NewzIntel.com

Category: Asia Pacific

  • MIL-OSI New Zealand: Right to Repair Bill passes significant step

    Source: Green Party

    Green Party Co-Leader Marama Davidson’s Consumer Guarantees Right to Repair Amendment Bill has passed its first reading in Parliament this evening.

    “This is a significant step towards building a circular economy that empowers our people and protects our planet,” says Green Party co-leader Marama Davidson.

    “This Bill combines climate action with cost of living relief. We can build a better future for ourselves whilst also making our lives easier today.

    “The Right to Repair is about empowering consumers to repair what they own, protecting them from recurring costs and in turn preventing more and more waste going to landfill and polluting our environment.

    “This Bill would require manufacturers to provide repair parts and resources to allow consumers to extend the life cycle of the products they use. Passing this would be a win for regular people over big corporates who build obsolescence into their products so people have to keep coming back to replace their things and spend more of their money. 

    “This is something that would benefit not only households but also businesses – from hairdressers to farmers – by enabling them to fix the appliances and tools they rely on to do their work. 

    “I want to thank the community and organisations who have pushed for this legislation for so long. It is this collective work that has gotten the Bill this far.

    “I am also grateful for those political parties who voted in favour of this Bill. I look forward to the select committee process and working with the public as well as members across Parliament to ensure this Bill becomes law,” says Marama Davidson. 

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: 20 February 2025 ‘Auntie’ Faith’s fast fingers fly through the knitting Every winter, kids at Motueka primary schools are toasty warm thanks to Faith’s speedy knitting skills.

    Source: New Zealand Government Kainga Ora

    The Kāinga Ora tenant, better known as ‘Auntie Faith’ to the children she knits for, has been donating beautifully knitted slippers and mittens to Motueka schools for a number of years.

    “The whole idea is every child in the classroom has cosy feet because they change into slippers in the classroom,” Faith explains.

    “I ring around the schools in March to see if they need anything. I do it with my daughter and two to three friends and I get the schools to draw an outline of the children’s feet to give me an idea of what’s needed. I also get an outline of the children’s hands for the mittens. I can do two pairs of slippers in an evening,” Faith explains.

    Faith with one of her handknitted tea cosies.

    Faith has been knitting for about 80 years and has many memories of the important part the hobby has played in her life.

    “I learnt to knit when I was five. It was during the war and Mum and I were living with a lady while Dad was overseas. She taught me how to knit, although Mum was a good knitter too. I was at school in Addington in Christchurch and Mum and I would go and buy skeins of wool. I was 10 when I knitted my first jersey.”

    Faith’s lifelong love of knitting has seen her enter local knitting competitions and donate to many people in need over the years. She was Motueka co-ordinator for ‘Operation Cover Up’, which sends shipping containers full of donated knitted clothes and toys to Eastern Europe each year, for 10 years.

    “I used to collect everything and then it went to Christchurch and on to Europe. We did about 300 blankets. I had peggy squares all over my lounge floor before we sewed them up,” Faith says.

    “We got a video of the children getting the handknitted dolls, and the look on their faces! I really enjoyed doing that project.”

    Faith and her husband raised four children in another Kāinga Ora home in Motueka, where she lived for 36 years. In August last year, with her family all grown up, it was time to move to a place that better suited her needs.

    Her home’s central location means she is close to the Motueka District Museum and the Motueka Red Cross Shop, where she volunteers her time.

    “When the weather is good, I can walk to the museum and the Red Cross. I have volunteered with the Red Cross for 32 years. I could not bear to not be busy,” Faith says.

    Page updated: 20 February 2025

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: No movement in child poverty rates for year ended June 2024 – Stats NZ media and information release: Child poverty statistics: Year ended June 2024

    Source: Statistics New Zealand

    No movement in child poverty rates for year ended June 2024 – 20 February 2025 – None of the nine measures of child poverty showed a statistically significant change in the year ended June 2024, compared with the previous year, according to figures released by Stats NZ today.

    Three of the nine child poverty measures have decreased from the baseline year (year ended June 2018) to the year ended June 2024. The rest showed no statistically significant changes.

    “There has been no movement in the child poverty rates since June 2023,” statistical delivery spokesperson Abby Johnston said. “If we look over the longer term, however, we can see that two of the primary measures and one of the supplementary measures have statistically significant decreases from the baseline year ending June 2018.”

    Files:

    MIL OSI New Zealand News –

  • MIL-OSI: First Capital, Inc. Announces Quarterly Dividend

    Source: GlobeNewswire (MIL-OSI)

    CORYDON, Ind., Feb. 19, 2025 (GLOBE NEWSWIRE) — The Board of Directors of First Capital, Inc. (NASDAQ: FCAP) has declared a quarterly cash dividend of $0.29 (twenty-nine cents) per share of common stock, according to Michael C. Frederick, President and Chief Executive Officer. The dividend will be paid on March 28, 2025 to shareholders of record as of March 14, 2025.

    First Capital, Inc. is the holding company for First Harrison Bank. First Harrison currently has eighteen offices in the Indiana communities of Corydon, Edwardsville, Greenville, Floyds Knobs, Palmyra, New Albany, New Salisbury, Jeffersonville, Salem, Lanesville and Charlestown and the Kentucky communities of Shepherdsville, Mt. Washington and Lebanon Junction. Access to First Harrison Bank accounts, including online banking and electronic bill payments, is available anywhere with Internet access through the Bank’s website at www.firstharrison.com. For more information and financial data about First Capital, Inc., please visit Investor Relations at First Harrison Bank’s aforementioned website.

    Contact:
    Joshua P. Stevens
    Chief Financial Officer
    812-738-1570

    The MIL Network –

  • MIL-OSI: First Capital, Inc. Announces Date of Annual Meeting

    Source: GlobeNewswire (MIL-OSI)

    CORYDON, Ind., Feb. 19, 2025 (GLOBE NEWSWIRE) — First Capital, Inc. (NASDAQ:FCAP), the holding company for First Harrison Bank, today announced that its annual meeting of stockholders will be held on Wednesday, May 21, 2025.

    The Bank currently has eighteen offices in the Indiana communities of Corydon, Edwardsville, Greenville, Floyds Knobs, Palmyra, New Albany, New Salisbury, Jeffersonville, Salem, Lanesville and Charlestown and the Kentucky communities of Shepherdsville, Mt. Washington and Lebanon Junction.

    Access to First Harrison Bank accounts, including online banking and electronic bill payments, is available through the Bank’s website at www.firstharrison.com. For more information and financial data about the Company, please visit Investor Relations at the Bank’s aforementioned website. The Bank can also be followed on Facebook.

    Contact:
    Joshua P. Stevens
    Executive Vice President
    Chief Financial Officer
    First Capital, Inc.
    200 Federal Drive, N.W.
    Corydon, Indiana 47112
    (812) 738-1570

    The MIL Network –

  • MIL-OSI: Guggenheim First Quarter 2025 High Yield and Bank Loan Outlook: Reframing Tight Spreads in Leveraged Credit

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Feb. 19, 2025 (GLOBE NEWSWIRE) — Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, today released its first quarter High Yield and Bank Loan Outlook. “Reframing Tight Spreads in Leveraged Credit,” examines the outlook for high yield corporate bonds and leveraged loans in an economic environment that is supportive but marked by policy uncertainty.

    Key takeaways:

    • The leveraged credit market delivered strong returns in 2024, reflecting a solid economy and robust investor demand for fixed income.
    • High yield spreads and leveraged loan discount margins tightened by the end of the year.
    • Both fundamental and technical factors are supporting currently tight index spreads. And after adjusting for fundamental factors like leverage and interest coverage, high yield credit spreads appear cheaper compared to historical levels.
    • Moreover, the high yield bond market is comprised of higher quality issuers than a decade ago, revealing greater value and presenting carry opportunities.
    • Repricing activity should moderate leveraged loan defaults, supporting modestly tighter discount margins.
    • We anticipate modest normalization in high yield credit spreads this year, contingent on continued economic growth.
    • Solid U.S. growth and moderate inflation should support credit markets in 2025, creating a stable environment for high yield bonds and leveraged loans.
    • Historically elevated yield levels are likely to continue to attract investors, maintaining a favorable supply/demand dynamic in credit markets.

    For more information, please visit http://www.guggenheiminvestments.com.

    About Guggenheim Investments

    Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, with more than $243 billion1 in total assets across fixed income, equity, and alternative strategies. We focus on the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, consultants, wealth managers, and high-net-worth investors. Our 220+ investment professionals perform rigorous research to understand market trends and identify undervalued opportunities in areas that are often complex and underfollowed. This approach to investment management has enabled us to deliver innovative strategies providing diversification opportunities and attractive long-term results.

    1. Assets under management are as of 12.31.2024 and include leverage of $14.8bn. Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Private Investments, LLC, Guggenheim Wealth Solutions, LLC, Guggenheim Partners Europe Limited, Guggenheim Partners Japan Limited, and GS GAMMA Advisors, LLC.

    Investing involves risk, including the possible loss of principal. In general, the value of a fixed-income security falls when interest rates rise and rises when interest rates fall. Longer term bonds are more sensitive to interest rate changes and subject to greater volatility than those with shorter maturities. During periods of declining rates, the interest rates on floating rate securities generally reset downward and their value is unlikely to rise to the same extent as comparable fixed rate securities.  High yield and unrated debt securities are at a greater risk of default than investment grade bonds and may be less liquid, which may increase volatility. Investors in asset-backed securities, including mortgage-backed securities and collateralized loan obligations (“CLOs”), generally receive payments that are part interest and part return of principal. These payments may vary based on the rate loans are repaid. Some asset-backed securities may have structures that make their reaction to interest rates and other factors difficult to predict, making their prices volatile and they are subject to liquidity and valuation risk. CLOs bear similar risks to investing in loans directly, such as credit, interest rate, counterparty, prepayment, liquidity, and valuation risks. Loans are often below investment grade, may be unrated, and typically offer a fixed or floating interest rate.

    This material is distributed or presented for informational or educational purposes only and should not be considered a recommendation of any particular security, strategy, or investment product, or as investing advice of any kind. This material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. The content contained herein is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.

    This material contains opinions of the author, but not necessarily those of Guggenheim Partners, LLC, or its subsidiaries. The opinions contained herein are subject to change without notice. Forward-looking statements, estimates, and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable but are not assured as to accuracy. Past performance is not indicative of future results. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information. No part of this material may be reproduced or referred to in any form, without express written permission of Guggenheim Partners, LLC.

    Media Contact
    Gerard Carney
    Guggenheim Partners
    310.871.9208
    Gerard.Carney@guggenheimpartners.com

    The MIL Network –

  • MIL-OSI USA: Benton Exhibit Honors Minnie Negoro, Pioneering UConn Ceramics Professor

    Source: US State of Connecticut

    A new exhibition at the William Benton Museum of Art celebrates the contributions of Minnie Negoro, a former professor who laid the foundation for UConn’s ceramics program, while also highlighting her journey through one of the darkest chapters in U.S. history. 

    Curated by faculty in the College of Liberal Arts and Sciences (CLAS) with help from students, the exhibition tells the story of Negoro’s life — from her forced relocation to a Japanese American incarceration camp during World War II to her lasting influence as a beloved professor and artist.  

    Hana Maruyama, assistant professor of history and social and critical inquiry in CLAS and lead curator of the exhibition, hopes it will honor Negoro’s legacy at UConn while spotlighting the importance of public history.  

    “Her former students knew she had existed, her colleagues in the art department knew she had existed, but from the Asian American studies side, that kind of institutional memory had kind of been lost,” Maruyama says. 

    Rediscovering a Forgotten Story 

    Jason Chang—head of the Department of Social and Critical Inquiry, associate professor of history, and co-curator of the exhibition— first uncovered Negoro’s story while leading the former Asian and Asian American Studies Institute. Recognizing its significance, he partnered with Maruyama and a team of scholars and artists to examine Negoro’s impact at UConn. Their research soon uncovered an unexpected discovery—this year marks 60 years since Negoro’s arrival at the University. 

    Maruyama, who studies Japanese American incarceration and had family imprisoned at Heart Mountain, quickly realized that while Negoro had a profound impact on her students and the School of Fine Arts, little had been documented in archives or other public history sources. 

    Determined to preserve that legacy, Maruyama began seeking out information from Negoro’s former colleagues and students.  

    “One year is not a lot of time to create an exhibition,” says Maruyama, who previously worked at the Smithsonian Institution. “It’s very typical for an exhibition to take five to eight years, but I just think her story is so important and hasn’t gotten the attention that she deserved.” 

    From Internment to UConn Professor  

    Just a semester away from graduating from the University of California, Los Angeles, Negoro and her family were among the 125,000 Japanese Americans forcibly removed from the West Coast and placed in incarceration camps across the U.S. in 1942.  

    Although Negoro was an art major, she didn’t learn to use a potter’s wheel until she arrived at Heart Mountain, Wyoming. There, she was one of six people hired to work at the Heart Mountain Ceramics Plant, according to Maruyama.  

    She developed her skills through a government initiative to use imprisoned Japanese Americans to produce tableware for the U.S. Army and other incarceration camps. Despite the repressive circumstances, Negoro’s training at Heart Mountain launched her career and eventually paved the way for UConn’s ceramics program.  

    Negoro was able to leave Heart Mountain through a program that permitted Japanese American students to attend colleges outside the exclusion zone. Under the guidance of one of her mentors from Heart Mountain, she pursued an MFA at Alfred University.  

    After earning her degree, Negoro ran her own ceramics studio in New York for a decade and taught at institutions such as the Rhode Island School of Design and the Chouinard Art Institute in Los Angeles before arriving at UConn in 1965.  

    “They just kept renewing her contract and eventually she got on a tenure track and the rest is history,” Maruyama says. “She taught here for the next 20-plus years.”  

    Maruyama says now, decades later, many of Negoro’s former students are still eager to share how she impacted not only their education and careers but also their lives.  

    “They are so committed to preserving her legacy,” Maruyama says. “As an educator, it was inspiring for me to hear them talk about how much she impacted their lives.” 

    Minnie Negoro demonstrates the use of the potter’s wheel to a group of students on December 5, 1967. (Courtesy of UConn Archives and Special Collections).

    Students Help Share Negoro’s Story 

    To further honor Negoro’s legacy, Maruyama involved her own students in the process of putting together the exhibit. She revamped her spring 2024 “Topics in Public History” course to have them create an initial draft of the exhibition.  

    “The students were excited to be working on something that was going to go on display,” Maruyama says. “They put their hearts and souls into it.” 

    Everett Padro ’26 (CLAS), a history major, says he’s been interested in public history since childhood.  

    “I used to go to the Smithsonian because I have family members that work there,” he says. “I would just be blown away by not only the artifacts they had but how they organized and kept track of and cared for them.” 

    Padro, who is now considering a career in museum curation, was excited to learn Maruyama’s class would allow him to get some hands-on experience while also exploring the history of something close to home.  

    “It was a pleasant surprise getting to work so intimately with first-hand accounts and structuring this as a teamwork effort to create this exhibit,” Padro says. 

    According to Maruyama, students contributed to multiple aspects of the exhibit, including working on oral and digital histories, writing content, researching UConn’s special collections, and creating a social media campaign. 

    Padro appreciated the opportunity to work on his interests, choosing to work on digitally archiving old photos.  

    “I was interested to see how we can preserve and tell this story to future generations–not only who she was but how she’s relevant to the University,” Padro says. 

    A Lasting Legacy 

    The exhibit features images, artifacts, and writing that explain Negoro’s life and impact as a teacher, as well as examples of her work. It also showcases the work of alumni, many of whom credit her guidance for their success.  

    “What I find kind of incredible about her is that she also had a reputation for being a tough teacher,” Maruyama says. “She was making those undergrads do ceramics math, and ceramics chemistry. This was not just an art class. She really got into the science of ceramics and that’s not something that a lot of undergraduate ceramics programs do.” 

    The exhibit will remain on display until July 27, 2025. Maruyama hopes it will cement Negoro’s legacy at UConn while also bringing attention to the broader history of Japanese American incarceration.  

    “This history is still so personal for many of us,” she says. “Minnie Negoro’s story is about resilience, creativity, and the power of education. It’s about making sure we don’t forget.” 

    — 

    Minnie Negoro: From Heart Mountain to UConn, will be on display in the Benton Museum through July 2025. Hana Maruyama, Assistant Professor of History and Social and Critical Inquiry at UConn, will lead a guided tour of the exhibit on Friday, Feb. 21, 2025. 

    MIL OSI USA News –

  • MIL-OSI Submissions: No movement in child poverty rates for year ended June 2024 – Stats NZ media and information release: Child poverty statistics: Year ended June 2024

    Source: Statistics New Zealand

    No movement in child poverty rates for year ended June 2024 – 20 February 2025 – None of the nine measures of child poverty showed a statistically significant change in the year ended June 2024, compared with the previous year, according to figures released by Stats NZ today.

    Three of the nine child poverty measures have decreased from the baseline year (year ended June 2018) to the year ended June 2024. The rest showed no statistically significant changes.

    “There has been no movement in the child poverty rates since June 2023,” statistical delivery spokesperson Abby Johnston said. “If we look over the longer term, however, we can see that two of the primary measures and one of the supplementary measures have statistically significant decreases from the baseline year ending June 2018.”

    Files:

    MIL OSI –

  • MIL-OSI New Zealand: Housing costs continue to put pressure on households in year to June 2024 – Stats NZ media and information release: Household income and housing-cost statistics: Year ended June 2024

    Source: Statistics New Zealand

    Housing costs continue to put pressure on households in year to June 2024 – 20 February 2025 – One-third of low-income households in Aotearoa New Zealand spent more than 40 percent of their income on housing costs in the year ended June 2024, according to data released by Stats NZ today.

    In the year ended June 2024, approximately 31 percent of households in the lowest two income quintiles spent 40 percent or more of their income on housing costs (31.7 percent of households in the lowest income quintile (under $41,600) and 31.0 percent for those in the second income quintile ($41,600 to $69,999)).

    Across all households, 19.7 percent spent 40 percent or more of their income on housing costs, up from 18.2 percent the previous year.

    Files:

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Grants open soon for the Hibiscus and Bays community

    Source: Auckland Council

    Hibiscus and Bays community groups and business associations will soon be able to apply for local, facilities or business grants.

    Local grants provide funding for arts, community, environment, heritage, sport and recreation projects and events and applications open from 3 March to 11 April 2025.

    Facilities grants assist with the costs of planning or developing sports, recreation, arts or community facilities located in the Hibiscus and Bays Local Board area.

    Local Economic and Business grants are open to business associations only and have a strong focus on initiatives that provide economic benefits to local businesses.

    Board chair Alexis Poppelbaum says the local board’s grants programme aims to fund deserving community initiatives that align with the Hibiscus and Bays Local Board Plan 2023.

    “Our local board plan has been developed together with our community and the plan sets out the priorities that are important to our area.

    “It’s important to read the plan before applying for any grant because this funding is aligned to the priorities listed in the plan.”

    In the first round of the Hibiscus and Bays Local Board Grants Programme for 2024/2025 financial year, 24 community organisations received a total of $63,678.50

    Local and Facilities grants

    Local grants are offered twice a year and for amounts between $2,000 to $8,000.

    Facilities grants are offered once a year and can be used for needs assessments, feasibility studies, investigation and design costs, and small building works for up to $50,000.

    Local Economic and Business grants

    Business associations attended a local board workshop recently to discuss the economic business grant and the requirements for the grant round opening soon.

    Poppelbaum says the session went well and business associations heard first-hand about the grant which provides additional funding over and above business-as-usual activities.

    “The session was an opportunity to hear feedback from the business associations, to clarify the grant’s eligibility criteria and to answer questions about the grant.”

    The business grant can assist with projects and programmes that:

    • provide skills and training that support staff recruitment, upskilling and retention

    • provide opportunities for increased local employment and local recruitment and business supporting business

    • focus on local business resilience and developing plans that move towards economic prosperity

    • provide local place-making that adds value to the experience of town centres with an emphasis on local businesses and experiences

    • improve the environment of town centres to ensure patrons feel safe.

    The deadline for this year’s application round is 11 April. Decisions will made by the local board at their business meeting on 27 May and will include projects that start after 1 June.

    Applicants should complete the online application form and can view the grants programmes here.

    Stay up to date

    Sign up for your Local Board E-news and get the latest news and events direct to your inbox each month. Or follow us on Facebook.

    MIL OSI New Zealand News –

  • MIL-OSI: Trupanion Reports Fourth Quarter & Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    SEATTLE, Feb. 19, 2025 (GLOBE NEWSWIRE) — Trupanion, Inc. (Nasdaq: TRUP), a leading provider of medical insurance for cats and dogs, today announced financial results for the fourth quarter and full year ended December 31, 2024.

    “2024 was a milestone year for Trupanion. Strong execution drove 20% subscription revenue growth, the doubling of our subscription margin in Q4 from its quarterly low in 2023, and a record $39 million in free cash flow,” said Margi Tooth, Chief Executive Officer and President of Trupanion. “As we look to 2025, our focus remains on sustainable, measured growth while enhancing the member experience and improving retention.”

    Fourth Quarter 2024 Financial and Business Highlights

    • Total revenue was $337.3 million, an increase of 14% compared to the fourth quarter of 2023.
    • Total enrolled pets (including pets from our other business segment) was 1,677,570 at December 31, 2024, a decrease of 2% over December 31, 2023.
    • Subscription business revenue was $227.8 million, an increase of 19% compared to the fourth quarter of 2023.
    • Subscription enrolled pets was 1,041,212 at December 31, 2024, an increase of 5% over December 31, 2023.
    • Net income was $1.7 million, or $0.04 per basic and diluted share, compared to a net loss of $(2.2) million, or $(0.05) per basic and diluted share, in the fourth quarter of 2023.
    • Adjusted EBITDA was $19.4 million, compared to adjusted EBITDA of $8.5 million in the fourth quarter of 2023.
    • Operating cash flow was $23.7 million and free cash flow was $21.8 million in the fourth quarter of 2024. This compared to operating cash flow of $17.5 million and free cash flow of $13.5 million in the fourth quarter of 2023.

    Full Year 2024 Financial and Business Highlights

    • Total revenue was $1,286 million, an increase of 16% compared to 2023.
    • Subscription business revenue was $856.5 million, an increase of 20% compared to 2023.
    • Net loss was $(9.6) million, or $(0.23) per basic and diluted share, compared to a net loss of $(44.7) million, or $(1.08) per basic and diluted share, in 2023.
    • Adjusted EBITDA was $46.1 million, compared to adjusted EBITDA of $6.4 million in 2023.
    • Operating cash flow was $48.3 million and free cash flow was $38.6 million in 2024. This compared to operating cash flow of $18.6 million and free cash flow of $0.4 million in 2023.
    • At December 31, 2024, the Company held $307.4 million in cash and short-term investments, including $35.4 million held outside the insurance entities, with an additional $15 million available under its credit facility.
    • The Company maintained $288.0 million of capital surplus at its insurance subsidiaries. The largest insurance subsidiary, APIC, maintained $245.5 million of capital surplus, which was $140.2 million more than the company action level risk-based capital requirement.

    Conference Call
    Trupanion’s management will host a conference call today to review its fourth quarter and full year 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: 10194900.

