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  • MIL-OSI USA: Cassidy Delivers Floor Speech in Support of RFK, Jr. to be HHS Secretary

    US Senate News:

    Source: United States Senator for Louisiana Bill Cassidy

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    WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) spoke on the U.S. Senate floor today to detail his decision to vote for Robert F. Kennedy, Jr. to serve as U.S. Secretary of the Department of Health and Human Services. Cassidy delivered the speech after voting to advance Kennedy’s nomination in the U.S. Senate Finance Committee. The nomination now awaits a full vote in the U.S. Senate.
    Cassidy’s speech as prepared for delivery can be found below:
    Mr. President, I’d like to make a statement regarding my vote in Committee on behalf of Robert F. Kennedy to be the Secretary of HHS. First, I thank everyone who has contacted me over the last few days. Almost all have been respectful and seek the best for our country. And I’ve been contacted by text, by phone, by email. And if I did not respond to anyone, it was not to be rude. It’s just I was getting hundreds of messages a day personally and thousands through the office. And I just physically could not.
    Now Mr. President, believe it or not, of these hundreds of people calling me or contacting me, however they did, many of them disagreed with each other. Diametrically, three dimensionally, they disagreed. But the unifying factor is that they all desire the best for our country, even though they differ from each other so much. And maybe that kind of frames my feelings about this nomination.
    For context, before entering politics, before ever thinking running for political office, I practiced medicine for 30 years in a public hospital for the uninsured. Caring for those who otherwise would not have been able to afford the access to the care that I provided. After seeing patients die from vaccine preventable diseases, I dedicated much of my time to vaccine research and immunization programs. Personally witnessing the safety monitoring, and the effectiveness of immunization. But simply, vaccines save lives.
    This is the context that informed me when considering Robert F. Kennedy Jr as the nominee to be Secretary of the Department of Health and Human Services.
    It was a decision I studied exhaustively. I took very seriously. As I said I would, I spoke with Mr. Kennedy not once, but multiple times over the weekend, including this morning. We had in-depth conversations about the medical literature and the science behind the safety of vaccines. He referred me to studies and people. I reviewed them and spoke to those whom he mentioned I should speak to.
    Now, the most notable opponents of Mr. Kennedy were pediatricians on the front lines of our children’s health who regularly have to combat misinformation; combating vaccine skepticism with correct information—correct information that comes from their education, training and experience as physicians. They are aware of the falling vaccine rates and the inevitability of increasing hospitalizations and deaths of children from vaccine-preventable diseases. They are aware that children are now contracting diseases that they would not have contracted if the children were vaccinated.
    I heard from others impassioned about the need to address chemicals in our food, and a belief that we are victims of large, impersonal forces maximizing profits while sacrificing our health. There is evidence for that. Although food safety is principally a USDA concern, I strongly agree that this is an issue society must address.
    Other RFK supporters are concerned regarding environmental risk. They fear these risks are being ignored by authorities. Mr. Kennedy’s history of environmental activism motivates their support. I pointed out that the Environmental Protection Agency monitors this, not the Department of Health and Human Services but they still feel that he can make a difference.
    So, as I looked how to resolve this, I returned to where I began. Would it be possible to have Mr. Kennedy collaborate in helping public health agencies re-earn the trust of the American people? 
    Regarding vaccines, Mr. Kennedy has been insistent that he just wants good science and to ensure safety. But on this topic, the science is good, the science is credible. Vaccines save lives. They are safe. They do not cause autism. There are multiple studies that show this. They are a crucial part of our nation’s public health response.
    But as someone who has discussed immunizations with thousands of people, I do recognize that many mothers need reassurance that the vaccine their child is receiving is necessary, effective, and most of all safe. 
    While I am aligned with Mr. Kennedy as regards to ultra-processed foods, reforming NIH, taking on chronic disease—once more, it still leaves vaccines.
    Now, Mr. Kennedy and the administration reached out seeking to reassure me regarding their commitment to protecting the public health benefit of vaccination.
    To this end, Mr. Kennedy and the administration committed that he and I will have an unprecedently close collaborative working relationship if he is confirmed. We will meet or speak multiple times a month. This collaboration will allow us to work well together and therefore to be more effective.
    Mr. Kennedy has asked for my input into hiring decisions at HHS, beyond Senate-confirmed positions. This aspect of our collaboration will allow us to represent all sides of those folks that were contacting me this weekend. 
    He has also committed that he would work within the current vaccine approval and safety monitoring systems, and not establish parallel systems. If confirmed, he will maintain the Centers for Disease Control and Prevention’s Advisory Committee on Immunization Practices without changes. CDC will not remove statements on their website pointing out that vaccines do not cause autism. Mr. Kennedy and the administration also committed that this administration will not use the subversive techniques employed under the Biden administration, like sue and settle, to change policies enacted by Congress without first going through Congress.
    Mr. Kennedy and the administration committed to a strong role of Congress. Aside from us meeting regularly, he will come before the Committee on a quarterly basis, if requested. He committed that the HELP Committee Chair, whether it’s me or someone else, may choose a representative on any board or commission formed to review vaccine safety.
    If he is confirmed, HHS will provide a 30-day notice to the HELP Committee if the agency seeks to make changes to any of our federal vaccine safety monitoring programs, and HELP Committee will have the option to call a hearing to further review. 
    These commitments, and my expectation that we can have a great relationship to make America healthy again, is the basis of my support. He will be Secretary, but I believe he will also be a partner in working for this end. 
    If Mr. Kennedy is confirmed, I will use my authority as Chairman of the Senate Committee with oversight of HHS to rebuff any attempts to remove the public’s access to life-saving vaccines without ironclad, causational scientific evidence that can be defended before the mainstream scientific community and before Congress. I will carefully watch for any effort to wrongfully sow public fear about vaccines between confusing references of coincidence and anecdote. 
    But my support is built on assurances that this will not have to be a concern and that he and I can work together to build an agenda to make America healthy again.
    We need a leader at HHS who will guide President Trump’s agenda to Make America Healthy Again. Based on Mr. Kennedy’s assurances on vaccines and his platform to positively influence Americans’ health, it is my consideration that he will get this done. 
    As I’ve said, it’s been a long, intense process. But I’ve assessed it as I would assess a patient as a physician. Ultimately, restoring trust in our public health institutions is too important and I think Mr. Kennedy can get that done. And as Chairman of the Senate committee with oversight authority of HHS, I will do my best to make sure that is what we accomplish.
    I want Mr. Kennedy to succeed in making America healthy again. His success will be tied to the health of our nation. He has the opportunity to address the most pertinent issues affecting Americans’ health. We also need to reform our health institutions like FDA and NIH. Those, as already been indicated, are my priorities as Chairman of HELP Committee. I look forward to his support in accomplishing this.
    If confirmed, I look forward to working together with Mr. Kennedy to achieve President Trump’s mission of improving the health of all Americans.

    MIL OSI USA News –

  • MIL-OSI: Great Elm Group Expands Real Estate Enterprise Launching Monomoy Construction Services

    Source: GlobeNewswire (MIL-OSI)

    PALM BEACH GARDENS, Fla., Feb. 04, 2025 (GLOBE NEWSWIRE) — Great Elm Group, Inc. (“we,” “us,” “our,” “GEG” or “Great Elm,”) (NASDAQ: GEG), an alternative asset manager, today announced the formation of Monomoy Construction Services, LLC (“MCS”) upon acquisition of Greenfield CRE’s (“Greenfield’s”) assets. The result will combine the construction talent from Greenfield with civil engineering and land planning talent at Monomoy BTS Construction Management to form MCS, which will operate adjacent to Monomoy’s industrial asset management business Monomoy CRE, LLC (“MCRE”) (together with MCS, “Monomoy”), to provide an integrated business model in the industrial real estate market. With this acquisition, Monomoy will offer a full-service suite of project management, procurement, construction management, asset management, market analysis and feasibility for its industrial real estate tenants.

    Strategic Considerations

    The transaction is part of GEG’s strategy to grow its existing real estate franchise by bringing Greenfield, Monomoy’s existing general contractor partner, in-house. Greenfield shares a seasoned relationship with Monomoy and has detailed knowledge of Monomoy’s development projects and tenant expectations. This unique opportunity enhances the overall Monomoy enterprise in procurement and construction management expertise, enabling the business to propel its focus on construction opportunities for its existing industrial tenant base. The acquisition enables increased fee revenue from construction consulting and build-to-suit projects, while lowering in-house execution costs, allowing competitive pricing to further drive business growth.

    Management Commentary

    Jason Reese, Executive Chairman of GEG, said, “The Monomoy Construction Services transaction represents a successful outcome for Great Elm’s shareholders. This marks the latest in a series of strategic actions taken to enhance our focus and capabilities across our industrial real estate platform.”

    Chris Macri, President of MCRE, stated, “We welcome the Greenfield team as trusted colleagues with whom we have worked extensively. As a combined platform, we intend to pursue a robust pipeline of construction opportunities for our tenants, leading the way for creative real estate solutions in the industrial real estate and development market.”

    Key Hire

    MCS hires Brandon Finomore, the former President of Greenfield CRE, to lead its construction services business. Mr. Finomore joins Monomoy with over 20 years of real estate development expertise, managing and directing projects across the US ranging from $500,000 to $30,000,000. Licensed as a general contractor with the ability to run projects nationally, Mr. Finomore will work alongside the President of Monomoy, Chris Macri, to carry out Monomoy’s strategic construction initiatives. As part of the transaction, GEG has awarded 276,182 restricted shares of GEG stock to Mr. Finomore that will vest on the 5th year anniversary of the grant date. These restricted shares were granted as a material inducement to Mr. Finomore’s entry into employment with MCS, an affiliate of GEG, in accordance with Nasdaq Listing Rule 5635(c)(4).

    About Great Elm Group, Inc.

    Great Elm Group, Inc. (NASDAQ: GEG) is a publicly-traded, alternative asset manager focused on growing a scalable and diversified portfolio of long-duration and permanent capital vehicles across credit, real estate, specialty finance, and other alternative strategies. Great Elm Group, Inc. and its subsidiaries currently manage Great Elm Capital Corp., a publicly-traded business development company, and Monomoy Properties REIT, LLC, an industrial-focused real estate investment trust, in addition to other investments. Great Elm Group, Inc.’s website can be found at www.greatelmgroup.com.

    About Monomoy CRE, LLC & Monomoy Construction Services, LLC

    Monomoy CRE, LLC (“MCRE”) and Monomoy Construction Services, LLC (“MCS”), subsidiaries of GEG (together “Monomoy”) provide a full-service real estate services enterprise that provide solutions for our tenants through property management, real estate investments, construction and development. Monomoy invests in build-to-suit and existing Class A, B, and C single-tenant industrial properties across the US, focusing on equipment rental, building supply, materials, manufacturing, warehousing, distribution, and logistics, while specifically targeting critical markets with economic growth.

    About Greenfield CRE

    Greenfield CRE is an innovator in the commercial real estate industry, with a focus on development, construction management, property management, and acquisitions across the United States. Greenfield provides third-party development services to select clients focusing on site selection, building planning, market review, construction management, and advisory services. Greenfield has a nationwide coverage area and has a specialty focus on the industrial outdoor storage (IOS) commercial real estate space.

    Cautionary Statement Regarding Forward-Looking Statements

    Statements in this press release that are “forward-looking” statements, including statements regarding expected growth, profitability, acquisition opportunities and outlook involve risks and uncertainties that may individually or collectively impact the matters described herein. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made and represent GEG’s assumptions and expectations in light of currently available information. These statements involve risks, variables and uncertainties, and GEG’s actual performance results may differ from those projected, and any such differences may be material. For information on certain factors that could cause actual events or results to differ materially from GEG’s expectations, please see GEG’s filings with the Securities and Exchange Commission (“SEC”), including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Additional information relating to GEG’s financial position and results of operations is also contained in GEG’s annual and quarterly reports filed with the SEC and available for download at its website www.greatelmgroup.com or at the SEC website www.sec.gov.

    This press release does not constitute an offer of any securities for sale.

    Media & Investor Contact:
    Investor Relations
    geginvestorrelations@greatelm.com

    The MIL Network –

  • MIL-OSI: Canoe EIT Income Fund Announces February 2025 Monthly Distribution and Quarterly Distribution on Preferred Units

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, Feb. 04, 2025 (GLOBE NEWSWIRE) — Canoe EIT Income Fund (the “Fund”) (TSX – EIT.UN) announces the February 2025 monthly distribution of $0.10 per unit. Additionally, the Fund announces a quarterly distribution for preferred units. Cumulative Redeemable Series 1 (EIT.PR.A) and Series 2 Preferred (EIT.PR.B) unitholders will receive a distribution of $0.30 per unit. Unitholders of record on February 24, 2025, will receive distributions payable on March 14, 2025.

    About Canoe EIT Income Fund
    Canoe EIT Income Fund is one of Canada’s largest closed-end investment funds, designed to maximize monthly distributions and capital appreciation by investing in a broadly diversified portfolio of high quality securities. The Fund is listed on the TSX under the symbol EIT.UN, and is actively managed by Robert Taylor, Senior Vice President and Chief Investment Officer, Canoe Financial.

    About Canoe Financial
    Canoe Financial is one of Canada’s fastest growing independent mutual fund companies managing over $19.5 billion in assets across a diversified range of award-winning investment solutions. Founded in 2008, Canoe Financial is an employee-owned investment management firm focused on building financial wealth for Canadians. Canoe Financial has a significant presence across Canada, including offices in Calgary, Toronto and Montreal.

    For further information, please contact:
    Investor Relations
    1–877–434–2796
    www.canoefinancial.com
    info@canoefinancial.com

    Not for Distribution to U.S. Newswire Services or for Dissemination in the United States of America.

    The Fund makes monthly distributions of an amount comprised in whole or in part of Return of Capital (ROC) of the net asset value per unit. A ROC reduces the amount of your original investment and may result in the return to you of the entire amount of your original investment. ROC that is not reinvested will reduce the net asset value of the fund, which could reduce the fund’s ability to generate future income. You should not draw any conclusions about the fund’s investment performance from the amount of this distribution.

    Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the information filed about the fund on www.sedar.com before investing. Investment funds are not guaranteed and past performance may not be repeated.

    This communication is not to be construed as a public offering to sell, or a solicitation of an offer to buy securities. Such an offer can only be made by way of a prospectus or other applicable offering document and should be read carefully before making any investment. This release is for information purposes only. Investors should consult their Investment Advisor for details and risk factors regarding specific strategies and various investment products.

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    • Fourth-quarter revenue of $912.0 million
    • Fourth-quarter net income attributable to ChampionX of $82.8 million
    • Fourth-quarter adjusted EBITDA of $212.3 million
    • Fourth-quarter income before income taxes margin of 13.0%
    • Fourth quarter adjusted EBITDA margin of 23.3%
    • Fourth-quarter cash from operating activities of $207.3 million and free cash flow of $170.1 million
    • Full-year net income attributable to ChampionX of $320.3 million
    • Full-year adjusted EBITDA of $784.7 million
    • Full-year cash from operating activities of $589.7 million and free cash flow of $460.5 million

    THE WOODLANDS, Texas, Feb. 04, 2025 (GLOBE NEWSWIRE) — ChampionX Corporation (NASDAQ: CHX) (“ChampionX” or the “Company”) today announced fourth quarter of 2024 and full year 2024 results. For the fourth quarter of 2024, revenue was $912.0 million, net income attributable to ChampionX was $82.8 million, and adjusted EBITDA was $212.3 million. Income before income taxes margin was 13.0%, and adjusted EBITDA margin was 23.3%. Cash provided by operating activities was $207.3 million, and free cash flow was $170.1 million.

    CEO Commentary

    “2024 was a year in which we continued to demonstrate the unique nature of ChampionX’s cash flow resiliency, driven by the strength of our high-margin operating model and capital-light portfolio of businesses. We delivered robust adjusted EBITDA margin expansion and generated strong free cash flow. Our differentiated performance is the direct result of our employees around the world remaining committed to serving our customers well and living our continuous improvement culture daily. I am thankful and humbled to lead such a remarkably dedicated team,” ChampionX’s President and Chief Executive Officer Sivasankaran “Soma” Somasundaram said.

    “During the fourth quarter of 2024, we generated revenue of $912 million, which increased 1% sequentially, driven by seasonal strength in our Production Chemical Technologies business. Sequential growth in Production Chemical Technologies was offset by typical seasonal declines in our Production & Automation Technologies business into the year-end holidays. For the full year 2024, we generated revenue of $3.6 billion, and we grew our North America revenue by 3% year-over-year, driven by particular strength in the Permian basin. We generated net income attributable to ChampionX of $83 million, income before income taxes margin of 13.0%, and delivered adjusted EBITDA of $212 million, representing a 23.3% adjusted EBITDA margin, our highest level as ChampionX, which speaks to the continued productivity and profitability focus of our team. For the full year 2024, we generated net income attributable to ChampionX of $320 million, income before income taxes margin of 12.2%, a 90 basis point increase over the prior year, and delivered adjusted EBITDA of $785 million, representing a 21.6% adjusted EBITDA margin, an increase of 107 basis points year-over-year.

    “We once again demonstrated our strong cash flow profile. Cash flow from operating activities was $207 million during the fourth quarter, which represented 250% of net income attributable to ChampionX, and includes a $48 million tax payment deferred from the fourth quarter of 2024 to the first quarter of 2025. We generated robust free cash flow of $170 million during the fourth quarter, converting 80% of our adjusted EBITDA for the period. Cash flow from operating activities was $590 million for the full year 2024, which represented 184% of net income attributable to ChampionX. For the full year 2024, we generated free cash flow of $460 million and achieved 59% adjusted EBITDA to free cash flow conversion. Our balance sheet and financial position remain strong, ending the year with approximately $1.2 billion of liquidity, including $508 million of cash and $675 million of available capacity on our revolving credit facility.

    “As we look ahead to 2025, we expect global oil production to grow, and given our differentiated and resilient production-oriented portfolio, we expect another year of positive performance relative to general oil and gas market activity.”

    Agreement to be Acquired by SLB

    On April 2, 2024, SLB (NYSE: SLB) and ChampionX jointly announced a definitive Agreement and Plan of Merger (the “Merger Agreement”) for SLB to purchase ChampionX in an all-stock transaction.   The transaction was unanimously approved by the ChampionX board of directors and the transaction received the approval of the ChampionX stockholders at a special meeting held on June 18, 2024.   The transaction is subject to regulatory approvals and other customary closing conditions.

    ChampionX may continue to pay its regular quarterly cash dividends with customary record and payment dates, subject to certain limitations under the Merger Agreement.   Given the pending acquisition of ChampionX by SLB, ChampionX has discontinued providing quarterly guidance and will not host a conference call or webcast to discuss its fourth quarter and full year 2024 results.

    Production Chemical Technologies

    Production Chemical Technologies revenue in the fourth quarter of 2024 was $569.7 million, an increase of $10.1 million, or 2%, sequentially, due to seasonally higher volumes in certain international markets and higher volumes in North America.

    Segment operating profit was $103.6 million and adjusted segment EBITDA was $133.5 million. Segment operating profit margin was 18.2%, an increase of 259 basis points, sequentially, and adjusted segment EBITDA margin was 23.4%, an increase of 187 basis points, sequentially, in each case due to volumes and product mix.

    Production & Automation Technologies

    Production & Automation Technologies revenue in the fourth quarter of 2024 was $269.6 million, a decrease of $6.1 million, or 2%, sequentially, due primarily to seasonality in our North American businesses into the year-end holidays.

    Revenue from digital products was $62.3 million in the fourth quarter of 2024, an increase of $4.4 million, or 7.5%, compared to $57.9 million in the third quarter of 2024.

    Segment operating profit was $39.0 million, and adjusted segment EBITDA was $70.7 million. Segment operating profit margin was 14.5%, an increase of 210 basis points, sequentially, and adjusted segment EBITDA margin was 26.2%, an increase of 100 basis points, sequentially, in each case due to productivity improvements and product mix.

    Drilling Technologies

    Drilling Technologies revenue in the fourth quarter of 2024 was $51.9 million, an increase of $0.2 million, or flat, sequentially, in-line with flat sequential U.S. rig count activity.

    Segment operating profit was $10.7 million, and adjusted segment EBITDA was $12.3 million. Segment operating profit margin was 20.6%, a decrease of 160 basis points, sequentially, and adjusted segment EBITDA margin was 23.7%, a decrease of 112 basis points, sequentially, in each case due to slightly higher operating costs.

    Reservoir Chemical Technologies

    Reservoir Chemical Technologies revenue in the fourth quarter of 2024 was $21.9 million, an increase of $1.4 million, or 7%, sequentially, due primarily to higher product volumes.

    Segment operating profit was $2.3 million, and adjusted segment EBITDA was $3.8 million. Segment operating profit margin was 10.5%, as compared to 8.2% in the prior quarter, and adjusted segment EBITDA margin was 17.1%, an increase of 106 basis points, sequentially, in each case due to higher product volumes.

    Other Business Highlights: Production Chemical Technologies and Reservoir Chemical Technologies

    • Chosen by a Canadian operator to be their sole supply partner for production chemical programs to support longer asset life for the customer’s project.
    • Awarded SAGD accounts with a Canadian oil sands operator after a well-executed ChampionX pursuit, trial and transition. This success is expected to lead to additional growth opportunities with the customer in 2025.
    • Achieved growth with a national oil company in Central Asia through technology and alignment to the customer’s key business drivers. Organized technical workshops and reviews leading to the implementation of a paraffin treatment program with the customer.
    • Secured a new contract for the provision of chemical injection skids for Drag Reducing Agents (“DRA”) as part of a new development in Eastern Africa.
    • Executed a successful field trial for an innovative AAHI (hydrate inhibitor) with a major operator in Egypt. This strategic initiative is expected to assist the customer with significantly boosting production and enhancing operational efficiency.
    • Successfully qualified corrosion inhibitors for an existing gas field in Qatar. This achievement marks a significant step in supporting asset integrity assurance and commitment to delivering reliable solutions to the industry.
    • Qualified a new Kinetic Hydrate Inhibitor for a major gas field operated by a major national oil company in the Middle East region. This innovative solution delivers higher value, efficiency, and a lower total cost of operation.
    • Instituted notable customer-centric innovations, including the Right Products campaign which delivered 12 new chemistry innovations, the ParaClear(R) program for paraffin remediation, and the full-time Flowback Team with new product lines and digital tools.
    • Advanced digital capabilities, including MyAnalytics platform for sales representatives, the Sensor Team for equipment monitoring, and a trial of a Centralized Ordering system to streamline orders.
    • Delivered on our first RenewIQ+(R) opportunity, pumping a Reservoir Chemical Technologies chemistry in conjunction with our standard RenewIQ(R) offering.
    • Gained significant commercial traction among key customers with Reservoir Chemical Technologies’ new acidizing technology. This innovative system has been evaluated by a major Middle East operator and recognized as one of the top-performing solutions in the market. This milestone underscores our commitment to providing sustainable, high-performance solutions that align with the evolving needs of the industry.

    Other Business Highlights: Production & Automation Technologies

    • Expanded the portfolio of recently acquired RMSpumptools into North America, delivering new solutions to a major oil company in the Permian basin using permanent magnet motor technology. Additional interest and growth with customers are building into 2025.
    • Introduced the SMARTEN™ Lite rod pump controller, which offers an economical automation solution for marginal, low-producing rod pump wells. This new technology was successfully operating on 60 new wells in Q4 2024, helping operators gain 24/7 surveillance and remote control of their rod pump assets with a low-cost edge computing device that requires minimal hardware and setup.
    • Continuing to see strong market penetration and interest in Artificial Lift Performance’s Pump Checker software offering. Software license counts have increased by more than 30% since the February 2024 acquisition, with a focused growth on gas lift/plunger lift well applications.
    • Successfully added well density to a performance-based integrated production optimization (“IPO”) project recently secured with a customer in the Permian basin, and extended the reach of this holistic solution with an additional customer in the Permian. The IPO solution combines artificial lift, chemicals and chemical injection systems with digital automation, controls, data management, and optimization services to drive incremental production with effective cost management for operators.
    • Deployed a large SOOFIE™ continuous emissions monitoring system for an operator in the Middle East. Based on initial results, the customer plans to deploy additional fixed emissions monitoring systems as well as incorporate the ChampionX Aura™ optical gas imaging camera in the field. Our technology was selected based on its proven capabilities and ChampionX collaboration with the field team to assure a steady stream of high-quality data. The SOOFIE continuous monitoring system provides real-time, 24/7 surveillance of methane and other greenhouse gases at oil and gas facilities and landfills.
    • Completed installations of ChampionX’s AnX™ coiled rod technology with a Middle East operator. Based on the excellent performance of this corrosion-resistant coiled rod, the customer has ordered product to install in additional wells in 2025. AnX recently won the Gulf Energy Excellence award for Best Production Technology and has demonstrated dramatic run life improvement in highly corrosive applications in multiple geographies around the world.
    • Successfully completed the initial installations of a full rod pumping solution on a very challenging application in Colombia. The solution brings together both the downhole rods and pump with ChampionX’s rod lift production optimization software. The customer reports that results are exceeding expectations, with production increasing by 35% while reducing operating costs through optimizing resources required to operate the wells.
    • Expanded production optimization software capabilities with customers in Peru and Argentina. Our XSPOC™ software has been implemented across more than 300 wells in Peru and additional licenses are planned in Q1 2025. In Argentina, a customer implemented the software across three fields. By delivering diagnostic insights and actionable recommendations, XSPOC software enables customers to enhance well performance, increase production, and reduce operating costs.

    About Non-GAAP Measures

    In addition to financial results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), this news release presents non-GAAP financial measures. Management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income attributable to ChampionX and adjusted diluted earnings per share attributable to ChampionX, provide useful information to investors regarding the Company’s financial condition and results of operations because they reflect the core operating results of our businesses and help facilitate comparisons of operating performance across periods. In addition, free cash flow, free cash flow to adjusted EBITDA ratio, and free cash flow to revenue ratio are used by management to measure our ability to generate positive cash flow for debt reduction and to support our strategic objectives. Although management believes the aforementioned non-GAAP financial measures are good tools for internal use and the investment community in evaluating ChampionX’s overall financial performance, the foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying financial tables.

    About ChampionX

    ChampionX is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world. ChampionX’s expertise, innovative products, and digital technologies provide enhanced oil and gas production, transportation, and real-time emissions monitoring throughout the lifecycle of a well. To learn more about ChampionX, visit our website at www.ChampionX.com. 

    Forward-Looking Statements

    This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements relating to the proposed transaction between SLB and ChampionX, including statements regarding the benefits of the transaction and the anticipated timing of the transaction, and information regarding the businesses of SLB and ChampionX, including expectations regarding outlook and all underlying assumptions, SLB’s and ChampionX’s objectives, plans and strategies, information relating to operating trends in markets where SLB and ChampionX operate, statements that contain projections of results of operations or of financial condition and all other statements other than statements of historical fact that address activities, events or developments that SLB or ChampionX intends, expects, projects, believes or anticipates will or may occur in the future.   Such statements are based on management’s beliefs and assumptions made based on information currently available to management.   All statements in this communication, other than statements of historical fact, are forward-looking statements that may be identified by the use of the words “outlook,” “guidance,” “expects,” “believes,” “anticipates,” “should,” “estimates,” “intends,” “plans,” “seeks,” “targets,” “may,” “can,” “believe,” “predict,” “potential,” “projected,” “projections,” “precursor,” “forecast,” “ambition,” “goal,” “scheduled,” “think,” “could,” “would,” “will,” “see,” “likely,” and other similar expressions or variations, but not all forward-looking statements include such words.   These forward-looking statements involve known and unknown risks and uncertainties, and which may cause SLB’s or ChampionX’s actual results and performance to be materially different from those expressed or implied in the forward-looking statements.   Factors and risks that may impact future results and performance include, but are not limited to those factors and risks described in Part I, “Item 1. Business”, “Item 1A. Risk Factors”, and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in SLB’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (the “SEC”) on January 24, 2024 and Part 1, Item 1A, “Risk Factors” in ChampionX’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 6, 2024, and each of their respective, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These include, but are not limited to, and in each case as a possible result of the proposed transaction on each of SLB and ChampionX: the ultimate outcome of the proposed transaction between SLB and ChampionX, including the effect of the announcement of the proposed transaction; the ability to operate the SLB and ChampionX respective businesses, including business disruptions; difficulties in retaining and hiring key personnel and employees; the ability to maintain favorable business relationships with customers, suppliers and other business partners; the terms and timing of the proposed transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction; the anticipated or actual tax treatment of the proposed transaction; the ability to satisfy closing conditions to the completion of the proposed transaction (including the adoption of the merger agreement in respect of the proposed transaction by ChampionX stockholders); other risks related to the completion of the proposed transaction and actions related thereto; the ability of SLB and ChampionX to integrate the business successfully and to achieve anticipated synergies and value creation from the proposed transaction; changes in demand for SLB’s or ChampionX’s products and services; global market, political and economic conditions, including in the countries in which SLB and ChampionX operate; the ability to secure government regulatory approvals on the terms expected, at all or in a timely manner; the extent of growth of the oilfield services market generally, including for chemical solutions in production and midstream operations; the global macro-economic environment, including headwinds caused by inflation, rising interest rates, unfavorable currency exchange rates, and potential recessionary or depressionary conditions; the impact of shifts in prices or margins of the products that SLB or ChampionX sells or services that SLB or ChampionX provides, including due to a shift towards lower margin products or services; cyber-attacks, information security and data privacy; the impact of public health crises, such as pandemics (including COVID-19) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets; trends in crude oil and natural gas prices, including trends in chemical solutions across the oil and natural gas industries, that may affect the drilling and production activity, profitability and financial stability of SLB’s and ChampionX’s customers and therefore the demand for, and profitability of, their products and services; litigation and regulatory proceedings, including any proceedings that may be instituted against SLB or ChampionX related to the proposed transaction; failure to effectively and timely address energy transitions that could adversely affect the businesses of SLB or ChampionX, results of operations, and cash flows of SLB or ChampionX; and disruptions of SLB’s or ChampionX’s information technology systems.

