Category: Business

  • MIL-OSI: EXL Reports 2024 Third Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    2024 Third Quarter Revenue of $472.1 Million, up 14.9% year-over-year

    Q3 Diluted EPS (GAAP) of $0.33, up 24.2% from $0.26 in Q3 of 2023

    Q3 Adjusted Diluted EPS (Non-GAAP) (1)of $0.44, up 16.3% from $0.37 in Q3 of 2023

    NEW YORK, Oct. 29, 2024 (GLOBE NEWSWIRE) — ExlService Holdings, Inc. (Nasdaq: EXLS), a leading data analytics and digital operations and solutions company, today announced its financial results for the quarter ended September 30, 2024.

    Rohit Kapoor, chairman and chief executive officer, said, “We are pleased with our third quarter results. We delivered revenue and adjusted diluted EPS growth of 15% and 16% respectively. The ongoing execution of our data and AI-led strategy enabled us to accelerate our growth, achieving double-digit growth across both our data analytics and digital operations and solutions businesses during the quarter. As we continue to expand our data modernization and AI solution set with innovations such as industry-specific large language models (LLMs), we are well positioned to continue our momentum into the fourth quarter and beyond.”

    Maurizio Nicolelli, chief financial officer, said, “Based on our strong year-to-date performance and current visibility for the remainder of the year, we are raising the full-year guidance range for revenue and EPS. We now expect revenue to be in the range of $1.825 billion to $1.835 billion, up from our prior guidance of $1.805 billion to $1.830 billion. This represents 12% to 13% year-over-year growth on a reported currency basis and approximately 12% on a constant currency basis. We now expect our adjusted diluted earnings per share for 2024 to be in the range of $1.61 to $1.63, up from our prior guidance of $1.59 to $1.62, representing growth of 13% to 14% over the prior year.”

    __________________________________________________________

    (1) Reconciliations of adjusted (non-GAAP) financial measures to the most directly comparable GAAP measures, where applicable, are included at the end of this release under “Reconciliation of Adjusted Financial Measures to GAAP Measures.” These non-GAAP measures, including adjusted diluted EPS and constant currency measures, are not measures of financial performance prepared in accordance with GAAP.

    Financial Highlights: Third Quarter 2024

    • Revenue for the quarter ended September 30, 2024 increased to $472.1 million compared to $411.0 million for the third quarter of 2023, an increase of 14.9% on a reported basis and 14.5% on a constant currency basis. Revenue increased by 5.3% sequentially on a reported basis and 4.9% on a constant currency basis, from the second quarter of 2024.
        Revenue   Gross Margin
        Three months ended
      Three months ended
    Reportable Segments   September 30,
    2024

      September 30,
    2023

      June 30,
    2024

      September 30,
    2024

      September 30,
    2023

      June 30,
    2024

        (dollars in millions)        
    Insurance   $ 157.6     $ 136.4     $ 149.3       36.3 %     36.6 %     36.0 %
    Healthcare     30.5       26.2       28.1       33.6 %     36.8 %     33.1 %
    Emerging Business     80.0       65.3       77.2       40.2 %     42.4 %     41.6 %
    Analytics     204.0       183.1       193.8       38.5 %     37.0 %     36.7 %
    Revenues, net   $ 472.1     $ 411.0     $ 448.4       37.8 %     37.7 %     37.1 %
     
    • Operating income margin for each of the quarter ended September 30, 2024 and the third quarter of 2023, was 14.7%, and 13.7% for the second quarter of 2024. Adjusted operating income margin for the quarter ended September 30, 2024, was 19.9%, compared to 20.0% for the third quarter of 2023 and 19.8% for the second quarter of 2024.
    • Diluted earnings per share for the quarter ended September 30, 2024, was $0.33, compared to $0.26 for the third quarter of 2023 and $0.28 for the second quarter of 2024. Adjusted diluted earnings per share for the quarter ended September 30, 2024, was $0.44, compared to $0.37 for the third quarter of 2023 and $0.40 for the second quarter of 2024.

    Business Highlights: Third Quarter 2024

    • Won 13 new clients in the third quarter of 2024, with 8 clients in digital operations and solutions business and 5 clients in analytics.
    • Launched the EXL Insurance LLM, developed using NVIDIA AI software. This LLM addresses the highly specialized needs of the insurance industry, leveraging EXL’s 25 years of experience in the industry and a proprietary data set with more than a decade of claims-related data.
    • Expanded partnership with Databricks to deploy new data management and generative AI solutions into the Databricks ecosystem, speeding the development of cutting-edge data management solutions for EXL clients.
    • Recognized as a Major Player in the IDC MarketScape: Worldwide Data Modernization Services 2024 Vendor Assessment based on our core value propositions, execution and innovation capabilities, go-to-market strategy, and market impact.
    • Named by Newsweek as one of America’s Most Reliable Companies 2025 based on parameters including: Likelihood of Recommendation, Ease of Doing Business, Value for Money, Consistency of Deliverables, and Reputation for Dependability.

    2024 Guidance
    Based on current visibility, and a U.S. dollar to Indian rupee exchange rate of 84.0, U.K. pound sterling to U.S. dollar exchange rate of 1.30, U.S. dollar to the Philippine peso exchange rate of 58.0 and all other currencies at current exchange rates, we are providing the following guidance for the full year 2024:

    • Revenue of $1.825 billion to $1.835 billion, representing an increase of 12% to 13% on a reported currency basis and approximately 12% on a constant currency basis from 2023.
    • Adjusted diluted earnings per share of $1.61 to $1.63, representing an increase of 13% to 14% from 2023.

    Conference Call

    ExlService Holdings, Inc. will host a conference call on Wednesday, Oct. 30, 2024, at 10:00 A.M. ET to discuss the company’s quarterly operating and financial results. The conference call will be available live via the internet by accessing the investor relations section of EXL’s website at ir.exlservice.com, where an accompanying investor-friendly spreadsheet of historical operating and financial data can also be accessed. Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software.

    Please note that there is a new system to access the live call-in order to ask questions. To join the live call, please register here. For those who cannot access the live broadcast, a replay will be available on the EXL website ir.exlservice.com for a period of approximately twelve months.

    About ExlService Holdings, Inc.

    EXL (Nasdaq: EXLS) is a leading data analytics and digital operations and solutions company. We partner with clients using a data and AI-led approach to reinvent business models, drive better business outcomes and unlock growth with speed. EXL harnesses the power of data, analytics, AI, and deep industry knowledge to transform operations for the world’s leading corporations in industries including insurance, healthcare, banking and financial services, media and retail, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have more than 57,000 employees spanning six continents. For more information, visit www.exlservice.com.

    Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL’s operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management’s experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include our ability to maintain and grow client demand, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, rising interest rates, rising inflation, recessionary economic trends, and ability to successfully integrate strategic acquisitions, are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by applicable law.

    EXLSERVICE HOLDINGS, INC.
    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
    (In thousands, except per share amount and share count)
     
      Three months ended September 30,   Nine months ended September 30,
        2024       2023       2024       2023  
    Revenues, net $ 472,073     $ 410,971     $ 1,356,946     $ 1,216,610  
    Cost of revenues(1)   293,806       256,002       849,336       760,691  
    Gross profit(1)   178,267       154,969       507,610       455,919  
    Operating expenses:              
    General and administrative expenses   57,495       52,213       167,195       144,564  
    Selling and marketing expenses   37,568       30,943       108,982       88,674  
    Depreciation and amortization expense   13,799       11,583       39,055       38,192  
    Total operating expenses   108,862       94,739       315,232       271,430  
    Income from operations   69,405       60,230       192,378       184,489  
    Foreign exchange gain, net   278       409       673       838  
    Interest expense   (5,526 )     (3,405 )     (14,145 )     (10,030 )
    Other income, net   4,374       778       11,876       6,594  
    Income before income tax expense and earnings from equity affiliates   68,531       58,012       190,782       181,891  
    Income tax expense   15,460       14,161       43,086       37,773  
    Income before earnings from equity affiliates   53,071       43,851       147,696       144,118  
    Gain/(loss) from equity-method investment   (34 )     25       (71 )     157  
    Net income $ 53,037     $ 43,876     $ 147,625     $ 144,275  
    Earnings per share:              
    Basic $ 0.33     $ 0.26     $ 0.90     $ 0.87  
    Diluted $ 0.33     $ 0.26     $ 0.90     $ 0.86  
    Weighted average number of shares used in computing earnings per share:              
    Basic   161,732,872       166,159,619       163,197,767       166,707,599  
    Diluted   163,187,733       167,688,374       164,620,081       168,591,612  

    (1) Exclusive of depreciation and amortization expense.

    EXLSERVICE HOLDINGS, INC.
    CONSOLIDATED BALANCE SHEETS (UNAUDITED)
    (In thousands, except per share amount and share count)
     
      As of
      September 30, 2024   December 31, 2023
           
    Assets      
    Current assets:      
    Cash and cash equivalents $ 150,102     $ 136,953  
    Short-term investments   175,648       153,881  
    Restricted cash   7,342       4,062  
    Accounts receivable, net   340,904       308,108  
    Other current assets   93,693       76,669  
    Total current assets   767,689       679,673  
    Property and equipment, net   107,395       100,373  
    Operating lease right-of-use assets   71,796       64,856  
    Restricted cash   5,820       4,386  
    Deferred tax assets, net   106,881       82,927  
    Goodwill   427,663       405,639  
    Other intangible assets, net   51,291       50,164  
    Long-term investments   14,184       4,430  
    Other assets   57,113       49,524  
    Total assets $ 1,609,832     $ 1,441,972  
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Accounts payable $ 4,082     $ 5,055  
    Current portion of long-term borrowings   4,891       65,000  
    Deferred revenue   12,472       12,318  
    Accrued employee costs   110,677       117,137  
    Accrued expenses and other current liabilities   105,159       114,113  
    Current portion of operating lease liabilities   16,904       12,780  
    Total current liabilities   254,185       326,403  
    Long-term borrowings, less current portion   339,828       135,000  
    Operating lease liabilities, less current portion   62,336       58,175  
    Deferred tax liabilities, net   3,245       1,495  
    Other non-current liabilities   42,675       31,462  
    Total liabilities   702,269       552,535  
    Commitments and contingencies      
    Stockholders’ equity:      
    Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued          
    Common stock, $0.001 par value; 400,000,000 shares authorized, 205,317,002 shares issued and 160,880,592 shares outstanding as of September 30, 2024 and 203,410,038 shares issued and 165,277,880 shares outstanding as of December 31, 2023   205       203  
    Additional paid-in capital   572,430       508,028  
    Retained earnings   1,231,288       1,083,663  
    Accumulated other comprehensive loss   (122,593 )     (127,040 )
    Total including shares held in treasury   1,681,330       1,464,854  
    Less: 44,436,410 shares as of September 30, 2024 and 38,132,158 shares as of December 31, 2023, held in treasury, at cost   (773,767 )     (575,417 )
    Total stockholders’ equity   907,563       889,437  
    Total liabilities and stockholders’ equity $ 1,609,832     $ 1,441,972  

    EXLSERVICE HOLDINGS, INC.

    Reconciliation of Adjusted Financial Measures to GAAP Measures

    In addition to its reported operating results in accordance with U.S. generally accepted accounting principles (GAAP), EXL has included in this release certain financial measures that are considered non-GAAP financial measures, including the following:

    1. Adjusted operating income and adjusted operating income margin;
    2. Adjusted EBITDA and adjusted EBITDA margin;
    3. Adjusted net income and adjusted diluted earnings per share; and
    4. Revenue growth on constant currency basis.

    These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles, should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. Accordingly, the financial results calculated in accordance with GAAP and reconciliations from those financial statements should be carefully evaluated. EXL believes that providing these non-GAAP financial measures may help investors better understand EXL’s underlying financial performance. Management also believes that these non-GAAP financial measures, when read in conjunction with EXL’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s results and comparisons of the Company’s results with the results of other companies. Additionally, management considers some of these non-GAAP financial measures to determine variable compensation of its employees. The Company believes that it is unreasonably difficult to provide its earnings per share financial guidance in accordance with GAAP, or a qualitative reconciliation thereof, for a number of reasons, including, without limitation, the Company’s inability to predict its future stock-based compensation expense under ASC Topic 718, the amortization of intangibles associated with future acquisitions and the currency fluctuations and associated tax effects. As such, the Company presents guidance with respect to adjusted diluted earnings per share. The Company also incurs significant non-cash charges for depreciation that may not be indicative of the Company’s ability to generate cash flow.

    EXL non-GAAP financial measures exclude, where applicable, stock-based compensation expense, amortization of acquisition-related intangible assets, restructuring costs, litigation settlement costs and associated legal fees, effects of termination of leases, certain defined social security contributions, allowance for certain material expected credit losses, other acquisition-related expenses or benefits and effect of any non-recurring tax adjustments. Acquisition-related expenses or benefits include, changes in the fair value of contingent consideration, external deal costs, integration expenses, direct and incremental travel costs and non-recurring benefits or losses. Our adjusted net income and adjusted diluted EPS also excludes the effects of income tax on the above pre-tax items, as applicable. The effects of income tax of each item is calculated by applying the statutory rate of the local tax regulations in the jurisdiction in which the item was incurred.

    A limitation of using non-GAAP financial measures versus financial measures calculated in accordance with GAAP is that non-GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in accordance with GAAP and exclude costs that are recurring, namely stock-based compensation and amortization of acquisition-related intangible assets. EXL compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP financial measures to allow investors to evaluate such non-GAAP financial measures.

    EXL’s primary exchange rate exposure is with the Indian rupee, the Philippine peso, the U.K. pound sterling and the South African rand. The average exchange rate of the U.S. dollar against the Indian rupee increased from 82.69 during the quarter ended September 30, 2023 to 83.79 during the quarter ended September 30, 2024, representing a depreciation of 1.3% against the U.S. dollar. The average exchange rate of the U.S. dollar against the Philippine peso increased from 56.02 during the quarter ended September 30, 2023 to 56.84 during the quarter ended September 30, 2024, representing a depreciation of 1.5% against the U.S. dollar. The average exchange rate of the U.K. pound sterling against the U.S. dollar increased from 1.26 during the quarter ended September 30, 2023 to 1.31 during the quarter ended September 30, 2024, representing an appreciation of 4.4% against the U.S. dollar. The average exchange rate of the U.S. dollar against the South African rand decreased from 18.49 during the quarter ended September 30, 2023 to 17.74 during the quarter ended September 30, 2024, representing an appreciation of 4.1% against the U.S. dollar.

    The following table shows the reconciliation of these non-GAAP financial measures for the three months ended September 30, 2024 and September 30, 2023, and the three months ended June 30, 2024:

    Reconciliation of Adjusted Operating Income and Adjusted EBITDA
    (Amounts in thousands)
     
      Three months ended
      September 30,   June 30,
        2024       2023       2024  
    Net Income (GAAP) $ 53,037     $ 43,876     $ 45,825  
    add: Income tax expense   15,460       14,161       13,873  
    add/(subtract): Foreign exchange gain, net, interest expense,
    gain/(loss) from equity-method investment and other income/(loss), net
      908       2,193       1,751  
    Income from operations (GAAP) $ 69,405     $ 60,230     $ 61,449  
    add: Stock-based compensation expense   21,232       17,067       18,095  
    add: Amortization of acquisition-related intangibles   3,449       3,157       3,077  
    add: Restructuring and litigation settlement costs (a)               6,174  
    add: Allowance for expected credit losses (b)         1,700        
    Adjusted operating income (Non-GAAP) $ 94,086     $ 82,154     $ 88,795  
    Adjusted operating income margin as a % of Revenue (Non-GAAP)   19.9 %     20.0 %     19.8 %
    add: Depreciation on long-lived assets   10,350       8,426       9,833  
    Adjusted EBITDA (Non-GAAP) $ 104,436     $ 90,580     $ 98,628  
    Adjusted EBITDA margin as a % of revenue (Non-GAAP)   22.1 %     22.0 %     22.0 %

    (a) To exclude effects of employee severance costs and outplacement support costs of $4,762 and litigation settlement costs and associated legal fees of $1,412 during the three months ended June 30, 2024.

    (b) To exclude the effects of material allowance for expected credit losses on accounts receivables related to a customer bankruptcy event during the three months ended September 30, 2023.

    Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings Per Share
    (Amounts in thousands, except per share amount)
     
      Three months ended
      September 30,   June 30,
        2024       2023       2024  
    Net income (GAAP) $ 53,037     $ 43,876     $ 45,825  
    add: Stock-based compensation expense   21,232       17,067       18,095  
    add: Amortization of acquisition-related intangibles   3,449       3,157       3,077  
    add: Restructuring and litigation settlement costs (a)               6,174  
    add: Effects of changes in fair value of contingent consideration         2,500        
    add: Allowance for expected credit losses (b)         1,700        
    subtract: Tax impact on stock-based compensation expense (c)   (5,830 )     (4,340 )     (4,619 )
    subtract: Tax impact on amortization of acquisition-related intangibles   (866 )     (771 )     (765 )
    subtract: Tax impact on restructuring and litigation settlement costs               (1,588 )
    subtract: Tax impact on allowance for expected credit losses         (429 )      
    Adjusted net income (Non-GAAP) $ 71,022     $ 62,760     $ 66,199  
    Adjusted diluted earnings per share (Non-GAAP) $ 0.44     $ 0.37     $ 0.40  

    (a) To exclude effects of employee severance costs and outplacement support costs of $4,762 and litigation settlement costs and associated legal fees of $1,412 during the three months ended June 30, 2024.

    (b) To exclude the effects of material allowance for expected credit losses on accounts receivables related to a customer bankruptcy event during the three months ended September 30, 2023.

    (c) Tax impact includes $1,673 and $462 during the three months ended September 30, 2024 and 2023 respectively, and $18 during the three months ended June 30, 2024, related to discrete benefits recognized in income tax expense in accordance with ASU No. 2016-09, Compensation – Stock Compensation.

    Contacts:
    Investor Relations
    John Kristoff
    Vice President, Investor Relations
    +1 212 209 4613
    ir@exlservice.com

    Media – US
    Keith Little
    Assistant Vice President, Media Relations
    +1 703 598 0980
    media.relations@exlservice.com

    The MIL Network

  • MIL-OSI: Qorvo® Announces Fiscal 2025 Second Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    GREENSBORO, N.C., Oct. 29, 2024 (GLOBE NEWSWIRE) — Qorvo® (Nasdaq:QRVO), a leading global provider of connectivity and power solutions, today announced financial results for the Company’s fiscal 2025 second quarter ended September 28, 2024.

    On a GAAP basis, revenue for Qorvo’s fiscal 2025 second quarter was $1.047 billion, gross margin was 42.6%, operating income was $9.7 million, and loss per share was $0.18. On a non-GAAP basis, gross margin was 47.0%, operating income was $212.2 million, and diluted earnings per share was $1.88.

    Bob Bruggeworth, president and chief executive officer of Qorvo, said, “In the September quarter, ACG successfully supported our largest customer’s seasonal smartphone ramp. In HPA, we expanded our D&A business while building a broad-based business in power management. In CSG, we maintained our leadership in Wi-Fi applications while investing to grow in diverse businesses including automotive solutions and SoCs for ultra-wideband and Matter. HPA and CSG are on pace to achieve mid-teen year-over-year growth in fiscal 2025.”

    Financial Commentary and Outlook

    Grant Brown, chief financial officer of Qorvo, said, “In the September quarter, we exceeded the midpoint of guidance in revenue, gross margin and EPS. Looking forward, the flagship and premium tiers in the smartphone market are holding up well, however, content and ramp profiles vary by model, and we are experiencing unfavorable mix. We expect this to continue in the second half of fiscal 2025. In addition, in the mid and entry tiers of Android 5G smartphones, mix has shifted toward entry-tier 5G at the expense of mid-tier 5G. In our current view, we don’t expect this mix shift in Android 5G from mid-tier to entry-tier to reverse. As a result, we are taking appropriate actions, including factory consolidation and operating expense reductions as well as focusing on opportunities that align with our long-term profitability objectives. We currently expect full-year fiscal 2025 revenue and gross margin will be slightly down versus fiscal 2024.”

    Qorvo’s current outlook for the December 2024 quarter is:

    • Quarterly revenue of approximately $900 million, plus or minus $25 million
    • Non-GAAP gross margin of approximately 45%
    • Non-GAAP diluted earnings per share between $1.10 and $1.30

    See “Forward-looking non-GAAP financial measures” below. Qorvo’s actual quarterly results may differ from these expectations and projections, and such differences may be material.

    Selected Financial Information

    The following tables set forth selected GAAP and non-GAAP financial information for Qorvo for the periods indicated. See the more detailed financial information for Qorvo, including reconciliations of GAAP and non-GAAP financial information, attached.

    SELECTED GAAP RESULTS
    (In millions, except for percentages and EPS)
    (Unaudited)
                           
      Q2 Fiscal 2025   Q1 Fiscal 2025   Q2 Fiscal 2024   Sequential Change   Year-over-Year Change
    Revenue $ 1,046.5     $ 886.7     $ 1,103.5     $ 159.8     $ (57.0 )
    Gross profit $ 445.3     $ 332.3     $ 489.7     $ 113.0     $ (44.4 )
    Gross margin   42.6 %     37.5 %     44.4 %   5.1 ppt   (1.8) ppt
    Operating expenses $ 435.6     $ 327.7     $ 338.3     $ 107.9     $ 97.3  
    Operating income $ 9.7     $ 4.6     $ 151.4     $ 5.1     $ (141.7 )
    Net (loss) income $ (17.4 )   $ 0.4     $ 97.5     $ (17.8 )   $ (114.9 )
    Weighted-average diluted shares   94.9       96.5       98.6       (1.6 )     (3.7 )
    Diluted EPS (loss per share) $ (0.18 )   $ 0.00     $ 0.99     $ (0.18 )   $ (1.17 )
                           
                           
    SELECTED NON-GAAP RESULTS(1)
    (In millions, except for percentages and EPS)
    (Unaudited)
                           
      Q2 Fiscal 2025   Q1 Fiscal 2025   Q2 Fiscal 2024   Sequential Change   Year-over-Year Change
    Revenue $ 1,046.5     $ 886.7     $ 1,103.5     $ 159.8     $ (57.0 )
    Gross profit $ 492.0     $ 362.7     $ 525.2     $ 129.3     $ (33.2 )
    Gross margin   47.0 %     40.9 %     47.6 %     6.1 ppt       (0.6) ppt  
    Operating expenses $ 279.8     $ 264.5     $ 245.8     $ 15.3     $ 34.0  
    Operating income $ 212.2     $ 98.1     $ 279.4     $ 114.1     $ (67.2 )
    Net income $ 179.8     $ 83.5     $ 235.5     $ 96.3     $ (55.7 )
    Weighted-average diluted shares   95.8       96.5       98.6       (0.7 )     (2.8 )
    Diluted EPS $ 1.88     $ 0.87     $ 2.39     $ 1.01     $ (0.51 )

    (1) Adjusted for stock-based compensation expense, amortization of intangible assets, restructuring-related charges, acquisition and integration-related costs, goodwill and other asset impairments, gain or loss on assets, other expense or income, gain or loss on investments, and an adjustment of income taxes.

    SELECTED GAAP RESULTS BY OPERATING SEGMENT
    (In millions, except percentages)
    (Unaudited)
      Q2 Fiscal 2025   Q1 Fiscal 2025   Q2 Fiscal 2024   Sequential Change   Year-over-Year Change
    Revenue                  
    HPA $ 148.3     $ 129.5     $ 149.8       14.5 %     (1.0 )%
    CSG   146.8       114.9       103.6       27.8 %     41.7 %
    ACG   751.4       642.3       850.1       17.0 %     (11.6 )%
    Total revenue $ 1,046.5     $ 886.7     $ 1,103.5       18.0 %     (5.2 )%
    Operating income (loss)                      
    HPA $ 13.1     $ 4.9     $ 25.4       167.3 %     (48.4 )%
    CSG   (9.0 )     (19.5 )     (27.7 )     53.8 %     67.5 %
    ACG   215.1       116.4       284.8       84.8 %     (24.5 )%
    All other(1)   (209.5 )     (97.2 )     (131.1 )     (115.5 )%     (59.8 )%
    Total operating income $ 9.7     $ 4.6     $ 151.4       110.9 %     (93.6 )%
    Operating income (loss) as a % of revenue                          
    HPA   8.8 %     3.8 %     17.0 %     5.0 ppt       (8.2) ppt  
    CSG   (6.1 )     (17.0 )     (26.7 )     10.9 ppt       20.6 ppt  
    ACG   28.6       18.1       33.5       10.5 ppt       (4.9) ppt  
    Total operating income as a % of revenue   0.9 %     0.5 %     13.7 %     0.4 ppt       (12.8) ppt  

    (1) Includes stock-based compensation expense, amortization of intangible assets, restructuring-related charges, acquisition and integration-related costs, goodwill and other asset impairments, gain or loss on assets, other expense or income, and other miscellaneous corporate overhead expenses.

    Non-GAAP Financial Measures

    In addition to disclosing financial results calculated in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this earnings release contains some or all of the following non-GAAP financial measures: (i) non-GAAP gross profit and gross margin, (ii) non-GAAP operating expenses, operating income and operating margin, (iii) non-GAAP net income, (iv) non-GAAP net income per diluted share, (v) free cash flow, (vi) EBITDA, (vii) non-GAAP return on invested capital (ROIC), and (viii) net debt or positive net cash. Each of these non-GAAP financial measures is either adjusted from GAAP results to exclude certain expenses or derived from multiple GAAP measures, which are outlined in the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables, attached, and the “Additional Selected Non-GAAP Financial Measures and Reconciliations” tables, attached.

    In managing Qorvo’s business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures. In developing and monitoring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing gross margin and operating margin. In addition, management relies upon these non-GAAP financial measures to assess whether research and development efforts are at an appropriate level, and when making decisions about product spending, administrative budgets, and other operating expenses. Also, we believe that non-GAAP financial measures provide useful supplemental information to investors and enable investors to analyze the results of operations in the same way as management. We have chosen to provide this supplemental information to enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to operations, and stock-based compensation expense, which may obscure trends in Qorvo’s underlying performance.

    We believe that these non-GAAP financial measures offer an additional view of Qorvo’s operations that, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of Qorvo’s results of operations and the factors and trends affecting Qorvo’s business. However, these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

    Our rationale for using these non-GAAP financial measures, as well as their impact on the presentation of Qorvo’s operations, are outlined below:

    Non-GAAP gross profit and gross margin. Non-GAAP gross profit and gross margin exclude amortization of intangible assets, stock-based compensation expense, restructuring-related charges, acquisition and integration-related costs, and certain other expense (income). We believe that exclusion of these costs in presenting non-GAAP gross profit and gross margin facilitates a useful evaluation of our historical performance and projected costs and the potential for realizing cost efficiencies.

    We view amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, and customer relationships, as items arising from pre-acquisition activities, determined at the time of an acquisition, rather than ongoing costs of operating Qorvo’s business. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangible assets is a static expense, which is not typically affected by operations during any particular period. Although we exclude the amortization of purchased intangible assets from these non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase price accounting and contribute to revenue generation.