    About Trupanion
    Trupanion is a leader in medical insurance for cats and dogs throughout the United States, Canada, certain countries in Continental Europe, and Australia with over 1,000,000 pets currently 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 parents 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 in Canada by Canada Pet Health Insurance Services, Inc. dba Trupanion 309-1277 Lynn Valley Road, North Vancouver, BC V7J 0A2 and in the United States by Trupanion Managers USA, Inc. (CA license No. 0G22803, NPN 9588590). Canada Pet Health Insurance Services, Inc. is a registered damage insurance agency and claims adjuster in Quebec #603927. Trupanion Australia is a partnership between Trupanion and Hollard Insurance Company. 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, 2024 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 December 31,   Year Ended December 31,
        2024       2023       2024       2023  
      (unaudited)        
    Revenue:              
    Subscription business $ 227,783     $ 191,537     $ 856,521     $ 712,906  
    Other business   109,524       104,320       429,163       395,699  
    Total revenue   337,307       295,857       1,285,684       1,108,605  
    Cost of revenue:              
    Subscription business   181,614       158,631       706,851       613,686  
    Other business   102,770       97,162       400,035       363,903  
    Total cost of revenue(1), (2)   284,384       255,793       1,106,886       977,589  
    Operating expenses:              
    Technology and development(1)   8,172       5,969       31,255       21,403  
    General and administrative(1)   16,828       13,390       63,731       60,207  
    New pet acquisition expense(1)   18,354       17,189       71,379       77,372  
    Goodwill impairment charges   5,299       —       5,299       —  
    Depreciation and amortization   3,924       3,029       16,466       12,474  
    Total operating expenses   52,577       39,577       188,130       171,456  
    Gain (loss) from investment in joint venture   2       (79 )     (182 )     (219 )
    Operating income (loss)   348       408       (9,514 )     (40,659 )
    Interest expense   3,427       3,697       14,498       12,077  
    Other expense (income), net   (4,773 )     (1,256 )     (14,374 )     (7,701 )
    Income (loss) before income taxes   1,694       (2,033 )     (9,638 )     (45,035 )
    Income tax expense (benefit)   38       130       (5 )     (342 )
    Net income (loss) $ 1,656     $ (2,163 )   $ (9,633 )   $ (44,693 )
                   
    Net income (loss) per share:              
    Basic $ 0.04     $ (0.05 )   $ (0.23 )   $ (1.08 )
    Diluted $ 0.04     $ (0.05 )   $ (0.23 )   $ (1.08 )
    Weighted average shares of common stock outstanding:              
    Basic   42,402,323       41,716,527       42,158,773       41,436,882  
    Diluted   42,903,536       41,716,527       42,158,773       41,436,882  
                   
    (1)Includes stock-based compensation expense as follows: Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
    Cost of revenue $ 1,337     $ 1,478     $ 5,523     $ 5,279  
    Technology and development   1,160       861       4,934       2,846  
    General and administrative   4,261       3,269       15,696       17,717  
    New pet acquisition expense   1,536       1,693       7,279       7,319  
    Total stock-based compensation expense $ 8,294     $ 7,301     $ 33,432     $ 33,161  
                   
    (2)The breakout of cost of revenue between veterinary invoice expense and other cost of revenue is as follows:
      Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
    Veterinary invoice expense $ 245,663     $ 217,739     $ 949,148     $ 831,055  
    Other cost of revenue   38,721       38,054       157,738       146,534  
    Total cost of revenue $ 284,384     $ 255,793     $ 1,106,886     $ 977,589  
                                   
     
    Trupanion, Inc.
    Condensed Consolidated Balance Sheets
    (in thousands, except share data)
      December 31, 2024   December 31, 2023
           
    Assets      
    Current assets:      
    Cash and cash equivalents $ 160,295     $ 147,501  
    Short-term investments   147,089       129,667  
    Accounts and other receivables, net of allowance for credit losses of $1,117 at December 31, 2024 and $1,085 at December 31, 2023   274,031       267,899  
    Prepaid expenses and other assets   15,912       17,022  
    Total current assets   597,327       562,089  
    Restricted cash   39,235       22,963  
    Long-term investments   373       12,866  
    Property, equipment and internal-use software, net   102,191       103,650  
    Intangible assets, net   13,177       18,745  
    Other long-term assets   17,579       18,922  
    Goodwill   36,971       43,713  
    Total assets $ 806,853     $ 782,948  
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Accounts payable $ 11,532     $ 10,505  
    Accrued liabilities and other current liabilities   33,469       34,052  
    Reserve for veterinary invoices   51,635       63,238  
    Deferred revenue   251,640       235,329  
    Long-term debt – current portion   1,350       1,350  
    Total current liabilities   349,626       344,474  
    Long-term debt   127,537       127,580  
    Deferred tax liabilities   1,946       2,685  
    Other liabilities   4,476       4,487  
    Total liabilities   483,585       479,226  
    Stockholders’ equity:      
    Common stock: $0.00001 par value per share, 100,000,000 shares authorized; 43,516,631 and 42,488,445 shares issued and outstanding at December 31, 2024 and 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   568,302       536,108  
    Accumulated other comprehensive income (loss)   (2,612 )     403  
    Accumulated deficit   (225,888 )     (216,255 )
    Treasury stock, at cost: 1,028,186 shares at December 31, 2024 and December 31, 2023   (16,534 )     (16,534 )
    Total stockholders’ equity   323,268       303,722  
    Total liabilities and stockholders’ equity $ 806,853     $ 782,948  
                   
     
    Trupanion, Inc.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
      Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
      (unaudited)        
    Operating activities              
    Net income (loss) $ 1,656     $ (2,163 )   $ (9,633 )   $ (44,693 )
    Adjustments to reconcile net loss to cash provided by (used in) operating activities:              
    Depreciation and amortization   3,924       3,029       16,466       12,474  
    Stock-based compensation expense   8,294       7,301       33,432       33,161  
    Goodwill impairment charges   5,299       —       5,299       —  
    Other, net   (1,294 )     2,481       (1,748 )     1,347  
    Changes in operating assets and liabilities:              
    Accounts and other receivables   15,303       10,153       (6,717 )     (35,440 )
    Prepaid expenses and other assets   817       854       3,215       (1,907 )
    Accounts payable, accrued liabilities, and other liabilities   2,433       5,476       2,084       1,644  
    Reserve for veterinary invoices   (4,841 )     1,788       (11,310 )     19,485  
    Deferred revenue   (7,890 )     (11,412 )     17,199       32,567  
    Net cash provided by (used in) operating activities   23,701       17,507       48,287       18,638  
    Investing activities              
    Purchases of investment securities   (26,118 )     (56,547 )     (133,493 )     (165,936 )
    Maturities and sales of investment securities   45,886       42,905       127,653       190,270  
    Purchases of property, equipment, and internal-use software   (1,858 )     (3,970 )     (9,716 )     (18,280 )
    Other   548       165       2,099       1,585  
    Net cash provided by (used in) investing activities   18,458       (17,447 )     (13,457 )     7,639  
    Financing activities              
    Proceeds from debt financing, net of financing fees   —       —       —       60,102  
    Repayments of debt financing   (338 )     (337 )     (1,350 )     (1,717 )
    Proceeds from exercise of stock options   36       1,374       752       2,655  
    Shares withheld to satisfy tax withholding   (1,142 )     (240 )     (2,519 )     (1,536 )
    Other   (230 )     (228 )     (840 )     (378 )
    Net cash provided by (used in) financing activities   (1,674 )     569       (3,957 )     59,126  
    Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net   (1,826 )     1,254       (1,807 )     424  
    Net change in cash, cash equivalents, and restricted cash   38,659       1,883       29,066       85,827  
    Cash, cash equivalents, and restricted cash at beginning of period   160,871       168,581       170,464       84,637  
    Cash, cash equivalents, and restricted cash at end of period $ 199,530     $ 170,464     $ 199,530     $ 170,464  
                                   
     
    The following tables set forth our key operating metrics.
                                   
      Year Ended
    December 31,    		                        
        2024       2023                          
    Total Business:                              
    Total pets enrolled (at period end)   1,677,570       1,714,473                          
    Subscription Business:                              
    Total subscription pets enrolled (at period end)   1,041,212       991,426                          
    Monthly average revenue per pet $ 72.98     $ 65.26                          
    Average pet acquisition cost (PAC) $ 235     $ 228                          
    Average monthly retention   98.25 %     98.49 %                        
                                   
                                   
      Three Months Ended
      Dec. 31,
    2024    		   Sep. 30,
    2024    		   Jun. 30,
    2024    		   Mar. 31,
    2024    		   Dec. 31,
    2023    		   Sep. 30,
    2023    		   Jun. 30,
    2023    		   Mar. 31,
    2023
    Total Business:                              
    Total pets enrolled (at period end)   1,677,570       1,688,903       1,699,643       1,708,017       1,714,473       1,712,177       1,679,659       1,616,865  
    Subscription Business:                              
    Total subscription pets enrolled (at period end)   1,041,212       1,032,042       1,020,934       1,006,168       991,426       969,322       943,958       906,369  
    Monthly average revenue per pet $ 76.02     $ 74.27     $ 71.72     $ 69.79     $ 67.07     $ 65.82     $ 64.41     $ 63.58  
    Average pet acquisition cost (PAC) $ 261     $ 243     $ 231     $ 207     $ 217     $ 212     $ 236     $ 247  
    Average monthly retention   98.25 %     98.29 %     98.34 %     98.41 %     98.49 %     98.55 %     98.61 %     98.65 %
                                                                   
     
    The following table reflects the reconciliation of cash provided by operating activities to free cash flow (in thousands):
                   
      Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
    Net cash provided by operating activities $ 23,701     $ 17,507     $ 48,287     $ 18,638  
    Purchases of property, equipment, and internal-use software   (1,858 )     (3,970 )     (9,716 )     (18,280 )
    Free cash flow $ 21,843     $ 13,537     $ 38,571     $ 358  
                                   
     
    The following table reflects the reconciliation between GAAP and non-GAAP measures (in thousands except percentages):
        Three Months Ended December 31,   Year Ended December 31,
          2024       2023       2024       2023  
    Veterinary invoice expense   $ 245,663     $ 217,739     $ 949,148     $ 831,055  
    Less:                
    Stock-based compensation expense(1)     (800 )     (885 )     (3,335 )     (3,450 )
    Other business cost of paying veterinary invoices(4)     (85,378 )     (77,572 )     (324,720 )     (287,858 )
    Subscription cost of paying veterinary invoices (non-GAAP)   $ 159,485     $ 139,282     $ 621,093     $ 539,747  
    % of subscription revenue     70.0 %     72.7 %     72.5 %     75.7 %
                     
    Other cost of revenue   $ 38,721     $ 38,054     $ 157,738     $ 146,534  
    Less:                
    Stock-based compensation expense(1)     (476 )     (386 )     (1,955 )     (1,544 )
    Other business variable expenses(4)     (17,336 )     (19,301 )     (75,050 )     (75,756 )
    Subscription variable expenses (non-GAAP)   $ 20,909     $ 18,367     $ 80,733     $ 69,234  
    % of subscription revenue     9.2 %     9.6 %     9.4 %     9.7 %
                     
    Technology and development expense   $ 8,172     $ 5,969     $ 31,255     $ 21,403  
    General and administrative expense     16,828       13,390       63,731       60,207  
    Less:                
    Stock-based compensation expense(1)     (5,277 )     (3,797 )     (19,742 )     (19,869 )
    Non-recurring transaction or restructuring expenses(2)     —       —       —       (4,175 )
    Development expenses(3)     (1,322 )     (1,683 )     (5,624 )     (5,100 )
    Fixed expenses (non-GAAP)   $ 18,401     $ 13,879     $ 69,620     $ 52,466  
    % of total revenue     5.5 %     4.7 %     5.4 %     4.7 %
                     
    New pet acquisition expense   $ 18,354     $ 17,189     $ 71,379     $ 77,372  
    Less:                
    Stock-based compensation expense(1)     (1,482 )     (1,567 )     (6,908 )     (7,000 )
    Other business pet acquisition expense(4)     (8 )     (77 )     (39 )     (200 )
    Subscription acquisition cost (non-GAAP)   $ 16,864     $ 15,545     $ 64,432     $ 70,172  
    % of subscription revenue     7.4 %     8.1 %     7.5 %     9.8 %
                     
    (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 $0.3 million and $1.5 million for the three and twelve months ended December 31, 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 December 31,   Year Ended December 31,
        2024       2023       2024       2023  
    Operating income (loss) $ 348     $ 408     $ (9,514 )   $ (40,659 )
    Non-GAAP expense adjustments              
    Acquisition cost   16,872       15,622       64,471       70,372  
    Stock-based compensation expense(1)   8,035       6,636       31,940       31,864  
    Development expenses(3)   1,322       1,683       5,624       5,100  
    Depreciation and amortization   3,924       3,029       16,466       12,474  
    Goodwill impairment charges   5,299       —       5,299       —  
    Non-recurring transaction or restructuring expenses(2)   —       —       —       4,175  
    Gain (loss) from investment in joint venture   2       (79 )     (182 )     (219 )
    Total adjusted operating income (non-GAAP) $ 35,798     $ 27,457     $ 114,468     $ 83,545  
                   
    Subscription Business:              
    Subscription operating income (loss) $ 2,995     $ 1,300     $ (1,118 )   $ (35,994 )
    Non-GAAP expense adjustments              
    Acquisition cost   16,864       15,545       64,432       70,172  
    Stock-based compensation expense(1)   6,263       5,006       24,985       24,488  
    Development expenses(3)   893       1,090       3,745       3,281  
    Depreciation and amortization   2,650       1,961       10,970       8,021  
    Goodwill impairment charges   5,299       —       5,299       —  
    Non-recurring transaction or restructuring expenses(2)   —       —       —       218  
    Subscription adjusted operating income (non-GAAP) $ 34,964     $ 24,902     $ 108,313     $ 70,186  
                   
    Other Business:      
    Other business operating income (loss) $ (2,649 )   $ (813 )   $ (8,214 )   $ (4,446 )
    Non-GAAP expense adjustments              
    Acquisition cost   8       77       39       200  
    Stock-based compensation expense(1)   1,772       1,630       6,955       7,376  
    Development expenses(3)   429       593       1,879       1,819  
    Depreciation and amortization   1,274       1,068       5,496       4,453  
    Non-recurring transaction or restructuring expenses(2)   —       —       —       3,957  
    Other business adjusted operating income (non-GAAP) $ 834     $ 2,555     $ 6,155     $ 13,359  
                   
    (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 $0.3 million and $1.5 million for the three and twelve months ended December 31, 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 December 31,   Year Ended December 31,
        2024       2023       2024       2023  
    Subscription revenue $ 227,783     $ 191,537     $ 856,521     $ 712,906  
    Subscription cost of paying veterinary invoices   159,485       139,281       621,093       539,746  
    Subscription variable expenses   20,909       18,367       80,733       69,234  
    Subscription fixed expenses*   12,425       8,987       46,382       33,740  
    Subscription adjusted operating income (non-GAAP) $ 34,964     $ 24,902     $ 108,313     $ 70,186  
    Other business revenue   109,524       104,320       429,163       395,699  
    Other business cost of paying veterinary invoices   85,378       77,572       324,720       287,858  
    Other business variable expenses   17,336       19,301       75,050       75,756  
    Other business fixed expenses*   5,976       4,892       23,238       18,726  
    Other business adjusted operating income (non-GAAP) $ 834     $ 2,555     $ 6,155     $ 13,359  
    Revenue   337,307       295,857       1,285,684       1,108,605  
    Cost of paying veterinary invoices   244,863       216,854       945,813       827,605  
    Variable expenses   38,245       37,668       155,783       144,990  
    Fixed expenses*   18,401       13,879       69,620       52,466  
    Total business adjusted operating income (non-GAAP) $ 35,798     $ 27,457     $ 114,468     $ 83,545  
                   
    As a percentage of revenue: Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
    Subscription revenue   100.0 %     100.0 %     100.0 %     100.0 %
    Subscription cost of paying veterinary invoices   70.0 %     72.7 %     72.5 %     75.7 %
    Subscription variable expenses   9.2 %     9.6 %     9.4 %     9.7 %
    Subscription fixed expenses*   5.5 %     4.7 %     5.4 %     4.7 %
    Subscription adjusted operating income (non-GAAP)   15.3 %     13.0 %     12.6 %     9.8 %
                   
    Other business revenue   100.0 %     100.0 %     100.0 %     100.0 %
    Other business cost of paying veterinary invoices   78.0 %     74.4 %     75.7 %     72.7 %
    Other business variable expenses   15.8 %     18.5 %     17.5 %     19.1 %
    Other business fixed expenses*   5.5 %     4.7 %     5.4 %     4.7 %
    Other business adjusted operating income (non-GAAP)   0.8 %     2.4 %     1.4 %     3.4 %
                   
    Revenue   100.0 %     100.0 %     100.0 %     100.0 %
    Cost of paying veterinary invoices   72.6 %     73.3 %     73.6 %     74.7 %
    Variable expenses   11.3 %     12.7 %     12.1 %     13.1 %
    Fixed expenses*   5.5 %     4.7 %     5.4 %     4.7 %
    Total business adjusted operating income (non-GAAP)   10.6 %     9.3 %     8.9 %     7.5 %
                   
    *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 goodwill impairment charges, 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):
                                   
      Year Ended December 31,                        
        2024       2023                          
    Net loss $ (9,633 )   $ (44,693 )                        
    Excluding:                              
    Stock-based compensation expense   31,942       31,864                          
    Depreciation and amortization expense   16,466       12,474                          
    Interest income   (12,411 )     (9,011 )                        
    Interest expense   14,498       12,077                          
    Income tax benefit   (5 )     (342 )                        
    Goodwill impairment charges   5,299       —                          
    Non-recurring transaction or restructuring expenses   —       4,175                          
    Gain from equity method investment   (33 )     (110 )                        
    Adjusted EBITDA $ 46,123     $ 6,434                          
                                   
      Three Months Ended
      Dec. 31,
    2024    		   Sep. 30,
    2024    		   Jun. 30,
    2024    		   Mar. 31,
    2024    		   Dec. 31,
    2023    		   Sep. 30,
    2023    		   Jun. 30,
    2023    		   Mar. 31,
    2023
    Net income (loss) $ 1,656     $ 1,425     $ (5,862 )   $ (6,852 )   $ (2,163 )   $ (4,036 )   $ (13,714 )   $ (24,780 )
    Excluding:                              
    Stock-based compensation expense   8,036       8,127       8,381       7,398       6,636       6,585       6,503       12,140  
    Depreciation and amortization expense   3,924       4,381       4,376       3,785       3,029       2,990       3,253       3,202  
    Interest income   (2,999 )     (3,232 )     (3,135 )     (3,045 )     (2,842 )     (2,389 )     (2,051 )     (1,729 )
    Interest expense   3,427       3,820       3,655       3,596       3,697       3,053       2,940       2,387  
    Income tax expense (benefit)   38       39       (44 )     (38 )     130       (43 )     (238 )     (191 )
    Goodwill impairment charges   5,299       —       —       —       —       —       —       —  
    Non-recurring transaction or restructuring expenses   —       —       —       —       —       8       65       4,102  
    Gain from equity method investment   —       (33 )     —       —       —       (110 )     —       —  
    Adjusted EBITDA $ 19,381     $ 14,527     $ 7,371     $ 4,844     $ 8,487     $ 6,058     $ (3,242 )   $ (4,869 )
     

    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/1313fc50-df34-432e-8f6b-7dd236de3476

    PDF available: http://ml.globenewswire.com/Resource/Download/361c6270-7516-4b4f-a8b7-51c217d753c3

    The MIL Network –

  • MIL-OSI: Enovix Announces Fourth Quarter and Full Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    FREMONT, Calif., Feb. 19, 2025 (GLOBE NEWSWIRE) — Enovix Corporation (“Enovix”) (Nasdaq: ENVX), a global high-performance battery company, announced today financial results for the fourth quarter and full year 2024, which included the summary below from its President and CEO, Dr. Raj Talluri.

    Fellow Shareholders,

    In the fourth quarter of 2024, we achieved key milestones in manufacturing, technology, and sales, setting the stage for a breakout year in 2025. We are focused on launching our first smartphone battery and converting our IoT pipeline into contracted backlog. Customers across multiple industries are acknowledging the readiness of our manufacturing capabilities, which are coming online at the perfect time to meet strong demand for our high energy-density solutions and diversified supply chain.

    Other recent highlights include:

    • Record Revenue: Fourth quarter revenues were a record $9.7 million, near the high end of our guidance. Full year 2024 revenues were also a record of $23.1 million, up 202%, from $7.6 million in 2023.
    • Smartphone Batteries: We shipped early engineering samples to our lead smartphone OEM, with results confirming that critical safety tests are passing. Additionally, cell dimensions were received in continuation of our agreement. We remain on track for commercial smartphone battery launches in 2025, pending successful completion of customer qualification. Furthermore, a new OEM customer submitted first samples purchase order, expanding our active engagements to 7 of the top 8 smartphone OEMs.
    • XR Batteries: Secured a landmark prepaid purchase order from a global technology leader in Artificial Intelligence (AI) and immersive technologies, reserving dedicated production capacity for next-generation smart eyewear. First samples, featuring our custom cells from Fab2 integrated into packs in our Korea facility, were delivered to the customer earlier this month.
    • Manufacturing Readiness: Fab2 in Malaysia completed Site Acceptance Testing (SAT) for the High-Volume Manufacturing (HVM) line, a key milestone in our journey to scale production. Additionally, we were honored to host several customers at our factory in Malaysia, conducting detailed line tours. And multiple OEMs initiated formal factory audits to support their qualification processes.
    • Products: We successfully completed safety testing of EX-1M and performance results indicate that we are on track to meet targets for energy density, cycle life, and fast charging. And the first EX-2M samples from Fab2 were shipped to customers on schedule.
    • Capitalization: 2024 year-end cash and cash equivalents of $272.9 million and continued operating expense discipline provides optionality for funding additional HVM lines.

    2025 is off to a fast start, fueled by accelerating AI innovation and a shifting landscape that is driving OEMs to diversify their supply chains. As a leader in high-energy-density battery technology with manufacturing facilities in Korea and Malaysia, Enovix is well positioned to capitalize on these industry trends.

    A key strategic decision in 2024 was to invest in the emerging AI-enabled smart eyewear market by developing a battery cell tailored for this market. We believe this investment is now paying off, as our product is expected to launch as this market is gaining momentum. New estimates from IDC project the smart eyewear market will reach multiple tens of millions of units by 2028, driven by recent hardware and software ecosystem advancements, the growing adoption of AI applications, and the expanding use cases across consumer, enterprise and defense markets. A majority of America’s largest tech companies, along with several top-tier Asia-based OEMs, have announced smart eyewear products. However, one major bottleneck remains – no product today delivers resiliency to all-day usage with ever-increasing sensor, communications (WiFi, Bluetooth, cellular, and satellite), and computing demands. This presents a prime opportunity for Enovix. With our high-energy-density battery already developed, HVM ramping up, and many of the market’s key players based in our backyard of Silicon Valley, we believe we are well-positioned to lead in this space.

    In smartphones, the strong tailwinds we identified last quarter continue in 2025. OEMs are increasingly requesting batteries with capacities near 7,000 milliamp-hours to support the growing power demands of next-generation AI applications. Additionally, with smartphone penetration already at saturation levels, market leaders are intensifying their focus on product differentiation – particularly in regions outside the US, where competition is fierce. We believe that our EX-2M and upcoming EX-3M battery solutions align with evolving demands, reinforcing our role as a strategic partner to leading OEMs.

    A new industry trend that has emerged subsequent to our last shareholder letter is supply chain-driven demand, particularly in the defense sector. Soon after the US elections in November, we observed an increase in inbound interest from drone manufacturers and defense suppliers seeking battery solutions that comply with allied country supply chain requirements. As a reminder, a significant portion of our 2024 revenue came from sales of conventional graphite battery products to defense customers. Earlier this month, we secured a purchase order for samples from a new defense customer with over $1 billion in annual sales to the US military, focused on autonomous AI systems. While these developments are still evolving, we are optimistic about the potential upside.

    Business Update

    Manufacturing. We successfully completed our key fourth-quarter objectives on schedule, including SAT for the HVM line and shipping the first EX-2M samples. We also further improved yields across both the Agility and HVM lines, with incremental targets in place throughout the year that we believe will ensure readiness for smartphone mass production in the fourth quarter of 2025. Customer audits are now underway at our Malaysia facility. While preparing Fab2 for mass production remains our primary manufacturing focus in 2025, we are also prioritizing efforts to accelerate custom cell development timelines. Our initial success in the emerging smart eyewear market was made possible because we dedicated resources to making a new variant of EX-1M designed to fit within the confines of the glasses frames. As we scale, our ability to swiftly develop tailored solutions with precision manufacturing and latest chemistries will play a critical role in our success. Additionally, we continue to act in a disciplined manner to select the right customer opportunities to pursue for long-term growth.

    Commercialization. Our business team remains focused on smartphone mass production as the primary commercialization goal for 2025. In October of 2024, we took a major step toward this objective by executing a strategic partnership that outlined key milestones leading up to our entry into the smartphone market by late 2025. This agreement was followed by a purchase order in the fourth quarter of 2024 tied to one of those milestones, and in the first quarter of 2025 we received battery dimensions for a planned 2025 smartphone launch. Additionally, we secured a first purchase order for samples from a new global smartphone manufacturer, expanding our customer engagements to 7 of the top 8 smartphone OEMs.

    In addition to being focused on smartphone business, we are also being highly selective with IoT opportunities, prioritizing segments where our technology and global supply chain have a strong competitive advantage. Among these, smart eyewear emerged as a natural fit, and we are now in the process of developing custom cells for marquee customers. This quarter, we shipped our first samples to customers using our Korea-based packing capability that is now fully integrated with our silicon cell production out of Malaysia. Our first commercial shipments are scheduled to commence mid-year, and we are actively securing additional IoT purchase orders.

    In the EV space, we continue advancing development agreements with two of the world’s largest automotive OEMs. Consistent with our capital-efficient strategy, we remain focused on targeted collaborations that allow us to scale in this vertical while optimizing investment.

    Across these markets, our disciplined approach to commercialization ensures that we are not only securing near-term revenue opportunities but also building a foundation for long-term leadership in high-energy-density battery solutions.

    Products:

    Our battery technology continues to advance across multiple generations, with significant progress in safety and performance validation, customer sampling, and next-generation design. We successfully completed safety testing of EX-1M and performance results indicate that we are on track to meet targets for energy density, cycle life, and fast charging. For EX-2M, we delivered early engineering samples to OEMs across both smartphone and IoT markets and received positive feedback. Additionally, EX-2M has outperformed traditional graphite-based cells in select safety tests such as crush and impact tests. We are now refining our electrochemistry to further enhance performance metrics. Looking ahead, we have officially kicked off the design phase for EX-3M. As we continue refining key performance specifications, we are incorporating feedback from lead OEMs to ensure alignment with their evolving requirements. Our goal is to finalize the EX-3M design in early 2025, paving the way for our next-generation battery technology.

    These advancements reflect our commitment to delivering high-performance, high-energy-density battery solutions across multiple product categories, reinforcing our position as a leader in battery innovation.

    Financials: Revenue was $9.7 million in the fourth quarter of 2024, near the high end of our guidance range and up more than 30 percent year over year. A majority of revenues were from our conventional battery capacity in South Korea which is seeing a positive demand environment from defense customers and benefiting from increased collaboration with our US engineers. Our GAAP cost of revenue was $8.7 million in the fourth quarter of 2024 leading to the Company’s first ever positive gross margin which totaled $1.1 million or 11% of sales.

    Our GAAP operating expenses were $35.6 million in the fourth quarter of 2024 compared to $48.6 million in the third quarter, which reflects some of the expense reductions related to our shift of various functions to lower cost regions such as Malaysia and India. Our non-GAAP operating expenses were $24.3 million in the fourth quarter of 2024, down from $27.2 million in the previous quarter.

    Our GAAP net loss attributable to Enovix was $37.5 million in the fourth quarter of 2024, compared to $22.5 million in the previous quarter. As a reminder our GAAP net loss is impacted quarterly by changes in fair value of common stock warrants, which resulted in a $5.1 million expense in the fourth quarter compared to a $29.9 million benefit in the third quarter of 2024.  