    These risks, as well as other risks related to the proposed transaction, are included in the Form S-4 and proxy statement/prospectus that was filed with the SEC in connection with the proposed transaction.   While the list of factors presented here is, and the list of factors presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to SLB’s and ChampionX’s respective periodic reports and other filings with the SEC, including the risk factors identified in SLB’s and ChampionX’s Annual Reports on Form 10-K, respectively, and SLB’s and ChampionX’s subsequent Quarterly Reports on Form 10-Q. The forward-looking statements included in this communication are made only as of the date hereof.   Neither SLB nor ChampionX undertakes any obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

    Investor Contact: Byron Pope
    byron.pope@championx.com 
    281-602-0094

    Media Contact: John Breed
    john.breed@championx.com 
    281-403-5751

    CHAMPIONX CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (UNAUDITED)

      Three Months Ended   Years Ended
      Dec 31,   Sep 30,   Dec 31,   December 31,
    (in thousands, except per share amounts)   2024       2024       2023       2024       2023  
    Revenue $ 912,037     $ 906,533     $ 943,555     $ 3,633,983     $ 3,758,285  
    Cost of goods and services   600,154       608,764       661,337       2,445,281       2,618,646  
    Gross profit   311,883       297,769       282,218       1,188,702       1,139,639  
    Selling, general and administrative expense   184,722       180,501       147,415       720,632       633,032  
    (Gain) loss on sale-leaseback transaction and disposal group   —       57       —       (29,826 )     12,965  
    Interest expense, net   12,375       14,137       13,808       55,868       54,562  
    Foreign currency transaction losses (gains), net   1,697       3,505       14,651       2,490       36,334  
    Other income, net   (5,026 )     (2,176 )     (7,584 )     (3,337 )     (21,078 )
    Income before income taxes   118,115       101,745       113,928       442,875       423,824  
    Provision for income taxes   33,204       28,078       35,771       115,746       105,105  
    Net income   84,911       73,667       78,157       327,129       318,719  
    Net income attributable to noncontrolling interest   2,145       1,659       959       6,863       4,481  
    Net income attributable to ChampionX $ 82,766     $ 72,008     $ 77,198     $ 320,266     $ 314,238  
                       
    Earnings per share attributable to ChampionX:                  
    Basic $ 0.43     $ 0.38     $ 0.40     $ 1.68     $ 1.60  
    Diluted $ 0.43     $ 0.37     $ 0.39     $ 1.65     $ 1.57  
                       
    Weighted-average shares outstanding:                  
    Basic   190,586       190,496       193,191       190,578       196,083  
    Diluted   193,487       193,362       196,649       193,643       199,906  
                                           

    CHAMPIONX CORPORATION
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (UNAUDITED)

      December 31,
    (in thousands)   2024       2023  
    Assets      
    Current Assets:      
    Cash and cash equivalents $ 507,681     $ 288,557  
    Receivables, net   466,782       534,534  
    Inventories, net   496,831       521,549  
    Prepaid expenses and other current assets   92,603       80,777  
    Total current assets   1,563,897       1,425,417  
           
    Property, plant and equipment, net   755,422       773,552  
    Goodwill   718,944       669,064  
    Intangible assets, net   258,614       243,553  
    Other non-current assets   173,375       130,116  
    Total assets $ 3,470,252     $ 3,241,702  
           
    Liabilities      
    Current portion of long-term debt $ 6,203     $ 6,203  
    Accounts payable   455,531       451,680  
    Other current liabilities   324,138       324,866  
    Total current liabilities   785,872       782,749  
           
    Long-term debt   591,453       594,283  
    Other long-term liabilities   261,749       203,639  
    Stockholders’ equity:      
    ChampionX stockholders’ equity   1,846,437       1,676,622  
    Noncontrolling interest   (15,259 )     (15,591 )
    Total liabilities and equity $ 3,470,252     $ 3,241,702  
                   

    CHAMPIONX CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)

      Years Ended December 31,
    (in thousands)   2024       2023  
    Cash flows from operating activities:      
    Net income $ 327,129     $ 318,719  
    Depreciation and amortization   245,825       235,936  
    (Gain) loss on sale-leaseback transaction and disposal group   (29,826 )     12,965  
    Loss on Argentina Blue Chip Swap transaction   7,086       —  
    Deferred income taxes   (22,873 )     (22,272 )
    (Gain) on disposal of fixed assets   (443 )     (1,046 )
    Receivables   76,569       70,021  
    Inventories   (8,924 )     18,753  
    Accounts payable   (399 )     (53,891 )
    Other assets   (15,152 )     20,395  
    Leased assets   (33,767 )     (51,247 )
    Other operating items, net   44,456       (8,062 )
    Net cash provided by operating activities   589,681       540,271  
           
    Cash flows from investing activities:      
    Capital expenditures   (141,310 )     (142,324 )
    Proceeds from sale of fixed assets   12,113       14,545  
    Proceeds from sale-leaseback transaction   44,292       —  
    Purchase of investments   (31,526 )     —  
    Sale of investments   24,358       —  
    Acquisitions, net of cash acquired   (123,269 )     —  
    Net cash used for investing activities   (215,342 )     (127,779 )
           
    Cash flows from financing activities:      
    Proceeds from long-term debt   —       15,500  
    Repayment of long-term debt   (6,203 )     (45,176 )
    Repurchases of common stock   (49,399 )     (277,575 )
    Dividends paid   (70,531 )     (64,980 )
    Other   (24,324 )     (934 )
    Net cash used for financing activities   (150,457 )     (373,165 )
           
    Effect of exchange rate changes on cash and cash equivalents   (4,758 )     (957 )
           
    Net increase in cash and cash equivalents   219,124       38,370  
    Cash and cash equivalents at beginning of period   288,557       250,187  
    Cash and cash equivalents at end of period $ 507,681     $ 288,557  
                   

    CHAMPIONX CORPORATION
    BUSINESS SEGMENT DATA
    (UNAUDITED)

      Three Months Ended   Years Ended
      Dec 31,   Sep 30,   Dec 31,   December 31,
    (in thousands)   2024       2024       2023       2024       2023  
    Segment revenue:                  
    Production Chemical Technologies $ 569,662     $ 559,539     $ 634,137     $ 2,288,886     $ 2,404,377  
    Production & Automation Technologies   269,568       275,700       241,294       1,042,369       1,003,146  
    Drilling Technologies   51,942       51,792       46,821       211,828       215,721  
    Reservoir Chemical Technologies   21,937       20,531       21,402       94,296       96,154  
    Corporate and other   (1,072 )     (1,029 )     (99 )     (3,396 )     38,887  
    Total revenue $ 912,037     $ 906,533     $ 943,555     $ 3,633,983     $ 3,758,285  
                       
    Income (loss) before income taxes:                
    Segment operating profit (loss):                  
    Production Chemical Technologies $ 103,567     $ 87,260     $ 102,179     $ 364,047     $ 350,216  
    Production & Automation Technologies   39,027       34,136       22,110       123,840       118,409  
    Drilling Technologies   10,703       11,501       8,679       78,469       45,481  
    Reservoir Chemical Technologies   2,294       1,675       3,907       12,078       10,541  
    Total segment operating profit   155,591       134,572       136,875       578,434       524,647  
    Corporate and other   25,101       18,690       9,139       79,691       46,261  
    Interest expense, net   12,375       14,137       13,808       55,868       54,562  
    Income before income taxes $ 118,115     $ 101,745     $ 113,928     $ 442,875     $ 423,824  
                       
    Operating profit margin / income (loss) before income taxes margin:                  
    Production Chemical Technologies   18.2 %     15.6 %     16.1 %     15.9 %     14.6 %
    Production & Automation Technologies   14.5 %     12.4 %     9.2 %     11.9 %     11.8 %
    Drilling Technologies   20.6 %     22.2 %     18.5 %     37.0 %     21.1 %
    Reservoir Chemical Technologies   10.5 %     8.2 %     18.3 %     12.8 %     11.0 %
    ChampionX Consolidated   13.0 %     11.2 %     12.1 %     12.2 %     11.3 %
                       
    Adjusted EBITDA                  
    Production Chemical Technologies $ 133,475     $ 120,622     $ 139,107     $ 489,549     $ 506,991  
    Production & Automation Technologies   70,739       69,604       52,800       259,531       232,672  
    Drilling Technologies   12,321       12,867       10,361       54,411       51,986  
    Reservoir Chemical Technologies   3,751       3,292       5,501       18,343       18,498  
    Corporate and other   (8,021 )     (8,873 )     (9,624 )     (37,112 )     (38,926 )
    Adjusted EBITDA $ 212,265     $ 197,512     $ 198,145     $ 784,722     $ 771,221  
                       
    Adjusted EBITDA margin                  
    Production Chemical Technologies   23.4 %     21.6 %     21.9 %     21.4 %     21.1 %
    Production & Automation Technologies   26.2 %     25.2 %     21.9 %     24.9 %     23.2 %
    Drilling Technologies   23.7 %     24.8 %     22.1 %     25.7 %     24.1 %
    Reservoir Chemical Technologies   17.1 %     16.0 %     25.7 %     19.5 %     19.2 %
    ChampionX Consolidated   23.3 %     21.8 %     21.0 %     21.6 %     20.5 %
                                           

    CHAMPIONX CORPORATION
    RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
    (UNAUDITED)

      Three Months Ended   Years Ended
      Dec 31,   Sep 30,   Dec 31,   December 31,
    (in thousands)   2024       2024       2023       2024       2023  
    Net income attributable to ChampionX $ 82,766     $ 72,008     $ 77,198     $ 320,266     $ 314,238  
    Pre-tax adjustments:                  
    (Gain) loss on sale-leaseback transaction and disposal group(1)   —       57       —       (29,826 )     12,965  
    Russia sanctions compliance and impacts(2)   73       109       160       366       1,209  
    Restructuring and other related charges   2,704       5,317       2,407       17,657       13,387  
    Merger transaction costs(3)   14,434       8,312       —       37,805       245  
    Acquisition costs and related adjustments(4)   75       753       (6,817 )     2,634       (12,670 )
    Intellectual property defense   158       69       638       1,537       1,545  
    Merger-related indemnification responsibility(5)   100       —       —       100       722  
    Tulsa, Oklahoma storm damage   —       —       660       305       3,162  
    Foreign currency transaction losses, net   1,697       3,505       14,651       2,490       36,334  
    Loss on Argentina Blue Chip Swap transaction   —       —       —       7,086       —  
    Tax impact of adjustments   (5,565 )     (4,259 )     (2,600 )     (10,480 )     (12,650 )
    Adjusted net income attributable to ChampionX   96,442       85,871       86,297       349,940       358,487  
    Tax impact of adjustments   5,565       4,259       2,600       10,480       12,650  
    Net income attributable to noncontrolling interest   2,145       1,659       959       6,863       4,481  
    Depreciation and amortization   62,534       63,508       58,710       245,825       235,936  
    Provision for income taxes   33,204       28,078       35,771       115,746       105,105  
    Interest expense, net   12,375       14,137       13,808       55,868       54,562  
    Adjusted EBITDA $ 212,265     $ 197,512     $ 198,145     $ 784,722     $ 771,221  

    _______________________

    (1) Amounts represents the and the gain on the sale and leaseback of certain buildings and land during 2024. For the year ended December 31, 2023, the loss recorded to properly adjust the carrying value of our Chemical Technologies operations in Russia to the lower of carrying value or fair value less costs to sell .
    (2) Includes charges incurred related to legal and professional fees to comply with, as well as additional foreign currency exchange losses associated with, the sanctions imposed in Russia.
    (3) Includes costs incurred during 2024 in relation to the Merger Agreement with Schlumberger Limited, including third party legal and professional fees.
    (4) Includes costs incurred for the acquisition of businesses and revenue associated with the amortization of a liability established as part of the merger transaction with Ecolab Inc. (“Ecolab”) to acquire the Chemical Technologies business, representing unfavorable terms under the Cross Supply Agreement, as well as costs incurred for the acquisition of businesses. During the fourth quarter of 2023, we recorded a fair value adjustment to contingent consideration on a prior acquisition as well as the settlement of an item pursuant to the tax matters agreement with Ecolab.
    (5) Expense related to the June 3, 2020 merger transaction with Ecolab in which we acquired the Chemical Technologies business.
       
      Three Months Ended   Years Ended
      Dec 31,   Sep 30,   Dec 31,   December 31,
    (in thousands)   2024       2024       2023       2024       2023  
    Diluted earnings per share attributable to ChampionX $ 0.43     $ 0.37     $ 0.39     $ 1.65     $ 1.57  
    Per share adjustments:                  
    (Gain) loss on sale-leaseback transaction and disposal group   —       —       —       (0.15 )     0.06  
    Russia sanctions compliance and impacts   —       —       —           —  
    Restructuring and other related charges   0.01       0.03       0.01       0.09       0.07  
    Merger transaction costs   0.07       0.04       —       0.20       —  
    Acquisition costs and related adjustments   —       —       (0.03 )     0.01       (0.06 )
    Intellectual property defense   —       —       —       0.01       0.01  
    Merger-related indemnification responsibility   —       —       —       —       —  
    Tulsa, Oklahoma storm damage   —       —       0.01       —       0.02  
    Foreign currency transaction losses   0.01       0.02       0.07       0.01       0.18  
    Loss on Argentina Blue Chip Swap transaction   —       —       —       0.04       —  
    Tax impact of adjustments   (0.02 )     (0.02 )     (0.01 )     (0.05 )     (0.06 )
    Adjusted diluted earnings per share attributable to ChampionX $ 0.50     $ 0.44     $ 0.44     $ 1.81     $ 1.79  
                                           

    CHAMPIONX CORPORATION
    RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
    (UNAUDITED)

      Three Months Ended   Years Ended
      Dec 31,   Sep 30,   Dec 31,   December 31,
    (in thousands)   2024       2024       2023       2024       2023  
    Production Chemical Technologies                  
    Segment operating profit $ 103,567     $ 87,260     $ 102,179     $ 364,047     $ 350,216  
    Non-GAAP adjustments   2,251       7,073       11,194       19,108       51,717  
    Depreciation and amortization   27,657       26,289       25,734       106,394       105,058  
    Segment adjusted EBITDA $ 133,475     $ 120,622     $ 139,107     $ 489,549     $ 506,991  
                       
    Production & Automation Technologies                  
    Segment operating profit $ 39,027     $ 34,136     $ 22,110     $ 123,840     $ 118,409  
    Non-GAAP adjustments   75       1,656       1,231       9,807       5,246  
    Depreciation and amortization   31,637       33,812       29,459       125,884       109,017  
    Segment adjusted EBITDA $ 70,739     $ 69,604     $ 52,800     $ 259,531     $ 232,672  
                       
    Drilling Technologies                  
    Segment operating profit $ 10,703     $ 11,501     $ 8,679     $ 78,469     $ 45,481  
    Non-GAAP adjustments   306       54       109       (29,523 )     313  
    Depreciation and amortization   1,312       1,312       1,573       5,465       6,192  
    Segment adjusted EBITDA $ 12,321     $ 12,867     $ 10,361     $ 54,411     $ 51,986  
                       
    Reservoir Chemical Technologies                  
    Segment operating profit $ 2,294     $ 1,675     $ 3,907     $ 12,078     $ 10,541  
    Non-GAAP adjustments   39       3       4       69       1,486  
    Depreciation and amortization   1,418       1,614       1,590       6,196       6,471  
    Segment adjusted EBITDA $ 3,751     $ 3,292     $ 5,501     $ 18,343     $ 18,498  
                       
    Corporate and other                  
    Segment operating profit $ (37,476 )   $ (32,827 )   $ (22,947 )   $ (135,559 )   $ (100,823 )
    Non-GAAP adjustments   16,570       9,336       (839 )     40,693       (1,863 )
    Depreciation and amortization   510       481       354       1,886       9,198  
    Interest expense, net   12,375       14,137       13,808       55,868       54,562  
    Segment adjusted EBITDA $ (8,021 )   $ (8,873 )   $ (9,624 )   $ (37,112 )   $ (38,926 )
                                           

    Free Cash Flow

      Three Months Ended   Years Ended
      Dec 31,   Sep 30,   Dec 31,   December 31,
    (in thousands)   2024       2024       2023       2024       2023  
    Free Cash Flow                  
    Cash provided by operating activities $ 207,250     $ 141,298     $ 168,953     $ 589,681     $ 540,271  
    Less: Capital expenditures, net of proceeds from sale of fixed assets   (37,117 )     (33,248 )     (29,142 )     (129,197 )     (127,779 )
    Free cash flow $ 170,133     $ 108,050     $ 139,811     $ 460,484     $ 412,492  
                       
    Cash From Operating Activities to Revenue Ratio                  
    Cash provided by operating activities $ 207,250     $ 141,298     $ 168,953     $ 589,681     $ 540,271  
    Revenue $ 912,037     $ 906,533     $ 943,555     $ 3,633,983     $ 3,758,285  
                       
    Cash from operating activities to revenue ratio   23 %     16 %     18 %     16 %     14 %
                       
    Free Cash Flow to Revenue Ratio                  
    Free cash flow $ 170,133     $ 108,050     $ 139,811     $ 460,484     $ 412,492  
    Revenue $ 912,037     $ 906,533     $ 943,555     $ 3,633,983     $ 3,758,285  
                       
    Free cash flow to revenue ratio   19 %     12 %     15 %     13 %     11 %
                       
    Free Cash Flow to Adjusted EBITDA Ratio                  
    Free cash flow $ 170,133     $ 108,050     $ 139,811     $ 460,484     $ 412,492  
    Adjusted EBITDA $ 212,265     $ 197,512     $ 198,145     $ 784,722     $ 771,221  
                       
    Free cash flow to adjusted EBITDA ratio   80 %     55 %     71 %     59 %     53 %

    The MIL Network –

  • MIL-OSI: HCI Group Declares Quarterly Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    TAMPA, Fla., Feb. 04, 2025 (GLOBE NEWSWIRE) — The board of directors of HCI Group, Inc. (NYSE: HCI), a holding company with operations in homeowners insurance, information technology services, real estate, and reinsurance, has declared a regular quarterly cash dividend in the amount of 40 cents per common share. The dividend is scheduled to be paid March 21, 2025 to shareholders of record at the close of business February 21, 2025.

    About HCI Group, Inc.
    HCI Group, Inc. owns subsidiaries engaged in diverse, yet complementary business activities, including homeowners insurance, information technology services, insurance management, real estate, and reinsurance. HCI’s leading insurance operation, TypTap Insurance Company, is a technology-driven homeowners insurance company. TypTap’s operations are powered in large part by insurance-related information technology developed by HCI’s software subsidiary, Exzeo USA, Inc. HCI’s largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., provides homeowners insurance primarily in Florida. HCI’s real estate subsidiary, Greenleaf Capital, LLC, owns and operates multiple properties in Florida, including office buildings, retail centers and marinas.

    The company’s common shares trade on the New York Stock Exchange under the ticker symbol “HCI” and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company’s website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com.

    Forward-Looking Statements
    This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,” “confident,” “prospects” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. There can be no assurance, for example, that changes in the company’s cash flow and cash balances will not impact the ability or willingness of HCI Group to pay a dividend. Some of these risks and uncertainties are identified in the company’s filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company’s business, financial condition and results of operations. HCI Group, Inc. disclaims all obligations to update any forward-looking statements.

    Company Contact:
    Bill Broomall, CFA
    Investor Relations
    HCI Group, Inc.
    Tel (813) 776-1012
    wbroomall@typtap.com

    Investor Relations Contact:
    Matt Glover
    Gateway Group, Inc.
    Tel 949-574-3860
    HCI@gatewayir.com

    The MIL Network –

  • MIL-OSI: Crescent Capital BDC, Inc. Schedules Earnings Release and Conference Call to Discuss its Fourth Quarter and Fiscal Year Ended December 31, 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, Feb. 04, 2025 (GLOBE NEWSWIRE) — Crescent Capital BDC, Inc. (“Crescent BDC”) (NASDAQ: CCAP) today announced it will release its financial results for the fourth quarter and fiscal year ended December 31, 2024 on Wednesday, February 19, 2025 after market close. Crescent BDC invites all interested persons to attend its webcast/conference call on Thursday, February 20, 2025 at 12:00 p.m. Eastern Time to discuss its fourth quarter and year ended December 31, 2024 financial results.

    Conference Call Information:

    The conference call will be broadcast live at 12:00 p.m. Eastern Time on the Investor Relations section of Crescent BDC’s website at www.crescentbdc.com. Please visit the website to test your connection before the webcast.

    Participants are also invited to access the conference call by dialing the following number:

    Toll Free: (800) 715-9871
    Conference ID: 1217499

    All callers will need to reference the Conference ID once connected with the operator.

    Replay Information:

    A replay of the earnings call will be available via a webcast link located on the Investor Relations section of Crescent BDC’s website.

    About Crescent BDC

    Crescent BDC is a business development company that seeks to maximize the total return of its stockholders in the form of current income and capital appreciation by providing capital solutions to middle market companies with sound business fundamentals and strong growth prospects. Crescent BDC utilizes the extensive experience, origination capabilities and disciplined investment process of Crescent Capital Group LP (“Crescent”). Crescent BDC is externally managed by Crescent Cap Advisors, LLC, a subsidiary of Crescent. Crescent BDC has elected to be regulated as a business development company under the Investment Company Act of 1940. For more information about Crescent BDC, visit www.crescentbdc.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein.

    About Crescent Capital Group LP

    Crescent is a global credit investment manager with $43 billion of assets under management. For over 30 years, the firm has focused on below investment grade credit through strategies that invest in marketable and privately originated debt securities including senior bank loans, high yield bonds, as well as private senior, unitranche and junior debt securities. Crescent is headquartered in Los Angeles with offices in New York, Boston, Chicago and London with more than 225 employees globally. Crescent is a part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life. For more information about Crescent, visit www.crescentcap.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein.

    Contact:

    Dan McMahon
    daniel.mcmahon@crescentcap.com
    212-364-0149

    Forward-Looking Statements

    Statements included herein may constitute “forward-looking statements,” which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results and conditions may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. Crescent BDC undertakes no duty to update any forward-looking statements made herein.

    The MIL Network –

  • MIL-OSI United Kingdom: Caithness Area Place Planning community event

    Source: Scotland – Highland Council

    Several public drop-in sessions are being held across Caithness during February with displays of options for the future masterplanning for the area.  Council officers will be on hand to explain the proposals and answer any questions.  

    The content of each session will vary slightly, with a mix of displays focussing on the draft Caithness Area Place Plan, the Highland Investment Plan, the Highland Local Development Plan and the Visitor Levy consultation.

    Communities and Place Committee Chair, Cllr Graham MacKenzie said: “These collaborative community events are an excellent opportunity for the public to come along and find out more about the future masterplanning for the area and ask questions and suggest ideas. It also opens the opportunity to connect and discuss further partnership working within our communities.”

    Plans on display and for discussion are:

    Highland Investment Plan – In May 2024 Highland Council approved the £2.1 billion twenty-year Highland Investment Plan.  This is a highly significant, long term infrastructure investment programme for the Highland area and is a radical solution to the significant challenges the Council faces in reducing, maintaining, and renewing our asset base, and is closely linked to plans to modernise Council service delivery. 

    A key element of this approach will be to establish Community Points of Delivery which will be places where a wide range of Council services, including education, can be delivered alongside other partner and community services as part of a future integrated operating model for partnership working.

    Thurso has been selected as one of the priority locations to develop a local place-based masterplan and this event will provide an opportunity to view the work that has been carried out to date and to gather feedback from members of the community. Further engagement with stakeholders will take place thereafter, and prior to reporting on the outcomes at a Council meeting in June.

    Highland Local Development Plan (HLDP) – The Highland Council is gathering evidence including the views of the public and local organisations to help formulate a new, statutory land use plan for Highland. This Plan will shape future planning application and other building investment decisions. The events will display and present the information we think is relevant to the future planning of Thurso, Wick, nearby large villages and the wider Caithness area but we want your views on what else we should consider. Planning staff will be available in Wick and Thurso to discuss the Plan and explain how to find out more and make comment. A consultation launched on 31 January on evidence, runs to 12 noon on 31 March 2025; a call for development sites launched the same day runs until 12 noon on 02 May 2025. For those that can’t make the events then more details of the Plan and access to the current consultation are available here 

    Caithness Area Place Plan (APP) – drafts of the Caithness Area Place Plan will be available.  This plan will capture the priorities for the area set out in other plans and those identified through previous community engagement sessions.  The APP provides the basis for place-centred service delivery and will act as a tool for funders, guiding investment into the area. 

    Visitor Levy – a public consultation is currently underway on the proposal to implement a Visitor Levy in Highland Visitor Levy Consultation | Visitor Levy | The Highland Council and officers will be present at the sessions in Wick and Thurso to informally answer any questions about the proposals and the consultation process.

    The drop-in sessions are as follows:

    Wednesday 12 Feb 2025 – Public Engagement Drop In – Pulteney Centre, Wick -1000-1530

    Tues 18 February 2025 – Public Engagement Drop In – Thurso Library – 1500-1930

    Weds 26 February 2025 – Public Engagement Workshop – Lybster Community Hall – 1400-1700

    For those who can’t attend any of the sessions, there will also be an on-line evening event on Wednesday 19 February 2025 –  to book a place please click here

    MIL OSI United Kingdom –

  • MIL-OSI Security: Two Individuals Charged With Running a Fencing Operation for South American Theft Groups in Manhattan’s Diamond District

    Source: Office of United States Attorneys

    Defendants Allegedly Received Luxury Items Linked to Burglaries Across Multiple States

    Earlier today, at the federal court in Brooklyn, an indictment was unsealed charging Dimitriy Nezhinskiy and Juan Villar with conspiracy to receive stolen property related to their purchasing of stolen goods that traveled across state lines. The defendants were arrested today, Nezhinskiy in New Jersey and Villar in Manhattan. They will be arraigned tomorrow before United States Magistrate Judge Lara K. Eshkenazi.

    John J. Durham, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), Jessica S. Tisch, Commissioner, New York City Police Department (NYPD) and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD) announced the charges.

    “As alleged, the defendants created an illicit market and fueled demand for burglaries by South American Theft Groups and other crews around the country by purchasing stolen watches, jewelry and other luxury items, and then re-selling them in their New York City store,” stated United States Attorney Durham.  “My Office will continue to pursue organized groups who engage, enable, or encourage the pillaging of residential homes and businesses that has a corrosive effect on the sense of security in our communities.”

    “For almost five years, Dimitriy Nezhinskiy and Juan Villar allegedly served as unlawful brokers to perpetuate the sale of stolen luxury items by purchasing them from burglary crews. The defendants’ alleged actions incentivized highly organized South American Theft Groups to continue their meticulous looting scheme against a myriad of affluent residences and businesses across the country. With our law enforcement partners, the FBI will continue to dismantle any criminal activity curated to capitalize on victims’ losses and establish an economic demand for ill-obtained merchandise within our city,” stated FBI Assistant Director in Charge Dennehy.

    “We will not tolerate crime of any kind in New York, whether it be street crime, retail theft, or these organized operations that target residential homes to steal and resell luxury goods,” said NYPD Commissioner Tisch.  “Today’s indictment is the result of our strong work with our law enforcement partners and our commitment to cracking down on these crime rings that threaten our communities.”

    “We want to thank our partners in federal law enforcement for this collaborative effort to bring this criminal to justice,” stated NCPD Commissioner Ryder. “The men and women of the Nassau County Police Department, particularly the dedicated Detectives of the Major Case Squad, work tirelessly to investigate crimes and arrest those who prey upon our citizens.”

    As alleged in the indictment, between approximately 2020 and 2025, the defendants conspired with each another and others to receive and purchase stolen property, including jewelry, watches, handbags and assorted luxury items that had been stolen outside of the state of New York and transported into New York.  As detailed in court filings, Nezhinskiy and Villar regularly served as “fences” for burglary crews based out of South America who traveled around the United States committing burglaries, typically targeting wealthier neighborhoods or jewelry vendors, and stealing luxury accessories. Nezhinskiy and Villar’s operation provided an essential market for the stolen goods, perpetuating the dangerous criminal activities of the burglary and theft crews composed largely of foreign nationals.

    For example, evidence links Nezhinskiy and Villar to thefts around the country, including crimes committed by Bryan Leandro Herrera Maldonado, a prolific burglar who committed at least 16 residential burglaries across the United States between 2019 and 2020.  Additionally, phone records and video surveillance links Nezhinskiy to at least two members of a four-man burglary crew believed to be involved in the December 9, 2024 burglary of a high-profile athlete in Ohio, and showed Nezhinskiy in contact with that crew less than one week before the burglary in Ohio.

    In addition, between October 2022 and January 2024, an undercover detective conducted seven controlled sales of purported stolen property, including high-end handbags and luxury accessories, to Nezhinskiy or Villar, or both, at their business location in Manhattan’s Diamond District.  During these controlled sales, the undercover detective provided the defendants with items that the undercover told the defendants had been stolen, and received cash in exchange for the stolen goods.

    Today, law enforcement executed a search warrant at the location on 47th Street in Manhattan where Nezhinskiy and Villar operate a pawn shop and seized large quantities of suspected stolen property, including dozens of high-end watches and jewelry. Law enforcement also recovered large quantities of cash and marijuana.  Simultaneously, law enforcement executed a search warrant at storage units belonging to Nezhinskiy in New Jersey where an additional cache of suspected stolen property was found.  From inside Nezhinskiy’s storage units, law enforcement recovered large quantities of luxury goods and clothing, including high-end handbags, wine, sports memorabilia, jewelry, artwork and power tools consistent with those commonly used in burglaries and opening safes.

    The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.  If convicted of receipt of stolen goods, the defendants face up to 10 years in prison.

    The government’s case is being handled by the Criminal Section of the Office’s Long Island Division and the Office’s General Crimes Section.  Assistant United States  Attorneys Michael R. Maffei, Katherine P. Onyshko and Sean M. Sherman are in charge of the prosecution.

    The Defendants:

    DIMITRIY NEZHINSKIY
    Age:  43
    North Bergen, New Jersey

    JUAN VILLAR
    Age:  48
    Queens, New York

    E.D.N.Y. Docket No. 25-CR-40 (WFK)

    MIL Security OSI –

  • MIL-OSI Security: Two Individuals Indicted on Federal Child Pornography Charges

    Source: Office of United States Attorneys

    COUNCIL BLUFFS, Iowa – A federal grand jury in Council Bluffs returned a two-count indictment on January 29, 2025 charging two individuals with offenses related to distribution and receipt of child pornography.

    The following individuals are charged in the Indictment:

    • Jason J. Traina, 52, Rockland County, New York is charged with distribution of child pornography. On January 31, 2025, Traina made his initial appearance in the Southern District of New York. The government argued Traina should remain detained pending trial. The United States Magistrate Judge released Traina on conditions of home detention and location monitoring.
    • Carrie Marie Campbell, 40, of Council Bluffs, is charged with receipt of child pornography. On February 3, 2025, Campbell made her initial appearance in the Southern District of Iowa. Campbell was temporarily ordered detained until a detention hearing.

    Traina and Campbell each face a mandatory minimum sentence of five years in prison and a maximum sentence of twenty years in prison.

    United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation and the Council Bluffs Police Department are investigating this case, with assistance from the Rockland County District Attorney’s Office, FBI Safe Streets NY, and the Stony Point Police Department.

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

    MIL Security OSI –

  • MIL-OSI: Enact Reports Fourth Quarter and Full Year 2024 Results and Announces Quarterly Dividend

    Source: GlobeNewswire (MIL-OSI)

    GAAP Net Income of $163 million, or $1.05 per diluted share
    Adjusted Operating Income of $169 million, or $1.09 per diluted share
    Return on Equity of 13.0% and Adjusted Operating Return on Equity of 13.5%
    Record Primary insurance in-force of $269 billion, a 2% increase from fourth quarter 2023
    PMIERs Sufficiency of 167% or $2,052 million
    Book Value Per Share of $32.80 and Book Value Per Share excluding AOCI of $34.16
    Returned over $350 million of capital to shareholders in 2024
    Announces quarterly cash dividend of $0.185 per common share

    RALEIGH, N.C., Feb. 04, 2025 (GLOBE NEWSWIRE) — Enact Holdings, Inc. (Nasdaq: ACT) today announced its fourth quarter and full-year 2024 results.

    “Our very strong performance in 2024 underscores the effectiveness of our strategy and the continued successful execution of our priorities,” stated Rohit Gupta, President and CEO of Enact. “In a complex economic environment, we responsibly grew our portfolio, drove operational efficiencies, maintained a strong balance sheet and generated meaningful capital returns to our shareholders. As we look to the future, our proven strategy and disciplined execution position us well to realize the opportunities ahead and to create long-term value for our stakeholders.”

