03     $ (0.10 )   $ (0.27 )   $ (1.03 )
    Weighted average shares of common stock outstanding:              
    Basic   42,233,903       41,536,575       42,076,998       41,344,195  
    Diluted   42,822,505       41,536,575       42,076,998       41,344,195  
                   
    (1)Includes stock-based compensation expense as follows: Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
     
        2024       2023       2024       2023  
    Cost of revenue $ 1,401     $ 1,176     $ 4,186     $ 3,801  
    Technology and development   1,259       650       3,774       1,985  
    General and administrative   4,125       3,281       11,435       14,448  
    New pet acquisition expense   1,555       1,785       5,743       5,626  
    Total stock-based compensation expense $ 8,340     $ 6,892     $ 25,138     $ 25,860  
                   
    (2)The breakout of cost of revenue between veterinary invoice expense and other cost of revenue is as follows:
      Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
        2024       2023       2024       2023  
    Veterinary invoice expense $ 238,814     $ 212,441     $ 703,485     $ 613,316  
    Other cost of revenue   39,263       38,179       119,017       108,480  
    Total cost of revenue $ 278,077     $ 250,620     $ 822,502     $ 721,796  
    Trupanion, Inc.
    Condensed Consolidated Balance Sheets
    (in thousands, except share data)
      September 30, 2024   December 31, 2023
      (unaudited)    
    Assets      
    Current assets:      
    Cash and cash equivalents $ 137,477     $ 147,501  
    Short-term investments   155,580       129,667  
    Accounts and other receivables, net of allowance for doubtful accounts of $1,015 at September 30, 2024 and $1,085 at December 31, 2023   289,823       267,899  
    Prepaid expenses and other assets   16,692       17,022  
    Total current assets   599,572       562,089  
    Restricted cash   23,394       22,963  
    Long-term investments   14,215       12,866  
    Property, equipment and internal-use software, net   102,862       103,650  
    Intangible assets, net   14,888       18,745  
    Other long-term assets   16,004       18,922  
    Goodwill   45,183       43,713  
    Total assets $ 816,118     $ 782,948  
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Accounts payable $ 10,136     $ 10,505  
    Accrued liabilities and other current liabilities   33,461       34,052  
    Reserve for veterinary invoices   56,668       63,238  
    Deferred revenue   260,238       235,329  
    Long-term debt – current portion   1,350       1,350  
    Total current liabilities   361,853       344,474  
    Long-term debt   127,548       127,580  
    Deferred tax liabilities   2,166       2,685  
    Other liabilities   4,376       4,487  
    Total liabilities   495,943       479,226  
    Stockholders’ equity:      
    Common stock: $0.00001 par value per share, 100,000,000 shares authorized; 43,368,881 and 42,340,695 issued and outstanding at September 30, 2024; 42,887,052 and 41,858,866 shares issued and outstanding at December 31, 2023   —       —  
    Preferred stock: $0.00001 par value per share, 10,000,000 shares authorized; no shares issued and outstanding   —       —  
    Additional paid-in capital   561,010       536,108  
    Accumulated other comprehensive income (loss)   3,243       403  
    Accumulated deficit   (227,544 )     (216,255 )
    Treasury stock, at cost: 1,028,186 shares at September 30, 2024 and December 31, 2023   (16,534 )     (16,534 )
    Total stockholders’ equity   320,175       303,722  
    Total liabilities and stockholders’ equity $ 816,118     $ 782,948  
    Trupanion, Inc.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
      Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
        2024       2023       2024       2023  
      (unaudited)
    Operating activities              
    Net income (loss) $ 1,425     $ (4,036 )   $ (11,289 )   $ (42,530 )
    Adjustments to reconcile net loss to cash provided by (used in) operating activities:              
    Depreciation and amortization   4,381       2,990       12,542       9,445  
    Stock-based compensation expense   8,341       6,892       25,138       25,860  
    Other, net   (136 )     (549 )     (453 )     (1,134 )
    Changes in operating assets and liabilities:              
    Accounts and other receivables   (3,794 )     (12,409 )     (22,020 )     (45,593 )
    Prepaid expenses and other assets   101       452       2,398       (2,761 )
    Accounts payable, accrued liabilities, and other liabilities   1,377       2,632       (350 )     (3,832 )
    Reserve for veterinary invoices   (3,934 )     5,258       (6,469 )     17,697  
    Deferred revenue   7,535       10,168       25,088       43,979  
    Net cash provided by (used in) operating activities   15,296       11,398       24,585       1,131  
    Investing activities              
    Purchases of investment securities   (26,125 )     (29,458 )     (107,375 )     (109,389 )
    Maturities and sales of investment securities   26,089       29,713       81,767       147,365  
    Purchases of property, equipment, and internal-use software   (1,914 )     (4,391 )     (7,858 )     (14,310 )
    Other   490       837       1,552       1,420  
    Net cash provided by (used in) investing activities   (1,460 )     (3,299 )     (31,914 )     25,086  
    Financing activities              
    Proceeds from debt financing, net of financing fees   —       24,972       —       60,102  
    Proceeds from exercise of stock options   258       628       729       1,281  
    Shares withheld to satisfy tax withholding   (802 )     (272 )     (1,390 )     (1,296 )
    Repayments of debt financing   (338 )     (338 )     (1,013 )     (1,380 )
    Other financing   (157 )     (150 )     (609 )     (150 )
    Net cash provided by (used in) financing activities   (1,039 )     24,840       (2,283 )     58,557  
    Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net   481       (906 )     19       (830 )
    Net change in cash, cash equivalents, and restricted cash   13,278       32,033       (9,593 )     83,944  
    Cash, cash equivalents, and restricted cash at beginning of period   147,593       136,548       170,464       84,637  
    Cash, cash equivalents, and restricted cash at end of period $ 160,871     $ 168,581     $ 160,871     $ 168,581  
    The following tables set forth our key operating metrics.
                                   
      Nine Months Ended
    September 30,    		                        
        2024       2023                          
    Total Business:                              
    Total pets enrolled (at period end)   1,688,903       1,712,177                          
    Subscription Business:                              
    Total subscription pets enrolled (at period end)   1,032,042       969,322                          
    Monthly average revenue per pet $ 71.94     $ 64.63                          
    Lifetime value of a pet, including fixed expenses $ 493     $ 428                          
    Average pet acquisition cost (PAC) $ 227     $ 232                          
    Average monthly retention   98.29 %     98.55 %                        
                                   
                                   
      Three Months Ended
      Sep. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sep. 30, 2023   Jun. 30, 2023   Mar. 31, 2023   Dec. 31, 2022
    Total Business:                              
    Total pets enrolled (at period end)   1,688,903       1,699,643       1,708,017       1,714,473       1,712,177       1,679,659       1,616,865       1,537,573  
    Subscription Business:                              
    Total subscription pets enrolled (at period end)   1,032,042       1,020,934       1,006,168       991,426       969,322       943,958       906,369       869,862  
    Monthly average revenue per pet $ 74.27     $ 71.72     $ 69.79     $ 67.07     $ 65.82     $ 64.41     $ 63.58     $ 63.11  
    Lifetime value of a pet, including fixed expenses $ 493     $ 450     $ 428     $ 419     $ 428     $ 470     $ 541     $ 641  
    Average pet acquisition cost (PAC) $ 243     $ 231     $ 207     $ 217     $ 212     $ 236     $ 247     $ 283  
    Average monthly retention   98.29 %     98.34 %     98.41 %     98.49 %     98.55 %     98.61 %     98.65 %     98.69 %
    The following table reflects the reconciliation of cash provided by operating activities to free cash flow (in thousands):
                   
      Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
        2024       2023       2024       2023  
    Net cash provided by operating activities $ 15,296     $ 11,398     $ 24,585     $ 1,131  
    Purchases of property, equipment, and internal-use software   (1,914 )     (4,391 )     (7,858 )     (14,310 )
    Free cash flow $ 13,382     $ 7,007     $ 16,727     $ (13,179 )
    The following table reflects the reconciliation between GAAP and non-GAAP measures (in thousands except percentages):
        Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
          2024       2023       2024       2023  
    Veterinary invoice expense   $ 238,814     $ 212,441     $ 703,485     $ 613,316  
    Less:                
    Stock-based compensation expense(1)     (830 )     (870 )     (2,535 )     (2,565 )
    Other business cost of paying veterinary invoices(4)     (82,507 )     (72,694 )     (239,342 )     (210,286 )
    Subscription cost of paying veterinary invoices (non-GAAP)   $ 155,477     $ 138,877     $ 461,608     $ 400,465  
    % of subscription revenue     71.0 %     75.9 %     73.4 %     76.8 %
                     
    Other cost of revenue   $ 39,263     $ 38,179     $ 119,017     $ 108,480  
    Less:                
    Stock-based compensation expense(1)     (536 )     (282 )     (1,479 )     (1,158 )
    Other business variable expenses(4)     (18,126 )     (20,482 )     (57,713 )     (56,455 )
    Subscription variable expenses (non-GAAP)   $ 20,601     $ 17,415     $ 59,825     $ 50,867  
    % of subscription revenue     9.4 %     9.5 %     9.5 %     9.8 %
                     
    Technology and development expense   $ 7,933     $ 5,302     $ 23,083     $ 15,434  
    General and administrative expense     16,977       12,664       46,903       46,817  
    Less:                
    Stock-based compensation expense(1)     (5,258 )     (3,754 )     (14,465 )     (16,072 )
    Non-recurring transaction or restructuring expenses(2)     —       (8 )     —       (4,175 )
    Development expenses(3)     (1,474 )     (1,594 )     (4,307 )     (3,417 )
    Fixed expenses (non-GAAP)   $ 18,178     $ 12,610     $ 51,214     $ 38,587  
    % of total revenue     5.6 %     4.4 %     5.4 %     4.7 %
                     
    New pet acquisition expense   $ 18,308     $ 17,772     $ 53,025     $ 60,183  
    Less:                
    Stock-based compensation expense(1)     (1,503 )     (1,679 )     (5,426 )     (5,433 )
    Other business pet acquisition expense(4)     (8 )     (10 )     (31 )     (123 )
    Subscription acquisition cost (non-GAAP)   $ 16,797     $ 16,083     $ 47,568     $ 54,627  
    % of subscription revenue     7.7 %     8.8 %     7.6 %     10.5 %
                     
    (1) Trupanion employees may elect to take restricted stock units in lieu of cash payment for their bonuses. We account for such expense as stock-based compensation according to GAAP, but we do not include it in any non-GAAP adjustments. Stock-based compensation associated with bonuses was approximately $0.2 million and $1.3 million for the three and nine months ended September 30, 2024, respectively.
    (2) Consists of business acquisition transaction expenses, severance and legal costs due to certain executive departures, and a $3.8 million non-recurring settlement of accounts receivable in the first quarter of 2023 related to uncollected premiums in connection with the transition of underwriting a third-party business to other insurers.
    (3) Consists of costs related to product exploration and development that are pre-revenue and historically have been insignificant.
    (4) Excludes the portion of stock-based compensation expense attributable to the other business segment.
    The following table reflects the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages):
      Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
        2024       2023       2024       2023  
    Operating income (loss) $ 1,746     $ (3,491 )   $ (9,862 )   $ (41,067 )
    Non-GAAP expense adjustments              
    Acquisition cost   16,805       16,093       47,599       54,750  
    Stock-based compensation expense(1)   8,127       6,585       23,905       25,228  
    Development expenses(3)   1,474       1,594       4,307       3,417  
    Depreciation and amortization   4,381       2,990       12,542       9,445  
    Non-recurring transaction or restructuring expenses(2)   —       8       —       4,175  
    Gain (loss) from investment in joint venture   (34 )     4       (184 )     (140 )
    Total adjusted operating income (non-GAAP) $ 32,567     $ 23,775     $ 78,675     $ 56,088  
                   