    We believe that presentation of non-GAAP gross profit and gross margin and other non-GAAP financial measures that exclude the impact of stock-based compensation expense assists management and investors in evaluating the period-over-period performance of Qorvo’s ongoing operations because (i) the expenses are non-cash in nature, and (ii) although the size of the grants is within our control, the amount of expense varies depending on factors such as short-term fluctuations in stock price volatility and prevailing interest rates, which can be unrelated to the operational performance of Qorvo during the period in which the expense is incurred and generally are outside the control of management. Moreover, we believe that the exclusion of stock-based compensation expense in presenting non-GAAP gross profit and gross margin and other non-GAAP financial measures is useful to investors to understand the impact of the expensing of stock-based compensation to Qorvo’s gross profit and gross margins and other financial measures in comparison to prior periods. We also believe that the adjustments to profit and margin related to restructuring-related charges, and acquisition and integration-related costs do not constitute part of Qorvo’s ongoing operations and therefore the exclusion of these items provides management and investors with better visibility into the actual costs required to generate revenues over time and facilitates a useful evaluation of our historical and projected performance. We believe disclosure of non-GAAP gross profit and gross margin has economic substance because the excluded expenses do not represent continuing cash expenditures and, as described above, we have little control over the timing and amount of the expenses in question.

    Non-GAAP operating expenses, operating income and operating margin. Non-GAAP operating expenses, operating income and operating margin exclude stock-based compensation expense, amortization of intangible assets, acquisition and integration-related costs, goodwill and other asset impairments, restructuring-related charges, (gain) loss on assets and certain other expense (income). We believe that presentation of a measure of operating expenses, operating income and operating margin that excludes amortization of intangible assets and stock-based compensation expense is useful to both management and investors for the same reasons as described above with respect to our use of non-GAAP gross profit and gross margin. We believe that acquisition and integration-related costs, goodwill and other asset impairments, restructuring-related charges, (gain) loss on assets and certain other expense (income) do not constitute part of Qorvo’s ongoing operations and therefore, the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time and facilitates a useful evaluation of our historical and projected performance. We believe disclosure of non-GAAP operating expenses, operating income and operating margin has economic substance because the excluded expenses are either unrelated to ongoing operations or do not represent current cash expenditures.

    Non-GAAP net income and non-GAAP net income per diluted share. Non-GAAP net income and non-GAAP net income per diluted share exclude the effects of stock-based compensation expense, amortization of intangible assets, acquisition and integration-related costs, goodwill and other asset impairments, restructuring-related charges, (gain) loss on assets, certain other expense (income), gain or loss on investments, and also reflect an adjustment of income taxes. The income tax adjustment primarily represents the use of research and development tax credit carryforwards, deferred tax expense (benefit) items not affecting taxes payable, adjustments related to the deemed and actual repatriation of historical foreign earnings, non-cash expense (benefit) related to uncertain tax positions and other items unrelated to the current fiscal year or that are not indicative of our ongoing business operations. We believe that presentation of measures of net income and net income per diluted share that exclude these items is useful to both management and investors for the reasons described above with respect to non-GAAP gross profit and gross margin and non-GAAP operating expenses, operating income and operating margin. We believe disclosure of non-GAAP net income and non-GAAP net income per diluted share has economic substance because the excluded expenses are either unrelated to ongoing operations or do not represent current cash expenditures.

    Free cash flow. Qorvo defines free cash flow as net cash provided by operating activities during the period minus property and equipment expenditures made during the period, and free cash flow margin is calculated as free cash flow as a percentage of revenue. We use free cash flow as a supplemental financial measure in our evaluation of liquidity and financial strength. Management believes that this measure is useful as an indicator of our ability to service our debt, meet other payment obligations and make strategic investments. Free cash flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our entire statement of cash flows.

    EBITDA. Qorvo adjusts GAAP net income for interest expense, interest income, income tax expense (benefit), depreciation and intangible amortization expense, stock-based compensation and other charges that are not representative of Qorvo’s ongoing operations (including goodwill and other asset impairments, investment activity, acquisition-related costs and restructuring-related costs) when presenting EBITDA. Management believes that this measure is useful to evaluate our ongoing operations and as a general indicator of our operating cash flow (in conjunction with a cash flow statement which also includes among other items, changes in working capital and the effect of non-cash charges).

    Non-GAAP ROIC. Return on invested capital (ROIC) is a non-GAAP financial measure that management believes provides useful supplemental information for management and the investor by measuring the effectiveness of our operations’ use of invested capital to generate profits. We use ROIC to track how much value we are creating for our shareholders. Non-GAAP ROIC is calculated by dividing annualized non-GAAP operating income, net of an adjustment for income taxes (as described above), by average invested capital. Average invested capital is calculated by subtracting the average of the beginning balance and the ending balance of equity plus net debt, less certain goodwill.

    Net debt or positive net cash. Net debt or positive net cash is defined as unrestricted cash, cash equivalents and short-term investments minus any borrowings under our credit facility and the principal balance of our senior unsecured notes. Management believes that net debt or positive net cash provides useful information regarding the level of Qorvo’s indebtedness by reflecting cash and investments that could be used to repay debt.

    Inventory days on hand. Inventory days on hand is defined as (a) average net inventory for the period, divided by (b) the result of non-GAAP cost of goods sold for the period divided by the number of days in the period.

    Forward-looking non-GAAP financial measures. Our earnings release contains forward-looking free cash flow, gross margin, income tax rate and diluted earnings per share. We provide these non-GAAP measures to investors on a prospective basis for the same reasons (set forth above) that we provide them to investors on a historical basis. We are unable to provide a reconciliation of the forward-looking non-GAAP financial measures to the most directly comparable forward-looking GAAP financial measures without unreasonable effort due to variability and difficulty in making accurate projections for items that would be required to be included in the GAAP measures, such as stock-based compensation, acquisition and integration-related costs, restructuring-related charges, gain or loss on assets, goodwill and other asset impairments, gain or loss on investments and the provision for income taxes, which could have a potentially significant impact on our future GAAP results.

    Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP financial measures as an analytical tool compared to the most directly comparable GAAP financial measures are these non-GAAP financial measures (i) may not be comparable to similarly titled measures used by other companies in our industry, and (ii) exclude financial information that some may consider important in evaluating our performance, thus limiting their usefulness as a comparative tool. We compensate for these limitations by providing full disclosure of the differences between these non-GAAP financial measures and the corresponding GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the corresponding GAAP financial measures, to enable investors to perform their own analysis of our gross profit and gross margin, operating expenses, operating income, net income, net income per diluted share and net cash provided by operating activities. We further compensate for the limitations of our use of non-GAAP financial measures by presenting the corresponding GAAP measures more prominently.

    Qorvo will conduct a conference call at 5:00 p.m. ET today to discuss today’s press release. The conference call will be broadcast live over the Internet and can be accessed by any interested party at the following URL: https://ir.qorvo.com (under “Events & Presentations”). A telephone playback of the conference call will be available approximately two hours after the call’s completion and can be accessed by dialing 1-412-317-0088 and using the passcode 2723791. The playback will be available through the close of business November 5, 2024.

    About Qorvo

    Qorvo (Nasdaq:QRVO) supplies innovative semiconductor solutions that make a better world possible. We combine product and technology leadership, systems-level expertise and global manufacturing scale to quickly solve our customers’ most complex technical challenges. Qorvo serves diverse high-growth segments of large global markets, including automotive, consumer, defense & aerospace, industrial & enterprise, infrastructure and mobile. Visit www.qorvo.com to learn how our diverse and innovative team is helping connect, protect and power our planet.

    Qorvo is a registered trademark of Qorvo, Inc. in the U.S. and in other countries. All other trademarks are the property of their respective owners.

    This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions, and are not historical facts and typically are identified by terms such as “may,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “forecast”, “predict,” “potential,” “continue” and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements included herein represent management’s current judgment and expectations as of the date the statement is first made, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We caution you not to place undue reliance upon any such forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under U.S. federal securities laws. Our business is subject to numerous risks and uncertainties, including those relating to fluctuations in our operating results on a quarterly and annual basis; our substantial dependence on developing new products and achieving design wins; our dependence on several large customers for a substantial portion of our revenue; a loss of revenue if defense and aerospace contracts are canceled or delayed; our dependence on third parties; risks related to sales through distributors; risks associated with the operation of our manufacturing facilities; business disruptions; poor manufacturing yields; increased inventory risks and costs, due to timing of customers’ forecasts; our inability to effectively manage or maintain relationships with chipset suppliers; our ability to continue to innovate in a very competitive industry; underutilization of manufacturing facilities; unfavorable changes in interest rates, pricing of certain precious metals, utility rates and foreign currency exchange rates; our acquisitions, divestitures and other strategic investments failing to achieve financial or strategic objectives; our ability to attract, retain and motivate key employees; warranty claims, product recalls and product liability; changes in our effective tax rate; enactment of international or domestic tax legislation, or changes in regulatory guidance; changes in the favorable tax status of certain of our subsidiaries; risks associated with social, environmental, health and safety regulations, and climate change; risks from international sales and operations; economic regulation in China; changes in government trade policies, including imposition of tariffs and export restrictions; we may not be able to generate sufficient cash to service all of our debt; restrictions imposed by the agreements governing our debt; our reliance on our intellectual property portfolio; claims of infringement of third-party intellectual property rights; security breaches, failed system upgrades or regular maintenance and other similar disruptions to our IT systems; theft, loss or misuse of personal data by or about our employees, customers or third parties; provisions in our governing documents and Delaware law may discourage takeovers and business combinations that our stockholders might consider to be in their best interests; and volatility in the price of our common stock. These and other risks and uncertainties, which are described in more detail under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended March 30, 2024, and Qorvo’s subsequent reports and statements that we file with the SEC, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.

    Financial Tables to Follow

    QORVO, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
    (Unaudited)
     
      Three Months Ended   Six Months Ended
      September 28, 2024   September 30, 2023   September 28, 2024   September 30, 2023
    Revenue $ 1,046,509     $ 1,103,493     $ 1,933,180     $ 1,754,657  
                   
    Costs and expenses:              
    Cost of goods sold   601,203       613,803       1,155,570       1,035,897  
    Research and development   201,050       174,947       388,652       338,037  
    Selling, general and administrative   107,760       103,696       222,683       209,119  
    Other operating expense   126,821       59,619       151,994       68,312  
    Total costs and expenses   1,036,834       952,065       1,918,899       1,651,365  
                   
    Operating income   9,675       151,428       14,281       103,292  
    Interest expense   (22,594 )     (17,121 )     (39,688 )     (34,382 )
    Other income, net   15,422       5,211       27,187       18,927  
                   
    Income before income taxes   2,503       139,518       1,780       87,837  
    Income tax expense   (19,938 )     (42,057 )     (18,801 )     (33,956 )
    Net (loss) income $ (17,435 )   $ 97,461     $ (17,021 )   $ 53,881  
                   
    Net (loss) income per share:              
    Basic $ (0.18 )   $ 1.00     $ (0.18 )   $ 0.55  
    Diluted $ (0.18 )   $ 0.99     $ (0.18 )   $ 0.54  
                   
    Weighted-average shares of common stock outstanding:              
    Basic   94,886       97,945       95,116       98,167  
    Diluted   94,886       98,590       95,116       98,892  
    QORVO, INC. AND SUBSIDIARIES
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
    (In thousands, except per share data)
    (Unaudited)
     
      Three Months Ended
      September 28, 2024   June 29, 2024   September 30, 2023
               
    GAAP operating income $ 9,675     $ 4,606     $ 151,428  
    Stock-based compensation expense   38,181       42,366       39,053  
    Amortization of intangible assets   29,482       30,474       29,963  
    Restructuring-related charges   34,396       19,574       8,418  
    Acquisition and integration-related costs   1,211       2,582       852  
    Goodwill impairment   96,458             48,000  
    Other expense (income)   2,811       (1,477 )     1,712  
    Non-GAAP operating income $ 212,214     $ 98,125     $ 279,426  
               
    GAAP net (loss) income $ (17,435 )   $ 414     $ 97,461  
    Stock-based compensation expense   38,181       42,366       39,053  
    Amortization of intangible assets   29,482       30,474       29,963  
    Restructuring-related charges   34,396       19,574       8,418  
    Acquisition and integration-related costs   1,211       2,582       852  
    Goodwill impairment   96,458             48,000  
    Other expense (income)   379       (3,446 )     2,616  
    Loss on investments   780       2,499       1,574  
    Adjustment of income taxes   (3,611 )     (10,939 )     7,576  
    Non-GAAP net income $ 179,841     $ 83,524     $ 235,513  
               
    GAAP weighted-average outstanding diluted shares   94,886       96,510       98,590  
    Dilutive stock-based awards   867              
    Non-GAAP weighted-average outstanding diluted shares   95,753       96,510       98,590  
               
    Non-GAAP net income per share, diluted $ 1.88     $ 0.87     $ 2.39  
    QORVO, INC. AND SUBSIDIARIES
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
    (Unaudited)
     
      Three Months Ended
    (in thousands, except percentages) September 28, 2024   June 29, 2024   September 30, 2023
    GAAP gross profit/margin $ 445,306       42.6 %   $ 332,304       37.5 %   $ 489,690       44.4 %
    Stock-based compensation expense   6,047       0.6       5,186       0.6       7,481       0.7  
    Amortization of intangible assets   25,523       2.4       25,827       2.9       25,591       2.3  
    Restructuring-related charges   15,414       1.4                   2,482       0.2  
    Acquisition and integration-related costs   636       0.1       1,925       0.2       1        
    Other income   (885 )     (0.1 )     (2,586 )     (0.3 )            
    Non-GAAP gross profit/margin $ 492,041       47.0 %   $ 362,656       40.9 %   $ 525,245       47.6 %
      Three Months Ended
    Non-GAAP Operating Income September 28, 2024
    (as a percentage of revenue)  
       
    GAAP operating income   0.9 %
    Stock-based compensation expense   3.7  
    Amortization of intangible assets   2.8  
    Restructuring-related charges   3.3  
    Acquisition and integration-related costs   0.1  
    Goodwill impairment   9.2  
    Other expense   0.3  
    Non-GAAP operating income   20.3 %
      Three Months Ended
    Free Cash Flow(1) September 28, 2024
    (in millions)  
       
    Net cash provided by operating activities $ 127.8  
    Purchases of property and equipment   (33.0 )
    Free cash flow $ 94.8  

    (1) Free Cash Flow is calculated as net cash provided by operating activities minus property and equipment expenditures.

    QORVO, INC. AND SUBSIDIARIES
    ADDITIONAL SELECTED NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
    (In thousands)
    (Unaudited)
     
      Three Months Ended
      September 28, 2024   June 29, 2024   September 30, 2023
    GAAP research and development expense $ 201,050     $ 187,602     $ 174,947  
    Less:          
    Stock-based compensation expense   13,468       12,727       11,519  
    Acquisition and integration-related costs   2       2       2  
    Non-GAAP research and development expense $ 187,580     $ 174,873     $ 163,426  
               
      Three Months Ended
      September 28, 2024   June 29, 2024   September 30, 2023
    GAAP selling, general and administrative expense $ 107,760     $ 114,923     $ 103,696  
    Less:          
    Stock-based compensation expense   18,488       24,322       20,030  
    Amortization of intangible assets   3,959       4,647       4,372  
    Acquisition and integration-related costs   1              
    Non-GAAP selling, general and administrative expense $ 85,312     $ 85,954     $ 79,294  
               
      Three Months Ended
      September 28, 2024   June 29, 2024   September 30, 2023
    GAAP other operating expense $ 126,821     $ 25,173     $ 59,619  
    Less:          
    Stock-based compensation expense   178       131       23  
    Restructuring-related charges   18,982       19,574       5,936  
    Acquisition and integration-related costs   572       655       849  
    Goodwill impairment   96,458             48,000  
    Other expense   3,696       1,109       1,712  
    Non-GAAP other operating expense $ 6,935     $ 3,704     $ 3,099  
               
      Three Months Ended
      September 28, 2024   June 29, 2024   September 30, 2023
    GAAP total operating expense $ 435,631     $ 327,698     $ 338,262  
    Less:          
    Stock-based compensation expense   32,134       37,180       31,572  
    Amortization of intangible assets   3,959       4,647       4,372  
    Restructuring-related charges   18,982       19,574       5,936  
    Acquisition and integration-related costs   575       657       851  
    Goodwill impairment   96,458             48,000  
    Other expense   3,696       1,109       1,712  
    Non-GAAP total operating expense $ 279,827     $ 264,531     $ 245,819  
    QORVO, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (Unaudited)
     
      September 28, 2024   March 30, 2024
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 1,096,452     $ 1,029,258  
    Accounts receivable, net   580,963       412,960  
    Inventories   694,457       710,555  
    Other current assets   160,587       133,983  
    Assets of disposal group held for sale         159,278  
    Total current assets   2,532,459       2,446,034  
           
    Property and equipment, net   846,540       870,982  
    Goodwill   2,437,790       2,534,601  
    Intangible assets, net   445,715       509,383  
    Long-term investments   24,804       23,252  
    Other non-current assets   215,767       170,383  
    Total assets $ 6,503,075     $ 6,554,635  
           
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable and accrued liabilities $ 675,581     $ 589,760  
    Current portion of long-term debt   412,179       438,740  
    Other current liabilities   245,977       113,215  
    Liabilities of disposal group held for sale         88,372  
    Total current liabilities   1,333,737       1,230,087  
           
    Long-term debt   1,549,244       1,549,272  
    Other long-term liabilities   209,925       218,904  
    Total liabilities   3,092,906       2,998,263  
           
    Stockholders’ equity   3,410,169       3,556,372  
    Total liabilities and stockholders’ equity $ 6,503,075     $ 6,554,635  

    At Qorvo®
    Doug DeLieto
    VP, Investor Relations
    1.336.678.7968

    The MIL Network

  • MIL-OSI: Gibson Energy Announces 2024 Third Quarter Results and 2024 Record Crude Volumes at Edmonton Terminal

    Source: GlobeNewswire (MIL-OSI)

    All financial figures are in Canadian dollars unless otherwise noted

    CALGARY, Alberta, Oct. 29, 2024 (GLOBE NEWSWIRE) — Gibson Energy Inc. (TSX:GEI) (“Gibson” or the “Company”) announced today its financial and operating results for the three and nine months ended September 30, 2024.

    “Gibson delivered strong results in the third quarter, driven by the continued strength and stability of our Infrastructure segment, which now represents over 85% of our business, and saw 2024 record third party crude volumes at our Edmonton Terminal in the third quarter, driven by deliveries onto the Trans Mountain Expansion pipeline,” said Curtis Philippon, President and Chief Executive Officer. “Since joining Gibson in August, I have had the opportunity to visit all of our operations. Gibson’s critical energy infrastructure spans from touching one in four barrels produced in Western Canada to exporting Permian & Eagle Ford barrels through one of the largest crude export terminals in the United States. It is impressive to see firsthand our asset base and meet the passionate talented teams that support it.”

    Financial Highlights:

    • Revenue of $2,900 million in the third quarter, a $325 million or 10% decrease relative to the third quarter of 2023, due to lower revenues within the Marketing segment driven by Crude Marketing sales volume
    • Infrastructure adjusted EBITDA(1) of $150 million in the third quarter, a $10 million or 7% increase from the third quarter of 2023, primarily driven by a full quarter of contribution from the Gateway Terminal
    • Marketing adjusted EBITDA(1) of $14 million in the third quarter, a $10 million or 41% decrease from the third quarter of 2023, due to lower contributions from the Refined Products business resulting from compressed refining margins and the Crude Marketing business due to fewer opportunities
    • Adjusted EBITDA(1) on a consolidated basis of $151 million in the third quarter, a $2 million or 1% increase over the third quarter of 2023, as higher Infrastructure adjusted EBITDA(1) offset lower Marketing results
    • Net income of $54 million in the third quarter, a $33 million or 161% increase over the third quarter of 2023, primarily due to one-time transaction and finance costs incurred in relation to the acquisition of the Gateway Terminal in the comparative period, and the factors noted above, partially offset by higher depreciation, amortization, income tax expense and foreign exchange losses
    • Distributable cash flow(1) of $88 million in the third quarter, a $5 million or 5% decrease from the third quarter of 2023, primarily due to higher current income tax expense
    • Dividend payout ratio(2) on a trailing twelve-month basis of 65%, below the Company’s 70% – 80% target
    • Net debt to adjusted EBITDA ratio(2) at September 30, 2024 of 3.2x, within the Company’s 3.0x – 3.5x target

    Strategic Developments and Highlights:

    • On July 15, 2024, Gibson announced the extension of a long-term contract with an investment grade global E&P company at its Gateway Terminal which further enhanced the quality of the Company’s cash flows, as well as the sanction of a connection to the Cactus II Pipeline, providing customers with access to up to approximately 700,000 barrels per day of incremental supply

    (1) Adjusted EBITDA and distributable cash flow are non-GAAP financial measures. See the “Specified Financial Measures” section of this release.
    (2) Net debt to adjusted EBITDA ratio and dividend payout ratio are non-GAAP financial ratios. See the “Specified Financial Measures” section of this release.

    Management’s Discussion and Analysis and Financial Statements
    The 2024 third quarter Management’s Discussion and Analysis and unaudited Condensed Consolidated Financial Statements provide a detailed explanation of Gibson’s financial and operating results for the three months and nine months ended September 30, 2024, as compared to the three months and nine months ended September 30, 2023. These documents are available at www.gibsonenergy.com and on SEDAR+ at www.sedarplus.ca.

    Earnings Conference Call & Webcast Details
    A conference call and webcast will be held to discuss the 2024 third quarter financial and operating results at 7:00am Mountain Time (9:00am Eastern Time) on Wednesday, October 30, 2024.

    To register for the call, view dial-in numbers, and obtain a dial-in PIN, please access the following URL:

    Registration at least five minutes prior to the conference call is recommended. 

    This call will also be broadcast live on the Internet and may be accessed directly at the following URL:

    The webcast will remain accessible for a 12-month period at the above URL.

    Supplementary Information
    Gibson has also made available certain supplementary information regarding the 2024 third quarter financial and operating results, available at www.gibsonenergy.com.

    About Gibson
    Gibson is a leading liquids infrastructure company with its principal businesses consisting of the storage, optimization, processing, and gathering of liquids and refined products. Headquartered in Calgary, Alberta, the Company’s operations are located across North America, with core terminal assets in Hardisty and Edmonton, Alberta, Ingleside, Texas, and a facility in Moose Jaw, Saskatchewan.

    Gibson shares trade under the symbol GEI and are listed on the Toronto Stock Exchange. For more information, visit www.gibsonenergy.com.

    Forward-Looking Statements
    Certain statements contained in this press release constitute forward-looking information and statements (collectively, forward-looking statements). All statements other than statements of historical fact are forward-looking statements. The use of any of the words ‘‘anticipate’’, ‘‘plan’’, ‘‘contemplate’’, ‘‘continue’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘propose’’, ‘‘might’’, ‘‘may’’, ‘‘will’’, ‘‘shall’’, ‘‘project’’, ‘‘should’’, ‘‘could’’, ‘‘would’’, ‘‘believe’’, ‘‘predict’’, ‘‘forecast’’, ‘‘pursue’’, ‘‘potential’’ and ‘‘capable’’ and similar expressions are intended to identify forward looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. The Company does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in the Company’s Annual Information Form and Management’s Discussion and Analysis, each dated February 20, 2024, as filed on SEDAR+ and available on the Gibson website at www.gibsonenergy.com.

    For further information, please contact:

    Investor Relations:
    (403) 776-3077
    investor.relations@gibsonenergy.com

    Media Relations:
    (403) 476-6334
    communications@gibsonenergy.com

    Specified Financial Measures

    This press release refers to certain financial measures that are not determined in accordance with GAAP, including non-GAAP financial measures and non-GAAP financial ratios. Readers are cautioned that non-GAAP financial measures and non-GAAP financial ratios do not have standardized meanings prescribed by GAAP and, therefore, may not be comparable to similar measures presented by other entities. Management considers these to be important supplemental measures of the Company’s performance and believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures.

    For further details on these specified financial measures, including relevant reconciliations, see the “Specified Financial Measures” section of the Company’s MD&A for the three and nine months ended September 30, 2024 and 2023, which is incorporated by reference herein and is available on Gibson’s SEDAR+ profile at www.sedarplus.ca and Gibson’s website at www.gibsonenergy.com.

    a) Adjusted EBITDA

    Noted below is the reconciliation to the most directly comparable GAAP measures of the Company’s segmented and consolidated adjusted EBITDA for the three and nine months ended September 30, 2024, and 2023:

    Three months ended September 30, Infrastructure Marketing Corporate and Adjustments Total
    ($ thousands) 2024   2023   2024   2023   2024   2023   2024   2023  
                           
    Segment profit 150,271   137,727   14,183   17,900       164,454   155,627  
    Unrealized (gain) loss on derivative financial instruments (1,553 ) 740   25   6,059       (1,528 ) 6,799  
    General and administrative         (13,004 ) (14,258 ) (13,004 ) (14,258 )
    Adjustments to share of profit from equity accounted investees 1,166   1,432           1,166   1,432  
    Executive transition costs             251     251    
    Renewable power purchase agreement         (175 )   (175 )  
    Other                
    Adjusted EBITDA 149,884   139,899   14,208   23,959   (12,928 ) (14,258 ) 151,164   149,600  
                           
    Nine months ended September 30, Infrastructure Marketing Corporate and Adjustments Total
    ($ thousands) 2024   2023   2024   2023   2024   2023   2024   2023  
                         
    Segment profit 446,566   336,483   69,391   123,962       515,957   460,445  
    Unrealized loss (gain) on derivative financial instruments 3,746   740   (1,884 ) (6,872 )     1,862   (6,132 )
    General and administrative         (51,920 ) (38,677 ) (51,920 ) (38,677 )
    Adjustments to share of profit from equity accounted investees 4,071   4,293           4,071   4,293  
    Executive transition costs         10,665     10,665    
    Renewable power purchase agreement         (175 )   (175 )  
    Other           218     218  
    Adjusted EBITDA 454,383   341,516   67,507   117,090   (41,430 ) (38,459 ) 480,460   420,147  
                                     
      Three months ended September 30,
     
    ($ thousands) 2024   2023  
         
    Net Income 53,916   20,633  
         
    Income tax expense 14,573   7,678  
    Depreciation, amortization, and impairment charges 44,289   38,542  
    Finance costs, net 32,545   50,222  
    Unrealized (gain) loss on derivative financial instruments (1,528 ) 6,799  
    Corporate unrealized (gain) loss on derivative financial instruments (1) (1,934 ) 430  
    Stock based compensation 4,747   6,455  
    Acquisition and integration costs   19,959  
    Adjustments to share of profit from equity accounted investees 1,166   1,432  
    Corporate foreign exchange loss (gain) and other 3,139   (2,550 )
    Executive transition costs 251    
    Adjusted EBITDA 151,164   149,600  
             
      Nine months ended September 30,
     
    ($ thousands) 2024   2023  
           
    Net Income 157,737   160,910  
           
    Income tax expense 46,205   50,864  
    Depreciation, amortization, and impairment charges 131,452   94,788  
    Finance costs, net 104,285   80,357  
    Unrealized loss (gain) on derivative financial instruments 1,862   (6,132 )
    Corporate unrealized loss (gain) on derivative financial instruments (1) 6,707   430  
    Stock based compensation 15,158   15,344  
    Acquisition and integration costs 1,371   19,959  
    Adjustments to share of profit from equity accounted investees 4,071   4,293  
    Corporate foreign exchange loss (gain) and other 947   (666 )
    Executive transition costs 10,665    
    Adjusted EBITDA 480,460   420,147  
             

    b) Distributable Cash Flow

    The following is a reconciliation of distributable cash flow from operations to its most directly comparable GAAP measure, cash flow from operating activities:

      Three months ended September 30,
      Nine months ended September 30,
     
    ($ thousands) 2024   2023   2024   2023  
             
    Cash flow from operating activities 404,794   190,015   531,178   419,254  
    Adjustments:        
    Changes in non-cash working capital and taxes paid (258,264 ) (61,420 ) (64,620 ) (14,921 )
    Replacement capital (13,023 ) (12,876 ) (24,260 ) (25,702 )
    Cash interest expense, including capitalized interest (34,045 ) (32,290 ) (102,405 ) (65,677 )
    Acquisition and integration costs (1)   19,959   1,371   19,959  
    Executive transition costs 7,433     10,665    
    Lease payments (8,144 ) (8,575 ) (24,178 ) (26,268 )
    Current income tax (10,582 ) (1,860 ) (23,633 ) (23,800 )
    Distributable cash flow 88,169   92,953   304,118   282,845  
                     
    Twelve months ended September 30,
     
    ($ thousands) 2024   2023  
         
    Cash flow from operating activities 686,780   489,312  
    Adjustments:    
    Changes in non-cash working capital and taxes paid (57,133 ) 47,812  
    Replacement capital (34,486 ) (32,559 )
    Cash interest expense, including capitalized interest (136,861 ) (81,966 )
    Acquisition and integration costs (1) 3,454   19,959  
    Executive transition costs 10,665    
    Lease payments (33,806 ) (34,035 )
    Current income tax (31,550 ) (37,218 )
    Distributable cash flow 407,063   371,305  
             

    c) Dividend Payout Ratio

    Twelve months ended September 30,
     
      2024   2023  
    Distributable cash flow 407,063   371,305  
    Dividends declared 263,050   226,755  
    Dividend payout ratio 65 % 61 %
             

    d) Net Debt To Adjusted EBITDA Ratio

      Twelve months ended September 30,
     
      2024   2023  
         
    Current and long-term debt 2,528,454   2,645,904  
    Lease  liabilities 50,246   67,862  
    Less: unsecured hybrid debt (450,000 ) (450,000 )
    Less: cash and cash equivalents (55,584 ) (54,464 )
         
    Net debt 2,073,116   2,209,302  
    Adjusted EBITDA 650,141   557,481  
    Net debt to adjusted EBITDA ratio 3.2   4.0  
             

    The MIL Network

  • MIL-OSI: Enovix and Leading Smartphone OEM Execute Development Agreement for Mass Production in 2025

    Source: GlobeNewswire (MIL-OSI)

    FREMONT, Calif., Oct. 29, 2024 (GLOBE NEWSWIRE) — Enovix Corporation (“Enovix”) (Nasdaq: ENVX), a global high-performance battery company, announced today that it executed a development agreement with one of the leading global smartphone OEMs with top 5 market share in China. Under the terms of the agreement and subject to applicable milestones, the companies will develop a 100% active silicon anode battery customized for specific smartphone models targeted for launch in Q4 2025. The company now has agreements with 2 of the leading smartphone OEMs and has further sales momentum building in IoT and EV markets.