    Adjusted EBITDA in the fourth quarter of 2024 was a loss of $11.7 million compared to an adjusted EBITDA loss of $21.6 million in the previous quarter. The sequential improvement was driven by positive gross margin, lower operating expenses and a $1.0 million increase in depreciation and amortization.

    Earnings per share loss in the fourth quarter of 2024 was $0.20 on a GAAP basis and $0.11 on a non-GAAP basis compared to third quarter earnings per share loss of $0.30 on a GAAP basis and $0.17 on a non-GAAP basis.

    We exited 2024 with $272.9 million of cash and cash equivalents following the receipts of approximately $107 million of net proceeds from an equity offering in the fourth quarter which was partially offset by $16.0 million used in operating activities and capital expenditures of $16.4 million during the quarter.

    A full reconciliation of our GAAP to non-GAAP results is available later in this report.

    Outlook

    For the first quarter of 2025, we expect revenue between $3.5 million and $5.5 million, a GAAP EPS loss of $0.23 to $0.29, an adjusted EBITDA loss of $21.0 million to $27.0 million, and a non-GAAP EPS loss of $0.15 to $0.21.

    Summary

    The top milestones we identified at the beginning of 2024 were achieving SAT for agility and our high-volume manufacturing lines in Malaysia and delivering samples of our leading smartphone batteries, EX-1M and EX-2M, to customers. Not only did we hit these top milestones, we also advanced relationships with market leaders in smartphones, AR/VR, and automotive industries. We believe that these relationships, supported by purchase orders and commercial launch schedules, provide a clear path for us to commence mass production in 2025.

    Conference Call Information

    Enovix will hold a video conference call at 2:00 PM PT / 5:00 PM ET today, February 19, 2025, to discuss the company’s business updates and financial results. To join the call, participants must use the following link to register: https://enovix-q4-2024.open-exchange.net/registration. This link will also be available via the Investor Relations section of the Enovix website at https://ir.enovix.com. An archived version of the call will be available on the Enovix website for one year at https://ir.enovix.com.

    About Enovix

    Enovix is on a mission to deliver high-performance batteries that unlock the full potential of technology products. Everything from IoT, mobile, and computing devices, to the vehicle you drive, needs a better battery. Enovix partners with OEMs worldwide to usher in a new era of user experiences. Our innovative, materials-agnostic approach to building a higher performing battery without compromising safety keeps us flexible and on the cutting-edge of battery technology innovation.

    Enovix is headquartered in Silicon Valley with facilities in India, Korea and Malaysia. For more information visit https://enovix.com and follow us on LinkedIn.

    Non-GAAP Financial Measures

    Non-GAAP operating expenses, EBITDA, Adjusted EBITDA, non-GAAP net loss per share, and other non-GAAP measures are intended as supplemental financial measures of our performance that provide an additional tool for investors to use in evaluating ongoing operating results, trends, and in comparing our financial measures with those of comparable companies.

    However, you should be aware that other companies may calculate similar non-GAAP measures differently. Non-GAAP financial measures have limitations, including that they exclude certain expenses that are required under GAAP, which adjustments reflect the exercise of judgment by management. Reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the tables at the end of this shareholder letter.

    While Enovix provides first quarter 2025 guidance for adjusted EBITDA loss and non-GAAP EPS loss, we are unable to provide without unreasonable effort a GAAP to non-GAAP reconciliation of these projected non-GAAP measures. Such qualitative reconciliation to the corresponding GAAP financial measure cannot be provided without unreasonable effort because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjustments that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to warrant liabilities and stock-based compensation. For the same reasons, we are unable to assess the probable significance of the unavailable information, which could have a material impact on our future GAAP financial results.

    Forward-Looking Statements

    This letter to shareholders contains 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. Forward-looking statements generally relate to future events or our future financial or operating performance and can be identified by words such as anticipate, believe, continue, could, estimate, expect, intend, may, might, plan, possible, potential, predict, project, setting the stage, should, would and similar expressions that convey uncertainty about future events or outcomes. Forward-looking statements in this letter to shareholders include, without limitation, out expected performance and results for the first quarter of 2025; that 2025 will be a breakout year; the timing for completion of customer qualification for and the launch of our first smartphone battery in 2025; our expectations regarding our ability to commence mass production in 2025 and full utilization of the first HVM line in 2026; our expectations regarding, and our ability to respond to, market and customer demand; our expectations regarding the level of customers’ interest in our high energy-density solutions and diversified supply chain, the demand for more energy dense batteries and the suitability of our products to address this demand, and the impact of artificial intelligence (“AI”) features on the foregoing; our ability to develop and deliver a battery cell tailored to the smart eyewear market, including our ability to deliver a battery that delivers a full day of usage on a single charge, and the anticipated benefits of our investments in these products and market; our anticipated commercial shipments of batteries for smart eyewear and other IoT products by mid-year 2025; our ability to convert our IoT pipeline into contracted backlog; projected improvements in our manufacturing and commercialization and R&D activities at Fab2, including the ability of the sales team to support the path to profitability by attracting demand across high-growth markets; our achievement of the milestones under our strategic partnership with a leading smartphone OEM; expectations relating to broader agreements with automative OEMs; our ability to successfully complete safety testing and customer qualification and our ability to and the timing of our entry into the smartphone market in 2025 with high-volume production from our Fab2 facility; our ability to meet our spec targets for energy density, cycle life and fast charging for our EX-1M cells; our ability to develop and commercialize customer and product-specific variants of our products and other tailored solutions for our customers; our expectations regarding EX-1M and EX-2M readiness and production, and predicted EX-3M battery solution production; our ability to meet goals for yield, throughput, energy density, cycle life and fast charging; the readiness of our production and manufacturing capabilities; our expectations with respect to the development and innovation of EX-2M and EX-3M, including our ability to finalize the EX-3M design in Q1 2025; our expectations regarding Fab2 in and its capacity to support multiple customer qualifications; our observations and expectations around supply chain-driven demand including in the defense sector, and interest from specific customer segments including drone manufacturers and military suppliers; the anticipated contributions of our R&D teams to support product innovation; our revenue funnel; our efforts in the portable electronics and EV markets, including the IoT, smartphone, smart eyewear and virtual reality categories; expectations regarding the reservation and use of production capacity and our ability to satisfy production expectations relating to next-generation smart eyewear; our ability to meet milestones and deliver on our objectives and expectations; our ability to fund additional HVM lines; anticipated increases in demand and interest in our products from manufacturers and suppliers seeking battery solutions that comply with allied country supply chain requirements; the implementation and expected success of our business model and growth strategy, including our focus on the addressable market categories in which we believe an improved battery drives a high value to the product and premium pricing for our solutions; our ability to manage our expenses and realize our annual cost savings goals; our ability to capitalize on industry trends, including trends relating to accelerating AI innovation; our ability to manage and achieve the benefits of our restructuring efforts, including continued operating expense discipline to facilitate funding for additional HVM lines at Fab2; and forecasts of our financial and performance metrics.

    Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties, including, without limitation, our ability to improve energy density, cycle life, fast charging, capacity roll off and gassing metrics among our products; our reliance on new and complex manufacturing processes for our operations; our ability to establish sufficient manufacturing operations and improve and optimize manufacturing processes to meet demand, source materials and establish supply relationships, and secure adequate funds to execute on our operational and strategic goals; our reliance on a manufacturing agreement with a Malaysia-based company for many of the facilities, procurement, personnel and financing needs of our operations; our operation in international markets, including our exposure to operational, financial and regulatory risks, as well as risks relating to geopolitical tensions and conflicts, including changes in trade policies and regulations; that we may be required to pay costs for components and raw materials that are more expensive than anticipated, including as a result of trade barriers, trade sanctions, export restrictions, tariffs, embargoes or shortages and other general economic and political conditions, which could delay the introduction of our products and negatively impact our business; our ability to adequately control the costs associated with our operations and the components necessary to build our lithium-ion battery cells; our lengthy sales cycles; the safety hazards associated with our batteries and the manufacturing process; a concentration of customers in the military market and our dependence on these customer accounts; certain unfavorable terms in our commercial agreements that may limit our ability to market our products; our ability to develop, market and sell our batteries, expectations relating to the performance of our batteries, and market acceptance of our products; our ability to accurately estimate the future supply and demand of our batteries, which could result in a variety of inefficiencies in our business; changes in consumer preferences or demands; changes in industry standards; the impact of technological development and competition; and global economic conditions, including tariffs, inflationary and supply chain pressures, and political, social, and economic instability, including as a result of armed conflict, war or threat of war, or trade and other international disputes that could disrupt supply or delivery of, or demand for, our products.

    For additional information on these risks and uncertainties and other potential factors that could cause actual results to differ from the results predicted, please refer to our filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our annual report on Form 10-K and quarterly reports on Form 10-Q and other documents that we have filed, or will file, with the SEC. Any forward-looking statements in this letter to shareholders speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    For media and investor inquiries, please contact:

    Enovix Corporation
    Robert Lahey
    Email: ir@enovix.com

     
    Enovix Corporation
    Condensed Consolidated Balance Sheets
    (Unaudited) (In Thousands, Except Share and per Share Amounts)
     
      December 29, 2024   December 31, 2023
    Assets      
    Current assets:      
    Cash and cash equivalents $ 272,869     $ 233,121  
    Short-term investments   —       73,694  
    Accounts receivable, net   4,566       909  
    Notes receivable, net   4       1,514  
    Inventory   7,664       8,737  
    Prepaid expenses and other current assets   9,903       5,202  
    Total current assets   295,006       323,177  
    Property and equipment, net   167,947       166,471  
    Customer relationship intangibles and other intangibles, net   36,394       42,168  
    Operating lease, right-of-use assets   13,479       15,290  
    Goodwill   12,217       12,098  
    Other assets, non-current   2,126       5,100  
    Total assets $ 527,169     $ 564,304  
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable $ 9,492     $ 21,251  
    Accrued expenses   19,843       13,976  
    Accrued compensation   8,228       10,731  
    Short-term debt   9,452       5,917  
    Deferred revenue   3,650       6,708  
    Other liabilities   3,036       2,435  
    Total current liabilities   53,701       61,018  
    Long-term debt, net   169,820       169,099  
    Warrant liability   28,380       42,900  
    Operating lease liabilities, non-current   13,293       15,594  
    Deferred revenue, non-current   3,774       3,774  
    Deferred tax liability   8,784       10,803  
    Other liabilities, non-current   14       13  
    Total liabilities   277,766       303,201  
    Commitments and Contingencies      
    Stockholders’ equity:      
    Common stock, $0.0001 par value; authorized shares of 1,000,000,000; issued and outstanding shares of 190,559,335 and 167,392,315 as of December 29, 2024 and December 31, 2023, respectively   19       17  
    Preferred stock, $0.0001 par value; authorized shares of 10,000,000; no shares issued or outstanding as of December 29, 2024 and December 31, 2023, respectively   —       —  
    Additional paid-in-capital   1,067,951       857,037  
    Accumulated other comprehensive loss   (143 )     (62 )
    Accumulated deficit   (821,086 )     (598,845 )
    Total Enovix’s stockholders’ equity   246,741       258,147  
    Non-controlling interest   2,662       2,956  
    Total equity   249,403       261,103  
    Total liabilities and equity $ 527,169     $ 564,304  
     
    Enovix Corporation
    Condensed Consolidated Statements of Operations
    (Unaudited)
    (In Thousands, Except Share and per Share Amounts)
     
      Quarters Ended   Fiscal Years Ended
      December 29,
    2024    		   December 31,
    2023    		   December 29,
    2024    		   December 31,
    2023
    Revenue $ 9,717     $ 7,381     $ 23,074     $ 7,644  
    Cost of revenue   8,665       19,769       25,119       63,061  
    Gross margin   1,052       (12,388 )     (2,045 )     (55,417 )
    Operating expenses:              
    Research and development   22,433       34,582       124,506       88,392  
    Selling, general and administrative   13,135       17,807       74,311       79,014  
    Impairment of equipment   —       —       —       4,411  
    Restructuring cost   —       —       41,807       3,021  
    Total operating expenses   35,568       52,389       240,624       174,838  
    Loss from operations   (34,516 )     (64,777 )     (242,669 )     (230,255 )
    Other income (expense):              
    Change in fair value of common stock warrants   (5,115 )     2,040       12,244       6,180  
    Interest income   2,587       4,128       12,332       14,070  
    Interest expense   (1,719 )     (1,629 )     (6,787 )     (4,456 )
    Other income (loss), net   2,463       (433 )     954       (304 )
    Total other income (loss), net   (1,784 )     4,106       18,743       15,490  
    Loss before income tax expense (benefit)   (36,300 )     (60,671 )     (223,926 )     (214,765 )
    Income tax expense (benefit)   1,152       (633 )     (1,392 )     (633 )
    Net loss   (37,452 )     (60,038 )     (222,534 )     (214,132 )
    Net gain (loss) attributable to non-controlling interests   13       (61 )     (293 )     (61 )
    Net loss attributable to Enovix $ (37,465 )   $ (59,977 )   $ (222,241 )   $ (214,071 )
                   
    Net loss per share attributable to Enovix shareholders, basic $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.35 )
    Weighted average number of common shares outstanding, basic   184,971,942       165,708,522       175,038,107       159,065,697  
    Net loss per share attributable to Enovix shareholders, diluted $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.38 )
    Weighted average number of common shares outstanding, diluted   184,971,942       165,708,522       175,038,107       159,575,555  
     
    Enovix Corporation
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)
     
    (In Thousands) Fiscal Years
        2024       2023  
    Cash flows used in operating activities:      
    Net loss $ (222,534 )   $ (214,132 )
    Adjustments to reconcile net loss to net cash used in operating activities      
    Depreciation, accretion and amortization   44,961       34,009  
    Stock-based compensation   58,837       69,452  
    Changes in fair value of common stock warrants   (12,244 )     (6,180 )
    Impairment and loss on disposals of long-lived assets   38,258       4,411  
    Others   448       703  
    Changes in operating assets and liabilities:      
    Accounts and notes receivables   (2,465 )     (370 )
    Inventory   1,073       4,509  
    Prepaid expenses and other assets   (2,211 )     (626 )
    Accounts payable   (7,970 )     6,096  
    Accrued expenses and compensation   3,016       1,977  
    Deferred revenue   (3,058 )     (3,860 )
    Deferred tax liability   (2,697 )     (813 )
    Other liabilities   (2,047 )     188  
    Net cash used in operating activities   (108,633 )     (104,636 )
    Cash flows from investing activities:      
    Purchase of property and equipment   (76,188 )     (61,795 )
    Routejade acquisition, net of cash and restricted cash acquired   —       (9,968 )
    Purchases of investments   (31,812 )     (138,343 )
    Maturities of investments   106,621       67,150  
    Net cash used in investing activities   (1,379 )     (142,956 )
    Cash flows from financing activities:      
    Proceeds from issuance of common stocks, net of issuance costs   107,192       —  
    Proceeds from issuance of Convertible Senior Notes and loans   4,572       172,500  
    Repayment of debt   (209 )     (69 )
    Payments of debt issuance costs   —       (5,917 )
    Purchase of Capped Calls   —       (17,250 )
    Payroll tax payments for shares withheld upon vesting of RSUs   (7,079 )     (3,931 )
    Proceeds from the exercise of stock options and issuance of common stock under ATM, net of issuance costs   44,771       11,928  
    Proceeds from issuance of common stock under employee stock purchase plan   1,506       2,350  
    Repurchase of unvested restricted common stock   (4 )     (26 )
    Net cash provided by financing activities   150,749       159,585  
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   (1,169 )     154  
    Change in cash, cash equivalents, and restricted cash   39,568       (87,853 )
    Cash and cash equivalents and restricted cash, beginning of period   235,123       322,976  
    Cash and cash equivalents, and restricted cash, end of period $ 274,691     $ 235,123  
           

    Net Loss Attributable to Enovix to Adjusted EBITDA Reconciliation

    While we prepare our consolidated financial statements in accordance with GAAP, we also utilize and present certain financial measures that are not based on GAAP. We refer to these financial measures as “non-GAAP” financial measures. In addition to our financial results determined in accordance with GAAP, we believe that EBITDA and Adjusted EBITDA are useful measures in evaluating its financial and operational performance distinct and apart from financing costs, certain non-cash expenses and non-operational expenses.

    These non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP. We endeavor to compensate for the limitation of the non-GAAP financial measures presented by also providing the most directly comparable GAAP measures.

    We use non-GAAP financial information to evaluate our ongoing operations and for internal planning, budgeting and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors in assessing its operating performance and comparing its performance with competitors and other comparable companies. You should review the reconciliations below but not rely on any single financial measure to evaluate our business.

    “EBITDA” is defined as earnings (net loss) attributable to Enovix adjusted for interest expense, income tax benefit, depreciation and amortization expense. “Adjusted EBITDA” includes additional adjustments to EBITDA such as stock-based compensation expense, change in fair value of common stock warrants, inventory step-up, impairment of equipment and other special items as determined by management which it does not believe to be indicative of its underlying business trends.

    Below is a reconciliation of net loss attributable to Enovix on a GAAP basis to the non-GAAP EBITDA and Adjusted EBITDA financial measures for the periods presented below (in thousands):

      Quarters Ended   Fiscal Years Ended
      December 29,
    2024    		   December 31,
    2023    		   December 29,
    2024    		   December 31,
    2023
    Net loss attributable to Enovix $ (37,465 )   $ (59,977 )   $ (222,241 )   $ (214,071 )
    Interest expense   1,719       1,629       6,787       4,456  
    Income tax expense (benefit)   1,152       (633 )     (1,392 )     (633 )
    Depreciation and amortization   7,544       24,009       44,961       34,009  
    EBITDA   (27,050 )     (34,972 )     (171,885 )     (176,239 )
    Stock-based compensation expense (1)   10,207       11,620       57,621       69,093  
    Change in fair value of common stock warrants   5,115       (2,040 )     (12,244 )     (6,180 )
    Inventory step-up   —       2,206       1,907       2,206  
    Impairment of equipment   —       —       —       4,411  
    Restructuring cost (1)   —       —       41,807       3,021  
    Acquisition cost   —       158       —       1,273  
    Adjusted EBITDA $ (11,728 )   $ (23,028 )   $ (82,794 )   $ (102,415 )

    ________________________
    (1)    $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 29, 2024. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 31, 2023.


    Free Cash Flow Reconciliation

    We define “Free Cash Flow” as (i) net cash from operating activities less (ii) capital expenditures, net of proceeds from disposals of property and equipment, all of which are derived from our Consolidated Statements of Cash Flow. The presentation of non-GAAP Free Cash Flow is not intended as an alternative measure of cash flows from operations, as determined in accordance with GAAP. We believe that this financial measure is useful to investors because it provides investors to view our performance using the same tool that we use to gauge our progress in achieving our goals and it is an indication of cash flow that may be available to fund investments in future growth initiatives. Below is a reconciliation of net cash used in operating activities to the Free Cash Flow financial measures for the periods presented below (in thousands):

      Fiscal Years
        2024       2023  
    Net cash used in operating activities $ (108,633 )   $ (104,636 )
    Capital expenditures   (76,188 )     (61,795 )
    Free Cash Flow $ (184,821 )   $ (166,431 )

    Other Non-GAAP Financial Measures Reconciliation
    (In Thousands, Except Share and per Share Amounts)

        Quarters Ended   Fiscal Years Ended
        December 29,
    2024    		   December 31,
    2023    		   December 29,
    2024    		   December 31,
    2023
    Revenue   $ 9,717     $ 7,381     $ 23,074     $ 7,644  
                     
    GAAP cost of revenue   $ 8,665     $ 19,769     $ 25,119     $ 63,061  
    Stock-based compensation expense     (124 )     (459 )     (320 )     (5,460 )
    Inventory step-up     —       (2,206 )     (1,907 )     (2,206 )
    Non-GAAP cost of revenue   $ 8,541     $ 17,104     $ 22,892     $ 55,395  
                     
    GAAP gross margin   $ 1,052     $ (12,388 )   $ (2,045 )   $ (55,417 )
    Stock-based compensation expense     124       459       320       5,460  
    Inventory step-up     —       2,206       1,907       2,206  
    Non-GAAP gross margin   $ 1,176     $ (9,723 )   $ 182     $ (47,751 )
                     
    GAAP research and development (R&D) expense   $ 22,433     $ 34,582     $ 124,506     $ 88,392  
    Stock-based compensation expense     (5,082 )     (5,337 )     (24,853 )     (27,409 )
    Amortization of intangible assets     (416 )     (277 )     (1,664 )     (277 )
    Non-GAAP R&D expense   $ 16,935     $ 28,968     $ 97,989     $ 60,706  
                     
    GAAP selling, general and administrative (SG&A) expense   $ 13,135     $ 17,807     $ 74,311     $ 79,014  
    Stock-based compensation expense     (5,001 )     (5,824 )     (32,448 )     (36,224 )
    Amortization of intangible assets     (773 )     (536 )     (3,077 )     (536 )
    Acquisition cost     —       (158 )     —       (1,273 )
    Non-GAAP SG&A expense   $ 7,361     $ 11,289     $ 38,786     $ 40,981  
                     
    GAAP operating expenses   $ 35,568     $ 52,389     $ 240,624     $ 174,838  
    Stock-based compensation expense included in R&D expense     (5,082 )     (5,337 )     (24,853 )     (27,409 )
    Stock-based compensation expense included in SG&A expense     (5,001 )     (5,824 )     (32,448 )     (36,224 )
    Amortization of intangible assets     (1,189 )     (813 )     (4,741 )     (813 )
    Impairment of equipment     —       —       —       (4,411 )
    Restructuring cost (1)     —       —       (41,807 )     (3,021 )
    Acquisition cost     —       (158 )     —       (1,273 )
    Non-GAAP operating expenses   $ 24,296     $ 40,257     $ 136,775     $ 101,687  

    ________________________
    (1)    $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 29, 2024. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 31, 2023.

        Quarters Ended   Fiscal Years Ended
        December 29,
    2024    		   December 31,
    2023    		   December 29,
    2024    		   December 31,
    2023
    GAAP loss from operations   $ (34,516 )   $ (64,777 )   $ (242,669 )   $ (230,255 )
    Stock-based compensation expense (1)     10,207       11,620       57,621       69,093  
    Amortization of intangible assets     1,189       813       4,741       813  
    Inventory step-up     —       2,206       1,907       2,206  
    Impairment of equipment     —       —       —       4,411  
    Restructuring cost (1)     —       —       41,807       3,021  
    Acquisition cost     —       158       —       1,273  
    Non-GAAP loss from operations   $ (23,120 )   $ (49,980 )   $ (136,593 )   $ (149,438 )
                     
    GAAP net loss attributable to Enovix   $ (37,465 )   $ (59,977 )   $ (222,241 )   $ (214,071 )
    Stock-based compensation expense (1)     10,207       11,620       57,621       69,093  
    Change in fair value of common stock warrants     5,115       (2,040 )     (12,244 )     (6,180 )
    Inventory step-up     —       2,206       1,907       2,206  
    Amortization of intangible assets     1,189       813       4,741       813  
    Impairment of equipment     —       —       —       4,411  
    Restructuring cost (1)     —       —       41,807       3,021  
    Acquisition cost     —       158       —       1,273  
    Non-GAAP net loss attributable to Enovix shareholders   $ (20,954 )   $ (47,220 )   $ (128,409 )   $ (139,434 )
                     
    GAAP net loss per share attributable to Enovix, basic   $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.35 )
    GAAP weighted average number of common shares outstanding, basic     184,971,942       165,708,522       175,038,107       159,065,697  
                     
    GAAP net loss per share attributable to Enovix, diluted   $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.38 )
    GAAP weighted average number of common shares outstanding, diluted     184,971,942       165,708,522       175,038,107       159,575,555  
                     
    Non-GAAP net loss per share attributable to Enovix, basic   $ (0.11 )   $ (0.28 )   $ (0.73 )   $ (0.88 )
    GAAP weighted average number of common shares outstanding, basic     184,971,942       165,708,522       175,038,107       159,065,697  
                     
    Non-GAAP net loss per share attributable to Enovix, diluted   $ (0.11 )   $ (0.28 )   $ (0.73 )   $ (0.87 )
    GAAP weighted average number of common shares outstanding, diluted     184,971,942       165,708,522       175,038,107       159,575,555  

    ________________________
    (1)    $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 29, 2024. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 31, 2023.

    The MIL Network –

  • MIL-OSI: PDF Solutions to Acquire secureWISE to Expand the Reach of its Semiconductor Manufacturing Data Platform

    Source: GlobeNewswire (MIL-OSI)

    SANTA CLARA, Calif., Feb. 19, 2025 (GLOBE NEWSWIRE) — PDF Solutions, Inc. (Nasdaq: PDFS) today announced it has entered into a definitive agreement to acquire secureWISE, LLC, the most widely used secure, remote connectivity solution in the semiconductor manufacturing equipment industry, from Telit IOT Solutions Inc.

    The secureWISE global network enables equipment manufacturers to bring up new equipment faster, provide operational support, and maximize the value derived from the equipment customers’ investments. It is currently used by over 100 equipment vendors to connect and control their tools located in over 190 semiconductor fabs and to manage the exchange of multiple petabytes of data annually.

    PDF Solutions empowers semiconductor companies to maximize their manufacturing effectiveness. The PDF Solutions platform breaks down data silos to enable engineers to uncover critical relationships across manufacturing and design, resulting in better process control, product screening, and equipment operations.

    As the semiconductor industry becomes more globally distributed, and as advanced devices rely on the integration of multiple chiplets into a single package, more collaboration and integration are required across the semiconductor industry. This collaboration needs to be executed securely with each participant controlling access to its intellectual property.

    Today, secureWISE customers have built applications on top of the secureWISE network to deliver equipment analytics. PDF Solutions expects the acquisition to accelerate equipment makers’ ability to derive value from equipment data by enabling them to leverage PDF Solutions’ Exensio analytics software.

