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Category: Europe

  • MIL-OSI China: Expedition extends known length of Asia’s longest cave to 437 km

    Source: China State Council Information Office 3

    A member of Guizhou provincial mountain resources institute observes the rock formation inside a branch cave of Shuanghe Cave in Suiyang County, southwest China’s Guizhou Province, Sept. 23, 2023. [Photo/Xinhua]

    A recent scientific expedition has extended the known length of the world’s third-longest cave from 409.9 kilometers to 437.1 kilometers, scientists involved in the expedition said on Thursday.

    The finding was announced after the conclusion of the 23rd joint international scientific expedition into the Shuanghe cave in southwest China’s Guizhou Province. Shuanghe is Asia’s longest known cave and the world’s longest dolomite cave.

    The latest research has established that the Shuanghe cave network has 115 connected openings, an increase from the 107 that had previously been recorded. It has also led to further discoveries of animal fossils, including two fossilized giant pandas.

    Previous scientific expeditions into the cave network have identified dozens of giant panda fossils, with the oldest dating back 100,000 years, proving that Guizhou was once a habitat for giant pandas, which are today known to live in the provinces of Sichuan, Shaanxi and Gansu.

    Jean Bottazzi, the French caver who led the most recent expedition, said that they used 3D laser scanning to improve measurement accuracy. They also found a large underground river, the study of which could lead to yet another extension of the cave’s known length.

    French caver Anne Cholin describes Shuanghe as a special cave system which holds high value for paleontology and the study of ancient climate change.

    Explorations of the deep sea, outer space and caves are scientific ways to understand the planet we live on, she said. “We look forward to constantly pushing the boundaries of human cognition.”

    Scientists from countries including China, France, Portugal and Belgium took part in the expedition, which began in early October.

    MIL OSI China News –

  • MIL-OSI United Kingdom: UK announces support to help Uganda manage mpox outbreak

    Source: United Kingdom – Executive Government & Departments

    The UK has announced up to £1 million (UGX 4.9 billion) to support Uganda’s response to the ongoing mpox outbreak in the country.

    Development Director Philip Smith and Minister of Health Hon. Jane Ruth Aceng shake hands during the meeting to announce UK’s support to Uganda’s response to the Mpox outbreak.

    The British High Commission in Kampala has announced that the UK will provide £1 million to Baylor College of Medicine and the Infectious Disease Institute to support Uganda’s response to the current Mpox outbreak. The support delivered through these expert partners will be aligned to the Government of Uganda’s overall Mpox respond plan. The funding will strengthen co-ordination of the response; surveillance, and risk communication and community engagement.

    Philip Smith, the Acting British High Commissioner to Uganda said:

    It is critical that we work with the Government of Uganda to counter this outbreak. We are pleased to announce this additional funding is being released immediately to support a timely response. The UK’s support will work in affected districts to improve the response to the outbreak on the ground. The UK will stand with the Government and people of Uganda in tackling this outbreak.

    Hon. Jane Ruth Aceng, Minister for Health said:

    We acknowledge that our collaboration with the UK dates back several years. The UK has always been a key partner with the Government of Uganda on our outbreak response. We appreciate the £1 million contribution via implementing partners Baylor Uganda and Infectious Disease Institute in supporting us respond efficiently to the Mpox outbreak.

    The support package builds on previous assistance the UK has provided Uganda. In October 2022, the UK contributed £2.2 million (UGX 9.3 billion) – and technical experts to support the Government of Uganda’s response to the Ebola outbreak. Between 2018 and 2020 the UK contributed nearly £10 million – over UGX40 billion – to support Ebola preparedness in Uganda. This has improved the Government of Uganda’s ability to respond to the current outbreak. For example, ambulances previously purchased by the UK via the WFP, and subsequently donated to the Uganda Red Cross, are now being used.

    Updates to this page

    Published 24 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Russia poses a growing threat to global stability and international principles: UK statement to the OSCE

    Source: United Kingdom – Executive Government & Departments

    Ambassador Holland condemns Russia’s growing threat to global stability, food security and maritime safety as it thickens ties with North Korea, steps up attacks in the Black Sea and seeks to circumvent sanctions.

    Location:
    Vienna
    Delivered on:
    (Transcript of the speech, exactly as it was delivered)

    Thank you, Madam Chair.  It is with deep concern that I draw colleagues’ attention to reports of the Democratic People’s Republic of Korea (DPRK) sending combat troops to Russia.  Our assessment is that it is highly likely that the transfer of these troops has begun.  Russia has already procured significant munitions and arms from DPRK, in direct violation of multiple UN resolutions.  The DPRK will surely extract a heavy price for its support. This has security implications for the OSCE region and should be of concern to us all.

    Madam Chair, at the beginning of its full-scale invasion, Russia attempted to blockade Ukrainian ports in a cynical attempt to choke Ukraine’s economy.  Under the July 2022 Black Sea Grain Initiative, Ukrainian grain was again able to reach those who needed it most across the world.  Regrettably, Russia unilaterally withdrew from the Initiative after one year and began missile strikes on Ukrainian ports and grain storage facilities.  300,000 tonnes of grain were destroyed between August and October 2023.

    Since then, Russia has repeatedly demonstrated its disregard for global food security and international principles, including freedom of navigation, the bedrock of global trade.  Between 5 and 14 October, Russian missiles struck four civilian ships in deliberate attacks on export infrastructure in Odesa, killing at least 10 innocent civilians and injuring many more.

    To obscure its illegal actions, last week Russia made false claims about the cargo these ships were carrying and threatened to continue targeting civilian ships using Ukrainian ports. It is unacceptable to target ships engaged only in the transportation of grain.

    Russia’s actions deliberately harm global food security. Hindering exports of wheat, maize and barley from one of the world’s top grain exporters hurts everyone, but especially the world’s most vulnerable.  The UK condemns Russia’s strikes. They have impacted shipments destined for the World Food Programme in Palestine and southern Africa. They also undermine the stability of the entire Black Sea region, affecting many others around this table.

    Russia also threatens maritime safety and security through a 600 vessel ‘shadow fleet’, used to circumvent international sanctions and provide funding for Russia’s illegal war in Ukraine.  Many of these vessels are unsafe, lack adequate insurance and engage in dangerous and deceptive shipping practices, including turning off radio transponders in violation of international regulations. These vessels break maritime law and pose significant risks to the environment, and maritime safety and security.

    The UK will continue to take action against this illegal and dangerous ‘shadow fleet’.  43 of its oil tankers have been barred from UK ports and from accessing British maritime services.  My Prime Minister launched a ‘Call to Action’ against the fleet in July, and we want to thank the 45 partners in this room who signed up to this.

    We cannot and will not ignore Russia’s violations of the laws and principles that underpin global trade and food security. They contravene its Decalogue obligations, including Article 10 on the fulfilment in good faith of obligations under international law.  We call on the Russian authorities to end this unjustifiable war and return to conformity with the OSCE’s foundational principles.  Thank you.

    Updates to this page

    Published 24 October 2024

    Invasion of Ukraine

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Fratton Pocket Park a success

    Source: City of Portsmouth

    This week, local Councillors and staff from South Western Railway recognised the success and use of the newly opened ‘pocket park’ in Fratton that provides a safe route for individuals on their journey to and from the train station.

    Portsmouth City Council was granted funding from the South Western Railway Customer and Communities Improvement Fund to make improvements to the space between Fawcett Road and Goldsmith Avenue.

    The park boasts new benches with under seat lighting, bedding plants, and festoon lighting in the trees, whilst offering a safe route through to the train station. Pavement artwork has also been created in the space by local artist, Donna Poingdestre, following a collaborative effort by Portsmouth Creates, MOTIV8, and Articulate-Sage.

    The opening ceremony dedicated the ‘pocket park’ to Charles Burns, who played an active role in the Portsmouth Community for many years. Charles supported a number of initiatives to bring together community and culture to make Portsmouth a better place for all. A plaque has been placed in memory of Charles Burns, by the seating area.

    Councillor Steve Pitt, Leader of Portsmouth City Council, said: “We are really pleased to have marked the opening of the Fratton ‘pocket park’ this week. It is a positive step forward in our efforts to create a greener and safer city to work and live in. 

    “It was great to see so many people attend the event which is a true reflection of the importance of these initiatives in our city, and we’re continuing to see an increasing number of people taking advantage of this space.”

    Peter Williams, South Western Railway’s Customer and Commercial Director, said: “It’s great to see that Fratton Pocket Park, which we were delighted to support through SWR’s Customer and Communities Improvement Fund, is now completed. We’re sure that the local community will greatly enjoy the benefits of this bright, new public space near Fratton Station”

    You can find out more about the South Western Rail Customer and Communities Improvement Fund here: Customer and Communities Improvement Fund 2022 | South Western Railway

    Ribbon cutting ceremony at Fratton Pocket Park

    MIL OSI United Kingdom –

  • MIL-OSI Russia: Architect Kristina Dmitrova told students how to create a project that will be approved by the client

    Translation. Region: Russian Federation –

    Source: Saint Petersburg State University of Architecture and Civil Engineering – Saint Petersburg State University of Architecture and Civil Engineering – Kristina Dmitrova

    SPbGASU has announced a student competition for the concept of the main building’s vestibule. The best project will be proposed for implementation, and its author will go down in the history of their native university. Graduates of our university who have succeeded in their profession and built a career at the international level have been invited as experts. They not only evaluate the works, but also give lectures where they share their experience. Among them is the famous and successful architect Kristina Dmitrova.

    Kristina Dmitrova graduated from the architecture department of SPbGASU in 2015 with honors. At the age of twenty-one, she won an architectural competition and went to Rome for an internship at the Exclusiva Design studio, which developed premium-class interior projects. At twenty-four, Kristina opened her own business specializing in the design of public interiors and private homes. One of her first commercial projects was the Alpenhaus restaurant on Krestovsky Island in St. Petersburg for 1,200 people. Today, Kristina Dmitrova’s company has accumulated extensive experience in cooperation with various business areas, the public sector, and has designed more than 50 thousand square meters of various objects, including abroad. Based on her own experience, she identified nine golden rules of public interior design and recommended that students carefully study them in order to design a successful project that will be approved by the customer. The lecturer confirmed each rule with real objects.

    So, rule #1 “Clarity, clarity, clarity” requires being specific and consistent, being able to correctly and clearly convey the details of your project to the customer and make decisions promptly. Otherwise, decisions will be made by third-party contractors involved in the project, and the reputation of the architect-designer will suffer. “Your task is to competently implement the project, and not dissolve in creative fantasies,” advised Kristina Dmitrova.

    Rule #2 “5 percent and 95 percent” clearly distinguishes between time and effort for design and project implementation. As practice shows, only 5 percent of time and labor resources should be devoted to design, the rest should be spent on implementation. For example, out of the entire team, only two specialists are engaged in design during the month, and the rest – in implementation for nine months. “Meanwhile, the success of the project implementation largely depends on these 5 percent. Therefore, the concept must be seriously dealt with, but keep in mind that without the competencies of other specialists participating in the implementation of the project, without experienced managers, success cannot be achieved,” the architect emphasized.

    Rule #3 requires the use of wear-resistant materials. Public places usually have a high flow of visitors, so the materials must be durable so that the facility can justify itself functionally. The larger the public project, the greater the flow of people and the more wear-resistant the materials must be. “Otherwise, they will soon become unusable, the establishment will incur repair costs and will be forced to close, which means it will lose profits. Therefore, wear-resistant and easily restored materials are a priority,” the expert advised.

    Rule No. 4 provides principles of interaction with contractors. It is necessary to take into account that, in addition to the architect, other specialists are also involved in the project, for example, engineers, who are obliged to comply with standards and requirements. “And here you need to be a mediator-negotiator. They do according to the requirements, and we need to create a beautiful interior. Therefore, our task is to get permission from them and not spoil the design. To do this, it is necessary to study engineering systems in order to understand the engineer’s train of thought in advance,” Kristina emphasized.

    Rule #5 requires paying attention to vandalism prevention. Don’t have illusions that people will use everything carefully, everything should be securely fastened.

    Rule #6 says: the less maintenance the interior requires, the better. For example, if you want to add greenery, then you should give preference to artificial, because living greenery requires proper care, proper lighting, and hiring additional staff. “Technology in the production of artificial greenery has advanced far, and now it is difficult to distinguish it from living plants. Even in Singapore, where, it would seem, there are all the conditions for growing living plants, this is the rule they adhere to in interior design,” said Christina.

    Rule #7 requires working closely with the fire department. Their requirements do not allow for flexibility, so it is necessary to discuss any restrictions with them in advance.

    Rule #8 is the proper use of the customer company’s branding elements – corporate colors, symbols. For such interior visualization, you need to request their brand book.

    Rule #9 concerns the creation of a unique design. Often, the customer wants not only to receive a unique interior at the time of creation, but also to prevent its further duplication. This is normal practice, and such wishes should be listened to.

    The specialist also advised participating in various competitions to gain experience. The students listened to the practicing architect with interest and actively asked questions.

    “By participating in the competition as an expert, I thank my home university for the time I spent here, the teachers who gave me deep professional knowledge, and I consider it my duty to contribute to its further development. In addition, I want to help students with practical advice that I would be glad to hear from practicing specialists during my years of study. I am sure that my experience will help them in the competition and in their future profession,” noted Kristina.

    The operator of the competition was the Educational Center for Project-Based Learning of SPbGASU. Its director Alexandra Yugay emphasized that the contestants face a difficult task.

    “Based on this, we invited not only heads of departments and teachers as experts, but also graduates of our university who have built a career in interior design bureaus, so that they could give applied lectures on public interior design, talk about approaches to design, based on their own practice. This will allow the competition participants to adjust their projects taking into account advice from professionals, and delve deeper into this topic. The semi-final of the competition will take place on November 8, ten finalists will be announced. Taking into account the opinions of experts, they will finalize their projects to participate in the final, which will take place at the end of November,” said Alexandra Yugai.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-OSI Security: Support to German-led action to halt at least EUR 300 million in online fraud

    Source: Eurojust

    The General Public Prosecution Office of Dresden and the Police Directorate of Chemnitz started investigations in June 2020, following complaints from online investors. They had been lured to professionally designed websites, promising high returns on low investments. Victims only received a maximum of 3% of their initial investment, if any money was returned at all. Through the websites, the perpetrators managed to gain access to personal data and bank account details, creating fake customer accounts to lend credibility to the scheme.

    To date, around 120 German victims are known, who have lost approximately EUR 12 million. However, further assessments by German investigators indicate that there are many more victims worldwide, with the fraud totaling at least EUR 300 million. It could even be as high as EUR 500 million. As result of these investigations, a number of suspects have been identified, including the one alleged main perpetrator, who has now been arrested. Investigations into the fraud are ongoing.

    Due to links with Serbia, a JIT was set up with the help of the Agency in February this year, to ensure close cooperation between German and Serbian judicial and law enforcement investigators. Eurojust also organised four coordination meetings with participation of German, Cypriot and Serbian representatives to prepare for the action day and assisted with the execution of European Investigation Orders and requests for Mutual Legal Assistance to Serbia.

    During the action day, 22 places were searched in Cyprus and Serbia. Furthermore, computer equipment, hard drives, mobile phones and digital data have been seized. Germany will ask the Cypriot authorities to surrender the arrested suspect.

    The action day was carried out at the request of and by the following authorities on the ground:

    • Germany: General Public Prosecutor’s Office (Generalstaatsanwaltschaft) Dresden; Police Directorate (Kriminalpolizeiinspektion) Chemnitz
    • Cyprus: Cyprus Police
    • Serbia: Special Prosecutоr’s Office for High-Tech Crime, Service for Combating High-Tech Crime (MOI)

    MIL Security OSI –

  • MIL-OSI: FirstCash Reports Record Third Quarter Operating Results; Strength in U.S. Pawn Segment Drives Record Revenue and Earnings; Declares Quarterly Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    FORT WORTH, Texas, Oct. 24, 2024 (GLOBE NEWSWIRE) — FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS), the leading international operator of more than 3,000 retail pawn stores and a leading provider of retail point-of-sale (“POS”) payment solutions through American First Finance (“AFF”), today announced operating results for the three and nine month periods ended September 30, 2024. The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.38 per share, which will be paid in November 2024.

