Category: Canada

  • MIL-OSI Security: Big River  — Have you seen this stolen flat deck trailer?

    Source: Royal Canadian Mounted Police

    The Chaleur Region RCMP is seeking the public’s help locating a stolen flat deck trailer in Big River, N.B.

    The theft is believed to have occurred sometime in the overnight hours of October 28, 2024, at an open field near Route 430 and Highway 11 in Big River.

    The flat deck trailer is described as a beige 1984 Travel Taurus, with New Brunswick licence plate TAS 688, and vehicle identification number 27129.

    If you have seen the trailer since October 28, or if you have information that could help further the investigation, please contact the Chaleur Region RCMP at 506-548-7771. Information can also be provided anonymously through Crime Stoppers at 1-800-222-TIPS (8477), by downloading the secure P3 Mobile App, or by Secure Web Tips at www.crimenb.ca.

    MIL Security OSI

  • MIL-OSI Canada: MP Hanley announces federal investment supporting SKOOKUMbrand’s technology adoption to increase production and sales

    Source: Government of Canada News

    News release

    October 30, 2024 — Dawson City, Yukon — Canadian Northern Economic Development Agency

    Small businesses across the North are providing unique high-quality products while boosting community growth, providing good jobs and contributing to regional and territorial economic development.

    Today, Dr. Brendan Hanley, Member of Parliament for the Yukon, on behalf of the Honourable Dan Vandal, Minister of Northern Affairs and Minister responsible for PrairiesCan and CanNor, announced a federal investment of nearly $100,000 in Northern Garments Inc., a Dawson City-based small business widely known as SKOOKUMbrand.

    Through this two-year project, SKOOKUMbrand will upgrade its production equipment to include computer-aided design technology so it can build capacity and meet increasing demand for its award-winning custom-made winter clothing. This investment will also support the purchase of small capital equipment to enhance productivity at the rural worksite and help address challenges with staff recruitment. Additionally, this project includes upgrades to the company’s website to increase its reach and expedite order processing. 

    The Government of Canada is supporting small business growth across the North. Investing in territorial entrepreneur and innovator ecosystems supports dynamic and strong economies and provides benefits to Yukoners and Northerners alike.

    Quotes

    “Supporting small businesses in rural areas to grow is essential to building strong economies and resilient communities. SKOOKUMbrand is contributing to the territorial economy, providing jobs, and designing clothing made in the North for northern weather. By investing in projects like this, our government is supporting northern businesses to expand, adopt new technology and address northern challenges.”

    The Honourable Dan Vandal, Minister of Northern Affairs and Minister responsible for PrairiesCan and CanNor

    “Small businesses contribute so much to the Yukon. For nearly 20 years, SKOOKUMbrand has produced high-quality Yukon-made outdoor clothing for Yukoners and have shipped its creations to people around the world. By implementing digital technologies, enhancing their online presence, and building capacity, this company can access wider markets.”
      

    Dr. Brendan Hanley, Member of Parliament for the Yukon

    “Our government is proud to stand behind Yukoners, driving local growth and strengthening our economy. By investing in local businesses, we are helping Yukoners enhance their communities, expand their businesses, and contribute to a resilient, sustainable future for our territory. SKOOKUMbrand embodies the spirit of Yukon—innovative, community-driven and proudly local, crafting products tailored specifically for Yukoners. Through the Economic Development Fund, we are excited to help this outstanding local company grow and reach new heights.”

    Ranj Pillai, Premier and Minister of Economic Development, Government of Yukon

    “Doing business from the North is always challenging. We operate in isolation from our industry peers and face skilled labour shortages, so we need to be resourceful and look to technology to for solutions that enable us to fill the demand for our products. The assistance we’ve been able to access through CanNor and the Yukon government is helping us to expand to become fully digital in sales and manufacturing, provide employee transit to our workplace and scale up to the next level of development. We are extremely grateful for this timely and focused assistance.”

    Megan Waterman, Owner, Northern Garments Inc.

    Quick facts

    • CanNor is contributing up $99,999 over two years for this project through the Inclusive Diversification and Economic Advancement in the North (IDEANorth) program. This program makes foundational investments in economic infrastructure, sector development and capacity building to help position Northerners in the territories to take advantage of Canada’s innovation economy.

    • The Government of Yukon’s Economic Development Fund (EDF) is also investing more than $20,000 in this project between 2023 and 2025. The EDF supports projects and initiatives that provide long-term, sustainable economic benefits to Yukoners and Yukon communities.

    • SKOOKUMbrand is a woman-owned small business located in Dawson City, Yukon. Since 2005, the company has been designing and manufacturing winter outerwear, such as fur-trimmed parkas, and accessories for circumpolar lifestyles.

    Associated links

    Contacts

    Kyle Allen
    Director of Communications, Parliamentary Affairs and Issues Management
    Office of the Minister of Northern Affairs, Minister Responsible for PrairiesCan, and Minister Responsible for CanNor
    kyle.allen@rcaanc-cirnac.gc.ca

    Leighann Chalykoff
    Communications Advisor, Yukon Region
    Canadian Northern Economic Development Agency (CanNor)
    leighann.chalykoff@cannor.gc.ca

    Damian Topps
    Government of Yukon, Economic Development
    867-667-5378
    damian.topps@yukon.ca

    Megan Waterman
    Owner
    SKOOKUMbrand
    megan@skookum.shop

    Stay connected

    Follow CanNor on XFacebook and LinkedIn.

    MIL OSI Canada News

  • MIL-OSI Security: Sault Ste. Marie — Piloting a drone? Fly it safely and within the law

    Source: Royal Canadian Mounted Police

    RCMP in Sault Ste. Marie would like to remind the public of the following regulations when operating a drone or remotely piloted aircraft system (RPAS).

    Drone pilots must follow the rules in the Canadian Aviation Regulations (CARs). You should read these regulations in full before you fly your drone for the first time.

    RPA pilots must carry a valid drone pilot certificate and only fly drones that are marked and registered. If you are flying a drone that is less than 250 grams, you do not need to register the drone or get a drone pilot certificate.

    RESPECT ALL LAWS AND THE PRIVACY AND RIGHTS OF OTHERS WHEN YOU FLY AN RPA.

    While flying

    To keep yourself and others safe, fly your drone:

    • where you can always see it
    • at night only if you have lights on your drone
    • below 122 metres (400 feet) in the air
    • away from bystanders, at a minimum horizontal distance of 30 metres for basic operations
    • away from emergency operations and forest fires
    • away from outdoor concerts, parades and advertised events
    • away from airports 5.6 kilometres (3 nautical miles)
    • away from heliports 1.9 kilometres (1 nautical mile)
    • outside controlled airspace (for basic operations only)
    • away from other aircraft, including other drones

    You could face serious penalties, including fines and/or jail time, if you break the rules.

    Fines for individuals

    • up to $1,000 for flying without a drone pilot certificate
    • up to $1,000 for flying unregistered or unmarked drones
    • up to $1,000 for flying where you are not allowed
    • up to $3,000 for putting aircraft and people at risk

    Fines for corporations

    • up to $5,000 for flying without a drone pilot certificate
    • up to $5,000 for flying unregistered or unmarked drones
    • up to $5,000 for flying where you are not allowed
    • up to $15,000 for putting aircraft and people at risk

    Please refer to the following website for a full list of safety regulations and legislation: Flying your drone safely and legally (canada.ca)

    To report a drone incident or suspicious drone activity: https://tc.canada.ca/en/aviation/drone-safety/report-drone-incident

    Should you have any further questions, the RCMP’s Sault Ste. Marie Detachment can be contacted at 705-941-7267 or email at ODiv_SSM_BI@rcmp-grc.gc.ca

    MIL Security OSI

  • MIL-OSI Security: Yukon — Yukon RCMP hope for a safe and enjoyable Halloween for all!

    Source: Royal Canadian Mounted Police

    Here are some safety tips to consider:

    Traffic Awareness: Drive slowly in residential areas and watch carefully for children crossing the street. Remind your children to stay alert for traffic, use sidewalks and cross the street at crosswalks.

    Home Safety: Clear walkways of obstacles to prevent falls and use flameless candles instead of real ones to avoid fire hazards. Keep pets indoors to prevent them from getting scared or escaping during the festivities.

    Costumes: Have something reflective on your child’s costume or carry flashlights or glow sticks to increase visibility in the dark.

    Treat Inspection: Check all treats before you eat! Discard anything that is not sealed or looks suspicious.

    Not everyone celebrates Halloween for various reasons, including cultural, religious, or personal beliefs. It is always good to respect different perspectives. A common practice in some areas is to leave outside lights off to indicate your house is not participating in Halloween trick or treating.

    Be safe and have an awesome Halloween!

    MIL Security OSI

  • MIL-OSI Canada: AIOC mandate expands to tourism: Minister Wilson

    Source: Government of Canada regional news

    “Over the past five years, the Alberta Indigenous Opportunities Corporation has had great success in facilitating investments in natural resources and is ready to leverage investments in agriculture, telecommunications and transportation projects with up to $3 billion in loan guarantees.

    “Building on the achievements of the AIOC, I am thrilled to announce that the AIOC’s mandate is now expanding to include tourism. With a growing interest in Alberta’s tourism sector, and a high global demand for authentic cultural and land-based tourism, it makes sense to expand the AIOC’s mandate to include Indigenous investment in major tourism projects.

    “This new focus will open doors to even more opportunities for Indigenous communities to be partners in prosperity while showcasing their rich cultures, histories, and traditions to the world.

    “Tourism is a powerful driver of economic growth, and with the AIOC’s support, we can ensure that Indigenous communities are at the forefront of this vibrant industry.”

    Related information

    • Alberta Indigenous Opportunities Corporation

    MIL OSI Canada News

  • MIL-OSI Canada: Taxpayers’ Ombudsperson is pleased that the Canada Revenue Agency is exempting bare trustees from the 2024 filing requirement

    Source: Government of Canada News (2)

    The Taxpayers’ Ombudsperson, Mr. François Boileau, is pleased that the Canada Revenue Agency (CRA) has proactively waived the 2024 filing requirement for bare trusts, unless it makes a direct request.