    Key Financial Highlights

    (In millions, except per share data or otherwise noted) 4Q24 3Q24 4Q23 2024 2023
    Net Income (loss) $163 $181 $157 $688 $666
    Diluted Net Income (loss) per share $1.05 $1.15 $0.98 $4.37 $4.11
    Adjusted Operating Income (loss) $169 $182 $158 $718 $676
    Adj. Diluted Operating Income (loss) per share $1.09 $1.16 $0.98 $4.56 $4.18
    NIW ($B) $13 $14 $10 $51 $53
    Primary IIF ($B) $269 $268 $263    
    Primary Persistency Rate 82% 83% 86% 83% 85%
    Net Premiums Earned $246 $249 $240 $980 $957
    Losses Incurred $24 $12 $24 $39 $27
    Loss Ratio 10% 5% 10% 4% 3%
    Operating Expenses $58 $56 $59 $223 $223
    Expense Ratio 24% 22% 25% 23% 23%
    Net Investment Income $63 $61 $56 $241 $207
    Net Investment gains (losses) $(7) $(1) $(1) $(23) $(14)
    Return on Equity 13.0% 14.7% 13.8% 14.3% 15.2%
    Adjusted Operating Return on Equity 13.5% 14.8% 13.9% 14.9% 15.5%
    PMIERs Sufficiency ($) $2,052 $2,190 $1,887    
    PMIERs Sufficiency (%) 167% 173% 161%    
               

    Fourth Quarter 2024 Financial and Operating Highlights

    • Net income was $163 million, or $1.05 per diluted share, compared with $181 million, or $1.15 per diluted share, for the third quarter of 2024 and $157 million, or $0.98 per diluted share, for the fourth quarter of 2023. Adjusted operating income was $169 million, or $1.09 per diluted share, compared with $182 million, or $1.16 per diluted share, for the third quarter of 2024 and $158 million, or $0.98 per diluted share, for the fourth quarter of 2023.
    • New insurance written (NIW) was approximately $13 billion, down 2% from the third quarter of 2024 primarily from seasonality partially offset by an estimated increase in refinance originations and up 27% from the fourth quarter of 2023 primarily driven by estimated higher originations. NIW for the current quarter was comprised of 96% monthly premium policies and 86% purchase originations.
    • Primary insurance in-force (IIF) was a record $269 billion, up from $268 billion in the third quarter of 2024 and up 2% from $263 billion in the fourth quarter of 2023.
    • Persistency remained elevated at 82%, down slightly from 83% in the third quarter of 2024 and down from 86% in the fourth quarter of 2023. The decrease year-over-year was primarily driven by a decline in mortgage rates in September 2024. Approximately 70% of our IIF had mortgage rates below 6%.
    • Net premiums earned were $246 million, down 1% from $249 million in the third quarter of 2024 and up 2% from $240 million in the fourth quarter of 2023. Net premiums decreased sequentially, primarily driven by higher ceded premiums and increased year over year driven by premium growth from attractive adjacencies and growth in primary insurance in-force, partially offset by higher ceded premiums.
    • Losses incurred for the fourth quarter of 2024 were $24 million and the loss ratio was 10%, compared to $12 million and 5%, respectively, in the third quarter of 2024 and $24 million and 10%, respectively, in the fourth quarter of 2023. The current quarter reserve release of $56 million from favorable cure performance and loss mitigation activities compares to a reserve release of $65 million and $53 million in the third quarter of 2024 and fourth quarter of 2023, respectively. The sequential increase in losses and the loss ratio were primarily driven by a lower reserve release and new delinquencies are up 1% excluding hurricane-related delinquencies.
    • Operating expenses in the current quarter were $58 million and the expense ratio was 24%. This compared to $56 million and 22%, respectively, in the third quarter of 2024 and $59 million and 25%, respectively in the fourth quarter of 2023. The sequential increase was driven by incentive-based compensation while the year-over-year decrease was driven in part by the impact of our cost reduction initiatives.
    • Net investment income was $63 million, up from $61 million in the third quarter of 2024 and $56 million in the fourth quarter of 2023, driven by the continuation of elevated interest rates and higher average invested assets.
    • Net investment loss in the quarter was $(7) million, as compared to $(1) million sequentially and $(1) million in the same period last year. The current period was primarily driven by the identification of assets that upon selling allow us to recoup losses through higher net investment income.
    • Annualized return on equity for the fourth quarter of 2024 was 13.0% and annualized adjusted operating return on equity was 13.5%. This compares to third quarter 2024 results of 14.7% and 14.8%, respectively, and to fourth quarter 2023 results of 13.8% and 13.9%, respectively.

    Capital and Liquidity

    • We returned $354 million to shareholders in 2024 inclusive of quarterly dividends and share repurchases.
    • During the quarter, we announced two quota share reinsurance agreements with a panel of highly-rated reinsurers that will cede approximately 27% of a portion of expected new insurance written for the 2025 and 2026 book years.
    • As previously announced, we paid approximately $28 million, or $0.185 per share, dividend in the fourth quarter.
    • For the full year 2024, we repurchased 7.6 million shares at a weighted average share price of $31.95 for a total of $243 million.
    • EMICO completed a distribution of approximately $230 million in the fourth quarter that will primarily be used to support our ability to return capital to shareholders and bolster financial flexibility.
    • Enact Holdings, Inc. held $243 million of cash and cash equivalents plus $298 million of invested assets as of December 31, 2024. Combined cash and invested assets increased $98 million from the prior quarter, primarily due to a contribution from EMICO, partially offset by share buybacks and our quarterly dividend.
    • PMIERs sufficiency was 167% and $2.1 billion above the PMIERs requirements, compared to 173% and $2.2 billion above the PMIERs requirements in the third quarter of 2024.

    Recent Events

    • In January 2025, Fitch Ratings (“Fitch”) upgraded the Insurer Financial Strength rating for EMICO to A from A- and also upgraded Enact’s senior debt rating to BBB. The outlook for both ratings is stable.
    • Subsequent to quarter end, we announced two excess of loss reinsurance agreements with a panel of highly rated reinsurers that will provide ~$225M and ~$260M of coverage on a portion of expected new insurance written for the 2025 and 2026 book years, respectively.
    • We repurchased approximately 2.1 million shares at an average price of $34.75 for a total of approximately $74 million in the quarter. Additionally, through January 31, 2024, we repurchased 0.6 million shares at an average price of $32.60 for a total of $19 million. There remains approximately $74 million of our $250 million repurchase authorization.
    • We announced today that the Board of Directors declared a quarterly dividend of $0.185 per common share, payable on March 14, 2025, to shareholders of record on February 21, 2025.

    Conference Call and Financial Supplement Information
    This press release, the fourth quarter 2024 financial supplement and earnings presentation are now posted on the Company’s website, https://ir.enactmi.com. Investors are encouraged to review these materials.

    Enact will discuss third quarter financial results in a conference call tomorrow, Wednesday, February 5, 2025, at 8:00 a.m. (Eastern). Participants interested in joining the call’s live question and answer session are required to pre-register by clicking here to obtain your dial-in number and unique PIN. It is recommended to join at least 15 minutes in advance, although you may register ahead of the call and dial in at any time during the call. If you wish to join the call but do not plan to ask questions, a live webcast of the event will be available on our website, https://ir.enactmi.com/news-and-events/events.

    The webcast will also be archived on the Company’s website for one year.

    About Enact
    Enact (Nasdaq: ACT), operating principally through its wholly-owned subsidiary Enact Mortgage Insurance Corporation since 1981, is a leading U.S. private mortgage insurance provider committed to helping more people achieve the dream of homeownership. Building on a deep understanding of lenders’ businesses and a legacy of financial strength, we partner with lenders to bring best-in class service, leading underwriting expertise, and extensive risk and capital management to the mortgage process, helping to put more people in homes and keep them there. By empowering customers and their borrowers, Enact seeks to positively impact the lives of those in the communities in which it serves in a sustainable way. Enact is headquartered in Raleigh, North Carolina.

    Safe Harbor Statement
    This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, guidance concerning the future return of capital and the quotations of management. These forward-looking statements are distinguished by use of words such as “will,” “may,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “predict,” “project,” “target,” “could,” “should,” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including risks related to an economic downturn or a recession in the United States and in other countries around the world; changes in political, business, regulatory, and economic conditions; changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; and other factors described in the risk factors contained in our most recent Annual Report on Form 10-K and other filings with the SEC, may cause our actual results to differ from those expressed in forward-looking statements. Although Enact believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, Enact can give no assurance that its expectations will be achieved and it undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.

    GAAP/Non-GAAP Disclosure Discussion
    This communication includes the non-GAAP financial measures entitled “adjusted operating income (loss)”, “adjusted operating income (loss) per share,” and “adjusted operating return on equity.” Adjusted operating income (loss) per share is derived from adjusted operating income (loss). The chief operating decision maker evaluates performance and allocates resources on the basis of adjusted operating income (loss). Enact Holdings, Inc. (the “Company”) defines adjusted operating income (loss) as net income (loss) excluding the after-tax effects of net investment gains (losses), restructuring costs and infrequent or unusual non-operating items, and gain (loss) on the extinguishment of debt. The Company excludes net investment gains (losses), gains (losses) on the extinguishment of debt and infrequent or unusual non-operating items because the Company does not consider them to be related to the operating performance of the Company and other activities. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities or exposure management. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized gains and losses. We do not view them to be indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted operating income. In addition, adjusted operating income (loss) per share is derived from adjusted operating income (loss) divided by shares outstanding. Adjusted operating return on equity is calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity.

    While some of these items may be significant components of net income (loss) in accordance with U.S. GAAP, the Company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) per share on a basic and diluted basis and adjusted operating return on equity, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. Adjusted operating income (loss) and adjusted operating income (loss) per share on a basic and diluted basis are not substitutes for net income (loss) available to Enact Holdings, Inc.’s common stockholders or net income (loss) available to Enact Holdings, Inc.’s common stockholders per share on a basic and diluted basis determined in accordance with U.S. GAAP. In addition, the Company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies.

    Adjustments to reconcile net income (loss) available to Enact Holdings, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate.

    The tables at the end of this press release provide a reconciliation of net income (loss) to adjusted operating income (loss) and U.S. GAAP return on equity to adjusted operating return on equity for the three months and twelve months ending December 31, 2024 and 2023, as well as for the three months ended September 30, 2024

    Exhibit A: Consolidated Statements of Income (amounts in thousands, except per share amounts)

      4Q24 3Q24 4Q23   2024     2023  
    REVENUES:          
    Premiums $245,735   $249,055   $240,101   $980,104   $957,075  
    Net investment income   62,624     61,056     56,161     240,564     207,369  
    Net investment gains (losses)   (7,167)     (1,243)     (876)     (22,807)     (14,022)  
    Other income   584     720     804     3,913     3,264  
    Total revenues   301,776     309,588     296,190     1,201,774     1,153,686  
               
    LOSSES AND EXPENSES:          
    Losses incurred   23,813     12,164     24,372     38,657     27,165  
    Acquisition and operating expenses, net of deferrals   55,325     53,091     56,560     213,310     212,491  
    Amortization of deferred acquisition costs and intangibles   2,522     2,586     2,566     9,659     10,654  
    Interest expense   12,262     12,290     12,948     51,157     51,867  
    Loss on debt extinguishment   0     0     0     10,930     0  
    Total losses and expenses   93,922     80,131     96,446     323,713     302,177  
               
    INCOME BEFORE INCOME TAXES   207,854     229,457     199,744     878,061     851,509  
    Provision for income taxes   45,116     48,788     42,436     189,993     185,998  
    NET INCOME $162,738   $180,669   $157,308   $688,068   $665,511  
               
    Net investment (gains) losses   7,167     1,243     876     22,807     14,022  
    Costs associated with reorganization   411     848     408     4,652     (131)  
    Loss on debt extinguishment   0     0     0     10,930     0  
    Taxes on adjustments   (1,591)     (439)     (270)     (8,061)     (2,917)  
    Adjusted Operating Income $168,725   $182,321   $158,322   $718,396   $676,485  
               
    Loss ratio (1)   10%     5%     10%     4%     3%  
    Expense ratio (2)   24%     22%     25%     23%     23%  
    Earnings Per Share Data:          
    Net Income per share          
    Basic $1.06   $1.16   $0.99   $4.40   $4.14  
    Diluted $1.05   $1.15   $0.98   $4.37   $4.11  
    Adj operating income per share          
    Basic $1.10   $1.17   $0.99   $4.60   $4.21  
    Diluted $1.09   $1.16   $0.98   $4.56   $4.18  
    Weighted-average common shares outstanding          
    Basic   153,537     155,561     159,655     156,277     160,870  
    Diluted   154,542     157,016     160,895     157,554     161,847  
               
    (1) The ratio of losses incurred to net earned premiums.      
    (2) The ratio of acquisition and operating expenses, net of deferrals, and amortization of deferred acquisition costs and intangibles to net earned premiums. Expenses associated with strategic transaction preparations and restructuring costs increased the expense ratio by one percentage point for the three-month period ended December 31, 2024, and zero percentage points for the three-month periods ended September 30, 2024, and December 31, 2023. Expenses associated with strategic transaction preparations and restructuring costs increased the expense ratio by one percentage point for the year ended December 31, 2024 and zero percentage points for the year ended December 31, 2023.
     

    Exhibit B: Consolidated Balance Sheets (amounts in thousands, except per share amounts)

    Assets 4Q24 3Q24 4Q23
    Investments:      
    Fixed maturity securities available-for-sale, at fair value $5,624,773   $5,652,399   $5,266,141  
    Short term investments   3,367     1,550     20,219  
    Total investments   5,628,140     5,653,949     5,286,360  
    Cash and cash equivalents   599,432     673,363     615,683  
    Accrued investment income   49,595     45,954     41,559  
    Deferred acquisition costs   23,771     24,160     25,006  
    Premiums receivable   53,031     48,834     45,070  
    Other assets   102,549     100,723     88,306  
    Deferred tax asset   65,013     50,063     88,489  
    Total assets $6,521,531   $6,597,046   $6,190,473  
           
    Liabilities and Shareholders’ Equity      
    Liabilities:      
    Loss reserves $524,715   $510,401   $518,191  
    Unearned premiums   114,680     121,382     149,330  
    Other liabilities   142,990     186,312     145,189  
    Long-term borrowings   743,050     742,706     745,416  
    Total liabilities   1,525,435     1,560,801     1,558,126  
    Equity:      
    Common stock   1,523     1,544     1,593  
    Additional paid-in capital   2,076,788     2,145,518     2,310,891  
    Accumulated other comprehensive income   (207,455)     (101,984)     (230,400)  
    Retained earnings   3,125,240     2,991,167     2,550,263  
    Total equity   4,996,096     5,036,245     4,632,347  
    Total liabilities and equity $6,521,531   $6,597,046   $6,190,473  
           
    Book value per share $32.80   $32.61   $29.07  
    Book value per share excluding AOCI $34.16   $33.27   $30.52  
           
    U.S. GAAP ROE (1)   13.0%     14.7%     13.8%  
    Net investment (gains) losses   0.6%     0.1%     0.1%  
    Costs associated with reorganization   0.0%     0.1%     0.0%  
    (Gains) losses on early extinguishment of debt   0.0%     0.0%     0.0%  
    Taxes on adjustments (0.1)%     0.0%     0.0%  
    Adjusted Operating ROE(2)   13.5%     14.8%     13.9%  
           
    Debt to Capital Ratio   13%     13%     14%  
           
    (1) Calculated as annualized net income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity
    (2) Calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity
     

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

    The MIL Network –

  • MIL-OSI: Onity Group Schedules Conference Call – Fourth Quarter and Full-Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    WEST PALM BEACH, Fla., Feb. 04, 2025 (GLOBE NEWSWIRE) — Onity Group Inc. (NYSE: ONIT) (“Onity” or the “Company”) today announced that it will hold a conference call on Thursday, February 13, 2025 at 8:30 a.m. (ET) to review the Company’s fourth quarter and full-year 2024 operating results.

    All interested parties are welcome to participate. You can access the conference call by dialing (800) 274-8461 or (203) 518-9814 approximately 10 minutes prior to the call; please reference the conference ID “Onity.” Participants can also access the conference call through a live audio webcast available from the Shareholder Relations page at onitygroup.com under Events and Presentations.

    An investor presentation will accompany the conference call and be available by visiting the Shareholder Relations page at onitygroup.com prior to the call.

    A replay of the conference call will be available via the website approximately two hours after the conclusion of the call. A telephonic replay will also be available approximately three hours following the call’s completion through February 27, 2025, by dialing (844) 512-2921 or (412) 317-6671; please reference access code 11157783.

    About Onity Group

    Onity Group Inc. (NYSE: ONIT) is a leading non-bank financial services company providing mortgage servicing and originations solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest servicers in the country, focused on delivering a variety of servicing and lending programs to consumers and business clients. Liberty is one of the nation’s largest reverse mortgage lenders dedicated to providing loans that help customers meet their personal and financial needs. We are headquartered in West Palm Beach, Florida, with offices and operations in the United States, the U.S. Virgin Islands, India and the Philippines, and have been serving our customers since 1988. For additional information, please visit onitygroup.com.

    For Further Information Contact:

    Investors:
    Valerie Haertel, VP, Investor Relations
    (561) 570-2969
    shareholderrelations@onitygroup.com

    Media:
    Dico Akseraylian, SVP, Corporate Communications
    (856) 917-0066
    mediarelations@onitygroup.com

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    SANTA CLARA, Calif., Feb. 04, 2025 (GLOBE NEWSWIRE) — AMD (NASDAQ:AMD) today announced financial results for the fourth quarter and full year of 2024. Fourth quarter revenue was a record $7.7 billion, gross margin was 51%, operating income was $871 million, net income was $482 million and diluted earnings per share was $0.29. On a non-GAAP(*) basis, gross margin was 54%, operating income was a record $2.0 billion, net income was a record $1.8 billion and diluted earnings per share was $1.09.

    For the full year 2024, AMD reported record revenue of $25.8 billion, gross margin of 49%, operating income of $1.9 billion, net income of $1.6 billion, and diluted earnings per share of $1.00. On a non-GAAP(*) basis, gross margin was a record 53%, operating income was $6.1 billion, net income was $5.4 billion and diluted earnings per share was $3.31.

    “2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth,” said AMD Chair and CEO Dr. Lisa Su. “Data Center segment annual revenue nearly doubled as EPYC processor adoption accelerated and we delivered more than $5 billion of AMD Instinct accelerator revenue. Looking into 2025, we see clear opportunities for continued growth based on the strength of our product portfolio and growing demand for high-performance and adaptive computing.”

    “We closed 2024 with a strong fourth quarter, delivering record revenue up 24% year-over-year, and accelerated earnings expansion while investing aggressively in AI and innovation to position us for long-term growth and value creation,” said AMD EVP, CFO and Treasurer Jean Hu.

    GAAP Quarterly Financial Results

      Q4 2024 Q4 2023 Y/Y Q3 2024 Q/Q
    Revenue ($M) $7,658 $6,168 Up 24% $6,819 Up 12%
    Gross profit ($M) $3,882 $2,911 Up 33% $3,419 Up 14%
    Gross margin 51% 47% Up 4 ppts 50% Up 1%
    Operating expenses ($M) $3,022 $2,575 Up 17% $2,709 Up 12%
    Operating income ($M) $871 $342 Up 155% $724 Up 20%
    Operating margin 11% 6% Up 5 ppts 11% Flat
    Net income ($M) $482 $667 Down 28% $771 Down 37%
    Diluted earnings per share $0.29 $0.41 Down 29% $0.47 Down 38%

    Non-GAAP(*) Quarterly Financial Results

      Q4 2024 Q4 2023 Y/Y Q3 2024 Q/Q
    Revenue ($M) $7,658 $6,168 Up 24% $6,819 Up 12%
    Gross profit ($M) $4,140 $3,133 Up 32% $3,657 Up 13%
    Gross margin 54% 51% Up 3 ppts 54% Flat
    Operating expenses ($M) $2,125 $1,727 Up 23% $1,956 Up 9%
    Operating income ($M) $2,026 $1,412 Up 43% $1,715 Up 18%
    Operating margin 26% 23% Up 3 ppts 25% Up 1 ppt
    Net income ($M) $1,777 $1,249 Up 42% $1,504 Up 18%
    Diluted earnings per share $1.09 $0.77 Up 42% $0.92 Up 18%

    Annual Financial Results

      GAAP Non-GAAP(*)
       2024   2023  Y/Y  2024   2023  Y/Y
    Revenue ($M) $25,785 $22,680 Up 14% $25,785 $22,680 Up 14%
    Gross profit ($M) $12,725 $10,460 Up 22% $13,759 $11,436 Up 20%
    Gross margin % 49% 46% Up 3 ppts 53% 50% Up 3 ppts
    Operating expenses ($M) $10,873 $10,093 Up 8% $7,669 $6,616 Up 16%
    Operating income ($M) $1,900 $401 Up 374% $6,138 $4,854 Up 26%
    Operating margin % 7% 2% Up 5 ppts 24% 21% Up 3 ppts
    Net income ($M) $1,641 $854 Up 92% $5,420 $4,302 Up 26%
    Diluted earnings per share $1.00 $0.53 Up 89% $3.31 $2.65 Up 25%

    Segment Summary

    • Data Center segment revenue in the quarter was a record $3.9 billion, up 69% year-over-year primarily driven by the strong ramp of AMD Instinct™ GPU shipments and growth in AMD EPYC™ CPU sales.  
      • For 2024, Data Center segment revenue was a record $12.6 billion, an increase of 94% compared to the prior year, driven by growth in both AMD Instinct and EPYC processors.
    • Client segment revenue in the quarter was a record $2.3 billion, up 58% year-over-year primarily driven by strong demand for AMD Ryzen™ processors.
      • For 2024, Client segment revenue was a record $7.1 billion, up 52% compared to the prior year, due to strong demand for AMD Ryzen processors in desktop and mobile.
    • Gaming segment revenue in the quarter was $563 million, down 59% year-over-year, primarily due to a decrease in semi-custom revenue.
      • For 2024, Gaming segment revenue was $2.6 billion, down 58% compared to the prior year, primarily due to a decrease in semi-custom revenue.
    • Embedded segment revenue in the quarter was $923 million, down 13% year-over-year, as end market demand continues to be mixed.
      • For 2024, Embedded segment revenue was $3.6 billion, down 33% from the prior year, primarily due to customers normalizing their inventory levels.

    Recent PR Highlights

    • AMD continues expanding its partnerships to deliver highly performant AI infrastructure at scale:
      • IBM announced plans to deploy AMD Instinct MI300X accelerators to power generative AI and HPC applications on IBM Cloud.
      • Vultr and AMD announced a strategic collaboration to leverage AMD Instinct MI300X accelerators and AMD ROCm™ open software to power Vultr’s cloud infrastructure for enterprise AI development and deployment.
      • Aleph Alpha announced that it will leverage AMD Instinct MI300 Series accelerators and ROCm software to enable its tokenizer-free LLM architecture, a new approach to generative AI that aims to simplify the development of sovereign AI solutions for governments and enterprises.
      • Fujitsu and AMD announced a strategic partnership to develop more sustainable computing infrastructure to accelerate open source AI.
      • AMD expanded strategic investments to advance the AI ecosystem and solutions, including investments in LiquidAI, Vultr and Absci.
    • AMD is accelerating its AI software roadmap to deliver a robust open AI stack for the ecosystem:
      • AMD released ROCm 6.3 with numerous performance enhancements enabling faster inferencing on AMD Instinct accelerators as well as additional compiler tools and libraries.
      • AMD shared an update on its 2025 plans for the ROCm software stack to enable easier adoption of and improved out of box support for both inferencing and training applications.
    • Dell and AMD announced that AMD Ryzen AI PRO processors will power new Dell Pro notebook and desktop PCs, bringing exceptional battery life, on-device AI, Copilot+ experiences and dependable productivity to enterprise users. For the first time, Dell will offer a full portfolio of commercial PCs based on Ryzen processors, marking a significant milestone in the companies’ collaboration.
    • AMD expanded its broad consumer and commercial AI PC portfolio:
      • New AMD Ryzen AI Max and Ryzen AI Max PRO Series processors deliver workstation-level performance and next-gen AI performance for gaming, content creation and complex AI-accelerated workloads.
      • Expanded Ryzen AI 300 and Ryzen AI 300 PRO Series processors bring premium AI capabilities to mainstream and entry-level notebooks, as well as enhanced security, manageability and support for Microsoft Copilot+ experiences tailored for business users.
      • Additional Ryzen 200 and Ryzen 200 PRO Series processors offer incredible AI experiences, performance and battery life for everyday users and professionals.
      • More than 150 Ryzen AI platforms are expected to be available from leading OEMs this year.
    • AMD extended its leadership in high performance computing (HPC), enabling the most powerful and many of the most energy efficient supercomputers in the world:
      • The El Capitan supercomputer at Lawrence Livermore National Laboratory became the second AMD supercomputer to surpass the exascale barrier, placing #1 on the latest Top500 list.
      • The Hunter supercomputer at the High-Performance Computing Center of the University of Stuttgart (HLRS), powered by AMD Instinct MI300A APUs, began service, delivering HPC and AI resources for scientists, researchers, industry and the public sector.
      • AMD EPYC processors and AMD Instinct accelerators power many new supercomputing projects and AI deployments, including the Eni HPC 6 system, the University of Paderborn’s latest supercomputer and the Sigma2 AS system which is slated to be the fastest system in Norway.
    • AMD powers incredible experiences for gamers across a broad range of devices:
      • At CES 2025, AMD announced new AMD Ryzen 9000X3D, Ryzen Z2 and Ryzen 9000HX processors, extending its leadership in desktop, mobile and handheld gaming.
      • AMD shared the latest version of AMD Software: Adrenalin Edition™, 24.9.1, continuing to enhance gaming experiences with AMD Fluid Motion Frames 2 and AMD HYPR-RX.
    • AMD continues to deliver leadership compute performance and capabilities at the edge with an expanded portfolio of solutions:
      • New AMD Versal™ Gen 2 portfolio with next-generation interface and memory technologies for data-intensive applications in the data center, communications, test and measurement and aerospace and defense markets.
      • AMD Versal RF Series adaptive SoCs, combining high-resolution radio frequency data converters, dedicated DSP hard IP, AI engines and programmable logic in a single chip.
      • Vodafone and AMD announced they are collaborating on mobile base station silicon chip designs to enable higher-capacity AI and digital services.

    Current Outlook

    AMD’s outlook statements are based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under “Cautionary Statement” below.

    For the first quarter of 2025, AMD expects revenue to be approximately $7.1 billion, plus or minus $300 million. At the mid-point of the revenue range, this represents year-over-year growth of approximately 30% and a sequential decline of approximately 7%. Non-GAAP gross margin is expected to be approximately 54%.

    AMD Teleconference
    AMD will hold a conference call at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its fourth quarter and full year 2024 financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at www.amd.com.

    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

    (in millions, except per share data) (Unaudited)

      Three Months Ended   Year Ended
      December 28,
    2024    		   September 28,
    2024    		   December 30,
    2023    		   December 28,
    2024    		   December 30,
    2023
    GAAP gross profit $ 3,882     $ 3,419     $ 2,911     $ 12,725     $ 10,460  
    GAAP gross margin   51 %     50 %     47 %     49 %     46 %
    Stock-based compensation   6       5       6       22       30  
    Amortization of acquisition-related intangibles   252       233       215       946       942  
    Acquisition-related and other costs (1)   —       —       1       1       4  
    Inventory loss at contract manufacturer (2)   —       —       —       65       —  
    Non-GAAP gross profit $ 4,140     $ 3,657     $ 3,133     $ 13,759     $ 11,436  
    Non-GAAP gross margin   54 %     54 %     51 %     53 %     50 %
                       
    GAAP operating expenses $ 3,022     $ 2,709     $ 2,575     $ 10,873     $ 10,093  
    GAAP operating expenses/revenue %   39 %     40 %     42 %     42 %     45 %
    Stock-based compensation   333       346       368       1,385       1,350  
    Amortization of acquisition-related intangibles   332       352       420       1,448       1,869  
    Acquisition-related and other costs (1)   46       55       60       185       258  
    Restructuring charges (3)   186       —       —       186       —  
    Non-GAAP operating expenses $ 2,125     $ 1,956     $ 1,727     $ 7,669     $ 6,616  
    Non-GAAP operating expenses/revenue %   28 %     29 %     28 %     30 %     29 %
                       
    GAAP operating income $ 871     $ 724     $ 342     $ 1,900     $ 401  
    GAAP operating margin   11 %     11 %     6 %     7 %     2 %
    Stock-based compensation   339       351       374       1,407       1,380  
    Amortization of acquisition-related intangibles   584       585       635       2,394       2,811  
    Acquisition-related and other costs (1)   46       55       61       186       262  
    Inventory loss at contract manufacturer (2)   —       —       —       65       —  
    Restructuring charges (3)   186       —       —       186       —  
    Non-GAAP operating income $ 2,026     $ 1,715     $ 1,412     $ 6,138     $ 4,854  
    Non-GAAP operating margin   26 %     25 %     23 %     24 %     21 %
      Three Months Ended
    		   Year Ended
      December 28,
    2024    		   September 28,
    2024    		   December 30,
    2023    		   December 28,
    2024    		   December 30,
    2023
    GAAP net income / earnings per share $ 482     $ 0.29     $ 771     $ 0.47     $ 667     $ 0.41     $ 1,641     $ 1.00     $ 854     $ 0.53  
    (Gains) losses on equity investments, net   —       —       (1 )     —       1       —       2       —       (1 )     —  
    Stock-based compensation   339       0.21       351       0.21       374       0.23       1,407       0.86       1,380       0.85  
    Equity income in investee   (12 )     (0.01 )     (7 )     —       (6 )     —       (33 )     (0.02 )     (16 )     (0.01 )
    Amortization of acquisition-related intangibles   584       0.36       585       0.36       635       0.39       2,394       1.46       2,811       1.73  
    Acquisition-related and other costs (1)   46       0.03       56       0.03       61       0.04       187       0.11       262       0.16  
    Inventory loss at contract manufacturer (2)   —       —       —       —       —       —       65       0.04       —       —  
    Restructuring charges (3)   186       0.11       —       —       —       —       186       0.11       —       —  
    Income tax provision   152       0.10       (251 )     (0.15 )     (483 )     (0.30 )     (429 )     (0.25 )     (988 )     (0.61 )
    Non-GAAP net income / earnings per share $ 1,777     $ 1.09     $ 1,504     $ 0.92     $ 1,249     $ 0.77     $ 5,420     $ 3.31     $ 4,302     $ 2.65  
    (1 )   Acquisition-related and other costs primarily include transaction costs, purchase price fair value adjustments for inventory, certain compensation charges, contract termination costs and workforce rebalancing charges.
    (2 )   Inventory loss at contract manufacturer is related to an incident at a third-party contract manufacturing facility.
    (3 )   Restructuring charges are related to the 2024 Restructuring Plan which comprised of employee severance charges and non-cash asset impairments.
           

    About AMD
    For more than 50 years AMD has driven innovation in high-performance computing, graphics and visualization technologies. AMD employees are focused on building leadership high-performance and adaptive products that push the boundaries of what is possible. Billions of people, leading Fortune 500 businesses and cutting-edge scientific research institutions around the world rely on AMD technology daily to improve how they live, work and play. For more information about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ: AMD) website, blog, LinkedIn and X pages.