    Mr. Rick Wessel, chief executive officer, stated, “FirstCash achieved record revenue and earnings results for both the third quarter and year-to-date periods. Impressive third quarter achievements also included a fifth consecutive quarter of double-digit growth in same-store pawn receivables for the U.S. pawn segment. The LatAm pawn segment also saw continued growth in local currency pawn revenues and receivables, while AFF recorded a 14% increase in third quarter gross origination volumes driven primarily by 25% growth in new merchant locations.

    “Expansion of retail pawn locations continues to be robust as well, with the opening of 16 new pawn stores in the third quarter and the combined opening and acquisition of 83 total stores during the first nine months of this year. Growth in the number of stores and earning assets, coupled with consistent shareholder returns through dividends and share repurchases, continue to be funded primarily through operating cash flows.”

    This release contains adjusted financial measures, which exclude certain non-operating and/or non-cash income and expenses, that are non-GAAP financial measures. Please refer to the descriptions and reconciliations to GAAP of these and other non-GAAP financial measures at the end of this release.

        Three Months Ended September 30,
        As Reported (GAAP)   Adjusted (Non-GAAP)
    In thousands, except per share amounts   2024   2023   2024   2023
    Revenue   $ 837,321   $ 786,301   $ 837,321   $ 786,301
    Net income   $ 64,827   $ 57,144   $ 75,179   $ 70,775
    Diluted earnings per share   $ 1.44   $ 1.26   $ 1.67   $ 1.56
    EBITDA (non-GAAP measure)   $ 138,134   $ 129,350   $ 139,278   $ 132,985
    Weighted-average diluted shares     44,970     45,374     44,970     45,374
        Nine Months Ended September 30,
        As Reported (GAAP)   Adjusted (Non-GAAP)
    In thousands, except per share amounts   2024   2023   2024   2023
    Revenue   $ 2,504,703   $ 2,299,662   $ 2,504,703   $ 2,299,662
    Net income   $ 175,268   $ 149,712   $ 207,266   $ 184,028
    Diluted earnings per share   $ 3.88   $ 3.27   $ 4.58   $ 4.02
    EBITDA (non-GAAP measure)   $ 388,372   $ 348,291   $ 392,752   $ 350,028
    Weighted-average diluted shares     45,214     45,747     45,214     45,747
                             

    Consolidated Operating Highlights

    • Gross revenues totaled $837 million in the third quarter, an increase of 6% on a U.S. dollar basis and 9% on a constant currency basis compared to the prior-year quarter. Year-to-date revenues totaled $2.5 billion, an increase of 9%, in both dollars and constant currency, compared to the prior-year period.
    • Diluted earnings per share for the third quarter increased 14% over the prior-year quarter on a GAAP basis while adjusted diluted earnings per share increased 7% compared to the prior-year quarter. Year-to-date diluted earnings per share increased 19% over the prior-year period on a GAAP basis while adjusted diluted earnings per share increased 14% compared to the prior-year period.
    • Net income for the third quarter increased 13% over the prior-year quarter on a GAAP basis while adjusted net income increased 6% compared to the prior-year quarter. Year-to-date, net income totaled $175 million on a GAAP basis while adjusted net income was $207 million. 
    • For the trailing twelve month period ended September 30, 2024:
      • Revenues totaled a record $3.4 billion
      • Net income totaled $245 million on a GAAP basis while adjusted net income was $300 million
      • Adjusted EBITDA was $554 million
      • Operating cash flows were $441 million and adjusted free cash flows were $217 million

    Store Base and Platform Growth

    • Pawn Stores – 16 new pawn locations were added in the third quarter through acquisitions and new store openings. Year-to-date through September 30, 2024, a total of 83 pawn locations have been added:
      • One U.S. store was acquired in Georgia during the third quarter. Year-to-date through September 30, 2024, a total of 29 new locations have opened or been acquired in the U.S.
      • There were 15 new store openings in Latin America in the third quarter which included 11 locations in Mexico and four locations in Guatemala. Year-to-date through September 30, 2024, a total of 54 new locations have opened in Latin America.
      • As of September 30, 2024, the Company had 3,025 locations, comprised of 1,201 U.S. locations and 1,824 locations in Latin America.
    • Retail POS Payment Solutions (AFF) Merchant Partnerships – At September 30, 2024, there were approximately 13,500 active retail and e-commerce merchant partner locations, representing a 25% increase in the number of active merchant locations compared to a year ago.

    U.S. Pawn Segment Operating Results

    • Segment pre-tax operating income in the third quarter of 2024 was a record $98 million, an increase of $14 million, or 16%, compared to the prior-year quarter. The resulting segment pre-tax operating margin was 25% for the third quarter of 2024 which is consistent with the margin for the prior-year quarter.
    • Year-to-date segment pre-tax operating income increased by $48 million, or 20%, compared to the prior-year period. The pre-tax operating margin increased to 25% for the year-to-date period, as compared to the 24% margin for the prior-year period.
    • Pawn receivables continued to grow to record levels, increasing 12% in total at September 30, 2024 compared to the prior year. The increase in total pawn receivables was driven by a 4% increase in the weighted-average U.S. store count coupled with an impressive 10% same-store increase. The same-store increase was driven by a 7% increase in average loan size and a 3% increase in the number of loans outstanding.
    • Pawn loan fees increased 13% for the third quarter and 18% year-to-date, while on a same-store basis, pawn loan fee revenue increased 8% for the quarter and 11% year-to-date compared to the respective prior-year periods. The increased pawn loan fee revenue reflected both store growth and continued growth in demand for pawn loans.
    • Retail merchandise sales increased 15% in the third quarter of 2024 compared to the prior-year quarter, while same-store retail sales increased 7% compared to the prior-year quarter.
    • Retail sales margins were 43% for the third quarter, improving sequentially over the second quarter and in-line with the prior-year margins. Year-to-date margins were 42% compared to 43% in the prior-year period.
    • Annualized inventory turnover was 2.8 times for the trailing twelve months ended September 30, 2024, which equaled the prior-year annualized inventory turnover. Inventories aged greater than one year at September 30, 2024 remained low at 2% of total inventories.
    • Operating expenses for the third quarter increased 12% in total due to the 4% weighted-average store count growth over the past year and increased same-store expenses of 6% compared to the prior-year period.

    Latin America Pawn Segment Operating Results

    Note: Certain growth rates below are calculated on a constant currency basis, a non-GAAP financial measure defined at the end of this release. The average Mexican peso to U.S. dollar exchange rate for the third quarter of 2024 was 18.9 pesos / dollar, an unfavorable change of 11% versus the comparable prior-year period, and for the nine month period ended September 30, 2024 was 17.7 pesos / dollar, a favorable change of 1% versus the prior-year period.

    • Third quarter segment pre-tax operating income totaled $38 million, a 6% decline on a U.S. dollar-basis compared to the prior year due primarily to an 11% decline in the Mexican peso exchange rate. On a constant currency basis, segment income increased 2% for the quarter. The resulting pre-tax operating margin was 19% compared to 20% in the prior-year quarter.
    • Year-to-date segment pre-tax operating income totaled $107 million, a 4% decline on a U.S. dollar-basis compared to the prior-year period due primarily to increased labor costs and store expansion expenses as described further below. The year-to-date pre-tax operating margin was 18% compared to 19% in the prior-year period.
    • While total and same-store pawn loan fees in the third quarter decreased 4% on a U.S. dollar-basis, they increased 6% on a constant currency basis compared to the prior-year quarter. Year-to-date pawn loan fees increased 7%, or 6% on a constant currency basis, compared to the prior-year period. Same-store pawn loan fees were up 6%, both in total and on a constant currency basis, compared to the prior year-to-date period.
    • While total and same-store receivables at September 30, 2024 were down 4% on a U.S. dollar basis, they increased 6% on a constant currency basis compared to the prior year.
    • Both total and same-store retail merchandise sales in the third quarter of 2024 decreased 3% on a U.S. dollar basis, but increased 7% on a constant currency basis compared to the prior-year quarter. Year-to-date retail merchandise sales increased 4% in total and on a constant currency basis while same-store retail merchandise sales increased 4%, or 3% on a constant currency basis.
    • Retail margins were 35% for the third quarter of 2024 compared to 36% in the prior-year quarter. Annualized inventory turnover was 4.2 times for the trailing twelve months ended September 30, 2024 compared to 4.3 times in the prior-year period. Inventories aged greater than one year at September 30, 2024 remained extremely low at 1%.
    • Operating expenses decreased 1% in total and 2% on a same-store basis compared to the prior-year quarter. On a constant currency basis, they increased 8% in total and on a same-store basis. The increase in constant currency expenses from all stores reflected increased store counts, accelerated store opening activity and higher labor costs (due primarily to further increases in the federal minimum wage and other mandated benefit programs), along with other inflationary impacts.

    American First Finance (AFF) – Retail POS Payment Solutions Segment Operating Results

    • Third quarter segment pre-tax operating income totaled $30 million compared to $39 million in the prior-year quarter, as a significant $35 million dollar increase in gross transaction origination volume over the same quarter last year drove an increase in up-front lifetime lease and loan loss provisioning of approximately $10 million.
    • Year-to-date segment pre-tax operating income totaled $89 million, a 1% increase over the prior-year period which was also generally consistent with year-to-date gross origination activity.
    • Segment revenues for the quarter, comprised of lease-to-own (“LTO”) fees and interest and fees on finance receivables, were flat compared to the prior-year quarter while increasing 4% year-to-date.
    • Gross transaction volume of lease and loan originations during the third quarter increased $35 million, or 14%, compared to last year, driven primarily by the 25% increase in active merchant door counts and continued growth in non-furniture verticals. Excluding furniture, third quarter origination volume increased approximately 35%. For the year-to-date period, overall gross transaction volume increased 5% over the same prior-year period and was up 23% excluding furniture.
    • Combined gross leased merchandise and finance receivables outstanding at September 30, 2024 increased 1% compared to the September 30, 2023 balances.
    • The combined lease and loan loss provision as a percentage of the total gross transaction volume originated was 28% for the third quarter of 2024, compared to the 29% provisioning rate in the third quarter of 2023. The resulting allowance on combined leased merchandise and finance receivables at September 30, 2024 was 44% of gross leased merchandise and receivables, which was consistent with the prior year.
    • The average monthly net charge-off (“NCO”) rate for combined leased merchandise and finance receivable products was 5.8% for the third quarter of 2024 and 5.2% for the year-to-date period. While slightly above the prior year, charge-offs remain within the range of forecast expectations.
    • Operating expenses were flat compared to the prior-year quarter and the year-to-date period, which was reflective of continued realization of operating synergies.

    Cash Flow and Liquidity

    • Each of the Company’s business segments generated significant operating cash flows during the twelve month period ended September 30, 2024. Consolidated operating cash flows for the twelve month period ended September 30, 2024 totaled $441 million and adjusted free cash flows (a non-GAAP measure) were $217 million.
    • The operating cash flows helped fund significant growth in earning assets and continued investments in the store platform over the past twelve months with a nominal increase in net debt:
      • A total of 36 pawn stores were acquired for a combined purchase price of $82 million.
      • 64 new, or de novo, pawn stores were added with a combined investment of $20 million in fixed assets and working capital.
      • Investments in real estate totaled $78 million as the Company purchased the underlying real estate at 63 of its existing pawn stores, bringing the number of owned properties to over 380 locations.
    • In August 2024, the Company amended its U.S. revolving commercial bank credit facility to increase the total lender commitment from $640 million to $700 million with two new banks added to the commercial bank lending group. The term of the facility was extended through August 8, 2029. In addition, the permitted consolidated leverage ratio was increased to 3.25 times adjusted EBITDA for the full term of the agreement, while the other financial covenants remain substantially unchanged.
    • Over $1.5 billion of the Company’s long-term financing remains fixed rate debt with favorable interest rates ranging from 4.625% to 6.875% and maturity dates that do not begin until 2028 and continue into 2032.
    • Based on trailing twelve month results, the net debt to adjusted EBITDA ratio was 2.96x at September 30, 2024.

    Shareholder Returns

    • The Board of Directors declared a $0.38 per share fourth quarter cash dividend, which will be paid on November 27, 2024 to stockholders of record as of November 15, 2024. This represents an annualized dividend of $1.52 per share. Any future dividends are subject to approval by the Company’s Board of Directors.
    • Year-to-date, the Company has repurchased $85 million of common stock. The Company has $115 million available under the $200 million share repurchase program authorized in July 2023. Future share repurchases are subject to expected liquidity, acquisitions and other investment opportunities, debt covenant restrictions, market conditions and other relevant factors.
    • The Company generated a 12% return on equity and a 6% return on assets for the twelve months ended September 30, 2024. Using adjusted net income for the twelve months ended September 30, 2024, the adjusted return on equity was 15% while the adjusted return on assets was 7%.

    2024 Outlook

    The outlook for the remainder of 2024 continues to be highly positive, with expected year-over-year growth in consolidated revenue and earnings driven by the continued growth in earning asset balances coupled with store additions. Anticipated conditions and trends for the fourth quarter include the following:

    Pawn Operations:

    • Pawn operations are expected to remain the primary earnings driver in 2024 as the Company expects segment income from the combined U.S. and Latin America pawn segments to be over 80% of total segment level pre-tax income for the full year.
    • The company is targeting the addition of approximately 90 total pawn locations for 2024 through a combination of new store openings and acquisitions.

    U.S. Pawn

    • Pawn receivables were up 12% at September 30, 2024 compared to a year ago, with October balances to date up similarly. Resulting pawn fees are expected to increase in the range of 10% to 12%.
    • Retail sales growth is expected to remain in-line with the inventory growth of 10% at the most recent quarter end while retail margins are projected to remain consistent with the year-to-date results.

    Latin America Pawn

    • Latin America results in the fourth quarter are expected to be negatively impacted by the lower exchange rate for the Mexican peso which has recently been in a range of 19 to 20 pesos per U.S. dollar.
    • Pawn loan growth to-date in October is up approximately 8% on a constant currency basis, although down 2% on a U.S. dollar basis as compared to the prior year assuming the current exchange rate. A similar result is projected for constant currency fourth quarter pawn fees.
    • Retail sales in Latin America are also expected to increase in-line with inventory growth of 9% on a constant currency basis and are expected to be roughly flat to the prior year on a U.S. dollar basis, assuming the current exchange rate, with consistent retail margins.

    Retail POS Payment Solutions (AFF) Operations:

    • While weakness in the macro furniture retail environment continues to negatively impact performance from many of its merchant retail partners in the furniture retail vertical, year-over-year growth in gross transaction volumes is still projected for the full year and fourth quarter of 2024, driven by increasing active merchant doors and further expansion of non-furniture verticals. Resulting full year gross revenues for 2024 are expected to remain at or above the prior-year level. AFF now expects furniture to account for less than 40% of 2024 originations compared to almost 50% in 2023.
    • The origination and revenue outlook takes into consideration the previously announced bankruptcy filing of Conn’s Home Plus which now assumes minimal originations from November 2024 forward from this merchant relationship.
    • Anticipated provision rates (combined provision for lease and loan losses as a percentage of the total gross transaction volume originated) are expected to range between 25% and 28% in the fourth quarter of the year.

    Interest Expense, Tax Rates and Currency:

    • Interest expense for the fourth quarter is expected to be consistent with the prior year.
    • The full year 2024 effective income tax rate under current tax codes in the U.S. and Latin America is expected to range from 24.5% to 25.5%.
    • Each full point change in the exchange rate of the Mexican peso represents an annual earnings impact of approximately $0.10 per share.

    Additional Commentary and Analysis   

    Mr. Wessel provided additional insights on the Company’s third quarter results and outlook for the remainder of 2024, “Our results continue to demonstrate strong fundamental product demand trends which we expect to drive future revenue and earnings growth.

    “The U.S. pawn segment again saw continued record levels of demand for pawn loans and record per store loan balances. The 10% growth in same-store pawn receivables is especially strong given that the comparative prior-year comp was 11%. On a stacked, two-year basis, same-store pawn loans are up 21% compared to the third quarter of 2022, illustrating tremendous, continued momentum in the business. Demand trends in October remain strong and we believe lending volumes should continue to also benefit from increased gold prices while our inventories are well positioned for the holiday sales season.