    OTTAWA, October 30, 2024 – The Taxpayers’ Ombudsperson, Mr. François Boileau, is pleased that the Canada Revenue Agency (CRA) has proactively waived the 2024 filing requirement for bare trusts, unless it makes a direct request.

    In July 2024, the Taxpayers’ Ombudsperson announced that our Office was opening a systemic examination into whether the CRA had respected taxpayers’ rights in its administration of bare trust filing requirements for the 2023 tax year.

    In carrying out the examination, we heard from stakeholders that the bare trust information the CRA provided for the 2023 tax year had value, but like the 2023 exemption, it came too late. Many tax preparers complete their hiring and training in the fall for each upcoming tax season. Therefore, announcing relief or an exemption beyond November is not timely.

    In August and September 2024, the Department of Finance Canada consulted with Canadians on technical amendments clarifying the trust reporting rules. It indicated that the legislative proposal would seek to reduce the administrative burden and to exempt bare trustees from the 2024 bare trust filing requirement.

    The CRA’s role is to administer the tax legislation in a manner that is fair and reasonable for taxpayers. It appears unlikely that a bill reflecting the proposed amendments would receive royal assent before many tax preparation firms begin planning for the 2025 tax-filing season. Therefore, it was important that the CRA proactively communicate this exemption, which it did this week.

    We are currently in the final stages of drafting our report on our examination into the CRA’s administration of the 2023 bare trust filing requirements. We have met with stakeholders, examined complaints we received, and sought answers from the CRA. We plan to publish the report in early 2025.

    Background information

    The Office of the Taxpayers’ Ombudsperson works independently from the CRA. Canadians can submit complaints to the Office if they feel they are not receiving the appropriate service from the CRA. Our main objective is to improve the service the CRA provides to taxpayers and benefit recipients by reviewing individual service complaints and service issues that affect more than one person or a segment of the population.

    The Taxpayers’ Ombudsperson assists, advises and informs the Minister of National Revenue about matters relating to services provided by the CRA. The Ombudsperson ensures, in particular, that the CRA respects eight of the service rights outlined in the Taxpayer Bill of Rights.

    MIL OSI Canada News

  • MIL-OSI Canada: Government of Canada to make an announcement about dental care

    Source: Government of Canada News

    Media advisory

    October 30, 2024, Scarborough, Ontario – The Honourable Mark Holland, Minister of Health, will make an announcement about the Canadian Dental Care Plan.

    There will be a media availability following the announcement.

    Date

    October 31, 2024

    Time

    10:00 a.m. (ET)

    Location

    The event will be held in-person at:

    ACSA Community Services
    Dorset Park Community Hub
    1911 Kennedy Road, Unit 105
    Scarborough, ON

    Media may also join by Zoom: https://hc-sc-gc-ca.zoom.us/j/63461249397

    Passcode: 241031

    Please indicate your name (first and last) and media outlet when joining the event.

    Twitter: @GovCanHealth
    Facebook: Healthy Canadians

    Media Inquiries

    Matthew Kronberg
    Press Secretary
    Office of the Honourable Mark Holland
    Minister of Health
    343-552-5654
    matthew.kronberg@hc-sc.gc.ca

    Media Relations
    Health Canada and Public Health Agency of Canada
    613-957-2983
    media@hc-sc.gc.ca

    Public Inquiries:
    613-957-2991
    1-866-225-0709

    MIL OSI Canada News

  • MIL-OSI Security: Thunder Bay — Beware of calls spoofing RCMP Thunder Bay telephone number

    Source: Royal Canadian Mounted Police

    RCMP Central Region Thunder Bay detachment is advising that their phone number, 807-623-2791, has been spoofed and is being used unlawfully to intimidate and defraud victims.

    Spoofing is when a scammer uses a device to mask their real phone number and display a different number that does not actually belong to the caller.

    Be aware that government agencies, including police:

    • Will never ask you to make payments using bitcoin or gift cards,
    • Will not show up to your residence to collect money for a child in jail
    • Will not ask for your personal information such as your Social Insurance Number (SIN), your date of birth (DOB) or phone number over the phone.

    Please also be aware that the RCMP in Ontario is not the police of jurisdiction. In Ontario, the RCMP enforces federal laws, including national security, border integrity, transnational, serious and organized crime and financial crimes such as cybercrime, money laundering and counterfeiting.

    If you suspect that you are being scammed, hang up. If you have been a victim of a scam, please report it to your local police. You can also report any scams to the Canadian Anti-Fraud Centre.

    Stay informed about the latest scams.

    Protect yourself from spoofing

    • Never assume that phone numbers appearing on your call display are accurate
    • Hang up and make the outgoing call when someone claims to be contacting you from your financial institution, service provider, law enforcement or government agency
    • Call the company or agency in question directly, if you receive a text message or email. Make sure you research their contact information and don’t use the information provided in the first message
    • Never click on links received via text message or email
    • When visiting a website, always verify the URL and domain to make sure you are on the official website.

    With questions or concerns about whether an RCMP police officer from Thunder Bay has or is trying to contact you, call the RCMP Thunder Bay detachment directly, Monday-Friday, 8 am-4 pm, 807-623-2791.

    MIL Security OSI

  • MIL-OSI Canada: Government of Canada to announce support to increase opportunities for women and build a more resilient economy for everyone in Canada

    Source: Government of Canada News

    The Honourable Marci Ien, Minister for Women and Gender Equality and Youth and Julie Dzerowicz, Member of Parliament for Davenport will announce support to improve economic and leadership opportunities for women across Canada.

    October 30, 2024 – Toronto, Ontario — The Honourable Marci Ien, Minister for Women and Gender Equality and Youth and Julie Dzerowicz, Member of Parliament for Davenport will announce support to improve economic and leadership opportunities for women across Canada.

    Date:             November 1, 2024

    Time:            2:00 PM EST

    Location:     The StartWell Event Studio
                           230 Niagara St
                           Toronto, ON M6J 2L4

    Members of the media who wish to attend this event in-person or virtually must register by 1:00 PM EST on November 1, 2024, by emailing FEGC.Media.WAGE@fegc-wage.gc.ca.

    Angie Rutera
    Communications Assistant
    Office of the Minister for Women and Gender Equality and Youth
    Angie.Rutera@fegc-wage.gc.ca

    MIL OSI Canada News

  • MIL-OSI Security: Moncton — Missing 31-year-old woman

    Source: Royal Canadian Mounted Police

    The Codiac Regional RCMP is seeking the public’s help to locate a missing 31-year-old woman from Moncton, N.B.

    Brooke Both was last spoken to on October 27, 2024, at approximately 9:40 a.m., and was reported missing to police on October 29, 2024. Police have followed up on several leads to try and locate her, but have so far been unsuccessful. Police and her family are concerned for her wellbeing.

    Brooke Both is described as being approximately five feet four inches (162 centimetres) tall, and weighing approximately 139 pounds (63 kilograms). She has brown eyes and reddish-blond hair. She has a tattoo of a mother holding hands with two girls, trees and a moon on her right forearm, and another tattoo of a blue flower on her upper left arm.

    A clothing description of Brooke Both is not available at this time. She may be using the surname Beers when she identifies herself.

    Anyone with information on her whereabouts is asked to contact the Codiac Regional RCMP at 506-857-2400.

    MIL Security OSI

  • MIL-OSI Canada: Minister Valdez announces agreement to deliver health innovations to First Nations communities

    Source: Government of Canada News (2)

    News release

    October 30, 2024 – Toronto, Ontario

    The federal government is committed to helping small and medium-sized businesses bring their innovations to life from coast to coast to coast and ensuring that people can benefit from their creative ideas and solutions.

    Today, the Honourable Rechie Valdez, Minister of Small Business, announced that the First Nations Health Authority (FNHA) will join the Coordinated Accessible National (CAN) Health Network. This partnership will enable FNHA to deliver health care innovations developed by small and medium-sized businesses to over 200 First Nations communities across British Columbia.

    Through the federal government’s $42 million investment, the CAN Health Network is connecting small businesses delivering medical innovations with hospitals and health care providers, which gives these providers market-ready solutions to address health care challenges.

    For health tech entrepreneurs, this initiative provides the tools and connections needed to access the Canadian health care market. Through the CAN Health Network, they can test their innovations, connect with the government procurement process and access opportunities that help them scale and grow.

    In the nearly five years since it launched, the network has successfully connected 74 Canadian businesses working in health technology with different orders of government across the country. This initiative is enabling entrepreneurs across Canada to grow, all while strengthening our universal health care system by encouraging homegrown innovation.

    Quotes

    “By investing in the CAN Health Network, our government is simultaneously helping small and medium-sized businesses bring their innovative health care solutions to life and helping patients benefit from these groundbreaking technologies. With the First Nations Health Authority joining the CAN Health Network, First Nations communities across British Columbia will benefit from the latest Canadian health care innovations. Congratulations to both organizations for coming together.”
    — The Honourable Rechie Valdez, Minister of Small Business

    “The addition of the First Nations Health Authority to the Network is an important step in honouring our commitment to expand our vision and mission across the country and to support Indigenous communities. Since its launch in 2019, and with the investment and support of the Government of Canada, the CAN Health Network has welcomed 42 leading health care operators, or “Edges,” supported more than 74 companies, generated more than $550 million to date and created more than 2,000 jobs across the nation. With the support of Minister Valdez and the Government of Canada, the CAN Health Network unifies regions and leverages the diversity of individuals and organizations to lead the new health care economy.”
    — Dr. Dante Morra, Chair, CAN Health Network

    “Joining the CAN Health Network enables the First Nations Health Authority to amplify First Nations voices in health care innovation. Through this partnership, we’re increasing opportunities for First Nations–led approaches to enhancing access to health care. We are also helping to build the foundations for a system that is culturally safe, inclusive and respectful of First Nations peoples in British Columbia and Canada.”

    – Richard Jock, CEO, First Nations Health Authority

    Quick facts

    • The Government of Canada has invested $42 million since 2019 to support the growth and expansion of the Coordinated Accessible National (CAN) Health Network.

