Category: Emissions Trading

Source: New Zealand Government

The Government has made key decisions on a Carbon Capture, Utilisation, and Storage (CCUS) framework to enable businesses to benefit from storing carbon underground will support New Zealand’s businesses to continue operating while reducing net carbon emissions, Energy and Climate Change Minister Simon Watts says.
“Economic growth is a key focus for this Government, and we want the energy sector to be the engine for our economy – driving electrification and unlocking economic growth,” Mr Watts says.
“The Government is committed to removing regulatory barriers to enable the supply of abundant, affordable energy to power our homes and businesses – and to reduce net carbon emissions.”
The Government has made decisions on the key elements of a CCUS framework, designed to enable carbon capture and storage in New Zealand, with legislation expected to be introduced this year.
“Under our CCUS framework, businesses that capture and store CO2 will be rewarded through the Emissions Trading Scheme (ETS), our Government’s key tool to reducing net emissions. This will help reduce emissions obligations for New Zealand businesses as we progress towards a low-emissions economy,” Mr Watts says.
“By making these decisions, we are aligning New Zealand with other countries that are successfully utilising CCUS to drive economic growth and attract investment. Our framework not only supports innovation but also provides a pathway for businesses to remain competitive while reducing net emissions.
“Ensuring safe and effective storage of CO2 is critically important. That’s why our framework will require any CCUS project to undertake a thorough assessment of storage site suitability and proposed operations, followed by ongoing monitoring.
“CCUS is gaining momentum internationally as a way to reduce net emissions and support economic growth. In New Zealand, this innovative approach has significant untapped potential of capturing CO2 emissions that would not otherwise benefit Kiwis to create valuable products and materials.
“Our Government’s second emissions reduction plan, which was released at the end of last year, highlighted carbon capture and storage as a key tool to meeting the second and third emissions budgets.”

MIL OSI New Zealand News –

Source: GlobeNewswire (MIL-OSI)

TROY, Mich., Feb. 20, 2025 (GLOBE NEWSWIRE) — Altair (Nasdaq: ALTR), a global leader in computational intelligence, today released its financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights

Software revenue was $179.4 million compared to $155.9 million for the fourth quarter of 2023, an increase of 15.0% in reported currency and 16.5% in constant currency
Total revenue was $192.6 million compared to $171.5 million for the fourth quarter of 2023, an increase of 12.3% in reported currency and 13.8% in constant currency
Net income was $1.0 million compared to $19.7 million for the fourth quarter of 2023, a decrease in earnings of $18.7 million. Net income per share, diluted was $0.01 based on 89.3 million diluted weighted average common shares outstanding, compared to net income per share, diluted of $0.22 for the fourth quarter of 2023, based on 89.0 million diluted weighted average common shares outstanding. Net income margin was 0.5% compared to net income margin of 11.5% for the fourth quarter of 2023
Non-GAAP net income was $47.4 million, compared to non-GAAP net income of $41.1 million for the fourth quarter of 2023, an increase of $6.3 million. Non-GAAP net income per share, diluted was $0.52 based on 92.6 million non-GAAP diluted common shares outstanding, compared to non-GAAP net income per share, diluted of $0.47 for the fourth quarter of 2023, based on 89.0 million non-GAAP diluted common shares outstanding
Adjusted EBITDA was $61.0 million compared to $53.6 million for the fourth quarter of 2023, an increase of 13.9%. Adjusted EBITDA margin was 31.7% compared to 31.2% for the fourth quarter of 2023
Cash provided by operating activities was $37.5 million, compared to $21.7 million for the fourth quarter of 2023
Free cash flow was $33.2 million, compared to $19.3 million for the fourth quarter of 2023.

Full Year 2024 Financial Highlights

Software revenue was $611.9 million compared to $550.0 million for the full year of 2023, an increase of 11.3% in reported currency and 12.5% in constant currency
Total revenue was $665.8 million compared to $612.7 million for the full year of 2023, an increase of 8.7% in reported currency and 9.8% in constant currency
Net income was $14.2 million compared to a net loss of $(8.9) million for the full year of 2023, an improvement in earnings of $23.1 million. Net income per share, diluted was $0.16 based on 88.6 million diluted weighted average common shares outstanding, compared to net loss per share, diluted of $(0.11) for the full year of 2023, based on 80.6 million diluted weighted average common shares outstanding. Net income margin was 2.1% compared to net loss margin of -1.5% for the full year of 2023
Non-GAAP net income was $119.6 million, compared to non-GAAP net income of $98.8 million for the full year of 2023, an increase of $20.8 million. Non-GAAP net income per share, diluted was $1.35 based on 91.8 million non-GAAP diluted common shares outstanding, compared to non-GAAP net income per share, diluted of $1.17 for the full year of 2023, based on 84.4 million non-GAAP diluted common shares outstanding
Adjusted EBITDA was $149.9 million compared to $129.1 million for the full year of 2023, an increase of 16.1%, Adjusted EBITDA margin was 22.5% compared to 21.1% for the full year of 2023
Cash provided by operating activities was $154.1 million, compared to $127.3 million for the full year of 2023
Free cash flow was $140.0 million, compared to $117.1 million for the full year of 2023.

Pending Transaction with Siemens and Conference Call Information

On January 22, 2025, Altair’s stockholders approved the previously announced merger agreement providing for the acquisition of Altair by Siemens Industry Software Inc. (“Siemens”). Completion of the pending transaction remains subject to certain customary closing conditions. Altair now anticipates that this transaction may close in the first half of 2025. In light of the pending transaction with Siemens, Altair is suspending quarterly financial results conference calls and its quarterly and annual guidance.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: Non-GAAP Net Income, Non-GAAP Net Income Per Share, Billings, Adjusted EBITDA, Free Cash Flow, Non-GAAP Gross Profit and Non-GAAP Operating Expense.

Altair believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. The Company also believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP net income excludes stock-based compensation, amortization of intangible assets related to acquisitions, asset impairment charges, non-cash interest expense, other special items as identified by management and described elsewhere in this press release, and the impact of non-GAAP tax rate to income tax expense, which approximates our tax rate excluding discrete items and other specific events that can fluctuate from period to period.

Non-GAAP diluted common shares is calculated using the treasury stock method to calculate the effect of dilutive securities, stock options, restricted stock units and employee stock purchase plan shares and using the if-converted method to calculate the effect of convertible instruments. This is the same methodology that is used when calculating GAAP diluted shares. However, the determination of whether the shares are dilutive or antidilutive is made independently on a GAAP and non-GAAP net income (loss) basis and therefore the number of diluted shares outstanding for GAAP and non-GAAP may be different.

Billings consists of total revenue plus the change in deferred revenue, excluding deferred revenue from acquisitions.

Adjusted EBITDA represents net income adjusted for income tax expense, interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, asset impairment charges and other special items as identified by management and described elsewhere in this press release.

Free cash flow consists of cash flow from operations less capital expenditures.

Non-GAAP gross profit represents gross profit adjusted for stock-based compensation expense and other special items as identified by management and described elsewhere in this press release.

Non-GAAP operating expense represents operating expense excluding stock-based compensation expense, amortization, asset impairment charges and other special items as identified by management and described elsewhere in this press release.

Company management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Altair urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release.

About Altair

Altair is a global leader in computational intelligence that provides software and cloud solutions in simulation, high-performance computing, data analytics and AI. Altair enables organizations across all industries to compete more effectively and drive smarter decisions in an increasingly connected world – all while creating a greener, more sustainable future. To learn more, please visit https://www.altair.com.

Forward-Looking Statements

This communication contains “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. Any statements contained in this communication that are not statements of historical fact, including statements regarding the proposed transaction, including the expected timing and closing of the proposed transaction; Altair’s ability to consummate the proposed transaction; the expected benefits of the proposed transaction and other considerations taken into account by the Altair Board of Directors in approving the proposed transaction; the amounts to be received by stockholders and expectations for Altair prior to and following the closing of the proposed transaction, may be deemed to be forward-looking statements. All such forward-looking statements are intended to provide management’s current expectations for the future of Altair based on current expectations and assumptions relating to Altair’s business, the economy and other future conditions. Forward-looking statements generally can be identified through the use of words such as “believes,” “anticipates,” “may,” “should,” “will,” “plans,” “projects,” “expects,” “expectations,” “estimates,” “forecasts,” “predicts,” “targets,” “prospects,” “strategy,” “signs,” and other words of similar meaning in connection with the discussion of future performance, plans, actions or events. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. Such risks and uncertainties include, among others: (i) the timing to consummate the pending merger transaction with Siemens Industry Software Inc. (the “Merger”), (ii) the risk that a condition of closing of the pending Merger transaction may not be satisfied or that the closing of the proposed transaction might otherwise not occur, (iii) the risk that a regulatory approval that may be required for the pending Merger transaction is not obtained or is obtained subject to conditions that are not anticipated, (iv) the diversion of management time on transaction-related issues, (v) risks related to disruption of management time from ongoing business operations due to the pending Merger transaction, (vi) the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the common stock of Altair, (vii) the risk that the pending Merger transaction and its announcement could have an adverse effect on the ability of Altair to retain customers and retain and hire key personnel and maintain relationships with its suppliers and customers, (viii) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the Merger Agreement, dated October 30, 2024, with Siemens Industry Software Inc. (the “Merger Agreement”), (ix) business uncertainties and contractual restrictions on our operations while the proposed Merger transaction is pending, (x) unexpected costs, charges or expenses resulting from the pending Merger transaction, (xi) potential litigation relating to the pending Merger transaction that could be instituted against the parties to the Merger Agreement or their respective directors, managers or officers, including the effects of any outcomes related thereto, (xii) worldwide economic or political changes that affect the markets that Altair’s businesses serve which could have an effect on demand for Altair’s products and impact Altair’s profitability, and (xiii) disruptions in the global credit and financial markets, including diminished liquidity and credit availability, changes in international trade agreements, including tariffs and trade restrictions, cyber-security vulnerabilities, foreign currency volatility, swings in consumer confidence and spending, raw material pricing and supply issues, retention of key employees, increases in fuel prices, and outcomes of legal proceedings, claims and investigations. Accordingly, actual results may differ materially from those contemplated by these forward-looking statements. Investors, therefore, are cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in Altair’s filings with the SEC, including the risks and uncertainties identified in Part I, Item 1A – Risk Factors of Altair’s Annual Report on Form 10-K for the year ended December 31, 2024 and in Altair’s other filings with the SEC. The list of factors is not intended to be exhaustive. These forward-looking statements speak only as of the date of this communication, and Altair does not assume any obligation to update or revise any forward-looking statement made in this communication or that may from time to time be made by or on behalf of Altair.

Media Relations
Altair
Jennifer Ristic
216-849-3109
jristic@altair.com

Investor Relations
Altair
Stephen Palmtag
669-328-9111
spalmtag@altair.com

ALTAIR ENGINEERING INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited)

	December 31,
(in thousands)	2024			2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	561,898		$	467,459
Accounts receivable, net		173,509			190,461
Income tax receivable		21,513			16,650
Prepaid expenses and other current assets		28,058			26,053
Total current assets		784,978			700,623
Property and equipment, net		41,008			39,803
Operating lease right of use assets		31,117			30,759
Goodwill		462,459			458,125
Other intangible assets, net		72,937			83,550
Deferred tax assets		8,770			9,955
Other long-term assets		44,378			40,678
TOTAL ASSETS	$	1,445,647		$	1,363,493
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	7,316		$	8,995
Accrued compensation and benefits		50,328			45,081
Current portion of operating lease liabilities		7,876			8,825
Other accrued expenses and current liabilities		56,058			48,398
Deferred revenue		139,085			131,356
Current portion of convertible senior notes, net		227,106			81,455
Total current liabilities		487,769			324,110
Convertible senior notes, net		—			225,929
Operating lease liabilities, net of current portion		24,141			22,625
Deferred revenue, non-current		28,531			32,347
Other long-term liabilities		48,017			47,151
TOTAL LIABILITIES		588,458			652,162
Commitments and contingencies
STOCKHOLDERS’ EQUITY
Preferred stock ($0.0001 par value), authorized 45,000 shares, none issued or outstanding		—			—
Common stock ($0.0001 par value)
Class A common stock, authorized 513,797 shares, issued and outstanding 60,181 and 55,240 shares as of December 31, 2024 and 2023, respectively		6			5
Class B common stock, authorized 41,203 shares, issued and outstanding 25,394 and 26,814 shares as of December 31, 2024 and 2023, respectively		3			3
Additional paid-in capital		1,010,789			864,135
Accumulated deficit		(116,328	)		(130,503	)
Accumulated other comprehensive loss		(37,281	)		(22,309	)
TOTAL STOCKHOLDERS’ EQUITY		857,189			711,331
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,445,647		$	1,363,493

ALTAIR ENGINEERING INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended December 31,						Year Ended December 31,
(in thousands, except per share data)	2024			2023			2024			2023
Revenue
License	$	131,943		$	113,172		$	435,288		$	393,144
Maintenance and other services		47,433			42,761			176,612			156,830
Total software		179,376			155,933			611,900			549,974
Engineering services and other		13,255			15,570			53,888			62,727
Total revenue		192,631			171,503			665,788			612,701
Cost of revenue
License		4,662			3,200			15,099			15,088
Maintenance and other services		17,604			14,340			64,014			56,094
Total software *		22,266			17,540			79,113			71,182
Engineering services and other		11,113			11,633			45,690			50,609
Total cost of revenue		33,379			29,173			124,803			121,791
Gross profit		159,252			142,330			540,985			490,910
Operating expenses:
Research and development *		57,147			52,519			221,161			212,645
Sales and marketing *		47,812			43,595			184,280			176,138
General and administrative *		35,595			17,096			90,150			70,887
Amortization of intangible assets		8,709			7,708			33,022			30,851
Other operating (income) expense, net		(976	)		(1,178	)		(5,313	)		146
Total operating expenses		148,287			119,740			523,300			490,667
Operating income		10,965			22,590			17,685			243
Interest expense		1,339			1,533			5,836			6,116
Other income, net		(316	)		(8,794	)		(20,781	)		(18,492	)
Income before income taxes		9,942			29,851			32,630			12,619
Income tax expense		8,946			10,176			18,455			21,545
Net income (loss)	$	996		$	19,675		$	14,175		$	(8,926	)
Earnings (loss) per share, basic
Earnings (loss) per share	$	0.01		$	0.24		$	0.17		$	(0.11	)
Weighted average shares		85,289			81,760			84,085			80,596
Earnings (loss) per share, diluted
Earnings (loss) per share	$	0.01		$	0.22		$	0.16		$	(0.11	)
Weighted average shares		89,346			88,977			88,558			80,596

* Amounts include stock-based compensation expense as follows (in thousands):

	(Unaudited)
	Three Months Ended December 31,				Year Ended December 31,
(in thousands)	2024		2023		2024		2023
Cost of revenue – software	$	2,167	$	2,303	$	8,397	$	10,095
Research and development		6,274		7,332		25,630		33,842
Sales and marketing		4,784		6,271		19,459		28,376
General and administrative		3,745		3,252		14,194		13,268
Total stock-based compensation expense	$	16,970	$	19,158	$	67,680	$	85,581

ALTAIR ENGINEERING INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)

	Year Ended December 31,
(in thousands)	2024			2023			2022
OPERATING ACTIVITIES:
Net income (loss)	$	14,175		$	(8,926	)	$	(43,429	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		42,164			39,124			35,504
Stock-based compensation expense		67,680			85,581			84,787
Deferred income taxes		(707	)		(2,319	)		(4,164	)
Loss (gain) on mark-to-market adjustment of contingent consideration		476			5,706			(7,153	)
Expense on repurchase of convertible senior notes		—			—			16,621
Other, net		2,015			1,943			2,179
Changes in assets and liabilities:
Accounts receivable		14,560			(19,141	)		(34,175	)
Prepaid expenses and other current assets		(7,622	)		(1,915	)		1,014
Other long-term assets		2,431			(52	)		2,852
Accounts payable		(2,127	)		(1,878	)		3,771
Accrued compensation and benefits		7,013			1,783			280
Other accrued expenses and current liabilities		7,791			9,068			(59,463	)
Deferred revenue		6,235			18,333			40,946
Net cash provided by operating activities		154,084			127,307			39,570
INVESTING ACTIVITIES:
Payments for acquisition of businesses, net of cash acquired		(27,070	)		(3,236	)		(134,541	)
Capital expenditures		(14,086	)		(10,193	)		(9,648	)
Other investing activities, net		(4,974	)		(2,423	)		(10,322	)
Net cash used in investing activities		(46,130	)		(15,852	)		(154,511	)
FINANCING ACTIVITIES:
Settlement of convertible senior notes		(81,729	)		—			—
Proceeds from the exercise of common stock options		65,537			36,140			3,577
Proceeds from employee stock purchase plan contributions		9,157			7,978			8,976
Payments for repurchase and retirement of common stock		—			(6,255	)		(19,659	)
Proceeds from issuance of convertible senior notes, net of underwriters’ discounts and commissions		—			—			224,265
Repurchase of convertible senior notes		—			—			(192,422	)
Payments for issuance costs of convertible senior notes		—			—			(1,523	)
Other financing activities		—			(97	)		(233	)
Net cash (used in) provided by financing activities		(7,035	)		37,766			22,981
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(6,453	)		1,397			(5,094	)
Net increase (decrease) in cash, cash equivalents and restricted cash		94,466			150,618			(97,054	)
Cash, cash equivalents and restricted cash at beginning of year		467,576			316,958			414,012
Cash, cash equivalents and restricted cash at end of period	$	562,042		$	467,576		$	316,958

Change in Presentation of Revenue and Cost of Revenue

Effective in the first quarter of 2024, the Company changed the presentation of revenue and cost of revenue in its Consolidated Statements of Operations to combine the financial statement line items (“FSLIs”) labeled “Software related services”, “Client engineering services” and “Other” into one FSLI labeled “Engineering services and other”. The change in presentation has been applied retrospectively and does not affect the software revenue, total revenue, software cost of revenue or total cost of revenue amounts previously reported or have any effect on segment reporting.

Financial Results

The following table provides a reconciliation of Non-GAAP net income and Non-GAAP net income per share – diluted, to net income (loss) and net income (loss) per share – diluted, the most comparable GAAP financial measures:

		(Unaudited)
		Three Months Ended December 31,						Year Ended December 31,
(in thousands, except per share amounts)		2024			2023			2024			2023
Net income (loss)		$	996		$	19,675		$	14,175		$	(8,926	)
Stock-based compensation expense			16,970			19,158			67,680			85,581
Amortization of intangible assets			8,709			7,708			33,022			30,851
Non-cash interest expense			310			470			1,514			1,869
Impact of non-GAAP tax rate⁽¹⁾			(6,842	)		(4,261	)		(21,406	)		(13,158	)
Special adjustments and other⁽²⁾			27,219			(1,659	)		24,597			2,553
Non-GAAP net income		$	47,362		$	41,091		$	119,582		$	98,770

Net income (loss) per share, diluted		$	0.01		$	0.22		$	0.16		$	(0.11	)
Non-GAAP net income per share, diluted		$	0.52		$	0.47		$	1.35		$	1.17

GAAP diluted shares outstanding:			89,346			88,977			88,558			80,596
Non-GAAP diluted shares outstanding:			92,555			88,977			91,767			84,433

(1)	For the three months and year ended December 31, 2024, the Company used a non-GAAP effective tax rate of 25%. For the three months and year ended December 31, 2023, the Company used a non-GAAP effective tax rate of 26%.
(2)	The three months ended December 31, 2024, includes $22.3 million of expenses related to the pending Merger transaction, $4.7 million of currency losses on acquisition-related intercompany loans and a $0.3 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions. The three months ended December 31, 2023, includes $2.9 million of currency gains on acquisition-related intercompany loans and a $1.2 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions. The year ended December 31, 2024, includes $22.3 million of expenses related to the pending Merger transaction, $1.9 million of currency losses on acquisition-related intercompany loans and a $0.5 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions. The year ended December 31, 2023, includes a $5.7 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions and $3.2 million of currency gains on acquisition-related intercompany loans.

The following table provides a reconciliation of Adjusted EBITDA to net income (loss), the most comparable GAAP financial measure:

	(Unaudited)
	Three Months Ended December 31,					Year Ended December 31,
(in thousands)	2024		2023			2024		2023
Net income (loss)	$	996	$	19,675		$	14,175	$	(8,926	)
Income tax expense		8,946		10,176			18,455		21,545
Stock-based compensation expense		16,970		19,158			67,680		85,581
Interest expense		1,339		1,533			5,836		6,116
Depreciation and amortization		11,044		9,853			42,164		39,124
Special adjustments, interest income and other⁽¹⁾		21,746		(6,822	)		1,602		(14,302	)
Adjusted EBITDA	$	61,041	$	53,573		$	149,912	$	129,138

(1)

The three months ended December 31, 2024, includes $22.3 million of expenses related to the pending Merger transaction, $4.7 million of currency losses on acquisition-related intercompany loans, a $0.3 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions, and $5.5 million of interest income. The three months ended December 31, 2023, includes $2.9 million of currency gains on acquisition-related intercompany loans, a $1.2 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions, and $5.2 million of interest income. The year ended December 31, 2024, includes $22.3 million of expenses related to the pending Merger transaction, $1.9 million of currency losses on acquisition-related intercompany loans, a $0.5 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions, and $23.0 million of interest income. The year ended December 31, 2023, includes a $5.7 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions, $3.2 million of currency gains on acquisition-related intercompany loans, and $16.9 million of interest income.

The following table provides a reconciliation of Free Cash Flow to net cash provided by operating activities, the most comparable GAAP financial measure:

	(Unaudited)
	Three Months Ended December 31,						Year Ended December 31,
(in thousands)	2024 ⁽¹⁾			2023			2024			2023
Net cash provided by operating activities	$	37,530		$	21,651		$	154,084		$	127,307
Capital expenditures		(4,347	)		(2,311	)		(14,086	)		(10,193	)
Free Cash Flow	$	33,183		$	19,340		$	139,998		$	117,114

(1)	Free Cash Flow for the year ended December 31, 2024, was adversely impacted by approximately $13.2 million of expenses paid related to the pending Merger transaction.

The following table provides a reconciliation of Non-GAAP gross profit to gross profit, the most comparable GAAP financial measure, and a comparison of Non-GAAP gross margin (Non-GAAP gross profit as a percentage of total revenue) to gross margin (gross profit as a percentage of total revenue), the most comparable GAAP financial measure:

	(Unaudited)
	Three Months Ended December 31,						Year Ended December 31,
(in thousands)	2024			2023			2024			2023
Gross profit	$	159,252		$	142,330		$	540,985		$	490,910
Stock-based compensation expense		2,167			2,303			8,397			10,095
Pending merger expenses		1,155			—			1,155			—
Non-GAAP gross profit	$	162,574		$	144,633		$	550,537		$	501,005

Gross profit margin		82.7	%		83.0	%		81.3	%		80.1	%
Non-GAAP gross margin		84.4	%		84.3	%		82.7	%		81.8	%

The following table provides a reconciliation of Non-GAAP operating expense to Total operating expense, the most comparable GAAP financial measure:

	(Unaudited)
	Three Months Ended December 31,						Year Ended December 31,
(in thousands)	2024			2023			2024			2023
Total operating expense	$	148,287		$	119,740		$	523,300		$	490,667
Stock-based compensation expense		(14,803	)		(16,855	)		(59,283	)		(75,486	)
Amortization		(8,709	)		(7,708	)		(33,022	)		(30,851	)
Loss on mark-to-market adjustment of contingent consideration		(287	)		(1,212	)		(476	)		(5,706	)
Pending merger expenses		(21,095	)		—			(21,095	)		—
Non-GAAP operating expense	$	103,393		$	93,965		$	409,424		$	378,624

The following table provides the calculation of non-GAAP diluted common shares and non-GAAP net income per share, diluted:

	(Unaudited)
	Three Months Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023
Numerator:
Non-GAAP net income	$	47,362	$	41,091	$	119,582	$	98,770
Interest expense related to convertible notes, net of tax		1,006		1,006		4,024		—
Numerator for non-GAAP diluted income per share	$	48,368	$	42,097	$	123,606	$	98,770
Denominator:
Weighted average shares outstanding, basic		85,289		81,760		84,085		80,596
Effect of dilutive shares		7,266		7,217		7,682		3,837
Non-GAAP diluted shares outstanding		92,555		88,977		91,767		84,433
Non-GAAP net income per share, diluted	$	0.52	$	0.47	$	1.35	$	1.17

The following table provides a reconciliation of Billings to revenue, the most comparable GAAP financial measure:

	(Unaudited)
	Three Months Ended December 31,						Year Ended December 31,
(in thousands)	2024			2023			2024			2023
Revenue	$	192,631		$	171,503		$	665,788		$	612,701
Ending deferred revenue		167,616			163,703			167,616			163,703
Beginning deferred revenue		(140,835	)		(138,933	)		(163,703	)		(144,460	)
Deferred revenue acquired		—			(149	)		(1,825	)		(149	)
Billings	$	219,412		$	196,124		$	667,876		$	631,795

The following table provides Software revenue, Total revenue, Billings and Adjusted EBITDA on a constant currency basis:

	(Unaudited)
	Three Months Ended December 31, 2024						Three Months Ended December 31, 2023		Increase/ (Decrease) %
(in thousands)	As reported		Currency changes		As adjusted for constant currency		As reported		As reported			As adjusted for constant currency
Software revenue	$	179.4	$	2.3	$	181.7	$	155.9		15.0	%		16.5	%
Total revenue	$	192.6	$	2.6	$	195.2	$	171.5		12.3	%		13.8	%
Billings	$	219.4	$	3.6	$	223.0	$	196.1		11.9	%		13.7	%
Adjusted EBITDA	$	61.0	$	1.3	$	62.3	$	53.6		13.9	%		16.2	%


	(Unaudited)
	Year Ended December 31, 2024						Year Ended December 31, 2023		Increase/ (Decrease) %
(in thousands)	As reported		Currency changes		As adjusted for constant currency		As reported		As reported			As adjusted for constant currency
Software revenue	$	611.9	$	6.8	$	618.7	$	550.0		11.3	%		12.5	%
Total revenue	$	665.8	$	7.2	$	673.0	$	612.7		8.7	%		9.8	%
Billings	$	667.9	$	8.1	$	676.0	$	631.8		5.7	%		7.0	%
Adjusted EBITDA	$	149.9	$	4.6	$	154.5	$	129.1		16.1	%		19.7	%

Source: GlobeNewswire (MIL-OSI)

RENO, Nev., Feb. 20, 2025 (GLOBE NEWSWIRE) — Employers Holdings, Inc. (the “Company”) (NYSE:EIG), a holding company with subsidiaries that are specialty providers of workers’ compensation insurance and services focused on small and mid-sized businesses engaged in low-to-medium hazard industries, today reported financial results for its fourth quarter ended December 31, 2024.

Full-Year 2024 Financial Highlights

(All comparisons versus full-year 2023)

Net income of $118.6 million ($4.71 per diluted share), versus $118.1 million ($4.45 per diluted share);
Adjusted net income of $94.0 million ($3.73 per diluted share), versus $101.7 million ($3.83 per diluted share);
Net investment income of $107.0 million, versus $106.5 million;
Gross premiums written of $776.3 million, versus $767.7 million;
Net premiums earned of $749.5 million, versus $721.9 million;
Net favorable prior year loss reserve development of $18.4 million, versus $44.9 million;
GAAP combined ratio of 97.9% (98.6% excluding the LPT), versus 95.0% (96.0% excluding the LPT);
Returned $71.7 million to stockholders through a combination of share repurchases and regular quarterly dividends;
Record number of ending policies in-force of 130,767, versus 126,409; and
Adjusted Book value per share of $50.71, up 9.8% including dividends declared.

Fourth Quarter 2024 Financial Highlights

(All comparisons versus fourth quarter 2023)

Net income of $28.3 million ($1.14 per diluted share), versus $45.6 million ($1.77 per diluted share);
Adjusted net income of $28.7 million ($1.15 per diluted share), versus $36.1 million ($1.40 per diluted share);
Net investment income of $26.7 million, versus $26.2 million;
Gross premiums written of $176.3 million, versus $178.2 million;
Net premiums earned of $190.2 million, versus $187.5 million;
Net favorable prior year loss reserve development of $9.1 million, versus $24.9 million;
GAAP combined ratio of 95.5% (including and excluding the LPT), versus 88.1% (88.8% excluding the LPT); and
Returned $17.5 million to stockholders through a combination of share repurchases and a regular quarterly dividend.

CEO Commentary

Chief Executive Officer Katherine Antonello commented: “We are pleased with our fourth quarter and full-year 2024 results. In fact, we closed the year with the highest levels of written and earned premium, ending in-force premium and policies and net investment income in the Company’s history.

We achieved solid growth in new and renewal premium in 2024, but that growth was offset by lower final audit premiums and endorsements. Our investment performance contributed nicely to our overall results and financial strength. In addition to the record level of net investment income we generated, we also recognized $24.1 million of after-tax unrealized gains from our common stocks and other investments.”

Ms. Antonello continued, “Our current accident year loss and LAE ratio on voluntary business was 64.0%, slightly above the loss and LAE ratio we maintained throughout 2023 and consistent with that of 2022. Our fourth quarter full reserve study led to the recognition of $8.6 million of net favorable prior year loss reserve development from our voluntary business. Those actions, coupled with our continual focus on our underwriting expenses, yielded an ex-LPT combined ratio of 95.5% for the fourth quarter, and 98.6% for the full year.

Our active capital management efforts throughout 2024, which consisted of $41.7 million of share repurchases and $30.0 million of regular quarterly dividends, contributed to year-over-year increases of 10.6% and 9.8% in our book value per share including the deferred gain and adjusted book value per share, respectively. Our focus on disciplined underwriting, prudent risk management, and strategic investments has positioned us strongly in the workers’ compensation insurance market, which is evidenced by the recent upgrade to our insurance companies’ AM Best Financial Strength Rating to “A” (Excellent).

Beyond our financial results, we continue to offer direct-to-consumer policies through the Cerity brand but, with the Cerity integration that was undertaken a year ago, we now do so without any meaningful fixed underwriting expenses. Further, our continued focus for 2025 will be on further appetite expansion, increased self-service options for policyholders, agents and injured workers and greater operational efficiencies.

Finally, we are saddened by the California wildfires and the impact on the Los Angeles area community and small businesses. Our thoughts are with all of those who have lost their homes, businesses, and livelihoods, and we are working with our partners to provide immediate and long-term assistance. As a monoline workers’ compensation insurance provider, these catastrophic events would not typically have a significant impact on our results, nor our long-term trends. We have analyzed the loss exposure and experience in the affected fire zones and have determined that approximately 1% of our in-force policies, representing less than 1% of our payroll exposure, are within the impacted areas and we are not currently experiencing any significant impacts from these devastating fires.”

Summary of Consolidated Fourth Quarter 2024 Results

(All comparisons versus fourth quarter 2023, unless otherwise noted)

Gross premiums written were $176.3 million, a decrease of 1%. The slight decrease was due to higher new and renewal business writings being offset by lower final audit premiums and endorsements. Net earned premiums were $190.2 million, an increase of 1%.

Losses and loss adjustment expenses were $113.2 million, an increase of 22%. The increase was due to higher earned premium, lower net favorable prior year loss reserve development and a slightly higher current accident year loss and loss adjustment expense provision. The Company recognized $9.1 million of favorable prior year loss reserve development versus $24.9 million. The Company’s loss and loss adjustment expense ratio was 59.5% for the quarter (including and excluding the LPT) versus 49.5% (50.2% excluding the LPT).

Total underwriting expenses (consisting of commissions, other underwriting and general and administrative expenses) were $68.6 million, a decrease of 5%. The decrease was primarily related to lower information technology expenses resulting from the Cerity integration plan that was executed in the fourth quarter of 2023, lower compensation-related expenses and a non-recurring commission adjustment, partially offset by higher bad debt expense. The Company’s total underwriting expense ratio was 36.0% versus 38.6%.

Within the 2024 periods presented herein, the Company refined its presentation of certain expenses associated with its involuntary premium. This revision, which was immaterial, had the effect of reducing both its fourth quarter and full year 2024 commission expense ratios by approximately 0.3 percentage points, and increasing its respective underwriting and general and administrative expense ratios by the same amount. This revision had no net effect on the Company’s total underwriting expenses or net income.

Net investment income was $26.7 million, an increase of 2%. The increase was due to higher investment yields, partially offset by lower invested balances of fixed maturity securities, short-term investments and cash and cash equivalents, as measured by amortized cost.

Net realized and unrealized gains (losses) on investments reflected on the income statement were $(0.4) million versus $12.1 million.

Interest and financing expenses were $0.1 million versus $0.6 million. The decrease resulted from the unwinding of our former Federal Home Loan Bank leveraged investment strategy in the fourth quarter of 2023.

Other expenses of $1.6 million recorded in the fourth quarter of 2023 consisted of a non-recurring charge in connection with previously capitalized cloud computing costs.

Federal and state income tax expense was $6.4 million (18.4% effective rate) versus $12.6 million (21.6% effective rate). The effective rates in each period reflect applicable income tax benefits and exclusions associated with tax-advantaged investment income, LPT adjustments, pre-privatization loss and loss adjustment expense reserve adjustments and deferred gain amortization.

The Company’s book value per share including the deferred gain of $47.35 increased by 10.6% during 2024 and its adjusted book value per share of $50.71 increased by 9.8% during 2024, each including dividends declared. These measures were favorably impacted by $24.1 million of net after tax unrealized gains arising from equity securities and other investments.

Share Repurchases and First Quarter 2025 Dividend Declaration

During the fourth quarter of 2024, the Company repurchased 193,857 shares of its common stock at an average price of $51.20 per share. During the period from January 1, 2025 through February 19, 2025, the Company repurchased a further 222,438 shares of its common stock at an average price of $49.38 per share. The Company currently has a remaining share repurchase authorization of $18.7 million.

On February 19, 2025, the Board of Directors declared a first quarter dividend of $0.30 per share. The dividend is payable on March 19, 2025 to stockholders of record as of March 5, 2025.

Earnings Conference Call and Webcast

The Company will host a conference call on Friday, February 21, 2025 at 11:00 a.m. Eastern Standard Time / 8:00 a.m. Pacific Standard Time.

To participate in the live conference call, you must first register here. Once registered you will receive dial-in numbers and a unique PIN number.

The webcast will be accessible on the Company’s website at www.employers.com through the “Investors” link.

Reconciliation of Non-GAAP Financial Measures to GAAP

Within this earnings release we present various financial measures, some of which are “non-GAAP financial measures” as defined in Regulation G pursuant to Section 401 of the Sarbanes – Oxley Act of 2002. A description of these non-GAAP financial measures, as well as a reconciliation of such non-GAAP measures to our most directly comparable GAAP financial measures is included in the attached Financial Supplement. Management believes that these non-GAAP measures are important to the Company’s investors, analysts and other interested parties who benefit from having an objective and consistent basis for comparison with other companies within our industry. Management further believes that these measures are more relevant than comparable GAAP measures in evaluating our financial performance.

The information in this press release should be read in conjunction with the Financial Supplement that is attached to this press release and available on our website.

Forward-Looking Statements

In this press release, the Company and its management discuss and make statements based on currently available information regarding their intentions, beliefs, current expectations, and projections of, among other things, the Company’s future performance, economic or market conditions, including current or future levels of inflation, changes in interest rates, labor market expectations, catastrophic events or geo-political conditions, legislative or regulatory actions or court decisions, business growth, retention rates, loss costs, claim trends and the impact of key business initiatives, future technologies and planned investments. Certain of these statements may constitute “forward-looking” statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and are often identified by words such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “target,” “project,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek,” “likely,” or “continue,” or other comparable terminology and their negatives. The Company and its management caution investors that such forward-looking statements are not guarantees of future performance. Risks and uncertainties are inherent in the Company’s future performance. Factors that could cause the Company’s actual results to differ materially from those indicated by such forward-looking statements include, among other things, those discussed or identified from time to time in the Company’s public filings with the Securities and Exchange Commission (SEC), including the risks detailed in the Company’s Quarterly Reports on Form 10-Q and the Company’s Annual Reports on Form 10-K. Except as required by applicable securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Filings with the SEC

The Company’s filings with the SEC and its quarterly investor presentations can be accessed through the “Investors” link on the Company’s website, www.employers.com. The Company’s filings with the SEC can also be accessed through the SEC’s EDGAR Database at www.sec.gov (EDGAR CIK No. 0001379041).

About Employers Holdings, Inc.

Employers Holdings, Inc. (NYSE: EIG), is a holding company with subsidiaries that are specialty providers of workers’ compensation insurance and services (collectively “EMPLOYERS®”) focused on small and mid-sized businesses engaged in low-to-medium hazard industries. EMPLOYERS leverages over a century of experience to deliver comprehensive coverage solutions that meet the unique needs of its customers. Drawing from its long history and extensive knowledge, EMPLOYERS empowers businesses by protecting their most valuable asset – their employees – through exceptional claims management, loss control, and risk management services, creating safer work environments.

EMPLOYERS is also proud to offer Cerity®, which is focused on providing digital-first, direct-to-consumer workers’ compensation insurance solutions with fast, and affordable coverage options through a user-friendly online platform.

EMPLOYERS operates throughout the United States, apart from four states that are served exclusively by their state funds. Insurance is offered through Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance Company, Employers Assurance Company and Cerity Insurance Company, all rated A (Excellent) by AM Best. Not all companies do business in all jurisdictions. EIG Services, Inc., and Cerity Services, Inc., are subsidiaries of Employers Holdings, Inc. EMPLOYERS® is a registered trademark of EIG Services, Inc., and Cerity® is a registered trademark of Cerity Services, Inc. For more information, please visit www.employers.com and www.cerity.com.

Contact Information

Mike Paquette (775) 327-2562 or mpaquette@employers.com

EMPLOYERS HOLDINGS, INC.
Table of Contents

Page

Consolidated Financial Highlights
Summary Consolidated Balance Sheets
Summary Consolidated Income Statements
Return on Equity
Combined Ratios
Roll-forward of Unpaid Losses and LAE
Consolidated Investment Portfolio
Book Value Per Share
Earnings Per Share
Non-GAAP Financial Measures

EMPLOYERS HOLDINGS, INC. Consolidated Financial Highlights (unaudited) $ in millions, except per share amounts

		Three Months Ended								Years Ended
		December 31,								December 31,
		2024			2023		% change			2024			2023		% change
*Selected financial highlights:*
Gross premiums written	$	176.3		$	178.2		(1	)%	$	776.3		$	767.7		1	%
Net premiums written		174.7			176.4		(1	)		769.5			760.6		1
Net premiums earned		190.2			187.5		1			749.5			721.9		4
Net investment income		26.7			26.2		2			107.0			106.5		—
Net income excluding LPT ⁽¹⁾		28.4			44.4		(36	)		113.0			110.9		2
Adjusted net income ⁽¹⁾		28.7			36.1		(20	)		94.0			101.7		(8	)
Net income before income taxes		34.7			58.2		(40	)		146.7			148.4		(1	)
Net income		28.3			45.6		(38	)		118.6			118.1		—
Comprehensive income (loss)		(8.9	)		116.2		(108	)		122.1			171.0		(29	)
Total assets										3,541.3			3,550.4		—
Stockholders’ equity										1,068.7			1,013.9		5
Stockholders’ equity including the Deferred Gain ⁽²⁾										1,162.7			1,113.1		4
Adjusted stockholders’ equity ⁽²⁾										1,245.2			1,199.1		4
Annualized adjusted return on stockholders’ equity ⁽³⁾		9.3	%		12.2	%	(24	)%		7.7	%		8.5	%	(9	)
*Amounts per share:*
Cash dividends declared per share	$	0.30		$	0.28		7	%	$	1.18		$	1.10		7	%
Earnings per diluted share ⁽⁴⁾		1.14			1.77		(36	)		4.71			4.45		6
Earnings per diluted share excluding LPT ⁽⁴⁾					1.72		(34	)		4.49			4.18		7
Adjusted earnings per diluted share⁽⁴⁾		1.14			1.40		(18	)		3.73			3.83		(3	)
Book value per share ⁽²⁾		1.15								43.52			39.96		9
Book value per share including the Deferred Gain ⁽²⁾										47.35			43.88		8
Adjusted book value per share ⁽²⁾										50.71			47.26		7
Combined ratio excluding LPT: ⁽⁵⁾
Loss and loss adjustment expense ratio:
Current year		64.2	%		63.5	%				64.1	%		63.4	%
Prior Year		(4.7	)		(13.3	)				(2.5	)		(6.2	)
Loss and loss adjustment expense ratio		59.5	%		50.2	%				61.6	%		57.2	%
Commission expense ratio		12.8			14.0					13.5			13.9
Underwriting and general and administrative expense ratio		23.2			24.6					23.5			24.9
Combined ratio excluding LPT		95.5	%		88.8	%				98.6	%		96.0	%

(1) See Page 5 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. (2) See Page 10 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. (3) See Page 6 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. (4) See Page 11 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures. (5) See Page 7 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC.
Summary Consolidated Balance Sheets (unaudited)
$ in millions, except per share amounts
	December 31, 2024				December 31, 2023
ASSETS
Available for sale:
Investments, cash and cash equivalents	$	2,532.4		$	2,504.7
Accrued investment income		15.7			16.3
Premiums receivable, net		361.3			359.4
Reinsurance recoverable, net of allowance, on paid and unpaid losses and LAE		417.8			433.8
Deferred policy acquisition costs		59.6			55.6
Deferred income taxes, net		38.3			43.4
Contingent commission receivable—LPT Agreement		—			14.2
Other assets		116.2			123.0
Total assets	$	3,541.3		$	3,550.4

LIABILITIES
Unpaid losses and LAE	$	1,808.2		$	1,884.5
Unearned premiums		402.2			379.7
Commissions and premium taxes payable		65.8			66.0
Deferred Gain		94.0			99.2
Other liabilities		102.4			107.1
Total liabilities	$	2,472.6		$	2,536.5

STOCKHOLDERS’ EQUITY
Common stock and additional paid-in capital	$	424.8		$	420.4
Retained earnings		1,472.9			1,384.3
Accumulated other comprehensive loss, net		(82.5	)		(86.0	)
Treasury stock, at cost		(746.5	)		(704.8	)
Total stockholders’ equity		1,068.7			1,013.9
Total liabilities and stockholders’ equity	$	3,541.3		$	3,550.4

Stockholders’ equity including the Deferred Gain ⁽¹⁾	$	1,162.7		$	1,113.1
Adjusted stockholders’ equity ⁽¹⁾		1,245.2			1,199.1
Book value per share ⁽¹⁾	$	43.52		$	39.96
Book value per share including the Deferred Gain ⁽¹⁾		47.35			43.88
Adjusted book value per share ⁽¹⁾		50.71			47.26

(1) See Page 10 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC. Summary Consolidated Income Statements (unaudited) $ in millions

	Three Months Ended						Years Ended
	December 31,						December 31,
		2024			2023			2024			2023
Revenues:
Net premiums earned	$	190.2		$	187.5		$	749.5		$	721.9
Net investment income		26.7			26.2			107.0			106.5
Net realized and unrealized (losses) gains on investments ⁽¹⁾		(0.4	)		12.1			24.1			22.7
Other income (loss)		0.1			(0.1	)		0.1			(0.2	)
Total revenues		216.6			225.7			880.7			850.9
Expenses:
Losses and LAE incurred		113.2			92.9			456.2			405.7
Commission expense		24.4			26.3			101.2			100.0
Underwriting and general and administrative expenses		44.2			46.1			176.5			180.0
Interest and financing expenses		0.1			0.6			0.1			5.8
Other expenses		—			1.6			—			11.0
Total expenses		(181.9	)		(167.5	)		(734.0	)		(702.5	)
Net income before income taxes		34.7			58.2			146.7			148.4
Income tax expense		(6.4	)		(12.6	)		(28.1	)		(30.3	)
Net income		28.3			45.6			118.6			118.1
Unrealized AFS investment (losses) gains arising during the period, net of tax		(39.2	)		66.6			(3.5	)		46.6
Reclassification adjustment for realized AFS investment gains in net income, net of tax		2.0			4.0			7.0			6.3
Total Comprehensive income	$	(8.9	)	$	116.2		$	122.1		$	171.0
Net income	$	28.3		$	45.6		$	118.6		$	118.1
Amortization of the Deferred Gain – losses		(1.6	)		(1.5	)		(6.1	)		(6.3	)
Amortization of the Deferred Gain – contingent commission		—			(0.3	)		(0.8	)		(1.5	)
LPT reserve adjustment		1.7			0.9			1.7			0.9
LPT contingent commission adjustments		—			(0.3	)		(0.4	)		(0.3	)
Net income excluding LPT Agreement ⁽²⁾	$	28.4		$	44.4		$	113.0		$	110.9
Net realized and unrealized losses (gains) on investments		0.4			(12.1	)		(24.1	)		(22.7	)
Lease termination and asset impairment charges		—			1.6			—			11.0
Income tax (benefit) expense related to items excluded from Net income		(0.1	)		2.2			5.1			2.5
Adjusted net income ⁽²⁾	$	28.7		$	36.1		$	94.0		$	101.7

(1) Includes unrealized gains on equity securities and other invested assets of $2.4 million and $17.8 million for the three months ended December 31, 2024 and 2023, respectively, and $30.5 million and $36.2 million for the year ended December 31, 2024 and 2023, respectively (2) See Page 12 regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC. Return on Equity (unaudited) $ in millions

		Three Months Ended						Years Ended
		December 31,						December 31,
			2024			2023			2024			2023

Net income	A	$	28.3		$	45.6		$	118.6		$	118.1
Impact of the LPT Agreement			0.1			(1.2	)		(5.6	)		(7.2	)
Net realized and unrealized losses (gains) on investments			0.4			(12.1	)		(24.1	)		(22.7	)
Lease termination and asset impairment charges			—			1.6			—			11.0
Income tax (benefit) expense related to items excluded from Net income			(0.1	)		2.2			5.1			2.5
Adjusted net income ⁽¹⁾	B	$	28.7		$	36.1		$	94.0		$	101.7

Stockholders’ equity – end of period		$	1,068.7		$	1,013.9		$	1,068.7		$	1,013.9
Stockholders’ equity – beginning of period			1,093.4			919.0			1,013.9			944.2
Average stockholders’ equity	C	$	1,081.1		$	966.5		$	1,041.3		$	979.1

Stockholders’ equity – end of period		$	1,068.7		$	1,013.9		$	1,068.7		$	1,013.9
Deferred Gain – end of period			94.0			99.2			94.0			99.2
Accumulated other comprehensive loss, before taxes – end of period			104.5			108.9			104.5			108.9
Income tax related to accumulated other comprehensive loss – end of period			(22.0	)		(22.9	)		(22.0	)		(22.9	)
Adjusted stockholders’ equity – end of period			1,245.2			1,199.1			1,245.2			1,199.1
Adjusted stockholders’ equity – beginning of period			1,232.5			1,175.8			1,199.1			1,189.2
Average adjusted stockholders’ equity ⁽¹⁾	D	$	1,238.9		$	1,187.5		$	1,222.2		$	1,194.2

Return on stockholders’ equity	A / C		2.6	%		4.7	%		11.4	%		12.1	%
Annualized return on stockholders’ equity			10.5			18.9

Adjusted return on stockholders’ equity ⁽¹⁾	B / D		2.3			3.0			7.7			8.5
Annualized adjusted return on stockholders’ equity ⁽¹⁾			9.3			12.2

(1) See Page 12 for information regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC. Combined Ratios (unaudited) $ in millions, except per share amounts

		Three Months Ended						Years Ended
		December 31,						December 31,
			2024			2023			2024			2023
Net premiums earned	A	$	190.2		$	187.5		$	749.5		$	721.9
Losses and LAE incurred	B		113.2			92.9			456.2			405.7
Amortization of deferred reinsurance gain – losses			1.6			1.5			6.1			6.3
Amortization of deferred reinsurance gain – contingent commission			—			0.3			0.8			1.5
LPT reserve adjustment			(1.7	)		(0.9	)		(1.7	)		(0.9	)
LPT contingent commission adjustments			—			0.3			0.4			0.3
Losses and LAE excluding LPT ⁽¹⁾	C	$	113.1		$	94.1		$	461.8		$	412.9
Prior year loss reserve development			(9.1	)		(24.9	)		(18.4	)		(44.9	)
Losses and LAE excluding LPT – current accident year	D	$	122.2		$	119.0		$	480.2		$	457.8
Commission expense	E	$	24.4		$	26.3		$	101.2		$	100.0
Underwriting and general and administrative expense	F	$	44.2		$	46.1		$	176.5		$	180.0
GAAP combined ratio:
Loss and LAE ratio	B/A		59.5	%		49.5	%		60.9	%		56.2	%
Commission expense ratio	E/A		12.8			14.0			13.5			13.9
Underwriting and general and administrative expense ratio	F/A		23.2			24.6			23.5			24.9
GAAP combined ratio			95.5	%		88.1	%		97.9	%		95.0	%
Combined ratio excluding LPT: ⁽¹⁾
Loss and LAE ratio excluding LPT	C/A		59.5	%		50.2	%		61.6	%		57.2	%
Commission expense ratio	E/A		12.8			14.0			13.5			13.9
Underwriting and general and administrative expense ratio	F/A		23.2			24.6			23.5			24.9
Combined ratio excluding LPT			95.5	%		88.8	%		98.6	%		96.0	%
Combined ratio excluding LPT: current accident year: ⁽¹⁾
Loss and LAE ratio excluding LPT	D/A		64.2	%		63.5	%		64.1	%		63.4	%
Commission expense ratio	E/A		12.8			14.0			13.5			13.9
Underwriting and general and administrative expenses ratio	F/A		23.2			24.6			23.5			24.9
Combined ratio excluding LPT: current accident year			100.2	%		102.1	%		101.1	%		102.2	%

(1) See Page 12 for information regarding our use of Non-GAAP Financial Measures.

EMPLOYERS HOLDINGS, INC. Roll-forward of Unpaid Losses and LAE (unaudited) $ in millions

	Three Months Ended						Years Ended
	December 31,						December 31,
		2024			2023			2024			2023

Unpaid losses and LAE at beginning of period	$	1,836.5		$	1,913.4		$	1,884.5		$	1,960.7
Less reinsurance recoverable on unpaid losses and LAE		413.1			426.6			428.4			445.4
Net unpaid losses and LAE at beginning of period		1,423.4			1,486.8			1,456.1			1,515.3
Losses and LAE incurred:
Current year		122.2			119.1			480.2			457.8
Prior years – voluntary business		(8.6	)		(24.6	)		(17.9	)		(44.6		)
Prior years – involuntary business		(0.5	)		(0.3	)		(0.5	)		(0.3		)
Total losses incurred		113.1			94.2			461.8			412.9
Losses and LAE paid:
Current year		57.9			47.6			127.1			111.7
Prior years		82.8			77.3			395.0			360.4
Total paid losses		140.7			124.9			522.1			472.1
Net unpaid losses and LAE at end of period		1,395.8			1,456.1			1,395.8			1,456.1
Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE		412.4			428.4			412.4			428.4
Unpaid losses and LAE at end of period	$	1,808.2		$	1,884.5		$	1,808.2		$		1,884.5

Total losses and LAE shown in the above table exclude amortization of the Deferred Gain, LPT Reserve Adjustments, and LPT Contingent Commission Adjustments, which totaled $(0.1) million and $1.2 million for the three months ended December 31, 2024 and 2023, respectively, and $5.6 million and $7.2 million for the year ended December 31, 2024 and 2023, respectively.

EMPLOYERS HOLDINGS, INC. Consolidated Investment Portfolio (unaudited) $ in millions

	December 31, 2024										December 31, 2023
Investment Positions:		Cost or Amortized Cost ⁽¹⁾		Net Unrealized Gain (Loss)			Fair Value	%				Fair Value	%
Fixed maturity securities	$	2,203.1	$	(104.6)		$	2,097.4	83	%		$	1,936.3	77	%
Equity securities		150.7		109.1			259.8	10				217.2	9
Other invested assets		90.9		15.7			106.6	4				91.5	4
Short-term investments		0.1		—			0.1	—				33.1	1
Cash and cash equivalents		68.3		—			68.3	3				226.4	9
Restricted cash and cash equivalents		0.2		—			0.2	—				0.2	—
Total investments and cash	$	2,513.3	$	20.2		$	2,532.4	100	%		$	2,504.7	100	%

Breakout of Fixed Maturity Securities:
U.S. Treasuries and Agencies	$	61.4	$	(2.1	)	$	59.3	3	%		$	60.5	3	%
States and Municipalities		163.0		(3.7	)		159.3	8				210.2	11
Corporate Securities		849.2		(46.0	)		803.0	38				895.8	46
Mortgage-Backed Securities		733.1		(47.9	)		684.9	33				426.0	22
Asset-Backed Securities		216.0		(2.0	)		214.0	10				128.0	7
Collateralized loan obligations		35.5		(0.2	)		35.3	2				91.5	5
Bank loans and other		144.9		(2.7	)		141.6	7				124.3	6
Total fixed maturity securities	$	2,203.1	$	(104.6	)	$	2,097.4	100	%		$	1,936.3	100	%
Weighted average ending book yield on fixed income securities, cash, and cash equivalents							4.5		%			4.3		%
Average credit quality (S&P)						A+				A
Duration							4.5					4.5

(1) Amortized cost excludes an allowance for current expected credit losses (CECL) of $1.1 million

EMPLOYERS HOLDINGS, INC. Book Value Per Share (unaudited) $ in millions, except per share amounts

			December 31, 2024			December 31, 2023
Numerators:
Stockholders’ equity	A	$	1,068.7		$	1,013.9
Deferred Gain			94.0			99.2
Stockholders’ equity including the Deferred Gain ⁽¹⁾	B		1,162.7			1,113.1
Accumulated other comprehensive loss, before taxes			104.5			108.9
Income taxes related to accumulated other comprehensive loss, before taxes			(22.0	)		(22.9	)
Adjusted stockholders’ equity ⁽¹⁾	C	$	1,245.2		$	1,199.1

Denominator (shares outstanding)	D		24,556,706			25,369,753

Book value per share ⁽¹⁾	A / D	$	43.52		$	39.96
Book value per share including the Deferred Gain ⁽¹⁾	B / D		47.35			43.88
Adjusted book value per share ⁽¹⁾	C / D		50.71			47.26

Cash dividends declared per share		$	1.18		$	1.10

YTD Change in: ⁽²⁾
Book value per share			11.9	%		18.1	%
Book value per share including the Deferred Gain			10.6			16.3
Adjusted book value per share			9.8			10.5

(1) See Page 12 for information regarding our use of Non-GAAP Financial Measures. (2) Reflects the change per share after taking into account dividends declared in the period.