    “In Latin America, currency adjusted pawn receivables and pawn fees continued to show impressive growth in the third quarter, with further acceleration to date in October, while third quarter retail sales grew even faster. While the volatility of the Mexican peso slightly impacted third quarter earnings results by approximately $0.04 per share, there is minimal impact on cash flows as we continue to reinvest a large portion of our cash flows in Latin America. We believe in the long term opportunity for Latin America, driven by near-shore manufacturing expansion and the use of pawn loans being an integral part of the economy for our customer base.

    “Unit growth in both pawn segments remains exceptional. We have now added 83 stores this year and a total of 240 stores since the beginning of 2023. Looking ahead, we continue to see and evaluate expansion opportunities across markets in both the U.S. and Latin America.

    “AFF’s gross transaction volumes in the third quarter improved both sequentially and year-over-year (even when excluding Conn’s Home Plus third quarter closeout volume) with significant contributions from both new doors and expanding non-furniture verticals driven largely by robust productivity from our field sales channel. Excluding furniture, third quarter origination volume increased approximately 35%. This growth has led to a further decrease in large merchant concentration risk, with the largest merchant partner now representing approximately 12% of current total gross transaction volume. Additionally, combined lease and loan losses remain well within our target metrics while the combined reserve remains consistent at over 40% of the total portfolio.

    “All of FirstCash’s business segments continue to generate strong cash flows while its balance sheet remains highly liquid. Over 60% of pawn loans are collateralized with jewelry, which is primarily gold and very liquid, while almost 50% of retail inventories are comprised of jewelry that typically has the highest margins. Our balance sheet maintains favorable unsecured financing featuring long-dated maturities at attractive rates. Accordingly, we believe that we are well positioned to drive continued shareholder value through organic store growth, strategic acquisitions, dividends and share repurchases,” concluded Mr. Wessel.

    About FirstCash

    FirstCash is the leading international operator of pawn stores focused on serving cash and credit-constrained consumers. FirstCash’s more than 3,000 pawn stores in the U.S. and Latin America buy and sell a wide variety of jewelry, electronics, tools, appliances, sporting goods, musical instruments and other merchandise, and make small non-recourse pawn loans secured by pledged personal property. FirstCash’s pawn segments in the U.S. and Latin America currently account for approximately 80% of segment earnings, with the remainder provided by its wholly owned subsidiary, AFF, which provides lease-to-own and retail finance payment solutions for consumer goods and services.

    FirstCash is a component company in both the Standard & Poor’s MidCap 400 Index® and the Russell 2000 Index®. FirstCash’s common stock (ticker symbol “FCFS”) is traded on the Nasdaq, the creator of the world’s first electronic stock market. For additional information regarding FirstCash and the services it provides, visit FirstCash’s websites located at http://www.firstcash.com and http://www.americanfirstfinance.com.

    Forward-Looking Information     

    This release contains forward-looking statements about the business, financial condition, outlook and prospects of FirstCash Holdings, Inc. and its wholly owned subsidiaries (together, the “Company”), including the Company’s outlook for 2024. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “outlook,” “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations, outlook and future plans. Forward-looking statements can also be identified by the fact these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.

    While the Company believes the expectations reflected in forward-looking statements are reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from those anticipated by the forward-looking statements made in this release. Such factors may include, without limitation, risks related to the extensive regulatory environment in which the Company operates; risks associated with the legal and regulatory proceedings that the Company is a party to or may become a party to in the future, including the Consumer Financial Protection Bureau (the “CFPB”) lawsuit filed against the Company; risks related to the Company’s acquisitions, including the failure of the Company’s acquisitions to deliver the estimated value and benefits expected by the Company and the ability of the Company to continue to identify and consummate acquisitions on favorable terms, if at all; potential changes in consumer behavior and shopping patterns which could impact demand for the Company’s pawn loan, retail, lease-to-own (“LTO”) and retail finance products; labor shortages and increased labor costs; a deterioration in the economic conditions in the United States and Latin America, including as a result of inflation, elevated interest rates and higher gas prices, which potentially could have an impact on discretionary consumer spending and demand for the Company’s products; currency fluctuations, primarily involving the Mexican peso; competition the Company faces from other retailers and providers of retail payment solutions; the ability of the Company to successfully execute on its business strategies; contraction in sales activity at merchant partners of the Company’s retail POS payment solutions business; impact of store closures, financial difficulties or even bankruptcies at the merchant partners of the Company’s retail POS payment solutions business; and other risks discussed and described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), including the risks described in Part 1, Item 1A, “Risk Factors” thereof, and other reports filed with the SEC. Many of these risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. The forward-looking statements contained in this release speak only as of the date of this release, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

    FIRSTCASH HOLDINGS, INC.
    CONSOLIDATED STATEMENTS OF INCOME
    (unaudited, in thousands)
     
      Three Months Ended   Nine Months Ended
      September 30,   September 30,
      2024   2023   2024   2023
    Revenue:              
    Retail merchandise sales $ 363,141     $ 335,081     $ 1,093,425     $ 983,860  
    Pawn loan fees   186,561       174,560       547,142       480,298  
    Leased merchandise income   188,560       189,382       588,801       562,625  
    Interest and fees on finance receivables   61,198       61,413       175,384       174,247  
    Wholesale scrap jewelry sales   37,861       25,865       99,951       98,632  
    Total revenue   837,321       786,301       2,504,703       2,299,662  
                   
    Cost of revenue:              
    Cost of retail merchandise sold   218,178       199,719       659,854       590,991  
    Depreciation of leased merchandise   104,928       103,698       335,369       307,824  
    Provision for lease losses   39,171       39,736       129,834       141,674  
    Provision for loan losses   40,557       33,096       102,091       90,571  
    Cost of wholesale scrap jewelry sold   29,880       21,405       81,711       79,012  
    Total cost of revenue   432,714       397,654       1,308,859       1,210,072  
                   
    Net revenue   404,607       388,647       1,195,844       1,089,590  
                   
    Expenses and other income:              
    Operating expenses   224,926       211,524       674,431       615,366  
    Administrative expenses   40,930       45,056       129,563       124,428  
    Depreciation and amortization   25,933       27,365       78,507       81,526  
    Interest expense   27,424       24,689       78,029       66,657  
    Interest income   (403 )     (328 )     (1,407 )     (1,253 )
    Loss (gain) on foreign exchange   882       (286 )     2,133       (1,905 )
    Merger and acquisition expenses   225       3,387       2,186       3,670  
    Other expenses (income), net   (490 )     (384 )     (841 )     (260 )
    Total expenses and other income   319,427       311,023       962,601       888,229  
                   
    Income before income taxes   85,180       77,624       233,243       201,361  
                   
    Provision for income taxes   20,353       20,480       57,975       51,649  
                   
    Net income $ 64,827     $ 57,144     $ 175,268     $ 149,712  
    FIRSTCASH HOLDINGS, INC.
    CONSOLIDATED BALANCE SHEETS
    (unaudited, in thousands)
     
      September 30,   December 31,
      2024   2023   2023
    ASSETS          
    Cash and cash equivalents $ 106,320     $ 86,547     $ 127,018  
    Accounts receivable, net   74,378       72,336       71,922  
    Pawn loans   517,877       483,785       471,846  
    Finance receivables, net   123,751       113,307       113,901  
    Inventories   334,394       314,382       312,089  
    Leased merchandise, net   137,769       143,169       171,191  
    Prepaid expenses and other current assets   34,861       21,114       38,634  
    Total current assets   1,329,350       1,234,640       1,306,601  
               
    Property and equipment, net   689,075       604,673       632,724  
    Operating lease right of use asset   329,228       312,097       328,458  
    Goodwill   1,788,795       1,713,354       1,727,652  
    Intangible assets, net   241,389       291,690       277,724  
    Other assets   10,339       10,057       10,242  
    Deferred tax assets, net   4,671       8,052       6,514  
    Total assets $ 4,392,847     $ 4,174,563     $ 4,289,915  
               
    LIABILITIES AND STOCKHOLDERS’ EQUITY          
    Accounts payable and accrued liabilities $ 133,792     $ 146,873     $ 163,050  
    Customer deposits and prepayments   78,083       71,752       70,580  
    Lease liability, current   96,598       98,745       101,962  
    Total current liabilities   308,473       317,370       335,592  
               
    Revolving unsecured credit facilities   200,000       560,229       568,000  
    Senior unsecured notes   1,530,604       1,037,151       1,037,647  
    Deferred tax liabilities, net   127,425       139,713       136,773  
    Lease liability, non-current   227,151       202,516       215,485  
    Total liabilities   2,393,653       2,256,979       2,293,497  
               
    Stockholders’ equity:          
    Common stock   575       573       573  
    Additional paid-in capital   1,764,351       1,737,497       1,741,046  
    Retained earnings   1,344,542       1,164,228       1,218,029  
    Accumulated other comprehensive loss   (114,807 )     (64,521 )     (43,037 )
    Common stock held in treasury, at cost   (995,467 )     (920,193 )     (920,193 )
    Total stockholders’ equity   1,999,194       1,917,584       1,996,418  
    Total liabilities and stockholders’ equity $ 4,392,847     $ 4,174,563     $ 4,289,915  
    FIRSTCASH HOLDINGS, INC.
    U.S. PAWN SEGMENT RESULTS
    (UNAUDITED)
     
    U.S. Pawn Operating Results and Margins (dollars in thousands)
     
      Three Months Ended        
      September 30,    
      2024   2023   Increase
    Revenue:                  
    Retail merchandise sales $ 235,037     $ 203,769       15 %  
    Pawn loan fees   128,393       114,022       13 %  
    Wholesale scrap jewelry sales   26,685       17,140       56 %  
    Total revenue   390,115       334,931       16 %  
                       
    Cost of revenue:                  
    Cost of retail merchandise sold   134,966       115,670       17 %  
    Cost of wholesale scrap jewelry sold   21,393       14,297       50 %  
    Total cost of revenue   156,359       129,967       20 %  
                       
    Net revenue   233,756       204,964       14 %  
                       
    Segment expenses:                  
    Operating expenses   128,104       113,976       12 %  
    Depreciation and amortization   7,365       6,586       12 %  
    Total segment expenses   135,469       120,562       12 %  
                       
    Segment pre-tax operating income $ 98,287     $ 84,402       16 %  
                       
    Operating metrics:                  
    Retail merchandise sales margin 43 %   43 %        
    Net revenue margin 60 %   61 %        
    Segment pre-tax operating margin 25 %   25 %        
    FIRSTCASH HOLDINGS, INC.
    U.S. PAWN SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
      Nine Months Ended        
      September 30,    
      2024   2023   Increase
    Revenue:                  
    Retail merchandise sales $ 702,120     $ 610,493       15 %  
    Pawn loan fees   371,699       315,679       18 %  
    Wholesale scrap jewelry sales   70,722       61,108       16 %  
    Total revenue   1,144,541       987,280       16 %  
                       
    Cost of revenue:                  
    Cost of retail merchandise sold   407,329       349,138       17 %  
    Cost of wholesale scrap jewelry sold   57,928       49,604       17 %  
    Total cost of revenue   465,257       398,742       17 %  
                       
    Net revenue   679,284       588,538       15 %  
                       
    Segment expenses:                  
    Operating expenses   372,191       331,916       12 %  
    Depreciation and amortization   21,609       18,786       15 %  
    Total segment expenses   393,800       350,702       12 %  
                       
    Segment pre-tax operating income $ 285,484     $ 237,836       20 %  
                       
    Operating metrics:                  
    Retail merchandise sales margin 42 %   43 %        
    Net revenue margin 59 %   60 %        
    Segment pre-tax operating margin 25 %   24 %        
    FIRSTCASH HOLDINGS, INC.
    U.S. PAWN SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
    U.S. Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)
     
      As of September 30,    
      2024   2023   Increase
    Earning assets:                  
    Pawn loans $ 380,962     $ 341,123       12 %  
    Inventories   238,668       217,406       10 %  
      $ 619,630     $ 558,529       11 %  
                       
    Average outstanding pawn loan amount (in ones) $ 264     $ 245       8 %  
                       
    Composition of pawn collateral:                  
    General merchandise 30 %   31 %        
    Jewelry 70 %   69 %        
      100 %   100 %        
                       
    Composition of inventories:                  
    General merchandise 43 %   45 %        
    Jewelry 57 %   55 %        
      100 %   100 %        
                       
    Percentage of inventory aged greater than one year 2 %   1 %        
                       
    Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories) 2.8 times   2.8 times        
    FIRSTCASH HOLDINGS, INC.
    LATIN AMERICA PAWN SEGMENT RESULTS
    (UNAUDITED)
     
    Constant currency results are non-GAAP financial measures, which exclude the effects of foreign currency translation and are calculated by translating current-year results at prior-year average exchange rates. See the “Constant Currency Results” section below for additional discussion of constant currency operating results.
     
    Latin America Pawn Operating Results and Margins (dollars in thousands)
     
                          Constant Currency Basis
                          Three Months        
                    Ended        
        Three Months Ended           September 30,   Increase /
        September 30,   Increase /   2024   (Decrease)
        2024     2023   (Decrease)   (Non-GAAP)   (Non-GAAP)
    Revenue:                              
    Retail merchandise sales   $ 129,081       $ 132,784       (3 )%     $ 142,147       7 %  
    Pawn loan fees     58,168         60,538       (4 )%       64,130       6 %  
    Wholesale scrap jewelry sales     11,176         8,725       28 %       11,176       28 %  
    Total revenue     198,425         202,047       (2 )%       217,453       8 %  
                                   
    Cost of revenue:                              
    Cost of retail merchandise sold     83,729         84,816       (1 )%       92,131       9 %  
    Cost of wholesale scrap jewelry sold     8,487         7,108       19 %       9,378       32 %  
    Total cost of revenue     92,216         91,924       — %       101,509       10 %  
                                   
    Net revenue     106,209         110,123       (4 )%       115,944       5 %  
                                   
    Segment expenses:                              
    Operating expenses     63,062         63,907       (1 )%       69,199       8 %  
    Depreciation and amortization     4,676         5,236       (11 )%       5,117       (2 )%  
    Total segment expenses     67,738         69,143       (2 )%       74,316       7 %  
                                     
    Segment pre-tax operating income   $ 38,471       $ 40,980       (6 )%     $ 41,628       2 %  
                                   
    Operating metrics:                              
    Retail merchandise sales margin 35 %   36 %         35 %        
    Net revenue margin 54 %   55 %         53 %        
    Segment pre-tax operating margin 19 %   20 %         19 %        
    FIRSTCASH HOLDINGS, INC.
    LATIN AMERICA PAWN SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
                          Constant Currency Basis
                          Nine Months        
                    Ended        
        Nine Months Ended           September 30,   Increase /
        September 30,   Increase /    2024   (Decrease)
         2024      2023   (Decrease)   (Non-GAAP)   (Non-GAAP)
    Revenue:                              
    Retail merchandise sales   $ 394,375       $ 378,302       4 %     $ 391,606       4 %  
    Pawn loan fees     175,443         164,619       7 %       174,228       6 %  
    Wholesale scrap jewelry sales     29,229         37,524       (22 )%       29,229       (22 )%  
    Total revenue     599,047         580,445       3 %       595,063       3 %  
                                   
    Cost of revenue:                              
    Cost of retail merchandise sold     254,188         244,439       4 %       252,377       3 %  
    Cost of wholesale scrap jewelry sold     23,783         29,408       (19 )%       23,627       (20 )%  
    Total cost of revenue     277,971         273,847       2 %       276,004       1 %  
                                   
    Net revenue     321,076         306,598       5 %       319,059       4 %  
                                   
    Segment expenses:                              
    Operating expenses     198,389         179,170       11 %       196,986       10 %  
    Depreciation and amortization     15,199         15,884       (4 )%       15,072       (5 )%  
    Total segment expenses     213,588         195,054       10 %       212,058       9 %  
                                   
    Segment pre-tax operating income   $ 107,488       $ 111,544       (4 )%     $ 107,001       (4 )%  
                                   
    Operating metrics:                              
    Retail merchandise sales margin 36 %   35 %         36 %        
    Net revenue margin 54 %   53 %         54 %        
    Segment pre-tax operating margin 18 %   19 %         18 %        
    FIRSTCASH HOLDINGS, INC.
    LATIN AMERICA PAWN SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
    Latin America Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)
     