    • Since its launch, the CAN Health Network has grown to include 42 Edges. Edges are health care operators, including health authorities and organizations.

    • To date, the CAN Health Network has supported 74 innovative Canadian health care technology businesses.

    • Under the initiative, 92 commercialization projects have been rolled out.

    • As of March 2024, 2,020 jobs have been created.

    • The CAN Health Network has helped generate more than $550 million in revenue.

    Associated links

    Contacts

    Callie Franson
    Senior Communications Advisor and Issues Manager
    Office of the Minister of Small Business
    callie.franson@ised-isde.gc.ca
    613-297-5766

    Media Relations
    Innovation, Science and Economic Development Canada
    media@ised-isde.gc.ca

    Stay connected

    Follow Canada Business on social media.
    X (Twitter): @canadabusiness | Facebook: Canada Business | Instagram: @cdnbusiness

    For easy access to government programs for businesses, download the Canada Business app.

    MIL OSI Canada News

  • MIL-OSI Asia-Pac: US lawmakers condemned

    Source: Hong Kong Information Services

    The Hong Kong Special Administrative Region Government today again strongly condemned the US lawmakers requesting a review of a number of Hong Kong SAR Government officials, judges and prosecutors in a list of “sanctions” in an attempt to intimidate the Hong Kong SAR personnel concerned who safeguard national security as well as the unfounded and biased remarks which deliberately misled the public and smeared the Hong Kong National Security Law (NSL).

    In a statement, the Hong Kong SAR Government said it is the constitutional duty of the Hong Kong SAR to safeguard national security. In accordance with international law and international practice based on the Charter of the United Nations, safeguarding national security is an inherent right of all sovereign states.

    It pointed out that many common law jurisdictions, including western countries such as the US, the UK, Canada, Australia and New Zealand as well as Singapore, have enacted multiple pieces of legislation to safeguard national security. Turning a blind eye to the fact and making exaggerated remarks, the US politicians have demonstrated typical political hegemony and hypocrisy with double standards.

    The statement elaborated that the implementation of the NSL in the past four years has enabled the livelihood and economic activities of the Hong Kong community at large to swiftly resume as normal and the business environment to be restored and improved continuously.

    It noted that in the Economic Freedom of the World 2024 Annual Report, Hong Kong ranks as the world’s freest economy among 165 economies. In the World Competitiveness Yearbook 2024, Hong Kong’s ranking improved by two places to fifth globally.

    However, those US politicians insist on turning a blind eye to all these facts and even clamour for “sanctions” against the Hong Kong SAR personnel who dutifully safeguard national security. The Hong Kong SAR Government strongly condemned their political grandstanding rife with ill intentions, which have been seen through by all.

    The statement also pointed out that the Hong Kong SAR despises any “sanctions” and shall never be intimidated. It shall continue to resolutely discharge the responsibility of safeguarding national security.

    The Hong Kong SAR Government strongly urged the US politicians concerned to discern facts from fallacies, and immediately stop acting against international law and basic norms of international relations and interfering in Hong Kong matters, which are purely China’s internal affairs.

    Additionally, it said the Hong Kong SAR’s judicial system has always been highly regarded by international communities. Any attempt by any country, organisation, or individual to interfere with the judicial proceedings in the Hong Kong SAR by means of political power is a reprehensible act undermining the Hong Kong SAR’s rule of law.

    It highlighted that making any statement with the intent to interfere with or obstruct the course of justice, or engaging in conduct with the same intent, is very likely to constitute the offence of criminal contempt of court or the offence of perverting the course of justice.

    The Hong Kong SAR Government reiterated the Hong Kong SAR steadfastly safeguards national sovereignty, security and development interests, and fully and faithfully lives up to this top priority of the “one country, two systems” principle.

    The Hong Kong SAR Government will, as always, resolutely, fully and faithfully implement the NSL, the Safeguarding National Security Ordinance and other relevant laws safeguarding national security in the Hong Kong SAR, to effectively prevent, suppress and impose punishment for acts and activities endangering national security in accordance with the law, whilst upholding the rights and freedoms of Hong Kong people in accordance with the law, so as to ensure the steadfast and successful implementation of the principle of “one country, two systems,” it added.

    MIL OSI Asia Pacific News

  • MIL-OSI NGOs: Hurricane Unpreparedness in the Caribbean, Disaster by Imperial Design

    Source: Council on Hemispheric Affairs –

    St. Lucia during and post Hurricane Beryl

    by Tamanisha J. John

    Toronto, Ontario

    Whenever a hurricane hits in the Caribbean, people rush to point out that it is an indicator of “disaster capitalism” and/or that “disaster capitalism” will surely come. While I agree that non-governmental organizations (NGO) and other organizations profit from disasters in the Caribbean region, and have a long history of doing so, I am less inclined to believe that “disaster capitalism” exists there unless one takes an ahistorical view. Disaster capitalism in the Caribbean can only exist in those states whose revolutions have been defeated and/or undermined, but overall, there has been no massive structural changes in these states. The region is already, and historically has been, ultra-accommodating to capitalism. Disaster capitalism refers to “the use of the shock of disastrous situations to dismantle state participation in the economy and to implant structural changes in the form of laissez-faire capitalism” (Schwartz, 2015, p. 311). To claim that disaster capitalism will come to the Caribbean region would thus indicate a marked period of state participation in the Caribbean that provided for the peoples living there.

    Instead, all states’ independence was marked by US interventions given the ideological and economic struggle of the Cold War and the neoliberal turn, which attacked state input and intervention in the market. Caribbean states’ independence was marked by debt and lack of access to capital. It occurred alongside financial institutions’ proliferation of structural adjustment policies whose implementation was necessitated for states in the region to acquire access to loaned capital (John, 2023). Though struggles for nationalizations did occur – in industries like mining, banking, insurance, and others – harsh retaliations from the US and Canada made them unsustainable (John, 2023, p. 134) – with no real reductions in foreign ownership “despite the changes in legal forms of ownership” (Thomas, 1984, p. 168-9). Thus, large foreign ownership of resource extractive industries and financial institutions remained a feature of Caribbean societies when they became independent – just as it also marked the colonial landscape in these spaces. The foreign players that controlled corporations, land, and industries in these countries did change somewhat, but this was also typical with imperial rivalries (Caribbean states themselves having been subject to multiple phases of European colonization throughout their histories).

    It was Walter Rodney, who in his 1972 text How Europe Underdeveloped Africa, put forward a critique of the thesis that capitalism had to develop prior to ushering in socialism – which was Marx’s estimation – given that this thesis went against the trajectory of capitalist development in both the Caribbean and in Africa, where the capitalist logics of extraction with disregard for these societies left them in almost permanent states of underdevelopment, that only physical and ideological anti-imperialism could rectify. One of the consequences of this underdevelopment, I argue, is the lack of hurricane preparedness. The logic of “getting people back to work” and “security” in these colonized spaces have always trumped wellbeing for the people and environment – precisely because the people in them have always been categorized as disposable, while the natural resources have been reduced to instruments for the generation of profit. This ideology was true under European empires, and now true under US hegemony in the region – where foreign imposing actors continue to have more say on preparedness, wealth distribution, land ownership, security, economic development, and entrepreneurship (innovation).

    In a Region Prone to Hurricanes, Unpreparedness is an Ideological Policy Choice

    “Hurricanes are not random phenomena. Atmospheric conditions and physics limit their movement” (Schwartz, 2015, p. xvi). In the Caribbean, the Yucatán Peninsula, the Gulf of Mexico, and the South-Eastern United States, we have come to expect a lack of preparedness whenever hurricanes strike. Though Hurricane Beryl’s strength and early formation in June was unprecedented for the Caribbean’s hurricane season, what is precedent is the lack of regional preparedness for hurricanes in a region prone to have them – no matter when these hurricanes form. Forming around June 25th it was clear that Beryl would break the record for earliest formed Category 5 hurricane by the time that it made way into the Caribbean. This was due to the unusually warm temperatures registered in both the Atlantic Ocean and the Caribbean Sea as early as March, various heatwave advisories and warnings were placed on the region acknowledging that the summer 2024 would be “hotter than usual” (Loop News 2024). When news of Beryl’s formation first spread, people expected the worst given unusually hot increases in temperatures (+4°c) for the region so early in the year.

    Making landfall as a Category 4 hurricane in one of the smaller islands of Grenada, Carriacou, on July 1st Beryl would destroy 95% of the infrastructure there before strengthening to a Category 5 hurricane. It would bring even worse devastation to a smaller island of St. Vincent and the Grenadines, Mayreu, where reports proclaim that island to have nearly been “erased from the map” (AP News 2024). In its Caribbean path, Beryl brought devastation as a Category 5 and 4 storm to Grenada, St. Vincent and the Grenadines, Dominica, Tobago and northern Venezuela, Barbados, and the southern portion of Jamaica. In its North American path, Beryl brought devastation as a Category 2 and 1 storm to Mexico’s Yucatan Peninsula, before making landfall in Texas and Louisiana. Thereafter the storm was experienced elsewhere in the form of a tropical cyclone and massive downpours of rain. Beryl eventually tapered off in Canada on July 11th where it left heavy rain that caused massive flooding (due to Canada’s neglected flood systems). Beryl’s death toll currently stands at 33, with the storm causing 6 deaths “in Venezuela, 1 in Grenada, 2 in Carriacou, 6 in St. Vincent and the Grenadines, 4 in Jamaica […] at least 11 in the Greater Houston area, 1 in Louisiana, and 2 in Vermont.” (TT Weather Center 2024)”

    Now that the storm has passed, people in impacted areas must contend with the loss of life, destruction of physical infrastructure – including homes and businesses, the lack of food and other basic products, as well as the lack of power and electricity. While contending with loss, victims of this severe weather will start to question the inability of their governments – rich or poor – to adequately address the post hurricane scenarios that they find themselves in repeatedly. This discontent with unpreparedness is now prevalent even before the hurricane season itself has ended.