    Cautionary Statement

    This press release contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as, the opportunities for continued growth based on AMD’s product portfolio and growing demand for high-performance and adaptive computing; AMD’s ability to position itself for long-term growth and value creation; the features, functionality, performance, availability, timing and expected benefits of future AMD products; and AMD’s expected first quarter 2025 financial outlook, including revenue and non-GAAP gross margin, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as “would,” “may,” “expects,” “believes,” “plans,” “intends,” “projects” and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this press release are based on current beliefs, assumptions and expectations, speak only as of the date of this press release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond AMD’s control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: Intel Corporation’s dominance of the microprocessor market and its aggressive business practices; Nvidia’s dominance in the graphics processing unit market and its aggressive business practices; competitive markets in which AMD’s products are sold; the cyclical nature of the semiconductor industry; market conditions of the industries in which AMD products are sold; AMD’s ability to introduce products on a timely basis with expected features and performance levels; loss of a significant customer; economic and market uncertainty; quarterly and seasonal sales patterns; AMD’s ability to adequately protect its technology or other intellectual property; unfavorable currency exchange rate fluctuations; ability of third party manufacturers to manufacture AMD’s products on a timely basis in sufficient quantities and using competitive technologies; availability of essential equipment, materials, substrates or manufacturing processes; ability to achieve expected manufacturing yields for AMD’s products; AMD’s ability to generate revenue from its semi-custom SoC products; potential security vulnerabilities; potential security incidents including IT outages, data loss, data breaches and cyberattacks; uncertainties involving the ordering and shipment of AMD’s products; AMD’s reliance on third-party intellectual property to design and introduce new products; AMD’s reliance on third-party companies for design, manufacture and supply of motherboards, software, memory and other computer platform components; AMD’s reliance on Microsoft and other software vendors’ support to design and develop software to run on AMD’s products; AMD’s reliance on third-party distributors and add-in-board partners; impact of modification or interruption of AMD’s internal business processes and information systems; compatibility of AMD’s products with some or all industry-standard software and hardware; costs related to defective products; efficiency of AMD’s supply chain; AMD’s ability to rely on third party supply-chain logistics functions; AMD’s ability to effectively control sales of its products on the gray market; long-term impact of climate change on AMD’s business; impact of government actions and regulations such as export regulations, tariffs and trade protection measures; AMD’s ability to realize its deferred tax assets; potential tax liabilities; current and future claims and litigation; impact of environmental laws, conflict minerals related provisions and other laws or regulations; evolving expectations from governments, investors, customers and other stakeholders regarding corporate responsibility matters; issues related to the responsible use of AI; restrictions imposed by agreements governing AMD’s notes, the guarantees of Xilinx’s notes and the revolving credit agreement; impact of acquisitions, joint ventures and/or strategic investments on AMD’s business and AMD’s ability to integrate acquired businesses; our ability to complete the acquisition of ZT Systems;  impact of any impairment of the combined company’s assets; political, legal and economic risks and natural disasters; future impairments of technology license purchases; AMD’s ability to attract and retain qualified personnel; and AMD’s stock price volatility. Investors are urged to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to AMD’s most recent reports on Forms 10-K and 10-Q.

    (*) In this earnings press release, in addition to GAAP financial results, AMD has provided non-GAAP financial measures including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating expenses/revenue%, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted earnings per share. AMD uses a normalized tax rate in its computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For fiscal 2024, AMD used a non-GAAP tax rate of 13%, which excludes the tax impact of pre-tax non-GAAP adjustments. AMD also provided adjusted EBITDA, free cash flow and free cash flow margin as supplemental non-GAAP measures of its performance. These items are defined in the footnotes to the selected corporate data tables provided at the end of this earnings press release. AMD is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because AMD believes it assists investors in comparing AMD’s performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance and for the other reasons described in the footnotes to the selected data tables. The non-GAAP financial measures disclosed in this earnings press release should be viewed in addition to and not as a substitute for or superior to AMD’s reported results prepared in accordance with GAAP and should be read only in conjunction with AMD’s Consolidated Financial Statements prepared in accordance with GAAP. These non-GAAP financial measures referenced are reconciled to their most directly comparable GAAP financial measures in the data tables in this earnings press release. This earnings press release also contains forward-looking non-GAAP gross margin concerning AMD’s financial outlook, which is based on current expectations as of February 4, 2025, and assumptions and beliefs that involve numerous risks and uncertainties. Adjustments to arrive at the GAAP gross margin outlook typically include stock-based compensation, amortization of acquired intangible assets and acquisition-related and other costs. The timing and impact of such adjustments are dependent on future events that are typically uncertain or outside of AMD’s control, therefore, a reconciliation to equivalent GAAP measures is not practicable at this time. AMD undertakes no intent or obligation to publicly update or revise its outlook statements as a result of new information, future events or otherwise, except as may be required by law.

    © 2025 Advanced Micro Devices, Inc. All rights reserved. AMD, the AMD Arrow logo, 3D V-Cache, Alveo, AMD Instinct, EPYC, FidelityFX, Kria, Radeon, Ryzen, Threadripper, Ultrascale+, Versal, Zynq, and combinations thereof, are trademarks of Advanced Micro Devices, Inc.

    ADVANCED MICRO DEVICES, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Millions except per share amounts and percentages) (Unaudited)

      Three Months Ended   Year Ended
      December 28,
    2024    		   September 28,
    2024    		   December 30,
    2023    		   December 28,
    2024    		   December 30,
    2023
    Net revenue $ 7,658     $ 6,819     $ 6,168     $ 25,785     $ 22,680  
    Cost of sales   3,524       3,167       3,042       12,114       11,278  
    Amortization of acquisition-related intangibles   252       233       215       946       942  
    Total cost of sales   3,776       3,400       3,257       13,060       12,220  
    Gross profit   3,882       3,419       2,911       12,725       10,460  
    Gross margin   51 %     50 %     47 %     49 %     46 %
    Research and development   1,712       1,636       1,511       6,456       5,872  
    Marketing, general and administrative   792       721       644       2,783       2,352  
    Amortization of acquisition-related intangibles   332       352       420       1,448       1,869  
    Licensing gain   (11 )     (14 )     (6 )     (48 )     (34 )
    Restructuring charges   186       —       —       186       —  
    Operating income   871       724       342       1,900       401  
    Interest expense   (19 )     (23 )     (27 )     (92 )     (106 )
    Other income (expense), net   37       36       49       181       197  
    Income before income taxes and equity income   889       737       364       1,989       492  
    Income tax provision (benefit)   419       (27 )     (297 )     381       (346 )
    Equity income in investee   12       7       6       33       16  
    Net income $ 482     $ 771     $ 667     $ 1,641     $ 854  
    Earnings per share                  
    Basic $ 0.30     $ 0.48     $ 0.41     $ 1.01     $ 0.53  
    Diluted $ 0.29     $ 0.47     $ 0.41     $ 1.00     $ 0.53  
    Shares used in per share calculation                  
    Basic   1,623       1,620       1,616       1,620       1,614  
    Diluted   1,634       1,636       1,628       1,637       1,625  

    ADVANCED MICRO DEVICES, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Millions)

      December 28,
    2024    		   December 30,
    2023
      (Unaudited)    
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 3,787     $ 3,933  
    Short-term investments   1,345       1,840  
    Accounts receivable, net   6,192       4,323  
    Inventories   5,734       4,351  
    Receivables from related parties   113       9  
    Prepaid expenses and other current assets   1,878       2,312  
    Total current assets   19,049       16,768  
    Property and equipment, net   1,802       1,589  
    Operating lease right-of-use assets   623       633  
    Goodwill   24,839       24,262  
    Acquisition-related intangibles, net   18,930       21,363  
    Investment: equity method   149       99  
    Deferred tax assets   688       366  
    Other non-current assets   3,146       2,805  
    Total Assets $ 69,226     $ 67,885  
           
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable $ 1,990     $ 2,055  
    Payables to related parties   476       363  
    Accrued liabilities   4,260       3,082  
    Current portion of long-term debt, net   —       751  
    Other current liabilities   555       438  
    Total current liabilities   7,281       6,689  
    Long-term debt, net of current portion   1,721       1,717  
    Long-term operating lease liabilities   491       535  
    Deferred tax liabilities   349       1,202  
    Other long-term liabilities   1,816       1,850  
           
    Stockholders’ equity:      
    Capital stock:      
    Common stock, par value   17       17  
    Additional paid-in capital   61,362       59,676  
    Treasury stock, at cost   (6,106 )     (4,514 )
    Retained earnings   2,364       723  
    Accumulated other comprehensive loss   (69 )     (10 )
    Total stockholders’ equity   57,568       55,892  
    Total Liabilities and Stockholders’ Equity $ 69,226     $ 67,885  

    ADVANCED MICRO DEVICES, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Millions) (Unaudited)

      Three Months Ended   Year Ended
      December 28,
    2024    		   December 30,
    2023    		   December 28,
    2024    		   December 30,
    2023
    Cash flows from operating activities:              
    Net income $ 482     $ 667     $ 1,641     $ 854  
    Adjustments to reconcile net income to net cash provided by operating activities:              
    Depreciation and amortization   172       164       671       642  
    Amortization of acquisition-related intangibles   583       635       2,393       2,811  
    Stock-based compensation   339       374       1,407       1,384  
    Amortization of operating lease right-of-use assets   31       25       113       98  
    Deferred income taxes   (300 )     (219 )     (1,163 )     (1,019 )
    Inventory loss at contract manufacturer   —       —       65       —  
    Other   62       (23 )     12       (54 )
    Changes in operating assets and liabilities              
    Accounts receivable, net   96       (379 )     (1,865 )     (1,339 )
    Inventories   (362 )     94       (1,458 )     (580 )
    Prepaid expenses and other assets   494       (34 )     343       (383 )
    Receivables from and payables to related parties, net   30       29       108       (107 )
    Accounts payable   (585 )     (181 )     (109 )     (419 )
    Accrued and other liabilities   257       (771 )     883       (221 )
    Net cash provided by operating activities   1,299       381       3,041       1,667  
    Cash flows from investing activities:              
    Purchases of property and equipment   (208 )     (139 )     (636 )     (546 )
    Purchases of short-term investments   (786 )     (410 )     (1,493 )     (3,722 )
    Proceeds from maturity of short-term investments   65       770       1,416       2,687  
    Proceeds from sale of short-term investments   25       52       616       300  
    Acquisitions, net of cash acquired   —       (117 )     (548 )     (131 )
    Related party equity method investment   —       —       (17 )     —  
    Issuance of loan to related party   (100 )     —       (100 )     —  
    Purchase of strategic investments   (210 )     (6 )     (341 )     (11 )
    Other   —       —       2       —  
    Net cash provided by (used in) investing activities   (1,214 )     150       (1,101 )     (1,423 )
    Cash flows from financing activities:              
    Repayment of debt   —       —       (750 )     —  
    Proceeds from sales of common stock through employee equity plans   127       120       279       268  
    Repurchases of common stock   (256 )     (233 )     (862 )     (985 )
    Common stock repurchases for tax withholding on employee equity plans   (42 )     (45 )     (728 )     (427 )
    Other   —       (1 )     (1 )     (2 )
    Net cash used in financing activities   (171 )     (159 )     (2,062 )     (1,146 )
    Net increase (decrease) in cash, cash equivalents and restricted cash   (86 )     372       (122 )     (902 )
    Cash, cash equivalents and restricted cash at beginning of period   3,897       3,561       3,933       4,835  
    Cash, cash equivalents and restricted cash at end of period $ 3,811     $ 3,933     $ 3,811     $ 3,933  

    ADVANCED MICRO DEVICES, INC.
    SELECTED CORPORATE DATA
    (Millions) (Unaudited)

      Three Months Ended   Year Ended
      December 28,
    2024    		   September 28,
    2024    		   December 30,
    2023    		   December 28,
    2024    		   December 30,
    2023
    Segment and Category Information(1)                  
    Data Center                  
    Net revenue $ 3,859     $ 3,549     $ 2,282     $ 12,579     $ 6,496  
    Operating income $ 1,157     $ 1,041     $ 666     $ 3,482     $ 1,267  
    Client                  
    Net revenue $ 2,313     $ 1,881     $ 1,461     $ 7,054     $ 4,651  
    Operating income (loss) $ 446     $ 276     $ 55     $ 897     $ (46 )
    Gaming                  
    Net revenue $ 563     $ 462     $ 1,368     $ 2,595     $ 6,212  
    Operating income $ 50     $ 12     $ 224     $ 290     $ 971  
    Embedded                  
    Net revenue $ 923     $ 927     $ 1,057     $ 3,557     $ 5,321  
    Operating income $ 362     $ 372     $ 461     $ 1,421     $ 2,628  
    All Other                  
    Net revenue $ —     $ —     $ —     $ —     $ —  
    Operating loss $ (1,144 )   $ (977 )   $ (1,064 )   $ (4,190 )   $ (4,419 )
    Total                  
    Net revenue $ 7,658     $ 6,819     $ 6,168     $ 25,785     $ 22,680  
    Operating income $ 871     $ 724     $ 342     $ 1,900     $ 401  
                       
    Other Data                  
    Capital expenditures $ 208     $ 132     $ 139     $ 636     $ 546  
    Adjusted EBITDA (2) $ 2,212     $ 1,887     $ 1,576     $ 6,824     $ 5,496  
    Cash, cash equivalents and short-term investments $ 5,132     $ 4,544     $ 5,773     $ 5,132     $ 5,773  
    Free cash flow (3) $ 1,091     $ 496     $ 242     $ 2,405     $ 1,121  
    Total assets $ 69,226     $ 69,636     $ 67,885     $ 69,226     $ 67,885  
    Total debt $ 1,721     $ 1,720     $ 2,468     $ 1,721     $ 2,468  
    (1 )   The Data Center segment primarily includes Artificial Intelligence (AI) accelerators, server microprocessors (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), Smart Network Interface Cards (SmartNICs) and Adaptive System-on-Chip (SoC) products for data centers.
        The Client segment primarily includes CPUs, APUs, and chipsets for desktops and notebooks.
        The Gaming segment primarily includes discrete GPUs, and semi-custom SoC products and development services.
        The Embedded segment primarily includes embedded CPUs, GPUs, APUs, FPGAs, System on Modules (SOMs), and Adaptive SoC products.
        From time to time, the Company may also sell or license portions of its IP portfolio.
        All Other category primarily includes certain expenses and credits that are not allocated to any of the operating segments, such as amortization of acquisition-related intangible asset, employee stock-based compensation expense, acquisition-related and other costs, inventory loss at contract manufacturer, restructuring charges and licensing gain.
         
    (2 )   Reconciliation of GAAP Net Income to Adjusted EBITDA
      Three Months Ended   Year Ended
    (Millions) (Unaudited) December 28,
    2024    		   September 28,
    2024    		   December 30,
    2023    		   December 28,
    2024    		   December 30,
    2023
    GAAP net income $ 482     $ 771     $ 667     $ 1,641     $ 854  
    Interest expense   19       23       27       92       106  
    Other (income) expense, net   (37 )     (36 )     (49 )     (181 )     (197 )
    Income tax provision (benefit)   419       (27 )     (297 )     381       (346 )
    Equity income in investee   (12 )     (7 )     (6 )     (33 )     (16 )
    Stock-based compensation   339       351       374       1,407       1,380  
    Depreciation and amortization   186       171       164       685       642  
    Amortization of acquisition-related intangibles   584       585       635       2,394       2,811  
    Inventory loss at contract manufacturer   —       —       —       65       —  
    Acquisition-related and other costs   46       56       61       187       262  
    Restructuring charges   186       —       —       186       —  
    Adjusted EBITDA $ 2,212     $ 1,887     $ 1,576     $ 6,824     $ 5,496  
    The Company presents “Adjusted EBITDA” as a supplemental measure of its performance. Adjusted EBITDA for the Company is determined by adjusting GAAP net income for interest expense, other (income) expense, net, income tax provision (benefit), equity income in investee, stock-based compensation, depreciation and amortization expense, amortization of acquisition-related intangibles, inventory loss at contract manufacturer, acquisition-related and other costs, and restructuring charges. The Company calculates and presents Adjusted EBITDA because management believes it is of importance to investors and lenders in relation to its overall capital structure and its ability to borrow additional funds. In addition, the Company presents Adjusted EBITDA because it believes this measure assists investors in comparing its performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance. The Company’s calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the GAAP operating measure of income or GAAP liquidity measures of cash flows from operating, investing and financing activities. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities that can affect cash flows.
    (3 )   Reconciliation of GAAP Net Cash Provided by Operating Activities to Free Cash Flow
      Three Months Ended   Year Ended
    (Millions except percentages) (Unaudited) December 28,
    2024    		   September 28,
    2024    		   December 30,
    2023    		   December 28,
    2024    		   December 30,
    2023
    GAAP net cash provided by operating activities $ 1,299     $ 628     $ 381     $ 3,041     $ 1,667  
    Operating cash flow margin %   17 %     9 %     6 %     12 %     7 %
    Purchases of property and equipment   (208 )     (132 )     (139 )     (636 )     (546 )
    Free cash flow $ 1,091     $ 496     $ 242     $ 2,405     $ 1,121  
    Free cash flow margin %   14 %     7 %     4 %     9 %     5 %
    The Company also presents free cash flow as a supplemental Non-GAAP measure of its performance. Free cash flow is determined by adjusting GAAP net cash provided by operating activities for capital expenditures, and free cash flow margin % is free cash flow expressed as a percentage of the Company’s net revenue. The Company calculates and communicates free cash flow in the financial earnings press release because management believes it is of importance to investors to understand the nature of these cash flows. The Company’s calculation of free cash flow may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view free cash flow as an alternative to GAAP liquidity measures of cash flows from operating activities.
     

    Media Contact:
    Drew Prairie
    AMD Communications
    512-602-4425
    drew.prairie@amd.com

    Investor Contact:
    Matt Ramsay
    AMD Investor Relations
    512-602-0113
    matthew.ramsay@amd.com

    The MIL Network –

  • MIL-OSI: Artisan Partners Asset Management Inc. Reports 4Q24 and Year Ended December 31, 2024 Results and Quarterly and Special Annual Dividend

    Source: GlobeNewswire (MIL-OSI)

    MILWAUKEE, Feb. 04, 2025 (GLOBE NEWSWIRE) — Artisan Partners Asset Management Inc. (NYSE: APAM) (the “Company” or “Artisan Partners”) today reported its results for the quarter and year ended December 31, 2024, and declared a quarterly and special annual dividend. The full earnings release and investor presentation can be viewed at www.apam.com.

    Conference Call

    The Company will host a conference call on February 5, 2025 at 1:00 p.m. (Eastern Time) to discuss these results. Hosting the call will be Eric Colson, Chief Executive Officer, Jason Gottlieb, President, and C.J. Daley, Chief Financial Officer. Supplemental materials that will be reviewed during the call are available on the Company’s website at www.apam.com. The call will be webcast and can be accessed via the Company’s website. Listeners may also access the call by dialing 877.328.5507 or 412.317.5423 for international callers; the conference ID is 10194959. A replay of the call will be available until February 12, 2025 at 9:00 a.m. (Eastern Time), by dialing 877.344.7529 or 412.317.0088 for international callers; the replay conference ID is 2159030. An audio recording will also be available on the Company’s website.

    About Artisan Partners

    Artisan Partners is a global investment management firm that provides a broad range of high value-added investment strategies to sophisticated clients around the world. Since 1994, the firm has been committed to attracting experienced, disciplined investment professionals to manage client assets. Artisan Partners’ autonomous investment teams oversee a diverse range of investment strategies across multiple asset classes. Strategies are offered through various investment vehicles to accommodate a broad range of client mandates.

    Source: Artisan Partners Asset Management Inc.

    Investor Relations Inquiries
    866.632.1770
    ir@artisanpartners.com

    The MIL Network –

  • MIL-OSI: Greystone Housing Impact Investors LP Announces Sale of Vantage at Tomball

    Source: GlobeNewswire (MIL-OSI)

    OMAHA, Neb., Feb. 04, 2025 (GLOBE NEWSWIRE) — Greystone Housing Impact Investors LP (NYSE: GHI) (the “Partnership”) announced today that on January 31, 2025, Vantage at Tomball, a 288-unit market rate multifamily property located in Tomball, TX, was sold at the direction of its managing member. The Partnership’s investment in Vantage at Tomball was originated in August 2020 and the Partnership contributed equity totaling $11.4 million. As a result of the sale, the Partnership’s equity investment in the property was redeemed. At closing of the sale, the Partnership received net cash of approximately $14.2 million, consisting of the return of its contributed equity and accrued preferred return. The Partnership estimates it will not recognize any gain, loss, or Cash Available for Distribution upon sale.

    “The proceeds from the sale of Vantage at Tomball will allow the Partnership to deploy capital into new accretive investments across our investment classes,” said Kenneth C. Rogozinski, Chief Executive Officer of the Partnership. “The Partnership’s overall return on the Vantage at Tomball investment was less than what has historically been achieved on prior equity investments due to rising insurance costs in the Houston metropolitan area as well as the higher interest rate environment since the last joint venture equity sale of the Vantage at Conroe investment in June 2023. However, we continue to believe in the long-term value of our multifamily property joint venture equity investment strategy.”

    Disclosure Regarding Non-GAAP Measures

    This report refers to Cash Available for Distribution (“CAD”), which is identified as a non-GAAP financial measure. We believe CAD provides relevant information about the Partnership’s operations and is necessary, along with net income, for understanding its operating results. Net income is the GAAP measure most comparable to CAD. There is no generally accepted methodology for computing CAD, and our computation of CAD may not be comparable to CAD reported by other companies. Although we consider CAD to be a useful measure of our operating performance, CAD is a non-GAAP measure and should not be considered as an alternative to net income that is calculated in accordance with GAAP, or any other measures of financial performance presented in accordance with GAAP. For the amounts disclosed herein related to this transaction, there are no reconciling items between net income per BUC, basic and diluted, and CAD per BUC, basic and diluted.

    About Greystone Housing Impact Investors LP

    Greystone Housing Impact Investors LP was formed in 1998 under the Delaware Revised Uniform Limited Partnership Act for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of mortgage revenue bonds which have been issued to provide construction and/or permanent financing for affordable multifamily, seniors and student housing properties. The Partnership is pursuing a business strategy of acquiring additional mortgage revenue bonds and other investments on a leveraged basis. The Partnership expects and believes the interest earned on these mortgage revenue bonds is excludable from gross income for federal income tax purposes. The Partnership seeks to achieve its investment growth strategy by investing in additional mortgage revenue bonds and other investments as permitted by its Second Amended and Restated Limited Partnership Agreement, dated December 5, 2022, taking advantage of attractive financing structures available in the securities market, and entering into interest rate risk management instruments. Greystone Housing Impact Investors LP press releases are available at  www.ghiinvestors.com.

    Safe Harbor Statement

    Information contained in this press release contains “forward-looking statements,” which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, risks involving current maturities of our financing arrangements and our ability to renew or refinance such maturities, fluctuations in short-term interest rates, collateral valuations, mortgage revenue bond investment valuations and overall economic and credit market conditions. For a further list and description of such risks, see the reports and other filings made by the Partnership with the Securities and Exchange Commission, including but not limited to, its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Readers are urged to consider these factors carefully in evaluating the forward-looking statements. The Partnership disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    INVESTOR CONTACT:
    Andy Grier
    Senior Vice President
    402-952-1235

    MEDIA CONTACT:
    Karen Marotta
    Greystone
    212-896-9149
    Karen.Marotta@greyco.com 

    The MIL Network –

  • MIL-OSI: UK’s Aldermore Bank selects Temenos to launch new small business savings notice accounts

    Source: GlobeNewswire (MIL-OSI)

    GRAND-LANCY, Switzerland, Feb. 04, 2025 (GLOBE NEWSWIRE) — Temenos (SIX: TEMN) today announced that UK-based Aldermore Bank (Aldermore) has selected Temenos SaaS to modernize its existing savings operations starting with quickly launching new savings notice accounts for small businesses.

    The bank will adopt Temenos Business & Corporate Enterprise Service to achieve a fast time to market and scale efficiently as it seeks to grow customer deposits and unlock new sources of revenue. Using Temenos’ end-to-end service for business and corporate banking, Aldermore will leverage pre-configured, proven capabilities across core and digital banking, to enable rapid deployment of its new products.

    Following the launch of these, Aldermore will also migrate its existing business savings accounts to Temenos, consolidating multiple legacy systems on a single, cloud-based solution with the highest security standards. This will enable the bank to increase efficiency and deliver exceptional experiences in line with its customer-centric business model.

    Part of First Rand Group, the largest financial services group in Africa, Aldermore is a multi-specialist lending and savings provider with total assets of £20.5bn. The bank is focused on helping groups underserved by mainstream providers, particularly SMEs, homeowners, landlords and intermediaries.

    With Temenos Business & Corporate Enterprise Service, Aldermore will benefit from high levels of automation to easily configure banking services that meet the specific needs of its client base. Leveraging, pre-packaged capabilities tailored to the UK market, as well as pre-defined user journeys and proven processes, Aldermore will be able to quickly move these into production and scale according to customer demand on a proven, modern solution.

    Alex Myers, Commercial Director for savings at Aldermore Bank, said: “This strategic technology investment will help us to rapidly expand our offering, providing more customer-centric solutions and exceptional experiences for the underserved small business market. With Temenos SaaS, we can launch new products in record time, with the agility to adapt to the changing needs of our customers.”

    Mark Yamin-Ali, Managing Director, Europe, Temenos, commented: “We’re delighted Aldermore has chosen Temenos SaaS to help drive its expansion of business savings. Aldermore prioritized both advanced technology and robust functionality, and Temenos was the only provider that met both needs. With pre-configured, proven capabilities tailored to the UK market and the small business sector, Temenos will help the bank to deliver a much faster time to market and increased efficiency as it looks to drive future growth.”

    Temenos is the global market leader in banking software, ranked #1 by IBS Intelligence in eight categories, including core, digital and Islamic banking, in the latest IBS Intelligence Sales League Table. Temenos was also named a Leader in the The Forrester Wave™: Digital Banking Processing Platforms, Q4 2024.

    About Aldermore Bank
    Aldermore backs more people to go for it, in life and business. We get finance to people who want to get on in life; building businesses, buying property and purchasing vehicles. And we champion equality by supporting those that the big traditional banks can’t or won’t help.

    The Group consists of two operating companies, Aldermore Bank plc and MotoNovo Finance Limited. Aldermore Bank provides finance to business owners, homeowners and landlords, and supports savers. It operates online, by phone and through networks. MotoNovo Finance helps people buy their next car, van or motorcycle.

    Aldermore Group is part of FirstRand Group, the largest financial services group in Africa by market capitalisation.

    About Temenos
    Temenos (SIX: TEMN) is the world’s leading platform for banking, serving clients in 150 countries by helping them build new banking services and state-of-the-art customer experiences. Top performing banks using Temenos software achieve cost-income ratios almost half the industry average and returns on equity 2X the industry average.

    For more information, please visit www.temenos.com.

    Media Contacts 
     
    Scott Rowe & Michael Anderson
    Temenos Global Public Relations
    Tel: +44 20 7423 3857
    Email: press@temenos.com    		 Gabriel Goonetillake
    Temenos Team at Edelman Smithfield
    Tel: +44 7813 407710
    Email: Temenos@EdelmanSmithfield.com

    The MIL Network –

  • MIL-OSI USA: Former Vice President and Controller of Publicly Traded Company Pleads Guilty to Insider Trading

    Source: US State of California

    A Florida man pleaded guilty today in the Southern District of Florida for his role in an insider trading scheme that netted him over $1.6 million in illicit profits.

    According to court documents, Stephen George, 54, of Parkland, was a member of the Finance Department at Company A from November 2017 until April 7, 2023, where he held roles including vice president and controller. Company A is a consumer-packaged goods company headquartered in Boca Raton, Florida, that is the maker of a fitness drink and whose securities are publicly traded on the NASDAQ Stock Market. In his role at Company A, George received material non-public information (MNPI) regarding Company A’s profit and revenue performance.

    George’s last day of employment at Company A was April 7, 2023. On that day, George used a Company A computer to generate out of Company A’s enterprise resource planning system a consolidated income statement showing Company A’s financial performance for the first quarter of 2023, which George knew contained MNPI. The income statement showed that Company A’s first quarter of 2023 had greatly exceeded expectations. Shortly after generating the income statement, George emailed it to himself using two personal email accounts.

    Beginning on April 10, 2023, the first trading day after his last day of employment with Company A, and continuing through May 8, 2023, George purchased Company A securities on the basis of MNPI — specifically, 20,000 shares of Company A common stock and 300 call option contracts. On May 9, 2023, after the market close, Company A publicly reported better-than-expected earnings and sales for the first quarter of 2023, including an all-time quarterly record in revenue. After the public announcement, Company A’s stock price increased significantly. During the next trading day, May 10, 2023, George sold all 20,000 shares of common stock and 300 call option contracts, resulting in over $1.6 million in personal profits.

    George pleaded guilty to one count of securities fraud. He is scheduled to be sentenced on April 28 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division; U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; and Acting Special Agent in Charge Justin E. Fleck of the FBI Miami Field Office made the announcement.

    The FBI Miami Field Office investigated the case. The Justice Department appreciates the assistance of the Financial Industry Regulatory Authority’s Criminal Prosecution Assistance Group.

    Trial Attorneys Matthew F. Sullivan and Matt Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Eli S. Rubin and Elizabeth Young for the Southern District of Florida are prosecuting the case. Assistant U.S. Attorney Nicole Grosnoff for the Southern District of Florida is handling asset forfeiture.

    MIL OSI USA News –

  • MIL-OSI Security: Former Vice President and Controller of Publicly Traded Company Pleads Guilty to Insider Trading

    Source: United States Attorneys General 1

    A Florida man pleaded guilty today in the Southern District of Florida for his role in an insider trading scheme that netted him over $1.6 million in illicit profits.

    According to court documents, Stephen George, 54, of Parkland, was a member of the Finance Department at Company A from November 2017 until April 7, 2023, where he held roles including vice president and controller. Company A is a consumer-packaged goods company headquartered in Boca Raton, Florida, that is the maker of a fitness drink and whose securities are publicly traded on the NASDAQ Stock Market. In his role at Company A, George received material non-public information (MNPI) regarding Company A’s profit and revenue performance.

    George’s last day of employment at Company A was April 7, 2023. On that day, George used a Company A computer to generate out of Company A’s enterprise resource planning system a consolidated income statement showing Company A’s financial performance for the first quarter of 2023, which George knew contained MNPI. The income statement showed that Company A’s first quarter of 2023 had greatly exceeded expectations. Shortly after generating the income statement, George emailed it to himself using two personal email accounts.

    Beginning on April 10, 2023, the first trading day after his last day of employment with Company A, and continuing through May 8, 2023, George purchased Company A securities on the basis of MNPI — specifically, 20,000 shares of Company A common stock and 300 call option contracts. On May 9, 2023, after the market close, Company A publicly reported better-than-expected earnings and sales for the first quarter of 2023, including an all-time quarterly record in revenue. After the public announcement, Company A’s stock price increased significantly. During the next trading day, May 10, 2023, George sold all 20,000 shares of common stock and 300 call option contracts, resulting in over $1.6 million in personal profits.

    George pleaded guilty to one count of securities fraud. He is scheduled to be sentenced on April 28 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division; U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; and Acting Special Agent in Charge Justin E. Fleck of the FBI Miami Field Office made the announcement.

    The FBI Miami Field Office investigated the case. The Justice Department appreciates the assistance of the Financial Industry Regulatory Authority’s Criminal Prosecution Assistance Group.

    Trial Attorneys Matthew F. Sullivan and Matt Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Eli S. Rubin and Elizabeth Young for the Southern District of Florida are prosecuting the case. Assistant U.S. Attorney Nicole Grosnoff for the Southern District of Florida is handling asset forfeiture.

