NewzIntel.com

Category: Business

  • MIL-OSI United Kingdom: Government aims to crack down on rogue higher education operators

    Source: United Kingdom – Executive Government & Departments

    Proposed reforms to tighten rules around franchising and crack down on fraud in the student finance system that cost taxpayers £2m in 2022/23.   

    Tough new reforms proposed by the Department for Education would tighten controls on university franchising arrangements in England to safeguard public money and shore up the reputation of our world class higher education sector.   

    Franchising enables universities to subcontract courses to external providers. When done right, it makes it easier for more students to access higher education, especially in areas where options are limited, or when people such as mature students are balancing study around work and life.    

    The number of students studying at franchised providers has more than doubled in recent years, with over 130,000 using their services. But an investigation by the National Audit Office (NAO) raised concerns about franchising arrangements, with fraud in the sector costing the public purse £2m in 2022/23.    

    More than half of 341 franchised institutions are currently unregistered with the Office for Students (OfS), meaning they are not directly regulated. In some cases, students are offered poor-quality courses that fail to justify their cost, showing a clear need for reform.   

    Under new government plans published for consultation today (30 January), delivery partners with 300 or more students would be required to register with the OfS to ensure their courses meet rigorous quality standards, in order to be eligible to access to student finance.   

    If the OfS finds that a provider is not meeting the standards required of registered providers, they will be publicly held to account and could risk facing fines and the suspension of their registration, in the most extreme circumstances. The OfS will also publish student outcome data for all subcontracted partnerships every year.   

    The move comes ahead of a significant package of higher education reforms due to be announced this summer that will put students first and cement universities’ status as engines of growth in their communities, as the government delivers its Plan for Change to drive economic growth and raise living standards.   

    Education Secretary Bridget Phillipson said:   

    We are committed to cracking down on rogue operators who misuse public money and damage the reputation of our world-class universities.  

    Franchising can be a valuable tool to widen access to higher education, and these proposals will ensure students can trust the quality of their courses, no matter where or how they choose to study.   

    The credibility of our universities is at stake, but these proposals seek to protect students and safeguard taxpayer’s money, as part of our work to drive growth through our Plan for Change.  

    Franchising allows courses to be adapted to suit different needs and circumstances. It also helps colleges and universities work more closely together and gives new, innovative education providers a chance to get started.   

    Providers such as London South Bank University, which partners with some of the city’s top NHS teaching Trusts to help students’ studying midwifery and other front-line services, demonstrate the real-world benefits of franchising – with students achieving their qualifications alongside invaluable workplace experience, helping to address the critical shortage of healthcare professionals.   

    Universities and colleges whose names and brands are being used by franchises will remain responsible for ensuring their subcontracted arrangements meet quality and standards requirements. New regulations could come into effect as soon as spring next year, depending on the outcome of the consultation.  

    These reforms would protect the high standards of the UK’s higher education sector, which contributes around £265bn to the UK economy, ensuring it continues to drive economic growth and benefit both students and the wider economy.

    These proposals would strengthen the OfS’s ability to protect the public money that goes into franchising. The consultation aligns with the OfS’s work to strengthen conditions of registration related to governance and student interests.    

    The OfS will shortly be consulting on changes to requirements for providers that wish to join its register to ensure they are all managed and governed effectively.   

    The OfS has currently paused registration of new higher education providers to support the sector with financial sustainability concerns, after finding 72 per cent of providers could be operating in deficit by next year.   

    They expect the pause to stay in place until August 2025 but will review the decision every three months, meaning the registration process should be open again by the time the government’s proposed changes would take effect.   

    The Department for Education’s consultation will be open from 30 January to 4 April 2024. After the consultation closes, the Department for Education will review the responses and aims to publish its official response in the summer.

    DfE media enquiries

    Central newsdesk – for journalists 020 7783 8300

    Updates to this page

    Published 30 January 2025

    MIL OSI United Kingdom –

  • MIL-OSI Africa: East Africa Energy Cooperation Summit (EA-ECS) and the East African Community (EAC): Driving Energy Across the Region

    Source: Africa Press Organisation – English (2) – Report:

    ARUSHA, Tanzania, January 30, 2025/APO Group/ —

    The expansion of the East African regional energy sector is happening right now and is set for future growth. This was the clear message from the East Africa Energy Cooperation Summit (EA-ECS) as the two-day summit kicked off in Arusha.  

    Africa’s energy IPPs, EPCF stakeholders, investors and policy makers were welcomed to a summit set to shape the future of East Africa’s energy landscape by Jean-Baptiste Havugimana, Director Productive Sectors, East African Community (EAC). 

    Speaking at the opening ceremony, he noted that the access to electricity in the East African region is currently below 50 percent on average, although countries such as Kenya have gone beyond 75 percent. 

    “The EAC Secretariat is cooperating with all Member States to increase the rate of access. This is being achieved through shared mini hydro power grids strategically placed along border regions. The EAC is also working to establish a regional power exchange market for shared resources,” said Mr.Havugimana. 

    Abundant resource discoveries and large-scale projects highlight East Africa’s readiness for market expansion like never before. In the round table titled “Powering East Africa—The Time Is Now,” leaders from the public sector and utilities from Malawi, Kenya, Uganda, and Tanzania discussed the vision and roadmap for the future.  

    Costa Rubagumya, Deputy MD, TANESCO, Tanzania said, “Our country connects an average of 500,000 new clients per year. But with Tanzania being among the 12 signatories of Mission 300, from the recent African Energy Summit, the country targets to triple the number to 1.6 million new customers per annum.” 

    With the theme “Resource Wealth. Energy Access. Investment Opportunities” the two-day summit will explore what this means for private sector opportunities in depth.  

    Some of the discussions expected to take center stage  is the push for alternative sources of energy.  Stakeholders have emphasized the importance of a diversified energy mix to ensure grid stability and support large-scale industrial expansion and commercial and industrial (C&I) power generation.  

    Joseph Siror , the Managing Director and  Chief Executive Officer of Kenya Power and Lighting (KPLC) said the East African countries should now move away from over dependency on Hydro sources of energy. He pointed out that, with climate change and fluctuating weather patterns, hydroelectricity is no longer reliable and the EAC region must now consider auxiliary power sources such as Geothermal, Solar, Wind and Biogas. 

    EA-ECS is welcoming prominent politicians and leaders from across the EAC and its energy sector. They join the private sector business developers shaping the future of East Africa’s energy landscape.  

    MIL OSI Africa –

  • MIL-OSI: YieldMax™ Launches Option Income Strategy ETF on CARVANA CO. (CVNA)

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO and MILWAUKEE and NEW YORK, Jan. 30, 2025 (GLOBE NEWSWIRE) — YieldMax™ announced the launch today of the following ETF:

    YieldMax™ CARVANA Option Income Strategy ETF (NYSE Arca: CVNY)

    CVNY seeks to generate current income by pursuing options-based strategies on CARVANA CO. (CVNA). CVNY is actively managed by Tidal Financial Group. CNVY does not invest directly in CVNA.

    CVNY is the newest member of the YieldMax™ ETF family and like all YieldMax™ ETFs, aims to deliver current income to investors. With respect to distributions, CVNY will be a Group C ETF and its first distribution is expected to be announced on March 5, 2025. Please see table below for distribution information for all outstanding YieldMax™ ETFs as of January 29, 2025.

    ETF Ticker1 ETF Name Reference Asset Distribution per Share2
    TSLY YieldMax™ TSLA Option Income Strategy ETF TSLA $ 0.7170
    OARK YieldMax™ Innovation Option Income Strategy ETF ARKK $ 0.3298
    APLY YieldMax™ AAPL Option Income Strategy ETF AAPL $ 0.2841
    NVDY YieldMax™ NVDA Option Income Strategy ETF NVDA $ 0.8294
    AMZY YieldMax™ AMZN Option Income Strategy ETF AMZN $ 0.4005
    FBY YieldMax™ META Option Income Strategy ETF META $ 0.6390
    GOOY YieldMax™ GOOGL Option Income Strategy ETF GOOGL $ 0.3324
    NFLY YieldMax™ NFLX Option Income Strategy ETF NFLX $ 0.5830
    CONY YieldMax™ COIN Option Income Strategy ETF COIN $ 0.8339
    MSFO YieldMax™ MSFT Option Income Strategy ETF MSFT $ 0.3667
    DISO YieldMax™ DIS Option Income Strategy ETF DIS $ 0.2782
    XOMO YieldMax™ XOM Option Income Strategy ETF XOM $ 0.3485
    JPMO YieldMax™ JPM Option Income Strategy ETF JPM $ 0.6929
    AMDY YieldMax™ AMD Option Income Strategy ETF AMD $ 0.3404
    PYPY YieldMax™ PYPL Option Income Strategy ETF PYPL $ 0.4264
    SQY YieldMax™ SQ Option Income Strategy ETF SQ $ 0.6338
    MRNY YieldMax™ MRNA Option Income Strategy ETF MRNA $ 0.2730
    AIYY YieldMax™ AI Option Income Strategy ETF AI $ 0.3763
    YMAX YieldMax™ Universe Fund of Option Income ETFs Multiple $ 0.1469
    YMAG YieldMax™ Magnificent 7 Fund of Option Income ETFs Multiple $ 0.1898
    MSTY YieldMax™ MSTR Option Income Strategy ETF MSTR $ 2.2792
    ULTY YieldMax™ Ultra Option Income Strategy ETF Multiple $ 0.5715
    YBIT YieldMax™ Bitcoin Option Income Strategy ETF Bitcoin ETP $ 0.7893
    CRSH YieldMax™ Short TSLA Option Income Strategy ETF TSLA $ 0.2862
    GDXY YieldMax™ Gold Miners Option Income Strategy ETF GDX® $ 0.5937
    SNOY YieldMax™ SNOW Option Income Strategy ETF SNOW $ 0.7392
    ABNY YieldMax™ ABNB Option Income Strategy ETF ABNB $ 0.4220
    FIAT YieldMax™ Short COIN Option Income Strategy ETF COIN $ 0.6530
    DIPS YieldMax™ Short NVDA Option Income Strategy ETF NVDA $ 0.5026
    BABO YieldMax™ BABA Option Income Strategy ETF BABA $ 0.4693
    YQQQ YieldMax™ Short N100 Option Income Strategy ETF N100 $ 0.3873
    TSMY YieldMax™ TSM Option Income Strategy ETF TSM $ 0.6449
    SMCY YieldMax™ SMCI Option Income Strategy ETF SMCI $ 1.7215
    PLTY YieldMax™ PLTR Option Income Strategy ETF PLTR $ 2.9826
    BIGY YieldMax™ Target 12™ Big 50 Option Income ETF Multiple $ 0.5130
    SOXY YieldMax™ Target 12™ Semiconductor Option Income ETF Multiple $ 0.5256
    MARO YieldMax™ MARA Option Income Strategy ETF MARA $ 2.1002
    FEAT YieldMax™ Dorsey Wright Featured 5 Income ETF Multiple $ 2.1944
    FIVY YieldMax™ Dorsey Wright Hybrid 5 Income ETF Multiple $ 1.6771
    LFGY YieldMax™ Crypto Industry & Tech Option Income ETF Multiple $ 0.6294
    GPTY* YieldMax™ AI & Tech Option Income ETF Multiple   –

    Note: DIPS, FIAT, CRSH and YQQQ are hereinafter referred to as the “Short ETFs” and “ADR” stands for American Depositary Receipt.

    You are not guaranteed a distribution under the ETFs. Distributions for the ETFs (if any) are variable and may vary significantly from period to period and may be zero.

    Investors in the Funds will not have rights to receive dividends or other distributions with respect to the underlying reference asset(s).

    *The inception date for GPTY is January 22, 2025.

    1Each ETF’s strategy (except those of the Short ETFs) will cap potential gains if its reference asset’s shares increase in value, yet subjects an investor to all potential losses if the reference asset’s shares decrease in value. Such potential losses may not be offset by income received by the ETF. Each Short ETF’s strategy will cap potential gains if its reference asset decreases in value, yet subjects an investor to all potential losses if the reference asset increases in value. Such potential losses may not be offset by income received by the ETF.

    2 The Distribution per Share is the most recently declared such amount as of close on January 29, 2025.

    Each Fund has a limited operating history and while each Fund’s objective is to provide current income, there is no guarantee the Fund will make a distribution. Distributions are likely to vary greatly in amount.

    Important Information

    Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about each Fund, visit our website at www.YieldMaxETFs.com. Read the prospectus or summary prospectus carefully before investing.

    There is no guarantee that any Fund’s investment strategy will be properly implemented, and an investor may lose some or all of its investment in any such Fund.

    Tidal Financial Group is the adviser for all YieldMax™ ETFs.

    THE FUND, TRUST, AND ADVISER ARE NOT AFFILIATED WITH ANY UNDERLYING REFERENCE ASSET.

    Risk Disclosures (applicable to all YieldMax ETFs referenced above, except the Short ETFs)

    YMAX, YMAG, FEAT and FIVY generally invest in other YieldMax™ ETFs. As such, these two Funds are subject to the risks listed in this section, which apply to all the YieldMax™ ETFs they may hold from time to time.

    Investing involves risk. Principal loss is possible.

    Call Writing Strategy Risk. The path dependency (i.e., the continued use) of the Fund’s call writing strategy will impact the extent that the Fund participates in the positive price returns of the underlying reference asset and, in turn, the Fund’s returns, both during the term of the sold call options and over longer time periods.

    Counterparty Risk. The Fund is subject to counterparty risk by virtue of its investments in options contracts. Transactions in some types of derivatives, including options, are required to be centrally cleared (“cleared derivatives”). In a transaction involving cleared derivatives, the Fund’s counterparty is a clearing house rather than a bank or broker. Since the Fund is not a member of clearing houses and only members of a clearing house (“clearing members”) can participate directly in the clearing house, the Fund will hold cleared derivatives through accounts at clearing members.

    Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund’s investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, imperfect correlation with underlying investments or the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions.

    Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying instrument, including the anticipated volatility, which are affected by fiscal and monetary policies and by national and international political, changes in the actual or implied volatility or the reference asset, the time remaining until the expiration of the option contract and economic events.

    Distribution Risk. As part of the Fund’s investment objective, the Fund seeks to provide current income. There is no assurance that the Fund will make a distribution in any given month. If the Fund does make distributions, the amounts of such distributions will likely vary greatly from one distribution to the next.

    High Portfolio Turnover Risk. The Fund may actively and frequently trade all or a significant portion of the Fund’s holdings. A high portfolio turnover rate increases transaction costs, which may increase the Fund’s expenses.

    Liquidity Risk. Some securities held by the Fund, including options contracts, may be difficult to sell or be illiquid, particularly during times of market turmoil.

    Non-Diversification Risk. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund.

    New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.

    Price Participation Risk. The Fund employs an investment strategy that includes the sale of call option contracts, which limits the degree to which the Fund will participate in increases in value experienced by the underlying reference asset over the Call Period.

    Single Issuer Risk. Issuer-specific attributes may cause an investment in the Fund to be more volatile than a traditional pooled investment which diversifies risk or the market generally. The value of the Fund, which focuses on an individual security (ARKK, TSLA, AAPL, NVDA, AMZN, META, GOOGL, NFLX, COIN, MSFT, DIS, XOM, JPM, AMD, PYPL, SQ, MRNA, AI, MSTR, Bitcoin ETP, GDX®, SNOW, ABNB, BABA, TSM, SMCI, PLTR, MARA, CVNA), may be more volatile than a traditional pooled investment or the market as a whole and may perform differently from the value of a traditional pooled investment or the market as a whole.

    Inflation Risk. Inflation risk is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the present value of the Fund’s assets and distributions, if any, may decline.

    Risk Disclosures (applicable only to GPTY)

    Artificial Intelligence Risk. Issuers engaged in artificial intelligence typically have high research and capital expenditures and, as a result, their profitability can vary widely, if they are profitable at all. The space in which they are engaged is highly competitive and issuers’ products and services may become obsolete very quickly. These companies are heavily dependent on intellectual property rights and may be adversely affected by loss or impairment of those rights. The issuers are also subject to legal, regulatory and political changes that may have a large impact on their profitability. A failure in an issuer’s product or even questions about the safety of the product could be devastating to the issuer, especially if it is the marquee product of the issuer. It can be difficult to accurately capture what qualifies as an artificial intelligence company.

    Technology Sector Risk. The Fund will invest substantially in companies in the information technology sector, and therefore the performance of the Fund could be negatively impacted by events affecting this sector. Market or economic factors impacting technology companies and companies that rely heavily on technological advances could have a significant effect on the value of the Fund’s investments. The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation and competition, both domestically and internationally, including competition from foreign competitors with lower production costs. Stocks of information technology companies and companies that rely heavily on technology, especially those of smaller, less-seasoned companies, tend to be more volatile than the overall market. Information technology companies are heavily dependent on patent and intellectual property rights, the loss or impairment of which may adversely affect profitability.

    Risk Disclosures (applicable only to MARO)

    Digital Assets Risk: The Fund does not invest directly in Bitcoin or any other digital assets. The Fund does not invest directly in derivatives that track the performance of Bitcoin or any other digital assets. The Fund does not invest in or seek direct exposure to the current “spot” or cash price of Bitcoin. Investors seeking direct exposure to the price of Bitcoin should consider an investment other than the Fund. Digital assets like Bitcoin, designed as mediums of exchange, are still an emerging asset class. They operate independently of any central authority or government backing and are subject to regulatory changes and extreme price volatility.

    Risk Disclosures (applicable only to BABO and TSMY)

    Currency Risk: Indirect exposure to foreign currencies subjects the Fund to the risk that currencies will decline in value relative to the U.S. dollar. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates and the imposition of currency controls or other political developments in the U.S. or abroad.

    Depositary Receipts Risk: Investment in ADRs may be less liquid than the underlying shares in their primary trading market.

    Foreign Market and Trading Risk: The trading markets for many foreign securities are not as active as U.S. markets and may have less governmental regulation and oversight.

    Foreign Securities Risk: Investments in securities of non-U.S. issuers involve certain risks that may not be present with investments in securities of U.S. issuers, such as risk of loss due to foreign currency fluctuations or to political or economic instability, as well as varying regulatory requirements applicable to investments in non-U.S. issuers. There may be less information publicly available about a non-U.S. issuer than a U.S. issuer. Non-U.S. issuers may also be subject to different regulatory, accounting, auditing, financial reporting and investor protection standards than U.S. issuers.

    Risk Disclosures (applicable only to GDXY)

    Risk of Investing in Foreign Securities. The Fund is exposed indirectly to the securities of foreign issuers selected by GDX®’s investment adviser, which subjects the Fund to the risks associated with such companies. Investments in the securities of foreign issuers involve risks beyond those associated with investments in U.S. securities.

    Risk of Investing in Gold and Silver Mining Companies. The Fund is exposed indirectly to gold and silver mining companies selected by GDX®’s investment adviser, which subjects the Fund to the risks associated with such companies.

    The Fund invests in options contracts based on the value of the VanEck Gold Miners ETF (GDX®), which subjects the Fund to some of the same risks as if it owned GDX®, as well as the risks associated with Canadian, Australian and Emerging Market Issuers, and Small-and Medium-Capitalization companies.

    Risk Disclosures (applicable only to YBIT)

    YBIT does not invest directly in Bitcoin or any other digital assets. YBIT does not invest directly in derivatives that track the performance of Bitcoin or any other digital assets. YBIT does not invest in or seek direct exposure to the current “spot” or cash price of Bitcoin. Investors seeking direct exposure to the price of Bitcoin should consider an investment other than YBIT.

    Bitcoin Investment Risk: The Fund’s indirect investment in Bitcoin, through holdings in one or more Underlying ETPs, exposes it to the unique risks of this emerging innovation. Bitcoin’s price is highly volatile, and its market is influenced by the changing Bitcoin network, fluctuating acceptance levels, and unpredictable usage trends.

    Digital Assets Risk: Digital assets like Bitcoin, designed as mediums of exchange, are still an emerging asset class. They operate independently of any central authority or government backing and are subject to regulatory changes and extreme price volatility. Potentially No 1940 Act Protections. As of the date of this Prospectus, there is only a single eligible Underlying ETP, and it is an investment company subject to the 1940 Act.

    Bitcoin ETP Risk: The Fund invests in options contracts that are based on the value of the Bitcoin ETP. This subjects the Fund to certain of the same risks as if it owned shares of the Bitcoin ETP, even though it does not. Bitcoin ETPs are subject, but not limited, to significant risk and heightened volatility. An investor in a Bitcoin ETP may lose their entire investment. Bitcoin ETPs are not suitable for all investors. In addition, not all Bitcoin ETPs are registered under the Investment Company Act of 1940. Those Bitcoin ETPs that are not registered under such statute are therefore not subject to the same regulations as exchange traded products that are so registered.

    Risk Disclosures (applicable only to the Short ETFs)

    Investing involves risk. Principal loss is possible.

    Price Appreciation Risk. As part of the Fund’s synthetic covered put strategy, the Fund purchases and sells call and put option contracts that are based on the value of the underlying reference asset. This strategy subjects the Fund to certain of the same risks as if it shorted the underlying reference asset, even though it does not. By virtue of the Fund’s indirect inverse exposure to changes in the value of the underlying reference asset, the Fund is subject to the risk that the value of the underlying reference asset increases. If the value of the underlying reference asset increases, the Fund will likely lose value and, as a result, the Fund may suffer significant losses.

    Put Writing Strategy Risk. The path dependency (i.e., the continued use) of the Fund’s put writing (selling) strategy will impact the extent that the Fund participates in decreases in the value of the underlying reference asset and, in turn, the Fund’s returns, both during the term of the sold put options and over longer time periods.

    Purchased OTM Call Options Risk. The Fund’s strategy is subject to potential losses if the underlying reference asset increases in value, which may not be offset by the purchase of out-of-the-money (OTM) call options. The Fund purchases OTM calls to seek to manage (cap) the Fund’s potential losses from the Fund’s short exposure to the underlying reference asset if it appreciates significantly in value. However, the OTM call options will cap the Fund’s losses only to the extent that the value of the underlying reference asset increases to a level that is at or above the strike level of the purchased OTM call options. Any increase in the value of the underlying reference asset to a level that is below the strike level of the purchased OTM call options will result in a corresponding loss for the Fund. For example, if the OTM call options have a strike level that is approximately 100% above the then-current value of the underlying reference asset at the time of the call option purchase, and the value of the underlying reference asset increases by at least 100% during the term of the purchased OTM call options, the Fund will lose all its value. Since the Fund bears the costs of purchasing the OTM calls, such costs will decrease the Fund’s value and/or any income otherwise generated by the Fund’s investment strategy.

    Counterparty Risk. The Fund is subject to counterparty risk by virtue of its investments in options contracts. Transactions in some types of derivatives, including options, are required to be centrally cleared (“cleared derivatives”). In a transaction involving cleared derivatives, the Fund’s counterparty is a clearing house rather than a bank or broker. Since the Fund is not a member of clearing houses and only members of a clearing house (“clearing members”) can participate directly in the clearing house, the Fund will hold cleared derivatives through accounts at clearing members.

    Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund’s investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, imperfect correlation with underlying investments or the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions.

    Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying reference asset, including the anticipated volatility, which are affected by fiscal and monetary policies and by national and international political, changes in the actual or implied volatility or the reference asset, the time remaining until the expiration of the option contract and economic events.

    Distribution Risk. As part of the Fund’s investment objective, the Fund seeks to provide current income. There is no assurance that the Fund will make a distribution in any given month. If the Fund does make distributions, the amounts of such distributions will likely vary greatly from one distribution to the next.

    High Portfolio Turnover Risk. The Fund may actively and frequently trade all or a significant portion of the Fund’s holdings.

    Liquidity Risk. Some securities held by the Fund, including options contracts, may be difficult to sell or be illiquid, particularly during times of market turmoil.

    Non-Diversification Risk. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund.

    New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.

    Price Participation Risk. The Fund employs an investment strategy that includes the sale of put option contracts, which limits the degree to which the Fund will participate in decreases in value experienced by the underlying reference asset over the Put Period.

    Single Issuer Risk. Issuer-specific attributes may cause an investment in the Fund to be more volatile than a traditional pooled investment which diversifies risk or the market generally. The value of the Fund, for any Fund that focuses on an individual security (e.g., TSLA, COIN, NVDA), may be more volatile than a traditional pooled investment or the market as a whole and may perform differently from the value of a traditional pooled investment or the market as a whole.

    Inflation Risk. Inflation risk is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the present value of the Fund’s assets and distributions, if any, may decline.

    Risk Disclosures (applicable only to YQQQ)

    Index Overview. The Nasdaq 100 Index is a benchmark index that includes 100 of the largest non-financial companies listed on the Nasdaq Stock Market, based on market capitalization.

    Index Level Appreciation Risk. As part of the Fund’s synthetic covered put strategy, the Fund purchases and sells call and put option contracts that are based on the Index level. This strategy subjects the Fund to certain of the same risks as if it shorted the Index, even though it does not. By virtue of the Fund’s indirect inverse exposure to changes in the Index level, the Fund is subject to the risk that the Index level increases. If the Index level increases, the Fund will likely lose value and, as a result, the Fund may suffer significant losses. The Fund may also be subject to the following risks: innovation and technological advancement; strong market presence of Index constituent companies; adaptability to global market trends; and resilience and recovery potential.

    Index Level Participation Risk. The Fund employs an investment strategy that includes the sale of put option contracts, which limits the degree to which the Fund will benefit from decreases in the Index level experienced over the Put Period. This means that if the Index level experiences a decrease in value below the strike level of the sold put options during a Put Period, the Fund will likely not experience that increase to the same extent and any Fund gains may significantly differ from the level of the Index losses over the Put Period. Additionally, because the Fund is limited in the degree to which it will participate in decreases in value experienced by the Index level over each Put Period, but has significant negative exposure to any increases in value experienced by the Index level over the Put Period, the NAV of the Fund may decrease over any given time period. The Fund’s NAV is dependent on the value of each options portfolio, which is based principally upon the inverse of the performance of the Index level. The Fund’s ability to benefit from the Index level decreases will depend on prevailing market conditions, especially market volatility, at the time the Fund enters into the sold put option contracts and will vary from Put Period to Put Period. The value of the options contracts is affected by changes in the value and dividend rates of component companies that comprise the Index, changes in interest rates, changes in the actual or perceived volatility of the Index and the remaining time to the options’ expiration, as well as trading conditions in the options market. As the Index level changes and time moves towards the expiration of each Put Period, the value of the options contracts, and therefore the Fund’s NAV, will change. However, it is not expected for the Fund’s NAV to directly inversely correlate on a day-to-day basis with the returns of the Index level. The amount of time remaining until the options contract’s expiration date affects the impact that the value of the options contracts has on the Fund’s NAV, which may not be in full effect until the expiration date of the Fund’s options contracts. Therefore, while changes in the Index level will result in changes to the Fund’s NAV, the Fund generally anticipates that the rate of change in the Fund’s NAV will be different than the inverse of the changes experienced by the Index level.

    Holdings

    As of January 29, 2025, the YieldMax™ CARVANA Option Income Strategy ETF did not hold any shares of CARVANA CO. (CVNA). As of such date, the holdings of CVNA in such fund were 0.00%.

    YieldMax™ ETFs are distributed by Foreside Fund Services, LLC. Foreside is not affiliated with Tidal Financial Group, YieldMax™ ETFs.

    © 2025 YieldMax™ ETFs

    The MIL Network –

  • MIL-OSI: Roper Technologies announces 2024 financial results

    Source: GlobeNewswire (MIL-OSI)

    SARASOTA, Fla., Jan. 30, 2025 (GLOBE NEWSWIRE) — Roper Technologies, Inc. (Nasdaq: ROP) reported financial results for the fourth quarter and full year ended December 31, 2024. The results in this press release are presented on a continuing operations basis.

    Fourth quarter 2024 highlights

    • Revenue increased 16% to $1.88 billion; acquisition contribution was +9% and organic revenue was +7%
    • Operating cash flow was $722 million; adjusted operating cash flow increased 13%
    • GAAP net earnings increased 22% to $462 million; adjusted net earnings increased 10% to $520 million
    • Adjusted EBITDA increased 13% to $744 million
    • GAAP DEPS increased 22% to $4.28; adjusted DEPS increased 10% to $4.81

    Full year 2024 highlights

    • Revenue increased 14% to $7.04 billion; acquisition contribution was +8% and organic revenue was +6%
    • Operating cash flow was $2.39 billion; adjusted operating cash flow increased 16%
    • GAAP net earnings increased 13% to $1.55 billion; adjusted net earnings increased 10% to $1.98 billion
    • Adjusted EBITDA increased 13% to $2.83 billion
    • GAAP DEPS increased 13% to $14.35; adjusted DEPS increased 10% to $18.31

    “It was an outstanding year for Roper’s long-term cash flow compounding model. We grew free cash flow 16% to $2.3 billion, surpassing the $2 billion milestone for the first time in our history,” said Neil Hunn, Roper Technologies’ President and CEO. “Our total revenue growth of 14% for the year was driven by 6% organic growth and an 8% contribution from our disciplined and process-driven capital deployment capability. To this end, we deployed $3.6 billion of capital toward high-quality vertical software acquisitions, highlighted by Procare Solutions, a leading early childhood education software company, and Transact Campus, which was successfully combined with our CBORD education & healthcare software business.”