    Beyond enabling equipment vendors to build equipment analytics at foundries, the acquisition of secureWISE is expected to dramatically expand the capability of PDF Solutions’ secure DEX OSAT network by allowing equipment makers, fab operators, and fabless companies to collaborate to optimize chip manufacturing and test.   

    “This acquisition extends PDF Solutions analytics for equipment makers and fabless to the factory manufacturing level, which allows them to generate value from AI,” said Dr. John Kibarian, President, CEO and co-founder of PDF Solutions. He continued, “We provide the leading analytics platform for semiconductor manufacturing, and with secureWISE, the PDF Solutions platform will also be able to help members of the semiconductor ecosystem collaborate through a secure, direct connection and control the manufacturing process down to the production equipment.”

    Mike Dempsey, Vice President of secureWISE LLC, said, “We believe PDF Solutions is the ideal partner to accelerate secureWISE’s evolution, ensuring we remain at the forefront of industry trends and ahead of our customers’ needs. This acquisition will strengthen our ability to anticipate, pioneer, and integrate a far richer suite of security, collaboration, and analytics capabilities into our platform. As data exchange and collaboration become increasingly relevant to the semiconductor industry, this acquisition will better position secureWISE to deliver maximum long-term benefit to its customers who have invested in our platform.”

    Under the terms of the definitive agreement, PDF Solutions will pay a cash amount of $130.0 million, subject to customary purchase price adjustments. The purchase price will be funded by a combination of cash on hand and $70M of new bank debt. The acquisition is subject to certain closing conditions and is expected to close in the first calendar quarter of 2025.

    TD Securities (USA) LLC acted as financial advisor and Latham & Watkins LLP acted as legal advisor to PDF Solutions.

    Updated Financial Outlook

    John Kibarian, CEO and President of PDF Solutions, said, “Assuming the transaction closes in the first quarter of 2025, and with purchase accounting adjustments, we would expect to achieve a full year 2025 revenue growth rate between 21% to 23% on year-over-year basis. Given that, we also expect to achieve 2025 gross margin in line with our corporate gross margin, our target model 20% operating margin, and for EPS to be slightly accretive.”

    Conference Call

    PDF Solutions will discuss this announcement on a live conference call beginning at 3:00 p.m. Pacific Time / 6:00 p.m. Eastern Time today. To participate in the live call, analysts and investors should pre-register at: https://register.vevent.com/register/BI9abfc7eadb2245c5ba00c59922fe6c87.

    Registrants will receive dial-in information and a unique passcode to access the call. We encourage participants to dial into the call ten minutes ahead of the scheduled time. The teleconference will also be webcast simultaneously on the Company’s website at https://ir.pdf.com/webcasts. A replay of the conference call webcast will be available after the call on the Company’s investor relations website. A copy of this press release will also be available on PDF Solutions’ website at News & PR Archives – PDF Solutions following the date of this release.

    Forward-Looking Statements

    The statements in this press release regarding the expected future financial results, benefits and synergies of the secureWISE acquisition on PDF Solution’s product offerings, and the expected closing of the secureWISE acquisition are forward looking and are subject to future events and circumstances. Actual results could differ materially from those expressed in these forward-looking statements. Risks and uncertainties that could cause results to differ materially include risks associated with: uncertainties with respect to the timing of the closing of the proposed transaction, including when and whether all conditions to closing will be satisfied; the failure of expected benefits from the proposed transaction to be realized or to be realized within the expected time period; uncertainties with respect to the future performance of secureWISE following an acquisition by PDF Solutions; PDF Solution’s ability to integrate secureWISE and its product and service offerings, the cost and schedule of new product development; continued adoption of the PDF Solution’s and secureWISE’s solutions by new and existing customers; the fact that operating costs and business disruption may be greater than expected following the public announcement or consummation of the proposed transaction; potential adverse reactions or changes to business or employee relationships, including those resulting from the public announcement or consummation of the proposed transaction; the incurrence of significant transaction costs related to the proposed transaction; unknown or understated liabilities of secureWISE; and other risks set forth in PDF Solutions’ periodic public filings with the Securities and Exchange Commission, including, without limitation, its Annual Reports on Form 10-K, most recently filed for the year ended December 31, 2023, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and amendments to such reports. The forward-looking statements made herein are made as of the date hereof, and PDF Solutions does not assume any obligation to update such statements nor the reasons why actual results could differ materially from those projected in such statements.

    About PDF Solutions 

    PDF Solutions (Nasdaq: PDFS) provides comprehensive data solutions designed to empower organizations across the semiconductor and electronics industry ecosystem to improve the yield and quality of their products and operational efficiency for increased profitability. The Company’s products and services are used by Fortune 500 companies across the semiconductor and electronics ecosystem to achieve smart manufacturing goals by connecting and controlling equipment, collecting data generated during manufacturing and test operations, and performing advanced analytics and machine learning to enable profitable, high-volume manufacturing. 

    Founded in 1991, PDF Solutions is headquartered in Santa Clara, California, with operations across North America, Europe, and Asia. The Company (directly or through one or more subsidiaries) is an active member of SEMI, INEMI, TPCA, IPC, the OPC Foundation, and DMDII. For the latest news and information about PDF Solutions or to find office locations, visit https://www.pdf.com. 

    Headquartered in Santa Clara, California, PDF Solutions also operates worldwide in Canada, China, France, Germany, Italy, Japan, Korea, Sweden, and Taiwan. For the Company’s latest news and information, visit https://www.pdf.com. 

    About secureWISE 

    The secureWISE platform enables secure and controlled remote connectivity, collaboration and service enablement in the semiconductor industry. The secureWISE suite of products and services is designed to give OEM suppliers role-based, real-time and on-demand access to their equipment that is installed at the production facilities of their customers, to deliver valuable operational insights, mission-critical performance, substantial time and cost savings, and new service revenue opportunities. As the only remote access tool built around the ISMI guidelines, secureWISE is installed in over 90% of the world’s 300mm semiconductor fabs and also numerous solar and chemical plants across the globe. https://www.telit.com/iot-platforms-overview/telit-securewise/ 

    PDF Solutions and the PDF Solutions logo are trademarks or registered trademarks of PDF Solutions, Inc. and/or its subsidiaries in the United States and other countries. Other trademarks used herein are the property of their owners. 

    Company Contacts:      
    Adnan Raza    Sonia Segovia 
    Chief Financial Officer    Investor Relations 
    Tel: (408) 516-0237    Tel: (408) 938-6491 
    Email: adnan.raza@pdf.com   Email: sonia.segovia@pdf.com 

    The MIL Network –

  • MIL-OSI: Tenaris Announces 2024 Fourth Quarter and Annual Results

    Source: GlobeNewswire (MIL-OSI)

    The financial and operational information contained in this press release is based on audited consolidated financial statements presented in U.S. dollars and prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard Board and adopted by the European Union, or IFRS. Additionally, this press release includes non-IFRS alternative performance measures i.e., EBITDA, Free Cash Flow, Net cash / debt and Operating working capital days. See exhibit I for more details on these alternative performance measures.

    LUXEMBOURG, Feb. 19, 2025 (GLOBE NEWSWIRE) — Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) today announced its results for the fourth quarter and year ended December 31, 2024 in comparison with its results for the fourth quarter and year ended December 31, 2023.

    Summary of 2024 Fourth Quarter Results

    (Comparison with third quarter of 2024 and fourth quarter of 2023)

      4Q 2024 3Q 2024 4Q 2023
    Net sales ($ million) 2,845 2,915 (2%) 3,415 (17%)
    Operating income ($ million) 558 537 4% 819 (32%)
    Net income ($ million) 519 459 13% 1,146 (55%)
    Shareholders’ net income ($ million) 516 448 15% 1,129 (54%)
    Earnings per ADS ($) 0.94 0.81 16% 1.92 (51%)
    Earnings per share ($) 0.47 0.40 16% 0.96 (51%)
    EBITDA* ($ million) 726 688 6% 975 (26%)
    EBITDA margin (% of net sales) 25.5% 23.6%   28.6%  
               

    *EBITDA in fourth quarter of 2024 includes a $67 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas. If this charge was not included EBITDA would have amounted to $659 million, or 23.2% of sales

    Net sales in the fourth quarter were more resilient than expected as we were able to reduce inventories and advance some shipments in the Middle East and Turkey, despite lower demand in Mexico, Argentina and Saudi Arabia. Our EBITDA declined 4% on a comparable basis with the margin supported by a favorable product mix which offset the effect of residual price declines in North America. Net income increased due to the partial reversal of the provision made in the second quarter for the ongoing litigation related to the acquisition of a participation in Usiminas jointly with our associate company, Ternium.

    During the quarter, our free cash flow amounted to $310 million and, after spending $299 million on dividends and $454 million on share buybacks, our net cash position declined to $3.6 billion at December 31, 2024.

    Summary of 2024 Annual Results

      12M 2024 12M 2023 Increase/(Decrease)
    Net sales ($ million) 12,524 14,869 (16%)
    Operating income ($ million) 2,419 4,316 (44%)
    Net income ($ million) 2,077 3,958 (48%)
    Shareholders’ net income ($ million) 2,036 3,918 (48%)
    Earnings per ADS ($) 3.61 6.65 (46%)
    Earnings per share ($) 1.81 3.32 (45%)
    EBITDA* ($ million) 3,052 4,865 (37%)
    EBITDA margin (% of net sales) 24.4% 32.7%  
           

    *EBITDA in 12M 2024 includes a $107 million loss from the provision for the ongoing litigation related to the acquisition of a participation in Usiminas. If this charge was not included EBITDA would have amounted to $3,159 million, or 25.2% of sales.

    Our sales in 2024 amounted to $12.5 billion with a decrease of 16% compared to 2023, primarily reflecting a decline in market prices for our tubular products used in onshore drilling applications in the Americas, lower drilling activity in Mexico and Colombia, lower shipments for pipeline projects in Argentina and lower sales of mechanical pipes in Europe. On the other hand, sales in the Middle East reached a record level as Saudi Aramco replenished OCTG stocks and increased gas drilling activity. EBITDA and margins also declined to $3.1 billion, being further affected by a $107 million loss from a provision for the ongoing litigation related to the acquisition of a participation in Usiminas. Net income amounted to $2.1 billion, or 17% of net sales, and was affected by a reduction of $43 million from our participation in Ternium related to the same case.

    Cash flow provided by operating activities amounted to $2.9 billion during 2024. This was used to fund capital expenditures of $694 million, with the remainder distributed to shareholders through dividend payments of $758 million and share buybacks for $1,440 million in the year. We maintained a net cash position of $3.6 billion at the end of December 2024.

    Change of Chief Financial Officer

    Effective as of May 2, 2025, Mr. Carlos Gomez Alzaga will assume the position of Chief Financial Officer, replacing Ms. Alicia Mondolo, who will retire from this role.

    Mr. Gomez Alzaga, who has more than 20 years of experience in Administration and Finance at Tenaris, previously served as Regional CFO for Mexico and Central America, and Economic and Financial Planning Director, among other positions, and currently holds the position of Regional CFO for Argentina and South America.

    Ms. Mondolo will continue to serve as senior advisor to our Chairman and CEO.

    Paolo Rocca and the Board of Tenaris would like to express their gratitude and appreciation for Alicia´s contribution as CFO of Tenaris and her 41 years of service within the Techint Group.

    Market Background and Outlook

    Oil prices remain relatively stable (as they have done over the past two years) with OPEC+ maintaining their voluntary production cuts in the face of limited global demand growth. European and US natural gas prices have, however, risen as relatively cold winter weather and the cutoff of Russian supply have led to a rapid drawdown in inventories.

    These prices and the continuing balance between oil and gas demand and supply should continue to support overall investment in oil and gas drilling activity, as well as OCTG demand, at current levels, albeit with some regional nuances.

    In North America, consolidation among major operators and drilling efficiencies led to a drop in US drilling activity last year, which has now stabilized, while OCTG consumption per rig has been increasing. In Latin America, drilling activity is increasing in Argentina, as investment in pipeline and LNG infrastructure investment for the Vaca Muerta shale moves forward, while, in Mexico, it has been affected by financial constraints on Pemex. In the Middle East, some reduction in oil drilling has taken place in Saudi Arabia while gas drilling has risen, and, in Abu Dhabi, oil drilling is increasing.

    OCTG reference prices in North America, which fell steadily for two years until the second half of 2024, have so far recovered by 9% from their August low and could rise further following the US government’s announced reset of Section 232 tariffs on all imports of steel products without exception.

    In this environment, we expect our sales and EBITDA (excluding extraordinary effects) in the first quarter to be in line with the previous one before rising moderately in the second quarter. Beyond that, likely changes in US tariffs and their possible ramifications on trade flows will introduce a new dynamic with a high level of uncertainty for costs and prices to our results.

    Annual Dividend Proposal

    Upon approval of the Company´s annual accounts in April 2025, the board of directors intends to propose, for approval of the annual general shareholders’ meeting to be held on May 6, 2025, the payment of a dividend per share of $0.83 (in an aggregate amount of approximately $0.9 billion), which would include the interim dividend per share of $0.27 (approximately $0.3 billion) paid in November 2024. If the annual dividend is approved by the shareholders, a dividend of $0.56 per share ($1.12 per ADS), or approximately $0.6 billion, will be paid according to the following timetable:

    • Payment date: May 21, 2025
    • Record date: May 20, 2025
    • Ex-dividend for securities listed in Europe and Mexico: May 19, 2025
    • Ex-dividend for securities listed in the United States: May 20, 2025

    Analysis of 2024 Fourth Quarter Results

    Tubes

    The following table indicates, for our Tubes business segment, sales volumes of seamless and welded pipes for the periods indicated below:

    Tubes Sales volume (thousand metric tons) 4Q 2024 3Q 2024
    		 4Q 2023
    Seamless 748 746 0% 760 (2%)
    Welded 164 191 (14%) 246 (33%)
    Total 913 937 (3%) 1,006 (9%)
               

    The following table indicates, for our Tubes business segment, net sales by geographic region, operating income and operating income as a percentage of net sales for the periods indicated below:

    Tubes 4Q 2024 3Q 2024 4Q 2023
    (Net sales – $ million)          
    North America 1,131 1,273 (11%) 1,501 (25%)
    South America 595 484 23% 590 1%
    Europe 341 280 22% 302 13%
    Asia Pacific, Middle East and Africa 629 754 (17%) 805 (22%)
    Total net sales ($ million) 2,695 2,790 (3%) 3,198 (16%)
    Services performed on third party tubes ($ million) 93 97 (4%) 34 176%
    Operating income ($ million) 533 527 1% 780 (32%)
    Operating margin (% of sales) 19.8% 18.9%   24.4%  
               

    Net sales of tubular products and services decreased 3% sequentially and 16% year on year. Sequentially volumes sold decreased 3% while average selling prices decreased less than 1% as a favorable product mix offset price declines in North America. Sequentially, in North America sales declined due to lower prices throughout the region and lower activity in Mexico. In South America sales increased as higher sales in Brazil with shipments to the Raia pipeline and a recovery of OCTG offset lower sales for pipelines and the industrial market in Argentina. In Europe sales increased due to shipments to the Sakarya offshore line pipe project and higher sales of OCTG in Turkey. In Asia Pacific, Middle East and Africa sales declined due to lower sales in Saudi Arabia upon completion of inventory replenishment program and lower activity, partially offset by an increase in sales to the UAE.

    Operating results from tubular products and services amounted to a gain of $533 million in the fourth quarter of 2024 compared to a gain of $527 million in the previous quarter and a gain of $780 million in the fourth quarter of 2023. This quarter’s operating income includes a $67 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas. Excluding this gain Tubes operating income would have amounted to $467 million (17.3% of sales) in the fourth quarter, a 12% sequential reduction following the decline in sales and margins. Margins declined due to the decline in prices and a more costly product mix.

    Others

    The following table indicates, for our Others business segment, net sales, operating income and operating income as a percentage of net sales for the periods indicated below:

    Others 4Q 2024 3Q 2024 4Q 2023
    Net sales ($ million) 150 125 20% 217 (31%)
    Operating income ($ million) 25 10 156% 39 (36%)
    Operating margin (% of sales) 16.8% 7.9%   18.1%  
               

    Net sales of other products and services increased 20% sequentially and decreased 31% year on year. Sequentially, sales increased mainly due to higher sales of oil services in Argentina and coiled tubing.

    Selling, general and administrative expenses, or SG&A, amounted to $446 million, or 15.7% of net sales, in the fourth quarter of 2024, compared to $454 million, 15.6% in the previous quarter and $471 million, 13.8% in the fourth quarter of 2023. Sequentially, the decline in SG&A is mainly due to lower shipment costs due to a reduction in volumes shipped.

    Other operating results amounted to a net gain of $81 million in the fourth quarter of 2024, compared to a gain of $11 million in the previous quarter and a $5 million loss in the fourth quarter of 2023. The fourth quarter of 2024 includes a $67 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas.

    Financial results amounted to a gain of $48 million in the fourth quarter of 2024, compared to a gain of $48 million in the previous quarter and a gain of $93 million in the fourth quarter of 2023. Financial result of the quarter is mainly attributable to a $42 million net finance income from the net return of our portfolio investments.

    Equity in earnings of non-consolidated companies generated a gain of $35 million in the fourth quarter of 2024, compared to a gain of $8 million in the previous quarter and a gain of $57 million in the fourth quarter of 2023. These results are mainly derived from our participation in Ternium (NYSE:TX). During the fourth quarter of 2024 the result from Ternium´s investment includes a $43 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas.

    Income tax charge amounted to $123 million in the fourth quarter of 2024, compared to $134 million in the previous quarter and $177 million in the fourth quarter of 2023.

    Cash Flow and Liquidity of 2024 Fourth Quarter

    Net cash generated by operating activities during the fourth quarter of 2024 was $492 million, compared to $552 million in the previous quarter and $0.8 billion in the fourth quarter of 2023. During the fourth quarter of 2024 cash generated by operating activities includes a net working capital increase of $37 million.

    With capital expenditures of $182 million, our free cash flow amounted to $310 million during the quarter. Following a dividend payment of $299 million and share buybacks of $454 million in the quarter, our net cash position amounted to $3.6 billion at December 31, 2024.

    Analysis of 2024 Annual Results

    The following table shows our net sales by business segment for the periods indicated below:

    Net sales ($ million) 12M 2024
    		 12M 2023
    		 Increase/(Decrease)
    Tubes 11,907 95% 14,185 95% (16%)
    Others 617 5% 684 5% (10%)
    Total 12,524   14,869   (16%)
               

    Tubes

    The following table indicates, for our Tubes business segment, sales volumes of seamless and welded pipes for the periods indicated below:

    Tubes Sales volume (thousand metric tons) 12M 2024 12M 2023 Increase/(Decrease)
    Seamless 3,077 3,189 (4%)
    Welded 852 953 (11%)
    Total 3,928 4,141 (5%)
           

    The following table indicates, for our Tubes business segment, net sales by geographic region, operating income and operating income as a percentage of net sales for the periods indicated below:

    Tubes 12M 2024 12M 2023 Increase/(Decrease)
    (Net sales – $ million)      
    North America 5,432 7,572 (28%)
    South America 2,294 3,067 (25%)
    Europe 1,143 1,055 8%
    Asia Pacific, Middle East and Africa 3,038 2,491 22%
    Total net sales ($ million) 11,907 14,185 (16%)
    Services performed on third party tubes ($ million) 484 165 193%
    Operating income ($ million) 2,305 4,183 (45%)
    Operating margin (% of sales) 19.4% 29.5%  
           

    Net sales of tubular products and services decreased 16% to $11,907 million in 2024, compared to $14,185 million in 2023 due to a 5% decrease in volumes and a 12% decrease in average selling prices, primarily reflecting a decline in market prices for our tubular products used in onshore drilling applications in the Americas, lower drilling activity in Mexico and Colombia, lower shipments for pipeline projects in Argentina and lower sales of mechanical pipes in Europe. On the other hand, sales in the Middle East reached a record level as Saudi Aramco replenished OCTG stocks and increased gas drilling activity.

    Operating results from tubular products and services amounted to a gain of $2,305 million in 2024 compared to a gain of $4,183 million in 2023. The decline in operating results is mainly due to the decline in average selling prices and the corresponding impact on sales and margins. Additionally, in 2024 our Tubes operating income includes a charge of $107 million from the provision for the ongoing litigation related to the acquisition of a participation in Usiminas, included in other operating expenses.

    Others

    The following table indicates, for our Others business segment, net sales, operating income and operating income as a percentage of net sales for the periods indicated below:

    Others 12M 2024 12M 2023 Increase/(Decrease)
    Net sales ($ million) 617 684 (10%)
    Operating income ($ million) 113 133 (15%)
    Operating margin (% of sales) 18.4% 19.5%  
           

    Net sales of other products and services decreased 10% to $617 million in 2024, compared to $684 million in 2023.

    Operating results from other products and services amounted to a gain of $113 million in 2024, compared to a gain of $133 million in 2023.

    Selling, general and administrative expenses, or SG&A, amounted to $1,905 million in 2024, representing 15.2% of sales, and $1,919 million in 2023, representing 12.9% of sales. SG&A expenses increased as a percentage of sales due to the 16% decline in revenues, mainly due to lower Tubes average selling prices and an increase of fixed costs.

    Other operating results amounted to a loss of $65 million in 2024, compared to a gain of $36 million in 2023. In 2024 we recorded a $107 million loss from provision for the ongoing litigation related to the acquisition of a participation in Usiminas. In 2023 other operating income includes a non-recurring gain of $33 million corresponding to the transfer of the awards related to the Company’s Venezuelan nationalized assets.

    Financial results amounted to a gain of $129 million in 2024, compared to a gain of $221 million in 2023. While net finance income increased due to a higher net financial position, net foreign exchange results decreased significantly in respect to the previous year.

    Equity in earnings of non-consolidated companies generated a gain of $9 million in 2024, compared to a gain of $95 million in 2023. These results were mainly derived from our equity investment in Ternium (NYSE:TX) and in 2024 were negatively affected by a $43 million loss from the provision for the ongoing litigation related to the acquisition of a participation in Usiminas on our Ternium investment.

    Income tax amounted to a charge of $480 million in 2024, compared to $675 million in 2023. The lower income tax charge mainly reflects the reduction in results at several subsidiaries.

    Cash Flow and Liquidity of 2024

    Net cash provided by operating activities in 2024 amounted to $2.9 billion (including a reduction in working capital of $287 million), compared to cash provided by operations of $4.4 billion (including a reduction in working capital of $182 million) in 2023.

    Capital expenditures amounted to $694 million in 2024, compared to $619 million in 2023. Free cash flow amounted to $2.2 billion in 2024, compared to $3.8 billion in 2023.

    Following dividend payments of $758 million and share buybacks of $1.4 billion during 2024, our net cash position amounted to $3.6 billion at December 31, 2024.

    Conference call

    Tenaris will hold a conference call to discuss the above reported results, on February 20, 2025, at 08:00 a.m. (Eastern Time). Following a brief summary, the conference call will be opened to questions.

    To listen to the conference please join through one of the following options:
    ir.tenaris.com/events-and-presentations or
    https://edge.media-server.com/mmc/p/p836i5mj 

    If you wish to participate in the Q&A session please register at the following link:

    https://register.vevent.com/register/BIb7ae4609ff564d95a338d90813a3c8cc 

    Please connect 10 minutes before the scheduled start time.

    A replay of the conference call will also be available on our webpage at: ir.tenaris.com/events-and-presentations

    Some of the statements contained in this press release are “forward-looking statements”. Forward-looking statements are based on management’s current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to future oil and gas prices and their impact on investment programs by oil and gas companies.