    MIL Security OSI –

  • MIL-OSI: EB5 Capital Secures $100 Million Credit Facility

    Source: GlobeNewswire (MIL-OSI)

    WASHINGTON, Feb. 04, 2025 (GLOBE NEWSWIRE) — EB5 Capital, a leading Regional Center operator in the EB-5 industry, announced today that it has secured a $100 million credit facility with EagleBank (NASDAQ: EGBN), one of the largest community banks in the Washington, DC area. This new credit facility, which doubles the firm’s previous $50 million credit line with EagleBank, will significantly enhance EB5 Capital’s ability to remove syndication risk for its sponsors and provide the necessary capital to support future growth.

    “This credit facility marks a monumental step forward for EB5 Capital,” said Daniel Shiff, Chief Investment Officer & Managing Partner at EB5 Capital. “It represents our vision of building a company that not only provides valuable investment opportunities but also structures deals in ways that benefit our investors and partners.”

    The expanded credit facility strengthens EB5 Capital’s ability to confidently support its sponsors, ensuring access to the necessary funds to close deals and continue the momentum of its portfolio, which now includes over 40 U.S.-based commercial real estate projects. This increased capacity will provide EB5 Capital with greater flexibility in deal structuring, enabling the company to continue attracting high-quality investors and advancing transformative real estate developments that generate jobs and drive economic growth nationwide.

    “When we started with just a handful of people over 15 years ago, we could not have imagined the journey we would be on,” said Joseph Tilley, Chief Financial Officer at EB5 Capital. “To now qualify for a $100 million credit line from a leading bank like EagleBank is truly remarkable. It speaks volumes about the strength of our team and our continued growth as a company.”

    “EagleBank is proud to support our partners at EB5 Capital in their mission to drive job creation,” stated Evelyn Lee, EVP, Chief Lending Officer C&I at EagleBank. “We look forward to continuing to build our organization into the best community bank for commercial businesses.”

    EB5 Capital’s prior $50 million credit facility played a pivotal role in the successful execution of recent investments, and the company is poised to capture even more opportunities with this expanded credit line.

    About EB5 Capital

    EB5 Capital provides qualified foreign investors with opportunities to invest in job-creating commercial real estate projects under the United States Immigrant Investor Program (EB-5 Visa Program). Headquartered in Washington, DC, EB5 Capital’s distinguished track record and leadership in the industry has attracted investors from over 75 countries. As one of the oldest and most active Regional Center operators in the country, the firm has raised over $1 billion of foreign capital across approximately 40 EB-5 projects. 100% of our investors’ funds are protected by the Federal Deposit Insurance Corporation (FDIC) insurance prior to their deployment into our projects. Please visit www.eb5capital.com for more information.  

    About Eagle Bancorp, Inc. and EagleBank

    Eagle Bancorp, Inc. is the holding company for EagleBank, which commenced operations in 1998. EagleBank is headquartered in Bethesda, Maryland, and conducts full service commercial banking through 12 offices, located in Suburban, Maryland, Washington, D.C. and Northern Virginia. EagleBank focuses on building relationships with businesses, professionals and individuals in its marketplace.

    Contact:
    Katherine Willis
    Director, Marketing & Communications
    media@eb5capital.com

    The MIL Network –

  • MIL-OSI: Mulvihill Enhanced Split Preferred Share ETF Declares Monthly Distribution

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Feb. 04, 2025 (GLOBE NEWSWIRE) — Mulvihill Enhanced Split Preferred Share ETF has declared a monthly cash distribution in the amount of $0.08333 per unit, payable on March 7, 2025 to unitholders of record on February 28, 2025.

    For further information, please contact Investor Relations at 416.681.3966, toll free at 1.800.725.7172, email at info@mulvihill.com or visit www.mulvihill.com.

    John Germain, Senior VP & CFO   Mulvihill Capital Management Inc.
        121 King Street West
        Suite 2600
        Toronto, Ontario, M5H 3T9
         

    Commissions, trailing commissions, management fees and expenses all may be associated with exchange traded funds (ETFs). Please read the prospectus before investing. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. There are risks involved with investing in ETFs. Please read the prospectus for a complete description of risks relevant to ETFs. Investors may incur customary brokerage commissions in buying or selling ETFs.

    The MIL Network –

  • MIL-OSI: Mercury Systems Reports Second Quarter Fiscal 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    • Q2 FY25 Bookings of $242.4 million; book-to-bill ratio of 1.09
    • Record backlog of $1.4 billion; up 6% year-over-year
    • Q2 FY25 Revenue of $223.1 million; GAAP net loss of $17.6 million; and adjusted EBITDA of $22.0 million
    • Record Operating Cash Flow of $85.5 million with Free Cash Flow of $81.9 million

    ANDOVER, Mass., Feb. 04, 2025 (GLOBE NEWSWIRE) — Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), reported operating results for the second quarter of fiscal year 2025, ended December 27, 2024.

    “We delivered solid results in the second quarter of fiscal 2025 that were once again in line with or ahead of our expectations, and I’m optimistic about our ongoing efforts to improve performance as we move through the fiscal year,” said Bill Ballhaus, Mercury’s Chairman and CEO.

    “In the quarter we secured bookings of $242.4 million, for a trailing-twelve-month book-to-bill of 1.12; revenue of $223.1 million, up 13% year-over-year; adjusted EBITDA of $22.0 million and adjusted EBITDA margin of 9.9%, both up substantially year-over-year; and record free cash flow of $81.9 million, up $44.4 million year-over-year. These results reflect continued progress in each of our four priority areas, highlighted by solid execution across our broad portfolio of production and development programs, a record backlog of $1.4 billion, reduced operating expenses enabling increased positive operating leverage, and continued progress on free cash flow drivers, with net working capital down $114.9 million year-over-year.”

    Second Quarter Fiscal 2025 Results

    Total Company second quarter fiscal 2025 revenues were $223.1 million, compared to $197.5 million in the second quarter of fiscal 2024.

    Total bookings for the second quarter of fiscal 2025 were $242.4 million, yielding a book-to-bill ratio of 1.09 for the quarter.

    Total Company GAAP net loss and loss per share for the second quarter of fiscal 2025 were $17.6 million, and $0.30, respectively, compared to GAAP net loss and loss per share of $45.6 million, and $0.79, respectively, for the second quarter of fiscal 2024. Adjusted earnings (loss) per share (“adjusted EPS”) was $0.07 per share for the second quarter of fiscal 2025, compared to $(0.42) per share in the second quarter of fiscal 2024.

    Second quarter fiscal 2025 adjusted EBITDA for the total Company was $22.0 million, compared to $(21.3) million for the second quarter of fiscal 2024.

    Cash flows provided by operating activities in the second quarter of fiscal 2025 were $85.5 million, compared to $45.5 million in the second quarter of fiscal 2024. Free cash flow, defined as cash flows from operating activities less capital expenditures for property and equipment, was $81.9 million for the second quarter of fiscal 2025 and $37.5 million for the second quarter of fiscal 2024.

    Backlog

    Mercury’s total backlog at December 27, 2024 was $1.4 billion, an approximate $80.0 million increase from a year ago. Of the December 27, 2024 total backlog, $789.9 million represents orders expected to be recognized as revenue within the next 12 months.

    Conference Call Information

    Management will host a conference call and simultaneous webcast at 5:00 p.m. ET on Tuesday, February 4, 2025, to discuss Mercury’s quarterly financial results, business highlights and outlook. In addition, Company representatives may answer questions concerning business and financial developments and trends, the Company’s view on earnings forecasts, and other business and financial matters affecting the Company, the responses to which may contain information that has not been previously disclosed.

    To attend the conference call or webcast, participants should register online at ir.mrcy.com/events-presentations. Participants are requested to register a day in advance or at a minimum 15 minutes before the start of the call. A replay of the webcast will be available two hours after the call and archived on the same web page for six months.

    Use of Non-GAAP Financial Measures
    In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the Company provides adjusted EBITDA, adjusted income, adjusted earnings per share (“adjusted EPS”) and free cash flow, which are non-GAAP financial measures. Adjusted EBITDA, adjusted income, and adjusted EPS exclude certain non-cash and other specified charges. The Company believes these non-GAAP financial measures are useful to help investors understand its past financial performance and prospects for the future. However, these non-GAAP measures should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. Management believes these non-GAAP measures assist in providing a more complete understanding of the Company’s underlying operational results and trends, and management uses these measures along with the corresponding GAAP financial measures to manage the Company’s business, to evaluate its performance compared to prior periods and the marketplace, and to establish operational goals. A reconciliation of GAAP to non-GAAP financial results discussed in this press release is contained in the attached exhibits.

    Mercury Systems – Innovation that Matters®
    Mercury Systems is a technology company that delivers mission-critical processing power to the edge, making advanced technologies profoundly more accessible for today’s most challenging aerospace and defense missions. The Mercury Processing Platform allows customers to tap into innovative capabilities from silicon to system scale, turning data into decisions on timelines that matter. Mercury’s products and solutions are deployed in more than 300 programs and across 35 countries, enabling a broad range of applications in mission computing, sensor processing, command and control, and communications. Mercury is headquartered in Andover, Massachusetts, and has 23 locations worldwide. To learn more, visit mrcy.com. (Nasdaq: MRCY)

    Investors and others should note that we announce material financial information using our website (www.mrcy.com), SEC filings, press releases, public conference calls, webcasts, and social media, including X (X.com/mrcy) and LinkedIn (www.linkedin.com/company/mercury-systems). Therefore, we encourage investors and others interested in Mercury to review the information we post on the social media and other communication channels listed on our website.

    Forward-Looking Safe Harbor Statement

    This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the Company’s focus on enhanced execution of the Company’s strategic plan under a refreshed Board and leadership team. You can identify these statements by the words “may,” “will,” “could,” “should,” “would,” “plans,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” “likely,” “forecast,” “probable,” “potential,” and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs, the timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, effects of any U.S. federal government shutdown or extended continuing resolution, effects of geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in or cost increases related to completing development, engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in, or in the U.S. government’s interpretation of, federal export control or procurement rules and regulations, including tariffs, changes in, or in the interpretation or enforcement of, environmental rules and regulations, market acceptance of the Company’s products, shortages in or delays in receiving components, supply chain delays or volatility for critical components, production delays or unanticipated expenses including due to quality issues or manufacturing execution issues, adherence to required manufacturing standards, capacity underutilization, increases in scrap or inventory write-offs, failure to achieve or maintain manufacturing quality certifications, such as AS9100, the impact of supply chain disruption, inflation and labor shortages, among other things, on program execution and the resulting effect on customer satisfaction, inability to fully realize the expected benefits from acquisitions, restructurings, and operational efficiency initiatives or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, effects of shareholder activism, increases in interest rates, changes to industrial security and cyber-security regulations and requirements and impacts from any cyber or insider threat events, changes in tax rates or tax regulations, such as the deductibility of internal research and development, changes to interest rate swaps or other cash flow hedging arrangements, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, litigation, including the dispute arising with the former CEO over his resignation, unanticipated costs under fixed-price service and system integration engagements, and various other factors beyond our control. These risks and uncertainties also include such additional risk factors as are discussed in the Company’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 28, 2024 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

    Contact:
    Tyler Hojo, CFA, Vice President of Investor Relations
    Mercury Systems, Inc.
    978-967-3676

    Mercury Systems and Innovation That Matters are registered trademarks of Mercury Systems, Inc. Other product and company names mentioned may be trademarks and/or registered trademarks of their respective holders.

    MERCURY SYSTEMS, INC.  
    UNAUDITED CONSOLIDATED BALANCE SHEETS  
    (In thousands)      
      December 27,   June 28,
        2024       2024  
           
    Assets      
    Current assets:      
    Cash and cash equivalents $ 242,565     $ 180,521  
    Accounts receivable, net   104,491       111,441  
    Unbilled receivables and costs in excess of billings, net   278,657       304,029  
    Inventory   344,415       335,300  
    Prepaid expenses and other current assets   20,556       22,493  
    Total current assets   990,684       953,784  
           
    Property and equipment, net   111,459       110,353  
    Goodwill   938,093       938,093  
    Intangible assets, net   226,142       250,512  
    Operating lease right-of-use assets, net   56,525       60,860  
    Deferred tax asset   71,712       58,612  
    Other non-current assets   6,840       6,691  
    Total assets $ 2,401,455     $ 2,378,905  
           
    Liabilities and Shareholders’ Equity      
    Current liabilities:      
    Accounts payable $ 64,778     $ 81,068  
    Accrued expenses   40,471       42,926  
    Accrued compensation   32,015       36,398  
    Income taxes payable   306       109  
    Deferred revenues and customer advances   135,963       73,915  
    Total current liabilities   273,533       234,416  
           
    Income taxes payable   7,713       7,713  
    Long-term debt   591,500       591,500  
    Operating lease liabilities   57,805       62,584  
    Other non-current liabilities   10,628       9,917  
    Total liabilities   941,179       906,130  
           
    Shareholders’ equity:      
    Preferred stock   —       —  
    Common stock   587       581  
    Additional paid-in capital   1,266,926       1,242,402  
    Retained earnings   184,695       219,799  
    Accumulated other comprehensive income   8,068       9,993  
    Total shareholders’ equity   1,460,276       1,472,775  
    Total liabilities and shareholders’ equity $ 2,401,455     $ 2,378,905  
    MERCURY SYSTEMS, INC.
    UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS        
    (In thousands, except per share data)
      Second Quarters Ended   Six Months Ended
      December 27, 2024   December 29, 2023   December 27, 2024   December 29, 2023
    Net revenues $ 223,125     $ 197,463     $ 427,556     $ 378,454  
    Cost of revenues(1)   162,299       165,943       314,940       296,407  
    Gross margin   60,826       31,520       112,616       82,047  
                   
    Operating expenses:              
    Selling, general and administrative(1)   40,501       44,470       73,654       80,264  
    Research and development(1)   21,368       28,476       39,751       60,348  
    Amortization of intangible assets   11,154       12,270       22,389       24,817  
    Restructuring and other charges   40       2       2,300       9,548  
    Acquisition costs and other related expenses   178       231       355       1,200  
    Total operating expenses   73,241       85,449       138,449       176,177  
                   
    Loss from operations   (12,415 )     (53,929 )     (25,833 )     (94,130 )
                   
    Interest income   406       29       950       132  
    Interest expense   (8,430 )     (8,674 )     (17,336 )     (16,537 )
    Other expense, net   (3,865 )     (1,148 )     (5,204 )     (2,922 )
                   
    Loss before income tax benefit   (24,304 )     (63,722 )     (47,423 )     (113,457 )
    Income tax benefit   (6,725 )     (18,141 )     (12,319 )     (31,168 )
    Net loss $ (17,579 )   $ (45,581 )   $ (35,104 )   $ (82,289 )
                   
    Basic net loss per share $ (0.30 )   $ (0.79 )   $ (0.60 )   $ (1.44 )
                   
    Diluted net loss per share $ (0.30 )   $ (0.79 )   $ (0.60 )   $ (1.44 )
                   
    Weighted-average shares outstanding:              
    Basic   58,561       57,424       58,454       57,314  
    Diluted   58,561       57,424       58,454       57,314  
                   
    (1) Includes stock-based compensation expense, allocated as follows:
    Cost of revenues $ (167 )   $ 4     $ (54 )   $ 820  
    Selling, general and administrative $ 6,317     $ 5,742     $ 10,928     $ 7,503  
    Research and development $ 1,812     $ 1,640     $ 3,180     $ 3,180  
    MERCURY SYSTEMS, INC.
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
      Second Quarters Ended   Six Months Ended
      December 27, 2024   December 29, 2023   December 27, 2024   December 29, 2023
    Cash flows from operating activities:              
    Net loss $ (17,579 )   $ (45,581 )   $ (35,104 )   $ (82,289 )
    Depreciation and amortization   20,922       22,193       42,142       44,885  
    Other non-cash items, net   5,083       1,640       10,685       (2,011 )
    Cash settlement for termination of interest rate swap   —       —       —       7,403  
    Changes in operating assets and liabilities   77,036       67,242       53,079       38,438  
                   
    Net cash provided by operating activities   85,462       45,494       70,802       6,426  
                   
    Cash flows from investing activities:              
    Purchases of property and equipment $ (3,555 )   $ (7,990 )   $ (9,791 )   $ (16,005 )
    Other investing activities   1,900       —       1,900       —  
                   
    Net cash used in investing activities   (1,655 )     (7,990 )     (7,891 )     (16,005 )
                   
    Cash flows from financing activities:              
    Proceeds from employee stock plans   1,492       3,163       1,492       3,163  
    Borrowings under credit facilities   —       40,000       —       105,000  
    Payments of deferred financing and offering costs   —       (1,931 )     (2,249 )     (1,931 )
    Payments for retirement of common stock   —       (15 )     —       (15 )
                   
    Net cash provided by (used in) financing activities   1,492       41,217       (757 )     106,217  
                   
    Effect of exchange rate changes on cash and cash equivalents   (857 )     556       (110 )     445  
                   
    Net increase in cash and cash equivalents   84,442       79,277       62,044       97,083  
                   
    Cash and cash equivalents at beginning of period   158,123       89,369       180,521       71,563  
                   
    Cash and cash equivalents at end of period $ 242,565     $ 168,646     $ 242,565     $ 168,646  
    UNAUDITED SUPPLEMENTAL INFORMATION RECONCILIATION OF GAAP TO NON-GAAP MEASURES
    (In thousands)            
                 

    Adjusted EBITDA, a non-GAAP measure for reporting financial performance, excludes the impact of certain items and, therefore, has not been calculated in accordance with GAAP. Management believes that exclusion of these items assists in providing a more complete understanding of the Company’s underlying results and trends, and management uses these measures along with the corresponding GAAP financial measures to manage the Company’s business, to evaluate its performance compared to prior periods and the marketplace, and to establish operational goals. The adjustments to calculate this non-GAAP financial measure, and the basis for such adjustments, are outlined below:

    Other non-operating adjustments. The Company records other non-operating adjustments such as gains or losses on foreign currency remeasurement, investments and fixed asset sales or disposals among other adjustments. These adjustments may vary from period to period without any direct correlation to underlying operating performance.

    Interest income and expense. The Company receives interest income on investments and incurs interest expense on loans, financing leases and other financing arrangements. These amounts may vary from period to period due to changes in cash and debt balances and interest rates driven by general market conditions or other circumstances which may be outside of the normal course of the Company’s operations.

    Income taxes. The Company’s GAAP tax expense can fluctuate materially from period to period due to tax adjustments that are not directly related to underlying operating performance or to the current period of operations.

    Depreciation. The Company incurs depreciation expense related to capital assets purchased to support the ongoing operations of the business. These assets are recorded at cost or fair value and are depreciated using the straight-line method over the useful life of the asset. Purchases of such assets may vary significantly from period to period and without any direct correlation to underlying operating performance.

    Amortization of intangible assets. The Company incurs amortization of intangible assets primarily as a result of acquired intangible assets such as backlog, customer relationships and completed technologies but also due to licenses, patents and other arrangements. These intangible assets are valued at the time of acquisition or upon receipt of right to use the asset, amortized over the requisite life and generally cannot be changed or influenced by management after acquisition.

    Restructuring and other charges. The Company incurs restructuring and other charges in connection with management’s decisions to undertake certain actions to realign operating expenses through workforce reductions and the closure of certain Company facilities, businesses and product lines. The Company’s adjustments reflected in restructuring and other charges are typically related to acquisitions and organizational redesign programs initiated as part of discrete post-acquisition integration activities. Management believes these items are non-routine and may not be indicative of ongoing operating results.

    Impairment of long-lived assets. The Company incurs impairment charges of long-lived assets based on events that may or may not be within the control of management. Management believes these items are outside the normal operations of the Company’s business and are not indicative of ongoing operating results.

    Acquisition, financing and other third party costs. The Company incurs transaction costs related to acquisition and potential acquisition opportunities, such as legal, accounting, and other third party advisory fees. The Company may also incur third party costs, such as legal, banking, communications, proxy solicitation, and other third party advisory fees in connection with engagements by activist investors or unsolicited acquisition offers. Although the Company may incur such third party costs and other related charges and adjustments, it is not indicative that any transaction will be consummated. Additionally, the Company incurs unused revolver and bank fees associated with maintaining its credit facility as well as non-cash financing expenses associated with obtaining its credit facility. Management believes these items are outside the normal operations of the Company’s business and are not indicative of ongoing operating results.

    Fair value adjustments from purchase accounting. As a result of applying purchase accounting rules to acquired assets and liabilities, certain fair value adjustments are recorded in the opening balance sheet of acquired companies. These adjustments are then reflected in the Company’s income statements in periods subsequent to the acquisition. In addition, the impact of any changes to originally recorded contingent consideration amounts are reflected in the income statements in the period of the change. Management believes these items are outside the normal operations of the Company and are not indicative of ongoing operating results.

    Litigation and settlement income and expense. The Company periodically receives income and incurs expenses related to pending claims and litigation and associated legal fees and potential case settlements and/or judgments. Although the Company may incur such costs and other related charges and adjustments, it is not indicative of any particular outcome until the matter is fully resolved. Management believes these items are outside the normal operations of the Company’s business, often occur in periods other than the period of activity, and are not indicative of ongoing operating results. The Company periodically receives warranty claims from customers and makes warranty claims towards its vendors and supply chain. Management believes the expenses and gains associated with these recurring warranty items are within the normal operations and operating cycle of the Company’s business. Therefore, management deems no adjustments are necessary unless under extraordinary circumstances.

    Stock-based and other non-cash compensation expense. The Company incurs expense related to stock-based compensation included in its GAAP presentation of cost of revenues, selling, general and administrative expense and research and development expense. The Company also incurs non-cash based compensation in the form of pension related expenses and matching contributions to its defined contribution plan. Although stock-based and other non-cash compensation is an expense of the Company and viewed as a form of compensation, these expenses vary in amount from period to period, and are affected by market forces that are difficult to predict and are not within the control of management, such as the market price and volatility of the Company’s shares, risk-free interest rates and the expected term and forfeiture rates of the awards, as well as pension actuarial assumptions. Management believes that exclusion of these expenses allows comparisons of operating results to those of other companies, both public, private or foreign, that disclose non-GAAP financial measures that exclude stock-based compensation and other non-cash compensation.

    Mercury uses adjusted EBITDA as an important indicator of the operating performance of its business. Management excludes the above-described items from its internal forecasts and models when establishing internal operating budgets, supplementing the financial results and forecasts reported to the Company’s board of directors, determining a portion of bonus compensation for executive officers and other key employees based on operating performance, evaluating short-term and long-term operating trends in the Company’s operations, and allocating resources to various initiatives and operational requirements. The Company believes that adjusted EBITDA permits a comparative assessment of its operating performance, relative to its performance based on its GAAP results, while isolating the effects of charges that may vary from period to period without direct correlation to underlying operating performance. The Company believes that these non-GAAP financial adjustments are useful to investors because they allow investors to evaluate the effectiveness of the methodology and information used by management in its financial and operational decision-making. The Company believes that trends in its adjusted EBITDA are valuable indicators of its operating performance.

    Adjusted EBITDA is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. The Company expects to continue to incur expenses similar to the adjusted EBITDA financial adjustments described above, and investors should not infer from the Company’s presentation of this non-GAAP financial measure that these costs are unusual, infrequent or non-recurring.

    The following table reconciles the most directly comparable GAAP financial measure to the non-GAAP financial measure.

      Second Quarters Ended   Six Months Ended
      December 27, 2024   December 29, 2023   December 27, 2024   December 29, 2023
    Net loss $ (17,579 )   $ (45,581 )   $ (35,104 )   $ (82,289 )
    Other non-operating adjustments, net   2,549       (1,042 )     814       (311 )
    Interest expense, net   8,024       8,645       16,386       16,405  
    Income tax benefit   (6,725 )     (18,141 )     (12,319 )     (31,168 )
    Depreciation   9,768       9,923       19,753       20,068  
    Amortization of intangible assets   11,154       12,270       22,389       24,817  
    Restructuring and other charges   40       2       2,300       9,548  
    Impairment of long-lived assets   —       —       —       —  
    Acquisition, financing and other third party costs   1,109       860       3,440       2,192  
    Fair value adjustments from purchase accounting   178       178       355       355  
    Litigation and settlement expense, net   2,087       1,383       3,481       1,886  
    Stock-based and other non-cash compensation expense   11,424       10,195       21,984       19,146  
    Adjusted EBITDA $ 22,029     $ (21,308 )   $ 43,479     $ (19,351 )
     

    Free cash flow, a non-GAAP measure for reporting cash flow, is defined as cash provided by operating activities less capital expenditures for property and equipment, which includes capitalized software development costs, and, therefore, has not been calculated in accordance with GAAP. Management believes free cash flow provides investors with an important perspective on cash available for investment and acquisitions after making capital investments required to support ongoing business operations and long-term value creation. The Company believes that trends in its free cash flow are valuable indicators of its operating performance and liquidity.

    Free cash flow is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. The Company expects to continue to incur expenditures similar to the free cash flow financial adjustment described above, and investors should not infer from the Company’s presentation of this non-GAAP financial measure that these expenditures reflect all of the Company’s obligations which require cash.

    The following table reconciles the most directly comparable GAAP financial measure to the non-GAAP financial measure.

      Second Quarters Ended   Six Months Ended
      December 27, 2024   December 29, 2023   December 27, 2024   December 29, 2023
    Net cash provided by operating activities $ 85,462     $ 45,494     $ 70,802     $ 6,426  
    Purchases of property and equipment   (3,555 )     (7,990 )     (9,791 )     (16,005 )
    Free cash flow $ 81,907     $ 37,504     $ 61,011     $ (9,579 )
    UNAUDITED SUPPLEMENTAL INFORMATION RECONCILIATION OF GAAP TO NON-GAAP MEASURES
    (In thousands, except per share data)
     

    Adjusted income and adjusted earnings per share (“adjusted EPS”) are non-GAAP measures for reporting financial performance, exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. Management believes that exclusion of these items assists in providing a more complete understanding of the Company’s underlying results and trends and allows for comparability with its peer company index and industry. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. The Company uses these measures along with the corresponding GAAP financial measures to manage the Company’s business and to evaluate its performance compared to prior periods and the marketplace. The Company defines adjusted income as income before other non-operating adjustments, amortization of intangible assets, restructuring and other charges, impairment of long-lived assets, acquisition, financing and other third party costs, fair value adjustments from purchase accounting, litigation and settlement income and expense, and stock-based and other non-cash compensation expense. The impact to income taxes includes the impact to the effective tax rate, current tax provision and deferred tax provision(1). Adjusted EPS expresses adjusted income on a per share basis using weighted average diluted shares outstanding.

    The following tables reconcile the most directly comparable GAAP financial measures to the non-GAAP financial measures.

      Second Quarters Ended
      December 27, 2024   December 29, 2023
    Net loss and loss per share $ (17,579 )   $ (0.30 )   $ (45,581 )   $ (0.79 )
    Other non-operating adjustments, net   2,549           (1,042 )    
    Amortization of intangible assets   11,154           12,270      
    Restructuring and other charges   40           2      
    Impairment of long-lived assets   —           —      
    Acquisition, financing and other third party costs   1,109           860      
    Fair value adjustments from purchase accounting   178           178      
    Litigation and settlement expense, net   2,087           1,383      
    Stock-based and other non-cash compensation expense   11,424           10,195      
    Impact to income taxes(1)   (7,022 )         (2,446 )    
    Adjusted income (loss) and adjusted earnings (loss) per share(2) $ 3,940     $ 0.07     $ (24,181 )   $ (0.42 )
                   
    Diluted weighted-average shares outstanding       58,843           57,424  
                   
    (1) Impact to income taxes is calculated by recasting income before income taxes to include the items involved in determining adjusted income and recalculating the income tax provision using this adjusted income from operations before income taxes. The recalculation also adjusts for any discrete tax expense or benefit related to the items.
    (2) Adjusted earnings per share is calculated using diluted shares whereas Net loss per share or Adjusted loss per share is calculated using basic shares. There were no impact to the calculation of adjusted earnings per share as a result of this for the second quarters ended December 27, 2024 and December 29, 2023.
      Six Months Ended
      December 27, 2024   December 29, 2023
    Net loss and loss per share $ (35,104 )   $ (0.60 )   $ (82,289 )   $ (1.44 )
    Other non-operating adjustments, net   814           (311 )    
    Amortization of intangible assets   22,389           24,817      
    Restructuring and other charges   2,300           9,548      
    Impairment of long-lived assets   —           —      
    Acquisition, financing and other third party costs   3,440           2,192      
    Fair value adjustments from purchase accounting   355           355      
    Litigation and settlement expense, net   3,481           1,886      
    COVID related expenses   —           —      
    Stock-based and other non-cash compensation expense   21,984           19,146      
    Impact to income taxes(1)   (13,275 )         (13,204 )    
    Adjusted income (loss) and adjusted earnings (loss) per share(2) $ 6,384     $ 0.11     $ (37,860 )   $ (0.66 )
                   
    Diluted weighted-average shares outstanding       58,752           57,314  
                   
    (1) Impact to income taxes is calculated by recasting income before income taxes to include the items involved in determining adjusted income and recalculating the income tax provision using this adjusted income from operations before income taxes. The recalculation also adjusts for any discrete tax expense or benefit related to the items.
    (2) Adjusted earnings per share is calculated using diluted shares whereas Net loss per share is calculated using basic shares. There were no impact to the calculation of adjusted earnings per share as a result of this for the six months ended December 27, 2024 and December 29, 2023.

    The MIL Network –

  • MIL-OSI: Gibson Energy Announces Chief Financial Officer Transition

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, Feb. 04, 2025 (GLOBE NEWSWIRE) — Gibson Energy Inc. (“Gibson” or the “Company”) announced that Sean Brown has stepped down today from his role as Senior Vice President and Chief Financial Officer.

    “On behalf of the Board and leadership team, I want to thank Sean for his role in building Gibson’s strong financial foundation,” said Curtis Philippon, President & Chief Executive Officer. “Also, his contributions to date to ensure a seamless transition are appreciated and I wish him the best in his future endeavors.”

    Concurrently, the Company is pleased to announce that effective immediately Riley Hicks, Senior Vice President, Corporate Development, Marketing & Strategy, will succeed Mr. Brown as Senior Vice President and Chief Financial Officer.

    “Since joining Gibson in 2018, Riley has held critical roles in several areas of the business and was the ideal choice to step into the role of Chief Financial Officer,” Mr. Philippon added. “His deep knowledge of the business and proven leadership will be instrumental in driving our financial strategy forward, delivering long-term value to shareholders and will help position Gibson for future successes.”

    Riley Hicks Biography
    Mr. Hicks joined Gibson in 2018 and most recently held the position of Senior Vice President, Corporate Development, Marketing & Strategy. Prior to this position, Riley held various leadership roles across the finance, commercial, and marketing organizations. Before joining the Company, Riley developed a comprehensive understanding of the midstream and energy sector through experience in accounting, equity research, and corporate valuation consulting for energy clients. Riley holds a Bachelor of Science in Economics degree from Trinity College, an MBA from Northeastern University, and is a member of the Chartered Professional Accountants of Canada and Alberta (CPA).

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

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

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

    For further information, please contact:

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

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

    The MIL Network –

  • MIL-OSI: H&R Block Reports Fiscal 2025 Second Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    — Repurchased $190 Million of Shares—

    — Reaffirms Full Year Outlook —

    KANSAS CITY, Mo., Feb. 04, 2025 (GLOBE NEWSWIRE) — H&R Block, Inc. (NYSE: HRB) (the “Company”) today released financial results1 for its fiscal 2025 second quarter ended December 31, 2024.