                          Constant Currency Basis
                          As of        
                          September 30,    
      As of September 30,       2024   Increase
      2024   2023   (Decrease)   (Non-GAAP)   (Non-GAAP)
    Earning assets:                              
    Pawn loans $ 136,915     $ 142,662       (4 )%   $ 151,486     6 %  
    Inventories   95,726       96,976       (1 )%     105,792     9 %  
      $ 232,641     $ 239,638       (3 )%   $ 257,278     7 %  
                                   
    Average outstanding pawn loan amount (in ones) $ 85     $ 89       (4 )%   $ 94     6 %  
                                   
    Composition of pawn collateral:                              
    General merchandise 62 %   66 %                    
    Jewelry 38 %   34 %                    
      100 %   100 %                    
                                   
    Composition of inventories:                              
    General merchandise 70 %   68 %                    
    Jewelry 30 %   32 %                    
      100 %   100 %                    
                                   
    Percentage of inventory aged greater than one year 1 %   1 %                    
                                   
    Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories) 4.2 times   4.3 times                    
    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS
    (UNAUDITED)
     
    Retail POS Payment Solutions Operating Results (dollars in thousands)
     
      Three Months Ended        
      September 30,   Increase /
      2024   2023   (Decrease)
    Revenue:              
    Leased merchandise income $ 188,560   $ 189,382     — %  
    Interest and fees on finance receivables   61,198     61,413     — %  
    Total revenue   249,758     250,795     — %  
                   
    Cost of revenue:              
    Depreciation of leased merchandise   105,308     104,198     1 %  
    Provision for lease losses   39,268     39,640     (1 )%  
    Provision for loan losses   40,557     33,096     23 %  
    Total cost of revenue   185,133     176,934     5 %  
                   
    Net revenue   64,625     73,861     (13 )%  
                   
    Segment expenses:              
    Operating expenses   33,760     33,641     — %  
    Depreciation and amortization   679     771     (12 )%  
    Total segment expenses   34,439     34,412     — %  
                   
    Segment pre-tax operating income $ 30,186   $ 39,449     (23 )%  
    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
      Nine Months Ended        
      September 30,   Increase /
      2024   2023   (Decrease)
    Revenue:              
    Leased merchandise income $ 588,801   $ 562,625     5 %  
    Interest and fees on finance receivables   175,384     174,247     1 %  
    Total revenue   764,185     736,872     4 %  
                   
    Cost of revenue:              
    Depreciation of leased merchandise   336,649     309,432     9 %  
    Provision for lease losses   130,272     141,854     (8 )%  
    Provision for loan losses   102,091     90,571     13 %  
    Total cost of revenue   569,012     541,857     5 %  
                   
    Net revenue   195,173     195,015     — %  
                   
    Segment expenses:              
    Operating expenses   103,851     104,280     — %  
    Depreciation and amortization   2,078     2,258     (8 )%  
    Total segment expenses   105,929     106,538     (1 )%  
                   
    Segment pre-tax operating income $ 89,244   $ 88,477     1 %  
    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
    Retail POS Payment Solutions Gross Transaction Volumes (dollars in thousands)
     
      Three Months Ended        
      September 30,   Increase /
      2024   2023   (Decrease)
    Leased merchandise $ 143,146   $ 147,513     (3 )%  
    Finance receivables   142,910     103,183     39 %  
    Total gross transaction volume $ 286,056   $ 250,696     14 %  
                   
                   
      Nine Months Ended        
      September 30,   Increase /
      2024   2023   (Decrease)
    Leased merchandise $ 444,045   $ 452,792     (2 )%  
    Finance receivables   350,332     303,485     15 %  
    Total gross transaction volume $ 794,377   $ 756,277     5 %  
    Retail POS Payment Solutions Earning Assets (dollars in thousands)
     
      As of September 30,   Increase /
      2024   2023   (Decrease)
    Leased merchandise, net:              
    Leased merchandise, before allowance for lease losses $ 231,796     $ 250,298       (7 )%  
    Less allowance for lease losses   (93,823 )     (105,472 )     (11 )%  
    Leased merchandise, net $ 137,973     $ 144,826       (5 )%  
                   
    Finance receivables, net:              
    Finance receivables, before allowance for loan losses $ 232,948     $ 209,991       11 %  
    Less allowance for loan losses   (109,197 )     (96,684 )     13 %  
    Finance receivables, net $ 123,751     $ 113,307       9 %  
    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
    Allowance for Lease and Loan Losses and Other Portfolio Metrics (dollars in thousands)
     
      Three Months Ended        
      September 30,   Increase /
        2024     2023   (Decrease)
    Allowance for lease losses:                  
    Balance at beginning of period   $ 103,301       $ 110,964       (7 )%  
    Provision for lease losses     39,268         39,640       (1 )%  
    Charge-offs     (50,394 )       (46,794 )     8 %  
    Recoveries     1,648         1,662       (1 )%  
    Balance at end of period   $ 93,823       $ 105,472       (11 )%  
                       
    Leased merchandise portfolio metrics:                  
    Provision rate(1) 27 %   27 %        
    Average monthly net charge-off rate(2) 6.8 %   5.9 %        
    Delinquency rate(3) 23.6 %   23.2 %        
                       
    Allowance for loan losses:                  
    Balance at beginning of period   $ 99,961       $ 93,054       7 %  
    Provision for loan losses     40,557         33,096       23 %  
    Charge-offs     (32,969 )       (30,890 )     7 %  
    Recoveries     1,648         1,424       16 %  
    Balance at end of period   $ 109,197       $ 96,684       13 %  
                       
    Finance receivables portfolio metrics:                  
    Provision rate(1) 28 %   32 %        
    Average monthly net charge-off rate(2) 4.8 %   4.7 %        
    Delinquency rate(3) 19.4 %   21.9 %        

    (1)   Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.
    (2)   Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.
    (3)   Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).

    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
      Nine Months Ended        
      September 30,   Increase /
        2024     2023   (Decrease)
    Allowance for lease losses:                  
    Balance at beginning of period   $ 95,752       $ 79,576       20 %  
    Provision for lease losses     130,272         141,854       (8 )%  
    Charge-offs     (137,516 )       (120,966 )     14 %  
    Recoveries     5,315         5,008       6 %  
    Balance at end of period   $ 93,823       $ 105,472       (11 )%  
                       
    Leased merchandise portfolio metrics:                  
    Provision rate(1) 29 %   31 %        
    Average monthly net charge-off rate(2) 5.9 %   5.3 %        
    Delinquency rate(3) 23.6 %   23.2 %        
                       
    Allowance for loan losses:                  
    Balance at beginning of period   $ 96,454       $ 84,833       14 %  
    Provision for loan losses     102,091         90,571       13 %  
    Charge-offs     (95,061 )       (83,281 )     14 %  
    Recoveries     5,713         4,561       25 %  
    Balance at end of period   $ 109,197       $ 96,684       13 %  
                       
    Finance receivables portfolio metrics:                  
    Provision rate(1) 29 %   30 %        
    Average monthly net charge-off rate(2) 4.5 %   4.4 %        
    Delinquency rate(3) 19.4 %   21.9 %        

    (1)   Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.
    (2)   Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.
    (3)   Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).

    FIRSTCASH HOLDINGS, INC.
    PAWN STORE LOCATIONS AND MERCHANT PARTNER LOCATIONS
     
    Pawn Operations
     
    As of September 30, 2024, the Company operated 3,025 pawn store locations composed of 1,201 stores in 29 U.S. states and the District of Columbia, 1,723 stores in 32 states in Mexico, 72 stores in Guatemala, 17 stores in El Salvador and 12 stores in Colombia.
     
    The following tables detail pawn store count activity for the three and nine months ended September 30, 2024:
     
      Three Months Ended September 30, 2024
      U.S.   Latin America   Total
    Total locations, beginning of period 1,201     1,817     3,018  
    New locations opened(1) —     15     15  
    Locations acquired 1     —     1  
    Consolidation of existing pawn locations(2) (1 )   (8 )   (9 )
    Total locations, end of period 1,201     1,824     3,025  
               
               
      Nine Months Ended September 30, 2024
      U.S.   Latin America   Total
    Total locations, beginning of period 1,183     1,814     2,997  
    New locations opened(1) 1     54     55  
    Locations acquired 28     —     28  
    Consolidation of existing pawn locations(2) (3) (11 )   (44 )   (55 )
    Total locations, end of period 1,201     1,824     3,025  

    (1)   In addition to new store openings, the Company strategically relocated three stores in the U.S. and one store in Latin America during the three months ended September 30, 2024. During the nine months ended September 30, 2024, the Company strategically relocated nine stores in the U.S and one store in Latin America.
    (2)   Store consolidations were primarily acquired locations which have been combined with overlapping stores and for which the Company expects to maintain a significant portion of the acquired customer base in the consolidated location.
    (3)   Includes 10 pawnshops located in Acapulco, Mexico that were severely damaged by a hurricane in the fall of 2023 which the Company elected to consolidate with other stores in this market. The Company expects to replace certain of these locations in this market over time as the city’s infrastructure recovers.

    Retail POS Payment Solutions

    As of September 30, 2024, AFF provided LTO and retail POS payment solutions for consumer goods and services through a network of approximately 13,500 active retail merchant partner locations located in all 50 U.S. states, the District of Columbia and Puerto Rico. This compares to the active door count of approximately 10,800 locations at September 30, 2023.

    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES
    (UNAUDITED)
     

    The Company uses certain financial calculations such as adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow, adjusted return on equity, adjusted return on assets and constant currency results as factors in the measurement and evaluation of the Company’s operating performance and period-over-period growth. The Company derives these financial calculations on the basis of methodologies other than generally accepted accounting principles (“GAAP”), primarily by excluding from a comparable GAAP measure certain items the Company does not consider to be representative of its actual operating performance. These financial calculations are “non-GAAP financial measures” as defined under the SEC rules. The Company uses these non-GAAP financial measures in operating its business because management believes they are less susceptible to variances in actual operating performance that can result from the excluded items, other infrequent charges and currency fluctuations. The Company presents these financial measures to investors because management believes they are useful to investors in evaluating the primary factors that drive the Company’s core operating performance and provide greater transparency into the Company’s results of operations. However, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company’s financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP, and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly-titled measures of other companies.

    While acquisitions are an important part of the Company’s overall strategy, the Company has adjusted the applicable financial calculations to exclude merger and acquisition expenses and amortization of acquired AFF intangible assets. The Company does not consider these items to be related to the organic operations of the acquired businesses or its continuing operations and are generally not relevant to assessing or estimating the long-term performance of the acquired businesses. In addition, excluding these items allows for more accurate comparisons of the financial results to prior periods. Merger and acquisition expenses include incremental costs directly associated with merger and acquisition activities, including professional fees, legal expenses, severance, retention and other employee-related costs, contract breakage costs and costs related to the consolidation of technology systems and corporate facilities, among others.

    The Company has certain leases in Mexico which are denominated in U.S. dollars. The lease liability of these U.S. dollar-denominated leases, which is considered a monetary liability, is remeasured into Mexican pesos using current period exchange rates, resulting in the recognition of foreign currency exchange gains or losses. The Company has adjusted the applicable financial measures to exclude these remeasurement gains or losses (i) because they are non-cash, non-operating items that could create volatility in the Company’s consolidated results of operations due to the magnitude of the end of period lease liability being remeasured and (ii) to improve comparability of current periods presented with prior periods.

    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     

    Adjusted Net Income and Adjusted Diluted Earnings Per Share

    Management believes the presentation of adjusted net income and adjusted diluted earnings per share provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance and prospects for the future by excluding items that management believes are non-operating in nature and are not representative of the Company’s core operating performance. In addition, management believes the adjustments shown below are useful to investors in order to allow them to compare the Company’s financial results for the current periods presented with the prior periods presented.

    The following tables provide a reconciliation between net income and diluted earnings per share calculated in accordance with GAAP to adjusted net income and adjusted diluted earnings per share, which are shown net of tax (in thousands, except per share amounts):

                      Trailing Twelve
      Three Months Ended   Nine Months Ended Months Ended
      September 30,   September 30, September 30,
      2024
    		 2023 2024
    		 2023 2024
    		 2023
      In Thousands   In Thousands   In Thousands   In Thousands   In Thousands   In Thousands
    Net income, as reported $ 64,827     $ 57,144     $ 175,268     $ 149,712     $ 244,857     $ 229,778  
    Adjustments, net of tax:                      
    Merger and acquisition expenses   171       2,605       1,675       2,818       4,946       4,379  
    Non-cash foreign currency loss (gain) related to lease liability   986       442       2,124       (1,171 )     1,517       (1,856 )
    AFF purchase accounting and other adjustments   9,572       10,880       28,717       32,869       50,189       50,529  
    Gain on revaluation of contingent acquisition consideration   —       —       —       —       —       (21,952 )
    Other expenses (income), net   (377 )     (296 )     (518 )     (200 )     (1,397 )     (208 )
    Adjusted net income $ 75,179     $ 70,775     $ 207,266     $ 184,028     $ 300,112     $ 260,670  
    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
                   
      Three Months Ended   Nine Months Ended
      September 30,   September 30,
      2024   2023   2024   2023
      Per Share   Per Share   Per Share   Per Share
    Diluted earnings per share, as reported $ 1.44     $ 1.26     $ 3.88     $ 3.27  
    Adjustments, net of tax:              
    Merger and acquisition expenses   0.01       0.06       0.04       0.06  
    Non-cash foreign currency loss (gain) related to lease liability   0.02       0.01       0.05       (0.03 )
    AFF purchase accounting and other adjustments   0.21       0.24       0.63       0.72  
    Other expenses (income), net   (0.01 )     (0.01 )     (0.02 )     —  
    Adjusted diluted earnings per share $ 1.67     $ 1.56     $ 4.58     $ 4.02  
    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     

    Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

    The Company defines EBITDA as net income before income taxes, depreciation and amortization, interest expense and interest income and adjusted EBITDA as EBITDA adjusted for certain items, as listed below, that management considers to be non-operating in nature and not representative of its actual operating performance. The Company believes EBITDA and adjusted EBITDA are commonly used by investors to assess a company’s financial performance, and adjusted EBITDA is used as a starting point in the calculation of the consolidated total debt ratio as defined in the Company’s senior unsecured notes. The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA (in thousands):

                Trailing Twelve
        Three Months Ended   Nine Months Ended   Months Ended
        September 30,   September 30,   September 30,
        2024   2023   2024   2023   2024   2023
    Net income   $ 64,827     $ 57,144     $ 175,268     $ 149,712     $ 244,857     $ 229,778  
    Income taxes     20,353       20,480       57,975       51,649       79,874       73,189  
    Depreciation and amortization     25,933       27,365       78,507       81,526       106,142       107,863  
    Interest expense     27,424       24,689       78,029       66,657       104,615       86,616  
    Interest income     (403 )     (328 )     (1,407 )     (1,253 )     (1,623 )     (1,462 )
    EBITDA     138,134       129,350       388,372       348,291       533,865       495,984  
    Adjustments:                                    
    Merger and acquisition expenses     225       3,387       2,186       3,670       6,438       5,697  
    Non-cash foreign currency loss (gain) related to lease liability     1,409       632       3,035       (1,673 )     2,168       (2,652 )
    AFF purchase accounting and other adjustments(1)     —       —       —       —       13,968       8,760  
    Gain on revaluation of contingent acquisition consideration     —       —       —       —       —       (26,760 )
    Other expenses (income), net     (490 )     (384 )     (841 )     (260 )     (1,983 )     (270 )
    Adjusted EBITDA   $ 139,278     $ 132,985     $ 392,752     $ 350,028     $ 554,456     $ 480,759  
    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     

    (1)   The following table details AFF purchase accounting and other adjustments for the trailing twelve months ended September 30, 2024 and 2023 (in thousands):

      Trailing Twelve
      Months Ended
      September 30,
      2024   2023
    Amortization of fair value adjustment on acquired finance receivables included in interest and fees on finance receivables $ —   $ 7,859
    Amortization of fair value adjustment on acquired leased merchandise included in depreciation of leased merchandise   —     901
    Other non-recurring costs included in administrative expenses related to a discontinued finance product   13,968     —
      $ 13,968   $ 8,760
    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     

    Free Cash Flow and Adjusted Free Cash Flow

    For purposes of its internal liquidity assessments, the Company considers free cash flow and adjusted free cash flow. The Company defines free cash flow as cash flow from operating activities less purchases of furniture, fixtures, equipment and improvements and net fundings/repayments of pawn loan and finance receivables, which are considered to be operating in nature by the Company but are included in cash flow from investing activities. Adjusted free cash flow is defined as free cash flow adjusted for merger and acquisition expenses paid that management considers to be non-operating in nature.