    2025 outlook and guidance

    “Roper not only grew substantially in 2024, but we enter 2025 as a fundamentally better company. This past year, we upgraded key leadership talent, expanded our capital deployment function, and advanced our operating model. As a result, we are entering 2025 with broad-based and positive momentum. Our double-digit 2025 total revenue growth outlook is fueled by improving organic growth and meaningful contributions from our 2024 acquisitions. We believe these growth trends, combined with our significant M&A firepower and large pipeline of attractive acquisition opportunities, position Roper well to continue delivering compelling long-term cash flow compounding for our shareholders,” concluded Mr. Hunn.

    Roper expects full year 2025 adjusted DEPS of $19.75 – $20.00 with first quarter adjusted DEPS of $4.70 – $4.74. The Company expects full year total revenue growth of 10%+, with organic revenue growth of +6 – 7%.

    The Company’s guidance excludes the impact of unannounced future acquisitions or divestitures.

    Conference call to be held at 8:00 AM (ET) today

    A conference call to discuss these results has been scheduled for 8:00 AM ET on Thursday, January 30, 2025. The call can be accessed via webcast or by dialing +1 800-836-8184 (US/Canada) or +1 646-357-8785, using conference call ID 30275. Webcast information and conference call materials will be made available in the Investors section of Roper’s website (www.ropertech.com) prior to the start of the call. The webcast can also be accessed directly by using the following URL https://event.webcast. Telephonic replays will be available for up to two weeks and can be accessed by dialing +1 646-517-4150 with access code 30275#.

    Use of non-GAAP financial information

    The Company supplements its consolidated financial statements presented on a GAAP basis with certain non-GAAP financial information to provide investors with greater insight, increase transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. Reconciliation of non-GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial schedules or tables. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated.

    Minority interests

    Following the sale of a majority stake in its industrial businesses to CD&R, Roper holds a minority interest in Indicor. The fair value of Roper’s equity investment in Indicor is updated on a quarterly basis and reported as “equity investments gain, net.” During the quarter, Roper sold its minority interest in Certinia and recognized the associated gain within “equity investments gain, net.” Roper makes non-GAAP adjustments for the impacts associated with these investments.

    Table 1: Revenue and adjusted EBITDA reconciliation ($M)
    (from continuing operations)
      Q4 2023   Q4 2024   V %   FY 2023   FY 2024   V %
    GAAP revenue $ 1,613     $ 1,877       16 %   $ 6,178     $ 7,039       14 %
                           
    Components of revenue growth                      
    Organic           7 %             6 %
    Acquisitions           9 %             8 %
    Foreign exchange           — %             — %
    Revenue growth           16 %             14 %
                           
    Adjusted EBITDA reconciliation                      
    GAAP net earnings $ 378     $ 462         $ 1,368     $ 1,549      
    Taxes   99       128           375       418      
    Interest expense   50       71           165       259      
    Depreciation   9       9           35       37      
    Amortization   187       202           720       776      
    EBITDA $ 723     $ 873       21 %   $ 2,663     $ 3,039       14 %
                           
    Restructuring-related expenses associated with the Syntellis (’23) and Transact (’24) acquisitions   —       —           9       9      
    Transaction-related expenses for completed acquisitions   3       1           8       8      
    Financial impacts associated with the minority investments in Indicor & CertiniaA   (67 )     (141 )         (165 )     (235 )    
    Gain on sale of non-operating assets   —       —           (3 )     —      
    Legal settlement charge   —       11           —       11      
    Adjusted EBITDA $ 659     $ 744      13 %   $ 2,511     $ 2,832       13 %
    % of revenue   40.8 %     39.6 %    (120 bps )     40.6 %     40.2 %     (40 bps )
    Table 2: Adjusted net earnings reconciliation ($M)
    (from continuing operations)
      Q4 2023   Q4 2024   V %   FY 2023   FY 2024   V %
    GAAP net earnings $ 378     $ 462       22 %   $ 1,368     $ 1,549       13 %
    Restructuring-related expenses associated with the Syntellis (’23) and Transact (’24) acquisitions   —       —           7       7      
    Transaction-related expenses for completed acquisitions   2       1           6       6      
    Financial impacts associated with the minority investments in Indicor & CertiniaA   (52 )     (105 )         (135 )     (182 )    
    Gain on sale of non-operating assets   —       —           (3 )     —      
    Legal settlement charge   —       9           —       9      
    Amortization of acquisition-related
    intangible assetsB    		   143       153           552       588      
    Adjusted net earningsC $ 471     $ 520       10 %   $ 1,795     $ 1,978       10 %
    Table 3: Adjusted DEPS reconciliation
    (from continuing operations)
      Q4 2023   Q4 2024   V %   FY 2023   FY 2024   V %
    GAAP DEPS $ 3.50     $ 4.28       22 %   $ 12.74     $ 14.35       13 %
    Restructuring-related expenses associated with the Syntellis (’23) and Transact (’24) acquisitions   —       —           0.06       0.07      
    Transaction-related expenses for completed acquisitions   0.02       0.01           0.06       0.06      
    Financial impacts associated with the minority investments in Indicor & CertiniaA   (0.48 )     (0.97 )         (1.25 )     (1.68 )    
    Gain on sale of non-operating assets   —       —           (0.02 )     —      
    Legal settlement charge   —       0.08           —       0.08      
    Amortization of acquisition-related intangible assetsB   1.33       1.41           5.13       5.45      
    Adjusted DEPSC $ 4.37     $ 4.81       10 %   $ 16.71     $ 18.31       10 %
    Table 4: Adjusted cash flow reconciliation ($M)
    (from continuing operations)
      Q4 2023   Q4 2024   V %   FY 2023   FY 2024   V %
    Operating cash flow $ 622     $ 722       16 %   $ 2,037     $ 2,393       17 %
    Taxes paid in period related to divestiture   16       —           32       —      
    Adjusted operating cash flow $ 638     $ 722       13 %   $ 2,070     $ 2,393       16 %
    Capital expenditures   (30 )     (27 )         (68 )     (66 )    
    Capitalized software expenditures   (11 )     (12 )         (40 )     (45 )    
    Adjusted free cash flow $ 596     $ 684       15 %   $ 1,962     $ 2,282       16 %
    Table 5: Forecasted adjusted DEPS reconciliation
    (from continuing operations)
      Q1 2025   FY 2025
      Low End   High End   Low End   High End
    GAAP DEPSD $ 3.29     $ 3.33     $ 14.21     $ 14.46  
    Financial impacts associated with the minority investment in IndicorA   TBD       TBD       TBD       TBD  
    Amortization of acquisition-related intangible assetsB   1.41       1.41       5.54       5.54  
    Adjusted DEPSC $ 4.70     $ 4.74     $ 19.75     $ 20.00  

    Footnotes:

    A. Adjustments related to the financial impacts associated with the minority investments in Indicor & Certinia as shown below ($M, except per share data). Forecasted results do not include any potential impacts associated with our minority investment in Indicor, as these potential impacts cannot be reasonably predicted. These impacts will be excluded from all non-GAAP results in future periods.
                                 
        Q4 2023A   Q4 2024A     FY 2023A   FY 2024A     Q1 2025E   FY 2025E
      Pretax $ (67 )   $ (141 )     $ (165 )   $ (235 )     TBD   TBD
      After-tax $ (52 )   $ (105 )     $ (135 )   $ (182 )     TBD   TBD
      Per share $ (0.48 )   $ (0.97 )     $ (1.25 )   $ (1.68 )     TBD   TBD
                                 
    B. Actual results and forecast of estimated amortization of acquisition-related intangible assets as shown below ($M, except per share data).
                                 
        Q4 2023A   Q4 2024A     FY 2023A   FY 2024A     Q1 2025E   FY 2025E
      Pretax $ 181     $ 193       $ 698     $ 745       $ 193   $ 762
      After-tax $ 143     $ 153       $ 552     $ 588       $ 153   $ 602
      Per share $ 1.33     $ 1.41       $ 5.13     $ 5.45       $ 1.41   $ 5.54
                                 
    C. All actual and forecasted non-GAAP adjustments are taxed at 21% with the exception of the financial impacts associated with minority investments.
                                 
    D. Forecasted GAAP DEPS do not include any potential impacts associated with our minority investment in Indicor. These impacts will be excluded from all non-GAAP results in future periods.
       

    Note: Numbers may not foot due to rounding.

    About Roper Technologies

    Roper Technologies is a constituent of the Nasdaq 100, S&P 500, and Fortune 1000. Roper has a proven, long-term track record of compounding cash flow and shareholder value. The Company operates market leading businesses that design and develop vertical software and technology enabled products for a variety of defensible niche markets. Roper utilizes a disciplined, analytical, and process-driven approach to redeploy its excess capital toward high-quality acquisitions. Additional information about Roper is available on the Company’s website at www.ropertech.com.

    Contact information:
    Investor Relations
    941-556-2601
    investor-relations@ropertech.com

    The information provided in this press release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements may include, among others, statements regarding operating results, the success of our internal operating plans, and the prospects for newly acquired businesses to be integrated and contribute to future growth, profit and cash flow expectations. Forward-looking statements may be indicated by words or phrases such as “anticipate,” “estimate,” “plans,” “expects,” “projects,” “should,” “will,” “believes,” “intends” and similar words and phrases. These statements reflect management’s current beliefs and are not guarantees of future performance. They involve risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statement. Such risks and uncertainties include our ability to identify and complete acquisitions consistent with our business strategies, integrate acquisitions that have been completed, realize expected benefits and synergies from, and manage other risks associated with, acquired businesses, including obtaining any required regulatory approvals with respect thereto. We also face other general risks, including our ability to realize cost savings from our operating initiatives, general economic conditions and the conditions of the specific markets in which we operate, including risks related to labor shortages and rising interest rates, changes in foreign exchange rates, risks related to changing U.S. and foreign trade policies, including increased trade restrictions or tariffs, risks associated with our international operations, cybersecurity and data privacy risks, including litigation resulting therefrom, risks related to political instability, armed hostilities, incidents of terrorism, public health crises (such as the COVID-19 pandemic) or natural disasters, increased product liability and insurance costs, increased warranty exposure, future competition, changes in the supply of, or price for, parts and components, including as a result of inflation and potential supply chain constraints, environmental compliance costs and liabilities, risks and cost associated with litigation, potential write-offs of our substantial intangible assets, and risks associated with obtaining governmental approvals and maintaining regulatory compliance for new and existing products. Important risks may be discussed in current and subsequent filings with the SEC. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

     

    Roper Technologies, Inc.      
    Condensed Consolidated Balance Sheets (unaudited)
    (Amounts in millions)      
           
      December 31, 2024   December 31, 2023
    ASSETS:      
           
    Cash and cash equivalents $ 188.2     $ 214.3  
    Accounts receivable, net   885.1       829.9  
    Inventories, net   120.8       118.6  
    Income taxes receivable   25.6       47.7  
    Unbilled receivables   127.3       106.4  
    Prepaid expenses and other current assets   195.7       164.5  
    Total current assets   1,542.7       1,481.4  
           
    Property, plant and equipment, net   149.7       119.6  
    Goodwill   19,312.9       17,118.8  
    Other intangible assets, net   9,059.6       8,212.1  
    Deferred taxes   54.1       32.2  
    Equity investments   772.3       795.7  
    Other assets   443.4       407.7  
    Total assets $ 31,334.7     $ 28,167.5  
           
    LIABILITIES AND STOCKHOLDERS’ EQUITY:      
           
    Accounts payable $ 148.1     $ 143.0  
    Accrued compensation   289.0       250.0  
    Deferred revenue   1,737.4       1,583.8  
    Other accrued liabilities   546.2       446.5  
    Income taxes payable   68.4       40.4  
    Current portion of long-term debt, net   1,043.1       499.5  
    Total current liabilities   3,832.2       2,963.2  
           
    Long-term debt, net of current portion   6,579.9       5,830.6  
    Deferred taxes   1,630.6       1,513.1  
    Other liabilities   424.4       415.8  
    Total liabilities   12,467.1       10,722.7  
           
    Common stock   1.1       1.1  
    Additional paid-in capital   3,014.6       2,767.0  
    Retained earnings   16,034.9       14,816.3  
    Accumulated other comprehensive loss   (166.5 )     (122.8 )
    Treasury stock   (16.5 )     (16.8 )
    Total stockholders’ equity   18,867.6       17,444.8  
    Total liabilities and stockholders’ equity $ 31,334.7     $ 28,167.5  
           
    Roper Technologies, Inc.          
    Condensed Consolidated Statements of Earnings (unaudited)
    (Amounts in millions, except per share data)
                   
      Three months ended December 31,   Year ended December 31,
        2024       2023       2024       2023  
    Net revenues $ 1,877.1     $ 1,613.5     $ 7,039.2     $ 6,177.8  
    Cost of sales   594.8       488.3       2,160.9       1,870.6  
    Gross profit   1,282.3       1,125.2       4,878.3       4,307.2  
                   
    Selling, general and administrative expenses   757.6       662.4       2,881.5       2,562.0  
    Income from operations   524.7       462.8       1,996.8       1,745.2  
                   
    Interest expense, net   70.8       50.1       259.2       164.7  
    Equity investments gain, net   (141.0 )     (66.7 )     (234.6 )     (165.4 )
    Other expense, net   4.1       2.7       5.0       2.8  
                   
    Earnings before income taxes   590.8       476.7       1,967.2       1,743.1  
                   
    Income taxes   128.5       99.2       417.9       374.7  
                   
    Net earnings from continuing operations   462.3       377.5       1,549.3       1,368.4  
                   
    Loss from discontinued operations, net of tax   —       —       —       (4.1 )
    Gain on disposition of discontinued operations, net of tax   —       11.5       —       19.9  
    Net earnings from discontinued operations   —       11.5       —       15.8  
                   
    Net earnings $ 462.3     $ 389.0     $ 1,549.3     $ 1,384.2  
                   
    Net earnings per share from continuing operations:              
    Basic $ 4.31     $ 3.53     $ 14.47     $ 12.83  
    Diluted $ 4.28     $ 3.50     $ 14.35     $ 12.74  
                   
    Net earnings per share from discontinued operations:              
    Basic $ —     $ 0.11     $ —     $ 0.15  
    Diluted $ —     $ 0.11     $ —     $ 0.15  
                   
    Net earnings per share:              
    Basic $ 4.31     $ 3.64     $ 14.47     $ 12.98  
    Diluted $ 4.28     $ 3.61     $ 14.35     $ 12.89  
                   
    Weighted average common shares outstanding:              
    Basic   107.3       106.9       107.1       106.6  
    Diluted   108.1       107.7       108.0       107.4  
    Roper Technologies, Inc.            
    Selected Segment Financial Data (unaudited)            
    (Amounts in millions; percentages of net revenues)            
                                   
      Three months ended December 31,   Year ended December 31,
        2024       2023       2024       2023  
      Amount   %   Amount   %   Amount   %   Amount   %
    Net revenues:                              
    Application Software $ 1,056.9         $ 851.8         $ 3,868.3         $ 3,186.9      
    Network Software   373.5           362.7           1,475.6           1,439.4      
    Technology Enabled Products   446.7           399.0           1,695.3           1,551.5      
    Total $ 1,877.1         $ 1,613.5         $ 7,039.2         $ 6,177.8      
                                   
                                   
    Gross profit:                              
    Application Software $ 708.0       67.0 %   $ 586.6       68.9 %   $ 2,647.6       68.4 %   $ 2,195.8       68.9 %
    Network Software   318.9       85.4 %     311.6       85.9 %     1,254.8       85.0 %     1,225.6       85.1 %
    Technology Enabled Products   255.4       57.2 %     227.0       56.9 %     975.9       57.6 %     885.8       57.1 %
    Total $ 1,282.3       68.3 %   $ 1,125.2       69.7 %   $ 4,878.3       69.3 %   $ 4,307.2       69.7 %
                                   
                                   
    Operating profit*:                              
    Application Software $ 272.9       25.8 %   $ 219.5       25.8 %   $ 1,023.4       26.5 %   $ 820.8       25.8 %
    Network Software   174.4       46.7 %     167.4       46.2 %     666.5       45.2 %     632.4       43.9 %
    Technology Enabled Products   150.3       33.6 %     127.0       31.8 %     574.3       33.9 %     518.7       33.4 %
    Total $ 597.6       31.8 %   $ 513.9       31.9 %   $ 2,264.2       32.2 %   $ 1,971.9       31.9 %
                                   
                                   
    * Segment operating profit is before unallocated corporate general and administrative expenses and enterprise-wide stock-based compensation. These expenses were $72.9 and $51.1 for the three months ended December 31, 2024 and 2023, respectively, and $267.4 and $226.7 for the twelve months ended December 31, 2024 and 2023, respectively.
    Roper Technologies, Inc.  
    Condensed Consolidated Statements of Cash Flows (unaudited)
    (Amounts in millions)      
      Year ended December 31,
        2024       2023  
    Cash flows from operating activities:      
    Net earnings from continuing operations $ 1,549.3     $ 1,368.4  
    Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities:      
    Depreciation and amortization of property, plant and equipment   37.1       35.4  
    Amortization of intangible assets   775.7       719.8  
    Amortization of deferred financing costs   9.8       9.9  
    Non-cash stock compensation   145.9       123.5  
    Equity investments gain, net   (234.6 )     (165.4 )
    Income tax provision   417.9       374.7  
    Changes in operating assets and liabilities, net of acquired businesses:      
    Accounts receivable   14.4       (50.2 )
    Unbilled receivables   (18.5 )     (7.5 )
    Inventories   (1.9 )     (6.6 )
    Prepaid expenses and other current assets   (19.5 )     (4.3 )
    Accounts payable   (13.0 )     18.2  
    Other accrued liabilities   109.3       (1.0 )
    Deferred revenue   110.7       93.9  
    Cash taxes paid for gain on disposal of business   —       (32.5 )
    Cash income taxes paid, excluding tax associated with gain on disposal of business   (483.8 )     (423.4 )
    Other, net   (5.6 )     (15.5 )
    Cash provided by operating activities from continuing operations   2,393.2       2,037.4  
    Cash used in operating activities from discontinued operations   —       (2.3 )
    Cash provided by operating activities   2,393.2       2,035.1  
           
    Cash flows from (used in) investing activities:      
    Acquisitions of businesses, net of cash acquired   (3,612.9 )     (2,052.7 )
    Capital expenditures   (66.0 )     (68.0 )
    Capitalized software expenditures   (45.0 )     (40.0 )
    Distributions from equity investment   10.8       32.5  
    Proceeds from sale of equity investment   245.6       —  
    Other, net   (1.0 )     (0.1 )
    Cash used in investing activities from continuing operations   (3,468.5 )     (2,128.3 )
    Cash provided by disposition of discontinued operations   —       2.0  
    Cash used in investing activities   (3,468.5 )     (2,126.3 )
           
    Cash flows from (used in) financing activities:      
    Proceeds from senior notes   2,000.0       —  
    Payments of senior notes   (500.0 )     (700.0 )
    Borrowings (payments) under revolving line of credit, net   (235.0 )     360.0  
    Debt issuance costs   (24.6 )     —  
    Cash dividends to stockholders   (321.9 )     (290.2 )
    Treasury stock sales   18.5       15.5  
    Proceeds from stock-based compensation, net   88.6       115.2  
    Other, net   43.9       —  
    Cash provided by (used in) financing activities   1,069.5       (499.5 )
           
    (Continued)
    Roper Technologies, Inc.  
    Condensed Consolidated Statements of Cash Flows (unaudited) – Continued
    (Amounts in millions)      
      Year ended December 31,
        2024       2023  
    Effect of exchange rate changes on cash   (20.3 )     12.2  
           
    Net decrease in cash and cash equivalents   (26.1 )     (578.5 )
           
    Cash and cash equivalents, beginning of year   214.3       792.8  
           
    Cash and cash equivalents, end of year $ 188.2     $ 214.3  
           

    The MIL Network –

  • MIL-OSI: Bread Financial Provides Performance Update for December 2024

    Source: GlobeNewswire (MIL-OSI)

    COLUMBUS, Ohio, Jan. 30, 2025 (GLOBE NEWSWIRE) — Bread Financial®Holdings, Inc. (NYSE: BFH), a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions, provided a performance update. The following tables present the Company’s net loss rate and delinquency rate for the periods indicated.

      For the
    month ended
    December 31, 2024    		   For the
    three months
    ended
    December 31, 2024
      (dollars in millions)
    End-of-period credit card and other loans $ 18,896     $ 18,896  
    Average credit card and other loans (1) $ 18,647     $ 18,156  
    Year-over-year change in average credit card and other loans (1)   — %     (1 %)
    Net principal losses (2) $ 129     $ 367  
    Net loss rate (1)(2)   8.1 %     8.0 %
                   
      As of
    December 31, 2024    		   As of
    December 31, 2023
      (dollars in millions)
    30 days + delinquencies – principal $ 1,034     $ 1,163  
    Period ended credit card and other loans – principal $ 17,418     $ 17,906  
    Delinquency rate   5.9 %     6.5 %
                   

    ______________________________

    (1) Beginning in January 2024, we revised the calculation of Average credit card and other loans to more closely align with industry practice by incorporating an average daily balance. Prior to 2024, Average credit card and other loans represent the average balance of the loans at the beginning and end of each month, averaged over the periods indicated. Consequentially, the calculations for Year-over-year change in average credit card and other loans and Net loss rate differ for the periods presented.
    (2) As a result of hurricanes Helene and Milton we froze delinquency progression for cardholders in Federal Emergency Management Agency identified impact zones for one billing cycle, which will result in modestly lower Net principal losses and Net loss rate in the fourth quarter of 2024, and consequently these actions will negatively impact Net principal losses and Net loss rate in the second quarter of 2025.
       

    About Bread Financial® 
    Bread Financial® (NYSE: BFH) is a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions to millions of U.S. consumers. Our payment solutions, including Bread Financial general purpose credit cards and savings products, empower our customers and their passions for a better life. Additionally, we deliver growth for some of the most recognized brands in travel & entertainment, health & beauty, jewelry and specialty apparel through our private label and co-brand credit cards and pay-over-time products providing choice and value to our shared customers.

    To learn more about Bread Financial, our global associates and our sustainability commitments, visit breadfinancial.com or follow us on Instagram and LinkedIn.

    Forward-Looking Statements

    This 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. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “plan,” “likely,” “may,” “should” or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding, and the guidance we give with respect to, our anticipated operating or financial results, future financial performance and outlook, future dividend declarations, and future economic conditions.

    We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that are difficult to predict and, in many cases, beyond our control. Accordingly, our actual results could differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. Factors that could cause the outcomes to differ materially include, but are not limited to, the following: macroeconomic conditions, including market conditions, inflation, interest rates, labor market conditions, recessionary pressures or concerns over a prolonged economic slowdown, and the related impact on consumer spending behavior, payments, debt levels, savings rates and other behaviors; global political and public health events and conditions, including ongoing wars and military conflicts and natural disasters; future credit performance, including the level of future delinquency and write-off rates; the loss of, or reduction in demand from, significant brand partners or customers in the highly competitive markets in which we compete; the concentration of our business in U.S. consumer credit; inaccuracies in the models and estimates on which we rely, including the amount of our Allowance for credit losses and our credit risk management models; the inability to realize the intended benefits of acquisitions, dispositions and other strategic initiatives; our level of indebtedness and ability to access financial or capital markets; pending and future federal and state legislation, regulation, supervisory guidance, and regulatory and legal actions, including, but not limited to, those related to financial regulatory reform and consumer financial services practices, as well as any such actions with respect to late fees, interchange fees or other charges; impacts arising from or relating to the transition of our credit card processing services to third party service providers that we completed in 2022; failures or breaches in our operational or security systems, including as a result of cyberattacks, unanticipated impacts from technology modernization projects or otherwise; and any tax or other liability or adverse impacts arising out of or related to the spinoff of our former LoyaltyOne segment or the bankruptcy filings of Loyalty Ventures Inc. (LVI) and certain of its subsidiaries and subsequent litigation or other disputes. In addition, the Consumer Financial Protection Bureau (CFPB) has issued a final rule that, absent a successful legal challenge, will place significant limits on credit card late fees, which would have a significant impact on our business and results of operations for at least the short term and, depending on the effectiveness of the mitigating actions that we have taken or may in the future take in anticipation of, or in response to, the final rule, may potentially adversely impact us over the long term; we cannot provide any assurance as to the effective date of the rule, the result of any pending or future challenges or other litigation relating to the rule, or our ability to mitigate or offset the impact of the rule on our business and results of operations. The foregoing factors, along with other risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward-looking statements, are described in greater detail under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

    Contacts
    Brian Vereb — Investor Relations
    Brian.Vereb@breadfinancial.com

    Susan Haugen — Investor Relations
    Susan.Haugen@breadfinancial.com

    Rachel Stultz — Media
    Rachel.Stultz@breadfinancial.com

    The MIL Network –

  • MIL-OSI: Brightstar Capital Partners Acquires WW Williams, a Nationwide Provider of Mechanical Repair Services and Products

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK and COLUMBUS, Ohio, Jan. 30, 2025 (GLOBE NEWSWIRE) — Brightstar Capital Partners (“Brightstar”), a middle market private equity firm focused on investing in business services, industrials, consumer, and government services and technology, announced today that it has acquired WW Williams (“Williams” or the “Company”) from One Equity Partners. Williams is a provider of equipment and aftermarket parts and service for commercial trucks, dry and refrigerated trailers, diesel engines, and power generation systems. The Company’s senior management team will retain an ownership stake in the business.

    Founded in 1912, WW Williams is a diversified aftermarket parts and service provider to the commercial vehicle and equipment markets that operates across the US. The Company represents major original equipment manufacturers (OEMs) and provides a full range of industry-leading products, parts and services focused on keeping customers’ vehicles and equipment in operation and minimizing downtime. The Company operates in 23 states, with over 50 locations and more than 1,250 staff members.

    “Williams has built an impressive reputation for quality service and technical expertise during its long and distinguished history,” said Reidar Brekke, Partner at Brightstar. “We see significant opportunities to partner with the leadership team and accelerate Williams’ growth by expanding its offerings, continuing to support and grow its OEM relationships, executing a targeted M&A strategy, and investing in people and technology to enhance operational efficiency.”

    “Williams has proudly served customers for more than 110 years and joining forces with Brightstar marks an exciting new chapter for the Company,” said John Simmons, CEO of Williams. “Brightstar’s operational expertise and experience scaling industrial businesses align perfectly with our vision for the future. We’re eager to work together to expand our capabilities and geographic reach while maintaining our commitment to exceptional customer service.”

    “Partnering with Brightstar opens up exciting new avenues for Williams,” said Bobby Bell, CFO of Williams. “We are confident that with Brightstar’s support we will continue to provide differentiated services to current customers, build new customer relationships, improve our systems, and expand our business segments.”

    “Talented and dedicated technicians are the heart of Williams’ success,” said Larry Schmidlapp, Managing Director at Brightstar. “At Brightstar, we have extensive experience partnering with companies that rely on a skilled technician base, and we’re excited to apply this knowledge to accelerate Williams’ growth.”

    Moelis & Company LLC served as financial advisor and Kirkland & Ellis LLP served as legal counsel to Brightstar. Robert W. Baird & Co. served as financial advisor and Milbank LLP served as legal counsel to Williams.

    About WW Williams

    Founded in 1912, WW Williams is a diversified provider of aftermarkets parts and service the commercial vehicle and equipment markets operating across the US. The company represents major original equipment manufacturers (OEMs) and provides a full range of industry-leading products, parts, and services focused on keeping customers’ vehicles and equipment in operation and minimizing downtime. The Company operates in 23 states, with over 50 locations and more than 1,250 staff members. For more information, please visit www.wwwilliams.com.

    About Brightstar Capital Partners

    Brightstar Capital Partners is a middle market private equity firm with $5bn AUM that is focused on investing in business services, industrials, consumer, and government services and technology, where Brightstar believes it can drive significant value with respect to the management, operations, and strategic direction of the business. Since its founding in 2015, Brightstar has accumulated extensive experience partnering with family, founder, or entrepreneur-led businesses. Brightstar employs an operationally intensive “Us & Us” approach that leverages its considerable hands-on operational expertise and deep relationship network to help companies reach their full potential. For more information, please visit www.brightstarcp.com.

    Brightstar Contact:

    Prosek Partners
    Pro-Brightstar@Prosek.com

    WW Williams Contact:

    Bobby Bell
    bbell@wwwilliams.com

    The MIL Network –

  • MIL-OSI: Matador Acquires 3.38 Bitcoin for CAD$500,000, Bringing Its Total Bitcoin (and Bitcoin Equivalent) Holdings to 64.69

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Jan. 30, 2025 (GLOBE NEWSWIRE) — Matador Technologies Inc. (“Matador” or the “Company”) (TSXV: MATA) is pleased to announce that the Company has acquired an additional 3.38 bitcoin for CAD$500,000 (USD$347,022). The 3.38 bitcoin was acquired at an average price of USD$102,703 per bitcoin, inclusive of fees and expenses.