EMPLOYERS HOLDINGS, INC. Earnings Per Share (unaudited) $ in millions, except per share amounts

		Three Months Ended						Years Ended
		December 31,						December 31,
			2024			2023			2024			2023
Numerators:
Net income	A	$	28.3		$	45.6		$	118.6		$	118.1
Impact of the LPT Agreement			0.1			(1.2	)		(5.6	)		(7.2	)
Net income excluding LPT ⁽¹⁾	B	$	28.4		$	44.4		$	113.0		$	110.9
Net realized and unrealized (gains) losses on investments			0.4			(12.1	)		(24.1	)		(22.7	)
Lease termination and asset impairment charges			—			1.6			—			11.0
Income tax (benefit) expense related to items excluded from Net income			(0.1	)		2.2			5.1			2.5
Adjusted net income ⁽¹⁾	C	$	28.7		$	36.1		$	94.0		$	101.7

Denominators:
Average common shares outstanding (basic)	D		24,725,425			25,645,821			25,050,605			26,368,801
Average common shares outstanding (diluted)	E		24,902,459			25,801,380			25,194,814			26,523,651

Earnings per share:
Basic	A / D	$	1.14		$	1.78		$	4.73		$	4.48
Diluted	A / E		1.14			1.77			4.71			4.45

Earnings per share excluding LPT: ⁽¹⁾
Basic	B / D		1.15			1.73			4.51			4.21
Diluted	B / E		1.14			1.72			4.49			4.18

Adjusted earnings per share: ⁽¹⁾
Basic	C / D	$	1.16		$	1.41		$	3.75		$	3.86
Diluted	C / E		1.15			1.40			3.73			3.83

(1) See Page 12 for information regarding our use of Non-GAAP Financial Measures.

Non-GAAP Financial Measures

Within this earnings release we present the following measures, each of which are “non-GAAP financial measures.” A reconciliation of these measures to the Company’s most directly comparable GAAP financial measures is included herein. Management believes that these non-GAAP measures are important to the Company’s investors, analysts and other interested parties who benefit from having an objective and consistent basis for comparison with other companies within our industry. Management further believes that these measures are more relevant than comparable GAAP measures in evaluating our financial performance.

The LPT Agreement is a non-recurring transaction that no longer provides any ongoing cash benefits to the Company. Management believes that providing non-GAAP measures that exclude the effects of the LPT Agreement (amortization of deferred reinsurance gain, adjustments to LPT Agreement ceded reserves and adjustments to the contingent commission receivable) is useful in providing investors, analysts and other interested parties a meaningful understanding of the Company’s ongoing underwriting performance.

Deferred reinsurance gain (Deferred Gain) reflects the unamortized gain from the LPT Agreement. This gain has been deferred and is being amortized using the recovery method, whereby the amortization is determined by the proportion of actual reinsurance recoveries to total estimated recoveries, except for the contingent profit commission, which was amortized through June 30, 2024, the date of its final determination. Amortization is reflected in losses and LAE incurred.

Adjusted net income (see Page 5 for calculations) is net income excluding the effects of the LPT Agreement, and net realized and unrealized gains and losses on investments (net of tax), and any miscellaneous non-recurring transactions (net of tax). Management believes that providing this non-GAAP measures is helpful to investors, analysts and other interested parties in identifying trends in the Company’s operating performance because such items have limited significance to its ongoing operations or can be impacted by both discretionary and other economic factors and may not represent operating trends.

Stockholders’ equity including the Deferred Gain (see Page 10 for calculations) is stockholders’ equity including the Deferred Gain. Management believes that providing this non-GAAP measure is useful in providing investors, analysts and other interested parties a meaningful measure of the Company’s total underwriting capital.

Adjusted stockholders’ equity (see Page 10 for calculations) is stockholders’ equity including the Deferred Gain, less accumulated other comprehensive income (net of tax). Management believes that providing this non-GAAP measure is useful to investors, analysts and other interested parties since it serves as the denominator to the Company’s adjusted return on stockholders’ equity metric.

Return on stockholders’ equity and Adjusted return on stockholders’ equity (see Page 6 for calculations). Management believes that these profitability measures are widely used by our investors, analysts and other interested parties.

Book value per share, Book value per share including the Deferred Gain, and Adjusted book value per share (see Page 10 for calculations). Management believes that these valuation measures are widely used by our investors, analysts and other interested parties.

Net income excluding LPT (see Page 5 for calculations). Management believes that these performance and underwriting measures are widely used by our investors, analysts and other interested parties.

Branislav Cerven/Shutterstock

Source: The Conversation (Au and NZ) – By Ali Soltani, Mid-Career Researcher, College of Medicine and Public Health, Flinders University

In the past 12 months, more than 1,300 people have died on Australia’s roads. In January alone, there were 114 road deaths in Australia – roughly 20% more than the average for that month over the previous five years.

Our new study projects these tragedies are set to continue over the next 25 years, despite a commitment by Australian governments to achieving zero deaths on the nation’s roads by 2050.

Published in the journal Injury, our study uses a modelling tool to forecast the number of road fatalities in 2030, 2040 and 2050. Importantly, it also identifies the people and regions at higher risks, which provides an opportunity for taking a more nuanced and targeted approach to road safety.

Improved vehicle safety technology, stricter traffic laws and public awareness campaigns have led to a significant drop in the number of road deaths over the past several decades in Australia. But tragically, the number of people dying on Australia’s roads is still high.

The data reveal some clear trends. For example, weekdays see fewer fatalities, likely due to routine commuting and lower-risk behaviours. On the other hand, weekends, particularly Saturdays, experience spikes linked to alcohol consumption and more social travel.

December emerges as the deadliest month. This is likely driven by holiday travel surges, with secondary peaks in March and October tied to school holidays and seasonal weather changes that affect road conditions.

Geographic disparities further complicate the picture. Urban centres in New South Wales and Victoria such as Sydney and Melbourne account for 35% to 40% of fatalities, in part because of dense traffic volumes, complex intersections and pedestrian-heavy zones.

In contrast, rural and remote areas, though less congested, have more severe road accidents because of inadequate road infrastructure and higher speed limits. For example, the Northern Territory, with vast stretches of high-speed highways, records the highest fatality rate, while the Australian Capital Territory, with its urban planning emphasis on safety, reports the lowest.

Speed zones of 51–80 km/h are particularly lethal for vulnerable road users such as pedestrians, cyclists and motorcyclists. This underscores the crucial role of speed management in urban and rural areas alike.

Demographic risks also remain entrenched. For example, men constitute more than 70% of fatalities – in part because they are more likely to engage in risky behaviour such as speeding and drunk driving. Young drivers (17–25 years) and middle-aged adults (40–64 years) are also over-represented due to a combination of inexperience, overconfidence and high mileage.

In good news, child fatalities (0–16 years) have sharply declined. This reflects the success of targeted measures like child seat laws and school zone safety campaigns.

High speed limits increase the risk of severe road accidents.
BJP7images/Shutterstock

To forecast these trends over the next 25 years, our new study used a modelling tool called Prophet developed by tech company Meta.

We fed 35 years of road data – from 1989 to 2024 – into the model. This data came from Australia’s Bureau of Infrastructure, Transport and Regional Economics. It incorporated variables such as road user type, age, gender, speed limits and geographic location.

To refine predictions, we also incorporated public holidays such as Christmas and Easter.

Prophet outperformed other models we tested, including SARIMA and ETS. It did a better job at modelling past changes in road safety. And it especially excelled at handling non-linear trends, multiple seasonal patterns (daily, weekly, yearly) and the effects of holiday periods.

The findings of the study are cause for some cautious optimism.

Overall, by 2050 fatalities are expected to decline. But Australia’s ambitious zero fatality target by the middle of the century will remain unmet.

The modelling indicates annual male fatalities will drop from 855 in 2030 to 798 in 2050, while female fatalities will plummet from 229 to 92.

There will also be a drop in the number of child fatalities – from 37 in 2030 to just two in 2050. But the model shows a troubling rise of the number of older drivers (over 65) dying on Australia’s roads – from 273 in 2030 to 301 in 2050. This reflects Australia’s ageing population, with more people expected to have both reduced mobility and reduced reflexes.

Motorcyclist fatalities buck the overall trend, rising from 229 in 2030 to 253 in 2050. This signals urgent needs for dedicated lanes and better rider education.

Regionally, Queensland and the Northern Territory lag due to rural road risks. Urban areas with speed limits lower than 80 km/h show steadier declines.

Motorcyclist fatalities are expected to rise from 229 in 2030 to 253 in 2050.
FotoDax/Shutterstock

Based on these findings, our study provides several recommendations to mitigate the risk of death on Australia’s roads.

Speed management: enforce dynamic speed limits in high-risk zones such as school areas and holiday corridors, and expand 80 km/h zones on rural highways.

Targeted campaigns: launch gender-specific safety initiatives for men (for example, anti-speeding programs) and age-focused interventions, such as mandatory refresher courses for drivers over 65.

Infrastructure upgrades: invest in rural road safety such as median barriers and better signage, as well as dedicated cyclist pathways.

Technology integration: accelerate the adoption of autonomous vehicles to reduce crashes caused by human error and risky behaviours, and pilot artificial intelligence-driven traffic systems for real-time hazard detection.

Expand public transport: subsidise off-peak travel and rural transit networks to reduce how much people – particularly high-risk groups – depend on car travel.

Better enforcement: strengthen weekend and nighttime policing of roads and deploy more mobile speed cameras during peak holiday periods.

By following these recommendations, Australia can move closer to its vision of safer roads. Our findings underscore that sustained progress demands not only rigorous policy, but also community engagement.

Ali Soltani has received funding from the Flinders Foundation, the National Road Safety Action Grant (NRSAGP), and the Lifetime Support Authority Grant in 2024. He is also a FIAS (French Institute of Advanced Studies) Fellow, Le Studium, under the Marie Curie Actions of the European Commission (2024–25). Additionally, he has affiliations with the Planning Institute of Australia, SA Branch, and has received multiple research and travel grants.

– ref. Australia wants zero road deaths by 2050 – but there’s a major hurdle – https://theconversation.com/australia-wants-zero-road-deaths-by-2050-but-theres-a-major-hurdle-250371

MIL OSI Analysis – EveningReport.nz –

Source: GlobeNewswire (MIL-OSI)

NORCROSS, Ga., Feb. 20, 2025 (GLOBE NEWSWIRE) — CoreCard Corporation (NYSE: CCRD) (“CoreCard” or “the Company”), the leading provider of innovative credit technology solutions and processing services to the financial technology and services market, announced today its financial results for the quarter and full year ended December 31, 2024.

“Overall revenue of $14.8 million in the fourth quarter was above our expectations due to unexpected license revenue in the quarter and in-line with our expectations excluding the license revenue. Services revenue during the quarter was in-line with our expectations, reflecting continued year-over-year growth in processing and maintenance revenue of 11%. Additionally, our full year processing and maintenance revenue grew by 7% compared to full year 2023,” said Leland Strange, CEO of CoreCard Corporation. “We continue to invest in our platform and processing capabilities, which are showing encouraging results. CoreCard is a best-in-class platform that is extremely well positioned to capture the growing demand for next-generation card management platforms by large and complex modern card issuers.”

“For the first quarter of 2025, we expect total revenue between $14.4 and $15.0 million and earnings per share between $0.15 and $0.19. For fiscal year 2025, we reaffirm the guidance set forth last quarter and continue to expect total revenue between $60 million and $64 million and earnings per share between $0.88 and $0.94. We expect full-year 2025 revenue growth, excluding our largest customer, to be 30-40%,” said Matt White, CFO of CoreCard Corporation.

Financial Highlights for the three and twelve months ended December 31, 2024

Total revenue in the three-month period ended December 31, 2024, was $14.8 million which represents an increase of 22% compared to the comparable period in 2023. Revenue of $57.4 million for full year 2024 was up 2% from full year 2023.

In the following table, revenue is disaggregated by type of revenue for the three and twelve months ended December 31, 2024 and 2023:

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
(in thousands)	2024		2023		2024		2023
License	$	1,420	$	—	$	2,840	$	1,794
Professional services		6,210		6,111		26,015		28,237
Processing and maintenance		6,122		5,506		24,034		22,439
Third party		1,071		540		4,510		3,534
Total	$	14,823	$	12,157	$	57,399	$	56,004

Income from operations was $2.1 million for the fourth quarter of 2024 compared to income from operations of $0.4 million for the comparable period in 2023. Full year 2024 income from operations was $6.5 million compared to $5.3 million in the comparable prior year.

Net income was $1.9 million for the fourth quarter compared to net income of $0.5 million in the comparable prior year quarter. Full year 2024 net income was $5.4 million compared to $3.4 million in the comparable prior year.

Earnings per diluted share was $0.24 for the fourth quarter compared to $0.06 in the comparable prior year quarter. Full year 2024 earnings per diluted share was $0.67 compared to $0.40 in the comparable prior year.

Adjusted earnings per diluted share was $0.28 for the fourth quarter compared to $0.06 in the comparable prior year quarter. Full year adjusted earnings per diluted share was $0.79 compared to $0.53 in the comparable prior year.

Adjusted EBITDA was $3.3 million for the fourth quarter compared to $1.6 million in the comparable prior year quarter. Full year adjusted EBITDA was $11.4 million compared to $11.7 million in the comparable prior year.

Use of Non-GAAP Financial Measures

Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled “Information Regarding Non-GAAP Financial Measures”.

Investor Conference Call

The company is holding an investor conference call today, February 20, 2025, at 11 A.M. Eastern Time. Interested investors are invited to attend the conference call by accessing the webcast at https://www.webcast-eqs.com/register/corecard022025/en or by dialing 1-877-407-0890. As part of the conference call CoreCard will be conducting a question-and-answer session where participants are invited to email their questions to questions@corecard.com prior to the call. A transcript of the call will be posted on the company’s website at investors.corecard.com as soon as available after the call.

The company will file its Form 10-K for the period ended December 31, 2024, with the Securities and Exchange Commission in early March. For additional information about reported results, investors will be able to access the Form 10-K on the company’s website at investors.corecard.com or on the SEC website, www.sec.gov.

Use of Non-GAAP Financial Measures

Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section below titled “Information Regarding Non-GAAP Financial Measures”.

About CoreCard Corporation

CoreCard Corporation (NYSE: CCRD) provides the gold standard card issuing platform built for the future of global transactions in an embedded digital world. Dedicated to continual technological innovation in the ever-evolving payments industry backed by decades of deep expertise in credit card offerings, CoreCard helps customers conceptualize, implement, and manage all aspects of their issuing card programs. Keenly focused on steady, sustainable growth, CoreCard has earned the trust of some of the largest companies and financial institutions in the world, providing truly real-time transactions via their proven, reliable platform operating on private on-premise and leading cloud technology infrastructure.

Forward-Looking Statements

The forward-looking statements in this press release are made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company’s actual results could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties including those listed in Item 1A of the Company’s Annual Report on Form 10-K and in the Company’s other filings and reports with the Securities and Exchange Commission. All of the risks and uncertainties are beyond the ability of the Company to control, and in many cases, the Company cannot predict the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this press release, the words “believes,” “plans,” “expects,” “will,” “intends,” “continue,” “outlook,” “progressing,” and “anticipates” and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements. Except as required by law, the Company is not obligated to publicly release any revisions to these forward-looking statements to reflect the events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

CoreCard Corporation CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except share and per share amounts)

	Three Months Ended December 31,							Twelve Months Ended December 31,
			2024			2023			2024			2023
Revenue
Services		$	13,403		$	12,157		$	54,559		$	54,210
Products			1,420			—			2,840			1,794
Total net revenue			14,823			12,157			57,399			56,004
Cost of revenue
Services			8,182			8,191			35,770			36,571
Products			—			—			—			—
Total cost of revenue			8,182			8,191			35,770			36,571
Expenses
Marketing			98			73			407			310
General and administrative			1,513			1,114			5,769			5,334
Development			2,953			2,384			8,914			8,478
Income from operations			2,077			395			6,539			5,311
Investment loss			(12	)		(38	)		(427	)		(1,579	)
Other income			147			272			792			765
Income before income taxes			2,212			629			6,904			4,497
Income taxes			286			143			1,456			1,102
Net income		$	1,926		$	486		$	5,448		$	3,395
Earnings per share:
Basic		$	0.25		$	0.06		$	0.68		$	0.40
Diluted		$	0.24		$	0.06		$	0.67		$	0.40
Basic weighted average common shares outstanding			7,830,266			8,374,606			8,027,077			8,457,714
Diluted weighted average common shares outstanding			8,035,936			8,388,927			8,146,394			8,474,123

CoreCard Corporation CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts)

As of December 31,		2024			2023
ASSETS
Current assets:
Cash and cash equivalents	$	19,481		$	26,918
Marketable securities		5,410			5,230
Accounts receivable, net		10,235			7,536
Other current assets		5,048			4,805
Total current assets		40,174			44,489
Investments		3,776			4,062
Property and equipment, at cost less accumulated depreciation		12,282			11,319
Other long-term assets		6,106			3,956
Total assets	$	62,338		$	63,826
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	823		$	1,557
Deferred revenue, current portion		2,033			2,310
Accrued payroll		2,856			2,172
Accrued expenses		723			971
Other current liabilities		2,017			2,530
Total current liabilities		8,452			9,540
Deferred revenue, net of current portion		118			265
Other long-term liabilities		255			196
Long-term lease obligation		1,816			1,121
Total noncurrent liabilities		2,189			1,582
Stockholders’ equity:
Common stock, $0.01 par value: Authorized shares – 20,000,000;
Issued shares – 9,026,940 and 9,016,140 at December 31, 2024 and 2023, respectively;
Outstanding shares – 7,786,679 and 8,295,408 at December 31, 2024 and 2023, respectively		91			90
Additional paid-in capital		17,928			16,621
Treasury stock, 1,240,261 and 720,732 shares as of December 31, 2024 and 2023, respectively, at cost		(27,997	)		(20,359	)
Accumulated other comprehensive income (loss)		(93	)		32
Accumulated income		61,768			56,320
Total stockholders’ equity		51,697			52,704
Total liabilities and stockholders’ equity	$	62,338		$	63,826

For further information, call
Matt White, 770-564-5504 or
email to matt@corecard.com

Reconciliation of GAAP to NON-GAAP Measures

Information Regarding Non-GAAP Measures

In addition to the financial measures prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), this press release contains certain non-GAAP financial measures. CoreCard considers Adjusted EBITDA and Adjusted earnings per diluted share (“Adjusted EPS”) as supplemental measures of the company’s performance that is not required by, nor presented in accordance with GAAP.

We define Adjusted EBITDA as net income adjusted to exclude depreciation and amortization; share-based compensation expense; income tax expense (benefit); investment income (loss); and other income (expense), net. We believe that Adjusted EBITDA is an important measure of operating performance because it allows management and our board of directors to evaluate and compare our core operating results from period to period.

We define Adjusted EPS as diluted earnings per share adjusted to exclude the impact of share-based compensation expense and non-operating investment gains or losses. We believe that Adjusted EPS is an important measure of operating performance because it allows management and our board of directors to evaluate and compare our core operating results from period to period.

Adjusted EPS and Adjusted EBITDA should not be considered in isolation, or construed as an alternative to net income, or any other performance measures derived in accordance with GAAP, or as an alternative to cash flow from operating activities or as a measure of the company’s liquidity. In addition, other companies may calculate Adjusted EPS and Adjusted EBITDA differently than CoreCard, which limits its usefulness in comparing CoreCard’s financial results with those of other companies.

The following table shows CoreCard’s GAAP results reconciled to non-GAAP results included in this release:

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
(in thousands)	2024			2023			2024			2023
GAAP net income	$	1,926		$	486		$	5,448		$	3,395
Investment loss		—			—			—			1,000
Share-based compensation		449			—			1,308			150
Income tax benefit		(112	)		—			(327	)		(38	)
Adjusted net income	$	2,263		$	486		$	6,429		$	4,507
Adjusted Diluted EPS	$	0.28		$	0.06		$	0.79			0.53
Weighted-average shares		8,036			8,389			8,146			8,474
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
(in thousands)	2024			2023			2024			2023
GAAP net income	$	1,926		$	486		$	5,448		$	3,395
Depreciation and amortization		790			1,245			3,566			6,256
Share-based compensation		449			—			1,308			150
Investment loss		12			38			427			1,579
Other income, net		(147	)		(272	)		(792	)		(765	)
Income tax expense		286			143			1,456			1,102
Adjusted EBITDA	$	3,316		$	1,640		$	11,413		$	11,717
Total Revenue	$	14,823		$	12,157		$	57,399		$	56,004
Adjusted EBITDA Margin		22.4	%		13.5	%		19.9	%		20.9	%

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Feb. 20, 2025 (GLOBE NEWSWIRE) — Kaltura, Inc. (“Kaltura” or the “Company”), the video experience cloud, today announced financial results for the fourth quarter and full year ended December 31, 2024, as well as outlook for first quarter and full year 2025.

“We surpassed our guidance for the fourth quarter, delivering record total and subscription revenue, as well as the highest Adjusted EBITDA since the second quarter of 2020, fueled by record high gross margin. We also posted sequential and year-over-year growth in gross and net dollar retention rates, and in new bookings for the third quarter in a row,” said Ron Yekutiel, Co-founder, Chairman, President and Chief Executive Officer of Kaltura.

“For the full year, we are pleased to report we achieved record annual subscription revenue, total revenue, and Adjusted EBITDA profit, surpassing our annual guidance for all. We also achieved record gross margin and cash flow from operations. We ended the year with record ARR and RPO, having delivered on our plans to reaccelerate new bookings and revenue throughout the second half of the year, and posted positive cash flow from operations for the year, for the first time since 2020.” Mr. Yekutiel continued, “As we look ahead to 2025 and beyond, we anticipate continued improvement in the market environment for enterprise video offerings, and believe our path to increased growth and profitability will be fueled by customer consolidation around our platform, maturity of our newer products, leveraging our exciting new generative artificial intelligence (“Gen AI”) capabilities, growth potential within our great customer base, and a regrowth of our sales force.”

Fourth Quarter 2024 Financial Highlights:

Revenue for the fourth quarter of 2024 was $45.6 million, an increase of 3% compared to $44.5 million for the fourth quarter of 2023.
Subscription revenue for the fourth quarter of 2024 was $43.4 million, an increase of 6% compared to $40.8 million for the fourth quarter of 2023.
Annualized Recurring Revenue (ARR) was $173.9 million, an increase of 6% compared to $164.7 million in 2023.
GAAP Gross profit for the fourth quarter of 2024 was $32.3 million, representing a gross margin of 71% compared to a GAAP gross profit of $28.6 million and gross margin of 64% for the fourth quarter of 2023.
Non-GAAP Gross profit for the fourth quarter of 2024 was $32.6 million, representing a non-GAAP gross margin of 71%, compared to a non-GAAP gross profit of $29.1 million and non-GAAP gross margin of 65% for the fourth quarter of 2023.
GAAP Operating loss was $3.8 million for the fourth quarter of 2024, compared to an operating loss of $8.8 million for the fourth quarter of 2023.
Non-GAAP Operating income was $1.5 million for the fourth quarter of 2024, compared to a non-GAAP operating loss of $0.3 million for the fourth quarter of 2023.
GAAP Net loss was $6.6 million or $0.04 per diluted share for the fourth quarter of 2024, compared to a GAAP net loss of $12.1 million, or $0.09 per diluted share, for the fourth quarter of 2023.
Non-GAAP Net loss was $1.3 million or $0.01 per diluted share for the fourth quarter of 2024, compared to a non-GAAP net loss of $3.6 million, or $0.03 per diluted share, for the fourth quarter of 2023.
Adjusted EBITDA was $2.7 million for the fourth quarter of 2024, compared to Adjusted EBITDA of $0.8 million for the fourth quarter of 2023.
Net cash provided by operating activities was $4.3 million for the fourth quarter of 2024, compared to $1.6 million in the fourth quarter of 2023.

Full Year 2024 Financial Highlights:

Revenue for the full year of 2024 was $178.7 million, an increase of 2% compared to $175.2 million for the full year of 2023.
Subscription revenue for the full year of 2024 was $167.7 million, an increase of 3% compared to $162.8 million for the full year of 2023.
GAAP Gross profit for the full year of 2024 was $119.1 million, representing a gross margin of 67% compared to a GAAP gross profit of $112.2 million and gross margin of 64% for the full year of 2023.
Non-GAAP Gross profit for the full year of 2024 was $120.5 million, representing a gross margin of 67% compared to a non-GAAP gross profit of $113.8 million and gross margin of 65% for the full year of 2023.
GAAP Operating loss was $24.1 million for the full year of 2024, compared to an operating loss of $38.7 million for the full year of 2023.
Non-GAAP Operating income was $2.7 million for the full year of 2024, compared a non-GAAP operating loss of $6.7 million for the full year of 2023.
GAAP Net loss was $31.3 million or $0.21 per diluted share for the full year of 2024, compared to a GAAP net loss of $46.4 million, or $0.34 per diluted share, for the full year of 2023.
Non-GAAP Net loss was $4.5 million or $0.03 per diluted share for the full year of 2024, compared to a non-GAAP net loss of $14.4 million, or $0.10 per diluted share, for the full year of 2023.
Adjusted EBITDA was $7.3 million for the full year of 2024, compared to an Adjusted EBITDA of negative $2.5 million for the full year of 2023.
Net cash provided by operating activities was $12.2 million for the full year of 2024, compared to $8.3 million net cash used in operating activities for the full year of 2023.

Fourth Quarter 2024 Business Highlights:

Closed four new seven-digit deals and twenty-nine six-digit deals – the highest combined number of six and seven-digit deals since the third quarter of 2022.
Highest new subscription bookings since the fourth quarter of 2022 – third quarter in a row of sequential and year-over-year growth.
Sequential and year-over-year improvement in gross retention, and 103% Net Dollar Retention rate.
Launched Gen AI based “Class Genie” and “Work Genie” that power real-time hyper-personalized video-first experiences. Our Beta program for evaluating our Work and Class Genies saw strong interest from dozens of large organizations.
Kaltura’s Media and Telecom new Gen AI features for streaming services earned a place in the FEED Magazine 2024 Honors List, in the “Special Recognition in AI” category.

Financial Outlook:

For the first quarter of 2025, Kaltura expects:

Subscription Revenue to grow by 5%-7% year-over-year to between $43.4 million and $44.2 million.
Total Revenue to grow by 2%-4% year-over-year to between $45.7 million and $46.5 million.
Adjusted EBITDA to be in the range of $2.5 million to $3.5 million.

For the full year ending December 31, 2025, Kaltura expects:

Subscription Revenue to grow by 2%-3% year-over-year to between $170.4 million and $173.4 million.
Total Revenue to grow 1%-2% year-over-year to between $179.9 million and $182.9 million.
Adjusted EBITDA to be in the range of $12.7 million to $14.7 million.

The guidance provided above contains forward-looking statements and actual results may differ materially. Refer to “Forward-Looking Statements” below for information on the factors that could cause our actual results to differ materially from these forward-looking statements. Kaltura has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net loss within this press release because the Company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. The reconciliation for Adjusted EBITDA includes but is not limited to the following items: stock-based compensation expenses, depreciation, amortization, financial expenses (income), net, provision for income tax, and other non-recurring operating expenses. These items, which could materially affect the computation of forward-looking GAAP net loss, are inherently uncertain and depend on various factors, some of which are outside of the Company’s control. The guidance above is based on the Company’s current expectations relating to the macro-economic climate trends.

Additional information on Kaltura’s reported results, including a reconciliation of the non-GAAP financial measures to their most comparable GAAP measures, is included in the financial tables below.

Investor Deck

Our fourth quarter and full year 2024 Investor Deck has been posted in the investor relations page on our website at: www.investors.kaltura.com.

Conference Call

Kaltura will host a conference call today on February 20, 2025 to review its fourth quarter and full year 2024 financial results and to discuss its financial outlook.

	Time:	8:00 a.m. ET
	United States/Canada Toll Free:	1-877-407-0789
	International Toll:	1-201-689-8562

A live webcast will also be available in the Investor Relations section of Kaltura’s website at: https://investors.kaltura.com/news-and-events/events

A replay of the webcast will be available in the Investor Relations section of the company’s web site approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days.

About Kaltura

Kaltura’s mission is to power any video experience for any organization. Our Video Experience Cloud offers live, real-time, and on-demand video products for enterprises of all industries, as well as specialized industry solutions, currently for educational institutions and for media and telecom companies. Underlying our products and solutions is a broad set of Media Services that are also used by other cloud platforms and companies to power video experiences and workflows for their own products. Kaltura’s Video Experience Cloud is used by leading brands reaching millions of users, at home, at school and at work, for communication, collaboration, training, marketing, sales, customer care, teaching, learning, virtual events, and entertainment experiences.

Investor Contacts:
Kaltura
John Doherty
Chief Financial Officer
IR@Kaltura.com

Sapphire Investor Relations
Erica Mannion and Michael Funari
+1 617 542 6180
IR@Kaltura.com

Media Contacts:
Kaltura
Nohar Zmora
pr.team@kaltura.com

Headline Media
Raanan Loew
raanan@headline.media
+1 347 897 9276

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including but not limited to, statements regarding our future financial and operating performance, including our guidance; our business strategy, plans and objectives for future operations, including new products and capabilities and growth of our salesforce; our expectations regarding growth and profitability goals; and general economic, business and industry conditions, including expectations with respect to trends in customer consolidation and adoption of Gen AI technology.

In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “potential,” “positioned,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Any forward-looking statements contained herein are based on our historical performance and our current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent our expectations as of the date of this press release. Subsequent events may cause these expectations to change, and we disclaim any obligation to update the forward-looking statements in the future, except as required by law. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from our current expectations.

Important factors that could cause actual results to differ materially from those anticipated in our forward-looking statements include, but are not limited to, the current volatile economic climate and its direct and indirect impact on our business and operations; political, economic, and military conditions in Israel and other geographies; our ability to retain our customers and meet demand; our ability to achieve and maintain profitability; the evolution of the markets for our offerings; our ability to keep pace with technological and competitive developments; risks associated with our use of certain artificial intelligence and machine learning models; our ability to maintain the interoperability of our offerings across devices, operating systems and third-party applications; risks associated with our Application Programming Interfaces, other components in our offerings and other intellectual property; our ability to compete successfully against current and future competitors; our ability to increase customer revenue; risks related to our approach to revenue recognition; our potential exposure to cybersecurity threats; our compliance with data privacy and data protection laws; our ability to meet our contractual commitments; our reliance on third parties; our ability to retain our key personnel; risks related to revenue mix and customer base; risks related to our international operations; risks related to potential acquisitions; our ability to generate or raise additional capital; and the other risks under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”), as such factors are updated in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024, filed with the SEC, and as such factors may be updated from time to time in our other filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, to be filed with the SEC, which are accessible on the SEC’s website at www.sec.gov and the Investor Relations page of our website at investors.kaltura.com.

Non-GAAP Financial Measures

Kaltura has provided in this press release and the accompanying tables measures of financial information that have not been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”), including non-GAAP gross profit, non-GAAP gross margin (calculated as a percentage of revenue), non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating loss, non-GAAP operating margin (calculated as a percentage of revenue), non-GAAP net loss, non-GAAP net loss per share and Adjusted EBITDA. Kaltura defines these non-GAAP financial measures as the respective corresponding GAAP measure, adjusted for, as applicable: (1) stock-based compensation expense; (2) the amortization of acquired intangibles; (3) facility exit and transition costs; (4) restructuring charges; and (5) war-related costs. Kaltura defines EBITDA as net profit (loss) before financial expenses (income), net, provision for income taxes, and depreciation and amortization expenses. Adjusted EBITDA is defined as EBITDA (as defined above), adjusted for the impact of certain non-cash and other items that we believe are not indicative of our core operating performance, such as non-cash stock-based compensation expenses, facility exit and transition costs, restructuring charges and other non-recurring operating expenses. We believe these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to Kaltura’s financial condition and results of operations. These non-GAAP metrics are a supplemental measure of our performance, are not defined by or presented in accordance with GAAP, and should not be considered in isolation or as an alternative to net profit (loss) or any other performance measure prepared in accordance with GAAP. Non-GAAP financial measures are presented because we believe that they provide useful supplemental information to investors and analysts regarding our operating performance and are frequently used by these parties in evaluating companies in our industry.

By presenting these non-GAAP financial measures, we provide a basis for comparison of our business operations between periods by excluding items that we do not believe are indicative of our core operating performance. We believe that investors’ understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations. Additionally, our management uses these non-GAAP financial measures as supplemental measures of our performance because they assist us in comparing the operating performance of our business on a consistent basis between periods, as described above. Although we use the non-GAAP financial measures described above, such measures have significant limitations as analytical tools and only supplement but do not replace, our financial statements in accordance with GAAP. See the tables below regarding reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.

Key Financial and Operating Metrics

Annualized Recurring Revenue. We use Annualized Recurring Revenue (“ARR”) as a measure of our revenue trend and an indicator of our future revenue opportunity from existing recurring customer contracts. We calculate ARR by annualizing our recurring revenue for the most recently completed fiscal quarter. Recurring revenues are generated from SaaS and PaaS subscriptions, as well as term licenses for software installed on the customer’s premises (“On-Prem”). For the SaaS and PaaS components, we calculate ARR by annualizing the actual recurring revenue recognized for the latest fiscal quarter. For the On-Prem components for which revenue recognition is not ratable across the license term, we calculate ARR for each contract by dividing the total contract value (excluding professional services) as of the last day of the specified period by the number of days in the contract term and then multiplying by 365. Recurring revenue excludes revenue from one-time professional services and setup fees. ARR is not adjusted for the impact of any known or projected future customer cancellations, upgrades or downgrades or price increases or decreases. The amount of actual revenue that we recognize over any 12-month period is likely to differ from ARR at the beginning of that period, sometimes significantly. This may occur due to new bookings, cancellations, upgrades or downgrades, pending renewals, professional services revenue, foreign exchange rate fluctuations and acquisitions or divestitures. ARR should be viewed independently of revenue as it is an operating metric and is not intended to be a replacement or forecast of revenue. Our calculation of ARR may differ from similarly titled metrics presented by other companies.

Net Dollar Retention Rate. Our Net Dollar Retention Rate, which we use to measure our success in retaining and growing recurring revenue from our existing customers, compares our recognized recurring revenue from a set of customers across comparable periods. We calculate our Net Dollar Retention Rate for a given period as the recognized recurring revenue from the latest reported fiscal quarter from the set of customers whose revenue existed in the reported fiscal quarter from the prior year (the numerator), divided by recognized recurring revenue from such customers for the same fiscal quarter in the prior year (denominator). For annual periods, we report Net Dollar Retention Rate as the arithmetic average of the Net Dollar Retention Rate for all fiscal quarters included in the period. We consider subdivisions of the same legal entity (for example, divisions of a parent company or separate campuses that are part of the same state university system) ,as well as Value-add Resellers (“VARs”) (meaning resellers that directly manage the relationship with the customer) and the customers they manage, to be a single customer for purposes of calculating our Net Dollar Retention Rate. Our calculation of Net Dollar Retention Rate for any fiscal period includes the positive recognized recurring revenue impacts of selling new services to existing customers and the negative recognized recurring revenue impacts of contraction and attrition among this set of customers. Our Net Dollar Retention Rate may fluctuate as a result of a number of factors, including the growing level of our revenue base, the level of penetration within our customer base, expansion of products and features, and our ability to retain our customers. Our calculation of Net Dollar Retention Rate may differ from similarly titled metrics presented by other companies.

Remaining Performance Obligations. Remaining Performance Obligations represents the amount of contracted future revenue that has not yet been delivered, including both subscription and professional services revenues. Remaining Performance Obligations consists of both deferred revenue and contracted non-cancelable amounts that will be invoiced and recognized in future periods. We expect to recognize 58% of our Remaining Performance Obligations as revenue over the next 12 months, and the remainder over the next four years. However, we cannot guarantee that any portion of our Remaining Performance Obligations will be recognized as revenue within the timeframe we expect or at all.


Consolidated Balance Sheets (U.S. dollars in thousands; Unaudited)

	December 31,
		2024			2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	33,059		$	36,684
Marketable securities		48,275			32,692
Trade receivables		19,978			23,312
Prepaid expenses and other current assets		9,481			8,410
Deferred contract acquisition and fulfillment costs, current		10,765			10,636

Total current assets		121,558			111,734
LONG-TERM ASSETS:
Marketable securities		3,379			5,844
Property and equipment, net		16,190			20,113
Other assets, noncurrent		2,983			3,100
Deferred contract acquisition and fulfillment costs, noncurrent		13,605			17,314
Operating lease right-of-use assets		12,308			13,872
Intangible assets, net		212			689
Goodwill		11,070			11,070

Total noncurrent assets		59,747			72,002
TOTAL ASSETS	$	181,305		$	183,736
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term loans		3,110			1,612
Trade payables		3,265			3,629
Employees and payroll accruals		15,399			12,651
Accrued expenses and other current liabilities		14,262			17,279
Operating lease liabilities		2,504			2,374
Deferred revenue, current		63,123			62,364
Total current liabilities		101,663			99,909
NONCURRENT LIABILITIES:
Deferred revenue, noncurrent		67			369
Long-term loans, net of current portion		29,153			33,047
Operating lease liabilities, noncurrent		15,263			17,796
Other liabilities, noncurrent		10,772			2,295

Total noncurrent liabilities		55,255			53,507
TOTAL LIABILITIES	$	156,918		$	153,416
STOCKHOLDERS’ EQUITY:
Common stock		15			14
Treasury stock		(7,801	)		(4,881	)
Additional paid-in capital		500,024			471,635
Accumulated other comprehensive income (loss)		959			1,047
Accumulated deficit		(468,810	)		(437,495	)

Total stockholders’ equity		24,387			30,320

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	181,305		$	183,736


Consolidated Statements of Operations (U.S. dollars in thousands, except for share data; Unaudited)

	Three Months ended December 31				Twelve Months ended December 31,
	2024		2023			2024			2023

Revenue:

Subscription	$	43,414	$	40,787	$	167,681		$	162,750
Professional services		2,195		3,689		11,036			12,422

Total revenue		45,609		44,476		178,717			175,172

Cost of revenue:

Subscription		9,852		11,118		42,552			44,224
Professional services		3,476		4,712		17,059			18,714

Total cost of revenue		13,328		15,830		59,611			62,938

Gross profit		32,281		28,646		119,106			112,234

Operating expenses:

Research and development		12,970		12,737		49,430			52,400
Sales and marketing		12,345		12,309		47,766			48,798
General and administrative		10,759		12,420		46,009			48,718
Restructuring		—		—		—			973

Total operating expenses		36,074		37,466		143,205			150,889

Operating loss		3,793		8,820		24,099			38,655

Financial expenses (income), net		1,238		1,847		(434	)		(1,200	)

Loss before provision for income taxes		5,031		10,667		23,665			37,455
Provision for income taxes		1,574		1,400		7,650			8,911

Net loss		6,605		12,067		31,315			46,366

Net loss per share	$	0.04	$	0.09	$	0.21		$	0.34

Weighted-average shares used in computing net loss per share		150,452,462		141,791,191		147,925,797			138,237,017


Consolidated Statements of Operations (U.S. dollars in thousands, except for share data; Unaudited)

Stock-based compensation included in above line items:

	Three Months ended December 31,				Twelve Months ended December 31,
	2024		2023		2024		2023

Cost of revenue	$	195	$	301	$	1,002	$	1,128
Research and development		1,178		1,295		4,775		4,734
Sales and marketing		518		840		2,701		3,187
General and administrative		3,308		5,588		17,786		20,931

Total	$	5,199	$	8,024	$	26,264	$	29,980


Revenue by Segment (U.S. dollars in thousands; Unaudited):

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2023		2024		2023

Enterprise, Education and Technology	$	32,958	$	31,569	$	128,704	$	125,154
Media and Telecom		12,651		12,907		50,013		50,018

Total	$	45,609	$	44,476	$	178,717	$	175,172


Gross Profit by Segment (U.S. dollars in thousands; Unaudited):

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2023		2024		2023

Enterprise, Education and Technology	$	25,901	$	22,998	$	96,928	$	91,624
Media and Telecom		6,380		5,648		22,178		20,610

Total	$	32,281	$	28,646	$	119,106	$	112,234


Consolidated Statement of Cash Flows (U.S. dollars in thousands; Unaudited)

	Twelve Months Ended December 31,
		2024			2023
Cash flows from operating activities:
Net loss	$	(31,315	)	$	(46,366	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		5,064			4,717
Stock-based compensation expenses		26,264			29,980
Amortization of deferred contract acquisition and fulfillment costs		11,447			11,669
Non-cash interest income, net		(1,219	)		(1,023	)
Gain on foreign exchange		(90	)		(728	)
Changes in operating assets and liabilities:
Decrease in trade receivables		3,334			5,475
Decrease (Increase) in prepaid expenses and other current assets and other assets, noncurrent		(949	)		648
Increase in deferred contract acquisition and fulfillment costs		(7,497	)		(6,561	)
Decrease in trade payables		(534	)		(5,884	)
Increase in accrued expenses and other current liabilities		5,376			797
Increase (Decrease) in employees and payroll accruals		2,748			(2,233	)
Increase (Decrease) in other liabilities, noncurrent		(14	)		443
Increase in deferred revenue		458			1,626
Operating lease right-of-use assets and lease liabilities, net		(840	)		(863	)

Net cash provided by (used in) operating activities		12,233			(8,303	)

Cash flows from investing activities:

Investment in available-for-sale marketable securities		(50,874	)		(47,708	)
Proceeds from maturities of available-for-sale marketable securities		38,981			51,976
Purchases of property and equipment		(521	)		(2,607	)
Capitalized internal-use software development costs		—			(1,493	)
Investment in restricted bank deposit		—			(1,751	)

Net cash used in investing activities		(12,414	)		(1,583	)

Cash flows from financing activities:

Proceeds from long-term loans		—			3,500
Repayment of long-term loans		(2,187	)		(4,500	)
Proceeds from exercise of stock options		1,620			1,383
Payment of debt issuance costs		(17	)		(274	)
Repurchase of common stock		(2,920	)		—
Payments on account of repurchase of common stock		(30	)		—

Net cash provided by (used in) financing activities		(3,534	)		109

Effect of exchange rate changes on cash, cash equivalents and restricted cash	$	90		$	728

Net decrease in cash, cash equivalents and restricted cash	$	(3,625	)	$	(9,049	)
Cash, cash equivalents and restricted cash at the beginning of the year		36,784			45,833

Cash, cash equivalents and restricted cash at the end of the year	$	33,159		$	36,784


Reconciliation from GAAP to Non-GAAP Results (U.S. dollars in thousands; Unaudited)

	Three Months						Twelve Months
	Ended December 31,						Ended December 31,
		2024			2023			2024			2023
Reconciliation of gross profit and gross margin
GAAP gross profit	$	32,281		$	28,646		$	119,106		$	112,234
Stock-based compensation expense		195			301			1,002			1,128
Amortization of acquired intangibles		107			107			427			426
Non-GAAP gross profit	$	32,583		$	29,054		$	120,535		$	113,788
GAAP gross margin		71	%		64	%		67	%		64	%
Non-GAAP gross margin		71	%		65	%		67	%		65	%
Reconciliation of operating expenses
GAAP research and development expenses	$	12,970		$	12,737		$	49,430		$	52,400
Stock-based compensation expense		1,178			1,295			4,775			4,734
Amortization of acquired intangibles		—			—			—			—
Non-GAAP research and development expenses	$	11,792		$	11,442		$	44,655		$	47,666
GAAP sales and marketing	$	12,345		$	12,309		$	47,766		$	48,798
Stock-based compensation expense		518			840			2,701			3,187
Amortization of acquired intangibles		11			13			50			128
Non-GAAP sales and marketing expenses	$	11,816		$	11,456		$	45,015		$	45,483
GAAP general and administrative expenses	$	10,759		$	12,420		$	46,009		$	48,718
Stock-based compensation expense		3,308			5,588			17,786			20,931
Amortization of acquired intangibles		—			—			—			—
Facility exit and transition costs ^(a)		—			—			—			154
War related costs ^(b)		22			331			44			331
Non-GAAP general and administrative expenses	$	7,429		$	6,501		$	28,179		$	27,302
Reconciliation of operating loss and operating margin
GAAP operating loss	$	(3,793	)	$	(8,820	)	$	(24,099	)	$	(38,655	)
Stock-based compensation expense		5,199			8,024			26,264			29,980
Amortization of acquired intangibles		118			120			477			554
Restructuring ^(c)		—			—			—			973
Facility exit and transition costs ^(a)		—			—			—			154
War related costs ^(b)		22			331			44			331
Non-GAAP operating income ( loss)	$	1,546		$	(345	)	$	2,686		$	(6,663	)
GAAP operating margin		(8	)%		(20	)%		(13	)%		(22	)%
Non-GAAP operating margin		3	%		(1	)%		2	%		(4	)%
Reconciliation of net loss
GAAP net loss attributable to common stockholders	$	(6,605	)	$	(12,067	)	$	(31,315	)	$	(46,366	)
Stock-based compensation expense		5,199			8,024			26,264			29,980
Amortization of acquired intangibles		118			120			477			554
Restructuring ^(c)		—			—			—			973
Facility exit and transition costs ^(a)		—			—			—			154
War related costs ^(b)		22			331			44			331
Non-GAAP loss attributable to common stockholders	$	(1,266	)	$	(3,592	)	$	(4,530	)	$	(14,374	)

Non-GAAP net loss per share – basic and diluted	$	0.01		$	0.03		$	0.03		$	0.10


Adjusted EBITDA (U.S. dollars in thousands; Unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2024			2023			2024			2023

Net loss	$	(6,605	)	$	(12,067	)	$	(31,315	)	$	(46,366	)
Financial expenses (income), net ^(d)		1,238			1,847			(434	)		(1,200	)
Provision for income taxes		1,574			1,400			7,650			8,911
Depreciation and amortization		1,230			1,308			5,065			4,717
EBITDA		(2,563	)		(7,512	)		(19,035	)		(33,938	)
Non-cash stock-based compensation expense		5,199			8,024			26,264			29,980
Facility exit and transition costs ^(a)		—			—			—			154
Restructuring ^(c)		—			—			—			973
War related costs ^(b)		22			331			44			331
Adjusted EBITDA	$	2,658		$	843		$	7,273		$	(2,500	)

(a)		Facility exit and transition costs for the year ended December 31, 2023, include losses from sale of fixed assets and other costs associated with moving to our temporary office in Israel.
(b)		The years ended December 31, 2024, and 2023 include costs related to conflicts in Israel. These costs are attributable to the temporary relocation of key employees from Israel for business continuity purposes, the purchase of emergency equipment for key employees, charitable donations to communities directly impacted by the war, and office fixes and modifications.
(c)		The year ended December 31, 2023 includes employee termination benefits incurred in connection with our 2023 reorganization plan.
(d)		The three months ended December 31, 2024 and 2023, and the year ended December 31, 2024 and 2023 include $551, $692, $2,682 and $3,178, respectively, of interest expenses and $902, $538, $3,355, and $2,735, respectively, of interest income.

Reported KPIs

	December 31,
	2024		2023
	(U.S. dollars amounts in thousands)
Annualized Recurring Revenue	$	173,900	$	164,723
Remaining Performance Obligations	$	203,379	$	185,305

Source: GlobeNewswire (MIL-OSI)

MARIETTA, Pa., Feb. 20, 2025 (GLOBE NEWSWIRE) — Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the fourth quarter and full year ended December 31, 2024.

Significant items for fourth quarter of 2024 (all comparisons to fourth quarter of 2023):

Net premiums earned increased 4.6% to $236.6 million
Combined ratio of 92.9%, compared to 106.8%
Net income of $24.0 million, or 70 cents per diluted Class A share, compared to net loss of $2.0 million, or 6 cents per Class A share
Net investment gains (after tax) of $0.2 million, or 1 cent per diluted Class A share, compared to $1.8 million, or 5 cents per Class A share, are included in net income (loss)

Significant items for full year of 2024 (all comparisons to full year of 2023):

Net premiums earned increased 6.2% to $936.7 million
Combined ratio of 98.6%, compared to 104.4%
Net income of $50.9 million, or $1.53 per diluted Class A share, compared to $4.4 million, or 14 cents per diluted Class A share
Net investment gains (after tax) of $3.9 million, or 12 cents per diluted Class A share, compared to $2.5 million, or 8 cents per diluted Class A share, are included in net income
Book value per share of $15.36 at December 31, 2024, compared to $14.39 at year-end 2023

Financial Summary

	Three Months Ended December 31,						Year Ended December 31,
	2024		2023		% Change		2024		2023		% Change
	(dollars in thousands, except per share amounts)

Income Statement Data
Net premiums earned	$	236,635	$	226,185	4.6	%	$	936,651	$	882,071	6.2	%
Investment income, net	12,050		10,710		12.5		44,918		40,853		10.0
Net investment gains	256		2,243		-88.6		4,981		3,173		57.0
Total revenues	249,954		239,468		4.4		989,605		927,338		6.7
Net income (loss)	24,003		(1,970)		NM²		50,862		4,426		NM
Non-GAAP operating income (loss)¹	23,801		(3,742)		NM		46,927		1,919		NM
Annualized return on average equity	18.1%		-1.7%		19.8 pts		9.9%		0.9%		9.0 pts

Per Share Data
Net income (loss) – Class A (diluted)	$	0.70	$	(0.06)	NM		$	1.53	$	0.14	NM
Net income (loss) – Class B	0.64		(0.06)		NM		1.38		0.11		NM
Non-GAAP operating income (loss) – Class A (diluted)	0.69		(0.11)		NM		1.41		0.06		NM
Non-GAAP operating income (loss) – Class B	0.63		(0.11)		NM		1.27		0.04		NM
Book value	15.36		14.39		6.7	%	15.36		14.39		6.7	%

^¹_{The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).}^²_{Not meaningful.}

Management Commentary

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “We concluded 2024 with strong performance in the fourth quarter that we believe reflected our unrelenting focus in recent years on execution, whether on strategic initiatives to broaden our market capabilities or on profit-improvement measures to enhance our operating performance. As we move into 2025, we are striving to further enhance our performance while also pursuing intentional, strategic premium growth.

“For the fourth quarter of 2024, our loss ratio improved substantially compared to the prior-year quarter, as premium rate increases contributed to higher net premiums earned and numerous underwriting initiatives we implemented in recent years resulted in lower claim activity. Our weather-related loss ratio compared favorably to both the prior-year quarter and our previous five-year average for the fourth quarter of the year. Net development of reserves for claims incurred in prior years had virtually no effect on the loss ratio for the fourth quarter of 2024 or 2023.

“We effectively mitigated the higher costs associated with our major systems modernization project and higher underwriting-based incentive costs by implementing targeted expense-reduction strategies across our operations. We remain committed to refining the efficiency of our insurance operations, leveraging our substantial investments in technology, data and analytics, to maintain a sustainable expense ratio.”

Mr. Burke concluded, “As the insurance industry landscape continues to evolve, our dedicated team will maintain focus on the effective execution of the strategies we believe will lead to successful achievement of our long-term objectives. We will continue to implement premium rate increases as needed to maintain rate adequacy and achieve targeted risk-adjusted returns. We are also actively pursuing new business opportunities across our regional footprint, concentrating primarily on high quality new commercial middle market and small business accounts, while also seeking strategic new business growth within our personal lines segment. We have refined our state-specific strategies and action plans to meet current market challenges and opportunities. We believe that the successful execution of those actions will allow us to further enhance underwriting performance, drive sustainable measured growth and strengthen our competitive position with our independent agents, ultimately increasing the value of our stockholders’ investment in Donegal Group Inc.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

	Three Months Ended December 31,						Year Ended December 31,
	2024		2023		% Change		2024		2023		% Change
	(dollars in thousands)

Net Premiums Earned
Commercial lines	$	136,701	$	133,602	2.3	%	$	539,683	$	533,029	1.2	%
Personal lines	99,934		92,583		7.9		396,968		349,042		13.7
Total net premiums earned	$	236,635	$	226,185	4.6	%	$	936,651	$	882,071	6.2	%

Net Premiums Written
Commercial lines:
Automobile	$	42,922	$	39,888	7.6	%	$	184,989	$	174,741	5.9	%
Workers’ compensation	20,934		22,283		-6.1		103,533		107,598		-3.8
Commercial multi-peril	50,431		48,010		5.0		213,959		195,632		9.4
Other	9,790		10,544		-7.2		45,439		50,458		-9.9
Total commercial lines	124,077		120,725		2.8		547,920		528,429		3.7
Personal lines:
Automobile	54,078		54,609		-1.0		243,036		215,957		12.5
Homeowners	30,958		34,653		-10.7		140,613		139,688		0.7
Other	2,329		2,706		-13.9		10,712		11,623		-7.8
Total personal lines	87,365		91,968		-5.0		394,361		367,268		7.4
Total net premiums written	$	211,442	$	212,693	-0.6%		$	942,281	$	895,697	5.2	%

Net Premiums Written

The 0.6% decrease in net premiums written¹ for the fourth quarter of 2024 compared to the fourth quarter of 2023, as shown in the table above, represents the combination of 2.8% growth in commercial lines net premiums written and a 5.0% decrease in personal lines net premiums written. The $1.3 million decrease in net premiums written for the fourth quarter of 2024 compared to the fourth quarter of 2023 included:

Commercial Lines: $3.3 million increase that we attribute primarily to solid premium retention and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in classes of business we have targeted for profit improvement.
Personal Lines: $4.6 million decrease that we attribute primarily to planned attrition due to non-renewal actions and lower new business writings, offset partially by a continuation of renewal premium rate increases and solid policy retention.