    Free cash flow and adjusted free cash flow are commonly used by investors as additional measures of cash generated by business operations that may be used to repay scheduled debt maturities and debt service or, following payment of such debt obligations and other non-discretionary items, that may be available to invest in future growth through new business development activities or acquisitions, repurchase stock, pay cash dividends or repay debt obligations prior to their maturities. These metrics can also be used to evaluate the Company’s ability to generate cash flow from business operations and the impact that this cash flow has on the Company’s liquidity. However, free cash flow and adjusted free cash flow have limitations as analytical tools and should not be considered in isolation or as a substitute for cash flow from operating activities or other income statement data prepared in accordance with GAAP. The following table reconciles cash flow from operating activities to free cash flow and adjusted free cash flow (in thousands):

                        Trailing Twelve
        Three Months Ended   Nine Months Ended   Months Ended
        September 30,   September 30,   September 30,
        2024   2023   2024   2023   2024   2023
    Cash flow from operating activities   $ 113,090     $ 111,368     $ 341,809     $ 317,037     $ 440,914     $ 460,544  
    Cash flow from certain investing activities:                        
    Pawn loans, net(1)     (48,836 )     (59,614 )     (69,723 )     (59,426 )     (45,275 )     (20,536 )
    Finance receivables, net     (48,623 )     (30,869 )     (86,186 )     (87,994 )     (113,634 )     (123,713 )
    Purchases of furniture, fixtures, equipment and improvements     (13,368 )     (18,375 )     (56,032 )     (46,723 )     (69,457 )     (52,679 )
    Free cash flow     2,263       2,510       129,868       122,894       212,548       263,616  
    Merger and acquisition expenses paid, net of tax benefit     171       2,605       1,675       2,818       4,946       4,379  
    Adjusted free cash flow   $ 2,434     $ 5,115     $ 131,543     $ 125,712     $ 217,494     $ 267,995  

    (1)   Includes the funding of new loans net of cash repayments and recovery of principal through the sale of inventories acquired from forfeiture of pawn collateral.

    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     

    Adjusted Return on Equity and Adjusted Return on Assets

    Management believes the presentation of adjusted return on equity and adjusted return on assets provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance by excluding items that management believes are non-operating in nature and not representative of the Company’s core operating performance.

    Annualized adjusted return on equity and adjusted return on assets is calculated as follows (dollars in thousands):

      Trailing Twelve
      Months Ended
      September 30, 2024
    Adjusted net income(1) $ 300,112  
         
    Average stockholders’ equity (average of five most recent quarter-end balances) $ 1,987,405  
    Adjusted return on equity (trailing twelve months adjusted net income divided by average equity) 15 %
         
    Average total assets (average of five most recent quarter-end balances) $ 4,285,437  
    Adjusted return on assets (trailing twelve months adjusted net income divided by average total assets) 7 %

    (1)   See detail of adjustments to net income in the “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section above.

    Constant Currency Results

    The Company’s reporting currency is the U.S. dollar, however, certain performance metrics discussed in this release are presented on a “constant currency” basis, which is considered a non-GAAP financial measure. The Company’s management uses constant currency results to evaluate operating results of business operations in Latin America, which are transacted in local currencies in Mexico, Guatemala and Colombia. The Company also has operations in El Salvador, where the reporting and functional currency is the U.S. dollar.

    The Company believes constant currency results provide valuable supplemental information regarding the underlying performance of its business operations in Latin America, consistent with how the Company’s management evaluates such performance and operating results. Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in local currencies using the exchange rate from the prior-year comparable period, as opposed to the current comparable period, in order to exclude the effects of foreign currency rate fluctuations for purposes of evaluating period-over-period comparisons. See the Latin America pawn segment tables elsewhere in this release for an additional reconciliation of certain constant currency amounts to as reported GAAP amounts.

    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     
    Exchange Rates for the Mexican Peso, Guatemalan Quetzal and Colombian Peso
     
      September 30,   Favorable /
      2024   2023   (Unfavorable)
    Mexican peso / U.S. dollar exchange rate:              
    End-of-period 19.6   17.6     (11 )%  
    Three months ended 18.9   17.1     (11 )%  
    Nine months ended 17.7   17.8     1 %  
                   
    Guatemalan quetzal / U.S. dollar exchange rate:              
    End-of-period 7.7   7.9     3 %  
    Three months ended 7.7   7.9     3 %  
    Nine months ended 7.8   7.8     — %  
                   
    Colombian peso / U.S. dollar exchange rate:              
    End-of-period 4,164   4,054     (3 )%  
    Three months ended 4,095   4,048     (1 )%  
    Nine months ended 3,979   4,413     10 %  
                     
    FIRSTCASH HOLDINGS, INC.
    INTERSEGMENT TRANSACTIONS
    (UNAUDITED)
     

    Intersegment transactions relate to the Company offering AFF’s LTO payment solution in its U.S. pawn stores and are eliminated to arrive at consolidated totals. For the three months ended September 30, 2024 and 2023, these intersegment amounts are as follows:

    • U.S. pawn retail merchandise sales includes $1.0 million and $1.5 million, respectively. Excluding these intersegment sales, consolidated U.S. retail merchandise sales totaled $234.1 million and $202.3 million, respectively.
    • U.S. pawn cost of retail merchandise sold includes $0.5 million and $0.8 million, respectively. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold totaled $134.4 million and $114.9 million, respectively.
    • Retail POS payment solutions depreciation of leased merchandise includes $0.4 million and $0.5 million respectively. Excluding these intersegment transactions, consolidated depreciation of leased merchandise totaled $104.9 million and $103.7 million, respectively.
    • Retail POS payment solutions provision for lease losses includes an increase of $0.1 million and a provision reduction of $0.1 million, respectively. Excluding these intersegment transactions, consolidated provision for lease losses totaled $39.2 million and $39.7 million, respectively.

    For the nine months ended September 30, 2024 and 2023, these intersegment amounts are as follows:

    • U.S. pawn retail merchandise sales includes $3.1 million and $4.9 million, respectively. Excluding these intersegment sales, consolidated U.S. retail merchandise sales totaled $699.1 million and $605.6 million, respectively.
    • U.S. pawn cost of retail merchandise sold includes $1.7 million and $2.6 million, respectively. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold totaled $405.7 million and $346.6 million, respectively.
    • Retail POS payment solutions depreciation of leased merchandise includes $1.3 million and $1.6 million, respectively. Excluding these intersegment transactions, consolidated depreciation of leased merchandise totaled $335.4 million and $307.8 million, respectively.
    • Retail POS payment solutions provision for lease losses includes $0.4 million and $0.2 million, respectively. Excluding these intersegment transactions, consolidated provision for lease losses totaled $129.8 million and $141.7 million, respectively.

    As of September 30, 2024 and 2023, these intersegment amounts are as follows:

    • Retail POS payment solutions leased merchandise, net includes $0.2 million and $1.7 million, respectively. Excluding these intersegment transactions, consolidated net leased merchandise totaled $137.8 million and $143.2 million, respectively.

    The MIL Network –

  • MIL-Evening Report: ‘We’ll be talking about the future of negotiations’, says Rabuka on New Caledonia mission

    By Susana Suisuiki, RNZ Pacific journalist in Apia

    Fiji Prime Minister Sitiveni Rabuka says he will take a back seat in the upcoming Pacific leaders’ fact-finding mission to New Caledonia, which was postponed from earlier in the year.

    Leaders from the Cook Islands, Tonga, and Solomon Islands make up a group called the Pacific Islands Forum troika, comprising past, present and future hosts of the annual PIF leaders’ meeting.

    The call for a PIF fact-finding mission was made while Fiji was still part of the troika.

    Rabuka spoke with French President Emmanuel Macron the week before the mission was originally scheduled to take place.

    When asked by RNZ Pacific why the trip had been postponed, Rabuka replied: “I do not know. I’m just the troika-plus.”

    Rabuka, who is currently in Apia for the 27th Heads of Government Meeting (CHOGM), was bestowed with a Samoan matai title of Tagaloa by the village of Leauva’a yesterday.

    He confirmed to RNZ Pacific that he would be in Nouméa on Sunday.

    “We will be talking about the future of negotiations and the relationship between New Caledonia and the people and France,” he said.

    PIF Secretary-General Baron Waqa told RNZ Pacific that supporting peace and harmony in New Caledonia was top of the agenda for the leaders’ mission.

    Waqa, who is also attending CHOGM, said an advance team was in Nouméa making preparations for the visit.

    Violence and destruction has been ongoing in New Caledonia for much of the past five months in protest over French plans for the territory.

    The death toll stands at 13.

    This article is republished under a community partnership agreement with RNZ.

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Grattan on Friday: a possible Trump victory is making the Albanese government cagey about its 2035 climate target

    Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra

    If Donald Trump wins the US presidency on November 5, his victory will have profound implications for other countries on many fronts. Not least of them will be climate change policy.

    Perhaps the uncertainty now hanging over US politics was on the mind of Climate Change and Energy Minister Chris Bowen, who shilly-shallied this week over when he’ll announce Australia’s 2035 emissions reduction target under the Paris climate agreement.

    Bowen refused to be pinned down at the Australian Financial Review’s energy and climate summit on whether the target would be public before next year’s election. Neither his office nor that of the prime minister would be more specific later.

    Australia, like other countries, is required under the Paris agreement to put forward its target in February. But, also like other countries, Australia is focused on what’s happening in the US.

    Trump wants to take the US out of the Paris agreement for the second time. The first exit took effect immediately after his 2020 defeat and incoming President Joe Biden was able to reverse it at once. This time, there’d be no such quick turnaround.

    The Biden administration has been strongly committed on climate issues. If the US exited, the Paris agreement would likely be transformed.

    There may be other reasons why Bowen is being cagey about the 2035 target. Climate change and energy will be harder issues for Labor in this election, as it struggles with the realities of the transition, than in the 2022 one.

    In the run-up to that election, a desperate Scott Morrison pulled out all stops to win support within the Coalition to sign up to the 2050 net-zero emissions target.

    Labor was on the front foot, with a policy for a 43% reduction in emissions (on 2005 levels) by 2030, underpinned by a target of 82% renewable electricity by then. The election promise for consumers was a $275 cut in household power bills by 2025.

    Crafting a policy is often easier than implementing it. The journey to a clean energy economy is arduous.

    The $275 promise was quickly seen as unrealisable. The government has had to provide rebates to keep prices in check. The rollout of renewables is complicated by local resistance to some projects, including wind farms and transmission lines. At present, more than 40% of electricity comes from renewables.

    The cost-of-living crisis has increasingly dominated everything. Climate change remains a significant issue with people, but over time it tends to go up and down their scale of concerns, depending on changing circumstances.

    The Ipsos Climate Change Report, done annually, found in 2024 “strong notional support for the energy transition”, but low understanding of what progress had been made.

    Concerns about the negative impacts of the transition on cost of living and energy reliability have increased, particularly in the current high inflation environment. The perceived economic benefits of the transition are less clear, with many unsure about the impact on jobs and the broader economy.

    The emphasis on cost of living is influencing priorities for the energy transition, with Australians wanting to see energy prices and reliability prioritised. There is a growing sentiment that Australia should only take action if other countries are also contributing fairly to climate change efforts.

    Of course a summer of bad bushfires can change people’s priorities suddenly. Barring that, Labor is looking at a 2025 election in which it will be more on the defensive than the offensive on climate and energy issues.

    The opposition has already acted to sharpen the difference with Labor over the medium term targets. Peter Dutton will have no 2035 target before the election, and has questioned the 2030 target to which Australia is signed up, although he says a Coalition government would not leave the Paris agreement. He is also running hard on his controversial policy for nuclear energy.

    While Bowen is not clarifying whether he’ll announce the government’s target ahead of the election, it would be awkward for Australia not to meet the February deadline.

    There would not be a penalty, but it would be a bad look, especially given we are vying with Turkey to host, together with Pacific countries, COP31 in 2026. One unknown, incidentally, is whether a Coalition government would continue this bid, which the opposition has describes as a “vanity project”.

    If the government does announce the 2035 target before the election, the big question is how ambitious it will make it.

    Bowen will receive advice on this from the Climate Change Authority, to which the government has appointed, as head, former New South Wales Liberal Treasurer Matt Kean.

    In an earlier discussion paper, the authority said the evidence suggests

    A 2035 target in the range of 65-75% […] could be achievable and sustainable if additional action is taken by governments, business, investors and households […]. However, attempting to go much faster could risk significant levels of economic and social disruption and put progress at risk.

    A bold target would make the government more vulnerable, just when Labor would want the attention on the Coalition’s problematic nuclear policy. On the other hand, if the target were modest, that would be exploited by the Greens.

    Next month, Bowen will attend COP29 in Azerbaijan, where the central issue will be a financial goal, replacing the 2015 goal, for developed and major economies to help fund developing countries’ emission reduction efforts. Bowen, with Egyptian Environment Minister Yasmine Fouad, is leading the consultations on this, and so has a significant role at the conference.

    At the COP meeting, Bowen will get a better idea of where other countries are on their expected 2035 targets. He indicated this week he has already started taking soundings. “Obviously […] of course you think about international context.”

    By the time of COP, which runs November 11-22, America will have chosen its next president. The COP meeting will either be business-as-usual, looking to an incoming Kamala Harris presidency, or trying to anticipate the implications of a Trump administration that could be a major disruptor of international climate policy.

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

    – ref. Grattan on Friday: a possible Trump victory is making the Albanese government cagey about its 2035 climate target – https://theconversation.com/grattan-on-friday-a-possible-trump-victory-is-making-the-albanese-government-cagey-about-its-2035-climate-target-242107

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI NGOs: Northern Ireland: Anti-racism march to be held in Belfast as race hate attacks at all-time high

    Source: Amnesty International –

    Belfast For All – stand together against racism

    Race hate incidents to the end of June 2024 were already at record levels – before the summer surge in violence

    ‘Saturday’s march will be a show of support for victims and for all who live in fear that they could be next’ – Patrick Corrigan

    Large numbers of people are expected to march in Belfast on Saturday in opposition to ongoing racist attacks in the city.

    Following a surge in racist attacks in Northern Ireland during the summer, attacks have continued on a weekly basis, with police figures already showing 2024 as the worst year ever for racist violence in the region.

    Race hate incidents had already reached a record high in Northern Ireland by the end of June 2024, before this summer’s surge in racist attacks. A record 1,411 racist incidents and 891 racist crimes were recorded by the PSNI in the year ending June 2024, according to official police data released by the Northern Ireland Statistics and Research Agency (NISRA).

    The annual figures showed that racist crimes represented almost 1% of all recorded crime during the period.

    Amnesty International is among the organisers of the ‘Belfast for All – stand together against racism’ march and rally which will take place in the city this Saturday and which has the support of scores of organisations, charities and political parties.

    Ahead of the march, Patrick Corrigan, Amnesty International’s Northern Ireland Director said:

    “Racist violence may have dropped from the headlines, but not a week goes by in this city without another family having their home attacked by racist thugs.

    “Saturday’s march will be a show of support for victims and for all who live in fear that they could be next.

    “The disgraceful events of August, when a racist mob was able to run amok in Belfast, attacking homes and businesses at will, must never be repeated. But neither must we accept the insidious, ongoing attacks which continue to happen under the cover of darkness week in, week out.”

    Saturday’s Belfast For All march and rally has been organised by United Against Racism, with support from Amnesty International, Belfast Islamic Centre and the NIPSA trade union, with people asked to meet at Writers’ Square at 11:30am before marching to Belfast City Hall.

    View latest press releases

    MIL OSI NGO –

  • MIL-OSI Global: Ukraine cannot defeat Russia – the best the west can do is help Kyiv plan for a secure post-war future

    Source: The Conversation – UK – By Frank Ledwidge, Senior Lecturer in Military Strategy and Law, University of Portsmouth

    A friend of mine, usually an intensely optimistic pro-Ukraine analyst, returned from Ukraine last week and told me: “It’s like the German Army in January 1945.” The Ukrainians are being driven back on all fronts – including in the Kursk province of Russia, which they had opened with much hope and fanfare in August. More importantly, they are running out of soldiers.