    The Company intends to opportunistically acquire another USD$350,000 in Bitcoin in the near term. The acquisition of Bitcoin aligns with Matador’s long-term strategy to integrate Bitcoin as a core asset in its treasury and as the foundation for its forthcoming digital gold product.

    Key Highlights:

    Enhanced Bitcoin Holdings: With this latest acquisition, Matador now holds approximately 64.69 bitcoin (and Bitcoin equivalents), enhancing its corporate treasury and long-term capital preservation strategy.

    Strong Financial Position: Matador operates with zero debt, holding all Bitcoin (and Bitcoin equivalent) assets free and clear. The Company also maintains cash reserves of approximately CAD$2.3 million and physical gold holdings of 2 kilograms (approximately CAD$264,000), reflecting prudent financial management aimed at sustaining long-term growth and stability.

    Net Asset Value: Matador’s net asset value (NAV) continues to grow with its diversified portfolio of traditional and digital assets. Matador’s NAV is currently approximately CAD$13.6 million, strengthened by its debt-free structure, cash reserves, physical gold and Bitcoin holdings.

    Digital Gold Product: Leveraging Bitcoin technology, Matador’s first gold product, slated for launch in Q1 2025, will combine the tangible value of physical gold with the security and reach of the Bitcoin blockchain.

    The latest developments at Matador underscore the Company’s commitment to driving innovation at the intersection of traditional assets and digital technology. Matador’s continued efforts to bridge traditional assets like gold and new technologies reflect its commitment to delivering a secure, accessible platform for users of all backgrounds.

    “Our vision has always been to bridge the gap between traditional finance and the digital future,” said Deven Soni, CEO of Matador. “With our robust financial foundation, innovative use of technology, and a focus on delivering value to our shareholders, we’re confident in our ability to lead the charge in redefining how people interact with traditional assets.”

    As the Company prepares to launch its gold product in Q1 2025, Matador continues to strengthen its position as a pioneer in the digital asset ecosystem. Backed by a strong net asset value, zero debt, and a clear growth strategy, Matador is well-equipped to seize opportunities and deliver sustainable long-term value for its stakeholders.

    Looking ahead, Matador remains focused on expanding its offerings, leveraging emerging technologies, and building a platform that integrates the reliability of traditional assets with the transformative potential of blockchain. The Company will continue to add Bitcoin and gold to its treasury through a strategic and disciplined approach to acquisition.

    For additional information, please contact:

    Media Contact:
    Sunny Ray
    President
    Email: sunny@matador.network

    Phone: 647-932-2668

    About Matador Technologies Inc.
    Matador Technologies Inc. is a digital gold platform leveraging blockchain technology to digitize real-world assets like gold. Focused on building innovative financial solutions, Matador is at the forefront of integrating blockchain technology to preserve and grow value. Matador’s digital gold platform aims to democratize the gold buying experience, combining the best of modern technology and time-proven assets, to create an app that will allow users to buy, sell, and store gold 24/7 in a fun and engaging way.

    Cautionary Statement Regarding Forward-Looking Information

    NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

    This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

    Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, including risks associated with the implementation of the Company’s treasury management strategy and the timing and nature of the launch of its mobile application as currently proposed or at all and the potential revenue generated therefrom. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including with respect to the potential acquisition of Bitcoin and/or US dollars, the pricing of such acquisitions and the timing of future operations and the receipt of all applicable regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

    The MIL Network –

  • MIL-OSI: Amplify ETFs Declares January Income Distributions for its Income ETFs

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, Jan. 30, 2025 (GLOBE NEWSWIRE) — Amplify ETFs announces January income distributions for its income ETFs.

    ETF Name Ticker Amount per Share Ex-Date Record Date Payable Date
    Amplify Samsung SOFR ETF SOFR $0.36008 1/30/25 1/30/25 1/31/25
    Amplify Bloomberg U.S. Treasury Target High Income ETF TLTP $0.23690 1/30/25 1/30/25 1/31/25
    Amplify CWP Growth & Income ETF QDVO $0.19337 1/30/25 1/30/25 1/31/25
    Amplify Cash Flow High Income ETF HCOW $0.17300 1/30/25 1/30/25 1/31/25
    Amplify CWP Enhanced Dividend Income ETF DIVO $0.16940 1/30/25 1/30/25 1/31/25
    Amplify CWP International Enhanced Dividend Income ETF IDVO $0.15595 1/30/25 1/30/25 1/31/25
    Amplify Natural Resources Dividend Income ETF NDIV $0.13429 1/30/25 1/30/25 1/31/25
    Amplify High Income ETF YYY $0.12000 1/30/25 1/30/25 1/31/25


    About Amplify ETFs
    Amplify ETFs, sponsored by Amplify Investments, has over $10 billion in assets across its suite of ETFs (as of 1/08/2025). Amplify ETFs delivers expanded investment opportunities for investors seeking growth, income, and risk-managed strategies across a range of actively managed and index-based ETFs. To learn more visit AmplifyETFs.com.

    Sales Contact:
    Amplify ETFs
    855-267-3837
    info@amplifyetfs.com

    Media Contacts:
    Gregory FCA for Amplify ETFs
    Kerry Davis
    610-228-2098
    amplifyetfs@gregoryfca.com

    This information is not intended to provide and should not be relied upon for accounting, legal or tax advice, or investment recommendations. To receive a distribution, you must be a registered shareholder of the fund on the record date. Distributions are paid to shareholders on the payment date. There is no guarantee that distributions will be made in the future. Your own trading will also generate tax consequences and transaction expenses. Past distributions are not indicative of future distributions. Please consult your tax professional or financial adviser for more information regarding your tax situation.

    Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in Amplify Funds’ statutory and summary prospectuses, which may be obtained at AmplifyETFs.com. Read the prospectuses carefully before investing.

    Investing involves risk, including the possible loss of principal.

    Amplify ETFs are distributed by Foreside Services, LLC.

    The MIL Network –

  • MIL-OSI: Connectone Bancorp, Inc. Reports Fourth Quarter and Full-Year 2024 Results; Declares Common and Preferred Dividends

    Source: GlobeNewswire (MIL-OSI)

    ENGLEWOOD CLIFFS, N.J., Jan. 30, 2025 (GLOBE NEWSWIRE) — ConnectOne Bancorp, Inc. (Nasdaq: CNOB) (the “Company” or “ConnectOne”), parent company of ConnectOne Bank (the “Bank”), today reported net income available to common stockholders of $18.9 million for the fourth quarter of 2024 compared with $15.7 million for the third quarter of 2024 and $17.8 million for the fourth quarter of 2023. Diluted earnings per share were $0.49 for the fourth quarter of 2024 compared with $0.41 for the third quarter of 2024 and $0.46 for the fourth quarter of 2023. Full-year 2024 net income available to common stockholders was $67.8 million, compared to $81.0 million for the full-year 2023. Diluted earnings per share for the full-year 2024 were $1.76, compared with $2.07 for the full-year 2023. Return on average assets was 0.84%, 0.70% and 0.79% for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively. Return on average tangible common equity was 8.27%, 6.93% and 8.18% for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

    Operating net income available to common stockholders, which excludes non-operating items, as set forth in the reconciliation of GAAP earnings to operating earnings included in the supplemental table attached hereto, was $20.2 million for the fourth quarter of 2024, $16.1 million for the third quarter of 2024 and $19.1 million for the fourth quarter of 2023. Operating diluted earnings per share were $0.52 for the fourth quarter of 2024, $0.42 for the third quarter of 2024 and $0.49 for the fourth quarter of 2023. Operating return on average assets was 0.90%, 0.72% and 0.84% for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively. Operating return on average tangible common equity was 8.77%, 7.03% and 8.67% for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

    “I’m extremely pleased with ConnectOne’s fourth quarter 2024 financial results highlighted by a 20.5% quarter-over-quarter and an 6.2% year-over-year increase in quarterly net income available to common stockholders, significant margin expansion and growth in both loans and core deposits,” stated Frank Sorrentino, ConnectOne’s Chairman and Chief Executive Officer. “On a quarter-over-quarter basis, our loan portfolio grew by 2.0% while core deposits grew by 3.2%. The bank’s net interest margin improved by nearly 20 basis-points, benefiting from a more than 25 basis-point improvement in our cost of deposits. This improvement reflects an approximately 40% cycle-to-date beta on interest-bearing deposits and a 3.6% sequential quarterly increase in average noninterest-bearing demand deposits. Moreover, credit quality trends remain stable and, once again, tangible book value advanced despite higher longer-term interest rates.”

    “As we move into 2025, we are experiencing strong operating momentum bolstered by improving industry fundamentals, favorable economic conditions, and a potentially more supportive regulatory environment. Importantly, the proposed merger with The First of Long Island Corporation is moving forward as planned. We’re well along in the merger process and anticipate the transaction to close in the second quarter of 2025.” Mr. Sorrentino added, “The strategic rationale behind this financially attractive transaction remains highly compelling, which will meaningfully enhance ConnectOne’s presence on Long Island and further our position as a premier New York Metro community bank. We are equally excited about the opportunity to serve The First of Long Island’s clients and to leverage the expertise of its team, creating a significantly enhanced platform for sustained growth at ConnectOne.”

    Mr. Sorrentino concluded “Looking ahead, we remain focused and committed to our client-first culture and relationship banking model and are well-positioned to grow and strengthen our valuable franchise.”

    Dividend Declarations

    The Company announced that its Board of Directors declared a cash dividend on both its common stock and its outstanding preferred stock. A cash dividend on common stock of $0.18 per share will be paid on March 3, 2025, to common stockholders of record on February 18, 2025. A dividend of $0.328125 per depositary share, representing a 1/40th interest in a share of the Company’s 5.25% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, will also be paid on March 3, 2025 to holders of record on February 18, 2025.

    Operating Results

    Fully taxable equivalent net interest income for the fourth quarter of 2024 was $64.7 million, an increase of $3.8 million, or 6.3%, from the third quarter of 2024, due to a 19 basis-point widening of the net interest margin to 2.86% from 2.67%. Average loans for the fourth quarter of 2024 remained essentially flat from the sequential third quarter, decreasing by $19.8 million, or 0.2%. The widening of the net interest margin was primarily due to a 27 basis-point decrease in the average costs of deposits, including noninterest-bearing deposits, partially offset by a 3 basis-point decline in the rate earned on interest-earning assets. The interest-earning asset rate for the fourth quarter of 2024 was strengthened by an increase in loan prepayment fees and recapture of nonaccrual loan interest. Excluding these aforementioned items, management estimates the net interest margin for the quarter would have been approximately 2.82%. The net interest margin, excluding any non-operating items, is expected to increase to more than 2.90% in the first quarter of 2025 as a result of further improvement in the cost of funds and the deployment of excess cash-on-hand.

    Fully taxable equivalent net interest income for the fourth quarter of 2024 increased by $3.0 million, or 4.7%, from the fourth quarter of 2023. The increase from the fourth quarter of 2023 resulted primarily from a 15 basis-point widening in the net interest margin to 2.86% from 2.71%, partially offset by a $164.7 million, or 2.0%, decrease in average loans. The widening of the net interest margin for the fourth quarter of 2024 when compared to the fourth quarter of 2023 was primarily due to a 102 basis-point decrease in the average cost of borrowings, a 9 basis-point decrease in average cost of deposits, including noninterest-bearing deposits, and a 3 basis-point increase in the loan portfolio yield, partially offset by an increase in average cash balances during the fourth quarter of 2024.

    Noninterest income was $3.7 million in the fourth quarter of 2024, $4.7 million in the third quarter of 2024 and $4.2 million in the fourth quarter of 2023. The $1.0 million decrease in noninterest income for the fourth quarter of 2024 when compared to the third quarter of 2024 was due to a $0.7 million decrease in net gains on equity securities, a $0.5 million decrease in BOLI income, primarily due to reduced death benefits, partially offset by a $0.2 million increase in net gains on sale of loans held-for-sale. The $0.5 million decrease in noninterest income for the fourth quarter of 2024 when compared to the fourth quarter of 2023 was due to a $0.9 million decrease in net gains on equity securities, partially offset a $0.3 million increase in other deposit, loan and other income and an increase in net gains on sale of loans held-for-sale of $0.1 million.

    Noninterest expenses were $38.5 million for the fourth quarter of 2024, $38.6 million for the third quarter of 2024 and $37.8 million for the fourth quarter of 2023. The $0.1 million decrease in noninterest expenses for the fourth quarter of 2024 when compared to the third quarter of 2024 was primarily due to a $0.7 million decrease in salaries and employee benefits, a $0.2 million decrease in other expenses, a $0.1 million decrease in marketing and advertising expenses and a $0.1 million decrease in occupancy and equipment expense, partially offset by a $0.5 million charge related to a branch closing, a $0.3 million increase in professional and consulting expenses, a $0.1 million increase in merger expenses and a $0.1 million increase in information and technology communications.

    The $0.7 million increase in noninterest expenses for the fourth quarter of 2024 when compared to the fourth quarter of 2023 was primarily due to a $0.9 million increase merger expenses, a $0.9 million increase in professional and consulting expenses, a $0.5 million increase in branch closing expenses, a $0.4 million increase in information technology and communications, a $0.2 million increase in salaries and employee benefits, a $0.1 million increase in marketing and advertising expenses and a $0.1 million increase in occupancy and equipment expenses, partially offset by decreases in FDIC insurance of $2.1 million and $0.3 million decrease in other expenses. The $0.9 million increase in merger expenses compared to the fourth quarter of 2023 was due to the planned merger with The First of Long Island Corporation. The $0.9 million increase in professional and consulting expenses was primarily due to increases in legal and audit accruals, as well as an increase in loan work-out expenses. The $0.5 million increase in branch closing expenses is due to the aforementioned branch closing. The $2.1 million decrease in FDIC insurance expense is due to the FDIC special assessment charge that was accrued during the fourth quarter of 2023.

    Income tax expense was $6.1 million for the fourth quarter of 2024, $6.0 million for the third quarter of 2024 and $6.2 million for the fourth quarter of 2023. The effective tax rates for the fourth quarter of 2024, third quarter of 2024 and fourth quarter of 2023 were 23%, 26% and 24%, respectively. The effective tax rate for the fourth quarter reflects a year-end adjustment for the effective tax rate for the full-year 2024. Our projected tax rate for 2025 is in the range of 26%-27%.

    Asset Quality

    The provision for credit losses was $3.5 million for the fourth quarter of 2024, $3.8 million for the third quarter of 2024 and $2.7 million for the fourth quarter of 2023, reflecting loan growth, economic outlook and specific reserves. The provision for credit losses was $13.8 million for the full-year 2024 compared to $8.2 million for the full-year 2023. The increase in the full-year 2024 provision for credit losses when compared to the full-year 2023 was primarily due to increases in specific reserves, partially offset by a decrease in the level of general reserves.

    Nonperforming assets, which includes nonaccrual loans and other real estate owned (the Bank had no other real estate owned during the periods reported), was $57.3 million as of December 31, 2024, $51.3 million as of September 30, 2024 and $52.5 million as of December 31, 2023. Nonperforming assets as a percentage of total assets was 0.58% as of December 31, 2024, 0.53% as of September 31, 2024 and 0.53% as of December 31, 2023. The ratio of nonaccrual loans to loans receivable was 0.69%, 0.63% and 0.63%, as of December 31, 2024, September 30, 2024 and December 31, 2023, respectively. The annualized net loan charge-offs ratio was 0.16% for the fourth quarter of 2024, 0.17% for the third quarter of 2024 and 0.43% for the fourth quarter of 2023. The allowance for credit losses represented 1.00%, 1.02%, and 0.98% of loans receivable as of December 31, 2024, September 31, 2024, and December 31, 2023, respectively. The allowance for credit losses as a percentage of nonaccrual loans was 144.3% as of December 31, 2024, 160.8% as of September 30, 2024 and 156.1% as of December 31, 2023. Criticized and classified loans as a percentage of loans receivable was 2.66% as of December 31, 2024, up from 2.23% as of September 30, 2024 and 1.35% as of December 31, 2023. Loans delinquent 30 to 89 days was 0.04% of loans receivable as of December 31, 2024, down from 0.16% as of September 30, 2024 and 0.30% as of December 31, 2023. The overall credit quality metrics of the Bank’s loan portfolio remain sound, with expected levels of charge-offs, nonaccruals, delinquencies, and classified loans expected to remain within historical ranges.

    Selected Balance Sheet Items

    The Company’s total assets were $9.880 billion as of December 31, 2024, compared to $9.856 billion as of December 31, 2023. Loans receivable were $8.275 billion as of December 31, 2024 and $8.345 billion as of December 31, 2023. Total deposits were $7.820 billion as of December 31, 2024 and $7.536 billion as of December 31, 2023.

    The Company’s total stockholders’ equity was $1.242 billion as of December 31, 2024 and $1.217 billion as of December 31, 2023. The increase in total stockholders’ equity was primarily due to an increase in retained earnings of $40.5 million, partially offset by an increase in accumulated other comprehensive losses of approximately $12.7 million and an increase in treasury stock of approximately $5.8 million. As of December 31, 2024, the Company’s tangible common equity ratio and tangible book value per share were 9.49% and $23.92, respectively, compared to 9.25% and $23.14, respectively, as of December 31, 2023. Total goodwill and other intangible assets were $213.0 million as of December 31, 2024, and $214.2 million as of December 31, 2023.

    Use of Non-GAAP Financial Measures

    In addition to the results presented in accordance with Generally Accepted Accounting Principles (“GAAP”), ConnectOne routinely supplements its evaluation with an analysis of certain non-GAAP measures. ConnectOne believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors in understanding our operating performance and trends. These non-GAAP measures have inherent limitations and are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for an analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of non-GAAP financial measures disclosed in this earnings release to the comparable GAAP measures are provided in the accompanying tables.

    Fourth Quarter 2024 Results Conference Call

    Management will also host a conference call and audio webcast at 10:00 a.m. ET on January 30, 2025 to review the Company’s financial performance and operating results. The conference call dial-in number is 1 (646) 307-1963, access code 1691400. Please dial in at least five minutes before the start of the call to register. An audio webcast of the conference call will be available to the public, on a listen-only basis, via the “Investor Relations” link on the Company’s website https://www.ConnectOneBank.com or at http://ir.connectonebank.com.

    A replay of the conference call will be available beginning at approximately 1:00 p.m. ET on Thursday, January 30, 2025 and ending on Thursday, February 6, 2025 by dialing 1 (609) 800-9909, access code 1691400. An online archive of the webcast will be available following the completion of the conference call at https://www.ConnectOneBank.com or at http://ir.connectonebank.com.

    About ConnectOne Bancorp, Inc.

    ConnectOne Bancorp, Inc., is a modern financial services company that operates, through its subsidiary, ConnectOne Bank, and the Bank’s fintech subsidiary, BoeFly, Inc. ConnectOne Bank is a high-performing commercial bank offering a full suite of banking & lending products and services that focus on small to middle-market businesses. BoeFly, Inc. is a fintech marketplace that connects borrowers in the franchise space with funding solutions through a network of partner banks. ConnectOne Bancorp, Inc. is traded on the Nasdaq Global Market under the trading symbol “CNOB,” and information about ConnectOne may be found at https://www.connectonebank.com.

    This news release contains certain forward-looking statements which are based on certain assumptions and describe future plans, strategies, and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, those factors set forth in Item 1A – Risk Factors of the Company’s Annual Report on Form 10-K, as filed with the U.S. Securities and Exchange Commission, as supplemented by the Company’s subsequent filings with the U.S. Securities and Exchange Commission, and changes in interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, changes in accounting principles and guidelines and the impact of the health emergencies and natural disasters on the Company, its employees and operations, and its customers. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

    Investor Contact:
    William S. Burns
    Senior Executive Vice President & CFO
    201.816.4474: bburns@cnob.com

    Media Contact:
    Shannan Weeks 
    MikeWorldWide
    732.299.7890: sweeks@mww.com

             
    CONNECTONE BANCORP, INC. AND SUBSIDIARIES        
    CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION      
    (in thousands)        
             
      December 31,   December 31,  
        2024       2023    
      (unaudited)      
    ASSETS        
    Cash and due from banks $ 57,816     $ 61,421    
    Interest-bearing deposits with banks   298,672       181,293    
    Cash and cash equivalents   356,488       242,714    
             
    Investment securities   612,847       617,162    
    Equity securities   20,092       18,564    
             
    Loans held-for-sale   743       –    
             
    Loans receivable   8,274,810       8,345,145    
    Less: Allowance for credit losses – loans   82,685       81,974    
    Net loans receivable   8,192,125       8,263,171    
             
    Investment in restricted stock, at cost   40,449       51,457    
    Bank premises and equipment, net   28,447       30,779    
    Accrued interest receivable   45,498       49,108    
    Bank owned life insurance   243,672       237,644    
    Right of use operating lease assets   14,489       12,007    
    Goodwill   208,372       208,372    
    Core deposit intangibles   4,639       5,874    
    Other assets   111,739       118,751    
    Total assets $ 9,879,600     $ 9,855,603    
             
    LIABILITIES        
    Deposits:        
    Noninterest-bearing $ 1,422,044     $ 1,259,364    
    Interest-bearing   6,398,070       6,276,838    
    Total deposits   7,820,114       7,536,202    
    Borrowings   688,064       933,579    
    Subordinated debentures, net   79,944       79,439    
    Operating lease liabilities   15,498       13,171    
    Other liabilities   34,276       76,592    
    Total liabilities   8,637,896       8,638,983    
             
    COMMITMENTS AND CONTINGENCIES        
             
    STOCKHOLDERS’ EQUITY        
    Preferred stock   110,927       110,927    
    Common stock   586,946       586,946    
    Additional paid-in capital   36,347       33,182    
    Retained earnings   631,446       590,970    
    Treasury stock   (76,116 )     (70,296 )  
    Accumulated other comprehensive loss   (47,846 )     (35,109 )  
    Total stockholders’ equity   1,241,704       1,216,620    
    Total liabilities and stockholders’ equity $ 9,879,600     $ 9,855,603    
             
                     
    CONNECTONE BANCORP, INC. AND SUBSIDIARIES                
    CONSOLIDATED STATEMENTS OF INCOME                
    (dollars in thousands, except for per share data)                
                     
      Three Months Ended Year Ended  
      12/31/24   12/31/23   12/31/24   12/31/23  
    Interest income                
    Interest and fees on loans $ 118,346     $ 120,636   $ 477,859   $ 453,992    
    Interest and dividends on investment securities:                
    Taxable   4,804       4,280     18,561     16,666    
    Tax-exempt   1,109       1,166     4,503     4,641    
    Dividends   959       912     4,349     3,662    
    Interest on federal funds sold and other short-term investments   2,815       1,963     12,617     11,104    
    Total interest income   128,033       128,957     517,889     490,065    
    Interest expense                
    Deposits   58,568       59,332     244,846     206,176    
    Borrowings   4,754       7,803     25,706     28,783    
    Total interest expense   63,322       67,135     270,552     234,959    
                     
    Net interest income   64,711       61,822     247,337     255,106    
    Provision for credit losses   3,500       2,700     13,800     8,200    
    Net interest income after provision for credit losses   61,211       59,122     233,537     246,906    
                     
    Noninterest income                
    Deposit, loan and other income   1,798       1,545     6,861     6,098    
    Income on bank owned life insurance   1,656       1,635     7,142     6,316    
    Net gains on sale of loans held-for-sale   597       472     2,723     1,704    
    Net losses (gains) on equity securities   (307 )     557     2     (117 )  
    Total noninterest income   3,744       4,209     16,728     14,001    
                     
    Noninterest expenses                
    Salaries and employee benefits   22,244       22,010     90,053     88,223    
    Occupancy and equipment   2,818       2,708     11,615     10,884    
    FDIC insurance   1,800       3,900     7,200     8,365    
    Professional and consulting   2,449       1,587     8,447     7,547    
    Marketing and advertising   495       323     2,420     1,965    
    Information technology and communications   4,523       4,148     17,574     14,340    
    Merger expenses   863       –     1,605     –    
    Branch closing expenses   477       –     477     –    
    Amortization of core deposit intangibles   296       348     1,235     1,438    
    Other expenses   2,533       2,821     11,172     11,187    
    Total noninterest expenses   38,498       37,845     151,798     143,949    
                     
    Income before income tax expense   26,457       25,486     98,467     116,958    
    Income tax expense   6,086       6,213     24,674     29,955    
    Net income   20,371       19,273     73,793     87,003    
    Preferred dividends   1,509       1,509     6,036     6,036    
    Net income available to common stockholders $ 18,862     $ 17,764   $ 67,757   $ 80,967    
                     
    Earnings per common share:                
    Basic $ 0.49     $ 0.46   $ 1.77   $ 2.08    
    Diluted   0.49       0.46     1.76     2.07    
                                 
         
    ConnectOne’s management believes that the supplemental financial information, including non-GAAP measures provided below, is useful to investors. The non-GAAP measures should not be viewed as a substitute for financial results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP financial measures presented by other companies.    
                           