    Subscription Business:              
    Subscription operating income (loss) $ 3,824     $ (5,709 )   $ (4,109 )   $ (37,294 )
    Non-GAAP expense adjustments              
    Acquisition cost   16,797       16,083       47,568       54,627  
    Stock-based compensation expense(1)   6,215       4,996       18,723       19,229  
    Development expenses(3)   986       1,257       2,855       2,439  
    Depreciation and amortization   2,929       1,913       8,315       6,060  
    Non-recurring transaction or restructuring expenses(2)   —       5       —       223  
    Subscription adjusted operating income (non-GAAP) $ 30,751     $ 18,545     $ 73,352     $ 45,284  
                   
    Other Business:      
    Other business operating income (loss) $ (2,044 )   $ 2,214     $ (5,569 )   $ (3,633 )
    Non-GAAP expense adjustments              
    Acquisition cost   8       10       31       123  
    Stock-based compensation expense(1)   1,912       1,589       5,182       5,999  
    Development expenses(3)   488       337       1,452       978  
    Depreciation and amortization   1,452       1,077       4,227       3,385  
    Non-recurring transaction or restructuring expenses(2)   —       3       —       3,952  
    Other business adjusted operating income (non-GAAP) $ 1,816     $ 5,230     $ 5,323     $ 10,804  
                   
    (1) Trupanion employees may elect to take restricted stock units in lieu of cash payment for their bonuses. We account for such expense as stock-based compensation in accordance with GAAP, but we do not include it in any non-GAAP adjustments. Stock-based compensation associated with bonuses was approximately $0.2 million and $1.3 million for the three and nine months ended September 30, 2024, respectively.
    (2) Consists of business acquisition transaction expenses, severance and legal costs due to certain executive departures, and a $3.8 million non-recurring settlement of accounts receivable in the first quarter of 2023 related to uncollected premiums in connection with the transition of underwriting a third-party business to other insurers.
    (3) Consists of costs related to product exploration and development that are pre-revenue and historically have been insignificant.
    The following table reflects the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages):
      Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
       
        2024       2023       2024       2023  
    Subscription revenue $ 218,986     $ 182,906     $ 628,738     $ 521,369  
    Subscription cost of paying veterinary invoices   155,477       138,877       461,608       400,465  
    Subscription variable expenses   20,601       17,415       59,825       50,867  
    Subscription fixed expenses*   12,157       8,069       33,953       24,753  
    Subscription adjusted operating income (non-GAAP) $ 30,751     $ 18,545     $ 73,352     $ 45,284  
    Other business revenue   108,470       102,947     $ 319,639     $ 291,379  
    Other business cost of paying veterinary invoices   82,507       72,694       239,342       210,286  
    Other business variable expenses   18,126       20,482       57,713       56,455  
    Other business fixed expenses*   6,021       4,541       17,261       13,834  
    Other business adjusted operating income (non-GAAP) $ 1,816     $ 5,230     $ 5,323     $ 10,804  
    Revenue   327,456       285,853     $ 948,377     $ 812,748  
    Cost of paying veterinary invoices   237,984       211,571       700,950       610,751  
    Variable expenses   38,727       37,897       117,538       107,322  
    Fixed expenses*   18,178       12,610       51,214       38,587  
    Total business adjusted operating income (non-GAAP) $ 32,567     $ 23,775     $ 78,675     $ 56,088  
                   
    As a percentage of revenue: Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
        2024       2023       2024       2023  
    Subscription revenue   100.0 %     100.0 %     100.0 %     100.0 %
    Subscription cost of paying veterinary invoices   71.0 %     75.9 %     73.4 %     76.8 %
    Subscription variable expenses   9.4 %     9.5 %     9.5 %     9.8 %
    Subscription fixed expenses*   5.6 %     4.4 %     5.4 %     4.7 %
    Subscription adjusted operating income (non-GAAP)   14.0 %     10.1 %     11.7 %     8.7 %
                   
    Other business revenue   100.0 %     100.0 %     100.0 %     100.0 %
    Other business cost of paying veterinary invoices   76.1 %     70.6 %     74.9 %     72.2 %
    Other business variable expenses   16.7 %     19.9 %     18.1 %     19.4 %
    Other business fixed expenses*   5.6 %     4.4 %     5.4 %     4.7 %
    Other business adjusted operating income (non-GAAP)   1.7 %     5.1 %     1.7 %     3.7 %
                   
    Revenue   100.0 %     100.0 %     100.0 %     100.0 %
    Cost of paying veterinary invoices   72.7 %     74.0 %     73.9 %     75.1 %
    Variable expenses   11.8 %     13.3 %     12.4 %     13.2 %
    Fixed expenses*   5.6 %     4.4 %     5.4 %     4.7 %
    Total business adjusted operating income (non-GAAP)   9.9 %     8.3 %     8.3 %     6.9 %
                   
    *Fixed expenses represent shared services that support both our subscription and other business segments and, as such, are generally allocated to each segment pro-rata based on revenues.
     

    Adjusted operating income is a non-GAAP financial measure that adjusts operating income (loss) to remove the effect of acquisition cost, development expenses, non-recurring transaction or restructuring expenses, and gain (loss) from investment in joint venture. Non-cash items, such as stock-based compensation expense and depreciation and amortization, are also excluded. Acquisition cost, development expenses, gain (loss) from investment in joint venture, stock-based compensation expense, and depreciation and amortization are expected to remain recurring expenses for the foreseeable future, but are excluded from this metric to measure scale in other areas of the business. Management believes acquisition costs primarily represent the cost to acquire new subscribers and are driven by the amount of growth we choose to pursue based primarily on the amount of our adjusted operating income period over period. Accordingly, this measure is not indicative of our core operating income performance. We also exclude development expenses, gain (loss) from investment in joint venture, stock-based compensation expense, and depreciation and amortization because some investors may not view those items as reflective of our core operating income performance.

    Management uses adjusted operating income and the margin on adjusted operating income to understand the effects of scale in its non-acquisition cost and development expenses and to plan future advertising expenditures, which are designed to acquire new pets. Management uses this measure as a principal way of understanding the operating performance of its business exclusive of acquisition cost and new product exploration and development initiatives. Management believes disclosure of this metric provides investors with the same data that the Company employs in assessing its overall operations and that disclosure of this measure may provide useful information regarding the efficiency of our utilization of revenues, return on advertising dollars in the form of new subscribers and future use of available cash to support the continued growth of our business.

    The following tables reflect the reconciliation of adjusted EBITDA to net income (loss) (in thousands):
                                   
      Nine Months Ended
    September 30,    		                        
        2024       2023                          
    Net loss $ (11,289 )   $ (42,530 )                        
    Excluding:                              
    Stock-based compensation expense   23,906       25,228                          
    Depreciation and amortization expense   12,542       9,445                          
    Interest income   (9,412 )     (6,169 )                        
    Interest expense   11,071       8,380                          
    Other non-operating expenses   —       —                          
    Income tax benefit   (43 )     (472 )                        
    Non-recurring transaction or restructuring expenses   —       4,175                          
    (Gain) loss from equity method investment   (33 )     (110 )                        
    Adjusted EBITDA $ 26,742     $ (2,053 )                        
                                   
      Three Months Ended
      Sep. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sep. 30, 2023   Jun. 30, 2023   Mar. 31, 2023   Dec. 31, 2022
    Net income (loss) $ 1,425     $ (5,862 )   $ (6,852 )   $ (2,163 )   $ (4,036 )   $ (13,714 )   $ (24,780 )   $ (9,285 )
    Excluding:                              
    Stock-based compensation expense   8,127       8,381       7,398       6,636       6,585       6,503       12,140       8,412  
    Depreciation and amortization expense   4,381       4,376       3,785       3,029       2,990       3,253       3,202       2,897  
    Interest income   (3,232 )     (3,135 )     (3,045 )     (2,842 )     (2,389 )     (2,051 )     (1,729 )     (1,614 )
    Interest expense   3,820       3,655       3,596       3,697       3,053       2,940       2,387       1,587  
    Other non-operating expenses   —           —           —       —       —       —  
    Income tax expense (benefit)   39       (44 )     (38 )     130       (43 )     (238 )     (191 )     (15 )
    Non-recurring transaction or restructuring expenses   —           —           8       65       4,102       193  
    (Gain) loss from equity method investment   (33 )         —           (110 )     —       —       —  
    Adjusted EBITDA $ 14,527     $ 7,371     $ 4,844     $ 8,487     $ 6,058     $ (3,242 )   $ (4,869 )   $ 2,175  
     

    Contacts:

    Investors:
    Laura Bainbridge, Senior Vice President, Corporate Communications
    Gil Melchior, Director, Investor Relations
    Investor.Relations@trupanion.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/214fb96d-127a-4bf6-af8e-cc7b9498e1ec

    The MIL Network –

  • MIL-OSI: Archrock Announces Timing for Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, Oct. 30, 2024 (GLOBE NEWSWIRE) — Archrock, Inc. (NYSE:AROC) (“Archrock”) will host a conference call on Tuesday, November 12, 2024, to discuss its third quarter 2024 financial and operating results. The call will begin at 9:00 a.m. Eastern Time. Archrock will release its third quarter 2024 earnings report prior to the conference call.

    To listen to the call via a live webcast, please visit Archrock’s website at www.archrock.com. The call will also be available by dialing 1 (800) 715-9871 in the United States and Canada, or 1 (646) 307-1963 for international calls. The access code is 4749623. A replay of the webcast will be available for 90 days on Archrock’s website shortly after the call.

    About Archrock

    Archrock is an energy infrastructure company with a primary focus on midstream natural gas compression and a commitment to helping its customers produce, compress and transport natural gas in a safe and environmentally responsible way. Headquartered in Houston, Texas, Archrock is a premier provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment. For more information on how the Company embodies its purpose, WE POWER A CLEANER AMERICA™, visit www.archrock.com.

    SOURCE: Archrock, Inc.

    For information, contact:

    Megan Repine
    Vice President, Investor Relations
    (281) 836-8360
    investor.relations@archrock.com

    The MIL Network –

  • MIL-OSI: NCS Multistage Holdings, Inc. Announces Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Third Quarter Results

    • Total revenues of $44.0 million, a 15% year-over-year improvement, driven in part by increased international revenues
    • Net income of $4.1 million and diluted earnings per share of $1.60, compared to $4.4 million and diluted earnings per share of $1.77 one year ago
    • Adjusted EBITDA of $7.1 million, a $0.3 million year-over-year improvement
    • Cash flows from operating activities of $2.1 million for the first nine months of 2024; free cash flow less distributions to non-controlling interest of $0.4 million, a $3.3 million improvement over the first nine months of 2023
    • $15.3 million in cash and $8.6 million of total debt as of September 30, 2024

    HOUSTON, Oct. 30, 2024 (GLOBE NEWSWIRE) — NCS Multistage Holdings, Inc. (Nasdaq: NCSM) (the “Company,” “NCS,” “we” or “us”), a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completions and field development strategies, today announced its results for the quarter ended September 30, 2024.

    Financial Review

    Total revenues were $44.0 million for the quarter ended September 30, 2024 compared to $38.3 million for the third quarter of 2023. Revenue growth was driven by increases in international services revenues, U.S. product sales, and Canada product sales and services. These gains were partially offset by lower U.S. services revenues and international product sales. The significant increase in international revenues was driven by Middle East tracer work and North Sea frac systems, while the increase in the United States reflects higher frac plug and perforating gun sales by our joint venture, Repeat Precision, LLC (“Repeat Precision”). Despite the increase in U.S. revenues, customer activity continues to be negatively impacted by lower natural gas prices. The increase in our Canadian revenue was due in part to higher fracturing systems activity in 2024, as the prior year was impacted more significantly by Canadian wildfires stemming from drought conditions.

    Compared to the second quarter of 2024, total revenues increased by 48%, with an increase in Canada of 139%, primarily due to seasonality associated with spring break-up in the second quarter. This increase was partially offset by a decline of 31% in international revenues, primarily associated with the timing of tracer service work in the Middle East, and a 6% decline in the United States.