    Consolidated Income Statement

    (all amounts in thousands of U.S. dollars) Three-month period ended
    December 31,    		 Twelve-month period ended
    December 31,
      2024 2023 2024 2023
             
    Net sales 2,845,226 3,414,930 12,523,934 14,868,860
    Cost of sales (1,922,263) (2,120,591) (8,135,489) (8,668,915)
    Gross profit 922,963 1,294,339 4,388,445 6,199,945
    Selling, general and administrative expenses (445,988) (470,542) (1,904,828) (1,919,307)
    Other operating income 18,483 1,468 60,650 53,043
    Other operating expenses 62,919 (6,302) (125,418) (17,273)
    Operating income 558,377 818,963 2,418,849 4,316,408
    Finance income 51,331 63,621 242,319 213,474
    Finance cost (8,928) (19,759) (61,212) (106,862)
    Other financial results 5,777 49,249 (52,051) 114,365
    Income before equity in earnings of non-consolidated companies and income tax 606,557 912,074 2,547,905 4,537,385
    Equity in earnings of non-consolidated companies 35,283 56,859 8,548 95,404
    Income before income tax 641,840 968,933 2,556,453 4,632,789
    Income tax (122,709) 176,848 (479,680) (674,956)
    Income for the period 519,131 1,145,781 2,076,773 3,957,833
             
    Attributable to:        
    Shareholders’ equity 516,213 1,129,098 2,036,445 3,918,065
    Non-controlling interests 2,918 16,683 40,328 39,768
      519,131 1,145,781 2,076,773 3,957,833
             

    Consolidated Statement of Financial Position

    (all amounts in thousands of U.S. dollars) At December 31, 2024   At December 31, 2023
             
    ASSETS          
    Non-current assets          
    Property, plant and equipment, net 6,121,471     6,078,179  
    Intangible assets, net 1,357,749     1,377,110  
    Right-of-use assets, net 148,868     132,138  
    Investments in non-consolidated companies 1,543,657     1,608,804  
    Other investments 1,005,300     405,631  
    Deferred tax assets 831,298     789,615  
    Receivables, net 205,602 11,213,945   185,959 10,577,436
    Current assets          
    Inventories, net 3,709,942     3,921,097  
    Receivables and prepayments, net 179,614     181,368  
    Current tax assets 332,621     256,401  
    Contract assets 50,757     47,451  
    Trade receivables, net 1,907,507     2,480,889  
    Derivative financial instruments 7,484     9,801  
    Other investments 2,372,999     1,969,631  
    Cash and cash equivalents 675,256 9,236,180   1,637,821 10,504,459
    Total assets   20,450,125     21,081,895
    EQUITY          
    Shareholders’ equity   16,593,257     16,842,972
    Non-controlling interests   220,578     187,465
    Total equity   16,813,835     17,030,437
    LIABILITIES          
    Non-current liabilities          
    Borrowings 11,399     48,304  
    Lease liabilities 100,436     96,598  
    Derivative financial instruments –     255  
    Deferred tax liabilities 503,941     631,605  
    Other liabilities 301,751     271,268  
    Provisions 82,106 999,633   101,453 1,149,483
    Current liabilities          
    Borrowings 425,999     535,133  
    Lease liabilities 44,490     37,835  
    Derivative financial instruments 8,300     10,895  
    Current tax liabilities 366,292     488,277  
    Other liabilities 585,775     422,645  
    Provisions 119,344     35,959  
    Customer advances 206,196     263,664  
    Trade payables 880,261 2,636,657   1,107,567 2,901,975
    Total liabilities   3,636,290     4,051,458
    Total equity and liabilities   20,450,125     21,081,895
               

    Consolidated Statement of Cash Flows

      Three-month period ended
    December 31,    		 Twelve-month period ended
    December 31,
    (all amounts in thousands of U.S. dollars) 2024 2023 2024 2023
             
    Cash flows from operating activities        
    Income for the period 519,131 1,145,781 2,076,773 3,957,833
    Adjustments for:        
    Depreciation and amortization 167,781 156,347 632,854 548,510
    Bargain purchase gain – – (2,211) (3,162)
    Income tax accruals less payments (160) (277,559) (222,510) (143,391)
    Equity in earnings of non-consolidated companies (35,283) (56,859) (8,548) (95,404)
    Interest accruals less payments, net 7,246 (8,554) (1,067) (53,480)
    Provision for the ongoing litigation related to the acquisition of participation in Usiminas (87,975) – 89,371 –
    Changes in provisions (19,808) (651) (25,155) 21,284
    Reclassification of currency translation adjustment reserve – (878) – (878)
    Changes in working capital (36,604) (65,697) 286,917 182,428
    Others, including net foreign exchange differences (22,100) (56,195) 39,794 (18,667)
    Net cash provided by operating activities 492,228 835,735 2,866,218 4,395,073
             
    Cash flows from investing activities        
    Capital expenditures (181,870) (166,820) (693,956) (619,445)
    Changes in advance to suppliers of property, plant and equipment 5,092 834 (10,391) 1,736
    Acquisition of subsidiaries, net of cash acquired – (161,238) 31,446 (265,657)
    Other investments at fair value – (1,126) – (1,126)
    Additions to associated companies – – – (22,661)
    Loan to joint ventures (1,414) (1,092) (5,551) (3,754)
    Proceeds from disposal of property, plant and equipment and intangible assets 9,646 3,858 28,963 12,881
    Dividends received from non-consolidated companies 20,674 25,268 73,810 68,781
    Changes in investments in securities 458,407 740,153 (821,478) (1,857,272)
    Net cash provided by (used in) investing activities 310,535 439,837 (1,397,157) (2,686,517)
             
    Cash flows from financing activities        
    Dividends paid (299,230) (235,128) (757,786) (636,511)
    Dividends paid to non-controlling interest in subsidiaries – – (5,862) (18,967)
    Changes in non-controlling interests 28 – 1,143 3,772
    Acquisition of treasury shares (454,462) (213,739) (1,439,589) (213,739)
    Payments of lease liabilities (17,248) (15,524) (68,574) (51,492)
    Proceeds from borrowings 344,222 365,455 1,870,666 1,723,677
    Repayments of borrowings (382,656) (406,774) (1,999,427) (1,931,747)
    Net cash used in financing activities (809,346) (505,711) (2,399,429) (1,125,007)
             
    (Decrease) increase in cash and cash equivalents (6,583) 769,861 (930,368) 583,549
             
    Movement in cash and cash equivalents        
    At the beginning of the year 681,306 864,012 1,616,597 1,091,433
    Effect of exchange rate changes (13,925) (17,276) (25,431) (58,385)
    (Decrease) increase in cash and cash equivalents (6,583) 769,861 (930,368) 583,549
    At December 31, 660,798 1,616,597 660,798 1,616,597
             

    Exhibit I – Alternative performance measures

    Alternative performance measures should be considered in addition to, not as substitute for or superior to, other measures of financial performance prepared in accordance with IFRS.

    EBITDA, Earnings before interest, tax, depreciation and amortization.

    EBITDA provides an analysis of the operating results excluding depreciation and amortization and impairments, as they are recurring non-cash variables which can vary substantially from company to company depending on accounting policies and the accounting value of the assets. EBITDA is an approximation to pre-tax operating cash flow and reflects cash generation before working capital variation. EBITDA is widely used by investors when evaluating businesses (multiples valuation), as well as by rating agencies and creditors to evaluate the level of debt, comparing EBITDA with net debt.

    EBITDA is calculated in the following manner:

    EBITDA = Net income for the period + Income tax charges +/- Equity in Earnings (losses) of non-consolidated companies +/- Financial results + Depreciation and amortization +/- Impairment charges/(reversals).

    EBITDA is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) Three-month period ended
    December 31,    		 Twelve-month period ended
    December 31,
      2024 2023 2024 2023
    Income for the period 519,131 1,145,781 2,076,773 3,957,833
    Income tax charge / (credit) 122,709 (176,848) 479,680 674,956
    Equity in earnings of non-consolidated companies (35,283) (56,859) (8,548) (95,404)
    Financial results (48,180) (93,111) (129,056) (220,977)
    Depreciation and amortization 167,781 156,347 632,854 548,510
    EBITDA 726,158 975,310 3,051,703 4,864,918
             

    Free Cash Flow

    Free cash flow is a measure of financial performance, calculated as operating cash flow less capital expenditures. FCF represents the cash that a company is able to generate after spending the money required to maintain or expand its asset base.

    Free cash flow is calculated in the following manner:

    Free cash flow = Net cash (used in) provided by operating activities – Capital expenditures.

    Free cash flow is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) Three-month period ended
    December 31,    		 Twelve-month period ended
    December 31,
      2024 2023 2024 2023
    Net cash provided by operating activities 492,228 835,735 2,866,218 4,395,073
    Capital expenditures (181,870) (166,820) (693,956) (619,445)
    Free cash flow 310,358 668,915 2,172,262 3,775,628
             

    Net Cash / (Debt)

    This is the net balance of cash and cash equivalents, other current investments and fixed income investments held to maturity less total borrowings. It provides a summary of the financial solvency and liquidity of the company. Net cash / (debt) is widely used by investors and rating agencies and creditors to assess the company’s leverage, financial strength, flexibility and risks.

    Net cash/ debt is calculated in the following manner:

    Net cash = Cash and cash equivalents + Other investments (Current and Non-Current)+/- Derivatives hedging borrowings and investments – Borrowings (Current and Non-Current).

    Net cash/debt is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) At December 31,
      2024 2023
    Cash and cash equivalents 675,256 1,637,821
    Other current investments 2,372,999 1,969,631
    Non-current investments 998,251 398,220
    Current borrowings (425,999) (535,133)
    Non-current borrowings (11,399) (48,304)
    Net cash / (debt) 3,609,108 3,422,235
         

    Operating working capital days

    Operating working capital is the difference between the main operating components of current assets and current liabilities. Operating working capital is a measure of a company’s operational efficiency, and short-term financial health.

    Operating working capital days is calculated in the following manner:

    Operating working capital days = [(Inventories + Trade receivables – Trade payables – Customer advances) / Annualized quarterly sales ] x 365.

    Operating working capital days is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) Three-month period ended December 31,
      2024 2023
    Inventories 3,709,942 3,921,097
    Trade receivables 1,907,507 2,480,889
    Customer advances (206,196) (263,664)
    Trade payables (880,261) (1,107,567)
    Operating working capital 4,530,992 5,030,755
    Annualized quarterly sales 11,380,904 13,659,720
    Operating working capital 145 134
         

    Giovanni Sardagna        
    Tenaris
    1-888-300-5432
    www.tenaris.com

    The MIL Network –

  • MIL-OSI: Ansys Announces Q4 and FY 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    / Q4 2024 Results

    • Revenue of $882.2 million
    • GAAP diluted earnings per share of $3.21 and non-GAAP diluted earnings per share of $4.44
    • GAAP operating profit margin of 40.3% and non-GAAP operating profit margin of 53.3%
    • Operating cash flows of $258.0 million and unlevered operating cash flows of $266.8 million
    • Annual contract value (ACV) of $1,094.6 million

    /FY 2024 Results

    • Revenue of $2,544.8 million
    • GAAP diluted earnings per share of $6.55 and non-GAAP diluted earnings per share of $10.91
    • GAAP operating profit margin of 28.2% and non-GAAP operating profit margin of 45.7%
    • Operating cash flows of $795.7 million and unlevered operating cash flows of $834.6 million
    • ACV of $2,563.0 million
    • Deferred revenue and backlog of $1,718.3 million on December 31, 2024

    PITTSBURGH, Feb. 19, 2025 (GLOBE NEWSWIRE) — ANSYS, Inc. (NASDAQ: ANSS), today reported fourth quarter 2024 revenue of $882.2 million, an increase of 10% in reported currency, or 11% in constant currency, when compared to the fourth quarter of 2023. For FY 2024, revenue growth was 12% in reported currency, or 13% in constant currency, when compared to FY 2023. For the fourth quarter of 2024, the Company reported diluted earnings per share of $3.21 and $4.44 on a GAAP and non-GAAP basis, respectively, compared to $3.14 and $3.94 on a GAAP and non-GAAP basis, respectively, for the fourth quarter of 2023. For FY 2024, the Company reported diluted earnings per share of $6.55 and $10.91 on a GAAP and non-GAAP basis, respectively, compared to $5.73 and $8.80 on a GAAP and non-GAAP basis, respectively, for FY 2023. Additionally, the Company reported fourth quarter and FY 2024 ACV growth of 15% and 11% in reported currency, respectively, or 16% and 13% in constant currency, respectively, when compared to the fourth quarter and FY 2023. Fourth quarter 2024 ACV of $1.1 billion contributed 43% of the full year 2024 ACV while Q1, Q2 and Q3 each contributed 16%, 20% and 21%, respectively. The Company expects double-digit FY 2025 ACV growth.

    As previously announced, on January 15, 2024, Ansys entered into a definitive agreement with Synopsys, Inc. (“Synopsys”) under which Synopsys will acquire Ansys. As previously announced by Synopsys, Ansys and Synopsys have received conditional clearance from the European Commission. The U.K. Competition and Markets Authority provisionally accepted our remedies towards a transaction approval in Phase 1. The State Administration for Market Regulation of the People’s Republic of China has officially accepted our filing, and its review of the proposed transaction is in process. We continue to work with the regulators in other relevant jurisdictions to conclude their reviews. The transaction is anticipated to close in the first half of 2025, subject to the receipt of required regulatory approvals and other customary closing conditions. As previously announced, in light of the pending transaction with Synopsys, Ansys has suspended quarterly earnings conference calls and no longer provides quarterly or annual guidance.

    The non-GAAP financial results highlighted represent non-GAAP financial measures. Reconciliations of these measures to the comparable GAAP measures can be found later in this release.
     

    / Summary of Financial Results

    Ansys’ fourth quarter and fiscal year (FY) 2024 and 2023 financial results are presented below. The 2024 and 2023 non-GAAP results exclude the income statement effects of stock-based compensation, excess payroll taxes related to stock-based compensation, amortization of acquired intangible assets, expenses related to business combinations and adjustments for the income tax effect of the excluded items.

    Our results are as follows:

      GAAP
    (in thousands, except per share data and percentages) Q4 QTD
    2024    		   Q4 QTD
    2023    		   % Change   FY
    2024    		   FY
    2023    		   % Change
    Revenue $ 882,174     $ 805,108     9.6 %   $ 2,544,809     $ 2,269,949     12.1 %
    Net income $ 282,688     $ 274,762     2.9 %   $ 575,692     $ 500,412     15.0 %
    Diluted earnings per share $ 3.21     $ 3.14     2.2 %   $ 6.55     $ 5.73     14.3 %
    Gross margin   91.8 %     91.3 %         89.0 %     88.0 %    
    Operating profit margin   40.3 %     41.4 %         28.2 %     27.6 %    
    Effective tax rate   21.3 %     15.4 %         19.8 %     15.5 %    
                                           
      Non-GAAP
    (in thousands, except per share data and percentages) Q4 QTD
    2024    		   Q4 QTD
    2023    		   % Change   FY
    2024    		   FY
    2023    		   % Change
    Net income $ 391,044     $ 345,317     13.2 %   $ 959,252     $ 769,308     24.7 %
    Diluted earnings per share $ 4.44     $ 3.94     12.7 %   $ 10.91     $ 8.80     24.0 %
    Gross margin   94.6 %     94.3 %         93.1 %     92.2 %    
    Operating profit margin   53.3 %     53.0 %         45.7 %     42.6 %    
    Effective tax rate   17.5 %     17.5 %         17.5 %     17.5 %    
                                           
      Other Metrics
    (in thousands, except percentages) Q4 QTD
    2024    		   Q4 QTD
    2023    		   % Change   FY
    2024    		   FY
    2023    		   % Change
    ACV $   1,094,552   $   955,161   14.6 %   $ 2,563,029   $ 2,300,466   11.4 %
    Operating cash flows $   257,973   $   232,722   10.9 %   $    795,740   $    717,122   11.0 %
    Unlevered operating cash flows $   266,777   $   242,848   9.9 %   $    834,582   $    755,129   10.5 %
                                       

    / Key Long-Term Metrics

    The Company’s long-term outlook covering the years 2022 through 2025 provided at the 2022 Investor Update has been suspended given the pending transaction with Synopsys. Below is a summary of key metrics covering the years 2022 through 2024.

    • Consistent double-digit ACV growth with a 2022 through 2024 CAGR of 12.3% at actual exchange rates and 13.0% at 2022 exchange rates.
    • Unlevered operating cash flows grew faster than ACV with a 2022 through 2024 CAGR of 13.5%.
    • With FY 2024 unlevered operating cash flows of $834.6 million, cumulative 3-year unlevered operating cash flows (FY 2022 to 2024) are $2.2 billion.
    • Note: 2024 unlevered operating cash flows includes $28.2 million of cash outflows primarily associated with the pending transaction with Synopsys.
    Supplemental Financial Information

    / Annual Contract Value

    (in thousands, except percentages) Q4 QTD
    2024    		   Q4 QTD 2024 in Constant Currency   Q4 QTD
    2023    		   % Change   % Change in
    Constant Currency
    ACV $    1,094,552   $      1,110,711   $        955,161   14.6 %   16.3 %
                       
    (in thousands, except percentages) FY
    2024    		   FY 2024 in
    Constant Currency    		   FY
    2023    		   % Change   % Change in
    Constant Currency
    ACV $    2,563,029   $      2,593,819   $    2,300,466   11.4 %   12.8 %
                                 

    *Subscription lease ACV includes the bundled arrangement of time-based licenses with related maintenance.
    **Perpetual and service ACV includes perpetual licenses, with related maintenance, and services.

    Recurring ACV includes both subscription lease ACV and all maintenance ACV (including maintenance from perpetual licenses). It excludes perpetual license ACV and service ACV.

      

    / Revenue

    (in thousands, except percentages) Q4 QTD
    2024    		   Q4 QTD 2024 in Constant Currency   Q4 QTD
    2023    		   % Change   % Change in
    Constant Currency
    Revenue $        882,174   $         893,996   $        805,108   9.6 %   11.0 %
                       
    (in thousands, except percentages) FY
    2024    		   FY 2024 in
    Constant Currency    		   FY
    2023    		   % Change   % Change in
    Constant Currency
    Revenue $    2,544,809   $     2,570,207   $    2,269,949   12.1 %   13.2 %
                                 
    REVENUE BY LICENSE TYPE
                           
    (in thousands, except percentages) Q4 QTD
    2024    		   % of Total   Q4 QTD
    2023    		   % of Total   % Change   % Change in Constant Currency
    Subscription Lease $        441,120   50.0 %   $        399,556   49.6 %   10.4 %   12.1 %
    Perpetual            102,295   11.6 %              102,721   12.8 %   (0.4)%   1.7 %
    Maintenance1            319,381   36.2 %              283,130   35.2 %   12.8 %   13.8 %
    Service              19,378   2.2 %                19,701   2.4 %   (1.6)%   (1.2)%
    Total $        882,174       $        805,108       9.6 %   11.0 %
                           
                           
    (in thousands, except percentages) FY
    2024    		   % of Total   FY
    2023    		   % of Total   % Change   % Change in Constant Currency
    Subscription Lease $        948,831   37.3 %   $        786,050   34.6 %   20.7 %   22.1 %
    Perpetual            315,085   12.4 %              302,698   13.3 %   4.1 %   5.1 %
    Maintenance1         1,209,217   47.5 %           1,103,523   48.6 %   9.6 %   10.6 %
    Service              71,676   2.8 %                77,678   3.4 %   (7.7)%   (7.4)%
    Total $    2,544,809       $    2,269,949       12.1 %   13.2 %
                                   

    1Maintenance revenue is inclusive of both maintenance associated with perpetual licenses and the maintenance component of subscription leases.

    REVENUE BY GEOGRAPHY
                           
    (in thousands, except percentages) Q4 QTD
    2024    		   % of Total   Q4 QTD
    2023    		   % of Total   % Change   % Change in Constant Currency
    Americas $        457,752   51.9 %   $        410,681   51.0 %   11.5 %   11.5 %
                           
    Germany              98,527   11.2 %                81,828   10.2 %   20.4 %   24.2 %
    Other EMEA            170,541   19.3 %              155,023   19.3 %   10.0 %   12.2 %
    EMEA            269,068   30.5 %              236,851   29.4 %   13.6 %   16.3 %
                           
    Japan              52,294   5.9 %                61,243   7.6 %   (14.6)%   (11.1)%
    Other Asia-Pacific            103,060   11.7 %                96,333   12.0 %   7.0 %   10.1 %
    Asia-Pacific            155,354   17.6 %              157,576   19.6 %   (1.4)%   1.8 %
                           
    Total $        882,174       $        805,108       9.6 %   11.0 %
                           
                           
    (in thousands, except percentages) FY
    2024    		   % of Total   FY
    2023    		   % of Total   % Change   % Change in Constant Currency
    Americas $    1,297,367   51.0 %   $    1,106,242   48.7 %   17.3 %   17.3 %
                           
    Germany            209,714   8.2 %              199,068   8.8 %   5.3 %   6.6 %
    Other EMEA            445,791   17.5 %              406,719   17.9 %   9.6 %   9.8 %
    EMEA            655,505   25.8 %              605,787   26.7 %   8.2 %   8.8 %
                           
    Japan            184,547   7.3 %              203,013   8.9 %   (9.1)%   (2.1)%
    Other Asia-Pacific            407,390   16.0 %              354,907   15.6 %   14.8 %   16.9 %
    Asia-Pacific            591,937   23.3 %              557,920   24.6 %   6.1 %   10.0 %
                           
    Total $    2,544,809       $    2,269,949       12.1 %   13.2 %
                                   
    REVENUE BY CHANNEL
                   
      Q4 QTD
    2024    		   Q4 QTD
    2023    		   FY
    2024    		   FY
    2023
    Direct revenue, as a percentage of total revenue 79.7 %   74.5 %   75.2 %   73.9 %
    Indirect revenue, as a percentage of total revenue 20.3 %   25.5 %   24.8 %   26.1 %
                           

    / Deferred Revenue and Backlog

    (in thousands) December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Current Deferred Revenue $            504,527   $            427,188   $            457,514   $            349,668
    Current Backlog                524,617                  475,604                  439,879                  424,547
    Total Current Deferred Revenue and Backlog            1,029,144                  902,792                  897,393                  774,215
                   
    Long-Term Deferred Revenue                  31,778                    24,150                    22,240                    20,765
    Long-Term Backlog                657,345                  536,855                  552,951                  410,697
    Total Long-Term Deferred Revenue and Backlog                689,123                  561,005                  575,191                  431,462
                   
    Total Deferred Revenue and Backlog $        1,718,267   $        1,463,797   $        1,472,584   $        1,205,677
                           

    / Currency

    The fourth quarter and FY 2024 revenue, operating income, ACV and deferred revenue and backlog, as compared to the fourth quarter and FY 2023, were impacted by fluctuations in the exchange rates of foreign currencies against the U.S. Dollar. The currency fluctuation impacts on revenue, GAAP and non-GAAP operating income, ACV, and deferred revenue and backlog based on 2023 exchange rates are reflected in the tables below. Amounts in brackets indicate an adverse impact from currency fluctuations.

    (in thousands) Q4 QTD
    2024    		   FY
    2024
    Revenue $       (11,822 )   $       (25,398 )
    GAAP operating income $          (9,057 )   $       (19,588 )
    Non-GAAP operating income $          (9,076 )   $       (19,335 )
    ACV $       (16,159 )   $       (30,790 )
    Deferred revenue and backlog $       (38,306 )   $       (40,993 )
                   

    The most meaningful currency impacts are typically attributable to U.S. Dollar exchange rate changes against the Euro and Japanese Yen. Historical exchange rates are reflected in the charts below.

      Period-End Exchange Rates
    As of EUR/USD   USD/JPY
    December 31, 2024                    1.04                       157
    December 31, 2023                    1.10                       141
    December 31, 2022                    1.07                       131
           
      Average Exchange Rates
    Three Months Ended EUR/USD   USD/JPY
    December 31, 2024                    1.07                       153
    December 31, 2023                    1.08                       148
           
      Average Exchange Rates
    Twelve Months Ended EUR/USD   USD/JPY
    December 31, 2024                    1.08                       151
    December 31, 2023                    1.08                       140
           

    / GAAP Financial Statements

    ANSYS, INC. AND SUBSIDIARIES
    Condensed Consolidated Balance Sheets
    (Unaudited)
    (in thousands) December 31, 2024   December 31, 2023
    ASSETS:      
    Cash & short-term investments $                      1,497,517   $                          860,390
    Accounts receivable, net                          1,022,850                                864,526
    Goodwill                          3,778,128                             3,805,874
    Other intangibles, net                              716,244                                835,417
    Other assets                          1,036,692                                956,668
    Total assets $                      8,051,431   $                      7,322,875
    LIABILITIES & STOCKHOLDERS’ EQUITY:      
    Current deferred revenue $                          504,527   $                          457,514
    Long-term debt                              754,208                                753,891
    Other liabilities                              706,256                                721,106
    Stockholders’ equity                          6,086,440                             5,390,364
    Total liabilities & stockholders’ equity $                      8,051,431   $                      7,322,875
               
    ANSYS, INC. AND SUBSIDIARIES
    Condensed Consolidated Statements of Income
    (Unaudited)
      Three Months Ended   Twelve Months Ended
    (in thousands, except per share data) December 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Revenue:              
    Software licenses $                   543,415     $                   502,277     $               1,263,916     $           1,088,748  
    Maintenance and service                       338,759                           302,831                        1,280,893                   1,181,201  
    Total revenue                       882,174                           805,108                        2,544,809                   2,269,949  
    Cost of sales:              
    Software licenses                         12,947                             10,909                             45,367                         40,004  
    Amortization                         21,801                             20,586                             88,560                         80,990  
    Maintenance and service                         37,940                             38,554                           145,892                       150,304  
    Total cost of sales                         72,688                             70,049                           279,819                       271,298  
    Gross profit                       809,486                           735,059                        2,264,990                   1,998,651  
    Operating expenses:              
    Selling, general and administrative                       314,009                           269,857                           995,340                       855,135  
    Research and development                       134,259                           126,288                           528,014                       494,869  
    Amortization                            5,623                                5,914                             23,748                         22,512  
    Total operating expenses                       453,891                           402,059                        1,547,102                   1,372,516  
    Operating income                       355,595                           333,000                           717,888                       626,135  
    Interest income                         14,636                                7,199                             51,131                         19,588  
    Interest expense                        (10,924 )                          (12,551 )                          (47,849 )                     (47,145 )
    Other expense, net                               (14 )                            (2,876 )                            (3,132 )                       (6,440 )
    Income before income tax provision                       359,293                           324,772                           718,038                       592,138  
    Income tax provision                         76,605                             50,010                           142,346                         91,726  
    Net income $                   282,688     $                   274,762     $                   575,692     $              500,412  
    Earnings per share – basic:              
    Earnings per share $                          3.23     $                          3.16     $                          6.59     $                     5.76  
    Weighted average shares                         87,455                             86,888                             87,313                         86,833  
    Earnings per share – diluted:              
    Earnings per share $                          3.21     $                          3.14     $                          6.55     $                     5.73  
    Weighted average shares                         88,137                             87,541                             87,895                         87,386  
                                   

    / Glossary of Terms

    Annual Contract Value (ACV): ACV is a key performance metric and is useful to investors in assessing the strength and trajectory of our business. ACV is a supplemental metric to help evaluate the annual performance of the business. Over the life of the contract, ACV equals the total value realized from a customer. ACV is not impacted by the timing of license revenue recognition. ACV is used by management in financial and operational decision-making and in setting sales targets used for compensation. ACV is not a replacement for, and should be viewed independently of, GAAP revenue and deferred revenue as ACV is a performance metric and is not intended to be combined with any of these items. There is no GAAP measure comparable to ACV. ACV is composed of the following:

    • the annualized value of maintenance and subscription lease contracts with start dates or anniversary dates during the period, plus
    • the value of perpetual license contracts with start dates during the period, plus
    • the annualized value of fixed-term services contracts with start dates or anniversary dates during the period, plus
    • the value of work performed during the period on fixed-deliverable services contracts.