    CONNECTONE BANCORP, INC.                     
    SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL MEASURES                     
                           
      As of    
      Dec. 31,   Sept. 30,   Jun. 30,   Mar. 31,   Dec. 31,    
        2024       2024       2024       2024       2023      
    Selected Financial Data (dollars in thousands)    
    Total assets $ 9,879,600     $ 9,639,603     $ 9,723,731     $ 9,853,964     $ 9,855,603      
    Loans receivable:                      
    Commercial $ 1,522,308     $ 1,505,743     $ 1,491,079     $ 1,561,063     $ 1,564,768      
    Commercial real estate   3,384,319       3,261,160       3,274,941       3,333,488       3,342,603      
    Multifamily   2,506,782       2,482,258       2,499,581       2,507,893       2,566,904      
    Commercial construction   616,246       616,087       639,168       646,593       620,496      
    Residential   249,691       250,249       256,786       254,214       256,041      
    Consumer   1,136       835       945       850       1,029      
    Gross loans   8,280,482       8,116,332       8,162,500       8,304,101       8,351,841      
    Net deferred loan fees   (5,672 )     (4,356 )     (4,597 )     (6,144 )     (6,696 )    
    Loans receivable   8,274,810       8,111,976       8,157,903       8,297,957       8,345,145      
    Loans held-for-sale   743       –       435       –       –      
    Total loans $ 8,275,553     $ 8,111,976     $ 8,158,338     $ 8,297,957     $ 8,345,145      
                           
    Investment and equity securities $ 632,939     $ 667,112     $ 640,322     $ 638,854     $ 635,726      
    Goodwill and other intangible assets   213,011       213,307       213,604       213,925       214,246      
    Deposits:                      
    Noninterest-bearing demand $ 1,422,044     $ 1,262,568     $ 1,268,882     $ 1,290,523     $ 1,259,364      
    Time deposits   2,557,200       2,614,187       2,593,165       2,623,391       2,531,371      
    Other interest-bearing deposits   3,840,870       3,647,350       3,713,967       3,674,740       3,745,467      
    Total deposits $ 7,820,114     $ 7,524,105     $ 7,576,014     $ 7,588,654     $ 7,536,202      
                           
    Borrowings $ 688,064     $ 742,133     $ 756,144     $ 877,568     $ 933,579      
    Subordinated debentures (net of debt issuance costs)   79,944       79,818       79,692       79,566       79,439      
    Total stockholders’ equity   1,241,704       1,239,496       1,224,227       1,216,609       1,216,620      
                           
    Quarterly Average Balances                      
    Total assets $ 9,653,446     $ 9,742,853     $ 9,745,853     $ 9,860,753     $ 9,690,746      
    Loans receivable:                      
    Commercial $ 1,487,850     $ 1,485,777     $ 1,517,446     $ 1,552,360     $ 1,510,634      
    Commercial real estate (including multifamily)   5,733,188       5,752,467       5,789,498       5,890,853       5,874,854      
    Commercial construction   631,022       628,740       652,227       637,993       630,468      
    Residential   250,589       252,975       254,284       252,965       253,200      
    Consumer   5,204       7,887       5,155       5,091       6,006      
    Gross loans   8,107,853       8,127,846       8,218,610       8,339,262       8,275,162      
    Net deferred loan fees   (4,727 )     (4,513 )     (5,954 )     (6,533 )     (6,894 )    
    Loans receivable   8,103,126       8,123,333       8,212,656       8,332,729       8,268,268      
    Loans held-for-sale   498       83       169       99       31      
    Total loans $ 8,103,624     $ 8,123,416     $ 8,212,825     $ 8,332,828     $ 8,268,299      
                           
    Investment and equity securities $ 653,988     $ 650,897     $ 637,551     $ 633,270     $ 602,287      
    Goodwill and other intangible assets   213,205       213,502       213,813       214,133       214,472      
    Deposits:                      
    Noninterest-bearing demand $ 1,304,699     $ 1,259,912     $ 1,256,251     $ 1,254,201     $ 1,248,132      
    Time deposits   2,478,163       2,625,329       2,587,706       2,567,767       2,495,091      
    Other interest-bearing deposits   3,838,575       3,747,427       3,721,167       3,696,374       3,747,093      
    Total deposits $ 7,621,437     $ 7,632,668     $ 7,565,124     $ 7,518,342     $ 7,490,316      
                           
    Borrowings $ 648,300     $ 717,586     $ 787,256     $ 947,003     $ 823,123      
    Subordinated debentures (net of debt issuance costs)   79,862       79,735       79,609       79,483       79,356      
    Total stockholders’ equity   1,241,738       1,234,724       1,220,621       1,220,818       1,198,389      
                           
      Three Months Ended    
      Dec. 31,   Sept. 30,   Jun. 30,   Mar. 31,   Dec. 31,    
        2024       2024       2024       2024       2023      
      (dollars in thousands, except for per share data)    
    Net interest income $ 64,711     $ 60,887     $ 61,439     $ 60,300     $ 61,822      
    Provision for credit losses   3,500       3,800       2,500       4,000       2,700      
    Net interest income after provision for credit losses   61,211       57,087       58,939       56,300       59,122      
    Noninterest income                      
    Deposit, loan and other income   1,798       1,817       1,654       1,592       1,545      
    Income on bank owned life insurance   1,656       2,145       1,677       1,664       1,635      
    Net gains on sale of loans held-for-sale   597       343       1,277       506       472      
    Net (losses) gains on equity securities   (307 )     432       (209 )     86       557      
    Total noninterest income   3,744       4,737       4,399       3,848       4,209      
    Noninterest expenses                      
    Salaries and employee benefits   22,244       22,957       22,721       22,131       22,010      
    Occupancy and equipment   2,818       2,889       2,899       3,009       2,708      
    FDIC insurance   1,800       1,800       1,800       1,800       3,900      
    Professional and consulting   2,449       2,147       1,923       1,928       1,587      
    Marketing and advertising   495       635       613       677       323      
    Information technology and communications   4,523       4,464       4,198       4,389       4,148      
    Merger expenses   863       742       –       –       –      
    Branch closing expenses   477       –       –       –       –      
    Amortization of core deposit intangible   296       297       321       321       348      
    Other expenses   2,533       2,710       3,119       2,810       2,821      
    Total noninterest expenses   38,498       38,641       37,594       37,065       37,845      
                           
    Income before income tax expense   26,457       23,183       25,744       23,083       25,486      
    Income tax expense   6,086       6,022       6,688       5,878       6,213      
    Net income   20,371       17,161       19,056       17,205       19,273      
    Preferred dividends   1,509       1,509       1,509       1,509       1,509      
    Net income available to common stockholders $ 18,862     $ 15,652     $ 17,547     $ 15,696     $ 17,764      
                           
    Weighted average diluted common shares outstanding   38,519,581       38,525,484       38,448,594       38,511,747       38,651,391      
    Diluted EPS $ 0.49     $ 0.41     $ 0.46     $ 0.41     $ 0.46      
                           
    Reconciliation of GAAP Net Income to Operating Net Income:                      
    Net income $ 20,371     $ 17,161     $ 19,056     $ 17,205     $ 19,273      
    FDIC special assessment   –       –       –       –       2,100      
    Merger expenses   863       742       –       –       –      
    Branch closing expenses   477       –       –       –       –      
    Amortization of core deposit intangibles   296       297       321       321       348      
    Net losses (gains) on equity securities   307       (432 )     209       (86 )     (557 )    
    Tax impact of adjustments   (585 )     (171 )     (149 )     (66 )     (569 )    
    Operating net income $ 21,729     $ 17,597     $ 19,437     $ 17,374     $ 20,595      
    Preferred dividends   1,509       1,509       1,509       1,509       1,509      
    Operating net income available to common stockholders $ 20,220     $ 16,088     $ 17,928     $ 15,865     $ 19,086      
                           
    Operating diluted EPS (non-GAAP) (1) $ 0.52     $ 0.42     $ 0.47     $ 0.41     $ 0.49      
                           
    Return on Assets Measures                      
    Average assets $ 9,653,446     $ 9,742,853     $ 9,745,853     $ 9,860,753     $ 9,690,746      
    Return on avg. assets   0.84   %   0.70   %   0.79   %   0.70   %   0.79   %  
    Operating return on avg. assets (non-GAAP) (2)   0.90       0.72       0.80       0.71       0.84      
                           
    (1) Operating net income available to common stockholders divided by weighted average diluted shares outstanding.              
    (2) Operating net income divided by average assets.              
                           
      Three Months Ended    
      Dec. 31,   Sept. 30,   Jun. 30,   Mar. 31,   Dec. 31,    
        2024       2024       2024       2024       2023      
    Return on Equity Measures (dollars in thousands)    
    Average stockholders’ equity $ 1,241,738     $ 1,234,724     $ 1,220,621     $ 1,220,818     $ 1,198,389      
    Less: average preferred stock   (110,927 )     (110,927 )     (110,927 )     (110,927 )     (110,927 )    
    Average common equity $ 1,130,811     $ 1,123,797     $ 1,109,694     $ 1,109,891     $ 1,087,462      
    Less: average intangible assets   (213,205 )     (213,502 )     (213,813 )     (214,133 )     (214,472 )    
    Average tangible common equity $ 917,606     $ 910,295     $ 895,881     $ 895,758     $ 872,990      
    Return on avg. common equity (GAAP)   6.64   %   5.54   %   6.36   %   5.69   %   6.48   %  
    Operating return on avg. common equity (non-GAAP) (3)   7.11       5.70       6.50       5.75       6.96      
    Return on avg. tangible common equity (non-GAAP) (4)   8.27       6.93       7.98       7.15       8.18      
    Operating return on avg. tangible common equity (non-GAAP) (5)   8.77       7.03       8.05       7.12       8.67      
                           
    Efficiency Measures                      
    Total noninterest expenses $ 38,498     $ 38,641     $ 37,594     $ 37,065     $ 37,845      
    FDIC special assessment   –       –       –       –       (2,100 )    
    Merger expenses   (863 )     (742 )     –       –       –      
    Branch closing expenses   (477 )     –       –       –       –      
    Amortization of core deposit intangibles   (296 )     (297 )     (321 )     (321 )     (348 )    
    Operating noninterest expense $ 36,862     $ 37,602     $ 37,273     $ 36,744     $ 35,397      
                           
    Net interest income (tax equivalent basis) $ 65,593     $ 61,710     $ 62,255     $ 61,111     $ 62,627      
    Noninterest income   3,744       4,737       4,399       3,848       4,209      
    Net losses (gains) on equity securities   307       (432 )     209       (86 )     (557 )    
    Operating revenue $ 69,644     $ 66,015     $ 66,863     $ 64,873     $ 66,279      
                           
    Operating efficiency ratio (non-GAAP) (6)   52.9   %   57.0   %   55.7   %   56.6   %   53.4   %  
                           
    Net Interest Margin                      
    Average interest-earning assets $ 9,117,201     $ 9,206,038     $ 9,210,050     $ 9,323,291     $ 9,172,165      
    Net interest income (tax equivalent basis)   65,593       61,710       62,255       61,111       62,627      
    Net interest margin (GAAP)   2.86   %   2.67   %   2.72   %   2.64   %   2.71   %  
                           
    (3) Operating net income available to common stockholders divided by average common equity.        
    (4) Net income available to common stockholders, excluding amortization of intangible assets, divided by average tangible common equity.        
    (5) Operating net income available to common stockholders, divided by average tangible common equity.        
    (6) Operating noninterest expense divided by operating revenue.        
                           
      As of    
      Dec. 31,   Sept. 30,   Jun. 30,   Mar. 31,   Dec. 31,    
        2024       2024       2024       2024       2023      
    Capital Ratios and Book Value per Share (dollars in thousands, except for per share data)    
    Stockholders equity $ 1,241,704     $ 1,239,496     $ 1,224,227     $ 1,216,609     $ 1,216,620      
    Less: preferred stock   (110,927 )     (110,927 )     (110,927 )     (110,927 )     (110,927 )    
    Common equity $ 1,130,777     $ 1,128,569     $ 1,113,300     $ 1,105,682     $ 1,105,693      
    Less: intangible assets   (213,011 )     (213,307 )     (213,604 )     (213,925 )     (214,246 )    
    Tangible common equity $ 917,766     $ 915,262     $ 899,696     $ 891,757     $ 891,447      
                           
    Total assets $ 9,879,600     $ 9,639,603     $ 9,723,731     $ 9,853,964     $ 9,855,603      
    Less: intangible assets   (213,011 )     (213,307 )     (213,604 )     (213,925 )     (214,246 )    
    Tangible assets $ 9,666,589     $ 9,426,296     $ 9,510,127     $ 9,640,039     $ 9,641,357      
                           
    Common shares outstanding   38,370,317       38,368,217       38,365,069       38,333,053       38,519,770      
                           
    Common equity ratio (GAAP)   11.45   %   11.71   %   11.45   %   11.22   %   11.22   %  
    Tangible common equity ratio (non-GAAP) (7)   9.49       9.71       9.46       9.25       9.25      
                           
    Regulatory capital ratios (Bancorp):                      
    Leverage ratio   11.33   %   11.10   %   10.97   %   10.73   %   10.86   %  
    Common equity Tier 1 risk-based ratio   10.97       11.07       10.90       10.70       10.62      
    Risk-based Tier 1 capital ratio   12.29       12.42       12.25       12.03       11.95      
    Risk-based total capital ratio   14.11       14.29       14.10       13.88       13.77      
                           
    Regulatory capital ratios (Bank):                      
    Leverage ratio   11.66   %   11.43   %   11.29   %   11.10   %   11.20   %  
    Common equity Tier 1 risk-based ratio   12.63       12.79       12.60       12.43       12.31      
    Risk-based Tier 1 capital ratio   12.63       12.79       12.60       12.43       12.31      
    Risk-based total capital ratio   13.60       13.77       13.58       13.41       13.28      
                           
    Book value per share (GAAP) $ 29.47     $ 29.41     $ 29.02     $ 28.84     $ 28.70      
    Tangible book value per share (non-GAAP) (8)   23.92       23.85       23.45       23.26       23.14      
                           
    Net Loan Charge-offs (Recoveries):                      
    Net loan charge-offs (recoveries):                      
    Charge-offs $ 3,363     $ 3,559     $ 3,595     $ 3,185     $ 8,960      
    Recoveries   (29 )     (53 )     (324 )     (23 )     –      
    Net loan charge-offs $ 3,334     $ 3,506     $ 3,271     $ 3,162     $ 8,960      
    Net loan charge-offs as a % of average loans receivable (annualized)   0.16   %   0.17   %   0.16   %   0.15   %   0.43   %  
                           
    Asset Quality                      
    Nonaccrual loans $ 57,310     $ 51,300     $ 46,026     $ 47,438     $ 52,524      
    Other real estate owned   –       –       –       –       –      
    Nonperforming assets $ 57,310     $ 51,300     $ 46,026     $ 47,438     $ 52,524      
                           
    Allowance for credit losses – loans (“ACL”) $ 82,685     $ 82,494     $ 82,077     $ 82,869     $ 81,974      
    Loans receivable   8,274,810       8,111,976       8,157,903       8,297,957       8,345,145      
                           
    Nonaccrual loans as a % of loans receivable   0.69   %   0.63   %   0.56   %   0.57   %   0.63   %  
    Nonperforming assets as a % of total assets   0.58       0.53       0.47       0.48       0.53      
    ACL as a % of loans receivable   1.00       1.02       1.01       1.00       0.98      
    ACL as a % of nonaccrual loans   144.3       160.8       178.3       174.7       156.1      
                           
    (7) Tangible common equity divided by tangible assets                
    (8) Tangible common equity divided by common shares outstanding at period-end                
                           
                                   
    CONNECTONE BANCORP, INC.                              
    NET INTEREST MARGIN ANALYSIS                              
    (dollars in thousands)                                
                                         
            For the Quarter Ended    
            December 31, 2024 September 30, 2024 December 31, 2023
            Average         Average         Average        
    Interest-earning assets:   Balance Interest Rate (7)   Balance Interest Rate (7)   Balance Interest Rate (7)
    Investment securities (1) (2) $ 736,131   $ 6,207   3.35 %   $ 736,946   $ 6,157   3.32 %   $ 723,433   $ 5,757   3.16 %  
    Loans receivable and loans held-for-sale (2) (3) (4)   8,103,624     118,934   5.84       8,123,416     119,805   5.87       8,268,299     121,130   5.81    
    Federal funds sold and interest-                              
    bearing deposits with banks   238,957     2,815   4.69       304,009     4,056   5.31       134,168     1,963   5.80    
    Restricted investment in bank stock   38,489     959   9.91       41,667     1,048   10.01       46,265     912   7.82    
    Total interest-earning assets   9,117,201     128,915   5.63       9,206,038     131,066   5.66       9,172,165     129,762   5.61    
    Allowance for credit losses   (83,938 )           (83,355 )           (88,861 )        
    Noninterest-earning assets     620,183             620,170             607,442          
    Total assets     $ 9,653,446           $ 9,742,853           $ 9,690,746          
                                         
    Interest-bearing liabilities:                              
    Time deposits     $ 2,478,163     27,374   4.39     $ 2,625,329     30,245   4.58     $ 2,495,091     26,486   4.21    
    Other interest-bearing deposits   3,838,575     31,194   3.23       3,747,427     33,540   3.56       3,747,093     32,846   3.48    
    Total interest-bearing deposits   6,316,738     58,568   3.69       6,372,756     63,785   3.98       6,242,184     59,332   3.77    
                                         
    Borrowings       648,300     3,430   2.10       717,586     4,239   2.35       823,123     6,467   3.12    
    Subordinated debentures, net   79,862     1,305   6.50       79,735     1,312   6.55       79,356     1,313   6.56    
    Finance lease       1,280     19   5.91       1,349     20   5.90       1,546     23   5.90    
    Total interest-bearing liabilities   7,046,180     63,322   3.58       7,171,426     69,356   3.85       7,146,209     67,135   3.73    
                                         
    Noninterest-bearing demand deposits   1,304,699             1,259,912             1,248,132          
    Other liabilities       60,829             76,791             98,016          
    Total noninterest-bearing liabilities   1,365,528             1,336,703             1,346,148          
    Stockholders’ equity     1,241,738             1,234,724             1,198,389          
    Total liabilities and stockholders’ equity $ 9,653,446           $ 9,742,853           $ 9,690,746          
                                         
    Net interest income (tax equivalent basis)     65,593             61,710             62,627        
    Net interest spread (5)       2.05 %       1.82 %       1.89 %  
                                         
    Net interest margin (6)       2.86 %       2.67 %       2.71 %  
                                         
    Tax equivalent adjustment       (882 )           (823 )           (805 )      
    Net interest income     $ 64,711           $ 60,887           $ 61,822        
                                         
    (1) Average balances are calculated on amortized cost.              
    (2) Interest income is presented on a tax equivalent basis using 21% federal tax rate.              
    (3) Includes loan fee income.              
    (4) Loans include nonaccrual loans.              
    (5) Represents difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities and is presented on a tax equivalent basis.              
    (6) Represents net interest income on a tax equivalent basis divided by average total interest-earning assets.               
    (7) Rates are annualized.              
                                         

    The MIL Network –

  • MIL-OSI: Allegro MicroSystems Reports Third Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    MANCHESTER, N.H., Jan. 30, 2025 (GLOBE NEWSWIRE) — Allegro MicroSystems, Inc. (“Allegro” or the “Company”) (Nasdaq: ALGM), a global leader in power and sensing semiconductor solutions for motion control and energy efficient systems, today announced financial results for its third quarter ended December 27, 2024.  

    “We delivered on our commitments with third quarter sales of $178 million and non-GAAP EPS of $0.07, both above the midpoint of our guidance,” said Vineet Nargolwala, President and CEO of Allegro. “During the quarter, we introduced a record number of new magnetic sensing and power products to the market, further expanding our differentiated portfolios. This increasing velocity further solidifies our market leadership and positions us well for above market growth.”

    Third Quarter Financial Highlights:

    In thousands, except per share data   Three-Month Period Ended     Nine-Month Period Ended  
        December 27, 2024     September 27, 2024     December 29, 2023     December 27, 2024     December 29, 2023  
        (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
    Net Sales                              
    Automotive   $ 130,066     $ 141,893     $ 194,764     $ 403,143     $ 577,515  
    Industrial and other     47,806       45,498       60,220       129,039       231,271  
    Total net sales   $ 177,872     $ 187,391     $ 254,984     $ 532,182     $ 808,786  
    GAAP Financial Measures                              
    Gross margin %     45.7 %     45.7 %     52.5 %     45.4 %     55.8 %
    Operating margin %     — %     2.2 %     14.4 %     (1.2 )%     22.3 %
    Diluted EPS   $ (0.04 )   $ (0.18 )   $ 0.17     $ (0.31 )   $ 0.82  
    Non-GAAP Financial Measures                              
    Gross margin %     49.1 %     48.8 %     54.6 %     48.9 %     57.0 %
    Operating margin %     10.8 %     11.7 %     27.2 %     9.6 %     29.8 %
    Diluted EPS   $ 0.07     $ 0.08     $ 0.32     $ 0.18     $ 1.11  
                                             

    Business Outlook

    For the fourth quarter of fiscal year 2025 ending March 28, 2025, the Company expects total net sales to be in the range of $180 million to $190 million.

    The Company also estimates the following results on a non-GAAP basis:

    • Gross Margin is expected to be between 46% and 48%, which contemplates the impact of annual pricing agreements ahead of cost reductions, as well as higher capacity charges resulting from adjusted production levels in the quarter,
    • Operating expenses are expected to increase by approximately 5% sequentially to $72 million, primarily  due to annual payroll tax resets,
    • As a result of the expected repricing of the term loan and anticipated $30 million Q4 debt repayment, the Company now expects Interest Expense to be approximately $6 million, and
    • Diluted Earnings per Share are expected to be between $0.03 and $0.07.

    Allegro has not provided a reconciliation of its fourth fiscal quarter outlook for non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Interest Expense, and non-GAAP Diluted Earnings per Share because estimates of all of the reconciling items cannot be provided without unreasonable efforts. It is difficult to reasonably provide a forward-looking estimate between such forward-looking non-GAAP measures and the comparable forward-looking U.S. generally accepted accounting principles (“GAAP”) measures. Certain factors that are materially significant to Allegro’s ability to estimate these items are out of its control and/or cannot be reasonably predicted.

    Earnings Webcast

    A webcast will be held on Thursday, January 30, 2025 at 8:30 a.m., Eastern Time. Vineet Nargolwala, President and Chief Executive Officer, and Derek P. D’Antilio, Executive Vice President and Chief Financial Officer, will discuss Allegro’s business and financial results.

    The webcast will be available on the Investor Relations section of the Company’s website at investors.allegromicro.com. A recording of the webcast will be posted in the same location shortly after the call concludes and will be available for at least 90 days.

    About Allegro MicroSystems

    Allegro MicroSystems is a leading global designer, developer, fabless manufacturer and marketer of sensor integrated circuits (“ICs”) and application-specific analog power ICs enabling emerging technologies in the automotive and industrial markets. Allegro’s diverse product portfolio provides efficient and reliable solutions for the electrification of vehicles, automotive ADAS safety features, automation for Industry 4.0 and power saving technologies for data centers and clean energy applications.

    Forward-Looking Statements         

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, contained in this press release including statements regarding our future results of operations and financial position, business strategy, prospective products and the plans and objectives of management for future operations, including, among others, statements regarding the liquidity, growth and profitability strategies and factors affecting our business are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

    Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as “aim,” “may,” “will,” “should,” “expect,” “exploring,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “would,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “seek,” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance or achievements, and one should avoid placing undue reliance on such statements.

    Forward-looking statements are based on our management’s current expectations, beliefs and assumptions and on information currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended March 29, 2024, as any such factors may be updated from time to time in our Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission (the “SEC”). These risks and uncertainties include, but are not limited to: downturns or volatility in general economic conditions; our ability to compete effectively, expand our market share and increase our net sales and profitability; our reliance on a limited number of third-party semiconductor wafer fabrication facilities and suppliers of other materials; any failure to adjust purchase commitments and inventory management based on changing market conditions or customer demand; shifts in our product mix, customer mix or channel mix, which could negatively impact our gross margin; the cyclical nature of the semiconductor industry, including the analog segment in which we compete; any downturn or disruption in the automotive market or industry; our ability to successfully integrate the acquisition of other companies or technologies and products into our business; our ability to compensate for decreases in average selling prices of our products and increases in input costs; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication facilities or in the final assembly and test of our products; our ability to accurately predict our quarterly net sales and operating results and meet the expectations of investors; our dependence on manufacturing operations in the Philippines; our reliance on distributors to generate sales; events beyond our control impacting us, our key suppliers or our manufacturing partners; our ability to develop new product features or new products in a timely and cost-effective manner; our ability to manage growth; any slowdown in the growth of our end markets; the loss of one or more significant customers; our ability to meet customers’ quality requirements; uncertainties related to the design win process and our ability to recover design and development expenses and to generate timely or sufficient net sales or margins; changes in government trade policies, including the imposition of export restrictions and tariffs; our exposures to warranty claims, product liability claims and product recalls; our dependence on international customers and operations; the availability of rebates, tax credits and other financial incentives on end-user demands for certain products; risks, liabilities, costs and obligations related to governmental regulations and other legal obligations, including export/trade control, privacy, data protection, information security, cybersecurity, consumer protection, environmental and occupational health and safety, antitrust, anti-corruption and anti-bribery, product safety, environmental protection, employment matters and tax; the volatility of currency exchange rates; our ability to raise capital to support our growth strategy; our indebtedness may limit our flexibility to operate our business; our ability to effectively manage our growth and to retain key and highly skilled personnel; our ability to protect our proprietary technology and inventions through patents or trade secrets; our ability to commercialize our products without infringing third-party intellectual property rights; disruptions or breaches of our information technology systems or confidential information or those of our third-party service providers; our principal stockholder continues to have influence over us; anti-takeover provisions in our organizational documents and under the General Corporation Law of the State of Delaware; any failure to design, implement or maintain effective internal control over financial reporting; changes in tax rates or the adoption of new tax legislation; the negative impacts of sustained inflation on our business; the physical, transition and litigation risks presented by climate change; and other events beyond our control. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.

    You should read this press release and the documents that we reference completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. All forward-looking statements speak only as of the date of this press release, and except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, changed circumstances or otherwise.

    This press release includes certain non-GAAP financial measures as defined by the SEC rules. These non-GAAP financial measures are provided in addition to, and not as a substitute for or superior to measures of, financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their most directly comparable GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the presented non-GAAP financial measures as tools for comparison.

    This press release may not be reproduced, forwarded to any person or published, in whole or in part.

    ALLEGRO MICROSYSTEMS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except share and per share amounts)
    (Unaudited)
     
        Three-Month Period Ended     Nine-Month Period Ended  
        December 27, 2024     December 29, 2023     December 27, 2024     December 29, 2023  
    Net sales   $ 177,872     $ 254,984     $ 532,182     $ 808,786  
    Cost of goods sold     96,657       121,156       290,534       357,505  
    Gross profit     81,215       133,828       241,648       451,281  
    Operating expenses:                        
    Research and development     43,317       44,396       132,031       130,799  
    Selling, general and administrative     37,939       52,746       116,221       140,135  
    Total operating expenses     81,256       97,142       248,252       270,934  
    Operating (loss) income     (41 )     36,686       (6,604 )     180,347  
    Interest and other (expense) income     (7,561 )     (315 )     (25,902 )     (2,801 )
    Loss on change in fair value of forward repurchase contract     —       —       (34,752 )     —  
    (Loss) income before income taxes     (7,602 )     36,371       (67,258 )     177,546  
    Income tax (benefit) provision     (803 )     2,969       (9,233 )     17,584  
    Net (loss) income     (6,799 )     33,402       (58,025 )     159,962  
    Net income attributable to non-controlling interests     61       57       185       150  
    Net (loss) income attributable to Allegro MicroSystems, Inc.   $ (6,860 )   $ 33,345     $ (58,210 )   $ 159,812  
    Net (loss) income per common share attributable to Allegro MicroSystems, Inc.:                        
    Basic   $ (0.04 )   $ 0.17     $ (0.31 )   $ 0.83  
    Diluted   $ (0.04 )   $ 0.17     $ (0.31 )   $ 0.82  
    Weighted average shares outstanding:                        
    Basic     184,011,189       192,724,541       188,886,583       192,384,315  
    Diluted     184,011,189       194,570,380       188,886,583       194,925,040  
     

    Supplemental Schedule of Total Net Sales

    The following table summarizes total net sales by market within the Company’s unaudited condensed consolidated statements of operations:

        Three-Month Period Ended     Change     Nine-Month Period Ended     Change  
        December 27, 2024     December 29, 2023     Amount     %     December 27, 2024     December 29, 2023     Amount     %  
        (Dollars in thousands)     (Dollars in thousands)  
    Automotive   $ 130,066     $ 194,764     $ (64,698 )     (33 )%   $ 403,143     $ 577,515     $ (174,372 )     (30 )%
    Industrial and other     47,806       60,220       (12,414 )     (21 )%     129,039       231,271       (102,232 )     (44 )%
    Total net sales   $ 177,872     $ 254,984     $ (77,112 )     (30 )%   $ 532,182     $ 808,786     $ (276,604 )     (34 )%
     
    ALLEGRO MICROSYSTEMS, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands)
     
        December 27,     March 29,  
        2024
    (Unaudited)    		     2024  
    Assets            
    Current assets:            
    Cash and cash equivalents   $ 138,452     $ 212,143  
    Restricted cash     10,510       10,018  
    Trade accounts receivable, net     83,805       118,508  
    Inventories     193,140       162,302  
    Prepaid income taxes     36,037       31,908  
    Prepaid expenses and other current assets     33,683       33,584  
    Current portion of related party notes receivable     —       3,750  
    Total current assets     495,627       572,213  
    Property, plant and equipment, net     320,975       321,175  
    Deferred income tax assets     65,398       54,496  
    Goodwill     202,101       202,425  
    Intangible assets, net     261,553       276,854  
    Related party notes receivable, less current portion     —       4,688  
    Equity investment in related party     30,914       26,727  
    Other assets     65,172       72,025  
    Total assets   $ 1,441,740     $ 1,530,603  
    Liabilities, Non-Controlling Interests and Stockholders’ Equity            
    Current liabilities:            
    Trade accounts payable   $ 39,685     $ 35,964  
    Amounts due to related party     2,102       1,626  
    Accrued expenses and other current liabilities     57,751       76,389  
    Current portion of long-term debt     1,374       3,929  
    Total current liabilities     100,912       117,908  
    Long-term debt     374,729       249,611  
    Other long-term liabilities     31,673       31,368  
    Total liabilities     507,314       398,887  
    Commitments and contingencies            
    Stockholders’ Equity:            
    Preferred stock     —       —  
    Common stock     1,840       1,932  
    Additional paid-in capital     1,004,080       694,332  
    (Accumulated deficit) retained earnings     (38,791 )     463,012  
    Accumulated other comprehensive loss     (34,084 )     (28,841 )
    Equity attributable to Allegro MicroSystems, Inc.     933,045       1,130,435  
    Non-controlling interests     1,381       1,281  
    Total stockholders’ equity     934,426       1,131,716  
    Total liabilities, non-controlling interests and stockholders’ equity   $ 1,441,740     $ 1,530,603  
    ALLEGRO MICROSYSTEMS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
    (Unaudited)
     
        Three-Month Period Ended     Nine-Month Period Ended  
        December 27, 2024     December 29, 2023     December 27, 2024     December 29, 2023  
    Cash flows from operating activities:                        
    Net (loss) income   $ (6,799 )   $ 33,402     $ (58,025 )   $ 159,962  
    Adjustments to reconcile net (loss) income to net cash provided by operating activities:                        
    Depreciation and amortization     16,123       20,195       48,578       49,548  
    Amortization of deferred financing costs     694       185       1,781       292  
    Deferred income taxes     (3,751 )     (10,119 )     (11,546 )     (28,253 )
    Stock-based compensation     10,588       10,920       32,251       32,839  
    Loss on change in fair value of forward repurchase contract     —       —       34,752       —  
    Provisions for inventory and expected credit losses     3,031       429       7,519       9,851  
    Change in fair value of marketable securities     —       —       —       3,579  
    Other non-cash reconciling items     68       (25 )     6,645       18  
    Changes in operating assets and liabilities:                        
    Trade accounts receivable     (7,061 )     5,081       34,356       (2,564 )
    Inventories     (19,243 )     11,312       (38,074 )     (19,909 )
    Prepaid expenses and other assets     14,407       7,368       (1,401 )     (13,085 )
    Trade accounts payable     (8,203 )     (12,299 )     5,467       (9,604 )
    Due to and from related parties     (3,568 )     705       564       6,817  
    Accrued expenses and other current and long-term liabilities     (4,469 )     9,404       (21,307 )     (20,540 )
    Net cash (used in) provided by operating activities     (8,183 )     76,558       41,560       168,951  
    Cash flows from investing activities:                        
    Purchases of property, plant and equipment     (13,615 )     (34,399 )     (34,564 )     (110,500 )
    Acquisition of business, net of cash acquired     319       (408,119 )     319       (408,119 )
    Sales of marketable securities     —       —       —       16,175  
    Net cash used in investing activities     (13,296 )     (442,518 )     (34,245 )     (502,444 )
    Cash flows from financing activities:                        
    Net proceeds from Refinanced 2023 Term Loan Facility     —       —       193,483       —  
    Repayment of 2023 Term Loan Facility     (25,000 )     —       (75,000 )     —  
    Borrowings of senior secured debt, net of deferred financing costs     —       245,452       —       245,452  
    Repayment of 2020 Term Loan Facility     —       (25,000 )     —       (25,000 )
    Repayments of other debt     —       (743 )     —       (743 )
    Finance lease payments     (318 )     —       (703 )     —  
    Receipts on related party notes receivable     —       938       1,875       2,813  
    Payments for taxes related to net share settlement of equity awards     (483 )     (10,732 )     (12,780 )     (24,823 )
    Proceeds from issuance of common stock under employee stock purchase plan     —       —       1,987       1,899  
    Repurchases of common stock     (116 )     —       (853,921 )     —  
    Net proceeds from issuance of common stock     —       —       665,850       —  
    Payment of debt issuance costs     —       —       —       (1,450 )
    Net cash (used in) provided by financing activities     (25,917 )     209,915       (79,209 )     198,148  
    Effect of exchange rate changes on cash and cash equivalents and restricted cash     (2,680 )     1,349       (1,305 )     375  
    Net (decrease) increase in cash and cash equivalents and restricted cash     (50,076 )     (154,696 )     (73,199 )     (134,970 )
    Cash and cash equivalents and restricted cash at beginning of period     199,038       378,431       222,161       358,705  
    Cash and cash equivalents and restricted cash at end of period:   $ 148,962     $ 223,735     $ 148,962     $ 223,735  
     

    Non-GAAP Financial Measures

    In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures, defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP Gross Profit, non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Operating Income, non-GAAP Operating Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP Profit before Tax, non-GAAP Income Tax Provision, non-GAAP Effective Tax Rate, non-GAAP Net Income Attributable to Allegro MicroSystems, Inc, non-GAAP Basic and Diluted Earnings per Share, non-GAAP Free Cash Flow, and non-GAAP Free Cash Flow as percentage of net sales (collectively, the “Non-GAAP Financial Measures”). These Non-GAAP Financial Measures provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations, and in the case of non-GAAP Income Tax Provision, management believes that this non-GAAP measure of income taxes provides it with the ability to evaluate the non-GAAP Income Tax Provision across different reporting periods on a consistent basis, independent of special items and discrete items, which may vary in size and frequency. These Non-GAAP Financial Measures are used by both management and our board of directors, together with the comparable GAAP information, in evaluating our current performance and planning our future business activities.