    Enovix’s CEO Raj Talluri commented, “We are thrilled to formalize this relationship, and we see it as a proof point of smartphones needing batteries with much higher energy density and capacity to satisfy the needs of AI enabled apps. Upon meeting specified milestones in this new agreement, we will enter the smartphone market in 2025 with high-volume production out of Fab2 in Malaysia.”

    About Enovix

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

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

    Forward Looking Statements

    This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about us and our industry that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “believe”, “will”, “may”, “estimate”, “continue”, “anticipate”, “intend”, “should”, “plan”, “expect”, “predict”, “could”, “potentially”, “target”, “project”, “believe”, “continue” or the negative of these terms or similar expressions. Forward-looking statements in this press release include, but are not limited to, statements regarding the applicable OEM agreement, including, without limitation, with respect to our ability to successfully develop a 100% active silicon anode battery customized for a specific smartphone model, our ability to satisfy applicable contract milestones and other terms, and our ability to achieve high-volume production out of Fab2 in Malaysia in 2025. Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties. For additional information on these risks and uncertainties and other potential factors that could affect our business and financial results or cause actual results to differ from the results predicted, please refer to our filings with the Securities and Exchange Commission (the “SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our most recently filed annual periodic reports on Form 10-K and quarterly reports on Form 10-Q and other documents that we have filed, or that we will file, with the SEC. Any forward-looking statements made by us in this press release speak only as of the date on which they are made and subsequent events may cause these expectations to change. We disclaim any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise, except as required by law.

    For media and investor inquiries, please contact:
    Enovix Corporation
    Robert Lahey
    Email: ir@enovix.com

    The MIL Network

  • MIL-OSI: Gibson Energy Declares Dividend

    Source: GlobeNewswire (MIL-OSI)

    All financial figures are in Canadian dollars unless otherwise noted

    CALGARY, Alberta, Oct. 29, 2024 (GLOBE NEWSWIRE) — Gibson Energy Inc. (TSX:GEI) (“Gibson” or the “Company”) announced today that its Board of Directors has approved a quarterly dividend of $0.41 per common share payable on January 17, 2025, to shareholders of record at the close of business December 31, 2024. This dividend is designated as an eligible dividend for Canadian income tax purposes. For non-resident shareholders, Gibson’s dividends are subject to Canadian withholding tax.

    About Gibson
    Gibson is a leading liquids infrastructure company with its principal businesses consisting of the storage, optimization, processing, and gathering of liquids and refined products. Headquartered in Calgary, Alberta, the Company’s operations are located across North America, with core terminal assets in Hardisty and Edmonton, Alberta, Ingleside, Texas, and a facility in Moose Jaw, Saskatchewan.

    Gibson shares trade under the symbol GEI and are listed on the Toronto Stock Exchange. For more information, visit www.gibsonenergy.com.

    For further information, please contact:

    Investor Relations:
    (403) 776-3077
    investor.relations@gibsonenergy.com

    Media Relations:
    (403) 476-6334
    communications@gibsonenergy.com

    The MIL Network

  • MIL-OSI Economics: How the B20 is turning policy into action for a sustainable future

    Source: International Chamber of Commerce

    Headline: How the B20 is turning policy into action for a sustainable future

    As a B20 Network Partner, ICC supported the Brazilian National Confederation of Industry (CNI) in the fulfilment of the theme – contributing to the development of impactful policy recommendations, leveraging the participation of 11 ICC Executive Board members across a range of Task Forces, and ICC and World Chambers Federation leadership in the B20 International Business Advisory Caucus.

    The B20 is a global platform for the international business community to support the work of the G20 process. Here’s how ICC is working to help the B20 turn policy into action.

    Improving representation of women in B20 Task Forces

    As a partner institution of a new B20 initiative to help increase the representation of women in B20 membership and leadership, ICC pledged to support B20 presidencies by proposing women candidates eligible to chair B20 task forces and encouraging women to become B20 members through the mobilisation of the global ICC network in over 170 countries. The SheLeads B20 initiative aims to achieve 50% female representation by 2030. ICC Secretary General John W.H. Denton AO, who co-chaired a B20 Task Force on Finance and Infrastructure, signed the pledge on behalf of ICC, together with representatives from the OECD, Business at OECD, and International Organisation of Employers (IOE). Prominent women leaders, ICC Honorary Chair Maria Fernanda Garza, ICC Board Member Lama Al-Sulaiman and ICC World Chambers Federation First Vice-Chair Marie Christine Oghly co-chaired B20 Brazil Task Forces on Integrity and Compliance, Employment and Education, and Women, Diversity and Inclusion in Business respectively. Five additional female ICC Board Members (Candace Johnson, Rebecca Enonchong, Marienne Coutinho, Marjorie Yang, and Patricia Nzolantima) were also Members of B20 Task Forces this year.

    Women in trade

    ICC is also a proud supporter of B20 Brazil’s Women in Trade legacy initiative. Working in collaboration with the International Trade Centre (ITC) and the Organisation for Economic Co-operation and Development (OECD), the initiative saw the G20 and B20 partner to share knowledge and best practices for inclusive trade policy designed to increase women’s participation in international trade.

    Combatting food loss and waste

    The Summit also saw the launch of an ICC-B20 Global Challenge against Food Loss and Waste to address food insecurity. The Initiative aims to identify, through a global challenge, private sector projects that can contribute to tackle the most critical issues related to food loss and waste.

    Following a consultation phase, businesses worldwide will be invited to submit proposals aimed at addressing the five biggest challenges related to food loss and waste. The highest-ranking projects will be presented at the FAO World Food Forum in October 2025, providing an opportunity for further visibility and engagement with key stakeholders. A founding member of the Global Alliance Against Hunger and Poverty, one of the Brazilian G20 Presidency’s key initiatives, ICC is committed to leveraging the unique expertise and network of the private sector to support and scale integrated solutions to sustainably and equitably feed the world.

    Addressing B20 participants on a panel looking at how B20 Brazil legacy initiatives are turning policy into action, ICC Secretary General John W.H. Denton AO said:

    “Through the ICC-B20 Global Challenge against Food Loss and Waste, we aim to act as a bridge between the B20 and G20, ensuring public-private collaboration to achieve lasting solutions to poverty and hunger worldwide.”

    MIL OSI Economics

  • MIL-OSI USA: Schumer, Gillibrand Secure Nearly $12 Million To Replace Bridge Street Bridge Over Schoharie Creek

    US Senate News:

    Source: United States Senator for New York Kirsten Gillibrand

    Senators Say Fed $$ Will Support Critical Replacement Of 100-Year-Old Bridge Via Bipartisan Infrastructure Law’s Competitive “Bridge Investment Program”

    Schumer, Gillibrand: The Bipartisan Infrastructure & Jobs Law Is Helping Bridge The Gap To Build Long Overdue Projects The Capital Region!

    U.S. Senate Majority Leader Charles E. Schumer and U.S. Senator Kirsten Gillibrand announced $11,600,000 for Schoharie County to replace the Bridge Street bridge over Schoharie Creek as a recipient of the U.S. Department of Transportation’s (DOT) highly competitive Bridge Investment Program. The federal funding, created in the Bipartisan Infrastructure Investment & Jobs Law championed by the senators, will help replace the aging bridge, which is a vital connector in Schoharie County.

    “The Bridge Street bridge is a vital connector in Schoharie County, but after 100 years of use, it is nearing the end of its useful life. This $11.6 million will boost efforts to replace the bridge and restore this vital connector for Schoharie County,” said Senator Schumer. “The next closest bridge over Schoharie Creek is more than 20 minutes away. When considering emergency vehicles, that 20 minutes is vital. New York State has already put a weight restriction on the bridge due to its condition, and it’s vital that we build a replacement bridge as soon as possible to keep people safe and to maximize ease of transport and economic efficiency. I fought to create the Bridge Investment Program in our Bipartisan Infrastructure & Jobs Law because I know how important boosting federal investment in bridges is to protecting travelers’ safety while creating good-paying jobs. I’m proud that the law is continuing to deliver for the Capital Region.”

    “Infrastructure like the Bridge Street bridge helps local economies thrive, plays a vital role in protecting public safety, and connects communities,” said Senator Gillibrand. “Bridge Street serves as a crucial overpass for emergency vehicles, farm vehicles, and citizens of Schoharie County, and its replacement is long overdue. I’m proud to have fought for the passage of the Bipartisan Infrastructure Law and helped secure this funding for the Capital Region. I will continue working to deliver federal dollars to New York for the improvement of our infrastructure.”

    “We are deeply grateful to Senator Schumer, Senator Gillibrand, Lieutenant Governor Delgado, Congresswoman Stefanik and all the bipartisan supporters for securing the $11.6 million needed for Schoharie’s new Bridge Street Bridge. This bridge is essential for our town—it boosts the safety and efficiency of our roads, ensures emergency responders can act quickly, supports our farmers who rely on it, and links our community hubs. This investment is a big win for everyone in Schoharie County, showing a strong commitment to enhancing our critical infrastructure,” said Benjamin Oevering, Supervisor, Town of Schoharie.

    The Bridge Street bridge is a vital connector in Schoharie County, but after 100 years of use, it is nearing the end of its useful life. The federal funding secured by the senators will help the county build a new bridge, increasing safety and creating jobs. New York State has put a weight restriction on the bridge due to its condition, and the County is concerned that further disrepair could eventually limit its use by emergency vehicles. The nearest bridge is approximately 10 miles away, adding 20-25 minutes in commute time. The senators also said that farm vehicles use the bridge regularly, and the bridge is vital to the County’s thriving rural agriculture economy.

    The senators explained that the Bipartisan Infrastructure Investment and Jobs Act included $12.5 billion appropriated annually over five years (FY 22-26) to help plan, replace, rehabilitate, protect, and preserve some of the nation’s largest bridges, ensuring that they remain operational, support local economies, strengthen supply chains, and improve safety. The Capital Region was one of the first in the nation to tap into this federal funding when Schumer and Gillibrand secured $21 million to repair and modernize the Castleton-on-Hudson Bridge in April 2023.

    MIL OSI USA News

  • MIL-OSI USA: Tillis to Lead Legislation to Replenish the SBA Disaster Loan Program Following Hurricanes Helene and Milton

    US Senate News:

    Source: United States Senator for North Carolina Thom Tillis

    WASHINGTON, D.C. – Today, Senator Thom Tillis (R-NC), along with Senators Ted Budd (R-NC), Tim Scott (R-SC), Bill Cassidy, M.D. (R-LA), and Rick Scott (R-FL), announced plans to introduce legislation that would replenish the Small Business Administration (SBA) Disaster Loan Program. The Senators plan to seek passage of the legislation when Congress returns to session.

    On October 15th, the SBA announced the Disaster Loan Fund had run out of money. Senator Tillis previously wrote an op-ed in The Hill urging Congress to return and quickly pass a disaster recovery package to replenish the fund, writing in part: “…Few Helene victims have flood insurance, so the SBA’s various disaster recovery programs are key to long-term recovery. By utilizing these programs, victims can access low-interest loans to replace lost property or repair or rebuild their homes or small businesses. The loans can also be used to provide a financial cushion for small businesses that face an economic loss in the months ahead due to the storm.” 

    “The SBA Disaster Loan Program running out of funds risks delays in processing the loans of those affected by Helene and Milton and their ability to get their lives back on track,” said Senator Tillis. “That is why I am leading legislation to replenish this fund when Congress returns to Washington, and I look forward to working across the aisle to pass a long-term disaster aid package that will provide additional resources to help make the victims of these hurricanes whole again.”

    “The citizens of Western North Carolina are some of the toughest and most resilient people in this country,” said Senator Budd. “As they recover and rebuild their communities, they must be able to access disaster loans from SBA. This recovery will take many years, and I look forward to working with my colleagues to cut through the delays and provide WNC with the resources they need as quickly as possible.” 

    “Hurricane Helene brought a level of devastation to South Carolina we haven’t seen since Hugo. With a natural disaster of this magnitude, Congress should take the opportunity to show leadership and help ease the pain of those who have lost everything,” said Senator Tim Scott. “Communities back home and in surrounding states have come together to recover, but it will take every possible effort to get us back to where we were.”

    “Hurricanes Francine, Helene, and Milton hit us hard, but Louisianans and Americans are resilient,” said Dr. Cassidy. “This funding is essential to help small businesses recover from these storms and support our local economies.”

    “We cannot allow frontline federal agencies, like the SBA, to run out of disaster relief funds. This is especially important in the wake of Hurricanes Helene and Milton which devastated Florida, North Carolina and communities across the Southeast U.S.,” said Senator Rick Scott. “I continue to call on Leader Schumer to immediately reconvene the Senate so we can fund disaster relief functions at FEMA, the SBA, USDA and other agencies to get folks what they need and deserve. I won’t stop fighting to get this done and am proud to join my colleagues to introduce a bill that funds SBA disaster loans and makes sure the federal government is a reliable partner as families continue their recovery.” 

    The Restoring an Economic Lifeline with Immediate Emergency Funding (Relief) Act would appropriate $550 million to fund the SBA Disaster Loan Program Account, which would provide $2.475B in lending capacity projected to last until the end of 2024.

    Read text of the bill HERE.

    MIL OSI USA News

  • MIL-OSI USA: SCHUMER ANNOUNCES FIVE NEW YORK TEAMS ADVANCE TO NEXT ROUND OF NATIONAL SCIENCE FOUNDATION “INNOVATION ENGINES” PROGRAM – CREATED BY SCHUMER’S CHIPS & SCIENCE LAW – TO COMPETE FOR UP TO $160 MILLION…

    US Senate News:

    Source: United States Senator for New York Charles E Schumer

    Last Year, Schumer-Supported And Binghamton University-Led Battery Research Hub Won Inaugural NSF Engines Competition, And This Year Even More From NY Are Competing For Funding As The Contest Launches For Second Year

    Schumer Says 5 NY-Based Projects Were Selected – The Most Of Any State – Ranging From University At Buffalo AI Research To Rochester’s Laser Lab To Cornell’s New Technology For Upstate Dairy Farmers And More; All To Spur New Innovations And Good-Paying Jobs

    Schumer: NY Is Leading The Charge To Boost American Innovation And Economic Leadership!

    U.S. Senate Majority Leader Chuck Schumer today announced that five New York teams have advanced to the next round of consideration for federal investment through the National Science Foundation’s Regional “Innovation Engines” Competition (NSF Engines), which was created by his CHIPS & Science Law.

    The five teams include projects ranging from the University of Rochester’s effort to develop cutting-edge laser technology, to the University at Buffalo-led AI for Health Equity, to Cornell University leading sustainable dairy innovation, to FuzeHub strengthening Upstate NY’s microelectronics manufacturing, to CUNY bolstering the tristate region’s biotechnology sector.  Schumer said these five projects in NY, along with a total of 71 teams across the country, will now submit full proposals to compete for up to $160 million in federal investment from the CHIPS & Science Law. You can read more about this year’s competition here. 

    “I created the NSF Regional Innovation Engines program in my CHIPS & Science Law with New York’s world-renowned universities and innovation ecosystem in mind. I’m thrilled to see five NY-based teams reach the next round in the competition for major federal investment to boost American innovation, new jobs, and economic leadership,” said Senator Schumer. “From Buffalo pioneering the next generation of AI to Cornell discovering new technology to help our Upstate dairy farmers to Rochester powering the future of laser development, these projects show how NY can lead our nation in developing the technology and jobs of the future. The NSF is saying what I have long known: keeping America at the cutting edge of innovation across industries begins in New York. This major federal funding can help translate more research and development at New York’s universities into new businesses and new, good-paying jobs across the state, boosting New York to further lead the charge in powering America’s economic preeminence.”

       

    More details on the five New York-based proposals can be found below:

    • The University of Rochester’s proposal, officially named “STELLAR: Advancing Laser Technologies in the Rochester NY/Finger Lakes Region,” is focused on establishing a diverse coalition of partners in the Rochester-Finger Lakes region to accelerate laser discovery, technological advancement, education, and company creation, drive manufacturing and boost workforce development in order to help recapture U.S. national competitiveness and strengthen our security. The STELLAR Engine will foster laser-oriented workforce development, particularly in underserved communities in Rochester and rural communities in the Finger Lakes, accelerate use-inspired R&D, entrepreneurship, and regional business development that will create jobs, build a laser science and technology talent pipeline, bolster the supply chain, and grow and sustain the region’s economy.
    • The University at Buffalo’s proposal, officially named “AI for Health Equity,” will work to utilize artificial intelligence to develop cutting-edge health care solutions, further highlighting Western New York’s leadership in building an AI innovation ecosystem, something Schumer has actively pushed for. The project aims to boost new start-up companies and help partners commercialize AI technology centered on health and wellness. This new technology will aid health care providers and serve as personal assistance to community members. Eventually, the project will expand so that its technology can serve communities beyond Western NY and across the country.
    • Cornell University’s proposal, officially named “Sustainable Utilization of Scalable Technologies & Advanced Innovation for NetZero NY (SUSTAIN Dairy),” aims to reduce waste, create new dairy products, and develop new rural and workforce development opportunities. It is one of five projects in this round that is focused on agriculture and the only project focused on dairy. This proposal aims to develop a holistic, science-based framework for achieving net zero by 2050 from farm to fork through an advanced dairy innovation ecosystem. With dairy manufacturing and family farms scattered throughout rural New York, achieving place-based innovation that builds community wealth is vital for the future success of Upstate New York.
    • CUNY-ARC’s proposal, officially named “Tech-Enabled, Bioinspired & Biomanufacturing Ecosystem (Tri-State Tech-Biome),” aims to address critical regional challenges by creating an ecosystem that accelerates the innovation and commercialization of bio-inspired technologies and materials derived from renewable feedstocks. This work is being done in coordination with industry players and leading research universities in the region.
    • FuzeHub’s proposal, officially named “A Materials Innovation Engine for Manufacturing Sustainability,” will work to mitigate the negative impacts on the environment from manufacturing industries by replacing toxic or scarce components with advanced materials. FuzeHub competed last year for this award as well and was asked to resubmit.

    “I proudly supported the CHIPS and Science Act to pave the way for critical investments like the National Science Foundation’s Regional Innovative Engines program,” said Congressman Joe Morelle. “With the University of Rochester’s STELLAR engine advancing to the next phase, we celebrate Rochester’s legacy in optics and photonics and our designation as a Regional Tech Hub. This milestone honors our community’s pioneering spirit, and I look forward to working with the NSF to elevate Rochester’s role in shaping the future of technology.”

    “I am very pleased that our Science, Technology, and Engineering for Laser and Laser Applications Research (STELLAR) proposal will be advancing to the next stage and can continue to compete for transformative funding focused on creating and growing a diverse, workforce-focused laser ecosystem in Rochester and Upstate New York,” said Thomas Brown, the Director of the University’s Institute of Optics. “Our proposal is the only one to address declining U.S. leadership in laser manufacturing, since lasers are a fundamental enabling technology underpinning the entire internet, chip manufacturing, and a host of other technologies. I particularly thank Senator Schumer for his vision in establishing the regional innovation engines program at the National Science Foundation through his landmark CHIPS and Science Act, our many academic, industry and community partners, and the NSF for their consideration of support.”

    “The NSF Regional Innovation Engines program, created through the CHIPS and Science Act, is strengthening our nation’s manufacturing sector and boosting our global competitiveness,” said Congressman Kennedy. “At the forefront of this progress are five New York based teams that have made it to the next round of the process to receive game-changing federal funding to build on the progress Western New York has made to become a national-leader in the tech space. These teams are making our state and region a leader in innovative manufacturing while creating good-paying union jobs.”

    “As the home of Empire AI, UB is dedicated to leveraging our game-changing artificial intelligence research to alleviate health disparities in underserved populations throughout our region,” said UB President Satish K. Tripathi. “With an NSF Engines award, UB will be able to harness our AI- informed health innovations to improve the health and well-being of individuals and families across Western New York, ultimately growing participation in our region’s economy. On behalf of all of us at the University at Buffalo, I would like to thank Majority Leader Schumer for his steadfast support of UB. In championing federal research funding for institutions of higher education, Senator Schumer is helping UB fuel impactful innovations, contribute measurably to economic development and enhance health outcomes across the lifespan.”

    Last year, Schumer helped the Binghamton University-led Upstate New York Energy Storage Engine win the esteemed competition in its inaugural year, bringing $15 million in federal funding immediately, with up to $160 million total over the life of the program from the NSF to supercharge growth and cutting-edge research in battery development and manufacturing in Upstate NY. The projects selected this year will build upon the inaugural cohort’s work developing new state-of-the-art technology.

    Schumer created the NSF’s Regional Innovation Engines Program in his CHIPS & Science Law as a program that falls under the newly created NSF Directorate of Technology, Innovation, and Partnerships.  Schumer proposed the creation of this Directorate originally in his bipartisan Endless Frontier Act, with a focus on delivering investment in research, workforce training, and entrepreneurship in key technology areas like AI, semiconductors, quantum computing, biotechnology, climate-smart research, advanced materials, and more. The NSF Regional Innovation Engines program catalyzes and fosters innovation ecosystems across the United States to promote and stimulate economic growth, job creation, and spur regional innovation.

    Each NSF Engine can receive up to $160 million over 10 years; actual amounts will be subject to a given NSF Engine’s status and overall progress, as assessed annually. The teams selected in this recent announcement will submit full proposals to NSF by February 2025, with final awards made next year, pending appropriations.  

    MIL OSI USA News

  • MIL-OSI Asia-Pac: Vigilance Department of RINL organises Walkathon at Visakhapatnam Steel Plant as Part of Vigilance Awareness Week 2024 at Visakhapatnam Steel Plan

    Source: Government of India (2)

    Posted On: 29 OCT 2024 5:07PM by PIB Delhi

    In alignment with the guidelines set by the Central Vigilance Commission (CVC), the Vigilance Department of Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant organized a Walkathon in association with the Sports Department at Col. CK. Naidu Ukku Stadium of Visakhapatnam Steel plant, today.

    This event was held as part of the observance of Vigilance Awareness Week 2024 at Visakhapatnam Steel Plant and saw enthusiastic participation from over 300 school children from various institutions of Ukkunagaram along with their parents for about 4 kilometre stretch in the Ukkunagaram township.

    Addressing the jubilant gathering, Dr. S. Karuna Raju, IAS, Chief Vigilance Officer (CVO), RINL underscored the significance of vigilance in various aspects of life. Dr. S. Karuna Raju encouraged students to be vigilant in their learning, conduct & behavior, Relationships, Social interactions, Safety & Security, Health, Finance, environment and at public places.

    Dr. S Karuna Raju, IAS, CVO, RINL emphasized the importance of cultivating honesty and maintaining integrity to curb corruption. He emphasized that today’s students are the leaders of tomorrow, destined to shape fields such as science & technology, education, industries, public services, governance and politics. He encouraged students to develop the habits of honesty and integrity from an early age, explaining how these values are crucial in building a fair and just society.

    Dr. S Karuna Raju, IAS, CVO, RINL inspired all to use technology responsibly and to always act with ethical principles, reinforcing that a corruption-free society begins with individual commitment to truth and transparency and these values are foundational to building a strong and principled nation.

    The Walkathon event successfully highlighted the role of awareness and integrity, reinforcing the message of vigilance and ethical conduct among the younger generation and public.

    ******

    MG

     

    (Release ID: 2069244) Visitor Counter : 5

    MIL OSI Asia Pacific News

  • MIL-OSI Security: Federal Court Permanently Shuts Down Indiana Tax Preparer and Company

    Source: United States Attorneys General 1

    The U.S. District Court for the Southern District of Indiana permanently enjoined an Indianapolis-area tax return preparer and his company yesterday from preparing federal tax returns for others and from owning or operating any tax return preparation businesses in the future.

    According to the civil complaint filed in the case, Juan Santiago resides in Lakeland, Florida, but travels to Indianapolis for tax preparation season to operate his tax preparation business, Madison Solutions LLC. Santiago failed to respond to the civil complaint filed against him, so the court entered the permanent injunction against him by default.

    The civil complaint alleges that Santiago and Madison Solutions used a variety of schemes to improperly reduce their customers’ tax liabilities or to obtain tax refunds to which the customers were not entitled. The complaint alleges that Santiago repeatedly placed false or incorrect items, deductions, exemptions or statuses on customers’ tax returns without their knowledge. For example, the complaint alleges that Santiago routinely elected head of household filing status and child tax credits for customers when they were otherwise not qualified for such status or credits. The complaint also alleges that Santiago reported fictitious businesses on customers’ returns and fabricated business expenses and income to fraudulently reduce taxable income.

    Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.

    Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.

    In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

    MIL Security OSI

  • MIL-OSI Economics: Gulf of Maine Wind Lease Sale is a Step Towards American Floating Wind Leadership 

    Source: National Ocean Industries Association – NOIA

    Headline: Gulf of Maine Wind Lease Sale is a Step Towards American Floating Wind Leadership 

    For Immediate Release: Tuesday, October 29, 2024NOIA .org
    Gulf of Maine Wind Lease Sale is a Step Towards American Floating Wind Leadership 
    Washington, D.C. – National Ocean Industries Association President Erik Milito issued the following statement after the Bureau of Ocean Energy Management (BOEM) held a wind lease sale in the Gulf of Maine. The auction resulted in two provisional winners on four lease areas and over $21.9 million in winning bids. Milito said: 
    “Today’s lease sale further opens the door for American floating wind leadership. This is a step to further developing and deploying innovative floating wind technology. With floating wind, we can harness wind resources that were previously out of reach, positioning the U.S. as a global leader. Our expertise and workforce can be at the forefront of building the first generation of floating wind projects worldwide.