    A Note on Cuba’s Hurricane Preparedness, The Importance of Ideology

    One of the most infuriating elements of hurricanes in this region is the “disaster” narratives that come after them, which falsely assert the “naturalness” of unpreparedness given the chaos of the disaster itself – when unpreparedness is, in fact, an ideological policy choice. Poorer states in this region are shackled by an unwillingness of the state to drastically deviate from “larger institutional constraints from which the logic of colonial administration derived its central purpose” and are inherited (Pérez Jr., 2001, p. 133-4).  On the other hand, richer states are shackled by their individualist ideologies which offer “vigorous critiques of government expenditure” which leave preparedness up to “market-driven, neoliberal economic policies,” that turn state and local responsibilities over “to charitable institutions, to churches, or to the victims themselves and their communities” (Schwartz, 2015, p. 300).

    When looking at states in the Western Hemisphere which frequently experience hurricanes, Cuba stands out as a state which tends to fare better in the post hurricane environment given that state’s policies of shared responsibility towards its people. This even as Cuba has been subjected to a draining embargo and sanctions which places a burden on economic growth there. Yet still, Washington maintains that Cuba’s successful hurricane response and disaster mitigation strategies amount to “the exchange of liberty for effectiveness” (Schwartz, 2015, p. 293-4). Though couched in this language of ‘liberty,’ mitigating the loss of life ensures one’s longtime enjoyment of liberty – as opposed to dying for ‘liberty’s’ sake during a hurricane (or other disasters like the COVID-19 pandemic). For example, Cuba’s hurricane preparedness in relation to the US stands out. Cuba’s disaster response compares a bit more favorably to the Federal Emergency Management Agency (FEMA). FEMA “oversaw 15 times more deaths from hurricanes than Cuba from 2005 — the year that Katrina struck New Orleans — to 2015” (Wolfe, 2021).

    This is because Cuba’s disaster preparedness is proactive, prioritizing human life and well-being given the ideological foundations of its revolution that transformed political, social, economic, and environmental relations in the country. US disaster preparedness on the other hand prioritizes profit at the expense of people – it is reactionary and reactive, often blaming victims of hurricane disasters for the lack of state preparedness.

    The Caribbean Hurricane as Natural Phenomena, the Disaster as Colonial Inheritance

    Hurricanes are not experienced equally amongst states in the Western Hemisphere. People living on Caribbean islands tend to experience the worst effects of hurricanes when they do strike, and it is also people on these same islands which tend to have less resources to recover from the impacts of a hurricane. Though Cuba’s hurricane preparedness is commendable, infrastructure and livelihoods there are still devastated by hurricanes. Many of the Caribbean islands are geographically located “in the Atlantic Hurricane Alley, [and] the region is sensitive to large-scale fluctuation of ocean patterns that are disrupted by warming seas” (Zodgekar, et. al 2023, p. 321). Additionally, populations and infrastructure on these islands tend to be concentrated on the coast – a colonial holdover – given that European “settlements were established directly in the path of oncoming hurricanes (Pérez Jr., 2001, p. 8). Initially due to lack of knowledge, this trend remained unchanged amongst Europeans given the need to export what was being extracted from these islands using the ports developed on the coasts.

    Historically, environmental disasters (hurricanes, earthquakes, and droughts) throughout the 1600s-1900s would consolidate land amongst the wealthiest European settlers on different islands and would foil settler attempts to diversify agriculture on islands. This was because wealthy settlers could more easily recover and rebuild what was lost in the aftermath of a hurricane, due to their ability to access credit from Europe and resort to using their own fortunes (wealth and networks). On the other hand, smaller settlers unable to rebuild and recover from hurricane losses had a harder time accessing credit – and creditors within Europe viewed loaning to smaller settlers as a financial burden. If these smaller settlers were already in debt, the passing of a hurricane meant that they would either have to work off debt by giving all that they had to a creditor in Europe, or one on the island, by entering into a credit arrangement with a wealthier plantation owner (Mulcahy, 2006, p. 86-8). These losses were quite frequent, as it is known that these phenomena made it so that some European creditors in Europe would amass plantation wealth, even if they themselves had never visited a Caribbean island or formally engaged in plantation life (Mulcahy, 2006, p. 87-8).

    These dynamics, in part, explain the predominance of the cultivation of sugar (and rice in what would become the South-Eastern United States) within the region, and even then, “plantership […] necessitated deep pockets (or strong credit) to survive its constant and rapid fluctuations” (Mulcahy, 2006, p. 66). “Without access to credit, smaller farmers were forced to sell their lands to wealthier and more secure planters, who thereby expanded their landholdings and production capabilities” (Mulcahy, 2006, p. 86). This consolidation of larger and wealthier plantations also made other concerns arise, namely the depopulation of settlers from the islands, as debtors opted to leave in the aftermath of storms, and later the transfers of estates to owners outside of the colonies (Mulcahy, 2006, p. 86-7). In essence, settlers’ decision to flee in the wake of, or after, a hurricane shaped population dynamics and demographics in colonies. They also shaped the lack of hurricane preparedness in colonies. Wealthier planters on the islands, and Europeans in Europe, who could suffer from hurricane losses (hurricanes themselves not being guaranteed every season), rebuild afterwards, and recover previous losses given the profit from plantation trade goods – had less incentives to plan ahead if they were not as risk of losing everything they had amassed in their life after a hurricane.

    In smaller island states’, where plantation systems were heavily disrupted or stunted in growth due to geography of the land (especially in the Lesser Antilles), even fewer attempts were made to develop any infrastructure which could protect against storms (Mulcahy, 2006). To be clear, this does not mean that these landscapes were spared from destruction which made the impacts of hurricanes worse: deforestation, overgrazing, and over-cultivation of Caribbean islands during centuries of European colonialism that included dispossession of indigenous groups and the enslavement of Africans, also impacted how hurricanes came to be experienced. While planter consolidation, rebuilding, and profits have so far been underscored here – the elephant in the room is that all of this occurred alongside the massive death toll of enslaved Africans who suffered the most both during and after the passage of a hurricane. Outside of the high death tolls for enslaved Africans on the islands, once a hurricane passed, the ultimate goal in the colonies became the reestablishment of ‘law-and-order’ given fears of slave revolt in the wake of destruction (Mulcahy, 2006; Schwartz, 2015). Although slave-revolts post hurricane remained a consistent fear of settlers, slave revolts did not occur after a hurricane due to its disproportionate toll on enslaved populations who were “often the most debilitated by the shortage of food and the diseases that followed the hurricane” (Schwartz, 2015, p. 49).

    Caribbean Indigenous Peoples Blamed European Imperial Settlement for Increased Hurricane Devastation

    From historical accounts, we know that the Spaniards were the first Europeans to experience a hurricane within the Western Hemisphere during Columbus’s second voyage in 1494/5 (Pérez Jr., 2001; Mulcahy, 2006; Schwartz, 2015). The hurricane experience was unlike anything that Europeans had observed in Europe, and it was from this experience that they sought out intel from the indigenous peoples in the Caribbean. For Caribbean indigenous peoples, “the great storms were part of the annual cycle of life. They respected their power and often deified it, but they also sought practical ways to adjust their lives to the storms. Examples were many: The Calusas of southwest Florida planted rows of trees to serve as windbreaks to protect their villages from hurricanes. On the islands of the Greater Antilles—Cuba, Jamaica, Hispaniola, and Puerto Rico—the Taino people preferred root crops like yucca, malanga, and yautia because of their resistance to windstorm damage. The Maya of Yucatan generally avoided building their cities on the coast because they understood that such locations were vulnerable to the winds and to ocean surges that accompanied the storms” (Schwartz, 2015, p. 5). Further, Indigenous representations of hurricanes were overall accurate and are similar to modern meteorological mapping of these storms. Europeans also learned from Caribbean Indigenous groups that you could “track” when a hurricane would strike. These developments meant that Indigenous Caribbean knowledge of the hurricane was not only limited to the occurrence of storm, but also meant that Indigenous Caribbean societies factored in preparedness for hurricanes within their worldviews.

    Given Caribbean Indigenous knowledge of hurricanes, it is these same people who also recognized that the changes to the landscape by European colonialism contributed to the increased devastation caused by hurricanes between the 1600s-1900s. As such, English colonists who would also come to experience the hurricanes report that “several elderly Caribs stated that hurricanes had become more frequent in recent years, which they viewed as a punishment for their interactions with Europeans” and the main “alteration that our people attribute the more frequent happenings of Hurricanes” (Mulcahy, 2006, p. 35). What these settler accounts reveal about Indigenous Caribbean peoples is what Schwartz notes in his 2015 book, Sea of Storms: A History of Hurricanes in the Greater Caribbean from Columbus to Katrina, that although “hurricanes were a natural phenomenon; what made them disasters was the patterns of settlement, economic activity, and other human action” (p. 74). Nonetheless, colonial ecological and environmental destruction in the Caribbean – which increased the felt impact of hurricanes – remained worthwhile for Europeans given the high profits to be made from export crops, which kept people there to rebuild after hurricanes. Mulcahy in his 2006 book, Hurricanes and Society in the British Greater Caribbean, 1624 – 1783, writes “European settlers and colonists were engaged in a never-ending struggle against nature in their quest for wealth” (p. 93)

    Additionally, the European empire’s responses to hurricanes also influenced decisions to stay. Because colonial societies in the Caribbean were stratified along racial and other social hierarchies – hurricanes presented opportunities for large scale consolidation of plantation property on islands which privileged wealthy plantation owners. Additionally, smaller merchants and plantations which could not recover post hurricane were sometimes forced to transfer ownership to merchants in Europe – who never had to visit these properties while amassing wealth from them thereafter (Mulcahy 2006, p. 88). Disaster relief to the colonies thus came to be historically designed as a way for further economic integration, and “assistance to the colonies in times of disaster would bring wealth and affluence to the empire” (Mulcahy 2006, p. 162). Disaster assistance – while increasing inequalities between all peoples in the colonies – did overall benefit imperial capitalism and patriotism within the empire, amongst loyal subjects, especially amongst elite classes, who received the majority of aid based on their losses.