The $46.6 million increase in net premiums written for the full year of 2024 compared to the full year of 2023 included:

Commercial Lines: $19.5 million increase that we attribute primarily to strong premium retention and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in states we exited or classes of business we have targeted for profit improvement.
Personal Lines: $27.1 million increase that we attribute primarily to a continuation of renewal premium rate increases and solid policy retention, offset partially by planned attrition due to non-renewal actions and lower new business writings.

Underwriting Performance

We evaluate the performance of our commercial lines and personal lines segments primarily based upon the underwriting results of our insurance subsidiaries as determined under statutory accounting practices. The following table presents comparative details with respect to the GAAP and statutory combined ratios¹ for the three months and full years ended December 31, 2024 and 2023:

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023

GAAP Combined Ratios (Total Lines)
Loss ratio – core losses	52.3	%	61.8	%	54.0	%	57.5	%
Loss ratio – weather-related losses	3.3		5.9		7.2		8.3
Loss ratio – large fire losses	4.0		4.8		4.9		5.2
Loss ratio – net prior-year reserve development	-0.2		-0.4		-1.6		-1.9
Loss ratio	59.8		72.1		64.5		69.1
Expense ratio	32.8		34.1		33.7		34.7
Dividend ratio	0.3		0.6		0.4		0.6
Combined ratio	92.9	%	106.8	%	98.6	%	104.4	%

Statutory Combined Ratios
Commercial lines:
Automobile	115.7	%	104.8	%	102.6	%	97.3	%
Workers’ compensation	105.6		107.9		104.4		96.6
Commercial multi-peril	79.4		107.8		95.0		112.3
Other	84.7		95.0		80.0		85.5
Total commercial lines	97.3		105.8		98.2		101.6
Personal lines:
Automobile	96.5		119.7		97.4		109.7
Homeowners	76.2		101.3		99.6		108.6
Other	106.3		59.2		99.5		75.8
Total personal lines	89.5		111.1		98.3		108.2
Total lines	94.0	%	107.8	%	98.3	%	104.2	%

Loss Ratio – Fourth Quarter

For the fourth quarter of 2024, the loss ratio decreased to 59.8%, compared to 72.1% for the fourth quarter of 2023. The core loss ratio, which excludes weather-related losses, large fire losses and net development of reserves for losses incurred in prior accident years, was 52.3% for the fourth quarter of 2024, which improved significantly compared to 61.8% for the fourth quarter of 2023. For the commercial lines segment, the core loss ratio of 55.2% for the fourth quarter of 2024 improved from 59.6% for the fourth quarter of 2023, primarily as the result of ongoing premium rate increases in all lines except workers’ compensation and reduced exposures in underperforming states and classes of business. For the personal lines segment, the core loss ratio of 48.4% for the fourth quarter of 2024 decreased significantly from 65.1% for the fourth quarter of 2023, due largely to the favorable impact of premium rate increases on net premiums earned for that segment.

Weather-related losses of $7.7 million, or 3.3 percentage points of the loss ratio, for the fourth quarter of 2024 decreased from $13.4 million, or 5.9 percentage points of the loss ratio, for the fourth quarter of 2023. Our insurance subsidiaries did not incur significant losses from any single weather event during the fourth quarters of 2024 or 2023. The impact of weather-related loss activity to the loss ratio for the fourth quarter of 2024 was lower than our previous five-year average of 5.2 percentage points for fourth quarter weather-related losses.

Large fire losses, which we define as individual fire losses in excess of $50,000, were $9.5 million, or 4.0 percentage points of the loss ratio, for the fourth quarter of 2024, compared to $10.8 million, or 4.8 percentage points of the loss ratio, for the fourth quarter of 2023. The modest decrease primarily reflected lower average severity in homeowner fire losses.

Net development of reserves for losses incurred in prior accident years had virtually no impact to the loss ratio for the fourth quarter of 2024 or 2023. For the fourth quarter of 2024, our insurance subsidiaries experienced unfavorable development primarily in personal automobile and commercial automobile losses that was offset by favorable development in commercial multi-peril losses and other lines of business. For the fourth quarter of 2023, our insurance subsidiaries experienced favorable development in personal automobile, workers’ compensation, homeowners and commercial automobile losses, offset partially by unfavorable development in commercial multi-peril and other commercial losses.

Loss Ratio – Full Year

For the full year of 2024, the loss ratio decreased to 64.5%, compared to 69.1% for the full year of 2023. The 2024 core loss ratio decreased by 3.5 percentage points to 54.0% from 57.5% for 2023. For the commercial lines segment, the core loss ratio of 54.4% for 2024 improved from 56.5% for 2023, primarily as the result of ongoing premium rate increases in all lines except workers’ compensation and reduced exposures in underperforming states and classes of business. For the personal lines segment, the core loss ratio of 53.5% for 2024 decreased from 59.1% in 2023, due largely to the favorable impact of premium rate increases on net premiums earned for that segment.

Weather-related losses for the full year of 2024 were $67.7 million, or 7.2 percentage points of the loss ratio, compared to $72.9 million, or 8.3 percentage points of the loss ratio, for the full year of 2023. The loss ratio impact of weather-related losses for the full year of 2024 was in line with the previous five-year average of 7.0 percentage points of the loss ratio.

Large fire losses were $45.8 million, or 4.9 percentage points of the loss ratio, for the full year of 2024, relatively in line with $45.4 million, or 5.2 percentage points of the loss ratio, for the full year of 2023.

Net favorable development of reserves for losses incurred in prior accident years of $15.0 million reduced the loss ratio for the full year of 2024 by 1.6 percentage points. For the full year of 2024, our insurance subsidiaries experienced favorable development in losses primarily in the commercial multi-peril, personal automobile and homeowners lines of business, offset partially by unfavorable development in the workers’ compensation and commercial automobile lines of business. Net favorable development of reserves for losses incurred in prior accident years of $16.7 million reduced the loss ratio for the full year of 2023 by 1.9 percentage points. For the full year of 2023, our insurance subsidiaries experienced favorable development in losses primarily in the commercial automobile, personal automobile, workers’ compensation and homeowners lines of business.

Expense Ratio

The expense ratio was 32.8% for the fourth quarter of 2024, compared to 34.1% for the fourth quarter of 2023. The expense ratio was 33.7% for the full year of 2024, compared to 34.7% for the full year of 2023. The decrease in the expense ratios for the fourth quarter and full year of 2024 primarily reflected the impacts of various expense reduction initiatives, including agency incentive program revisions, commission schedule adjustments, targeted staffing reductions, and hiring restrictions for open employment positions, among others. These impacts were offset partially by an increase in underwriting-based incentive costs as well as higher technology systems-related expenses that were primarily due to increased costs related to our ongoing systems modernization project, a portion of which Donegal Mutual Insurance Company allocates to our insurance subsidiaries. We expect the impact from allocated costs from Donegal Mutual Insurance Company to our insurance subsidiaries related to the ongoing systems modernization project peaked at approximately 1.3 percentage points of the expense ratio for the full year of 2024 and will subside gradually in 2025 and subsequent years.

Investment Operations

Donegal Group’s investment strategy is to generate an appropriate amount of after-tax income on its invested assets while minimizing credit risk through investment in high-quality securities. As a result, we had invested 95.6% of our consolidated investment portfolio in diversified, highly rated and marketable fixed-maturity securities at December 31, 2024.

	December 31, 2024					December 31, 2023
	Amount			%		Amount			%
	(dollars in thousands)
Fixed maturities, at carrying value:
U.S. Treasury securities and obligations of U.S.
government corporations and agencies	$	170,423		12.3	%	$	176,991		13.3	%
Obligations of states and political subdivisions	409,560			29.5		415,280			31.3
Corporate securities	440,552			31.8		399,640			30.1
Mortgage-backed securities	304,459			22.0		278,260			21.0
Allowance for expected credit losses	(1,388		)	-0.1		(1,326		)	-0.1
Total fixed maturities	1,323,606			95.5		1,268,845			95.6
Equity securities, at fair value	36,808			2.7		25,903			2.0
Short-term investments, at cost	24,558			1.8		32,306			2.4
Total investments	$	1,384,972		100.0	%	$	1,327,054		100.0	%

Average investment yield	3.3%					3.1%
Average tax-equivalent investment yield	3.4%					3.2%
Average fixed-maturity duration (years)	5.2					4.3

Net investment income of $12.1 million for the fourth quarter of 2024 increased 12.5% compared to $10.7 million in net investment income for the fourth quarter of 2023, due primarily to higher average invested assets and an increase in the average investment yield compared to the prior-year fourth quarter. Net investment income of $44.9 million for the full year of 2024 increased 10.0% compared to the full year of 2023, due primarily to higher average invested assets and an increase in the average investment yield compared to the prior year.

Net investment gains were minimal for the fourth quarter of 2024, compared to $2.2 million for the fourth quarter of 2023. We attribute the gains to the quarterly increases in the market value of the equity securities held at the end of the respective periods.

Net investment gains were $5.0 million for the full year of 2024, compared to $3.2 million for the full year of 2023. We attribute the gains to the change in the market value of the equity securities held at the end of the respective periods.

Our book value per share was $15.36 at December 31, 2024, compared to $14.39 at December 31, 2023, as increases from net income and unrealized gains within our available-for-sale fixed-maturity portfolio during 2024 were partially offset by the dividends we declared during the year.

Definitions of Non-GAAP Financial Measures

We prepare our consolidated financial statements on the basis of GAAP. Our insurance subsidiaries also prepare financial statements based on statutory accounting principles state insurance regulators prescribe or permit (“SAP”). In addition to using GAAP-based performance measurements, we also utilize certain non-GAAP financial measures that we believe provide value in managing our business and for comparison to the financial results of our peers. These non-GAAP measures are net premiums written, operating income or loss and statutory combined ratio.

Net premiums written and operating income or loss are non-GAAP financial measures investors in insurance companies commonly use. We define net premiums written as the amount of full-term premiums our insurance subsidiaries record for policies effective within a given period less premiums our insurance subsidiaries cede to reinsurers. We define operating income or loss as net income or loss excluding after-tax net investment gains or losses, after-tax restructuring charges and other significant non-recurring items. Because our calculation of operating income or loss may differ from similar measures other companies use, investors should exercise caution when comparing our measure of operating income or loss to the measure of other companies.

The following table provides a reconciliation of net premiums earned to net premiums written for the periods indicated:

	Three Months Ended December 31,								Year Ended December 31,
	2024			2023			% Change		2024		2023		% Change
	(dollars in thousands)

Reconciliation of Net Premiums
Earned to Net Premiums Written
Net premiums earned	$	236,635		$	226,185		4.6	%	$	936,651	$	882,071	6.2	%
Change in net unearned premiums	(25,193		)	(13,492		)	86.7		5,630		13,626		-58.7
Net premiums written	$	211,442		$	212,693		-0.6	%	$	942,281	$	895,697	5.2	%

The following table provides a reconciliation of net income (loss) to operating income (loss) for the periods indicated:

	Three Months Ended December 31,								Year Ended December 31,
	2024			2023			% Change		2024			2023			% Change
	(dollars in thousands, except per share amounts)

Reconciliation of Net Income (Loss)
to Non-GAAP Operating Income (Loss)
Net income (loss)	$	24,003		$	(1,970	)	NM		$	50,862		$	4,426		NM
Investment gains (after tax)		(202	)		(1,772	)	-88.6	%		(3,935	)		(2,507	)	57.0	%
Non-GAAP operating income (loss)	$	23,801		$	(3,742	)	NM		$	46,927		$	1,919		NM

Per Share Reconciliation of Net Income (Loss)
to Non-GAAP Operating Income (Loss)
Net income (loss) – Class A (diluted)	$	0.70		$	(0.06	)	NM		$	1.53		$	0.14		NM
Investment gains (after tax)		(0.01	)		(0.05	)	-80.0	%		(0.12	)		(0.08	)	50.0	%
Non-GAAP operating income (loss) – Class A	$	0.69		$	(0.11	)	NM		$	1.41		$	0.06		NM

Net income (loss) – Class B	$	0.64		$	(0.06	)	NM		$	1.38		$	0.11		NM
Investment gains (after tax)		(0.01	)		(0.05	)	-80.0	%		(0.11	)		(0.07	)	57.1	%
Non-GAAP operating income (loss) – Class B	$	0.63		$	(0.11	)	NM		$	1.27		$	0.04		NM

The statutory combined ratio is a standard non-GAAP measurement of underwriting profitability that is based upon amounts determined under SAP. The statutory combined ratio is the sum of:

the statutory loss ratio, which is the ratio of calendar-year incurred losses and loss expenses, excluding anticipated salvage and subrogation recoveries, to premiums earned;
the statutory expense ratio, which is the ratio of expenses incurred for net commissions, premium taxes and underwriting expenses to premiums written; and
the statutory dividend ratio, which is the ratio of dividends to holders of workers’ compensation policies to premiums earned.

The statutory combined ratio does not reflect investment income, federal income taxes or other non-operating income or expense. A statutory combined ratio of less than 100% generally indicates underwriting profitability.

Dividend Information

On December 19, 2024, we declared regular quarterly cash dividends of $0.1725 per share for our Class A common stock and $0.155 per share for our Class B common stock, which we paid on February 18, 2025 to stockholders of record as of the close of business on February 4, 2025.

Pre-Recorded Webcast

At approximately 8:30 am EDT on Thursday, February 20, 2025, we will make available in the Investors section of our website a pre-recorded audio webcast featuring management commentary on our quarterly and annual results and general business updates. You may listen to the pre-recorded webcast by accessing the link on our website at http://investors.donegalgroup.com. A supplemental investor presentation is also available via our website.

About the Company

Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in certain Mid-Atlantic, Midwestern, Southern and Southwestern states. Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group Inc. conduct business together as the Donegal Insurance Group. The Donegal Insurance Group has an A.M. Best rating of A (Excellent).

The Class A common stock and Class B common stock of Donegal Group Inc. trade on the NASDAQ Global Select Market under the symbols DGICA and DGICB, respectively. We are focused on several primary strategies, including achieving sustained excellent financial performance, strategically modernizing our operations and processes to transform our business, capitalizing on opportunities to grow profitably and providing superior experiences to our agents, policyholders and employees.

Safe Harbor

We base all statements contained in this release that are not historic facts on our current expectations. Such statements are forward-looking in nature (as defined in the Private Securities Litigation Reform Act of 1995) and necessarily involve risks and uncertainties. Forward-looking statements we make may be identified by our use of words such as “will,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “seek,” “estimate” and similar expressions. Our actual results could vary materially from our forward-looking statements. The factors that could cause our actual results to vary materially from the forward-looking statements we have previously made include, but are not limited to, adverse litigation and other trends that could increase our loss costs (including social inflation, labor shortages and escalating medical, automobile and property repair costs), adverse and catastrophic weather events (including from changing climate conditions), our ability to maintain profitable operations (including our ability to underwrite risks effectively and charge adequate premium rates), the adequacy of the loss and loss expense reserves of our insurance subsidiaries, the availability and successful operation of the information technology systems our insurance subsidiaries utilize, the successful development of new information technology systems to allow our insurance subsidiaries to compete effectively, business and economic conditions in the areas in which we and our insurance subsidiaries operate, interest rates, competition from various insurance and other financial businesses, terrorism, the availability and cost of reinsurance, legal and judicial developments (including those related to COVID-19 business interruption coverage exclusions), changes in regulatory requirements, our ability to attract and retain independent insurance agents, changes in our A.M. Best rating and the other risks that we describe from time to time in our filings with the Securities and Exchange Commission. We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Investor Relations Contacts

Karin Daly, Vice President, The Equity Group Inc.
Phone: (212) 836-9623
E-mail: kdaly@equityny.com

Jeffrey D. Miller, Executive Vice President & Chief Financial Officer
Phone: (717) 426-1931
E-mail: investors@donegalgroup.com

Financial Supplement

Donegal Group Inc.
Consolidated Statements of Income (Loss)
(unaudited; in thousands, except share data)

	Quarter Ended December 31,
	2024		2023

Net premiums earned	$	236,635	$	226,185
Investment income, net of expenses	12,050		10,710
Net investment gains	256		2,243
Lease income	77		85
Installment payment fees	936		245
Total revenues	249,954		239,468

Net losses and loss expenses	141,435		163,154
Amortization of deferred acquisition costs	39,853		39,149
Other underwriting expenses	37,649		38,032
Policyholder dividends	826		1,225
Interest	269		156
Other expenses, net	255		233
Total expenses	220,287		241,949

Income (loss) before income tax expense (benefit)	29,667		(2,481		)
Income tax expense (benefit)	5,664		(511		)

Net income (loss)	$	24,003	$	(1,970	)

Net income (loss) per common share:
Class A – basic	$	0.71	$	(0.06	)
Class A – diluted	$	0.70	$	(0.24	)
Class B – basic and diluted	$	0.64	$	(0.06	)

Supplementary Financial Analysts’ Data

Weighted-average number of shares
outstanding:
Class A – basic	28,979,432		27,702,646
Class A – diluted	29,224,696		27,726,318
Class B – basic and diluted	5,576,775		5,576,775

Net premiums written	$	211,442	$	212,693

Book value per common share
at end of period	$	15.36	$	14.39

Donegal Group Inc.
Consolidated Statements of Income
(unaudited; in thousands, except share data)

	Year Ended December 31,
	2024		2023

Net premiums earned	$	936,651	$	882,071
Investment income, net of expenses	44,918		40,853
Net investment gains	4,981		3,173
Lease income	314		347
Installment payment fees	2,741		894
Total revenues	989,605		927,338

Net losses and loss expenses	604,118		609,178
Amortization of deferred acquisition costs	160,311		154,214
Other underwriting expenses	155,254		151,748
Policyholder dividends	4,073		5,313
Interest	946		620
Other expenses, net	2,564		1,201
Total expenses	927,266		922,274

Income before income tax expense	62,339		5,064
Income tax expense	11,477		638

Net income	$	50,862	$	4,426

Net income per common share:
Class A – basic and diluted	$	1.53	$	0.14
Class B – basic and diluted	$	1.38	$	0.11

Supplementary Financial Analysts’ Data

Weighted-average number of shares
outstanding:
Class A – basic	28,155,276		27,469,250
Class A – diluted	28,245,356		27,562,785
Class B – basic and diluted	5,576,775		5,576,775

Net premiums written	$	942,281	$	895,697

Book value per common share
at end of period	$	15.36	$	14.39

Donegal Group Inc.
Consolidated Balance Sheets
(in thousands)

			December 31,		December 31,
			2024		2023
			(unaudited)

ASSETS
Investments:
	Fixed maturities:
		Held to maturity, at amortized cost	$	705,714	$	679,497
		Available for sale, at fair value	617,892		589,348
	Equity securities, at fair value		36,808		25,903
	Short-term investments, at cost		24,558		32,306
		Total investments	1,384,972		1,327,054
Cash			52,926		23,792
Premiums receivable			181,107		179,592
Reinsurance receivable			420,742		441,431
Deferred policy acquisition costs			73,347		75,043
Prepaid reinsurance premiums			176,162		168,724
Other assets			46,776		50,658
		Total assets	$	2,336,032	$	2,266,294

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
	Losses and loss expenses		$	1,120,985	$	1,126,157
	Unearned premiums		612,476		599,411
	Accrued expenses		2,917		3,947
	Borrowings under lines of credit		35,000		35,000
	Other liabilities		18,878		22,034
		Total liabilities	1,790,256		1,786,549
Stockholders’ equity:
	Class A common stock		329		308
	Class B common stock		56		56
	Additional paid-in capital		369,680		335,694
	Accumulated other comprehensive loss		(28,200)		(32,882)
	Retained earnings		245,137		217,795
	Treasury stock		(41,226)		(41,226)
		Total stockholders’ equity	545,776		479,745
		Total liabilities and stockholders’ equity	$	2,336,032	$	2,266,294

Source: GlobeNewswire (MIL-OSI)

Q4-24 Revenue of € 153.4 Million and Net Income of € 59.3 Million. Operating Results Within Prior Guidance

FY-24 Revenue of € 607.5 Million and Net Income of € 182.0 Million Up 4.9% and 2.8%, Respectively, vs. FY-23. Orders of € 586.7 Million Up 7.0% vs. FY-23

Proposed Dividend of € 2.18 per Share for Fiscal 2024. 95% Pay-Out Ratio

DUIVEN, the Netherlands, Feb. 20, 2025 (GLOBE NEWSWIRE) — BE Semiconductor Industries N.V. (the “Company” or “Besi”) (Euronext Amsterdam: BESI; OTC markets: BESIY), a leading manufacturer of assembly equipment for the semiconductor industry, today announced its results for the fourth quarter and year ended December 31, 2024.

Key Highlights Q4-24

Revenue of € 153.4 million down 2.0% vs. Q3-24 and 3.9% vs. Q4-23 primarily due to lower demand for automotive applications partially offset by increased hybrid bonding shipments
Orders of € 121.9 million down 19.7% vs. Q3-24 and 26.7% vs. Q4-23 due primarily to decreased bookings for high performance computing and mainstream assembly applications
Gross margin of 64.0% decreased by 0.7 points vs. Q3-24 and 1.1 points vs. Q4-23 primarily due to adverse net forex influences
Net income of € 59.3 million increased 26.7% vs. Q3-24 and 8.0% vs. Q4-23 due to € 18.2 million of net tax benefits realized. As a result, net margin rose to 38.6% vs. 29.9% in Q3-24 and 34.4% in Q4-23
Cash and deposits of € 672.3 million at year-end increased 62.6% versus year-end 2023. Net cash of € 143.8 million increased € 33.1 million (29.9%) vs. Q3-24 and € 30.8 million (27.3%) vs. Q4-23

Key Highlights FY 2024

Revenue of € 607.5 million increased 4.9% vs. 2023 principally due to higher demand by computing end-user markets, particularly for hybrid bonding and photonics applications, partially offset by weakness in mobile, automotive and Chinese end-user markets
Orders of € 586.7 million rose 7.0% due to strength in 2.5D and 3D AI-related applications
Gross margin of 65.2% rose by 0.3 points due to more favorable advanced packaging product mix
Net income of € 182.0 million grew 2.8% as higher revenue, gross margin and net tax benefits were partially offset by higher R&D spending and share-based compensation expense. Besi’s net margin decreased slightly to 30.0% vs. 30.6% in 2023
Proposed dividend of € 2.18 per share. Represents pay-out ratio of 95%

Q1-25 Outlook

Revenue expected to decrease 0-10% vs. the € 153.4 million reported in Q4-24
Gross margin expected to range between 63-65% vs. the 64.0% realized in Q4-24
Operating expenses expected to grow 10-20% vs. the € 47.6 million reported in Q4-24

(€ millions, except EPS)	Q4-2024	Q3-2024	Δ		Q4-2023	Δ		FY-2024	FY-2023	Δ
Revenue	153.4	156.6	-2.0	%	159.6	-3.9	%	607.5	578.9	+4.9	%
Orders	121.9	151.8	-19.7	%	166.4	-26.7	%	586.7	548.3	+7.0	%
Gross Margin	64.0%	64.7%	-0.7		65.1%	-1.1		65.2%	64.9%	+0.3
Operating Income	50.6	55.1	-8.2	%	66.1	-23.4	%	195.6	213.4	-8.3	%
EBITDA	58.0	62.4	-7.1	%	72.7	-20.2	%	224.2	239.1	-6.2	%
Net Income*	59.3	46.8	+26.7	%	54.9	+8.0	%	182.0	177.1	+2.8	%
Net Margin*	38.6%	29.9%	+8.7		34.4%	+4.2		30.0%	30.6%	-0.6
EPS (basic)	0.75	0.59	+27.1	%	0.71	+5.6	%	2.31	2.28	+1.3	%
EPS (diluted)	0.74	0.59	+25.4	%	0.68	+8.8	%	2.30	2.23	+3.1	%
Net Cash and Deposits	143.8	110.7	+29.9	%	113.0	+27.3	%	143.8	113.0	+27.3	%

* Includes net tax benefit of € 18.2 million in Q4-24 versus a tax charge of € 2.3 million in Q4-23.

Richard W. Blickman, President and Chief Executive Officer of Besi, commented:

“Besi’s business development in 2024 reflected contrasting growth trends for AI and mainstream assembly equipment markets. For the year, revenue grew by approximately 5% to reach € 607.5 million due to significantly higher demand by computing end-user markets, particularly for AI-related hybrid bonding and photonics applications. Similarly, orders of € 586.7 million increased by 7.0%. As a result, orders for AI applications grew to represent approximately 50% of our total orders in 2024. Strong order growth from computing end-user markets this year was partly offset by unfavorable market conditions for mainstream applications related to an industry downturn more than two years in duration.

“We continue to navigate an extended downturn at industry leading levels of profitability. Besi achieved gross, operating and net margins of 65.2%, 32.2% and 30.0%, respectively, in 2024. Gross margins increased slightly versus 2023 due to a more favorable advanced packaging product mix which were partially offset by unfavorable net forex effects, particularly in the second half of the year. Net income rose 2.8% versus 2023 primarily due to higher revenue and gross margins realized and a net tax benefit of € 18.2 million. Such favorable influences were partially offset by a significant increase in development spending and higher share-based compensation expense. Given profits earned in 2024 and our solid liquidity position, we will propose a cash dividend of € 2.18 per share for approval at Besi’s 2025 AGM which represents a pay-out ratio relative to net income of 95%.

“Investments in Besi’s future growth continued in 2024 as reflected in higher development spending and a planned expansion of our advanced packaging production capacity in 2025. We increased R&D spending by 31.7% this year to offer customers leading edge assembly solutions for next generation 2.5D and 3D architectures. In addition, progress continued on our hybrid bonding agenda as revenue approximately tripled versus 2023 and orders more than doubled. In addition, adoption increased from nine to fifteen customers. During Q4-24, some notable hybrid bonding bookings included a first order from a Japanese semiconductor producer focused on 2nm advanced logic semiconductors and from a Korean IDM for advanced logic applications.

“Besi’s fourth quarter results were adversely affected by ongoing weakness in mainstream assembly markets, seasonal influences and lower demand for hybrid bonding and photonics applications as customers digested capacity added in 2024. Revenue of € 153.4 million was down 2.0% vs. Q3-24 and 3.9% vs. Q4-23 primarily due to lower demand for automotive applications partially offset by increased hybrid bonding shipments. Orders of € 121.9 million decreased by 19.7% vs. Q3-24 and 26.7% vs. Q4-23 due to lower bookings for hybrid bonding, photonics and mainstream assembly applications. Hybrid bonding and photonics orders have fluctuated on a quarterly basis due to the timing by customers of new device introductions and related capacity additions for these emerging applications. Our operating income in Q4-24 decreased by 8.2% versus Q3-24 primarily due to lower revenue and a 0.7 point gross margin decrease from adverse forex movements. Q4-24 net income of € 59.3 million increased 26.7% vs. Q3-24 and 8.0% vs. Q4-23 due to net tax benefits realized from an upward revaluation of deferred tax assets.

“We enter the year 2025 with cautious optimism based on strong momentum in our advanced die placement solutions for AI applications partially offset by ongoing weakness in mainstream automotive, smart phone, industrial and Chinese end-user markets. We believe that the pace of innovation is increasing as the pandemic and generative AI have accelerated society’s move to a digital world with AI technology adoption increasing significantly in our daily lives. We believe that the commercial viability of hybrid bonding process technology has now been confirmed by some of the industry’s leading players and research institutes. Significant incremental adoption is anticipated to occur over the next three years as the technology is increasingly used in HBM 4/5 memory stacks, ASIC logic devices, silicon photonics, co-packaged optics and consumer mobile/computing applications. As such, we estimate that hybrid bonding adoption and deployment is still in its very early stages.

“The timing and trajectory of a new mainstream assembly upturn is difficult to predict at present. The assembly market still suffers from post-pandemic excess capacity which has taken more than two years to approach equilibrium levels. Semiconductor unit growth and capacity utilization rates have improved since 2022 but at a less rapid rate than previously anticipated by analysts. That being said, we believe it likely that a mainstream assembly recovery will begin in the second half of 2025. Its trajectory will depend on demand trends in each of our end markets and the ultimate course of global trade restrictions. For Q1-25, we forecast that revenue will decrease by 0-10% versus Q4-24 and for gross margins to remain in a range of 63-65% based on our projected product mix. Aggregate operating expenses are forecast to rise 10-20% versus Q4-24 primarily due to higher strategic consulting costs.”

Share Repurchase Activity

During the quarter, Besi repurchased approximately 0.2 million of its ordinary shares at an average price of € 112.84 per share or a total of € 22.4 million. For the year, Besi repurchased approximately 0.6 million shares at an average price of € 125.53 per share for a total of € 79.8 million. At year end, Besi held approximately 1.8 million shares in treasury equal to 2.3% of its shares outstanding.

Investor and media conference call
A conference call and webcast for investors and media will be held today at 4:00 pm CET (10:00 am EST). To register for the conference call and/or to access the audio webcast and webinar slides, please visit www.besi.com.

Important Dates

Publication Annual Report 2024

Publication Q1 results

Annual General Meeting of Shareholders

Publication Q2/semi-annual results

Publication Q3/nine-month results

Publication Q4/full year results

February 28, 2025

April 23, 2025

July 24, 2025

October 23, 2025

February 2026

Dividend Information*

Proposed ex-dividend date

Proposed record date

Proposed payment of 2024 dividend

April 25, 2025

April 28, 2025

Starting May 2, 2025

* Subject to approval at Besi’s AGM on April 23, 2025

Basis of Presentation

The accompanying Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union. Reference is made to the Summary of Significant Accounting Policies to the Notes to the Consolidated Financial Statements as included in our 2024 Annual Report, which will be available on www.besi.com as of February 28, 2025.

Contacts
Richard W. Blickman, President & CEO
Andrea Kopp-Battaglia, Senior Vice President Finance
Claudia Vissers, Executive Secretary/IR coordinator
Edmond Franco, VP Corporate Development/US IR coordinator
Tel. (31) 26 319 4500
investor.relations@besi.com

About Besi
Besi is a leading manufacturer of assembly equipment supplying a broad portfolio of advanced packaging solutions to the semiconductor and electronics industries. We offer customers high levels of accuracy, reliability and throughput at a lower cost of ownership with a principal focus on wafer level and substrate assembly solutions. Customers are primarily leading semiconductor manufacturers, foundries, assembly subcontractors and electronics and industrial companies. Besi’s ordinary shares are listed on Euronext Amsterdam (symbol: BESI). Its Level 1 ADRs are listed on the OTC markets (symbol: BESIY) and its headquarters are located in Duiven, the Netherlands. For more information, please visit our website at www.besi.com.

Statement of Compliance
The accounting policies applied in the condensed consolidated financial statements included in this press release are the same as those applied in the Annual Report 2024 and were authorized for issuance by the Board of Management and Supervisory Board on February 19, 2025. In accordance with Article 393, Title 9, Book 2 of the Netherlands Civil Code, EY Accountants BV has issued an unqualified auditor’s opinion on the Annual Report 2024. The Annual Report 2024 will be published on our website on February 28, 2025 and proposed for adoption by the Annual General Meeting on April 23, 2025. The condensed financial statements included in this press release have been prepared in accordance with IFRS Accounting Standards, as adopted by the European Union but do not include all of the information required for a complete set of IFRS financial statements.

Caution Concerning Forward-Looking Statements

This press release contains statements about management’s future expectations, plans and prospects of our business that constitute forward-looking statements, which are found in various places throughout the press release, including, but not limited to, statements relating to expectations of orders, net sales, product shipments, expenses, timing of purchases of assembly equipment by customers, gross margins, operating results and capital expenditures. The use of words such as “anticipate”, “estimate”, “expect”, “can”, “intend”, “believes”, “may”, “plan”, “predict”, “project”, “forecast”, “will”, “would”, and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The financial guidance set forth under the heading “Outlook” contains such forward-looking statements. While these forward-looking statements represent our judgments and expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from those contained in forward-looking statements, including any inability to maintain continued demand for our products; failure of anticipated orders to materialize or postponement or cancellation of orders, generally without charges; the volatility in the demand for semiconductors and our products and services; the extent and duration of the COVID-19 and other global pandemics and the associated adverse impacts on the global economy, financial markets, global supply chains and our operations as well as those of our customers and suppliers; failure to develop new and enhanced products and introduce them at competitive price levels; failure to adequately decrease costs and expenses as revenues decline; loss of significant customers, including through industry consolidation or the emergence of industry alliances; lengthening of the sales cycle; acts of terrorism and violence; disruption or failure of our information technology systems; consolidation activity and industry alliances in the semiconductor industry that may result in further increased customer concentration, inability to forecast demand and inventory levels for our products; the integrity of product pricing and protection of our intellectual property in foreign jurisdictions; risks, such as changes in trade regulations, conflict minerals regulations, currency fluctuations, political instability and war, associated with substantial foreign customers, suppliers and foreign manufacturing operations, particularly to the extent occurring in the Asia Pacific region where we have a substantial portion of our production facilities; potential instability in foreign capital markets; the risk of failure to successfully manage our diverse operations; any inability to attract and retain skilled personnel, including as a result of restrictions on immigration, travel or the availability of visas for skilled technology workers; those additional risk factors set forth in Besi’s annual report for the year ended December 31, 2024 and other key factors that could adversely affect our businesses and financial performance contained in our filings and reports, including our statutory consolidated statements. We expressly disclaim any obligation to update or alter our forward-looking statements whether as a result of new information, future events or otherwise.

Consolidated Statements of Operations
(€ thousands, except share and per share data)	Three Months Ended December 31, (unaudited)			Year Ended December 31, (audited)
	2024		2023	2024	2023

Revenue	153,413		159,635	607,473	578,862
Cost of sales	55,253		55,700	211,529	203,074

Gross profit	98,160		103,935	395,944	375,788

Selling, general and administrative expenses	28,575		24,277	126,048	105,956
Research and development expenses	19,009		13,533	74,305	56,440

Total operating expenses	47,584		37,810	200,353	162,396

Operating income	50,576		66,125	195,591	213,392

Financial expense, net	3,877		729	7,071	5,703

Income before taxes	46,699		65,396	188,520	207,689

Income tax expense (benefit)	(12,595	)	10,501	6,528	30,605

Net income	59,294		54,895	181,992	177,084

Net income per share – basic	0.75		0.71	2.31	2.28
Net income per share – diluted	0.74		0.68	2.30	2.23

Number of shares used in computing per share amounts: – basic – diluted ¹	79,402,192 81,628,947		77,070,082 82,091,299	78,877,471 81,889,907	77,508,722 82,800,279
¹⁾ The calculation of diluted income per share assumes the exercise of equity settled share based payments and the conversion of all Convertible Notes outstanding

Consolidated Balance Sheets
(€ thousands)	December 31, 2024 (audited)	September 30, 2024 (unaudited)	June 30, 2024 (unaudited)	March 31, 2024 (unaudited)	December 31, 2023 (audited)
ASSETS

Cash and cash equivalents	342,319	307,448	127,234	232,053	188,477
Deposits	330,000	330,000	130,000	215,000	225,000
Trade receivables	181,862	169,266	174,601	150,192	143,218
Inventories	103,285	104,103	99,291	99,384	92,505
Other current assets	40,927	44,731	36,346	34,756	39,092

Total current assets	998,393	955,548	567,472	731,385	688,292

Property, plant and equipment	44,773	44,220	43,571	41,328	37,516
Right of use assets	15,726	16,419	16,821	16,901	18,242
Goodwill	46,010	45,278	45,710	45,613	45,402
Other intangible assets	96,677	94,855	92,627	90,241	93,668
Deferred tax assets	31,567	8,610	9,517	11,444	12,217
Other non-current assets	1,330	1,316	1,239	1,252	1,216

Total non-current assets	236,083	210,698	209,485	206,779	208,261

Total assets	1,234,476	1,166,246	776,957	938,164	896,553



Bank overdraft	776	–	–	–	–
Current portion of long-term debt	2,042	2,241	3,033	984	3,144
Trade payables	52,630	49,211	51,620	52,382	46,889
Other current liabilities	111,531	87,739	73,023	100,606	87,200

Total current liabilities	166,979	139,191	127,676	153,972	137,233

Long-term debt	525,653	524,527	179,801	265,142	297,353
Lease liabilities	12,350	13,033	13,448	13,625	14,924
Deferred tax liabilities	10,320	11,619	10,396	12,136	12,959
Other non-current liabilities	17,910	12,449	11,352	12,914	12,671

Total non-current liabilities	566,233	561,628	214,997	303,817	337,907

Total equity	501,264	465,427	434,284	480,375	421,413

Total liabilities and equity	1,234,476	1,166,246	776,957	938,164	896,553

Consolidated Cash Flow Statements
(€ thousands)	Three Months Ended December 31, (unaudited)				Year Ended December 31, (audited)
	2024		2023		2024		2023

Cash flows from operating activities:
Income before income tax	46,699		65,396		188,520		207,689

Depreciation and amortization	7,420		6,577		28,601		25,732
Share based payment expense	2,851		2,807		30,067		19,107
Financial expense, net	3,877		729		7,071		5,703

Changes in working capital	4,819		(24,238	)	(39,095	)	(26,819	)
Interest (paid) received	1,965		1,647		9,183		4,722
Income tax (paid) received	(3,751	)	386		(23,264	)	(27,562	)

Net cash provided by operating activities	63,880		53,304		201,083		208,572

Cash flows from investing activities:
Capital expenditures	(1,074	)	(1,451	)	(12,039	)	(6,899	)
Capitalized development expenses	(5,447	)	(5,780	)	(19,437	)	(21,121	)
Repayments of (investments in) deposits	–		(39,659	)	(105,000	)	(44,927	)

Net cash provided by (used in) investing activities	(6,521	)	(46,890	)	(136,476	)	(72,947	)

Cash flows from financing activities:
Proceeds from bank lines of credit	776		–		776		–
Proceeds from notes	–		–		350,000		–
Transaction costs related to notes	(29	)	–		(6,424	)	–
Payments of lease liabilities	(1,128	)	(1,100	)	(4,314	)	(4,307	)
Purchase of treasury shares	(22,415	)	(23,123	)	(79,833	)	(213,387	)
Dividends paid to shareholders	–		–		(171,534	)	(222,109	)

Net cash used in financing activities	(22,796	)	(24,223	)	88,671		(439,803	)

Net increase (decrease) in cash and cash equivalents	34,563		(17,809	)	153,278		(304,178	)
Effect of changes in exchange rates on cash and cash equivalents	308		1,261		564		969
Cash and cash equivalents at beginning of the period	307,448		205,025		188,477		491,686

Cash and cash equivalents at end of the period	342,319		188,477		342,319		188,477

Supplemental Information (unaudited) (€ millions, unless stated otherwise)

REVENUE	Q4-2024				Q3-2024				Q2-2024				Q1-2024				Q4-2023				Q3-2023				Q2-2023				Q1-2023

Per geography:
China	42.8		28	%	45.5		29	%	57.5		38	%	58.5		40	%	62.0		39	%	40.8		33	%	64.9		40	%	37.6		28	%
Asia Pacific (excl. China)	53.5		35	%	51.6		33	%	54.1		36	%	43.6		30	%	57.9		36	%	42.3		34	%	59.2		36	%	58.2		44	%
EU / USA / Other	57.1		37	%	59.5		38	%	39.6		26	%	44.2		30	%	39.7		25	%	40.2		33	%	38.4		24	%	37.6		28	%

Total	153.4		100	%	156.6		100	%	151.2		100	%	146.3		100	%	159.6		100	%	123.3		100	%	162.5		100	%	133.4		100	%

ORDERS	Q4-2024				Q3-2024				Q2-2024				Q1-2024				Q4-2023				Q3-2023				Q2-2023				Q1-2023

Per geography:
China	40.4		33	%	45.4		30	%	43.3		23	%	51.1		40	%	71.1		43	%	46.0		36	%	51.4		46	%	35.5		25	%
Asia Pacific (excl. China)	38.8		32	%	69.3		46	%	72.0		39	%	45.0		35	%	36.6		22	%	40.9		32	%	33.2		29	%	71.3		50	%
EU / USA / Other	42.7		35	%	37.1		24	%	69.9		38	%	31.6		25	%	58.7		35	%	40.4		32	%	28.0		25	%	35.2		25	%

Total	121.9		100	%	151.8		100	%	185.2		100	%	127.7		100	%	166.4		100	%	127.3		100	%	112.6		100	%	142.0		100	%

Per customer type:
IDM	61.2		50	%	84.5		56	%	122.4		66	%	53.5		42	%	82.7		50	%	70.5		55	%	60.5		54	%	74.0		52	%
Foundries/Subcontractors*	60.7		50	%	67.3		44	%	62.8		34	%	74.2		58	%	83.7		50	%	56.8		45	%	52.1		46	%	68.0		48	%

Total	121.9		100	%	151.8		100	%	185.2		100	%	127.7		100	%	166.4		100	%	127.3		100	%	112.6		100	%	142.0		100	%
* Includes foundries as of financial year 2024

HEADCOUNT	Dec 31, 2024				Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023				Jun 30, 2023				Mar 31, 2023

Fixed staff (FTE)	1,812		93	%	1,807		87	%	1,783		86	%	1,760		88	%	1,736		93	%	1,725		87	%	1,689		86	%	1,682		84	%
Temporary staff (FTE)	134		7	%	271		13	%	279		14	%	236		12	%	134		7	%	248		13	%	279		14	%	312		16	%

Total	1,946		100	%	2,078		100	%	2,062		100	%	1,996		100	%	1,870		100	%	1,973		100	%	1,968		100	%	1,994		100	%

OTHER FINANCIAL DATA	Q4-2024				Q3-2024				Q2-2024				Q1-2024				Q4-2023				Q3-2023				Q2-2023				Q1-2023

Gross profit	98.2		64.0	%	101.2		64.7	%	98.3		65.0	%	98.3		67.2	%	103.9		65.1	%	79.6		64.6	%	106.6		65.6	%	85.7		64.2	%


Selling, general and admin expenses:
As reported	28.6		18.6	%	27.3		17.4	%	30.5		20.2	%	39.6		27.1	%	24.3		15.2	%	23.3		18.9	%	29.4		18.1	%	29.0		21.7	%
Share-based compensation expense	-2.9		-1.8	%	(3.4	)	-2.1	%	(6.9	)	-4.6	%	(16.9	)	-11.6	%	(2.8	)	-1.7	%	(1.6	)	-1.3	%	(5.5	)	-3.4	%	(9.3	)	-7.0	%

SG&A expenses as adjusted	25.7		16.8	%	23.9		15.3	%	23.6		15.6	%	22.7		15.5	%	21.5		13.5	%	21.7		17.6	%	23.9		14.7	%	19.7		14.8	%


Research and development expenses:
As reported	19.0		12.4	%	18.9		12.1	%	18.5		12.2	%	17.9		12.2	%	13.5		8.5	%	13.6		11.0	%	14.3		8.8	%	15.0		11.2	%
Capitalization of R&D charges	5.4		3.5	%	4.4		2.8	%	4.9		3.2	%	4.7		3.2	%	5.7		3.6	%	4.7		3.8	%	5.3		3.3	%	5.4		4.0	%
Amortization of intangibles	-3.9		-2.5	%	(3.9	)	-2.5	%	(3.6	)	-2.3	%	(3.6	)	-2.4	%	(3.3	)	-2.1	%	(3.3	)	-2.6	%	(3.5	)	-2.2	%	(3.5	)	-2.6	%

R&D expenses as adjusted	20.5		13.4	%	19.4		12.4	%	19.8		13.1	%	19.0		13.0	%	15.9		10.0	%	15.0		12.2	%	16.1		9.9	%	16.9		12.7	%


Financial expense (income), net:
Interest income	-5.1				(5.2	)			(3.0	)			(4.0	)			(3.6	)			(2.9	)			(3.1	)			(2.6	)
Interest expense	6.1				5.7				2.1				2.8				3.0				2.8				2.9				2.9
Net cost of hedging	2.0				1.9				1.4				1.6				1.7				1.7				2.0				1.6
Foreign exchange effects, net	0.9				(0.8	)			0.5				0.2				(0.4	)			0.2				(0.1	)			(0.4	)

Total	3.9				1.6				1.0				0.6				0.7				1.8				1.7				1.5

Gross cash	672.3				637.4				257.2				447.1				413.5				391.2				378.3				644.9


Operating income (as % of net sales)	50.6		33.0	%	55.1		35.2	%	49.3		32.6	%	40.7		27.8	%	66.1		41.4	%	42.7		34.6	%	62.9		38.7	%	41.7		31.3	%

EBITDA (as % of net sales)	58.0		37.8	%	62.4		39.8	%	56.2		37.2	%	47.5		32.5	%	72.7		45.6	%	48.9		39.7	%	69.3		42.6	%	48.2		36.1	%

Net income (as % of net sales)	59.3		38.6	%	46.8		29.9	%	41.9		27.7	%	34.0		23.2	%	54.9		34.4	%	35.0		28.4	%	52.6		32.4	%	34.5		25.9	%

Effective tax rate	-27.0	%			12.6	%			13.0	%			15.3	%			16.1	%			14.4	%			14.0	%			14.0	%


Income per share
Basic	0.75				0.59				0.53				0.44				0.71				0.45				0.68				0.44
Diluted	0.74				0.59				0.53				0.44				0.68				0.45				0.66				0.44

Average shares outstanding (basic)	79,402,192				79,630,787				79,281,533				77,181,326				77,070,082				77,374,933				77,634,197				77,946,873

Shares repurchased
Amount	22.4				27.8				14.8				14.8				23.1				45.5				66.9				77.7
Number of shares	198,450				230,807				105,042				101,049				226,572				447,829				761,937				1,120,327

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

Source: GlobeNewswire (MIL-OSI)

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

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

Summary of 2024 Fourth Quarter Results

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

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

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

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

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

Summary of 2024 Annual Results

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

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

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

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

Change of Chief Financial Officer

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

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

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

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

Market Background and Outlook

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

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

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

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

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

Annual Dividend Proposal

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

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

Analysis of 2024 Fourth Quarter Results

Tubes

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

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

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

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

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

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

Others

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

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

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

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

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

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

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

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

Cash Flow and Liquidity of 2024 Fourth Quarter

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

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

Analysis of 2024 Annual Results

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

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

Tubes

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

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

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

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

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

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

Others

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

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

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

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

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

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

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

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

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

Cash Flow and Liquidity of 2024

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

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

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

Conference call

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

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

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

Please connect 10 minutes before the scheduled start time.

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

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

Consolidated Income Statement

(all amounts in thousands of U.S. dollars)	Three-month period ended December 31,		Twelve-month period ended December 31,
	2024	2023	2024	2023

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

Attributable to:
Shareholders’ equity	516,213	1,129,098	2,036,445	3,918,065
Non-controlling interests	2,918	16,683	40,328	39,768
	519,131	1,145,781	2,076,773	3,957,833

Consolidated Statement of Financial Position

(all amounts in thousands of U.S. dollars)	At December 31, 2024		At December 31, 2023

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

Consolidated Statement of Cash Flows

	Three-month period ended December 31,		Twelve-month period ended December 31,
(all amounts in thousands of U.S. dollars)	2024	2023	2024	2023

Cash flows from operating activities
Income for the period	519,131	1,145,781	2,076,773	3,957,833
Adjustments for:
Depreciation and amortization	167,781	156,347	632,854	548,510
Bargain purchase gain	–	–	(2,211)	(3,162)
Income tax accruals less payments	(160)	(277,559)	(222,510)	(143,391)
Equity in earnings of non-consolidated companies	(35,283)	(56,859)	(8,548)	(95,404)
Interest accruals less payments, net	7,246	(8,554)	(1,067)	(53,480)
Provision for the ongoing litigation related to the acquisition of participation in Usiminas	(87,975)	–	89,371	–
Changes in provisions	(19,808)	(651)	(25,155)	21,284
Reclassification of currency translation adjustment reserve	–	(878)	–	(878)
Changes in working capital	(36,604)	(65,697)	286,917	182,428
Others, including net foreign exchange differences	(22,100)	(56,195)	39,794	(18,667)
Net cash provided by operating activities	492,228	835,735	2,866,218	4,395,073

Cash flows from investing activities
Capital expenditures	(181,870)	(166,820)	(693,956)	(619,445)
Changes in advance to suppliers of property, plant and equipment	5,092	834	(10,391)	1,736
Acquisition of subsidiaries, net of cash acquired	–	(161,238)	31,446	(265,657)
Other investments at fair value	–	(1,126)	–	(1,126)
Additions to associated companies	–	–	–	(22,661)
Loan to joint ventures	(1,414)	(1,092)	(5,551)	(3,754)
Proceeds from disposal of property, plant and equipment and intangible assets	9,646	3,858	28,963	12,881
Dividends received from non-consolidated companies	20,674	25,268	73,810	68,781
Changes in investments in securities	458,407	740,153	(821,478)	(1,857,272)
Net cash provided by (used in) investing activities	310,535	439,837	(1,397,157)	(2,686,517)

Cash flows from financing activities
Dividends paid	(299,230)	(235,128)	(757,786)	(636,511)
Dividends paid to non-controlling interest in subsidiaries	–	–	(5,862)	(18,967)
Changes in non-controlling interests	28	–	1,143	3,772
Acquisition of treasury shares	(454,462)	(213,739)	(1,439,589)	(213,739)
Payments of lease liabilities	(17,248)	(15,524)	(68,574)	(51,492)
Proceeds from borrowings	344,222	365,455	1,870,666	1,723,677
Repayments of borrowings	(382,656)	(406,774)	(1,999,427)	(1,931,747)
Net cash used in financing activities	(809,346)	(505,711)	(2,399,429)	(1,125,007)

(Decrease) increase in cash and cash equivalents	(6,583)	769,861	(930,368)	583,549

Movement in cash and cash equivalents
At the beginning of the year	681,306	864,012	1,616,597	1,091,433
Effect of exchange rate changes	(13,925)	(17,276)	(25,431)	(58,385)
(Decrease) increase in cash and cash equivalents	(6,583)	769,861	(930,368)	583,549
At December 31,	660,798	1,616,597	660,798	1,616,597

Exhibit I – Alternative performance measures

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

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

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

EBITDA is calculated in the following manner:

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

EBITDA is a non-IFRS alternative performance measure.