    “I am pleased with our performance in the first half of the year,” said Jeff Jones, president and chief executive officer. “We are reaffirming our fiscal 2025 outlook, and are well prepared to deliver this tax season and in the second half of the fiscal year.”

    Fiscal 2025 Second Quarter Results and Key Financial Metrics
    “We are on track for the year and we are well positioned to deliver strong results,” said Tiffany Mason, chief financial officer. “During the second quarter, we repurchased 3.2 million shares for $190 million, reflecting our confidence in the long-term value of our stock and our commitment to delivering shareholder returns.”

    For the second quarter, the Company delivered total revenue of $179.1 million, which was flat to the prior year. Increases in revenue from Wave and international tax preparation were offset by lower interest and fee income on Emerald Advance® due to a decrease in loan originations.

    Total operating expenses of $472.4 million increased by $25.8 million as expected, primarily due to higher tax professional and corporate wages, increased healthcare costs, an increase in occupancy costs and the timing of marketing expenses versus the prior year.

    Pretax loss increased by $29.4 million to $312.3 million.

    Loss per share from continuing operations2 increased to $(1.79) from $(1.33) and adjusted loss per share from continuing operations2 increased to $(1.73) from $(1.27), due to a higher net loss and fewer shares outstanding as a result of share repurchases, which are accretive to earnings per share on a full-year basis.

    Capital Allocation

    The Company reported the following related to its capital structure:

    • Repurchased and retired 3.2 million shares at an aggregate price of $190.5 million, or $58.65 per share in the second quarter.
    • The Company has approximately $1.1 billion remaining on its $1.5 billion share repurchase program.

    Since 2016, the Company has returned more than $4.4 billion to shareholders in the form of dividends and share repurchases, buying back over 43% of its shares outstanding3.

    Fiscal Year 2025 Outlook Reaffirmed

    The Company continues to expect:

    • Revenue to be in the range of $3.69 to $3.75 billion.
    • EBITDA4 to be in the range of $975 million to $1.02 billion.
    • Effective tax rate to be approximately 13%, resulting in a one-time benefit to EPS of approximately 50 cents.
    • Adjusted Diluted Earnings Per Share4 to be in the range of $5.15 to $5.35.

    Conference Call

    The Company will host a conference call for analysts and investors to discuss second quarter 2025 results at 4:30 p.m. ET on Tuesday, February 4, 2025. To join live, participants must register at https://register.vevent.com/register/BI06a7e8ddc07544a6853995c1fe75ea2c. Once registered, the participant will receive a dial-in number and unique PIN to access the call. Please join approximately 5 minutes prior to the scheduled start time.

    The call, along with a presentation for viewing, will also be webcast in a listen-only format for the media and general public. The webcast can be accessed directly at https://edge.media-server.com/mmc/p/qdeqpgfd and will be available for replay 2 hours after the call is concluded and continuing for 90 days.

    About H&R Block

    H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. The company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time, and be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News.

    About Non-GAAP Financial Information

    This press release and the accompanying tables include non-GAAP financial information. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles, please see the section of the accompanying tables titled “Non-GAAP Financial Information.”

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “commits,” “seeks,” “estimates,” “projects,” “forecasts,” “targets,” “would,” “will,” “should,” “goal,” “could” or “may” or other similar expressions. Forward-looking statements provide management’s current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, client trajectory, income, effective tax rate, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volumes or other financial items, descriptions of management’s plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. They may also include the expected impact of external events beyond the Company’s control, such as outbreaks of infectious disease, severe weather events, natural or manmade disasters, or changes in the regulatory environment in which we operate. All forward-looking statements speak only as of the date they are made and reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to a variety of economic, competitive and regulatory factors, many of which are beyond the Company’s control, that are described in our Annual Report on Form 10-K for the most recently completed fiscal year in the section entitled “Risk Factors” and additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. You may get such filings for free at our website at https://investors.hrblock.com. In addition, factors that may cause the Company’s actual estimated effective tax rate to differ from estimates include the Company’s actual results from operations compared to current estimates, future discrete items, changes in interpretations and assumptions the Company has made, future actions of the Company, or increases in applicable tax rates in jurisdictions where the Company operates. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

    1 All amounts in this release are unaudited. Unless otherwise noted, all comparisons refer to the current period compared to the corresponding prior year period.
    2 All per share amounts are based on fully diluted shares at the end of the corresponding period. The Company reports non-GAAP financial measures of performance, including adjusted earnings per share (EPS), earnings before interest, tax, depreciation, and amortization (EBITDA) from continuing operations, free cash flow, and free cash flow yield, which it considers to be useful metrics for management and investors to evaluate and compare the ongoing operating performance of the Company. See “About Non-GAAP Financial Information” below for more information regarding financial measures not prepared in accordance with generally accepted accounting principles (GAAP).
    3 Shares outstanding calculated as of April 30, 2016.
    4 Adjusted Diluted EPS and EBITDA from continuing operations are non-GAAP financial measures. Future period non-GAAP outlook includes adjustments for items not indicative of our core operations, which may include, without limitation, items described in the below section titled “Non-GAAP Financial Information” and in the accompanying tables. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual, or unanticipated charges, expenses or gains, or other items that may not directly correlate to the underlying performance of our business operations. The exact amounts of these adjustments are not currently determinable but may be significant. It is therefore not practicable to provide the comparable GAAP measures or reconcile this non-GAAP outlook to the most comparable GAAP measures.

    For Further Information
         
    Investor Relations:   Colby Brown, (816) 854-4559, colby.brown@hrblock.com
        Jordyn Eskijian, (816) 854-5674, jordyn.eskijian@hrblock.com
    Media Relations:   Teri Daley, (816) 854-3787, teri.daley@hrblock.com
        Media Desk, mediadesk@hrblock.com
         
    FINANCIAL RESULTS   (unaudited, in 000s – except per share amounts)
        Three months ended December 31,   Six months ended December 31,
          2024       2023       2024       2023  
    REVENUES:                
    U.S. tax preparation and related services:                
    Assisted tax preparation   $              48,380     $ 48,342     $              91,343     $ 87,605  
    Royalties                      3,499       5,454                        9,351       11,155  
    DIY tax preparation                    13,744       13,111                      16,980       16,959  
    Refund Transfers                          637       813                        1,497       1,955  
    Peace of Mind® Extended Service Plan                    16,145       17,440                      39,242       42,287  
    Tax Identity Shield®                      4,013       4,694                        7,922       9,274  
    Other                    11,824       9,592                      25,633       20,572  
    Total U.S. tax preparation and related services                    98,242       99,446                    191,968       189,807  
    Financial services:                
    Emerald Card® and SpruceSM                    10,148       11,700                      18,974       20,333  
    Interest and fee income on Emerald Advance®                    12,308       15,235                      12,308       15,533  
    Total financial services                    22,456       26,935                      31,282       35,866  
    International                    31,811       29,569                      96,666       90,134  
    Wave                    26,561       23,133                      52,964       47,076  
    Total revenues   $            179,070     $ 179,083     $            372,880     $ 362,883  
    Compensation and benefits:                
    Field wages                    81,565       77,795                    149,659       140,230  
    Other wages                    78,731       74,671                    156,066       146,769  
    Benefits and other compensation                    38,402       36,063                      77,156       71,311  
                       198,698       188,529                    382,881       358,310  
    Occupancy                  104,999       101,194                    206,317       200,479  
    Marketing and advertising                    14,863       11,305                      24,835       16,786  
    Depreciation and amortization                    29,195       30,107                      58,026       60,332  
    Bad debt                    19,416       21,754                      22,146       26,552  
    Other                  105,190       93,626                    200,297       174,182  
    Total operating expenses                  472,361       446,515                    894,502       836,641  
    Other income (expense), net                      2,744       5,922                      14,661       15,758  
    Interest expense on borrowings                   (21,752 )     (21,364 )                   (37,599 )     (37,234 )
    Pretax loss                 (312,299 )     (282,874 )                 (544,560 )     (495,234 )
    Income tax benefit                   (69,833 )     (93,758 )                 (130,673 )     (143,245 )
    Net loss from continuing operations                 (242,466 )     (189,116 )                 (413,887 )     (351,989 )
    Net loss from discontinued operations                        (954 )     (639 )                     (2,109 )     (1,248 )
    Net loss   $           (243,420 )   $ (189,755 )   $           (415,996 )   $ (353,237 )
    BASIC AND DILUTED LOSS PER SHARE:                
    Continuing operations   $                 (1.79 )   $ (1.33 )   $                 (3.02 )   $ (2.44 )
    Discontinued operations                       (0.01 )     —                         (0.01 )     (0.01 )
    Consolidated   $                 (1.80 )   $ (1.33 )   $                 (3.03 )   $ (2.45 )
    WEIGHTED AVERAGE DILUTED SHARES                  135,563       142,340                    137,359       144,307  
    Adjusted diluted EPS (1)   $                 (1.73 )   $ (1.27 )   $                 (2.89 )   $ (2.31 )
    EBITDA (1)   $           (261,352 )   $ (231,403 )   $           (448,935 )   $ (397,668 )
                                     

    (1) All non-GAAP measures are results from continuing operations. See “Non-GAAP Financial Information” for a reconciliation of non-GAAP measures.

    CONSOLIDATED BALANCE SHEETS   (unaudited, in 000s – except per share data)
    As of   December 31, 2024   June 30, 2024
             
    ASSETS        
    Cash and cash equivalents   $                   320,051     $ 1,053,326  
    Cash and cash equivalents – restricted                           21,473       21,867  
    Receivables, net                         321,171       69,075  
    Prepaid expenses and other current assets                         114,658       95,208  
    Total current assets                         777,353       1,239,476  
    Property and equipment, net                         143,833       131,319  
    Operating lease right of use assets                         389,629       461,986  
    Intangible assets, net                         270,601       264,102  
    Goodwill                         783,286       785,226  
    Deferred tax assets and income taxes receivable                         281,694       271,658  
    Other noncurrent assets                           65,924       65,043  
    Total assets   $                2,712,320     $ 3,218,810  
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    LIABILITIES:        
    Accounts payable and accrued expenses   $                   136,893     $ 155,830  
    Accrued salaries, wages and payroll taxes                           64,993       105,548  
    Accrued income taxes and reserves for uncertain tax positions                         149,255       318,830  
    Current portion of long-term debt                         349,611       —  
    Operating lease liabilities                         170,726       206,070  
    Deferred revenue and other current liabilities                         187,885       191,050  
    Total current liabilities                      1,059,363       977,328  
    Long-term debt and line of credit borrowings                      1,932,545       1,491,095  
    Deferred tax liabilities and reserves for uncertain tax positions                         292,643       291,063  
    Operating lease liabilities                         228,041       265,373  
    Deferred revenue and other noncurrent liabilities                           72,188       103,357  
    Total liabilities                      3,584,780       3,128,216  
    COMMITMENTS AND CONTINGENCIES        
    STOCKHOLDERS’ EQUITY:        
    Common stock, no par, stated value $.01 per share                             1,644       1,709  
    Additional paid-in capital                         752,093       762,583  
    Accumulated other comprehensive loss                         (71,762 )     (48,845 )
    Retained earnings (deficit)                       (908,785 )     12,654  
    Less treasury shares, at cost                       (645,650 )     (637,507 )
    Total stockholders’ equity (deficiency)                       (872,460 )     90,594  
    Total liabilities and stockholders’ equity   $                2,712,320     $ 3,218,810  
             
             
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS   (unaudited, in 000s)
    Six months ended December 31,     2024       2023  
             
    CASH FLOWS FROM OPERATING ACTIVITIES:        
    Net loss   $                 (415,996 )   $ (353,237 )
    Adjustments to reconcile net loss to net cash used in operating activities:        
    Depreciation and amortization                           58,026       60,331  
    Provision for credit losses                           20,727       21,536  
    Deferred taxes                           (1,531 )     (35,525 )
    Stock-based compensation                           17,945       17,525  
    Changes in assets and liabilities, net of acquisitions:        
    Receivables                       (262,348 )     (348,833 )
    Prepaid expenses, other current and noncurrent assets                             2,588       (7,395 )
    Accounts payable, accrued expenses, salaries, wages and payroll taxes                         (76,806 )     (58,543 )
    Deferred revenue, other current and noncurrent liabilities                         (45,170 )     (58,520 )
    Income tax receivables, accrued income taxes and income tax reserves                       (192,340 )     (180,706 )
    Other, net                              (733 )     1,201  
    Net cash used in operating activities                       (895,638 )     (942,166 )
    CASH FLOWS FROM INVESTING ACTIVITIES:        
    Capital expenditures                         (49,115 )     (32,708 )
    Payments made for business acquisitions, net of cash acquired                         (28,017 )     (27,158 )
    Franchise loans funded                         (17,442 )     (15,491 )
    Payments from franchisees                                971       2,747  
    Other, net                             6,110       1,565  
    Net cash used in investing activities                         (87,493 )     (71,045 )
    CASH FLOWS FROM FINANCING ACTIVITIES:        
    Repayments of line of credit borrowings                       (100,000 )     (25,000 )
    Proceeds from line of credit borrowings                         890,000       825,000  
    Dividends paid                         (96,960 )     (89,854 )
    Repurchase of common stock, including shares surrendered                       (436,233 )     (378,709 )
    Other, net                             1,791       4,011  
    Net cash provided by financing activities                         258,598       335,448  
    Effects of exchange rate changes on cash                           (9,136 )     671  
    Net decrease in cash and cash equivalents, including restricted balances                       (733,669 )     (677,092 )
    Cash, cash equivalents and restricted cash, beginning of period                      1,075,193       1,015,316  
    Cash, cash equivalents and restricted cash, end of period   $                   341,524     $ 338,224  
    SUPPLEMENTARY CASH FLOW DATA:        
                     
    Income taxes paid, net (includes payments for purchased investment tax credits)   $                     62,290     $ 72,160  
    Interest paid on borrowings                           33,412       35,496  
    Accrued additions to property and equipment                             3,798       4,036  
    New operating right of use assets and related lease liabilities                           47,135       70,532  
    Accrued dividends payable to common shareholders                           50,176       45,273  
             
    (in 000s)
        Three months ended December 31,   Six months ended December 31,
    NON-GAAP FINANCIAL MEASURE – EBITDA     2024       2023       2024       2023  
                     
    Net loss – as reported   $           (243,420 )   $ (189,755 )   $           (415,996 )   $ (353,237 )
    Discontinued operations, net                          954       639                        2,109       1,248  
    Net loss from continuing operations – as reported                 (242,466 )     (189,116 )                 (413,887 )     (351,989 )
    Add back:                
    Income tax benefit                   (69,833 )     (93,758 )                 (130,673 )     (143,245 )
    Interest expense                    21,752       21,364                      37,599       37,234  
    Depreciation and amortization                    29,195       30,107                      58,026       60,332  
                        (18,886 )     (42,287 )                   (35,048 )     (45,679 )
    EBITDA from continuing operations   $           (261,352 )   $ (231,403 )   $           (448,935 )   $ (397,668 )
                     
                     
    (in 000s, except per share amounts)
        Three months ended December 31,   Six months ended December 31,
    NON-GAAP FINANCIAL MEASURE – ADJUSTED EPS     2024       2023       2024       2023  
                     
    Net loss from continuing operations – as reported   $           (242,466 )   $ (189,116 )   $           (413,887 )   $ (351,989 )
    Adjustments:                
    Amortization of intangibles related to acquisitions (pretax)                    10,910       12,269                      22,038       24,824  
    Tax effect of adjustments (1)                     (2,539 )     (3,087 )                     (5,184 )     (6,022 )
    Adjusted net loss from continuing operations   $           (234,095 )   $ (179,934 )   $           (397,033 )   $ (333,187 )
    Diluted loss per share from continuing operations – as reported   $                 (1.79 )   $ (1.33 )   $                 (3.02 )   $ (2.44 )
    Adjustments, net of tax                        0.06       0.06                          0.13       0.13  
    Adjusted diluted loss per share from continuing operations   $                 (1.73 )   $ (1.27 )   $                 (2.89 )   $ (2.31 )
                     

    (1)Tax effect of adjustments is the difference between the tax provision calculated on a GAAP basis and on an adjusted non-GAAP basis.

    Non-GAAP  Financial Information

    Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Because these measures are not measures of financial performance under GAAP and are susceptible to varying calculations, they may not be comparable to similarly titled measures for other companies.

    We consider our non-GAAP financial measures to be performance measures and a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business. We make adjustments for certain non-GAAP financial measures related to amortization of intangibles from acquisitions and goodwill impairments. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.

    We measure the performance of our business using a variety of metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, adjusted EBITDA from continuing operations, adjusted diluted earnings per share from continuing operations, free cash flow, and free cash flow yield. We also use EBITDA from continuing operations and pretax income from continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.

    The MIL Network –

  • MIL-OSI: Nasdaq CEO Adena Friedman to Present at the 2025 UBS Financial Services Conference

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Feb. 04, 2025 (GLOBE NEWSWIRE) — Nasdaq (Nasdaq: NDAQ) will be presenting at the following conference, with a webcast available at Nasdaq’s Investor Relations website: ir.nasdaq.com/events.cfm.

       
    Who: Adena Friedman, Chair & CEO, Nasdaq
       
    What: 2025 UBS Financial Services Conference
       
    When: Monday, February 10, 2025
    1:00 PM ET
       

    About Nasdaq

    Nasdaq (Nasdaq: NDAQ) is a global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.

    Media Relations Contact:

    Nick Eghtessad
    +1.929.996.8894
    Nick.Eghtessad@Nasdaq.com

    Investor Relations Contact:

    Ato Garrett
    +1.212.401.8737
    Ato.Garrett@Nasdaq.com

    -NDAQF-

    The MIL Network –

  • MIL-OSI: Enphase Energy Reports Financial Results for the Fourth Quarter of 2024

    Source: GlobeNewswire (MIL-OSI)

    FREMONT, Calif., Feb. 04, 2025 (GLOBE NEWSWIRE) — Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company and the world’s leading supplier of microinverter-based solar and battery systems, announced today financial results for the fourth quarter of 2024, which included the summary below from its President and CEO, Badri Kothandaraman.

    We reported quarterly revenue of $382.7 million in the fourth quarter of 2024, along with 53.2% for non-GAAP gross margin. We shipped approximately 2.01 million microinverters, or 878.0 megawatts DC, and 152.4 megawatt hours of IQ® Batteries.

    Financial highlights for the fourth quarter of 2024 are listed below:

    • Strong U.S. manufacturing: shipped 1.69 million microinverters and 6.7 megawatt hours of IQ Batteries
    • Quarterly revenue of $382.7 million
    • GAAP gross margin of 51.8%; non-GAAP gross margin of 53.2% with net IRA benefit
    • Non-GAAP gross margin of 39.7%, excluding net IRA benefit of 13.5%
    • GAAP operating income of $54.8 million; non-GAAP operating income of $120.4 million
    • GAAP net income of $62.2 million; non-GAAP net income of $125.9 million
    • GAAP diluted earnings per share of $0.45; non-GAAP diluted earnings per share of $0.94
    • Free cash flow of $159.2 million; ending cash, cash equivalents, restricted cash and marketable securities of $1.72 billion

    Our revenue and earnings for the fourth quarter of 2024 are provided below, compared with the prior quarter:

    (In thousands, except per share and percentage data)

      GAAP   Non-GAAP
      Q4 2024   Q3 2024   Q4 2023   Q4 2024   Q3 2024   Q4 2023
    Revenue $ 382,713     $ 380,873     $ 302,570     $ 382,713     $ 380,873     $ 302,570  
    Gross margin   51.8 %     46.8 %     48.5 %     53.2 %     48.1 %     50.3 %
    Operating expenses $ 143,489     $ 128,383     $ 156,893     $ 83,322     $ 81,612     $ 86,551  
    Operating income (loss) $ 54,804     $ 49,788     $ (10,231 )   $ 120,434     $ 101,411     $ 65,587  
    Net income $ 62,160     $ 45,762     $ 20,919     $ 125,862     $ 88,402     $ 73,474  
    Basic EPS $ 0.46     $ 0.34     $ 0.15     $ 0.94     $ 0.65     $ 0.54  
    Diluted EPS $ 0.45     $ 0.33     $ 0.15     $ 0.94     $ 0.65     $ 0.54  
                                                   

    Our revenue and earnings for the fiscal year 2024 are provided below, compared with the prior year:

    (In thousands, except per share and percentage data)

      GAAP   Non-GAAP
      FY 2024   FY 2023   FY 2024   FY 2023
    Revenue $ 1,330,383     $ 2,290,786     $ 1,330,383     $ 2,290,786  
    Gross margin   47.3 %     46.2 %     48.9 %     47.1 %
    Operating expenses $ 551,846     $ 612,647     $ 329,227     $ 382,115  
    Operating income $ 77,292     $ 445,741     $ 321,919     $ 697,210  
    Net income $ 102,658     $ 438,936     $ 321,044     $ 613,241  
    Basic EPS $ 0.76     $ 3.22     $ 2.37     $ 4.50  
    Diluted EPS $ 0.75     $ 3.08     $ 2.37     $ 4.41  
                                   

    Total revenue for the fourth quarter of 2024 was $382.7 million, compared to $380.9 million in the third quarter of 2024. Our revenue in the United States for the fourth quarter of 2024 increased approximately 6%, compared to the third quarter. The increase in revenue was due to higher microinverter sales. Our revenue in Europe decreased approximately 25% for the fourth quarter of 2024, compared to the third quarter. The decline in revenue was the result of a further softening in European demand.

    Our non-GAAP gross margin was 53.2% in the fourth quarter of 2024, compared to 48.1% in the third quarter. Our non-GAAP gross margin, excluding net IRA benefit, was 39.7% in the fourth quarter of 2024, compared to 38.9% in the third quarter.

    Our non-GAAP operating expenses were $83.3 million in the fourth quarter of 2024, compared to $81.6 million in the third quarter. The increase was driven by higher R&D expense on new products. Our non-GAAP operating income was $120.4 million in the fourth quarter of 2024, compared to $101.4 million in the third quarter.

    We exited the fourth quarter of 2024 with $1.72 billion in cash, cash equivalents, restricted cash and marketable securities and generated $167.3 million in cash flow from operations in the fourth quarter. Our capital expenditures were $8.1 million in the fourth quarter of 2024, compared to $8.5 million in the third quarter of 2024.

    In the fourth quarter of 2024, we repurchased 2,883,438 shares of our common stock at an average price of $69.25 per share for a total of approximately $199.7 million. We also spent approximately $5.0 million by withholding shares to cover taxes for employee stock vesting that reduced the diluted shares by 68,532 shares.

    We shipped 152.4 megawatt hours of IQ Batteries in the fourth quarter of 2024, compared to 172.9 megawatt hours in the third quarter. More than 10,300 installers worldwide are certified to install our IQ Batteries, compared to more than 9,000 installers worldwide in the third quarter of 2024.

    During the fourth quarter of 2024, we shipped approximately 1.69 million microinverters from our contract manufacturing facilities in the United States that we booked for 45X production tax credits. We also expanded our higher domestic content product offerings, and shipped our IQ8HC™ Microinverters, IQ8X™ Microinverters, IQ8P-3P™ Commercial Microinverters, and IQ® Battery 5Ps, all with higher domestic content than previous models and produced at our contract manufacturing facilities in the United States.

    During the fourth quarter of 2024, we made great strides with the IQ® Meter Collar, fourth-generation IQ Battery, and new IQ® Combiner products. We launched the IQ® PowerPack 1500, a 1.5 kWh smart, portable energy system for home, work, and on-the-go use. In Europe, we introduced the IQ® EV Charger 2, a next-generation smart charger that integrates with our solar and battery systems seamlessly or works as a standalone. In January 2025, we began shipping the IQ® Battery 5P™ with FlexPhase to Germany, Austria, and Switzerland, delivering reliable backup power for both single- and three-phase installations.

    BUSINESS HIGHLIGHTS

    On Jan. 30, 2025, Enphase Energy announced that it is expanding in Southeast Asia by entering the solar markets in Vietnam and Malaysia with IQ8P™ Microinverters.

    On Jan. 27, 2025, Enphase Energy announced integration with Octopus Energy’s smart tariffs in the UK, such as “Intelligent Octopus Flux” (IO Flux), which can help customers save money on electricity bills.

    On Jan. 23, 2025, Enphase Energy announced that its IQ8™ Microinverters for residential and commercial applications, are now in compliance with the Build America, Buy America (BABA) Act.

    On Jan. 13, 2025, Enphase Energy announced shipments of its most powerful and versatile battery yet, the IQ Battery 5P with FlexPhase, for customers in Germany, Austria, and Switzerland. With reliable backup power and support for single- and three-phase systems, it offers unmatched flexibility for home energy needs.

    On Jan. 9, 2025, Enphase Energy announced that it is expanding into Latin America with IQ8P Microinverters, bringing solar solutions to Colombia, Panama, and Costa Rica for residential and commercial use. 

    On Jan. 7, 2025, Enphase Energy announced that IQ8 Microinverters were selected for a 2.2 MW solar project at the Belgoprocess radioactive waste facility in Dessel, Belgium. 

    On Dec. 17, 2024, Enphase Energy announced initial shipments of its most powerful home battery to-date, the IQ Battery 5P, for customers in India. 

    On Dec. 5 and Dec. 9, 2024, Enphase Energy announced collaborations with two energy providers in the Netherlands, Frank Energie and NextEnergy, to enable participation in the grid imbalance energy marketplace.

    On Dec. 3, 2024, Enphase Energy announced the launch of Busbar Power Control software that empowers homeowners to install larger solar and battery systems without costly main electrical panel upgrades.

    On Nov. 11, 2024, Enphase Energy announced an AI-powered do-it-yourself (DIY) permitting feature on Solargraf®, to automate the complex solar permitting process for installers in the USA.

    On Nov. 4, 2024, Enphase Energy announced the launch of its most powerful Enphase Energy System to-date, featuring the IQ Battery 5P and IQ8 Microinverters, for customers in Romania.

    FIRST QUARTER 2025 FINANCIAL OUTLOOK

    For the first quarter of 2025, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:

    • Revenue to be within a range of $340.0 million to $380.0 million, which includes shipments of 150 to 170 megawatt hours of IQ Batteries. The first quarter of 2025 financial outlook includes approximately $50.0 million of safe harbor revenue. We define safe harbor revenue as any sales made to customers who plan to install the inventory over more than one year.
    • GAAP gross margin to be within a range of 46.0% to 49.0% with net IRA benefit
    • Non-GAAP gross margin to be within a range of 48.0% to 51.0% with net IRA benefit and 38.0% to 41.0% excluding net IRA benefit. Non-GAAP gross margin excludes stock-based compensation expense and acquisition related amortization
    • Net IRA benefit to be within a range of $36.0 million to $39.0 million based on estimated shipments of 1,200,000 units of U.S. manufactured microinverters
    • GAAP operating expenses to be within a range of $143.0 million to $147.0 million
    • Non-GAAP operating expenses to be within a range of $81.0 million to $85.0 million, excluding $62.0 million estimated for stock-based compensation expense, acquisition related expenses and amortization, restructuring and asset impairment charges

    For 2025, GAAP and non-GAAP annualized effective tax rate with IRA benefit, excluding discrete items, is expected to be within a range of 17.0% to 19.0%.

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    Use of non-GAAP Financial Measures

    Enphase Energy has presented certain non-GAAP financial measures in this press release. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this press release. Non-GAAP financial measures presented by Enphase Energy include non-GAAP gross profit, gross margin, operating expenses, income from operations, net income, net income per share (basic and diluted), net IRA benefit, and free cash flow.

    These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Enphase Energy’s results of operations as determined in accordance with GAAP. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Enphase Energy uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. Enphase Energy believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

    As presented in the “Reconciliation of Non-GAAP Financial Measures” tables below, each of the non-GAAP financial measures excludes one or more of the following items for purposes of calculating non-GAAP financial measures to facilitate an evaluation of Enphase Energy’s current operating performance and a comparison to its past operating performance:

    Stock-based compensation expense. Enphase Energy excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash in nature. Moreover, the impact of this expense is significantly affected by Enphase Energy’s stock price at the time of an award over which management has limited to no control.

    Acquisition related expenses and amortization. This item represents expenses incurred related to Enphase Energy’s business acquisitions, which are non-recurring in nature, and amortization of acquired intangible assets, which is a non-cash expense. Acquisition related expenses and amortization of acquired intangible assets are not reflective of Enphase Energy’s ongoing financial performance.

    Restructuring and asset impairment charges. Enphase Energy excludes restructuring and asset impairment charges due to the nature of the expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily consist of fees paid for cash-based severance costs, accelerated stock-based compensation expense and asset write-downs of property and equipment and acquired intangible assets, and other contract termination costs resulting from restructuring initiatives.

    Non-cash interest expense. This item consists primarily of amortization of debt issuance costs and accretion of debt discount because these expenses do not represent a cash outflow for Enphase Energy except in the period the financing was secured and such amortization expense is not reflective of Enphase Energy’s ongoing financial performance.

    Non-GAAP income tax adjustment. This item represents the amount adjusted to Enphase Energy’s GAAP tax provision or benefit to exclude the income tax effects of GAAP adjustments such as stock-based compensation, amortization of purchased intangibles, and other non-recurring items that are not reflective of Enphase Energy ongoing financial performance.

    Non-GAAP net income per share, diluted. Enphase Energy excludes the dilutive effect of in-the-money portion of convertible senior notes as they are covered by convertible note hedge transactions that reduce potential dilution to our common stock upon conversion of the Notes due 2025, Notes due 2026, and Notes due 2028, and includes the dilutive effect of employee’s stock-based awards and the dilutive effect of warrants. Enphase Energy believes these adjustments provide useful supplemental information to the ongoing financial performance.

    Net IRA benefit. This item represents the advanced manufacturing production tax credit (AMPTC) from the IRA for manufacturing microinverters in the United States, partially offset by the incremental manufacturing cost incurred in the United States relative to manufacturing in Mexico, India, and China. The AMPTC is accounted for by Enphase Energy as an income-based government grants that reduces cost of revenues in the condensed consolidated statements of operations.

    Free cash flow. This item represents net cash flows from operating activities less purchases of property and equipment.

    Conference Call Information

    Enphase Energy will host a conference call for analysts and investors to discuss its fourth quarter 2024 results and first quarter 2025 business outlook today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The call is open to the public by dialing (833) 634-5018. A live webcast of the conference call will also be accessible from the “Investor Relations” section of Enphase Energy’s website at https://investor.enphase.com. Following the webcast, an archived version will be available on the website for approximately one year. In addition, an audio replay of the conference call will be available by calling (877) 344-7529; replay access code 3831590, beginning approximately one hour after the call.

    Forward-Looking Statements

    This press release contains forward-looking statements, including statements related to Enphase Energy’s expectations as to its first quarter of 2025 financial outlook, including revenue, shipments of IQ Batteries by megawatt hours, gross margin with net IRA benefit and excluding net IRA benefit, estimated shipments of U.S. manufactured microinverters, operating expenses, and annualized effective tax rate with IRA benefit; its expectations regarding the expected net IRA benefit; its expectations on the timing and introduction of new products and updates to existing products, including the IQ Meter Collar, fourth-generation IQ Battery, and new IQ Combiner products; its expectations regarding higher domestic content product offerings; and the capabilities, advantages, features, and performance of its technology and products. These forward-looking statements are based on Enphase Energy’s current expectations and inherently involve significant risks and uncertainties. Enphase Energy’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of certain risks and uncertainties including those risks described in more detail in its most recently filed Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and other documents on file with the SEC from time to time and available on the SEC’s website at www.sec.gov. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.