    “Offshore wind is a transformative endeavor that brings substantial benefits to communities nationwide, creating new jobs and driving investments. From coast to coast, workers and companies in states far from the actual project sites are already contributing to the burgeoning American offshore wind industry. The Gulf of Maine projects will rely on this extensive network of skilled professionals and businesses, providing local residents with new energy opportunities and generating economic growth across the nation.”

    ##
    About NOIA The National Ocean Industries Association (NOIA) represents and advances a dynamic and growing offshore energy industry, providing solutions that support communities and protect our workers, the public and our environment.

    MIL OSI Economics

  • MIL-OSI Economics: A NEW SATELLITE AGREEMENT TO STRENGTHEN THE PAN-AFRICAN STRATEGIC PARTNERSHIP BETWEEN FRANCE AND MOROCCO

    Source: Thales Group

    Headline: A NEW SATELLITE AGREEMENT TO STRENGTHEN THE PAN-AFRICAN STRATEGIC PARTNERSHIP BETWEEN FRANCE AND MOROCCO

    • French President Emmanuel Macron set to meet with Moroccan King Mohammed VI on a state visit this week.
    • Morocco’s Panafsat and Thales Alenia Space sign memorandum of understanding to build a pan-African satellite telecommunications system.

    Rabat, October 29, 2024 – Moroccan company Panafsat and Thales Alenia Space, the joint venture between Thales (67%) and Leonardo (33%), today announced they had signed a memorandum of understanding (MoU) for the development of a Moroccan satellite communications system. The system will deliver very-high-throughput services (VHTS) to 26 African countries, 23 of them in French-speaking Africa, covering a combined population of around 550 million people over an area spanning 12 million square kilometers.

    The memorandum of understanding between the Moroccan operator Panafsat and Thales Alenia Space was signed today as part of the state visit of French President, Emmanuel Macron, to the Kingdom of Morocco,in the presence of Nadia Fettah Alaoui, Moroccan Minister of the Economy and Finance and Antoine Armand, French Minister of the Economy, Finance and Industry.

    Under the MoU, Thales Alenia Space will build a very-high-performance flexible satellite. Once in orbit, the satellite will deliver high-speed internet to accelerate the transformation of Africa’s digital landscape. This will be achieved by providing the connectivity required for high value-added services for the benefit of governments, businesses and individuals. It will also help bridge the digital divide in rural and isolated communities.

    Chairman and CEO of Panafsat Ahmed Toumi stated: “This project is the next key stage in the digital transformation process and the development of a digital economy in Morocco, and across Africa as a whole. It will change the lives of millions of people, eager to benefit from Internet access and all the essential services they need. We are delighted to be able to draw on the outstanding expertise and capabilities of a partner like Thales Alenia Space. We look forward to working together on this major project, which will bring significant benefits across the continent.”

    Thales Alenia Space CEO Hervé Derrey added: “It is a privilege for Thales Alenia Space to be chosen by Panafsat to deliver this new geostationary telecommunications satellite. The project will make a significant contribution to bridging the digital divide in rural areas, as well as boosting economic growth and strengthening digital sovereignty across the African continent. We are honored to embark on this long-term partnership with Africa’s foremost private operator, helping it to expand its capabilities and develop space services for the benefit of the entire continent.”

    The MoU is part of a roadmap developed by France and Morocco encompassing digitalization initiatives such as Digital Economy for Africa (DE4A) and Digital Morocco 2030, as well as the hosting of the FIFA World Cup 2030 in Morocco.

    About Panafsat

    Panafsat SA is a Moroccan private equity firm with Casablanca Finance City (CFC) status.

    It was set up by Ahmed Toumi, an elected board member of the ITU (International Telecommunication Union) Radio Regulation Board from 1998 to 2002. Ahmed Toumi was also Chairman and Director-General of ITSO-Intelsat (the International Telecommunications Satellite Organization) from 2001 to 2009. He was awarded the Order of the Throne Officer class. Panafsat is developing Morocco’s first geostationary satellite to provide Internet access for 26 African countries. The project will contribute to the digital transformation of Africa in line with regional and global objectives.

    Press contact

    Kaoutar HAKAM            Tel: +33 7 79 80 39 26               kaoutar.hakam@panafsat.ma

    ABOUT THALES ALENIA SPACE

    Drawing on over 40 years of experience and a unique combination of skills, expertise and cultures, Thales Alenia Space delivers cost-effective solutions for telecommunications, navigation, Earth observation, environmental management, exploration, science and orbital infrastructures. Governments and private industry alike count on Thales Alenia Space to design satellite-based systems that provide anytime, anywhere connections and positioning, monitor our planet, enhance management of its resources and explore our Solar System and beyond. Thales Alenia Space sees space as a new horizon, helping to build a better, more sustainable life on Earth. A joint venture between Thales (67%) and Leonardo (33%), Thales Alenia Space also teams up with Telespazio to form the parent companies’ Space Alliance, which offers a complete range of services. Thales Alenia Space posted consolidated revenues of approximately €2.2 billion in 2023 and has around 8,600 employees in 9 countries, with 16 sites in Europe and a plant in the US. www.thalesaleniaspace.com

    THALES ALENIA SPACE – PRESS CONTACTS

    Tarik Lahlou                    Tel: +33 (0)6 87 95 89 56           tarik.lahlou@thalesaleniaspace.com

    Catherine des Arcis       Tel: +33 (0)6 78 64 63 97           catherine.des-arcis@thalesaleniaspace.com

    Cinzia Marcanio             Tel.: +39 (0)6 415 126 85           cinzia.marcanio@thalesaleniaspace.com

    MIL OSI Economics

  • MIL-OSI United Kingdom: National Living Wage to increase to £12.21 in April 2025

    Source: United Kingdom – Executive Government & Departments

    Low Pay Commission recommendations accepted in full

    The Government has today announced its acceptance of the Low Pay Commission’s (LPC) recommendations on the rates of the National Minimum Wage (NMW), including the National Living Wage (NLW). The rates which will apply from 1 April 2025 are as follows:

    NMW Rate Increase (£) Percentage increase
    National Living Wage (21 and over) £12.21 £0.77 6.7
    18-20 Year Old Rate £10.00 £1.40 16.3
    16-17 Year Old Rate £7.55 £1.15 18.0
    Apprentice Rate £7.55 £1.15 18.0
    Accommodation Offset £10.66 £0.67 6.7

    The LPC’s recommendations meet the remit set by the Government. The recommended NLW rate is expected to equal two-thirds of median earnings and to have the highest real value in the history of the UK’s minimum wage. The increase in the 18-20 Year Old Rate narrows the gap between that and the NLW, in anticipation of the adult rate being extended to 18 year olds in future years.

    Baroness Philippa Stroud, Chair of the LPC, said:

    The Government have been clear about their ambitions for the National Minimum Wage and its importance in supporting workers’ living standards. At the same time, employers have had to deal with the adult rate rising over 20 per cent in two years, and the challenges that has created alongside other pressures to their cost base.

    It is our job to balance these considerations, ensuring the NLW provides a fair wage for the lowest-paid workers while taking account of economic factors. These rates secure a real-terms pay increase for the lowest-paid workers. Young workers will see substantial increases in their pay floor, making up some of the ground lost against the adult rate over time.

    The data show some signs of employers finding it harder to adapt to minimum wage increases. The tightening of the labour market since the pandemic has unwound, but the overall picture is similar to 2019.The economy is expected to grow over the next year, although productivity growth remains subdued.

    We look forward to continuing our work next year as the detail of the Make Work Pay plan is elaborated upon. The NMW is a major part of the Government’s ambitions for the future of the labour market, and it is important that it continues to be informed by the expertise and consensus-building the LPC provides.

    The LPC’s recommendations are based on extensive consultation with employers, workers, representatives of both groups and other expert bodies, as well as a series of regional visits across the UK. They reflect unanimous agreement among Commissioners, including those representing workers, employers and independent experts.

    The recommended increase in the 16-17 Year Old Rate restores that rate to its original value relative to the adult minimum wage. In line with previous recommendations, the Apprentice Rate will remain equal to the 16-17 Year Old Rate.

    Notes for editors

    1. The LPC’s recommendations were submitted to the Government on 25 October 2024. The Government has today announced acceptance of those recommendations.

    2. The LPC will on Wednesday 30 October publish its letter of recommendations to the Government and a short report summarising the main evidence Commissioners relied on to make those recommendations. The LPC’s full annual report will be laid before Parliament and published in the new year.

    3. The Government’s remit to the LPC, which determines the Commission’s work through the year, was published in July and is available here.

    4. The LPC’s recommended NLW rate is intended to meet the Government’s ambition for this rate to reach at least two-thirds of median earnings in 2024.

    5. For the first time, the Government asked the LPC to take into account the cost of living, including expected trends in inflation up to March 2026, when recommending the NLW. The LPC expects its recommended rate to represent a real-terms increase across the whole of the period to March 2026, using any major inflation measure, thereby protecting low-paid workers’ living standards.
    6. We last published projections in September of the NLW rate needed to achieve the level of two-thirds of median earnings. At the time, our projected range was between £11.82 and £12.39, with a central estimate of £12.10.
    7. Our assessment of and projections for median earnings rely on the ONS’s Annual Survey of Hours and Earnings (ASHE) and Average Weekly Earnings (AWE) series. These are supplemented by HMRC’s Real Time Information (RTI) data and wage forecasts from the Bank of England and HM Treasury’s Independent Panel of Economic Forecasts.
    8. The National Living Wage (NLW) is currently the statutory minimum wage for workers aged 21 and over. This age threshold came down from 25 to 23 in April 2021 and from 23 to 21 in April 2024.
    9. Different minimum wage rates continue to apply to 18-20 year olds, 16-17 year olds and apprentices aged under 19 or in the first year of an apprenticeship. The Government has stated its ambition to reduce the NLW age threshold from 21 to 18; this follows the LPC’s own stated ambition and advice, as set out in the publication The National Minimum Wage Beyond 2024. The LPC will consult next year on the pathway to achieving this goal.
    10. Rates for workers aged under 21, and apprentices, are currently lower than the NLW to reflect lower average earnings and higher unemployment rates. International evidence also suggests that younger workers are more exposed to employment risks arising from the pay floor than older workers. Unlike the NLW (where the possibility of some consequences for employment have been accepted by the Government), the LPC’s remit requires us to set the rates for younger workers and apprentices as high as possible without causing damage to jobs and hours.
    11. The National Living Wage is different from the UK Living Wage and the London Living Wage calculated by the Living Wage Foundation. Differences include that: the UK Living Wage and the London Living Wage are voluntary pay benchmarks that employers can sign up to if they wish, not legally binding requirements; the hourly rate of the UK Living Wage and London Living Wage is based on an attempt to measure need, whereas the National Living Wage is based on a target relationship between its level and average pay; the UK Living Wage and London Living Wage apply to workers aged 18 and over, the National Living Wage to workers aged 23 and over. The Low Pay Commission has no role in the UK Living Wage or the London Living Wage.
    12. The Accommodation Offset is an allowable deduction from wages for accommodation, applicable for each day of the week. In April 2025 it will increase to £10.66 per day.
    13. For an NLW worker working 37.5 hours per week, the increases announced today will increase their annual gross pay by £1,505.54 and their monthly gross pay by £125.46.
    14. The Low Pay Commission is an independent body made up of employers, trade unions and experts whose role is to advise the Government on the minimum wage. The rate recommendations introduced today were agreed unanimously by the Commission.
    15. The current Low Pay Commissioners are: Baroness Philippa Stroud (Chair), Nigel Cotgrove, Matthew Fell, Andrew Goodacre, Louise Fisher, Professor Patricia Rice, Simon Sapper and Professor Jonathan Wadsworth.
    16. Baroness Philippa Stroud can be contacted via the Low Pay Commission’s press office (07341 098734).

    Updates to this page

    Published 29 October 2024

    MIL OSI United Kingdom

  • MIL-OSI United Nations: Experts of the Human Rights Committee Commend Ecuador’s National Councils for Equality, Ask about State of Emergency Restrictions and Military Management of Prisons

    Source: United Nations – Geneva

    The Human Rights Committee today concluded its consideration of the seventh periodic report of Ecuador on how it implements the provisions of the International Covenant on Civil and Political Rights, with Committee Experts commending the State’s national councils for equality, and raising issues concerning restrictions imposed under the state of emergency and the deployment of military personnel to manage State prisons. 

    A Committee Expert welcomed that the State party had established national councils for equality.  How had the initiatives of the National Council for Gender Equality contributed to promoting gender equality?

    Another Committee Expert cited reports that freedom of movement and assembly had been considerably curtailed under the state of emergency, and that vulnerable sectors of society had been disproportionately affected by restrictions.  How would the State party ensure that measures taken under the state of emergency were strictly proportionate, time-bound and necessary?

    Under the state of emergency, military personnel had been deployed to administer prisons, the Expert noted.  Was the State party considering gradually withdrawing the military from prisons?  There had been complaints of torture and abuse of authority, as well as murders and arbitrary detention by military personnel in prisons.  Had the State party investigated these and prosecuted any personnel?

    Juan Carlos Larrea, Attorney General of State of Ecuador and head of the delegation, said that the Office of the Attorney General had carried out constant training for members of the national police and armed forces on international human rights and humanitarian law, the use of force, and the rights of persons deprived of liberty. The delegation added that the State party was working to strengthen training for prison staff.  It planned to train almost 7,000 staff over a five-year period.

    The delegation said the National Council for Gender Equality had a mandate to mainstream and monitor public policies on gender equality and promote the rights of women and persons from the lesbian, gay, bisexual, transgender and intersex community.  Some of the goals of the national agenda on equality were to reduce maternal and child mortality and teenage pregnancy, and there had been progress in these areas.

    The delegation said a state of emergency had recently been implemented to confront spiralling acts of violence, terrorism, internal armed conflict, and the prison crisis.  All measures implemented under a state of emergency needed to be time bound and to conform with principles of necessity and proportionality, and all states of emergency were monitored by the Constitutional Court.

    Formerly, Ecuador’s prisons were in effect being run by organised gangs due to a lack of oversight, creating a crisis in the prison system, the delegation said.  The State party had implemented the “Phoenix Plan” to regain control and safety in all prisons.  The armed forces were ensuring physical security in only eight of the 35 adult detention centres in the State. 

    The delegation also said armed forces personnel had been involved in 72 cases of habeas corpus, with personnel cleared of wrongdoing in 68 cases and the remaining cases still being investigated.  A specialised prosecutor’s unit had been established to investigate cases of harm or death caused by the armed forces and the prison service.

    In concluding remarks, Mr. Larrea said Ecuador was fully committed to implementing international human rights law and promoting respect for human rights.  It was facing challenges in the field of human rights, including spiralling international organised crime, but remained committed to addressing these.  The delegation hoped that the Committee would provide concrete recommendations that addressed the complex challenges Ecuador was facing.

    Tania María Abdo Rocholl, Committee Chairperson, in concluding remarks, said the dialogue had addressed historic human rights violations, measures to combat terrorism, reproductive rights, the independence of the judiciary, and the situations of human rights defenders and indigenous peoples, among other topics.  The Committee was committed to its mandate of guaranteeing the highest level of implementation of the Covenant in Ecuador.

    The delegation of Ecuador was made up of representatives of the Ministry for Women and Human Rights; National Council for Gender Equality; National Service for the Comprehensive Care of Adults Deprived of Liberty and Adolescent Offenders; Ministry of Foreign Affairs and Human Mobility; Office of the Attorney General of the State; Ministry of National Defence; and the Permanent Mission of Ecuador to the United Nations Office at Geneva.

    The Human Rights Committee’s one hundred and forty-second session is being held from 14 October to 7 November 2024.  All the documents relating to the Committee’s work, including reports submitted by States parties, can be found on the session’s webpage.  Meeting summary releases can be found here.  The webcast of the Committee’s public meetings can be accessed via the UN Web TV webpage.

    The Committee will next meet in public at 10 a.m. on Monday, 4 November, to hear the presentation of the progress report of the Committee’s Special Rapporteur on Views.

    Report

    The Committee has before it the seventh periodic report of Ecuador (CCPR/C/ECU/7).

    Presentation of the Report

    JUAN CARLOS LARREA, Attorney General of State of Ecuador and head of the delegation, said Ecuador had demonstrated its commitment to the promotion and protection of human rights through the ratification of the 27 United Nations instruments on human rights; the open invitation to the Rapporteurs and Special Procedures of the United Nations and the Inter-American system; timely and continuous submission of periodic reports; and the establishment of the national mechanism for the implementation, follow-up and monitoring of Ecuador’s international human rights recommendations.

    Ecuador had implemented public policies to comply with the provisions of the Covenant.  Notable achievements over the reporting period included the creation of the Ministry of Women and Human Rights; the decriminalisation of abortion in cases of rape; the implementation of the second phase of the spotlight initiative for the eradication of gender-based violence; and actions taken to improve the situation of persons deprived of liberty. 

    The executive had trained 25,844 people on the right to life, freedom of expression and peaceful protest, due process, the right to liberty, free mobility, equality and non-discrimination.  The judiciary had held training events on human rights which benefited 69,624 officials, professional associations and universities.  Similarly, the Office of the Attorney General had carried out constant training for members of the national police and armed forces on international human rights and humanitarian law, the use of force, and the rights of persons deprived of liberty. 

    The organic law on communication created a mechanism to protect the life and integrity of journalists and to develop indicators on murder, kidnapping, forced disappearance, arbitrary detention and torture of journalists.  The State was also developing protocols for their protection and to ensure prevention. So far in 2024, 97 alerts of aggression against media workers had been received.  In response to these, the Communication Council had carried out 78 protective actions, in addition to security workshops in conjunction with the national police and armed forces. 

    The National Council for the Equality of Peoples and Nationalities had drawn up the agenda for the equal rights of indigenous nationalities and peoples, the Afro-Ecuadorian people and the Montubio people. Representatives of organizations and civil society were consulted in its development.  In 2023, the National Council held 14 territorial conferences with members of organizations of Afro-Ecuadorian communities to examine issues related to the Decade for People of African Descent at the national and international levels and move forward with proposals for its fulfilment, from which support for the declaration of a second Decade was concluded.

    ARIANNA TANCA MACCHIAVELLO, Minister for Women and Human Rights, said the Ministry was dedicated to preventing, addressing, repairing and eradicating violence against women, children and adolescents.  The Ministry had 45 comprehensive protection services established within the framework of legislation and the national plan to prevent and eradicate violence against women 2020-2030.  There were State-run centres providing free psychological care, legal advice and social work services to victims of violence against women, and the State had cooperation agreements with shelters and comprehensive care centres.

    The recent establishment of the technical standard to mainstream a gender approach in all public policies and actions reinforced the State’s efforts.  The National Council for Gender Equality had formulated the national agenda for gender equality 2021-2025.  Further, in January 2024, the organic law for equal pay between women and men was approved, and 18 September was declared “Equal Pay Day” to raise awareness in society about the gender pay gap.  In May 2024, a law on reparation for relatives of victims of femicide was approved, which guaranteed family members the right to comprehensive reparation, scholarships and financial aid for children who were orphaned, and to medical and psychiatric care and counselling. 

    Ecuador has prioritised the elimination of sexual abuse and violence against children and adolescents in schools.  Among the main measures adopted were the national plan on the creation of protective educational environments and the public policy for the eradication of sexual violence in education. 

    The State Attorney General’s Office had a policy promoting access to justice for the lesbian, gay, bisexual, transgender and intersex community, which established guidelines for the investigation of hate crimes and discrimination against this group.  In addition, the diversity action plan 2022-2025 was adopted, which established 148 actions and 151 indicators to improve living conditions and guarantee equal rights for this community in Ecuador.  In 2023, a measure was introduced for the identification and prosecution of people and entities who discriminated against others based on sexual orientation, gender identity or expression.  The Ministry of Public Health had prepared a manual of good practices in comprehensive health care for this community.  From 2019 to June 2024, more than 39,000 services were provided for people who self-identified as lesbian, gay, bisexual, transgender and intersex.

    The organic law on human mobility determined the procedures to be followed in the event of inadmissibility at borders, deportation and expulsion, taking into account international standards on non-refoulement.  The extraordinary regularisation process for Venezuelan migrants, which began on 1 August 2022 and was still in force, had provided more than 97,000 exceptional temporary residence visas, including 871 visas for unaccompanied or separated children. Ecuador had been awarded for its good practices regarding recognition of sexual diversity and gender identity within refugee status determination procedures.

    Ecuador was committed to the protection, respect and promotion of human rights, in particular within the framework of the obligations assumed under the Covenant.

    Questions by Committee Experts

    A Committee Expert welcomed measures adopted by Ecuador in recent years to tackle serious human rights issues in the country. What measures had been adopted by the State party to implement the Views of the Committee concerning the cases of Isaías Dassum v. Ecuador and Pérez Barriga et al. v. Ecuador.  Had the State party established a procedure for implementing the Committee’s Views?  Had courts other than the Constitutional Court expressly referred to the Covenant’s provisions?  Could the delegation provide updated figures on training for public officials on the Covenant?  What was the situation of the Ombudsperson’s Office?  Did it have sufficient resources to fulfil its mandate? 

    Vulnerable sectors of society had reportedly been disproportionately affected by restrictions imposed under the state of emergency.  What safeguards were in place in this regard?  Under the state of emergency, military personnel had been deployed to administer prisons.  Was the State party considering gradually withdrawing the military from prisons? There had been complaints of torture and abuse of authority, as well as murders and arbitrary detention, by military personnel in prisons.  Had the State party investigated these and prosecuted any personnel? 

    The Constitutional Court had declared the state of emergency as being unconstitutional in 2023.  Why had the executive continued to maintain it, contrary to the Court’s decision?  Was the current state of emergency being monitored by the Court?  There were reports that freedom of movement and assembly had been considerably curtailed under the state of emergency.  How would the State party ensure that measures taken under the state of emergency were strictly proportionate, time-bound and necessary?

    Another Committee Expert asked for information on cases contained within the Truth Commission’s final report on historic human rights violations that had not been concluded.  Reportedly, a large percentage of cases had not been concluded 14 years after the report was issued.  How many persons had been provided with reparations?

    What court cases had been ruled on regarding terrorism in the last three years?  How was the State party ensuring fair trial guarantees for persons accused of terrorism? Around 35,000 people had reportedly been arrested this year alone on charges of terrorism.

    A Committee Expert welcomed that the State party had established national councils for equality.  What impact had these councils had in promoting equality and preventing discrimination?  How had the initiatives of the National Council for Gender Equality contributed to promoting gender equality?  The State party had provided training for members of the judiciary on sexual orientation and gender identity.  Was this effective in combatting discrimination against lesbian, gay, bisexual, transgender and intersex persons?  What impact had measures to improve health care for lesbian, gay, bisexual, transgender and intersex persons had?  What measures were in place to protect and improve the rights of transgender and intersex persons, including children?

    The police had registered 15,000 complaints of violence against women in 2021.  Had inquiries into these cases contributed to combatting impunity and ensuring reparation for victims?  What progress had been achieved by the plan to bolster training regarding violence against women?  What would be done to speed up the legislative process for cases of violence? How would the State party ensure that women who were victims of violence had access to remedy and appropriate protection mechanisms, including psychosocial and rehabilitation services?

    Another Committee Expert asked about the State party’s position on the United Nations’ human rights protection system.  The Expert welcomed that reform of the Democracy Code in 2020 had introduced gender parity on election lists, and said that there had been positive progress in the implementation of legislation to tackle gender-based violence in the political sphere.  However, there were 23 cases of violence against women politicians between 2022 and 2023, including two femicides, one of a female mayor.  How was the State party working to combat such violence and promote women’s participation in politics, including the participation of minority women? 

    Women’s representation in political bodies continued to be limited, particularly for minority women.  What awareness raising campaigns were in place to address stereotypes concerning women’s role in society?  Could the delegation comment on the implementation of the law on equal opportunities and the “purple economy”?

    There were reports of violence against indigenous peoples by the armed forces in the northern border area; had these been investigated and had cases been prosecuted?  Would the State party provide material reparation to indigenous communities affected by violence and the actions of resource sector companies?

    One Committee Expert said there were concerns regarding gaps in the protection system for the children of victims of violence. What steps had been taken to protect vulnerable children and to guarantee a sustainable budget for support payments for victims, so that families of victims could benefit? 

    The Committee was concerned by the high number of girls being subjected to sexual abuse, rape and incest.  Violence against girls in schools was reportedly endemic and girls were discouraged from reporting sexual attacks.  What measures were in place to protect vulnerable girls against such attacks?  What sanctions were imposed for sexual offences and what reparations were provided to girl victims?  Were vulnerable girls’ families provided with legal assistance? 

    Ecuador had expanded access to abortion for victims of sexual assault in a new law.  Would the State party decriminalise abortions in the case of malformation of the foetus?  Had the State party organised education for women and girls regarding contraception and established family planning counsellors within health care facilities? Had the State party approved guidelines for therapeutic abortion care and taken action to inform society regarding the law on abortion and medical centres where abortions were available? How did the State party ensure that there were health care professionals who were able to provide safe abortions in all remote and rural areas?  The Committee noted a Constitutional Court ruling calling on the State party to not prosecute health care professionals who performed abortions.  Had this been implemented?  How was the State party protecting the confidentiality of women who sought abortions?

    Responses by the Delegation

    The delegation said the Truth Commission had the mandate to investigate serious human rights violations occurring between 1983 and 1998.  The Commission’s final report documented enforced disappearances and other violations occurring during that period.  The Ombudsman had been called on to implement reparations for the victims of these violations; more than 150,000 direct and indirect victims had benefited from reparations.  Two criminal cases addressing historic human rights violations had been prosecuted. 

    A law preventing sexual violence and harassment in education had been developed and a national plan for addressing such violence had been implemented.  After victims of violence and harassment were identified, they were referred to mental health services.  The State party promoted the best interests of the child and their right to be informed in all matters affecting them.  Eleven protocols had been issued addressing sexual crimes against minors.

    A law permitting abortion in cases of rape was implemented in 2022 and inter-institutional mechanisms were set up to ensure that the law was properly applied.  Victims of rape did not need to file a legal complaint to access abortions. The prosecution was obliged to provide victims of rape with information on accessing abortions, and all health care facilities were required to provide information immediately on access to abortion in cases of rape.  The State party provided free and confidential guidance on abortions, and health care providers were required to protect the confidentiality of persons who sought abortions.

    The National Council for Gender Equality had a mandate to mainstream and monitor public policies on gender equality and promote the rights of women and persons from the lesbian, gay, bisexual, transgender and intersex community.  The national agenda on equality addressed the barriers faced by various groups of minority women.  Some of the goals of the agenda were to reduce maternal and child mortality and teenage pregnancy, and there had been progress in these areas.  Guidelines had been developed to ensure that vulnerable women had access to credit lines and the digital economy.  The State party was also promoting rural women’s access to land titles.  The police had carried out capacity building programmes addressing gender stereotypes and promoting positive masculinity.

    Formerly, Ecuador’s prisons were in effect being run by organised gangs due to a lack of oversight, creating a crisis situation in the prison system.  The State party had implemented the “Phoenix Plan” to regain control and safety in all prisons and promote the rehabilitation of all those deprived of liberty.  It was working to improve prison infrastructure to address overcrowding and was currently building two new prisons. 