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

Free Cash Flow

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

Free cash flow is calculated in the following manner:

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

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

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

Net Cash / (Debt)

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

Net cash/ debt is calculated in the following manner:

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

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

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

Operating working capital days

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

Operating working capital days is calculated in the following manner:

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

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

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

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

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

Source: GlobeNewswire (MIL-OSI)

/ Q4 2024 Results

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

/FY 2024 Results

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

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

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

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

/ Summary of Financial Results

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

Our results are as follows:

	GAAP
*(in thousands, except per share data and percentages)*	Q4 QTD 2024			Q4 QTD 2023			% Change		FY 2024			FY 2023			% Change
Revenue	$	882,174		$	805,108		9.6	%	$	2,544,809		$	2,269,949		12.1	%
Net income	$	282,688		$	274,762		2.9	%	$	575,692		$	500,412		15.0	%
Diluted earnings per share	$	3.21		$	3.14		2.2	%	$	6.55		$	5.73		14.3	%
Gross margin		91.8	%		91.3	%				89.0	%		88.0	%
Operating profit margin		40.3	%		41.4	%				28.2	%		27.6	%
Effective tax rate		21.3	%		15.4	%				19.8	%		15.5	%

	Non-GAAP
*(in thousands, except per share data and percentages)*	Q4 QTD 2024			Q4 QTD 2023			% Change		FY 2024			FY 2023			% Change
Net income	$	391,044		$	345,317		13.2	%	$	959,252		$	769,308		24.7	%
Diluted earnings per share	$	4.44		$	3.94		12.7	%	$	10.91		$	8.80		24.0	%
Gross margin		94.6	%		94.3	%				93.1	%		92.2	%
Operating profit margin		53.3	%		53.0	%				45.7	%		42.6	%
Effective tax rate		17.5	%		17.5	%				17.5	%		17.5	%

	Other Metrics
*(in thousands, except percentages)*	Q4 QTD 2024		Q4 QTD 2023		% Change		FY 2024		FY 2023		% Change
ACV	$	1,094,552	$	955,161	14.6	%	$	2,563,029	$	2,300,466	11.4	%
Operating cash flows	$	257,973	$	232,722	10.9	%	$	795,740	$	717,122	11.0	%
Unlevered operating cash flows	$	266,777	$	242,848	9.9	%	$	834,582	$	755,129	10.5	%

/ Key Long-Term Metrics

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

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

Supplemental Financial Information

/ Annual Contract Value

*(in thousands, except percentages)*	Q4 QTD 2024		Q4 QTD 2024 in Constant Currency		Q4 QTD 2023		% Change		% Change in Constant Currency
ACV	$	1,094,552	$	1,110,711	$	955,161	14.6	%	16.3	%

*(in thousands, except percentages)*	FY 2024		FY 2024 in Constant Currency		FY 2023		% Change		% Change in Constant Currency
ACV	$	2,563,029	$	2,593,819	$	2,300,466	11.4	%	12.8	%

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

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

/ Revenue

*(in thousands, except percentages)*	Q4 QTD 2024		Q4 QTD 2024 in Constant Currency		Q4 QTD 2023		% Change		% Change in Constant Currency
Revenue	$	882,174	$	893,996	$	805,108	9.6	%	11.0	%

*(in thousands, except percentages)*	FY 2024		FY 2024 in Constant Currency		FY 2023		% Change		% Change in Constant Currency
Revenue	$	2,544,809	$	2,570,207	$	2,269,949	12.1	%	13.2	%

REVENUE BY LICENSE TYPE

*(in thousands, except percentages)*	Q4 QTD 2024		% of Total		Q4 QTD 2023		% of Total		% Change		% Change in Constant Currency
Subscription Lease	$	441,120	50.0	%	$	399,556	49.6	%	10.4	%	12.1	%
Perpetual		102,295	11.6	%		102,721	12.8	%	(0.4)%		1.7	%
Maintenance¹		319,381	36.2	%		283,130	35.2	%	12.8	%	13.8	%
Service		19,378	2.2	%		19,701	2.4	%	(1.6)%		(1.2)%
Total	$	882,174			$	805,108			9.6	%	11.0	%


*(in thousands, except percentages)*	FY 2024		% of Total		FY 2023		% of Total		% Change		% Change in Constant Currency
Subscription Lease	$	948,831	37.3	%	$	786,050	34.6	%	20.7	%	22.1	%
Perpetual		315,085	12.4	%		302,698	13.3	%	4.1	%	5.1	%
Maintenance¹		1,209,217	47.5	%		1,103,523	48.6	%	9.6	%	10.6	%
Service		71,676	2.8	%		77,678	3.4	%	(7.7)%		(7.4)%
Total	$	2,544,809			$	2,269,949			12.1	%	13.2	%

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

REVENUE BY GEOGRAPHY

*(in thousands, except percentages)*	Q4 QTD 2024		% of Total		Q4 QTD 2023		% of Total		% Change		% Change in Constant Currency
Americas	$	457,752	51.9	%	$	410,681	51.0	%	11.5	%	11.5	%

Germany		98,527	11.2	%		81,828	10.2	%	20.4	%	24.2	%
Other EMEA		170,541	19.3	%		155,023	19.3	%	10.0	%	12.2	%
EMEA		269,068	30.5	%		236,851	29.4	%	13.6	%	16.3	%

Japan		52,294	5.9	%		61,243	7.6	%	(14.6)%		(11.1)%
Other Asia-Pacific		103,060	11.7	%		96,333	12.0	%	7.0	%	10.1	%
Asia-Pacific		155,354	17.6	%		157,576	19.6	%	(1.4)%		1.8	%

Total	$	882,174			$	805,108			9.6	%	11.0	%


*(in thousands, except percentages)*	FY 2024		% of Total		FY 2023		% of Total		% Change		% Change in Constant Currency
Americas	$	1,297,367	51.0	%	$	1,106,242	48.7	%	17.3	%	17.3	%

Germany		209,714	8.2	%		199,068	8.8	%	5.3	%	6.6	%
Other EMEA		445,791	17.5	%		406,719	17.9	%	9.6	%	9.8	%
EMEA		655,505	25.8	%		605,787	26.7	%	8.2	%	8.8	%

Japan		184,547	7.3	%		203,013	8.9	%	(9.1)%		(2.1)%
Other Asia-Pacific		407,390	16.0	%		354,907	15.6	%	14.8	%	16.9	%
Asia-Pacific		591,937	23.3	%		557,920	24.6	%	6.1	%	10.0	%

Total	$	2,544,809			$	2,269,949			12.1	%	13.2	%

REVENUE BY CHANNEL

	Q4 QTD 2024		Q4 QTD 2023		FY 2024		FY 2023
Direct revenue, as a percentage of total revenue	79.7	%	74.5	%	75.2	%	73.9	%
Indirect revenue, as a percentage of total revenue	20.3	%	25.5	%	24.8	%	26.1	%

/ Deferred Revenue and Backlog

*(in thousands)*	December 31, 2024		September 30, 2024		December 31, 2023		September 30, 2023
Current Deferred Revenue	$	504,527	$	427,188	$	457,514	$	349,668
Current Backlog		524,617		475,604		439,879		424,547
Total Current Deferred Revenue and Backlog		1,029,144		902,792		897,393		774,215

Long-Term Deferred Revenue		31,778		24,150		22,240		20,765
Long-Term Backlog		657,345		536,855		552,951		410,697
Total Long-Term Deferred Revenue and Backlog		689,123		561,005		575,191		431,462

Total Deferred Revenue and Backlog	$	1,718,267	$	1,463,797	$	1,472,584	$	1,205,677

/ Currency

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

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

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

	Period-End Exchange Rates
As of	EUR/USD	USD/JPY
December 31, 2024	1.04	157
December 31, 2023	1.10	141
December 31, 2022	1.07	131

	Average Exchange Rates
Three Months Ended	EUR/USD	USD/JPY
December 31, 2024	1.07	153
December 31, 2023	1.08	148

	Average Exchange Rates
Twelve Months Ended	EUR/USD	USD/JPY
December 31, 2024	1.08	151
December 31, 2023	1.08	140

/ GAAP Financial Statements

ANSYS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
*(in thousands)*	December 31, 2024		December 31, 2023
ASSETS:
Cash & short-term investments	$	1,497,517	$	860,390
Accounts receivable, net		1,022,850		864,526
Goodwill		3,778,128		3,805,874
Other intangibles, net		716,244		835,417
Other assets		1,036,692		956,668
Total assets	$	8,051,431	$	7,322,875
LIABILITIES & STOCKHOLDERS’ EQUITY:
Current deferred revenue	$	504,527	$	457,514
Long-term debt		754,208		753,891
Other liabilities		706,256		721,106
Stockholders’ equity		6,086,440		5,390,364
Total liabilities & stockholders’ equity	$	8,051,431	$	7,322,875

ANSYS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)
	Three Months Ended						Twelve Months Ended
*(in thousands, except per share data)*	December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Revenue:
Software licenses	$	543,415		$	502,277		$	1,263,916		$	1,088,748
Maintenance and service		338,759			302,831			1,280,893			1,181,201
Total revenue		882,174			805,108			2,544,809			2,269,949
Cost of sales:
Software licenses		12,947			10,909			45,367			40,004
Amortization		21,801			20,586			88,560			80,990
Maintenance and service		37,940			38,554			145,892			150,304
Total cost of sales		72,688			70,049			279,819			271,298
Gross profit		809,486			735,059			2,264,990			1,998,651
Operating expenses:
Selling, general and administrative		314,009			269,857			995,340			855,135
Research and development		134,259			126,288			528,014			494,869
Amortization		5,623			5,914			23,748			22,512
Total operating expenses		453,891			402,059			1,547,102			1,372,516
Operating income		355,595			333,000			717,888			626,135
Interest income		14,636			7,199			51,131			19,588
Interest expense		(10,924	)		(12,551	)		(47,849	)		(47,145	)
Other expense, net		(14	)		(2,876	)		(3,132	)		(6,440	)
Income before income tax provision		359,293			324,772			718,038			592,138
Income tax provision		76,605			50,010			142,346			91,726
Net income	$	282,688		$	274,762		$	575,692		$	500,412
Earnings per share – basic:
Earnings per share	$	3.23		$	3.16		$	6.59		$	5.76
Weighted average shares		87,455			86,888			87,313			86,833
Earnings per share – diluted:
Earnings per share	$	3.21		$	3.14		$	6.55		$	5.73
Weighted average shares		88,137			87,541			87,895			87,386

/ Glossary of Terms

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

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

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

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

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

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

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

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

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

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

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

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

Three Months Ended

December 31, 2024

(in thousands, except percentages and per share data)

Gross Profit

% of Revenue

Operating Income

% of Revenue

Net Income

EPS – Diluted¹

Total GAAP

$

809,486

91.8

%

$

355,595

40.3

%

$

282,688

$

3.21

Stock-based compensation expense

3,635

0.4

%

73,016

8.2

%

73,016

0.83

Excess payroll taxes related to stock-based awards

39

—

%

1,272

0.2

%

1,272

0.01

Amortization of intangible assets from acquisitions

21,801

2.4

%

27,424

3.1

%

27,424

0.31

Expenses related to business combinations

—

%

12,988

1.5

%

12,988

0.15

Adjustment for income tax effect

—

%

—

%

(6,344

)

(0.07

)

Total non-GAAP

$

834,961

94.6

%

$

470,295

53.3

%

$

391,044

$

4.44

¹ Diluted weighted average shares were 88,137.

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

¹ Diluted weighted average shares were 87,541.

Twelve Months Ended

December 31, 2024

(in thousands, except percentages and per share data)

Gross Profit

% of Revenue

Operating Income

% of Revenue

Net Income

EPS – Diluted¹

Total GAAP

$

2,264,990

89.0

%

$

717,888

28.2

%

$

575,692

$

6.55

Stock-based compensation expense

14,313

0.6

%

270,900

10.7

%

270,900

3.08

Excess payroll taxes related to stock-based awards

506

—

%

8,643

0.3

%

8,643

0.10

Amortization of intangible assets from acquisitions

88,560

3.5

%

112,308

4.4

%

112,308

1.28

Expenses related to business combinations

—

%

52,841

2.1

%

52,841

0.60

Adjustment for income tax effect

—

%

—

%

(61,132

)

(0.70

)

Total non-GAAP

$

2,368,369

93.1

%

$

1,162,580

45.7

%

$

959,252

$

10.91

¹ Diluted weighted average shares were 87,895.

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

¹ Diluted weighted average shares were 87,386.

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

/ Use of Non-GAAP Measures

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

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

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

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

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

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

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

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

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

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

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

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

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

/ About Ansys

Our Mission: Powering Innovation that Drives Human Advancement™

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

/ Forward-Looking Information

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

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

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

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

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

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

ANSS-F

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

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

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

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

Source: GlobeNewswire (MIL-OSI)

2024 Fourth Quarter Financial Highlights:

Total assets were $186.9 million at year end.
Net interest income of $1.00 million for the fourth quarter.
Net interest margin of 2.30% for the fourth quarter and 2.36% for the year.
Total deposits increased 3% to $145.8 million at December 31, 2024, compared to $142.2 million a year ago, with non-interest bearing demand deposits representing 25% of total deposits.
Net loans were $141.6 million at December 31, 2024, compared to $142.8 million a year ago.
Asset quality remains pristine.
Tangible book value per share increased to $7.80 at year end, compared to $7.58 a year ago.

POULSBO, Wash., Feb. 19, 2025 (GLOBE NEWSWIRE) — Liberty Northwest Bancorp, Inc. (OTCQX: LBNW) (the “Company”) and its wholly-owned subsidiary Liberty Bank today announced a net loss of $43 thousand for the fourth quarter ended December 31, 2024. This compared to net income of $25 thousand for the third quarter ended September 30, 2024, and $1 thousand for the fourth quarter ended December 31, 2023. For the twelve months ended December 31, 2024, net income was $3 thousand, compared to $35 thousand the same period in 2023.

Total assets were $186.9 million as of December 31, 2024, compared to $184.7 million at December 31, 2023. Net loans totaled $141.6 million as of December 31, 2024, a 1% increase compared to $140.0 million at September 30, 2024, and a 1% decrease compared to $142.8 million a year ago. Loan demand was muted during the quarter largely due to the elevated interest rate environment.

Asset quality remained pristine during the fourth quarter. The allowance for credit losses totaled $1.16 million as of December 31, 2024, and was 0.81% of total loans outstanding. The Company recorded net loan recoveries of $31 thousand during the quarter. The Company has one non-performing loan of $235 thousand as of December 31, 2024.

Due to strong credit quality metrics and muted loan growth, the Company recorded a $40 thousand reversal to its provision for credit losses in the fourth quarter of 2024. This compared to a $95 thousand reversal to its provision for credit losses in the third quarter of 2024 and a $60 thousand reversal to its provision for credit losses in the fourth quarter of 2023.

Total deposits increased 3% to $145.8 million at December 31, 2024, compared to $142.2 million at December 31, 2023, and decreased modestly compared to $146.4 million three months earlier. Non-interest bearing demand accounts represented 25%, interest bearing demand represented 30%, money market and savings accounts comprised 18%, and certificates of deposit made up 27% of the total deposit portfolio at December 31, 2024.

“The vibrant Pacific Northwest markets that we operate in continue to fuel our deposit base and loan pipeline,” said Rick Darrow, Liberty Northwest Bancorp, Inc. President and Chief Executive Officer. “During the fourth quarter, loan growth moderated, as we remain selective with the loans we are putting on the balance sheet. As we look to 2025, we anticipate an increase in growth opportunities, especially if interest rates continue to stabilize.

“The challenging interest rate environment continues to impact net interest income growth with higher interest expense on deposits and borrowings, which affected our operating performance for the fourth quarter of 2024,” said Darrow. Net interest income, before the provision for loan losses, was $1.00 million for the fourth quarter of 2024, compared to $1.07 million in the fourth quarter of 2023. For the year, net interest income was $4.11 million, compared to $4.44 million for 2023.

“While our yields on earning assets remained stable during the quarter, they were more than offset by the increase in cost of funds, resulting in net interest margin compression during the quarter,” said Darrow. The Company’s net interest margin was 2.30% for the fourth quarter of 2024, compared to 2.37% for the preceding quarter, and 2.48% for the fourth quarter of 2023. For the full year 2024, the net interest margin was 2.36%, compared to 2.59% for 2023.

Total non-interest income increased 6% to $82 thousand for the fourth quarter of 2024, compared to $78 thousand for the fourth quarter a year ago. For the year, non-interest income was $308 thousand, compared to $449 thousand for 2023. The decrease in 2024 compared to the prior year was primarily due to higher referral fee income earned in 2023.

Total noninterest expense was $1.18 million for the fourth quarter of 2024, a decrease of $43 thousand, or 3%, from the fourth quarter a year ago. Compensation and benefits costs decreased by $55 thousand, or 8%, over the year ago quarter, while occupancy costs decreased by $51 thousand, or 34% from the same quarter a year ago. For the year, total noninterest expense decreased $275 thousand, or 6%, to $4.68 million, over 2023.

“We remain focused on enhancing revenue generation and driving cost efficiencies to improve our operational effectiveness,” said Darrow. “Our operating performance is expected to continue to improve, as we improve our margin, while keeping operating expenses in line. We are well positioned for continued growth in our core business operations and remain focused on creating value for all of our customers, employees and shareholders.”

Capital ratios continue to exceed regulatory requirements, with a total risk-based capital ratio at 15.81% at December 31, 2024, substantially above well-capitalized regulatory requirements. The tangible book value per share was $7.80 at year end, compared to $7.58 a year earlier.

Near the end of the second quarter of 2024, the Company completed the issuance of $1.2 million of Preferred Stock. Under the terms of the transaction, the Preferred Stock will convert to Common Stock within a 2 year time period.

“We are deploying the proceeds from this offering to further strengthen our capital position and to support continued loan growth in our vibrant Pacific Northwest markets,” said Darrow.

About Liberty Northwest Bancorp, Inc.
Liberty Northwest Bancorp, Inc. is the bank holding company for Liberty Bank, a commercial bank chartered in the State of Washington. The Bank began operations June 11, 2009, and operates a full-service branch in Poulsbo, WA. The Bank provides loan and deposit services to predominantly small and middle-sized businesses and individuals in and around Kitsap and King counties. The Bank is subject to regulation by the State of Washington Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC). For more information, please visit www.libertybanknw.com. Liberty Northwest Bancorp, Inc. (OTCQX: LBNW), qualified to trade on the OTCQX® Best Market in June 2022. For information related to the trading of LBNW, please visit www.otcmarkets.com.

For further discussion, please contact:
Rick Darrow, Chief Executive Officer | 360-394-4750

Forward-Looking Statement Safe Harbor: This news release contains comments or information that constitutes forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Forward-looking statements describe Liberty Northwest Bancorp, Inc.’s projections, estimates, plans and expectations of future results and can be identified by words such as “believe,” “intend,” “estimate,” “likely,” “anticipate,” “expect,” “looking forward,” and other similar expressions. They are not guarantees of future performance. Actual results may differ materially from the results expressed in these forward-looking statements, which because of their forward-looking nature, are difficult to predict. Investors should not place undue reliance on any forward-looking statement, and should consider factors that might cause differences including but not limited to the degree of competition by traditional and nontraditional competitors, declines in real estate markets, an increase in unemployment or sustained high levels of unemployment; changes in interest rates; greater than expected costs to integrate acquisitions, adverse changes in local, national and international economies; changes in the Federal Reserve’s actions that affect monetary and fiscal policies; changes in legislative or regulatory actions or reform, including without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act; demand for products and services; changes to the quality of the loan portfolio and our ability to succeed in our problem-asset resolution efforts; the impact of technological advances; changes in tax laws; and other risk factors. Liberty Northwest Bancorp, Inc. undertakes no obligation to publicly update or clarify any forward-looking statement to reflect the impact of events or circumstances that may arise after the date of this release.

STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands)
		Quarter Ended Dec 31, 2024			Quarter Ended Sept 30, 2024			Three Month Change		Quarter Ended Dec 31, 2023			Quarter over Quarter – One Year Change		Year to Date Dec 31, 2024			Year to Date Dec 30, 2023			One Year Change
Interest Income
	Loans	$	1,932		$	1,994		-3	%	$	1,890		2	%	$	7,807		$	7,173		9	%
	Interest bearing deposits in banks		142			83		70	%		101		41	%		365			323		13	%
	Securities		108			114		-5	%		140		-23	%		461			483		-5	%
	Total interest income		2,182			2,192		-0	%		2,112		3	%		8,632			7,979		8	%

Interest Expense
	Deposits		928			903		3	%		656		41	%		3,298			2,141		54	%
	Other Borrowings		252			283		-11	%		384		-34	%		1,226			1,396		-12	%
	Total interest expense		1,179			1,186		-1	%		1,040		13	%		4,524			3,537		28	%

Net Interest Income			1,003			1,005		-0	%		1,072		-7	%		4,109			4,442		-8	%
	Provision for Loan Losses		(40	)		(95	)	-58	%		(60	)	-33	%		(265	)		(105	)	152	%
Net interest income after provision for loan losses			1,043			1,100		-5	%		1,132		-8	%		4,374			4,547		-4	%

Non-Interest Income
	Service charges on deposit accounts		28			28		-0	%		17		61	%		104			67		55	%
	Other non-interest income		55			46		19	%		61		-10	%		204			382		-47	%
	Total non-interest income		82			74		12	%		78		6	%		308			449		-31	%

Non-Interest Expense
	Salaries and employee benefits		650			668		-3	%		705		-8	%		2,596			2,854		-9	%
	Occupancy and equipment expenses		100			88		14	%		151		-34	%		429			595		-28	%
	Other operating expenses		429			387		11	%		367		17	%		1,652			1,503		10	%
	Total non-interest expenses		1,180			1,143		3	%		1,223		-3	%		4,677			4,952		-6	%

Net Income Before Income Tax			(55	)		31		-275	%		2		-3027	%		4			44		-90	%
Provision for Income Tax			(12	)		7		-275	%		0		-3027	%		1			9		-90	%
Net Income			(43	)	$	25		-275	%	$	1		-3027	%	$	3		$	35		-90	%

BALANCE SHEETS (Unaudited)
(Dollars in thousands)
		Dec 31, 2024			Sept 30, 2024			Three Month Change		Dec 31, 2023			One Year Change
Assets
	Cash and due from Banks	$	1,655		$	2,408		-31	%	$	1,817		-9	%
	Interest bearing deposits in banks		14,341			11,262		27	%		7,896		82	%
	Securities		20,586			21,225		-3	%		23,034		-11	%

	Loans		142,720			141,206		1	%		143,913		-1	%
	Allowance for loan losses		(1,158	)		(1,167	)	-1	%		(1,150	)	1	%
	Net Loans		141,561			140,038		1	%		142,763		-1	%

	Premises and fixed assets		6,101			6,161		-1	%		6,418		-5	%
	Accrued Interest receivable		681			668		2	%		765		-11	%
	Intangible assets		11			19		-43	%		39		-72	%
	Other assets		1,949			2,262		21	%		1,992		-2	%

	Total Assets	$	186,884		$	183,678		2	%	$	184,724		1	%


Liabilities and Shareholders’ Equity
	Deposits
	Demand, non-interest bearing	$	35,845		$	39,669		-10	%	$	42,803		-16	%
	Interest Bearing Demand		44,149			40,764		8	%		23,528		88	%
	Money Market and Savings		26,495			27,419		-3	%		26,667		-1	%
	Certificates of Deposit		39,345			38,507		2	%		49,200		-20	%
	Total Deposits		145,833			146,359		-0	%		142,198		3	%

	Total Borrowing		26,461			22,454		18	%		29,430		-10	%
	Accrued interest payable		173			238		-27	%		335		-48	%
	Other liabilities		286			704		133	%		214		34	%
	Total Liabilities		172,753			169,756		2	%		172,177		0	%

	Shareholders’ Equity
	Preferred Stock		1,242			1,242		0	%				***
	Common Stock		1,656			1,650		0	%		1,650		0	%
	Additional paid in capital		13,149			13,138		0	%		13,108		0	%
	Retained Earnings		(1,490	)		(1,447	)	-3	%		(1,493	)	0	%
	Other Comprehensive Income		(426	)		(661	)	36	%		(718	)	41	%
	Total Shareholders’ Equity		14,131			13,922		1	%		12,547		13	%
	Total Liabilities and Shareholders’ Equity	$	186,884		$	183,678		2	%	$	184,724		1	%

		Quarter Ended Dec 31, 2024			Quarter Ended Sept 30, 2024			Quarter Ended Dec 31, 2023			YTD 2024			YTD 2023
Financial Ratios
	Return on Average Assets		-0.09	%		0.06	%		0.00	%		0.00	%		0.02	%
	Return on Average Equity		-1.23	%		0.70	%		0.03	%		0.03	%		0.28	%
	Efficiency Ratio		108.7	%		105.9	%		106.4	%		105.9	%		101.2	%
	Net Interest Margin		2.30	%		2.37	%		2.48	%		2.36	%		2.59	%
	Loan to Deposits		97.9	%		96.5	%		101.2	%

	Tangible Book Value per Share	$	7.80		$	7.67		$	7.58
	Book Value per Share	$	7.81		$	7.68		$	7.60
	Earnings per Share	$	(0.03	)	$	0.01		$	–		$	0.03		$	0.02

	Asset Quality
	Net Loan Charge-offs (recoveries)	$	(31	)	$	4		$	–
	Nonperforming Loans	$	235		$	235		$	–
	Nonperforming Assets to Total Assets		0.13	%		0.13	%		0.00	%
	Allowance for Loan Losses to Total Loans		0.81	%		0.83	%		0.80	%
	Other Real Estate Owned		–			–			–

	CAPITAL (Bank only)
	Tier 1 leverage ratio		9.98	%		10.23	%		9.56	%
	Tier 1 risk-based capital ratio		14.87	%		15.00	%		14.16	%
	Total risk based capital ratio		15.81	%		15.97	%		15.09	%

Source: US State of Hawaii

Posted on Feb 18, 2025 in Latest Department News, Newsroom

STATE OF HAWAIʻI

KA MOKU ʻĀINA O HAWAIʻI

DEPARTMENT OF LAND AND NATURAL RESOURCES

KA ‘OIHANA KUMUWAIWAI ‘ĀINA

JOSH GREEN, M.D.
GOVERNOR

DAWN CHANG
CHAIRPERSON

COMMUNITY-BUILT COMFORT STATION AT HĀ‘ENA STATE PARK GETS LAND BOARD APPROVAL

FOR IMMEDIATE RELEASE

Feb. 15, 2025

HĀ‘ENA, Kauaʻi – The state Board of Land and Natural Resources (BLNR) Friday gave approval to Hui Makaʻāinana o Makana (Hui), the nonprofit steward of Hā‘ena State Park, for the construction of a comfort station and septic system improvements at the popular park.

The Hui, chartered in 1999, has an ‘aina-based mission dedicated to perpetuating and protecting the natural and cultural resources of Hā‘ena State Park. It was the driving force behind the establishment of the first Community-Based Subsistence Fishing Area (CBSFA) in Hawai‘i, and continues working closely with the DLNR Division of Aquatic Resources (DAR) in its ongoing management.

The comfort station project is being done under the auspices of the DLNR Division of State Parks (DSP) and is the first of its kind, where a nonprofit community group has not only led the design and planning process but is paying for the entire capital improvement project with non-government funding.

The Hui and its nonprofit partner, The Hanalei Initiative, operate the parking and shuttle system at the park. Over the past four years, operating revenues have been set aside for the construction of the new comfort station in the parking lot where visitors and residents arrive.

This strategic location will not impact any cultural sites in the park, and it will reduce the dependence on the only existing bathroom in the park by Kē‘ē Beach and the Kalalau Trailhead. This is an environmentally and culturally sensitive area.

This unprecedented project is not only important to the Hā‘ena community, it is leading the way for a transformation within DLNR and the Division of State Parks (DSP), which are looking to partner with additional community groups to better care for special areas across the state.

DSP Administrator Curt Cottrell said, “Over the years, many people have commented on the lack of restroom facilities at the parking lot. It’s a five-to-15-minute walk to the comfort station near the beach. Moreover, the new station should reduce the number of people who head into the trees to relieve themselves, which will help protect the natural and cultural resources of Hā‘ena.

While the number of parking spots will be reduced during construction, it’s anticipated to residents and visitors can be accommodated via the modified parking plan and increased shuttle capacity.

Hui Makaʻāinana o Makana intends to turn ownership of any newly constructed improvements over to the state upon completion.

# # #

RESOURCES

(All images/video Courtesy: DLNR)

HD video – Relief for Hā‘ena State Park Visitors (web feature):

[embedded content]

HD video – Hā‘ena State Park media clips (Jan. 14, 2025):

https://www.dropbox.com/scl/fi/htraezmi2067tyk6iajd1/Ha-ena-State-Park-New-Comfort-Station-media-clips-Jan.-14-2025.mov?rlkey=q898ya935x9nc2pvkg3m7u4w2&st=gs8t6uqg&dl=0

(Shot sheet attached)

HD video – Hā‘ena State Park comfort station SOTS (Jan. 14, 2025):

https://www.dropbox.com/scl/fi/x2f8u3hr6a7t6i41whd00/Ha-ena-State-Park-SOTS-Jan.-14-2025.mov?rlkey=wo0gh9wiwyozwjln1hbt7ppsm&st=04njmikc&dl=0

(Interview transcription attached)

Photographs – Hā‘ena State Park (Jan. 14, 2025):

https://www.dropbox.com/scl/fo/owgz3yvqfm1xb7i68hyth/AMOF8WiKRAyYefb15jVx9XI?rlkey=a60qfev7u84shzwse10pqzjpb&st=rfzjboa1&dl=0

Media Contact:

Dan Dennison

Communications Director

Hawai‘i Dept. of Land and Natural Resources

808-587-0396

[email protected]

MIL OSI USA News –

Source: GlobeNewswire (MIL-OSI)

PETAH-TIKVA, Israel, Feb. 19, 2025 (GLOBE NEWSWIRE) — Global-e Online Ltd. (Nasdaq: GLBE) the platform powering global direct-to-consumer e-commerce, today reported financial results for the fourth quarter of 2024 and full year 2024.

“2024 was yet another record-breaking year for Global-e, and it came to a great close with a fourth quarter which was our strongest quarter ever, as we continued to execute on our strategy and further solidify Global-e’s leadership position in the global e-commerce space,” said Amir Schlachet, Founder and CEO of Global-e. “In addition, we achieved two important financial milestones during the quarter. For the first time in our journey, we crossed the 20% Adjusted EBITDA Margin mark, which was the long-term target we set for ourselves at the IPO, and we reached GAAP profitability for the first time as a public company; a testament to our relentless focus on delivering fast yet durable growth.”

“As we head into 2025, we remain as committed as ever to continue on our growth path, deliver more cutting-edge and market-leading solutions to our merchants and seize more and more of the great opportunities that lie ahead of us in the world of global e-commerce. In 2025, we also expect to achieve three additional key financial milestones: surpass the 20% Adjusted EBITDA Margin mark on a full year basis, achieve annual GAAP profitability, and most importantly, for the first time, cross an annual run-rate of $1 billion in Revenues.”

Q4 2024 Financial Results

GMV¹ in the fourth quarter of 2024 was $1,713 million, an increase of 44% year over year
Revenue in the fourth quarter of 2024 was $262.9 million, an increase of 42% year over year, of which service fees revenue was $117.3 million and fulfillment services revenue was $145.6 million
Non-GAAP gross profit² in the fourth quarter of 2024 was $120.9 million, an increase of 53% year over year. GAAP gross profit in the fourth quarter of 2024 was $118.7 million
Non-GAAP gross margin² in the fourth quarter of 2024 was 46%, an increase of 330 basis points from 42.7% in the fourth quarter of 2023. GAAP gross margin in the fourth quarter of 2024 was 45.1%
Adjusted EBITDA³ in the fourth quarter of 2024 was $57.1 million compared to $35.2 million in the fourth quarter of 2023, an increase of 62% year over year
Net profit in the fourth quarter of 2024 was $1.5 million
Net cash provided by operating activities in the fourth quarter of 2024 was $129.3 million, while capital expenditures totaled $0.5 million, leading to free cash flow of $128.8 million

FY 2024 Financial Results

GMV¹ for the full year was $4,858 million, an increase of 37% year over year
Revenue for the full year was $752.8 million, an increase of 32% year over year, of which service fees revenue was $350.3 million and fulfillment services revenue was $402.5 million
Non-GAAP gross profit² for the full year was $349.4 million, an increase of 43% year over year. GAAP gross profit for the full year was $339.4 million
Non-GAAP gross margin² for the full year was 46.4%, an increase of 350 basis points from 42.9% in 2023. GAAP gross margin for the full year was 45.1%
Adjusted EBITDA³ for the full year was $140.8 million compared to $92.7 million in 2023, an increase of 51.8% year over year
Net loss for the full year was $75.5 million
Net cash provided by operating activities in the full year was $169.4 million, while capital expenditures totaled $2.3 million, leading to free cash flow of $167.1 million

Recent Business Highlights

Throughout 2024, our existing merchant base continued to stay and grow with us, as reflected in our annual enterprise NDR rate of 119% and GDR rate of 93.5%. GDR and NDR were negatively impacted by the out of the ordinary bankruptcy of Ted Baker and by several Borderfree merchants that chose not to re-platform to the Global-e platform. NDR and GDR excluding the out of the ordinary churn for 2024 is close to 123% and 97%, respectively
Recently launched with Logitech, one of the world’s largest and most innovative providers of computer peripherals and input devices, gaming accessories, audio and video gear and smart home device
On-boarded many additional new merchants located around the globe and trading in various verticals, including:
- North America – shapewear brand Spanx, Thursday Boots, and the web store of famous fashion designer Tom Ford
- UK and Europe – Spanish brand Tous, Italian fashion brand Slowear, UK footwear brand Phoebe Philo, German brand IvyOak, Swiss running gear brand Compressport, famous Austrian lingerie brand Triumph, French brands ZAPA and MOLLI, and the Finish brand HURTTA
- APAC – Japanese brands Komehyo, one of Japan’s largest retailers of second-hand goods, Kyoto-based wristwatch brand Kuoe, novelty brands Mofusand and Taito, and the tailored shirt brand Kamakura Shirts, as well as the renowned Korean cosmetics brand Depology, and Australian fashion brands Zoe Kratzmann and SECONDLEFT
Expanded to new lanes with existing merchants – added Romania and Croatia to the markets we operate for Adidas, went live with a new outlet site for John Smedley, and added Strellson, the third brand to go live with us out of the Swiss Holy Fashion Group
Shopify Managed Markets – continued joint work with Shopify to add new features and functionalities to the Managed Markets offering, aimed at making it applicable to a wider range of merchants on the Shopify platform

Q1 2025 and Full Year Outlook

Global-e is introducing first quarter and full year guidance as follows:

	Q12025	FY 2025
	(in millions)
GMV⁽¹⁾	$1,210 – $1,250	$6,190 – $6,490
Revenue	$184.5 – $191.5	$917 – $967
Adjusted EBITDA⁽³⁾	$29.5 – $33.5	$179 – $199

¹ Gross Merchandise Value (GMV) is a key operating metric. See “Non-GAAP Financial Measures and Key Operating Metrics” for additional information regarding this metric.
² Non-GAAP Gross profit and Non-GAAP gross margin are non-GAAP financial measures. See “Non-GAAP Financial Measures and Key Operating Metrics” for additional information regarding this metric.
³ Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information regarding this metric, including the reconciliations to Operating Profit (Loss), its most directly comparable GAAP financial measure. The Company is unable to provide a reconciliation of Adjusted EBITDA to Operating Profit (Loss), its most directly comparable GAAP financial measure, on a forward-looking basis without unreasonable effort because items that impact this GAAP financial measure are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, share-based compensation expenses. Such information may have a significant, and potentially unpredictable impact on the Company’s future financial results.

Conference Call Information

Global-e will host a conference call at 8:00 a.m. ET on Wednesday, February 19, 2025.
The call will be available, live, to interested parties by dialing:

United States/Canada Toll Free:	1-800-717-1738
International Toll:	1-646-307-1865

A live webcast will also be available in the Investor Relations section of Global-e’s website at: https://investors.global-e.com/news-events/events-presentations

Approximately two hours after completion of the live call, an archived version of the webcast will be available on the Investor Relations section of the Company’s web site and will remain available for approximately 30 calendar days.

Non-GAAP Financial Measures and Key Operating Metrics

To supplement Global-e’s financial information presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, Global-e considers certain financial measures and key performance metrics that are not prepared in accordance with GAAP including:

Non-GAAP gross profit, which Global-e defines as gross profit adjusted for amortization of acquired intangibles. Non-GAAP gross margin is calculated as Non-GAAP gross profit divided by revenues
Adjusted EBITDA, which Global-e defines as operating profit (loss) adjusted for stock-based compensation expenses, depreciation and amortization, commercial agreements amortization, amortization of acquired intangibles and merger related contingent consideration.
Free cash flow, which Global-e defines as net cash provided by operating activities less purchase of property and equipment.

Global-e also uses Gross Merchandise Value (GMV) as a key operating metric. Gross Merchandise Value or GMV is defined as the combined amount we collect from the shopper and the merchant for all components of a given transaction, including products, duties and taxes and shipping.

The aforementioned key performance indicators and non-GAAP financial measures are used, in conjunction with GAAP measures, by management and our board of directors to assess our performance, including the preparation of Global-e’s annual operating budget and quarterly forecasts, for financial and operational decision-making, to evaluate the effectiveness of Global-e’s business strategies, and as a means to evaluate period-to-period comparisons. These measures are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We believe that these non-GAAP financial measures are appropriate measures of operating performance because they remove the impact of certain items that we believe do not directly reflect our core operations, and permit investors to view performance using the same tools that we use to budget, forecast, make operating and strategic decisions, and evaluate historical performance.

Global-e’s definition of Non-GAAP measures may differ from the definition used by other companies and therefore comparability may be limited. In addition, other companies may not publish these metrics or similar metrics. Furthermore, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Thus, Non-GAAP measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.

For more information on the non-GAAP financial measures, please see the reconciliation tables provided below. The accompanying reconciliation tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.

Cautionary Note Regarding Forward Looking Statements

This press release contains estimates and forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements as contained in 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”). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our future strategy and projected revenue, GMV, Adjusted EBITDA and other future financial and operational results, growth strategy and plans and objectives of management for future operations, including, among others, expansion in new and existing markets, the launch of large enterprise merchants, and our ongoing partnership with Shopify, are forward-looking statements. As the words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “target,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible” or the negative of these terms or other similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Global-e believes there is a reasonable basis for its expectations and beliefs, but they are inherently uncertain. Many factors could cause actual future events to differ materially from the forward-looking statements in this announcement, including but not limited to, our rapid growth and growth rates in recent periods may not be indicative of future growth; the ability to retain merchants or the GMV generated by such merchants; the ability to retain existing, and attract new merchants; our business acquisitions and ability to effectively integrate acquired businesses; our ability to anticipate merchant needs or develop or acquire new functionality or enhance our existing platforms to meet those needs; our ability to implement and use artificial intelligence and machine learning technologies successfully; our ability to compete in our industry; our reliance on third-parties, including our ability to realize the benefits of any strategic alliances, joint ventures, or partnership arrangements and to integrate our platforms with third-party platforms; our ability to develop or maintain the functionality of our platforms, including real or perceived errors, failures, vulnerabilities, or bugs in our platforms; our history of net losses; our ability to manage our growth and manage expansion into additional markets; increased attention to ESG matters and our ability to manage such matters; our ability to accommodate increased volumes during peak seasons and events; our ability to effectively expand our marketing and sales capabilities; our expectations regarding our revenue, expenses and operations; our ability to operate internationally; our reliance on third-party services, including third-party providers of cross-docking services and third-party data centers, in our platforms and services and harm to our reputation by our merchants’ or third-party service providers’ unethical business practices; our ability to adapt to changes in mobile devices, systems, applications, or web browsers that may degrade the functionality of our platforms; our operation as a merchant of record for sales conducted using our platform; regulatory requirements and additional fees related to payment transactions through our e-commerce platforms could be costly and difficult to comply with; compliance and third-party risks related to anti-money laundering, anti-corruption, anti-bribery, regulations, economic sanctions and export control laws and import regulations and restrictions; our business’s reliance on the personal importation model; our ability to securely store personal information of merchants and shoppers; increases in shipping rates; fluctuations in the exchange rate of foreign currencies has impacted and could continue to impact our results of operations; our ability to offer high quality support; our ability to expand the number of merchants using our platforms and increase our GMV and to enhance our reputation and awareness of our platforms; our dependency on the continued use of the internet for commerce; our ability to adapt to emerging or evolving regulatory developments, changing laws, regulations, standards and technological changes related to privacy, data protection, data security and machine learning technology and generative artificial intelligence evolves; the effect of the situation in Ukraine on our business, financial condition and results of operations; our role in the fulfilment chain of the merchants, which may cause third parties to confuse us with the merchants; our ability to establish and protect intellectual property rights; and our use of open-source software which may pose particular risks to our proprietary software technologies; our dependency on our executive officers and other key employees and our ability to hire and retain skilled key personnel, including our ability to enforce non-compete agreements we enter into with our employees; litigation for a variety of claims which we may be subject to; the adoption by merchants of a direct to consumer model; our anticipated cash needs and our estimates regarding our capital requirements and our needs for additional financing; our ability to maintain our corporate culture; our ability to maintain an effective system of disclosure controls and internal control over financial reporting; our ability to accurately estimate judgments relating to our critical accounting policies; changes in tax laws or regulations to which we are subject, including the enactment of legislation implementing changes in taxation of international business activities and the adoption of other corporate tax reform policies; requirements to collect sales or other taxes relating to the use of our platforms and services in jurisdictions where we have not historically done so; global events such as war, health pandemics, climate change, macroeconomic events and the recent economic slowdown; risks relating to our ordinary shares, including our share price, the concentration of our share ownership with insiders, our status as a foreign private issuer, provisions of Israeli law and our amended and restated articles of association and actions of activist shareholders; risks related to our incorporation and location in Israel, including risks related to the ongoing war and related hostilities; and the other risks and uncertainties described in Global-e’s Annual Report on Form 20-F for the year ended December 31, 2023, filed with the SEC on March 28, 2024 and other documents filed with or furnished by Global-e from time to time with the Securities and Exchange Commission (the “SEC”). The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.

About Global-E Online Ltd.

Global-e (Nasdaq: GLBE) is the world’s leading platform enabling and accelerating global, Direct-To-Consumer e-commerce. The chosen partner of over 1,000 brands and retailers across the United States, EMEA and APAC, Global-e makes selling internationally as simple as selling domestically. The company enables merchants to increase the conversion of international traffic into sales by offering online shoppers in over 200 destinations worldwide a seamless, localized shopping experience. Global-e’s end-to-end e-commerce solutions combine best-in-class localization capabilities, big-data best-practice business intelligence models, streamlined international logistics and vast global e-commerce experience, enabling international shoppers to buy seamlessly online and retailers to sell to, and from, anywhere in the world. For more information, please visit: www.global-e.com.

Investor Contact:
Erica Mannion or Mike Funari
Sapphire Investor Relations, LLC
IR@global-e.com
+1 617-542-6180

Press Contact:
Sarah Schloss
Headline Media
Globale@headline.media
+1 786-233-7684

Global-E Online Ltd. CONSOLIDATED BALANCE SHEETS (In thousands)
	Period Ended
	December 31,			December 31,
	2023			2024
				(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	200,081		$	250,773
Short-term deposits		96,939			187,322
Accounts receivable, net		27,841			41,171
Prepaid expenses and other current assets		63,967			84,613
Marketable securities		20,403			36,345
Funds receivable, including cash in banks		111,232			122,984
Total current assets		520,463			723,208
Property and equipment, net		10,236			10,440
Operating lease right-of-use assets		23,052			24,429
Long term deposits		3,552			3,786
Deferred contract acquisition costs, noncurrent		2,668			3,787
Other assets, noncurrent		4,078			4,527
Commercial agreement asset	192,721				66,527
Goodwill		367,566			367,566
Intangible assets		78,024			59,212
Total long-term assets		681,897			540,274
Total assets	$	1,202,360		$	1,263,482
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	50,943		$	79,559
Accrued expenses and other current liabilities		107,306			141,551
Funds payable to Customers		111,232			122,984
Short term operating lease liabilities		4,031			4,347
Total current liabilities		273,512			348,441
Long-term liabilities:
Deferred tax liabilities		6,507			–
Long term operating lease liabilities		19,291			20,510
Other long-term liabilities		1,071			1,098
Total liabilities	$	300,381		$	370,049

Shareholders’ deficit:
Share capital and additional paid-in capital		1,360,250			1,425,317
Accumulated comprehensive income		(1,420	)		515
Accumulated deficit		(456,851	)		(532,399	)
Total shareholders’ (deficit) equity		901,979			893,433
Total liabilities and shareholders’ equity	$	1,202,360		$	1,263,482

Global-E Online Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data)
	Three Months Ended						Year Ended
	December 31,						December 31,
	2023			2024			2023			2024
	(Unaudited)										(Unaudited)
Revenue	$	185,401		$	262,912		$	569,946		$	752,764
Cost of revenue		109,080			144,253			336,343			413,331
Gross profit		76,321			118,659			233,603			339,433

Operating expenses:
Research and development		25,169			28,284			97,568			105,487
Sales and marketing		58,756			70,936			217,035			250,661
General and administrative		15,451			14,257			56,059			51,213
Total operating expenses, net		99,376			113,477			370,662			407,361
Operating profit (loss)		(23,055	)		5,182			(137,059	)		(67,928	)
Financial expenses (income), net		(5,010	)		6,073			(5,262	)		11,465
Loss before income taxes		(18,045	)		(891	)		(131,797	)		(79,393	)
Income tax (benefit) expenses		4,055			(2,400	)		2,008			(3,845	)
Net profit (loss) attributable to ordinary shareholders	$	(22,100	)	$	1,509		$	(133,805	)	$	(75,548	)
Net profit (loss) per share attributable to ordinary shareholders, basic	$	(0.13	)	$	0.01		$	(0.81	)	$	(0.45	)
Net profit (loss) per share attributable to ordinary shareholders, diluted	$	(0.13	)	$	0.01		$	(0.81	)	$	(0.45	)
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic		165,626,904			168,419,800			164,353,909			167,323,350
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, diluted		165,626,904			175,674,929			164,353,909			167,323,350

Global-E Online Ltd. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
	Three Months Ended						Year Ended
	December 31,						December 31,
	2023			2024			2023					2024
	(Unaudited)											(Unaudited)
Operating activities
Net profit (loss)	$	(22,100	)	$	1,509		$		(133,805	)		$	(75,548		)
Adjustments to reconcile net profit (loss) to net cash provided by operating activities:
Depreciation and amortization		489			547				1,788				2,131
Share-based compensation expenses		12,180			9,538				44,960				39,158
Commercial agreement asset		37,433			37,433				150,451				148,594
Amortization of intangible assets		5,091			4,402				20,434				18,812
Unrealized loss (gain) on foreign currency		(3,011	)		3,554				(1,901	)			4,468
Changes in accrued interest and exchange rate on short-term deposits		72			(1,373	)			(416	)			(1,329		)
Changes in accrued interest and exchange rate on long-term deposits		(144	)		364				(255	)			200
Accounts receivable		(14,390	)		15,925				(11,417	)			(13,330		)
Prepaid expenses and other assets		61			(24,164	)			(11,736	)			(18,019		)
Funds receivable		(9,038	)		8,726				(11,074	)			(3,205		)
Long-term receivables		(1,497	)		51				(339	)		551
Funds payable to customers		40,817			2,564				33,107				11,752
Operating lease ROU assets		786			991				3,230				3,691
Deferred contract acquisition costs		(772	)		(322	)			(1,207	)			(1,382		)
Accounts payable		18,438			37,176				(1,277	)			28,617
Accrued expenses and other liabilities		25,345			35,945				30,625				34,272
Deferred taxes		3,635			(2,592	)			120				(6,507		)
Operating lease liabilities		99			(987	)			(3,067	)			(3,533		)
Net cash provided by operating activities		93,494			129,287				108,222				169,393
Investing activities
Investment in marketable securities		(851	)		(18,331	)			(3,728	)			(21,128		)
Proceeds from marketable securities	–				2,028			671						4,988
Investment in short-term deposits		(43,250	)		(77,848	)			(175,237	)			(269,601		)
Proceeds from short-term deposits		34,318			22,298				125,068				180,548
Purchases of long-term investments		(4	)		(307	)			(82	)			(1,459		)
Proceeds from long-term deposits		10			24				10				24
Purchases of property and equipment		(926	)		(482	)			(1,741)				(2,335		)
Net cash used in investing activities		(10,703	)		(72,618	)			(55,039	)			(108,963		)
Financing activities
Proceeds from exercise of Warrants to ordinary shares		–		3					22		5
Proceeds from exercise of share options		244			1,632				1,969				3,271
Net cash provided by financing activities		244			1,635				1,991				3,276
Exchange rate differences on balances of cash, cash equivalents and restricted cash		3,011			(3,554	)			1,901				(4,468		)
Net Increase in cash, cash equivalents, and restricted cash		86,046			54,750				57,075				59,238
Cash and cash equivalents and restricted cash—beginning of period		182,551			273,086				211,522				268,597
Cash and cash equivalents and restricted cash—end of period	$	268,597		$	327,835		$		268,597			$	327,835

Global-E Online Ltd. SELECTED OTHER DATA (In thousands)
	Three Months Ended									Year Ended
	December 31,									December 31,
	2023					2024				2023					2024
	(Unaudited)									(Unaudited)
Key performance metrics
Gross Merchandise Value		1,189,467					1,712,903				3,557,444					4,857,970
Adjusted EBITDA (a)		35,178					57,102				92,735					140,767

Revenue by Category
Service fees		89,936		49	%		117,268	45	%		262,255		46	%		350,311	47	%
Fulfillment services		95,465		51	%		145,644	55	%		307,692		54	%		402,453	53	%
Total revenue	$	185,401		100	%	$	262,912	100	%	$	569,946		100	%	$	752,764	100	%

Revenue by merchant outbound region
United States		94,887		51	%		146,250	56	%		285,619		50	%		399,596	53	%
United Kingdom		54,962		30	%		55,807	21	%		173,584		30	%		182,904	24	%
European Union		29,421		16	%		44,469	17	%		92,566		16	%		125,547	17	%
Israel		479		0	%		1,671	1	%		1,806		0	%		2,746	0	%
Other	5,652		3		%		14,715	5	%	16,371		3		%		41,971	6	%
Total revenue	$	185,401		100	%	$	262,912	100	%	$	569,946		100	%	$	752,764	100	%

(a) See reconciliation to adjusted EBITDA table

Global-E Online Ltd. RECONCILIATION TO Non-GAAP GROSS PROFIT (In thousands)
		Three Months Ended				Year Ended
		December 31,				December 31,
		2023		2024		2023		2024
	(Unaudited)
Gross Profit			76,321		118,659		233,603		339,433

Amortization of acquired intangibles included in cost of revenue			2,796		2,198		11,183		9,994
Non-GAAP gross profit			79,117		120,857		244,786		349,427

Global-E Online Ltd. RECONCILIATION TO ADJUSTED EBITDA (In thousands)
	Three Months Ended					Year Ended
	December 31,					December 31,
	2023			2024		2023			2024
	(Unaudited)
Operating profit (loss)		(23,055	)		5,182		(137,059	)		(67,928	)
(1) Stock-based compensation:
Cost of revenue		186			275		639			929
Research and development		6,962			4,153		26,266			17,291
Selling and marketing		1,238			1,528		4,259			5,836
General and administrative		3,794			3,582		13,796			15,102
Total stock-based compensation		12,180			9,538		44,960			39,158

(2) Depreciation and amortization		489			547		1,788			2,131

(3) Commercial agreement asset amortization	37,433				37,433	150,451				148,594

(4) Amortization of acquired intangibles	5,091				4,402	20,434				18,812

(5) Merger related contingent consideration	3,040				–	12,161				–

Adjusted EBITDA		35,178			57,102		92,735			140,767

Global-E Online Ltd. RECONCILIATION TO FREE CASH FLOW (In thousands)
		Three Months Ended						Year Ended
		December 31,						December 31,
		2023			2024			2023			2024
	(Unaudited)
Net cash provided by operating activities			93,434			129,287			108,222			169,393
Less:
Purchase of property and equipment			(926	)		(482	)		(1,741	)		(2,335	)
Free cash flow			92,508			128,805			106,481			167,058

Source: GlobeNewswire (MIL-OSI)

Capping off a year of sustained growth acceleration and stronger than expected FCF generation – surpassing Rule of 40 in 2024 and on track to achieve Rule of 45 in 2025

Culminated a year of accelerated growth and innovation with Q4 bookings of $465 million, up 18% y/y, and Q4 revenue of $460 million, up 14% y/y
- Steady growth acceleration in Self Creators coupled with continued strength in high-growth Partners, demonstrated by Partners revenue growth of 30% y/y in FY2024
- Strong momentum across key product focus areas, including Studio, AI and commerce as well as solid business fundamentals and price increase benefit
Robust growth and a stable operating cost base drove FCF¹ generation to nearly double in 2024 compared to previous year, resulting in continued profitability improvement with Q4 FCF margin of 29% and full year FCF¹ margin of 28%
- Achieved first year of positive GAAP operating income in Wix history
On track to achieve Rule of 45 in 2025 at high end of outlook through continued innovation-powered growth and further FCF margin expansion
Completed $200 million share repurchase plan in January, totaling $725 million in aggregate repurchases since August 2023

NEW YORK — Wix.com Ltd. (Nasdaq: WIX), the leading SaaS website builder platform², today reported financial results for the fourth quarter and full year 2024. In addition, the Company provided its initial outlook for the first quarter and full year 2025. Please visit the Wix Investor Relations website at https://investors.wix.com to view the Q4’24 Shareholder Update and other materials.

“Wix sets a high standard for innovation and creativity, and we’re constantly exceeding expectations. This past year was one of exciting innovation as we introduced revolutionary AI solutions such as the new generation AI Website Builder. We also made meaningful enhancements to the Studio platform, including the AI visual sitemap and wireframe generator and Figma integration among new advanced design capabilities,” said Avishai Abrahami, Wix Co-founder and CEO. “2025 is poised to reimagine and expand the Self Creator experience with the launch of two transformative products planned for the spring and early fall. I strongly believe that these will deliver immense value to users and, in turn, accelerate Self Creator growth to double-digits in the years to come. We’re thrilled about these strategic enhancements, which are set to propel our business forward and establish a powerful foundation for the years ahead.”

“We wrapped 2024 with accelerated growth and profitability, driven by successful execution of our product roadmap and pricing strategy as well as strong business fundamentals,” added Lior Shemesh, CFO at Wix. “With AI usage ramping from our growing suite of innovations and Studio continuing to win market share, we anticipate these to be even bigger growth engines in 2025 and beyond. Solid growth will be coupled with incremental efficiencies from new internal AI initiatives and a stable operating base, enabling us to continue to expand margins and set new profitability records. The high end of our outlook puts us at Rule of 45 in 2025 as we continue to prioritize balancing profitable growth through best-in-class innovation and steadfast execution.”