    Gross profit was $17.8 million, with a gross margin of 41%, for the third quarter of 2024, compared to $15.2 million, with a gross margin of 40%, for the third quarter of 2023. Gross margin for 2024 improved due to an increase in higher-margin international work in both the Middle East and North Sea, an increase in frac plug and perforating gun sales in the United States, as well as the benefits realized from operational restructurings enacted in 2023. Adjusted gross profit, which we define as total revenues less total cost of sales, exclusive of depreciation and amortization (“DD&A”), was $18.5 million, or an adjusted gross margin of 42%, for the third quarter of 2024, compared to $15.7 million, or 41%, for the third quarter of 2023.

    Selling, general and administrative (“SG&A”) expenses totaled $14.1 million for the third quarter of 2024, an increase of $1.5 million compared to the same period in 2023. This increase in expense reflects a higher annual incentive bonus accrual year-over-year partially offset by the benefit of cost-saving measures implemented through our restructuring efforts in 2023.

    Other income was $1.5 million for the third quarter of 2024 compared to $2.0 million for the third quarter of 2023. This change in other income is primarily attributable to the prior year recovery of unpaid invoices through a litigation settlement and the reversal of a legal contingency fee in 2023 that was not repeated in 2024. This was partially offset in 2024 by increases in royalty income from licensees and the benefit associated with our technical services and assistance agreement with our local partner in Oman. 

    Net income was $4.1 million, or $1.60 per diluted share, for the quarter ended September 30, 2024 compared to net income of $4.4 million, or $1.77 per diluted share for the quarter ended September 30, 2023.

    Adjusted EBITDA was $7.1 million for the quarter ended September 30, 2024, an increase of $0.3 million compared to the same period a year ago. This improvement is primarily the result of an increase in higher-margin international projects partially offset by an increase in SG&A expenses due to higher annual incentive bonus accruals. Our resulting Adjusted EBITDA margin of 16% for the quarter ended September 30, 2024 compared to 18% for the same period a year ago. 

    Cash flow from operating activities for the nine months ended September 30, 2024 was $2.1 million, a $3.5 million improvement compared to the same period in 2023. For the nine months ended September 30, 2024, free cash flow, less distributions to non-controlling interest, provided cash of $0.4 million compared to a use of cash of $(3.0) million for the same period in 2023. The overall increase in free cash flow was largely attributed to our operating results, change in net working capital, and a reduction in net cash used in investing activities, partially offset by a distribution to our non-controlling interest. 

    Liquidity and Capital Expenditures

    As of September 30, 2024, NCS had $15.3 million in cash and $8.6 million in total debt, and a borrowing base under the undrawn asset-based revolving credit facility (“ABL Facility”) of $21.7 million. Our working capital, defined as current assets minus current liabilities, was $77.3 million and $71.2 million as of September 30, 2024 and December 31, 2023, respectively.

    Net working capital, calculated as working capital, less cash and excluding the current maturities of long-term debt, was $64.1 million and $56.3 million as of September 30, 2024 and December 31, 2023, respectively. The increase in our net working capital was primarily attributable to an increase in our accounts receivable, partially offset by an increase in accrued expenses.

    NCS incurred capital expenditures, net of proceeds from the sale of property and equipment, of $0.7 million and $1.5 million for the nine months ended September 30, 2024 and 2023, respectively.

    Review and Outlook 

    NCS’s Chief Executive Officer, Ryan Hummer commented, “NCS has continued to outperform expectations in a challenging market environment. This quarter marks the third consecutive quarter in which our total revenue has been at the high end or exceeded our expectations, and in which our Adjusted EBITDA exceeded the high end of our expectations.

    Our revenue for the first nine months of 2024 of $117.6 million is over $10 million, or approximately 10%, higher than the same period last year. Importantly, we are also demonstrating the operating leverage in our business, with a modest improvement in gross margin percentage paired with a reduction in SG&A expenses for these periods. Our resulting Adjusted EBITDA of $14.1 million for the first nine months of 2024 is approximately 50% higher than the same period last year, a demonstration of the attractive incremental margins our business can generate as we grow.

    This performance reflects the way our team has embraced and executed our core strategies to build upon our leading market positions, capitalize on international and offshore opportunities and to commercialize innovative solutions to complex customer challenges. One example of this is the 124% improvement in revenue derived outside North America for the first nine months of 2024 as compared to 2023, with international revenue comprising 10% of our total revenue in that period, as compared to 5% last year. Our multi-year efforts to grow our customer base in the North Sea and to enter certain markets in the Middle East are being rewarded.

    Our team at NCS and Repeat Precision has delivered year-over-year revenue growth of 15% in the U.S. through the first nine months of the year, an impressive performance in light of meaningful reductions in industry activity, whether measured by the rig count or unconventional completion counts.

    We are pairing this growth with improved free cash flow generation, with free cash flow after distributions to non-controlling interest for the first nine months of 2024 of $0.4 million, increasing by more than $3 million as compared to the same period in 2023. We maintain a net cash position of $6.7 million, and had total liquidity of over $37 million as of September 30, 2024, which includes our cash on hand and availability under our undrawn revolving credit facility.

    We expect that we will continue to deliver improved revenue performance in the fourth quarter of 2024 as compared to 2023 in each of the U.S., Canada and international markets. However, sequentially we expect a 5-15% reduction in revenue in each of these markets, reflecting the potential for a more significant reduction in year-end activity than in prior years for the U.S. and Canadian markets due to industry drilling and completion efficiencies, and more challenging winter operating conditions in selected international markets, including the North Sea. 

    We believe the value that we bring to our customers across our product and service portfolio, our continued product and service innovation, and our targeted efforts to penetrate international markets positions us to outperform the anticipated changes in industry drilling and completion activity. As demonstrated thus far in 2024, we believe that this revenue growth, paired with previously enacted and continued efforts to control our operating expenses, will enable higher year-over-year Adjusted EBITDA Margins. 

    These results are reflective of the talent, effort and dedication of the outstanding team at NCS and at Repeat Precision. By delivering on our core strategies, we are providing extraordinary outcomes to our customers, driving innovation in the industry and creating value for our shareholders.”

    EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Less Share-Based Compensation, Adjusted Net Income (Loss), Adjusted Earnings (Loss) per Diluted Share, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow, Free Cash Flow Less Distributions to Non-Controlling Interest and Net Working Capital are non-GAAP financial measures. For an explanation of these measures and a reconciliation, refer to “Non-GAAP Financial Measures” below.

    Conference Call

    The Company will host a conference call to discuss its third quarter 2024 results and updated guidance on Thursday, October 31, 2024 at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). The conference call will be available via a live audio webcast. Participants who wish to ask questions may register for the call here to receive the dial-in numbers and unique PIN. If you wish to join the conference call but do not plan to ask questions, you may join the listen-only webcast here. The live webcast can also be accessed by visiting the Investors section of the Company’s website at ir.ncsmultistage.com. It is recommended that participants join at least 10 minutes prior to the event start.

    The replay will be available in the Investors section of the Company’s website shortly after the conclusion of the call and will remain available for approximately seven days.

    About NCS Multistage Holdings, Inc.

    NCS Multistage Holdings, Inc. is a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completions and field development strategies. NCS provides products and services primarily to exploration and production companies for use in onshore and offshore wells, predominantly wells that have been drilled with horizontal laterals in both unconventional and conventional oil and natural gas formations. NCS’s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including the North Sea, the Middle East, Argentina and China. NCS’s common stock is traded on the Nasdaq Capital Market under the symbol “NCSM.” Additional information is available on the website, www.ncsmultistage.com.

    Forward Looking Statements

    This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods, or by the inclusion of forecasts or projections. Examples of forward-looking statements include, but are not limited to, statements we make regarding the outlook for our future business and financial performance. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause our actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions and the following: declines in the level of oil and natural gas exploration and production activity in Canada, the United States and internationally; oil and natural gas price fluctuations; significant competition for our products and services that results in pricing pressures, reduced sales, or reduced market share; inability to successfully implement our strategy of increasing sales of products and services into the U.S. and international markets; loss of significant customers; losses and liabilities from uninsured or underinsured business activities and litigation; our failure to identify and consummate potential acquisitions; the financial health of our customers including their ability to pay for products or services provided; our inability to integrate or realize the expected benefits from acquisitions; our inability to achieve suitable price increases to offset the impacts of cost inflation; loss of any of our key suppliers or significant disruptions negatively impacting our supply chain; risks in attracting and retaining qualified employees and key personnel; risks resulting from the operations of our joint venture arrangement; currency exchange rate fluctuations; impact of severe weather conditions; our inability to accurately predict customer demand, which may result in us holding excess or obsolete inventory; impairment in the carrying value of long-lived assets including goodwill; failure to comply with or changes to federal, state and local and non-U.S. laws and other regulations, including anti-corruption and environmental regulations, guidelines and regulations for the use of explosives; change in trade policy, including the impact of tariffs; our inability to successfully develop and implement new technologies, products and services that align with the needs of our customers, including addressing the shift to more non-traditional energy markets as part of the energy transition; our inability to protect and maintain critical intellectual property assets or losses and liabilities from adverse decisions in intellectual property disputes; loss of, or interruption to, our information and computer systems; system interruptions or failures, including complications with our enterprise resource planning system, cybersecurity breaches, identity theft or other disruptions that could compromise our information; our failure to establish and maintain effective internal control over financial reporting; restrictions on the availability of our customers to obtain water essential to the drilling and hydraulic fracturing processes; changes in legislation or regulation governing the oil and natural gas industry, including restrictions on emissions of greenhouse gases; our inability to meet regulatory requirements for use of certain chemicals by our tracer diagnostics business; the reduction in our ABL Facility borrowing base or our inability to comply with the covenants in our debt agreements; and our inability to obtain sufficient liquidity on reasonable terms, or at all and other factors discussed or referenced in our filings made from time to time with the Securities and Exchange Commission. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

    Contact

    Mike Morrison
    Chief Financial Officer and Treasurer
    (281) 453-2222
    IR@ncsmultistage.com 

    NCS MULTISTAGE HOLDINGS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
    (Unaudited)

        Three Months Ended     Nine Months Ended  
        September 30,     September 30,  
        2024     2023     2024     2023  
    Revenues                                
    Product sales   $ 31,675     $ 27,286     $ 82,455     $ 76,149  
    Services     12,331       10,993       35,099       31,075  
    Total revenues     44,006       38,279       117,554       107,224  
    Cost of sales                                
    Cost of product sales, exclusive of depreciation and amortization expense shown below     19,408       17,118       51,309       47,945  
    Cost of services, exclusive of depreciation and amortization expense shown below     6,066       5,449       18,171       16,564  
    Total cost of sales, exclusive of depreciation and amortization expense shown below     25,474       22,567       69,480       64,509  
    Selling, general and administrative expenses     14,139       12,669       42,789       43,297  
    Depreciation     1,188       1,001       3,395       2,892  
    Amortization     168       168       502       502  
    Income (loss) from operations     3,037       1,874       1,388       (3,976 )
    Other income (expense)                                
    Interest expense, net     (108 )     (27 )     (323 )     (447 )
    Provision for litigation, net of recoveries     —       (98 )     —       (42,498 )
    Other income, net     1,523       1,983       4,863       3,753  
    Foreign currency exchange gain (loss), net     217       (157 )     (788 )     (79 )
    Total other income (expense)     1,632       1,701       3,752       (39,271 )
    Income (loss) before income tax     4,669       3,575       5,140       (43,247 )
    Income tax (benefit) expense     (35 )     (537 )     722       (287 )
    Net income (loss)     4,704       4,112       4,418       (42,960 )
    Net income (loss) attributable to non-controlling interest     557       (296 )     1,296       (168 )
    Net income (loss) attributable to NCS Multistage Holdings, Inc.   $ 4,147     $ 4,408     $ 3,122     $ (42,792 )
    Earnings (loss) per common share                                
    Basic earnings (loss) per common share attributable to NCS Multistage Holdings, Inc.   $ 1.63     $ 1.78     $ 1.23     $ (17.33 )
    Diluted earnings (loss) per common share attributable to NCS Multistage Holdings, Inc.   $ 1.60     $ 1.77     $ 1.21     $ (17.33 )
    Weighted average common shares outstanding                                
    Basic     2,548       2,479       2,535       2,469  
    Diluted     2,588       2,489       2,571       2,469  