    A copy of this press release can be found on the investor relations page of Enphase Energy’s website at https://investor.enphase.com.

    About Enphase Energy, Inc.

    Enphase Energy, a global energy technology company based in Fremont, CA, is the world’s leading supplier of microinverter-based solar and battery systems that enable people to harness the sun to make, use, save, and sell their own power—and control it all with a smart mobile app. The company revolutionized the solar industry with its microinverter-based technology and builds all-in-one solar, battery, and software solutions. Enphase has shipped approximately 80.0 million microinverters, and approximately 4.7 million Enphase-based systems have been deployed in more than 160 countries. For more information, visit https://enphase.com/.

    ©2025 Enphase Energy, Inc. All rights reserved. Enphase Energy, Enphase, the “e” logo, IQ, IQ8, and certain other marks listed at https://enphase.com/trademark-usage-guidelines   are trademarks or service marks of Enphase Energy, Inc. Other names are for informational purposes and may be trademarks of their respective owners.

    Contact:

    Zach Freedman
    Enphase Energy, Inc.
    Investor Relations
    ir@enphaseenergy.com

    ENPHASE ENERGY, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
    (Unaudited)
     
      Three Months Ended Year Ended
      December 31, 
    2024    		   September 30, 
    2024    		   December 31, 
    2023    		   December 31, 
    2024    		   December 31, 
    2023
    Net revenues $ 382,713     $ 380,873     $ 302,570     $ 1,330,383     $ 2,290,786  
    Cost of revenues   184,420       202,702       155,908       701,245       1,232,398  
    Gross profit   198,293       178,171       146,662       629,138       1,058,388  
    Operating expenses:                  
    Research and development   50,390       47,843       55,291       201,315       227,336  
    Sales and marketing   51,799       49,671       53,409       206,552       231,792  
    General and administrative   31,901       30,192       33,379       130,825       137,835  
    Restructuring and asset impairment charges   9,399       677       14,814       13,154       15,684  
    Total operating expenses   143,489       128,383       156,893       551,846       612,647  
    Income (loss) from operations   54,804       49,788       (10,231 )     77,292       445,741  
    Other income, net                  
    Interest income   18,417       19,977       20,493       77,306       69,728  
    Interest expense   (2,252 )     (2,237 )     (2,268 )     (8,905 )     (8,839 )
    Other income (expense), net   (1,270 )     (16,785 )     4,233       (25,534 )     6,509  
    Total other income, net   14,895       955       22,458       42,867       67,398  
    Income before income taxes   69,699       50,743       12,227       120,159       513,139  
    Income tax (provision) benefit   (7,539 )     (4,981 )     8,692       (17,501 )     (74,203 )
    Net income $ 62,160     $ 45,762     $ 20,919     $ 102,658     $ 438,936  
    Net income per share:                  
    Basic $ 0.46     $ 0.34     $ 0.15     $ 0.76     $ 3.22  
    Diluted $ 0.45     $ 0.33     $ 0.15     $ 0.75     $ 3.08  
    Shares used in per share calculation:                  
    Basic   133,815       135,329       136,092       135,167       136,376  
    Diluted   138,128       139,914       139,205       140,004       143,290  
                                           
    ENPHASE ENERGY, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (Unaudited)
     
      December 31,
    2024    		   December 31,
    2023
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 369,110   $ 288,748
    Restricted cash   95,006     —
    Marketable securities   1,253,480     1,406,286
    Accounts receivable, net   223,749     445,959
    Inventory   165,004     213,595
    Prepaid expenses and other assets   220,735     88,930
    Total current assets   2,327,084     2,443,518
    Property and equipment, net   147,514     168,244
    Operating lease, right of use asset, net   24,617     19,887
    Intangible assets, net   42,398     68,536
    Goodwill   211,571     214,562
    Other assets   180,925     215,895
    Deferred tax assets, net   315,567     252,370
    Total assets $ 3,249,676   $ 3,383,012
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable $ 90,032   $ 116,164
    Accrued liabilities   196,887     261,919
    Deferred revenues, current   237,225     118,300
    Warranty obligations, current   34,656     36,066
    Debt, current   101,291     —
    Total current liabilities   660,091     532,449
    Long-term liabilities:      
    Deferred revenues, non-current   341,982     369,172
    Warranty obligations, non-current   158,233     153,021
    Other liabilities   55,265     51,008
    Debt, non-current   1,201,089     1,293,738
    Total liabilities   2,416,660     2,399,388
    Total stockholders’ equity   833,016     983,624
    Total liabilities and stockholders’ equity $ 3,249,676   $ 3,383,012
               
    ENPHASE ENERGY, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)
     
      Three Months Ended   Year Ended
      December 31, 
    2024    		   September 30, 
    2024    		   December 31, 
    2023    		   December 31, 
    2024    		   December 31, 
    2023
    Cash flows from operating activities:                  
    Net income $ 62,160     $ 45,762     $ 20,919     $ 102,658     $ 438,936  
    Adjustments to reconcile net income to net cash provided by operating activities:                  
    Depreciation and amortization   20,665       20,103       20,841       81,389       74,708  
    Net accretion of discount on marketable securities   (7,490 )     (2,904 )     (2,950 )     (8,599 )     (15,561 )
    Provision for doubtful accounts   2,206       2,704       (129 )     6,677       1,153  
    Asset impairment   4,702       17,568       9,700       28,843       10,603  
    Non-cash interest expense   2,188       2,173       2,126       8,650       8,380  
    Net loss (gain) from change in fair value of debt securities   (3,697 )     741       (2,670 )     (1,967 )     (8,078 )
    Stock-based compensation   51,830       45,940       55,222       211,360       212,857  
    Deferred income taxes   (30,675 )     (5,276 )     (5,053 )     (58,319 )     (43,348 )
    Changes in operating assets and liabilities:                  
    Accounts receivable   2,684       49,414       105,771       211,640       (12,478 )
    Inventory   (6,167 )     17,231       (39,481 )     48,591       (63,887 )
    Prepaid expenses and other assets   (16,487 )     (64,149 )     (2,401 )     (134,343 )     (59,777 )
    Accounts payable, accrued and other liabilities   (27,396 )     32,088       (139,277 )     (85,536 )     (22,149 )
    Warranty obligations   8,657       7,053       221       3,802       57,641  
    Deferred revenues   104,112       1,690       12,611       98,847       117,780  
    Net cash provided by operating activities   167,292       170,138       35,450       513,693       696,780  
    Cash flows from investing activities:                  
    Purchases of property and equipment   (8,064 )     (8,533 )     (20,075 )     (33,604 )     (110,401 )
    Purchases of marketable securities   (93,138 )     (319,190 )     (337,757 )     (1,184,649 )     (2,081,431 )
    Maturities and sale of marketable securities   351,843       215,241       433,869       1,346,520       1,840,477  
    Investments in private companies   —       —       —       —       (15,000 )
    Net cash provided by (used in) investing activities   250,641       (112,482 )     76,037       128,267       (366,355 )
    Cash flows from financing activities:                  
    Partial settlement of convertible notes   —       (5 )     —       (7 )     —  
    Repurchase of common stock   (199,666 )     (49,794 )     (99,998 )     (391,364 )     (409,998 )
    Payment of excise tax on net stock repurchases   (2,773 )     —       —       (2,773 )     —  
    Proceeds from issuance of common stock under employee equity plans   4,719       14       12,555       12,688       13,870  
    Payment of withholding taxes related to net share settlement of equity awards   (5,012 )     (6,286 )     (27,546 )     (78,813 )     (120,646 )
    Net cash used in financing activities   (202,732 )     (56,071 )     (114,989 )     (460,269 )     (516,774 )
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   (7,410 )     2,638       2,175       (6,323 )     1,853  
    Net increase (decrease) in cash and cash equivalents and restricted cash   207,791       4,223       (1,327 )     175,368       (184,496 )
    Cash and cash equivalents—Beginning of period   256,325       252,102       290,075       288,748       473,244  
    Cash, cash equivalents and restricted cash—End of period $ 464,116     $ 256,325     $ 288,748     $ 464,116     $ 288,748  
                                           
    ENPHASE ENERGY, INC.
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    (In thousands, except per share data and percentages)
    (Unaudited)
     
      Three Months Ended   Year Ended
      December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Gross profit (GAAP) $ 198,293     $ 178,171     $ 146,662     $ 629,138     $ 1,058,388  
    Stock-based compensation   3,678       2,948       3,582       14,538       13,357  
    Acquisition related amortization   1,784       1,904       1,894       7,469       7,580  
    Gross profit (Non-GAAP) $ 203,755     $ 183,023     $ 152,138     $ 651,145     $ 1,079,325  
                       
    Gross margin (GAAP)   51.8 %     46.8 %     48.5 %     47.3 %     46.2 %
    Stock-based compensation   0.9       0.8       1.2       1.0       0.6  
    Acquisition related amortization   0.5       0.5       0.6       0.6       0.3  
    Gross margin (Non-GAAP)   53.2 %     48.1 %     50.3 %     48.9 %     47.1 %
                       
    Operating expenses (GAAP) $ 143,489     $ 128,383     $ 156,893     $ 551,846     $ 612,647  
    Stock-based compensation (1)   (47,884 )     (42,992 )     (51,640 )     (196,554 )     (199,500 )
    Acquisition related expenses and amortization   (2,884 )     (3,102 )     (3,888 )     (12,911 )     (15,317 )
    Restructuring and asset impairment charges (1)   (9,399 )     (677 )     (14,814 )     (13,154 )     (15,715 )
    Operating expenses (Non-GAAP) $ 83,322     $ 81,612     $ 86,551     $ 329,227     $ 382,115  
                       
    (1) Includes stock-based compensation as follows:                  
    Research and development $ 20,951     $ 19,790     $ 23,839     $ 85,501     $ 88,367  
    Sales and marketing   15,893       14,237       16,472       65,092       65,703  
    General and administrative   11,041       8,965       11,329       45,962       45,430  
    Restructuring and asset impairment charges   267       —       —       267       —  
    Total $ 48,152     $ 42,992     $ 51,640     $ 196,822     $ 199,500  
                       
    Income (loss) from operations (GAAP) $ 54,804     $ 49,788     $ (10,231 )   $ 77,292     $ 445,741  
    Stock-based compensation   51,563       45,940       55,222       211,093       212,857  
    Acquisition related expenses and amortization   4,668       5,006       5,782       20,380       22,897  
    Restructuring and asset impairment charges   9,399       677       14,814       13,154       15,715  
    Income from operations (Non-GAAP) $ 120,434     $ 101,411     $ 65,587     $ 321,919     $ 697,210  
                       
    Net income (GAAP) $ 62,160     $ 45,762     $ 20,919     $ 102,658     $ 438,936  
    Stock-based compensation   51,563       45,940       55,222       211,093       212,857  
    Acquisition related expenses and amortization   4,668       5,006       5,782       20,380       22,897  
    Restructuring and asset impairment charges   9,399       677       14,814       13,154       15,715  
    Non-cash interest expense   2,188       2,173       2,126       8,650       8,380  
    Non-GAAP income tax adjustment   (4,116 )     (11,156 )     (25,389 )     (34,891 )     (85,544 )
    Net income (Non-GAAP) $ 125,862     $ 88,402     $ 73,474     $ 321,044     $ 613,241  
                       
    Net income per share, basic (GAAP) $ 0.46     $ 0.34     $ 0.15     $ 0.76     $ 3.22  
    Stock-based compensation   0.39       0.34       0.40       1.56       1.56  
    Acquisition related expenses and amortization   0.03       0.04       0.08       0.15       0.17  
    Restructuring and asset impairment charges   0.07       0.01       0.11       0.10       0.12  
    Non-cash interest expense   0.02       0.02       0.02       0.06       0.06  
    Non-GAAP income tax adjustment   (0.03 )     (0.10 )     (0.22 )     (0.26 )     (0.63 )
    Net income per share, basic (Non-GAAP) $ 0.94     $ 0.65     $ 0.54     $ 2.37     $ 4.50  
                       
    Shares used in basic per share calculation GAAP and Non-GAAP   133,815       135,329       136,092       135,167       136,376  
                       
    Net income per share, diluted (GAAP) $ 0.45     $ 0.33     $ 0.15     $ 0.75     $ 3.08  
    Stock-based compensation   0.39       0.33       0.39       1.56       1.57  
    Acquisition related expenses and amortization   0.04       0.04       0.08       0.15       0.16  
    Restructuring and asset impairment charges   0.07       0.01       0.10       0.10       0.11  
    Non-cash interest expense   0.02       0.02       0.01       0.06       0.06  
    Non-GAAP income tax adjustment   (0.03 )     (0.08 )     (0.19 )     (0.26 )     (0.57 )
    Net income per share, diluted (Non-GAAP) (2) $ 0.94     $ 0.65     $ 0.54     $ 2.37     $ 4.41  
                       
    Shares used in diluted per share calculation GAAP   138,128       139,914       139,205       140,004       143,290  
    Shares used in diluted per share calculation Non-GAAP   134,053       135,839       137,187       135,641       139,214  
                       
    Income-based government grants (GAAP) $ 68,040     $ 46,552     $ 32,887     $ 157,538     $ 53,470  
    Incremental cost for manufacturing in U.S.   (16,123 )     (11,396 )     (7,112 )     (38,351 )     (11,603 )
    Net IRA benefit (Non-GAAP) $ 51,917     $ 35,156     $ 25,775     $ 119,187     $ 41,867  
                       
    Net cash provided by operating activities (GAAP) $ 167,292     $ 170,138     $ 35,450     $ 513,693     $ 696,780  
    Purchases of property and equipment   (8,064 )     (8,533 )     (20,075 )     (33,604 )     (110,401 )
    Free cash flow (Non-GAAP) $ 159,228     $ 161,605     $ 15,375     $ 480,089     $ 586,379  
                                           
    (2)  Calculation of non-GAAP diluted net income per share for the year ended December 31, 2023 excludes convertible Notes due 2023 interest expense, net of tax of less than $0.1 million from non-GAAP net income.

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

    The MIL Network –

  • MIL-OSI: Nasdaq Reports January 2025 Volumes

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Feb. 04, 2025 (GLOBE NEWSWIRE) — Nasdaq (Nasdaq: NDAQ) today reported monthly volumes for January 2025 on its Investor Relations website. A data sheet showing this information can be found at: http://ir.nasdaq.com/financials/volume-statistics.

    About Nasdaq

    Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.

    Cautionary Note Regarding Forward-Looking Statements
    Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. Nasdaq cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to (i) projections relating to our future financial results, total shareholder returns, growth, trading volumes, products and services, ability to transition to new business models, taxes and achievement of synergy targets, (ii) statements about the closing or implementation dates and benefits of certain acquisitions, divestitures and other strategic, restructuring, technology, de-leveraging and capital allocation initiatives, (iii) statements about our integrations of our recent acquisitions, (iv) statements relating to any litigation or regulatory or government investigation or action to which we are or could become a party, and (v) other statements that are not historical facts. Forward-looking statements involve a number of risks, uncertainties or other factors beyond Nasdaq’s control. These factors include, but are not limited to, Nasdaq’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors detailed in Nasdaq’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q which are available on Nasdaq’s investor relations website at http://ir.nasdaq.com and the SEC’s website at www.sec.gov. Nasdaq undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

    Media Relations Contacts:

    Nick Jannuzzi
    +1.973.760.1741
    Nicholas.Jannuzzi@Nasdaq.com

    Nick Eghtessad
    +1.929.996.8894
    Nick.Eghtessad@Nasdaq.com

    Investor Relations Contact:

    Ato Garrett
    +1.212.401.8737
    Ato.Garrett@Nasdaq.com

    -NDAQF-

    The MIL Network –

  • MIL-OSI: Intapp Announces Second Quarter Fiscal Year 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    • Second quarter SaaS revenue of $80.0 million, up 27% year-over-year
    • Cloud annual recurring revenue (ARR) of $331.1 million, up 29% year-over-year
    • Trailing twelve months’ cloud net revenue retention rate as of December 31, 2024 was 119%

    PALO ALTO, Calif., Feb. 04, 2025 (GLOBE NEWSWIRE) — Intapp, Inc. (NASDAQ: INTA), a leading global provider of AI-powered solutions for professionals at advisory, capital markets, and legal firms, announced financial results for its fiscal second quarter ended December 31, 2024. Intapp also provided its outlook for the third quarter and the full fiscal year 2025.

    “I’m pleased to share that once again we’ve achieved strong quarterly results which are supported by the addition of new clients and expanded client relationships,” said John Hall, CEO of Intapp. “Our second quarter results are indicative of our ability to continually drive AI, cloud adoption, and modernization across the industries we serve.”

    Second Quarter of Fiscal Year 2025 Financial Highlights

    • SaaS revenue was $80.0 million, a 27% year-over-year increase compared to the second quarter of fiscal year 2024.
    • Total revenue was $121.2 million, a 17% year-over-year increase compared to the second quarter of fiscal year 2024.
    • Cloud ARR was $331.1 million as of December 31, 2024, a 29% year-over-year increase compared to Cloud ARR as of December 31, 2023. Cloud ARR represented 76% of total ARR as of December 31, 2024, compared to 70% as of December 31, 2023.
    • Total ARR was $437.1 million as of December 31, 2024, a 20% year-over-year increase compared to total ARR as of December 31, 2023.
    • GAAP operating loss was $(10.2) million, compared to a GAAP operating loss of $(11.1) million in the second quarter of fiscal year 2024.
    • Non-GAAP operating income was $18.9 million, compared to a non-GAAP operating income of $7.6 million in the second quarter of fiscal year 2024.
    • GAAP net loss was $(10.2) million, compared to a GAAP net loss of $(9.2) million in the second quarter of fiscal year 2024.
    • Non-GAAP net income was $17.4 million, compared to a non-GAAP net income of $8.8 million in the second quarter of fiscal year 2024.
    • GAAP net loss per share was $(0.13), compared to a GAAP net loss per share of $(0.13) in the second quarter of fiscal year 2024.
    • Non-GAAP diluted net income per share was $0.21, compared to a non-GAAP diluted net income per share of $0.11 in the second quarter of fiscal year 2024.
    • Cash and cash equivalents were $285.6 million as of December 31, 2024, compared to $208.4 million as of June 30, 2024.
    • For the six months ended December 31, 2024, net cash provided by operating activities was $49.7 million, compared to net cash provided by operating activities of $23.6 million for the six months ended December 31, 2023.

    Business Highlights

    • As of December 31, 2024, we served more than 2,650 clients, 728 of which each had contracts greater than $100,000 of ARR.
    • We upsold and cross-sold our existing clients such that our trailing twelve months’ cloud net revenue retention rate as of December 31, 2024 was 119%.
    • We continued to add new clients and expand existing accounts including accounting firm Milsted Langdon and consulting firm Alvarez & Marsal. 
    • We were named to Forbes’ America’s Most Successful Mid-Cap Companies listing for 2024. 
    • Intapp DealCloud won bronze in the Enterprise Product of the Year – Software category at the 2024 Best in Biz Awards.

    Third Quarter and Full Fiscal Year 2025 Outlook

      Fiscal 2025 Outlook
      Third Quarter Fiscal Year
      (in millions, except per share data)
    SaaS revenue $84.0 – $85.0 $328.8 – $332.8
    Total revenue $128.3 – $129.3 $498.5 – $502.5
    Non-GAAP operating income $18.5 – $19.5 $70.2 – $74.2
    Non-GAAP diluted net income per share $0.21 – $0.23 $0.83 – $0.87
         

    The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

    The information presented in this press release includes non-GAAP financial measures such as “non-GAAP operating income,” “non-GAAP net income,” and “non-GAAP diluted net income per share.” Refer to “Non-GAAP Financial Measures and Other Metrics” for a discussion of these measures and the financial tables below for reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

    The guidance regarding non-GAAP operating income excludes known pre-tax charges related to estimated stock-based compensation of $23.4 million for the third quarter of fiscal year 2025 and $90.6 million for fiscal year 2025 and amortization of intangible assets of $2.7 million for the third quarter of fiscal year 2025 and $11.2 million for fiscal year 2025. The guidance regarding non-GAAP diluted net income per share excludes known pre-tax charges related to estimated stock-based compensation of $0.28 per share for the third quarter of fiscal year 2025 and $1.08 per share for fiscal year 2025 and amortization of intangible assets of $0.03 per share for the third quarter of fiscal year 2025 and $0.13 per share for fiscal year 2025. The Company has not included a quantitative reconciliation of its guidance for non-GAAP operating income and non-GAAP diluted net income per share to their most directly comparable GAAP financial measures, other than stock-based compensation and amortization of intangible assets, because certain of these reconciling items, including change in fair value of contingent consideration, transaction costs, restructuring and other costs and income tax effect of non-GAAP adjustments, could be highly variable and cannot be reasonably predicted without unreasonable effort. This is due to the inherent difficulty of forecasting the timing of certain events that have not yet occurred and are out of the Company’s control and the amounts of associated reconciling items. Please note that the unavailable reconciling items could significantly impact the Company’s GAAP operating results.

    Corporate Presentation

    A supplemental financial presentation and other information will be accessible through Intapp’s investor relations website at https://investors.intapp.com/.

    Webcast
    Intapp will host a conference call for analysts and investors on Tuesday, February 4, 2025, beginning at 2:00 p.m. PT (5:00 p.m. ET). The call will be webcast live via the “Investors” section of the Intapp company website at https://investors.intapp.com/. A replay of the call will be available through the Intapp website for 90 days.

    About Intapp

    Intapp software helps professionals unlock their teams’ knowledge, relationships, and operational insights to increase value for their firms. Using the power of Applied AI, we make firm and market intelligence easy to find, understand, and use. With Intapp’s portfolio of vertical SaaS solutions, professionals can apply their collective expertise to make smarter decisions, manage risk, and increase competitive advantage. The world’s top firms — across accounting, consulting, investment banking, legal, private capital, and real assets — trust Intapp’s industry-specific platform and solutions to modernize and drive new growth.

    Forward-Looking Statements

    This press release contains express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the third quarter and full fiscal year 2025, growth strategy, business plans and market position. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “would,” “should,” “could,” “can,” “predict,” “potential,” “target,” “explore,” “continue,” “expand,” “outlook” or the negative of these terms, and similar expressions intended to identify forward-looking statements. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance, or achievement to differ materially and adversely from those anticipated or implied in the statements, including: our ability to continue our growth at or near historical rates; our future financial performance and ability to be profitable; the effect of global events on the U.S. and global economies, our business, our employees, our results of operations, our financial condition, demand for our products, sales and implementation cycles, and the health of our clients’ and partners’ businesses; our ability to prevent and respond to data breaches, unauthorized access to client data or other disruptions of our solutions; our ability to effectively manage U.S. and global market and economic conditions, including inflationary pressures, economic and market downturns and volatility in the financial services industry, particularly adverse to our targeted industries; the length and variability of our sales cycle; our ability to attract and retain clients; our ability to attract and retain talent; our ability to compete in highly competitive markets, including AI products; our ability to manage additional complexity, burdens, and volatility in connection with our international sales and operations; the successful assimilation or integration of the businesses, technologies, services, products, personnel or operations of acquired companies; our ability to incur indebtedness in the future and the effect of conditions in credit markets; the sufficiency of our cash and cash equivalents to meet our liquidity needs; and our ability to maintain, protect, and enhance our intellectual property rights. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, and any subsequent public filings. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Forward-looking statements speak only as of the date the statements are made and are based on information available to us at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. We assume no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

    Presentation Changes Related to SaaS and License Revenue

    Effective July 1, 2024, the Company adjusted the classification of support services related to subscription license to be included within “license” on the unaudited condensed consolidated statements of operations. Prior to July 1, 2024, support services related to subscription license were included in a line item entitled “SaaS and Support.” Accordingly, effective July 1, 2024, SaaS revenues include subscription fees from clients accessing our SaaS solutions, premium support services related to SaaS, and updates, if any, to the subscribed service during the subscription term. There was no change to the Company’s revenue recognition policy, except for the change in classification noted herein.

    The presentation of cost of revenues has been conformed to reflect the changes related to the presentation of revenues. Such reclassifications related to the presentation of revenues and cost of revenues did not affect total revenues, operating income, or net income.

    Non-GAAP Financial Measures and Other Metrics

    This press release contains the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, and non-GAAP diluted net income per share. These non-GAAP measures exclude the impact of stock-based compensation, amortization of intangible assets, change in fair value of contingent consideration, transaction costs, restructuring and other costs and the income tax effect of non-GAAP adjustments. See below for a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

    Free cash flow is a non-GAAP financial measure, and a supplemental liquidity measure that management uses to evaluate our core operating business and our ability to meet our current and future financing and investing needs. It consists of net cash provided by operating activities less cash paid for purchases of property and equipment. See below for a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

    Other metrics include total ARR, Cloud ARR and Cloud net revenue retention rate. Total ARR represents the annualized recurring value of all active SaaS and on-premise subscription license contracts at the end of a reporting period. Cloud ARR is the portion of the annualized recurring value of our active SaaS contracts at the end of a reporting period. Contracts with a term other than one year are annualized by taking the committed contract value for the current period divided by number of days in that period, then multiplying by 365. Cloud net revenue retention rate is the portion of our net revenue retention rate, which represents the net revenue retention of our SaaS contracts. We calculate Cloud net revenue retention by starting with the Cloud ARR from the cohort of all clients as of the twelve months prior to the applicable fiscal period, or prior period Cloud ARR. We then calculate the Cloud ARR from these same clients as of the current fiscal period, or current period Cloud ARR. We then divide the current period Cloud ARR by the prior period Cloud ARR to calculate the Cloud net revenue retention.

    We believe these non-GAAP financial measures and metrics provide useful information to investors as they are used by management to manage the business, make planning decisions, evaluate our performance, and allocate resources and provide useful information regarding certain financial and business trends relating to our financial condition and results of operations. These non-GAAP financial measures, which may be different than similarly-titled measures used by other companies, should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

    Guidance for non-GAAP financial measures excludes stock-based compensation expense, amortization of intangible assets, change in fair value of contingent consideration, transaction costs, restructuring and other costs and the income tax effect of non-GAAP adjustments. Non-GAAP diluted net income per share is calculated by dividing non-GAAP net income by the estimated diluted weighted average shares outstanding for the period.

    Investor Contact
    David Trone
    Senior Vice President, Investor Relations
    Intapp, Inc.
    ir@intapp.com

    Media Contact
    Ali Robinson
    Global Media Relations Director
    Intapp, Inc.
    press@intapp.com

     
    INTAPP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited, in thousands, except per share data and percentages)
     
        Three Months
    Ended December 31,    		     Six Months
    Ended December 31,    		  
        2024     2023     2024     2023  
    Revenues                        
    SaaS   $ 79,976     $ 63,117     $ 156,852     $ 122,030  
    License     28,017       28,135       56,509       56,186  
    Professional services     13,216       12,681       26,653       27,292  
    Total revenues     121,209       103,933       240,014       205,508  
    Cost of revenues                        
    SaaS     16,292       12,810       31,610       25,521  
    License     1,630       1,606       3,382       3,308  
    Professional services     14,549       16,353       29,413       33,513  
    Total cost of revenues     32,471       30,769       64,405       62,342  
    Gross profit     88,738       73,164       175,609       143,166  
    Gross margin     73.2 %     70.4 %     73.2 %     69.7 %
    Operating expenses:                        
    Research and development     33,325       27,981       65,752       56,477  
    Sales and marketing     40,791       35,269       78,551       69,688  
    General and administrative     24,808       20,996       48,746       42,048  
    Total operating expenses     98,924       84,246       193,049       168,213  
    Operating loss     (10,186 )     (11,082 )     (17,440 )     (25,047 )
    Interest and other income (expense), net     (202 )     2,057       3,220       1,114  
    Net loss before income taxes     (10,388 )     (9,025 )     (14,220 )     (23,933 )
    Income tax benefit (expense)     171       (188 )     (517 )     (601 )
    Net loss   $ (10,217 )   $ (9,213 )   $ (14,737 )   $ (24,534 )
    Net loss per share, basic and diluted   $ (0.13 )   $ (0.13 )   $ (0.19 )   $ (0.35 )
    Weighted-average shares used to compute net loss per share, basic and diluted     78,118       70,521       76,861       69,729  
                                     
     
    INTAPP, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited, in thousands)
     
        December 31, 2024     June 30, 2024  
    Assets            
    Current assets:            
    Cash and cash equivalents   $ 285,631     $ 208,370  
    Restricted cash     200       200  
    Accounts receivable, net     87,596       95,103  
    Unbilled receivables, net     13,786       13,300  
    Other receivables, net     4,412       2,743  
    Prepaid expenses     11,284       9,031  
    Deferred commissions, current     14,232       13,907  
    Total current assets     417,141       342,654  
    Property and equipment, net     20,172       18,944  
    Operating lease right-of-use assets     18,426       21,382  
    Goodwill     285,907       285,969  
    Intangible assets, net     34,351       40,293  
    Deferred commissions, noncurrent     18,335       18,495  
    Other assets     6,255       5,262  
    Total assets   $ 800,587     $ 732,999  
    Liabilities and Stockholders’ Equity            
    Current liabilities:            
    Accounts payable   $ 16,631     $ 13,348  
    Accrued compensation     35,045       42,066  
    Accrued expenses     7,266       12,040  
    Deferred revenue, net     234,962       218,923  
    Other current liabilities     12,243       14,270  
    Total current liabilities     306,147       300,647  
    Deferred tax liabilities     1,255       1,336  
    Deferred revenue, noncurrent     3,033       3,563  
    Operating lease liabilities, noncurrent     17,409       19,605  
    Other liabilities     4,353       4,610  
    Total liabilities     332,197       329,761  
    Stockholders’ equity:            
    Common stock     79       75  
    Additional paid-in capital     971,631       891,681  
    Accumulated other comprehensive loss     (1,401 )     (1,336 )
    Accumulated deficit     (501,919 )     (487,182 )
    Total stockholders’ equity     468,390       403,238  
    Total liabilities and stockholders’ equity   $ 800,587     $ 732,999  
     
     
    INTAPP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited, in thousands)
     
        Three Months Ended
    December 31,    		     Six Months Ended
    December 31,    		  
        2024     2023     2024     2023  
    Cash Flows from Operating Activities:                        
    Net loss   $ (10,217 )   $ (9,213 )   $ (14,737 )   $ (24,534 )
    Adjustments to reconcile net loss to net cash provided by operating activities:                        
    Depreciation and amortization     4,372       3,975       8,839       7,984  
    Amortization of operating lease right-of-use assets     1,278       1,152       2,558       2,282  
    Accounts receivable allowances     273       803       823       1,228  
    Stock-based compensation     25,411       16,508       45,400       35,265  
    Change in fair value of contingent consideration     —       (784 )     (1,004 )     (2,215 )
    Deferred income taxes     (26 )     (104 )     (74 )     (217 )
    Other     38       39       76       77  
    Changes in operating assets and liabilities:                        
    Accounts receivable     (23,742 )     (10,902 )     6,465       12,570  
    Unbilled receivables, current     (1,009 )     (1,888 )     (486 )     (5,774 )
    Prepaid expenses and other assets     (2,433 )     (446 )     (5,001 )     (1,788 )
    Deferred commissions     (1,832 )     (1,189 )     (165 )     (1,068 )
    Accounts payable and accrued liabilities     185       9,760       (7,875 )     (1,517 )
    Deferred revenue, net     32,784       4,615       15,509       4,837  
    Operating lease liabilities     (1,344 )     (768 )     (2,675 )     (2,339 )
    Other liabilities     1,501       477       2,032       (1,144 )
    Net cash provided by operating activities     25,239       12,035       49,685       23,647  
    Cash Flows from Investing Activities:                        
    Purchases of property and equipment     (62 )     (213 )     (416 )     (1,354 )
    Capitalized internal-use software costs     (1,915 )     (1,592 )     (3,449 )     (3,453 )
    Business combinations, net of cash acquired     —       —       (897 )     —  
    Net cash used in investing activities     (1,977 )     (1,805 )     (4,762 )     (4,807 )
    Cash Flows from Financing Activities:                        
    Payments for deferred offering costs     —       (148 )     —       (781 )
    Proceeds from stock option exercises     9,666       15,612       32,584       17,936  
    Proceeds from employee stock purchase plan     1,970       1,725       1,970       1,725  
    Payments of deferred contingent consideration and holdback associated with acquisitions     (1,023 )     (2,551 )     (2,410 )     (2,551 )
    Net cash provided by financing activities     10,613       14,638       32,144       16,329  
    Effect of foreign currency exchange rate changes on cash and cash equivalents     (2,091 )     (58 )     194       203  
    Net increase in cash, cash equivalents and restricted cash     31,784       24,810       77,261       35,372  
    Cash, cash equivalents and restricted cash – beginning of period     254,047       141,747       208,570       131,185  
    Cash, cash equivalents and restricted cash – end of period   $ 285,831     $ 166,557     $ 285,831     $ 166,557  
     