Q4 2024 Financial Results

Total revenue in the fourth quarter of 2024 was $460.5 million, up 14% y/y
- Creative Subscriptions revenue in the fourth quarter of 2024 was $329.7 million, up 11% y/y
- Creative Subscriptions ARR increased to $1.343 billion as of the end of the quarter, up 13% y/y
Business Solutions revenue in the fourth quarter of 2024 was $130.7 million, up 21% y/y
- Transaction revenue³ was $57.1 million, up 23% y/y
Partners revenue⁴ in the fourth quarter of 2024 was $168.1 million, up 29% y/y
Total bookings in the fourth quarter of 2024 were $464.6 million, up 18% y/y
- Total bookings on a y/y constant currency basis were $466.2 million
- Creative Subscriptions bookings in the fourth quarter of 2024 were $325.2 million, up 15% y/y
- Business Solutions bookings in the fourth quarter of 2024 were $139.4 million, up 25% y/y
Total gross margin on a GAAP basis in the fourth quarter of 2024 was 69%
- Creative Subscriptions gross margin on a GAAP basis was 84%
- Business Solutions gross margin on a GAAP basis was 30%
Total non-GAAP gross margin in the fourth quarter of 2024 was 70%
- Creative Subscriptions gross margin on a non-GAAP basis was 85%
- Business Solutions gross margin on a non-GAAP basis was 32%
GAAP net income in the fourth quarter of 2024 was $48.0 million, or $0.86 per basic share or $0.80 per diluted share
Non-GAAP net income in the fourth quarter of 2024 was $117.1 million, or $2.10 per basic share or $1.93 per diluted share
Net cash provided by operating activities for the fourth quarter of 2024 was $133.7 million, while capital expenditures totaled $2.0 million, leading to free cash flow of $131.8 million

FY 2024 Financial Results

Total revenue for the full year 2024 was $1.761 billion, up 13% y/y
- Creative Subscriptions revenue for the full year 2024 was $1.265 billion, up 10% y/y
- Business Solutions revenue for the full year 2024 was $495.7 million, up 21% y/y
  - Transaction revenue³ was $214.9 million, up 21% y/y
Partners revenue⁴ for the full year 2024 was $610.1 million, up 30% y/y
Total bookings for the full year 2024 were $1.830 billion, up 15% y/y
- Creative Subscriptions bookings for the full year 2024 were $1.315 billion, up 12% y/y
- Business Solutions bookings for the full year 2024 were $514.6 million, up 22% y/y
Total gross margin on a GAAP basis for the full year 2024 was 68%
- Creative Subscriptions gross margin on a GAAP basis was 83%
- Business Solutions gross margin on a GAAP basis was 29%
Total non-GAAP gross margin for the full year 2024 was 69%
- Creative Subscriptions gross margin on a non-GAAP basis was 84%
- Business Solutions gross margin on a non-GAAP basis was 30%
GAAP net income for the full year 2024 was $138.3 million, or $2.49 per basic share or $2.36 per diluted share
Non-GAAP net income for the full year 2024 was $383.3 million, or $6.90 per basic share or $6.39 per diluted share
Net cash provided by operating activities for the full year 2024 was $497.4 million, while capital expenditures totaled $19.3 million, leading to free cash flow of $478.1 million
Excluding the capex investment associated with our new headquarters office build out, free cash flow¹ for the full year 2024 would have been $488.4 million, or 28% of revenue
Executed $466 million in repurchases of ordinary shares in 2024 as we remained committed to share count management and returning value to shareholders
Finished full year 2024 with 6.2 million total premium subscriptions as of December 31, 2024
Registered users as of December 31, 2024 were over 282 million
Total employee count as of December 31, 2024 was 5,283

____________________
^{1 Free cash flow excluding expenses associated with the buildout of our new corporate headquarters.}
^{2 Based on number of active live sites as reported by competitors’ figures, independent third-party data and internal data as of Q3 2024.}
^{3 Transaction revenue is a portion of Business Solutions revenue, and we define transaction revenue as all revenue generated through transaction facilitation, primarily from Wix Payments, as well as Wix POS, shipping solutions and multi-channel commerce and gift card solutions.}
^{4 Partners revenue is defined as revenue generated through agencies and freelancers that build sites or applications for other users (“Agencies”) as well as revenue generated through B2B partnerships, such as LegalZoom or Vistaprint (“Resellers”). We identify Agencies using multiple criteria, including but not limited to, the number of sites built, participation in the Wix Partner Program and/or the Wix Marketplace or Wix products used (incl. Wix Studio). Partners revenue includes revenue from both the Creative Subscriptions and Business Solutions businesses.}

Financial Outlook

We expect another year of robust bookings and revenue growth powered by existing key growth initiatives and ongoing product enhancements against a stable and positive demand environment:

With Studio continuing to outperform and AI usage and conversion benefits ramping, we anticipate these initiatives to be even bigger growth engines in 2025
We are continuously testing and rolling out product enhancements as well as new strategic initiatives, which are driving demonstrable added value to users. As a result, we expect incremental ARPS and conversion improvements.
We expect top-line contribution from those enhancements and initiatives already rolled out and underway to layer in as we progress through the year, resulting in accelerated growth in 2H. This acceleration is anticipated for both revenue and bookings, even as bookings fully laps pricing tailwinds in mid-Q1’25.

While confident the new products in our pipeline, particularly the meaningful Self Creator offerings coming this year, will drive medium-term growth, we are incorporating almost no contribution from new products into our 2025 forecast.

As a global company with ~40% of revenue derived in non-US dollar currencies, we began to experience adverse effects from outsized changes in FX rates beginning mid-Q4 and continuing YTD, particularly the US dollar to Euro and British pound exchange rates. Assuming late January spot rates, we anticipate strong FX headwinds to 2025 outlook.

As such, we provide outlook for the year and the first quarter on both as-reported and constant currency bases.

	As-reported	As-reported growth y/y	FX impact	Constant currency growth y/y
Full year 2025
Bookings	$2,025 – 2,060 million	11 – 13%	~$45 million	13 – 15%
Revenue	$1,970 – 2,000 million	12 – 14%	~$34 million	14 – 16%
Free cash flow	$590 – 610 million	30 – 31% margin	~$25 million	31 – 32% margin
Q1’25
Revenue	$469 – 473 million	12 – 13%	~$6 million	13 – 14%

With a meaningful portion of our operating expenses denominated in non-US currencies, the strengthening US dollar is expected to drive a modest benefit to 2025 expenses. As a result, the net FX impact on free cash flow is expected to be smaller than the anticipated top-line headwinds.

We believe our strong commitment to sustained top-line momentum and translating growth into additional operating leverage puts us on track to achieve Rule of 45 in 2025 at the high end of our outlook.

Conference Call and Webcast Information

Wix will host a conference call to discuss the results at 8:30 a.m. ET on Wednesday, February 19, 2025. A live and archived webcast of the conference call will be accessible from the “Investor Relations” section of the Company’s website at https://investors.wix.com/.

About Wix.com Ltd.

Wix is the leading SaaS website builder platform¹ to create, manage and grow a digital presence. Founded in 2006, Wix is a comprehensive platform providing users – self-creators, agencies, enterprises, and more – with industry-leading performance, security, AI capabilities and a reliable infrastructure. Offering a wide range of commerce and business solutions, advanced SEO and marketing tools, the platform enables users to take full ownership of their brand, their data and their relationships with their customers. With a focus on continuous innovation and delivery of new features and products, users can seamlessly build a powerful and high-end digital presence for themselves or their clients.

For more about Wix, please visit our Press Room
Media Relations Contact: PR@wix.com

Non-GAAP Financial Measures and Key Operating Metrics

To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, Wix uses the following non-GAAP financial measures: bookings, cumulative cohort bookings, bookings on a constant currency basis, revenue on a constant currency basis, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, free cash flow, free cash flow on a constant currency basis, free cash flow, as adjusted, free cash flow margins, non-GAAP R&D expenses, non-GAAP S&M expenses, non-GAAP G&A expenses, non-GAAP operating expenses, non-GAAP cost of revenue expense, non-GAAP financial expense, non-GAAP tax expense (collectively the “Non-GAAP financial measures”). Measures presented on a constant currency or foreign exchange neutral basis have been adjusted to exclude the effect of y/y changes in foreign currency exchange rate fluctuations. Bookings is a non-GAAP financial measure calculated by adding the change in deferred revenues and the change in unbilled contractual obligations for a particular period to revenues for the same period. Bookings include cash receipts for premium subscriptions purchased by users as well as cash we collect from business solutions, as well as payments due to us under the terms of contractual agreements for which we may have not yet received payment. Cash receipts for premium subscriptions are deferred and recognized as revenues over the terms of the subscriptions. Cash receipts for payments and the majority of the additional products and services (other than Google Workspace) are recognized as revenues upon receipt. Committed payments are recognized as revenue as we fulfill our obligation under the terms of the contractual agreement. Bookings and Creative Subscriptions Bookings are also presented on a further non-GAAP basis by excluding, in each case, bookings associated with long term B2B partnership agreements. Non-GAAP gross margin represents gross profit calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization, divided by revenue. Non-GAAP operating income (loss) represents operating income (loss) calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, acquisition-related expenses and sales tax expense accrual and other G&A expenses (income). Non-GAAP net income (loss) represents net loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, sales tax expense accrual and other G&A expenses (income), amortization of debt discount and debt issuance costs and acquisition-related expenses and non-operating foreign exchange expenses (income). Non-GAAP net income (loss) per share represents non-GAAP net income (loss) divided by the weighted average number of shares used in computing GAAP loss per share. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures. Free cash flow, as adjusted, represents free cash flow further adjusted to exclude one-time cash restructuring charges and the capital expenditures and other expenses associated with the buildout of our new corporate headquarters. Free cash flow margins represent free cash flow divided by revenue. Non-GAAP cost of revenue represents cost of revenue calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP R&D expenses represent R&D expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP S&M expenses represent S&M expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP G&A expenses represent G&A expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP operating expenses represent operating expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP financial expense represents financial expense calculated in accordance with GAAP as adjusted for unrealized gains of equity investments, amortization of debt discount and debt issuance costs and non-operating foreign exchange expenses. Non-GAAP tax expense represents tax expense calculated in accordance with GAAP as adjusted for provisions for income tax effects related to non-GAAP adjustments.

The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.

For more information on the non-GAAP financial measures, please see the reconciliation tables provided below. The accompanying tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. The Company is unable to provide reconciliations of free cash flow, free cash flow, as adjusted, bookings, cumulative cohort bookings, non-GAAP gross margin, and non-GAAP tax expense to their most directly comparable GAAP financial measures on a forward-looking basis without unreasonable effort because items that impact those GAAP financial measures are out of the Company’s control and/or cannot be reasonably predicted. Such information may have a significant, and potentially unpredictable, impact on our future financial results.

Wix also uses Creative Subscriptions Annualized Recurring Revenue (ARR) as a key operating metric. Creative Subscriptions ARR is calculated as Creative Subscriptions Monthly Recurring Revenue (MRR) multiplied by 12. Creative Subscriptions MRR is calculated as the total of (i) the total monthly revenue of all Creative Subscriptions in effect on the last day of the period, other than domain registrations; (ii) the average revenue per month from domain registrations multiplied by all registered domains in effect on the last day of the period; and (iii) monthly revenue from other partnership agreements including enterprise partners.

Forward-Looking Statements

This document contains forward-looking statements, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements may include projections regarding our future performance, including, but not limited to revenue, bookings and free cash flow, and may be identified by words like “anticipate,” “assume,” “believe,” “aim,” “forecast,” “indication,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “outlook,” “future,” “will,” “seek” and similar terms or phrases. The forward-looking statements contained in this document, including the quarterly and annual guidance, are based on management’s current expectations, which are subject to uncertainty, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements include, among others, our expectation that we will be able to attract and retain registered users and partners, and generate new premium subscriptions, in particular as we continuously adjust our marketing strategy and as the macro-economic environment continues to be turbulent; our expectation that we will be able to increase the average revenue we derive per premium subscription, including through our partners; our expectation that new products and developments, as well as third-party products we will offer in the future within our platform, will receive customer acceptance and satisfaction, including the growth in market adoption of our online commerce solutions and our Wix Studio product; our expectations regarding our ability to develop relevant and required products using artificial intelligence (“AI”), the regulatory environment impacting AI and AI-related activities, including privacy and intellectual property, and potential competitive impacts from AI tools; our assumption that historical user behavior can be extrapolated to predict future user behavior, in particular during turbulent macro-economic environments; our prediction of the future revenues and/or bookings generated by our user cohorts and our ability to maintain and increase such revenue growth, as well as our ability to generate and maintain elevated levels of free cash flow and profitability; our expectation to maintain and enhance our brand and reputation; our expectation that we will effectively execute our initiatives to improve our user support function through our Customer Care team, and continue attracting registered users and partners, and increase user retention, user engagement and sales; our ability to successfully localize our products, including by making our product, support and communication channels available in additional languages and to expand our payment infrastructure to transact in additional local currencies and accept additional payment methods; our expectation regarding the impact of fluctuations in foreign currency exchange rates, interest rates, potential illiquidity of banking systems, and other recessionary trends on our business; our expectations relating to the repurchase of our ordinary shares and/or Convertible Notes pursuant to our repurchase program; our expectation that we will effectively manage our infrastructure; our expectation to comply with AI, privacy, and data protection laws and regulations as well as contractual privacy and data protection obligations; our expectations regarding the outcome of any regulatory investigation or litigation, including class actions; our expectations regarding future changes in our cost of revenues and our operating expenses on an absolute basis and as a percentage of our revenues, as well as our ability to achieve and maintain profitability; our expectations regarding changes in the global, national, regional or local economic, business, competitive, market, and regulatory landscape, including as a result of Israel-Hamas war and/or the Israel-Hezbollah hostilities and/or the Ukraine-Russia war and any escalations thereof and potential for wider regional instability and conflict; our planned level of capital expenditures and our belief that our existing cash and cash from operations will be sufficient to fund our operations for at least the next 12 months and for the foreseeable future; our expectations with respect to the integration and performance of acquisitions; our ability to attract and retain qualified employees and key personnel; and our expectations about entering into new markets and attracting new customer demographics, including our ability to successfully attract new partners large enterprise-level users and to grow our activities, including through the adoption of our Wix Studio product, with these customer types as anticipated and other factors discussed under the heading “Risk Factors” in the Company’s annual report on Form 20-F for the year ended December 31, 2023 filed with the Securities and Exchange Commission on March 22, 2024. The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. Any forward-looking statement made by us in this press release speaks only as of the date hereof. 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 any forward-looking statements, whether as a result of new information, future developments or otherwise.

Wix.com Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS – GAAP
(In thousands, except loss per share data)

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Revenues
Creative Subscriptions	$	329,732	$	296,154	$	1,264,975	$	1,152,007
Business Solutions	130,723		107,617		495,675		409,658
	460,455		403,771		1,760,650		1,561,665

Cost of Revenues
Creative Subscriptions	52,671		52,794		213,422		215,515
Business Solutions	90,965		73,319		351,213		297,013
	143,636		126,113		564,635		512,528

Gross Profit	316,819		277,658		1,196,015		1,049,137

Operating expenses:
Research and development	127,186		125,743		495,281		481,293
Selling and marketing	106,629		103,642		425,457		399,577
General and administrative	46,984		43,401		175,136		160,033
Impairment, restructuring and other costs	–		3,103		–		32,614
Total operating expenses	280,799		275,889		1,095,874		1,073,517
Operating income (loss)	36,020		1,769		100,141		(24,380)
Financial income, net	16,355		6,461		51,820		62,474
Other income (expenses), net	(94)		44		(36)		(255)
Income before taxes on income	52,281		8,274		151,925		37,839
Income tax expenses	4,257		5,320		13,603		4,702
Net income	$	48,024	$	2,954	$	138,322	$	33,137

Basic net income per share	$	0.86	$	0.05	$	2.49	$	0.58
Basic weighted-average shares used to compute net income per share	55,786,201		57,317,815		55,579,368		56,829,962

Diluted net income per share	$	0.80	$	0.05	$	2.36	$	0.57
Diluted weighted-average shares used to compute net income per share	60,648,791		59,085,757		59,953,371		58,403,037

Wix.com Ltd.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)


	December 31,		December 31,
	2024		2023
Assets	(unaudited)		(audited)
Current Assets:
Cash and cash equivalents	$	660,939	$	609,622
Short-term deposits		106,844		212,709
Restricted deposits		773		2,125
Marketable securities		338,593		140,563
Trade receivables		46,166		57,394
Prepaid expenses and other current assets		126,887		47,792
Total current assets		1,280,202		1,070,205

Long-Term Assets:
Prepaid expenses and other long-term assets		27,021		34,296
Property and equipment, net		128,155		136,928
Marketable securities		6,135		64,806
Intangible assets, net		22,141		28,010
Goodwill		49,329		49,329
Operating lease right-of-use assets		399,861		420,562
Total long-term assets		632,642		733,931

Total assets	$	1,912,844	$	1,804,136

Liabilities and Shareholders’ Deficiency
Current Liabilities:
Trade payables	$	48,003	$	38,305
Employees and payroll accruals		142,007		56,581
Deferred revenues		661,171		592,608
Current portion of convertible notes, net		572,880		–
Accrued expenses and other current liabilities		63,246		76,556
Operating lease liabilities		27,907		24,981
Total current liabilities		1,515,214		789,031
Long Term Liabilities:
Long-term deferred revenues		89,271		83,384
Long-term deferred tax liability		1,965		7,167
Convertible notes, net		–		569,714
Other long-term liabilities		16,021		7,699
Long-term operating lease liabilities		369,159		401,626
Total long-term liabilities		476,416		1,069,590

Total liabilities		1,991,630		1,858,621

Shareholders’ Deficiency
Ordinary shares		107		110
Additional paid-in capital		1,840,574		1,539,952
Treasury Stock		(1,025,167)		(558,875)
Accumulated other comprehensive loss		7,242		4,192
Accumulated deficit		(901,542)		(1,039,864)
Total shareholders’ deficiency		(78,786)		(54,485)

Total liabilities and shareholders’ deficiency	$	1,912,844	$	1,804,136

Wix.com Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)


	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
OPERATING ACTIVITIES:
Net income	$	48,024	$	2,954	$	138,322	$	33,137
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation		6,278		6,725		25,246		20,492
Amortization		1,460		1,488		5,869		5,954
Share based compensation expenses		61,801		58,195		240,721		224,625
Amortization of debt discount and debt issuance costs		793		789		3,166		4,194
Changes in accrued interest and exchange rate on short term and long term deposits		(635)		(586)		852		(2,415)
Non-cash impairment, restructuring and other costs		–		3,567		–		26,699
Amortization of premium and discount and accrued interest on marketable securities, net		(7,838)		4,237		(13,381)		8,346
Remeasurement loss (gain) on Marketable equity		–		(10,296)		(3,367)		(30,608)
Changes in deferred income taxes, net		(7)		(2,035)		(5,196)		(8,784)
Changes in operating lease right-of-use assets		4,351		7,174		24,246		27,231
Changes in operating lease liabilities		(2,821)		16,701		(33,086)		(31,333)
Loss on foreign exchange, net		2,471		–		3,906		–
Decrease (increase) in trade receivables		4,058		(2,794)		11,228		(15,308)
Decrease in prepaid expenses and other current and long-term assets		(63,684)		(10,845)		(76,963)		(20,105)
Increase (decrease) in trade payables		17,329		15,120		12,893		(52,455)
Increase (decrease) in employees and payroll accruals		66,407		(8,307)		85,426		(29,532)
Increase in short term and long term deferred revenues		1,609		2,788		74,450		76,193
Increase (decrease) in accrued expenses and other current liabilities		(5,860)		5,505		3,083		11,915
Net cash provided by operating activities		133,736		90,380		497,415		248,246
INVESTING ACTIVITIES:
Proceeds from short-term deposits and restricted deposits		97,051		131,754		276,697		625,495
Investment in short-term deposits and restricted deposits		(25,540)		(99,725)		(170,332)		(297,917)
Investment in marketable securities		–		(2,607)		(267,209)		(6,732)
Proceeds from marketable securities		15,000		33,690		125,176		250,960
Purchase of property and equipment and lease prepayment		(1,562)		(9,582)		(17,813)		(63,021)
Capitalization of internal use of software		(401)		(408)		(1,523)		(3,028)
Investment in other assets		–		–		–		(111)
Proceeds from investment in other assets	$	–		–	$	550		–
Proceeds from sale of equity securities		–		19,203		22,148		68,671
Purchases of investments in privately held companies		(1,000)		(76)		(3,160)		(7,603)
Net cash provided by investing activities		83,548		72,249		(35,466)		566,714
FINANCING ACTIVITIES:
Proceeds from exercise of options and ESPP shares		6,692		898		59,576		39,660
Purchase of treasury stock		–		(58,698)		(466,302)		(127,017)
Repayment of convertible notes		–		–		–		(362,667)
Net cash provided by (used in) financing activities		6,692		(57,800)		(406,726)		(450,024)
Effect of exchange rates on cash, cash equivalent and restricted cash		(2,471)		–		(3,906)		–
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		221,505		104,829		51,317		364,936
CASH AND CASH EQUIVALENTS—Beginning of period		439,434		504,793		609,622		244,686
CASH AND CASH EQUIVALENTS—End of period	$	660,939	$	609,622	$	660,939	$	609,622

Wix.com Ltd.
KEY PERFORMANCE METRICS
(In thousands)

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Creative Subscriptions		329,732		296,154		1,264,975		1,152,007
Business Solutions		130,723		107,617		495,675		409,658
Total Revenues	$	460,455	$	403,771	$	1,760,650	$	1,561,665

Creative Subscriptions		325,203		283,501		1,315,445		1,174,776
Business Solutions		139,389		111,503		514,607		422,727
Total Bookings	$	464,592	$	395,004	$	1,830,052	$	1,597,503

Free Cash Flow	$	131,773	$	80,390	$	478,079	$	182,197
Free Cash Flow excluding HQ build out and restructuring costs	$	131,773	$	90,125	$	488,404	$	246,058
Creative Subscriptions ARR	$	1,343,070	$	1,192,814	$	1,343,070	$	1,192,814


Wix.com Ltd.
RECONCILIATION OF REVENUES TO BOOKINGS
(In thousands)

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Revenues	$	460,455	$	403,771	$	1,760,650	$	1,561,665
Change in deferred revenues		1,609		2,788		74,450		76,193
Change in unbilled contractual obligations		2,528		(11,555)		(5,048)		(40,355)
Bookings	$	464,592	$	395,004	$	1,830,052	$	1,597,503

Y/Y growth		18%				15%


	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Creative Subscriptions Revenues	$	329,732	$	296,154	$	1,264,975	$	1,152,007
Change in deferred revenues		(7,057)		(1,098)		55,518		63,124
Change in unbilled contractual obligations		2,528		(11,555)		(5,048)		(40,355)
Creative Subscriptions Bookings	$	325,203	$	283,501	$	1,315,445	$	1,174,776

Y/Y growth		15%				12%

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Business Solutions Revenues	$	130,723	$	107,617	$	495,675	$	409,658
Change in deferred revenues		8,666		3,886		18,932		13,069
Business Solutions Bookings	$	139,389	$	111,503	$	514,607	$	422,727

Y/Y growth		25%				22%


Wix.com Ltd.
RECONCILIATION OF COHORT BOOKINGS
(In millions)
					Year Ended
					December 31,
					2024		2023
					(unaudited)
Q1 Cohort revenues					$	45	$	45
Q1 Change in deferred revenues						16		15
Q1 Cohort Bookings					$	61	$	60


Wix.com Ltd.
RECONCILIATION OF REVENUES AND BOOKINGS EXCLUDING FX IMPACT
(In thousands)
					Three Months Ended
					December 31,
					2024		2023
					(unaudited)
Revenues					$	460,455	$	403,771
FX impact on Q4/24 using Y/Y rates						(110)		–
Revenues excluding FX impact					$	460,345	$	403,771

Y/Y growth						14%

					Three Months Ended
					December 31,
					2024		2023
					(unaudited)
Bookings					$	464,592	$	395,004
FX impact on Q4/24 using Y/Y rates						1,600		–
Bookings excluding FX impact					$	466,192	$	395,004

Y/Y growth						18%


Wix.com Ltd.
TOTAL ADJUSTMENTS GAAP TO NON-GAAP
(In thousands)


	Three Months Ended				Year Ended
	December 31,				December 31,
		2024		2023		2024		2023
(1) Share based compensation expenses:	(unaudited)				(unaudited)
Cost of revenues	$	3,466	$	3,675	$	14,146	$	15,013
Research and development		32,320		31,982		126,462		119,482
Selling and marketing		9,625		11,232		38,755		41,277
General and administrative		16,390		11,306		61,358		48,853
Total share based compensation expenses		61,801		58,195		240,721		224,625
(2) Amortization		1,834		1,488		6,243		5,954
(3) Acquisition related expenses		–		9		6		472
(4) Amortization of debt discount and debt issuance costs		793		789		3,166		4,194
(5) Impairment, restructuring and other costs		–		3,103		–		32,614
(6) Sales tax accrual and other G&A expenses		881		137		1,464		748
(7) Unrealized loss (gain) on equity and other investments		–		(10,296)		(2,536)		(30,608)
(8) Non-operating foreign exchange income		3,767		15,287		(4,703)		1,499
(9) Provision for income tax effects related to non-GAAP adjustments		–		2,368		583		(4,337)
Total adjustments of GAAP to Non GAAP	$	69,076	$	71,080	$	244,944	$	235,161



Wix.com Ltd.
RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT
(In thousands)


	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Gross Profit	$	316,819	$	277,658	$	1,196,015	$	1,049,137
Share based compensation expenses		3,466		3,675		14,146		15,013
Acquisition related expenses		–		5		–		229
Amortization		667		667		2,669		2,669
Non GAAP Gross Profit		320,952		282,005		1,212,830		1,067,048

Non GAAP Gross margin		70%		70%		69%		68%


	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Gross Profit – Creative Subscriptions	$	277,061	$	243,360	$	1,051,553	$	936,492
Share based compensation expenses		2,482		2,695		10,232		11,081
Non GAAP Gross Profit – Creative Subscriptions		279,543		246,055		1,061,785		947,573

Non GAAP Gross margin – Creative Subscriptions		85%		83%		84%		82%


	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Gross Profit – Business Solutions	$	39,758	$	34,298	$	144,462	$	112,645
Share based compensation expenses		984		980		3,914		3,932
Acquisition related expenses		–		5		–		229
Amortization		667		667		2,669		2,669
Non GAAP Gross Profit – Business Solutions		41,409		35,950		151,045		119,475

Non GAAP Gross margin – Business Solutions		32%		33%		30%		29%


Wix.com Ltd.
RECONCILIATION OF OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME
(In thousands)

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024			2023
	(unaudited)				(unaudited)
Operating income (loss)	$	36,020	$	1,769	$	100,141	$	(24,380)
Adjustments:
Share based compensation expenses		61,801		58,195		240,721		224,625
Amortization		1,834		1,488		6,243		5,954
Impairment, restructuring and other charges		–		3,103		–		32,614
Sales tax accrual and other G&A expenses		881		137		1,464		748
Acquisition related expenses		–		9		6		472
Total adjustments	$	64,516	$	62,932	$	248,434	$	264,413

Non GAAP operating income	$	100,536	$	64,701	$	348,575	$	240,033

Non GAAP operating margin		22%		16%		20%		15%


Wix.com Ltd.
RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME AND NON-GAAP NET INCOME PER SHARE
(In thousands, except per share data)

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Net income	$	48,024	$	2,954	$	138,322	$	33,137
Share based compensation expenses and other Non GAAP adjustments		69,076		71,080		244,944		235,161
Non-GAAP net income$	$	117,100	$	74,034	$	383,266	$	268,298

Basic Non GAAP net income per share	$	2.10	$	1.29	$	6.90	$	4.72
Weighted average shares used in computing basic Non GAAP net income per share		55,786,201		57,317,815		55,579,368		56,829,962

Diluted Non GAAP net income per share	$	1.93	$	1.22	$	6.39	$	4.39
Weighted average shares used in computing diluted Non GAAP net income per share		60,648,791		60,512,505		59,953,371		61,106,462


Wix.com Ltd.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(In thousands)

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(unaudited)				(unaudited)
Net cash provided by operating activities	$	133,736	$	90,380	$	497,415	$	248,246
Capital expenditures, net		(1,963)		(9,990)		(19,336)		(66,049)
Free Cash Flow	$	131,773	$	80,390	$	478,079	$	182,197

Restructuring and other costs		–		1,411		–		5,915
Capex related to HQ build out		–		8,324		10,325		57,946
Free Cash Flow excluding HQ build out and restructuring costs	$	131,773	$	90,125	$	488,404	$	246,058

Attachments

Source: ACT Party

ACT Agriculture spokesperson Mark Cameron is welcoming Federated Farmers’ latest Farm Confidence Survey, which shows farmer confidence has jumped to a 10-year high, but says there is more work to be done – including resolving challenges posed by our climate commitments.

“Finally, we’ve got a Government committed to letting farmers farm, and it’s clear the real change ACT is resonating with rural New Zealand.

“We’ve reined in waste and refocused the Reserve Bank on tackling inflation to bring interest rates down. We’ve kept agriculture out of the Emissions Trading Scheme and axed Labour’s anti-farmer policies including the ute tax and new resource management regime,” says Mr Cameron.

“The progress is good, but farmers still deserve better. More work is underway to cut rural red tape, such as the repeal and replacement of the RMA that puts property rights first, so farmers can farm without having to worry about vacuous concepts like the mana and mauri of the water. The work I’m leading on the rural banking inquiry will ascertain exactly why farmers are getting a raw deal and how much woke banking practices have to do with it.

“The Farm Confidence Survey shows climate policy has farmers increasingly on edge. This reflects what farmers are telling me. The Paris Agreement requires us to sign up to increasing costly targets, prime rural land gets covered in pine trees, farmers get lumped with new bills and red tape.

“People need to eat, they need their baby formula, and if we shut down efficient Kiwi farms, that production will just be shifted offshore to countries that are less efficient. How’s that good for the environment? It’s a nonsense.

“Rural New Zealand deserves an honest conversation about what these targets mean, how much they’ll cost, and the implications if we were to consider withdrawing. Resolving these questions would do a great deal to lift confidence higher.”

MIL OSI New Zealand News –

Source: GlobeNewswire (MIL-OSI)

HAMILTON, Bermuda, Feb. 18, 2025 (GLOBE NEWSWIRE) — SiriusPoint Ltd. (“SiriusPoint” or the “Company”) (NYSE:SPNT) today announced results for its fourth quarter ended December 31, 2024

Combined ratio of 90.2% in the fourth quarter for Core business, representing a 3.2 point improvement versus prior year, resulting in a full year 2024 Core combined ratio of 91.0% and Core underwriting income of $200 million
Growth in the quarter of 21% on gross premiums written for continuing lines business (excluding 2023 exited programs), contributing to 10% growth for the full year
Fourth quarter net loss of $21 million, materially impacted by three significant items linked to our efforts to reposition the Company, including the CM Bermuda repurchase transaction, closure of previously announced LPT transaction with Enstar, and the write-down of a single MGA investment. This marks the end of the significant reshaping of the Company
Underlying net income of $44 million in the fourth quarter contributing to $304 million for the full year, up 14% versus prior year
Return on equity for 2024 of 9.1%, or 14.6% on an underlying basis and at the upper end of the target range of 12-15%
Book value per diluted common share (ex. AOCI) of $14.64, up 2.7% in the quarter and up 9.8% from December 31, 2023. Balance sheet remains strong post CM Bermuda transaction with Q4’24 BSCR estimate at 214%
Permanent retirement of the 45.7 million common shares repurchased from CM Bermuda on closure of the transaction, driving greater than 20% earnings per share accretion

Scott Egan, Chief Executive Officer, said: “2024 has been a remarkable year of delivery for SiriusPoint. Despite increased catastrophe activity, our Core combined ratio has improved meaningfully from last year to 91.0%, excluding the impact from the loss portfolio transfer in 2023. Our 4.2 point improvement in attritional loss ratio demonstrates our focus on improving the quality of our underwriting. We saw 21% growth of gross premiums written for the quarter and 10% for the full year for our continuing lines business.

Our underlying return on equity of 14.6% is at the upper end of the 12-15% target range set out a year ago. In optimizing our capital position, we have returned over $1 billion to investors during 2024 while maintaining robust capital ratios, due to our strong performance, reshaping actions, and capital generation over the past two years.

We have strengthened our underlying business performance year-over-year, providing a strong basis for 2025. While this quarter our net income was impacted by several one-off items, we see 2024 as the end of the repositioning and reshaping of the Company. Our efforts are now fully focused on both growing the business and continuing to enhance performance.

I take great pride in the accomplishments of the SiriusPoint team, who have worked with commitment and dedication to produce improvements in our underlying results, quarter after quarter. I am immensely grateful for all that they do every day for our customers, partners and shareholders.”

Fourth Quarter 2024 Highlights

Net loss attributable to SiriusPoint common shareholders of $21.3 million, or $0.13 per diluted common share
Core income of $66.7 million, including underwriting income of $56.3 million, Core combined ratio of 90.2%
Core net services fee income of $10.4 million, with service margin of 20.2%
Net investment income of $68.9 million and total investment result of $29.0 million
Book value per diluted common share decreased $0.13 per share, or 0.9%, from September 30, 2024 to $14.60
Annualized return on average common equity of (4.0)%

Year Ended December 31, 2024

Net income available to SiriusPoint common shareholders of $183.9 million, or $1.04 per diluted common share
Core income of $244.6 million, including underwriting income of $200.0 million, Core combined ratio of 91.0%
Core net services fee income of $46.7 million, with service margin of 21.0%
Net investment income of $303.6 million and total investment result of $224.6 million
Book value per diluted common share increased $1.25 per share, or 9.4%, from December 31, 2023 to $14.60
Return on average common equity of 9.1%
Debt to capital ratio increased to 24.8% compared to 23.8% as of December 31, 2023

Key Financial Metrics

The following table shows certain key financial metrics for the three and twelve months ended December 31, 2024 and 2023:


	Three months ended						Twelve months ended
	December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
	($ in millions, except for per share data and ratios)
Combined ratio		94.4	%		93.6	%		88.3	%		84.5	%
Core underwriting income (1)	$	56.3		$	37.0		$	200.0		$	250.2
Core net services income (1)	$	10.4		$	9.3		$	44.6		$	41.2
Core income (1)	$	66.7		$	46.3		$	244.6		$	291.4
Core combined ratio (1)		90.2	%		93.4	%		91.0	%		89.1	%
Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders	(4.0		)%		17.1	%		9.1	%		16.2	%
Book value per common share	$	14.92		$	13.76		$	14.92		$	13.76
Book value per diluted common share	$	14.60		$	13.35		$	14.60		$	13.35
Book value per diluted common share ex. AOCI (1)	$	14.64		$	13.33		$	14.64		$	13.33
Tangible book value per diluted common share (1)	$	13.42		$	12.47		$	13.42		$	12.47

(1)

Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. See definitions in “Non-GAAP Financial Measures” and reconciliations in “Segment Reporting.” Book value per diluted common share ex. AOCI and tangible book value per diluted common share are non-GAAP financial measures. See definition and reconciliation in “Non-GAAP Financial Measures.”

Fourth Quarter 2024 Summary

Consolidated underwriting income for the three months ended December 31, 2024 was $32.7 million compared to $36.7 million for the three months ended December 31, 2023. The decrease was primarily driven by higher catastrophe losses, partially offset by an increase in favorable prior year loss reserve development. Catastrophe losses, net of reinsurance and reinstatement premiums, were $38.6 million, or 6.5 percentage points on the combined ratio, for the three months ended December 31, 2024 mainly from Hurricane Milton, compared to minimal losses for the three months ended December 31, 2023. Favorable prior year reserve development was $37.3 million primarily driven by favorable development in Reinsurance, mainly in Property and Specialty from reserve releases relating to prior year’s catastrophe events, as well as in Insurance & Services, mainly due to lower than expected reported attritional losses in A&H, compared to $11.1 million for the three months ended December 31, 2023 which included reserve strengthening for specific areas of uncertainty for the loss reserves.

Consolidated underwriting income for the year ended December 31, 2024 was $276.4 million compared to $375.9 million for the year ended December 31, 2023. The decrease was primarily driven by lower favorable prior year loss reserve development as the year ended December 31, 2023 included $127.8 million driven by reserving analyses performed in connection with the loss portfolio transfer transaction with Pallas Reinsurance Company Ltd that closed on June 30, 2023 (“2023 LPT”). Excluding the favorable development linked to the 2023 LPT, underwriting income increased by $15.8 million primarily driven by favorable development in Reinsurance, as well as lower attritional losses in both Reinsurance and Insurance & Services, partially offset by higher acquisition costs from business mix changes, including the growth of Insurance & Services, and higher catastrophe losses. Catastrophe losses, net of reinsurance and reinstatement premiums, were $54.8 million, or 2.3 percentage points on the combined ratio, for the year ended December 31, 2024, primarily driven by Hurricanes Milton and Helene, compared to $24.8 million, or 1.0 percentage points on the combined ratio, for the year ended December 31, 2023, primarily driven by the Turkey Earthquake and Chile Wildfire.

Reportable Segments

The determination of our reportable segments is based on the manner in which management monitors the performance of our operations, which consist of two reportable segments – Reinsurance and Insurance & Services.

Collectively, the sum of our two segments, Reinsurance and Insurance & Services, constitute our “Core” results. Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. See reconciliations in “Segment Reporting”. We believe it is useful to review Core results as it better reflects how management views the business and reflects our decision to exit the runoff business. The sum of Core results and Corporate results are equal to the consolidated results of operations.

Three months ended December 31, 2024 and 2023

Core Premium Volume

Gross premiums written increased by $42.7 million, or 5.9%, to $762.5 million for the three months ended December 31, 2024 compared to $719.8 million for the three months ended December 31, 2023. Net premiums earned increased by $23.2 million, or 4.2%, to $581.6 million for the three months ended December 31, 2024 compared to $558.4 million for the three months ended December 31, 2023. The increases in premium volume were primarily driven by increases in Insurance & Services from strategic organic and new program growth, as well higher A&H premiums, and in Reinsurance in Specialty and Property from new business and renewal growth. These increases were partially offset by the movement of certain lines from Insurance & Services to Corporate, including the non-renewal of a Workers’ Compensation program and the planned transition of a Cyber program to another carrier, representing $89.9 million of gross premiums written for the three months ended December 31, 2023.

Core Results

Core results for the three months ended December 31, 2024 included income of $66.7 million compared to $46.3 million for the three months ended December 31, 2023. Income for the three months ended December 31, 2024 consists of underwriting income of $56.3 million (90.2% combined ratio) and net services income of $10.4 million, compared to underwriting income of $37.0 million (93.4% combined ratio) and net services income of $9.3 million for the three months ended December 31, 2023. The improvement in net underwriting results was primarily driven by increased favorable prior year loss reserve development and lower attritional losses, partially offset by higher catastrophe losses.

Losses incurred included $58.1 million of favorable prior year loss reserve development for the three months ended December 31, 2024 mainly in Property and Specialty from reserve releases relating to prior year’s catastrophe events, compared to $37.7 million for the three months ended December 31, 2023 driven by management reflecting the continued favorable reported loss emergence through December 31, 2023 in its best estimate of reserves.

Catastrophe losses, net of reinsurance and reinstatement premiums, for the three months ended December 31, 2024, were $38.6 million, or 6.6 percentage points on the combined ratio, mainly from Hurricane Milton, compared to minimal losses for the three months ended December 31, 2023. Despite increased catastrophe losses for the three months ended December 31, 2024, catastrophe losses for the year ended December 31, 2024 were in line with our expectations evidencing our actions to reduce our catastrophe exposed business during the last two years.

Year ended December 31, 2024 and 2023

Core Premium Volume

Gross premiums written decreased by $134.3 million, or 4.1%, to $3,176.4 million for the year ended December 31, 2024 compared to $3,310.7 million for the year ended December 31, 2023. Net premiums earned decreased by $81.5 million, or 3.6%, to $2,199.1 million for the year ended December 31, 2024 compared to $2,280.6 million for the year ended December 31, 2023. The decreases in premium volume were primarily due to the movement of certain lines from Insurance & Services to Corporate, including the non-renewal of a Workers’ Compensation program and the planned transition of a Cyber program to another carrier, representing $421.8 million of gross premiums written for the year ended December 31, 2023, with the most significant offset being strategic organic and new program growth within Insurance & Services.

Core Results

Core results for the year ended December 31, 2024 included income of $244.6 million compared to $291.4 million for the year ended December 31, 2023. Income for the year ended December 31, 2024 consists of underwriting income of $200.0 million (91.0% combined ratio) and net services income of $44.6 million, compared to underwriting income of $250.2 million (89.1% combined ratio) and net services income of $41.2 million for the year ended December 31, 2023. The decrease in net underwriting results was primarily driven by lower favorable prior year loss reserve development as the year ended December 31, 2023 included $104.8 million driven by reserving analyses performed in connection with the 2023 LPT.

Excluding the favorable development linked to the 2023 LPT, net underwriting income increased by $49.0 million primarily driven by favorable development in Reinsurance, mainly in Property and Specialty from reserve releases relating to prior year’s catastrophe events, as well as lower attritional losses in both Reinsurance and Insurance & Services, partially offset by higher acquisition costs from business mix changes, including the growth of Insurance & Services, and higher catastrophe losses.

For the year ended December 31, 2024 catastrophe losses, net of reinsurance and reinstatement premiums, were $54.8 million, or 2.5 percentage points on the combined ratio, which includes losses from Hurricanes Milton and Helene compared to $13.5 million, or 0.6 percentage points on the combined ratio, including losses from the Turkey Earthquake, Hawaii wildfires and Hurricane Idalia, for the year ended December 31, 2023.

Reinsurance Segment

Three months ended December 31, 2024 and 2023

Reinsurance gross premiums written were $312.2 million for the three months ended December 31, 2024, an increase of $60.5 million, or 24.0%, compared to the three months ended December 31, 2023, primarily driven by new business and renewal growth across Specialty and Property, partially offset by reduced premiums written in Casualty reflecting underwriting actions to improve profitability.

Reinsurance generated underwriting income of $18.3 million (93.2% combined ratio) for the three months ended December 31, 2024, compared to underwriting income of $27.8 million (88.6% combined ratio) for the three months ended December 31, 2023. The decrease in net underwriting results was primarily due to higher catastrophe losses, partially offset by increased favorable development. Catastrophe losses, net of reinsurance and reinstatement premiums, for the three months ended December 31, 2024, were $35.2 million, or 13.2 percentage points on the combined ratio, mainly from Hurricane Milton, compared to minimal losses for the three months ended December 31, 2023. Losses incurred included $41.8 million of favorable prior year loss reserve development for the three months ended December 31, 2024 mainly in Property and Specialty from reserve releases relating to prior year’s catastrophe events, compared to $21.1 million for the three months ended December 31, 2023 driven by management reflecting the continued favorable reported loss emergence through December 31, 2023 in its best estimate of reserves.

Year ended December 31, 2024 and 2023

Reinsurance gross premiums written were $1,335.6 million for the year ended December 31, 2024, an increase of $64.6 million, or 5.1%, compared to the year ended December 31, 2023, primarily driven by new business and renewal growth across Specialty and Property, partially offset by reduced premiums written in Casualty reflecting underwriting actions to improve profitability.

Reinsurance generated underwriting income of $124.8 million (88.0% combined ratio) for the year ended December 31, 2024, compared to underwriting income of $206.2 million (80.0% combined ratio) for the year ended December 31, 2023. The decrease in net underwriting results was primarily due to decreased favorable prior year loss reserve development and higher catastrophe losses, partially offset by lower attritional losses. Net favorable prior year loss reserve development was $75.0 million for the year ended December 31, 2024 primarily driven by favorable development in Property and Specialty from reserve releases relating to prior year’s catastrophe events, compared to $140.8 million for the year ended December 31, 2023, which included $93.0 million driven by reserving analyses performed in connection with the 2023 LPT.

For the year ended December 31, 2024, catastrophe losses, net of reinsurance and reinstatement premiums, were $49.5 million, or 4.7 percentage points on the combined ratio, which includes losses from Hurricanes Milton and Helene compared to $12.2 million, or 1.2 percentage points on the combined ratio, including losses from the Turkey Earthquake, Hawaii wildfires and Hurricane Idalia for the year ended December 31, 2023.

Insurance & Services Segment

Three months ended December 31, 2024 and 2023

Insurance & Services gross premiums written were $450.3 million for the three months ended December 31, 2024, a decrease of $17.8 million, or 3.8%, compared to the three months ended December 31, 2023, primarily driven by the movement of certain lines from Insurance & Services to Corporate, including the non-renewal of a Workers’ Compensation program and the planned transition of a Cyber program to another carrier, representing $89.9 million of gross premiums written for the three months ended December 31, 2023, partially offset by strategic organic and new program growth, as well higher A&H premiums.

Insurance & Services generated segment income of $48.4 million for the three months ended December 31, 2024, compared to $16.8 million for the three months ended December 31, 2023. Segment income for the three months ended December 31, 2024 consists of underwriting income of $38.0 million (87.9% combined ratio) and net services income of $10.4 million, compared to underwriting income of $9.2 million (97.0% combined ratio) and net services income of $7.6 million for the three months ended December 31, 2023. The improvement in underwriting results was primarily driven by our decreased loss ratio mainly from lower attritional losses, partially offset by higher acquisition costs from business mix changes as we grow our Insurance & Services segment.

Year ended December 31, 2024 and 2023

Insurance & Services gross premiums written were $1,840.8 million for the year ended December 31, 2024, a decrease of $198.9 million, or 9.8%, compared to the year ended December 31, 2023, primarily driven by the movement of certain lines from Insurance & Services to Corporate, including the non-renewal of a Workers’ Compensation program and the planned transition of a Cyber program to another carrier, representing $421.8 million of gross premiums written for the year ended December 31, 2023, as well as lower A&H premiums, partially offset by strategic organic and new program growth.

Insurance & Services generated segment income of $119.8 million for the year ended December 31, 2024, compared to income of $86.3 million for the year ended December 31, 2023. Segment income for the year ended December 31, 2024 consists of underwriting income of $75.2 million (93.5% combined ratio) and net services income of $44.6 million, compared to underwriting income of $44.0 million (96.5% combined ratio) and net services income of $42.3 million for the year ended December 31, 2023. The improvement in underwriting income of $31.2 million for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily driven by our decreased loss ratio mainly from lower attritional losses, partially offset by higher acquisition costs from business mix changes as we grow our Insurance & Services segment.

As of December 31, 2024, we have equity stakes in 20 entities (managing general agents (“MGAs”), Insurtech and Other) compared to 36 at the start of 2023. We continue to rationalize our MGA equity stakes and realize the significant off-balance sheet value of our consolidated MGAs, with 6 of these rationalized in 2024. Book value for our three consolidated MGAs was $90.1 million as of December 31, 2024, compared to $76.3 million at December 31, 2023, when adjusted to exclude Arcadian Risk Capital Ltd. which we deconsolidated on June 30, 2024.

Investments

Three months ended December 31, 2024 and 2023

Total net investment income and realized and unrealized investment gains (losses) for the three months ended December 31, 2024 was primarily attributable to net investment income related to interest income from our debt portfolio of $61.2 million, partially offset by unrealized losses resulting from fair value analyses on our strategic investment portfolio.

Total net investment income and realized and unrealized investment gains (losses) for the three months ended December 31, 2023 was primarily attributable to investment results from our debt and short-term investment portfolio of $68.5 million. This result was driven by interest income primarily on securitized assets and corporate debt positions, which made up 65.6% of our total investments as of December 31, 2023.

Year ended December 31, 2024 and 2023

Total net investment income and realized and unrealized investment gains (losses) for the year ended December 31, 2024 was primarily attributable to net investment income related to interest income from our debt and short-term investment portfolio of $289.7 million, partially offset by unrealized losses on other long-term investments of $70.0 million. Increased investment income is primarily due to the rotation of the portfolio from cash and cash equivalents and U.S. government and government agency positions to high-grade corporate debt and other securitized assets, in an effort to better diversify our portfolio. Losses on private other long-term investments were the result of updated fair value analyses consistent with the current insurtech market trends and disposals of positions as we execute our strategy to focus on underwriting relationships with MGAs.

Total net investment income and realized and unrealized investment gains (losses) for the year ended December 31, 2023 was primarily attributable to net investment income related to interest income from our debt and short-term investment portfolio of $277.0 million.

Webcast Details

The Company will hold a webcast to discuss its fourth quarter 2024 results at 8:30 a.m. Eastern Time on February 19, 2025. The webcast of the conference call will be available over the Internet from the Company’s website at www.siriuspt.com under the “Investor Relations” section. Participants should follow the instructions provided on the website to download and install any necessary audio applications. The conference call will be available by dialing 1-877-451-6152 (domestic) or 1-201-389-0879 (international). Participants should ask for the SiriusPoint Ltd. fourth quarter 2024 earnings call.

The online replay will be available on the Company’s website immediately following the call at www.siriuspt.com under the “Investor Relations” section.

Safe Harbor Statement Regarding Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company’s control. The Company cautions you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “believes,” “intends,” “seeks,” “anticipates,” “aims,” “plans,” “targets,” “estimates,” “expects,” “assumes,” “continues,” “guidance,” “should,” “could,” “will,” “may” and the negative of these or similar terms and phrases. Specific forward-looking statements in this press release include, but are not limited to, statements regarding the trend of our performance as compared to the previous guidance, the success of our strategic transaction with CMIG International Holding Pte. Ltd., the current insurtech market trends, our ability to generate shareholder value and whether we will continue to have momentum in our business in the future. Actual events, results and outcomes may differ materially from the Company’s expectations due to a variety of known and unknown risks, uncertainties and other factors. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements are the following: our ability to execute on our strategic transformation, including re-underwriting to reduce volatility and improve underwriting performance, de-risking our investment portfolio, and transforming our business; the impact of unpredictable catastrophic events, including uncertainties with respect to current and future COVID-19 losses across many classes of insurance business and the amount of insurance losses that may ultimately be ceded to the reinsurance market, supply chain issues, labor shortages and related increased costs, changing interest rates and equity market volatility; inadequacy of loss and loss adjustment expense reserves, the lack of available capital, and periods characterized by excess underwriting capacity and unfavorable premium rates; the performance of financial markets, impact of inflation and interest rates, and foreign currency fluctuations; our ability to compete successfully in the insurance and reinsurance market and the effect of consolidation in the insurance and reinsurance industry; technology breaches or failures, including those resulting from a malicious cyber-attack on us, our business partners or service providers; the effects of global climate change, including increased severity and frequency of weather-related natural disasters and catastrophes, including wildfires, and increased coastal flooding in many geographic areas; geopolitical uncertainty, including the ongoing conflicts in Europe and the Middle East and the new presidential administration in the U.S.; our ability to retain key senior management and key employees; a downgrade or withdrawal of our financial ratings; fluctuations in our results of operations; legal restrictions on certain of SiriusPoint’s insurance and reinsurance subsidiaries’ ability to pay dividends and other distributions to SiriusPoint; the outcome of legal and regulatory proceedings and regulatory constraints on our business; reduced returns or losses in SiriusPoint’s investment portfolio; our exposure or potential exposure to corporate income tax in Bermuda and the E.U., U.S. federal income and withholding taxes and our significant deferred tax assets, which could become devalued if we do not generate future taxable income or applicable corporate tax rates are reduced; risks associated with delegating authority to third party managing general agents; future strategic transactions such as acquisitions, dispositions, investments, mergers or joint ventures; SiriusPoint’s response to any acquisition proposal that may be received from any party, including any actions that may be considered by the Company’s Board of Directors or any committee thereof; and other risks and factors listed under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and other subsequent periodic reports filed with the Securities and Exchange Commission.

All forward-looking statements speak only as of the date made and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures and Other Financial Metrics

In presenting SiriusPoint’s results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (“GAAP”). SiriusPoint’s management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of SiriusPoint’s financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. Core underwriting income, Core net services income, Core income, and Core combined ratio are non-GAAP financial measures. Management believes it is useful to review Core results as it better reflects how management views the business and reflects the Company’s decision to exit the runoff business. Book value per diluted common share excluding accumulated other comprehensive income (loss) (“AOCI”) and tangible book value per diluted common share, as presented, are non-GAAP financial measures and the most directly comparable U.S. GAAP measure is book value per common share. Management believes it is useful to exclude AOCI because it may fluctuate significantly between periods based on movements in interest and currency rates. Management believes the effects of intangible assets are not indicative of underlying underwriting results or trends and make book value comparisons to less acquisitive peer companies less meaningful. Underlying net income is a non-GAAP financial measure and the most directly comparable U.S. GAAP measure is net income. Underlying net income excludes items which we believe are not indicative of the operations of our underlying businesses. Management believes it is useful to review underlying net income as it better reflects how we view the business, as well as provides investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics. Underlying return on average common shareholders’ equity is calculated by dividing underlying net income available to SiriusPoint common shareholders for the period by the average common shareholders’ equity, excluding AOCI. Reconciliations of such non-GAAP financial measures to the most directly comparable GAAP figures are included in the attached financial information in accordance with Regulation G and Item 10(e) of Regulation S-K, as applicable.

About the Company

SiriusPoint is a global underwriter of insurance and reinsurance providing solutions to clients and brokers around the world. Bermuda-headquartered with offices in New York, London, Stockholm and other locations, we are listed on the New York Stock Exchange (SPNT). We have licenses to write Property & Casualty and Accident & Health insurance and reinsurance globally. Our offering and distribution capabilities are strengthened by a portfolio of strategic partnerships with Managing General Agents and Program Administrators. With approximately $2.6 billion total capital, SiriusPoint’s operating companies have a financial strength rating of A- (Stable) from AM Best, S&P and Fitch, and A3 (Stable) from Moody’s. For more information please visit www.siriuspt.com.