    Protocols were in place to ensure cooperation between the armed forces and the national police in the management of prisons.  The armed forces were ensuring physical security in only eight of the 35 adult detention centres in the State.  The State party was working to strengthen training for prison staff.  It planned to train almost 7,000 staff over a five-year period.  This year, the State party would almost entirely eliminate mixed gender detention to prevent gender-based violence in prisons.

    Ecuador was fully committed to cooperating with the United Nations human rights protection system and was grateful for the support and advice that it offered to the State.  The Constitution allowed for the direct and immediate application of international human rights instruments ratified by the State. Regarding the case of Isaías Dassum v. Ecuador, investigations had been carried out and resolved in favour of the individual involved and reparation had been provided, in compliance with the Committee’s recommendations.

    Ecuador’s President had the ability to impose a state of emergency in cases of violence, threats to the State, and natural disasters. All measures implemented under a state of emergency needed to be time bound and to conform with principles of necessity and proportionality, in line with the Covenant.  A state of emergency had recently been implemented to confront spiralling acts of violence, terrorism and internal armed conflict, and the prison crisis.  All states of emergency were monitored by the Constitutional Court, which had questioned the restriction of rights in certain contexts.  The State party’s duty was to ensure that its people were able to live in a safe society free of corruption.

    The national allowance for orphans whose mothers had been murdered was a monthly allowance indexed to the monthly basic income. So far, 486 allowances had been provided to children.

    An agreement had been reached to strengthen relations with indigenous peoples and to prevent violence against indigenous communities.  There was also a protocol that aimed to protect indigenous peoples in voluntary isolation.

    Follow-Up Questions by Committee Experts

    A Committee Expert said there appeared to be a large gap between the legal and institutional framework on human rights and the situation on the ground.  The rate of femicide was on the rise and women were increasingly becoming victims of enforced disappearance, leading to an increase in orphaned children.  Had drug trafficking groups become so strong that authorities could not control them?  Why was the State party not sufficiently reacting to the prevailing environment of impunity?  What measures were in place to protect vulnerable groups, including children?

    Another Committee Expert said that the Prosecution Service had launched over 200 investigations into torture and abuse of authority by the police force.  Had any rulings been issued for these cases?

    One Committee Expert asked about the role of victims of past human rights violations in creating the Museum of Memory. Why had their proposals regarding the location of the Museum not been taken on board?  Had the prison population increased or decreased as a result of the security measures being implemented by the State party?  Were the prisons in which the armed forces were present the largest and most modern?  Were there plans to reduce the number of prisons administered by the armed forces?  The Expert commended the State party’s significant efforts to train prison guards. What was the current ratio of guards to prisoners?

    A Committee Expert said the allowance for children whose mothers were victims of femicide was a good measure, but all orphaned children needed to receive it.  What were the prospects for decriminalising abortions in cases other than rape or where the mother’s life was at risk?  Did the State party support access to contraception for low-income families?

    Another Committee Expert asked whether allowances given to children whose mothers were murdered were the same regardless of the number of children in the family.

    Responses by the Delegation

    The delegation said the Government would implement the single register on violence by the start of next year.  It had been providing training to public officials on the handling of sensitive information within this register.  The register would allow the State party to gain insights into patterns of violence in different areas of the country, as part of its efforts to eradicate gender-based violence.

    There was a five-year training plan for prison officials and 60 million United States dollars had been invested in improving the prison system this year.  Improving the national rehabilitation system was a priority for the Government.

    Questions by Committee Experts

    A Committee Expert asked about measures to prevent torture and ill treatment by the police against detained persons.  How did the State party ensure transparency in investigations of complaints against the police related to torture?  What redress was provided to victims of torture? What measures were being considered to strengthen human rights training for the police?

    The Transitional Council for Citizen Participation and Oversight was endowed with extraordinary powers allowing for the dismissal and appointment of judges and magistrates at the discretion of the executive branch, violating principles of judicial independence.  It appointed the Attorney General, judges of the National Court of Justice, and 137 other oversight authorities, and had reportedly removed judges and judicial officials who did not align with the political interests of the Presidency.  What mechanisms were in place to prevent conflicts of interest and ensure that the Council complied with international standards on judicial independence?  How was transparency and the participation of citizens ensured in the Council’s evaluations of public authorities?  When did the mandates of the Attorney General and the members of the Council expire?  Why did the Council still have “transitional” status?

    What mechanisms were in place to ensure that migrants at the northern border had access to basic services such as health, education and employment?  Were there programmes to protect migrant women and children from exploitation and abuse? How was discrimination against migrants addressed in regularisation and asylum processing?  Was the State party monitoring and evaluating asylum policies on the northern border?

    The Ecuadorian Government had reportedly failed to implement adequate protection measures for human rights defenders, allowing threats and attacks against these people to go unpunished and exposing them to the constant risk of violence and intimidation.  Had the State party strengthened the legal framework for protecting human rights defenders?  Were human rights defenders involved in developing policies that affected their work? What protection mechanisms were in place for at-risk persons?  Investigative journalists Anderson Boscán and Mónica Velásquez faced threats and were forced into exile in Canada after making complaints about Attorney General Diana Salazar’s alleged connections to organised crime networks.  Why were these persons’ security being jeopardised?

    One Committee Expert asked about the entity that carried out investigations into the excessive use of force.  How many officials had been prosecuted for the excessive use of force?  A 2024 decree called on the armed forces to participate in controlling internal order. Had the State party held a referendum on this decree, and did it comply with the Covenant?

    How did Ecuador guarantee the principle of non-refoulement?  What measures were in place to safeguard the physical security of asylum seekers and refugees?  Restrictions on the freedom of movement had limited migrants’ ability to find jobs. Curfews had affected migrants in street situations, who did not have a place to stay.  Had legal aid or counsel been provided by the State to defend asylum seekers’ rights in regularisation processes?  How was the State party ensuring access to justice for migrants who were victims of extortion?

    Indigenous peoples had been adversely affected by mining projects, including illegal mining linked to organised crime.  What consultation processes had been held regarding these projects?  The State party had adopted decrees but had yet to adopt a law on prior consultation and free, informed and prior consent regarding mining and resource projects. Would the State party speed up the adoption of such a law?  Oil spills had affected the environment and the health of indigenous peoples.  What preventive measures had been taken regarding oil spills and what reparations had been provided to affected persons?

    A Committee Expert said the Committee was concerned about conditions in places of detention and overcrowding, a serious and persistent problem in prisons.  Detainees lacked access to food, water and health services, and overcrowding also increased tensions between inmates and made the management of prisons difficult. Since January 2024, the overall prison capacity had increased by 7.8 per cent, but there were still 18 prisons with critical overcrowding at over 120 per cent capacity.  What measures were in place to address the issue?  Had the State party considered dismantling mega prisons?

    The Committee noted significant efforts by the State party to address the issue of human trafficking through training of judicial actors.  What were the prospects of establishing a specialised office addressing trafficking within the prosecution?  Had compensation been provided to victims of trafficking?  How were victims protected from criminal liability?  How did the State party promote the social inclusion of victims, protect them from revictimisation, and support their access to the labour market?

    Another Committee Expert said there had been more than 600 deaths of detainees between 2018 and 2023.  In March 2024, a violent riot in a prison had led to the death of 12 detainees, while another riot in July led to 18 deaths.  Two prison wardens had recently been murdered. Organised crime had reportedly infiltrated prisons, inciting these events.  What measures were in place to regain control of the prison system and promote the basic rights of prisoners?  How many deaths had occurred in prisons this year, and were there any deaths resulting from torture or ill treatment?  Would the State party grant access to prisons for the national preventive mechanism?

    The Committee was concerned about the reported penetration of organised crime into the judiciary.  Members of the judiciary were allegedly paid bribes to give shortened prison sentences to members of organised crime groups.  What investigations had been carried out into such allegations?  How did the State party ensure the integrity of investigations into corruption?  What was the disciplinary structure for judges and how was their independence guaranteed?

    In 2018, three journalists were kidnapped and murdered by organised crime and four journalists were murdered in 2022.  What investigations had been carried out into these events?  The judicial system was reportedly used as a tool for censorship against journalists. How did the State party ensure that journalists could carry out their work without interference?

    One Committee Expert said the Communication Council had been involved in promoting diversity in the media and in organising training on media workers’ rights.  What results had been obtained by training programmes?  Between July and December 2021, there were 62 reports of harassment against journalists.  What measures were in place to ensure that threats against journalists were properly investigated and punished?  During 2022 demonstrations, at least nine deaths were recorded and close to 200 people were arrested.  How did the State party guarantee the right to peaceful assembly and ensure justice for victims of excessive force by State officials?

    Was the law issued in 2022 on the use of force and firearms by the police in line with the Covenant?  Was civil society involved in the drafting of the law?  How was the law being implemented?  Did the State party provide training programmes on the law to police?

    How had the State party guaranteed access to justice for indigenous peoples in indigenous languages?  What obstacles were there in providing legal aid to indigenous peoples?  What measures were in place to strengthen the indigenous legal system and to ensure coordination between indigenous and regular legal systems?

    In some regions, authorities did not recognise the legal status of indigenous peoples.  Farmers who were defending their lands were reportedly perceived as criminals and harassed by authorities.  How was the State party preventing such harassment?

    Responses by the Delegation

    The delegation said training had been provided for around 500 prosecution staff and over 2,000 civil servants on investigating violent deaths of women and girls since 2022.  This year alone, over 500 members of the armed forces and other civil servants had participated in the prosecution office’s training on international human rights law. 

    The armed forces were ensuring internal security in the context of the high level of armed conflict occurring in the State, caused by organised gangs.  The activities of the armed forces strictly complied with human rights standards, regulations on the use of force and firearms, and principles of necessity and proportionality.  The State party was constantly updating provisions on the use of force in line with international standards.  During the first six months of this year, the murder rate had fallen significantly and criminal structures had been dismantled.

    The armed forces’ activities had helped to reduce criminal activities within the prison system.  The armed forces allowed oversight visits to prisons by Government bodies.  Members of the armed forces were trained in human rights, the use of force, and the protection of vulnerable persons.  Accusations of human rights violations by members of the armed forces were investigated in cooperation with public bodies.  Armed forces personnel had been involved in 72 cases of habeas corpus, with personnel cleared of wrongdoing in 68 cases and the remaining cases still being investigated.  A specialised prosecutor’s unit had been established to investigate cases of harm or death caused by the armed forces and the prison service.

    The State party was strengthening the national framework for the prevention of terrorism.  It was receiving international support to bring its legislation on terrorism in line with international standards.

    Ecuador ensured full reparation for direct and indirect victims of homicide, including through the law on support for family members of victims of femicide.  The public policy on reparation was being updated to strengthen support for victims’ relatives through consultations with civil society.  Support payments for orphaned children whose parents were murdered were increased progressively depending on the number of children in the family.

    State legislation protected the activities of human rights defenders.  An inter-institutional board was developing a comprehensive policy on the protection of human rights defenders and carrying out an analysis of threats faced by human rights defenders.  The State provided protection to victimised human rights defenders involved in court proceedings through the witness protection programme.  Regional councils of human rights defenders had been established.

    The Government had delineated certain areas as “protected land” where mining activities could not be carried out.  It had provided training on promoting the human rights of indigenous peoples and tackling their exploitation.  Over 3,000 interventions related to indigenous peoples had been carried out by the Government.  The State party worked closely with local autonomous governments to ensure the incorporation of indigenous knowledge into policies and activities to address climate change.

    Before implementing measures related to non-admission and deportation, investigations needed to be carried out to assess whether the individual concerned needed international protection.  Asylum seekers could receive free legal aid and the support of translation services if required.  An online platform to support asylum requests had been established; it had received more than 56,000 such requests.  Over 96,000 Venezuelan citizens had been granted temporary residency through a special procedure implemented in 2022.  Emergency care was being provided for the large number of migrants on the northern border in collaboration with international organizations and private sector bodies, to ensure that these migrants and asylum seekers received the highest standard of care.

    The State party had been procuring building materials and conducting repairs to improve prison infrastructure and the living conditions of detainees.  Accommodation in two prisons had recently been increased by 1,700 places.  The State had authorised the construction within 300 days of two new prisons to house a maximum of 800 detainees.  These would greatly reduce the rate of overcrowding. The Government was increasing human resources for administering these prisons.  Around 600 prisoners who had been detained for over five years and were not accused of violent crimes would soon be pardoned to further reduce overcrowding.

    The National Red Cross Committee had been training medical staff to improve health care in prisons.  A classification plan was in place to revise the classification of detainees to reduce the grouping of members of organised crime in prisons. Female detainees had been relocated to exclusively female prisons.  Over the next five years, the State party planned to recruit 700 new prison guards. A protocol on the handling of complaints within the prison system had been developed.

    Although a law on free, prior and informed consent had yet to be implemented, the Constitutional Court had established standards relating to this consent that needed to be respected by administrative authorities.  Bills had been developed to enact such a law that were currently before Parliament. The State party was undertaking environmental consultations that were in line with international standards in relation to upcoming mining projects.  It was also working to respect the life and integrity of indigenous peoples and preventing them from being harmed by the actions of third parties.  The Government had been successful in reducing conflict over indigenous territory and was fostering a culture of peace.  A health cordon had been established to improve the health conditions of people living in voluntary isolation.

    State legislation ensured respect for judicial independence.  No Government entity could interfere with the activities of the judiciary.  A roadmap had been developed to promote judicial independence through strict internal oversight of appointment, promotion and evaluation of members of the judiciary.  The Council of the Judiciary had implemented measures to ensure the safety of judicial operators.  The transitionary period for the Council for Citizen Participation and Social Control had concluded and its regular members were being appointed.

    There was a protection and early warning system for media professionals who were facing aggression.  The Government was strengthening its capacity to react to attacks against media professionals and to prevent such attacks.  Civil society organizations were involved in providing protection measures and improving the working environment for media professionals. 

    Follow-Up Questions by Committee Experts

    A Committee Expert asked why the State party allowed civilians to carry firearms in violent areas in the country.  Had any initiatives been adopted to regularise migrants who came into the country after 2022?

    Another Committee Expert said judges and prosecutors had been killed and the rule of law was in danger in the country.  Some judges had been murdered outside of the premises of the judiciary.  There needed to be effective protective actions to ensure the independence of the judiciary and the rule of law.  What transparency measures would be implemented to increase public trust in the judiciary?  It was positive that the State party had begun a reform of legislation on terrorism in cooperation with international bodies.  Would the bill of law being developed provide procedural guarantees in terrorism cases in line with the Covenant?

    One Committee Expert said that, since the deployment of armed forces across the territory, femicides, the enforced disappearance of women, and the violation of indigenous peoples’ rights had continued with impunity for offenders.  The State party had not ensured the protection of indigenous human rights defenders, whose rights were violated by the activities of mining companies. There were environmental issues threatening the lives of indigenous peoples that had not been investigated and several indigenous peoples were awaiting compensation.  Environmental rights defenders were continually harassed by authorities.  Could the delegation provide information on the killing of an indigenous chief in February 2024 who was protesting oil prospecting in his region?

    Another Committee Expert said poverty and insecurity were serious issues in Ecuador that were disproportionately affecting vulnerable groups.  How would the State party address these issues and protect the rights of workers?

    Closing Remarks

    JUAN CARLOS LARREA, Attorney General of State of Ecuador and head of the delegation, said Ecuador was fully committed to implementing international human rights law and promoting respect for human rights.  It was the first country in Latin America to receive a visit from the current High Commissioner for Human Rights, Volker Türk.  It was working to implement all recommendations issued to it by the United Nations human rights system.

    Ecuador was facing challenges in the field of human rights, including spiralling international organised crime and the current energy crisis, but remained committed to addressing these, and to strengthening efforts to promote the human rights of all people on its territory. It called on the international community to increase technical support for the promotion and protection of human rights in Ecuador.  The delegation hoped that the Committee would provide concrete recommendations that addressed the complex challenges that Ecuador was facing.

    TANIA MARÍA ABDO ROCHOLL, Committee Chairperson, thanked all those who had contributed to the dialogue.  The dialogue had addressed Constitutional and legal frameworks related to the Covenant, historic human rights violations, measures to combat terrorism, reproductive rights, the independence of the judiciary, detention conditions, the right to life, freedom of expression and association, trafficking in persons, and the situations of human rights defenders and indigenous peoples, among other topics.  The Committee was committed to its mandate of guaranteeing the highest level of implementation of the Covenant in Ecuador.

     

    Produced by the United Nations Information Service in Geneva for use of the media; 
    not an official record. English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

     

    CCPR24.023E

    MIL OSI United Nations News

  • MIL-OSI Canada: Remarks by the Deputy Prime Minister announcing actions to protect and create good-paying jobs for Canadian workers

    Source: Government of Canada News

    We’re launching a $200 million regional AI initiative. The regional development agencies will help support AI start-ups to bring new technology to market. And they will help drive AI adoption by Canadian businesses across the economy. I do want to say to Canadian businesses who are excited about the benefits of AI in their businesses, please think about using a Canadian AI company when you are using AI in your business. This is a great strength we have; take advantage of the great AI companies we have here at home.

    October 22, 2024 – Ottawa, Ontario

    Check against delivery

    Thanks everyone for being here. I want to start by recognizing the work that all the people at Parliamentary Protective Services do to make it possible for all of us to do our jobs. On this anniversary of the death of Corporal Nathan Cirillo, who was shot to death while he was guarding the Tomb of the Unknown Soldier, it’s worth reflecting on how essential they are. They take risks every day. Thank you very much to them.

    I will begin by talking about the Canadian economy, and then I’ll talk about actions we are taking to protect and support Canadian workers, and tariffs, and then new measures on artificial intelligence.

    After that, my colleague, the Honourable Randy Boissonnault (Minister of Employment, Workforce Development and Official Languages), will talk about reforms to the Temporary Foreign Worker Program. After that, my colleague, the Honourable Jean-Yves Duclos (Minister of Public Services and Procurement), will talk more about what we are doing regarding artificial intelligence and promoting its adoption in the whole Canadian economy.  

    Let me start by making a couple of comments about the Canadian economy.

    We have been getting some good news in recent weeks. Last week, we got the September inflation number, which was 1.6 per cent. For nine months now, inflation in Canada has been within the Bank of Canada’s target range. And the September number was a three and a half year low.

    With inflation coming down, we have now seen three interest rate cuts. The Bank of Canada was the first central bank in a G7 country to cut interest rates for the first time. It was the first central bank in a G7 country to cut interest rates for the second time. And it was the first central bank in a G7 country to cut interest rates for the third time.

    Wages have now outpaced inflation for 20 months in a row and in September, we had a good jobs number, with 47,000 jobs created. And the unemployment number actually went down a little bit.

    The International Monetary Fund (IMF) published its World Economic Outlook today. And in that Outlook, the IMF forecasted that Canada will have the strongest economic growth in the G7 in 2025. There is a lot more we need to do, but on the macroeconomic front, we’re seeing some solid progress.

    Now, I want to talk about the tariff measures. The government has imposed a 100 per cent tariff on all electric vehicles manufactured in China and it became effective on October 1st. 

    We also announced that we would put in place a 25 per cent tariff on imports of steel and aluminum products from China. Today is a significant day. Today is the day that our tariffs on Chinese steel and aluminum of 25 per cent enter into force. This is a really important measure. It is to protect these essential Canadian industries, and the Canadians who work there, from unfair Chinese trade practices, and from an intentional policy of Chinese overcapacity in an environment where neither labour nor environmental standards are honoured.

    It’s also really important because it is absolutely essential for the Canadian economy that we can say to our partners in North America that Canada will not be a backdoor for diverted Chinese goods, whether it’s electric vehicles or steel and aluminum.

    We are also announcing today a remissions framework. We know that there are some businesses that are anxious about adjusting to this shift in supply chains. It’s really important for us that these essential measures do not harm Canadian businesses or Canadian workers. So, we are prepared to offer tariff relief in exceptional circumstances and we’re publishing today an email address that Canadian businesses can use to apply for tariff relief and a framework that will guide decisions on remissions.

    A second announcement for today is that we are moving forward on the support for AI and AI adoption, which we announced in the budget in the spring.

    Canada is a global AI superpower. There is no better evidence of this than the fact that Canada’s own, and the University of Toronto’s own, Geoffrey Hinton, was recently awarded a Nobel Prize for his groundbreaking research. That research, that Canadian strength in AI, and the underlying thinking behind it, is a huge advantage for Canada in the economy today.

    Our government knows that helping Canadian businesses adopt AI is a really important part of leveraging the Canadian AI advantage.

    Today we are announcing that we’re going to be investing $300 million of the $2.4 billion for AI that we put forward in the budget in the spring.

    We’re launching a $200 million regional AI initiative. The regional development agencies will help support AI start-ups to bring new technology to market. And they will help drive AI adoption by Canadian businesses across the economy. I do want to say to Canadian businesses who are excited about the benefits of AI in their businesses, please think about using a Canadian AI company when you are using AI in your business. This is a great strength we have; take advantage of the great AI companies we have here at home.

    We have an economic plan, a plan for affordability, to build more housing faster and for economic growth. Our priority is to give a fair chance to every generation. Thank you.

    MIL OSI Canada News

  • MIL-OSI USA: Department of Labor investigation into worker’s fatal grain engulfment finds Missouri farm cooperative lacked adequate rescue equipment

    Source: US Department of Labor

    HAMILTON, MO ‒ A Missouri grain cooperative could have prevented an employee’s fatal engulfment in a storage bin in May 2024 had it followed federal workplace safety requirements, the U.S. Department of Labor determined.

    Responding to the employer’s report of a worker fatality, investigators with the department’s Occupational Safety and Health Administration learned that three employees of MFA Inc., operating as MFA Rail Car, were removing corn screenings – comprised of clumps of corn dust – from a bin at the company’s Hamilton facility. One worker entered the bin to clear screenings and became engulfed when the screenings shifted. Another worker tried to rescue his co-worker but was engulfed to his waist before being rescued by first responders from the local fire department.

    OSHA found the Columbia grain cooperative had not completed a required bin entry permit before allowing the worker inside. Additionally, the conveyor was running with the bin’s bottom gate open, increasing the risk of product shifting and the risk of engulfment. The employer also lacked adequate rescue equipment, failed to ensure the worker wore a harness and lifeline and did not follow other required safety procedures before entering the bin.

    “By neglecting basic safety standards, MFA Rail Car put their workers at serious risk,” said OSHA Area Director Karena Lorek in Kansas City, Missouri. “Through its outreach and alliance efforts, OSHA works closely with industry partners to educate employers and workers about the critical importance of grain bin safety and reminds all employers to never become complacent in this highly hazardous industry.”

    Following its inspection, OSHA cited MFA Inc. for one willful violation and five serious violations and proposed penalties of $241,887. Specifically, the agency identified the following safety failures:

    • Lacking adequate rescue equipment on site when workers entered bins.
    • Failing to protect employees from falls on walking working surfaces.
    • Not verifying that mechanical, electrical, hydraulic and pneumatic equipment inside grain storage structures were deenergized, locked out and tagged to prevent operation when workers entered.
    • Allowing workers to enter a bin without completing the permit process. 
    • Not testing the bin’s atmosphere before workers entered
    • Not providing a harness and lifeline positioned to prevent the employee from sinking deeper than waist-deep in the grain.

    Founded in 1914, MFA Inc. is a regional farm supply and marketing cooperative based in Columbia that serves more than 45,000 farmers and owners in Missouri and nearby states. 

    Through its alliance program, OSHA has partnered with the Grain Handling Safety Coalition, Grain Elevator and Processing Society and National Grain and Feed Association to address hazards, reduce risks and improve safety and health management systems to help prevent life-altering injuries and fatalities. 

    OSHA also has a regional emphasis program for grain handling facilities in Kansas, Missouri and Nebraska to focus outreach and enforcement efforts on making employers and workers aware of hazards in the industry. 

    The company has 15 business days from receipt of the citations and penalties to comply, request an informal conference with OSHA’s area director, or contest the findings before the independent Occupational Safety and Health Review Commission

    Learn more about industry-recognized safety rules for grain handling. 

    MIL OSI USA News

  • MIL-OSI USA: DBEDT NEWS RELEASE: Small Business Regulatory Review Board Elects 2024-2025 Officers

    Source: US State of Hawaii

    DBEDT NEWS RELEASE: Small Business Regulatory Review Board Elects 2024-2025 Officers

    Posted on Oct 29, 2024 in Latest Department News, Newsroom

    DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM

     

    SMALL BUSINESS REGULATORY REVIEW BOARD

     

    JOSH GREEN, M.D.
    GOVERNOR

    JAMES KUNANE TOKIOKA
    DIRECTOR

    DORI PALCOVICH
    SBRRB ADMINISTRATOR

    FOR IMMEDIATE RELEASE

    October 29, 2024

    SMALL BUSINESS REGULATORY REVIEW BOARD ELECTS 2024-2025 OFFICERS

     

    HONOLULU – The Department of Business, Economic Development and Tourism (DBEDT) Small Business Regulatory Review Board (SBRRB) has announced its officers for fiscal year 2024 to 2025.

    Jonathan Shick, chair (O‘ahu) – Mr. Shick works for Pono Consulting Group LLC, has been a member for five years and was previously the SBRRB’s second vice chair.

    Mary Albitz, vice chair (Maui) – Ms. Albitz is the owner of Island Art Party, a paint and sip studio located in Kīhei. She has been a member since 2018, most recently as chair of the SBRRB.

    Sanford Morioka, second vice-chair (O‘ahu) – Mr. Morioka is president of Edward Enterprises, Inc. and has been a member since 2022.

    Other board members are Robert Cundiff (O‘ahu), Mark Ritchie (DBEDT Ex Officio), Garth Yamanaka (Hawai‘i), James (Kimo) Lee (Hawai‘i) and Tessa Gomes (O‘ahu), as well as recent Governor Josh Green, M.D. appointees Nikki Ige (Kauaʻi) and Jennifer Salisbury (Maui).

    “Mahalo to the SBRRB members for their dedication and commitment to improving Hawai‘i’s small business landscape,” said DBEDT Director James Kunane Tokioka. “These collaborative efforts encourage and support the vitality of small businesses in Hawai‘i.”

    “The SBRRB oversees rules and regulations for Hawai‘i small businesses promulgated by both state and county agencies,” said SBRRB Administrator Dori Palcovich. “Navigating government agencies at various levels – federal, state, county and city is very difficult for our small businesses. However, in my 23 years as its administrator, I fully believe that the SBRRB is very committed to improving the regulatory climate in the state for the benefit of small businesses.”

    The SBRRB meets monthly both in-person and by electronic means. We encourage those small businesses that may have specific regulatory concerns with Hawai‘i Administrative Rules to learn more about the monthly meetings at sbrrb.hawaii.gov.

    About Small Business Regulatory Review Board (SBRRB)

     

    The SBRRB was established on July 1, 1998 with the passage of the Small Business Regulatory Flexibility Act. The responsibilities of the SBRRB include:

    1) Commentary on small business impact statements to the rule-drafting agencies.

    2) Identification and commentary on business impact of existing administrative rules.

    3) Recommendations to the Governor’s Office, state agencies or legislature, on any proposed new or amended administrative rules or changes in legislation.

    4) Recommendations to the mayors or county councils regarding county rules; and

    5) Review of small business petitions and complaints on business impact.

    The SBRRB comprises 10 volunteer members who are current or former owners or officers of businesses from across the state, as well as the director of DBEDT or the director’s designated representative, who serves as an “ex officio” member. Three members are appointed by the Senate President, three members by the Speaker of the House, two members by the SBRRB, and two are appointed by the Governor.

    Further, the appointments reflect a representation of a variety of businesses in the state with no more than two members from the same type of business and at least one representative from each county.