    The Non-GAAP Financial Measures are supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. These Non-GAAP Financial Measures should not be considered as substitutes for GAAP financial measures, such as gross profit, gross margin, net income or any other performance measures derived in accordance with GAAP. Also, in the future we may incur expenses or charges, such as those being adjusted in the calculation of these Non-GAAP Financial Measures. Our presentation of these Non-GAAP Financial Measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. These Non-GAAP Financial Measures exclude costs related to acquisition and related integration expenses, amortization of acquired intangible assets, stock-based compensation, restructuring actions, related-party activities and other non-operational costs.

    Non-GAAP Income Tax Provision

    In calculating non-GAAP Income Tax Provision, we have added back the following to GAAP Income Tax Provision:

    • Tax effect of adjustments to GAAP results—Represents the estimated income tax effect of the adjustments to non-GAAP Profit before Tax described below and elimination of discrete tax adjustments.
    Reconciliation of Non-GAAP Gross Profit and Non-GAAP Gross Margin  
                                   
        Three-Month Period Ended     Nine-Month Period Ended  
        December 27, 2024     September 27, 2024     December 29, 2023     December 27, 2024     December 29, 2023  
        (Dollars in thousands)     (Dollars in thousands)  
    GAAP Gross Profit   $ 81,215     $ 85,662     $ 133,828     $ 241,648     $ 451,281  
    GAAP Gross Margin (% of net sales)     45.7 %     45.7 %     52.5 %     45.4 %     55.8 %
                                   
    Non-GAAP adjustments                              
    Transaction-related costs     5       10       523       14       523  
    Purchased intangible amortization     4,875       4,875       3,648       14,625       4,323  
    Restructuring costs     522       16       166       1,738       166  
    Stock-based compensation     802       817       1,073       2,180       4,625  
    Total Non-GAAP Adjustments   $ 6,204     $ 5,718     $ 5,410     $ 18,557     $ 9,637  
                                   
    Non-GAAP Gross Profit   $ 87,419     $ 91,380     $ 139,238     $ 260,205     $ 460,918  
    Non-GAAP Gross Margin (% of net sales)     49.1 %     48.8 %     54.6 %     48.9 %     57.0 %
    Reconciliation of Non-GAAP Operating Expenses  
                                   
        Three-Month Period Ended     Nine-Month Period Ended  
        December 27, 2024     September 27, 2024     December 29, 2023     December 27, 2024     December 29, 2023  
        (Dollars in thousands)     (Dollars in thousands)  
    GAAP Operating Expenses   $ 81,256     $ 81,595     $ 97,142     $ 248,252     $ 270,934  
                                   
    Research and Development Expenses                              
    GAAP Research and Development Expenses     43,317       43,510       44,396       132,031       130,799  
    Non-GAAP adjustments                              
    Transaction-related costs     333       206       343       1,568       352  
    Restructuring costs     568       260       908       997       908  
    Stock-based compensation     3,960       3,523       3,870       11,218       10,340  
    Other costs(1)     —       3       —       3       —  
    Non-GAAP Research and Development Expenses     38,456       39,518       39,275       118,245       119,199  
                                   
    Selling, General and Administrative Expenses                              
    GAAP Selling, General and Administrative Expenses     37,939       38,085       52,746       116,221       140,135  
    Non-GAAP adjustments                              
    Transaction-related costs     148       275       9,543       1,237       14,419  
    Purchased intangible amortization     535       535       495       1,605       1,210  
    Restructuring costs     1,264       2,046       5,795       4,355       5,795  
    Stock-based compensation     5,826       7,205       5,977       18,853       17,874  
    Other costs(1)     391       (1,820 )     283       (618 )     383  
    Non-GAAP Selling, General and Administrative Expenses     29,775       29,844       30,653       90,789       100,454  
                                   
    Total Non-GAAP Adjustments     13,025       12,233       27,214       39,218       51,281  
                                   
    Non-GAAP Operating Expenses   $ 68,231     $ 69,362     $ 69,928     $ 209,034     $ 219,653  
                                   
    (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions.  
    Reconciliation of Non-GAAP Operating Income and Non-GAAP Operating Margin  
                                   
        Three-Month Period Ended     Nine-Month Period Ended  
        December 27, 2024     September 27, 2024     December 29, 2023     December 27, 2024     December 29, 2023  
        (Dollars in thousands)     (Dollars in thousands)  
    GAAP Operating (Loss) Income   $ (41 )   $ 4,067     $ 36,686     $ (6,604 )   $ 180,347  
    GAAP Operating Margin (% of net sales)     — %     2.2 %     14.4 %     (1.2 )%     22.3 %
                                   
    Transaction-related costs     486       491       10,409       2,819       15,294  
    Purchased intangible amortization     5,410       5,410       4,143       16,230       5,533  
    Restructuring costs     2,354       2,322       6,869       7,090       6,869  
    Stock-based compensation     10,588       11,545       10,920       32,251       32,839  
    Other costs(1)     391       (1,817 )     283       (615 )     383  
    Total Non-GAAP Adjustments   $ 19,229     $ 17,951     $ 32,624     $ 57,775     $ 60,918  
                                   
    Non-GAAP Operating Income   $ 19,188     $ 22,018     $ 69,310     $ 51,171     $ 241,265  
    Non-GAAP Operating Margin (% of net sales)     10.8 %     11.7 %     27.2 %     9.6 %     29.8 %
                                   
    (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions.  
    Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin  
                                   
        Three-Month Period Ended     Nine-Month Period Ended  
        December 27, 2024     September 27, 2024     December 29, 2023     December 27, 2024     December 29, 2023  
        (Dollars in thousands)     (Dollars in thousands)  
    GAAP Net (Loss) Income   $ (6,799 )   $ (33,613 )   $ 33,402     $ (58,025 )   $ 159,962  
    GAAP Net (Loss) Income Margin (% of net sales)     (3.8 )%     (17.9 )%     13.1 %     (10.9 )%     19.8 %
                                   
    Interest expense     7,762       10,353       3,854       23,492       5,381  
    Interest income     (388 )     (420 )     (857 )     (1,302 )     (2,550 )
    Income tax (benefit) provision     (803 )     (9,470 )     2,969       (9,233 )     17,584  
    Depreciation & amortization     16,123       15,997       20,227       48,578       49,645  
    EBITDA   $ 15,895     $ (17,153 )   $ 59,595     $ 3,510     $ 230,022  
                                   
    Transaction-related costs     486       3,295       10,409       5,623       15,294  
    Restructuring costs     2,354       2,067       6,869       6,835       6,869  
    Stock-based compensation     10,588       11,545       10,920       32,251       32,839  
    Loss on change in fair value of forward repurchase contract     —       34,752       —       34,752       —  
    Other costs(1)     998       (2,195 )     (551 )     1,610       5,339  
    Adjusted EBITDA   $ 30,321     $ 32,311     $ 87,242     $ 84,581     $ 290,363  
    Adjusted EBITDA Margin (% of net sales)     17.0 %     17.2 %     34.2 %     15.9 %     35.9 %
                                   
    (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions, and income (loss) in earnings of equity investments.  
    Reconciliation of Non-GAAP Profit before Tax  
                                   
        Three-Month Period Ended     Nine-Month Period Ended  
        December 27, 2024     September 27, 2024     December 29, 2023     December 27, 2024     December 29, 2023  
        (Dollars in thousands)     (Dollars in thousands)  
    GAAP (Loss) Income before Income Taxes   $ (7,602 )   $ (43,083 )   $ 36,371     $ (67,258 )   $ 177,546  
                                   
    Transaction-related costs     486       3,295       10,409       5,623       15,294  
    Transaction-related interest     192       141       162       1,042       162  
    Purchased intangible amortization     5,410       5,410       4,143       16,230       5,533  
    Restructuring costs     2,354       2,067       6,869       6,835       6,869  
    Stock-based compensation     10,588       11,545       10,920       32,251       32,839  
    Loss on change in fair value of forward repurchase contract     —       34,752       —       34,752       —  
    Other costs(1)     1,427       1,428       (551 )     5,662       5,339  
    Total Non-GAAP Adjustments   $ 20,457     $ 58,638     $ 31,952     $ 102,395     $ 66,036  
                                   
    Non-GAAP Profit before Tax   $ 12,855     $ 15,555     $ 68,323     $ 35,137     $ 243,582  
                                   
    (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions, and income (loss) in earnings of equity investments.  
    Reconciliation of Non-GAAP Income Tax Provision and Non-GAAP Effective Tax Rate  
                                   
        Three-Month Period Ended     Nine-Month Period Ended  
        December 27, 2024     September 27, 2024     December 29, 2023     December 27, 2024     December 29, 2023  
        (Dollars in thousands)     (Dollars in thousands)  
    GAAP Income Tax (Benefit) Provision   $ (803 )   $ (9,470 )   $ 2,969     $ (9,233 )   $ 17,584  
    GAAP effective tax rate     10.6 %     22.0 %     8.2 %     13.7 %     9.9 %
                                   
    Tax effect of adjustments to GAAP results     398       10,071       3,748       10,074       10,128  
                                   
    Non-GAAP Income Tax (Benefit) Provision   $ (405 )   $ 601     $ 6,717     $ 841     $ 27,712  
    Non-GAAP effective tax rate     (3.2 )%     3.9 %     9.8 %     2.4 %     11.4 %
    Reconciliation of Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. and Non-GAAP Earnings per Share  
                                   
        Three-Month Period Ended     Nine-Month Period Ended  
        December 27, 2024     September 27, 2024     December 29, 2023     December 27, 2024     December 29, 2023  
        (Dollars in thousands)     (Dollars in thousands)  
    GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc.(1)   $ (6,860 )   $ (33,675 )   $ 33,345     $ (58,210 )   $ 159,812  
    GAAP Basic weighted average common shares     184,011,189       189,182,850       192,724,541       188,886,583       192,384,315  
    GAAP Diluted weighted average common shares     184,011,189       189,182,850       194,570,380       188,886,583       194,925,040  
    GAAP Basic (Loss) Earnings per Share   $ (0.04 )   $ (0.18 )   $ 0.17     $ (0.31 )   $ 0.83  
    GAAP Diluted (Loss) Earnings per Share   $ (0.04 )   $ (0.18 )   $ 0.17     $ (0.31 )   $ 0.82  
                                   
    Transaction-related costs     486       3,295       10,409       5,623       15,294  
    Transaction-related interest     192       141       162       1,042       162  
    Purchased intangible amortization     5,410       5,410       4,143       16,230       5,533  
    Restructuring costs     2,354       2,067       6,869       6,835       6,869  
    Stock-based compensation     10,588       11,545       10,920       32,251       32,839  
    Loss on change in fair value of forward repurchase contract     —       34,752       —       34,752       —  
    Other costs(2)     1,427       1,428       (551 )     5,662       5,339  
    Total Non-GAAP Adjustments     20,457       58,638       31,952       102,395       66,036  
    Tax effect of adjustments to GAAP results(3)     (398 )     (10,071 )     (3,748 )     (10,074 )     (10,128 )
    Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc.   $ 13,199     $ 14,892     $ 61,549     $ 34,111     $ 215,720  
    Basic weighted average common shares     184,011,189       189,182,850       192,724,541       188,886,583       192,384,315  
    Diluted weighted average common shares     184,485,792       189,710,595       194,570,380       189,577,693       194,925,040  
    Non-GAAP Basic Earnings per Share   $ 0.07     $ 0.08     $ 0.32     $ 0.18     $ 1.12  
    Non-GAAP Diluted Earnings per Share   $ 0.07     $ 0.08     $ 0.32     $ 0.18     $ 1.11  
                                   
    (1) GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc. represents GAAP Net (Loss) Income adjusted for Net Income Attributable to non-controlling interests.  
    (2) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consists of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions, income (loss) in earnings of equity investments, and unrealized losses (gains) on investments.  
    (3) To calculate the tax effect of adjustments to GAAP results, the Company considers each non-GAAP adjustment by tax jurisdiction and reverses all discrete items to calculate an annual non-GAAP effective tax rate (“NG ETR”).  This NG ETR is then applied to Non-GAAP Profit Before Tax to arrive at the tax effect of adjustments to GAAP results.  
    Reconciliation of Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow as Percentage of Net Sales        
                                   
        Three-Month Period Ended     Nine-Month Period Ended  
        December 27, 2024     September 27, 2024     December 29, 2023     December 27, 2024     December 29, 2023  
        (Dollars in thousands)     (Dollars in thousands)  
    GAAP Operating Cash Flow   $ (8,183 )   $ 15,547     $ 76,558     $ 41,560     $ 168,951  
    GAAP Operating Cash Flow (% of net sales)     -4.6 %     8.3 %     30.0 %     7.8 %     20.9 %
    Non-GAAP adjustments                              
    Purchases of property, plant and equipment     (13,615 )     (9,972 )     (34,399 )     (34,564 )     (110,500 )
                                   
    Non-GAAP Free Cash Flow   $ (21,798 )   $ 5,575     $ 42,159     $ 6,996     $ 58,451  
    Non-GAAP Free Cash Flow (% of net sales)     (12.3 )%     3.0 %     16.5 %     1.3 %     7.2 %

    Investor Contact:
    Jalene Hoover
    VP of Investor Relations & Corporate Communications
    +1 (512) 751-6526
    jhoover@allegromicro.com

    The MIL Network –

  • MIL-OSI: Beam Global Expands European Sales Network with Three New Distribution Partners

    Source: GlobeNewswire (MIL-OSI)

    SAN DIEGO, Jan. 30, 2025 (GLOBE NEWSWIRE) — Beam Global, (Nasdaq: BEEM), a leading provider of innovative and sustainable infrastructure solutions for the electrification of transportation and energy security, announced today that it is expanding its sales network in Europe with the addition of three new business partners:

    • Seltis Glass Design S.R.L. for the Romanian market
    • Evrosimovski Consulting Ltd. for the North Macedonian market
    • BBA International for the Albanian market

    “These distributor agreements with quality companies are an excellent continuation of our efforts to expand our selling resources across Europe,” said Desmond Wheatley, CEO of Beam Global. “We have existing trusted relationships with each of these companies through our Beam Europe operation, and now we are able to leverage their success and contacts to significantly increase our audience without adding to our operating costs. I’m looking forward to supporting the new customers they bring to Beam Global.”

    This expansion marks a significant step into Beam Global’s strategic growth into Europe, tapping further into the world’s largest automotive market. Through the integration of outsourced distributors and agents, Beam Global intensifies its commitment to advancing the electrification of transportation and enhancing energy security with sustainable infrastructure solutions in Europe.

    Market Overview (EUROPE)

    • The EU has set ambitious targets, mandating that electric vehicles account for 80% of new car sales in 2030 and 100% by 2035.
    • The EU electric vehicle charging station market was valued at USD 10.8 billion in 2024, and is estimated to grow at a CAGR of 29.3% from 2025 to 2034, to support the rapid growth of electric vehicles in Europe.

    About Beam Global
    Beam Global is a clean technology innovator which develops and manufactures sustainable infrastructure products and technologies. We operate at the nexus of clean energy and transportation with a focus on sustainable energy infrastructure, rapidly deployed and scalable EV charging solutions, safe energy storage and vital energy security. With operations in the U.S. and Europe, Beam Global develops, patents, designs, engineers and manufactures unique and advanced clean technology solutions that power transportation, provide secure sources of electricity, save time and money and protect the environment. Beam Global is headquartered in San Diego, CA with facilities in Chicago, IL and Belgrade and Kraljevo, Serbia. Beam Global is listed on Nasdaq under the symbol BEEM. For more information visit BeamForAll.com, LinkedIn, YouTube and X (formerly Twitter).

    Forward-Looking Statements
    This Beam Global Press Release may contain forward-looking statements. All statements in this Press Release other than statements of historical facts are forward-looking statements. Forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “target,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may,” or other words and similar expressions that convey the uncertainty of future events or results. These statements relate to future events or future results of operations. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, which may cause Beam Global’s actual results to be materially different from these forward-looking statements. Except to the extent required by law, Beam Global expressly disclaims any obligation to update any forward-looking statements.

    Media Contact
    Skyya PR
    +1 651-335-0585
    Press@BeamForAll.com

    Investor Relations
    Luke Higgins
    +1-858-799-4583
    IR@BeamForAll.com

    The MIL Network –

  • MIL-OSI: Lantronix to Report Fiscal 2025 Second Quarter Results on Feb. 6, 2025

    Source: GlobeNewswire (MIL-OSI)

    IRVINE, Calif., Jan. 30, 2025 (GLOBE NEWSWIRE) — Lantronix Inc. (the “Company”) (NASDAQ: LTRX), a global leader of compute and connectivity for IoT solutions enabling AI Edge Intelligence, today announced it will release financial results from its fiscal 2025 second quarter, ended Dec. 31, 2024, after the close of the market on Thursday, Feb. 6, 2025.

    Management will host an investor conference call and audio webcast at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on Feb. 6, 2025. To access the live conference call, investors should dial 1-844-802-2442 (US) or 1-412-317-5135 (international) and indicate they are participating in the Lantronix fiscal 2025 second-quarter call. The webcast will be available simultaneously via the investor relations section of the Company’s website.

    Investors can access a conference call replay starting at approximately 8:00 p.m. Pacific Time on Feb. 6, 2025, on the Lantronix website. A telephonic replay will also be available through Feb. 13, 2025, by dialing 1-877-344-7529 (US) or 1-412-317-0088 (international) or Canada Toll-Free 855-669-9658 and entering passcode 3433776.

    About Lantronix

    Lantronix Inc. is a global leader of compute and connectivity IoT solutions that target high-growth markets, including Smart Cities, Enterprise and Transportation. Lantronix’s products and services empower companies to succeed in the growing IoT markets by delivering customizable solutions that enable AI Edge Intelligence. Lantronix’s advanced solutions include Intelligent Substations infrastructure, Infotainment systems and Video Surveillance, supplemented with advanced Out-of-Band Management (OOB) for Cloud and Edge Computing.

    For more information, visit the Lantronix website.

    Lantronix Media Contact:        
    Gail Kathryn Miller
    Corporate Marketing &
    Communications Manager
    media@lantronix.com

    Lantronix Analyst and Investor Contact:        
    investors@lantronix.com

    © 2024 Lantronix Inc. All rights reserved. Lantronix is a registered trademark, and SLB and SLC are trademarks of Lantronix Inc. Other trademarks and trade names are those of their respective owners.

    The MIL Network –

  • MIL-OSI: Northfield Capital Announces Updates From Cornerstone Investment Juno Corp. and Forward Share Split

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Jan. 30, 2025 (GLOBE NEWSWIRE) — Northfield Capital Corporation (TSX-V: NFD.A) (“Northfield” or the “Corporation”) is pleased to announce that Juno Corp., one of Northfield’s cornerstone investments and a leading explorer in the strategically important Ring of Fire region of northern Ontario, has announced successful results from its 2024 drilling campaign. This news underscores the potential of Northfield’s investment in Juno Corp., a private Ontario exploration company and the largest mineral claimholder in the Ring of Fire, a region which is expected to play a strategic role for Ontario and Canada in the coming electrification of the world. Northfield currently holds a 17% ownership interest in Juno Corp., valued at C$31.5 million. This strategic investment positions Northfield to benefit from the potential growth of this mineral resource hub. For further details, please refer to the news releases of Juno Corp. dated January 29, 2025, available on its website, at www.junocorp.com.

    Northfield is also pleased to announce that it is undertaking a forward share split (the “Share Split”) of the Class A restricted voting shares of the Corporation (the “Class A Shares”) and Class B multiple voting shares of the Corporation (the “Class B Shares”), in each case on the basis of five (5) new shares of the applicable class for each one (1) share of the applicable class currently issued outstanding, with a record date of February 6, 2025 and a payment date of February 11, 2025.

    Share Split

    The Share Split will be implemented on the basis of five (5) new shares of the applicable class for each one (1) share of the applicable class currently issued outstanding.

    Based on the Corporation’s discussions with the TSX Venture Exchange, on February 11, 2025 (the “Payment Date”), each shareholder of record of Northfield as of the close of business on February 6, 2025 (the “Record Date”) will receive, as applicable, four (4) additional Class A Shares for each Class A Share held on the Record Date, and four (4) additional Class B Shares for each Class B Share held on the Record Date.

    Based on the Corporation’s discussions with the TSX Venture Exchange, the Class A Shares are expected to trade on a due bill basis from February 6, 2025 (being the commencement of trading on the Record Date) to the close of trading on the Payment Date (i.e., February 11, 2025), inclusive. A due bill is an entitlement attached to listed securities undergoing a material corporate action, such as the Share Split. In this instance, the entitlement is to the additional Class A Shares as a result of the Share Split. Any trades of Class A Shares that are executed during the due bill period will be flagged to ensure purchasers receive the entitlement to the additional Class A Shares issuable as a result of the Share Split. Subject to final regulatory approvals (including, the final acceptance of the TSX Venture Exchange), the Class A Shares are expected to commence trading on a split-adjusted basis on February 12, 2025 (the ex-distribution trading date), as of which date purchases of Class A Shares will no longer have the attaching entitlement to the additional Class A Shares. The due bill redemption date is expected to be February 12, 2025.

    As of the date hereof, Northfield has an aggregate of 2,834,032 Class A Shares and 3,720 Class B Shares issued and outstanding. Upon completion of the Share Split, there will be an aggregate of 14,170,160 Class A Shares and 18,600 Class B Shares issued and outstanding. The Corporation’s authorized share capital will remain unchanged upon completion of the Share Split. All outstanding stock options and share purchase warrants of Northfield will be adjusted accordingly in accordance with their terms in connection with the Share Split.

    There will be no change to the Corporation’s name, CUSIP/ISIN or its current trading symbol in connection with the Share Split.

    The Share Split is being undertaking to increase the number of outstanding Class A Shares and Class B Shares in an effort to improve market liquidity and the marketability of the shares. The Share Split was approved by the shareholders of Northfield at the annual and special meeting of shareholders held on June 27, 2024.

    Mechanics of the Share Split

    On the Payment Date (being, February 11, 2025), the additional Class A Shares and Class B Shares required to give effect to the Share Split will be issued to holders of record at the close of business on the Record Date. The Share Split will be conducted on a “push-out” basis, and therefore, no action is required by shareholders of Northfield. Existing share certificates and direct registration system advices (“DRS Advices”) representing Class A Shares and/or Class B Shares will continue to remain effective following completion of the Share Split, and accordingly, should be retained by shareholders and should not be forwarded to Northfield or TSX Trust Company (“TSX Trust”), the registrar and transfer agent of Northfield.

    Northfield will use the direct registration system to electronically register the Class A Shares and Class B Shares issued pursuant to the Share Split, rather than issuing physical share certificates. Accordingly, following completion of the Share Split, TSX Trust will issue and cause to be mailed out, to registered shareholders of Northfield, DRS Advice representing the number of additional Class A Shares and/or Class B Shares, as applicable, which they are entitled to receive as a result of the Share Split. Non-registered (beneficial) shareholders of Northfield who hold Class A Shares and/or Class B Shares in an account with their investment dealer or other intermediary will have their accounts automatically updated to reflect the Share Split in accordance with the applicable brokerage account providers’ usual procedures.

    About Northfield Capital Corporation

    Northfield Capital Corporation is a leading Canadian investment firm with deep roots in resources, mining, aviation, and alcoholic beverages. Founded in 1981, Northfield combines decades of experience with a forward-thinking ethos to unlock opportunities.

    For further information, please contact:

    Michael G. Leskovec, CPA, CA
    Chief Financial Officer
    Telephone: (416) 628-5940

    Forward-Looking Statements

    Forward-looking statements are included in this news release. These forward-looking statements are identified by the use of terms such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and “should” and similar terms and phrases, including references to assumptions. Such statements may involve but are not limited to, the anticipated timing for the completion of the Share Split (including, the anticipated Record Date, Payment Date, and due bill redemption date), the mechanics for the delivery of the new Class A Shares and Class B Shares to the shareholders of Northfield following the completion thereof, and associated information, as well as statements with respect to the Ring of Fire and its role for Ontario and Canada in the coming electrification of the world, and any potential benefits associated with Northfield’s strategic investment in Juno Corp. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Any forecasts, predictions or forward-looking statements cannot be relied upon due to, among other things, changing external events and general uncertainties of the business and its corporate structure. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons. The forward-looking statements contained herein are subject to change. However, Northfield disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

    Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

    The MIL Network –

  • MIL-OSI United Kingdom: Highland growth opportunities showcased to international audience

    Source: Scotland – Highland Council

    Whilst in attendance at the Scottish Cities Week the Council Leader had the opportunity to meet with the Secretary of State for Scotland and the Parliamentary Under-Secretary of State for Scotland making representation on a number of matters that are important to the whole of the Highland Council area . Pictured is The Highland Council Leader, Councillor Raymond Bremner with the Secretary of State for Scotland, The Rt Hon Ian Murray MP and Allan Maguire, the Council’s Head of Development and Regeneration.

    The Highland Council’s Leader Councillor Raymond Bremner attended Scottish Cities Week in London (20-22 January) to promote investment opportunities in Inverness, the Highlands and the Highland Council area.  Scottish Cities Week aims to provide a focused opportunity to create and develop long-term strategic partnerships, with a wide array of investors and developers.

    Its success is rooted in the cities working in collaboration with the Scottish and UK Government, via the Scottish Cities Alliance, to boost investor confidence and deliver a programme of activity promoting the benefits of investing in Scotland’s smart and sustainable cities. It also provides opportunities for Highland Council representatives to meet with government Ministers and Cabinet Secretaries and discuss matters of importance to the Highlands.

    The multi-day event is attended by national and international investors together with representatives from the Scottish Government, Scottish Development International and the Department of Business and Trade.  This year’s event programme focused on seizing the unique opportunities related to our contribution towards the transition to net zero and other high growth businesses and sectors, driving place-based investment and innovation and enabling infrastructure.  

    The event coincides with the council’s recent launch of the new Invest Highland brand which is aimed at promoting the Highlands’ wealth of investment opportunities.

    Council Leader Cllr Raymond Bremner said: “The Highland region is really coming into its own and is attracting interest from all over the world.  We have so much to offer inward investors and Scottish Cities Week is a great platform for showcasing the world class opportunities which exist throughout our area. Attracting investors to the region is essential to address societal challenges and unlock transformational change. 