    Banking on Hurricanes and Absolving Empire of Responsibility: Debates in Europe

    While debates in Europe raged regarding enriching the already wealthy within the colonies with disaster relief – these debates did not change the post-hurricane reality of which those most needing of aid (Indigenous groups, enslaved Africans, indentured workers, small merchants, and small planters) were the least likely to receive it, which was true across all of the different European colonies (Pérez Jr., 2001; Mulcahy, 2006; Schwartz, 2015). “Vulnerability to the hurricane itself was a function of the material determinants” around which colonial social hierarchies were arranged (Pérez Jr., 2001, p. 111). In Europe, debates focused primarily on creditors, so it was argued that the wealthy were more primed to repay creditors when/if they received disaster relief after a hurricane. On the other hand, the proliferation of print news meant that individuals and organizations (e.g., the Church) could send aid to the colonies after disaster struck. Previously, when disaster struck it would take months for news to reach those in Europe, even as the disruptions in trade were more readily felt. Moreover, it was hard for the public in Europe to understand the scale of destruction caused by hurricanes in the Americas, given that this kind of natural disaster did not occur in Europe.

    With the establishment of print media, the destruction caused by hurricanes and the damages that they did to plantation systems – which would require a lot of assistance to recover – was made much more readily available to people who could empathize and assist in recovery efforts. Within the British empire, some newspapers even published who would send what amount and type of post disaster relief to the colonies, which undoubtedly contributed to the charitable giving of some wealthy individuals (Mulcahy 2006; Schwartz 2015). Given that the voyage from Europe to the various colonies was long, there was illegal trading between different colonies to provide relief to one another faster – including with the United States, even after the American Revolution.

    It is this colonial history which still shapes the lack of hurricane preparedness in a region prone to have them. Thus, most scholars on hurricanes in the region continue to highlight the colonial and slave legacies which have shaped regional unpreparedness to hurricanes. Though the United States is a wealthier country today with the capabilities to develop hurricane preparedness – even if only within its own borders – it is elite US security interests and ideological leanings which have prevented it from doing so. Additionally, historians like Schwartz (2015) make a compelling argument that “the United States, by its military and political expansion into the Caribbean after 1898, its foreign policy objectives in the Cold War, and through its advocacy of certain forms of capitalism joined with its ability to impose its preferences on international institutions, has also influenced the way in which the whole region has faced hurricanes and other disasters” (Schwartz, 2015, p. xviii-xix). This implies that the United States – like the European empire’s past – also has a stake, or interest, in regional hurricane unpreparedness for both political, economic, and security objectives.

    US Imperial Extensions in the Caribbean, Impact on Hurricane Preparedness

    From this overview of the history of hurricanes in the Caribbean, the Yucatán Peninsula, the Gulf of Mexico, and the South-Eastern United States a few things become clear: hurricane preparedness has never been a concern for colonial capitalist development. Hurricane disasters came to be recognized as extremely ruinous to those occupying the lowest rungs of colonial societies, aid was given to the wealthy people who were understood as being able to put aid to better usage, and disaster situations consolidated preferred modes of accumulation in otherwise “chaotic” and uncivilized landscapes. Thus, outside of patriotic tales and misremembering of the storm events, historically “hopes of communal solidarity” in the wake and aftermath of hurricanes “were either naïve or disingenuous [… with] social divisions ha[ving] always shaped the responses to hurricanes (Schwartz, 2015, p. 68-9). Given strict colonial hierarchies, the maintenance of order – to dissuade slave revolts and looting – were always preeminent concerns of empires and those with wealth and power. This is important to plainly state, given that little has changed in today’s experience with hurricanes in the region.

    Today’s granting of conditioned relief and temporary debt removals still serve to subordinate Caribbean states to the Western capitalist system and the US security apparatus. Those areas hardest hit by storms and less likely to receive aid, continue to be occupied by the poor populations that are largely non-white/Euro peoples. Settlements on islands continue to be concentrated on coasts, where the tourist industry quickly rebuilds its infrastructure post-hurricane and are the first to receive aid. This at once dispels the myths that recovery is impossible, as it happens in the large coastal areas owned and controlled by foreign hotel chains and entities which quickly beckon tourists back to their “lovely beaches” less than a day after a hurricane. Preparedness for hurricanes in the Caribbean islands are “subordinated to political, military, or what today would be called ‘security’ concerns” (Schwartz, 2015, p. 276). I would include economic and ideological concerns as well. These latter concerns are maintained by the wealthiest states in the hemisphere – the United States and Canada.

    Hurricane Flora in the 1960s claimed the lives of over 5,000 Haitians under the Duvalier dictatorship – which failed to even warn Haitians about the arrival of the hurricane so that disorder against Duvalier would not take over the country. The lack of preparedness was accepted by both the United States and Canadian governments given their fear of communism in the Caribbean region. Thus “unlike Haiti’s U.S.-backed right-wing president, François Duvalier, Castro’s Communist government ordered residents living in the hurricane’s projected path to evacuate their homes, and if they were unable, to stay and prepare appropriately for the storm.” This preparation and the establishment of Cuba’s defense system in 1966 accounted for significantly less deaths (1,157) in Cuba (Wolfe, 2021). Today, unpreparedness remains a feature in most Caribbean countries that put corporate interests and the interests of the US (and its allies) security objectives above the prioritization of human life and livelihoods in the Caribbean.

    As further illustration of this point, even though the 2004 Hurricane Jeanne hit Cuba a lot harder than Haiti – killing 3,000 Haitians – no Cuban lives were lost due to the hurricane (Wolfe, 2021). The historical and present-day case of Haiti is both informative and a cause for worry as we expect future hurricane seasons to be quite bad. Not only is Haiti a fully privatized economy (Wilentz, 2008); but it is also one that has been under the tutelage of the CORE group – a group composed primarily of foreign ambassadors from the US, France, Canada, Spain, Brazil, Germany, and a few representatives from the European Union (EU), the United Nations (UN), and the Organization of American States (OAS) – for over two decades. The CORE group’s tutelage of Haiti has been exceptionally negative, as these states and their ambassadors secure their own corporate and labor interests in the country at the expense of that state’s democracy and national sovereignty (Edmonds, 2024). Thus, disaster preparedness in Haiti has never been an agenda item – and has only gotten worse as those governing the country continue to benefit from political, economic, and environmental disasters there. Present day armed intervention and occupation in Haiti, further makes it unlikely that Haiti will be able to weather the next hurricane season.

    Hurricane Unpreparedness, A Note on Canada

    It is important to remind here that although much is said about US imperialism and security concerns trumping human rights and pro-people development in the region – Canada is not exempt from this critique. For instance, although Canada touts that its military base (OSH-LAC) in the Caribbean is a “support hub” – that also seeks to assist states experiencing disasters, of which hurricanes are included – in 2017 when Category 5 Hurricane’s Irma and Maria wreaked havoc on Dominica, OSH-LAC warships monitored the situation but provided no on the ground help to Caribbean peoples there (John, 2024, p. 12-3). The Canadian government also enacted restrictive migration policies towards those fleeing from the hurricane and its damages. This practice would be repeated by Canada again in 2019 during the aftermath of Hurricane Dorian in The Bahamas (John, 2024, p. 12-3). Given that I am currently living in Canada, it is important to point out that Canada is a state that frequently touts progressive rhetoric on climate change, resiliency, and disaster preparedness in the Caribbean region. However, Canada’s actions continue to render the Caribbean region unprepared alongside the actions of the US.

    In the 2023 Canada-CARICOM summit hosted by Canada, Caribbean prime ministers sought to place climate issues and climate infrastructure at the top of the agenda – however, Canada was mainly concerned with getting support for an armed intervention in Haiti (Thurton, 2023). Haiti remains the most unprepared country in the Caribbean when disasters hit, which made Canada’s insistence on armed intervention and occupation even more tone deaf. Haiti’s unpreparedness is directly tied to US, Canada, France, and CORE group members tutelage and rejection of Haitian democracy ever since that country’s integration into the Western capitalist system via US occupation. These examples illuminate the fact that the wealthier states in the Western Hemisphere, namely the US and Canada, actively disregard the lives of those impacted by hurricanes and other natural disasters to their south – while first and foremost safeguarding their own economic, ideological, and security priorities. In my analysis of ‘south,’ the Caribbean, the Yucatán Peninsula, the Gulf of Mexico, and the South-Eastern United States are included.

    Conclusion

    Ideologically, the promotion of capitalism, colonialism, and imperialism in the Caribbean (of which the South-Eastern United States, the Gulf of Mexico and Yucatán Peninsula is included) continues to pose an obstacle to disaster preparedness in a region prone to hurricanes.  More importantly, the promotion of these harmful ideologies often comes at the expense of human life. Nothing makes this clearer than the fact that it is the revolutionary state – which is also the most heavily economically sanctioned state in the region – Cuba, that continues to be the most prepared state in times of disaster. This stands in stark contrast to other Caribbean states and to wealthier states, like the US, which mandate regional unpreparedness. Today, while we await (but hope that it is not so) a bad hurricane season, the Caribbean region is more militarized than it has been since the end of the 20th century and beginning of the 21st century. Militarization is directly due to US security objectives that aim to keep China’s investments (thus competition) out of the region. This policy is backed by Canada, which seeks to advance its own corporate interests in the region.

    The US and Canada continue to militarize the Caribbean region, exacerbating climate change and neglecting the urgency of developing resiliency infrastructure. In fact, militarization in the Caribbean region today (and in Africa and Asia) occurs alongside the tightening of both the US and Canadian borders given hostile narratives towards immigrants and immigration within them. This even with the region’s long history (as has been pointed out) of people fleeing the region both during and after a hurricane. All of which indicates that while these states are undoubtedly deepening the climate crisis with their global “security” endeavors, they view the people harmed and negatively impacted by their actions as disposable.