    About Department of Business, Economic Development and Tourism (DBEDT)


    DBEDT is Hawai‘i’s resource center for economic and statistical data, business development opportunities, energy and conservation information as well as foreign trade advantages. DBEDT’s mission is to achieve a Hawai‘i economy that embraces innovation and is globally competitive, dynamic and productive, providing opportunities for all Hawai‘i’s citizens. Through its attached agencies, the department fosters planned community development, creates affordable workforce housing units in high-quality living environments and promotes innovation sector job growth.

     

    # # #

     

    Media Contact:

     

    Laci Goshi

    Department of Business, Economic Development and Tourism 

    808-518-5480

    [email protected]

    dbedt.hawaii.gov 

    MIL OSI USA News

  • MIL-OSI USA: Governor Newsom announces local accountability, transparency rules for new round of homeless funding

    Source: US State of California 2

    Oct 29, 2024

    What you need to know: Governor Newsom today announced 37 new grant awards totaling more than $827 million to help more than 100 local communities and organizations create long-term solutions to address homelessness. The grant agreements include strong accountability and transparency measures and clear expectations to ensure that local strategies to address homelessness are measurable and effective. 

    LOS ANGELES — Expanding California’s unprecedented support for local efforts to create long-term solutions to address homelessness, Governor Newsom today announced that 37 regional grantees — representing 100 local communities and organizations statewide — will receive more than $827 million in new state investments to create new housing, shelter, and support for those experiencing homelessness. The funding comes with strong accountability measures and reporting requirements to ensure funding is used effectively and outcomes can be tracked and measured.

    “We’ve given our local partners the tools and resources they need — it’s time to end this crisis now. These new funds represent the hard work, accountability, and strategic planning needed to address homelessness with real, long-lasting results.”

    Governor Gavin Newsom

    Investing in impactful solutions to address homelessness 

    California has made unprecedented investments to address the housing and homelessness crises, with $40 billion invested to help communities create more housing and $27 billion provided to communities to help prevent and end homelessness. Today’s new grant awards are part of the state’s Homeless Housing, Assistance and Prevention (HHAP) grant program, which provides flexible grant funding to help communities support people experiencing homelessness by creating permanent housing, rental and move-in assistance, case management services, and rental subsidies, among other eligible uses. 

    The Governor announced the awards in Downtown Los Angeles, where he was joined by city and county officials. 

    “The only way we can be successful in solving homelessness is by locking arms and implementing a comprehensive approach that shows results,” said Los Angeles Mayor Karen Bass. “The Homelessness Housing, Assistance and Prevention program is critical to our success here in Los Angeles, and has helped reduce homelessness for the first time in years. I want to thank Governor Newsom and our state elected partners for working together to bring people off of the streets and into housing as urgently as this crisis requires.”

    Greater accountability 

    As a condition of receiving the funding, the awardees must agree to increased accountability, transparency, and compliance measures. These new measures will help enhance the ability for these state investments to drive real, measurable results and will help improve the tracking of data and outcomes. This ensures that grant recipients remain accountable and protects state funding.

    Regional approach

    Grantees were required to work regionally on these applications. Cities, counties, and Continuums of Care were required to explicitly commit to coordinating with one another, clearly stating who was responsible for which parts of their joint regional homeless efforts, as a condition of receiving funding. This will drive coordination and make sure homelessness is solved regionally — not treated as a problem that stops at the city limits. 

    Greater transparency

    Grantees will report monthly fiscal progress that will be available live on the California Housing and Community Development’s (HCD) website through the HHAP fiscal dashboard. Grantees will also upload HHAP program outcomes to the California Homeless Data Integration System on a quarterly basis.

    More support 

    This round of HHAP funding embraces an inclusive process — helping California regions to assess and build on their existing capacity to address their unique homelessness challenges, transition homeless individuals and families into affordable permanent housing, and support those individuals and families in maintaining stable permanent housing. The funding requires grantees to commit to addressing racial inequities in homelessness, prioritize permanent housing rather than temporary shelters, and include people with lived experience of homelessness in program design.

    “The HHAP Round 5 grants demonstrate how the state can support and amplify regional strategies and coordination to help our most vulnerable residents move into safe and stable housing,” said Business, Consumer Services and Housing Secretary Tomiquia Moss. “The accountability in this round of funding ensures we are empowering local partners to design local solutions to prevent and end homelessness, and produce measurable results. By working together to address the unique needs in their communities we get that much closer to reducing unsheltered homelessness across the State.”

    HHAP funds build on ongoing state investments and are intended to be paired strategically with other state, local, and federal funds, including other HCD programs like Homekey+

    Care, compassion, collaboration 

    Today’s announcement follows the Governor’s executive order urging local governments to adopt policies and plans consistent with the California Department of Transportation’s (Caltrans) existing encampment policy.

    Prioritizing encampments that pose a threat to the life, health, and safety of the community, Caltrans provides advance notice of clearance and works with local service providers to support those experiencing homelessness at the encampment, and stores personal property collected at the site for at least 60 days.  Earlier this month, Governor Newsom also provided local communities with $131 million, as part of the state’s $1 billion of Encampment Resolution Funds to address homelessness, to help local governments address homeless encampments and provide shelter, care, and support.

    As required by the Governor’s executive order, the California Interagency Council on Homelessness today is releasing new guidance to assist local communities in addressing encampments. The guidance provides local communities with best practices for resolving encampments and connecting individuals in encampments with services and housing.

    California is also transforming behavioral health care by improving access, accountability, transparency, and capacity. This includes through the Community Assistance, Recovery, and Empowerment (CARE) Court, a first-in-the-nation approach to create accountability for connecting individuals with untreated psychosis to the treatment and housing they need. It also includes Proposition 1, which is expanding the behavioral health continuum using existing dollars and providing care to individuals experiencing mental health conditions and substance use disorders — with a particular focus on people who are the most seriously ill, vulnerable, and at risk of homelessness or homeless. 

    HHAP Funding provided by region

    Local communities and organizations are required to coordinate and apply together through Regionally Coordinated Homelessness Action Plans. The 37 California regions awarded HHAP funds today have approved plans that demonstrated a commitment to the priorities of creating permanent housing solutions and sustaining existing interim housing. 

    For a list of regions receiving the award, view here.

    Recent news

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    News What you need to know: The Tijuana River sewage crisis has been impacting communities for far too long, and Governor Newsom has pushed federal and international partners to fund repairs and complete infrastructure improvements to finally address this crisis. …

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    MIL OSI USA News

  • MIL-OSI USA: NEWS RELEASE – MONTHLY SIREN TEST

    Source: US State of Hawaii

    NEWS RELEASE – MONTHLY SIREN TEST

    Posted on Oct 29, 2024 in Latest Department News, Newsroom

    DEPARTMENT OF DEFENSE

    KA ʻOIHANA PILI KAUA

     

    HAWAI‘I EMERGENCY MANAGEMENT AGENCY

    KEʻENA HOʻOMALU PŌULIA O HAWAIʻI

     

    JOSH GREEN, M.D.

    GOVERNOR

    KE KIAʻĀINA

    MAJOR GENERAL STEPHEN F. LOGAN

    DIRECTOR OF EMERGENCY MANAGEMENT
    LUNA HOʻOMALU PŌULIA

    JAMES DS. BARROS

    ADMINISTRATOR OF EMERGENCY MANAGEMENT
    KAHU HOʻOMALU PŌULIA

     

     

    MONTHLY SIREN AND EMERGENCY ALERT SYSTEM TEST FOR NOVEMBER 2024

     

     

    FOR IMMEDIATE RELEASE                                                                                                                                                                                                                                 2024-078

    OCTOBER 29, 2024

     

    HONOLULU — The monthly test of the all-hazard Statewide Outdoor Warning Siren System is scheduled for Friday, November 1, 2024, at 11:45 a.m. The siren test will be coordinated with a test of the Live Audio Broadcast segment of the Emergency Alert System.

     

    During this monthly test, all Statewide Outdoor Warning Sirens will sound a one-minute Attention Alert Signal (steady tone). A test of the Live Audio Broadcast segment of the Emergency Alert System is conducted at roughly the same time as the monthly siren sounding, in cooperation with the Hawai‘i broadcast industry. There will be no exercise or drill accompanying the test.

     

    The all-hazard Outdoor Siren Warning System for Public Safety is one part of the Hawai‘i Statewide Alert and Warning System used to notify the public during emergencies. If you hear this siren tone in circumstances other than a test, follow emergency information and instructions provided by official government channels. These may be in the form of a local radio or television station broadcast and/or a cellular Wireless Emergency Alert.

     

    Wireless Emergency Alerts deliver sound-and-text warnings to compatible mobile cellular phones. The Emergency Alert System and Wireless Emergency Alert notifications are sent via the Integrated Public Alert and Warning System, the nation’s alert and warning infrastructure, managed by the Federal Emergency Management Agency.

    Emergency management and disaster preparedness information may be found in the front section of telephone directories in most counties as well as online in the “Get Ready” section of ready.hawaii.gov. For the latest information from the Hawai‘i Emergency Management Agency (HI-EMA), or to sign up for county alerts, visit ready.hawaii.gov.

    The public may contact emergency management and county civil defense agencies to report siren operation issues through the following numbers.

    City and County of Honolulu: 808-723-8960
    Maui County: 808-270-7285
    Kauaʻi County: 808-241-1800
    Hawaiʻi County: 808-935-0031

     

     

    # # #

     

    Contact:

    1. Kīele Amundson

    Communications Director

    808-733-4300 Ext 522

    [email protected]

    MIL OSI USA News

  • MIL-OSI USA: Federal Court Permanently Shuts Down Indiana Tax Preparer and Company

    Source: US State of North Dakota

    The U.S. District Court for the Southern District of Indiana permanently enjoined an Indianapolis-area tax return preparer and his company yesterday from preparing federal tax returns for others and from owning or operating any tax return preparation businesses in the future.

    According to the civil complaint filed in the case, Juan Santiago resides in Lakeland, Florida, but travels to Indianapolis for tax preparation season to operate his tax preparation business, Madison Solutions LLC. Santiago failed to respond to the civil complaint filed against him, so the court entered the permanent injunction against him by default.

    The civil complaint alleges that Santiago and Madison Solutions used a variety of schemes to improperly reduce their customers’ tax liabilities or to obtain tax refunds to which the customers were not entitled. The complaint alleges that Santiago repeatedly placed false or incorrect items, deductions, exemptions or statuses on customers’ tax returns without their knowledge. For example, the complaint alleges that Santiago routinely elected head of household filing status and child tax credits for customers when they were otherwise not qualified for such status or credits. The complaint also alleges that Santiago reported fictitious businesses on customers’ returns and fabricated business expenses and income to fraudulently reduce taxable income.

    Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.

    Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.

    In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

    MIL OSI USA News

  • MIL-OSI Security: Paving Contractor Pleads Guilty to Tax Evasion

    Source: Office of United States Attorneys

    BOSTON – The owner of a paving company doing business north of Boston pleaded guilty yesterday to a multi-year income tax evasion scheme.

    Richard Cooper, 71, of Billerica, pleaded guilty to four counts of tax evasion. U.S. District Court Judge Denise J. Casper scheduled Cooper’s sentencing for Jan. 30, 2024. Cooper was charged in September 2024.

    From 2017 to 2020, in addition to depositing customer payments to his company, Rick Cooper Paving, Cooper also cashed over $4.3 million in customer checks. When Cooper had his taxes prepared, he did not tell his preparer about the checks he was cashing, resulting in his tax returns underreporting the gross receipts of the business by millions. As a result, Cooper kept over $1 million that he should have paid in federal and state income taxes.

    Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit prosecuted the case.

    MIL Security OSI

  • MIL-OSI Submissions: Crypto – Bitcoin to hit fresh all-time highs on Trump victory, deVere CEO predicts

    Source: deVere Group


    October 29 2024 – Bitcoin is likely to reach fresh all-time highs should Donald Trump win the US presidential election, predicts the CEO of one of the world’s largest independent financial advisory and asset management organizations.


    The bullish prediction from deVere Group’s Nigel Green comes a week ahead of the down-to-the-wire race for the White House between former president Trump and Vice President Kamala Harris.


    Bitcoin is currently around $71,000 (on Tuesday morning, GMT). The highest price paid for Bitcoin (BTC) is $73,737 which was recorded on March 14 2024.


    The deVere CEO comments: “A Trump victory could be the catalyst that pushes the world’s first and largest cryptocurrency into uncharted territory as his return to office would likely have a renewed emphasis on deregulation, tax incentives, and economic policies favorable to alternative investments, such as Bitcoin.”


    He continues: “During the campaign, he’s positioned himself as the pro-Bitcoin candidate, speaking in favor of digital currencies. 


    “Trump has also criticized the excessive influence of centralized financial institutions and has pledged to reduce regulatory constraints on digital assets if re-elected. 


    “This outspoken support has earned him recognition within the crypto community, with many investors viewing his potential return to office as an important bullish signal for Bitcoin.”


    Investor anticipation of policy shifts that many expect from a second Trump administration is likely to fuel a rally.


    The former president’s pro-business stance is often associated with easing regulatory constraints and implementing fiscal policies that encourage investment in unconventional assets. 


    “Should he return to office, Trump’s focus on deregulation might extend to cryptocurrency markets, providing a friendlier environment for digital assets like Bitcoin,” notes Nigel Green.


    Furthermore, Trump’s previous term was marked by substantial corporate tax cuts, which injected additional liquidity into markets, fostering investment in high-growth assets. 


    “Similar fiscal policies could be reintroduced, creating an environment ripe for Bitcoin’s price appreciation. This potential policy outlook adds a sense of urgency for investors to secure their positions in the leading crypto.”


    The former President’s economic stance, often marked by bold decisions and an ‘America First’ approach, could heighten concerns about potential shifts in global trade and US foreign policy. 


    The deVere CEO affirms: “This uncertain landscape makes Bitcoin an attractive alternative for investors looking to hedge against traditional market risks, spurring a demand that could propel Bitcoin to new highs.”


    In recent years, institutional interest in Bitcoin has grown, with large-scale investors, hedge funds, and even public companies allocating portions of their capital to digital assets. This trend has lent additional legitimacy to Bitcoin and has reduced volatility, making it more accessible to mainstream investors.


    A Trump victory might accelerate this trend by promoting a regulatory environment conducive to institutional involvement in the cryptocurrency market. 


    “Such a scenario would bring even more institutional money into Bitcoin, driving its price higher. If Trump advocates for more crypto-friendly policies, it would reinforce the digital asset’s standing in mainstream finance.”


    His potential re-election could also impact the Federal Reserve’s monetary policy stance and the strength of the US dollar, factors that indirectly affect Bitcoin’s price. If his policies lead to a weaker dollar, investors may flock to Bitcoin as a store of value, spurring further demand and pushing prices upward.


    Nigel Green concludes: “A Trump victory, we believe, could spark a substantial rally for Bitcoin as investors look to capitalize on potential policy shifts and a pro-business outlook. 


    “Given Bitcoin’s current positioning just below its all-time high, this election may be the spark that sends it to new records.”

    deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of offices around the world, more than 80,000 clients, and $12bn under advisement.

    MIL OSI – Submitted News

  • MIL-OSI USA: Governor Murphy Announces Creation of Economic Council

    Source: US State of New Jersey

    TRENTON – Governor Murphy today signed an Executive Order establishing a new Economic Council, which will be supported by a newly established Development Coordination Committee. Under the executive order, the Economic Council will provide a regular forum for the business community and state government to discuss, collaborate, and solve issues important to the public and private sectors, and stimulate economic growth and prosperity. The new Development Coordination Committee will support the Council’s work in advancing development projects that require multiple state, county and local government approvals. 

    “The Economic Council will ensure that we continue to have a healthy collaboration between the business community and the state government,” said Governor Murphy. “Deepening our Administration’s strong relationship with various sectors across our state will stimulate growth within our economy. I look forward to the forum for ongoing dialogue, collaboration, and problem-solving to advance our shared economic goals.” 

    Since the beginning of the Murphy Administration, state officials have worked with legislative partners and industry stakeholders on policies to improve the role and function of the government in facilitating economic development. Since 2018, New Jersey has seen small businesses increase by over 40,000 or 19%, despite the effects of the global COVID-19 pandemic.

    The Economic Council’s co-chairs will be the Deputy Chief of Staff for Economic Growth and the Chief Executive Officer of the New Jersey Economic Development Authority. The co-chairs will designate representatives from industry to participate in working group discussions with the Council. Along with the co-chairs, the Council will also consist of the Governor’s Chief of Staff, Chief Counsel, Chief Policy Advisor, the State Treasurer; and the Executive Director of the Business Action Center, or their respective designees.

    “New Jersey’s economy has grown stronger under Governor Murphy’s leadership, and the Economic Council will build upon the progress we’ve made over the past seven years,” said NJEDA Chief Executive Officer Tim Sullivan. “I’m honored to co-chair the Economic Council and look forward to working with our government partners and key stakeholders to help meet the ambitious economic goals of the administration.”

    “The establishment of the Economic Council is a giant step forward in Governor Murphy’s relationship with the business community,” said Deputy Chief of Staff for Economic Growth Eric Brophy. “Over the past several years, at the governor’s urging, we have made doing business in New Jersey easier. We learned early on that working closely with the business community and legislators is the best way to grow New Jersey’s economy. The Economic Council will further cultivate our ambition to make business in New Jersey less complicated.”

    “Addressing the future economy of our state is vitally important to unleashing our enormous economic potential – as is the need to generate additional organic, reliable revenue to fund our growing state budgets,” said Tom Bracken, President & CEO, New Jersey Chamber of Commerce. “The New Jersey Chamber of Commerce has been advocating for the creation of an economic council for many years to accomplish that goal. Today’s announcement, hopefully, will put in place a mechanism to bring together government and the business community to address collective thoughts and strategies to create a more vibrant, competitive economic landscape. With the Economic Council and Development Coordination Committee structure in place, it will now be up to its organizers to ensure it will quickly and effectively deliver the results we desperately need. We thank Gov. Murphy for creating this forum that we hope transcends administrations – and we look forward to working with the administration and being part of this opportunity.” 

    Within the Council, the Executive Order also establishes a Development Coordination Committee as a subcommittee that will focus on ways to streamline the intergovernmental review of complex development projects, improve communication amongst state, county and local government financing and permitting entities with respect to projects that require a coordinated review. This will enhance information sharing by and between government agencies and project developers.

    The Development Coordination Committee will consist of the Deputy Chief of Staff for Economic Growth; the State Treasurer; the Commissioners of the Departments of Community Affairs, Environmental Protection, and Transportation; and the Executive Directors of the EDA, New Jersey Housing and Mortgage Finance Agency, Schools Development Authority, and Infrastructure Bank, or their respective designees. The Committee will also be tasked with reporting to the Council on recommended policies, initiatives or reforms that may be undertaken to reduce barriers to development or construction project disruptions or delays.

    Read Executive Order No.369 here.

    MIL OSI USA News

  • MIL-OSI USA: Warner, Kaine, and Scott Applaud $380 Million in Inflation Reduction Act Funding for the Port of Virginia

    US Senate News:

    Source: United States Senator for Commonwealth of Virginia Mark R Warner
    WASHINGTON –  Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) and U.S. Representative Bobby Scott (D-VA-03) announced $380,000,000 in federal funding for the Port of Virginia to accelerate its plan to become carbon-neutral by 2040. Warner, Kaine, and Scott advocated for this funding and sent a letter of support for this grant. The funding was awarded through the Environmental Protection Agency’s Clean Ports Program, which was made possible by the Inflation Reduction Act that the members helped pass. 
    “The Port of Virginia is one of the largest and busiest ports on the eastern seaboard, and it’s critical to Virginia’s economy and offshore wind industry. As the Port of Virginia continues to grow thanks to investments we’re making, we must also ensure we’re reducing greenhouse gas emissions, which result in negative health and environmental impacts for our communities,” said the lawmakers. “That’s why we’re thrilled that this federal funding, which was made possible by theInflation Reduction Act we supported, will accelerate the Port’s efforts to achieve net-zero carbon emissions by 2040 and further cement Virginia’s place as a leader in clean energy.”  
    The Inflation Reduction Act made historic investments to support clean energy projects. It included clean energy tax credits that have incentivized a series of corporate investments in Virginia, including:
    A $681 million investment by LS GreenLink to build a state-of-the-art facility to manufacture high-voltage subsea cables used for offshore wind farms inChesapeake, which will create over 330 jobs in Virginia.
    An investment of over $400 million by Topsoe to build a new manufacturing facility in Chesterfield County, which will create at least 150 new jobs in Virginia.
    An investment of $208 million by Mack and Volvo Trucks—in addition to a federal grant award of over $208 million for the company—to sustain 7,900 union jobs and create 295 new jobs in Virginia, Maryland, and Pennsylvania. Volvo Trucks is the second largest employer in the New River Valley, sustaining 3,600 jobs in Dublin, including 3,200 United Automobile Workers (UAW) jobs. In September 2024, Warner and Kaine visited Volvo’s New River Valley plant to celebrate the investment.
    Today’s announcement builds on other transformational investments made to the Port of Virginia by the Biden-Harris administration with the backing of Warner, Kaine, and Scott. That includes $225.4 million to fully fund the Norfolk Harbor Deepening and Widening Project, which will improve navigation and expand capacity by deepening and widening Norfolk Harbor’s shipping channels, allowing for two-way traffic in and out of the harbor. Of this amount, $141.7 million was made available through the Infrastructure Investment and Jobs Act and $83.7 million was provided through the Fiscal Year 2022 omnibus appropriations bill.
    The Port also previously received $20 million in federal funding from the Department of Transportation for improvements to Portsmouth Marine Terminal that will allow it to serve as a staging area to support the manufacturing and movement of offshore wind goods to support the 2.6 gigawatt Coastal Virginia Offshore Wind commercial project and other commercial offshore wind projects up-and-down the East Coast. Warner, Kaine, and Scott led a Virginia Congressional Delegation letter to Secretary of Transportation Pete Buttigieg in support of the Port’s application for that funding.

    MIL OSI USA News

  • MIL-OSI New Zealand: Pacific Trade Invest – Investment Webinar: EXPANDING the HORIZON for Women in Technology

    Source: Pacific Trade Invest NZ

    Pacific Trade Invest NZ is delighted to invite you to our upcoming hour-long webinar, Expanding the Horizon for Women in Technology.

    Join us on Thursday 7 November 2024 at 2:00 PM New Zealand time as industry experts and thought leaders discuss their involvement in the technology sector; what’s on the horizon and the investment possibilities the sector presents for investors.  

     

    Register here    https://shorturl.at/C34uL

     

    A great line-up of speakers is confirmed:
     
    Julia Arnott-Nene and Eteroa Lafaele, Co-Founders and Directors Fibre Fale

    Julia and Eteroa are an award-winning changemaker team in tech, on a mission for Digital Equity and increased representation of Pacific people in technology. Fibre Fale is an innovative Aotearoa collective creating pathways into technology for Pacific people. Fibre Fale builds future tech leaders and prepares the future of the technology industry in the Blue Pacific.

    Priyanka Brahmbhatt, Executive Director, Bankai Group and CEO Bankai Technology

    Global leader in technology and investments; a member of the Forbes Council. As a UN Youth Delegate she’s advocated for climate action, women in tech, mental health awareness, and socio-economic empowerment of marginalized communities.

    Tenanoia Simona, CEO Tuvalu Telecommunications Corporation

    An innovator and leader in implementing effective technology in the Blue Pacific. Simona has spearheaded initiatives from satellites, xGPON fibre network roll-out, and 4G LTE deployment in remote islands. She firmly believes that diversity and inclusion are vital for driving innovation and achieving meaningful progress in small island nations.

     

    The speakers will discuss topics such as: 

      • Technology as a rewarding career path for women
      • The positive role of government and educational institutions, in contributing to this transformation
      • The Fibre Fale model 
      • How technology has evolved over time.
      • Investing in women in technology

    Register here    https://shorturl.at/C34uL

     

    ABOUT PACIFIC TRADE INVEST NZ

    • Is part of the Pacific Trade Invest Global Network of offices operating in Sydney, Australia; Beijing, People’s Republic of China; Geneva, Switzerland and Auckland, New Zealand.
    • An agency of Pacific Islands Forum Secretariat (PIFS) and is funded by New Zealand’s Ministry of Foreign Affairs and Trade (MFAT).
    • Supports the 16 Forum Island countries and Territories: Cook Islands, Federated States of Micronesia, Fiji, French Polynesia, Kiribati, Republic of the Marshall Islands, Nauru, New Caledonia, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.

    MIL OSI New Zealand News

  • MIL-OSI Security: Six Charged in Scheme to Defraud the Federal Government

    Source: United States Attorneys General 8

    Six defendants have been charged for their roles in schemes to rig bids, defraud the government and pay bribes and kickbacks in connection with the sale of IT products and services to federal government purchasers, which resulted in overcharges of millions of dollars to the U.S. government, including the Department of Defense (DoD). 

    On Oct. 9 and Oct. 16, a federal grand jury in Baltimore returned indictments against two additional defendants. Four other defendants were also charged. These are the first charges in the Justice Department’s ongoing investigation into IT manufacturers, distributors and resellers who sell products and services to government purchasers, including to the intelligence community. 

    “Antitrust crimes can undermine competition for products and services that are vital to our national security,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “When fraudsters siphon taxpayer funds, the Antitrust Division and its Procurement Collusion Strike Force (PCSF) partners across the government will hold accountable those who collude to subvert competition, line their pockets with federal procurement dollars and compromise the integrity of our intelligence community programs.”

    “This office and our partners will use all available resources to hold accountable those who would undermine and distort the government’s procurement of goods and services, especially those related to our cybersecurity infrastructure,” said U.S. Attorney Erek L. Barron for the District of Maryland. 

    “This investigation demonstrates the vital need to protect the DoD procurement process, particularly within the Intelligence Community,” said Special Agent in Charge Christopher Dillard of the DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “The Defense Criminal Investigative Service is committed to identifying fraudsters who abuse public trust and enrich themselves through criminal schemes.”

    “There is no place for fraudsters and crooks scheming to manipulate the government bidding process for personal gain,” said Special Agent in Charge William J. DelBagno of the FBI Baltimore Field Office. “The FBI remains steadfastly committed to identifying, investigating and bringing to justice those conspiring to enrich themselves by cheating taxpayers.”

    “Investigating complex fraud schemes is a top priority of ours,” said National Security Agency Acting Inspector General Kevin Gerrity. “I commend our team, our law enforcement partners and the Justice Department for their work protecting the integrity of federal contracting.”

    “Each part of the government must do its part to detect and prosecute instances of waste, fraud and abuse, and CIA’s Office of Inspector General was pleased to join its law enforcement partners in investigating this egregious case,” said CIA Inspector General Robin C. Ashton.

    United States v. Victor Marquez

    Victor M. Marquez, a Maryland resident and owner of two IT companies with significant government contracts, was charged in a four-count indictment with wire fraud conspiracy, wire fraud and major fraud against the United States for rigging bids and inflating the amount of money obtained from valuable IT contracts. 

    Antwann C.K. Rawls, an employee of one of Marquez’s companies, and Scott A. Reefe, an IT sales executive, have been charged for their respective roles in the conspiracy.

    As alleged in the indictment, Marquez, Rawls, Reefe and their co-conspirators used their positions of trust to learn sensitive, confidential procurement information, including procurement budgets for large U.S. government IT contracts. The co-conspirators used that inside information to craft bids at artificially determined, non-competitive and non-independent prices, ensuring Marquez’s company would win the procurement. 