    For most of 2024, Ukraine has been losing ground. This week, the town of Selidove in the western Donetsk region is being surrounded and, like Vuhledar earlier this month, is likely to fall in the next week or so – the only variable being how many Ukrainians will be lost in the process. Over the winter, the terrible prospect of a major battle to hold the strategically significant industrial town of Pokrovsk beckons.

    Ukrainian forces are steadily losing ground close to the strategically vital town of Pokrovsk, western Donetsk region.
    Institute for the Study of War

    Ultimately, this is not a war of territory but of attrition. The only resource that counts is soldiers – and here the calculus for Ukraine is not positive.

    Ukraine claims to have “liquidated” nearly 700,000 Russian soldiers – with more than 120,000 killed and upwards of 500,000 injured. Its president, Volodymyr Zelensky, admitted in February this year to 31,000 Ukrainian fatalities, with no figure given for injured.

    The problem is these Ukrainian totals are apparently believed by western officials, when the reality is likely to be very different. US sources say the war has seen 1 million people killed and wounded on both sides. Crucially, this includes a growing number of Ukrainian civilians.

    Low morale and desertion, as well as draft-dodging, are now significant problems for Ukraine. These factors are exacerbating already serious recruitment issues, making it hard to supply the front lines with fresh troops.

    A dreadful debate is taking place in Ukraine. The question revolves around whether to mobilise – and risk serious casualties to – the 18-25 age group. Due to economic pressures in the early 2000s, Ukraine suffered a major drop in its birth rate, leaving relatively few people now aged between 15 and 25. Mobilisation and serious attrition of this group may be something Ukraine simply can’t afford, given the already serious demographic crisis the country faces.

    And even if this mobilisation does go ahead, by the time the necessary politics, legislation, bureaucracy and training have run their course, the war may be over.

    Victory look impossible

    History knows of no example where taking on Russia in an attritional contest has proved successful. Let’s be clear: this means there is a real possibility of defeat – there is no sugar-coating this.

    Zelensky’s maximalist war aims of restoring Ukraine’s pre-2014 borders, along with other unlikely conditions – which were unchallenged and encouraged by a confused but self-aggrandising west – will not be achieved, and the west’s leaders are partly to blame. Ill-advised wars in Afghanistan and the Middle East left western armed forces hollow, poorly armed, and entirely unprepared for a serious and prolonged conflict, with ammunition stocks likely to last weeks at best.

    European promises of millions of artillery rounds have failed to materialise – only 650,000 have been supplied to Kyiv this year, whereas the North Koreans have supplied at least twice that to Russia.

    Only the US has significant stocks of weaponry in the form of thousands of armoured vehicles, tanks and artillery pieces in reserve – and it is unlikely to change its policy of drip-feeding weapons to Ukraine now. Even if such a decision is made, the lead-time for delivery will be years, not months.

    In a confidential briefing I attended recently given by western defence officials, the atmosphere was downbeat. The situation is “perilous” and “as bad as it has ever been” for Ukraine. Western powers cannot afford another strategic disaster like Afghanistan which, in the words of Ernest Hemingway (aptly quoted by the strategist Lawrence Freedman), happened “gradually, then suddenly”.

    There will be no decisive breakthrough by Russia’s army when they take this town or that (say, Pokrovsk). They haven’t the capability to do it. So, there won’t be a collapse – no “Kyiv as Kabul” moment.

    However, there are limits to the losses Ukraine can take. We do not know where that limit lies, but we’ll know when it happens. Crucially, there will be no victory for Ukraine. Unforgivably, there is not, and never has been, a western strategy except to bleed Russia as long as possible.

    More fundamentally, two ancient ethical questions governing whether a war is just must now be asked and answered: whether there is a reasonable prospect of success, and whether the potential gain is proportionate to the cost.

    The problem, as so often before, is that the west has not defined what it considers a success. The cost, meanwhile, is becoming all-too clear.

    To have clearly defined its goals and limits would have constituted the beginnings of a strategy – and the west isn’t good at that. Nato’s leaders now need to move quickly beyond meaningless rhetoric or anything that smacks of “as long as it takes”. We saw where that led in Iraq, Afghanistan and Libya.

    We need a realistic answer to what something like a “win”, or at least an acceptable settlement, now looks like – as well as the extent to which it is achievable, and whether the west is really going to pursue it. And then for western leaders to act accordingly.

    A starting point could be accepting that Crimea, Donetsk and Luhansk are lost – something an increasing number of Ukrainians are beginning to say openly. Then we need to start planning seriously for a post-war Ukraine that will need the west’s suppport more than ever.

    Russia cannot possibly take all, or even the bulk of, Ukraine’s territory. Even if it could, it could not possibly hold it. It is amply clear there will be a compromise settlement.

    So, it is time for Nato – and the US in particular – to articulate a viable end to this nightmarish ordeal, and to develop a pragmatic strategy to deal with Russia in the coming decade. More importantly, the west must plan how to support a heroic, shattered – but still independent – Ukraine.

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

    – ref. Ukraine cannot defeat Russia – the best the west can do is help Kyiv plan for a secure post-war future – https://theconversation.com/ukraine-cannot-defeat-russia-the-best-the-west-can-do-is-help-kyiv-plan-for-a-secure-post-war-future-242010

    MIL OSI – Global Reports –

  • MIL-OSI Global: There’s a crisis in special educational needs provision: here’s the situation across the UK and Ireland

    Source: The Conversation – UK – By Cathryn Knight, Senior Lecturer in Psychology in Education, University of Bristol

    Ermolaev Alexander/Shutterstock

    In the UK and Ireland, children who have significant special educational needs and disabilities can receive their education outside mainstream school. This often takes place in “special schools” or “special classes”.

    In the UK, as well as the Republic of Ireland, legislation sets out that children have the right to attend mainstream education. This right cannot be refused based on the complexity of the child’s needs. However, many children are educated in specialist schools, and the devolved governments of the UK, and Ireland, have taken differing approaches to this provision.

    But there is a problem. Across the UK and Ireland, there are far fewer places available in specialist schools and classes for the number of children identified with needs significant enough to warrant a place.

    England

    In 2010, then-prime minister David Cameron set out the aim to “end the bias” towards including children with special educational needs and disabilities in mainstream schools.

    His government felt there had been an overemphasis on inclusion in mainstream schools. As a consequence, England has seen an expansion of specialist education provision. From 2015 to 2023, there has been a 47% increase in the number of pupils at special schools in England – from 109,177 to 161,072.
    However, as of May 2024, 4,407 children across England were waiting for school places in specialist provision.

    There has also been a large increase in the number of appeals against councils by parents or carers of children with special educational needs in England, challenging the decision made around a child’s school placement and provision.

    A new report from the National Audit Office on special educational needs suggests that the current system in England is unsustainable, with many councils set to run out of money by early 2026.

    Wales

    Wales has also seen a 25% increase in special school provision from 2017-18 to 2023-4.

    However, there has recently been a large decrease in the number of learners being identified with additional learning needs. This has coincided with the introduction of a new additional learning needs system.

    However, the proportion of all learners in special schools has increased. This means that this reduction in identification does not seem to have changed the number of those who require specialist placements.

    Scotland

    Scotland has taken a different route. Here, the legal right to mainstream schooling has been taken a step further: there is an underlying “presumption of mainstreaming”, in other words, a right to attend a mainstream school, although exceptions in which a specialist provision should be considered are set out.

    This presumption of mainstreaming means that there has been a reduction in the number of special schools. However, alongside this there has been an increase in the proportion of children not spending time in mainstream classes.

    There has been an increase in special needs provision in mainstream classes in Scotland.
    Evgeny Atamanenko/Shutterstock

    This implies that more children are being educated in units attached to mainstream schools, without necessarily participating in mainstream classes. A recent review has raised concerns that the children with additional support needs in mainstream schools are not having their needs met.

    Northern Ireland

    The number of children with a statement of special educational needs in Northern Ireland increased by 24% in the five years from 2017-18 to 2021-22. A Department of Education official recently told the Education Committee of the NI Assembly that there was a need for an additional 1,000 places for children with SEN. This would require 66 new special school classes and 94 new specialist classes in mainstream schools.

    Northern Ireland is addressing the increased demand for special school places by embarking on a programme to develop specialist provision in mainstream schools. It is important to note, however, that although attached to and often under the same roof as mainstream schools, these are separate, specialist classes for children whose needs would ordinarily have been met in special schools, if pupil places had been available.

    Republic of Ireland

    In the Irish republic, there has been a dramatic increase in demand for specialist provision. There has also been an increase in the number of special schools in recent years, from 123 in 2018-19 to 134 in 2024-25, and further schools are planned.

    However, the challenges experienced by children with SEN in accessing school places continues. Some children are receiving home tuition grants because they don’t have a school place, and even more students are waiting to secure a place for the school year 2024-25. To address this, the minister for education in Ireland is now able to compel schools to open special classes under amended legislation.

    The challenge

    The devolved governments of the UK, and the Republic of Ireland, are committed to the UN Convention on the Rights of Persons with Disabilities, which upholds the right to inclusive education for all learners. This includes the right to be educated without segregation.

    Scotland have addressed this by reducing specialist provision – although there have been criticisms of how this has been implemented in practice. Elsewhere in the UK, the demand for specialist provision is leading to each government increasing the amount of specialist provision, as opposed to considering how the principles of inclusive education could be embedded in mainstream schools.

    In line with guidance from the UN, it is important to consider how mainstream schools can effectively support and include all learners. If these schools are designed to better accommodate a broader range of learners, the need for specialist placements could well decrease.

    However, criticisms of the Scottish system show that without adequate support, placing children with special educational needs in mainstream schools is not enough for students to feel fully included.

    Cathryn Knight receives funding from the ESRC Impact Acceleration Account.

    Joanne Banks receives funding from The Irish Research Council New Foundations Award.

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

    – ref. There’s a crisis in special educational needs provision: here’s the situation across the UK and Ireland – https://theconversation.com/theres-a-crisis-in-special-educational-needs-provision-heres-the-situation-across-the-uk-and-ireland-240264

    MIL OSI – Global Reports –

  • MIL-OSI Video: President Cyril Ramaphosa’s remarks during the BRICS Outreach and BRICS Plus in Russia

    Source: Republic of South Africa (video statements-2)

    President Cyril Ramaphosa’s remarks during the BRICS Outreach and BRICS Plus in Russia

    https://www.youtube.com/watch?v=LIwC23aw2NM

    MIL OSI Video –

  • MIL-OSI United Kingdom: Home Office hits 500 jobs milestone in Stoke-on-Trent

    Source: City of Stoke-on-Trent

    Published: Thursday, 24th October 2024

    More than 500 government jobs have been created in Stoke-on-Trent over the last two years.

    The huge employment boost comes as part of a long-term commitment by the Home Office to create hundreds of new roles in the city.

    The 500 new jobs include roles that are pivotal in operational activity across the country, as well as corporate functions.

    Councillor Jane Ashworth, leader of Stoke-on-Trent City Council, said: “We are so pleased to see that the Home Office has hit its target of bringing 500 new jobs to the city in such a short space of time. This is a huge milestone for Stoke-on-Trent.

    “We want to ensure our residents have access to good jobs with higher wages, so we are delighted that the Home Office has made this commitment to our city.”

    In 2023, the Home Office signed a lease for 38,000 sq ft of office space at the Two Smithfield building in the city centre – initially creating around 200 new jobs.

    Eighteen months on, that number has risen to more than 500 employees, most of which are local to Stoke-on-Trent.

    The government department had been in talks with the city council about building a brand-new base in the city which would house all of its Stoke-on-Trent workforce.

    Now the Home Office has confirmed that it is looking to sign a long-term lease for existing office space in the city instead, in line with its firm commitment to remain in the city.

    Cllr Ashworth added: “We will continue to work with the Home Office to ensure they can find a permanent home in the city and will look at how we can potentially use existing or repurposed sites while doing everything we can to ensure these new jobs remain in the city for the long-term.”

    Minister of State, Lord David Hanson said: “We are committed to having a strong presence in Stoke-on-Trent and by fulfilling our commitment to bring more than 500 jobs to the city, we will ensure the region has a huge part to play in tackling some of the biggest challenges facing the UK.

    “Since taking office I have held constructive discussions with local partners in the region and I look forward to building on these relationships to explore how the Home Office can provide further opportunities to Stoke-on-Trent.”

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Carols in the Chamber 2024

    Source: City of Preston

    This December, the Council’s Chamber will come alive with the sound of Christmas as the Mayor of Preston hosts the annual ‘Carols in the Chamber’.

    On Wednesday, 4 December, members of the community are invited to join the Mayor, civic leaders and Preston Gilbert and Sullivan Society, at Preston Town Hall for a heartwarming evening of traditional carols.

    Preston Gilbert and Sullivan Society will lead the audience in singing Christmas classics such as O Little Town of Bethlehem, Away in a Manger, Joy to the World, Hark the Herald Angels Sing, and Silent Night.

    Councillor Phil Crowe, Mayor of Preston, said:

    “This is a tradition that dates back many years, and I’m privileged to host this event once again. I look forward to welcoming the community for an evening of festivities and joyful singing.

    The money raised from the event will be going to my chosen charities which I am proud to support and all do fantastic work in their communities.”

    The evening will begin with a festive reception at 6:30pm, featuring complimentary mince pies and drink. Carols will commence at 7pm.

    Tickets for the evening cost £10, with all proceeds from the event going to the Mayor’s chosen charities:

    • Let’s Grow Preston
    • Disability Equality Northwest
    • Furniture for Education Worldwide.

    For tickets, please email The Mayor on themayor@preston.gov.uk, by 15 November 2024.

    Join us for an evening of music, community, and festive spirit, all in support of these causes.

    MIL OSI United Kingdom –

  • MIL-OSI Asia-Pac: Excessive cadmium found in imported frozen shrimp sample

    Source: Hong Kong Government special administrative region

    Excessive cadmium found in imported frozen shrimp sample
    Excessive cadmium found in imported frozen shrimp sample
    ********************************************************

         The Centre for Food Safety (CFS) of the Food and Environmental Hygiene Department today (October 24) announced that a sample of imported frozen shrimp from Spain was detected with cadmium, a metallic contaminant, at a level exceeding the legal limit. The CFS is following up on the incident.     “The CFS collected the above-mentioned frozen shrimp sample at the import level for testing under its routine Food Surveillance Programme. The test result showed that the sample contained cadmium at a level of 2.79 parts per million, exceeding the legal limit of 2 ppm,” a spokesman for the CFS said.     “Long-term excessive intake of cadmium may affect the kidney functions. The CFS has informed the importer concerned of the irregularity and instructed it to stop sales and remove from shelves the affected product. The CFS is also tracing the source and distribution of the product concerned,” the spokesman added.     According to the Food Adulteration (Metallic Contamination) Regulations (Cap. 132V), any person who sells food with metallic contamination above the legal limit is liable upon conviction to a fine of $50,000 and imprisonment for six months.     The CFS will alert the Spanish authorities and the trade, continue to follow up on the incident and take appropriate action. The investigation is ongoing.

     
    Ends/Thursday, October 24, 2024Issued at HKT 18:30

    NNNN

    MIL OSI Asia Pacific News –

  • MIL-OSI Europe: 80th anniversary celebrations for ‘Il Tempo’ newspaper

    Source: Government of Italy (English)

    23 Ottobre 2024

    The President of the Council of Ministers, Giorgia Meloni, was interviewed this evening by the editor-in-chief of ‘Il Tempo’, Tommaso Cerno, on the occasion of the 80th anniversary celebrations for the newspaper.