    “With representatives also attending from Highlands and Islands Enterprise and the Inverness and Cromarty Firth Green Freeport, it helps demonstrate the successful partnerships we have in Highland and shows our ambition for the future.”

    30 Jan 2025

    MIL OSI United Kingdom –

  • MIL-OSI Europe: Written question – Removal from the Polish sanctions list of a company linked to Russia – E-000260/2025

    Source: European Parliament

    Question for written answer  E-000260/2025
    to the Commission
    Rule 144
    Piotr Müller (ECR)

    Under current EU rules, Member States are required to update the lists of sanctioned companies on the basis of the EU’s common rules and regulations on sanctions. There are serious concerns about the decision taken by the Polish Deputy Minister of Internal Affairs to remove Omne Energia – a company linked to Gazprom – from the Polish sanctions list. The company was removed from the Polish sanctions list on the basis of a bogus transaction – the sale of shares for only PLN 3 – to managers working with the Russians.

    • 1.What is the Commission’s position on the fact that a company linked to Gazprom will receive PLN 26.7 million from the Warsaw city authorities for the supply of gas to the municipal bus operator (Miejskie Zakłady Autobusowe)?
    • 2.Was the Commission consulted about the decision to remove the company from the sanctions list on the basis of a bogus act?
    • 3.Is the Commission aware of similar action taken by Member States to circumvent sanctions against Russia?

    Submitted: 22.1.2025

    Last updated: 30 January 2025

    MIL OSI Europe News –

  • MIL-OSI Europe: EIB Group increases investment in Austria for growth, innovation and climate action by nearly a third

    Source: European Investment Bank

    • In 2024, the EIB Group reached a funding volume of €1.7 billion in Austria
    • Focus on countercyclical investment promotion in energy-intensive industries such as steel production
    • The expansion of renewable energies remains a priority goal

    The European Investment Bank Group (EIB Group) can look back on a successful year 2024 in Austria.  With a total lending volume of nearly €1.7 billion, it granted around 30% more loans than in the previous year. Funding applications were submitted to the EIB by public and private sector firms, primarily for energy projects that reduce CO2 emissions and promote the transition to renewable energy.

    2024 brought a rise in the construction of solar plants and wind farms in Austria – supported by the national government, which has set the objective of generating all of the country’s electricity from renewable sources by 2030. As in the two previous years, in 2024 the EIB exceeded its goal of allocating at least 50% of funding to climate action. In Austria, 64% of total investment went to climate.

    The EIB co-finances wind and solar projects together with partner banks. In Burgenland, it is providing €80 million to fund six solar parks by Püspök. They will supply 71 000 households with electricity, and the farmland they will be built on can continue to be used to grow crops.

    Burgenland Energie AG will also receive EIB financing of up to €620 million to build solar and wind parks. With a generation capacity of 1.3 GW once complete, they will be able to meet one-sixth of Austria’s electricity needs. The EU bank is also co-financing the Spannberg wind park in Lower Austria, with four wind turbines and a further seven in the planning phase.

    The EIB Group, consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), seeks to be a reliable partner in making European industry more competitive – especially in difficult economic times, by promoting countercyclical investment. In the steel and construction industries, the EIB Group finances projects in Austria that support their green transition: for example, with a €300 million grant issued to Voestalpine for research and development.

    “The EIB is a strong partner for Austria’s future,” EIB Vice-President Thomas Östros stated. “Our investments make it easier for firms to expand and become more innovative, to use renewable energy and to cut energy consumption. We invest countercyclically and promote the long-term competitiveness of Austrian industry. We will continue to support the development of wind, solar and hydro power plants.”

    To increase the housing supply, the EIB is continuing to back affordable housing projects. In Salzburg and Tyrol, it is working with regional savings banks to finance the construction of 1 750 rental units in non-profit housing with low-cost framework loans.

    As in previous years, the EIF – whose shareholders include the EIB, the European Commission and several national and regional promotional banks – continued to support specialised funds targeting startups and innovative technologies, investing €66 million in Austria.

    In 2024, in view of the EIB Group’s policy priorities, projects in Austria in the field of sustainable energy and natural resources received the most support, with €765 million, followed by innovation, digital and human capital, with €462 million. Sustainable cities and regions received €329 million, and SMEs and mid-caps received €112 million.

    EIB Group investment in Austria in 2024 supported investment of in total €4.3 billion. Thus, each euro of EIB Group financing raised investment of around €2.60.

    Background information

    EIB 

    The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives by bolstering digitalisation and technological innovation, security and defence, agriculture and bioeconomy, social infrastructure, high-impact investments outside the EU, and the Capital Markets Union.  

    The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 projects in 2024. These commitments are expected to mobilise around €350 billion in investment, supporting 400 000 companies and 5.8 million jobs.  

    All projects financed by the EIB Group are in line with the Paris Climate Accord and the EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment. 

    Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards. 

    MIL OSI Europe News –

  • MIL-OSI Europe: EIB Group financing in Slovenia totals €284 million in 2024, driving the energy transition and business innovation

    Source: European Investment Bank

    • EIB Group provided €284 million of new financing in Slovenia last year, boosting the energy transition, business innovation and capital markets.
    • Funding of €154 million from EIB and €130 million from EIF in the country in 2024.
    • Investments strengthened Slovenia’s electricity grid, early-stage companies and venture-capital markets.

    The European Investment Bank (EIB) Group  provided €284 million of fresh financing in Slovenia last year, bolstering the energy transition, business innovation and capital markets in the country. The total for 2024 includes €154 million from the EIB and €130 million from the European Investment Fund (EIF), which targets micro companies and small and medium-sized enterprises (SMEs) in Europe.

    EIB financing in Slovenia last year focused on energy projects, fostering sustainable energy and energy efficiency, while the EIF investments supported venture capital and private equity to boost entrepreneurship and innovation.

    “We are committed to fostering a sustainable, innovative and inclusive Slovenian economy,” said EIB Vice-President Kyriacos Kakouris. “Our investments in Slovenia last year not only strengthen the country’s energy resilience and competitiveness but also ensure that businesses and communities can thrive in a rapidly changing environment.”

    Over the past five years, the EIB Group has invested over €1 billion in Slovenia, focusing on sustainable transport, energy infrastructure and capital markets. Its financing of local electricity distribution covers four out of five distribution companies, which supply around nine out of 10 Slovenian households.

    Grid upgrades and business innovation

    The EIB last year signed agreements with three power companies to upgrade Slovenia’s electricity grids. It committed €36 million to Elektro Maribor, €50 million to Elektro Ljubljana and €58 million to Elektro Celje.

    These loans will reinforce regional energy infrastructure, enabling the integration of renewable energy, expanding capacity for electric vehicle charging and climate-proofing critical systems. The projects align with Slovenia’s 2050 climate targets and the European Union’s REPowerEU strategy.

    Additionally, the EIB provided advisory services to municipalities, public institutions and private companies to ensure comprehensive support for sustainable growth across Slovenia.

    For its part, the EIF pressed ahead in 2024 with its long-standing support for Slovenian SMEs and Mid-Caps, focusing on innovation and early-stage businesses. A highlight last year was a €40 million EIF pledge to the Vesna Deep Tech Venture Fund to build up technology transfer in Slovenia as well as Croatia. The fund prioritises early-stage businesses, fosters innovation and protects intellectual property, strengthening Slovenia’s venture-capital ecosystem.

    Since 1996, the EIF has facilitated €531 million in financing for approximately 8,000 Slovenian enterprises, supporting 78,000 jobs.

    Background information

    The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It finances sound investment that contributes towards EU policy goals, including social and territorial cohesion, competitiveness, innovation, sustainable development and the just, swift transition to net zero. The EIB has committed €7.78 billion in total financing for projects in Slovenia since the start of its operations in the country.

    MIL OSI Europe News –

  • MIL-OSI Europe: EIB Group annual figures for 2024: €3 billion for competitiveness, strategic autonomy and SMEs in the Netherlands

    Source: European Investment Bank

    • In 2024, the EIB Group mobilised nearly €3.1 billion, primarily for small and medium businesses (SMEs) and innovation.
    • The EIB financed social infrastructure and increased support for innovative Dutch firms and those in the growth phase, promoting strategic autonomy.
    • The EIF also granted nearly €634 million in financing, in the form of guarantees and equity.

    Last year the EIB Group, made up of the European Investment Bank (EIB) and the European Investment Fund (EIF), invested nearly €3.1 billion in projects implemented in the Netherlands. Of that, €2.45 billion were granted by the EIB in the form of loans and venture debt. The EIF also mobilised some €634 million in the form of guarantees and equity contributions. Worldwide, the EIB Group granted a record amount of almost €89 billion, with no less than €50.7 billion going to help fight climate change and protect the environment.

    EIB Vice-President Robert de Groot remarked, “If Europe wishes to remain strong and competitive, it must invest more in technology, energy and manufacturing. In the long run, it cannot afford to depend on others in these areas. That is why the EIB Group is fully committed to fostering innovation in the Netherlands, especially through venture capital lending. And of course, we are also continuing to support projects that have a positive impact on the daily lives of people, like hospitals, flood control and better access to financing for SMEs. Sustainability will also remain a core principle in 2025.”

    In 2024, nearly a third of EIB Group investments in the Netherlands were linked to innovation in different areas, in particular those backed by the European Commission’s InvestEU programme. For example, companies such as Samotics, LUMICKS and Resato received EIB venture debt targeted to growing firms.

    In the realm of innovation, the chip manufacturer NXP also signed a financing agreement that will allow it to increase investment in research and development, in particular for next-generation semiconductors for the automotive sector.

    The EIF was also very active in the Netherlands in 2024. In addition to guarantees provided to SMEs by ABN Amro and microloans issued by Qredits, Dutch venture capital funds such as 4impact Fund, Innovation Industries and European Cyber Security Tech Fund also received support from the EIF.

    In 2024, sustainability remained a dominant factor for EIB Group investments in the Netherlands, especially in its support for SMEs. Along with a financing agreement with ABN Amro for €450 million, part of which targeted sustainable SMEs, the EIB and Rabobank signed a ninth impact loan providing reduced interest rates for SMEs certified under a sustainable development label.

    Background information

    The EIB is the EU’s long-term financing institution, owned by the Member States. It finances investments that contribute to EU policy objectives. The Netherlands’ shareholding in it is 5.2%. Over the past decade, the EIB has lent more than €27 billion to support Dutch projects in a variety of sectors, including research and development, transport, clean water, healthcare and SMEs.

    MIL OSI Europe News –

  • MIL-OSI Europe: Answer to a written question – Possible location drawbacks in Member States as a result of the Sustainability Directive – E-002253/2024(ASW)

    Source: European Parliament

    European Sustainability Reporting Standards (ESRS)[1] will benefit companies by improving access to sustainable finance and reducing the burden caused by multiple overlapping voluntary reporting standards and frameworks.

    They will help European companies to identify and manage their sustainability impacts and risks, enhancing their resilience and international competitiveness in the medium and long term.

    The Commission acknowledges that the new rules create costs, especially in the short term. To address this the Commission has: i) agreed with the Parliament and the Council to postpone by two years the deadline for adoption of sector standards; ii) raised the monetary thresholds to define large companies, thus reducing the number of companies in scope by 14%; iii) required EFRAG[2] to provide additional guidance for companies; iv) published Question & Answers to clarify key questions[3]; v) written to Member States to urge them to adopt a proportionate approach to enforcement; vi) and mobilised EU funds for the provision of technical support to companies at national level.

    In addition, the Commission is working towards adopting an Omnibus Simplification package, that will look, among other legislation, at the Corporate Sustainability Reporting Directive ( CSRD)[4].

    The Commission estimated at EUR 1 700 million the total annual recurring costs of reporting[5]. It is a significant reduction compared to the estimates in the 2021 CSRD impact assessment[6] which was published before the adoption of the ESRS.

    Assuming that about 49 000 groups are in scope, the estimated average recurring costs would be approximately EUR 35 000 per group.

    With the increase of the monetary thresholds for ‘large undertakings’, the total costs should be even lower.

    • [1] https://finance.ec.europa.eu/news/commission-adopts-european-sustainability-reporting-standards-2023-07-31_en
    • [2] Commission’s advisory body on ESRS
    • [3] https://finance.ec.europa.eu/publications/frequently-asked-questions-implementation-eu-corporate-sustainability-reporting-rules_en
    • [4]  OJ L 322, 16.12.2022, p. 15-80.
    • [5] According to the ESRS for companies within its scope.
    • [6] SWD/2021/150 final.
    Last updated: 30 January 2025

    MIL OSI Europe News –

  • MIL-OSI Europe: Lithuania financing from EIB Group totals €449 million in 2024, boosting business and green investments

    Source: European Investment Bank

    • EIB Group financing in Lithuania last year totalled €449 million, bolstering business and green investments nationwide.
    • Funding supported 1,200 Lithuanian companies and sustained 19,000 jobs.
    • Energy storage and clean railways among key 2024 projects.

    The European Investment Bank (EIB) Group’s financing in Lithuania last year amounted to €449 million, spurring business investments and accelerating the country’s green transition. The total for 2024 includes €240 million from the EIB and €209 million from the European Investment Fund (EIF), which targets small and medium-sized enterprises (SMEs).

    The EIB Group pledges last year in Lithuania supported 1,200 SMEs and Mid-Caps, sustained 19,000 jobs and covered 21 investment projects across the country.  Top operations included EIB loans of €105 million to Lithuanian utility Ignitis Group for expanding a pumped storage hydroelectric power plant and €100 million to national railway service LTG Link for buying electric and battery trains.

    “Lithuania’s commitment to sustainability is inspiring,” said EIB Vice-President Thomas Östros. “Our investments in the country in 2024 underscore our dedication to supporting Lithuania’s green transition and economic resilience. We are helping to build a sustainable future for all Lithuanians.”

    The level of EIB Group financing in Lithuania in 2024 was broadly in line with the organisation’s average annual commitments of €562 million in the country over the past five years. For example, EIB Group financing in Lithuania totalled €654 million in 2023 and €219 million in 2022. 

    Energy and transport projects

    The €105 million EIB loan last year to Ignitis Group is for expanding the Kruonis Pumped Storage Hydroelectric Power Plant and making it one of Europe’s largest energy-storage facilities. The goal is to increase Lithuania’s energy independence and help the country achieve 100% renewable electricity by 2030.

    The €100 million EIB loan to LTG Link is for replacing a third of the company’s train fleet. The aim is to reduce carbon-dioxide emissions from trains, shorten rail-travel times and improve passenger accessibility.

    Also in the area of energy, the EIB last year signed a €35 million loan to district utility Kauno Energija for upgrading the heating and hot water system of the city of Kaunas by refurbishing pipelines, adding heat storage tanks and integrating renewable sources. This project will boost energy efficiency, diversify the energy mix and reduce reliance on imported natural gas, benefiting around 400,000 residents and businesses.

    Supporting small companies

    The EIF’s pledges in Lithuania last year included nearly €129 million to businesses through deals with various banks and financial institutions including AB Mano Bankas, AB SEB Bankas, Swedbank Bank Lithuania, UAB SME Bank, Lithuanian Central Credit Union, Taurus Fondas UAB and UAB Heavy Finance.

    These agreements unlock loans to Lithuanian SMEs at preferential terms to support growth, create jobs and speed up the transition to a carbon-neutral economy.

    In 2024, the EIF also invested €50 million in IAM CEE Student Housing Fund, an infrastructure fund committed to building housing for up to 3,500 students in Central-Eastern European countries including Lithuania, and €30 million in INVL Private Equity Fund II, a private equity fund dedicated to boosting investments in high-growth SMEs mainly in Lithuania.

    Background information     

    EIB

    The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.  

    The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.  

    All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.  

    Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards. 

    MIL OSI Europe News –

  • MIL-OSI Europe: Finland financing from EIB Group more than doubles in 2024 to €2.3 billion

    Source: European Investment Bank

    • EIB Group investments in Finland rose to €2.3 billion in 2024 from €992 million the year before.
    • Financing boost of 132% supported 1,800 Finnish SMEs and Mid-Caps and sustained 40,000 jobs in the country.
    • Most funding went to green projects and business innovation.

    The European Investment Bank (EIB) Group’s financing in Finland more than doubled to €2.3 billion in 2024, with the bulk of funds aimed at accelerating the green transition and business innovation in the country. The EIB Group’s pledges last year represent a 132% increase from €992 million in 2023.

    The financing in Finland last year included €1.7 billion from the EIB and €606 million from the European Investment Fund (EIF) arm, which focuses on supporting Europe’s micro companies and small and medium-sized enterprises (SMEs).

    The EIB Group’s funding in Finland in 2024 supported 1,800 SMEs and Mid-Caps, sustained 40,000 jobs and covered 21 investment initiatives across the country. The amount is expected to trigger €5.1 billion of total investment, equivalent to 1.9% of Finnish gross domestic product (GDP).

    “Our significant investments in 2024 underscore our unwavering commitment to Finland’s economic growth and resilience,” said EIB Vice-President Thomas Östros. “By financing a diverse array of projects from cutting-edge healthcare to pioneering renewable-energy solutions, we are not just supporting Finland’s present needs but also building a brighter, more sustainable future. “

    Driving innovation and sustainability

    In 2024, half of the EIB Group’s funding in Finland was allocated to the green transition and a third to business innovation. This marks a 215% rise in support for Finnish sustainability and innovation compared with the previous year.

    “Finland stands as a leading example of innovation and sustainability in Europe,” said Östros.

    The EIB Group’s financing in Finland last year targeted a range of sectors including industrial investments, energy, education and healthcare.

    Key green transition and innovation projects

    Green transition and innovation projects backed by the EIB last year included a €168 million investment in the Keliber lithium project to enhance the EU’s battery material supply for electric vehicles and high-tech industries. Additionally, Prysmian’s factory in Pikkala received more than €221 million in EIB funding to expand its production of extra-high-voltage submarine power cables, supporting the EU’s clean energy-transmission goals.

    Furthermore, the EIB invested €150 million to replace Helsinki’s fossil-based heating plants with renewable energy, supporting the city’s sustainability and carbon-reduction efforts as part of REPowerEU. In addition, the EIB provided a €435 million loan to Stora Enso for producing sustainable packaging at the Oulu factory, promoting a circular economy with renewable materials.

    Lastly, Swappie received a €14 million venture-debt loan to refurbish and resell iPhones, reducing electronic waste and extending the lifecycle of devices, making high-quality technology more accessible.

    Empowering SMEs and Mid-Caps

    The EIB Group’s support for Finnish SMEs and Mid-Caps last year included a €200 million partnership with Finnvera. This initiative aimed to tackle barriers to accessing finance by sharing risks associated with economic uncertainties such as inflation, high interest rates, limited external growth opportunities, and unpredictable energy supplies.

    For its part, the EIF collaborated with leading Finnish banks to provide over €560 million in loan guarantees last year. This substantial financing empowers SMEs, small Mid-Caps and housing associations to advance Finland’s climate goals, promote environmental sustainability and invest in innovation and digitalisation. In addition, the EIF made two new commitments in Finnish venture capital and private equity funds.

    Investing in public infrastructure

    The EU bank prioritised healthcare and education infrastructure in 2024, making significant investments in Finland’s public sector. A €100 million loan will upgrade Helsinki’s Laakso hospital, providing state-of-the-art medical services. Thousands of children in Tuusula will benefit from modern schools funded by a €105 million EIB loan. Additionally, the EIB is financing water-infrastructure projects in the Helsinki area, promoting sustainable water management, one of the key priorities of the bank.

    Over the past five years, the EIB Group has provided nearly €8.6 billion in financing for Finland, highlighting the organisation’s dedication to the country’s economic growth and development.

    For more information on EIB Group results in 2024, please click here.

    Background information     

    EIB

    The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality. 

    The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.  

    All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.  

    Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards. 

    MIL OSI Europe News –

  • MIL-OSI Europe: Estonia financing from EIB Group totals €498 million in 2024, fuelling business innovation and green growth

    Source: European Investment Bank

    • EIB Group financing in Estonia totalled €498 million last year.
    • Funding supported 800 Estonian companies and sustained 4,300 jobs.
    • The level of EIB Group funding in Estonia was among the highest in the EU as a share of GDP.
    • Most support directed towards green innovation and urban sustainability.

    The European Investment Bank (EIB) Group’s financing in Estonia last year amounted to €498 million, representing 1.3% of Estonia’s GDP. This was the second highest in the European Union as a share of gross domestic product (GDP). This support helped hundreds of businesses grow and contributed to making the country greener, generating nearly €2.2 billion in additional investments.

    The EIB Group commitments last year in Estonia supported 800 SMEs as well as Mid-Caps and sustained 4,300 jobs across the country. The main operation was a €400 million EIB loan to the Estonian government for EU grants co-financing, including for green and digital initiatives.

    “Estonia’s dedication to innovation and sustainability is an example for all,” said EIB Vice-President Thomas Östros. “Our financing in the country last year highlights our commitment to propelling Estonian economic, green and digital advances.”

    The level of EIB Group funding in Estonia last year exceeded an annual average of €433 million in the country over the past five years. For example, EIB Group financing in Estonia amounted to €540 million in 2023 and €111 million in 2022.   

    To deepen its relationship with Estonia, the EIB Group plans to open an office in Tallinn in 2025.

    “This shows our long-term commitment to Estonia’s economic development and our desire to be closer to the communities we serve,” said Östros.

    Key operations

    The €400 million EIB loan to the Estonian government aims to boost green and digital initiatives and deliver multiple benefits, including energy efficiency improvements and the digitalisation of public and private organisations. This credit marks the second and final tranche of a €700 million EIB loan to bolster the Estonian economy.

    In a venture capital deal last year, the EIB provided UP Catalyst with an €18 million loan to scale up the converting of industrial emissions of carbon dioxide (CO₂) into carbon-neutral graphite and nanotubes – high-performance materials used in batteries, electronics, paints, coatings, polymers and concrete.

    Additionally, as part of multi-country operations in 2024, the EIB offered Finland-based iPhone refurbisher Swappie €1.4 million of financing in Estonia to refurbish and resell handsets and provided €2.4 million in funding to Italian automotive company SAPA to develop sustainable vehicle parts in Estonia.

    Notable European Investment Fund (EIF) operations in Estonia last year included support for businesses through deals with various banks and financial institutions, such as LHV Pank, Swedbank, and Hüpoteeklaen. These operations are expected to leverage almost €600 million in financing to support business growth, create jobs, and accelerate the transition to a carbon-neutral economy.

    For more information on EIB Group results in 2024, please click here.

    Background information     

    EIB

    The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives by bolstering digitalisation and technological innovation, security and defence, agriculture and bioeconomy, social infrastructure, high-impact investments outside the EU, and the Capital Markets Union.   

    The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 projects in 2024. These commitments are expected to mobilise around €350 billion in investment, supporting 400 000 companies and 5.8 million jobs.   

    All projects financed by the EIB Group are in line with the Paris Climate Accord and the EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.   

    Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.  

    MIL OSI Europe News –

  • MIL-OSI Europe: EIB Group achieves record results in 2024, targets €95 billion in investments for 2025

    Source: European Investment Bank

    • The EIB Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024.
    • A record of nearly 60% of all EIB Group financing supported the green transition, climate action and environmental sustainability.
    • There was a sharp increase in higher-risk activities, with a record €8 billion committed for equity and quasi-equity investment.
    • Financing for security and defence projects doubled to €1 billion in 2024, with a further doubling planned in 2025.

    The European Investment Bank (EIB) Group signed €89 billion in new financing last year. The Group made more investments than ever before to strengthen EU energy security, mobilising over €100 billion for projects in new and upgraded infrastructure such as grids and interconnectors, renewables, net-zero industries, efficiency and storage. Nearly 60% of the total financing supported the green transition, climate action and environmental sustainability.

    Our preliminary results once again signal robust profitability. At the same time, higher-risk EIB operations to back Europe’s most innovative companies have sharply increased. A record €8 billion in equity and quasi-equity investment from the EIB and the European Investment Fund (EIF) is expected to mobilise €110 billion in growth capital for startups, scale-ups and European pioneers.

    Eligible security and defence investment doubled in 2024, and the goal is to double this figure again this year. Furthermore, the EIB Group significantly extended its eligible investments in dual-use projects, which now include border protection, military mobility, de-mining and de-contamination, space, cybersecurity, anti-jamming equipment, seabed and critical infrastructure protection, research and development, and drones.  

    Looking ahead, the EIB Group plans to increase its overall investments to €95 billion in 2025, with flagship initiatives to support European tech champions and a dedicated TechEU programme, critical raw materials, water management, the energy efficiency of small and medium-sized companies, and a dedicated platform to promote sustainable and affordable housing.

    In parallel with increasing its investment capacity and impact, the EIB Group is making significant progress in cutting red tape for clients and has shortened the time to market required to approve and deploy new investments. During 2024, it introduced simplified appraisal procedures covering more than 40% of its operations.

    “We have broken records with our financing in 2024. We have made ourselves ready to support EU priorities in this new political mandate. And we will play an even more relevant role in 2025 – building on the excellent performance of the EIB Group to increase our impact, bolstering Europe’s security and competitiveness with strategic and ambitious investments,” said EIB Group President Nadia Calviño as she presented the annual operational results of the EIB Group in Brussels.

    Making records

    The EIB Group financing committed in 2024 is expected to power almost 15 million households with clean energy, create up to 1.5 million new jobs in Europe over the next few years, advance therapies against cancer, and help secure affordable housing from Croatia to Latvia.

    In more detail, highlights from last year include:

    • Stepped up higher-risk activities, expected to mobilise about €110 billion in new investments. This includes a record €7.2 billion of investments by the EIF in the equity funds ecosystem, and €1 billion in venture debt by the EIB.
    • More than €14 billion in total investment deployed by the EIF to support Europe’s small businesses and innovators, including in 102 venture capital funds, such as a dedicated fund to back women-owned and gender-balanced startups in space and deep tech.
    • A record €51 billion – around 60% of last year’s investments – to support the green transition, climate action and environmental sustainability, from the world’s first zero-emissions tyre factory in Romania to support for sustainable mobility in Valencia, keeping the EIB Group well on track to meet its target of supporting €1 trillion in climate and environmental sustainability investment in the critical decade to 2030.
    • A record €31 billion to back EU energy security, including for efficiency, renewables, storage and electricity grids, which is expected to support over €100 billion in investment. Flagship initiatives include counter-guarantees to bolster European wind manufacturers, electric vehicle battery manufacturing in France and the Princess Elisabeth Island in Belgium. For grids and storage, financing rose to a record €8.5 billion, mobilising 40% of Europe’s total investment in that sector in 2024, including transmission network upgrades and interconnectors in Spain, Czechia and Germany.
    • Support for eligible security and defence projects doubled to €1 billion, including the deployment of dual-use satellites in Poland, port upgrades to meet the needs of NATO vessels in Denmark and investment by the EIF in dedicated private investment funds. A further doubling of annual investments to €2 billion is expected this year.
    • A record €38 billion to accelerate social and territorial cohesion, including credit lines for farmers in Romania, innovative startups in Greece and just transition projects in Estonia.
    • The EIB Group has also provided financial support to boost climate resilience and adaptation from post-landslide reconstruction in Italy to recovery investments in European regions affected by devastating floods.
    • With more than €2.2 billion disbursed since 2022, EIB Group investments in Ukraine are helping to repair schools, kindergartens and hospitals, upgrade transport and protect energy infrastructure, as well as support the private sector.

    Beyond Ukraine, the EIB Group’s operations outside the European Union are supporting stability in the EU neighbourhood and partner countries on their path to EU membership, including with rail upgrades in countries such as Albania and Montenegro.

    Supporting EU global priorities and helping strengthen Europe’s voice in the world, EIB Group financing also helps drought-stricken countries like Jordan to manage water supplies. Thanks to reinforced partnerships inside and outside the European Union, EIB investments are helping eliminate diseases like polio and support sustainable infrastructure around the world from Vietnam to India.

    Ready for the challenges ahead

    Under President Calviño, who took office in January 2024, the EIB Group has updated its internal policies and investment strategy to maximise impact and scale up support for shared European priorities.

    Changes include:

    • A Strategic Roadmap, aligned with EU policies and agreed by the EU 27 Member States (the EIB’s shareholders) to focus resources on impactful investment on eight core priorities.
    • A revamped framework expanding the EIB Group’s activity in the areas of security and defence, with streamlined internal procedures and new partnerships with external stakeholders, such as the NATO Innovation Fund and the European Defence Agency.
    • EIB governors approved the increase of the gearing ratio, an outdated limit on EIB Group’s investments.[1] This will enable the EIB Group to make the necessary strategic investments to deliver on EU policy goals while preserving its leverage and capital ratios.
    • An action plan with building blocks for a deeper capital markets union.
    • Actions and proposals to cut red tape, improve the usability of EU sustainability reporting rules and optimise the use of EU budget instruments.
    • A stepped up time to market initiative to simplify internal processes and boost efficiency, enabling much faster approvals for new financing.
    • An action plan to improve transparency, accountability and well-being in the workplace, including the appointment of an ombudsperson to swiftly address common workplace issues and improve the working environment.