    Postscript

    Three months after the writing of this document, 5 hurricanes – Debby, Ernesto, Francine, Helene, and Milton – have impacted peoples and infrastructure in the south. The 2024 Atlantic Hurricane season thus far (October 11th, 2024) has taken almost 400 lives – with the actual figure being uncertain, given that the damage from Milton is still being assessed. Each storm is estimated to have cost between $80 – $250 billion (USD) in damages across the region. While governments talk about costs and recovery efforts to get economies “back on track” and provide people with temporary and conditional aid – which is the post disaster norm – we are presented with an uncomfortable, yet undeniable fact: states in the region, whether by colonial inheritance or commitment to capitalism, are banking on unpreparedness continuing well into the future. We must be proactive in defeating this dangerous ideology that places people’s lives, livelihoods and the physical environment at stake; while perpetuating, in its aftermath, conditions that make it so.

    References

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    Direct Relief. 2024. “Direct Relief Responds as Hurricane Beryl Impacts the Caribbean. The Region, Watchful and Ready, Will Weather the Storm Today.” Direct Relief. https://www.directrelief.org/2024/07/direct-relief-responds-as-hurricane-beryl-impacts-the-caribbean-the-region-watchful-and-ready-will-weather-the-storm-today/.

    Edmonds, Kevin. 2024. “CARICOM, Regional Arm of the Core Group, Sells Out Haiti Again.” Black Agenda Report. https://www.blackagendareport.com/caricom-regional-arm-core-group-sells-out-haiti-again.

    Forecast Centre. 2024. “Atlantic Canada Next in Line for a Soaking, Flood Risk from Beryl Remnants.” The Weather Network.https://www.theweathernetwork.com/en/news/weather/forecasts/atlantic-canada-next-in-line-for-a-soaking-flood-risk-from-beryl-remnants.

    IFRC. 2024. “Humanitarian Needs Ramp up in the Aftermath of ‘unprecedented’ Hurricane Beryl, Signaling New Reality for Caribbean.” The International Federation of Red Cross and Red Crescent Societies (IFRC). https://www.ifrc.org/press-release/humanitarian-needs-ramp-aftermath-unprecedented-hurricane-beryl-signaling-new-reality.

    Jobson, Ryan C. 2024. “Hurricane Beryl at the Gates: The Grenadines and Caribbean Autonomy.” Medium. https://medium.com/clash-voices-for-a-caribbean-federation-from-below/hurricane-beryl-at-the-gates-the-grenadines-and-caribbean-autonomy-86834fb43bcd.

    John, Tamanisha J. 2023. “Canadian Imperialism in Caribbean Structural Adjustment, 1980-2000.” In Class Power and Capitalism, Brill Publishers, 136–79.

    John, Tamanisha J. 2024. “Capitalism, Global Militarism, and Canada’s Investment in the Caribbean.” Class, Race and Corporate Power 12(1): 25.

    Loop News. 2024. “Caribbean 2024 Heat Season Could Climb to Near-Record Heat.” Caribbean Loop News. https://caribbean.loopnews.com/content/caribbean-2024-heat-season-could-climb-near-record-heat.

    McGrath, Gareth. 2024. “Hurricane Beryl Was the Earliest Category 5 Storm. What Could That Mean for NC?” Star News Online. https://www.starnewsonline.com/story/news/local/2024/07/11/what-hurricane-beryl-the-earliest-category-5-storm-could-mean-for-nc/74288495007/.

    Mulcahy, Matthew. 2006. Hurricanes and Society in the British Greater Caribbean, 1624 – 1783. Baltimore, Maryland: The Johns Hopkins University Press.

    NACLA. 2024. “This Week: Hurricane Beryl Slams the Caribbean, a Victory for Midwives in Mexico, Venezuelan Elections, and More.” https://nacla.salsalabs.org/july_12_24?wvpId=37c1b636-52b7-44b5-af75-9a38617519d5.

    NASA. 2024. “Carriacou After Beryl.” NASA Earth Observatory. https://earthobservatory.nasa.gov/images/153039/carriacou-after-beryl.

    Pérez Jr., Louis A. 2001. Winds of Change: Hurricanes & The Transformation of Nineteenth-Century Cuba. Chapel Hill & London: The University of North Carolina Press.

    Rodney, Walter. 2018. How Europe Underdeveloped Africa. Verso Books.

    Schwartz, Stuart B. 2015. Sea of Storms: A History of Hurricanes in the Greater Caribbean from Columbus to Katrina. Princeton University Press.

    Thomas, Clive Y. 1984. Plantations, Peasants and State: A Study of the Mode of Sugar Production in Guyana. Los Angeles: UCLA Center for Afro-American Studies.

    Thurton, David. 2023. “Caribbean Looks to Trudeau to Put Quest for Climate Change Funding on the World’s Agenda.” CBC News. https://www.cbc.ca/news/politics/caricom-trudeau-caribbean-1.6999106.

    TT Weather Center. 2024. “Hurricane Beryl Death Toll Now At 33.” Trinidad and Tobago Weather Center. https://ttweathercenter.com/2024/07/11/hurricane-beryl-death-toll-now-at-33/.

    VOA News. 2024. “Remnants of Beryl Flood Northeast US.” VOA News. https://www.voanews.com/a/remnants-of-beryl-flood-northeast-us/7694063.html#.

    Wagner, Bryce, and Cristiana Mesquita. 2024. “In St. Vincent and the Grenadines, Beryl Nearly Erased the Smallest Inhabited Island from the Map.” AP News. https://apnews.com/article/hurricane-beryl-mayreau-island-caribbean-bb64fc9b61da76685704b8f42f97736c?eType=EmailBlastContent&eId=fffcba4b-3154-47e9-b4ce-e0349f4225db.

    Wilentz, Amy. 2008. “Hurricanes and Haiti.” Los Angeles Times. https://www.latimes.com/la-oe-wilentz13-2008sep13-story.html.

    Wolfe, Mikael. 2021. “When It Comes to Hurricanes, the U.S. Can Learn a Lot from Cuba: Cuba Devised a System That Minimizes Death and Destruction from Hurricanes.” The Washington Post. https://www.washingtonpost.com/outlook/2021/09/01/when-it-comes-hurricanes-us-can-learn-lot-cuba/.

    Zodgekar, Ketaki, Avery Raines, Fayola Jacobs, and Patrick Bigger. 2023. A Dangerous Debt-Climate Nexus. NACLA Report on the Americas. https://doi.org/10.1080/10714839.2023.2247773.

    Photo Credit: InOldNews, by Delia Louis
    Description: Depicts St. Lucia during and post Hurricane Beryl
    License info: Creative Commons taken from Flickr.

    About the author: Tamanisha J. John is an Assistant Professor at York University in the Department of Politics

    MIL OSI NGO

  • MIL-OSI Canada: Temporary measures to support people affected by the crisis in Lebanon

    Source: Government of Canada News (2)

    The situation in Lebanon remains volatile and unpredictable due to violent and intensifying clashes between Israel and Hezbollah, including daily rocket and missile fire as well as air strikes. As conditions continue to worsen, the Government of Canada remains fully engaged and is focused on the safety and security of Canadians in the region.

    October 30, 2024—Ottawa—The situation in Lebanon remains volatile and unpredictable due to violent and intensifying clashes between Israel and Hezbollah, including daily rocket and missile fire as well as air strikes. As conditions continue to worsen, the Government of Canada remains fully engaged and is focused on the safety and security of Canadians in the region.

    Today, the Honourable Marc Miller, Minister of Immigration, Refugees and Citizenship, announced temporary measures to support Canadian citizens, permanent residents and their immediate family members who have left Lebanon, as well as Lebanese nationals already in Canada who are currently unable to return home.

    The immediate family members of Canadian citizens and permanent residents who left Lebanon on or after September 29, 2024, will be eligible to apply for an open work permit, a study permit, or a status extension at no cost once in Canada. These measures apply to spouses and dependants regardless of their nationality, and regardless of whether they left on flights arranged by Global Affairs Canada, or by other means.

    In addition, Lebanese nationals who are already in Canada with valid temporary resident status can now also apply for an open work permit, a study permit, or a status extension at no cost.

    These measures will help keep families together and give Lebanese nationals in Canada a safe place to study, work and stay.

    We continue to urge Canadians to avoid all travel to Lebanon. Canadians, permanent residents and their family members are advised to leave by commercial means now if they can do so safely.

    IRCC has increased its capacity to process files from the region and continues to process applications from Canadians, permanent residents and their family members in Lebanon as quickly as possible.

    More information about eligibility and how to apply is available on IRCC’s website.

    Renée LeBlanc Proctor
    Press Secretary
    Minister’s Office
    Immigration, Refugees and Citizenship Canada
    Renee.Proctor@cic.gc.ca

    Media Relations
    Communications Sector
    Immigration, Refugees and Citizenship Canada
    613-952-1650
    media@cic.gc.ca

    MIL OSI Canada News

  • MIL-OSI Canada: Announcing Funding to Improve Energy Efficiency in Ontario’s Industrial Facilities  

    Source: Government of Canada News (2)

    News release

     October 30, 2024                        Toronto, Ontario                       Natural Resources Canada 

    Investments in energy-saving programs are essential to help industries and workers build a more prosperous and sustainable future. The Government of Canada is committed to innovative energy management solutions for industry partners across the country.

    Today, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, announced a federal investment of nearly $20 million to the Independent Electricity System Operator (IESO) from the Green Industrial Facilities and Manufacturing Program (GIFMP). This funding will support the extension of IESO’s Strategic Energy Management Program.

    NRCan has invested in this initiative to help IESO support industrial facilities across four areas:

    • Energy practitioners 
    • Energy managers 
    • Energy management systems 
    • Strategic energy management 

    Investments like these are key to reducing emissions, maximizing energy performance and increasing energy industry competitiveness in Canada. 

    Quotes

    “Supporting Canadian industry with energy efficiency targets is necessary if we want to improve our competitiveness in a growing global economy where the demand for energy is increasing while ultimately achieving our emissions reduction targets. The Independent Electricity System Operator’s Strategic Energy Management Program will reduce energy costs and environmental impacts in Ontario, creating more efficient and less expensive green power. By supporting programs like IESO’s, the federal government is playing a key role in the modernization and improvement of energy systems for Canadians from coast to coast to coast.”