    NCS MULTISTAGE HOLDINGS, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS*
    (In thousands, except share data)
    (Unaudited)

        September 30,     December 31,  
        2024     2023  
    Assets                
    Current assets                
    Cash and cash equivalents   $ 15,330     $ 16,720  
    Accounts receivable—trade, net     36,652       23,981  
    Inventories, net     41,199       41,612  
    Prepaid expenses and other current assets     1,996       1,862  
    Other current receivables     4,276       4,042  
    Insurance receivable     —       15,000  
    Total current assets     99,453       103,217  
    Noncurrent assets                
    Property and equipment, net     22,656       23,336  
    Goodwill     15,222       15,222  
    Identifiable intangibles, net     3,905       4,407  
    Operating lease assets     3,644       4,847  
    Deposits and other assets     777       937  
    Deferred income taxes, net     186       66  
    Total noncurrent assets     46,390       48,815  
    Total assets   $ 145,843     $ 152,032  
    Liabilities and Stockholders’ Equity                
    Current liabilities                
    Accounts payable—trade   $ 7,512     $ 6,227  
    Accrued expenses     6,874       3,702  
    Income taxes payable     713       364  
    Operating lease liabilities     1,388       1,583  
    Accrual for legal contingencies     —       15,000  
    Current maturities of long-term debt     2,111       1,812  
    Other current liabilities     3,511       3,370  
    Total current liabilities     22,109       32,058  
    Noncurrent liabilities                
    Long-term debt, less current maturities     6,525       6,344  
    Operating lease liabilities, long-term     2,588       3,775  
    Other long-term liabilities     200       213  
    Deferred income taxes, net     311       249  
    Total noncurrent liabilities     9,624       10,581  
    Total liabilities     31,733       42,639  
    Commitments and contingencies                
    Stockholders’ equity                
    Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding at September 30, 2024 and December 31, 2023     —       —  
    Common stock, $0.01 par value, 11,250,000 shares authorized, 2,557,648 shares issued and 2,502,680 shares outstanding at September 30, 2024 and 2,482,796 shares issued and 2,443,744 shares outstanding at December 31, 2023     26       25  
    Additional paid-in capital     446,721       444,638  
    Accumulated other comprehensive loss     (86,300 )     (85,752 )
    Retained deficit     (262,495 )     (265,617 )
    Treasury stock, at cost, 54,968 shares at September 30, 2024 and 39,052 shares at December 31, 2023     (1,913 )     (1,676 )
    Total stockholders’ equity     96,039       91,618  
    Non-controlling interest     18,071       17,775  
    Total equity     114,110       109,393  
    Total liabilities and stockholders’ equity   $ 145,843     $ 152,032  

    _____________________
    * Preliminary

    NCS MULTISTAGE HOLDINGS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)

      Nine Months Ended  
      September 30,  
      2024   2023  
    Cash flows from operating activities            
    Net income (loss) $ 4,418   $ (42,960 )
    Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:            
    Depreciation and amortization   3,897     3,394  
    Amortization of deferred loan costs   155     153  
    Share-based compensation   3,403     4,198  
    Provision for inventory obsolescence   945     256  
    Deferred income tax expense   3     147  
    Gain on sale of property and equipment   (363 )   (423 )
    Provision for credit losses   44     112  
    Provision for litigation, net of recoveries   —     42,498  
    Net foreign currency unrealized loss (gain)   855     (127 )
    Proceeds from note receivable   61     338  
    Changes in operating assets and liabilities:            
    Accounts receivable—trade   (13,050 )   (2,847 )
    Inventories, net   (1,210 )   (6,356 )
    Prepaid expenses and other assets   821     544  
    Accounts payable—trade   1,124     2,894  
    Accrued expenses   3,224     (1,025 )
    Other liabilities   (2,433 )   (2,023 )
    Income taxes receivable/payable   188     (219 )
    Net cash provided by (used in) operating activities   2,082     (1,446 )
    Cash flows from investing activities            
    Purchases of property and equipment   (1,083 )   (1,704 )
    Purchase and development of software and technology   (70 )   (263 )
    Proceeds from sales of property and equipment   421     454  
    Net cash used in investing activities   (732 )   (1,513 )
    Cash flows from financing activities            
    Payments on finance leases   (1,442 )   (1,159 )
    Line of credit borrowings   3,062     11,702  
    Payments of line of credit borrowings   (3,062 )   (11,758 )
    Treasury shares withheld   (237 )   (265 )
    Distribution to noncontrolling interest   (1,000 )   —  
    Net cash used in financing activities   (2,679 )   (1,480 )
    Effect of exchange rate changes on cash and cash equivalents   (61 )   (397 )
    Net change in cash and cash equivalents   (1,390 )   (4,836 )
    Cash and cash equivalents beginning of period   16,720     16,234  
    Cash and cash equivalents end of period $ 15,330   $ 11,398  
    Noncash investing and financing activities            
    Assets obtained in exchange for new finance lease liabilities $ 2,145   $ 1,665  
    Assets obtained in exchange for new operating lease liabilities $ —   $ 1,791  

    NCS MULTISTAGE HOLDINGS, INC.
    REVENUES BY GEOGRAPHIC AREA
    (In thousands)
    (Unaudited)

        Three Months Ended     Nine Months Ended  
        September 30,     September 30,  
        2024     2023     2024     2023  
    United States                                
    Product sales   $ 9,489     $ 5,200     $ 25,806     $ 20,202  
    Services     1,645       2,812       7,130       8,511  
    Total United States     11,134       8,012       32,936       28,713  
    Canada                                
    Product sales     22,140       21,531       53,078       54,062  
    Services     6,725       6,613       19,514       19,074  
    Total Canada     28,865       28,144       72,592       73,136  
    Other Countries                                
    Product sales     46       555       3,571       1,885  
    Services     3,961       1,568       8,455       3,490  
    Total other countries     4,007       2,123       12,026       5,375  
    Total                                
    Product sales     31,675       27,286       82,455       76,149  
    Services     12,331       10,993       35,099       31,075  
    Total revenues   $ 44,006     $ 38,279     $ 117,554     $ 107,224  

    NCS MULTISTAGE HOLDINGS, INC.
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
    (In thousands, except per share data)
    (Unaudited)

    Non-GAAP Financial Measures 

    EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Less Share-Based Compensation, Adjusted Net Income (Loss), Adjusted Earnings (Loss) per Diluted Share, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow, Free Cash Flow Less Distributions to Non-Controlling Interest and Net Working Capital (our “non-GAAP financial measures”) are not defined under generally accepted accounting principles (“GAAP”), are not measures of net income (loss), income (loss) from operations, gross profit and gross margin (inclusive of DD&A), cash provided by (used in) operating activities, working capital or any other performance measure derived in accordance with GAAP, and are subject to important limitations. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies in our industry and are not measures of performance calculated in accordance with GAAP. Our non-GAAP financial measures have important limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our financial performance as reported under GAAP, and they should not be considered as alternatives to net income (loss), income (loss) from operations, gross profit, gross margin, cash provided by (used in) operating activities, working capital or any other performance measures derived in accordance with GAAP as measures of operating performance or as alternatives to cash flow from operating activities as measures of our liquidity.

    However, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Less Share-Based Compensation, Adjusted Net Income (Loss), Adjusted Earnings (Loss) per Diluted Share, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow, Free Cash Flow Less Distributions to Non-Controlling Interest and Net Working Capital are key metrics that management uses to assess the period-to-period performance of our core business operations or metrics that enable investors to assess our performance from period to period to evaluate our performance relative to other companies that are not subject to such factors, or who may provide similar non-GAAP measures in their public disclosures.

    The tables below set forth reconciliations of our non-GAAP financial measures to the most directly comparable measures of financial performance calculated under GAAP:

    NET WORKING CAPITAL*

    Net working capital is defined as total current assets, excluding cash and cash equivalents, minus total current liabilities, excluding current maturities of long-term debt. Net working capital excludes cash and cash equivalents and current maturities of long-term debt in order to evaluate the investments in working capital that we believe are required to support our business. We believe that net working capital is useful in analyzing the cash flow and working capital needs of the Company, including determining the efficiencies of our operations and our ability to readily convert assets into cash.

        September 30,     December 31,  
        2024     2023  
    Working capital   $ 77,344     $ 71,159  
    Cash and cash equivalents     (15,330 )     (16,720 )
    Current maturities of long term debt     2,111       1,812  
    Net working capital   $ 64,125     $ 56,251  

    _____________________
    *Preliminary

    NCS MULTISTAGE HOLDINGS, INC.
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
    (In thousands, except per share data)
    (Unaudited)

    ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN

    Adjusted gross profit is defined as total revenues minus cost of sales, exclusive of depreciation and amortization expense, which we present as a separate line item in our statement of operations. Adjusted gross margin represents adjusted gross profit as a percentage of total revenues.

        Three Months Ended     Nine Months Ended  
        September 30,     September 30,  
        2024     2023     2024     2023  
    Total revenues   $ 44,006     $ 38,279     $ 117,554     $ 107,224  
    Total cost of sales, exclusive of depreciation and amortization expense     25,474       22,567       69,480       64,509  
    Total depreciation and amortization associated with cost of sales     699       558       1,968       1,601  
    Gross Profit   $ 17,833     $ 15,154     $ 46,106     $ 41,114  
    Gross Margin     41 %     40 %     39 %     38 %
    Exclude total depreciation and amortization associated with cost of sales     (699 )     (558 )     (1,968 )     (1,601 )
    Adjusted Gross Profit   $ 18,532     $ 15,712     $ 48,074     $ 42,715  
    Adjusted Gross Margin     42 %     41 %     41 %     40 %

    ADJUSTED NET INCOME (LOSS) AND ADJUSTED EARNINGS (LOSS) PER DILUTED SHARE

    Adjusted net income (loss) is defined as net income (loss) attributable to NCS Multistage Holdings, Inc. adjusted to exclude certain items which we believe are not reflective of ongoing performance. Adjusted income (loss) per diluted share is defined as adjusted net income (loss) divided by our diluted weighted average common shares outstanding during the relevant period.

        Three Months Ended     Nine Months Ended  
        September 30, 2024     September 30, 2023     September 30, 2024     September 30, 2023  
        Effect on
    Net
    Income    		     Impact
    on Diluted
    Earnings
    Per Share    		     Effect on
    Net
    Income    		     Impact on
    Diluted
    Earnings
    Per Share    		     Effect on
    Net
    Income    		     Impact on
    Diluted
    Earnings
    Per Share    		     Effect on
    Net (Loss)
    Income    		     Impact on
    Diluted
    (Loss)
    Earnings
    Per Share    		  
    Net income (loss) attributable to NCS Multistage Holdings, Inc.   $ 4,147     $ 1.60     $ 4,408     $ 1.77     $ 3,122     $ 1.21     $ (42,792 )   $ (17.33 )
    Adjustments                                                                
    Provision for litigation, net of recoveries (a)     —       —       98       0.04       —       —       42,498       17.21  
    Foreign currency exchange (gain) loss (b)     (262 )     (0.10 )     237       0.10       679       0.26       132       0.06  
    Income tax impact from adjustments (c)     2       —       1       —       (90 )     (0.03 )     303       0.12  
    Adjusted net income attributable to NCS Multistage Holdings, Inc.   $ 3,887     $ 1.50     $ 4,744     $ 1.91     $ 3,711     $ 1.44     $ 141     $ 0.06  

    __________________

    (a) Represents litigation provision primarily associated with a legal matter in Texas for the nine months ended September 30, 2023. In December 2023, we settled the matter where the insurance carrier agreed to pay the mutually-agreed settlement amounts to the plaintiff in January 2024, resulting in no cash payments by NCS.
    (b) Represents realized and unrealized foreign currency exchange gains and losses attributable to NCS Multistage Holdings, Inc. primarily due to movement in the foreign currency exchange rates during the applicable periods.
    (c) Represents income tax impacts based on applicable effective tax rates.