    More relevant than ever in 2025

    Looking ahead, the EIB Group Operational Plan covers up to €95 billion in new investment in 2025, supported by the Group’s stellar credit rating and strong capital position.

    New initiatives aligned with the priorities of the new European Commission expected to be rolled out in 2025 include:

    • Maintaining a 60% green finance target.
    • Scaling up support for leading technologies, including clean-tech, artificial intelligence, chips, high-performance and quantum computing, health sciences and medical technologies, and Europe’s cutting-edge industrial capacity.
    • An exit platform to facilitate the listing of European scale-ups in EU markets or the acquisition of these promising innovators by European companies.
    • An extension of the highly successful European Tech Champions Initiative (ETCI) as part of the broader goal to boost equity and venture debt investments to scale up Europe’s innovative startups.
    • Further doubling of support for Europe’s security and defence industry
    • A pan-European investment platform for affordable and sustainable housing, together with the European Commission and increased financing for the housing sector.
    • Increasing investment for critical raw materials projects, such as the Keliber lithium production facility in Finland agreed last year.
    • A dedicated water programme of about €4.5 billion to focus investment on flood resilience, and to address water scarcity amid intensifying droughts.
    • New support for Europe’s farmers through agricultural insurance and other de-risking schemes, building on a €3 billion facility to improve access to financing for young farmers and women.
    • A €2.5 billion programme to scale up energy efficiency investments by small and medium-sized companies so they can lower their CO2 emissions and electricity bills.

    EIB Group press conference on annual results

    Background information

    The EIB Group is the financing institution of the European Union owned by its Member States. It supports investment contributing toward EU policy goals, including sustainable growth, social and territorial cohesion, innovation and security. It finances its operations in global capital markets and has been consistently profitable in its operations since its inception. The EIB Group is the pioneer and one of the largest issuers of green bonds, while all of its operations are aligned with the Paris Climate Agreement.

    [1] Subject to final approval by the Council of the European Union.

    MIL OSI Europe News –

  • MIL-OSI Europe: Commissioner Tzitzikostas speech at Delphi Brussels Forum

    Source: EuroStat – European Statistics

    European Commission Speech Brussels, 30 Jan 2025 Transport is a vital contributor to competitiveness. We have 1.4 million companies active in transport and storage in Europe. My goals are clear: Defend our industry and its workers, reduce our dependencies, create a level playing field, and fulfil our climate objectives.

    We also have ind

    MIL OSI Europe News –

  • MIL-OSI: Grayscale Launches Grayscale® Bitcoin Miners ETF (Ticker: MNRS)

    Source: GlobeNewswire (MIL-OSI)

    STAMFORD, Conn., Jan. 30, 2025 (GLOBE NEWSWIRE) — Grayscale, an asset management firm with extensive experience in crypto investing, today announced the launch of Grayscale® Bitcoin Miners ETF (Ticker: MNRS) (the “Fund”).

    Grayscale® Bitcoin Miners ETF is Grayscale’s latest exchange-traded product offering investors exposure to Bitcoin miners and the Bitcoin mining ecosystem. The Fund specifically invests in companies that comprise the Indxx Bitcoin Miners Index, a proprietary index designed to measure the performance of global Bitcoin mining companies that generate the majority of their revenue from Bitcoin mining activities or mining-related hardware, software, services, and/or projects.

    The Bitcoin mining industry is crucial for maintaining the Bitcoin network’s transparency and long-term security and the new Fund offers investors a way to gain exposure to companies supporting this mining ecosystem. This can be appealing to those seeking an alternative to direct Bitcoin investment, as well as to those who lack access or are not yet ready to invest directly in Bitcoin or digital assets but still want exposure to companies that, we believe are correlated to Bitcoin’s price in a familiar ETF wrapper.

    “Grayscale® Bitcoin Miners ETF offers investors targeted exposure to Bitcoin Miners and the global Bitcoin Mining industry in a passively managed, rules-based, and index-tracked fund designed to evolve with the industry,” said David LaValle, Global Head of ETFs at Grayscale. “Bitcoin Miners, the backbone of the network, are well-positioned for significant growth as Bitcoin adoption and usage increases, making MNRS an appealing option for a diverse range of investors.”

    For more information about MNRS, please visit: https://etfs.grayscale.com/mnrs

    Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (8CC)-775-0313 or visit our website at etfs.grayscale.com/mnrs. Read the prospectus or summary prospectus carefully before investing.

    Investing involves risk and possible loss of principal. Shares of ETFs may trade at a premium or discount to their net asset value.

    The Fund will not invest in digital assets directly or through the use of derivatives. The Fund also will not invest in initial coin offerings. The Fund may, however, have indirect exposure to digital assets by virtue of its investments in companies that use one or more digital assets as part of their business activities or that hold digital assets as proprietary investments. Because the Fund will not invest directly in any digital assets, it will not track price movements of any digital assets.

    MNRS is distributed by Foreside Fund Services, LLC and Grayscale Advisors, LLC is the adviser.

    About Grayscale

    Grayscale Operating, LLC (“GSO”) enables investors to access the digital economy through a family of future-forward investment products. Founded in 2013, GSO has a decade-long track record and deep expertise as an asset management firm focused on crypto investing. Investors, advisors, and allocators turn to Grayscale for single asset, diversified, and thematic exposure. For more information, please follow @Grayscale or visit grayscale.com. GSO is the parent company of Grayscale Advisors, LLC.

    Media Contact

    press@grayscale.com

    Client Contact

    866-775-0313

    info@grayscale.com

    The MIL Network –

  • MIL-OSI: CSW Industrials Reports Record Fiscal 2025 Third Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    DALLAS, Jan. 30, 2025 (GLOBE NEWSWIRE) — CSW Industrials, Inc. (Nasdaq: CSWI or the “Company”) today reported record results for the fiscal 2025 third quarter period ended December 31, 2024.

    Fiscal 2025 Third Quarter Highlights (comparisons to fiscal 2024 third quarter)

    • Total revenue increased 10.7% to a third quarter record of $193.6 million, driven by inorganic growth of 8.7% from the recent acquisitions of Dust Free, PSP Products, and PF WaterWorks, and organic growth of 1.9%
    • Net income attributable to CSWI of $26.9 million, or $24.9 million adjusted, increased 48.9% to a third quarter record, compared to $16.7 million
    • Earnings per diluted share (“EPS”) of $1.60, or $1.48 adjusted, increased 38.2% to a third quarter record, compared to $1.07
    • Adjusted EBITDA grew 14.2% to a third quarter record of $42.0 million, including margin expansion for the third quarter of 70 bps to 21.7%

    Fiscal 2025 Year-to-Date Highlights (comparisons to fiscal 2024 year-to-date period)

    • Total revenue increased 11.3% to $647.8 million, of which $34.1 million, or 5.9%, was inorganic growth from recent acquisitions, and 5.5%, or $31.7 million was organic growth
    • Net income attributable to CSWI of $101.6 million, or $99.5 million adjusted, increased 28.6% as compared to $77.4 million
    • EPS of $6.30, or $6.17 adjusted, improved 24.2% compared to $4.97
    • Adjusted EBITDA increased 16.6% to $168.1 million, including margin expansion of 120 bps to 26.0%
    • Invested $84.5 million in acquisitions and $11.7 million in organic capital expenditures, while returning total cash of $24.3 million to shareholders through share repurchases of $13.7 million and dividends of $10.6 million

    Comments from the Chairman, President, and Chief Executive Officer

    Joseph B. Armes, CSW Industrials’ Chairman, President, and Chief Executive Officer, commented, “I am very pleased to announce record revenue for the fiscal third quarter driven by the strategic acquisitions of Dust Free, PSP Products, and PF WaterWorks during the last twelve months as well as organic volume growth. Impressively, the team also achieved record net income, adjusted earnings per diluted share, and adjusted EBITDA for the fiscal third quarter.”

    Armes continued, “During the quarter, our disciplined allocation of capital continued with the acquisition of PF WaterWorks, bringing innovative, eco-friendly drain management solutions within the profitable plumbing end market to the CSWI family. The addition of these new products to our current portfolio fuels inorganic growth, additional organic growth over time, and increased market share.”

    Fiscal 2025 Third Quarter Consolidated Results

    Fiscal third quarter revenue was $193.6 million, a $18.7 million or 10.7% increase over the prior year period. Total revenue growth included $15.3 million or 8.7% inorganic growth contributed by the Dust Free, PSP, and PF WaterWorks acquisitions, which are all reported within the Contractor Solutions segment, with the remaining $3.4 million or 1.9% related to organic growth contributed from all three operating segments.

    Gross profit in the fiscal third quarter was $80.1 million, representing 8.3% growth over $74.0 million in the prior year period. Gross margin contracted 90 bps to 41.4%, compared to 42.3% in the prior year period. The gross margin decrease was primarily a result of increased freight expense.

    Operating expenses as a percentage of revenue were 26.1% or 25.6% adjusted to exclude the $0.9 million acquisition broker fee in the current period, which was lower than the prior year period of 26.5%. Operating expenses were $50.5 million or $49.7 million adjusted in the current year period, compared to $46.4 million in the prior year period, with leverage of revenue growth through the absorption of expenses related to recent acquisitions, additional spend on acquisition integration, and investments in team members to support ongoing revenue growth.

    Operating income in the current period was $29.6 million or $30.5 million adjusted to exclude the acquisition broker fee, compared to $27.6 million in the prior year period. Operating income as a percentage of revenue was 15.3% or 15.7% adjusted, compared to 15.8% in the prior year period. The main driver of the slight decrease in operating margin was a result of the previously mentioned contraction in the gross margin, which was partially offset by improved leverage on operating expenses.

    Interest income was $2.0 million, compared to interest expense of $2.8 million in the prior year period. The $4.8 million shift from interest expense to interest income was a result of having no debt outstanding during the quarter, as the outstanding balance on our revolver was fully repaid in second fiscal quarter 2025, augmented by interest income earned on the balance of net proceeds from the equity offering closed in the second fiscal quarter 2025.

    Other expense was $0.3 million, compared to other expense of $8.4 million in the prior year period. A $0.9 million tax indemnification asset was released in the current period, as compared to $8.5 million of tax indemnification assets released in the prior year period.

    Net income attributable to CSWI (net of non-controlling interest in the joint venture) increased to $26.9 million, compared to the prior year period of $9.2 million. Adjusted to exclude the release of the tax indemnification assets and uncertain tax position accruals in the current and prior periods, as well as the acquisition broker fee in the current period, adjusted net income was $24.9 million and adjusted EPS of $1.48 vs. $16.7 million and $1.07, an increase over the prior year period of 48.9% and 38.2%, respectively.

    Fiscal 2025 third quarter adjusted EBITDA increased 14.2% to $42.0 million, up from $36.8 million in the prior year period. Adjusted EBITDA margin expanded 70 bps to 21.7%, compared to 21.0% in the prior year period.

    The quarterly cash flows from operations of $11.6 million, compared to $47.0 million in the prior year period, were lower primarily due to a previously disclosed $16.8 million tax payment deferral from fiscal first half 2025 to fiscal third quarter 2025 under a temporary federal tax relief related to the severe storms and flooding in Texas in early calendar 2024. Additionally, increased investment in inventory during the third fiscal quarter 2025, compared to the prior year period, resulted from actions taken to mitigate certain supply chain issues that were expected to potentially arise in the first calendar quarter of 2025.

    Following quarter-end, the Company announced its twenty-fourth consecutive regular quarterly cash dividend in the amount of $0.24 per share, which will be paid on February 14, 2025, to shareholders of record on January 31, 2025.

    The Company’s effective tax rate for the fiscal third quarter was 13.8%, or 24.5% adjusted, as compared to 43.2% or 32.5% adjusted in the prior year period, when adjusted to exclude the previously disclosed release of tax indemnification assets and the uncertain tax position accruals for acquisitions in both periods, as well as the acquisition broker fee and related tax impact in the current period. The decrease in the adjusted tax rate was driven by a favorable foreign currency rate impact on the cumulative unrepatriated foreign earnings and an increased benefit related to vesting of employee equity awards.

    Fiscal 2025 Third Quarter Segment Results

    Contractor Solutions segment revenue was $132.2 million, a $16.7 million or 14.5% increase over the prior year period, comprised of inorganic growth of $15.3 million from the recent acquisitions of Dust Free, PSP Products, and PF WaterWorks (91.4% of the $16.7 million growth) and organic growth of $1.4 million from increased organic unit volumes. As compared to the prior year period, net revenue growth was driven by the HVAC/R, plumbing, and electrical end markets. Segment operating income improved to $26.8 million or $27.6 million adjusted to exclude the $0.9 million acquisition broker fee, compared to $25.8 million in the prior year period. The incremental profit resulted from revenue growth and the inclusion of recently acquired businesses and was partially offset by increased freight, including a freight expense alignment in the quarter and increased spending on business integrations. Segment operating income margin in the fiscal third quarter was 20.2% or 20.9% adjusted, compared to 22.3% in the prior year period. Segment adjusted EBITDA in the fiscal third quarter was $37.5 million, or 28.4% of revenue, compared to $33.0 million, or 28.6% of revenue in the prior year period.

    Specialized Reliability Solutions segment revenue was $34.6 million, a $0.9 million or 2.5% increase from the prior year period. The increased net revenue was driven by growth in the general industrial and rail end markets. Segment operating income improved to $5.2 million, as compared to $3.7 million in the prior year period, an increase of 40.1%. Segment operating income margin for the fiscal third quarter improved to 15.2%, compared to the prior year period of 11.1% as a result of manufacturing efficiencies and management of operating expenses. Segment EBITDA improved by 26.5% to $6.6 million in the fiscal third quarter, with an EBITDA margin of 19.1% as compared to 15.4% in the prior year period.

    Engineered Building Solutions segment revenue was $28.8 million, a 3.4% increase compared to $27.9 million in the prior year period. Segment operating income was $3.6 million, or 12.6% of revenue, as compared to the prior year period of $3.5 million, or 12.7% of revenue. Segment EBITDA and EBITDA margin improved slightly to $4.1 million and 14.2%, respectively, in the fiscal third quarter, compared to $4.0 million and 14.2%, respectively, in the prior year period.

    Fiscal 2025 Year-to-Date Consolidated Results

    Fiscal year-to-date revenue was $647.8 million, representing 11.3% growth over $582.0 million in the prior year period, with growth in all three reporting segments. Of the $65.8 million total growth, $31.7 million (5.5% of the 11.3% total growth) resulted from organic growth, with the remainder ($34.1 million) contributed by the Dust Free, PSP Products, and PF WaterWorks acquisitions.

    Gross profit in the fiscal year-to-date period was $291.4 million, representing $34.3 million or 13.3% growth from $257.1 million in the prior year period, with the incremental profit resulting predominantly from revenue growth driven by increased organic unit volumes, a slight increase from pricing actions, and the recent acquisitions. Gross margin was 45.0%, compared to 44.2% in the prior year period. The gross margin improvement was a result of leveraging the volume increase, favorable product mix, and a slight favorable impact from pricing actions.

    Operating expenses as a percentage of revenue were 24.0% or 23.8% adjusted, compared to 24.5% in the prior year period, as the increase in revenue growth outpaced the increase in operating expenses. Operating expenses in the current year period were $155.2 million or $154.4 million adjusted to exclude the $0.9 million acquisition broker fee, compared to $142.3 million in the prior year period. The additional expenses were related to employee compensation and recent acquisition expenses including amortization of intangible assets, business development expenses, and integration costs.

    In the current period, operating income was $136.2 million or $137.1 million adjusted, compared to $114.8 million in the prior year period. The incremental operating income resulted from the gross profit increase, partially offset by the operating expense increase detailed above. Operating income margin in the current period improved to 21.0% or 21.2% adjusted, compared to the prior year period of 19.7%. During the comparative periods, the strengthened operating margin was due to the improvement in gross margin combined with the management of operating expenses.

    Interest expense was $1.9 million, compared to interest expense of $10.1 million in the prior year period. The decrease of $8.2 million was a result of a lower debt balance throughout the first half of the year, then fully repaying the outstanding balance borrowed against our revolver during the second fiscal quarter 2025. Additionally, during the second and third fiscal quarters, the Company recognized interest income earned from the remaining net proceeds of the equity offering that closed in second fiscal quarter 2025.

    Other expense was $0.7 million, compared to $6.2 million in the prior year period. The change in other expense of $5.5 million was primarily due to a $0.9 million tax indemnification asset was released in the current period, as compared to $8.5 million of tax indemnification assets released in the prior period, in addition to a gain of $1.4 million reported in the prior year period in connection with the sale of a property previously held for investment that did not recur. The remaining variance is a result of foreign currency impact related to transactions in currencies other than functional currencies.

    In the current period, reported net income attributable to CSWI improved 45.4% to $101.6 million, or $6.30 per diluted share. Adjusted net income attributable to CSWI was $99.5 million, or $6.17 per diluted share. In the prior year period, adjusted net income attributable to CSWI was $77.4 million, or $4.97 per diluted share.

    Fiscal 2025 year-to-date adjusted EBITDA increased 16.6% to $168.1 million from $144.2 million in the prior year period. Adjusted EBITDA as a percentage of revenue improved 120 bps to 26.0%, compared to 24.8%, in the prior year period.

    Net cash provided by operating activities for the fiscal 2025 year-to-date period was $141.1 million, compared to $141.9 million in the prior year-to-date period, a 0.6% decrease compared to the prior year period. The Company paid down all $166.0 million of debt in the first half utilizing our record cash flow from operations and net proceeds from the follow-on equity offering, while also returning a total of $24.3 million in cash to shareholders through $10.6 million in dividends and $13.7 million in share repurchases utilizing our outstanding cash flow from operations.

    The Company’s effective tax rate for the fiscal year-to-date period was 23.3% on a GAAP basis, and 25.8% as adjusted.

    Fiscal 2025 Year-to-Date Segment Results

    Contractor Solutions segment revenue was $451.4 million, a $56.1 million or 14.2% increase from the prior year period. Revenue growth was comprised of inorganic growth from Dust Free, PSP Products, and PF WaterWorks acquisitions ($34.1 million, or 8.6%, of the total growth), and organic growth of $22.1 million (5.6% of the total 14.2% growth) due to increased unit volumes and a slight increase from pricing actions. As compared to the prior year period, net revenue growth was driven primarily by the HVAC/R, plumbing, and electrical end markets. Segment operating income in the current year period was $122.9 million or $123.8 million adjusted to exclude the $0.9 million acquisition broker fee, compared to $104.4 million in the prior year period. The incremental profit resulted from the increased unit volumes, favorable product mix, pricing actions, and the inclusion of recent acquisitions. This growth was partially offset by increased freight expense, increased employee compensation expense, and business integration costs as the segment builds out the infrastructure to support continued growth, and increased expenses related to the inclusion of Dust Free, PSP Products, and PF WaterWorks in the current period, including amortization of intangible assets.

    Contractor Solutions segment operating income margin was 27.2% or 27.4% adjusted, compared to 26.4% in the prior year period, an increase of 80 bps, driven primarily by increased operating leverage from the additional volume, favorable product mix and pricing actions, combined with the management of operating expenses. Segment adjusted EBITDA in the current period was $149.4 million, or 33.1% of revenue, compared to $126.4 million, or 32.0% of revenue in the prior year period.

    Specialized Reliability Solutions segment revenue grew to $109.9 million, a $1.9 million or 1.7% increase over the prior year period of $108.0 million, primarily due to increased unit volumes, with growth in the rail transportation and industrial end markets offset by a decrease in mining and energy end markets. In the current year period, segment operating income improved by 17.2% to $18.2 million, or 16.6% of revenue, compared to the prior year period of $15.5 million, or 14.4% of revenue. Improved segment operating income was primarily a result of a favorable inventory adjustment as well as the increased volume. Segment EBITDA in the current period was $22.2 million, or 20.2% of revenue, compared to $19.9 million, or 18.5% of revenue in the prior year period.

    Engineered Building Solutions segment revenue was $92.4 million, a $7.7 million or 9.1% increase over the prior year period, primarily due to the conversion of backlog into revenue and market expansion. Segment operating income increased 18.6% to $15.5 million, or 16.7% of revenue, compared to the prior year period of $13.0 million, or 15.4% of revenue, due to the increased net revenue and improved operating leverage, offset by increased employee expenses to support revenue growth. Segment EBITDA in the current period was $16.9 million, or 18.3% of revenue, compared to $14.4 million, or 17.0% of revenue in the prior year period.

    All percentages are calculated based upon the attached financial statements. Share count used in determining the diluted EPS is based on a weighted average of outstanding shares throughout the reporting period.

    Conference Call Information

    The Company will host a conference call today at 10:00 a.m. ET to discuss the results, followed by a question-and-answer session for the investment community. A live webcast of the call can be accessed at https://cswindustrials.gcs-web.com/. To access the call, participants may dial 1-877-407-0784, international callers may use 1-201-689-8560, and request to join the CSW Industrials earnings call.

    A telephonic replay will be available shortly after the conclusion of the call and until Thursday, February 13, 2025. Participants may access the replay at 1-844-512-2921, international callers may use 1-412-317-6671 and enter access code 13750887. The call will also be available for replay via webcast link on the Investors portion of the CSWI website www.cswindustrials.com.

    Safe Harbor Statement

    This press release includes 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, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as “may,” “should,” “expects,” “could,” “intends,” “plans,” “anticipates,” “estimates,” “believes,” “forecasts,” “predicts” or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, effective tax rate, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations, and financial performance and condition.

    The forward-looking statements included in this press release are based on our current expectations, projections, estimates, and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the risk factors described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.

    All forward-looking statements included in this press release are based on information currently available to us, and we assume no obligation to update any forward-looking statement except as may be required by law.

    Non-GAAP Financial Measures

    This press release includes an analysis of adjusted diluted earnings per share attributable to CSWI, adjusted net income attributable to CSWI, adjusted effective tax rate, adjusted operating income and free cash flows, which are non-GAAP financial measures of performance. Attributable to CSWI is defined to exclude the income attributable to the non-controlling interest in the Whitmore JV.

    CSWI utilizes adjusted EBITDA (earnings before interest, tax, depreciation and amortization) as an additional consolidated, non-GAAP financial measure, which consists of consolidated net income including income attributable to the non-controlling interest in the Whitmore JV, adjusted to remove the impact of income taxes, interest expense, depreciation, amortization and impairment, and significant nonrecurring items.

    For a reconciliation of these measures to the most directly comparable GAAP measures and for a discussion of why we consider these non-GAAP measures useful, see the “Reconciliation of Non-GAAP Measures” section of this release.

    About CSW Industrials, Inc.

    CSW Industrials is a diversified industrial growth company with industry-leading operations in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions. CSWI provides niche, value-added products with two essential commonalities: performance and reliability. The primary end markets we serve with our well-known brands include: HVAC/R, plumbing, electrical, general industrial, architecturally-specified building products, energy, mining, and rail transportation. For more information, please visit www.cswindustrials.com.

    Investor Relations

    Alexa Huerta
    Vice President, Investor Relations and Treasurer
    214-489-7113
    alexa.huerta@cswindustrials.com

     
    CSW INDUSTRIALS, INC.
    CONSOLIDATED STATEMENTS OF INCOME
    (unaudited)
     
        Three Months Ended
    December 31,    		   Nine Months Ended
    December 31,
    (Amounts in thousands, except per share amounts)     2024       2023       2024       2023  
    Revenues, net   $ 193,649     $ 174,967     $ 647,752     $ 581,980  
    Cost of revenues     (113,543 )     (100,986 )     (356,324 )     (324,873 )
    Gross profit     80,106       73,981       291,428       257,107  
    Selling, general and administrative expenses     (50,511 )     (46,400 )     (155,224 )     (142,327 )
    Operating income     29,595       27,581       136,204       114,780  
    Interest income (expense), net     1,976       (2,765 )     (1,884 )     (10,080 )
    Other expense, net     (298 )     (8,428 )     (716 )     (6,188 )
    Income before income taxes     31,273       16,388       133,604       98,512  
    Provision for income taxes     (4,315 )     (7,083 )     (31,175 )     (27,968 )
    Net income     26,958       9,305       102,429       70,544  
    Less: Income attributable to redeemable noncontrolling interest     (10 )     (83 )     (839 )     (655 )
    Net income attributable to CSW Industrials, Inc.   $ 26,948     $ 9,222     $ 101,590     $ 69,889  
                     
    Net income per share attributable to CSW Industrials, Inc.                
    Basic   $ 1.60     $ 0.59     $ 6.32     $ 4.50  
    Diluted     1.60       0.59       6.30       4.49  
                     
    Weighted average number of shares outstanding:                
    Basic     16,792       15,546       16,066       15,537  
    Diluted     16,872       15,596       16,136       15,578  
    CSW INDUSTRIALS, INC.
    CONSOLIDATED BALANCE SHEETS
    (unaudited)
     
    (Amounts in thousands, except for per share amounts)   December 31, 2024   March 31, 2024
    ASSETS        
    Current assets:        
    Cash and cash equivalents   $ 213,754     $ 22,156  
    Accounts receivable, net of allowance for expected credit losses of $1,295 and $908, respectively     114,825       142,665  
    Inventories, net     202,764       150,749  
    Prepaid expenses and other current assets     32,120       15,840  
    Total current assets     563,463       331,410  
    Property, plant and equipment, net of accumulated depreciation of $112,906 and $103,515, respectively     94,208       92,811  
    Goodwill     266,941       247,191  
    Intangible assets, net     355,256       318,819  
    Other assets     70,327       53,095  
    Total assets   $ 1,350,195     $ 1,043,326  
             
    LIABILITIES AND EQUITY        
    Current liabilities:        
    Accounts payable   $ 52,842     $ 48,387  
    Accrued and other current liabilities     81,873       67,449  
    Total current liabilities     134,715       115,836  
    Long-term debt     —       166,000  
    Retirement benefits payable     1,082       1,114  
    Other long-term liabilities     150,181       125,298  
    Total liabilities     285,978       408,248  
    Commitments and contingencies (See Note 13)        
    Redeemable noncontrolling interest     20,194       19,355  
    Equity:        
    Common shares, $0.01 par value     177       164  
    Additional paid-in capital     497,906       137,253  
    Treasury shares, at cost (1,005 and 952 shares, respectively)     (115,367 )     (95,643 )
    Retained earnings     674,036       583,075  
    Accumulated other comprehensive loss     (12,729 )     (9,126 )
    Total equity     1,044,023       615,723  
    Total liabilities, redeemable noncontrolling interest and equity   $ 1,350,195     $ 1,043,326  
    CSW INDUSTRIALS, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (unaudited)
     
        Nine Months Ended
    December 31,
    (Amounts in thousands)     2024       2023  
    Cash flows from operating activities:        
    Net income   $ 102,429     $ 70,544  
    Adjustments to reconcile net income to net cash provided by operating activities:        
    Depreciation     10,714       10,077  
    Amortization of intangible and other assets     20,792       17,584  
    Provision for inventory reserves     1,779       2,541  
    Provision for doubtful accounts     946       544  
    Share-based compensation     10,237       8,555  
    Net gain on disposals of property, plant and equipment     (89 )     (1,336 )
    Net pension benefit     49       50  
    Impairment of assets     —       90  
    Net deferred taxes     1,244       2,732  
    Changes in operating assets and liabilities:        
    Accounts receivable     32,316       17,846  
    Inventories     (42,536 )     7,796  
    Prepaid expenses and other current assets     (17,174 )     (6,720 )
    Other assets     1,565       1,066  
    Accounts payable and other current liabilities     21,372       9,601  
    Retirement benefits payable and other liabilities     (2,575 )     944  
    Net cash provided by operating activities     141,069       141,914  
    Cash flows from investing activities:        
    Capital expenditures     (11,735 )     (11,668 )
    Proceeds from sale of assets held for investment     —       1,665  
    Proceeds from sale of assets     153       157  
    Cash paid for investments     (2,500 )     —  
    Cash paid for acquisitions     (84,491 )     (5,284 )
    Net cash used in investing activities     (98,573 )     (15,130 )
    Cash flows from financing activities:        
    Borrowings on line of credit     32,723       72,308  
    Repayments of line of credit and term loan     (198,723 )     (172,308 )
    Purchase of treasury shares     (20,935 )     (10,640 )
    Proceeds from equity issuance     347,407       —  
    Dividends     (10,554 )     (8,855 )
    Net cash provided by (used in) financing activities     149,918       (119,495 )
    Effect of exchange rate changes on cash and equivalents     (816 )     (756 )
    Net change in cash and cash equivalents     191,598       6,533  
    Cash and cash equivalents, beginning of period     22,156       18,455  
    Cash and cash equivalents, end of period   $ 213,754     $ 24,988  


    Reconciliation of Non-GAAP Measures

    We use adjusted earnings per share attributable to CSWI, adjusted net income attributable to CSWI, adjusted operating income, adjusted effective tax rate, and adjusted EBITDA, together with financial measures prepared in accordance with GAAP, such as revenue, cost of revenue, operating expense, operating income and net income attributable to CSWI, to assess our historical and prospective operating performance and to enhance our understanding of our core operating performance. Free cash flow is a non-GAAP financial measure and is defined as cash flow from operations less capital expenditures. We also believe these measures are useful for investors to assess the operating performance of our business without the effect of non-recurring items. In the following tables, there could be immaterial differences in amounts presented due to rounding.