    The Honourable Jonathan Wilkinson

    Minister of Energy and Natural Resources

    “Energy efficiency means cost savings for Canadian business. Supporting Canadian industrial facilities with their efficiency targets is a necessary step toward improving competitiveness in the global economy. We are pleased to play a part in IESO’s Strategic Energy Management Program through an investment of nearly $20 million that will help deliver more efficient, reliable and cost-saving electricity for Ontarians.”

    Julie Dabrusin, Parliamentary Secretary to the Minister of Energy and Natural Resources and to the Minister of Environment and Climate Change, Member of Parliament for Toronto–Danforth

    “As demand for electricity grows in the industrial sector, this funding from Natural Resources Canada will enable the IESO to expand and enhance our energy management solutions. These programs help ensure that Ontario’s industrial facilities remain efficient and competitive while keeping our system affordable and reliable.”

    Lesley Gallinger

    President and CEO, the IESO

    Quick facts

    • Canada’s industrial sectors represented about 3,650 PJ — or more than 40 percent — of Canada’s total energy use in 2021. 

    • Funding for this program originates in investments from Budget 2022, which included $194 million over five years, starting in 2022–2023, for NRCan to expand its existing Industrial Energy Management program by offering cost-shared financial support for a holistic and comprehensive suite of energy efficiency measures up to March 2027.

    • Designed by Save on Energy — IESO’s source for energy-efficiency opportunities and knowledge in Ontario — the Strategic Energy Management Program will help organizations improve their energy performance by implementing best practices for more energy and cost savings.

    • The Green Industrial Facilities and Manufacturing Program is an expansion of NRCan’s Industrial Energy Management Program and provides support for the implementation of energy management systems, capital retrofits and related capacity-building activities.

    Associated links

    Contacts

    Natural Resources Canada
    Media Relations
    343-292-6100
    media@nrcan-rncan.gc.ca

    Cindy Caturao
    Press Secretary
    Office of the Minister of Energy and Natural Resources
    613-795-5638
    cindy.caturao@nrcan-rncan.gc.ca

    Follow us on LinkedIn

    MIL OSI Canada News

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

    Source: Bank of Canada

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

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

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

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

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

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

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

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

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

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

    Let me conclude.

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

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

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

    MIL OSI Canada News

  • MIL-OSI New Zealand: Global privacy authorities issue follow-up joint statement on data scraping after industry engagement

    Source: Privacy Commissioner

    OPC and several global counterparts are highlighting how social media companies can better protect personal information, as concerns grow about mass scraping of personal information within social media platforms, including to support artificial intelligence systems.

    Mass data scraping poses significant risks to individuals fundamental right to privacy, said Canadian Commissioner Philippe Dufresne. Personal information, even when it is publicly accessible, is subject to privacy laws and must be adequately protected. This initiative highlights the importance of collaboration between data protection authorities and with industry.

    Commissioner Dufresne, New Zealand Privacy Commissioner Michael Webster and their counterparts engaged with some of the worlds largest social media companies after issuing a joint statement on data scraping last year. As a result of this engagement, they have now issued a follow-up statement laying out additional takeaways for industry.

    MIL OSI New Zealand News

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

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

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

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

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

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

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

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

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

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

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

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

    +++

     

    October 30, 2024

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

     

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

     

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

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

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

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

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

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

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

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

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

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

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

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

     

    ###

    MIL OSI USA News

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

    Third Quarter 2024 Summary vs. Same Year-Ago Quarter

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

    Management Commentary

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

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

    Dividend

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

    Third Quarter 2024 Financial Results

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

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

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

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

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

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

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

    Conference Call

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

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

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

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

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

    About Climb Global Solutions

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

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

    Non-GAAP Financial Measures

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

    Forward-Looking Statements

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

    Company Contact

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

    Investor Relations Contact

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

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

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

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

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

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

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

    The MIL Network

  • MIL-OSI: Trupanion Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

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

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

    Third Quarter 2024 Financial and Business Highlights

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

    First Nine Months 2024 Financial and Business Highlights

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

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

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

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

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

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

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

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

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

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

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

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

    Contacts:

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

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

    The MIL Network

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

    Source: GlobeNewswire (MIL-OSI)

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

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

    About Archrock

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

    SOURCE: Archrock, Inc.

    For information, contact:

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

    The MIL Network

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

    Source: GlobeNewswire (MIL-OSI)

    Third Quarter Results

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

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

    Financial Review

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

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

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

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

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

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

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

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

    Liquidity and Capital Expenditures

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

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

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

    Review and Outlook 

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

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

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

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

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

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

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

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

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

    Conference Call

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

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

    About NCS Multistage Holdings, Inc.

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

    Forward Looking Statements

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

    Contact

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

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

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

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

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

    _____________________
    * Preliminary

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

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

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

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

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

    Non-GAAP Financial Measures 

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

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

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

    NET WORKING CAPITAL*

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

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

    _____________________
    *Preliminary

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

    ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN

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

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

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

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

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

    __________________

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

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

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

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

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

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

    ___________________

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

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

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

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

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

    The MIL Network

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

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

    This story contains spoilers about ‘A Different Man.’

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

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

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

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




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


    Perceptions of disability

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

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

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

    Trailer for ‘A Different Man.’

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

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

    Embracing one’s identity

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

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

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

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

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

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

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

    Appearance and conformity

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

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

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

    Questions of identity

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

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

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

    Authenticity in disability representation

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

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




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


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

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

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

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

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

    MIL OSI – Global Reports

  • MIL-OSI Canada: Manitoba Government Introduces Bill 41 to Expand Mandatory Training for Prospective Judges and Judicial Justices of the Peace

    Source: Government of Canada regional news

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

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


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

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

    Under proposed amendments to the Provincial Court Act, candidates for appointment as provincial court judges would be required to participate in continuing education in three new areas:

    • intimate partner violence;
    • coercive control in intimate partner and family relationships; and
    • the experience of Indigenous persons and 2SLGBTQIA+ persons in the justice system and in society generally.

    These would be in addition to current requirements to participate in continuing education on sexual assault law and social context including systemic racism and systemic discrimination.

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

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

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

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

    – 30 –

    MIL OSI Canada News

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

    Source: GlobeNewswire (MIL-OSI)

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

    Third Quarter 2024 Highlights:

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

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

    Consolidated Financial Highlights

        Three months ended   Nine months ended
        September 30,   September 30,
    (dollars in thousands, except per share amounts)   2024   2023(iv)   2024   2023(iv)
    Revenue   $ 286,857     $ 196,881     $ 860,197     $ 636,398  
    Total combined revenue(i)     367,155       274,757       1,042,591       875,666  
                     
    Gross profit     65,098       26,518       168,057       89,213  
    Gross profit margin(i)     22.7 %     13.5 %     19.5 %     14.0 %
                     
    Combined gross profit(i)     80,415       38,004       205,229       130,181  
    Combined gross profit margin(i)(ii)     21.9 %     13.8 %     19.7 %     14.9 %
                     
    Operating income     53,805       14,344       130,786       50,386  
                     
    Adjusted EBITDA(i)(iii)     106,384       59,371       286,516       195,827  
    Adjusted EBITDA margin(i)(iii)     29.0 %     21.6 %     27.5 %     22.4 %
                     
    Net income     13,901       11,387       39,277       45,495  
    Adjusted net earnings(i)     31,253       14,295       72,961       52,060  
                     
    Cash provided by operating activities     48,184       37,512       119,063       109,521  
    Cash provided by operating activities prior to change in working capital(i)     79,838       41,666       222,641       134,646  
                     
    Free cash flow(i)     10,785       8,940       (32,518 )     (21,817 )
                     
    Purchase of PPE     61,812       39,295       203,772       114,210  
    Sustaining capital additions(i)     21,127       42,290       118,317       127,792  
    Growth capital additions(i)     21,437       1,727       60,987       4,475  
                     
    Basic net income per share   $ 0.52     $ 0.43     $ 1.47     $ 1.72  
    Adjusted EPS(i)   $ 1.17     $ 0.54     $ 2.73     $ 1.96  

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

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

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

    Declaration of Quarterly Dividend

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

    Financial Results for the Three Months Ended September 30, 2024

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

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

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

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

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

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

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

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

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

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

    2024 Strategic Focus Areas

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

    Liquidity

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

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

    (i)See “Non-GAAP Financial Measures”.


    NACG’s Outlook for 2024

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

    Key measures   2024
    Combined revenue(i)   $1.4 – $1.5B
    Adjusted EBITDA(i)   $395 – $415M
    Sustaining capital(i)   $150 – $170M
    Adjusted EPS(i)   $3.95 – $4.15
    Free cash flow(i)   $100 – $120M
         
    Capital allocation    
    Growth spending(i)   $85 – $95M
    Net debt leverage(i)   Targeting 2.1x

    (i)See “Non-GAAP Financial Measures”.


    Conference Call and Webcast

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

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

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

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

    The live presentation and webcast can be accessed at:

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

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

    Basis of Presentation

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

    Change in significant accounting policy – Basis of presentation

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

    Forward-Looking Information

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

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

    Non-GAAP Financial Measures

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

    Reconciliation of total reported revenue to total combined revenue

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

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


    Reconciliation of reported gross profit to combined gross profit

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

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


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

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

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


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

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

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


    About the Company

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

    For further information contact:

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

    Interim Consolidated Balance Sheets

    (Expressed in thousands of Canadian Dollars)
    (Unaudited) 

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

    Interim Consolidated Statements of Operations and
    Comprehensive Income

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

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

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

    The MIL Network

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

    The MIL Network

  • MIL-OSI Canada: Manitoba Government Now Requires Heated Buses on Roads

    Source: Government of Canada regional news

    Manitoba Government Now Requires Heated Buses on Roads

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


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

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

    The amendments to the Vehicle Equipment, Safety and Inspection Regulation and Commercial Vehicle Trip Inspection Regulation under the Highway Traffic Act will:

    • require functional passenger heating systems on all buses;
    • detail the methods of inspection to determine the heating system is functional; and
    • add passenger heaters to the list of equipment that must be inspected before the start of a trip.