    [This video is available in Italian only]

    MIL OSI Europe News –

  • MIL-OSI Europe: AFRICA/BURKINA FASO – Violence spreads: hundreds killed in an armed attack in the village of Manni

    Source: Agenzia Fides – MIL OSI

    Thursday, 24 October 2024

    Ouagadougou (Agenzia Fides) – For some time now, Burkina Faso has been confronted with several violence attacks by armed groups. In recent months the situation seems to be out of control.According to what was reported to Fides last October 6, the village of Manni, in the province of Gnagna in the eastern region of the country, suffered a serious attack.“More than 150 people lost their lives in the attack in Manni, including many Christians – reports the local source who requests anonymity for security reasons. Before the attack, the village’s mobile networks was interrupted to prevent any communication. The terrorists first hit the local market where many inhabitants had gathered after mass. Then they went into the houses and shops to kill those who had taken refuge there, and set fire on them, burning the victims alive. The next day they returned, setting fire on cars, shooting at medical personnels and other individuals. Many of the victims came from surrounding villages, which had already been driven out by the terrorists and had come to seek refuge in Manni.”“Deep sorrow and sincere compassion to all the bereaved families”, was expressed by the bishop of the diocese of Fada N’Gourma, Pierre Claver Malgo, who described the attack as ‘barbaric’. “Unfortunately – the source points out – these attacks are increasing the number of internally displaced people in the country.”More recently, in the month of August, terrorist attacks were recorded in Burkina Faso in the province of Nayala, in the village of Nimina, Mogwentenga and Gnipiru, until the end of August when the country experienced the worst massacre in its history in Barsalogho which, according to reports, caused at least 400 deaths.Since 2015, Burkina Faso has been under siege by terrorist groups, resulting in a constant state of insecurity and fear. Since interim President Ibrahim Traoré came to power on September 30, 2022, there have been at least six failed coup attempts against him, the last one in chronological order dates back to the end of August 2024.(AP) (Agenzia Fides, 24/10/2024)
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    MIL OSI Europe News –

  • MIL-OSI Europe: ASIA/PHILIPPINES – Parishes welcome displaced people, hit by Typhoon Kristine

    Source: Agenzia Fides – MIL OSI

    Caritas Philippines

    Naga (Agenzia Fides) – More than 25 parishes and church facilities, such as the Basilica of Our Lady of Peñafrancia and the Ateneo de Naga University of the Archdiocese of Caceres, managed by the Jesuit Order, have opened their doors and are acting as temporary evacuation centers for displaced persons and families affected by the effects of Typhoon Kristine (international name: Trami), which is devastating the northeastern Philippines. The floods and landslides caused by the tropical storm, which began yesterday, October 23, have claimed at least 24 lives in the Bilcol region, while thousands are trapped in the villages. The government has closed schools and offices throughout the island of Luzon to protect the population. The “National Council for Disaster Risk Reduction and Management” reported that about 78,000 families in 14 provinces were affected by the devastating effects of the typhoon, after which initial relief efforts were immediately activated by institutions, non-governmental organizations and the church. As Caritas Philippines reports, the Catholic dioceses in the affected areas have activated teams of volunteers to assess the extent of the damage and take appropriate measures. “Our priority is to ensure the fastest possible aid for the most needy and weakest,” said Bishop Colin Bagaforo, President of Caritas Philippines. He points out that the structures of the local churches have agreed to welcome the refugees.The Archdiocese of Cáceres, meanwhile, made a public appeal to parishes, schools and institutions that can temporarily provide rooms for the displaced. In the diocese of Legazpi, several parish churches have been flooded but, despite the floods, have opened the doors of their parish centers, which are still accessible: the parish church of Polangui, for example, although affected, is hosting nearly 300 people, the most vulnerable displaced, such as pregnant and breastfeeding women with their children, the sick and the elderly. Some of them are housed in the parish priest’s home.Caritas Philippines has also launched a nationwide appeal for donations to provide essentials and humanitarian aid to the displaced. (PA (Agenzia Fides, 24/10/2024)

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    MIL OSI Europe News –

  • MIL-OSI United Kingdom: Council asked to approve £6.3m boost to Landbank Fund

    Source: Scotland – Highland Council

    Members will be asked to approve the repayment of £6.308m to the Landbank Fund from income from Council Tax on 2nd homes, at the Highland Council meeting on 31 October. The additional money will support the Council in finding solutions to the Highland Housing Challenge.

    Chair of the Council’s Economy and Infrastructure Committee, Cllr Ken Gowans said: “The Landbank Fund is a valuable mechanism which allows us to invest further in housing supply in the Highlands. The additional £6.308 million will boost our capacity to bring housing back into communities and help to address the housing challenge.” 

    The Highland Council has in recent years sought flexibility to the Council to utilise income from council tax on second homes to support the revenue budget. 

    Scottish Government granted flexibility to the Council to utilise income in 2022/23 and 2023/24 to support the revenue budget, rather than for affordable housing purposes, given the financial challenges being faced by the Council at that time. That flexibility was however conditional on repayment of income into the Landbank Fund within 3 years of the flexibility being exercised.  

    Through its budget plans, the Council has made provision for repayment back into the Landbank Fund, this through a combination of budget provision made in 2024/25 and reserves earmarked for this purpose.  In total, the sum due to be paid back is £6.308m covering the two financial years.

    24 Oct 2024

    MIL OSI United Kingdom –

  • MIL-OSI China: Xi says China to take lead in establishing Global South think tank cooperation alliance

    Source: People’s Republic of China – State Council News

    Xi says China to take lead in establishing Global South think tank cooperation alliance

    KAZAN, Russia, Oct. 24 — Chinese President Xi Jinping said Thursday that China will take the lead to set up a Global South think tank cooperation alliance.

    Xi made the remarks when addressing the “BRICS Plus” leaders’ dialogue.

    MIL OSI China News –

  • MIL-OSI China: Xi calls on ‘BRICS Plus’ countries to be a driving force for mutual learning among civilizations

    Source: People’s Republic of China – State Council News

    Xi calls on ‘BRICS Plus’ countries to be a driving force for mutual learning among civilizations

    KAZAN, Russia, Oct. 24 — Chinese President Xi Jinping said Thursday that “BRICS Plus” countries should be a driving force for mutual learning among civilizations.

    Xi made the remarks when addressing the “BRICS Plus” leaders’ dialogue.

    He also called on “BRICS Plus” countries to enhance communication and dialogue, and support each other in pursuing modernization paths suited to their own national conditions.

    MIL OSI China News –

  • MIL-OSI China: Xi says ‘BRICS Plus’ countries should be a stabilizing force for peace

    Source: People’s Republic of China – State Council News

    KAZAN, Russia, Oct. 24 — “BRICS Plus” countries should be a stabilizing force for peace, strengthen global security governance, and explore ways to address both the symptoms and root causes of hotspot issues, Chinese President Xi Jinping said on Thursday.

    Xi made the remarks when attending the BRICS Plus leaders’ dialogue on Thursday.

    MIL OSI China News –

  • MIL-OSI China: Xi says ‘BRICS Plus’ countries should be central pillar of strength for common development

    Source: People’s Republic of China – State Council News

    Xi says ‘BRICS Plus’ countries should be central pillar of strength for common development

    KAZAN, Russia, Oct. 24 — Chinese President Xi Jinping said Thursday that BRICS Plus countries should be a central pillar of strength for common development.

    Xi made the remarks while addressing the “BRICS Plus” leaders’ dialogue.

    He said that development has contributed to the rise and thriving of the Global South. “BRICS Plus” countries should actively participate in and lead the reform of the global economic governance system and advocate for placing development at the core of the international trade and economic agenda.

    MIL OSI China News –

  • MIL-OSI: Donegal Group Inc. Announces Third Quarter and First Nine Months of 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    MARIETTA, Pa., Oct. 24, 2024 (GLOBE NEWSWIRE) — Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the third quarter and first nine months of 2024.

    Significant Items for third quarter of 2024 (all comparisons to third quarter of 2023):

    • Net income of $16.8 million, or 51 cents per diluted Class A share, compared to net loss of $0.8 million, or 2 cents per Class A share
    • Net premiums earned increased 6.0% to $238.0 million
    • Net premiums written1 increased 5.9% to $232.2 million
    • Combined ratio of 96.4%, compared to 104.5%
    • Net income included after-tax net investment gains of $1.5 million, or 5 cents per diluted Class A share, compared to after-tax net investment losses of $1.0 million, or 3 cents per Class A share
    • Book value per share of $15.22 at September 30, 2024, compared to $14.26

    Financial Summary

      Three Months Ended September 30,   Nine Months Ended September 30,
        2024       2023     % Change     2024       2023     % Change
      (dollars in thousands, except per share amounts)
                           
    Income Statement Data                      
    Net premiums earned $ 237,957     $ 224,393     6.0 %   $ 700,017     $ 655,886     6.7 %
    Investment income, net   10,827       10,536     2.8       32,868       30,143     9.0  
    Net investment gains (losses)   1,876       (1,243 )   NM2     4,725       930     408.1  
    Total revenues   251,738       233,928     7.6       739,651       687,870     7.5  
    Net income (loss)   16,752       (805 )   NM      26,860       6,396     319.9  
    Non-GAAP operating income1   15,270       176     NM      23,127       5,661     308.5  
    Annualized return on average equity   13.4 %     -0.7 %   14.1 pts     7.2 %     1.8 %   5.4 pts
                           
    Per Share Data                      
    Net income (loss) – Class A (diluted) $ 0.51     $ (0.02 )   NM    $ 0.81     $ 0.20     305.0 %
    Net income (loss) – Class B   0.46       (0.02 )   NM      0.74       0.17     335.3  
    Non-GAAP operating income – Class A (diluted)   0.46       0.01     NM      0.70       0.17     311.8  
    Non-GAAP operating income – Class B   0.42       –     NM      0.63       0.15     320.0  
    Book value   15.22       14.26     6.7 %     15.22       14.26     6.7  
                           

    1The “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”).

    2Not meaningful.


    Management Commentary

    “We are pleased that many of the strategic initiatives we implemented in recent years contributed to significant improvement in our financial results for the third quarter of 2024,” said Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc.

    “With the exit from commercial lines markets in Georgia and Alabama essentially completed at the end of the second quarter of 2024, solid new business writings, rate achievement and retention levels led to a 6.4% increase in commercial lines net premiums written for the third quarter of 2024. Our personal lines net premiums written growth rate for the third quarter was 5.4%, primarily attributable to strong rate increases and policy retention that were partially offset by intentional strategic actions to slow growth and further improve profitability.

    “Despite higher-than-average weather-related losses during the quarter, primarily attributable to Hurricane Helene in late September, our combined ratio improved significantly to 96.4%, compared to 104.5% for the prior-year quarter. Our core loss ratios improved across all of our major lines of business. We attribute that improvement to the favorable impact of numerous ongoing underwriting initiatives and higher net premiums earned from renewal rate increases that we implemented over the past two years.”

    Mr, Burke concluded, “We have growing confidence that the continuing execution of our strategies will deliver sustained excellent financial performance.”

    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 September 30,   Nine Months Ended September 30,
        2024     2023   % Change     2024     2023   % Change
      (dollars in thousands)
                           
    Net Premiums Earned                      
    Commercial lines $ 136,401   $ 135,432   0.7 %   $ 402,982   $ 399,427   0.9 %
    Personal lines   101,556     88,961   14.2       297,035     256,460   15.8  
    Total net premiums earned $ 237,957   $ 224,393   6.0 %   $ 700,017   $ 655,887   6.7 %
                           
    Net Premiums Written                      
    Commercial lines:                      
    Automobile $ 41,464   $ 37,535   10.5 %   $ 142,067   $ 134,853   5.3 %
    Workers’ compensation   23,934     24,371   -1.8       82,599     85,315   -3.2  
    Commercial multi-peril   50,155     44,949   11.6       163,528     147,622   10.8  
    Other   10,548     11,639   -9.4       35,649     39,913   -10.7  
    Total commercial lines   126,101     118,494   6.4       423,843     407,703   4.0  
    Personal lines:                      
    Automobile   65,150     58,038   12.3       188,958     161,348   17.1  
    Homeowners   38,288     39,633   -3.4       109,655     105,035   4.4  
    Other   2,669     3,021   -11.7       8,383     8,917   -6.0  
    Total personal lines   106,107     100,692   5.4       306,996     275,300   11.5  
    Total net premiums written $ 232,208   $ 219,186   5.9 %   $ 730,839   $ 683,003   7.0 %
                           
                           

    Net Premiums Written

    The 5.9% increase in net premiums written for the third quarter of 2024 compared to the third quarter of 2023, as shown in the table above, represents the combination of 6.4% growth in commercial lines net premiums written and 5.4% growth in personal lines net premiums written. The $13.0 million increase in net premiums written for the third quarter of 2024 compared to the third quarter of 2023 included:

    • Commercial Lines: $7.6 million increase that we attribute primarily to new business writings, strong premium retention, and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in states in which we are executing ongoing profit improvement initiatives as part of our state-specific strategies.
    • Personal Lines: $5.4 million increase that we attribute primarily to a continuation of renewal premium rate increases and strong policy retention, offset partially by planned attrition due to non-renewal actions.

    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 and nine months ended September 30, 2024 and 2023:

      Three Months Ended   Nine Months Ended
      September 30,   September 30,
      2024     2023     2024     2023  
                   
    GAAP Combined Ratios (Total Lines)              
    Loss ratio – core losses 50.1 %   56.7 %   54.5 %   56.0 %
    Loss ratio – weather-related losses 10.3     11.5     8.6     9.1  
    Loss ratio – large fire losses 3.7     4.9     5.2     5.3  
    Loss ratio – net prior-year reserve development -2.6     -3.3     -2.2     -2.4  
    Loss ratio 61.5     69.8     66.1     68.0  
    Expense ratio 34.5     34.1     34.0     34.9  
    Dividend ratio 0.4     0.6     0.5     0.6  
    Combined ratio 96.4 %   104.5 %   100.6 %   103.5 %
                   
    Statutory Combined Ratios              
    Commercial lines:              
    Automobile 101.5 %   86.5 %   98.2 %   94.8 %
    Workers’ compensation 84.7     97.7     104.1     93.1  
    Commercial multi-peril 88.4     114.8     100.4     113.8  
    Other 59.4     76.2     78.4     82.7  
    Total commercial lines 89.8     97.5     98.6     100.2  
    Personal lines:              
    Automobile 97.8     109.8     97.8     106.1  
    Homeowners 116.8     128.9     107.5     111.2  
    Other 102.2     46.4     97.2     81.3  
    Total personal lines 104.7     119.4     101.2     107.2  
    Total lines 96.0 %   105.2 %   99.7 %   102.9 %
                   
                   

    Loss Ratio

    For the third quarter of 2024, the loss ratio decreased to 61.5%, compared to 69.8% for the third quarter of 2023. For the commercial lines segment, the core loss ratio of 48.5% for the third quarter of 2024 decreased from 53.7% for the third quarter of 2023, due largely to lower severity of large casualty losses. For the personal lines segment, the core loss ratio of 52.5% for the third quarter of 2024 decreased from 61.8% for the third quarter of 2023, due largely to the favorable impact of premium rate increases on net premiums earned for that segment. Core loss ratios in both segments improved compared to the respective ratios for the first half of 2024.

    Weather-related losses were $24.4 million, or 10.3 percentage points of the loss ratio, for the third quarter of 2024, compared to $25.7 million, or 11.5 percentage points of the loss ratio, for the third quarter of 2023. Weather-related loss activity for the third quarter of 2024 was higher than our previous five-year average of $18.8 million, or 9.4 percentage points of the loss ratio, for third-quarter weather-related losses. Our insurance subsidiaries incurred $6.0 million in net losses from Hurricane Helene in September 2024.

    Large fire losses, which we define as individual fire losses in excess of $50,000, for the third quarter of 2024 were $8.8 million, or 3.7 percentage points of the loss ratio. That amount was lower than large fire losses of $11.0 million, or 4.9 percentage points of the loss ratio, for the third quarter of 2023. We experienced a decrease in commercial property fire losses compared to the prior-year quarter.

    Net favorable development of reserves for losses incurred in prior accident years of $6.2 million decreased the loss ratio for the third quarter of 2024 by 2.6 percentage points, compared to $7.3 million that decreased the loss ratio for the third quarter of 2023 by 3.3 percentage points. Our insurance subsidiaries experienced favorable development primarily in the commercial multi-peril and other commercial lines of business.

    Expense Ratio

    The expense ratio was 34.5% for the third quarter of 2024, compared to 34.1% for the third quarter of 2023. The modest increase in the expense ratio primarily reflected 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. This increase was offset partially by 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. We expect the impact from allocated costs from Donegal Mutual Insurance Company to our insurance subsidiaries related to the ongoing systems modernization project will peak at approximately 1.3 percentage points of the expense ratio for the full year of 2024 before beginning to subside gradually in 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 96.2% of our consolidated investment portfolio in diversified, highly rated and marketable fixed-maturity securities at September 30, 2024.