    According to court documents, the co-conspirators shared their bids in advance of submitting them to the government, with one co-conspirator emailing that he would submit a “high price third bid.” Marquez and his co-conspirators submitted their collusive bids despite knowing the government sought independent, competitive bids for the valuable contracts, and despite Marquez’s certification of independent bidding.

    If convicted, Marquez faces maximum penalties of 20 years in prison for each conspiracy and wire fraud count and 10 years in prison for the major fraud charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    United States v. Breal L. Madison Jr.

    Breal L. Madison Jr., a Maryland resident, was charged in a 13-count indictment with conspiracy, bribery of a public official, mail fraud and money laundering for orchestrating a years-long scheme to defraud his employer and the United States out of over $7 million in connection with the sale of IT products to various government agencies.

    Brandon Scott Glisson, an IT contractor providing IT services to the U.S. government, and Glisson’s supervisor, Lawrence A. Eady, a former senior government employee, have also been charged for their respective roles in the scheme.

    According to court documents, through multiple misrepresentations, Madison and his co-conspirators conspired to steal money from Madison’s employer and government agencies, illegally siphoning over $9 million in stolen proceeds to Madison’s shell company, Trident Technology Solutions, and another shell company. They used the money to purchase luxury items and to pay approximately $630,000 in bribes to Eady in exchange for Eady’s ensuring the purchase of additional products sold by Madison. 

    Madison used his ill-gotten gains to buy a Vanquish VQ58 yacht, 2020 Lamborghini Huracan and multiple other vehicles, all of which the United States seeks to forfeit in the indictment. 

    If convicted, Madison faces maximum penalties of five years in prison for the conspiracy count, 15 years in prison for each bribery count, 20 years in prison for each mail fraud count and 10 years for each money laundering count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The DCIS, the FBI Baltimore Field Office, CIA Office of Inspector General and NSA Office of Inspector General investigated the case.

    Acting Assistant Chief Michael Sawers and Trial Attorneys Zachary Trotter and Elizabeth French of the Antitrust Division’s Washington Criminal Section and Assistant U.S. Attorneys Aaron S.J. Zelinsky, Sean M. Delaney and Darren Gardner for the District of Maryland are prosecuting the case. 

    Anyone with information about this investigation or other procurement fraud schemes should notify the PCSF at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government — federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.

    An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

    View the Rawls information.

    View the Eady information.

    View Reefe information.

    View the Glisson information.

    View the Madison indictment.

    View the Marquez indictment.

    MIL Security OSI

  • MIL-OSI: Seaway7 awarded offshore wind contract in UK

    Source: GlobeNewswire (MIL-OSI)

    Luxembourg – 29 October 2024 – Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) today announced the award to Seaway7, part of the Subsea7 Group, of a substantial1 contract by Ørsted for the transport and installation of the inter-array cables of the Hornsea 3 offshore wind project located in the UK sector of the North Sea.

    Seaway7’s scope of work covers the transportation and installation (T&I) of 192 66kV inter-array cables, measuring approximately 500 kilometres in length, with offshore activities scheduled to commence in 2026.

    Stuart Fitzgerald, CEO Seaway7, said: “With this award we look forward to continuing our long-standing relationship with Ørsted. The Hornsea 3 project represents our seventh offshore wind project together, including the inter-array cables on the two previous phases of the Hornsea Wind Zone, Hornsea 1 and Hornsea 2. The award adds to our backlog and leading position in the UK, Europe’s largest offshore wind market.

    (1) Subsea7 defines a substantial contract as being between USD 150 million and USD 300 million.

    *******************************************************************************
    Subsea7 is a global leader in the delivery of offshore projects and services for the evolving energy industry. We create sustainable value by being the industry’s partner and employer of choice in delivering the efficient offshore solutions the world needs.

    Subsea7 is listed on the Oslo Børs (SUBC), ISIN LU0075646355, LEI 222100AIF0CBCY80AH62.

    *******************************************************************************

    Contact for investment community enquiries:
    Katherine Tonks
    Investor Relations Director
    Tel +44 (0)20 8210 5568
    ir@subsea7.com

    Contact for media enquiries:
    Nikki Beales
    Communications Manager, Seaway7
    Tel +44 (0)7843895292
    nikki.beales@seaway7.com
    www.seaway7.com

    Forward-Looking Statements: This document may contain ‘forward-looking statements’ (within the meaning of the safe harbour provisions of the U.S. Private Securities Litigation Reform Act of 1995). These statements relate to our current expectations, beliefs, intentions, assumptions or strategies regarding the future and are subject to known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements may be identified by the use of words such as ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘future’, ‘goal’, ‘intend’, ‘likely’ ‘may’, ‘plan’, ‘project’, ‘seek’, ‘should’, ‘strategy’ ‘will’, and similar expressions. The principal risks which could affect future operations of the Group are described in the ‘Risk Management’ section of the Group’s Annual Report and Consolidated Financial Statements. Factors that may cause actual and future results and trends to differ materially from our forward-looking statements include (but are not limited to): (i) our ability to deliver fixed price projects in accordance with client expectations and within the parameters of our bids, and to avoid cost overruns; (ii) our ability to collect receivables, negotiate variation orders and collect the related revenue; (iii) our ability to recover costs on significant projects; (iv) capital expenditure by oil and gas companies, which is affected by fluctuations in the price of, and demand for, crude oil and natural gas; (v) unanticipated delays or cancellation of projects included in our backlog; (vi) competition and price fluctuations in the markets and businesses in which we operate; (vii) the loss of, or deterioration in our relationship with, any significant clients; (viii) the outcome of legal proceedings or governmental inquiries; (ix) uncertainties inherent in operating internationally, including economic, political and social instability, boycotts or embargoes, labour unrest, changes in foreign governmental regulations, corruption and currency fluctuations; (x) the effects of a pandemic or epidemic or a natural disaster; (xi) liability to third parties for the failure of our joint venture partners to fulfil their obligations; (xii) changes in, or our failure to comply with, applicable laws and regulations (including regulatory measures addressing climate change); (xiii) operating hazards, including spills, environmental damage, personal or property damage and business interruptions caused by adverse weather; (xiv) equipment or mechanical failures, which could increase costs, impair revenue and result in penalties for failure to meet project completion requirements; (xv) the timely delivery of vessels on order and the timely completion of ship conversion programmes; (xvi) our ability to keep pace with technological changes and the impact of potential information technology, cyber security or data security breaches; (xvii) global availability at scale and commercially viability of suitable alternative vessel fuels; and (xviii) the effectiveness of our disclosure controls and procedures and internal control over financial reporting. Many of these factors are beyond our ability to control or predict. Given these uncertainties, you should not place undue reliance on the forward-looking statements. Each forward-looking statement speaks only as of the date of this document. We undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
    This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
    This stock exchange release was published by Katherine Tonks, Investor Relations, Subsea7, on 29 October 2024 at 21:05 CET.

    Attachment

    The MIL Network

  • MIL-OSI: Skyward Specialty Insurance Group Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, Oct. 29, 2024 (GLOBE NEWSWIRE) — Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) (“Skyward Specialty” or the “Company”) today reported third quarter 2024 net income of $36.7 million, or $0.89 per diluted share, compared to $21.7 million, or $0.57 per diluted share, for the same 2023 period. Net income for the first nine months of 2024 was $104.4 million, or $2.53 per diluted share, compared to $56.7 million, or $1.50 per diluted share, for the same 2023 period.

    Adjusted operating income(1) for the third quarter of 2024 was $29.4 million, or $0.71 per diluted share, compared to $25.0 million, or $0.65 per diluted share, for the same 2023 period. Adjusted operating income(1) for the first nine months of 2024 was $93.4 million, or $2.26 per diluted share, compared to $56.5 million, or $1.49 per diluted share, for the same 2023 period.

    Highlights for the third quarter included:

    • Gross written premiums of $400.0 million an increase of 12.4% compared to the third quarter of 2023.
    • Combined ratio of 92.2% and ex-Cat combined ratio of 89.4% compared to 90.2% and 89.8%, respectively, for the third quarter of 2023.
    • Annualized return on equity of 19.1% through the first nine months of 2024 compared to 15.8% for the same 2023 period.
    • Book value per share of $19.89, an increase of 19% compared to December 31, 2023.
    (1)See “Reconciliation of Non-GAAP Financial Measures”

    Skyward Specialty Chairman and CEO Andrew Robinson commented, “These past weeks have proven to be a very difficult time and our thoughts continue to be with those impacted by Hurricanes Helene and Milton; I am proud of the extraordinary efforts of our claims team and partners who continue to deliver exceptional service to our customers affected by these catastrophes.”

    “As for our third quarter, our results reflect our continued excellent execution of our “Rule our Niche” strategy, and our disciplined underwriting and our strategic risk management. Our adjusted operating income was up nearly 18% over the prior year quarter, continuing the trend of strong earnings growth we have delivered every quarter as a public company, and our 19.1% annualized return on equity year to date is outstanding. We delivered gross written premiums growth of 12.4% over the prior year quarter while continuing to increase our mix of business to areas that are less exposed to the P&C cycles. Given investments into our business, the momentum building in certain divisions, and with full consideration for the market backdrop, I am confident that we are well positioned to deliver strong growth as we look forward to the coming quarters.”

    Results of Operations

    Underwriting Results

    Premiums                        
    ($ in thousands)   Three months ended September 30,   Nine months ended September 30,
    unaudited     2024       2023     % Change     2024       2023     % Change
    Gross written premiums   $ 400,014     $ 355,732     12.4 %   $ 1,354,877     $ 1,138,224     19.0 %
    Ceded written premiums   $ (131,692 )   $ (75,036 )   75.5 %   $ (502,326 )   $ (441,650 )   13.7 %
    Net retention     67.1 %     78.9 %   NM (1)       62.9 %     61.2 %   NM (1)  
    Net written premiums   $ 268,322     $ 280,696     (4.4 )%   $ 852,551     $ 696,574     22.4 %
    Net earned premiums   $ 269,557     $ 227,033     18.7 %   $ 763,482     $ 604,211     26.4 %
    (1)Not meaningful                        
                             

    The increase in gross written premiums for the third quarter and first nine months of 2024, when compared to the same 2023 periods, was driven by double-digit premium growth primarily from our transactional E&S, programs, captives, surety and global property & agriculture underwriting divisions.

    During the third quarter and first nine months of 2023, the Company cancelled a quota share reinsurance contract. Excluding the impact of the cancellation, net written premiums for the third quarter and first nine months of 2024 increased 16.5%(2) and 32.0%(2), respectively, when compared to the same 2023 periods.

    Combined Ratio   Three months ended September 30,   Nine months ended September 30,
    (unaudited)   2024   2023   2024   2023
    Non-cat loss and LAE(1)   60.6 %   60.7 %   60.6 %   60.9 %
    Cat loss and LAE(1)   2.8 %   0.4 %   1.5 %   1.8 %
    Prior accident year development – LPT(2)   (0.1 )%   (0.1 )%   (0.1 )%   (0.2 )%
    Loss Ratio   63.3 %   61.0 %   62.0 %   62.5 %
    Net policy acquisition costs   13.9 %   15.0 %   13.9 %   13.0 %
    Other operating and general expenses   15.7 %   15.1 %   15.8 %   16.3 %
    Commission and fee income   (0.7 )%   (0.9 )%   (0.8 )%   (1.0 )%
    Expense ratio   28.9 %   29.2 %   28.9 %   28.3 %
    Combined ratio   92.2 %   90.2 %   90.9 %   90.8 %
    Ex-Cat Combined Ratio(3)   89.4 %   89.8 %   89.4 %   89.0 %
                     
    Adjusted Underwriting Ratios                
    Adjusted loss ratio(2)   63.4 %   61.1 %   62.1 %   62.7 %
    Expense ratio   28.9 %   29.2 %   28.9 %   28.3 %
    Adjusted combined ratio(2)   92.3 %   90.3 %   91.0 %   91.0 %
    (1)Current accident year
    (2)See “Reconciliation of Non-GAAP Financial Measures”
    (3)Defined as the combined ratio excluding cat loss and LAE(1)            
                     

    The loss ratios for the third quarter and first nine months of 2024 increased 2.3 points and improved 0.5 points, respectively, when compared to the same 2023 periods. The third quarter of 2024 was impacted by higher catastrophe losses, primarily from Hurricanes Helene and Beryl.

    The expense ratios for the third quarter and first nine months of 2024 were comparable to the same 2023 periods.

    The expense ratios for all periods presented exclude the impact of IPO related stock compensation and secondary offering expenses, which are reported in other expenses in our condensed consolidated statements of operations and comprehensive income.

    Investment Results

    Net Investment Income                
    $ in thousands   Three months ended September 30,   Nine months ended September 30,
    (unaudited)     2024       2023       2024     2023  
    Short-term investments & cash and cash equivalents   $ 4,537     $ 3,022     $ 13,645   $ 8,007  
    Fixed income     15,458       9,488       41,722     24,867  
    Equities     596       650       1,974     1,332  
    Alternative & strategic investments     (1,070 )     (71 )     2,615     (7,888 )
    Net investment income   $ 19,521     $ 13,089     $ 59,956   $ 26,318  
    Net unrealized gains (losses) on securities still held   $ 8,378     $ (6,391 )   $ 15,609   $ 2,394  
    Net realized gains     1,809       3,407       1,056     934  
    Net investment gains (losses)   $ 10,187     $ (2,984 )   $ 16,665   $ 3,328  
     

    Beginning January 1, 2024 we simplified the investment portfolio classifications to align with our strategy and the underlying risk characteristics of the portfolio. The prior period has been reclassified to conform to the current period presentation.

    Net investment income for the third quarter and first nine months of 2024 increased $6.4 million and $33.6 million, respectively when compared to the same 2023 periods, primarily driven by increased income from our fixed income portfolio and short-term investments due to higher yields and larger asset bases.

    Stockholders’ Equity

    Stockholders’ equity was $797.5 million at September 30, 2024 which represents an increase of 10.2% when compared to stockholders’ equity of $723.6 million at June 30, 2024. The increase in stockholders’ equity was primarily due to net income and an increase in the market value of our investment portfolio.

    Share Repurchase Authorization

    In October 2024, the Company’s Board of Directors authorized a share repurchase program authorizing the repurchase of up to $50.0 million of the Company’s common stock.

    Skyward Specialty Chairman and CEO Andrew Robinson commented, “The share repurchase program allows Skyward to opportunistically deploy our capital in an accretive fashion and ultimately drive long-term value creation for our shareholders. Given our strong cash position and financing flexibility, the repurchase program will not limit our ability to support our near-term growth or our flexibility to support ongoing investment in the key growth areas of our business, or to capture additional value creating opportunities.”

    The shares may be repurchased from time to time in open market purchases, privately-negotiated transactions, block purchases, accelerated share repurchase agreements or a combination of methods and pursuant to safe harbors provided by Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934. The timing, manner, price and amount of any repurchases under the share repurchase program will be determined by the Company in its discretion. The stock repurchase program does not require the Company to repurchase any specific number of shares, and may be modified, suspended or terminated at any time.

    Conference Call

    At 9:30 a.m. eastern time tomorrow, October 30, 2024, Skyward Specialty management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion at investors.skywardinsurance.com under Events & Presentations. Additionally, investors can access the earnings call via conference call by registering via the conference link. Users will receive dial-in information and a unique PIN to join the call upon registering.

    Non-GAAP Financial Measures

    This release contains certain financial measures and ratios that are not required by, or presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). We refer to these measures as “non-GAAP financial measures.” We use these non-GAAP financial measures when planning, monitoring, and evaluating our performance.

    We have chosen to exclude the net impact of the Loss Portfolio Transfer (“LPT”), all development on reserves fully or partially covered by the LPT and amortization of deferred gains associated with recoveries of prior LPT reserve strengthening in certain non-GAAP metrics, where noted, as the business subject to the LPT is not representative of our continuing business strategy. The business subject to the LPT is primarily related to policy years 2017 and prior, was generated and managed under prior leadership, and has either been exited or substantially repositioned during the reevaluation of our portfolio. We consider these non-GAAP financial measures to be useful metrics for our management and investors to facilitate operating performance comparisons from period to period. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered supplemental in nature and is not meant to be a substitute for revenue or net income, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces their usefulness as comparative measures. For more information regarding these non-GAAP financial measures and a reconciliation of such measures to comparable GAAP financial measures, see the section entitled “Reconciliation of Non-GAAP Financial Measures.”

    About Skyward Specialty Insurance Group, Inc.

    Skyward Specialty is a rapidly growing and innovative specialty insurance company, delivering commercial property and casualty products and solutions on a non-admitted and admitted basis. The Company operates through eight underwriting divisions – Accident & Health, Captives, Global Property & Agriculture, Industry Solutions, Professional Lines, Programs, Surety and Transactional E&S. SKWD stock is traded on the Nasdaq Global Select Market, which represents the top fourth of all Nasdaq listed companies.

    Skyward Specialty’s subsidiary insurance companies consist of Houston Specialty Insurance Company, Imperium Insurance Company, Great Midwest Insurance Company, and Oklahoma Specialty Insurance Company. These insurance companies are rated A (Excellent) with stable outlook by A.M. Best Company. Additional information about Skyward Specialty can be found on our website at www.skywardinsurance.com.

    Forward-Looking Statements

    Except for historical information, all other information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are typically, but not always, identified through use of the words “believe,” “expect,” “enable,” “may,” “will,” “could,” “intends,” “estimate,” “anticipate,” “plan,” “predict,” “probable,” “potential,” “possible,” “should,” “continue,” and other words of similar meaning. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. The most significant of these uncertainties are described in Skyward Specialty’s Form 10-K, and include (but are not limited to) legislative changes at both the state and federal level, state and federal regulatory rule making promulgations and adjudications, class action litigation involving the insurance industry and judicial decisions affecting claims, policy coverages and the general costs of doing business, the potential loss of key members of our management team or key employees and our ability to attract and retain personnel, the impact of competition on products and pricing, inflation in the costs of the products and services insurance pays for, product development, geographic spread of risk, weather and weather-related events, other types of catastrophic events, our ability to obtain reinsurance coverage at prices and on terms that allow us to transfer risk and adequately protect our company against financial loss, and losses resulting from reinsurance counterparties failing to pay us on reinsurance claims. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

    Skyward Specialty Insurance Group, Inc.

    Investor contact:
    Natalie Schoolcraft,
    nschoolcraft@skywardinsurance.com
    614-494-4988

    or

    Media contact:
    Haley Doughty
    hdoughty@skywardinsurance.com
    713-935-4944

    Skyward Specialty Insurance Group, Inc.
    Consolidated Balance Sheets        
    ($ in thousands, except share and per share amounts)        
    (unaudited)   September 30, 2024   December 31, 2023
    Assets        
    Investments:        
    Fixed maturity securities, available-for-sale, at fair value (amortized cost of $1,359,700 and $1,047,713, respectively)   $ 1,357,500     $ 1,017,651  
    Fixed maturity securities, held-to-maturity, at amortized cost (net of allowance for credit losses of $239 and $329, respectively)     39,321       42,986  
    Equity securities, at fair value     124,719       118,249  
    Mortgage loans, at fair value     36,267       50,070  
    Equity method investments     102,111       110,653  
    Other long-term investments     23,802       3,852  
    Short-term investments, at fair value     206,358       270,226  
    Total investments     1,890,078       1,613,687  
    Cash and cash equivalents     105,573       65,891  
    Restricted cash     45,783       34,445  
    Premiums receivable, net     327,176       179,235  
    Reinsurance recoverables, net     686,725       596,334  
    Ceded unearned premium     236,962       186,121  
    Deferred policy acquisition costs     119,910       91,955  
    Deferred income taxes     18,502       21,991  
    Goodwill and intangible assets, net     87,607       88,435  
    Other assets     80,547       75,341  
    Total assets   $ 3,598,863     $ 2,953,435  
    Liabilities and stockholders’ equity        
    Liabilities:        
    Reserves for losses and loss adjustment expenses   $ 1,568,777     $ 1,314,501  
    Unearned premiums     692,452       552,532  
    Deferred ceding commission     44,984       37,057  
    Reinsurance and premium payables     200,967       150,156  
    Funds held for others     102,219       58,588  
    Accounts payable and accrued liabilities     73,001       50,880  
    Notes payable     100,000       50,000  
    Subordinated debt, net of debt issuance costs     18,956       78,690  
    Total liabilities     2,801,356       2,292,404  
    Stockholders’ equity        
    Common stock, $0.01 par value, 500,000,000 shares authorized, 40,099,931 and 39,863,756 shares issued and outstanding, respectively     401       399  
    Additional paid-in capital     716,095       710,855  
    Stock notes receivable           (5,562 )
    Accumulated other comprehensive loss     (1,703 )     (22,953 )
    Retained earnings (accumulated deficit)     82,714       (21,708 )
    Total stockholders’ equity     797,507       661,031  
    Total liabilities and stockholders’ equity   $ 3,598,863     $ 2,953,435  
             
    Skyward Specialty Insurance Group, Inc.
    Condensed Consolidated Statements of Operations and Comprehensive Income
    ($ in thousands)   Three months ended September 30,   Nine months ended September 30,
    (unaudited)     2024       2023       2024       2023  
                     
    Revenues:                
    Net earned premiums   $ 269,557     $ 227,033     $ 763,482     $ 604,211  
    Commission and fee income     1,818       2,085       5,897       5,817  
    Net investment income     19,521       13,089       59,956       26,318  
    Net investment gains (losses)     10,187       (2,984 )     16,665       3,328  
    Other loss     (195 )           (202 )      
    Total revenues     300,888       239,223       845,798       639,674  
    Expenses:                
    Losses and loss adjustment expenses     170,521       138,536       473,489       377,841  
    Underwriting, acquisition and insurance expenses     79,817       68,315       226,270       176,653  
    Interest expense     2,229       2,632       7,405       7,250  
    Amortization expense     351       463       1,099       1,336  
    Other expenses     1,117       1,482       3,350       4,061  
    Total expenses     254,035       211,428       711,613       567,141  
    Income before income taxes     46,853       27,795       134,185       72,533  
    Income tax expense     10,185       6,084       29,763       15,814  
    Net income     36,668       21,711       104,422       56,719  
    Net income attributable to participating securities                       1,492  
    Net income attributable to common stockholders   $ 36,668     $ 21,711     $ 104,422     $ 55,227  
    Comprehensive income:                
    Net income   $ 36,668     $ 21,711     $ 104,422     $ 56,719  
    Other comprehensive income:                
    Unrealized gains and losses on investments:                
    Net change in unrealized gains (losses) on investments, net of tax     31,396       (8,722 )     24,527       (5,309 )
    Reclassification adjustment for losses on securities no longer held, net of tax     (1,963 )     (3,667 )     (3,277 )     (4,879 )
    Total other comprehensive income (loss)     29,433       (12,389 )     21,250       (10,188 )
    Comprehensive income   $ 66,101     $ 9,322     $ 125,672     $ 46,531  
                     
    Skyward Specialty Insurance Group, Inc.
    Share and Per Share Data                
    ($ in thousands, except share and per share amounts)   Three months ended September 30,   Nine months ended September 30,
    (unaudited)     2024       2023       2024       2023  
                     
    Weighted average basic shares     40,098,345       36,743,393       40,039,269       35,502,843  
    Weighted average diluted shares     41,428,557       38,403,843       41,302,108       37,830,431  
                     
    Basic earnings per share   $ 0.91     $ 0.59     $ 2.61     $ 1.56  
    Diluted earnings per share   $ 0.89     $ 0.57     $ 2.53     $ 1.50  
    Basic adjusted operating earnings per share   $ 0.73     $ 0.68     $ 2.33     $ 1.55  
    Diluted adjusted operating earnings per share   $ 0.71     $ 0.65     $ 2.26     $ 1.49  
                     
    Annualized ROE (1)     19.3 %     16.4 %     19.1 %     15.8 %
    Annualized adjusted ROE (2)     15.5 %     18.9 %     17.1 %     15.8 %
    Annualized ROTE (3)     21.8 %     19.7 %     21.7 %     19.4 %
    Annualized adjusted ROTE (4)     17.5 %     22.8 %     19.4 %     19.4 %
                     
                September 30   December 31
                  2024       2023  
                     
    Shares outstanding             40,099,931       39,863,756  
    Fully diluted shares outstanding             41,986,881       41,771,854  
                     
    Book value per share           $ 19.89     $ 16.72  
    Fully diluted book value per share           $ 18.99     $ 15.96  
    Fully diluted tangible book value per share           $ 16.91     $ 13.84  
                     
    (1)Annualized ROE is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period
    (2)Annualized adjusted ROE is adjusted operating income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period
    (3)Annualized ROTE is net income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders’ equity during the period
    (4)Annualized adjusted ROTE is adjusted operating income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders’ equity during the period

    Skyward Specialty Insurance Group, Inc.
    Reconciliation of Non-GAAP Financial Measures

    Adjusted operating income – We define adjusted operating income as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We use adjusted operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Adjusted operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define adjusted operating income differently.        

    ($ in thousands) Three months ended September 30,   Nine months ended September 30,
    (unaudited)   2024       2023       2024       2023  
      Pre-tax   After-tax   Pre-tax   After-tax   Pre-tax   After-tax   Pre-tax   After-tax
    Income as reported $ 46,853     $ 36,668     $ 27,795     $ 21,711     $ 134,185     $ 104,422     $ 72,533     $ 56,719  
    Less (add):                              
    Net investment gains (losses)   10,187       8,048       (2,984 )     (2,357 )     16,665       13,165       3,328       2,629  
    Net impact of loss portfolio transfer   318       251       266       210       800       632       970       766  
    Other loss   (195 )     (154 )                 (202 )     (160 )            
    Other expenses   (1,117 )     (882 )     (1,482 )     (1,171 )     (3,350 )     (2,647 )     (4,061 )     (3,208 )
    Adjusted operating income $ 37,660     $ 29,405     $ 31,995     $ 25,029     $ 120,272     $ 93,432     $ 72,296     $ 56,532  
                                   


    Quota Share Reinsurance Cancellation
    Reconciliation – to exclude the impact of the cancellation of a quota share reinsurance contract on ceded written premiums, net retention, net written premiums and net earned premiums for the three and nine months ended September 30, 2023:

      Three months ended September 30,
        2024       2023     %
    (unaudited) As Reported   As Reported   Adjustment   Adjusted   Change
    Ceded written premiums $ (131,692 )   $ (75,036 )   $ (50,462 )   $ (125,498 )   4.9 %
    Net retention   67.1 %     78.9 %         64.7 %   NM (1)
    Net written premiums $ 268,322     $ 280,696     $ (50,462 )   $ 230,234     16.5 %
    Net earned premiums $ 269,557     $ 227,033     $ (13,145 )   $ 213,888     26.0 %
                       
      Nine months ended September 30,
        2024       2023     %
      As Reported   As Reported   Adjustment   Adjusted   Change
    Ceded written premiums $ (502,326 )   $ (441,650 )   $ (50,462 )   $ (492,112 )   2.1 %
    Net retention   62.9 %             56.8 %   NM (1)
    Net written premiums $ 852,551     $ 696,574     $ (50,462 )   $ 646,112     32.0 %
    Net earned premiums $ 763,482     $ 604,211     $ (13,145 )   $ 591,066     29.2 %
                       
    (1)Not meaningful                  
                       


    Underwriting income
    – We define underwriting income as net income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, impairment charges, interest expense, amortization expense and other income and expenses. Underwriting income represents the pre-tax profitability of our underwriting operations and allows us to evaluate our underwriting performance without regard to investment income. We use this metric as we believe it gives our management and other users of our financial information useful insight into our underlying business performance. Underwriting income should not be viewed as a substitute for pre-tax income calculated in accordance with GAAP, and other companies may define underwriting income differently.