Contacts

Investor Relations
Liam Blackledge – Investor Relations and Strategy Manager
Liam.Blackledge@siriuspt.com
+ 44 203 772 3082

Media
Natalie King – Global Head of Marketing and External Communications
Natalie.King@siriuspt.com
+ 44 20 3772 3102


SIRIUSPOINT LTD. CONSOLIDATED BALANCE SHEETS (UNAUDITED) As of December 31, 2024 and December 31, 2023 (expressed in millions of U.S. dollars, except per share and share amounts)

	December 31, 2024			December 31, 2023
Assets
Debt securities, available for sale, at fair value, net of allowance for credit losses of $1.1 (2023 – $0.0) (cost – $5,143.8; 2023 – $4,754.6)	$	5,131.0		$	4,755.4
Debt securities, trading, at fair value (cost – $187.3; 2023 – $568.1)		162.2			534.9
Short-term investments, at fair value (cost – $95.3; 2023 – $370.8)		95.8			371.6
Investments in related party investment funds, at fair value		116.5			105.6
Other long-term investments, at fair value (cost – $317.8; 2023 – $358.1) (includes related party investments at fair value of $100.7 (2023 – $173.7))		200.0			310.1
Total investments		5,705.5			6,077.6
Cash and cash equivalents		682.0			969.2
Restricted cash and cash equivalents		212.6			132.1
Redemption receivable from related party investment fund		—			3.0
Due from brokers		11.2			5.6
Interest and dividends receivable		44.0			42.3
Insurance and reinsurance balances receivable, net		2,054.4			1,966.3
Deferred acquisition costs, net		327.5			308.9
Unearned premiums ceded		463.9			449.2
Loss and loss adjustment expenses recoverable, net		2,315.3			2,295.1
Deferred tax asset		297.0			293.6
Intangible assets		140.8			152.7
Other assets		270.7			175.9
Total assets	$	12,524.9		$	12,871.5
Liabilities
Loss and loss adjustment expense reserves	$	5,653.9		$	5,608.1
Unearned premium reserves		1,639.2			1,627.3
Reinsurance balances payable		1,781.6			1,736.7
Deposit liabilities		17.4			134.4
Deferred gain on retroactive reinsurance		8.5			27.9
Debt		639.1			786.2
Due to brokers		18.0			6.2
Deferred tax liability		76.2			68.7
Liability-classified capital instruments		—			67.3
Share repurchase liability		483.0			—
Accounts payable, accrued expenses and other liabilities		269.2			278.1
Total liabilities		10,586.1			10,340.9
Commitments and contingent liabilities
Shareholders’ equity
Series B preference shares (par value $0.10; authorized and issued: 8,000,000)		200.0			200.0
Common shares (issued and outstanding: 116,429,057; 2023 – 168,120,022)		11.6			16.8
Additional paid-in capital		945.0			1,693.0
Retained earnings		784.9			601.0
Accumulated other comprehensive income (loss), net of tax		(4.1	)		3.1
Shareholders’ equity attributable to SiriusPoint shareholders		1,937.4			2,513.9
Noncontrolling interests		1.4			16.7
Total shareholders’ equity		1,938.8			2,530.6
Total liabilities, noncontrolling interests and shareholders’ equity	$	12,524.9		$	12,871.5

SIRIUSPOINT LTD. CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) For the three and twelve months ended December 31, 2024 and 2023 (expressed in millions of U.S. dollars, except per share and share amounts)

	Three months ended						Twelve months ended
	December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Revenues
Net premiums earned	$	590.3		$	578.0		$	2,343.5		$	2,426.2
Net investment income		68.9			78.4			303.6			283.7
Net realized and unrealized investment losses		(40.7	)		(12.4	)		(88.7	)		(10.0	)
Net realized and unrealized investment gains (losses) from related party investment funds		0.8			(1.0	)		9.7			(1.0	)
Net investment income and net realized and unrealized investment gains (losses)		29.0			65.0			224.6			272.7
Other revenues		19.4			17.8			184.2			97.8
Loss on settlement and change in fair value of liability-classified capital instruments		(25.9	)		(15.0	)		(148.5	)		(59.4	)
Total revenues		612.8			645.8			2,603.8			2,737.3
Expenses
Loss and loss adjustment expenses incurred, net		369.1			365.4			1,368.5			1,381.3
Acquisition costs, net		134.6			111.7			516.9			472.7
Other underwriting expenses		53.9			64.2			181.7			196.3
Net corporate and other expenses		58.1			64.5			232.1			258.2
Intangible asset amortization		3.0			2.9			11.9			11.1
Interest expense		19.6			19.8			69.6			64.1
Foreign exchange (gains) losses		(12.9	)		19.2			(10.0	)		34.9
Total expenses		625.4			647.7			2,370.7			2,418.6
Income (loss) before income tax (expense) benefit		(12.6	)		(1.9	)		233.1			318.7
Income tax (expense) benefit		(4.4	)		101.6			(30.7	)		45.0
Net income (loss)		(17.0	)		99.7			202.4			363.7
Net income attributable to noncontrolling interests		(0.3	)		(2.2	)		(2.5	)		(8.9	)
Net income (loss) available to SiriusPoint		(17.3	)		97.5			199.9			354.8
Dividends on Series B preference shares		(4.0	)		(4.0	)		(16.0	)		(16.0	)
Net income (loss) available to SiriusPoint common shareholders	$	(21.3	)	$	93.5		$	183.9		$	338.8
Earnings (loss) per share available to SiriusPoint common shareholders
Basic earnings (loss) per share available to SiriusPoint common shareholders	$	(0.13	)	$	0.52		$	1.06		$	1.93
Diluted earnings (loss) per share available to SiriusPoint common shareholders	$	(0.13	)	$	0.50		$	1.04		$	1.85
Weighted average number of common shares used in the determination of earnings (loss) per share
Basic		161,378,360			166,640,624			166,537,394			163,341,448
Diluted		161,378,360			173,609,940			169,470,681			169,607,348

SIRIUSPOINT LTD. SEGMENT REPORTING

	Three months ended December 31, 2024
	Reinsurance			Insurance & Services			Core			Eliminations ⁽²⁾			Corporate			Segment Measure Reclass			Total
Gross premiums written	$	312.2		$	450.3		$	762.5		$	—		$	(3.0	)	$	—		$	759.5
Net premiums written		237.5			322.7			560.2			—			4.8			—			565.0
Net premiums earned		265.9			315.7			581.6			—			8.7			—			590.3
Loss and loss adjustment expenses incurred, net		148.3			175.3			323.6			(1.4	)		46.9			—			369.1
Acquisition costs, net		73.1			77.8			150.9			(27.6	)		11.3			—			134.6
Other underwriting expenses		26.2			24.6			50.8			—			3.1			—			53.9
Underwriting income (loss)		18.3			38.0			56.3			29.0			(52.6	)		—			32.7
Services revenues		—			51.6			51.6			(31.4	)		—			(20.2	)		—
Services expenses		—			41.2			41.2			—			—			(41.2	)		—
Net services income		—			10.4			10.4			(31.4	)		—			21.0			—
Segment income (loss)		18.3			48.4			66.7			(2.4	)		(52.6	)		21.0			32.7
Net investment income														68.9			—			68.9
Net realized and unrealized investment losses														(40.7	)		—			(40.7	)
Net realized and unrealized investment gains from related party investment funds														0.8			—			0.8
Other revenues														(0.8	)		20.2			19.4
Loss on settlement and change in fair value of liability-classified capital instruments														(25.9	)		—			(25.9	)
Net corporate and other expenses														(16.9	)		(41.2	)		(58.1	)
Intangible asset amortization														(3.0	)		—			(3.0	)
Interest expense														(19.6	)		—			(19.6	)
Foreign exchange gains														12.9			—			12.9
Income (loss) before income tax expense	$	18.3		$	48.4			66.7			(2.4	)		(76.9	)		—			(12.6	)
Income tax expense								—			—			(4.4	)		—			(4.4	)
Net income (loss)								66.7			(2.4	)		(81.3	)		—			(17.0	)
Net income attributable to noncontrolling interest								—			—			(0.3	)		—			(0.3	)
Net income (loss) available to SiriusPoint							$	66.7		$	(2.4	)	$	(81.6	)	$	—		$	(17.3	)

Attritional losses	$	154.9		$	188.2		$	343.1		$	(1.4	)	$	26.1		$	—		$	367.8
Catastrophe losses		35.2			3.4			38.6			—			—			—			38.6
Prior year loss reserve development		(41.8	)		(16.3	)		(58.1	)		—			20.8			—			(37.3	)
Loss and loss adjustment expenses incurred, net	$	148.3		$	175.3		$	323.6		$	(1.4	)	$	46.9		$	—		$	369.1

Underwriting Ratios: ⁽¹⁾
Attritional loss ratio		58.3	%		59.6	%		59.0	%											62.3	%
Catastrophe loss ratio		13.2	%		1.1	%		6.6	%											6.5	%
Prior year loss development ratio	(15.7		)%	(5.2		)%	(10.0		)%										(6.3		)%
Loss ratio		55.8	%		55.5	%		55.6	%											62.5	%
Acquisition cost ratio		27.5	%		24.6	%		25.9	%											22.8	%
Other underwriting expenses ratio		9.9	%		7.8	%		8.7	%											9.1	%
Combined ratio		93.2	%		87.9	%		90.2	%											94.4	%

(1)	Underwriting ratios are calculated by dividing the related expense by net premiums earned.
(2)	Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.

	Three months ended December 31, 2023
	Reinsurance			Insurance & Services			Core			Eliminations ⁽²⁾			Corporate			Segment Measure Reclass			Total
Gross premiums written	$	251.7		$	468.1		$	719.8		$	—		$	(4.2	)	$	—		$	715.6
Net premiums written		194.9			263.3			458.2			—			(3.6	)		—			454.6
Net premiums earned		243.2			315.2			558.4			—			19.6			—			578.0
Loss and loss adjustment expenses incurred, net		121.8			206.6			328.4			(1.4	)		38.4			—			365.4
Acquisition costs, net		65.5			66.8			132.3			(31.6	)		11.0			—			111.7
Other underwriting expenses		28.1			32.6			60.7			—			3.5			—			64.2
Underwriting income (loss)		27.8			9.2			37.0			33.0			(33.3	)		—			36.7
Services revenues		1.7			54.0			55.7			(40.0	)		—			(15.7	)		—
Services expenses		—			43.6			43.6			—			—			(43.6	)		—
Net services fee income		1.7			10.4			12.1			(40.0	)		—			27.9			—
Services noncontrolling income		—			(2.8	)		(2.8	)		—			—			2.8			—
Net services income		1.7			7.6			9.3			(40.0	)		—			30.7			—
Segment income (loss)		29.5			16.8			46.3			(7.0	)		(33.3	)		30.7			36.7
Net investment income														78.4			—			78.4
Net realized and unrealized investment losses														(12.4	)		—			(12.4	)
Net realized and unrealized investment losses from related party investment funds														(1.0	)		—			(1.0	)
Other revenues														2.1			15.7			17.8
Loss on settlement and change in fair value of liability-classified capital instruments														(15.0	)		—			(15.0	)
Net corporate and other expenses														(20.9	)		(43.6	)		(64.5	)
Intangible asset amortization														(2.9	)		—			(2.9	)
Interest expense														(19.8	)		—			(19.8	)
Foreign exchange losses														(19.2	)		—			(19.2	)
Income (loss) before income tax benefit	$	29.5		$	16.8			46.3			(7.0	)		(44.0	)		2.8			(1.9	)
Income tax benefit								—			—			101.6			—			101.6
Net income								46.3			(7.0	)		57.6			2.8			99.7
Net (income) loss attributable to noncontrolling interest								—			—			0.6			(2.8	)		(2.2	)
Net income available to SiriusPoint							$	46.3		$	(7.0	)	$	58.2		$	—		$	97.5

Attritional losses	$	143.5		$	222.8		$	366.3		$	(1.4	)	$	11.7		$	—		$	376.6
Catastrophe losses		(0.6	)		0.4			(0.2	)		—			0.1			—			(0.1	)
Prior year loss reserve development		(21.1	)		(16.6	)		(37.7	)		—			26.6			—			(11.1	)
Loss and loss adjustment expenses incurred, net	$	121.8		$	206.6		$	328.4		$	(1.4	)	$	38.4		$	—		$	365.4

Underwriting Ratios: ⁽¹⁾
Attritional loss ratio		59.0	%		70.7	%		65.6	%											65.2	%
Catastrophe loss ratio	(0.2		)%		0.1	%		—	%											—	%
Prior year loss development ratio	(8.7		)%	(5.3		)%	(6.8		)%										(1.9		)%
Loss ratio		50.1	%		65.5	%		58.8	%											63.2	%
Acquisition cost ratio		26.9	%		21.2	%		23.7	%											19.3	%
Other underwriting expenses ratio		11.6	%		10.3	%		10.9	%											11.1	%
Combined ratio		88.6	%		97.0	%		93.4	%											93.6	%

(1)	Underwriting ratios are calculated by dividing the related expense by net premiums earned.
(2)	Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.

	Twelve months ended December 31, 2024
	Reinsurance			Insurance & Services			Core			Eliminations (2)			Corporate			Segment Measure Reclass			Total
Gross premiums written	$	1,335.6		$	1,840.8		$	3,176.4		$	—		$	68.2		$	—		$	3,244.6
Net premiums written		1,104.7			1,236.2			2,340.9			—			11.2			—			2,352.1
Net premiums earned		1,045.1			1,154.0			2,199.1			—			144.4			—			2,343.5
Loss and loss adjustment expenses incurred, net		554.3			714.1			1,268.4			(5.5	)		105.6			—			1,368.5
Acquisition costs, net		279.9			284.7			564.6			(121.4	)		73.7			—			516.9
Other underwriting expenses		86.1			80.0			166.1			—			15.6			—			181.7
Underwriting income (loss)		124.8			75.2			200.0			126.9			(50.5	)		—			276.4
Services revenues		—			222.9			222.9			(132.8	)		—			(90.1	)		—
Services expenses		—			176.2			176.2			—			—			(176.2	)		—
Net services fee income		—			46.7			46.7			(132.8	)		—			86.1			—
Services noncontrolling income		—			(2.1	)		(2.1	)		—			—			2.1			—
Net services income		—			44.6			44.6			(132.8	)		—			88.2			—
Segment income (loss)		124.8			119.8			244.6			(5.9	)		(50.5	)		88.2			276.4
Net investment income														303.6			—			303.6
Net realized and unrealized investment losses														(88.7	)		—			(88.7	)
Net realized and unrealized investment gains from related party investment funds														9.7			—			9.7
Other revenues														94.1			90.1			184.2
Loss on settlement and change in fair value of liability-classified capital instruments														(148.5	)		—			(148.5	)
Net corporate and other expenses														(55.9	)		(176.2	)		(232.1	)
Intangible asset amortization														(11.9	)		—			(11.9	)
Interest expense														(69.6	)		—			(69.6	)
Foreign exchange gains														10.0			—			10.0
Income (loss) before income tax expense	$	124.8		$	119.8			244.6			(5.9	)		(7.7	)		2.1			233.1
Income tax expense								—			—			(30.7	)		—			(30.7	)
Net income (loss)								244.6			(5.9	)		(38.4	)		2.1			202.4
Net income attributable to noncontrolling interest								—			—			(0.4	)		(2.1	)		(2.5	)
Net income (loss) available to SiriusPoint							$	244.6		$	(5.9	)	$	(38.8	)	$	—		$	199.9

Attritional losses	$	579.8		$	734.5		$	1,314.3		$	(5.5	)	$	112.8		$	—		$	1,421.6
Catastrophe losses		49.5			5.3			54.8			—			—			—			54.8
Prior year loss reserve development		(75.0	)		(25.7	)		(100.7	)		—			(7.2	)		—			(107.9	)
Loss and loss adjustment expenses incurred, net	$	554.3		$	714.1		$	1,268.4		$	(5.5	)	$	105.6		$	—		$	1,368.5

Underwriting Ratios: ⁽¹⁾
Attritional loss ratio		55.5	%		63.6	%		59.8	%											60.7	%
Catastrophe loss ratio		4.7	%		0.5	%		2.5	%											2.3	%
Prior year loss development ratio	(7.2		)%	(2.2		)%	(4.6		)%										(4.6		)%
Loss ratio		53.0	%		61.9	%		57.7	%											58.4	%
Acquisition cost ratio		26.8	%		24.7	%		25.7	%											22.1	%
Other underwriting expenses ratio		8.2	%		6.9	%		7.6	%											7.8	%
Combined ratio		88.0	%		93.5	%		91.0	%											88.3	%

(1)	Underwriting ratios are calculated by dividing the related expense by net premiums earned.
(2)	Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.

	Twelve months ended December 31, 2023
	Reinsurance			Insurance & Services			Core			Eliminations (2)			Corporate			Segment Measure Reclass			Total
Gross premiums written	$	1,271.0		$	2,039.7		$	3,310.7		$	—		$	116.7		$	—		$	3,427.4
Net premiums written		1,061.0			1,282.7			2,343.7			—			94.2			—			2,437.9
Net premiums earned		1,031.4			1,249.2			2,280.6			—			145.6			—			2,426.2
Loss and loss adjustment expenses incurred, net		490.3			815.4			1,305.7			(5.4	)		81.0			—			1,381.3
Acquisition costs, net		252.2			295.5			547.7			(137.2	)		62.2			—			472.7
Other underwriting expenses		82.7			94.3			177.0			—			19.3			—			196.3
Underwriting income (loss)		206.2			44.0			250.2			142.6			(16.9	)		—			375.9
Services revenues		(1.1	)		238.6			237.5			(149.6	)		—			(87.9	)		—
Services expenses		—			187.8			187.8			—			—			(187.8	)		—
Net services fee income (loss)		(1.1	)		50.8			49.7			(149.6	)		—			99.9			—
Services noncontrolling income		—			(8.5	)		(8.5	)		—			—			8.5			—
Net services income (loss)		(1.1	)		42.3			41.2			(149.6	)		—			108.4			—
Segment income (loss)		205.1			86.3			291.4			(7.0	)		(16.9	)		108.4			375.9
Net investment income														283.7			—			283.7
Net realized and unrealized investment losses														(10.0	)		—			(10.0	)
Net realized and unrealized investment losses from related party investment funds														(1.0	)		—			(1.0	)
Other revenues														9.9			87.9			97.8
Loss on settlement and change in fair value of liability-classified capital instruments														(59.4	)		—			(59.4	)
Net corporate and other expenses														(70.4	)		(187.8	)		(258.2	)
Intangible asset amortization														(11.1	)		—			(11.1	)
Interest expense														(64.1	)		—			(64.1	)
Foreign exchange losses														(34.9	)		—			(34.9	)
Income before income tax benefit	$	205.1		$	86.3			291.4			(7.0	)		25.8			8.5			318.7
Income tax benefit								—			—			45.0			—			45.0
Net income								291.4			(7.0	)		70.8			8.5			363.7
Net income attributable to noncontrolling interest								—			—			(0.4	)		(8.5	)		(8.9	)
Net income available to SiriusPoint							$	291.4		$	(7.0	)	$	70.4		$	—		$	354.8

Attritional losses	$	618.9		$	840.7		$	1,459.6		$	(5.4	)	$	76.5		$	—		$	1,530.7
Catastrophe losses		12.2			1.3			13.5			—			11.3			—			24.8
Prior year loss reserve development		(140.8	)		(26.6	)		(167.4	)		—			(6.8	)		—			(174.2	)
Loss and loss adjustment expenses incurred, net	$	490.3		$	815.4		$	1,305.7		$	(5.4	)	$	81.0		$	—		$	1,381.3

Underwriting Ratios: ⁽¹⁾
Attritional loss ratio		60.0	%		67.3	%		64.0	%											63.1	%
Catastrophe loss ratio		1.2	%		0.1	%		0.6	%											1.0	%
Prior year loss development ratio	(13.7		)%	(2.1		)%	(7.3		)%										(7.2		)%
Loss ratio		47.5	%		65.3	%		57.3	%											56.9	%
Acquisition cost ratio		24.5	%		23.7	%		24.0	%											19.5	%
Other underwriting expenses ratio		8.0	%		7.5	%		7.8	%											8.1	%
Combined ratio		80.0	%		96.5	%		89.1	%											84.5	%

(1)	Underwriting ratios are calculated by dividing the related expense by net premiums earned.
(2)	Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.

SIRIUSPOINT LTD.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS & OTHER FINANCIAL MEASURES

Non-GAAP Financial Measures

Core Results

Collectively, the sum of the Company’s two segments, Reinsurance and Insurance & Services, constitute “Core” results. Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. We believe it is useful to review Core results as it better reflects how management views the business and reflects our decision to exit the runoff business. The sum of Core results and Corporate results are equal to the consolidated results of operations.

Core underwriting income – calculated by subtracting loss and loss adjustment expenses incurred, net, acquisition costs, net, and other underwriting expenses from net premiums earned.

Core net services income – consists of services revenues which include commissions, brokerage and fee income related to consolidated MGAs, and other revenues, and services expenses which include direct expenses related to consolidated MGAs, services noncontrolling income which represent minority ownership interests in consolidated MGAs. Net services income is a key indicator of the profitability of the Company’s services provided.

Core income – consists of two components, core underwriting income and core net services income. Core income is a key measure of our segment performance.

Core combined ratio – calculated by dividing the sum of Core loss and loss adjustment expenses incurred, net, acquisition costs, net and other underwriting expenses by Core net premiums earned. Accident year loss ratio and accident year combined ratio are calculated by excluding prior year loss reserve development to present the impact of current accident year net loss and loss adjustment expenses on the Core loss ratio and Core combined ratio, respectively. Attritional loss ratio excludes catastrophe losses from the accident year loss ratio as they are not predictable as to timing and amount. These ratios are useful indicators of our underwriting profitability.

Book Value Per Diluted Common Share Metrics

Book value per diluted common share excluding AOCI and tangible book value per diluted common share, as presented, are non-GAAP financial measures and the most directly comparable U.S. GAAP measure is book value per common share. Management believes it is useful to exclude AOCI because it may fluctuate significantly between periods based on movements in interest and currency rates. Tangible book value per diluted common share excludes intangible assets. Management believes that effects of intangible assets are not indicative of underlying underwriting results or trends and make book value comparisons to less acquisitive peer companies less meaningful. Tangible book value per diluted common share is useful because it provides a more accurate measure of the realizable value of shareholder returns, excluding intangible assets.

The following table sets forth the computation of book value per common share, book value per diluted common share and tangible book value per diluted common share as of December 31, 2024 and December 31, 2023:


	December 31, 2024			December 31, 2023
	($ in millions, except share and per share amounts)
Common shareholders’ equity attributable to SiriusPoint common shareholders	$	1,737.4		$	2,313.9

Accumulated other comprehensive income (loss), net of tax		(4.1	)		3.1
Common shareholders’ equity attributable to SiriusPoint common shareholders ex. AOCI		1,741.5			2,310.8

Intangible assets		140.8			152.7
Tangible common shareholders’ equity attributable to SiriusPoint common shareholders	$	1,596.6		$	2,161.2

Common shares outstanding		116,429,057			168,120,022
Effect of dilutive stock options, restricted share units and warrants		2,559,359			5,193,920
Book value per diluted common share denominator		118,988,416			173,313,942

Book value per common share	$	14.92		$	13.76
Book value per diluted common share	$	14.60		$	13.35
Book value per diluted common share ex. AOCI	$	14.64		$	13.33
Tangible book value per diluted common share	$	13.42		$	12.47

Underlying Net Income

Underlying net income is a non-GAAP financial measure and the most directly comparable U.S. GAAP measure is net income. Underlying net income excludes items which we believe are not indicative of the operations of our underlying businesses, including realized and unrealized gains (losses) on strategic and other investments and liability-classified capital instruments, income (expense) related to loss portfolio transfers, deferred tax assets attributable to the enactment of the Bermuda corporate income tax, development on COVID-19 reserves resulting from the COVID-19 reserve study performed concurrently with the settlement of the Series A Preference shares in the third quarter of 2024, and foreign exchange gains (losses). We believe it is useful to review underlying net income as it better reflects how we view the business, as well as provides investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics. Underlying return on average common shareholders’ equity is calculated by dividing underlying net income available to SiriusPoint common shareholders for the period by the average common shareholders’ equity, excluding AOCI. Management believes it is useful to exclude AOCI because it may fluctuate significantly between periods based on movements in interest and currency rates.

The following table sets forth the computation of underlying net income for the three and twelve months ended December 31, 2024 and 2023:


	Three months ended						Twelve months ended
	December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Net income (loss) available to SiriusPoint common shareholders	$	(21.3	)	$	93.5		$	183.9		$	338.8
Non-recurring adjustments:
Gains on sale or deconsolidation of consolidated MGAs		—			—			(96.0	)		—
Losses on strategic and other investments		34.3			15.4			90.5			40.2
MGA & Strategic Investment Rationalization		34.3			15.4			(5.5	)		40.2

Losses on settlement and change in fair value of liability-classified capital instruments (“CMIG Merger Instruments”)		25.9			15.0			148.5			59.4
COVID-19 favorable reserve development ⁽¹⁾		—			—			(19.9	)		—
CMIG Instruments & Transactions		25.9			15.0			128.6			59.4

(Income) expense related to loss portfolio transfers		28.9			2.1			44.6			(101.6	)
Bermuda corporate income tax enactment		—			(100.8	)		—			(100.8	)
Foreign exchange (gains) losses		(12.9	)		19.2			(10.0	)		34.9
Income tax expense on adjustments ⁽²⁾		(11.4	)		(7.8	)		(38.1	)		(4.9	)

Underlying net income available to SiriusPoint common shareholders	$	43.5		$	36.6		$	303.5		$	266.0

Return on average common shareholders’ equity attributable to SiriusPoint common shareholders		(4.0	)%		17.1	%		9.1	%		16.2	%

Common shareholders’ equity attributable to SiriusPoint common shareholders – beginning of period	$	2,494.9		$	2,050.0		$	2,313.9		$	1,874.7
Accumulated other comprehensive income (loss), net of tax		81.5			(135.4	)		3.1			(45.0	)
Common shareholders’ equity attributable to SiriusPoint common shareholders ex. AOCI – beginning of period		2,413.4			2,185.4			2,310.8			1,919.7

Common shareholders’ equity attributable to SiriusPoint common shareholders – end of period		1,737.4			2,313.9			1,737.4			2,313.9
Impact of adjustments from above		64.8			(56.9	)		119.6			(72.8	)
Accumulated other comprehensive income (loss), net of tax		(4.1	)		3.1			(4.1	)		3.1
Common shareholders’ equity attributable to SiriusPoint common shareholders ex. AOCI – end of period		1,806.3			2,253.9			1,861.1			2,238.0

Average common shareholders’ equity attributable to SiriusPoint common shareholders ex. AOCI	$	2,109.9		$	2,219.7		$	2,086.0		$	2,078.9

Underlying return on average common shareholders’ equity attributable to SiriusPoint common shareholders ex. AOCI		8.2	%		6.6	%		14.5	%		12.8	%

(1)	This development, which is primarily related to business written by legacy Third Point Reinsurance Ltd., is the result of the COVID-19 reserve study performed concurrently with the settlement of the Series A Preference shares in the third quarter of 2024.
(2)	An effective tax rate of 15% is applied to the adjustments to calculate the income tax expense, where applicable.

Other Financial Measures

Annualized Return on Average Common Shareholders’ Equity Attributable to SiriusPoint Common Shareholders

Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders is calculated by dividing annualized net income (loss) available to SiriusPoint common shareholders for the period by the average common shareholders’ equity determined using the common shareholders’ equity balances at the beginning and end of the period.

Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders for the three and twelve months ended December 31, 2024 and 2023 was calculated as follows:


	Three months ended						Twelve months ended
	December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
	($ in millions)
Net income (loss) available to SiriusPoint common shareholders	$	(21.3	)	$	93.5		$	183.9		$	338.8
Common shareholders’ equity attributable to SiriusPoint common shareholders – beginning of period		2,494.9			2,050.0			2,313.9			1,874.7
Common shareholders’ equity attributable to SiriusPoint common shareholders – end of period		1,737.4			2,313.9			1,737.4			2,313.9
Average common shareholders’ equity attributable to SiriusPoint common shareholders	$	2,116.2		$	2,182.0		$	2,025.7		$	2,094.3
Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders	(4.0		)%		17.1	%		9.1	%		16.2	%

Source: GlobeNewswire (MIL-OSI)

FRISCO, TX, Feb. 18, 2025 (GLOBE NEWSWIRE) — Comstock Resources, Inc. (“Comstock” or the “Company”) (NYSE: CRK) today reported financial and operating results for the quarter and year ended December 31, 2024.

Highlights of 2024‘s Fourth Quarter

Natural gas and oil sales, including realized hedging gains, were $336 million.
Operating cash flow was $223 million or $0.76 per share.
Adjusted EBITDAX for the quarter was $252 million.
Adjusted net income was $46.3 million or $0.16 per share for the quarter.
Six successful wells were turned to sales in the Western Haynesville with an average daily initial production rate of 40 MMcf per well.
Added over 64,000 net acres in the Western Haynesville, increasing total acreage in the play to 518,000 net acres.

Financial Results for the Three Months Ended December 31, 2024

Comstock produced 124.2 Bcfe in the fourth quarter as compared to 140.6 Bcfe in the fourth quarter of 2023. The lower production in the quarter was related to the decision to drop two operated rigs in early 2024 and to defer completion activity in the third quarter of 2024. Comstock’s realized natural gas price for the fourth quarter of 2024 averaged $2.32 per Mcf before hedging and $2.70 per Mcf after hedging. Natural gas and oil sales in the fourth quarter of 2024 totaled $336.1 million (including realized hedging gains of $47.8 million). Operating cash flow (excluding changes in working capital) generated in the fourth quarter of 2024 was $222.8 million, and the net loss for the fourth quarter was $55.3 million or $0.19 per share. Net loss in the quarter included a pre-tax $126.9 million unrealized loss on hedging contracts held for natural gas price risk management. Excluding this item, adjusted net income for the fourth quarter of 2024 was $46.3 million, or $0.16 per share.

Comstock’s production cost per Mcfe in the fourth quarter averaged $0.72 per Mcfe, which was comprised of $0.36 for gathering and transportation costs, $0.25 for lease operating costs, $0.06 for production and other taxes and $0.05 for cash general and administrative expenses. Comstock’s unhedged operating margin was 69% in the fourth quarter of 2024 and 73% after hedging.

Financial Results for the Year Ended December 31, 2024

Production in 2024 was 527.8 Bcfe as compared to 524.9 Bcfe in 2023. Natural gas and oil sales for the year ended December 31, 2024 totaled $1.3 billion (including realized hedging gains of $207.8 million). Operating cash flow (excluding changes in working capital) generated during the year was $675.2 million, and the net loss was $218.8 million or $0.76 per share. The adjusted net loss excluding a pre-tax $197.6 million unrealized loss on hedging contracts for the year ended December 31, 2024 was $69.0 million or $0.24 per share.

Comstock’s production cost per Mcfe during the year ended December 31, 2024 averaged $0.78 per Mcfe, which was comprised of $0.37 for gathering and transportation costs, $0.25 for lease operating costs, $0.11 for production and other taxes and $0.05 for cash general and administrative expenses. Comstock’s unhedged operating margin was 61% during 2024 and 68% after hedging.

2024 Drilling Results

Comstock drilled 50 (42.9 net) operated horizontal Haynesville/Bossier shale wells in 2024, which had an average lateral length of 10,759 feet. Comstock also turned 48 (42.9 net) operated wells to sales in 2024, which had an average initial production rate of 26 MMcf per day.

Since its last operational update in October, Comstock turned an additional six (6.0 net) operated Western Haynesville/Bossier shale wells to sales as follows:

Well	Vertical Depth (feet)	Completed Lateral (feet)	Initial Production Rate (MMcf per day)

Hodges #1	16,705	11,405	39
Powell #1	18,081	9,758	42
Hogue #1	18,872	12,055	44
Deornellas A #1	18,975	10,884	42
Deornellas B #2	17,552	9,473	40
Miles #1	15,921	10,584	34

These wells had average initial daily production rates of 40 MMcf per day and average completed lateral lengths of 10,693 feet.

2024 Proved Oil and Gas Reserves

Comstock also announced that proved natural gas and oil reserves as of December 31, 2024 were estimated at 3.8 trillion cubic feet equivalent (“Tcfe”) as compared to 4.9 Tcfe as of December 31, 2023. The reserve estimates were determined under SEC guidelines and were audited by the Company’s independent reserve engineering firm. The 3.8 Tcfe of proved reserves at December 31, 2024 were substantially all natural gas, 73% developed and 98% operated by Comstock. The present value, using a 10% discount rate, of the future net cash flows before income taxes of the proved reserves (the “PV-10 Value”), was approximately $1.6 billion using the Company’s average first of month 2024 prices of $1.84 per Mcf of natural gas and $71.07 per barrel of oil. The natural gas and oil prices used in determining the December 31, 2024 proved reserve estimates were 23% lower for natural gas and 2% lower for oil as compared to prices used at December 31, 2023.

The very low natural gas prices used to determine proved reserves resulted in many of the Company’s proved undeveloped locations being excluded from the year-end proved reserve estimates as they did not generate an adequate return at that natural gas price. Using NYMEX future market prices as of December 31, 2024 of $3.26 per Mcf for natural gas and $59.10 per barrel of oil, as adjusted for the Company’s basis differentials, proved reserves would have been 7.0 Tcfe with a PV-10 value of $5.7 billion.

The following table reflects the changes in the SEC and NYMEX proved reserve estimates since the end of 2023:

	SEC			NYMEX
	(Bcfe)
Proved Reserves:
Proved Reserves at December 31, 2023		4,943.5			6,654.4
Production		(527.8	)		(528.0	)
Extensions and discoveries		531.3			899.4
Divestitures		(2.4	)		(3.0	)
Revisions		(1,180.5	)		(0.3	)
Proved Reserves at December 31, 2024		3,764.1			7,022.5

Comstock replaced 101% of its 2024 production excluding revisions under SEC pricing and replaced 170% of its 2024 production under NYMEX pricing.

2025 Budget

In response to improved natural gas prices, the Company plans to increase the number of operating drilling rigs it is running from five to seven during 2025. Four of the rigs will be devoted to the Western Haynesville to continue to delineate the new play. As a result, Comstock plans to spend approximately $1.0 billion to $1.1 billion in 2025 on its development and exploration projects to drill 46 (40.3 net) operated horizontal wells and to turn 46 (39.7 net) operated wells to sales in 2025. Comstock expects to spend $130 million to $150 million on its Western Haynesville midstream system, which will be funded by its midstream partnership.

Earnings Call Information

Comstock has planned a conference call for 10:00 a.m. Central Time on February 19, 2025, to discuss the fourth quarter 2024 operational and financial results. Investors wishing to listen should visit the Company’s website at www.comstockresources.com for a live webcast. Investors wishing to participate in the conference call telephonically will need to register at:
https://register.vevent.com/register/BI6e0b4d6ba76e49049b0b8093ff4a87a6

Upon registering to participate in the conference call, participants will receive the dial-in number and a personal PIN number to access the conference call. On the day of the call, please dial in at least 15 minutes in advance to ensure a timely connection to the call. The conference call will also be broadcast live in listen-only mode and can be accessed via the website URL: https://edge.media-server.com/mmc/p/siuhk9j5.

If you are unable to participate in the original conference call, a web replay will be available for twelve months beginning at 1:00 p.m. CT on February 19, 2025. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/siuhk9j5.

This press release may contain “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management’s current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct. Information concerning the assumptions, uncertainties and risks that may affect the actual results can be found in the Company’s filings with the Securities and Exchange Commission (“SEC”) available on the Company’s website or the SEC’s website at sec.gov.

Comstock Resources, Inc. is a leading independent natural gas producer with operations focused on the development of the Haynesville shale in North Louisiana and East Texas. The Company’s stock is traded on the New York Stock Exchange under the symbol CRK.

COMSTOCK RESOURCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Revenues:
Natural gas sales	$	287,626		$	348,385		$	1,043,886		$	1,259,450
Oil sales		672			1,050			3,597			5,161
Total natural gas and oil sales		288,298			349,435			1,047,483			1,264,611
Gas services		78,208			61,148			206,097			300,498
Total revenues		366,506			410,583			1,253,580			1,565,109
Operating expenses:
Production and ad valorem taxes		7,707			31,912			57,437			91,803
Gathering and transportation		44,434			46,925			194,890			184,906
Lease operating		31,379			31,678			130,504			132,203
Exploration		—			—			—			1,775
Depreciation, depletion and amortization		202,116			185,558			795,397			607,908
Gas services		72,611			57,733			205,407			282,050
General and administrative		10,164			6,000			39,435			37,992
Loss (gain) on sale of assets		35			—			(875	)		(125	)
Total operating expenses		368,446			359,806			1,422,195			1,338,512
Operating income (loss)		(1,940	)		50,777			(168,615	)		226,597
Other income (expenses):
Gain (loss) from derivative financial instruments		(79,022	)		111,449			10,196			187,639
Other income		284			304			1,211			1,771
Interest expense		(54,616	)		(47,936	)		(210,621	)		(169,018	)
Total other income (expenses)		(133,354	)		63,817			(199,214	)		20,392
Income (loss) before income taxes		(135,294	)		114,594			(367,829	)		246,989
(Provision for) benefit from income taxes		79,981			(6,217	)		149,075			(35,095	)
Net income (loss)		(55,313	)		108,377			(218,754	)		211,894
Net income attributable to noncontrolling interest		(2,816	)		(777	)		(10,897	)		(777	)
Net income (loss) attributable to Comstock	$	(58,129	)	$	107,600		$	(229,651	)	$	211,117

Net income (loss) per share:
Basic	$	(0.19	)	$	0.39		$	(0.76	)	$	0.76
Diluted	$	(0.19	)	$	0.39		$	(0.76	)	$	0.76
Weighted average shares outstanding:
Basic		290,170			276,999			287,010			276,806
Diluted		290,170			276,999			287,010			276,806
Dividends per share	$	—		$	0.125		$	—		$	0.500

COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands, except per unit amounts)

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Natural gas production (MMcf)		124,128			140,565			527,548			524,467
Oil production (Mbbls)		10			13			50			70
Total production (MMcfe)		124,185			140,649			527,847			524,890

Natural gas sales	$	287,626		$	348,385		$	1,043,886		$	1,259,450
Natural gas hedging settlements ⁽¹⁾		47,847			4,107			207,803			80,328
Total natural gas including hedging		335,473			352,492			1,251,689			1,339,778
Oil sales		672			1,050			3,597			5,161
Total natural gas and oil sales including hedging	$	336,145		$	353,542		$	1,255,286		$	1,344,939

Average natural gas price (per Mcf)	$	2.32		$	2.48		$	1.98		$	2.40
Average natural gas price including hedging (per Mcf)	$	2.70		$	2.51		$	2.37		$	2.55
Average oil price (per barrel)	$	67.20		$	80.77		$	71.94		$	73.73
Average price (per Mcfe)	$	2.32		$	2.48		$	1.98		$	2.41
Average price including hedging (per Mcfe)	$	2.71		$	2.51		$	2.38		$	2.56

Production and ad valorem taxes	$	7,707		$	31,912		$	57,437		$	91,803
Gathering and transportation		44,434			46,925			194,890			184,906
Lease operating		31,379			31,678			130,504			132,203
Cash general and administrative ⁽²⁾		6,282			3,141			24,174			28,125
Total production costs	$	89,802		$	113,656		$	407,005		$	437,037

Production and ad valorem taxes (per Mcfe)	$	0.06		$	0.23		$	0.11		$	0.18
Gathering and transportation (per Mcfe)		0.36			0.33			0.37			0.35
Lease operating (per Mcfe)		0.25			0.23			0.25			0.25
Cash general and administrative (per Mcfe)		0.05			0.02			0.05			0.05
Total production costs (per Mcfe)	$	0.72		$	0.81		$	0.78		$	0.83

Unhedged operating margin		69	%		67	%		61	%		65	%
Hedged operating margin		73	%		68	%		68	%		68	%

Gas services revenues	$	78,208		$	61,148		$	206,097		$	300,498
Gas services expenses		72,611			57,733			205,407			282,050
Gas services margin	$	5,597		$	3,415		$	690		$	18,448

Natural Gas and Oil Capital Expenditures:
Unproved property acquisitions	$	18,448		$	21,907		$	106,386		$	98,553
Total natural gas and oil properties acquisitions	$	18,448		$	21,907		$	106,386		$	98,553
Exploration and Development:
Development leasehold	$	1,308		$	8,818		$	13,461		$	27,905
Exploratory drilling and completion		134,779			65,079			354,557			244,129
Development drilling and completion		96,021			233,856			503,550			974,664
Other development costs		8,325			6,262			30,500			25,130
Total exploration and development capital expenditures	$	240,433		$	314,015		$	902,068		$	1,271,828

(1) Included in gain (loss) from derivative financial instruments in operating results.

(2) Excludes stock-based compensation.

COMSTOCK RESOURCES, INC.
NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
ADJUSTED NET INCOME (LOSS):
Net income (loss)	$	(55,313	)	$	108,377		$	(218,754	)	$	211,894
Unrealized loss (gain) from derivative financial instruments		126,869			(107,342	)		197,607			(107,311	)
Exploration expense		—			—			—			1,775
Loss (gain) on sale of assets		35			—			(875	)		(125	)
Adjustment to income taxes		(25,333	)		26,868			(46,981	)		26,450
Adjusted net income (loss) ⁽¹⁾	$	46,258		$	27,903		$	(69,003	)	$	132,683

Adjusted net income (loss) per share ⁽²⁾	$	0.16		$	0.10		$	(0.24	)	$	0.47
Diluted shares outstanding		292,983			276,999			287,010			276,806


ADJUSTED EBITDAX:
Net income (loss)	$	(55,313	)	$	108,377		$	(218,754	)	$	211,894
Interest expense		54,616			47,936			210,621			169,018
Income taxes		(79,981	)		6,217			(149,075	)		35,095
Depreciation, depletion, and amortization		202,116			185,558			795,397			607,908
Exploration		—			—			—			1,775
Unrealized loss (gain) from derivative financial instruments		126,869			(107,342	)		197,607			(107,311	)
Stock-based compensation		3,881			2,861			15,261			9,867
Loss (gain) on sale of assets		35			—			(875	)		(125	)
Total Adjusted EBITDAX ⁽³⁾	$	252,223		$	243,607		$	850,182		$	928,121

(1) Adjusted net income (loss) is presented because of its acceptance by investors and by Comstock management as an indicator of the Company’s profitability excluding, non-cash unrealized gains and losses on derivative financial instruments, gains and losses on sales of assets and other unusual items.

(2) Adjusted net income (loss) per share is calculated to include the dilutive effects of unvested restricted stock pursuant to the two-class method and performance stock units and preferred stock pursuant to the treasury stock method.

(3) Adjusted EBITDAX is presented in the earnings release because management believes that adjusted EBITDAX, which represents Comstock’s results from operations before interest, income taxes, and certain non-cash items, including depreciation, depletion and amortization, unrealized (gain) loss from derivative financial instruments and exploration expense, is a common alternative measure of operating performance used by certain investors and financial analysts.

COMSTOCK RESOURCES, INC.
NON-GAAP FINANCIAL MEASURES
(In thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
OPERATING CASH FLOW ⁽¹⁾:
Net income (loss)	$	(55,313	)	$	108,377		$	(218,754	)	$	211,894
Reconciling items:
Unrealized loss (gain) from derivative financial instruments		126,869			(107,342	)		197,607			(107,311	)
Deferred income taxes		(57,754	)		15,423			(124,919	)		44,301
Depreciation, depletion and amortization		202,116			185,558			795,397			607,908
Amortization of debt discount and issuance costs		2,957			1,984			11,476			7,964
Stock-based compensation		3,881			2,861			15,261			9,867
Loss (gain) on sale of assets		35			—			(875	)		(125	)
Operating cash flow	$	222,791		$	206,861		$	675,193		$	774,498
(Increase) decrease in accounts receivable		(18,989	)		(16,626	)		56,584			278,697
(Increase) decrease in other current assets		(22,144	)		1,369			(22,893	)		745
Increase (decrease) in accounts payable and other accrued expenses		85,395			36,603			(88,547	)		(37,094	)
Net cash provided by operating activities	$	267,053		$	228,207		$	620,337		$	1,016,846

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
FREE CASH FLOW ⁽²⁾:
Operating cash flow	$	222,791		$	206,861		$	675,193		$	774,498
Less:
Exploration and development capital expenditures		(240,433	)		(314,015	)		(902,068	)		(1,271,828	)
Midstream capital expenditures		(38,638	)		(14,098	)		(85,377	)		(35,694	)
Other capital expenditures		(558	)		(11	)		(2,264	)		(491	)
Contributions from midstream partnership		24,500			24,000			60,500			24,000
Free cash deficit from operations	$	(32,338	)	$	(97,263	)	$	(254,016	)	$	(509,515	)
Acquisitions		(18,448	)		(21,907	)		(106,386	)		(98,553	)
Proceeds from divestitures		—			—			1,214			41,295
Free cash deficit after acquisition and divestiture activity	$	(50,786	)	$	(119,170	)	$	(359,188	)	$	(566,773	)

(1) Operating cash flow is presented in the earnings release because management believes it to be useful to investors as a common alternative measure of cash flows which excludes changes to other working capital accounts.

(2) Free cash flow from operations and free cash flow after acquisition and divestiture activity are presented in the earnings release because management believes them to be useful indicators of the Company’s ability to internally fund acquisitions and debt maturities after exploration and development capital expenditures, midstream and other capital expenditures, proved and unproved property acquisitions, and proceeds from divestitures of natural gas and oil properties.

COMSTOCK RESOURCES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)

	December 31, 2024		December 31, 2023
ASSETS
Cash and cash equivalents	$	6,799	$	16,669
Accounts receivable		174,846		231,430
Derivative financial instruments		4,865		126,775
Other current assets		97,524		86,619
Total current assets		284,034		461,493
Property and equipment, net		5,688,389		5,384,771
Goodwill		335,897		335,897
Operating lease right-of-use assets		73,777		71,462
	$	6,382,097	$	6,253,623

LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	421,814	$	523,260
Accrued costs		146,173		134,466
Operating leases		35,927		23,765
Derivative financial instruments		8,940		—
Total current liabilities		612,854		681,491
Long-term debt		2,952,090		2,640,391
Deferred income taxes		345,116		470,035
Derivative financial instruments		66,757		—
Long-term operating leases		37,740		47,742
Asset retirement obligation		33,996		30,773
Total liabilities		4,048,553		3,870,432
Stockholders’ Equity:
Common stock		146,130		139,214
Additional paid-in capital		1,366,274		1,260,930
Accumulated earnings		728,619		958,270
Total stockholders’ equity attributable to Comstock		2,241,023		2,358,414
Noncontrolling interest		92,521		24,777
Total stockholders’ equity		2,333,544		2,383,191
	$	6,382,097	$	6,253,623

Source: Government of India (2)

Posted On: 18 FEB 2025 7:11PM by PIB Delhi

The Technology Advisory Group (TAG) constituted by the Empowered Technology Group (ETG) convened its second meeting today under the chairmanship of Professor Ajay Kumar Sood, Principal Scientific Adviser (PSA) to the Government of India, to discuss the landscape, opportunities, and necessary interventions for strengthening advanced manufacturing in India.

(PSA Prof Sood opening the session and delivering his initial remarks)

The meeting brought together members of the TAG (comprising of 9 members from academia and 10 members from industry) (https://www.psa.gov.in/etg), members of the ETG, senior government officials, and domain experts to discuss ongoing activities and initiatives in advanced manufacturing in India, comparative analysis of the global landscape, and development of a coordinated national roadmap to accelerate manufacturing innovation.

In his address, Professor Sood highlighted the recently announced National Manufacturing Mission in the Union Budget 2025, which is aimed at advancing India as a global manufacturing hub. He underscored the critical role of the ETG in identifying the most important challenges before the country across various sectors that can be addressed through suitable and appropriate technologies and the expert advisory support provided by the TAG, in fulfilling its Nation Building responsibilities. He noted that discussions on several key topics in the first TAG meeting, such as Alternative Battery Technologies, Carbon Capture, Utilization, and Storage (CCUS), and Artificial Intelligence (AI), have contributed to significant national initiatives, including the AI mission, Anusandhan National Research Foundation (ANRF) MAHA-EV mission, and the CCUS mission.

Prof. Sood emphasized that today’s discussions on Advanced Manufacturing are aimed at identifying key technologies and bottlenecks across the value chain—from design and production to sustainability and end-of-life considerations—to enhance efficiency, quality, sustainability and competitiveness. He emphasized that advanced manufacturing aligns closely with the vision of Atmanirbhar Bharat, ensuring self-reliance and global leadership in critical sectors.

Dr. Preeti Banzal, Adviser/Scientist ‘G’ at the Office of the Principal Scientific Adviser to the Government of India, provided an overview of the ETG, outlining its mandate and functioning and the establishment of the TAG within its framework. Since its inception in February 2020, the ETG has conducted 65 meetings, evaluating 122 R&D, technology development/procurement and policy proposals from 27 ministries and engaging 153 subject matter experts to provide insights and recommendations for driving advancements in science, technology and innovation. She also highlighted key aspects of advanced manufacturing technologies, their strategic significance and latest developments from a national perspective.

The meeting featured in-depth presentations from leading experts covering critical dimensions of advanced manufacturing:

Dr. Nagahanumaiah, Director, Central Manufacturing Technology Institute (CMTI), Bangalore, presented on “Engineering of Smart Capital Goods”, focusing on India’s competitiveness in advanced manufacturing and the role of smart automation in shaping the future. He also gave an overview of the products developed and facilities at CMTI.

Dr. Gurumurthy, Director, Foundation for Science Innovation and Development (FSID), IISc Bengaluru, discussed “Digitalized Manufacturing”, emphasizing additive and hybrid manufacturing, smart Industrial IoT systems, and predictive maintenance using digital twin technology.

Dr. Sankhadip Das, Scientist E, Ministry of Electronics and IT (MeitY), delivered insights on “Additive Manufacturing”, highlighting its applications in aerospace, defense, healthcare, and automotive sectors, and its alignment with the United Nations Sustainable Development Goals (SDGs). He also talked about the National Strategy for Additive Manufacturing (NSAM) launched by MeitY in 2022.

Mr. Atul Choudhari, CTO, Tata Consulting Engineers Limited and Member of TAG, presented on “3D Concrete Printing using Construction Waste”, showcasing sustainable solutions for cost-effective, eco-friendly infrastructure development.

Prof. Kaushik Chatterjee, Chair, Department of Bioengineering, IISc Bengaluru, elucidated the new frontier of “4D Printing” and its applications in healthcare, including microrobots and deployable medical devices.

Dr. N. Subramanian, Executive Director, Society for Electronic Transactions and Security (SETS) gave insights on the cybersecurity aspects of advanced manufacturing.

The interventions thereafter resulted in insights and recommendations to strengthen the overall ecosystem for the advanced manufacturing sector in the country. The discussion highlighted the need for a nationally coordinated effort to accelerate advanced manufacturing capabilities, stakeholder collaboration between government, industry, and academia, capacity building and skill development to create a globally competitive workforce.

Dr. (Mrs.) Parvinder Maini, Scientific Secretary, Office of the Principal Scientific Adviser to the Government of India, summarised the key points which emerged during the discussions, including the need for shared infrastructure, skilled workforce, addressing core technology issues, building capability centres close to manufacturing centres, creation of sensor hubs, regulatory alignments, creation of standards and coherent policies on advanced manufacturing.

In his closing remarks, Prof. Sood reiterated that a structured and strategic approach to advanced manufacturing would be a key enabler for India’s long-term industrial growth, and ambitions towards a robust product nation, aligning with the broader objectives of the National Manufacturing Mission.

***

MJPS/ST

(Release ID: 2104455) Visitor Counter : 59

MIL OSI Asia Pacific News –

Source: European Parliament

In 2023, Cyprus accounted for around 0.3 % of the EU’s net greenhouse gas (GHG) emissions, and achieved a net emissions reduction of 5.6 % compared with 2005. The country’s total emissions decreased by 4.7 % between 2005 and 2023, while its net carbon removals in the land use, land-use change and forestry (LULUCF) sector increased by 36 %. Emissions from sectors covered by the effort-sharing legislation have increased by 7.9 % since 2005, and in 2023 were slightly higher than those from sectors under the EU emissions trading system (ETS), which were down 14.9 % over the same period. Although Cyprus intends to reach zero net emissions in 2050 (see trajectory in Figure 1), the level of progress towards the EU climate neutrality objective appears to be insufficient. The European Commission assessed Cyprus’s draft updated national energy and climate plan (NECP) and made recommendations. The final updated NECP was submitted in December 2024. Almost half of Cyprus’s national recovery and resilience plan, which includes a REPowerEU chapter, is dedicated to the green transition, with a focus on energy and transport. In a 2023 survey, 39 % of Cypriots, compared with a 46 % EU average, identified climate change as one of the four most serious problems facing the world. Most expect the national government (69 %), business and industry (67 %) and/or the EU (63 %) to tackle climate change, while 41 % think it is a personal responsibility.

MIL OSI Europe News –

Source: GlobeNewswire (MIL-OSI)

GAITHERSBURG, Md., Feb. 18, 2025 (GLOBE NEWSWIRE) — GL Communications Inc., a global leader in telecom testing solutions, addressed the press regarding their High-Density Call Emulation Tools, which can emulate thousands of simultaneous phone calls over IP, TDM, and Analog networks. These solutions allow users to generate and analyze a large number of phone calls, replicating real-world traffic conditions in a controlled test environment.

[For illustration, refer to High-Density Call Emulation Architecture]

There is a rapidly growing demand for voice, video, and data services world-wide. Service providers and customers alike must rigorously test their networks to identify performance bottlenecks and bandwidth limitations. GL’s solutions provide comprehensive load testing, call monitoring, and voice quality measurements across various telecom networks.

Vijay Kulkarni, CEO of GL Communications, states, “GL provides solutions to emulate thousands of simultaneous phone calls across IP, TDM, and Analog networks. Customers can load test infrastructure, monitor calls, and measure voice quality. Our solutions include GUI and scripting for call emulation and are available in both portable and rack-mount form factors. They support all telecom protocols, including VoIP (SIP + RTP), ISDN, SS7, and Analog (FXO/FXS), and emulate FAX calls over these networks.”