    NCS MULTISTAGE HOLDINGS, INC.
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
    (In thousands)
    (Unaudited)

    EBITDA, ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN, AND ADJUSTED EBITDA LESS SHARE-BASED COMPENSATION

    EBITDA is defined as net income (loss) before interest expense, net, income tax expense and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to exclude certain items which we believe are not reflective of ongoing operating performance or which, in the case of share-based compensation, is non-cash in nature. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of total revenues. Adjusted EBITDA Less Share-Based Compensation is defined as Adjusted EBITDA minus share-based compensation expense. We believe that Adjusted EBITDA is an important measure that excludes costs that management believes do not reflect our ongoing operating performance, legal proceedings for intellectual property as further described below, and certain costs associated with our capital structure. We believe that Adjusted EBITDA Less Share-Based Compensation presents our financial performance in a manner that is comparable to the presentation provided by many of our peers.

    We periodically incur legal costs associated with the assertion of, or defense of, intellectual property, which we exclude from our definition of Adjusted EBITDA and Adjusted EBITDA Less Share-Based Compensation, unless we believe that settlement will occur prior to any material legal spend (included in the table below as “Professional Fees”). Although these costs may recur between periods, depending on legal matters then outstanding or in process, we believe the timing of when these costs are incurred does not typically match the settlement or recoveries associated with such matters, and therefore, can distort our operating results. Similarly, we exclude from Adjusted EBITDA and Adjusted EBITDA Less Share-Based Compensation the one-time settlement or recovery payment associated with these excluded legal matters when realized but would not exclude any go forward royalties or payments, if applicable. We expect to continue to incur these legal costs for current matters under appeal and for any future cases that may go to trial, provided that the amount will vary by period. 

        Three Months Ended     Nine Months Ended  
        September 30,     September 30,  
        2024     2023     2024     2023  
    Net income (loss)   $ 4,704     $ 4,112     $ 4,418     $ (42,960 )
    Income tax (benefit) expense     (35 )     (537 )     722       (287 )
    Interest expense, net     108       27       323       447  
    Depreciation     1,188       1,001       3,395       2,892  
    Amortization     168       168       502       502  
    EBITDA     6,133       4,771       9,360       (39,406 )
    Provision for litigation, net of recoveries (a)     —       98       —       42,498  
    Share-based compensation (b)     651       1,328       2,084       3,285  
    Professional fees (c)     333       (375 )     1,263       1,286  
    Foreign currency exchange (gain) loss (d)     (217 )     157       788       79  
    Severance and other termination benefits (e)     —       671       —       980  
    Other (f)     175       145       573       698  
    Adjusted EBITDA   $ 7,075     $ 6,795     $ 14,068     $ 9,420  
    Adjusted EBITDA Margin     16 %     18 %     12 %     9 %
    Adjusted EBITDA Less Share-Based Compensation   $ 6,424     $ 5,467     $ 11,984     $ 6,135  

    ___________________

    (a) Represents litigation provision primarily associated with a legal matter in Texas. See footnote (a) in the “Adjusted Net Income (Loss) and Adjusted Earnings (Loss) per Diluted Share” table above for more information.
    (b) Represents non-cash compensation charges related to share-based compensation granted to our officers, employees and directors.
    (c) Represents non-capitalizable costs of professional services primarily incurred or reversed in connection with our legal proceedings associated with the assertion of, or defense of, intellectual property as further described above as well as the cost incurred for the evaluation of potential strategic transactions. 
    (d) Represents realized and unrealized foreign currency exchange gains and losses primarily due to movement in the foreign currency exchange rates during the applicable periods.  
    (e) Represents certain expenses associated with consolidations of our tracer diagnostics business operations and Repeat Precision’s manufacturing operations in Mexico.
    (f) Represents the impact of a research and development subsidy that is included in income tax expense in accordance with GAAP along with other charges and credits.

    NCS MULTISTAGE HOLDINGS, INC.
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
    (In thousands)
    (Unaudited)

    FREE CASH FLOW AND FREE CASH FLOW LESS DISTRIBUTIONS TO NON-CONTROLLING INTEREST

    Free cash flow is defined as net cash provided by (used in) operating activities less purchases of property and equipment (inclusive of the purchase and development of software and technology) plus proceeds from sales of property and equipment, as presented in our consolidated statement of cash flows. We define free cash flow less distributions to non-controlling interest as free cash flow less amounts reported in the financing activities section of the statement of cash flows as distributions to non-controlling interest. We believe free cash flow is useful because it provides information to investors regarding the cash that was available in the period that was in excess of our needs to fund our capital expenditures and other investment needs. We believe that free cash flow less distributions to non-controlling interest is useful because it provides information to investors regarding the cash that was available in the period that was in excess of our needs to fund our capital expenditures, other investment needs, and cash distributions to our joint venture partner.

        Nine Months Ended  
        September 30,  
        2024     2023  
    Net cash provided by (used in) operating activities   $ 2,082     $ (1,446 )
    Purchases of property and equipment     (1,083 )     (1,704 )
    Purchase and development of software and technology     (70 )     (263 )
    Proceeds from sales of property and equipment     421       454  
    Free cash flow   $ 1,350     $ (2,959 )
    Distributions to non-controlling interest     (1,000 )     —  
    Free cash flow less distributions to non-controlling interest   $ 350     $ (2,959 )

    The MIL Network –

  • MIL-OSI USA: Capito Accepts Inaugural West Virginia Women in Energy “Woman of the Year” Award

    US Senate News:

    Source: United States Senator for West Virginia Shelley Moore Capito
    CHARLESTON, W.Va. – Today, U.S. Senator Shelley Moore Capito (R-W.Va.), Ranking Member of the Senate Environment and Public Works (EPW) Committee, received the first annual West Virginia Women in Energy “Woman of the Year” award and provided acceptance remarks at the 2024 Governor’s Energy Summit. The award recognizes Senator Capito’s accomplishments and contributions across the energy sector and her dedication to women empowerment and leadership.
    “I’m honored to receive this award, and express my most heartfelt thankfulness to the West Virginia Office of Energy for recognizing me and my contributions to this vital industry. Energy is something that is synonymous with the very name of our state. For generations, the resources our state is blessed with and our diligent, tireless workforce have kept lights on and our country on the move. I have made it a central aspect of my career to support that tradition and find new and innovative ways to keep American energy generation right here in West Virginia. We must continue to generate the baseload power that our nation relies on, and you can be certain that I will always be an advocate for expanding that capacity in our state and supporting the men and women who make that possible,” Senator Capito said.
    Prior to receiving the award, Senator Capito participated in the summit’s “Women in Energy Breakfast” where she spoke to attendees about female empowerment and encouraged the women of the summit to support the next generation of West Virginia female leaders in the energy field.
    BACKGROUND:
    Throughout her time in Congress, Senator Capito has been a staunch advocate and defender of American energy generation in West Virginia. Her leadership has helped advance efforts and important legislation aimed at enhancing energy infrastructure and providing reliable energy sources to West Virginians and Americans.
    Some of Senator Capito’s energy accomplishments include:
    Championing and serving as a bill manager of the Infrastructure Investment and Jobs Act (IIJA), which funded the hydrogen hubs, priority West Virginia infrastructure projects, and other critical national energy projects. Senator Capito is also a founding member of the West Virginia Hydrogen Hub Coalition that led to the creation of the Appalachian Regional Clean Hydrogen Hub (ARCH2).
    Leading efforts to support the completion of the Mountain Valley Pipeline, and authoring language included in the Fiscal Responsibility Act that finalized the pipeline.
    Championing 45Q Carbon Capture Utilization and Storage (CCUS) Tax Credits, as well as serving an original co-sponsor of the USE It Act to reduce regulatory barriers to deployment of CCUS technology.
    Consistently supporting investments in new markets for coal, including carbon manufacturing and extracting rare earth elements essential to America’s high tech and defense sectors.
    Leading Congressional efforts to stop the Environmental Protection Agency’s (EPA) attempt to shut down coal-fired power plants through the Obama Clean Power Plan and authored successful amicus brief, co-signed with 90 members of Congress, to the Supreme Court in West Virginia v. EPA.
    Additionally, as West Virginia’s first female United States Senator for West Virginia, Senator Capito has made it a point to inspire the next generation of female leaders. In an effort to do this, she launched her West Virginia Girls Rise Up program in 2015. The purpose of the initiative is to empower young women through education, physical fitness, and self-confidence. Earlier this month, Senator Capito completed her 34th event since the program’s launch. Learn more about Senator Capito’s West Virginia Girls Rise Up program here.
    Photos from today’s event are included below:

    U.S. Senator Shelley Moore Capito (R-W.Va.) accepts the first annual West Virginia Women in Energy “Woman of the Year” award at the 2024 Governor’s Energy Summit in Charleston, W.Va. on Wednesday, October 30, 2024.

    U.S. Senator Shelley Moore Capito (R-W.Va.) participates in the Women in Energy Breakfast at the 2024 Governor’s Energy Summit in Charleston, W.Va. on Wednesday, October 30, 2024.

    MIL OSI USA News –

  • MIL-OSI Global: ‘A Different Man’ examines tensions between personal identity and societal expectations

    Source: The Conversation – Canada – By Billie Anderson, Ph.D. Candidate, Media Studies, Western University

    This story contains spoilers about ‘A Different Man.’

    A Different Man, a new film by Aaron Schimberg, offers a complex and nuanced portrayal of disability, one that both disabled and non-disabled audiences can learn from.

    The film premiered at notable festivals and is now playing in select theatres.

    In an era where disability is receiving long-overdue attention in cinema and films are under greater scrutiny to authentically represent disability, A Different Man pushes the conversation. It does so by emphasizing disability is not merely a challenge to overcome — but an integral part of the human experience.

    It’s crucial for audiences to seek out this film, as its limited release means that many may miss out on Schimberg’s provocative exploration of the tensions between identity, performance and societal expectations.



    Read more:
    Despite its Oscar win, CODA is still a film that depicts deafness as a burden

    Perceptions of disability

    The story centres on Edward (played by Sebastian Stan), a man with neurofibromatosis — a condition that causes tumours to grow on nerves.

    After living for a long time with the condition, Edward seeks out an experimental drug meant to “fix” his appearance. The drug is successful and overnight, Edward transforms from disfigured to conventionally attractive.

    The narrative hinges on Edward’s struggle with self-esteem issues that stem from societal perceptions of his disability. However, the change in his outward appearance only deepens his internal conflict: although Edward physically transforms, his struggles with self-perception and societal rejection persist.

    Trailer for ‘A Different Man.’

    This highlights a critical point made by disability studies scholars, including Rosemarie Garland-Thomson, who argue that our culture pressures disabled individuals to conform to non-disabled norms. Norms about how to look, sure, but also norms about how to behave, communicate and even think.

    Even when the visible markers of disability are removed, the underlying societal pressures and biases remain, illustrating that the true challenge lies not in the body itself, but in the societal structures that dictate what is considered an acceptable life.

    Embracing one’s identity

    This message, however, is turned on its head when audiences meet Oswald, played by Adam Pearson.

    Oswald, who has the same disability that Edward was just cured of, embodies a different relationship with his appearance; he is confident and self-assured, fully embracing his identity without the desire to conform to societal expectations.

    Oswald’s confidence is evident in how he navigates the world unapologetically, refusing to hide or downplay his appearance, a stark contrast to Edward’s desire for transformation. Pearson plays Oswald with a larger-than-life charisma, reminiscent of an Austin Powers type — loud, brash and fully aware of his own charm.

    This boldness not only serves as comic relief but also positions Oswald as a character who owns every room he walks into, subverting what disability studies scholars David T. Mitchell and Sharon L. Snyder argue are expectations of disabled people as passive or self-conscious figures.

    By embracing this energetic, self-assured persona, Oswald disrupts the traditional narrative that disabled people must seek a “cure” or hide their differences to be accepted or achieve happiness.

    His character challenges audiences to rethink the value society places on external appearance, demonstrating that self-acceptance can be far more powerful than fitting into conventional standards of beauty or normalcy.