    ($ in thousands)   Three months ended September 30,   Nine months ended September 30,
    (unaudited)     2024       2023       2024     2023
    Income before federal income tax expense   $ 46,853     $ 27,795     $ 134,185     $ 72,533
    Add:                
    Interest expense     2,229       2,632       7,405       7,250
    Amortization expense     351       463       1,099       1,336
    Other expenses     1,117       1,482       3,350       4,061
    Less:                
    Net investment income     19,521       13,089       59,956       26,318
    Net investment gains (losses)     10,187       (2,984 )     16,665       3,328
    Other loss     (195 )           (202 )    
    Underwriting income   $ 21,037     $ 22,267     $ 69,620     $ 55,534
                     


    Adjusted Loss Ratio / Adjusted Combined Ratio
    – We define adjusted loss ratio and adjusted combined ratio as the corresponding ratio (calculated in accordance with GAAP), excluding losses and LAE related to the LPT and all development on reserves fully or partially covered by the LPT and amortization of deferred gains associated with recoveries of prior LPT reserve strengthening. We use these adjusted ratios as internal performance measures in the management of our operations because we believe they give our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Our adjusted loss ratio and adjusted combined ratio should not be viewed as substitutes for our loss ratio and combined ratio, respectively.

    ($ in thousands)   Three months ended September 30,   Nine months ended September 30,
    (unaudited)     2024       2023       2024       2023  
    Net earned premiums   $ 269,557     $ 227,033     $ 763,482     $ 604,211  
                     
    Losses and LAE     170,521       138,536       473,489       377,841  
    Less: Pre-tax net impact of LPT     (318 )     (266 )     (800 )     (970 )
    Adjusted losses and LAE   $ 170,839     $ 138,802     $ 474,289     $ 378,811  
                     
    Loss ratio     63.3 %     61.0 %     62.0 %     62.5 %
    Less: net impact of LPT   (0.1 )%   (0.1 )%   (0.1 )%   (0.2 )%
    Adjusted loss ratio     63.4 %     61.1 %     62.1 %     62.7 %
                     
    Combined ratio     92.2 %     90.2 %     90.9 %     90.8 %
    Less: net impact of LPT   (0.1 )%   (0.1 )%   (0.1 )%   (0.2 )%
    Adjusted combined ratio     92.3 %     90.3 %     91.0 %     91.0 %
                     

    Tangible Stockholders’ Equity – We define tangible stockholders’ equity as stockholders’ equity less goodwill and intangible assets. Our definition of tangible stockholders’ equity may not be comparable to that of other companies and should not be viewed as a substitute for stockholders’ equity calculated in accordance with GAAP. We use tangible stockholders’ equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure.

    ($ in thousands)   September 30,   December 31,
    (unaudited)   2024   2023   2023
    Stockholders’ equity   $ 797,507   $ 535,397   $ 661,031
    Less: Goodwill and intangible assets     87,607     88,808     88,435
    Tangible stockholders’ equity   $ 709,900   $ 446,589   $ 572,596
                 

    Skyward Specialty Insurance Group, Inc.
    Gross Written Premiums by Underwriting Division (Unaudited)

        Three months ended September 30,   Nine months ended September 30,
    ($ in thousands)   2024   2023   % Change   2024   2023   % Change
    Global Property & Agriculture   $ 54,360   $ 48,775   11.5 %   $ 279,721   $ 247,195   13.2 %
    Industry Solutions     74,089     79,798   (7.2 )%     236,460     226,680   4.3 %
    Captives     53,630     41,886   28.0 %     184,137     127,249   44.7 %
    Programs     54,434     41,735   30.4 %     166,256     143,032   16.2 %
    Transactional E&S     44,885     30,699   46.2 %     132,791     90,948   46.0 %
    Accident & Health     43,490     39,554   10.0 %     128,479     112,819   13.9 %
    Professional Lines     40,310     48,259   (16.5 )%     120,655     114,420   5.4 %
    Surety     34,816     24,977   39.4 %     106,395     75,899   40.2 %
    Total gross written premiums(1)   $ 400,014   $ 355,683   12.5 %   $ 1,354,894   $ 1,138,242   19.0 %
    (1)Excludes exited business                        

    The MIL Network

  • MIL-OSI: Enovix Announces Third Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    FREMONT, Calif., Oct. 29, 2024 (GLOBE NEWSWIRE) — Enovix Corporation (“Enovix”) (Nasdaq: ENVX), a global high-performance battery company, announced today financial results for third quarter 2024, which included the summary below from its President and CEO, Dr. Raj Talluri.

    Fellow Shareholders,

    In the third quarter of 2024, we made significant progress on our journey to scale. The unveiling of Fab2 was a major boost in confidence with multiple customers now indicating a desire to launch products with us starting from late 2025.

    Other recent highlights include:

    • Revenue growth: Revenues were $4.3 million in the third quarter, above our guidance midpoint and up from $3.8 million in the second quarter.
    • Manufacturing: The Company formally opened Fab2 in Malaysia and within weeks commenced shipping battery cells to customers.
    • Commercialization: A leading smartphone OEM signed a development agreement for qualification of our battery product and mass production launch in late 2025.
    • Cost reduction: We are on track to further reduce cash consumption by leveraging our new Malaysia operations which will provide runway into 2026.

    We are laser-focused on execution as we see increasing demand across our target markets. The strategy we established early last year prioritized large, high-value segments, such as smartphones and AR/VR headsets, where the need for higher energy density commands a premium. This approach has proven to be visionary, with the recent surge in AI-enabled smartphones further validating our strategy and driving significant pull for our products. We are confident that our go-to-market strategy positions Enovix on an expedient path to profitability while maintaining a competitive edge in innovation.

    Our analysis of recent smartphone launches highlights a critical shortfall in conventional batteries. Energy density improvements in flagship devices released in 2024 have stagnated, with a mere 1% year-over-year increase. We believe this trajectory is insufficient to meet escalating demands of modern devices, especially those powered by AI.

    In contrast, our battery technology roadmap offers a generational leap in energy density. With our Malaysia Fab now gearing up for production, we are in a full sprint to commercialize this transformative technology and meet the pressing needs of the industry. Our focus on rapid execution will enable us to offer substantial benefits to our customers and consumers alike, positioning us as a leader in next-generation battery solutions.

    Business Update

    Manufacturing. We formally opened Fab2 in Malaysia with various stakeholders including several leading smartphone OEMs that provided decidedly positive feedback on ramp quality and speed, as well as the level of automation. A total of 11 customers have now inspected our new facility. The Agility Line is fully operational with initial yields comparable to final levels we achieved with our first manufacturing line in California, with expected improvements on the horizon. Consistent with our plans, we commenced shipping EX-1M cells to customers in the third quarter, supporting their qualification and mass production timelines. We are on track to complete Site Acceptance Testing (SAT) of the High-Volume Line in Q4 2024.

    Commercialization. Our business team has made significant progress toward profitability by securing demand across multiple high-growth markets. We are excited to announce that we have formalized a strategic partnership with a second leading smartphone OEM. This agreement outlines key milestones, and upon meeting them, we are poised to enter the smartphone market in late 2025 with high-volume production from our Fab2 facility. This marks a major step forward in our journey to scale.

    In parallel, we have aligned on a production schedule with a leading IoT customer, which includes a mass production purchase order also slated for 2025. This partnership underscores our ability to diversify into high-value sectors beyond smartphones. Further, we are aggressively expanding our pipeline by engaging with strategic IoT customers to unlock high-growth opportunities and accelerate top-of-the-funnel momentum.

    In the EV space, we are advancing our targeted strategy of developing customized products with two of the world’s largest automotive OEMs. In Q4, we expect to complete our first milestone pursuant to the agreement with one of the major automakers in the EV market, which is a major milestone in our efforts to enter and grow within the EV market. Looking ahead, we are focused on expanding these relationships in 2025, leveraging a capital-efficient, licensing-based business model in the EV space that aligns with the long-term scalability of our technology.

    Products: Our product development team is advancing toward the 2025 mass production of EX-1M, which will highlight the capabilities of our breakthrough active silicon technology. In Q3, we successfully achieved UN38.3 certification, marking a critical milestone for market entry and a strong validation of our products’ safety.

    In addition, we are on track to sample EX-2M to select customers in Q4. We’re now making samples and have identified the product’s advanced electrochemistry. These early samples will be instrumental in accelerating the timeline to full-scale production. Finally, we have made progress on the comprehensive product definition of EX-3M, reaffirming our commitment to pushing the boundaries of innovation and delivering industry-leading solutions to customers across a range of industries.

    Financials: Revenue was $4.3 million in the third quarter of 2024, near the high end of our guidance range and up from $3.8 million in the second quarter of 2024.

    Our GAAP cost of revenue was $5.0 million in the third quarter of 2024 representing a slight reduction sequentially as a percentage of sales and leading to a similar gross income level.

    Our GAAP operating expenses of $48.6 million in the third quarter of 2024 were down from $88.1 million in the second quarter, due largely to lower restructuring costs which were concentrated in the previous quarter as the Company shifted our manufacturing operations from the U.S. to Malaysia. Our non-GAAP operating expenses were $27.2 million in the third quarter of 2024, down 12% from $30.9 million in the second quarter of 2024.

    Our GAAP net loss attributable to Enovix of $22.5 million in the third quarter of 2024 was down from $115.9 million in the second quarter of 2024 due to lower restructuring costs. Our GAAP net loss attributable to Enovix for the third quarter of 2024 also included $29.9 million of income due to a decrease in the fair value of our common stock warrants during the quarter.

    Adjusted EBITDA in the third quarter of 2024 was a loss of $21.6 million compared to an adjusted EBITDA loss of $23.1 million in the second quarter of 2024.

    Earnings per share loss in the third quarter of 2024 was $0.30 on a GAAP basis and $0.17 on a non-GAAP basis compared to second quarter earnings per share loss of $0.67 on a GAAP basis and $0.14 on a non-GAAP basis.

    We exited the third quarter of 2024 with $200.9 million of cash, cash equivalents, and short-term investments due to cash used in operating activities of $30.7 million and capital expenditures of $19.5 million during the quarter.

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

    Outlook

    For the fourth quarter of 2024, we expect revenue between $8.0 million and $10.0 million, a GAAP EPS loss of $0.23 to $0.29, an adjusted EBITDA loss of $19.0 million to $25.0 million, and a non-GAAP EPS loss of $0.15 to $0.21.

    Summary

    We are very pleased with our accomplishments in the third quarter. Fab2 is now operational and shipping samples to customers. We secured a 2025 launch commitment from a major smartphone OEM. And we made progress on our product roadmap for EX-2M and beyond. For the remaining months of 2024, the key objectives are completing SAT for the High-Volume Line and shipping EX-2M samples.

    Conference Call Information

    Enovix will hold a video conference call at 2:00 PM PT / 5:00 PM ET today, October 29, 2024, to discuss the company’s business updates and financial results. To join the call, participants must use the following link to register: https://enovix-q3-2024.open-exchange.net/registration. This link will also be available via the Investor Relations section of the Enovix’s website at https://ir.enovix.com. An archived version of the call will be available on the Enovix website for one year at https://ir.enovix.com.

    About Enovix

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

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

    Non-GAAP Financial Measures

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

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

    While Enovix provides fourth quarter 2024 guidance for adjusted EBITDA loss and non-GAAP EPS loss, we are unable to provide without unreasonable effort a GAAP to non-GAAP reconciliation of these projected non-GAAP measures. Such qualitative reconciliation to the corresponding GAAP financial measure cannot be provided without unreasonable effort because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjustments that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to warrant liabilities and stock-based compensation. For the same reasons, we are unable to assess the probable significance of the unavailable information, which could have a material impact on our future GAAP financial results.

    Forward-Looking Statements

    This letter to shareholders contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance and can be identified by words such as anticipate, believe, continue, could, estimate, expect, intend, may, might, plan, possible, potential, predict, project, should, would and similar expressions that convey uncertainty about future events or outcomes. Forward-looking statements in this letter to shareholders include, without limitation, our expectations regarding, and our ability to respond to, market and customer demand; our expectations regarding the level of customers’ interest in our batteries, the demand for more energy dense batteries and the suitability of our products to address this demand, and the impact of artificial intelligence (“AI”) features on the foregoing; our financial and business performance; projected improvements in our manufacturing and commercialization and R&D activities at Fab2, including the ability of the sales team to support the path to profitability by attracting demand across high-growth markets ; our achievement of the milestones under our strategic partnership with a second leading smartphone OEM and our ability to enter into the smartphone market in 2025 with high-volume production from our Fab2 facility; our expectations regarding EX-1M production and mass production purchase order with a leading IoT customer in 2025, completion of site acceptance testing for our High-Volume Line, and the shipment of EX-2M samples in Q4; our ability to meet goals for yield and throughput; our expectations regarding Fab2 in and its capacity to support multiple customer qualifications; the anticipated contributions of our R&D teams to support product innovation; our revenue funnel; our efforts in the portable electronics and EV markets, including the IoT, smartphone and virtual reality categories; our ability to meet milestones and deliver on our objectives and expectations, including achieving certain safety certifications for our products and our ability sample batteries from our Agility Line to customers; the implementation and expected success of our business model and growth strategy, including our focus on the addressable market categories in which we believe an improved battery drives a high value to the product and premium pricing for our solutions; our ability to manage our expenses and realize our annual cost savings goals; our ability to manage and achieve the benefits of our restructuring efforts; and forecasts of our financial and performance metrics.

    Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties, including, without limitation, our ability to improve energy density among our products, establish sufficient manufacturing operations and optimize manufacturing processes to meet demand, source materials and establish supply relationships, and secure adequate funds to execute on our operational and strategic goals; the safety hazards associated with our batteries and the manufacturing process; a concentration of customers in the military market; certain unfavorable terms in our commercial agreements that may limit our ability to market our products; market acceptance of our products; changes in consumer preferences or demands; changes in industry standards; the impact of technological development and competition; and global economic conditions, including inflationary and supply chain pressures, and political, social, and economic instability, including as a result of armed conflict, war or threat of war, or trade and other international disputes that could disrupt supply or delivery of, or demand for, our products.

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

    For media and investor inquiries, please contact:

    Enovix Corporation
    Robert Lahey
    Email: ir@enovix.com

    Enovix Corporation
    Condensed Consolidated Balance Sheets
    (Unaudited)
    (In Thousands, Except Share and per Share Amounts)
     
      September 29,
    2024
      December 31,
    2023
    Assets      
    Current assets:      
    Cash and cash equivalents $ 200,912     $ 233,121  
    Short-term investments         73,694  
    Accounts receivable, net   1,911       909  
    Notes receivable, net         1,514  
    Inventory   9,564       8,737  
    Prepaid expenses and other current assets   11,598       5,202  
    Total current assets   223,985       323,177  
    Property and equipment, net   157,680       166,471  
    Customer relationship intangibles and other intangibles, net   37,583       42,168  
    Operating lease, right-of-use assets   13,810       15,290  
    Goodwill   12,217       12,098  
    Other assets, non-current   2,746       5,100  
    Total assets $ 448,021     $ 564,304  
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable $ 15,046     $ 21,251  
    Accrued expenses   13,855       13,976  
    Accrued compensation   8,038       10,731  
    Short-term debt   11,555       5,917  
    Deferred revenue   6,206       6,708  
    Other liabilities   4,760       2,435  
    Total current liabilities   59,460       61,018  
    Long-term debt, net   168,744       169,099  
    Warrant liability   23,265       42,900  
    Operating lease liabilities, non-current   14,346       15,594  
    Deferred revenue, non-current   3,774       3,774  
    Deferred tax liability   8,178       10,803  
    Other liabilities, non-current   12       13  
    Total liabilities   277,779       303,201  
    Commitments and Contingencies      
    Stockholders’ equity:      
    Common stock, $0.0001 par value; authorized shares of 1,000,000,000; issued and outstanding shares of $177,591,877 and $167,392,315 as of September 29, 2024 and December 31, 2023, respectively   18       17  
    Additional paid-in-capital   951,237       857,037  
    Accumulated other comprehensive loss   (42 )     (62 )
    Accumulated deficit   (783,621 )     (598,845 )
    Total Enovix’s stockholders’ equity   167,592       258,147  
    Non-controlling interest   2,650       2,956  
    Total equity   170,242       261,103  
    Total liabilities and equity $ 448,021     $ 564,304  
     
    Enovix Corporation
    Condensed Consolidated Statements of Operations
    (Unaudited)
    (In Thousands, Except Share and per Share Amounts)
     
      Quarters Ended   Fiscal Years-to-Date Ended
      September 29,
    2024
      October 1,
    2023
      September 29,
    2024
      October 1,
    2023
    Revenue $ 4,317     $ 200     $ 13,357     $ 263  
    Cost of revenue   4,959       16,809       16,454       43,292  
    Gross margin   (642 )     (16,609 )     (3,097 )     (43,029 )
    Operating expenses:              
    Research and development   24,220       13,508       102,073       53,810  
    Selling, general and administrative   20,744       17,245       61,176       61,207  
    Impairment of equipment                     4,411  
    Restructuring cost   3,661       3,021       41,807       3,021  
    Total operating expenses   48,625       33,774       205,056       122,449  
    Loss from operations   (49,267 )     (50,383 )     (208,153 )     (165,478 )
    Other income (expense):              
    Change in fair value of common stock warrants   29,899       31,320       17,359       4,140  
    Interest income   2,859       4,326       9,745       9,942  
    Interest expense   (1,718 )     (1,557 )     (5,068 )     (2,827 )
    Other income (loss), net   (2,217 )     109       (1,509 )     129  
    Total other income, net   28,823       34,198       20,527       11,384  
    Loss before income tax benefit   (20,444 )     (16,185 )     (187,626 )     (154,094 )
    Income tax expense (benefit)   2,194             (2,544 )      
    Net loss   (22,638 )     (16,185 )     (185,082 )     (154,094 )
    Net loss attributable to non-controlling interests   (102 )           (306 )      
    Net loss attributable to Enovix $ (22,536 )   $ (16,185 )   $ (184,776 )   $ (154,094 )
                   
    Net loss per share attributable to Enovix shareholders, basic $ (0.13 )   $ (0.10 )   $ (1.07 )   $ (0.98 )
    Weighted average number of common shares outstanding, basic   176,680,578       159,829,716       172,393,869       157,559,138  
    Net loss per share attributable to Enovix shareholders, diluted $ (0.30 )   $ (0.29 )   $ (1.07 )   $ (1.00 )
    Weighted average number of common shares outstanding, diluted   176,872,382       161,371,417       172,393,869       158,260,393  
                                   
    Enovix Corporation
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)
    (In Thousands)
     
      Fiscal Years-to-Date Ended
      September 29, 2024   October 1, 2023
    Cash flows used in operating activities:      
    Net loss $ (185,082 )   $ (154,094 )
    Adjustments to reconcile net loss to net cash used in operating activities      
    Depreciation, accretion and amortization   37,417       10,000  
    Stock-based compensation   48,630       57,832  
    Changes in fair value of common stock warrants   (17,359 )     (4,140 )
    Impairment and loss on disposals of long-lived assets   38,249       4,411  
    Others   174        
    Changes in operating assets and liabilities:      
    Accounts and notes receivables   494       169  
    Inventory   (827 )     418  
    Prepaid expenses and other assets   (3,913 )     546  
    Accounts payable   (10,018 )     4,338  
    Accrued expenses and compensation   3,175       3,113  
    Deferred revenue   (502 )      
    Deferred tax liability   (3,303 )      
    Other liabilities   190       (1 )
    Net cash used in operating activities   (92,675 )     (77,408 )
    Cash flows from investing activities:      
    Purchase of property and equipment   (59,830 )     (32,979 )
    Purchases of investments   (31,812 )     (115,736 )
    Maturities of investments   106,621       16,700  
    Net cash provided by (used in) investing activities   14,979       (132,015 )
    Cash flows from financing activities:      
    Proceeds from issuance of Convertible Senior Notes and loans   4,572       172,500  
    Repayment of debt   (180 )      
    Payments of debt issuance costs         (5,251 )
    Purchase of Capped Calls         (17,250 )
    Payroll tax payments for shares withheld upon vesting of RSUs   (5,601 )     (2,988 )
    Proceeds from the exercise of stock options and issuance of common stock, net of issuance costs   44,285       9,232  
    Proceeds from issuance of common stock under employee stock purchase plan   1,145       1,169  
    Repurchase of unvested restricted common stock   (4 )     (23 )
    Net cash provided by financing activities   44,217       157,389  
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   1,303        
    Change in cash, cash equivalents, and restricted cash   (32,176 )     (52,034 )
    Cash and cash equivalents and restricted cash, beginning of period   235,123       322,976  
    Cash and cash equivalents, and restricted cash, end of period $ 202,947     $ 270,942  
           

    Net Loss Attributable to Enovix to Adjusted EBITDA Reconciliation

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

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

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

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

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

      Quarters Ended   Fiscal Years-to-Date Ended
      September 29,
    2024
      October 1,
    2023
      September 29,
    2024
      October 1,
    2023
    Net loss attributable to Enovix $ (22,536 )   $ (16,185 )   $ (184,776 )   $ (154,094 )
    Interest expense   1,718       1,557       5,068       2,827  
    Income tax expense (benefit)   2,194             (2,544 )      
    Depreciation and amortization   6,500       2,900       37,417       10,000  
    EBITDA   (12,124 )     (11,728 )     (144,835 )     (141,267 )
    Stock-based compensation expense (1)   16,722       13,274       47,414       57,473  
    Change in fair value of common stock warrants   (29,899 )     (31,320 )     (17,359 )     (4,140 )
    Inventory step-up               1,907        
    Impairment of equipment                     4,411  
    Restructuring cost (1)   3,661       3,021       41,807       3,021  
    Acquisition cost         1,115             1,115  
    Adjusted EBITDA $ (21,640 )   $ (25,638 )   $ (71,066 )   $ (79,387 )
       
       
       
    (1) $0.1 million and $1.2 million of stock-based compensation expense are included in the restructuring cost line of the table above for the quarter and fiscal year-to-date ended September 29, 2024, respectively. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the quarter and fiscal year-to-date ended October 1, 2023.
     

    Free Cash Flow Reconciliation

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

      Fiscal Years-to-Date Ended
      September 29,
    2024
      October 1,
    2023
    Net cash used in operating activities $ (92,675 )   $ (77,408 )
    Capital expenditures   (59,830 )     (32,979 )
    Free Cash Flow $ (152,505 )   $ (110,387 )
     

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

        Quarters Ended   Fiscal Years-to-Date Ended
        September 29,
    2024
      October 1,
    2023
      September 29,
    2024
      October 1,
    2023
    Revenue   $ 4,317     $ 200     $ 13,357     $ 263  
                     
    GAAP cost of revenue   $ 4,959     $ 16,809     $ 16,454     $ 43,292  
    Stock-based compensation expense     (101 )     (2,396 )     (196 )     (5,001 )
    Inventory step-up                 (1,907 )      
    Non-GAAP cost of revenue   $ 4,858     $ 14,413     $ 14,351     $ 38,291  
                     
    GAAP gross margin   $ (642 )   $ (16,609 )   $ (3,097 )   $ (43,029 )
    Stock-based compensation expense     101       2,396       196       5,001  
    Inventory step-up                 1,907        
    Non-GAAP gross margin   $ (541 )   $ (14,213 )   $ (994 )   $ (38,028 )
                     
    GAAP research and development (R&D) expense   $ 24,220     $ 13,508     $ 102,073     $ 53,810  
    Stock-based compensation expense     (5,914 )     (4,949 )     (19,771 )     (22,072 )
    Amortization of intangible assets     (417 )           (1,248 )      
    Non-GAAP R&D expense   $ 17,889     $ 8,559     $ 81,054     $ 31,738  
                     
    GAAP selling, general and administrative (SG&A) expense   $ 20,744     $ 17,245     $ 61,176     $ 61,207  
    Stock-based compensation expense     (10,707 )     (5,929 )     (27,447 )     (30,400 )
    Amortization of intangible assets     (774 )           (2,304 )      
    Acquisition cost           (1,115 )           (1,115 )
    Non-GAAP SG&A expense   $ 9,263     $ 10,201     $ 31,425     $ 29,692  
                     
    GAAP operating expenses   $ 48,625     $ 33,774     $ 205,056     $ 122,449  
    Stock-based compensation expense included in R&D expense     (5,914 )     (4,949 )     (19,771 )     (22,072 )
    Stock-based compensation expense included in SG&A expense     (10,707 )     (5,929 )     (27,447 )     (30,400 )
    Amortization of intangible assets     (1,191 )           (3,552 )      
    Impairment of equipment                       (4,411 )
    Restructuring cost (1)     (3,661 )     (3,021 )     (41,807 )     (3,021 )
    Acquisition cost           (1,115 )           (1,115 )
    Non-GAAP operating expenses   $ 27,152     $ 18,760     $ 112,479     $ 61,430  
                     
       
       
    (1) $0.1 million and $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the quarter and fiscal year-to-date ended September 29, 2024, respectively. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the quarter and fiscal year-to-date ended October 1, 2023.
       
        Quarters Ended   Fiscal Years-to-Date Ended
        September 29,
    2024
      October 1,
    2023
      September 29,
    2024
      October 1,
    2023
    GAAP loss from operations   $ (49,267 )   $ (50,383 )   $ (208,153 )   $ (165,478 )
    Stock-based compensation expense (1)     16,722       13,274       47,414       57,473  
    Amortization of intangible assets     1,191             3,552        
    Inventory step-up                 1,907        
    Impairment of equipment                       4,411  
    Restructuring cost (1)     3,661       3,021       41,807       3,021  
    Acquisition cost           1,115             1,115  
    Non-GAAP loss from operations   $ (27,693 )   $ (32,973 )   $ (113,473 )   $ (99,458 )
                     
    GAAP net loss attributable to Enovix   $ (22,536 )   $ (16,185 )   $ (184,776 )   $ (154,094 )
    Stock-based compensation expense (1)     16,722       13,274       47,414       57,473  
    Change in fair value of common stock warrants     (29,899 )     (31,320 )     (17,359 )     (4,140 )
    Inventory step-up                 1,907        
    Amortization of intangible assets     1,191             3,552        
    Impairment of equipment                       4,411  
    Restructuring cost (1)     3,661       3,021       41,807       3,021  
    Acquisition cost           1,115             1,115  
    Non-GAAP net loss attributable to Enovix shareholders   $ (30,861 )   $ (30,095 )   $ (107,455 )   $ (92,214 )
                     
    GAAP net loss per share attributable to Enovix, basic   $ (0.13 )   $ (0.10 )   $ (1.07 )   $ (0.98 )
    GAAP weighted average number of common shares outstanding, basic     176,680,578       159,829,716       172,393,869       157,559,138  
                     
    GAAP net loss per share attributable to Enovix, diluted   $ (0.30 )   $ (0.29 )   $ (1.07 )   $ (1.00 )
    GAAP weighted average number of common shares outstanding, diluted     176,872,382       161,371,417       172,393,869       158,260,393  
                     
    Non-GAAP net loss per share attributable to Enovix, basic   $ (0.17 )   $ (0.19 )   $ (0.62 )   $ (0.59 )
    GAAP weighted average number of common shares outstanding, basic     176,680,578       159,829,716       172,393,869       157,559,138  
                     
    Non-GAAP net loss per share attributable to Enovix, diluted   $ (0.17 )   $ (0.19 )   $ (0.62 )   $ (0.58 )
    GAAP weighted average number of common shares outstanding, diluted     176,872,382       161,371,417       172,393,869       158,260,393  
                                     
       
       
    (1) $0.1 million and $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the quarter and fiscal year-to-date ended September 29, 2024, respectively. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the quarter and fiscal year-to-date ended October 1, 2023.
       

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