    When we refer to the anniversary dates in the definition of ACV above, we are referencing the date of the beginning of the next twelve-month period in a contractually committed multi-year contract. If a contract is three years in duration, with a start date of July 1, 2024, the anniversary dates would be July 1, 2025 and July 1, 2026. We label these anniversary dates as they are contractually committed. While this contract would be up for renewal on July 1, 2027, our ACV performance metric does not assume any contract renewals.

    Example 1: For purposes of calculating ACV, a $100,000 subscription lease contract or a $100,000 maintenance contract with a term of July 1, 2024 – June 30, 2025, would each contribute $100,000 to ACV for fiscal year 2024 with no contribution to ACV for fiscal year 2025.

    Example 2: For purposes of calculating ACV, a $300,000 subscription lease contract or a $300,000 maintenance contract with a term of July 1, 2024 – June 30, 2027, would each contribute $100,000 to ACV in each of fiscal years 2024, 2025 and 2026. There would be no contribution to ACV for fiscal year 2027 as each period captures the full annual value upon the anniversary date.

    Example 3: A perpetual license valued at $200,000 with a contract start date of March 1, 2024 would contribute $200,000 to ACV in fiscal year 2024.

    Backlog: Deferred revenue associated with installment billings for periods beyond the current quarterly billing cycle and committed contracts with start dates beyond the end of the current period.

    Deferred Revenue: Billings made or payments received in advance of revenue recognition.

    Subscription Lease or Time-Based License: A license of a stated product of our software that is granted to a customer for use over a specified time period, which can be months or years in length. In addition to the use of the software, the customer is provided with access to maintenance (unspecified version upgrades and technical support) without additional charge. The revenue related to these contracts is recognized ratably over the contract period for the maintenance portion and up front for the license portion.

    Perpetual / Paid-Up License: A license of a stated product and version of our software that is granted to a customer for use in perpetuity. The revenue related to this type of license is recognized up front.

    Maintenance: A contract, typically one year in duration, that is purchased by the owner of a perpetual license and that provides access to unspecified version upgrades and technical support during the duration of the contract. The revenue from these contracts is recognized ratably over the contract period.

    / Reconciliations of GAAP to Non-GAAP Measures (Unaudited)

      Three Months Ended
      December 31, 2024
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $      809,486   91.8 %   $      355,595   40.3 %   $    282,688     $        3.21  
    Stock-based compensation expense               3,635   0.4 %              73,016   8.2 %             73,016                 0.83  
    Excess payroll taxes related to stock-based awards                     39   — %                1,272   0.2 %               1,272                 0.01  
    Amortization of intangible assets from acquisitions             21,801   2.4 %              27,424   3.1 %             27,424                 0.31  
    Expenses related to business combinations                     —   — %              12,988   1.5 %             12,988                 0.15  
    Adjustment for income tax effect                     —   — %                      —   — %             (6,344 )             (0.07 )
    Total non-GAAP $      834,961   94.6 %   $      470,295   53.3 %   $    391,044     $        4.44  
                                           

    1 Diluted weighted average shares were 88,137.

      Three Months Ended
      December 31, 2023
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $      735,059   91.3 %   $     333,000   41.4 %   $    274,762     $        3.14  
    Stock-based compensation expense               3,413   0.4 %              63,358   7.9 %             63,358                 0.73  
    Excess payroll taxes related to stock-based awards                       4   — %                   271   — %                  271                    —  
    Amortization of intangible assets from acquisitions             20,586   2.6 %              26,500   3.3 %             26,500                 0.30  
    Expenses related to business combinations                     —   — %                3,664   0.4 %               3,664                 0.04  
    Adjustment for income tax effect                     —   — %                      —   — %           (23,238 )             (0.27 )
    Total non-GAAP $      759,062   94.3 %   $     426,793   53.0 %   $    345,317     $        3.94  
                                           

    1 Diluted weighted average shares were 87,541.

      Twelve Months Ended
      December 31, 2024
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $   2,264,990   89.0 %   $     717,888   28.2 %   $    575,692     $        6.55  
    Stock-based compensation expense             14,313   0.6 %           270,900   10.7 %           270,900                 3.08  
    Excess payroll taxes related to stock-based awards                  506   — %                8,643   0.3 %               8,643                 0.10  
    Amortization of intangible assets from acquisitions             88,560   3.5 %           112,308   4.4 %           112,308                 1.28  
    Expenses related to business combinations                     —   — %             52,841   2.1 %             52,841                 0.60  
    Adjustment for income tax effect                     —   — %                      —   — %           (61,132 )             (0.70 )
    Total non-GAAP $   2,368,369   93.1 %   $ 1,162,580   45.7 %   $    959,252     $      10.91  
                                           

    1 Diluted weighted average shares were 87,895.

      Twelve Months Ended
      December 31, 2023
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $   1,998,651   88.0 %   $     626,135   27.6 %   $    500,412     $        5.73  
    Stock-based compensation expense             13,337   0.6 %           221,891   9.9 %           221,891                 2.54  
    Excess payroll taxes related to stock-based awards                  307   0.1 %                5,541   0.2 %               5,541                 0.06  
    Amortization of intangible assets from acquisitions             80,990   3.5 %           103,502   4.5 %           103,502                 1.18  
    Expenses related to business combinations                     —   — %                9,422   0.4 %               9,422                 0.11  
    Adjustment for income tax effect                     —   — %                      —   — %           (71,460 )             (0.82 )
    Total non-GAAP $   2,093,285   92.2 %   $     966,491   42.6 %   $    769,308     $        8.80  
                                           

    1 Diluted weighted average shares were 87,386.

      Three Months Ended   Twelve Months Ended
    (in thousands) December 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023    		   December 31,
    2022
    Net cash provided by operating activities $            257,973     $            232,722     $            795,740     $            717,122     $            631,003  
    Cash paid for interest                  10,671                      12,274                      47,081                      46,069                      20,844  
    Tax benefit                   (1,867 )                     (2,148 )                     (8,239 )                     (8,062 )                     (3,752 )
    Unlevered operating cash flows $            266,777     $            242,848     $            834,582     $            755,129     $            648,095  
                                           

    / Use of Non-GAAP Measures

    We provide non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income, non-GAAP diluted earnings per share and unlevered operating cash flows as supplemental measures to GAAP regarding our operational performance. These financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. A detailed explanation of each of the adjustments to these financial measures is described below. This press release also contains a reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure, as applicable.

    We use non-GAAP financial measures (a) to evaluate our historical and prospective financial performance as well as our performance relative to our competitors, (b) to set internal sales targets and spending budgets, (c) to allocate resources, (d) to measure operational profitability and the accuracy of forecasting, (e) to assess financial discipline over operational expenditures and (f) as an important factor in determining variable compensation for management and employees. In addition, many financial analysts that follow us focus on and publish both historical results and future projections based on non-GAAP financial measures. We believe that it is in the best interest of our investors to provide this information to analysts so that they accurately report the non-GAAP financial information. Moreover, investors have historically requested, and we have historically reported, these non-GAAP financial measures as a means of providing consistent and comparable information with past reports of financial results.

    While we believe that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, are not reported by all our competitors and may not be directly comparable to similarly titled measures of our competitors due to potential differences in the exact method of calculation. We compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.

    The adjustments to these non-GAAP financial measures, and the basis for such adjustments, are outlined below:

    Amortization of intangible assets from acquisitions. We incur amortization of intangible assets, included in our GAAP presentation of amortization expense, related to various acquisitions we have made. We exclude these expenses for the purpose of calculating non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance because these costs are fixed at the time of an acquisition, are then amortized over a period of several years after the acquisition and generally cannot be changed or influenced by us after the acquisition. Accordingly, we do not consider these expenses for purposes of evaluating our performance during the applicable time period after the acquisition, and we exclude such expenses when making decisions to allocate resources. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the effectiveness of the methodology and information used by us in our financial and operational decision-making, and (b) compare our past reports of financial results as we have historically reported these non-GAAP financial measures.

    Stock-based compensation expense. We incur expense related to stock-based compensation included in our GAAP presentation of cost of maintenance and service; research and development expense; and selling, general and administrative expense. We also incur excess payroll tax expense related to stock-based compensation, which is an additional non-GAAP adjustment. Although stock-based compensation is an expense and viewed as a form of compensation, we exclude these expenses for the purpose of calculating non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance. Specifically, we exclude stock-based compensation during our annual budgeting process and our quarterly and annual assessments of our performance. The annual budgeting process is the primary mechanism whereby we allocate resources to various initiatives and operational requirements. Additionally, the annual review by our Board of Directors during which it compares our historical business model and profitability to the planned business model and profitability for the forthcoming year excludes the impact of stock-based compensation. In evaluating the performance of our senior management and department managers, charges related to stock-based compensation are excluded from expenditure and profitability results. In fact, we record stock-based compensation expense into a stand-alone cost center for which no single operational manager is responsible or accountable. In this way, we can review, on a period-to-period basis, each manager’s performance and assess financial discipline over operational expenditures without the effect of stock-based compensation. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate our operating results and the effectiveness of the methodology used by us to review our operating results, and (b) review historical comparability in our financial reporting as well as comparability with competitors’ operating results.

    Expenses related to business combinations. We incur expenses for professional services rendered in connection with acquisitions and divestitures, which are included in our GAAP presentation of selling, general and administrative expense. We also incur other expenses directly related to business combinations, including compensation expenses and concurrent restructuring activities, such as employee severances and other exit costs. These costs are included in our GAAP presentation of selling, general and administrative and research and development expenses. We exclude these acquisition-related expenses for the purpose of calculating non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance, as we generally would not have otherwise incurred these expenses in the periods presented as a part of our operations. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate our operating results and the effectiveness of the methodology used by us to review our operating results, and (b) review historical comparability in our financial reporting as well as comparability with competitors’ operating results.

    Non-GAAP tax provision. We utilize a normalized non-GAAP annual effective tax rate (AETR) to calculate non-GAAP measures. This methodology provides better consistency across interim reporting periods by eliminating the effects of non-recurring items and aligning the non-GAAP tax rate with our expected geographic earnings mix. To project this rate, we analyzed our historic and projected non-GAAP earnings mix by geography along with other factors such as our current tax structure, recurring tax credits and incentives, and expected tax positions. On an annual basis we re-evaluate and update this rate for significant items that may materially affect our projections.

    Unlevered operating cash flows. We make cash payments for the interest incurred in connection with our debt financing which are included in our GAAP presentation of operating cash flows. We exclude this cash paid for interest, net of the associated tax benefit, for the purpose of calculating unlevered operating cash flows. Unlevered operating cash flow is a supplemental non-GAAP measure that we use to evaluate our core operating business. We believe this measure is useful to investors and management because it provides a measure of our cash generated through operating activities independent of the capital structure of the business.

    Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

    We have provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures as listed below:

    GAAP Reporting Measure Non-GAAP Reporting Measure
    Gross Profit Non-GAAP Gross Profit
    Gross Profit Margin Non-GAAP Gross Profit Margin
    Operating Income Non-GAAP Operating Income
    Operating Profit Margin Non-GAAP Operating Profit Margin
    Net Income Non-GAAP Net Income
    Diluted Earnings Per Share Non-GAAP Diluted Earnings Per Share
    Operating Cash Flows Unlevered Operating Cash Flows
       

    Constant currency. In addition to the non-GAAP financial measures detailed above, we use constant currency results for financial and operational decision-making and as a means to evaluate period-to-period comparisons by excluding the effects of foreign currency fluctuations on the reported results. To present this information, the 2024 period results for entities whose functional currency is a currency other than the U.S. Dollar were converted to U.S. Dollars at rates that were in effect for the 2023 comparable period, rather than the actual exchange rates in effect for 2024. Constant currency growth rates are calculated by adjusting the 2024 period reported amounts by the 2024 currency fluctuation impacts and comparing the adjusted amounts to the 2023 comparable period reported amounts. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the effectiveness of the methodology and information used by us in our financial and operational decision-making, and (b) compare our reported results to our past reports of financial results without the effects of foreign currency fluctuations.

    / About Ansys

    Our Mission: Powering Innovation that Drives Human Advancement™

    When visionary companies need to know how their world-changing ideas will perform, they close the gap between design and reality with Ansys simulation. For more than 50 years, Ansys software has enabled innovators across industries to push boundaries by using the predictive power of simulation. From sustainable transportation to advanced semiconductors, from satellite systems to life-saving medical devices, the next great leaps in human advancement will be powered by Ansys.

    / Forward-Looking Information

    This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements are statements that provide current expectations or forecasts of future events based on certain assumptions. Forward-looking statements are subject to risks, uncertainties, and factors relating to our business which could cause our actual results to differ materially from the expectations expressed in or implied by such forward-looking statements.

    Forward-looking statements use words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “outlook,” “plan,” “predict,” “project,” “should,” “target,” or other words of similar meaning. Forward-looking statements include those about market opportunity, including our total addressable market, the proposed transaction with Synopsys, including the expected date of closing and the potential benefits thereof, and other aspects of future operations. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

    The risks associated with the following, among others, could cause actual results to differ materially from those described in any forward-looking statements:

    • our ability to complete the proposed transaction with Synopsys on anticipated terms and timing, including completing the associated divestiture of our PowerArtist RTL business and obtaining regulatory approvals, and other conditions related to the completion of the transaction with Synopsys;
       
    • the realization of the anticipated benefits of the proposed transaction with Synopsys, including potential disruptions to our and Synopsys’ businesses and commercial relationships with others resulting from the announcement, pendency, or completion of the proposed transaction and uncertainty as to the long-term value of Synopsys’ common stock;
       
    • restrictions on our operations during the pendency of the proposed transaction with Synopsys that could impact our ability to pursue certain business opportunities or strategic transactions, including tuck-in M&A;
       
    • adverse conditions in the macroeconomic environment, including inflation, recessionary conditions and volatility in equity and foreign exchange markets;
       
    • political, economic and regulatory uncertainties in the countries and regions in which we operate;
       
    • impacts from tariffs, trade sanctions, export controls or other trade barriers, including export control restrictions and licensing requirements for exports to China;
       
    • impacts resulting from the conflict between Israel and Hamas and other countries and groups in the Middle East, including impacts from changes to diplomatic relations and trade policy between the United States and other countries resulting from the conflict;
       
    • impacts from changes to diplomatic relations and trade policy between the United States and Russia or between the United States and other countries that may support Russia or take similar actions due to the conflict between Russia and Ukraine;
       
    • constrained credit and liquidity due to disruptions in the global economy and financial markets, which may limit or delay availability of credit under our existing or new credit facilities, or which may limit our ability to obtain credit or financing on acceptable terms or at all;
       
    • our ability to timely recruit and retain key personnel in a highly competitive labor market, including potential financial impacts of wage inflation and potential impacts due to the proposed transaction with Synopsys;
       
    • our ability to protect our proprietary technology; cybersecurity threats or other security breaches, including in relation to breaches occurring through our products and an increased level of our activity that is occurring from remote global off-site locations; and disclosure or misuse of employee or customer data whether as a result of a cybersecurity incident or otherwise;
       
    • volatility in our revenue due to the timing, duration and value of multi-year subscription lease contracts; and our reliance on high renewal rates for annual subscription lease and maintenance contracts;
       
    • declines in our customers’ businesses resulting in adverse changes in procurement patterns; disruptions in accounts receivable and cash flow due to customers’ liquidity challenges and commercial deterioration; uncertainties regarding demand for our products and services in the future and our customers’ acceptance of new products; delays or declines in anticipated sales due to reduced or altered sales and marketing interactions with customers; and potential variations in our sales forecast compared to actual sales;
       
    • our ability and our channel partners’ ability to comply with laws and regulations in relevant jurisdictions; and the outcome of contingencies, including legal proceedings, government or regulatory investigations and tax audit cases;
       
    • uncertainty regarding income tax estimates in the jurisdictions in which we operate; and the effect of changes in tax laws and regulations in the jurisdictions in which we operate;
       
    • the quality of our products, including the strength of features, functionality and integrated multiphysics capabilities; our ability to develop and market new products to address the industry’s rapidly changing technology, including the use of artificial intelligence and machine learning in our products as well as the products of our competitors; failures or errors in our products and services; and increased pricing pressure as a result of the competitive environment in which we operate;
       
    • investments in complementary companies, products, services and technologies; our ability to complete and successfully integrate our acquisitions and realize the financial and business benefits of such transactions; and the impact indebtedness incurred in connection with any acquisition could have on our operations;
       
    • investments in global sales and marketing organizations and global business infrastructure, and dependence on our channel partners for the distribution of our products;
       
    • current and potential future impacts of any global health crisis, natural disaster or catastrophe; the actions taken to address these events by our customers, our suppliers, and regulatory authorities; the resulting effects on our business, the global economy and our consolidated financial statements; and other public health and safety risks and related government actions or mandates;
       
    • operational disruptions generally or specifically in connection with transitions to and from remote work environments; and the failure of our technological infrastructure or those of the service providers upon whom we rely including for infrastructure and cloud services;
       
    • our intention to repatriate previously taxed earnings and to reinvest all other earnings of our non-U.S. subsidiaries;
       
    • plans for future capital spending; the extent of corporate benefits from such spending including with respect to customer relationship management; and higher than anticipated costs for research and development or a slowdown in our research and development activities;
       
    • our ability to execute on our strategies related to environmental, social, and governance matters, and meet evolving and varied expectations, including as a result of evolving regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs and the availability of requisite financing, and changes in carbon markets; and
       
    • other risks and uncertainties described in our reports filed from time to time with the Securities and Exchange Commission (the SEC).  

    Ansys and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.

    Visit https://investors.ansys.com for more information.

    ANSS-F

    Photos accompanying this announcement are available at
    https://www.globenewswire.com/NewsRoom/AttachmentNg/771cf00e-f710-44a2-8ccc-01eb3722147f

    https://www.globenewswire.com/NewsRoom/AttachmentNg/463dbc35-5aba-4a20-b2cb-2f5ed540482e

    https://www.globenewswire.com/NewsRoom/AttachmentNg/37428910-76eb-46be-b869-77a96fa55c58

    https://www.globenewswire.com/NewsRoom/AttachmentNg/37a46a1f-16f4-49b3-b28b-7074ac1615f3

    This press release was published by a CLEAR® Verified individual.

    The MIL Network –

  • MIL-OSI Video: RBNZ Monetary Policy Statement media conference – 19 Feb 2025

    Source: Reserve Bank of New Zealand (video statements)

    https://www.youtube.com/watch?v=JmU3xHXgJP8

    MIL OSI Video –

  • MIL-OSI USA: Attorney General Alan Wilson calls for action against counterfeit weight loss drug makersRead More

    Source: US State of South Carolina

    (COLUMBIA, S.C.) – South Carolina Attorney General Alan Wilson today led a 37-state and territory bipartisan coalition requesting that the Food and Drug Administration take swift action against bad actors who are endangering consumers with counterfeit forms of the weight loss and diabetes drugs Mounjaro, Zepbound, Ozempic, and Wegovy (GLP-1 drugs).

    “The popularity of these drugs is growing at a rate that exceeds production by licensed manufacturers and has opened the door for copycat products from countries like China and India to flow through the U.S. supply chain that are seriously harming consumers,” said Attorney General Wilson.

    The letter states that “online retailers are illegally selling the active ingredients of GLP-1 drugs directly to consumers, without a prescription. These retailers claim that the active ingredients they sell are ’for research purposes only’ or ’not for human consumption’.[1] In reality, these companies advertise directly to consumers on social media, claiming that their products are an easier and more affordable way to obtain GLP-1 drugs.[2] Much like with counterfeit versions, these active ingredients come from unregulated, undisclosed sources and pose risks of contamination and inclusion of foreign substances.[3]”

    Attorney General Wilson also recently sent out a consumer alert warning consumers to be cautious when purchasing compounded Tirzepatide and Semaglutide, specifically in unapproved forms such as pills (only available via Rybelsus), sublingual drops, lozenges, or films taken under the tongue, topical skin patches, and nasal sprays.

    Attorney General Wilson said, “Protecting consumers is of utmost priority to me and the lengths that these counterfeiters are going to take advantage of consumers and endanger their health must be stopped.”

    The letter declares that the Food and Drug Administration has the expertise and resources to stop the bad conduct and deceptive practices by counterfeit drug manufacturers and that they should increase enforcement actions against compounding pharmacies illegally participating in this market. It also encourages the FDA to partner with state pharmacy boards to ensure compounded GLP-1 drugs are produced safely and in sanitary environments. 

    South Carolina co-led this bipartisan letter with Colorado, Illinois, and Tennessee and was joined by Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Georgia, Hawaii, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Utah, Vermont, Virgin Islands, Virginia, West Virginia, and Wisconsin.

    You can read the full letter here.

    You can read the consumer alert here.

    [1]  See Jordyn Belcourt et al., Bypassing Prescribers and Pharmacists: Online Purchasing of Semaglutide and Tirzepatide “For Research Purposes,” Annals of Pharmacotherapy, p.1 (2024).

    [2] See https://www.wsj.com/health/healthcare/ozempic-mounjaro-no-prescription-websites-726b3928

    [3] https://www.nbcnews.com/health/health-news/ozempic-underworld-black-market-obesity-drugs-rcna174680

    MIL OSI USA News –

  • MIL-OSI New Zealand: Regional Tourism Boost to attract international visitors

    Source: New Zealand Government

    A new $3 million fund from the International Conservation and Tourism Visitor Levy will be used to attract more international visitors to regional destinations this autumn and winter, Tourism and Hospitality Minister Louise Upston says.  

    “The Government has a clear priority to unleash economic growth and getting our visitor numbers back to 2019 levels will be critical to our economic growth goals.

    “The Regional Tourism Boost contestable fund will open at the end of February for activity in the April to July period.”

    Speaking to the Regional Tourism New Zealand members’ meeting in Auckland, Louise Upston said collaboration between tourism organisations would be essential. Regions applying would also need to promote travel opportunities outside main tourism hotspots. 

    “I expect regions to join up to accelerate work to promote their wider region, so visitors have opportunities to explore multiple parts of our wonderful country.

    “Quality is also part of the process. Regions will demonstrate they have the capacity to host an increased number of visitors, ensuring a smooth and special experience once they arrive.

    “This initiative is another push in our Tourism Boost, developed by the Government in partnership with industry to support immediate growth in visitor numbers, drive export activity and deliver economic growth. 

    “Tourism is a crucial part of our focus on economic growth, with domestic and international tourism expenditure at almost $38 billion and supporting nearly 200,000 jobs.

    “We’re ramping up marketing activity and this fund, plus my recent announcement for additional Australia campaign activity, will start to give tourism the boost it needs.

    “We know it will be supported by New Zealanders – 93 per cent of New Zealanders surveyed last year agreed that tourism is good for the country. 

    “This is a year of opportunity. 2025 is our chance to reinforce the value of tourism to a humming, vibrant country, where we welcome anyone, from anywhere, anytime,” Louise Upston says.

    Notes to the editor:

    • The Fund is open to groups of collaborating organisations, but each group must include at least two Regional Tourism Organisations (RTO) and have an RTO as a lead organisation.
    • Funding is available for existing or new activities that can be delivered between April and July 2025, in order to increase visitation over the Autumn/Winter season.

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Government Response to the Report from the Prime Minister’s Chief Science Advisor

    Source: New Zealand Ministry of Health

    Antimicrobial resistance (AMR) is a significant and growing public health threat which affects patients and communities, and threatens to undermine the modern health system. AMR can also have serious negative impacts on animal health, welfare and production, and the environment.

    The New Zealand Antimicrobial Resistance Action Plan was published in 2017 to enable coordinated, cross-agency national action to minimise the impacts of AMR on New Zealand.

    In March 2022, the Office of the Prime Minister’s Chief Science Advisor released Kotahitanga: Uniting Aotearoa against infectious disease and antimicrobial resistance.

    Many of the themes and recommendations in the Kotahitanga report align with, and build on, the Action Plan. This publication notes that progress has been made on a number of the recommendations in the Kotahitanga report, as well as acknowledging that there is more work to do. The Ministries of Health and Primary Industries are working together on a new cross-agency AMR strategy to update and drive ongoing action.

    MIL OSI New Zealand News –

  • MIL-OSI Security: Lake Station Man Sentenced to 360 Months in Prison

    Source: Office of United States Attorneys

    HAMMOND – Matthew A. Bugielski, 26 years old, of Lake Station, Indiana, was sentenced by United States District Court Judge Gretchen S. Lund after pleading guilty to Sexual Exploitation of Children, announced Acting United States Attorney Tina L. Nommay.

    Bugielski was sentenced to 360 months in prison, followed by 15 years of supervised release, and ordered to pay restitution to the victim of the offense.

    According to documents in the case, on or about June 19, 2023, Bugielski produced a sexually explicit image of a minor by employing, using, and inducing the minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. Further, Bugielski distributed that sexually explicit image to others over the internet. On occasions separate from June 19, 2023, Bugielski distributed other images and videos of child sexual abuse materials over the internet to others.

    This case was investigated by Homeland Security Investigations, with assistance from the Indiana Internet Crimes Against Children Task Force, the Indiana State Police, the Indiana State Police Digital Forensics Unit, the Roanoke Police Department, the Huntington County Sheriff’s Office, the Indianapolis Metropolitan Police Department, the Lake Station Police Department, and the New Chicago Police Department. The case was prosecuted by Assistant United States Attorney Emily Morgan.