GL’s Message Automation and Protocol Simulation (MAPS™) framework emulates IP, TDM, and Analog protocols. Additionally, MAPS™ High-Density (HD) is a dedicated hardware appliance serving as an advanced RTP media generator for high-volume VoIP call emulation. It supports signaling and traffic generation for IP and Wireless networks, including SIP, GSM A, BICC, MGCP, and H.248/MEGACO, along with voice quality testing using E-model (R-factor) and MOS. Available in rack-mount or portable configurations with up to 8 x 1GigE interfaces, it generates up to 64,000 simultaneous calls per appliance.

The MAPS™ platform also supports multiple TDM protocols, including CAS, ISDN, SS7, FXO, FXS, MAP, CAP, INAP, and GSM, enabling large call volumes and high call rates for legacy networks, facilitating effective network performance testing under heavy traffic.

MAPS™ SS7 Protocol Emulator emulates high volumes of ISUP traffic over TDM networks, enabling automated stress and load testing through Load and Bulk Call Generation. This supports efficient network performance evaluation, reliability testing, and capacity planning in SS7 environments, with compatibility across ANSI, China, ETSI, ITU, and UK standards.

MAPS™ ISDN Protocol Emulator emulates ISDN signaling over TDM networks, generating high volumes of ISDN traffic for comprehensive testing. It supports various ISDN standards, including ITU-T Q.931, 5ESS, 4ESS, BELL, DMS-100, DMS-250, and QSIG ECMA, and can emulate Q.921 LAPD signaling over ISDN’s D channel.

MAPS™ CAS Protocol Emulator emulates Channel Associated Signaling (CAS) calls to test network performance under stress. It supports CAS signaling types like Loop Start, R1, MFC-R2, and Feature Group D (FGD), generating numerous simultaneous calls with DTMF/MF tones, signaling bits, and dialed digits to assess telecom system capacity and resilience.

MAPS™ Analog Phone Simulator (APS) is a high-capacity analog call generator for testing Central Offices, PBXs, Gateways, and other telecom equipment. It includes server hardware, GL MAPS™ software, channel banks, and optional fax emulation and voice quality testing modules in a compact rack-mount system. MAPS™ APS system supports up to 96 independent FXO/FXS ports per server.

Other key features include:

API support for Python and Java, enabling integration with automation frameworks
Script-based, protocol-independent MAPS™ architecture
Transmits and detects media traffic, including digits, voice files, single/dual tones, and fax
Manual and automated bulk call emulation for efficient testing
Periodic logging and reporting of call-related metrics, such as attempted calls, failed calls, and Mean Opinion Scores

About GL Communications Inc.,

GL Communications is a global provider of telecom test and measurement solutions. GL’s solutions are used to verify the quality and reliability of Wireless, Fiber Optic, TDM and Analog networks.

Warm Regards,

Vikram Kulkarni, PhD

Phone: 301-670-4784 x114

Email: info@gl.com

Source: GlobeNewswire (MIL-OSI)

BEIJING, Feb. 18, 2025 (GLOBE NEWSWIRE) — Leishen Energy Holding Co., Ltd. (“Leishen Energy”), a leading provider of clean-energy equipment and integrated solutions for the oil and gas industry, today announced its fiscal year 2024 financial results, showcasing robust performance driven by effective cost management, strategic market expansion, and growing demand for the Company’s innovative product offerings.

Fiscal Year 2024 Financial Highlights

Operating Cash Flow Grows 243%, rising to USD $15.07 million in fiscal year 2024, up from USD $4.39 million in fiscal year 2023, marking a more than 243% year-over-year increase. This sharp rise was driven by robust accounts receivable collections, efficiency gains, and disciplined costs.
Total Revenues were USD $69.07 million, compared to USD $73.08 million in fiscal year 2023, representing a 5.5% decrease year-over-year. The decline was primarily attributable to lower sales of clean-energy equipment in the domestic market, partially offset by growth in the Company’s new energy business.
Gross Profit totaled USD $16.03 million, down from USD $18.38 million in the prior year, reflecting a gross margin of 23.2% (25.1% in fiscal year 2023). The margin decrease was primarily driven by lower margins in oil and gas engineering technical services.
Net Income was USD $7.99 million, compared to USD $11.63 million in fiscal year 2023, reflecting a 31.3% decrease.
Operating Expenses rose from USD $6.49 million in fiscal year 2023 to USD $8.48 million in fiscal year 2024, largely due to higher selling and marketing costs associated with international market expansion, as well as increased research and development.
Net Income Attributable to Leishen Energy was USD $8.10 million, reflecting a decrease of USD $3.76 million year-over-year.

Segment Performance

Clean-Energy Equipment
- Revenue declined by 14.6% year-over-year, to USD $33.82 million, mainly due to reduced domestic orders amid tighter market competition and lower selling prices for certain common products. The segment contributed 49.0% of total revenues.
Digitalization and Integration Equipment
- Revenue was USD $3.08 million, reflecting a modest year-over-year decline. Gross margin improved to 18.2% as the Company continued to streamline costs and enhance efficiency.
New Energy Sales
- Revenue grew 11.3%, reaching USD $25.82 million, driven by increased demand for natural gas. The Company added a major new client in fiscal year 2024, contributing over USD $1.5 million in revenue.
Oil and Gas Engineering Technical Services
- Revenue was USD $6.35 million, representing a decrease of 8.4% from the prior year, due to intensified pricing pressure and customers adopting lower-cost operating models. Despite increased competition, the Company continues to develop new projects at home and abroad.

Management Commentary

“We are pleased to report that while Leishen Energy experienced year-over-year declines in revenue and profitability in fiscal 2024, we have strengthened our position in new energy sales and increased our presence in international markets,” said Hongliang Li, Chief Executive Officer of Leishen Energy. “The successful expansion of our customer base—particularly in overseas regions—and ongoing investments in research and development underscore our commitment to delivering innovative, high-performance energy solutions.”

Zhiping Yu, Chief Financial Officer, added: “As we navigate near-term market pressures, we remain focused on cost optimization and strategic capital allocation. We believe our prudent balance sheet management, coupled with targeted investments in key growth areas, will help us enhance our financial performance and maintain sustainable returns for our shareholders in the years to come.”

Business Outlook

The Company aims to capitalize on the following growth drivers and strategic initiatives in fiscal year 2025 and beyond:

International Expansion: Continued pursuit of overseas projects in Central Asia, Southeast Asia, and the Middle East, including joint reserve warehouses of spare parts with major oilfields and new power plant operation and maintenance projects in Africa.
Technology and Innovation: Further investment in research and development to strengthen patented technologies, with 72 patents now held across clean-energy equipment, oil and gas engineering technical services, and new energy production and operation.
Customer Diversification: Ongoing efforts to deepen relationships with long-standing domestic clients while expanding the Company’s international customer pipeline, particularly in digitalization and integration equipment sales.
Operational Efficiencies: Enhancement of cost-control measures, rigorous supply chain management, and new supplier partnerships to mitigate inflationary pressures and disruptions.

LEISHEN ENERGY HOLDING CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
	2024						2023						Variance
	Amount			% of revenue			Amount			% of revenue			Amount			%
Revenues	$	69,073,374			100.0	%	$	73,084,448			100.0	%	$	(4,011,074	)		(5.5	)%
Cost of revenues		(53,038,855	)		(76.8	)%		(54,705,407	)		(74.9	)%		1,666,552			(3.0	)%
Gross profit		16,034,519			23.2	%		18,379,041			25.1	%		(2,344,522	)		(12.8	)%

Operating expenses:
Selling and marketing		2,053,194			3.0	%		775,957			1.1	%		1,277,237			164.6	%
General and administrative		5,979,890			8.7	%		5,553,912			7.6	%		425,978			7.7	%
Research and development		449,542			0.7	%		158,657			0.2	%		290,885			183.3	%
Total operating expenses		8,482,626			12.4	%		6,488,526			8.9	%		1,994,100			30.7	%

Income from operations		7,551,893			10.8	%		11,890,515			16.2	%		(4,338,622	)		(36.5	)%

Other income (loss):
Interest expense		(57,018	)		(0.1	)%		(67,964	)		(0.1	)%		10,946			(16.1	)%
Exchange (loss) gains		(18,107	)		0.0	%		280,538			0.4	%		(298,645	)		(106.5	)%
Gain from equity investment		81,150			0.1	%		80,616			0.10	%		534			0.7	%
Net investment income		445,271			0.6	%		108,671			0.1	%		336,600			309.7	%
Other expenses, net		171,845			0.2	%		71,850			0.0	%		99,995			139.2	%
Total other income, net		623,141			0.8	%		473,711			0.6	%		149,430			31.5	%

Income before income taxes		8,175,034			11.6	%		12,364,226			16.8	%		(4,189,192	)		(33.9	)%

Provision for income taxes		184,818			0.3	%		729,506			1.0	%		(544,688	)		(74.7	)%

Net income		7,990,216			11.3	%		11,634,720			15.8	%		(3,644,504	)		(31.3	)%
Net loss attributable to non-controlling interests		(105,655	)		(0.2	)%		(223,870	)		(0.3	)%		118,215			(52.8	)%
Net income attributable to Leishen Energy Holding Co., Ltd.	$	8,095,871			11.5	%	$	11,858,590			16.1	%	$	(3,762,719	)		(31.7	)%

LEISHEN ENERGY HOLDING CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	As of September 30,
	2024			2023
	US$			US$
ASSETS
Current Assets:
Cash	$	5,811,798		$	4,567,608
Restricted cash		1,489,216			–
Short-term investments		17,850,648			7,234,607
Accounts receivable, net		21,826,297			30,742,914
Notes receivable		1,054,528			1,304,004
Advance to suppliers, net		5,896,595			5,637,829
Inventories		5,396,634			7,877,202
Due from related parties		31,535			44,848
Loan receivable – related party		822,878			–
Prepaid expenses and other current assets, net		1,567,060			1,351,049
Total current assets		61,747,189			58,760,061

Non-current assets:
Long-term investments		1,758,515			1,670,461
Deferred offering costs		437,653			271,155
Property and equipment, net		4,111,919			3,838,135
Intangible assets		140,070			152,901
Operating lease right-of-use assets, net		668,259			712,065
Loans receivable, non-current		725,699			–
Other non-current assets		44,746			52,351
Total non-current assets		7,886,861			6,697,068

Total Assets	$	69,634,050		$	65,457,129

LIABILITIES AND EQUITY
Current Liabilities:
Short-term loans	$	50,899		$	1,090,378
Accounts payable		10,731,238			11,758,870
Advance from customers		2,292,728			1,465,285
Taxes payable		3,418,725			2,755,661
Due to related parties		9,239,059			13,387,546
Operating lease liabilities		68,291			62,057
Other payables and other current liabilities		1,339,969			1,303,371
Total current liabilities		27,140,909			31,823,168

Non-current Liabilities:
Long-term loans		1,127,380			49,676
Deferred tax liabilities, net		307,513			1,175,703
Operating lease liabilities, non-current		602,735			650,007
Total non-current liabilities		2,037,628			1,875,386

Total Liabilities		29,178,537			33,698,554

Equity:
Ordinary shares, par value $0.001 per share, 50,000,000 shares authorized; 15,500,000 shares issued and outstanding*		15,500			15,500
Subscription receivable		(15,500	)		(15,500	)
Additional paid-in capital		1,617,966			1,617,966
Statutory reserves		1,690,994			1,565,649
Retained earnings		37,339,006			29,368,480
Accumulated other comprehensive loss		(861,374	)		(1,746,809	)
Total equity attributable to Leishen Energy Holding Co., Ltd		39,786,592			30,805,286
Non-controlling interests		668,921			953,289
Total Equity		40,455,513			31,758,575

Total Liabilities and Equity	$	69,634,050		$	65,457,129

About Leishen Energy Holding Co., Ltd.

The Leishen Group was founded in 2007 and is a China-based provider of clean-energy equipment and integrated solutions for the oil and gas industry, with a commitment to providing customers with high-performance, safe and cost-effective energy solutions. Our major lines of business include (i) sale of clean-energy industry; (ii) new energy production and operation; (iii) digitalization and integration equipment; and (iv) oil and gas engineering technical services. At present, the Group holds more than 70 patents and software copyrights, forming a comprehensive ecosystem of core technical capabilities. Currently, our business operations have expanded beyond the PRC to Central Asia, and Southeast Asia, and our service abilities and quality have been widely recognized and praised by foreign customers. Efficient, safe and energy-saving equipment combined with professional technical services have enabled our brand to gain positive attention and recognition from our customers and enabled us to become a well-known equipment and services provider in the oil and gas industry. For more information, please visit the Company’s website: www.r-egroup.com.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company’s share offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that may affect its financial condition, results of operations, business strategy and financial needs, including the expectation that the offering will be successfully completed. Investors can find many (but not all) of these statements by the use of words such as “aim”, “anticipate”, “believe”, “estimate”, “expect”, “going forward”, “intend”, “may”, “plan”, “potential”, “predict”, “propose”, “seek”, “should”, “will”, “would” or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

For more information, please contact:

Investor Relations

Michael Wei
Email:hwey@horizonconsultancy.co

Source: GlobeNewswire (MIL-OSI)

MIAMI, Feb. 18, 2025 (GLOBE NEWSWIRE) — NextNRG Inc. (“NextNRG” or the “Company”) (NASDAQ: NXXT), a pioneer in Artificial Intelligence and Machine Learning applications for energy solutions, today announced its fueling-division EzFill, has entered into a fleet fueling agreement with Florida Beauty, a division of Mogul Energy International, Inc. (OTCMARKETS: MGUY), a publicly traded company specializing in refrigerated logistics and the transportation of time- and temperature-sensitive cargo.

This strategic collaboration highlights NextNRG’s focus on rapidly expanding its commercial fleet fueling services while providing additional shareholder value for both companies through operational synergies and innovative solutions. Under the agreement, NextNRG will deliver mobile fueling solutions to Florida Beauty’s fleet of over 200 semi-trucks and 300 refrigerated trailers.

Florida Beauty is one of the nation’s largest floral logistics companies and plays a key role in the transportation of fresh-cut flowers and other perishable goods across the country. During peak season times, Florida Beauty anticipates more than 1,000 loads leaving its facilities in Miami, FL and Ventura CA to support flower distribution.

As a high-volume carrier, Florida Beauty relies on efficient fueling logistics to maintain supply efficiency during high demand periods like Valentine’s Day and Mother’s Day, when supply chain reliability is critical.

With floral imports exceeding 1.1 billion stems annually, according to U.S. Customs and Border Protection, a consistent fuel supply is essential for minimizing downtime and ensuring timely deliveries. Miami International Airport handles nearly 90% of the nation’s fresh-cut flower imports during peak seasons, making it a critical hub for floral logistics. NextNRG’s fleet fueling services help companies like Florida Beauty operate efficiently, reducing disruptions and optimizing delivery operations.

“As one of the nation’s largest transporters of fresh-cut flowers arriving from South America to Miami, and with over 40 years of experience in nationwide floral logistics, we take great pride in streamlining our operations,” said Ronen Koubi, CEO of Mogul Energy International, Inc. “Florida Beauty spends approximately $12 million annually refueling its massive fleet. With NextNRG, we can significantly improve efficiency by having fuel delivered directly to us, saving time and labor costs while reducing operational disruptions. Additionally, we look forward to continuing discussions with NextNRG about the electrification of our fleet and the deployment of a smart microgrid and wireless charging solutions at our headquarters.”

“This Agreement with Florida Beauty reflects the value of combining innovative fueling solutions with the needs of high-volume logistics providers,” said, Michael D. Farkas CEO and Executive Chairman of NextNRG. “By working together, we will help Florida Beauty maximize operational efficiency while reinforcing our commitment to delivering tailored solutions for industries where uptime and reliability are essential. This agreement brings significant value to both organizations, strengthening shareholder confidence and positioning NextNRG as the go-to fueling solution for fleet operators in perishable goods logistics.”

About NextNRG, Inc. (f/k/a EzFill Holdings, Inc.)

NextNRG Holding Corp. (NextNRG) and EzFill have merged to form a combined entity focused on renewable energy, mobile fueling, and next-generation energy infrastructure. By leveraging artificial intelligence (AI) and machine learning (ML) technologies, NextNRG is developing an integrated ecosystem that combines solar energy generation, battery storage, wireless electric vehicle (EV) charging, and on-demand fuel delivery.

At the core of NextNRG’s strategy is the deployment of NextNRG Smart Microgrids, which utilize AI-driven energy management alongside solar power and battery storage to enhance energy efficiency, reduce costs, and improve grid resiliency. These microgrids are designed to serve commercial properties, schools, hospitals, nursing homes, parking garages, rural and tribal lands, recreational facilities, and government properties, expanding energy accessibility while supporting decarbonization initiatives.

Following the merger with EzFill, NextNRG is integrating sustainable energy solutions into mobile fueling operations. The company will provide renewable energy to its fueling partners, supporting more efficient fuel delivery while advancing clean energy adoption. It continues to expand its growing fleet of fuel delivery trucks and national footprint, including the acquisition of Yoshi Mobility’s fuel division, further solidifying its position as a leader in the on-demand fueling industry.

By combining renewable energy innovation with mobile fueling expertise, NextNRG is building a sustainable energy ecosystem that bridges traditional fuel needs with AI-powered clean energy solutions.

The combined entity, NextNRG, trades under the symbol NXXT on the Nasdaq Capital Market. To find out more visit NextNRG.com.

About Mogul Energy International, Inc.

Mogul Energy International, Inc. (OTCMARKETS: MGUY), operating under the Florida Beauty brand, provides transportation, logistics, and warehouse consolidation and distribution services for perishable and other time- and temperature-sensitive cargo. With over 40 years of experience, Mogul Energy specializes in refrigerated long-haul, regional, and dedicated deliveries for industries such as floral, produce, plants, dairy, poultry, and meats, as well as dry, high-value commodities. Operating one of the largest floral transportation fleets in the U.S., Mogul Energy plays a vital role in the timely and efficient delivery of perishable goods.

Forward-Looking Statements

This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “hopes,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. Factors that may cause actual results to differ materially from current expectations include, among other things, those related to trade disputes, regulatory changes, or disruptions in the supply chain that could impact the floral logistics sector.

Investor Relations Contact:
Jeff Ramson, CEO
PCG Advisory, Inc.
jramson@pcgadvisory.com

https://edge.media-server.com/mmc/p/9jnstij5

Source: GlobeNewswire (MIL-OSI)

Fourth Quarter 2024 Highlights

Consolidated net sales of $485.7 million, an increase of 3% to the prior year
Energy Systems and Distribution net sales increased 5% and 6%, respectively, while Water Systems net sales were flat
Operating income was $43.0 million with operating margin of 8.9%
GAAP fully diluted earnings per share (EPS) was $0.72

Full Year 2024 Highlights

Consolidated net sales of $2.0 billion, a decrease of 2% to the prior year
Distribution net sales increased 2%, while Water Systems and Energy Systems net sales decreased 2% and 8%, respectively
Operating income was $243.6 million with operating margin of 12.1%
GAAP fully diluted earnings per share (EPS) was $3.86
Cash flows from operating activities were $261.4 million

FORT WAYNE, Ind., Feb. 18, 2025 (GLOBE NEWSWIRE) — Franklin Electric Co., Inc. today announced its fourth quarter and full year financial results for fiscal year 2024.

Fourth quarter 2024 net sales were $485.7 million, compared to fourth quarter 2023 net sales of $473.0 million. Fourth quarter 2024 operating income was $43.0 million, compared to fourth quarter 2023 operating income of $50.8 million. Fourth quarter 2024 EPS was $0.72, versus EPS in the fourth quarter 2023 of $0.82.

Full year 2024 net sales were $2.0 billion, compared to full year 2023 net sales of $2.1 billion. Full year 2024 operating income was $243.6 million, compared to full year 2023 operating income of $262.4 million. Full year 2024 EPS was $3.86, versus EPS in the full year 2023 of $4.11.

“The fourth quarter marked a solid finish to a challenging year. Our results were driven by strong performance in our newly renamed Energy Systems segment. While we have worked through the elevated post-COVID backlogs at this time, underlying demand remains healthy, and we continue to execute on productivity initiatives as we align our businesses with the more normalized environment,” commented Joe Ruzynski, Franklin Electric’s CEO.

“Our resiliency is supported by the breadth of our global portfolio, which has proven to be a strategic asset as we closed out a year shaped by macroeconomic pressures. Order trends have improved, and with the support of a very healthy balance sheet, we are well-positioned to capitalize on opportunities in the year ahead. In 2025, our focus turns to driving revenue growth and margin expansion as we accelerate innovation and growth,” concluded Mr. Ruzynski.

Segment Summaries

Water Systems net sales were $279.6 million in the fourth quarter, flat compared to the fourth quarter 2023. Results were driven by higher sales of groundwater products, water treatment products and all other surface products. These sales increases were offset by lower sales of large dewatering pumps, which had a record fourth quarter last year. Water Systems operating income in the fourth quarter 2024 was $35.6 million. Fourth quarter 2023 Water Systems operating income was $44.1 million.

Distribution net sales were $157.2 million, an increase of $9.2 million or 6 percent compared to the fourth quarter 2023. Sales increases were driven by higher volumes and the incremental impact from a recent acquisition. The Distribution segment operating income in the fourth quarter 2024 was $0.5 million. Fourth quarter 2023 Distribution operating income was $1.0 million.

Energy Systems net sales were $68.8 million in the fourth quarter 2024, an increase of $3.1 million or 5 percent compared to the fourth quarter 2023. Sales increases were driven by higher volumes and price realization. Energy Systems operating income in the fourth quarter 2024 was a record for any fourth quarter at $24.7 million. Fourth quarter 2023 Energy Systems operating income was $19.4 million. The Company has changed the name of the Fueling Systems segment to Energy Systems to reflect its diverse portfolio and growth strategy, as well as to better reflect the markets and customers served by the segment.

Cash Flow

The Company ended 2024 with a cash balance of $220.5 million, an increase of $135.5 million compared to the end of 2023. Net cash flows from operating activities for 2024 were $261.4 million versus $315.7 million in the same period in 2023. Cash flow in 2023 benefitted from actions the Company took to improve working capital including inventory reductions as its supply chain resiliency and lead times improved during the year.

2024 Guidance

The Company expects its full year 2025 sales including the impact of its recently announced acquisitions to be in the range of $2.09 billion to $2.15 billion and full year 2025 EPS to be in the range of $4.05 to $4.25.

Earnings Conference Call

A conference call to review earnings and other developments in the business will commence at 9:00 am ET. The fourth quarter 2024 earnings call will be available via a live webcast. The webcast will be available in a listen only mode by going to:

For those interested in participating in the question-and-answer portion of the call, please register for the call at the link below.

https://register.vevent.com/register/BI4b232e4ceea6435ba8f046e92e18e563

All registrants will receive dial-in information and a PIN allowing them to access the live call. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).

A replay of the conference call will be available from Tuesday, February 18, 2025, through 9:00 am ET on Tuesday, February 25, 2025, by visiting the listen-only webcast link above.

Forward Looking Statements

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company’s financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company’s business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases, raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, the Company’s accounting policies, future trends, epidemics and pandemics, and other risks which are detailed in the Company’s Securities and Exchange Commission filings, included in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2023, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company’s Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements.

About Franklin Electric

Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and energy. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications. Franklin Electric is proud to be named in Newsweek’s lists of America’s Most Responsible Companies and Most Trustworthy Companies for 2024 and America’s Climate Leaders 2024 by USA Today.

Franklin Electric Contact:

Jeffery L. Taylor
Franklin Electric Co., Inc.
InvestorRelations@fele.com


FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

(In thousands, except per share amounts)

	Fourth Quarter Ended						Fiscal Year End
	December 31,			December 31,			December 31,			December 31,
	2024			2023			2024			2023

Net sales	$	485,745		$	472,970		$	2,021,341		$	2,065,133

Cost of sales		321,505			312,961			1,304,061			1,368,125

Gross profit		164,240			160,009			717,280			697,008

Selling, general, and administrative expenses		117,846			108,825			470,136			433,476

Restructuring expense		3,360			356			3,499			1,091

Operating income		43,034			50,828			243,645			262,441

Interest expense		(1,339	)		(1,481	)		(6,319	)		(11,790	)
Other income, net		630			1,831			1,339			3,696
Foreign exchange expense, net		(1,590	)		(4,026	)		(6,818	)		(12,124	)

Income before income taxes		40,735			47,152			231,847			242,223

Income tax expense		6,443			8,322			50,238			47,489

Net income	$	34,292		$	38,830		$	181,609		$	194,734

Less: Net income attributable to noncontrolling interests		(637	)		(281	)		(1,300	)		(1,462	)

Net income attributable to Franklin Electric Co., Inc.	$	33,655		$	38,549		$	180,309		$	193,272

Income per share:
Basic	$	0.73		$	0.83		$	3.92		$	4.17
Diluted	$	0.72		$	0.82		$	3.86		$	4.11

FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(In thousands)

	December 31,		December 31,
	2024		2023
ASSETS

Cash and cash equivalents	$	220,540	$	84,963
Receivables (net)		226,826		222,418
Inventories		483,875		508,696
Other current assets		32,950		37,718
Total current assets		964,191		853,795

Property, plant, and equipment, net		223,566		229,739
Lease right-of-use Assets, net		62,637		57,014
Goodwill and other assets		570,212		587,574
Total assets	$	1,820,606	$	1,728,122


LIABILITIES AND EQUITY

Accounts payable	$	157,046	$	152,419
Accrued expenses and other current liabilities		139,989		104,949
Current lease liability		18,878		17,316
Current maturities of long-term debt and short-term borrowings		117,814		12,355
Total current liabilities		433,727		287,039

Long-term debt		11,622		88,056
Long-term lease liability		43,304		38,549
Income taxes payable non-current		–		4,837
Deferred income taxes		10,193		29,461
Employee benefit plans		29,808		35,973
Other long-term liabilities		22,118		33,914

Redeemable noncontrolling interest		1,224		1,145

Total equity		1,268,610		1,209,148
Total liabilities and equity	$	1,820,606	$	1,728,122

FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)

	2024			2023
Cash flows from operating activities:
Net income	$	181,609		$	194,734
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization		56,073			52,260
Non-cash lease expense		21,438			18,852
Share-based compensation		12,061			10,133
Other		(13,327	)		10,259
Changes in assets and liabilities:
Receivables		(17,045	)		19,150
Inventory		10,889			48,176
Accounts payable and accrued expenses		15,285			(23,085	)
Operating leases		(21,129	)		(18,874	)
Income taxes-U.S. Tax Cuts and Jobs Act		(3,870	)		(2,902	)
Other		19,369			7,007

Net cash flows from operating activities		261,353			315,710

Cash flows from investing activities:
Additions to property, plant, and equipment		(41,682	)		(41,415	)
Proceeds from sale of property, plant, and equipment		1,182			1,494
Acquisitions and investments		(5,201	)		(34,831	)
Other investing activities		73			463

Net cash flows from investing activities		(45,628	)		(74,289	)

Cash flows from financing activities:
Net change in debt		29,235			(115,529	)
Proceeds from issuance of common stock		7,204			9,193
Purchases of common stock		(61,041	)		(43,332	)
Dividends paid		(46,876	)		(41,723	)
Deferred payments for acquisitions		(2,591	)		(802	)

Net cash flows from financing activities		(74,069	)		(192,193	)

Effect of exchange rate changes on cash		(6,079	)		(10,055	)
Net change in cash and cash equivalents		135,577			39,173
Cash and cash equivalents at beginning of period		84,963			45,790
Cash and cash equivalents at end of period	$	220,540		$	84,963

Key Performance Indicators: Net Sales Summary

	Net Sales For the Fourth Quarter
	United States			Latin			Europe, Middle			Asia			Total
(in millions)	& Canada			America			East & Africa			Pacific			Water			Energy**			Distribution			Other/Elims			Consolidated

Q4 2023	$161.2			$46.6			$45.5			$26.3			$279.6			$65.7			$148.0			($20.3		)	$473.0
Q4 2024	$158.5			$44.3			$49.7			$27.1			$279.6			$68.8			$157.2			($19.9		)	$485.7
Change	($2.7		)	($2.3		)	$4.2			$0.8			$0.0			$3.1			$9.2			$0.4			$12.7
% Change		-2	%		-5	%		9	%		3	%		0	%		5	%		6	%					3	%

Foreign currency translation, net*	($0.4		)	($5.5		)	($0.8		)	($0.8		)	($7.5		)	$0.0			$0.0						($7.5		)
% Change		0	%		-12	%		-2	%		-3	%		-3	%		0	%		0	%					2	%

Acquisitions	$3.1			$0.0			$0.0			$0.0			$3.1			$0.0			$4.0						$7.1
% Change		2	%		0	%		0	%		0	%		1	%		0	%		3	%					2	%

Volume/Price	($5.4		)	$3.2			$5.0			$1.6			$4.4			$3.1			$5.2			$0.4			$13.1
% Change		-3	%		7	%		11	%		6	%		2	%		5	%		4	%		-2	%		3	%

	Net Sales For the Full Year
	United States			Latin			Europe, Middle			Asia			Total
(in millions)	& Canada			America			East & Africa			Pacific			Water			Energy**			Distribution			Other/Elims			Consolidated

FY 2023	$744.4			$174.2			$198.3			$86.8			$1,203.7			$296.5			$673.3			($108.4		)	$2,065.1
FY 2024	$708.5			$170.9			$211.4			$93.2			$1,184.0			$273.7			$685.5			($121.9		)	$2,021.3
Change	($35.9		)	($3.3		)	$13.1			$6.4			($19.7		)	($22.8		)	$12.2			($13.5		)	($43.8		)
% Change		-5	%		-2	%		7	%		7	%		-2	%		-8	%		2	%					-2	%

Foreign currency translation, net*	($0.9		)	($9.7		)	($6.3		)	($2.4		)	($19.3		)	$0.0			$0.0						($19.3		)
% Change		0	%		-6	%		-3	%		-3	%		-2	%		0	%		0	%					-1	%

Acquisitions	$17.6			$0.0			$0.0			$0.0			$17.6			$0.0			$17.1						$34.7
% Change		2	%		0	%		0	%		0	%		1	%		0	%		3	%					2	%

Volume/Price	($52.6		)	$6.4			$19.4			$8.8			($18.0		)	($22.8		)	($4.9		)	($13.5		)	($59.2		)
% Change		-7	%		4	%		10	%		10	%		-1	%		-8	%		-1	%		12	%		-3	%

*The Company has presented local currency price increases used to offset currency devaluation in the Argentina and Turkey hyperinflationary economies within the foreign currency translation, net row above.
** Recognizing the Company’s diverse portfolio and growth strategy, it renamed its Fueling Systems segment to Energy Systems to better reflect the markets and customers served by this business.

Key Performance Indicators: Operating Income and Margin Summary

Operating Income and Margins
(in millions)	For the Fourth Quarter 2024
	Water			Energy			Distribution			Other/Elims			Consolidated
Operating Income / (Loss)	$	35.6		$	24.7		$	0.5		$	(17.8	)	$	43.0
% Operating Income To Net Sales		12.7	%		35.9	%		0.3	%					8.9	%

Operating Income and Margins
(in millions)	For the Fourth Quarter 2023
	Water			Energy			Distribution			Other/Elims			Consolidated
Operating Income / (Loss)	$	44.1		$	19.4		$	1.0		$	(13.7	)	$	50.8
% Operating Income To Net Sales		15.8	%		29.5	%		0.7	%					10.7	%

Operating Income and Margins
(in millions)	For the Full Year of 2024
	Water			Energy			Distribution			Other/Elims			Consolidated
Operating Income / (Loss)	$	197.9		$	93.6		$	24.3		$	(72.2	)	$	243.6
% Operating Income To Net Sales		16.7	%		34.2	%		3.5	%					12.1	%

Operating Income and Margins
(in millions)	For the Full Year of 2023
	Water			Energy			Distribution			Other/Elims			Consolidated
Operating Income / (Loss)	$	196.6		$	92.7		$	34.3		$	(61.2	)	$	262.4
% Operating Income To Net Sales		16.3	%		31.3	%		5.1	%					12.7	%

Source: GlobeNewswire (MIL-OSI)

	Three months ended									Three months ended
	December 31,			September 30,			sequential			December 31,			year-over-year
	2024			2024			change			2023			change
(In millions, except per share amounts, percentages and backlog)
Contract drilling revenues	$	952		$	948		$	4		$	741		$	211
Adjusted contract drilling revenues	$	952		$	948		$	4		$	748		$	204
Revenue efficiency ⁽¹⁾		93.5	%		94.5	%					97.0	%
Operating and maintenance expense	$	579		$	563		$	(16	)	$	569		$	(10	)
Net income (loss) attributable to controlling interest	$	7		$	(494	)	$	501		$	(104	)	$	111
Basic earnings (loss) per share	$	0.01		$	(0.56	)	$	0.57		$	(0.13	)	$	0.14
Diluted loss per share	$	(0.11	)	$	(0.58	)	$	0.47		$	(0.13	)	$	0.02

Adjusted EBITDA	$	323		$	342		$	(19	)	$	122		$	201
Adjusted EBITDA margin		33.9	%		36.0	%					16.3	%
Adjusted net income (loss)	$	27		$	64		$	(37	)	$	(74	)	$	101
Adjusted diluted earnings (loss) per share	$	(0.09	)	$	—		$	(0.09	)	$	(0.09	)	$	—


Backlog as of the February 2025 Fleet Status Report	$	8.3 billion

STEINHAUSEN, Switzerland, Feb. 17, 2025 (GLOBE NEWSWIRE) — Transocean Ltd. (NYSE: RIG) today reported net income attributable to controlling interest of $7 million, or loss of $0.11 per diluted share, for the three months ended December 31, 2024.

Fourth quarter results included $20 million, $0.02 per diluted share, discrete tax items, net. After consideration of these unfavorable items, fourth quarter 2024 adjusted net income was $27 million, or loss of $0.09 per diluted share.

Contract drilling revenues for the three months ended December 31, 2024, increased sequentially by $4 million to $952 million, primarily due to increased utilization for one rig that returned to work after undergoing a special periodic survey in the third quarter and higher reimbursement revenues, partially offset by lower revenue efficiency across the fleet.

Operating and maintenance expense was $579 million, compared with $563 million in the prior quarter. The sequential increase was the result of higher in-service maintenance costs across our fleet, partially offset by a settlement with insurance carriers.

General and administrative expense was $56 million, up from $47 million in the third quarter due primarily to increased legal and professional fees.

Interest expense net of capitalized amounts was $152 million, compared to $154 million in the prior quarter, excluding the favorable adjustment of $61 million and $74 million in the fourth and third quarter, respectively, for the fair value of the bifurcated exchange feature related to the 4.625% exchangeable bonds. Interest income was $10 million, compared to $11 million in the prior quarter.

The Effective Tax Rate⁽²⁾ was 89.0%, up from 6.0% in the prior quarter. The increase was primarily due to higher income and increases in valuation allowance. The Effective Tax Rate excluding discrete items was 56.7% compared to 22.5% in the previous quarter.

Cash provided by operating activities was $206 million during the fourth quarter of 2024, representing an increase of $12 million compared to the prior quarter. The sequential increase was primarily due to timing of interest payments and decreased payments for accounts payable, partially offset by reduced collections from customers.

Fourth quarter 2024 capital expenditures of $29 million, compared to $58 million in the prior quarter, were related to capital upgrades for certain rigs in our fleet.

“In 2024, we continued to advance our position as the technological leader in offshore drilling by, among other things, executing the first two 20K subsea completions in the history of the industry,” said Chief Executive Officer Jeremy Thigpen. “We also introduced and implemented other technologies that enhance our operational performances and further differentiate our fleet. This commitment to innovation, along with our reputation for delivering safe, reliable, and efficient operations, is clearly recognized by our customers, as demonstrated by the $2.4 billion in backlog we secured during the year.”

Thigpen continued, “With industry-leading contract coverage well into 2026, our primary objective will be strong operational execution and an intense focus on cost control to ensure we maximize the conversion of our backlog to cash, enabling us to continue de-leveraging our balance sheet.”

Full Year 2024

For the year ended December 31, 2024, net loss attributable to controlling interest totaled $512 million, $0.76 per diluted share. Full year results included $458 million, $0.50 per diluted share, net unfavorable items as follows:

$755 million, $0.82 per diluted share, loss on impairment of assets; and
$5 million, $0.01 per diluted share, loss on impairment of our investments in unconsolidated affiliates; partially offset by,
$161 million, $0.18 per diluted share, gain on retirement of debt; and
$141 million, $0.15 per diluted share, related to discrete tax items, net.

After consideration of these net unfavorable items, adjusted net loss for 2024 was $54 million, $0.26 per diluted share.

Non-GAAP Financial Measures

We present our operating results in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). We believe certain financial measures, such as Adjusted Contract Drilling Revenues, EBITDA, Adjusted EBITDA and Adjusted Net Income, which are non-GAAP measures, provide users of our financial statements with supplemental information that may be useful in evaluating our operating performance. We believe that such non-GAAP measures, when read in conjunction with our operating results presented under U.S. GAAP, can be used to better assess our performance from period to period and relative to performance of other companies in our industry, without regard to financing methods, historical cost basis or capital structure. Such non-GAAP measures should be considered as a supplement to, and not as a substitute for, financial measures prepared in accordance with U.S. GAAP.

All non-GAAP measure reconciliations to the most comparative U.S. GAAP measures are displayed in quantitative schedules on the company’s website at: www.deepwater.com.

About Transocean

Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on ultra-deepwater and harsh environment drilling services, and operates the highest specification floating offshore drilling fleet in the world.

Transocean owns or has partial ownership interests in and operates a fleet of 34 mobile offshore drilling units, consisting of 26 ultra-deepwater floaters and eight harsh environment floaters.

For more information about Transocean, please visit: www.deepwater.com.

Conference Call Information

Transocean will conduct a teleconference starting at 9 a.m. EST, 3 p.m. CET, on Tuesday, February 18, 2025, to discuss the results. To participate, dial +1 785-424-1116 and refer to conference code 540196 approximately 15 minutes prior to the scheduled start time.

The teleconference will be simulcast in a listen-only mode at: www.deepwater.com, by selecting Investors, News, and Webcasts. Supplemental materials that may be referenced during the teleconference will be available at: www.deepwater.com, by selecting Investors, Financial Reports.

A replay of the conference call will be available after 12 p.m. EST, 6 p.m. CET, on Tuesday, February 18, 2025. The replay, which will be archived for approximately 30 days, can be accessed at +1 402-220-1152, passcode 540196. The replay will also be available on the company’s website.

Forward-Looking Statements

The statements described herein that are not historical facts 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. These statements could contain words such as “possible,” “intend,” “will,” “if,” “expect,” or other similar expressions. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects and other out-of-service time, sales of drilling units, timing of the company’s newbuild deliveries, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the fluctuation of current and future prices of oil and gas, the global and regional supply and demand for oil and gas, the intention to scrap certain drilling rigs, the success of our business following prior acquisitions, the effects of the spread of and mitigation efforts by governments, businesses and individuals related to contagious illnesses, and other factors, including those and other risks discussed in the company’s most recent Annual Report on Form 10-K for the year ended December 31, 2023, and in the company’s other filings with the SEC, which are available free of charge on the SEC’s website at: www.sec.gov. Should one or more of these risks or uncertainties materialize (or the other consequences of such a development worsen), or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to the company or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law.

This press release, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”) or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean.

Notes

(1)	Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations. See the accompanying schedule entitled “Revenue Efficiency.”
(2)	Effective Tax Rate is defined as income tax expense or benefit divided by income or loss before income taxes. See the accompanying schedule entitled “Supplemental Effective Tax Rate Analysis.”

Analyst Contact:
Alison Johnson
+1 713-232-7214

Media Contact:
Pam Easton
+1 713-232-7647

TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) (Unaudited)

	Years ended December 31,
	2024			2023			2022

Contract drilling revenues	$	3,524		$	2,832		$	2,575

Costs and expenses
Operating and maintenance		2,199			1,986			1,679
Depreciation and amortization		739			744			735
General and administrative		214			187			182
		3,152			2,917			2,596

Loss on impairment of assets		(772	)		(57	)		—
Loss on disposal of assets, net		(17	)		(183	)		(10	)
Operating loss		(417	)		(325	)		(31	)

Other income (expense), net
Interest income		50			52			27
Interest expense, net of amounts capitalized		(362	)		(646	)		(561	)
Gain (loss) on retirement of debt		161			(31	)		8
Other, net		45			9			(5	)
		(106	)		(616	)		(531	)
Loss before income tax expense (benefit)		(523	)		(941	)		(562	)
Income tax expense (benefit)		(11	)		13			59

Net loss		(512	)		(954	)		(621	)
Net income attributable to noncontrolling interest		—			—			—
Net loss attributable to controlling interest	$	(512	)	$	(954	)	$	(621	)

Loss per share
Basic	$	(0.60	)	$	(1.24	)	$	(0.89	)
Diluted	$	(0.76	)	$	(1.24	)	$	(0.89	)

Weighted-average shares outstanding
Basic		850			768			699
Diluted		925			768			699

TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except share data) (Unaudited)

	December 31,
	2024			2023
Assets
Cash and cash equivalents	$	560		$	762
Accounts receivable, net		564			512
Materials and supplies, net		439			426
Assets held for sale		343			49
Restricted cash and cash equivalents		381			233
Other current assets		165			144
Total current assets		2,452			2,126

Property and equipment		22,417			23,875
Less accumulated depreciation		(6,586	)		(6,934	)
Property and equipment, net		15,831			16,941
Contract intangible assets		—			4
Deferred tax assets, net		45			44
Other assets		1,043			1,139
Total assets	$	19,371		$	20,254

Liabilities and equity
Accounts payable	$	255		$	323
Accrued income taxes		31			23
Debt due within one year		686			370
Other current liabilities		691			681
Total current liabilities		1,663			1,397

Long-term debt		6,195			7,043
Deferred tax liabilities, net		499			540
Other long-term liabilities		729			858
Total long-term liabilities		7,423			8,441

Commitments and contingencies

Shares, $0.10 par value, 1,057,879,029 authorized, 141,262,093 conditionally authorized, 940,828,901 issued
and 875,830,772 outstanding at December 31, 2024, and CHF 0.10 par value, 1,021,294,549 authorized,
142,362,093 conditionally authorized, 843,715,858 issued and 809,030,846 outstanding at December 31, 2023		87			81
Additional paid-in capital		14,880			14,544
Accumulated deficit		(4,545	)		(4,033	)
Accumulated other comprehensive loss		(138	)		(177	)
Total controlling interest shareholders’ equity		10,284			10,415
Noncontrolling interest		1			1
Total equity		10,285			10,416
Total liabilities and equity	$	19,371		$	20,254

TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited)

	Years ended December 31,
	2024			2023			2022

Cash flows from operating activities
Net loss	$	(512	)	$	(954	)	$	(621	)
Adjustments to reconcile to net cash provided by operating activities:
Amortization of contract intangible asset		4			52			117
Depreciation and amortization		739			744			735
Share-based compensation expense		47			40			29
Loss on impairment of assets		772			57			—
Loss on disposal of assets, net		17			183			10
Amortization of debt-related balances, net		53			51			33
(Gain) loss on adjustment to bifurcated compound exchange feature		(214	)		127			157
(Gain) loss on retirement of debt		(161	)		31			(8	)
Loss on impairment of investment in unconsolidated affiliates		5			5			—
Deferred income tax expense		(42	)		18			46
Other, net		(7	)		43			44
Changes in deferred revenues, net		45			70			(20	)
Changes in deferred costs, net		(2	)		(190	)		1
Changes in other operating assets and liabilities, net		(297	)		(113	)		(75	)
Net cash provided by operating activities		447			164			448

Cash flows from investing activities
Capital expenditures		(254	)		(427	)		(717	)
Investment in loans to unconsolidated affiliates		(3	)		(3	)		(5	)
Investment in equity of unconsolidated affiliates		—			(10	)		(42	)
Proceeds from disposal of assets, net of costs to sell		101			10			7
Cash acquired in acquisition of unconsolidated affiliates		5			7			—
Net cash used in investing activities		(151	)		(423	)		(757	)

Cash flows from financing activities
Repayments of debt		(2,103	)		(1,717	)		(554	)
Proceeds from issuance of debt, net of issue costs		1,770			1,983			175
Proceeds from issuance of shares, net of issue costs		—			—			263
Proceeds from issuance of warrants, net of issue costs		—			—			12
Other, net		(17	)		(3	)		(8	)
Net cash provided by (used in) financing activities		(350	)		263			(112	)

Net increase (decrease) in unrestricted and restricted cash and cash equivalents		(54	)		4			(421	)
Unrestricted and restricted cash and cash equivalents, beginning of period		995			991			1,412
Unrestricted and restricted cash and cash equivalents, end of period	$	941		$	995		$	991


TRANSOCEAN LTD. AND SUBSIDIARIES FLEET OPERATING STATISTICS

	Three months ended						Years ended
	December 31,		September 30,		December 31,		December 31,		December 31,
Contract Drilling Revenues (in millions)	2024		2024		2023		2024		2023
Ultra-deepwater floaters	$	675	$	668	$	536	$	2,518	$	2,072
Harsh environment floaters		277		280		205		1,006		760
Total contract drilling revenues	$	952	$	948	$	741	$	3,524	$	2,832

	Three months ended						Years ended
	December 31,		September 30,		December 31,		December 31,		December 31,
Average Daily Revenue ⁽¹⁾	2024		2024		2023		2024		2023
Ultra-deepwater floaters	$	428,200	$	426,700	$	432,100	$	428,000	$	393,700
Harsh environment floaters		452,600		464,900		354,700		435,900		354,300
Total fleet average daily revenue	$	434,700	$	436,800	$	407,800	$	430,100	$	382,300

	Three months ended						Years ended
	December 31,		September 30,		December 31,		December 31,		December 31,
Revenue Efficiency ⁽²⁾	2024		2024		2023		2024		2023
Ultra-deepwater floaters	92.0	%	92.5	%	96.8	%	93.4	%	96.5	%
Harsh environment floaters	97.6	%	100.1	%	97.6	%	97.5	%	97.8	%
Total fleet average revenue efficiency	93.5	%	94.5	%	97.0	%	94.5	%	96.8	%

	Three months ended						Years ended
	December 31,		September 30,		December 31,		December 31,		December 31,
Utilization ⁽³⁾	2024		2024		2023		2024		2023
Ultra-deepwater floaters	64.3	%	60.7	%	46.8	%	57.3	%	49.4	%
Harsh environment floaters	75.0	%	75.0	%	66.7	%	71.1	%	59.1	%
Total fleet average rig utilization	66.8	%	63.9	%	51.6	%	60.5	%	51.9	%

⁽¹⁾ Average daily revenue is defined as operating revenues, excluding revenues for contract terminations, reimbursements and contract intangible amortization, earned per operating day. An operating day is defined as a day for which a rig is contracted to earn a dayrate during the firm contract period after operations commence.

⁽²⁾ Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations.

⁽³⁾ Rig utilization is defined as the total number of operating days divided by the total number of rig calendar days in the measurement period, expressed as a percentage.


TRANSOCEAN LTD. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE
(in millions, except per share data)

	YTD			QTD			YTD			QTD			YTD			QTD			YTD
	12/31/24			12/31/24			09/30/24			09/30/24			06/30/24			06/30/24			03/31/24
Adjusted Net Income (Loss)
Net income (loss) attributable to controlling interest, as reported	$	(512	)	$	7		$	(519	)	$	(494	)	$	(25	)	$	(123	)	$	98
Loss on impairment of assets, net of tax		755			—			755			617			138			138			—
Loss on impairment of investment in unconsolidated affiliates		5			—			5			—			5			4			1
Gain on retirement of debt		(161	)		—			(161	)		(21	)		(140	)		(140	)		—
Discrete tax items		(141	)		20			(161	)		(38	)		(123	)		(2	)		(121	)
Net income (loss), as adjusted	$	(54	)	$	27		$	(81	)	$	64		$	(145	)	$	(123	)	$	(22	)

Adjusted Diluted Earnings (Loss) Per Share:
Diluted earnings (loss) per share, as reported	$	(0.76	)	$	(0.11	)	$	(0.65	)	$	(0.58	)	$	(0.03	)	$	(0.15	)	$	0.11
Loss on impairment of assets, net of tax		0.82			—			0.82			0.64			0.17			0.17			—
Loss on impairment of investment in unconsolidated affiliates		0.01			—			0.01			—			—			—			—
Gain on retirement of debt		(0.18	)		—			(0.18	)		(0.02	)		(0.17	)		(0.17	)		—
Discrete tax items		(0.15	)		0.02			(0.18	)		(0.04	)		(0.15	)		—			(0.14	)
Diluted earnings (loss) per share, as adjusted	$	(0.26	)	$	(0.09	)	$	(0.18	)	$	—		$	(0.18	)	$	(0.15	)	$	(0.03	)


	YTD			QTD			YTD			QTD			YTD			QTD			YTD
	12/31/23			12/31/23			09/30/23			09/30/23			06/30/23			06/30/23			03/31/23
Adjusted Net Loss
Net loss attributable to controlling interest, as reported	$	(954	)	$	(104	)	$	(850	)	$	(220	)	$	(630	)	$	(165	)	$	(465	)
Loss on impairment of assets		57			(1	)		58			5			53			53			—
Loss on disposal of assets, net		169			—			169			—			169			—			169
Loss on impairment of investment in unconsolidated affiliate		5			5			—			—			—			—			—
Loss on conversion of debt to equity		27			24			3			—			3			3			—
(Gain) loss on retirement of debt		31			(1	)		32			—			32			—			32
Discrete tax items		(74	)		3			(77	)		(65	)		(12	)		(1	)		(11	)
Net loss, as adjusted	$	(739	)	$	(74	)	$	(665	)	$	(280	)	$	(385	)	$	(110	)	$	(275	)

Adjusted Diluted Loss Per Share:
Diluted loss per share, as reported	$	(1.24	)	$	(0.13	)	$	(1.13	)	$	(0.28	)	$	(0.85	)	$	(0.22	)	$	(0.64	)
Loss on impairment of assets		0.07			—			0.08			0.01			0.07			0.07			—
Loss on disposal of assets, net		0.22			—			0.23			—			0.23			—			0.23
Loss on impairment of investment in unconsolidated affiliate		0.01			0.01			—			—			—			—			—
Loss on conversion of debt to equity		0.04			0.03			—			—			—			—			—
(Gain) loss on retirement of debt		0.04			—			0.04			—			0.04			—			0.04
Discrete tax items		(0.10	)		—			(0.10	)		(0.09	)		(0.01	)		—			(0.01	)
Diluted loss per share, as adjusted	$	(0.96	)	$	(0.09	)	$	(0.88	)	$	(0.36	)	$	(0.52	)	$	(0.15	)	$	(0.38	)


TRANSOCEAN LTD. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
ADJUSTED CONTRACT DRILLING REVENUES
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION AND RELATED MARGINS
(in millions, except percentages)


	YTD				QTD			YTD				QTD				YTD				QTD				YTD
	12/31/24				12/31/24			09/30/24				09/30/24				06/30/24				06/30/24				03/31/24

Contract drilling revenues	$	3,524			$	952		$	2,572			$	948			$	1,624			$	861			$	763
Contract intangible asset amortization		4				—			4				—				4				—				4
Adjusted Contract Drilling Revenues	$	3,528			$	952		$	2,576			$	948			$	1,628			$	861			$	767

Net income (loss)	$	(512	)		$	7		$	(519	)		$	(494	)		$	(25	)		$	(123	)		$	98
Interest expense, net of interest income		312				81			231				69				162				60				102
Income tax expense (benefit)		(11	)			55			(66	)			(31	)			(35	)			156				(191	)
Depreciation and amortization		739				180			559				190				369				184				185
Contract intangible asset amortization		4				—			4				—				4				—				4
EBITDA		532				323			209				(266	)			475				277				198

Loss on impairment of assets		772				—			772				629				143				143				—
Loss on impairment of investment in unconsolidated affiliates		5				—			5				—				5				4				1
Gain on retirement of debt		(161	)			—			(161	)			(21	)			(140	)			(140	)			—
Adjusted EBITDA	$	1,148			$	323		$	825			$	342			$	483			$	284			$	199


Profit (loss) margin		(14.5	)	%		0.7	%		(20.2	)	%		(52.0	)	%		(1.5	)	%		(14.3	)	%		12.9	%
EBITDA margin		15.1		%		33.9	%		8.1		%		(28.1	)	%		29.2		%		32.2		%		25.8	%
Adjusted EBITDA margin		32.5		%		33.9	%		32.0		%		36.0		%		29.7		%		33.0		%		26.0	%


	YTD				QTD				YTD				QTD				YTD				QTD				YTD
	12/31/23				12/31/23				09/30/23				09/30/23				06/30/23				06/30/23				03/31/23

Contract drilling revenues	$	2,832			$	741			$	2,091			$	713			$	1,378			$	729			$	649
Contract intangible asset amortization		52				7				45				8				37				19				18
Adjusted Contract Drilling Revenues	$	2,884			$	748			$	2,136			$	721			$	1,415			$	748			$	667

Net loss	$	(954	)		$	(104	)		$	(850	)		$	(220	)		$	(630	)		$	(165	)		$	(465	)
Interest expense, net of interest income		594				(13	)			607				220				387				157				230
Income tax expense (benefit)		13				21				(8	)			(43	)			35				(16	)			51
Depreciation and amortization		744				184				560				192				368				186				182
Contract intangible asset amortization		52				7				45				8				37				19				18
EBITDA		449				95				354				157				197				181				16

Loss on impairment of assets		57				(1	)			58				5				53				53				—
Loss on disposal of assets, net		169				—				169				—				169				—				169
Loss on impairment of investment in unconsolidated affiliate		5				5				—				—				—				—				—
Loss on conversion of debt to equity		27				24				3				—				3				3				—
(Gain) loss on retirement of debt		31				(1	)			32				—				32				—				32
Adjusted EBITDA	$	738			$	122			$	616			$	162			$	454			$	237			$	217


Loss margin		(33.7	)	%		(14.0	)	%		(40.7	)	%		(30.9	)	%		(45.7	)	%		(22.6	)	%		(71.6	)%
EBITDA margin		15.6		%		12.7		%		16.6		%		21.8		%		13.9		%		24.2		%		2.4	%
Adjusted EBITDA margin		25.6		%		16.3		%		28.9		%		22.5		%		32.1		%		31.7		%		32.5	%

TRANSOCEAN LTD. AND SUBSIDIARIES
SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS
(in millions, except tax rates)

	Three months ended									Years ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2024			2024			2023			2024			2023

Income (loss) before income taxes	$	62		$	(525	)	$	(83	)	$	(523	)	$	(941	)
Loss on impairment of assets		—			629			(1	)		772			57
Loss on disposal of assets, net		—			—			—			—			169
Loss on impairment of investment in unconsolidated affiliates		—			—			5			5			5
Loss on conversion of debt to equity		—			—			24			—			27
(Gain) loss on retirement of debt		—			(21	)		(1	)		(161	)		31
Adjusted income (loss) before income taxes	$	62		$	83		$	(56	)	$	93		$	(652	)


Income tax expense (benefit)	$	55		$	(31	)	$	21		$	(11	)	$	13
Loss on impairment of assets		—			12			—			17			—
Loss on disposal of assets, net		—			—			—			—			—
Loss on impairment of investment in unconsolidated affiliates		—			—			—			—			—
Loss on conversion of debt to equity		—			—			—			—			—
(Gain) loss on retirement of debt		—			—			—			—			—
Changes in estimates (1)		(20	)		38			(3	)		141			74
Adjusted income tax expense (benefit)	$	35		$	19		$	18		$	147		$	87

Effective Tax Rate (2)		89.0	%		6.0	%		(25.0	)%		2.2	%		(1.4	)%

Effective Tax Rate, excluding discrete items (3)		56.7	%		22.5	%		(30.0	)%		159.1	%		(13.3	)%


(1) Our estimates change as we file tax returns, settle disputes with tax authorities, or become aware of changes in laws, operational changes and rig movements that have an effect on our (a) deferred taxes, (b) valuation allowances on deferred taxes and (c) other tax liabilities.