    Through Oswald’s defiant approach, A Different Man invites viewers to question whether the real issue lies in disability or in society’s limited perceptions of what it means to live fully. Perhaps more than that, for disabled viewers, Oswald’s character offers a refreshing alternative — a model of self-acceptance that defies the pressure to overcome, and instead embrace, radical difference.

    Appearance and conformity

    This contrast raises important questions about the value society places on appearance and conformity. Through Oswald, the film critiques the prevailing belief that a “normal” life — a non-disabled life — is synonymous with happiness or fulfilment.

    Schimberg pushes back against reductive portrayals of disability that have long been seen in the film industry that either elicit pity or offer a misguided sense of inspiration. A Different Man offers a more nuanced and honest representation, capturing the complexity that disability can be: simultaneously challenging and liberating, visible yet invisible, empowering yet stigmatizing.

    With Edward and Oswald as richly developed characters, each embodies distinct relationships with their disabilities — neither character “incorrect” in their interpretation of their lived experience. These contradicting portrayals illustrate it is possible to craft authentic narratives that reflect the realities of disabled life, while also challenging our perception of disability, and highlighting the real struggles that disabled people overcome.

    Questions of identity

    One of the most striking aspects of A Different Man is how it handles identity. After Edward’s transformation, he adopts the name “Guy” and begins living a double life, even wearing a replica of his old face as a mask for a theatre role.

    This surreal detail critiques the performance of disability in the film industry — a theme Schimberg also explored in his 2018 film, Chained for Life.

    Disabled actors are often cast because of their differences, but they are still expected to perform that difference in ways that conform to able-bodied expectations.

    Authenticity in disability representation

    In A Different Man, the relationship between how disabled individuals are perceived by others and their own lived experiences raises crucial questions about authenticity in disability representation.

    Can a non-disabled actor like Sebastian Stan authentically portray a disabled character? Or does it reinforce the objectification of disabled bodies? Schimberg invites the audience to grapple with these questions.



    Read more:
    Mad Max: Fury Road was a pioneering portrayal of disability. Furiosa is a letdown

    Such questions and a shift toward complexity is critical as audiences and filmmakers increasingly recognize the need for inclusive storytelling that goes beyond race and gender to encompass disability.

    As disability studies scholars Mitchell and Snyder argue, narratives that embrace multifaceted identities can disrupt the status quo, offering new insights into how society views disabled individuals outside of the cinema.

    A Different Man serves as a roadmap for these richer portrayals, inviting viewers to engage with the complexities of identity, societal expectations and the human body. The film signifies a reimagining of cinema’s potential to elevate marginalized voices and foster a deeper understanding of diverse experiences that shape people’s stories about disability.

    Billie Anderson does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. ‘A Different Man’ examines tensions between personal identity and societal expectations – https://theconversation.com/a-different-man-examines-tensions-between-personal-identity-and-societal-expectations-241100

    MIL OSI – Global Reports –

  • MIL-OSI: SEACOR Marine Announces Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, Oct. 30, 2024 (GLOBE NEWSWIRE) — SEACOR Marine Holdings Inc. (NYSE: SMHI) (the “Company” or “SEACOR Marine”), a leading provider of marine and support transportation services to offshore energy facilities worldwide, today announced results for its third quarter ended September 30, 2024.

    SEACOR Marine’s consolidated operating revenues for the third quarter of 2024 were $68.9 million, operating loss was $6.5 million, and direct vessel profit (“DVP”)(1) was $16.0 million. This compares to consolidated operating revenues of $76.9 million, operating income of $9.8 million, and DVP of $36.8 million in the third quarter of 2023, and consolidated operating revenues of $69.9 million, operating loss of $3.9 million, and DVP of $20.3 million in the second quarter of 2024.

    Notable third quarter items include:

    • 10.4% decrease in revenues from the third quarter of 2023 and a 1.4% decrease from the second quarter of 2024.
    • Average day rates of $18,879, a 4.6% increase from the third quarter of 2023, and a 1.4% decrease from the second quarter of 2024.
    • 67% utilization, a decrease from 73% in the third quarter of 2023 and a decrease from 69% in the second quarter of 2024.
    • DVP margin of 23.2%, a decrease from 47.8% in the third quarter of 2023 and a decrease from 29.1% in the second quarter of 2024, due in part to $8.3 million of drydocking and major repairs during the quarter compared to $2.0 million in the third quarter of 2023 and $8.5 million in the second quarter of 2024, all of which are expensed as incurred.

    For the third quarter of 2024, net loss was $16.3 million ($0.59 loss per basic and diluted share). This compares to a net loss for the third quarter of 2023 of $0.9 million ($0.03 loss per basic and diluted share). Sequentially, the third quarter 2024 results compare to a net loss of $12.5 million ($0.45 earnings per basic and diluted share) in the second quarter of 2024.

    Chief Executive Officer John Gellert commented:

    “The third quarter results reflect overall lower utilization driven by our heavy 2024 maintenance schedule and softer than expected demand during the quarter, particularly in the U.S. Gulf of Mexico and the North Sea markets. While we made progress in remarketing and repositioning our available tonnage, these efforts reduced the utilization of these vessels during the quarter. Our utilization figures were also affected by continuing work on drydockings and major repairs, some of which experienced additional delays as a result of ongoing shipyard and vendor capacity issues. We continue to see challenges as shipyards and other vendors expand their support teams, expertise and production capacity to respond to demand growth. In addition to lower utilization, these results also reflect higher operating expenses, driven mostly by 9.9% higher crewing costs and 30.0% higher maintenance costs relative to the year to date third quarter of 2023, both of which we attribute primarily to increased industry demand and vendor capacity constraints. Nevertheless, our average day rates held steady and we continued to add charters that will contribute improvements to our utilization, with contracted revenue backlog, including options, in excess of $360.0 million.

    In the near term, one of our premium liftboats located in the U.S. Gulf of Mexico will return to work in early November after being in the shipyard for maintenance since April. We are also seeing a stronger volume of inquiries for decommissioning work for our liftboats in the 2025-2026 timeframe, which is coming from both the U.S. Gulf of Mexico as well as international markets. We own one of the youngest and most fuel efficient and versatile fleets of offshore vessels in the world. Although demand for our services remains highly correlated to the underlying commodity prices, which have been very volatile during 2024, we are well positioned to capture attractive opportunities servicing offshore energy.”
    ___________________

    (1)   Direct vessel profit (defined as operating revenues less operating costs and expenses, “DVP”) is the Company’s measure of segment profitability. DVP is a critical financial measure used by the Company to analyze and compare the operating performance of its regions, without regard to financing decisions (depreciation and interest expense for owned vessels vs. lease expense for lease vessels). DVP is also useful when comparing the Company’s global fleet performance against those of our competitors who may have differing fleet financing structures. DVP has material limitations as an analytical tool in that it does not reflect all of the costs associated with the ownership and operation of our fleet, and it should not be considered in isolation or used as a substitute for our results as reported under GAAP. See page 4 for reconciliation of DVP to GAAP Operating Income (Loss), its most comparable GAAP measure.

    SEACOR Marine provides global marine and support transportation services to offshore energy facilities worldwide. SEACOR Marine operates and manages a diverse fleet of offshore support vessels that deliver cargo and personnel to offshore installations, including offshore wind farms; assist offshore operations for production and storage facilities; provide construction, well work-over, offshore wind farm installation and decommissioning support; carry and launch equipment used underwater in drilling and well installation, maintenance, inspection and repair; and handle anchors and mooring equipment for offshore rigs and platforms. Additionally, SEACOR Marine’s vessels provide emergency response services and accommodations for technicians and specialists.

    Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company releases from time to time to the public constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,” “plan,” “target,” “forecast” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements concern management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by the management of the Company. These statements are not guarantees of future performance and actual events or results may differ significantly from these statements. Actual events or results are subject to significant known and unknown risks, uncertainties and other important factors, many of which are beyond the Company’s control and are described in the Company’s filings with the SEC. It should be understood that it is not possible to predict or identify all such factors. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. It is advisable, however, to consult any further disclosures the Company makes on related subjects in its filings with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any). These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

    Please visit SEACOR Marine’s website at www.seacormarine.com for additional information.
    For all other requests, contact InvestorRelations@seacormarine.com

    SEACOR MARINE HOLDINGS INC.
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
    (in thousands, except share data)

    		  
        Three Months Ended September 30,     Nine months ended September 30,  
        2024     2023     2024     2023  
    Operating Revenues   $ 68,916     $ 76,900     $ 201,553     $ 206,428  
    Costs and Expenses:                        
    Operating     52,907       40,142       150,526       116,381  
    Administrative and general     11,019       12,300       33,825       37,636  
    Lease expense     364       651       1,331       2,069  
    Depreciation and amortization     12,928       13,462       38,749       40,799  
          77,218       66,555       224,431       196,885  
    Gains (Losses) on Asset Dispositions and Impairments, Net     1,821       (512 )     1,857       3,352  
    Operating (Loss) Income     (6,481 )     9,833       (21,021 )     12,895  
    Other Income (Expense):                        
    Interest income     358       340       1,396       1,222  
    Interest expense     (10,127 )     (9,536 )     (30,626 )     (27,060 )
    Loss on debt extinguishment     —       (2,004 )     —       (2,004 )
    Derivative gains (losses), net     67       —       (372 )     —  
    Foreign currency (losses) gains, net     (1,717 )     571       (2,357 )     (857 )
    Other, net     29       —       (66 )     —  
          (11,390 )     (10,629 )     (32,025 )     (28,699 )
    Loss Before Income Tax (Benefit) Expense and Equity in Earnings of 50% or Less Owned Companies     (17,871 )     (796 )     (53,046 )     (15,804 )
    Income Tax (Benefit) Expense     (513 )     2,360       (270 )     2,421  
    Loss Before Equity in Earnings of 50% or Less Owned Companies     (17,358 )     (3,156 )     (52,776 )     (18,225 )
    Equity in Earnings of 50% or Less Owned Companies     1,012       2,273       878       3,182  
    Net Loss   $ (16,346 )   $ (883 )   $ (51,898 )   $ (15,043 )
                             
    Net Loss Per Share:                        
    Basic   $ (0.59 )   $ (0.03 )   $ (1.88 )   $ (0.56 )
    Diluted   $ (0.59 )   $ (0.03 )   $ (1.88 )   $ (0.56 )
    Weighted Average Common Stock and Warrants Outstanding:                        
    Basic     27,772,733       27,181,754       27,615,699       27,048,656  
    Diluted     27,772,733       27,181,754       27,615,699       27,048,656  
    SEACOR MARINE HOLDINGS INC.
    UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
     (in thousands, except statistics and per share data)
              Three Months Ended
        Sep. 30,
    2024    		     Jun. 30,
    2024    		     Mar. 31,
    2024    		     Dec. 31,
    2023    		     Sep. 30,
    2023    		    
    Time Charter Statistics:                                
    Average Rates Per Day   $ 18,879     $ 19,141     $ 19,042     $ 18,031     $ 18,046    
    Fleet Utilization     67 %     69 %     62 %     71 %     73 %  
    Fleet Available Days(2)     5,026       4,994       5,005       5,170       5,182    
    Operating Revenues:                                
    Time charter   $ 63,313     $ 65,649     $ 59,263     $ 66,498     $ 68,668    
    Bareboat charter     372       364       364       368       368    
    Other marine services     5,231       3,854       3,143       6,217       7,864    
          68,916       69,867       62,770       73,083       76,900    
    Costs and Expenses:                                
    Operating:                                
    Personnel     21,940       21,566       21,670       22,080       19,943    
    Repairs and maintenance     9,945       10,244       9,763       7,604       7,418    
    Drydocking     6,068       6,210       6,706       2,561       1,768    
    Insurance and loss reserves     2,584       3,099       1,738       2,944       1,833    
    Fuel, lubes and supplies     6,574       3,966       4,523       3,683       5,047    
    Other     5,796       4,435       3,699       4,397       4,133    
          52,907       49,520       48,099       43,269       40,142    
    Direct Vessel Profit(1)     16,009       20,347       14,671       29,814       36,758    
    Other Costs and Expenses:                                
    Lease expense     364       486       481       679       651    
    Administrative and general     11,019       10,889       11,917       11,547       12,300    
    Depreciation and amortization     12,928       12,939       12,882       13,022       13,462    
          24,311       24,314       25,280       25,248       26,413    
    Gains (Losses) on Asset Dispositions and Impairments, Net     1,821       37       (1 )     18,057       (512 )  
    Operating (Loss) Income     (6,481 )     (3,930 )     (10,610 )     22,623       9,833    
    Other Income (Expense):                                
    Interest income     358       445       593       222       340    
    Interest expense     (10,127 )     (10,190 )     (10,309 )     (10,444 )     (9,536 )  
    Derivative gains (losses), net     67       104       (543 )     608       —    
    Loss on debt extinguishment     —       —       —       —       (2,004 )  
    Foreign currency (losses) gains, net     (1,717 )     (560 )     (80 )     (1,276 )     571    
    Other, net     29       —       (95 )     —       —    
          (11,390 )     (10,201 )     (10,434 )     (10,890 )     (10,629 )  
    (Loss) Income Before Income Tax (Benefit) Expense and Equity in Earnings (Losses) of 50% or Less Owned Companies     (17,871 )     (14,131 )     (21,044 )     11,733       (796 )  
    Income Tax (Benefit) Expense     (513 )     (682 )     925       6,378       2,360    
    (Loss) Income Before Equity in Earnings (Losses) of 50% or Less Owned Companies     (17,358 )     (13,449 )     (21,969 )     5,355       (3,156 )  
    Equity in Earnings (Losses) of 50% or Less Owned Companies     1,012       966       (1,100 )     374       2,273    
    Net (Loss) Income   $ (16,346 )   $ (12,483 )   $ (23,069 )   $ 5,729     $ (883 )  
                                     