    “For northern bus passengers travelling overnight during the winter, working heaters are a necessity,” said Mayor Colleen Smook, City of Thompson. “They’re a vital piece of safety equipment on highways where communities are hundreds of kilometres apart.”

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

    – 30 –

    MIL OSI Canada News

  • MIL-OSI Canada: Larger fines for illegal slaughter, uninspected meat

    Source: Government of Canada regional news

    [embedded content]

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

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

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

    RJ Sigurdson, Minister of Agriculture and Irrigation

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

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

    Mike Bouma, general manager, Family Meats

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

    Lynn McMullen, professor emerita, University of Alberta

    Quick facts

    • The sale of uninspected meat is illegal in Alberta.
    • Any meat or meat product that is sold or distributed in Alberta must come from an inspected slaughter facility (abattoir) or processing facility.
    • Alberta government meat inspectors are on site in provincially licensed abattoirs to ensure the meat produced is safe for consumption.
    • When required, Alberta provides additional inspected slaughter days to provincially licensed facilities, including on weekends, to support cultural celebrations.    
    • Alberta licenses 121 abattoirs that produce inspected meat under the supervision of provincial meat inspectors.
    • Alberta has 65 meat inspectors and program specialists who support licensing, inspections and surveillance.

    Related information

    • Meat Inspection Act – rules on the slaughter and sale of inspected meat
    • Directory of licensed slaughter operations – abattoirs, mobile butchers, mobile butcher facilities and on-farm slaughter operations
    • Resources for provincially licensed slaughter operations
    • Bill 28: Meat Inspection Amendment Act

    Multimedia

    • Watch the news conference
    • Listen to the news conference

    MIL OSI Canada News

  • MIL-OSI Canada: Alberta strengthens child care safety

    Source: Government of Canada regional news

    [embedded content]

    Alberta’s government recognizes that the vast majority of providers are dedicated to delivering safe, quality care. However, when child safety is compromised, action is necessary. Proposed changes to the Early Learning and Child Care Amendment Act, 2024, would help the government ensure child safety by strengthening its ability to hold non-compliant providers accountable, speeding up its ability to address issues in care and upholding public trust in the child-care system.

    The health and safety of children is the government’s top priority. Additional amendments would allow the government’s child-care licensing team to impose penalties on licence holders and educators who jeopardize child safety and who do not meet quality standards. By making these changes, Alberta would align with other Canadian jurisdictions.

    “Albertans deserve to have confidence in their child-care system. They deserve transparent, high-quality and safe care for their kids. When parents, guardians and caregivers go to work or school, they need to know their children are safe in their child-care setting. The Early Learning and Child Care Amendment Act, 2024, would strengthen the tools available to enforce quality care and give parents peace of mind that their government has their back.”

    Matt Jones, Minister of Jobs, Economy and Trade

    To build further trust in Alberta’s child-care system, amendments to the act would ensure parents have easy access to vital information about their kids’ care. In addition to the non-compliances that are already posted online, these changes would put more information at the fingertips of parents, including the certification status of early childhood educators and stop orders against unlicensed providers.  This would help parents make informed choices about their child’s care.

    Amendments would also enhance the government’s ability to target specific issues at a child-care facility while allowing for the temporary closure of only part of a child-care program, rather than closing the entire program. This would help minimize impacts to parents and children.

    The vast majority of providers consistently provide safe, quality care. These programs will remain unaffected, fully able to provide child care to their communities.

    “As a program manager of a mid-sized child-care centre, I am proud to support the Early Learning and Child Care Amendment Act. As an established child-care provider, parents in my community trust in me to provide quality care. I am more than happy to provide parents with every reassurance they need so they can go to work and know their kids are safe, healthy and well taken care of in my facility. It is great to see the province stepping up and putting forward these important changes.”

    Bernice Taylor, program manager, Early Childcare Development Centre

    If passed, the updated Early Learning and Child Care Act would address the recommendation from the Food Safety and Licensed Facility-Based Child Care Review Panel to clearly state that all facility-based licence holders must comply with applicable zoning, health and safety legislation.

    Alberta’s government continues to work with child-care providers, the federal government and parents to ensure the child-care system works within the province’s unique, mixed-market child-care system.

    “Legislation, policies and processes across authorities must be cohesive and complementary if they are to be effective. As a member of the Food Safety and Licensed Facility-Based Child Care Review Panel, an expert in food safety standards and an advocate for food safety, I commend Alberta’s government for their proposed amendments to the Early Learning and Child Care Act. These changes prioritize the health and well-being of our children by strengthening the understanding of food safety and food handling requirements of child-care providers and regulators.”

    Dr. Lynn McMullen, professor emerita, University of Alberta

    Related information

    • Early Learning and Child Care Act
    • Finding and Choosing Child Care
    • Bill 25: Early Learning and Child Care Amendment Act, 2024

    Related news 

    • Enhancing food safety in child-care settings (Jul. 29, 2024)

    Multimedia

    • Watch the news conference
    • Listen to the news conference

    MIL OSI Canada News

  • MIL-OSI Global: What the Thai cave rescue can teach us about unconventional leadership

    Source: The Conversation – Canada – By Amélie Cloutier, Professor of Strategy and Innovation, Université du Québec à Montréal (UQAM)

    Leadership can emerge from unexpected places, especially during times of crisis. One such example occurred during the 2018 rescue of a group of 12 young soccer players and their coach, who were trapped in a cave in northern Thailand after heavy rains blocked their exit route.

    The 17-day rescue operation involved a co-ordinated response from thousands of people, including 2,000 soldiers, 200 divers and personnel from 100 government agencies. The success of the operation was largely due to an unconventional group of leaders: an international group of cave divers whose unique expertise was vital to the rescue effort.

    Our recent research on the rescue aimed to explore how leadership can emerge outside of the traditional chain of command. To do this, we analyzed a documentary and news coverage about the rescue, along with scientific literature and online searches, including LinkedIn profiles.

    We wanted to better understand development of leaders who don’t adhere to the stereotypical image of heroic or charismatic leaders. These atypical leaders challenge our conventional ideas about what a leader should look like, or how they should act.

    From advisers to leaders

    Tham Luang Nang Non is a cave located beneath Doi Nang Non, a mountain range on the border between Thailand and Myanmar. On June 23, 2018, a group of 12 boys from a local soccer team and their assistant coach became trapped in the cave after heavy rainfall blocked their way out.

    On June 25, Royal Thai Navy SEAL divers arrived and began searching the cave for the team, but the flooding made it impossible to locate them. Initially, civilian cave divers were brought in as advisers to the Navy SEALs. However, when the SEAL divers failed to locate the trapped team, the cave divers took the lead.

    On July 2, two divers from the British Cave Rescue Council found the group alive, and their roles shifted from being advisers to active participants in the rescue operation.

    Following the discovery, the Thai Navy SEAL divers attempted to reclaim their roles as primary rescuers, believing they had the ability to complete the mission. However, their overconfidence and underestimation of the challenges ahead led to a critical setback: those who reached the children were unable to return with them due to a lack of oxygen.

    With the situation worsening, the cave divers successfully persuaded the conventional leaders in place — Governor Narongsak Osatanakorn, Lt. Gen. Bancha Duriyapunt, Rear-Admiral Apakorn Youkongkaew and Capt. Anan Surawan — to allow them to take over the mission.

    The cave divers assembled a new team of expert cave divers from around the world. The extraction began on July 8, and by July 10, everyone had been rescued.

    The ‘Rudolph Effect’

    The rescue operation demonstrates how individuals with specialized skills and social capital can step up to lead effectively, even in the most challenging situations.

    Before the rescue, many viewed cave diving as odd, and even abnormal. In the documentary The Rescue, cave diver Josh Bratchley acknowledged that being in a pitch-black cave underwater is “probably some people’s worst nightmares.” But for cave diver Jim Warny, “once I get underground, that all disappears.”

    For these self-described unconventional individuals, their love for cave diving and exploration serves as a form of escape and empowerment, while accepting that they stand apart from the norm.

    However, their knowledge of navigating cold and dark waters underground, combined with their capital within the cave diving community, made the cave divers effective leaders. This case study demonstrates how leadership can emerge unexpectedly, and how atypical skills like cave diving, if valued and encouraged, can lead to innovative solutions.

    In our study, we coined the term the “Rudolph Effect” to describe how outcasts and unconventional individuals can become key leaders when given opportunities. Like Rudolph the Red-Nosed Reindeer, the term’s namesake, these leaders can guide their teams through extreme situations effectively, using skills and perspectives that traditional leaders might not possess.

    Unconventional and trustworthy helpers can transform into leaders, leveraging their unique skills, knowledge and social capital to manage extreme situations. But this transformation is only possible if they have the chance to demonstrate their abilities.

    Cultivating unconventional leaders

    The need for these unique leaders isn’t limited to extreme situations. By highlighting an extreme example, we aim to show that managers should create more opportunities for unconventional thinkers to contribute, even in day-to-day situations.

    Managers should identify and nurture leadership potential in individuals from diverse backgrounds and experiences. By doing this, organizations can not only improve their ability to handle crises, but also widen their pool of potential leaders. This diversity strengthens companies, making them more resilient and adaptable when facing unexpected challenges.

    This case study serves as a reminder for managers to constantly reassess and adjust their resources to achieve their goals. In tough situations, it can be beneficial to bring in leaders who think outside the box.

    Managers should be aware of the unique skills and connections within their teams to identify these unconventional leaders during their risk planning. They should also have backup plans ready in case initial solutions prove ineffective.

    Amélie Cloutier receives funding from FRQSC.

    Andrew Webb receives funding from SSHRC and le Secrétaire du Conseil du Trésor du Québec.

    ref. What the Thai cave rescue can teach us about unconventional leadership – https://theconversation.com/what-the-thai-cave-rescue-can-teach-us-about-unconventional-leadership-233538

    MIL OSI – Global Reports