    The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

    MIL Security OSI –

  • MIL-Evening Report: The desert among the snow: how Anmatyerr ceremony men came to create ground paintings in Switzerland

    Source: The Conversation (Au and NZ) – By Jason M. Gibson, DECRA Senior Research Fellow, Cultural Heritage and Museum Studies, Deakin University

    Cliffy Tommy working on the _rrpwamper_ (common brushtail possum) ground painting sculpture. Georges Petitjean, CC BY

    A ground painting is known in Anmatyerr as Ahelh Anety-irrem, meaning “broken” or perhaps even “transformed ground”. The name refers to the process of clearing an even surface on the red earth, building a sculpture and then deconstructing it.

    Anmatyerr people live in the desert community of Laramba, 200 kilometres northwest of Alice Springs. Now, the work of Anmatyerr artists has been shown in Switzerland for the first time.

    In December, four men from Laramba travelled to the Canton of Valais, just east of Geneva.

    Anmatyerr men Morris Wako, Martin Hagan, Cliffy Tommy and Michael Tommy with the ground paintings.
    Jason M. Gibson, CC BY

    Elder Michael Tommy, Morris Wako, Cliffy Tommy and Martin Mpetyan/Kemarr Hagan (one of the authors of this piece) were invited to create three ground paintings for the international exhibition Rien de Trop Beau pour les Dieux (Nothing Too Beautiful for The Gods).

    Working alongside artists from Cameroon, Tibet, Cuba and Aotearoa New Zealand, the Anmatyerr group represented a uniquely Australian culture.

    Creating the paintings

    Along with body and artefact designs, ground paintings were an important cultural source for the emergence of contemporary desert art in the early 1970s.

    During that decade, Anmatyerr, Warlpiri, Luritja and Pintupi men began experimenting with representing ceremonial designs and stories using acrylic paint.

    Drawing largely on designs and stories embedded in central Australian religious activities the men developed the style of “dot” painting now known across the world.

    Two of the ground paintings shown in Switzerland were principally made from a native daisy (Chrysocephalum apiculatum), or anteth mpay-mpay in the Anmatyerr language.

    The plant was harvested from Anmatyerr lands, chopped finely and coloured with red or white ochres before being shipped to Switzerland.

    A bunch of cockatoo feathers along with an alkwert (beanwood shield) and an atnartenty (ceremonial pole) made by Anmatyerr artist Wayne Scrutton also made the journey.

    Michael Tommy, a ceremonial expert amongst the Anmatyerr people, oversaw the making of the ceremonial designs.

    Each of the men possessed personal connections to different designs. Martin created the rrpwamper (common brushtail possum) ground sculpture belonging to his mother’s father.

    Martin Hagan and his possum ground painting.
    Jason Gibson., CC BY

    Morris painted the atwerneng (flying ant) and rrwerleng (honey grevillea) Dreamings of his father.

    Michael and Cliffy constructed their father and grandfather’s yerramp (honey-ant) ground painting.

    The works were created in the gallery over three days with artists from other parts of the globe regularly coming by to chat and share ideas.

    As the men worked, they sang the songs for each of the designs. These voices reverberated across the room and brought life to works that were steeped in old traditions but also very much part of the present.

    On opening night, the men painted their bodies with the correct designs and explained how their art stemmed from Anengekerr (Dreaming), Country and family inheritance. The exchange was translated into French for the local audience.

    Recording culture

    In 2023 the Laramba men began recording their ceremonial traditions, recognising these practices were vulnerable in a rapidly changing world.

    One of the writers of this piece, Jason Gibson, has worked closely with the community over the last 15 years on the repatriation of relevant recordings of ceremonies from the Strehlow and other collections. The Strehlow collection is made up of recordings of Aboriginal ceremony, ritual and song from central Australia collected by the anthropologist TGH Strehlow between 1932 and 1972. It is now held at the Strehlow Research Centre in Alice Springs.

    Museum collections like this were made by anthropologists over the last 130 years and hold important information about ceremonial practices, family histories and stories for Country. Having access to this material has enabled the community to think deeply about how art and museum collections might be used to their advantage.

    The men have now decided to build a collection of their own, serving their cultural future.

    Morris Wako, Jason Gibson and Cliffy Tommy with Morris Wako’s painting.
    Arthur Gibson (Kemarr), CC BY

    A part of this strategy has been to reach out to galleries and museums in search of collaborations.

    Through giving and showing, they are striving to establish better relationships and wider recognition.

    Aboriginal art in Europe

    Established in 2018, by collector Bérengère Primat, Fondation Opale is the sole contemporary art centre dedicated to the promotion of Australian Aboriginal art in Europe.

    The building’s architecture and décor showcase Australian Aboriginal themes. An Aboriginal flag flies from the rooftop and sculptures of boomerangs and shields adorn the grounds. This desert culture stands against a contrasting backdrop of alpine snow and ice.

    Fondation Opale in Lens, Switzerland.
    Isabelle dlC/Wikimedia Commons, CC BY

    Though unusual, the setting created a familiar and comforting place from which to work.

    The men were hand-picked because of their expertise in ceremony. Michael Tommy had made acrylic paintings alongside Clifford Possum and Tim Leura, founders of desert acrylic painting, but none of the men had invited or sought fame as painters. Their focus has been on the retention of song and ceremony.

    The knowledge encrypted in the works created by these men in Switzerland is known to only a small group of people in Laramba and nearby communities. The ground paintings are usually only made as a part of local ceremonial events.

    Only on a few other occasions have men from Anmatyerr and Warlpiri men created ground paintings for international audiences, notably at the Asia Society in New York in 1988, and the Magiciens de la Terre (Magicians of the Earth) exhibition in Paris in 1989.

    Magicians of the Earth, curated by Jean-Hubert Martin, was controversial for presenting non-Western artistic practice on an equal footing with the artistic traditions of Western Europe and North America. The show significantly influenced the way contemporary art is understood and presented on a global scale, and remains a touchstone for discussions about cultural representation and inclusion in the art world.

    Nothing Too Beautiful for the Gods was also curated by Martin, and shines a light on the relationship between culturally diverse forms of spirituality and artistic practices. It was the perfect context for the men to demonstrate how their art and religious practices are intertwined. It also showed how traditions rooted in place, can also be part of a contemporary, global conversation.

    The three works will now stay on permanent exhibition at Fondation Opale. Culture practiced and shared is culture sustained.

    Jason M. Gibson receives funding from the Australian Research Council.

    Martin Mpetyan Hagan 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. The desert among the snow: how Anmatyerr ceremony men came to create ground paintings in Switzerland – https://theconversation.com/the-desert-among-the-snow-how-anmatyerr-ceremony-men-came-to-create-ground-paintings-in-switzerland-246985

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Collateral damage: how the war on ‘woke banking’ could backfire on New Zealand

    Source: The Conversation (Au and NZ) – By Martien Lubberink, Associate Professor of Accounting and Capital, Te Herenga Waka — Victoria University of Wellington

    Getty Images

    It would be hard to think of an industry less obviously “woke” than banking, but that’s how coalition partner NZ First has characterised certain practices within the finance sector.

    The party’s tortuously titled Financial Markets (Conduct of Institutions) Amendment (Duty to Provide) Amendment Bill – dubbed the “woke banking” bill – takes aim at efforts to build sustainability concepts into investment practices.

    Known as the “environmental, social and governance (ESG) framework”, such policies are designed to guide how a bank manages risks and opportunities beyond basic profit and loss.

    NZ First’s bill seeks to ensure no New Zealand business can be denied banking services unless the decision is grounded in law. Its proponents argue it will prevent ESG standards from perpetuating “woke ideology” in the banking sector, driven by what they describe as “unelected, globalist, climate radicals”.

    Prime Minister Christopher Luxon has supported the bill’s aims, recently calling it “utterly unacceptable” that petrol stations and mines were being denied banking services due to banks’ commitment to climate change goals.

    Coalition partner ACT similarly called for the end of “banking wokery”. And last week the Finance and Expenditure Committee announced an extension of its inquiry into banking competition to include, among other issues, the “debanking of legitimate sectors”.

    Risk management isn’t ‘woke’

    Much of this is largely politically performative, however. A broader international trend has for, some time now, seen financial institutions increasingly aligning their lending practices with ESG criteria.

    In Europe, for example, data from the European Banking Authority show banks have halved their exposures to mining firms since 2020, reflecting that global shift towards sustainability and risk management.

    This is about more than “woke” agendas and is unlikely to reverse, given current global efforts to decarbonise. Encouraging or forcing banks to invest in carbon-emitting industries introduces financial risk. If those assets lose value, it constitutes irresponsible lending.

    While the current US administration may be embracing fossil fuel industries, consumer and investor demand for sustainable policies is still strong. When banks such as the BNZ prepare for an orderly exit from declining industries, they are simply engaging in risk management.

    Banks also manage regulatory risk. While the current government may enact the bill and force banks to invest in carbon-emitting industries, a future government could reverse that policy. This undermines long-term investment strategies.

    Regulatory uncertainty

    There is also a danger New Zealand is perceived internationally as not being serious about business and investment. In particular, the prime minister’s pressure on bank lending policies cuts across his stated commitment to the Paris Agreement on climate change.

    The resulting regulatory uncertainty is counterproductive: it potentially deters international investors at a time when the government aims to attract foreign investment.

    Ultimately, if bank lending policies lead to poor outcomes, it is ordinary New Zealanders who will likely bear the costs through higher interest rates or even bank failures.

    In its eagerness to boost lending, the government is also encroaching on the Reserve Bank’s territory by directing it to prioritise competition, including reviewing risk weightings and capital thresholds (designed to build buffers against failure) for new entrants to the market.

    But history shows that before the 2007-2009 global financial crisis, similar bank-friendly initiatives – often labelled “principles-based” – led to bad debt accumulation and increased economic vulnerability.

    Institutional failure

    The shift towards what we might call populist banking policies is not confined to New Zealand. Globally, there is a declining political interest in financial stability and prudential regulation.

    For example, agreement on the “Basel III” reforms – developed in response to the global financial crisis and aimed at strengthening the regulation, supervision and risk management of banks – will likely be delayed by the Trump administration.

    This will have ripple effects in Europe, Britain and the rest of the world, signalling a softening of global capital requirements. As Erik Thedéen, chair of the Basel Committee on Banking Supervision, described this:

    Shaving off a few basis points of capital will not unlock a wave of new lending, but it will weaken your resilience. More generally, being well capitalised is a competitive advantage for banks and their shareholders. It ensures they can continue to grow and invest in profitable projects across the financial cycle.

    Politicians need to be very careful when interfering with bank supervision policies in general. They risk undermining the independence of crucial institutions, with real consequences.

    Last year’s Nobel Prize for economics went to Daron Acemoglu, Simon Johnson and James A. Robinson for their “studies of how institutions are formed and affect prosperity”. Their warning is that institutional failure can lead to the failure of nations.

    A resilient banking system

    While New Zealand isn’t in such imminent danger, political leaders need to be aware that populist appeals to certain voter segments can lead to policies that undermine the banking system and economic growth, and disproportionately affect the most vulnerable.

    As Stelios Haji-Ioannou, founder of low-cost airline EasyJet, once remarked: “if you think safety is expensive, try an accident”.

    New Zealand needs to focus on policies that promote long-term financial stability, enhance productivity and sustainable economic growth. Globally, there needs to be a recommitment to prudential regulation to ensure the lessons of the global financial crisis are not forgotten.

    Only by doing so can we build a resilient banking system that serves the interests of all, not just a privileged few.

    Martien Lubberink 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. Collateral damage: how the war on ‘woke banking’ could backfire on New Zealand – https://theconversation.com/collateral-damage-how-the-war-on-woke-banking-could-backfire-on-new-zealand-249930

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Can you afford a private school? Average fees for Year 12 are at least $15,000

    Source: The Conversation (Au and NZ) – By Emma Rowe, Associate Professor in Education, Deakin University

    Monkey Business Images/ Shutterstock

    This week, updated figures once again showed an increasing number of Australian families are choosing to send their children to private schools.

    Just over 63% of Australian students are enrolled in government schools. Almost 20% are in Catholic schools and almost 17% go to independent schools, according to Australian Bureau of Statistics.

    How much is it costing parents?

    While headlines often focus on the most expensive schools, there is a huge range of private schools operating in Australia.

    In our new analysis, which is not peer-reviewed, we looked at private school fees in New South Wales and Victoria (the two most populous states).



    Read more:
    More Australian families are choosing private schools – we need to understand why

    Fees for Year 12

    We looked only at independent schools. The non-government school sector is made up of Catholic and independent schools, but Catholic private schools typically charge lower fees and this can skew the data on the sector.

    The tuition fees we refer to are based on what is publicly available through each school’s website.

    We collected all available data for Year 12 tuition fees in every independent school in NSW and Victoria in 2021 and 2024. We chose to focus on Year 12, as this is typically the most expensive year at school.

    • In NSW, we found fee information for 369 schools (77% of independent schools).

    • In Victoria we found fee information for 138 schools (92% of independent schools).

    Private school fees don’t necessarily include other expenses such as music or sport.
    DGLimages/Shutterstock



    Read more:
    Are public schools really ‘free’? Families can pay hundreds of dollars in voluntary fees

    What is the average tuition fee?

    In 2024, the average tuition fee for a Year 12 student in NSW was A$15,674 and in Victoria it was $20,923.

    This is in keeping with other analyses showing Victoria is the most expensive state for school fees in Australia.

    These figures suggest while many schools are far from the headlines of “$50,000 fees”, many families are still paying substantial amounts for a private education – particularly if they have more than one child.

    However, there were significant variations in tuition fees between schools. In NSW, 12% of schools in our sample charged under $5,000 per year per student. In Victoria, 9% charged less than $5,000.

    One alternative school in NSW charged just $100 per student per year. This is less than parents typically pay out of their own pocket at the average public school.

    This shows us there some cheaper options available, depending on where families live although they are certainly not the majority.

    At the other end of the sample, The Scots College in NSW and Geelong Grammar School in Victoria charged the highest tuition fees in their respective states for 2024. Geelong Grammar charged $49,720 for Year 12; Scots charged $46,920.

    There are other costs

    While we only looked at tuition fees, families might also have to pay levies for infrastructure or technology.

    There are also extra charges for activities such as camps, excursions and incursions, as well as fees for uniforms, school buses, and special subjects such as music and sport.

    For the majority of independent schools, parents are asked to pay to enrol or go on the waiting list. The average application fee in Victoria was $156 and in NSW was $197. These fees widely differed between schools, ranging from zero to $650.

    How much are fees growing?

    Fees keep climbing each year, and media reports tell us some school fees have already increased for 2025.

    Our analysis found in Victoria, tuition fees in independent schools increased by an average of 15% from 2021 to 2024 – roughly 3.75% each year. In NSW, fees increased by 13% from 2021 to 2024, or about 3.25% per year.

    In media coverage, individual schools have blamed fee increases on inflation, “operational costs”, rising staff costs, and a drop in federal funding.

    Will fees keep rising?

    In some OECD countries, if private schools receive government funding, there are conditions placed on what they can charge for tuition.

    This is not the case in Australia, where the system is unregulated and uncapped.

    Unless this policy approach changes, we can expect private schools to keep increasing fees, as long as there are families willing and able to pay them.

    Emma Rowe receives funding from the Australian Research Council.

    Diana Langmead 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. Can you afford a private school? Average fees for Year 12 are at least $15,000 – https://theconversation.com/can-you-afford-a-private-school-average-fees-for-year-12-are-at-least-15-000-248769

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Two in five scientists report harassment and intimidation. Often, the perpetrators are inside the institution

    Source: The Conversation (Au and NZ) – By Robert Hales, Director, Centre for Sustainable Enterprise, Griffith University

    Roman Samborskyi/Shutterstock

    The goal of science is to uncover truths and create new knowledge. But this is not always welcome. Increasingly, scientific findings are being attacked or downplayed. And scientists themselves face intimidation or harassment.

    In our global study of more than 2,000 scientists across six areas of science, two-fifths (41%) of respondents had, as a result of their work, been harassed or intimidated at least once over a five-year period.

    Intimidation efforts included online abuse, physical threats, and threats to budgets or employment. Harassment, while personal, could be meted out by superiors, colleagues or outsiders. Some scientists felt their leaders had thrown them under the bus to protect the institution’s reputation.

    Who’s doing the intimidation? Strikingly, a majority of cases of intimidation and harassment actually came from inside the institution for most fields. That is, it was perpetrated by senior colleagues or managers. But for climate scientists, most intimidation efforts came from outside.

    Intimidation of scientists doesn’t happen in a vacuum. In recent years, there has been a rise in populist leaders who pour scorn on “elites” and evidence. Scientific issues are increasingly politicised. Disinformation is rampant. This atmosphere adds to the pressure faced by scientists, especially those working in politically sensitive areas such as climate science or COVID.

    Harassment and intimidation can silence or isolate scientists.
    Hayk_Shalunts/Shutterstock

    What did we find?

    We used an online database of scientists to find and contact experts publishing in six fields: climate science, medical health, humanities and social science, food and plant science, astronomy, and other STEM areas.

    More than 2,000 responded to our survey on whether they had experienced various types of intimidation or harassment. We asked respondents for more detail on the perpetrators, what triggered the incident, and what effect it had on them.

    Many respondents had a clear view as to what the intimidation or harassment was meant to do. The motivations of perpetrators varied greatly. But the most common reasons were to damage their reputation, to stop them from publishing certain types of research, or to “put me in my place”.

    Specific fields of science were more prone to harassment and intimidation – in particular climate science, and humanities and social science.

    Among those scientists who had been intimidated, climate scientists reported online abuse three times more often than astronomers. Climate science is politically charged, because climate change is clearly linked to pollution from some of the world’s largest industries – oil, gas and coal. Astronomy is not. Half of the climate scientist respondents experiencing intimidation saw the bad behaviour as a way to discourage them from undertaking specific research and speaking about it.

    Researchers from humanities and social sciences faced similar levels of online abuse to climate scientists.

    When it came to personal harassment, there was a clear gender dimension. Among those who reported experiencing harassment, female scientists were more than four times more likely to report “unwelcome or inappropriate behaviour of a sexual nature” than their male counterparts. Women were affected almost twice as much as men by non-sexual forms of personal harassment.

    Our findings follow earlier research finding similar rates of intimidation. For instance, a 2021 survey of 321 scientists working on COVID-19 found 15% had received death threats and 22% received threats of sexual violence.

    Intimidation and harassment are damaging

    The consequences of intimidation are profound and far-reaching. Many scientists told us the experience had caused lasting damage, whether to wellbeing, career prospects or research activities.

    More than 40% of those affected said their career prospects had worsened following incidents of harassment. Just over a third (34%) reported a decline in their desire to work in science. Scientists who experienced intimidation often cut back their collaboration with colleagues (35%), leaving them more isolated.

    Many of our respondents described flow-on effects such as decreased access to funding (35% of respondents) and less public communication from their institution about their work (23%).

    Scientists targeted with multiple types of harassment reported very damaging effects, from difficulty finding their next job to poor mental health.

    Intimidation slows progress

    Intimidation and harassment have a chilling effect on science. This, in turn, could hinder progress on crucial issues such as climate change, public health and technological advancements.

    The disproportionate impact on women and researchers in politically sensitive fields threatens to undermine diversity and inclusivity in science.

    Without targeted interventions, women in science may continue to suffer disproportionate levels of harassment and intimidation. This will have long-term implications for gender diversity in scientific leadership and the direction of research in various fields.

    In the United States, the Trump administration’s withdrawals from the Paris climate agreement and the World Health Organization are likely to further embolden anti-science movements. Many American scientific institutions are engaged in anticipatory obedience of the Trump administration’s demands that diversity and anti-discrimination programs be abolished, or climate change stop being mentioned. Many even go beyond what is explicitly sought.

    Female scientists are targeted in different ways.
    PeopleImages.com – Yuri A/Shutterstock

    What can be done?

    Science and academia is often seen as a bastion of free inquiry and open discussion. One of our most surprising findings was how common intimidation was within scientific institutions.

    The key to beating intimidation is organisational support and clear strategies, not obedience. These include:

    • genuine commitment to institutional policies protecting scientists from both internal and external intimidation

    • formal, well-resourced support systems for researchers facing harassment or pressure (not the HR office)

    • programs to increase public understanding of the scientific process to build trust and resilience to misinformation

    • boosting international collaboration between scientists and policymakers to ensure resilience against country-specific efforts to undermine science

    • educating the public on the importance of scientific independence and of fostering respectful dialogue around contentious topics.

    As populist movements gain traction in many countries, scientists working on controversial issues will face heightened scrutiny – and potentially more intimidation.

    Climate science is likely to remain a particularly contested field. As the damage wrought by climate change becomes more and more apparent, it will get even more contentious.

    Over the last few centuries, science has produced breakthroughs in many areas. But the integrity of science is not guaranteed. Harassment and intimidation from both inside and outside institutions has a very real effect on scientists.

    The future of evidence-based decision-making and ability to tackle global challenges depends on fostering an environment where scientists can work free from fear and undue pressure.

    Robert Hale receives funding from the Australian Research Council.

    David Peetz undertook research over many years with occasional financial support from governments from both sides of politics, employers and unions. He has been and is involved in several Australian Research Council-funded projects, including this one.

    Ian Lowe was president of the Australian Conservation Foundation from 2004 to 2014.

    Carolyn Troup and Georgina Murray do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. Two in five scientists report harassment and intimidation. Often, the perpetrators are inside the institution – https://theconversation.com/two-in-five-scientists-report-harassment-and-intimidation-often-the-perpetrators-are-inside-the-institution-248013

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: More people are asking generative AI questions about their health. But the wrong answer can be risky

    Source: The Conversation (Au and NZ) – By Julie Ayre, Post Doctoral Research Fellow, Sydney Health Literacy Lab, University of Sydney

    Shvets Production/Pexels

    More people are turning to generative artificial intelligence (AI) to help them in their daily and professional lives. ChatGPT is one of the most well-known and widely available generative AI tools. It gives tailored, plausible answers to any question for free.

    There is so much potential for generative AI tools to help people learn about their health. But the answers are not always correct. Relying solely on ChatGPT for health advice can be risky and cause unnecessary concern.

    Generative AI is still a relatively new technology, and is constantly changing. Our new study provides the first Australian data about who is using ChatGPT to answer health questions, for what purposes.

    The results can help tell people how to use this new technology for their health, and the new skills needed to use it safely – in other words, to build “AI health literacy”.

    Who uses ChatGPT for health? What do they ask?

    In June 2024 we asked a nationally representative sample of more than 2,000 Australians if they had used ChatGPT to answer health questions.

    One in ten (9.9%) had asked ChatGPT a health question in the first half of 2024.

    On average they reported that they “somewhat” trusted ChatGPT (3.1 out of 5).

    We also found the proportion of people using ChatGPT for health was higher for people who had low health literacy, were born in a non-English speaking country, or spoke another language at home.

    This suggests ChatGPT may be supporting people who find it hard to engage with traditional forms of health information in Australia.

    One in ten Australians asked ChatGPT a health question in the first half of last year.
    Kampus Productions/Pexels

    The most common questions that people asked ChatGPT related to:

    • learning about a health condition (48%)
    • finding out what symptoms mean (37%)
    • asking about actions (36%)
    • or understanding medical terms (35%).

    More than half (61%) had asked at least one question that would usually require clinical advice. We classified these questions as “riskier”. Asking ChatGPT what your symptoms mean can give you a rough idea, but cannot substitute clinical advice.

    People who were born in a non-English speaking country or who spoke another language at home were more likely to ask these types of questions.

    Why does this matter?

    The number of people using generative AI for health information is likely to grow. In our study, 39% of people who had not yet used ChatGPT for health would consider doing so in the next six months.

    The overall number of people using generative AI tools for health information is even higher if we consider other tools such as Google Gemini, Microsoft Copilot, and Meta AI.

    Notably, in our study we saw that people from culturally and linguistically diverse communities may be more likely to use ChatGPT for health information.

    If they were asking ChatGPT to translate health information, this adds another layer of complexity. Generative AI tools are generally less accurate in other languages.

    We need investment in services (whether human or machine) to ensure speaking another language is not a barrier to high quality health information.

    What does ‘AI health literacy’ look like?

    Generative AI is here to stay, presenting both opportunities and risks to people who use it for health information.

    On the one hand, this technology appeals to people who already face significant barriers accessing health care and health information. One of its key benefits is its ability to instantly provide health information that is easy to understand.

    A recent review of studies showed generative AI tools are increasingly capable of answering general health questions using plain language, although they were less accurate for complex health topics.

    This has clear benefits as most health information is written at a level that is too complex for the general population, including during the pandemic.

    On the other hand, people are turning to general-purpose AI tools for health advice. This is riskier for questions that require clinical judgment and a broader understanding of the patient.

    There have already been case studies showing the dangers of using general purpose AI tools to decide whether to go to hospital or not.

    Where else can you go for this information?

    We need to help people think carefully about the kinds of questions they’re asking AI tools, and connect them with appropriate services that can answer these riskier questions.

    Organisations such as HealthDirect provide a national free helpline where you can speak with a registered nurse about whether to go to hospital or see a doctor. HealthDirect also provides an online SymptomChecker tool to help you figure out your next steps.

    While many Australian health agencies are developing AI policies, most are focused on how health services and staff engage with this technology.

    We urgently need to equip our community with AI health literacy skills. This need will grow as more people use AI tools for health, and it will also change as the AI tools evolve.

    Julie Ayre receives funding from the National Health and Medical Research Council (APP2017278). The Health Literacy Editor is a research tool owned by the University of Sydney. It is sublicensed to Health Literacy Solutions PTY Ltd to enable wider public use. Julie Ayre (study author) is a co-director of Health Literacy Solutions PTY Ltd. She takes no personal income from Health Literacy Solutions PTY Ltd or the Health Literacy Editor.