(2) Our effective tax rate is calculated as income tax expense or benefit divided by income or loss before income taxes.

(3) Our effective tax rate, excluding discrete items, is calculated as income tax expense or benefit, excluding various discrete items (such as changes in estimates and tax on items excluded from income before income taxes), divided by income or loss before income taxes, excluding gains and losses on sales and similar items pursuant to the accounting standards for income taxes related to estimating the annual effective tax rate.


TRANSOCEAN LTD. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
FREE CASH FLOW AND LEVERED FREE CASH FLOW
(in millions)

	YTD			QTD			YTD			QTD			YTD			QTD			YTD
	12/31/24			12/31/24			09/30/24			09/30/24			06/30/24			06/30/24			03/31/24

Cash provided by (used in) operating activities	$	447		$	206		$	241		$	194		$	47		$	133		$	(86	)
Capital expenditures		(254	)		(29	)		(225	)		(58	)		(167	)		(84	)		(83	)
Free Cash Flow		193			177			16			136			(120	)		49			(169	)
Debt repayments		(2,103	)		(30	)		(2,073	)		(258	)		(1,815	)		(1,664	)		(151	)
Debt repayments, paid from debt proceeds		1,748			–			1,748			99			1,649			1,649			–
Levered Free Cash Flow	$	(162	)	$	147		$	(309	)	$	(23	)	$	(286	)	$	34		$	(320	)



	YTD			QTD			YTD			QTD			YTD			QTD			YTD
	12/31/23			12/31/23			09/30/23			09/30/23			06/30/23			06/30/23			03/31/23

Cash provided by (used in) operating activities	$	164		$	98		$	66		$	(44	)	$	110		$	157		$	(47	)
Capital expenditures		(427	)		(220	)		(207	)		(50	)		(157	)		(76	)		(81	)
Free Cash Flow		(263	)		(122	)		(141	)		(94	)		(47	)		81			(128	)
Debt repayments		(1,717	)		(10	)		(1,707	)		(139	)		(1,568	)		(4	)		(1,564	)
Debt repayments, paid from debt proceeds		1,156			–			1,156			–			1,156			–			1,156
Levered Free Cash Flow	$	(824	)	$	(132	)	$	(692	)	$	(233	)	$	(459	)	$	77		$	(536	)



	YTD			QTD			YTD			QTD			YTD			QTD			YTD
	12/31/22			12/31/22			09/30/22			09/30/22			06/30/22			06/30/22			03/31/22

Cash provided by (used in) operating activities	$	448		$	178		$	270		$	230		$	40		$	41		$	(1	)
Capital expenditures		(717	)		(409	)		(308	)		(87	)		(221	)		(115	)		(106	)
Free Cash Flow		(269	)		(231	)		(38	)		143			(181	)		(74	)		(107	)
Debt repayments		(554	)		(101	)		(453	)		(196	)		(257	)		(92	)		(165	)
Debt repayments, paid from debt proceeds		–			–			–			–			–			–			–
Levered Free Cash Flow	$	(823	)	$	(332	)	$	(491	)	$	(53	)	$	(438	)	$	(166	)	$	(272	)

February 18, 2025

Source: GlobeNewswire (MIL-OSI)

TEANECK, N.J., Feb. 14, 2025 (GLOBE NEWSWIRE) — Bogota Financial Corp. (NASDAQ: BSBK) (the “Company”), the holding company for Bogota Savings Bank (the “Bank”), reported a net loss for the three months ended December 31, 2024 of $930,000 or $0.07 per basic and diluted share, compared to a net loss of $1.2 million or $0.09 per basic and diluted share for the comparable prior year period. The Company reported a net loss for the year ended December 31, 2024 of $2.2 million or $0.17 per basic and diluted share compared to net income of $643,000, or $0.05 per basic and diluted share, for the prior year.

On April 24, 2024, the Company announced it had received regulatory approval to repurchase up to 237,090 shares of its common stock, which was approximately 5% of its then outstanding common stock (excluding shares held by Bogota Financial, MHC). The program does not have a scheduled expiration date and the Board of Directors may suspend or discontinue the program at any time. As of December 31, 2024, 188,047 shares have been repurchased under this program at a cost of $1.4 million.

Other Financial Highlights:

Total assets increased $32.2 million, or 3.4%, to $971.5 million at December 31, 2024 from $939.3 million at December 31, 2023, largely due to an increase in cash and cash equivalents and other assets, offset by a decrease in net loans and premises and equipment.
Cash and cash equivalents increased $27.3 million, or 109.5%, to $52.2 million at December 31, 2024 from $24.9 million at December 31, 2023, as increases in deposits and borrowings and loan and security maturities outpaced loan growth.
Securities decreased $1.2 million, or 0.9%, to $140.3 million at December 31, 2024 from $141.5 million at December 31, 2023.
Net loans decreased $3.0 million, or 0.4%, to $711.7 million at December 31, 2024 from $714.7 million at December 31, 2023 due to decreases in residential and construction loans, offset by an increase in commercial real estate loans.
Total deposits at December 31, 2024 were $642.2 million, increasing $16.9 million, or 2.7%, as compared to $625.3 million at December 31, 2023, primarily due to a $14.7 million increase in interest-bearing deposits and by a $2.1 million increase in non-interest bearing checking accounts. The average rate paid on deposits increased 31 basis points to 3.73% for 2024 from 3.42% for 2023 due to higher interest rates and an increase in NOW accounts, which increased $14.1 million, or 34.0%, to $55.4 million at December 31, 2024 from $41.3 million at December 31, 2023. The yield on such accounts also increased 63 basis points to 2.53% for 2024 from 1.90% for 2023.
Federal Home Loan Bank advances increased $4.5 million, or 2.7% to $172.2 million at December 31, 2024 from $167.7 million as of December 31, 2023.

The Bank completed a balance sheet restructuring consisting of two key transactions in the fourth quarter of 2024. The Bank entered into a sale-leaseback transaction whereby the Bank sold three of its branch offices resulting in a $9.0 million pre-tax gain. Subsequently, the Bank realized a pre-tax loss of $8.9 million on the sale of approximately $66.0 million in amortized cost ($57.1 million in market value) of securities with a weighted average life of approximately 5.5 years and a weighted average yield of 1.89%. The Bank reinvested $32.7 million of these proceeds into securities with a weighted average life of approximately 29.6 years and a weighted average yield of 5.60%. As of December 31, 2024 all securities were classified as available for sale and marked to market.

Kevin Pace, President and Chief Executive Officer, said, “We were able to accomplish a key piece of our strategic plan this quarter. The sale-leaseback transaction gave us the ability to dispose of underperforming legacy investments without deteriorating regulatory capital. We were able to utilize this strategy to strengthen our balance sheet and improve future earnings. Reinvesting those funds in securities and loans at current market rates, as well as paying down higher cost borrowings, will provide both short- and long-term benefits.

“Uncertainty around rates continues to be a necessary consideration when planning for growth. The repositioning will help with this process while improving our net interest margin. We were able to achieve modest asset and deposit growth for the year while remaining focused on prudent lending practices. The high cost of funds, in particular in our competitive market, continued to pressure earnings. As we continue with our current stock buyback program, we remain committed to adding shareholder value.”

Income Statement Analysis

Comparison of Operating Results for the Three Months Ended December 31, 2024 and December 31, 2023

Net income increased by $248,000, or 21.0%, to a net loss of $930,000 for the three months ended December 31, 2024 from a net loss of $1.2 million for the three months ended December 31, 2023. This increase was primarily due to an increase of $1.0 million in interest income, a $1.3 million decrease in non-interest expense and a decrease of $998,000 in income tax expense, offset by a $1.5 million increase in interest expense.

Interest income increased $1.0 million, or 10.7%, from $9.6 million for the three months ended December 31, 2023 to $10.6 million for the three months ended December 31, 2024 due to higher yields on interest-earning assets and higher average balances.

Interest income on cash and cash equivalents increased $46,000, or 31.7%, to $191,000 for the three months ended December 31, 2024 from $145,000 for the three months ended December 31, 2023 due to a $4.1 million increase in the average balance to $13.5 million for the three months ended December 31, 2024 from $9.4 million for the three months ended December 31, 2023, reflecting the increase of liquidity due to lower loan originations. Due to rate cuts enacted in the third and fourth quarter of the year, the yield on cash and cash equivalents decreased 47 basis points from 6.08% for the three months ended December 31, 2023 to 5.61% for the three months ended December 31, 2024.

Interest income on loans increased $299,000, or 3.6%, to $8.5 million for the three months ended December 31, 2024 compared to $8.2 million for the three months ended December 31, 2023 due primarily to 16 basis point increase in the average yield from 4.57% for the three months ended December 31, 2023 to 4.73% for the three months ended December 31, 2024 and by a $3.0 million increase in the average balance to $717.4 million for the three months ended December 31, 2024 from $714.4 million for the three months ended December 31, 2023.

Interest income on securities increased $612,000, or 58.8%, to $1.7 million for the three months ended December 31, 2024 from $1.0 million for the three months ended December 31, 2023 primarily due to a $42.1 million increase in the average balance to $175.3 million for the three months ended December 31, 2024 from $133.2 million for the three months ended December 31, 2023 and due to a 65 basis point increase in the average yield from 3.12% for the three months ended December 31, 2023 to 3.77% for the three months ended December 31, 2024.

Interest expense increased $1.5 million, or 22.1%, from $6.6 million for the three months ended December 31, 2023 to $8.1 million for the three months ended December 31, 2024 due to higher costs on interest-bearing liabilities and by a $58.9 million increase in the average balance of interest-bearing liabilities from $747.0 million for the three months ended December 31, 2023 to $805.9 million for the three months ended December 31, 2024. During the three months ended December 31, 2024, the use of the cash flow hedges reduced the interest expense by $280,000.

Interest expense on interest-bearing deposits increased $954,000, or 18.2%, to $6.2 million for the three months ended December 31, 2024 from $5.2 million for the three months ended December 31, 2023. The increase was due to a 61 basis point increase in the average cost of deposits to 4.02% for the three months ended December 31, 2024 from 3.41% for the three months ended December 31, 2023. The increase in the average cost of deposits was due to the higher interest rate environment. The average balances of certificates of deposit increased $4.7 million to $501.8 million for the three months ended December 31, 2024 from $497.1 million for the three months ended December 31, 2023 while NOW and money market accounts and savings accounts decreased $148,000 and $430,000 for the three months ended December 31, 2024, respectively, compared to the three months ended December 31, 2023.

Interest expense on Federal Home Loan Bank borrowings increased $513,000, or 37.1%, from $1.4 million for the three months ended December 31, 2023 to $1.9 million for the three months ended December 31, 2024. The increase was due to an increase in the average balance of borrowings of $54.8 million to $192.2 million for the three months ended December 31, 2024 from $137.4 million for the three months ended December 31, 2023, which was partially offset by a decrease in the average cost of 7 basis points to 3.92% for the three months ended December 31, 2024 from 3.99% for the three months ended December 31, 2023 as new borrowings in the second half of the year were at slightly lower rates. At December 31, 2024, cash flow hedges used to manage interest rate risk had a notional value of $65.0 million, while fair value hedges totaled $60.0 million in notional value.

Net interest income decreased $439,000, or 14.9%, to $2.5 million for the three months ended December 31, 2024 from $2.9 million for the three months ended December 31, 2023. The decrease reflected a 27 basis point decrease in our net interest rate spread to 0.61% for the three months ended December 31, 2024 from 0.88% for the three months ended December 31, 2023. Our net interest margin decreased 26 basis points to 1.09% for the three months ended December 31, 2024 from 1.35% for the three months ended December 31, 2023.

We recorded a $218,000 recovery for credit losses for the three months ended December 31, 2024 compared to a no provision for credit losses for the three-month period ended December 31, 2023. The recovery in the fourth quarter of 2024 reflects the decrease in the loan and securities portfolio.

Non-interest income increased by $136,000, or 48.2%, to $419,000 for the three months ended December 31, 2024 from $283,000 for the three months ended December 31, 2023. Bank-owned life insurance income increased $16,000, or 7.7%, due to higher balances during 2024. Gain on sale of assets was $74,000 as proceeds from the sale-leaseback transaction exceeded the loss on securities.

For the three months ended December 31, 2024, non-interest expense decreased $1.3 million, or 26.9%, over the comparable December 31, 2023 period. Salaries and employee benefits decreased $776,000, or 25.2%, due to lower headcount. Professional fees decreased $141,000, or 56.9% due to lower legal costs in 2024. FDIC insurance premiums increased $12,000, or 12.1%, due to a higher assessment rate in 2024. Data processing expense increased $23,000, or 9.3%, due to higher processing costs. Director fees increased $14,000, or 9.9%, due to higher pension expense. The decrease in advertising expense of $35,000, or 36.4%, was due to reduced promotions for branch locations and less promotions on deposit and loan products. Other expense decreased $456,000, or 68.2%, as 2023 expenses were elevated due to a pending fraud claim that was under review with the insurance company.

Income tax expense increased $998,000, or 182.1%, to an expense of $450,000 for the three months ended December 31, 2024 from a benefit of $548,000 for the three months ended December 31, 2023. The increase was due to tax reserves on uncertain deferred tax assets.

Comparison of Operating Results for the Twelve Months Ended December 31, 2024 and December 31, 2023

Net income decreased by $2.8 million, or 437.8%, to a net loss of $2.2 million for the twelve months ended December 31, 2024 from net income of $643,000 for the twelve months ended December 31, 2023. This decrease was primarily due to a decrease of $4.4 million in net interest income, offset by a decrease of $1.2 million in non-interest expense and by an increase of $209,000 in non-interest income and $209,000 in income tax benefit.

Interest income increased $4.4 million, or 12.0%, from $37.3 million for the twelve months ended December 31, 2023 to $41.7 million for the twelve months ended December 31, 2024 due to increases in the average balances of and higher yields on interest-earning assets.

Interest income on cash and cash equivalents increased $38,000, or 6.7%, to $606,000 for the twelve months ended December 31, 2024 from $568,000 for the twelve months ended December 31, 2023 due to a 71 basis point increase in the average yield from 5.23% for the twelve months ended December 31, 2023 to 5.94% for the twelve months ended December 31, 2024 due to the higher interest rate environment for most of 2024. This was offset by a $671,000 decrease in the average balance to $10.2 million for the twelve months ended December 31, 2024 from $10.9 million for the twelve months ended December 31, 2023, reflecting the use of excess liquidity primarily to fund securities purchases.

Interest income on loans increased $1.4 million, or 4.3%, to $33.4 million for the twelve months ended December 31, 2024 compared to $32.0 million for the twelve months ended December 31, 2023 due primarily to a 20 basis point increase in the average yield from 4.49% for the twelve months ended December 31, 2023 to 4.69% for the twelve months ended December 31, 2024. The increase was offset by a $661,000 decrease in the average balance to $713.1 million for the twelve months ended December 31, 2024 from $713.8 million for the twelve months ended December 31, 2023.

Interest income on securities increased $2.7 million, or 66.7%, to $6.9 million for the twelve months ended December 31, 2024 from $4.2 million for the twelve months ended December 31, 2023 due to a 101 basis point increase in the average yield from 2.87% for the twelve months ended December 31, 2023 to 3.88% for the twelve months ended December 31, 2024 and by a $33.8 million increase in the average balance of securities to $178.7 million for the twelve months ended December 31, 2024 from $144.9 million for the twelve months ended December 31, 2023.

Interest expense increased $8.9 million, or 39.9%, from $22.3 million for the twelve months ended December 31, 2023 to $31.2 million for the twelve months ended December 31, 2024 due to increases in the average balance of and higher costs on interest-bearing liabilities. During the twelve months ended December 31, 2024, the use of the cash flow hedges reduced the interest expense on the Federal Home Loan Bank advances by $1.5 million.

Interest expense on interest-bearing deposits increased $6.6 million, or 36.4%, to $24.6 million for the twelve months ended December 31, 2024 from $18.0 million for the twelve months ended December 31, 2023. The increase was due to a 112 basis point increase in the average cost of interest-bearing deposits to 3.97% for the twelve months ended December 31, 2024 from 2.85% for the twelve months ended December 31, 2023, offset by a $12.3 million decrease in the average balance of interest-bearing deposits. The increase in the average cost of deposits was due to the higher interest rate environment and a change in the composition of the deposit portfolio. The average balances of certificates of deposit increased $10.2 million to $508.3 million for the twelve months ended December 31, 2024 from $498.1 million for the twelve months ended December 31, 2023 while NOW and money market accounts and savings accounts decreased $18.1 million and $4.4 million for the twelve months ended December 31, 2024, respectively, compared to the twelve months ended December 31, 2023.

Interest expense on Federal Home Loan Bank borrowings increased $2.3 million, or 54.4%, from $4.3 million for the twelve months ended December 31, 2023 to $6.6 million for the twelve months ended December 31, 2024. The increase was due to an increase in the average balance of borrowings of $59.2 million to $176.0 million for the twelve months ended December 31, 2024 from $116.8 million for the twelve months ended December 31, 2023. The increase was due to an increase in the average cost of 9 basis points to 3.76% for the twelve months ended December 31, 2024 from 3.67% for the twelve months ended December 31, 2023 due to the new borrowings at higher rates. At December 31, 2024, cash flow hedges used to manage interest rate risk had a notional value of $65.0 million, while fair value hedges totaled $60.0 million in notional value.

Net interest income decreased $4.4 million, or 29.5%, to $10.6 million for the twelve months ended December 31, 2024 from $15.0 million for the twelve months ended December 31, 2023. The decrease reflected a 62 basis point decrease in our net interest rate spread to 0.66% for the twelve months ended December 31, 2024 from 1.28% for the twelve months ended December 31, 2023. Our net interest margin decreased 55 basis points to 1.16% for the twelve months ended December 31, 2024 from 1.71% for the twelve months ended December 31, 2023.

We recorded a $148,000 recovery of credit losses for the twelve months ended December 31, 2024 compared to a $125,000 recovery for credit losses for the twelve-month period ended December 31, 2023 which reflected a decrease in the loan and securities portfolios, as well as no charge-offs during the years. This recovery was inclusive of the effect due to the transfer of certain securities from the held to maturity portfolio to the available for sale portfolio, which resulted in a $108,000 recovery for credit losses.

Non-interest income increased by $209,000, or 18.4%. Gain on sale of assets increased $74,000 while fee and service charged income increased $22,000 or 10.6%, and income related to bank owned life insurance increased $90,000, or 11.5%, due to higher balances during 2024.

For the twelve months ended December 31, 2024, non-interest expense decreased $1.2 million, or 7.4%, compared to the twelve months ended December 31, 2023. Salaries and employee benefits decreased $1.1 million, or 10.9%, as 2023 amounts included an accrual of a severance contract for the retirement of the previous President and a higher employee count when compared to 2024. Professional fees increased $129,000 or 19.5%, due to higher legal expense. Data processing increased $234,000, or 24.1%, due to higher processing costs. Other expense decreased $369,000, or 27.8%, as 2023 amounts included charges for a pending fraud claim that is under review with the insurance company.

Income tax benefit increased $209,000, or 129.1%, to a benefit of $372,000 for the twelve months ended December 31, 2024 from a benefit of $162,000 for the twelve months ended December 31, 2023. The increase in benefit was due to $3.0 million, or 629.2%, of lower taxable income. The effective tax rate for the twelve months ended December 31, 2024 and December 31, 2023 was (14.62%) and (33.76%), respectively. The benefit would have been higher but there were valuation reserves on certain deferred tax assets as of December 31, 2024.

Balance Sheet Analysis

Total assets were $971.5 million at December 31, 2024, representing an increase of $32.2 million, or 3.4%, from December 31, 2023. Cash and cash equivalents increased $27.3 million during the period primarily due to loan payments received and growth in deposits and borrowings. Net loans decreased $3.0 million, or 0.4%, due to $63.8 million in repayments, partially offset by new production of $61.2 million. Due to the interest rate environment, we have seen a decrease in demand for residential and construction loans, which have been primary drivers of our loan growth in recent periods. Securities held to maturity were reclassified to securities available for sale which decreased an aggregate $1.2 million or 0.9%, due to the repayments of mortgage-backed securities and maturities of corporate bonds. Right of use assets increased $10.8 million due to new right-of-use lease assets recognized as part of the sale-leaseback transaction.

Delinquent loans increased $1.7 million to $14.3 million, or 2.01% of total loans, at December 31, 2024. The increase was mostly due to one commercial real estate loan with a balance of $755,000 and two residential mortgages totaling $653,000, all of which are classified as nonaccrual. During the same timeframe, non-performing assets increased to $14.0 million and were 1.44% of total assets at December 31, 2024. The Company’s allowance for credit losses was 0.37% of total loans and 18.77% of non-performing loans at December 31, 2024 compared to 0.39% of total loans and 21.81% of non-performing loans at December 31, 2023. At that date, $10.9 million, or 76.0%, of the total non-performing loans consisted of one construction loan with a loan-to-value of 45%, which required no specific reserve. The Bank does not have any exposure to commercial real estate loans secured by office space.

Total liabilities increased $32.0 million, or 4.0%, to $834.2 million mainly due to a $16.8 million increase in deposits and by a $4.5 million increase in borrowings. Lease liabilities also increased $10.8 million due to new lease liabilities recognized as part of the sale-leaseback transaction. Total deposits increased $16.9 million, or 2.7%, to $642.2 million at December 31, 2024 from $625.3 million at December 31, 2023. The increase in deposits reflected increases in NOW, money market and savings accounts, which increased by $14.7 million from $101.5 million at December 31, 2023 to $116.2 million at December 31, 2024 and by an increase in non-interest bearing accounts, which increased by $2.1 million to $32.7 million from $30.6 million at December 31, 2023. At December 31, 2024, brokered deposits were $101.6 million or 15.8% of deposits and municipal deposits were $30.7 million or 4.8% of deposits. At December 31, 2024, uninsured deposits represented 6.9% of the Bank’s total deposits. Federal Home Loan Bank advances increased $4.5 million, or 2.7%. Total borrowing capacity at the Federal Home Loan Bank is $280.4 million, of which $172.2 million is advanced.

Total stockholders’ equity increased $116,000 to $137.3 million, which was largely unchanged from last year. The increase was due to a reduction in the accumulated other comprehensive loss on the securities portfolio of $2.9 million, offset by a net loss of $2.2 million and the repurchase of 221,130 shares of stock at a total cost of $1.7 million. At December 31, 2024, the Company’s ratio of average stockholders’ equity-to-average total assets was 14.10%, compared to 14.89% at December 31, 2023.

About Bogota Financial Corp.

Bogota Financial Corp. is a Maryland corporation organized as the mid-tier holding company of Bogota Savings Bank and is the majority-owned subsidiary of Bogota Financial, MHC. Bogota Savings Bank is a New Jersey chartered stock savings bank that has served the banking needs of its customers in northern and central New Jersey since 1893. It operates from seven offices located in Bogota, Hasbrouck Heights, Newark, Oak Ridge, Parsippany, Teaneck and Upper Saddle River, New Jersey and operates a loan production office in Spring Lake, New Jersey.

Forward-Looking Statements

This press release contains certain forward-looking statements about the Company and the Bank. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, potential recessionary conditions, real estate market values in the Bank’s lending area, changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio; changes in the quality of our loan and security portfolios, increases in non-performing and classified loans, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the imposition of tariffs or other domestic or international governmental policies, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged.

The Company undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.


BOGOTA FINANCIAL CORP. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)

	As of December 31, 2024			As of December 31, 2023
ASSETS
Cash and due from banks	$	18,020,527		$	13,567,115
Interest-bearing deposits in other banks		34,211,681			11,362,356
Cash and cash equivalents		52,232,208			24,929,471

Securities available for sale		140,307,447			68,888,179
Securities held to maturity (fair value of $70,699,651 at December 31, 2023)		–			72,656,179
Loans, net of allowance $2,620,949 and $2,785,949, respectively		711,716,236			714,688,635
Premises and equipment, net		4,727,302			7,687,387
Federal Home Loan Bank (“FHLB”) stock		8,803,000			8,616,100
Accrued interest receivable		4,232,563			3,932,785
Core deposit intangibles		152,893			206,116
Bank owned life insurance		31,859,604			30,987,851
Right of use asset		10,776,596			–
Other assets		6,682,035			6,731,500
Total assets	$	971,489,884		$	939,324,203

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Deposits
Non-interest bearing	$	32,681,963		$	30,554,842
Interest bearing		609,506,079			594,792,300
		642,188,042			625,347,142

FHLB advances-short term		29,500,000			37,500,000
FHLB advances-long term		142,673,182			130,189,663
Advance payments by borrowers for taxes and insurance		2,809,205			2,733,709
Lease liability		10,780,363			–
Other liabilities		6,249,932			6,380,486
Total liabilities		834,200,724			802,151,000

Stockholders’ Equity
Preferred stock $0.01 par value 1,000,000 shares authorized, none issued and outstanding at December 31, 2024, and 2023		—			—
Common stock $0.01 par value, 30,000,000 shares authorized, 13,059,175 issued and outstanding at December 31, 2024 and 13,279,230 at December 31, 2023		130,591			132,792
Additional Paid-In capital		55,269,962			56,149,915
Retained earnings		90,006,649			92,177,068
Unearned ESOP shares (382,933 shares at December 31, 2024 and 409,750 shares at December 31, 2023)		(4,520,594	)		(4,821,798	)
Accumulated other comprehensive loss		(3,597,448	)		(6,464,774	)
Total stockholders’ equity		137,289,160			137,173,203
Total liabilities and stockholders’ equity	$	971,489,884		$	939,324,203


BOGOTA FINANCIAL CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2024			2023			2024			2023
Interest income
Loans	$	8,522,844		$	8,224,488		$	33,411,221		$	32,046,033
Securities
Taxable		1,641,126			1,027,755			6,888,462			4,070,144
Tax-exempt		11,483			13,135			50,892			91,428
Other interest-earning assets		418,634			300,656			1,399,170			1,072,240
Total interest income		10,594,087			9,566,034			41,749,745			37,279,845
Interest expense
Deposits		6,200,367			5,245,865			24,584,690			18,023,772
FHLB advances		1,894,789			1,382,244			6,613,845			4,282,603
Total interest expense		8,095,156			6,628,109			31,198,535			22,306,375
Net interest income		2,498,931			2,937,925			10,551,210			14,973,470
Provision (credit) for credit losses		(218,000	)		—			(148,000	)		(125,000	)
Net interest income after provision (credit) for credit losses		2,716,931			2,937,925			10,699,210			15,098,470
Non-interest income
Fees and service charges		64,285			47,382			228,685			206,763
Gain on sale of loans		20,232			—			31,942			29,375
Gain on sale of properties		9,005,245			—			9,005,245			—
Loss on sale of securities		(8,930,843	)		—			(8,930,843	)		—
Bank-owned life insurance		223,616			207,453			871,753			781,526
Other		36,202			27,711			141,622			121,371
Total non-interest income		418,737			282,546			1,348,404			1,139,035
Non-interest expense
Salaries and employee benefits		2,345,404			3,082,176			8,750,350			9,820,128
Occupancy and equipment		348,778			359,937			1,467,517			1,474,107
FDIC insurance assessment		110,464			98,525			424,090			418,215
Data processing		274,889			251,485			1,203,181			969,398
Advertising		60,840			95,681			371,790			465,064
Director fees		155,699			141,639			622,799			619,650
Professional fees		107,129			248,526			789,646			661,045
Other		212,632			668,220			960,230			1,329,520
Total non-interest expense		3,615,835			4,946,189			14,589,603			15,757,127
(Loss) income before income taxes		(480,167	)		(1,725,718	)		(2,541,989	)		480,378
Income tax (benefit) expense		449,834			(547,958	)		(371,569	)		(162,157	)
Net (loss) income	$	(930,001	)	$	(1,177,760	)	$	(2,170,420	)	$	642,535
Earnings (loss) per Share – basic	$	(0.07	)	$	(0.09	)	$	(0.17	)	$	0.05
Earnings (loss) per Share – diluted	$	(0.07	)	$	(0.09	)	$	(0.17	)	$	0.05
Weighted average shares outstanding – basic		12,686,765			12,767,410			12,767,628			12,891,847
Weighted average shares outstanding – diluted		12,686,765			12,767,410			12,767,628			12,891,847


BOGOTA FINANCIAL CORP. SELECTED RATIOS (unaudited)

	At or For the Three Months Ended December 31,						At or For the Twelve Months Ended December 31,
	2024			2023			2024			2023
Performance Ratios ⁽¹⁾:
(Loss) return on average assets (2)		(0.09	)%		(0.51	)%		(0.22	)%		0.07	%
(Loss) return on average equity (3)		(0.68	)%		(3.43	)%		(1.59	)%		0.46	%
Interest rate spread ⁽⁴⁾		0.61	%		0.88	%		0.66	%		1.28	%
Net interest margin ⁽⁵⁾		1.09	%		1.35	%		1.16	%		1.71	%
Efficiency ratio ⁽⁶⁾		123.93	%		153.59	%		122.61	%		97.04	%
Average interest-earning assets to average interest-bearing liabilities		113.67	%		115.71	%		114.48	%		116.95	%
Net loans to deposits		110.83	%		114.29	%		110.83	%		114.29	%
Equity to assets ⁽⁷⁾		13.99	%		14.94	%		14.10	%		14.89	%
Capital Ratios:
Tier 1 capital to average assets								13.34	%		15.24	%
Asset Quality Ratios:
Allowance for credit losses as a percent of total loans								0.37	%		0.39	%
Allowance for credit losses as a percent of non-performing loans								18.77	%		21.81	%
Net charge-offs to average outstanding loans during the period								0.00	%		0.00	%
Non-performing loans as a percent of total loans								1.95	%		1.79	%
Non-performing assets as a percent of total assets								1.44	%		1.36	%

(1	)	Certain performance ratios for the three-month periods are annualized.
(2	)	Represents net income divided by average total assets.
(3	)	Represents net income divided by average stockholders’ equity.
(4	)	Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of average interest-bearing liabilities. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of 27.5%.
(5	)	Represents net interest income as a percent of average interest-earning assets. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of 27.5% for 2024 and 2023.
(6	)	Represents non-interest expenses divided by the sum of net interest income and non-interest income.
(7	)	Represents average stockholders’ equity divided by average total assets.

LOANS

Loans are summarized as follows at December 31, 2024 and December 31, 2023:

	December 31,			December 31,
	2024			2023
Real estate:		(unaudited)
Residential First Mortgage	$	472,747,542		$	486,052,422
Commercial Real Estate		118,008,866			99,830,514
Multi-Family Real Estate		74,152,418			75,612,566
Construction		43,183,657			49,302,040
Commercial and Industrial		6,163,747			6,658,370
Consumer		80,955			18,672
Total loans		714,337,185			717,474,584
Allowance for credit losses		(2,620,949	)		(2,785,949	)
Net loans	$	711,716,236		$	714,688,635

The following tables set forth the distribution of total deposit accounts, by account type, at the dates indicated (unaudited).

	At December 31,
	2024								2023
	Amount		Percent			Average Rate			Amount		Percent			Average Rate
	(Dollars in thousands)
Noninterest bearing demand accounts	$	32,681,963		5.09	%		—	%	$	30,554,842		4.89	%		—	%
NOW accounts		55,048,614		8.62			2.53			41,320,723		6.61			1.90
Money market accounts		24,578,021		2.18			0.58			14,641,846		2.34			0.30
Savings accounts		47,001,817		7.3			1.90			45,554,964		7.28			1.76
Certificates of deposit		482,877,627		76.81			4.37			493,274,767		78.88			4.00
Total	$	642,188,042		100.00	%		3.73	%	$	625,347,142		100.00	%		3.42	%

Average Balance Sheets and Related Yields and Rates

The following tables present information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting annualized average yields and costs. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. Average balances have been calculated using daily balances. Nonaccrual loans are included in average balances only. Loan fees are included in interest income on loans and are not material.

	Three Months Ended December 31,
	2024								2023
	Average			Interest and		Yield/			Average			Interest and		Yield/
	Balance			Dividends		Cost ⁽³⁾			Balance			Dividends		Cost ⁽³⁾
	(Dollars in thousands)
	(unaudited)
Assets:
Cash and cash equivalents	$	13,547		$	191		5.61	%	$	9,433		$	145		6.08	%
Loans		717,433			8,523		4.73	%		714,380			8,224		4.57	%
Securities		175,308			1,653		3.77	%		133,241			1,041		3.12	%
Other interest-earning assets		9,711			227		9.37	%		7,216			156		8.70	%
Total interest-earning assets		915,999			10,594		4.61	%		864,270			9,566		4.40	%
Non-interest-earning assets		63,511								56,543
Total assets	$	979,510							$	920,813
Liabilities and equity:
NOW and money market accounts	$	67,362		$	366		2.16	%	$	67,510		$	310		1.82	%
Savings accounts		44,425			213		1.91	%		44,855			205		1.81	%
Certificates of deposit		501,875			5,621		4.46	%		497,147			4,731		3.78	%
Total interest-bearing deposits		613,662			6,200		4.02	%		609,512			5,246		3.41	%
Federal Home Loan Bank advances ⁽¹⁾		192,196			1,895		3.92	%		137,445			1,382		3.99	%
Total interest-bearing liabilities		805,858			8,095		4.00	%		746,957			6,628		3.52	%
Non-interest-bearing deposits		32,734								34,835
Other non-interest-bearing liabilities		3,837								1,454
Total liabilities		842,429								783,246
Total equity		137,081								137,567
Total liabilities and equity	$	979,510							$	920,813
Net interest income				$	2,499							$	2,938
Interest rate spread ⁽²⁾							0.61	%							0.88	%
Net interest margin ⁽³⁾							1.09	%							1.35	%
Average interest-earning assets to average interest-bearing liabilities		113.67	%							115.71	%

1.	Cash flow hedges are used to manage interest rate risk. During the three months ended December 31, 2024, the net effect on interest expense on the Federal Home Loan Bank advances was a reduced expense of $280,000.
2.	Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
3.	Net interest margin represents net interest income divided by average total interest-earning assets.

	Twelve Months Ended December 31,
	2024								2023
	Average			Interest and		Yield/			Average			Interest and		Yield/
	Balance			Dividends		Cost ⁽³⁾			Balance			Dividends		Cost ⁽³⁾
	(Dollars in thousands)
	(unaudited)
Assets:
Cash and cash equivalents	$	10,197		$	606		5.94	%	$	10,868		$	568		5.23	%
Loans		713,138			33,412		4.69	%		713,799			32,046		4.49	%
Securities		178,684			6,939		3.88	%		144,880			4,162		2.87	%
Other interest-earning assets		9,106			793		8.71	%		6,389			504		7.89	%
Total interest-earning assets		911,125			41,750		4.58	%		875,936			37,280		4.26	%
Non-interest-earning assets		59,511								54,925
Total assets	$	970,636							$	930,861
Liabilities and equity:
NOW and money market accounts	$	67,561		$	1,359		2.01	%	$	85,663		$	1,399		1.63	%
Savings accounts		43,975			821		1.87	%		48,351			580		1.20	%
Certificates of deposit		508,327			22,405		4.41	%		498,129			16,045		3.22	%
Total interest-bearing deposits		619,863			24,585		3.97	%		632,143			18,024		2.85	%
Federal Home Loan Bank advances ⁽¹⁾		175,997			6,614		3.76	%		116,816			4,283		3.67	%
Total interest-bearing liabilities		795,860			31,199		3.92	%		748,959			22,307		2.98	%
Non-interest-bearing deposits		31,572								38,636
Other non-interest-bearing liabilities		6,303								4,627
Total liabilities		833,735								792,222
Total equity		136,901								138,639
Total liabilities and equity	$	970,636							$	930,861
Net interest income				$	10,551							$	14,973
Interest rate spread ⁽²⁾							0.66	%							1.28	%
Net interest margin ⁽³⁾							1.16	%							1.71	%
Average interest-earning assets to average interest-bearing liabilities		114.48	%							116.95	%

1.	Cash flow hedges are used to manage interest rate risk. During the twelve months ended December 31, 2024, the net effect on interest expense on the Federal Home Loan Bank advances was a reduced expense of $1.5 million.
2.	Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
3.	Net interest margin represents net interest income divided by average total interest-earning assets.

Rate/Volume Analysis

The following table sets forth the effects of changing rates and volumes on net interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on the changes due to rate and the changes due to volume.

	Three Months Ended December 31,									Twelve Months Ended December 31,
	2024 Compared to Three									2024 Compared to Twelve Months
	Months Ended December 31, 2023									Ended December 31, 2023
	Increase (Decrease) Due to									Increase (Decrease) Due to
	Volume			Rate			Net			Volume			Rate			Net
	(In thousands)
	(unaudited)
Interest income:
Cash and cash equivalents	$	114		$	(68	)	$	46		$	(37	)	$	75		$	38
Loans receivable		33			266			299			(30	)		1,396			1,366
Securities		369			243			612			1,108			1,669			2,777
Other interest earning assets		58			13			71			232			57			289
Total interest-earning assets		574			454			1,028			1,273			3,197			4,470
Interest expense:
NOW and money market accounts		(5	)	$	61		$	56			(328	)		288			(40	)
Savings accounts		(12	)		20			8			(57	)		298			241
Certificates of deposit		45			845			890			335			6,025			6,360
Federal Home Loan Bank advances		676			(163	)		513			2,221			110			2,331
Total interest-bearing liabilities		704			763			1,467			2,171			6,721			8,892
Net decrease in net interest income	$	(130	)	$	(309	)	$	(439	)	$	(898	)	$	(3,524	)	$	(4,422	)

Contacts
Kevin Pace – President & CEO, 201-862-0660 ext. 1110

February 15, 2025

Source: GlobeNewswire (MIL-OSI)

COLDWATER, Mich., Feb. 14, 2025 (GLOBE NEWSWIRE) — Southern Michigan Bancorp, Inc. (OTC Pink: SOMC) announced fourth quarter net income of $2,650,000, or $0.57 per share, compared to net income of $2,437,000, or $0.54 per share, for the fourth quarter of 2023. Southern earned $10,402,000 or $2.28 per share, for the year ended December 31, 2024, compared with $10,905,000 or $2.40 per share, for the same period one year ago.

John R. Waldron, President and Chief Executive Officer of Southern Michigan Bancorp, Inc., stated, “2024 was another solid year with total assets reaching approximately $1.5 billion. During the year ended December 31, 2024, total loans and deposits grew to $1.116 billion and $1.252 billion, respectively. While our earnings continue to be impacted by the current interest rate environment, we remain encouraged by the strength of our core deposits and our ability to maintain asset quality.”

The allowance for credit losses totaled $12,782,000, or 1.14% of loans on December 31, 2024, compared to $11,697,000, or 1.13% on December 31, 2023. Net loan charge-offs totaled $27,000 for 2024, compared to $15,000 for 2023. Non-performing loans as a percentage of total loans were 0.08% on December 31, 2024 and December 31, 2023.

The annualized return on average assets for the years ended December 31, 2024, and December 31, 2023, was 0.71% and 0.80%, respectively. The annualized return on average equity was 10.07% for 2024 compared to 11.94% for 2023. The tax equivalent net interest margin for the years ending December 31, 2024, and 2023 was 2.98% and 3.16%, respectively.

Southern Michigan Bancorp, Inc. is a bank holding company and the parent company of Southern Michigan Bank & Trust. It operates 18 offices within Branch, Calhoun, Hillsdale, Jackson, Kalamazoo and St. Joseph Counties providing a broad range of consumer, business and wealth management services throughout the region.

This press release contains forward-looking statements that are based on management’s beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy, and Southern Michigan Bancorp, Inc. Forward-looking statements are identifiable by words or phrases such as “expected,” “begin,” and other similar words or expressions. All statements with reference to a future time period are forward-looking. Management’s determination of the provision and allowance for credit losses and other accounting estimates, such as the carrying value of goodwill, other real estate owned, mortgage servicing rights and the fair value of investment securities, involves judgments that are inherently forward-looking. The future effect of changes in the financial and credit markets and the national and regional economy on the banking industry, generally, and Southern Michigan Bancorp, Inc., specifically, are also inherently uncertain. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“risk factors”) that are difficult to predict with regard to timing, extend, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed in or implied by such forward-looking statements. Southern Michigan Bancorp, Inc. does not undertake to update forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.


SOUTHERN MICHIGAN BANCORP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands, except share data)
	December 31, 2024			December 31, 2023
ASSETS
Cash and cash equivalents	$	73,737		$	71,620
Federal funds sold		259			1,468
Securities available for sale, at fair value		159,320			169,740
Securities held-to-maturity, at amortized cost		60,454			61,600
Loans held-for-sale		995			169
Loans, net of allowance for credit losses of $12,782 – 2024, $11,697 – 2023		1,103,652			1,024,720
Premises and equipment, net		25,600			23,114
Net cash surrender value of life insurance		23,139			22,472
Goodwill		13,422			13,422
Other intangible assets, net		111			147
Other assets		35,866			26,323
TOTAL ASSETS	$	1,496,555		$	1,414,795

LIABILITIES
Deposits:
Non-interest bearing	$	223,583		$	226,178
Interest bearing		1,028,212			931,793
Total deposits		1,251,795			1,157,971

Securities sold under agreements to repurchase and overnight borrowings		1,560			1,738
Accrued expenses and other liabilities		18,355			15,703
Other borrowings		82,900			106,900
Subordinated debentures		34,722			34,653
Total liabilities		1,389,332			1,316,965

SHAREHOLDERS’ EQUITY
Preferred stock, 100,000 shares authorized; none issued or outstanding		–			–
Common stock, $2.50 par value:
Authorized – 10,000,000 shares
Issued and outstanding – 4,577,107 shares in 2024, 4,533,637 shares in 2023		11,438			11,330
Additional paid-in capital		13,438			13,126
Retained earnings		97,462			89,808
Accumulated other comprehensive loss		(15,115	)		(16,434	)
Total shareholders’ equity		107,223			97,830
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,496,555		$	1,414,795


SOUTHERN MICHIGAN BANCORP, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands, except per share data)

	Three Months Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023
Interest income:
Loans, including fees	$	16,628	$	15,308	$	64,376	$	54,887
Federal funds sold and balances with banks		999		766		4,629		3,125
Securities:
Taxable		1,376		1,635		5,889		6,291
Tax-exempt		318		304		1,222		1,265
Total interest income		19,321		18,013		76,116		65,568

Interest expense:
Deposits		7,358		6,077		29,013		20,593
Other		1,315		1,606		6,016		4,995
Total interest expense		8,673		7,683		35,029		25,588
Net interest income		10,648		10,330		41,087		39,980
Provision for credit losses		353		–		1,014		950
Net interest income after provision for credit losses		10,295		10,330		40,073		39,030

Non-interest income:
Service charges on deposit accounts		422		422		1,692		1,670
Trust fees		704		632		2,744		2,419
Net gains on loan sales		253		119		672		305
Earnings on life insurance assets		170		161		667		617
ATM and debit card fee income		462		447		1,818		1,786
Other		289		296		898		941
Total non-interest income		2,300		2,077		8,491		7,738

Non-interest expense:
Salaries and employee benefits		6,233		5,836		22,388		20,586
Occupancy, net		540		416		2,054		1,813
Equipment		425		385		1,658		1,449
Professional and outside services		581		770		2,156		2,243
Software maintenance		635		608		2,452		2,247
ATM expenses		212		201		841		803
Printing, postage, and supplies		97		118		510		437
Telecommunication expenses		73		109		313		376
Other		1,096		940		4,053		3,466
Total non-interest expense		9,892		9,383		36,425		33,420
INCOME BEFORE INCOME TAXES		2,703		3,024		12,139		13,348
Federal income tax provision		53		587		1,737		2,443
NET INCOME	$	2,650	$	2,437	$	10,402	$	10,905

Basic Earnings Per Common Share	$	0.57	$	0.54	$	2.28	$	2.40
Diluted Earnings Per Common Share		0.57		0.54		2.28		2.40
Dividends Declared Per Common Share		0.15		0.14		0.60		0.56

February 15, 2025

Source: GlobeNewswire (MIL-OSI)

GADSDEN, Ala., Feb. 14, 2025 (GLOBE NEWSWIRE) — The Southern Banc Company, Inc. (OTCBB: SRNN), the holding company for The Southern Bank Company, formerly First Federal Savings and Loan Association of Gadsden, Alabama, announced net income of approximately $369,000, or $0.49 per basic share and $0.48 per diluted share, for the three months ended December 31, 2024, as compared to net income of approximately $471,000, or $0.62 per basic share and $0.61 per diluted share, for the three months ended December 31, 2023. For the six months ended December 31, 2024, the Company recorded net income of approximately $545,000, or $0.72 per basic share and $0.71 per diluted share, as compared to net income of approximately $837,000, or $1.10 per basic share and $1.09 per diluted share, for the six months ended December 31, 2023. The Company’s fiscal year ends June 30, 2025.

Gates Little, President and Chief Executive Officer of the Company, stated that the Company’s net interest income before provision for loan losses totaled approximately $2.213 million during the three months ended December 31, 2024, as compared to approximately $2.013 million in the same period in 2023, an increase of approximately $201,000, or 9.96%. The increase in the net interest income before provision for loan losses for the three months ended December 31, 2024, was primarily attributable to an increase in total interest income of approximately $430,000, offset by an increase in total interest expense of approximately $230,000. In the three months ended December 31, 2024, the Bank recorded a provision for loan losses of approximately $70,000 and no provision for loan losses in during the three months ended December 31, 2023. For the three months ended December 31, 2024, total non-interest income increased approximately $9,000, or 6.09%, while total non-interest expense increased approximately $278,000, or 18.25%, as compared to the same three-month period in 2023. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $10,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $222,000, office building expense of approximately $6,000, other operating expense of approximately $16,000, professional service expense of approximately $45,000, offset by a decrease in data processing expense of approximately $12,000.

For the six months ended December 31, 2024, the Company’s net interest income before provision for loan losses totaled approximately $4.363 million, an increase of approximately $479,000, or 12.33%, when compared to the six months ended December 31, 2023. The increase in net interest income before provision for loan losses was primarily attributable to an increase in total interest income of approximately $965,000, or 20.38%, offset by an increase in total interest expense of approximately $486,000, or 57.19%. For the six months ended December 31, 2024, the Bank recorded provisions for loan losses of approximately $442,000. There was no provision for loan losses during the six months ended December 31, 2023. For the six months ended December 31, 2024, total non-interest income increased approximately $12,000, or 4.10%, compared to the same period in 2023, while non-interest expense increased approximately $444,000, or 14.59%. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $14,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $340,000, office and equipment of approximately $14,000, professional service expenses of approximately $119,000 offset in part by decreases in data processing expense of approximately $15,000, and other operating expense of approximately $15,000.

The Company’s total assets at December 31, 2024 were approximately $117.0 million, as compared to approximately $113.0 million at June 30, 2024. Total stockholders’ equity was approximately $15.5 million at December 31, 2024, or 13.2% of total assets, as compared to approximately $14.5 million at June 30, 2024, or 12.80% of total assets.

The Bank has four full-service banking offices located in Gadsden, Albertville, Guntersville, and Centre, AL, and one loan production office in Birmingham, AL. The stock of The Southern Banc Company, Inc. trades in the over-the-counter market under the symbol “SRNN”.

Certain statements in this release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which statements can generally be identified by the use of forward-looking terminology, such as “may,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “target,” “plan,” “project,” “continue,” or the negatives thereof, or other variations thereon or similar terminology, and are made on the basis of management’s plans and current analyses of the Company, its business and the industry as a whole. These forward-looking statements are subject to risks and uncertainties, including, but not limited to, economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes. The above factors, in some cases, have affected, and in the future could affect the Company’s financial performance and could cause actual results to differ materially from those expressed or implied in such forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

(Selected financial data attached)

THE SOUTHERN BANC COMPANY, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollar Amounts in Thousands)

		December 31,			June 30,
		2024			2024
		Unaudited			Audited
ASSETS
CASH AND CASH EQUIVALENTS	$	16,592		$	12,632
SECURITIES AVAILABLE FOR SALE, at fair value		39,238			37,912
FEDERAL HOME LOAN BANK STOCK		120			120
LOANS RECEIVABLE, net of allowance for loan losses of $1,548 and $1,151, respectively		56,999			58,199
PREMISES AND EQUIPMENT, net		1,059			1,133
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE		946			934
PREPAID EXPENSES AND OTHER ASSETS		2,055			2,124

TOTAL ASSETS	$	117,009		$	113,054

LIABILITIES
DEPOSITS	$	95,528		$	92,250
FHLB ADVANCES		0			0
OTHER LIABILITIES		6,035			6,338
TOTAL LIABILITIES		101,563			98,588
STOCKHOLDERS’ EQUITY:
Preferred stock, par value $.01 per share
500,000 shares authorized; no shares issued and outstanding		–			–
Common stock, par value $.01 per share,
3,500,000 authorized, 1,454,750 shares issued		15			15
Additional paid-in capital		13,946			13,943
Shares held in trust, 49,081 and 46,454 shares at cost, respectively		(804	)		(772	)
Retained earnings		14,429			13,884
Treasury stock, at cost, 648,664 shares		(8,825	)		(8,825	)
Accumulated other comprehensive (loss) income		(3,315	)		(3,779	)
TOTAL STOCKHOLDERS’ EQUITY		15,446			14,466
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	117,009		$	113,054


THE SOUTHERN BANC COMPANY, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollar Amounts in Thousands, except per share data)

		Three Months Ended				Six Months Ended
		December 31,				December 31,

		2024 (Unaudited)		2023		2024 (Unaudited)		2023

INTEREST INCOME:
Interest and fees on loans	$	2,598	$	2,210	$	5,072	$	4,176
Interest and dividends on securities		179		183		345		369
Other interest income		126		80		281		188
Total interest income		2,903		2,473		5,698		4,733
INTEREST EXPENSE:
Interest on deposits		690		460		1,335		849
Interest on borrowings		0		0		0		0
Total interest expense		690		460		1,335		849
Net interest income before provision for loan losses		2,213		2,013		4,363		3,884
Provision for loan losses		69		0		442		0
Net interest income after provision for loan losses		2,144		2,013		3,921		3,884
NON-INTEREST INCOME:
Fees and other non-interest income		31		32		66		68
Miscellaneous income		124		114		237		223
Total non-interest income		155		146		303		291
NON-INTEREST EXPENSE:
Salaries and employee benefits		1,138		916		2,163		1,823
Office building and equipment expenses		90		84		184		170
Professional Services Expense		170		125		371		252
Data Processing Expense		188		200		370		384
Other operating expense		214		197		399		414
Total non-interest expense		1,800		1,522		3,487		3,043
Income before income taxes		499		637		737		1,132
PROVISION FOR INCOME TAXES		130		166		192		295
Net Income	$	369	$	471	$	545	$	837
EARNINGS PER SHARE:
Basic	$	0.49	$	0.62	$	0.72	$	1.10
Diluted	$	0.48	$	0.61	$	0.71	$	1.09
DIVIDENDS DECLARED PER SHARE	$	—	$	—	$	—	$	—

AVERAGE SHARES OUTSTANDING:
Basic		759,632		761,257		759,632		761,257
Diluted		766,615		768,395		765,926		768,628

Contact: Gates Little
(256) 543-3860