    Net (Loss) Earnings Per Share:                                
    Basic   $ (0.59 )   $ (0.45 )   $ (0.84 )   $ 0.21     $ (0.03 )  
    Diluted   $ (0.59 )   $ (0.45 )   $ (0.84 )   $ 0.20     $ (0.03 )  
    Weighted Average Common Stock and Warrants Outstanding:                                
    Basic     27,773       27,729       27,344       27,182       27,182    
    Diluted     27,773       27,729       27,344       28,401       27,182    
    Common Shares and Warrants Outstanding at Period End     28,950       28,941       28,906       28,489       28,481    

     ____________________
    (1) See full description of footnote above.
    (2) Includes available days for a bareboat charter for one PSV, which has been excluded from days worked and average day rates.

    SEACOR MARINE HOLDINGS INC.
    UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY SEGMENT
    (in thousands, except statistics)
        Three Months Ended
        Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023     Sep. 30, 2023    
    United States, primarily Gulf of Mexico                                
    Time Charter Statistics:                                
    Average rates per day worked   $ 17,188     $ 22,356     $ 28,156     $ 22,584     $ 23,663    
    Fleet utilization     42 %     37 %     27 %     50 %     57 %  
    Fleet available days     920       921       927       1,152       1,196    
    Out-of-service days for repairs, maintenance and drydockings     116       179       137       61       151    
    Out-of-service days for cold-stacked status(2)     175       127       182       254       206    
    Operating Revenues:                                
    Time charter   $ 6,593     $ 7,697     $ 6,957     $ 12,929     $ 16,236    
    Other marine services     1,188       480       1,026       5,346       5,478    
          7,781       8,177       7,983       18,275       21,714    
    Direct Costs and Expenses:                                
    Operating:                                
    Personnel     6,297       6,284       5,781       6,906       6,712    
    Repairs and maintenance     1,655       1,879       1,404       819       1,560    
    Drydocking     2,615       2,570       1,968       303       462    
    Insurance and loss reserves     799       943       396       1,297       332    
    Fuel, lubes and supplies     964       866       667       1,032       958    
    Other     225       226       (171 )     475       375    
          12,555       12,768       10,045       10,832       10,399    
    Direct Vessel (Loss) Profit(1)   $ (4,774 )   $ (4,591 )   $ (2,062 )   $ 7,443     $ 11,315    
    Other Costs and Expenses:                                
    Lease expense   $ 140     $ 141     $ 138     $ 141     $ 116    
    Depreciation and amortization     3,194       3,194       2,750       3,479       3,810    
                                     
    Africa and Europe                                
    Time Charter Statistics:                                
    Average rates per day worked   $ 18,875     $ 18,580     $ 15,197     $ 15,233     $ 15,388    
    Fleet utilization     77 %     74 %     76 %     82 %     84 %  
    Fleet available days     1,990       1,969       1,775       1,748       1,748    
    Out-of-service days for repairs, maintenance and drydockings     203       203       238       124       111    
    Out-of-service days for cold-stacked status     58       91       91       92       54    
    Operating Revenues:                                
    Time charter   $ 28,809     $ 27,047     $ 20,555     $ 21,791     $ 22,528    
    Other marine services     3,048       1,028       169       189       1,943    
          31,857       28,075       20,724       21,980       24,471    
    Direct Costs and Expenses:                                
    Operating:                                
    Personnel     6,083       4,969       5,181       6,007       5,089    
    Repairs and maintenance     3,455       3,161       3,209       2,807       2,214    
    Drydocking     681       1,226       2,032       1,298       320    
    Insurance and loss reserves     599       819       334       416       573    
    Fuel, lubes and supplies     2,514       1,170       1,287       623       2,573    
    Other     3,975       2,801       2,199       2,267       2,448    
          17,307       14,146       14,242       13,418       13,217    
    Direct Vessel Profit(1)   $ 14,550     $ 13,929     $ 6,482     $ 8,562     $ 11,254    
    Other Costs and Expenses:                                
    Lease expense   $ 75     $ 172     $ 178     $ 289     $ 372    
    Depreciation and amortization     4,540       4,565       3,915       3,747       3,821    

      ____________________
    (1) See full description of footnote above.
    (2) Includes one liftboat and one FSV cold-stacked in this region as of September 30, 2024.

    SEACOR MARINE HOLDINGS INC.
     UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY SEGMENT (continued)
    (in thousands, except statistics)

    		  
        Three Months Ended  
        Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023     Sep. 30, 2023  
    Middle East and Asia                              
    Time Charter Statistics:                              
    Average rates per day worked   $ 17,825     $ 17,083     $ 16,934     $ 17,590     $ 16,313  
    Fleet utilization     71 %     82 %     71 %     69 %     67 %
    Fleet available days     1,288       1,296       1,365       1,461       1,472  
    Out-of-service days for repairs, maintenance and drydockings     229       168       224       360       297  
    Operating Revenues:                              
    Time charter   $ 16,411     $ 18,073     $ 16,477     $ 17,729     $ 16,087  
    Other marine services     375       619       350       539       267  
          16,786       18,692       16,827       18,268       16,354  
    Direct Costs and Expenses:                              
    Operating:                              
    Personnel     5,769       6,930       5,963       5,522       5,157  
    Repairs and maintenance     3,318       3,443       2,712       2,590       2,623  
    Drydocking     832       707       1,483       624       1,056  
    Insurance and loss reserves     927       798       618       1,022       711  
    Fuel, lubes and supplies     1,043       1,103       1,198       1,242       743  
    Other     1,131       989       1,000       1,133       943  
          13,020       13,970       12,974       12,133       11,233  
    Direct Vessel Profit(1)   $ 3,766     $ 4,722     $ 3,853     $ 6,135     $ 5,121  
    Other Costs and Expenses:                              
    Lease expense   $ 73     $ 71     $ 85     $ 158     $ 59  
    Depreciation and amortization     3,261       3,247       3,496       3,643       3,721  
                                   
    Latin America                              
    Time Charter Statistics:                              
    Average rates per day worked   $ 21,984     $ 22,437     $ 28,308     $ 20,745     $ 20,656  
    Fleet utilization     63 %     71 %     58 %     84 %     87 %
    Fleet available days(2)     828       808       938       809       766  
    Out-of-service days for repairs, maintenance and drydockings     94       41       1       —       67  
    Operating Revenues:                              
    Time charter   $ 11,500     $ 12,832     $ 15,274     $ 14,049     $ 13,817  
    Bareboat charter     372       364       364       368       368  
    Other marine services     620       1,727       1,598       143       176  
          12,492       14,923       17,236       14,560       14,361  
    Direct Costs and Expenses:                              
    Operating:                              
    Personnel     3,791       3,383       4,745       3,645       2,985  
    Repairs and maintenance     1,517       1,761       2,438       1,388       1,021  
    Drydocking     1,940       1,707       1,223       336       (70 )
    Insurance and loss reserves     259       539       390       209       217  
    Fuel, lubes and supplies     2,053       827       1,371       786       773  
    Other     465       419       671       522       367  
          10,025       8,636       10,838       6,886       5,293  
    Direct Vessel Profit(1)   $ 2,467     $ 6,287     $ 6,398     $ 7,674     $ 9,068  
    Other Costs and Expenses:                              
    Lease expense   $ 76     $ 102     $ 80     $ 91     $ 104  
    Depreciation and amortization     1,933       1,933       2,721       2,153       2,110  

     _______________
    (1) See full description of footnote above.
    (2) Includes available days for a bareboat charter for one PSV, which has been excluded from days worked and average day rates.

    SEACOR MARINE HOLDINGS INC.
    UNAUDITED PERFORMANCE BY VESSEL CLASS
    (in thousands, except statistics)
        Three Months Ended
        Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023     Sep. 30, 2023    
    AHTS                                
    Time Charter Statistics:                                
    Average rates per day worked   $ 10,316     $ 8,125     $ 8,538     $ 8,937     $ 9,947    
    Fleet utilization     46 %     49 %     75 %     64 %     50 %  
    Fleet available days     334       364       364       368       368    
    Out-of-service days for repairs, maintenance and drydockings     87       29       —       41       111    
    Out-of-service days for cold-stacked status     58       91       91       92       54    
    Operating Revenues:                                
    Time charter   $ 1,576     $ 1,459     $ 2,331     $ 2,102     $ 1,831    
    Other marine services     13       219       —       6       930    
          1,589       1,678       2,331       2,108       2,761    
    Direct Costs and Expenses:                                
    Operating:                                
    Personnel   $ 981     $ 1,045     $ 1,064     $ 944     $ 1,019    
    Repairs and maintenance     239       465       220       612       484    
    Drydocking     436       280       68       58       747    
    Insurance and loss reserves     66       97       43       73       88    
    Fuel, lubes and supplies     90       69       616       375       428    
    Other     263       230       287       295       378    
          2,075       2,186       2,298       2,357       3,144    
    Other Costs and Expenses:                                
    Lease expense   $ 4     $ 164     $ 171     $ 253     $ 331    
    Depreciation and amortization     175       175       175       175       249    
                                     