    Kirsten McCaffery receives funding from the National Health and Medical Research Council (APP2016719). The Health Literacy Editor is a research tool owned by the University of Sydney. It is sub-licensed to Health Literacy Solutions PTY Ltd to enable wider public use. Kirsten McCaffery is a co-director of Health Literacy Solutions PTY Ltd. She takes no personal income from Health Literacy Solutions PTY Ltd or the Health Literacy Editor.

    Erin Cvejic 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. More people are asking generative AI questions about their health. But the wrong answer can be risky – https://theconversation.com/more-people-are-asking-generative-ai-questions-about-their-health-but-the-wrong-answer-can-be-risky-249383

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: The prime minister earns $607,000 a year. Why does his top public servant earn more than $1 million?

    Source: The Conversation (Au and NZ) – By Chris Wallace, Professor, School of Politics Economics & Society, Faculty of Business Government & Law, University of Canberra

    Tasmanian Senator Jacqui Lambie represents the lowest-income Australians, with median weekly earnings of $1,208 a week. In the Australian Capital Territory, where the nation’s highest median weekly earners live, including the brains trust of the Australian Public Service, it’s $1,688 a week – 40% higher.

    As a federal politician, Lambie shuttles between these two starkly different earnings worlds and is not happy about the disparity.

    Of course, Lambie herself is on a reasonable wicket. Parliamentarians’ base salaries are $233,660 a year, according to an Instagram post she made this month drawing attention to the issue.

    At a time of considerable financial stress for Australians hit by the combination of inflation, high interest rates and housing shortages, Lambie struck a nerve with her post, which listed a range of public roles drawing big six figure-plus annual salaries.

    In doing so, Lambie underlined the far higher salaries paid to senior public servants compared to the ministers to whom they’re responsible.

    Department of Prime Minister and Cabinet Secretary Glyn Davis earns $1,011,410 a year, 66% more than the man he serves, Prime Minister Anthony Albanese, who earns $607,516.

    Treasury Secretary Steven Kennedy’s salary is more than double that of Treasurer Jim Chalmers, who is paid $438,112. Another three departmental secretaries each earn $960,840.

    Lambie’s Instagram post drew hundreds of comments including:

    How does a public servant earn more than the prime minister? That’s wrong!!

    Politicians get flak about their salaries from belligerent constituents, but also keenly feel the injustice of earning far less than senior public servants.

    Higher pay for higher risk

    The salaries of both politicians and public servants have long and specific histories. Without an income, only the rich could afford to be politicians, so publicly paid allowances and salaries have historically been an important equity and inclusion measure. They remain so today.

    The original framers of the public service component of our Westminster system of government believed that to prevent conflicts of interest that drive corruption, the bureaucracy ought to be staffed by “permanent officers” with job security. In exchange for what, barring wrongdoing, was going to be a lifetime career, public service pay was historically adequate but not extravagant.

    This nexus was broken when, in exchange for higher pay, the Keating government introduced five-year contracts for departmental secretaries in March 1994. Three departmental secretaries refused contracts and continued as “permanent officers”. The rest took the money and the increased employment risk that went with it.

    Two years later, the Keating government lost office and incoming Prime Minister John Howard summarily fired nearly a third of departmental secretaries, fatally eroding the “frank and fearless” tradition of public service advice underpinned by security of employment.

    Compromised advice

    Contract employment for secretaries, who effectively can now be fired at will, not only created pressure for public servants to tell ministers what they wanted to hear, but also untethered their salaries from historical norms. Higher pay reflected that insecurity. The flow-on effect meant other salaries in the senior executive service also floated upwards.

    Contracts for secretaries have also been central to the revolving door that’s developed between the top of the public service and large consulting firms, creating conflicts of interest unknown in the traditional Westminster public service.

    The big four consulting firms are attractive alternative employers for highly paid and insecure departmental secretaries.

    Little wonder, then, that a quasi-privatisation of public service advice through consultancy contracts to those firms occurred, at vast expense to taxpayers – something Finance Minister Katy Gallagher has made strong efforts to reverse.

    Lambie’s push for answers

    Lambie has introduced the Remuneration Tribunal Amendment (There for the Public Service, Not Profit) Bill 2025 to cap senior APS pay at $430,000. It’s a bid to address remuneration which has raced far beyond ministerial salaries, and well beyond reasonable public expectations.

    The Lambie bill has been referred to a Senate committee, which presents an opportunity to evolve debate on the deeper reasons for what has gone awry in the public service and to devise a response that gets to the root of the problem.

    The precarity of contract employment for departmental secretaries, which is used to justify high salaries, is both unnecessary and harmful to the quality of public policy and administration in Australia.

    The intrinsic interest and challenge of working for the nation and the betterment of its citizens has always paid well in terms of a “psychic wage” on top of senior public servants’ actual salaries. If the complaint is that an executive could make much more in the private sector, they’re probably not the right person to work in the public service anyway.

    One reply to Lambie’s Insta post summed up the situation:

    It’s the pollies that made this mess.

    Politicians are the ones who are going to have to clean it up.

    It is neither likely nor plausible that highly paid public service leaders will cut their own salaries in return for an end to the five year contract system for secretaries.

    But that is what a return to good public service governance – and to frank and fearless advice in the national interest – now requires.

    Chris Wallace has received funding from the Australian Research Council.

    – ref. The prime minister earns $607,000 a year. Why does his top public servant earn more than $1 million? – https://theconversation.com/the-prime-minister-earns-607-000-a-year-why-does-his-top-public-servant-earn-more-than-1-million-250045

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Will the government’s online gambling advertising legislation ever eventuate? Don’t bet on it

    Source: The Conversation (Au and NZ) – By David Rowe, Emeritus Professor of Cultural Research, Institute for Culture and Society, Western Sydney University

    Lukas Coch/AAP, Shutterstock, X.com, The Conversation

    As the next federal election came into view before the summer break, concern increased that Labor wouldn’t be honouring its commitment to introduce new restrictions on online (especially sport) gambling advertising during the current parliamentary sitting.

    Those fears were well-founded, despite pressure from many sides and broad bipartisan political support.

    The Greens made a last-ditch attempt to cooperate with the government to pass some reforms in the February 2025 sitting, but were rebuffed.

    Instead, Communications Minister Michelle Rowland blamed the delay on the complexity of advertising reform and the need to continue consultation.

    This is despite a House of Representatives inquiry into the harmful impacts of online gambling, led by the late Labor MP Peta Murphy, concluding in June 2023.

    In the meantime, much less well-researched but wider-ranging legislation banning children under 16 from using social media was introduced and passed in just eight days in November 2024.

    There are both deep historical and immediate political reasons why this legislation has been bogged down.

    A nation of sporting gamblers

    Professional sport in Australia has an inglorious history of promoting unhealthy goods and services, including cigarettes, sugary drinks, fast food, alcohol and gambling.

    Television and, later, online advertisements have been particularly effective vehicles for connecting sport gambling with potential consumers.

    This has prompted widespread objections to the health and social consequences and intrusiveness of gambling advertising.

    There is convincing evidence that Australia’s world-leading per capita expenditure on gambling and the integral role of sport gambling ads cause harm to a considerable number of people, families and communities.

    Such harm includes negative effects on relationships, health, psychological wellbeing, finances, work and study.

    The gamblification of sport

    Although sport comes third among the main areas of gambling in Australia, it is by far the most prominent, especially in homes.



    Read more:
    Pokies? Lotto? Sports betting? Which forms of problem gambling affect Australians the most?

    The so-called gamblification of sport, accelerated by digitisation, normalises the concept of betting odds among children and young people.

    Sport and media’s enthusiasm for gambling money has provoked strong pushback over its negative social consequences, with mounting public pressure for greater controls on gambling advertising.

    A recent poll found about 72% of those surveyed wanted to ban online gambling ads, while another of AFL fans reported 76% supported television and radio ad bans.

    The response of and to the Murphy Report

    The House of Representatives Standing Committee on Social Policy and Legal Affairs was charged with investigating online gambling and its impacts.

    It made 31 recommendations, with rare cross-party support, in its “you win some, you lose more” report (which was not only about sport).

    Contrary to most public debate and media reporting, it did not formally recommend a blanket ban on all gambling advertising. Its terms of reference only covered online gambling.

    But Murphy’s foreword – calling for a “phased, comprehensive ban on all gambling advertising on all media; broadcast and online, that leaves no room for circumvention” – caught the most attention.

    The main recommendation was for a three-year, four-phase ban on all forms of online gambling advertising. Dedicated racing channels and programming were exempted and small community radio broadcasters given extra time to comply.

    After further consultation lasting almost 18 months, it’s clear this calibrated proposal is not favoured by the government.

    Journalists were backgrounded about a watered down law capping ads for gambling at two per hour per TV channel before 10pm, and banning them for an hour either side of a live sport event. A blanket ban would apply only to betting ads on social media and other digital platforms.

    Yet even these more modest reforms did not proceed as anticipated.

    The reason, it has been widely reported, was heavy lobbying by the sport, media and gambling industries.

    High-stakes horse trading

    The privileged access to government gained by these sectional interests has had a powerful impact on gambling legislation.

    The Coalition of Major Professional and Participation Sports has continually resisted tightening regulations on sport sponsorship and gambling ads.

    It claims their reduction or loss would damage the financial viability of its members and their support for grassroots sport.

    However, Australia’s major sports leagues derive significant gambling revenue from direct sources (sponsorship, product fees) and indirectly from the value of media rights.

    The AFL and NRL generated cumulative revenues of $1.06 billion and $701 million respectively in 2023.

    So while sport leagues would have less capacity to monetise their media rights if gambling ads were reduced, it would neither threaten professional sport in general nor seriously jeopardise funding of junior participation.

    Follow the money

    An Australian Communications and Media Authority report discovered capital city free-to-air television featured 1,381 gambling spots per day between May 2022 and April 2023.

    Gambling companies spent $162 million on free-to-air television advertising during this period, not including further investment on subscription platforms.

    As free-to-air commercial TV is already losing advertising income to digital media platforms, restrictions on this lucrative advertiser category would not be as easily absorbed today as the tobacco advertising bans in the 1970s.

    This is why sports and their media and betting partners are fighting so hard against the legislation.

    And all this capital flowing to and through sport, gambling, and media has created the potential to inflict political harm on gambling reforming governments.

    Negotiations behind closed doors can easily break out into public campaigns, akin to the infamous “axe the (carbon) tax” agitation, if powerful organisations are not satisfied.

    Gambling and the young voter

    Sport gambling ads in Australia have especially targeted young men in a jocular larrikin style. But young women are now also being induced to gamble in greater numbers.



    Read more:
    9 out of 10 Australian sports bettors are men. Here’s why that might change

    Those who want curbs on sport gambling advertisements have been cast by some as “wowsers” and “puritans”.

    State intervention in the sport-media-gambling nexus may provoke a backlash that working-class men are under attack for engaging in their favourite pastimes.

    Like the latest reforms to sport TV anti-siphoning laws, new policies are the product of high-stakes horse trading between nervous governments and pressure groups with manifestly variable degrees of influence.

    As in the gambling world, evidence-based policy can confront very uneven odds.

    David Rowe has received funding from the Australian Research Council to support research relating to this article: Struggling for Possession: The Control and Use of Online Media Sport (with Brett Hutchins, DP0877777); ‘A Nation of “Good Sports”? Cultural Citizenship and Sport in Contemporary Australia’ (DP130104502), and ‘Australian Cultural Fields: National and Transnational Dynamics’ (with Tony Bennett et al, DP140101970).

    Hunter Fujak 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. Will the government’s online gambling advertising legislation ever eventuate? Don’t bet on it – https://theconversation.com/will-the-governments-online-gambling-advertising-legislation-ever-eventuate-dont-bet-on-it-238084

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Humans generate 62 million tonnes of e-waste each year. Here’s what happens when it’s recycled

    Source: The Conversation (Au and NZ) – By Sukhbir Sandhu, Associate Professor in Sustainability, University of South Australia

    Huguette Roe/Shutterstock

    In 2022, humans generated roughly 62 million tonnes of electronic waste – or e-waste. That’s enough to fill more than 1.5 million garbage trucks. And by 2030, that figure is expected to rise to 82 million tonnes.

    Australia is a huge contributor to this problem. Every year each Australian, on average, generates 20kg of e-waste, compared with the global average of 7kg per person.

    Less than one quarter of the world’s e-waste – which includes desktop computers, laptops, mobile phones, televisions, kitchen appliances, batteries and solar panels – is recycled. That means most of it ends up in landfill, which can result in major accidents. For example, earlier this month, a rubbish truck in Melbourne caught fire after a laptop battery that had been thrown in the garbage bin exploded.

    So what can be done to increase the amount of e-waste that’s recycled? And what actually happens during the e-waste recycling process?

    From breakdown to planned obsolescence

    The growing problem of e-waste is fuelled by both perceived and planned obsolescence.

    Perceived obsolescence happens when we discard functioning products in favour of newer models. For example, we buy the latest iPhone even though our current phone works fine.

    Planned obsolescence is when manufacturers “build in” a use-by date. One way they do this is by not offering software updates, which then renders an existing product incompatible with other, newer devices or presents cybersecurity risks.

    Of course, sometimes existing electronic products simply stop working, which forces us to buy a replacement.

    A multi-step process

    In Australia, the process of recycling e-waste starts with consumers delivering their e-waste to a designated collection centre.

    Some manufacturers offer trade-in programs where people can drop off their old phones and laptops at retail shops and get a small discount on a new product. Some councils also run services for periodic collection and offer drop-off centres for e-waste.

    The collection is followed by sorting and inspection of the discarded items.

    At this stage, the discarded electronic items are sorted based on the type of devices. Some devices can be refurbished and reused if they are still functional.

    Those that cannot be refurbished are dismantled.

    This involves separating the various components, such as circuit boards, batteries and wiring. Hazardous materials such as mercury and lead are removed, before recyclable and valuable materials are recovered. These include plastic and glass, as well as precious metals like gold and silver from the circuit boards.

    After purifying and refining, the recycled materials can be used in new electronics or put to other uses.

    According to the national waste report there are 535 facilities in Australia that accept e-waste. But only 20 facilities reprocess these for further recycling.

    This means much of Australia’s e-waste is exported to China, India and other Asian countries to be recycled.

    Less than one quarter of the world’s e-waste is recycled.
    SibFilm/Shutterstock

    Significant challenges

    There are significant challenges when it comes to recycling e-waste.

    Some are associated with consumer behaviour. For example, unlike kerbside recycling services for paper, glass and cardboard, recycling e-waste generally involves consumers making a special trip to a designated drop-off location. Accessing these locations involves extra effort and can be an inconvenience which deters people from recycling their e-waste.

    Also, compared to container deposit schemes, where people get paid to recycle their glass bottles and cans, there are generally no monetary incentives available for recycling e-waste.

    Concerns about data security also prevent some people from recycling their e-waste. People are often reluctant to recycle their computer, phones and other electronic items as they are worried their data could be stolen during the recycling process, even after they have deleted the files.

    The other set of challenges with recycling e-waste comes from the economic incentives for recycling. Recycling e-waste is complex and costly. The costs involved in recycling can often be higher than the price of raw materials. Hazardous wastes must also be disposed safely, which adds extra costs to the process.

    All of this makes it less attractive for businesses to recycle e-waste.

    The way forward

    Australia’s new circular economy framework is expected to provide a way forward for businesses to address some of these challenges.

    The framework seeks to double the rate at which Australia recovers, recycles and reuses materials by 2035, partly by providing direction and designing policies for businesses that encourage recycling.

    It’s also important for local governments to make it easier for people to recycle their e-waste.

    While it may not be cost effective for councils to have kerbside recycling for e- waste, they could place e-waste collection centres in local areas.

    Councils can also explore offering consumers incentives for e-waste recycling. These incentives can be monetary. But even non-monetary incentives, such as letting people know how their recycled e-waste contributes to addressing the bigger problem, can be a motivation.

    And finally, as consumers, it would help to remember that the best way to contribute to decreasing e-waste is to repair and reuse our existing products.

    Sukhbir Sandhu has received funding from Australian Research Council, European Union, and Green Industries SA.

    – ref. Humans generate 62 million tonnes of e-waste each year. Here’s what happens when it’s recycled – https://theconversation.com/humans-generate-62-million-tonnes-of-e-waste-each-year-heres-what-happens-when-its-recycled-249842

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Carnivorous dinosaurs thrived in Australia 120 million years ago, new fossils show

    Source: The Conversation (Au and NZ) – By Jake Kotevski, PhD Candidate, School of Biological Sciences, Monash University and PhD Candidate, Museums Victoria Research Institute

    The shinbone of a megaraptorid. Nadir Kinani/Museums Victoria

    Between 122 and 108 million years ago, the Australian landmass was much farther south than today. Victoria was positioned within the Antarctic Circle, separated from Tasmania by a vast rift valley rather than open sea.

    This was the Early Cretaceous, and lush forests filled with dinosaurs dominated the landscape. We still find traces of these animals in Victoria’s fossil record.

    Most of the dinosaur fossils found in Victoria belong to small plant-eaters called ornithopods. But there are also a few theropod fossils — a diverse group that includes all known carnivorous dinosaurs, as well as modern birds.

    More than 250 theropod bones have been found in the Victorian Cretaceous. In the palaeontology collections of Museums Victoria, we have now identified five theropod fossils of particular importance. Our work on these bones has been published today in the Journal of Vertebrate Paleontology.

    Artist’s interpretation of the Cretaceous Bass Coast, 121.4 million years ago. From left to right: carcharodontosaur, unenlagiine and megaraptorid.
    Jonathan Metzger for Museums Victoria

    Shinbones and tail bones

    Research over the past decade has revealed striking similarities between Australian and South American dinosaurs. These include megaraptorids with claws shaped like scythes, and small, fleet-footed elasmarian ornithopods. There were also armoured parankylosaurians and colossal sauropods with long necks and small heads.

    These parallels may seem surprising at first, but both continents retained a connection to Antarctica throughout much of the Cretaceous Period.

    Our newly described fossils show that a bunch of different carnivorous dinosaurs seen in South America also thrived in the Cretaceous of southeastern Australia.

    Two shinbones provide the first evidence of carcharodontosaurs (“shark-toothed lizards”) in Australia. A third shinbone provides strong evidence for the presence of unenlagiines, a southern group of dromaeosaurs (“running lizards”).

    A fourth shinbone and two tail vertebrae with their chevrons, which are from a megaraptorid, represent one of Australia’s largest-known carnivorous dinosaurs.

    A first for Australia

    Carcharodontosaurs were apex predators in South America and Africa for much of the mid-Cretaceous. This group of theropods had large skulls, massive teeth and small arms. They were some of the largest predators to ever walk the Earth.

    Despite their success in South America and Africa, carcharodontosaur fossils had never been found in Australia – until now. With the two shinbones, we now have the first evidence of the group on this continent.

    Curiously, these Australian carcharodontosaurs are much smaller than their African and South American cousins, and the bones we have most closely resemble a carcharodontosaur from Thailand.

    One of the Victorian carcharodontosaur shinbones was found on the Otway Coast. The other was found on the Bass Coast, in rocks nearly 10 million years older. This demonstrates these predators were successful in this area for at least 10 million years. It’s a notable find.

    The large-bodied carcharodontosaurs of Africa and South America were seemingly specialised for hunting long-necked sauropods. However, this food source was likely not available to the Victorian polar carcharodontosaurs: sauropod fossils have never been found in Victoria.

    A cliff face at Twin Reefs Bunurong Coastal Reserve, the area where some of the dinosaur fossils were found.
    John Broomfield/Museums Victoria

    The Australian ‘raptors’

    Unenlagiines were lightly built (and likely feathered) predatory dinosaurs, related to Velociraptor of Jurassic Park fame.

    Most unenlagiine fossil remains have been found in South America. Historically, Australia had limited evidence for their presence, as well.

    Our description of a new unenlagiine shinbone from Victoria provides robust evidence for their success in polar Australia during the Early Cretaceous.

    The snouts of unenlagiines were relatively longer, and their arms relatively shorter than those of their dromaeosaur cousins from the Northern Hemisphere. This implies they had a rather different diet. The Victorian unenlagiine presumably ate fish or small land-dwelling animals. One possibility is the small mammals for which the Victorian Cretaceous is perhaps most famous – more than 50 mammal jaws have been found to date, and some are from ancient relatives of platypus and echidna.

    Theropod shin bones from the Bass Coast. From left to right: unenlagiine, carcharodontosaur and megaraptorid.
    Nadir Kinani/Museums Victoria

    The apex predators of Victoria

    Large predatory dinosaurs – on the scale of Tyrannosaurus – are notably absent from the Australian fossil record. Instead, Australian dinosaur populations seem to have been dominated by medium-sized carnivores called megaraptorids.

    Megaraptorid fossils are only known from South America and Australia. The most complete skeletons are from South America, including a relatively large one – roughly nine metres long. Australia’s only reasonably complete megaraptorid is Australovenator wintonensis from Winton, central Queensland.

    The shinbone and tail vertebrae we describe provide evidence for a large megaraptorid in southeast Australia. Despite being almost 30 million years older than the roughly five- to six-metre-long Australovenator, the Bass Coast megaraptorid was at least 5% larger: approaching the size of its South American relatives.

    The large, muscular arms and fingers tipped with fearsome scythe-like claws were presumably the primary weapons of megaraptorids. In contrast to almost every other group of medium-sized carnivorous dinosaurs, megaraptorids had elongated snouts with small teeth.

    The abundance of ornithopods in Victoria presumably made this region more suited to smaller prey specialists like megaraptorids, rather than sauropod-stalking carcharodontosaurs.

    Back row: two megaraptor fossils. Front row: the shinbone of a unenlagiine; two shinbones of carcharodontosaurs; the shinbone of a megaraptor.
    Nadir Kinani/Museums Victoria

    More discoveries yet to come

    We have much to learn about Australia’s Cretaceous dinosaurs. Our study shows how even five isolated and incomplete bones can improve our understanding of our continent’s fossil heritage.

    Carcharodontosaurs might have been the apex predators in South America, but megaraptorids ruled the roost in the land down under.

    The fantastic dinosaur fossil record of Victoria has grown over nearly 40 years thanks to the efforts of Dinosaur Dreaming, an ongoing volunteer palaeontology project, and citizen scientists like Melissa Lowery. Thanks to their efforts, our window into Victoria’s ancient past continues to become ever clearer.

    Jake Kotevski receives funding from an Australian Government Research Training Stipend and Monash University – Museums Victoria scholarship.

    Stephen Poropat received funding from the Winston Churchill Memorial Trust to observe fossil specimens relevant to this paper.

    – ref. Carnivorous dinosaurs thrived in Australia 120 million years ago, new fossils show – https://theconversation.com/carnivorous-dinosaurs-thrived-in-australia-120-million-years-ago-new-fossils-show-242290

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI New Zealand: Council’s value for money programme gains momentum

    Source: Auckland Council

    Auckland Council has recorded $43.2 million in savings so far this year – two-thirds of the annual savings target of $66 million.

    The council’s savings initiative is part of an ongoing programme to ensure ratepayers get value for money and cost-effectiveness across the organisation, through clear targets set in the Long-term Plan.

    Council savings is supported by Value for Money reviews and a new Better Value Projects initiative which will ensure investments in projects are good value for money.

    Through the mayoral proposal for the Annual Plan 2025/2026, Mayor Wayne Brown sought further measures on how council procures and effectively spends ratepayer money on projects.

    The new Better Value Projects programme was presented at this week’s Revenue, Expenditure and Value Committee.

    “This is very positive progress. We have a responsibility to ensure ratepayers’ money is used efficiently – we need to spend council money like it is our own,” says Mayor Brown.

    “I’ve always been clear that we need to stop wasting money. That’s why as a council we need to follow basic rules like setting a maximum price and having a clear definition of the problem you’re trying to solve, before spending ratepayer money. 

    “We need to consistently deliver every project for Aucklanders effectively and affordably.  I’m pleased to see this piece of work coming to life – as a result, Aucklanders can be more assured that council projects are ensuring best value for money.”

    Better Value Projects identifies 10 areas that will make the biggest difference to improving value ratepayers receive from the council procuring and delivering capital projects, as well as some operational programmes.

    This includes increased use of standard designs; setting maximum prices; added rigour to scoping and design work; additional problem definition and value assessments; and careful selection of providers, across location and performance measures.

    Over $150 million savings this year
    Revenue, Expenditure and Value Committee chair Deputy Mayor Desley Simpson says in addition to Better Value Projects, the council has made great progress on savings, with $43.2 million already achieved.

    The $66 million savings target this financial year builds on ongoing savings of $90 million per year, totalling over $150 million savings this year.

    “We are looking at every opportunity to ensure cost-efficiency, and it’s paying off. This work directly rewards our ratepayers, helping rates to remain affordable and ensuring every dollar goes as far as it can,” says Cr Simpson.

    “Achieving 65 per cent of our 2024/2025 savings target so far is a positive sign that we’re striving hard to deliver on our commitments. Alongside savings, we’re continuing additional programmes to deliver value for money to ratepayers.”

    All savings are directly used to keep rates and debt down. For every $25 million of planned savings in the council’s budget, rates rise of around 1 per cent is avoided. 

    Value for Money reviews
    The Revenue, Value and Expenditure Committee is also overseeing the council’s ongoing programme of Value for Money reviews.

    The reviews approved by the committee this week mean 10 Value for Money reviews will have been undertaken this council term, and in total 20 reviews since the start of the programme in 2017.

    Under Section 17a of the Local Government Act, the council’s Value for Money team works across the council group to consider current services and recommend new ways to deliver, while optimising council’s investment in assets, achieving greater integration and cost-effectiveness.

    “Continuing to build our savings and value for money work, alongside new options through Better Value Projects, is one way the council demonstrates its efficiency and its focus on delivering value for ratepayers,” says Cr Simpson.

    MIL OSI New Zealand News –