     
    CSW INDUSTRIALS, INC.
    RECONCILIATION OF NET INCOME ATTRIBUTABLE TO CSWI TO ADJUSTED NET INCOME ATTRIBUTABLE TO CSWI
    (Unaudited)
                     
    (Amounts in thousands)   Three months ended
    December 31,    		   Nine Months ended
    December 31,
          2024       2023       2024       2023  
    GAAP net income attributable to CSWI   $ 26,948     $ 9,222     $ 101,591     $ 69,889  
                     
    Adjusting items, net of tax:                
    Reversal of tax indemnification receivable     858       8,519       858       8,519  
    Acquisition broker fee     642       —       642       —  
    Uncertain tax position accrual release     (3,549 )     (1,019 )     (3,549 )     (1,019 )
    Adjusted net income attributable to CSWI   $ 24,899     $ 16,722     $ 99,542     $ 77,389  
                     
    Net Income Attributable to CSW Industrials, Inc. per diluted common share   $ 1.60     $ 0.59     $ 6.30     $ 4.49  
                     
    Adjusting Items, per dilutive common share:                
    Reversal of tax indemnification receivable     0.05       0.55       0.05       0.55  
    Acquisition broker fee     0.04       —       0.04       —  
    Uncertain tax position accrual release     (0.21 )     (0.07 )     (0.22 )     (0.07 )
    Adjusted net income attributable to CSW Industrials, Inc. per dilutive common share   $ 1.48     $ 1.07     $ 6.17     $ 4.97  
    CSW INDUSTRIALS, INC.
    RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE
    (Unaudited)
                     
    (Amounts in thousands)   Three months ended
    December 31,    		   Nine Months ended
    December 31,
          2024       2023       2024       2023  
    GAAP income before tax   $ 31,273     $ 16,388     $ 133,604     $ 98,512  
    Adjusting items:                
    Reversal of tax indemnification receivable     858       8,519       858       8,519  
    Acquisition broker fee     860       —       860       —  
    Adjusted income before tax   $ 32,991     $ 24,907     $ 135,322     $ 107,031  
                     
    GAAP provision for income tax   $ 4,315     $ 7,083     $ 31,174     $ 27,968  
    Adjusting items:                
    Uncertain tax position accrual release     3,549       1,019       3,549       1,019  
    Tax impact of acquisition broker fee     218       —       218       —  
    Adjusted provision for income tax   $ 8,082     $ 8,102     $ 34,941     $ 28,987  
                     
    GAAP effective tax rate     13.8 %     43.2 %     23.3 %     28.4 %
    Adjusted effective tax rate     24.5 %     32.5 %     25.8 %     27.1 %
    CSW INDUSTRIALS, INC.
    Reconciliation of Net Income Attributable to CSWI to Adjusted EBITDA
    (unaudited)
                     
    (Amounts in thousands)   Three months ended
    December 31,    		   Nine Months ended
    December 31,
          2024       2023       2024       2023  
    Net Income attributable to CSWI   $ 26,948     $ 9,222     $ 101,590     $ 69,889  
    Plus: Income attributable to redeemable noncontrolling interest     10       83       838       655  
    Net Income   $ 26,958     $ 9,305     $ 102,429     $ 70,544  
                     
    Adjusting Items:                
    Interest expense (income), net     (1,976 )     2,764       1,884       10,080  
    Income tax expense     4,315       7,083       31,174       27,968  
    Depreciation & amortization     11,012       9,134       30,896       27,094  
    EBITDA   $ 40,309     $ 28,286     $ 166,384     $ 135,686  
                     
    EBITDA Adjustments:                
    Reversal of tax indemnification receivable     858       8,519       858       8,519  
    Acquisition broker fee     860       —       860       —  
    Adjusted EBITDA   $ 42,027     $ 36,805     $ 168,102     $ 144,205  
    Adjusted EBITDA % Revenue     21.7 %     21.0 %     26.0 %     24.8 %
    CSW INDUSTRIALS, INC.
    Reconciliation of Segment Operating Income to Segment Adjusted EBITDA
    (unaudited)
                 
    (Amounts in thousands)   Three months ended December 31, 2024
        Contractor
    Solutions    		 Specialized
    Reliability
    Solutions    		 Engineered
    Building
    Solutions    		 Corporate
    and Other    		 Consolidated
    Revenue, net   $ 132,150   $ 34,566   $ 28,821   $ (1,889 ) $ 193,649  
                 
    Operating Income   $ 26,756   $ 5,238   $ 3,645   $ (6,045 ) $ 29,595  
    Adjusting Items:            
    Acquisition broker fee     860     —     —     —     860  
    Adjusted Operating Income   $ 27,616   $ 5,238   $ 3,645   $ (6,045 ) $ 30,455  
    % Revenue     20.9 %   15.2 %   12.6 %     15.7 %
                 
    Adjusting Items:            
    Other income (expense), net     (188 )   (17 )   38     (131 )   (298 )
    Depreciation & amortization     9,179     1,366     420     48     11,012  
    Reversal of tax indemnification receivable     858     —     —     —     858  
    Adjusted EBITDA   $ 37,466   $ 6,587   $ 4,102   $ (6,128 ) $ 42,027  
    % Revenue     28.4 %   19.1 %   14.2 %     21.7 %
                 
    (Amounts in thousands)   Three months ended December 31, 2023
        Contractor
    Solutions    		 Specialized
    Reliability
    Solutions    		 Engineered
    Building
    Solutions    		 Corporate
    and Other    		 Consolidated
    Revenue, net   $ 115,412   $ 33,711   $ 27,861   $ (2,017 ) $ 174,967  
                 
    Operating Income   $ 25,751   $ 3,740   $ 3,537   $ (5,447 ) $ 27,581  
    % Revenue     22.3 %   11.1 %   12.7 %     15.8 %
                 
    Adjusting Items:            
    Other income (expense), net     (8,433 )   (9 )   (8 )   21     (8,428 )
    Depreciation & amortization     7,178     1,477     437     42     9,134  
    Reversal of tax indemnification receivable     8,519     —     —     —     8,519  
    Adjusted EBITDA   $ 33,015   $ 5,208   $ 3,966   $ (5,383 ) $ 36,805  
    % Revenue     28.6 %   15.4 %   14.2 %     21.0 %
    CSW INDUSTRIALS, INC.
    Reconciliation of Segment Operating Income to Segment Adjusted EBITDA
    (unaudited)
                 
    (Amounts in thousands)   Nine Months ended December 31, 2024
        Contractor
    Solutions    		 Specialized
    Reliability
    Solutions    		 Engineered
    Building
    Solutions    		 Corporate
    and Other    		 Consolidated
    Revenue, net   $ 451,403   $ 109,893   $ 92,387   $ (5,930 ) $ 647,754  
                 
    Operating Income   $ 122,894   $ 18,208   $ 15,451   $ (20,348 ) $ 136,204  
    Adjusting Items:            
    Acquisition broker fee     860     —     —     —     860  
    Adjusted Operating Income   $ 123,754   $ 18,208   $ 15,451   $ (20,348 ) $ 137,064  
    % Revenue     27.4 %   16.6 %   16.7 %     21.2 %
                 
    Adjusting Items:            
    Other income (expense), net     (335 )   (200 )   18     (200 )   (716 )
    Depreciation & amortization     25,164     4,198     1,399     135     30,896  
    Reversal of tax indemnification receivable     858     —     —     —     858  
    Adjusted EBITDA   $ 149,442   $ 22,206   $ 16,868   $ (20,413 ) $ 168,102  
    % Revenue     33.1 %   20.2 %   18.3 %     26.0 %
                 
    (Amounts in thousands)   Nine Months ended December 31, 2023
        Contractor
    Solutions    		 Specialized
    Reliability
    Solutions    		 Engineered
    Building
    Solutions    		 Corporate
    and Other    		 Consolidated
    Revenue, net   $ 395,268   $ 108,037   $ 84,660   $ (5,984 ) $ 581,980  
                 
    Operating Income   $ 104,443   $ 15,534   $ 13,029   $ (18,227 ) $ 114,780  
    % Revenue     26.4 %   14.4 %   15.4 %     19.7 %
                 
    Adjusting Items:            
    Other income (expense), net     (7,686 )   (100 )   2     1,595     (6,188 )
    Depreciation & amortization     21,118     4,512     1,332     132     27,094  
    Reversal of tax indemnification receivable     8,519     —     —     —     8,519  
    Adjusted EBITDA   $ 126,394   $ 19,947   $ 14,363   $ (16,500 ) $ 144,205  
    % Revenue     32.0 %   18.5 %   17.0 %     24.8 %
    CSW INDUSTRIALS, INC.
    Reconciliation of Operating Cash Flow to Free Cash Flow
    (Unaudited)
                     
    (Amounts in thousands)   Three Months Ended
    December 31,    		   Nine Months ended
    December 31,
          2024       2023       2024       2023  
    Net cash provided by operating activities   $ 11,600     $ 46,978     $ 141,069     $ 141,914  
    Less: Capital expenditures     (3,148 )     (3,883 )     (11,735 )     (11,668 )
    Free cash flow   $ 8,452     $ 43,095     $ 129,334     $ 130,246  
    Free cash flow % Adjusted EBITDA     20.1 %     117.1 %     76.9 %     90.3 %

    The MIL Network –

  • MIL-OSI: Real Matters Reports First Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Jan. 30, 2025 (GLOBE NEWSWIRE) — Real Matters Inc. (TSX: REAL) (“Real Matters” or the “Company”), a leading network management services platform for the mortgage and insurance industries, today announced its financial results for the first quarter ended December 31, 2024.

    “We reported consolidated revenue of $41.0 million in the first quarter, up 16% year-over-year, and consolidated Net Revenue(A) increased 12% led by growth in all three segments. Refinance origination volumes in our U.S. Title segment were up 46% year-over-year and Net Revenue(A) margins increased by 610 basis points,” said Real Matters Chief Executive Officer Brian Lang.

    “There are now 8.8 million outstanding mortgages with interest rates above 6%, which represents a sizeable pool of potential refinance candidates. We are encouraged by the market opportunity we saw as a result of a short-term rally in rates in September – adding to our conviction of the market potential for refinance going forward. As a result, we are seeing broad pipeline movement; we are confident that we will have new, active franchise title clients in the coming months,” added Lang.

    “We have a strong balance sheet, and we will continue to prudently manage our cost base to align with market conditions, ensuring we focus on growth as headwinds turn to tailwinds for our business. We are at a key inflection point for our title business,” concluded Lang.

    Q1 2025 Highlights

    • Consolidated revenue of $41.0 million –16% year-over-year increase
    • Consolidated Net Revenue(A) of $10.9 million – 12% year-over-year increase
    • Adjusted EBITDA(A) loss of $1.7 million compared with loss of $1.1 million in Q1’24
    • Net income of $2.3 million up from net loss of $3.6 million in Q1’24
    • Launched five new clients
    • Significant operating leverage in Canadian segment – converted 90% of the incremental Net Revenue(A) to Adjusted EBITDA(A) in Q1’25
    • Cash and cash equivalents of $49.0 million and no outstanding debt as at December 31, 2024

    Financial and Operational Summary

        Quarter ended      
      2025 2024 2024 2024 2024     % Change1
        Q1     Q4     Q3     Q2     Q1     Quarter
    over
    Quarter    		 Year
    over
    Year
    Consolidated                          
    Revenue $ 41.0   $ 45.6   $ 49.5   $ 42.2   $ 35.4     -10 % 16 %
    Net Revenue(A) $ 10.9   $ 12.0   $ 13.1   $ 11.5   $ 9.7     -10 % 12 %
    Adjusted EBITDA(A) $ (1.7 ) $ 0.6   $ 1.7   $ 0.7   $ (1.1 )   -395 % -54 %
    Net income (loss) $ 2.3   $ (0.2 ) $ 1.7   $ 2.1   $ (3.6 )   1,562 % 163 %
    Net income (loss) per diluted share $ 0.03   $ 0.00   $ 0.02   $ 0.03   $ (0.05 )   0 % 160 %
    Adjusted Net (loss) income(A) $ (0.3 ) $ 0.9   $ 1.7   $ 1.3   $ (1.2 )   -129 % 75 %
    Adjusted Net (loss) income(A) per diluted share $ 0.00   $ 0.01   $ 0.02   $ 0.02   $ (0.02 )   -100 % 100 %
                               
    U.S. Appraisal segment                          
    Revenue $ 29.4   $ 33.8   $ 37.5   $ 32.6   $ 26.8     -13 % 9 %
    Net Revenue(A) $ 7.8   $ 9.0   $ 10.3   $ 9.2   $ 7.5     -14 % 4 %
    Net Revenue(A) margin   26.5 %   26.7 %   27.6 %   28.3 %   27.9 %      
    Adjusted EBITDA(A) $ 2.4   $ 4.1   $ 5.5   $ 4.4   $ 2.7     -41 % -10 %
    Adjusted EBITDA(A) margin   30.9 %   45.2 %   53.2 %   47.9 %   35.8 %      
                               
    U.S. Title segment                          
    Revenue $ 2.5   $ 2.4   $ 2.1   $ 2.0   $ 2.0     4 % 25 %
    Net Revenue(A) $ 1.4     1.2   $ 0.9     0.9   $ 1.0     12 % 41 %
    Net Revenue(A) margin   53.4 %   49.8 %   43.6 %   44.0 %   47.3 %      
    Adjusted EBITDA(A) $ (1.8 ) $ (1.6 ) $ (1.9 ) $ (1.7 ) $ (1.6 )   -13 % -11 %
    Adjusted EBITDA(A) margin   -132.3 %   -131.4 %   -209.8 %   -184.8 %   -167.9 %      
                               
    Canadian segment                          
    Revenue $ 9.1   $ 9.4   $ 9.9   $ 7.6   $ 6.6     -3 % 38 %
    Net Revenue(A) $ 1.7   $ 1.8   $ 1.9   $ 1.4   $ 1.2     -3 % 39 %
    Net Revenue(A) margin   18.9 %   18.9 %   19.0 %   18.9 %   18.8 %      
    Adjusted EBITDA(A) $ 1.1   $ 1.2   $ 1.3   $ 0.9   $ 0.7     -5 % 62 %
    Adjusted EBITDA(A) margin   66.1 %   67.7 %   69.3 %   62.3 %   56.8 %      
                               
    Corporate segment                          
    Adjusted EBITDA(A) $ (3.4 ) $ (3.1 ) $ (3.2 ) $ (2.9 ) $ (2.9 )   -8 % -20 %
    1. Percentage change is calculated based on figures disclosed in our MD&A which are rounded to the nearest thousands of dollars.

    Conference Call and Webcast
    A conference call to review the results will take place at 10:00 a.m. (ET) on Thursday, January 30, 2025, hosted by Chief Executive Officer Brian Lang and Chief Financial Officer Rodrigo Pinto. An accompanying slide presentation will be posted to the Investor section of our website shortly before the call.

    To access the call:

    • Participant Local (Toronto): (289) 819-1520
    • Participant Toll Free Dial-In Number: 1-800-549-8228
    • Conference ID: 15714

    To listen to the live webcast of the call:

    The webcast will be archived and a transcript of the call will be available in the Investor section of our website following the call.

    (A)   Non-GAAP Measures
    The non-GAAP measures used in this news release, including Net Revenue, Adjusted EBITDA and Adjusted Net Income do not have a standardized meaning prescribed by IFRS® Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other issuers. These non-GAAP measures are more fully defined and discussed in the Company’s MD&A for the three months ended December 31, 2024 under the heading “Non-GAAP measures”, which is incorporated by reference in this Press Release and available on SEDAR+ at www.sedarplus.ca.

    Real Matters financial results for the three months ended December 31, 2024 are included in the unaudited interim condensed consolidated financial statements and the accompanying MD&A, each of which are available on SEDAR+ at www.sedarplus.ca. In addition, supplemental information is available on our website at www.realmatters.com.

    Net Revenue represents the difference between revenues and transaction costs. Net Revenue margin is calculated as Net Revenue divided by Revenues. The reconciling items between net income or loss and Net Revenue were as follows:

                Quarter ended
        Q1 2025     Q4 2024     Q3 2024     Q2 2024     Q1 2024
                         
    Net income (loss) $ 2.3   $ (0.2 ) $ 1.7   $ 2.1   $ (3.6)
    Operating expenses   12.7     12.6     11.8     11.2     11.6
    Amortization   0.7     0.8     0.8     0.8     0.8
    Restructuring expenses   0.4     –     –     –     –
    Interest expense   0.1     0.1     0.1     0.1     0.1
    Interest income   (0.5 )   (0.5 )   (0.5 )   (0.4 )   (0.4)
    Net foreign exchange (gain) loss   (6.1 )   1.3     (0.9 )   (2.2 )   2.0
    Loss (gain) on fair value of derivatives   1.7     (1.9 )   (0.1 )   0.1     (0.2)
    Income tax (recovery) expense   (0.4 )   (0.2 )   0.2     (0.2 )   (0.6)
    Net Revenue $ 10.9   $ 12.0   $ 13.1   $ 11.5   $ 9.7

    Adjusted EBITDA represents net income or loss before stock-based compensation expense, amortization, restructuring expenses, interest expense, interest income, net foreign exchange gain or loss, gain or loss on fair value of derivatives and income tax expense or recovery. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Net Revenue. The reconciling items between net income or loss and Adjusted EBITDA were as follows:

                Quarter ended
        Q1 2025     Q4 2024     Q3 2024     Q2 2024     Q1 2024
                         
    Net income (loss) $ 2.3   $ (0.2 ) $ 1.7   $ 2.1   $ (3.6)
    Stock-based compensation expense   0.1     1.2     0.4     0.4     0.8
    Amortization   0.7     0.8     0.8     0.8     0.8
    Restructuring expenses   0.4     –     –     –     –
    Interest expense   0.1     0.1     0.1     0.1     0.1
    Interest income   (0.5 )   (0.5 )   (0.5 )   (0.4 )   (0.4)
    Net foreign exchange (gain) loss   (6.1 )   1.3     (0.9 )   (2.2 )   2.0
    Loss (gain) on fair value of derivatives   1.7     (1.9 )   (0.1 )   0.1     (0.2)
    Income tax (recovery) expense   (0.4 )   (0.2 )   0.2     (0.2 )   (0.6)
    Adjusted EBITDA $ (1.7 ) $ 0.6   $ 1.7   $ 0.7   $ (1.1)

    The reconciling items between net income or loss and Adjusted Net Income or Loss were as follows:

                Quarter ended
        Q1 2025     Q4 2024     Q3 2024     Q2 2024     Q1 2024
                         
    Net income (loss) $ 2.3   $ (0.2 ) $ 1.7   $ 2.1   $ (3.6)
    Stock-based compensation expense   0.1     1.2     0.4     0.4     0.8
    Amortization of intangibles   0.4     0.5     0.4     0.4     0.4
    Restructuring expenses   0.4     –     –     –     –
    Net foreign exchange (gain) loss   (6.1 )   1.3     (0.9 )   (2.2 )   2.0
    Loss (gain) on fair value of derivatives   1.7     (1.9 )   (0.1 )   0.1     (0.2)
    Related tax effects   0.9     –     0.2     0.5     (0.6)
    Adjusted Net (Loss) Income $ (0.3 ) $ 0.9   $ 1.7   $ 1.3   $ (1.2)

    Forward-Looking Information
    This Press Release contains “forward-looking information” within the meaning of applicable Canadian securities laws. Words such as “could”, “forecast”, “target”, “may”, “will”, “would”, “expect”, “anticipate”, “estimate”, “intend”, “plan”, “seek”, “believe”, “likely” and “predict” and variations of such words and similar expressions are intended to identify such forward-looking information, although not all forward-looking information contains these identifying words.

    The forward-looking information in this Press Release includes statements which reflect the current expectations of management with respect to our business and the industry in which we operate and is based on management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management believes appropriate and reasonable in the circumstances. The forward-looking information reflects management’s beliefs based on information currently available to management, including information obtained from third party sources, and should not be read as a guarantee of the occurrence or timing of any future events, performance or results.

    The forward-looking information in this Press Release is subject to risks, uncertainties and other factors that are difficult to predict and that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information. A comprehensive discussion of the factors which could cause results or events to differ from current expectations can be found in the “Risk Factors” section of our Annual Information Form for the year ended September 30, 2024, which is available on SEDAR+ at www.sedarplus.ca.

    Readers are cautioned not to place undue reliance on the forward-looking information, which reflect our expectations only as of the date of this Press Release. Except as required by law, we do not undertake to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

    About Real Matters
    Real Matters is a leading network management services provider for the mortgage lending and insurance industries. Real Matters’ platform combines its proprietary technology and network management capabilities with tens of thousands of independent qualified field professionals to create an efficient marketplace for the provision of mortgage lending and insurance industry services. Our clients include top 100 mortgage lenders in the U.S. and some of the largest banks and insurance companies in Canada. We are a leading independent provider of residential real estate appraisals to the mortgage market and a leading independent provider of title services in the U.S. Headquartered in Markham (ON), Real Matters has principal offices in Buffalo (NY) and Middletown (RI). Real Matters is listed on the Toronto Stock Exchange under the symbol REAL. For more information, visit www.realmatters.com.

    For more information:
    Lyne Beauregard
    Vice President, Investor Relations and Corporate Communications
    Real Matters
    lbeauregard@realmatters.com
    416.994.5930

    The MIL Network –

  • MIL-OSI: Bread Financial Reports Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    COLUMBUS, Ohio, Jan. 30, 2025 (GLOBE NEWSWIRE) — Bread Financial Holdings, Inc.® (NYSE: BFH), a tech-forward financial services company that provides simple, flexible payment, lending and saving solutions, today announced its fourth quarter and full year 2024 financial results. All earnings-related materials are now available at the company’s investor relations website, here.

    Bread Financial President and Chief Executive Officer Ralph Andretta and Chief Financial Officer Perry Beberman will host a conference call at 8:30 a.m. ET today to discuss results. A link to the conference call will be available at the company’s investor relations website, and a replay will also be available there following the call.

    About Bread Financial® 
    Bread Financial® (NYSE: BFH) is a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions to millions of U.S. consumers. Our payment solutions, including Bread Financial general purpose credit cards and savings products, empower our customers and their passions for a better life. Additionally, we deliver growth for some of the most recognized brands in travel & entertainment, health & beauty, jewelry and specialty apparel through our private label and co-brand credit cards and pay-over-time products providing choice and value to our shared customers.

    To learn more about Bread Financial, our global associates and our sustainability commitments, visit breadfinancial.com or follow us on Instagram and LinkedIn.

    Contacts
    Brian Vereb — Investor Relations
    Brian.Vereb@breadfinancial.com

    Susan Haugen — Investor Relations
    Susan.Haugen@breadfinancial.com

    Rachel Stultz — Media
    Rachel.Stultz@breadfinancial.com

    The MIL Network –

  • MIL-OSI United Kingdom: UK Trade Minister visited South Africa and Botswana to strengthen trade ties

    Source: United Kingdom – Executive Government & Departments

    This was the first visit to Africa by UK Minister for Trade Policy Douglas Alexander, which forms part of the UK Government’s wider resetting of partnerships with Africa, which the Foreign Secretary set out in November during his visits to Nigeria and South Africa.

    UK Minister for Trade Policy and Economic Security, Douglas Alexander, travelled to South Africa and Botswana to strengthen trade links and create opportunities for both African and UK businesses.

    He is the first Minister from the UK’s Department for Business and Trade to travel to the continent since the UK election, which took place last summer.

    The UK is seeking to deepen trade and investment across the continent and drive mutually beneficial growth in both the UK and Africa, including by making progress on removing barriers to trade to help businesses export more easily and providing UK support to trade for development programmes across the continent.

    During his trip, the Trade Policy Minister co-chaired the first Southern African Custom Union and Mozambique (SACUM) – UK Economic Partnership Agreement (EPA) Joint Council. The Economic Partnership Agreement underpins all goods trade with the UK and SACUM members. The Joint Council discussed where there is potential to strengthen our trade and investment partnerships and support economic growth across all member countries.

    He met with South Africa’s Minister for Trade Industry and Competition, Parks Tau, South Africa’s Agriculture Minister, John Steenhuisen, as well as Botswana’s Vice-President and Trade Minister, Ndaba Gaolathe, to discuss areas for future growth in key sectors including infrastructure, energy, transport and logistics, agriculture, minerals, and the digital economy. He also met with UK and South African companies and took part in a CEO roundtable, where he was seeking views from the private sector to help inform the Government’s cross-continent reset and wider trade strategy.

    Trade Policy Minister, Douglas Alexander said:

    The Government is taking a fresh approach to Africa, one which prioritises genuine partnerships, mutual benefit, and sustainable development. My visit is an important step in building new, long-lasting relationships in South Africa and Botswana.

    South Africa is our largest trading partner in Africa, with an exciting period ahead as the country assumes the G20 Presidency. Both of our Governments are laser focused on economic growth – this shared ambition is a powerful motivator for greater bilateral trade.

    Mutual economic growth is also at the forefront of the UK’s relationship with Botswana. There is a huge opportunity for us to collaborate on sectors important to our economies including renewable energy and I look forward to continuing to strengthen our ties.

    Minister Alexander emphasised the UK’s support for South Africa’s Presidency of the G20 this year and reaffirmed the UK Government’s commitment to building mutually beneficial partnerships with African countries. This follows on from the UK Foreign Secretary’s recent visit to the continent in November 2024, during which he agreed to develop a UK-South Africa Growth Plan.

    Further information

    • this visit forms part of the UK Government’s wider resetting of partnerships with Africa, which the Foreign Secretary set out in November during his visits to Nigeria and South Africa based on three priorities: economic growth and transformation, climate and nature, and governance and security
    • background for the UK’s Minister for Trade Policy Douglas Alexander MP can be found here
    • information on the SACUM-UK Economic Partnership Agreement can be found here
    • information on the UK Foreign Secretary’s visit to Nigeria and South Africa, including agreement on developing a new UK-South Africa Growth Plan, can be found here

    Updates to this page

    Published 30 January 2025

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: SIA giving confiscated cash to charities to aid public safety

    Source: United Kingdom – Executive Government & Departments

    Charities and community groups can now apply for grants to support projects aimed at improving public safety and supporting the private security.

    The money has been confiscated by the SIA from criminals through proceeds of crime confiscation orders and is now available to charities to bid for. 

    The ‘grants for good causes’ could help fund a range of projects run by charities. Last year, the SIA gave over £72,000 to support 7 initiatives across several charities and community groups including Employment 4 All, Diverse FM, and Glasgow Street Aid among others. 

    The SIA helped fund projects including human trafficking awareness workshops, employment and training opportunities for disadvantaged groups and training for volunteers in emergency first response care.  

    Paul Cartlidge, Chair of the grants for good causes panel, said: 

    I’m delighted to be opening this year’s grants for applications. Public safety is a team effort, and our commitment to protecting people goes beyond our day-to-day duties. Grassroots projects run by charities and community groups can have a profound impact on public safety, the private security industry and the people using their services.  

    As the regulator of the private security industry, we take robust enforcement action to prosecute those who put the public at risk through their offending. Through the grants for good causes, we are putting the ill-gotten gains of criminals to good use in a way that will benefit society and make the world a little bit safer.

    Applications are open now, and more information about how to apply is on the SIA grant for good causes page on GOV.UK. Registered charities and community interest companies in the UK have until Friday 21 February at 11:59 pm to apply for funding. Eligible organisations must show how a grant will benefit the UK private security industry and/or support public safety. 

    Notes to editors 

    The full amount of funding available will be confirmed in due course. 

    About the Proceeds of Crime Act 

    The Proceeds of Crime Act 2002 (POCA) enables the SIA to investigate the financial activity of people who have committed a criminal offence and confiscate the proceeds of crime through a court-issued confiscation order. The SIA has been a designated body under POCA since 2015. 

    The SIA receives a portion of the money it recovers through confiscation orders under the Asset Recovery Incentivisation Scheme (ARIS). This money can only be used to fund its financial investigation capability or distributed to good causes. 

    About the SIA grant for good causes fund 

    Organisations can apply for a grant if they are a registered charity or community interest company (CIC) and can clearly show how they will benefit the UK private security industry and/or support public safety. 

    All the information needed to make an application is available on the SIA grants for good causes page on GOV.UK. Applications close at 11:59 pm on Friday 21 February. 

    There is no guarantee that the organisations which apply will get funding. The SIA will inform successful applicants about its decision by Friday 7 March. 

    Further information 

    The Security Industry Authority is the regulator of the UK’s private security industry. Our purpose is to protect the public through effective regulation of the private security industry and working with partners to raise standards across the sector. We are responsible for licensing people who do certain jobs in the private security industry and for approving private security companies who wish to be part of the voluntary ‘Approved Contractor Scheme’.  

    The SIA is an executive non-departmental public body, sponsored by the Home Office. For more information, visit www.gov.uk/sia. 

    For media enquiries only, please contact media.enquiries@sia.gov.uk.

    Updates to this page

    Published 30 January 2025

    MIL OSI United Kingdom –