    FSV                                
    Time Charter Statistics:                                
    Average rates per day worked   $ 13,102     $ 12,978     $ 11,834     $ 11,841     $ 11,441    
    Fleet utilization     81 %     80 %     72 %     74 %     79 %  
    Fleet available days     2,024       2,002       2,002       2,105       2,116    
    Out-of-service days for repairs, maintenance and drydockings     96       128       216       337       227    
    Out-of-service days for cold-stacked status     83       36       91       92       69    
    Operating Revenues:                                
    Time charter   $ 21,606     $ 20,698     $ 17,081     $ 18,502     $ 19,135    
    Other marine services     1,012       516       126       163       652    
          22,618       21,214       17,207       18,665       19,787    
    Direct Costs and Expenses:                                
    Operating:                                
    Personnel   $ 5,637     $ 5,829     $ 5,649     $ 5,320     $ 5,144    
    Repairs and maintenance     4,378       4,572       3,093       2,691       2,787    
    Drydocking     448       457       1,869       1,710       870    
    Insurance and loss reserves     532       546       277       507       185    
    Fuel, lubes and supplies     1,962       993       1,051       1,441       1,501    
    Other     2,238       1,850       1,649       1,632       1,552    
          15,195       14,247       13,588       13,301       12,039    
    Other Costs and Expenses:                                
    Depreciation and amortization   $ 4,744     $ 4,746     $ 4,744     $ 4,879     $ 5,002    
    SEACOR MARINE HOLDINGS INC.
    UNAUDITED PERFORMANCE BY VESSEL CLASS (continued)
    (in thousands, except statistics)
        Three Months Ended
        Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023     Sep. 30, 2023    
    PSV                                
    Time Charter Statistics:                                
    Average rates per day worked   $ 21,819     $ 20,952     $ 19,133     $ 19,778     $ 19,528    
    Fleet utilization     58 %     66 %     53 %     77 %     78 %  
    Fleet available days(1)     1,932       1,900       1,911       1,902       1,870    
    Out-of-service days for repairs, maintenance and drydockings     349       291       307       109       110    
    Operating Revenues:                                
    Time charter   $ 24,488     $ 26,390     $ 19,390     $ 29,140     $ 28,580    
    Bareboat charter     372       364       364       368       368    
    Other marine services     2,855       2,266       416       595       696    
          27,715       29,020       20,170       30,103       29,644    
    Direct Costs and Expenses:                                
    Operating:                                
    Personnel   $ 9,360     $ 8,979     $ 8,850     $ 9,017     $ 8,793    
    Repairs and maintenance     3,798       3,151       4,393       3,520       2,504    
    Drydocking     2,629       2,616       3,386       472       232    
    Insurance and loss reserves     636       1,037       395       690       682    
    Fuel, lubes and supplies     3,594       1,575       1,889       1,027       2,352    
    Other     2,821       1,850       1,395       1,922       1,761    
          22,838       19,208       20,308       16,648       16,324    
    Other Costs and Expenses:                                
    Lease expense   $ (3 )   $ 3     $ —     $ —     $ —    
    Depreciation and amortization     4,117       4,128       4,073       4,073       4,073    

    ___________________
    (1) Includes available days for a bareboat charter for one PSV, which has been excluded from days worked and average day rates.

    SEACOR MARINE HOLDINGS INC.
    UNAUDITED PERFORMANCE BY VESSEL CLASS (continued)
    (in thousands, except statistics)
        Three Months Ended
        Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023     Sep. 30, 2023    
    Liftboats                                
    Time Charter Statistics:                                
    Average rates per day worked   $ 36,423     $ 43,204     $ 53,506     $ 40,181     $ 39,419    
    Fleet utilization     58 %     54 %     53 %     52 %     59 %  
    Fleet available days     736       728       728       795       828    
    Out-of-service days for repairs, maintenance and drydockings     109       143       78       60       111    
    Out-of-service days for cold-stacked status     92       91       91       162       137    
    Operating Revenues:                                
    Time charter   $ 15,643     $ 17,102     $ 20,461     $ 16,754     $ 19,122    
    Other marine services     1,142       666       1,772       4,666       4,710    
          16,785       17,768       22,233       21,420       23,832    
    Direct Costs and Expenses:                                
    Operating:                                
    Personnel   $ 5,926     $ 6,842     $ 6,140     $ 5,316     $ 4,983    
    Repairs and maintenance     1,531       2,054       2,035       769       1,643    
    Drydocking     2,555       2,857       1,383       321       (81 )  
    Insurance and loss reserves     1,334       1,482       1,282       1,554       1,148    
    Fuel, lubes and supplies     928       1,329       967       838       766    
    Other     473       519       343       531       445    
          12,747       15,083       12,150       9,329       8,904    
    Other Costs and Expenses:                                
    Depreciation and amortization     3,866       3,865       3,866       3,867       4,099    
                                     
    Other Activity                                
    Operating Revenues:                                
    Other marine services   $ 209     $ 187     $ 829     $ 787     $ 876    
          209       187       829       787       876    
    Direct Costs and Expenses:                                
    Operating:                                
    Personnel   $ 36     $ (1,129 )   $ (33 )   $ 1,483     $ 4    
    Repairs and maintenance     (1 )     2       22       12       —    
    Insurance and loss reserves     16       (63 )     (259 )     120       (270 )  
    Fuel, lubes and supplies     —       —       —       2       —    
    Other     1       (14 )     25       17       (3 )  
          52       (1,204 )     (245 )     1,634       (269 )  
    Other Costs and Expenses:                                
    Lease expense   $ 363     $ 319     $ 310     $ 426     $ 320    
    Depreciation and amortization     26       25       24       28       39    
    SEACOR MARINE HOLDINGS INC.
    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands)

    		  
        Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023     Sep. 30, 2023  
    ASSETS                              
    Current Assets:                              
    Cash and cash equivalents   $ 35,601     $ 40,605     $ 59,593     $ 67,455     $ 55,840  
    Restricted cash     2,263       2,255       2,566       16,676       2,796  
    Receivables:                              
    Trade, net of allowance for credit loss     76,497       70,770       58,272       63,728       63,246  
    Other     7,841       6,210       12,210       11,049       8,662  
    Tax receivable     983       983       983       983       445  
    Inventories     3,139       3,117       2,516       1,609       1,738  
    Prepaid expenses and other     4,840       5,659       3,425       2,686       2,957  
    Assets held for sale     —       500       500       500       6,093  
    Total current assets     131,164       130,099       140,065       164,686       141,777  
    Property and Equipment:                              
    Historical cost     921,445       921,443       919,139       918,823       936,520  
    Accumulated depreciation     (362,604 )     (349,799 )     (337,001 )     (324,141 )     (318,549 )
          558,841       571,644       582,138       594,682       617,971  
    Construction in progress     11,935       11,518       13,410       10,362       9,413  
    Net property and equipment     570,776       583,162       595,548       605,044       627,384  
    Right-of-use asset – operating leases     3,575       3,683       3,988       4,291       4,907  
    Right-of-use asset – finance leases     19       28       29       37       45  
    Investments, at equity, and advances to 50% or less owned companies     2,046       2,641       3,122       4,125       3,857  
    Other assets     1,864       1,953       2,094       2,153       2,095  
    Total assets   $ 709,444     $ 721,566     $ 744,846     $ 780,336     $ 780,065  
    LIABILITIES AND EQUITY                              
    Current Liabilities:                              
    Current portion of operating lease liabilities   $ 494     $ 861     $ 1,285     $ 1,591     $ 1,856  
    Current portion of finance lease liabilities     17       26       33       35       35  
    Current portion of long-term debt     28,605       28,605       28,605       28,365       28,005  
    Accounts payable     22,744       17,790       23,453       27,562       32,468  
    Other current liabilities     28,808       23,795       21,067       19,533       21,340  
    Total current liabilities     80,668       71,077       74,443       77,086       83,704  
    Long-term operating lease liabilities     3,221       3,276       3,390       3,529       3,571  
    Long-term finance lease liabilities     4       5       —       6       15  
    Long-term debt     272,325       277,740       281,989       287,544       291,843  
    Deferred income taxes     26,802       30,083       33,873       35,718       33,078  
    Deferred gains and other liabilities     1,416       1,447       2,285       2,229       2,217  
    Total liabilities     384,436       383,628       395,980       406,112       414,428  
    Equity:                              
    SEACOR Marine Holdings Inc. stockholders’ equity:                              
    Common stock     287       286       286       280       280  
    Additional paid-in capital     477,661       476,020       474,433       472,692       471,158  
    Accumulated deficit     (154,374 )     (138,028 )     (125,609 )     (102,425 )     (108,154 )
    Shares held in treasury     (8,110 )     (8,110 )     (8,071 )     (4,221 )     (4,221 )
    Accumulated other comprehensive income, net of tax     9,223       7,449       7,506       7,577       6,253  
          324,687       337,617       348,545       373,903       365,316  
    Noncontrolling interests in subsidiaries     321       321       321       321       321  
    Total equity     325,008       337,938       348,866       374,224       365,637  
    Total liabilities and equity   $ 709,444     $ 721,566     $ 744,846     $ 780,336     $ 780,065  
    SEACOR MARINE HOLDINGS INC.
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
              Three Months Ended
        Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023     Sep. 30, 2023  
    Cash Flows from Operating Activities:                              
    Net (Loss) Income   $ (16,346 )   $ (12,483 )   $ (23,069 )   $ 5,729     $ (883 )
    Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:                              
    Depreciation and amortization     12,928       12,939       12,882       13,022       13,462  
    Deferred financing costs amortization     298       297       295       279       459  
    Stock-based compensation expense     1,604       1,587       1,645       1,510       1,540  
    Debt discount amortization     2,061       1,993       1,926       1,862       1,714  
    Allowance for credit losses     101       39       3       266       594  
    (Gain) loss from equipment sales, retirements or impairments     (1,821 )     (37 )     1       (18,057 )     512  
    Losses on debt extinguishment     —       —       —       —       177  
    Derivative (gains) losses     (67 )     (104 )     543       (608 )     —  
    Interest on finance lease     —       1       —       1       59  
    Settlements on derivative transactions, net     —       —       164       —       197  
    Currency losses (gains)     1,717       560       80       1,276       (571 )
    Deferred income taxes     (3,281 )     (3,790 )     (1,845 )     2,640       (960 )
    Equity (earnings) losses     (1,012 )     (966 )     1,100       (374 )     (2,273 )
    Dividends received from equity investees     1,498       1,418       —       166       1,031  
    Changes in Operating Assets and Liabilities:                              
    Accounts receivables     (7,411 )     (6,928 )     4,291       (3,472 )     (747 )
    Other assets     1,032       (2,395 )     (1,290 )     733       493  
    Accounts payable and accrued liabilities     9,325       (4,378 )     (3,895 )     (6,456 )     (7,705 )
    Net cash provided by (used in) operating activities     626       (12,247 )     (7,169 )     (1,483 )     7,099  
    Cash Flows from Investing Activities:                              
    Purchases of property and equipment     (210 )     (658 )     (3,416 )     (3,644 )     (6,455 )
    Proceeds from disposition of property and equipment     2,331       86       —       36,692       —  
    Net investing activities in property and equipment     2,121       (572 )     (3,416 )     33,048       (6,455 )
    Principal payments on notes due from others     —       —       —       —       5,000  
    Net cash provided by (used in) investing activities     2,121       (572 )     (3,416 )     33,048       (1,455 )
    Cash Flows from Financing Activities:                              
    Payments on long-term debt     (7,770 )     (6,533 )     (7,530 )     (6,173 )     (4,901 )
    Payments on debt extinguishment     —       —       —       —       (104,832 )
    Payments on debt extinguishment cost     —       —       —       —       (1,827 )
    Proceeds from issuance of long-term debt, net of issue costs     —       —       —       87       121,207  
    Payments on finance leases     (10 )     (9 )     (9 )     (9 )     (204 )
    Proceeds from issuance of common stock, net of issue costs     —       —       —       24       —  
    Proceeds from exercise of stock options     38       102       —       —       —  
    Tax withholdings on restricted stock vesting     —       (39 )     (3,850 )     —       —  
    Net cash (used in) provided by financing activities     (7,742 )     (6,479 )     (11,389 )     (6,071 )     9,443  
    Effects of Exchange Rate Changes on Cash, Restricted Cash and Cash Equivalents     (1 )     (1 )     2       1       3  
    Net Change in Cash, Restricted Cash and Cash Equivalents     (4,996 )     (19,299 )     (21,972 )     25,495       15,090  
    Cash, Restricted Cash and Cash Equivalents, Beginning of Period     42,860       62,159       84,131       58,636       43,546  
    Cash, Restricted Cash and Cash Equivalents, End of Period   $ 37,864     $ 42,860     $ 62,159     $ 84,131     $ 58,636  
    SEACOR MARINE HOLDINGS INC.
    UNAUDITED FLEET COUNTS

    		  
        Owned     Leased-in     Managed     Total  
    September 30, 2024                        
    AHTS     2       1       —       3  
    FSV     22       —       1       23  
    PSV     21       —       —       21  
    Liftboats     8       —       —       8  
          53       1       1       55  
    December 31, 2023                        
    AHTS     3       1       —       4  
    FSV     22       —       3       25  
    PSV     21       —       —       21  
    Liftboats     8       —       —       8  
          54       1       3       58  

    The MIL Network –

  • 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 –