      September 30, 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 $ 173,663     12.7 %   $ 176,991     13.3 %
    Obligations of states and political subdivisions   413,040     30.1       415,280     31.3  
    Corporate securities   427,372     31.2       399,640     30.1  
    Mortgage-backed securities   304,911     22.3       278,260     21.0  
    Allowance for expected credit losses   (1,483 )   -0.1       (1,326 )   -0.1  
    Total fixed maturities   1,317,503     96.2       1,268,845     95.6  
    Equity securities, at fair value   35,957     2.6       25,903     2.0  
    Short-term investments, at cost   15,805     1.2       32,306     2.4  
    Total investments $ 1,369,265     100.0 %   $ 1,327,054     100.0 %
                   
    Average investment yield   3.3 %         3.1 %    
    Average tax-equivalent investment yield   3.3 %         3.2 %    
    Average fixed-maturity duration (years)   5.1           4.3      
                   
                   

    Net investment income of $10.8 million for the third quarter of 2024 increased modestly compared to $10.5 million for the third quarter of 2023. The increase in net investment income primarily reflected an increase in average investment yield relative to the prior-year third quarter.

    Net investment gains of $1.9 million for the third quarter of 2024 were primarily related to unrealized gains in the fair value of equity securities held at September 30, 2024. Net investment losses of $1.2 million for the third quarter of 2023 were primarily related to unrealized losses in the fair value of equity securities held at September 30, 2023.

    Our book value per share was $15.22 at September 30, 2024, compared to $14.39 at December 31, 2023, with the increase related to net income as well as $11.9 million of after-tax unrealized gains within our available-for-sale fixed-maturity portfolio during 2024 that increased our book value by $0.37 per share, offset partially by cash dividends declared.

    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 September 30,   Nine Months Ended September 30,
        2024       2023     % Change     2024     2023   % Change
      (dollars in thousands)
                           
    Reconciliation of Net Premiums                      
    Earned to Net Premiums Written                      
    Net premiums earned $ 237,957     $ 224,393     6.0 %   $ 700,017   $ 655,886   6.7 %
    Change in net unearned premiums   (5,749 )     (5,207 )   10.4       30,822     27,117   13.7  
    Net premiums written $ 232,208     $ 219,186     5.9 %   $ 730,839   $ 683,003   7.0 %
                           
                           

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

      Three Months Ended September 30,   Nine Months Ended September 30,
        2024       2023     % Change     2024       2023     % Change
      (dollars in thousands, except per share amounts)
                           
    Reconciliation of Net Income (Loss)                      
    to Non-GAAP Operating Income                      
    Net income (loss) $ 16,752     $ (805 )   NM   $ 26,860     $ 6,396     319.9 %
    Investment (gains) losses (after tax)   (1,482 )     981     NM     (3,733 )     (735 )   407.9  
    Non-GAAP operating income $ 15,270     $ 176     NM   $ 23,127     $ 5,661     308.5 %
                           
    Per Share Reconciliation of Net Income (Loss)                      
    to Non-GAAP Operating Income                      
    Net income (loss) – Class A (diluted) $ 0.51     $ (0.02 )   NM   $ 0.81     $ 0.20     305.0 %
    Investment (gains) losses (after tax)   (0.05 )     0.03     NM     (0.11 )     (0.03 )   266.7  
    Non-GAAP operating income – Class A $ 0.46     $ 0.01     NM   $ 0.70     $ 0.17     311.8 %
                           
    Net income (loss) – Class B $ 0.46     $ (0.02 )   NM   $ 0.74     $ 0.17     335.3 %
    Investment (gains) losses (after tax)   (0.04 )     0.02     NM     (0.11 )     (0.02 )   450.0  
    Non-GAAP operating income – Class B $ 0.42     $ –     NM   $ 0.63     $ 0.15     320.0 %
                           
                           

    The statutory combined ratio is a non-GAAP standard 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 October 17, 2024, we declared a regular quarterly cash dividend of $0.1725 per share for our Class A common stock and $0.155 per share for our Class B common stock, which are payable on November 15, 2024 to stockholders of record as of the close of business on November 1, 2024.

    Pre-Recorded Webcast

    At approximately 8:30 am ET on Thursday, October 24, 2024, we will make available in the Investors section of our website a pre-recorded audio webcast featuring management commentary on our quarterly 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 delivering a superior experience to our agents and customers.

    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 September 30,
            2024     2023  
               
    Net premiums earned $ 237,957   $ 224,393  
    Investment income, net of expenses   10,827     10,536  
    Net investment gains (losses)   1,876     (1,243 )
    Lease income     77     86  
    Installment payment fees   1,001     156  
      Total revenues   251,738     233,928  
               
    Net losses and loss expenses   146,426     156,683  
    Amortization of deferred acquisition costs   40,200     39,332  
    Other underwriting expenses   41,827     37,155  
    Policyholder dividends   1,007     1,399  
    Interest     367     156  
    Other expenses, net     1,499     208  
      Total expenses   231,326     234,933  
               
    Income (loss) before income tax expense (benefit)   20,412     (1,005 )
    Income tax expense (benefit)   3,660     (200 )
               
    Net income (loss)   $ 16,752   $ (805 )
               
    Net income (loss) per common share:      
      Class A – basic and diluted $ 0.51   $ (0.02 )
      Class B – basic and diluted $ 0.46   $ (0.02 )
               
    Supplementary Financial Analysts’ Data      
               
    Weighted-average number of shares      
      outstanding:      
      Class A – basic   27,978,435     27,594,973  
      Class A – diluted   28,058,399     27,665,293  
      Class B – basic and diluted   5,576,775     5,576,775  
               
    Net premiums written $ 232,208   $ 219,186  
               
    Book value per common share      
      at end of period $ 15.22   $ 14.26  
               
    Donegal Group Inc.
    Consolidated Statements of Income
    (unaudited; in thousands, except share data)
               
          Nine Months Ended September 30,
            2024     2023
               
    Net premiums earned $ 700,017   $ 655,886
    Investment income, net of expenses   32,868     30,143
    Net investment gains   4,725     930
    Lease income     237     262
    Installment payment fees   1,804     649
      Total revenues   739,651     687,870
               
    Net losses and loss expenses   462,683     446,024
    Amortization of deferred acquisition costs   120,458     115,065
    Other underwriting expenses   117,604     113,715
    Policyholder dividends   3,248     4,088
    Interest     677     464
    Other expenses, net     2,309     969
      Total expenses   706,979     680,325
               
    Income before income tax expense   32,672     7,545
    Income tax expense     5,812     1,149
               
    Net income   $ 26,860   $ 6,396
               
    Net income per common share:      
      Class A – basic $ 0.82   $ 0.20
      Class A – diluted $ 0.81   $ 0.20
      Class B – basic and diluted $ 0.74   $ 0.17
               
    Supplementary Financial Analysts’ Data      
               
    Weighted-average number of shares outstanding:      
      Class A – basic   27,878,552     27,390,883
      Class A – diluted   27,916,904     27,507,706
      Class B – basic and diluted   5,576,775     5,576,775
               
    Net premiums written $ 730,839   $ 683,003
               
    Book value per common share      
      at end of period $ 15.22   $ 14.26
     
    Donegal Group Inc.
    Consolidated Balance Sheets
    (in thousands)
               
          September 30,   December 31,
            2024       2023  
          (unaudited)    
               
    ASSETS
    Investments:      
      Fixed maturities:      
        Held to maturity, at amortized cost $ 694,663     $ 679,497  
        Available for sale, at fair value   622,840       589,348  
      Equity securities, at fair value   35,957       25,903  
      Short-term investments, at cost   15,805       32,306  
        Total investments   1,369,265       1,327,054  
    Cash   28,651       23,792  
    Premiums receivable   194,254       179,592  
    Reinsurance receivable   434,078       441,431  
    Deferred policy acquisition costs   78,484       75,043  
    Prepaid reinsurance premiums   185,364       168,724  
    Other assets   56,030       50,658  
        Total assets $ 2,346,126     $ 2,266,294  
               
    LIABILITIES AND STOCKHOLDERS’ EQUITY
    Liabilities:      
      Losses and loss expenses $ 1,134,853     $ 1,126,157  
      Unearned premiums   646,870       599,411  
      Accrued expenses   2,987       3,947  
      Borrowings under lines of credit   35,000       35,000  
      Other liabilities   13,046       22,034  
        Total liabilities   1,832,756       1,786,549  
    Stockholders’ equity:      
      Class A common stock   312       308  
      Class B common stock   56       56  
      Additional paid-in capital   342,186       335,694  
      Accumulated other comprehensive loss   (20,951 )     (32,882 )
      Retained earnings   232,993       217,795  
      Treasury stock   (41,226 )     (41,226 )
        Total stockholders’ equity   513,370       479,745  
        Total liabilities and stockholders’ equity $ 2,346,126     $ 2,266,294  
               

    The MIL Network –

  • MIL-OSI Europe: Answer to a written question – Urgent action needed to reduce food waste in the EU – P-001923/2024(ASW)

    Source: European Parliament

    1. The Commission has adopted a legislative proposal[1] setting food waste reduction targets to be achieved by Member States by 2030. The Commission will continue to support Member States in reducing food waste and reaching the targets when adopted, through the sharing of best practices in the EU Platform on Food Losses and Food Waste[2], offering financial support via Single Market Programme action grants for Member States to monitor their food waste and to implement food waste prevention programmes, as well as developing tools and guidance to reduce consumer food waste[3].

    2. The Commission welcomes all effective solutions and innovative technologies that contribute to the global Sustainable Development Goal Target 12.3 ‘Halving food waste and raising climate ambition’[4] and help curb food waste in all sectors of the food supply chain, as long as they do not compromise food safety and animal health. Best practices, including those from the dairy and agricultural sector, are shared in the above-mentioned Platform or its dedicated subgroups. Through Horizon Europe, the Commission supports, for example, the development of sustainable and smart packaging solutions to extend shelf-life of packaged products, and circular solutions to empower and engage all actors in food systems.

    • [1] Proposal for a directive of the European Parliament and of the Council amending Directive 2008/98/EC on waste (COM(2023) 420 final).
    • [2] EU Platform on Food Losses and Food Waste: https://food.ec.europa.eu/food-safety/food-waste/eu-actions-against-food-waste/eu-platform-food-losses-and-food-waste_en
    • [3] Toolkit to reduce consumer food waste: https://knowledge4policy.ec.europa.eu/bioeconomy/reduce-food-waste_en
    • [4] https://www.unep.org/news-and-stories/story/halving-food-waste-and-raising-climate-ambition-sdg-123-and-paris-agreement
    Last updated: 24 October 2024

    MIL OSI Europe News –

  • MIL-OSI Europe: Answer to a written question – Sicily – suppressed report on illegal slaughtering of animals and organised crime – E-001573/2024(ASW)

    Source: European Parliament

    The Commission has not been aware of such ‘regional authority’s suppressed report on the common agricultural policy fund fraud’ and cannot thus currently comment on any related misuse of funds.

    When the Commission becomes aware of any suspected cases of fraud, corruption or any other illegal activity affecting the EU budget, it informs the European Anti-Fraud Office (OLAF).

    OLAF analyses information of potential investigative interest to determine whether there are sufficient grounds to open an investigation.

    OLAF can carry out administrative investigations when there are suspicions of fraud, corruption or other illegal activities against the financial interests of the EU.

    In addition, in case of criminal conduct in respect of which the European Public Prosecutor’s Office (EPPO) could exercise its competence, the case is reported to the EPPO, who can initiate a criminal investigation.

    From a food safety perspective, the current EU legal framework is considered fit for purpose. Its implementation and enforcement remain under the responsibility of the Member States.

    Italian authorities have neither informed the Commission nor other Member States within the Alert and Cooperation Network (ACN)[1] about the illegal slaughter of animals or the sale of meat unfit for human consumption in relation with the situation described.

    This absence of communication would conform with the EU legislation if the issue remains strictly limited to the Italian territory.

    • [1] https://food.ec.europa.eu/safety/acn_en
    Last updated: 24 October 2024

    MIL OSI Europe News –

  • MIL-OSI Europe: Answer to a written question – The ‘Rwanda plan’ as an innovative solution for tackling illegal migration – E-001440/2024(ASW)

    Source: European Parliament

    The Commission welcomes constructive approaches to achieve a fair and stable legal framework on migration provided that they fully uphold the respect for fundamental rights and EU and international law, while achieving efficient asylum and return procedures in line with the adopted Pact on Migration and Asylum[1].

    The Commission will continue to support reflections on innovative strategies which contribute to acceptable and durable solutions for migrant and for partner countries as long as they are rooted in EU and international law.

    The EU pursues comprehensive, balanced and tailor-made partnerships with third countries where migration should be built in as one of the core issues, and works with reliable stakeholders with whom it shares interests.

    • [1] https://home-affairs.ec.europa.eu/policies/migration-and-asylum/pact-migration-and-asylum/legislative-files-nutshell_en
    Last updated: 24 October 2024

    MIL OSI Europe News –

  • MIL-OSI Europe: Written question – How to safeguard and strengthen the partnership with Morocco – E-002131/2024

    Source: European Parliament

    17.10.2024

    Question for written answer  E-002131/2024
    to the Commission
    Rule 144
    Thierry Mariani (PfE)

    In response to the Court of Justice of the European Union (CJEU) decision on Friday, 4 October invalidating the agreements between the European Union and Morocco, Morocco has reiterated its constant position of not subscribing to any agreement or legal instrument that does not respect its territorial integrity and national unity, stressing the solidity and importance of the strategic relations between the European Union and Morocco.

    • 1.In this context, what action does the Commission intend to take to safeguard and strengthen this historic and essential partnership, particularly in respect of the economy, energy and migration, while respecting Morocco’s sovereignty?
    • 2.How does the Commission intend to support a pragmatic approach promoting stability and cooperation in the region, while ensuring that the CJEU’s legal decisions do not get in the way of Euro-Moroccan relations?
    • 3.Lastly, what initiatives does the Commission intend to take to strengthen dialogue with Morocco and ensure that the mutual interests of the two partners, particularly in terms of security and development, are safeguarded and furthered?

    Submitted: 17.10.2024

    Last updated: 24 October 2024

    MIL OSI Europe News –

  • MIL-OSI Europe: Written question – Transposition of Directive (EU) 2016/343 in Italy and freedom of the press – E-002129/2024

    Source: European Parliament

    17.10.2024

    Question for written answer  E-002129/2024
    to the Commission
    Rule 144
    Valentina Palmisano (The Left), Carolina Morace (The Left), Dario Tamburrano (The Left), Mario Furore (The Left), Pasquale Tridico (The Left), Danilo Della Valle (The Left), Gaetano Pedulla’ (The Left), Giuseppe Antoci (The Left)

    The Italian Government has recently tabled a draft legislative decree transposing Directive (EU) 2016/343 on the strengthening of certain aspects of the presumption of innocence and of the right to be present at the trial in criminal proceedings, which bans the publication of pre-trial orders until such time as the preliminary investigation or preliminary hearing has concluded.

    Recital 16 of Directive (EU) 2016/343 prohibits authorities from presenting a suspect as guilty before a verdict, but does not ban the publication of court documents; Recital 18 thereof recognises the need to disclose information about criminal proceedings for the purposes of the public interest or safety; and Article 11 of the Charter of Fundamental Rights enshrines freedom of expression and information.

    This new piece of legislation places disproportionate restrictions on press freedom by limiting the ability of journalists to inform the public about proceedings in the public interest, in breach of Article 6 of Directive (EU) 2016/343, which states that any restrictions must be proportionate and justified, and it remains to be seen whether a journalist could be punished for publishing a pre-trial order or an except or summary of one.

    Can the Commission answer the following questions:

    • 1.Does the Commission consider the ban on the publication of pre-trial orders to be compatible with the principles of proportionality set out in Directive (EU) 2016/343 and with the right to press freedom enshrined in Article 11 of the Charter of Fundamental Rights?
    • 2.What does the Commission intend to do ensure that the transposition of the directive does not give rise to unjustified restrictions on freedom of information?

    Submitted: 17.10.2024

    Last updated: 24 October 2024

    MIL OSI Europe News –