     

    INTAPP, INC.
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
    (Unaudited, in thousands, except per share data and percentages)

    The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below:

    Non-GAAP Gross Profit

        Three Months Ended
    December 31,    		     Six Months Ended
    December 31,    		  
        2024     2023     2024     2023  
    GAAP gross profit   $ 88,738     $ 73,164     $ 175,609     $ 143,166  
    Adjusted to exclude the following:                        
    Stock-based compensation     2,702       2,018       4,934       3,892  
    Amortization of intangible assets     1,509       1,055       3,080       2,110  
    Restructuring and other costs     53       —       62       —  
    Non-GAAP gross profit   $ 93,002     $ 76,237     $ 183,685     $ 149,168  
    Non-GAAP gross margin     76.7 %     73.4 %     76.5 %     72.6 %
     

    Non-GAAP Operating Expenses

        Three Months Ended
    December 31,    		     Six Months Ended
    December 31,    		  
        2024     2023     2024     2023  
    GAAP research and development   $ 33,325     $ 27,981     $ 65,752     $ 56,477  
    Stock-based compensation     (6,800 )     (4,468 )     (11,424 )     (9,114 )
    Restructuring and other costs     (113 )     —       (162 )     —  
    Non-GAAP research and development   $ 26,412     $ 23,513     $ 54,166     $ 47,363  
                             
                             
    GAAP sales and marketing   $ 40,791     $ 35,269     $ 78,551     $ 69,688  
    Stock-based compensation     (7,232 )     (4,888 )     (12,970 )     (10,227 )
    Amortization of intangible assets     (1,268 )     (1,396 )     (2,536 )     (2,883 )
    Non-GAAP sales and marketing   $ 32,291     $ 28,985     $ 63,045     $ 56,578  
                             
                             
    GAAP general and administrative   $ 24,808     $ 20,996     $ 48,746     $ 42,048  
    Stock-based compensation     (8,677 )     (5,134 )     (16,072 )     (12,032 )
    Amortization of intangible assets     (163 )     (163 )     (326 )     (326 )
    Change in fair value of contingent consideration     —       784       1,004       2,215  
    Transaction costs (1)     (530 )     (350 )     (664 )     (678 )
    Restructuring and other costs     (64 )     —       (236 )     —  
    Non-GAAP general and administrative   $ 15,374     $ 16,133     $ 32,452     $ 31,227  
     

    Non-GAAP Operating Income

        Three Months Ended
    December 31,    		     Six Months Ended
    December 31,    		  
        2024     2023     2024     2023  
    GAAP operating loss   $ (10,186 )   $ (11,082 )   $ (17,440 )   $ (25,047 )
    Adjusted to exclude the following:                        
    Stock-based compensation     25,411       16,508       45,400       35,265  
    Amortization of intangible assets     2,940       2,614       5,942       5,319  
    Change in fair value of contingent consideration     —       (784 )     (1,004 )     (2,215 )
    Transaction costs (1)     530       350       664       678  
    Restructuring and other costs     230       —       460       —  
    Non-GAAP operating income   $ 18,925     $ 7,606     $ 34,022     $ 14,000  
     

    Non-GAAP Net Income

        Three Months Ended
    December 31,    		     Six Months Ended
    December 31,    		  
        2024     2023     2024     2023  
    GAAP net loss   $ (10,217 )   $ (9,213 )   $ (14,737 )   $ (24,534 )
    Adjusted to exclude the following:                        
    Stock-based compensation     25,411       16,508       45,400       35,265  
    Amortization of intangible assets     2,940       2,614       5,942       5,319  
    Change in fair value of contingent consideration     —       (784 )     (1,004 )     (2,215 )
    Transaction costs (1)     530       350       664       678  
    Restructuring and other costs     230       —       460       —  
    Income tax effect of non-GAAP adjustments     (1,489 )     (710 )     (2,513 )     (1,125 )
    Non-GAAP net income   $ 17,405     $ 8,765     $ 34,212     $ 13,388  
                             
    GAAP net loss per share, basic and diluted   $ (0.13 )   $ (0.13 )   $ (0.19 )   $ (0.35 )
    Non-GAAP net income per share, diluted   $ 0.21     $ 0.11     $ 0.41     $ 0.17  
                             
    Weighted-average shares used to compute GAAP net loss per share, basic and diluted     78,118       70,521       76,861       69,729  
    Weighted-average shares used to compute non-GAAP net income per share, diluted     83,910       80,285       82,724       79,926  
     

    Free Cash Flow

        Three Months Ended
    December 31,    		     Six Months Ended
    December 31,    		  
        2024     2023     2024     2023  
    Net cash provided by operating activities   $ 25,239     $ 12,035     $ 49,685     $ 23,647  
    Adjusted for the following cash outlay:                        
    Purchases of property and equipment     (62 )     (213 )     (416 )     (1,354 )
    Free cash flow (2)   $ 25,177     $ 11,822     $ 49,269     $ 22,293  
     

    (1) Consists of acquisition-related transaction costs, costs related to a legal settlement incurred in connection with an acquisition and costs related to certain non-capitalized offering-related expenses.

    (2) Beginning with the second quarter ended December 31, 2023, we have excluded capitalized internal-use software costs and cash paid for interest from the calculation of our free cash flow, which we believe better aligns with industry standard. Our free cash flow for prior period presented were recast to conform to the updated methodology and are reflected herein for comparison purposes.

    The MIL Network –

  • MIL-OSI: Runway Growth Finance Corp. Announces Date for Fourth Quarter and Full Year 2024 Financial Results and Conference Call

    Source: GlobeNewswire (MIL-OSI)

    MENLO PARK, Calif., Feb. 04, 2025 (GLOBE NEWSWIRE) — Runway Growth Finance Corp. (Nasdaq: RWAY) (“Runway Growth”), a leading provider of flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity, today announced that it will release its fourth quarter and full year 2024 financial results after market close on Thursday, March 20, 2025. Runway Growth will discuss its financial results on a conference call that day at 2:00 p.m. PT (5:00 p.m. ET).

    To participate in the conference call or webcast, participants should register online at the Runway Growth Investor Relations website. Participants are requested to register a day in advance or at a minimum 15 minutes before the start of the call. The earnings call can also be accessed through the following links:

    A replay of the webcast will be available two hours after the call and archived on the same web page for 90 days.

    About Runway Growth Finance Corp.
    Runway Growth is a growing specialty finance company focused on providing flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity. Runway Growth is a closed-end investment fund that has elected to be regulated as a business development company under the Investment Company Act of 1940. Runway Growth is externally managed by Runway Growth Capital LLC, an established registered investment advisor that was formed in 2015 and led by industry veteran David Spreng. For more information, please visit www.runwaygrowth.com.

    Forward-Looking Statements
    Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Runway Growth’s filings with the Securities and Exchange Commission. Runway Growth undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

    IR Contacts:
    Taylor Donahue, Prosek Partners, rway@prosek.com
    Thomas B. Raterman, Chief Financial Officer and Chief Operating Officer, tr@runwaygrowth.com

    The MIL Network –

  • MIL-OSI: Varonis Announces Fourth Quarter 2024 and Full-Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Annual recurring revenues grew 18% year-over-year
    SaaS ARR as a percentage of total ARR was approximately 53%
    Year-to-date cash from operations generated $115.2 million vs. $59.4 million last year
    Year-to-date free cash flow generated $108.5 million vs. $54.3 million last year

    NEW YORK, Feb. 04, 2025 (GLOBE NEWSWIRE) — Varonis Systems, Inc. (Nasdaq: VRNS), a leader in data security, today announced financial results for the fourth quarter and full-year ended December 31, 2024.

    Yaki Faitelson, Varonis CEO, said, “We are excited by the approximately 50% increase in ARR from new customers, which was driven by the simplicity of SaaS and MDDR as well as customer interest in utilizing Generative AI raising awareness for our solution. We look forward to continuing our momentum and completing our SaaS transition in 2025, which will unlock many more benefits as we capture our massive opportunity.”

    Guy Melamed, Varonis CFO & COO, added, “For the first time in company history, SaaS represents a majority of ARR as we finished the fourth quarter with 53% of total company ARR coming from SaaS. This demand positions the company for another year of strong ARR growth and continued improvement in free cash flow generation, while we make strategic investments aimed at supporting our goal of returning to more than 20% ARR growth.”

    Financial Summary for the Fourth Quarter Ended December 31, 2024

    • Total revenues were $158.5 million, compared with $154.1 million in the fourth quarter of 2023.
    • SaaS revenues were $72.2 million, compared with $23.0 million in the fourth quarter of 2023.
    • Term license subscription revenues were $66.8 million, compared with $106.2 million in the fourth quarter of 2023.
    • Maintenance and services revenues were $19.5 million, compared with $24.9 million in the fourth quarter of 2023.
    • GAAP operating loss was ($17.6) million, compared to GAAP operating loss of ($5.2) million in the fourth quarter of 2023.
    • Non-GAAP operating income was $15.3 million, compared to non-GAAP operating income of $27.2 million in the fourth quarter of 2023.

    Financial Summary for the Year Ended December 31, 2024

    • Total revenues were $551.0 million, compared with $499.2 million in 2023.
    • SaaS revenues were $208.8 million, compared with $44.4 million in 2023.
    • Term license subscription revenues were $254.2 million, compared with $356.5 million in 2023.
    • Maintenance and services revenues were $87.9 million, compared with $98.3 million in 2023.
    • GAAP operating loss was ($117.7) million, compared to GAAP operating loss of ($117.2) million in 2023.
    • Non-GAAP operating income was $15.9 million, compared to non-GAAP operating income of $28.7 million in 2023.

    The tables at the end of this press release include a reconciliation of GAAP operating income (loss) to non-GAAP operating income (loss) and GAAP net income (loss) to non-GAAP net income (loss) for the three and twelve months ended December 31, 2024 and 2023. An explanation of these measures is included below under the heading “Non-GAAP Financial Measures and Key Performance Indicators.”

    Key Performance Indicators and Recent Business Highlights

    • Annual recurring revenues, or ARR, was $641.9 million as of the end of the fourth quarter, up 18% year-over-year.
    • As of December 31, 2024, the Company had $1.2 billion in cash and cash equivalents, short-term deposits and short-term and long-term marketable securities.
    • During the twelve months ended December 31, 2024, the Company generated $115.2 million of cash from operations, compared to $59.4 million generated in the prior year period.
    • During the twelve months ended December 31, 2024, the Company generated $108.5 million of free cash flow, compared to $54.3 million generated in the prior year period.
    • Announced expansion of IaaS security coverage to Google Cloud, bringing the company’s proven data-centric approach to Google Cloud storage and data warehouses.
    • Expanded coverage to discover and classify critical data, remove exposures, and detect threats on the Databricks Data Intelligence Platform.
    • Broadened coverage to continuously discover and classify data and resolve issues related to data risk and overexposure within ServiceNow.

    An explanation of ARR is included below under the heading “Non-GAAP Financial Measures and Key Performance Indicators.” In addition, the tables at the end of this press release include a reconciliation of net cash provided by operating activities to non-GAAP free cash flow. An explanation of this measure is also included below under the heading “Non-GAAP Financial Measures and Key Performance Indicators.”

    Financial Outlook

    For the first quarter of 2025, the Company expects:

    • Revenues of $130.0 million to $135.0 million, or year-over-year growth of 14% to 18%.
    • Non-GAAP operating loss of ($14.0) million to ($11.0) million.
    • Non-GAAP net loss per diluted share in the range of ($0.06) to ($0.04), based on 113.6 million diluted shares outstanding.

    For full year 2025, the Company expects:

    • ARR of $737.0 million to $745.0 million, or year-over-year growth of 15% to 16%.
    • Net cash provided by operating activities of $132.0 million to $139.0 million.
    • Free cash flow of $120.0 million to $125.0 million.
    • Revenues of $610.0 million to $625.0 million, or year-over-year growth of 11% to 13%.
    • Non-GAAP operating income of $0.5 million to $10.5 million.
    • Non-GAAP net income per diluted share in the range of $0.13 to $0.17, based on 137.5 million diluted shares outstanding.

    Actual results may differ materially from the Company’s Financial Outlook as a result of, among other things, the factors described below under “Forward-Looking Statements”.

    Conference Call and Webcast
    Varonis will host a conference call today, Tuesday, February 4, 2025, at 4:30 p.m. Eastern Time, to discuss the Company’s fourth quarter 2024 and full-year 2024 financial results. To access this call, dial 877-425-9470 (domestic) or 201-389-0878 (international). The passcode is 13750890. A replay of this conference call will be available through February 11, 2025 at 844-512-2921 (domestic) or 412-317-6671 (international). The replay passcode is 13750890. A live webcast of this conference call will be available on the “Investors” page of the Company’s website (www.varonis.com), and a replay will be archived on the website as well.

    Non-GAAP Financial Measures and Key Performance Indicators
    Varonis believes that the use of non-GAAP operating income (loss) and non-GAAP net income (loss) is helpful to our investors. These measures, which the Company refers to as our non-GAAP financial measures, are not prepared in accordance with GAAP.

    Non-GAAP operating income (loss) is calculated as operating income (loss) excluding (i) stock-based compensation expense, (ii) payroll tax expense related to stock-based compensation, and (iii) amortization of acquired intangible assets and acquisition-related expenses.

    Non-GAAP net income (loss) is calculated as net income (loss) excluding (i) stock-based compensation expense, (ii) payroll tax expense related to stock-based compensation, (iii) amortization of acquired intangible assets and acquisition-related expenses, (iv) foreign exchange gains (losses) which include exchange rate differences on lease contracts as a result of the implementation of ASC 842 and (v) amortization of debt issuance costs.

    The Company believes that the exclusion of these expenses provides a more meaningful comparison of our operational performance from period to period and offers investors and management greater visibility to the underlying performance of our business. Specifically:

    • Stock-based compensation expenses utilize varying available valuation methodologies, subjective assumptions and a variety of equity instruments that can impact a company’s non-cash expenses;
    • Payroll taxes are tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of vesting or exercise, factors which may vary from period to period;
    • Acquired intangible assets are valued at the time of acquisition and are amortized over an estimated useful life after the acquisition, and acquisition-related expenses are unrelated to current operations and neither are comparable to the prior period nor predictive of future results;
    • The Company incurs foreign exchange gains or losses from the revaluation of its significant operating lease liabilities in foreign currencies as well as other assets and liabilities denominated in non-U.S. dollars, which may vary from period to period; and
    • Amortization of debt issuance costs, which relate to the Company’s convertible senior notes issued in 2020 and 2024, are a non-cash item.

    Free cash flow is calculated as net cash provided by or used in operating activities less purchases of property and equipment. We believe that free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash provided by or used in our operations that, after the investments in property and equipment, can be used for strategic initiatives.

    Each of our non-GAAP financial measures is an important tool for financial and operational decision making and for evaluating our own operating results over different periods of time. The non-GAAP financial measures do not represent our financial performance under U.S. GAAP and should not be considered as alternatives to operating income (loss) or net income (loss) or any other performance measures derived in accordance with GAAP. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, and exclude expenses that may have a material impact on our reported financial results. Further, stock-based compensation expense and payroll tax expense related to stock-based compensation have been, and will continue to be for the foreseeable future, significant recurring expenses in our business and an important part of the compensation provided to our employees. Also, the amortization of intangible assets are expected recurring expenses over the estimated useful life of the underlying intangible asset and acquisition-related expenses will be incurred to the extent acquisitions are made in the future. Additionally, foreign exchange rates may fluctuate from one period to another, and the Company does not estimate movements in foreign currencies. Finally, the amortization of debt issuance costs are expected recurring expenses until the maturity of the senior notes in 2029.

    The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Varonis urges investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measures to evaluate our business.

    A reconciliation for non-GAAP operating income (loss) and non-GAAP net income (loss) referred to in our “Financial Outlook” is not provided because, as forward-looking statements, such reconciliation is not available without unreasonable effort due to the high variability, complexity, and difficulty of estimating certain items such as charges to stock-based compensation expense and currency fluctuations which could have an impact on our consolidated results. The Company believes the information provided is useful to investors because it can be considered in the context of the Company’s historical disclosures of this measure.

    ARR is a key performance indicator defined as the annualized value of active SaaS contracts, term-based subscription license contracts, and maintenance contracts in effect at the end of that period. SaaS contracts, term-based subscription license contracts, and maintenance contracts are annualized by dividing the total contract value by the number of days in the term and multiplying the result by 365. The annualized value of contracts is a legal and contractual determination made by assessing the contractual terms with our customers. The annualized value of maintenance contracts is not determined by reference to historical revenues, deferred revenues or any other GAAP financial measure over any period. ARR is not a forecast of future revenues, which can be impacted by contract start and end dates and renewal rates.

    Forward-Looking Statements

    This press release contains, and statements made during the above referenced conference call will contain, “forward-looking” statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including regarding the Company’s growth rate and its expectations regarding future revenues, operating income or loss or earnings or loss per share. These statements are not guarantees of future performance but are based on management’s expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include the following: the impact of potential information technology, cybersecurity or data security breaches; risks associated with anticipated growth in Varonis’ addressable market; general economic and industry conditions, such as foreign currency exchange rate fluctuations and expenditure trends for data and cybersecurity solutions; Varonis’ ability to predict the timing and rate of subscription renewals and their impact on the Company’s future revenues and operating results; risks associated with international operations; the impact of global conflicts on the budgets of our clients and on economic conditions generally; competitive factors, including increased sales cycle time, changes in the competitive environment, pricing changes and increased competition; the risk that Varonis may not be able to attract or retain employees, including sales personnel and engineers; Varonis’ ability to build and expand its direct sales efforts and reseller distribution channels; risks associated with the closing of large transactions, including Varonis’ ability to close large transactions consistently on a quarterly basis; new product introductions and Varonis’ ability to develop and deliver innovative products; Varonis’ ability to provide high-quality service and support offerings; the expansion of cloud-delivered services; and risks associated with our convertible notes and capped-call transactions. These and other important risk factors are described more fully in Varonis’ reports and other documents filed with the Securities and Exchange Commission and could cause actual results to vary from expectations. All information provided in this press release and in the conference call is as of the date hereof, and Varonis undertakes no duty to update or revise this information, whether as a result of new information, new developments or otherwise, except as required by law.

    About Varonis

    Varonis (Nasdaq: VRNS) is a leader in data security, fighting a different battle than conventional cybersecurity companies. Our cloud-native Data Security Platform continuously discovers and classifies critical data, removes exposures, and detects advanced threats with AI-powered automation.

    Thousands of organizations worldwide trust Varonis to defend their data wherever it lives — across SaaS, IaaS, and hybrid cloud environments. Customers use Varonis to automate a wide range of security outcomes, including data security posture management (DSPM), data classification, data access governance (DAG), data detection and response (DDR), data loss prevention (DLP), and insider risk management.

    Varonis protects data first, not last. Learn more at www.varonis.com.

    Investor Relations Contact:
    Tim Perz
    Varonis Systems, Inc.
    646-640-2112
    investors@varonis.com 

    News Media Contact:
    Rachel Hunt
    Varonis Systems, Inc.
    877-292-8767 (ext. 1598)
    pr@varonis.com 

    Varonis Systems, Inc.
    Consolidated Statements of Operations
    (in thousands, except for share and per share data)
     
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
       2024     2023     2024     2023 
      Unaudited   Unaudited    
    Revenues:              
    Term license subscriptions $ 66,781     $ 106,184     $ 254,241     $ 356,490  
    SaaS   72,206       22,980       208,781       44,417  
    Maintenance and services   19,527       24,935       87,928       98,253  
    Total revenues   158,514       154,099       550,950       499,160  
                   
    Cost of revenues   26,055       19,347       93,847       71,751  
                   
    Gross profit   132,459       134,752       457,103       427,409  
                   
    Operating expenses:              
    Research and development   50,546       48,144       196,765       183,838  
    Sales and marketing   76,123       70,569       288,769       277,893  
    General and administrative   23,342       21,283       89,220       82,901  
    Total operating expenses   150,011       139,996       574,754       544,632  
                   
    Operating loss   (17,552 )     (5,244 )     (117,651 )     (117,223 )
    Financial income, net   7,605       5,433       34,644       30,305  
                   
    Income (loss) before income taxes   (9,947 )     189       (83,007 )     (86,918 )
    Income taxes   (3,047 )     (1,087 )     (12,758 )     (13,998 )
                   
    Net loss $ (12,994 )   $ (898 )   $ (95,765 )   $ (100,916 )
                   
    Net loss per share of common stock, basic and diluted $ (0.12 )   $ (0.01 )   $ (0.86 )   $ (0.92 )
                   
    Weighted average number of shares used in computing net loss per share of common stock, basic and diluted   112,488,376       109,007,859       111,660,541       109,141,894  
    Stock-based compensation expense for the three and twelve months ended December 31, 2024 and 2023 is included in the Consolidated Statements of Operations as follows (in thousands):
                   
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
       2024    2023    2024    2023
      Unaudited   Unaudited    
    Cost of revenues $ 1,175   $ 1,275   $ 5,192   $ 7,221
    Research and development   10,709     11,199     41,766     48,679
    Sales and marketing   10,509     10,186     41,494     48,047
    General and administrative   10,176     8,983     38,230     35,872
      $ 32,569   $ 31,643   $ 126,682   $ 139,819
    Payroll tax expense related to stock-based compensation for the three and twelve months ended December 31, 2024 and 2023 is included in the Consolidated Statements of Operations as follows (in thousands):
                   
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
       2024    2023    2024    2023
      Unaudited   Unaudited    
    Cost of revenues $ 6   $ 20   $ 637   $ 405
    Research and development   38     133     604     365
    Sales and marketing   146     152     3,196     1,972
    General and administrative   16     32     1,181     518
      $ 206   $ 337   $ 5,618   $ 3,260
    Amortization of acquired intangibles and acquisition-related expenses for the three and twelve months ended December 31, 2024 and 2023 is included in the Consolidated Statements of Operations as follows (in thousands):
                   
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
       2024    2023    2024    2023
      Unaudited   Unaudited    
    Cost of revenues $ 119   $ 381   $ 1,263   $ 1,525
    Research and development   —     128     —     1,363
    Sales and marketing   —     —     —     —
    General and administrative   —     —     —     —
      $ 119   $ 509   $ 1,263   $ 2,888
    Varonis Systems, Inc.
    Consolidated Balance Sheets
    (in thousands)
     
      December 31, 2024   December 31, 2023
      Unaudited    
    Assets      
    Current assets:      
    Cash and cash equivalents $ 185,585     $ 230,740  
    Marketable securities   343,383       253,175  
    Short-term deposits   39,450       49,800  
    Trade receivables, net   192,832       169,116  
    Prepaid expenses and other short-term assets   116,824       64,326  
    Total current assets   878,074       767,157  
    Long-term assets:      
    Long-term marketable securities   658,896       211,063  
    Operating lease right-of-use assets   45,593       51,838  
    Property and equipment, net   30,795       33,964  
    Intangible assets, net   —       1,263  
    Goodwill   23,135       23,135  
    Other assets   27,782       15,490  
    Total long-term assets   786,201       336,753  
    Total assets $ 1,664,275     $ 1,103,910  
           
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Trade payables $ 4,313     $ 672  
    Accrued expenses and other short-term liabilities   164,930       125,057  
    Convertible senior notes, net   250,529       —  
    Deferred revenues   290,113       181,049  
    Total current liabilities   709,885       306,778  
    Long-term liabilities:      
    Convertible senior notes, net   450,243       250,477  
    Operating lease liabilities   42,789       51,313  
    Deferred revenues   2,211       886  
    Other liabilities   3,491       4,808  
    Total long-term liabilities   498,734       307,484  
           
    Stockholders’ equity:      
    Share capital      
    Common stock   113       109  
    Accumulated other comprehensive income (loss)   2,676       (8,649 )
    Additional paid-in capital   1,193,022       1,142,578  
    Accumulated deficit   (740,155 )     (644,390 )
    Total stockholders’ equity   455,656       489,648  
    Total liabilities and stockholders’ equity $ 1,664,275     $ 1,103,910  
    Varonis Systems, Inc.
    Consolidated Statements of Cash Flows
    (in thousands)
     
      Twelve Months Ended
    December 31,
       2024     2023 
      Unaudited    
    Cash flows from operating activities:      
    Net loss $ (95,765 )   $ (100,916 )
    Adjustments to reconcile net loss to net cash provided by operating activities:      
    Depreciation and amortization   11,126       11,703  
    Stock-based compensation   126,682       139,819  
    Amortization of deferred commissions   54,392       53,072  
    Non-cash operating lease costs   9,526       9,468  
    Amortization of debt issuance costs   2,144       1,514  
    Amortization of premium and accretion of discount on marketable securities, net   (12,690 )     (9,354 )
    Acquired in-process research and development   6,653       —  
           
    Changes in assets and liabilities:      
    Trade receivables   (23,716 )     (33,137 )
    Prepaid expenses and other short-term assets   (35,332 )     (21,459 )
    Deferred commissions   (59,820 )     (53,505 )
    Other long-term assets   347       (577 )
    Trade payables   3,641       (2,290 )
    Accrued expenses and other short-term liabilities   17,317       (5,278 )
    Deferred revenues   110,389       69,882  
    Other long-term liabilities   306       474  
    Net cash provided by operating activities   115,200       59,416  
           
    Cash flows from investing activities:      
    Proceeds from maturities of marketable securities   308,840       301,350  
    Proceeds from sales of marketable securities   111,552       —  
    Investment in marketable securities   (949,841 )     (517,948 )
    Proceeds from short-term and long-term deposits   34,795       214,444  
    Investment in short-term and long-term deposits   (24,254 )     (135,823 )
    Purchase of in-process research and development   (6,653 )     —  
    Purchases of property and equipment   (6,694 )     (5,099 )
    Net cash used in investing activities   (532,255 )     (143,076 )
           
    Cash flows from financing activities:      
    Proceeds from issuance of convertible senior notes, net of issuance costs   449,635       —  
    Purchases of capped calls   (55,522 )     —  
    Proceeds from employee stock plans   16,082       11,537  
    Taxes paid related to net share settlement of equity awards   (38,295 )     (21,415 )
    Repurchase of common stock   —       (43,522 )
    Net cash provided by (used in) financing activities   371,900       (53,400 )
    Decrease in cash and cash equivalents   (45,155 )     (137,060 )
    Cash and cash equivalents at beginning of period   230,740       367,800  
    Cash and cash equivalents at end of period $ 185,585     $ 230,740  
    Varonis Systems, Inc.
    Reconciliation of GAAP Measures to non-GAAP
    (in thousands, except share and per share data)
     
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
       2024     2023     2024     2023 
      Unaudited   Unaudited
    Reconciliation to non-GAAP operating income:              
                   
    GAAP operating loss $ (17,552 )   $ (5,244 )   $ (117,651 )   $ (117,223 )
                   
    Add back:              
    Stock-based compensation expense   32,569       31,643       126,682       139,819  
    Payroll tax expenses related to stock-based compensation   206       337       5,618       3,260  
    Amortization of acquired intangible assets and acquisition-related expenses   119       509       1,263       2,888  
    Non-GAAP operating income $ 15,342     $ 27,245     $ 15,912     $ 28,744  
                   
    Reconciliation to non-GAAP net income:              
                   
    GAAP net loss $ (12,994 )   $ (898 )   $ (95,765 )   $ (100,916 )
                   
    Add back:              
    Stock-based compensation expense   32,569       31,643       126,682       139,819  
    Payroll tax expenses related to stock-based compensation   206       337       5,618       3,260  
    Amortization of acquired intangible assets and acquisition-related expenses   119       509       1,263       2,888  
    Foreign exchange rate differences, net   3,129       2,290       827       (916 )
    Amortization of debt issuance costs   880       381       2,144       1,514  
    Non-GAAP net income $ 23,909     $ 34,262     $ 40,769     $ 45,649  
                   
    GAAP weighted average number of shares used in computing net loss per share of common stock – basic and diluted   112,488,376       109,007,859       111,660,541       109,141,894  
    Non-GAAP weighted average number of shares used in computing net income per share of common stock – basic   112,488,376       109,007,859       111,660,541       109,141,894  
    Non-GAAP weighted average number of shares used in computing net income per share of common stock – diluted   135,097,388       126,061,869       130,278,825       126,585,777  
                   
    GAAP net loss per share of common stock – basic and diluted $ (0.12 )   $ (0.01 )   $ (0.86 )   $ (0.92 )
    Non-GAAP net income per share of common stock – basic $ 0.21     $ 0.31     $ 0.37     $ 0.42  
    Non-GAAP net income per share of common stock – diluted $ 0.18     $ 0.27     $ 0.31     $ 0.36  

            

    Varonis Systems, Inc.
    Reconciliation of GAAP Measures to non-GAAP
    (in millions)
           
      Twelve Months Ended
    December 31,
       2024     2023 
      Unaudited
    Reconciliation to non-GAAP free cash flow:      
    Net cash provided by operating activities $ 115.2     $ 59.4  
    Purchases of property and equipment   (6.7 )     (5.1 )
    Free cash flow $ 108.5     $ 54.3  
    Varonis Systems, Inc.
    Reconciliation of GAAP Measures to non-GAAP
    (in millions)
           
      Twelve Months Ended
    December 31, 2025
      Low   High
    Reconciliation to non-GAAP free cash flow:      
    Net cash provided by operating activities $ 132.0     $ 139.0  
    Purchases of property and equipment   (12.0 )     (14.0 )
    Free cash flow $ 120.0     $ 125.0  

    The MIL Network –

  • MIL-OSI: Key Tronic Corporation Announces Results For the Second Quarter of Fiscal Year 2025

    Source: GlobeNewswire (MIL-OSI)

    SPOKANE VALLEY, Wash., Feb. 04, 2025 (GLOBE NEWSWIRE) — Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter ended December 28, 2024. These results are in line with the updated guidance provided on January 24, 2025.

    For the second quarter of fiscal year 2025, Key Tronic reported total revenue of $113.9 million, compared to $147.8 million in the same period of fiscal year 2024. The lower than anticipated revenue and earnings for the second quarter of fiscal year 2025 are primarily due to unexpected shortages for specific components managed by a large customer, lower-than-expected production during the holiday season, and reduced demand from certain customers which together lowered revenue by approximately $15 million from initial guidance for the quarter. For the first six months of fiscal year 2025, total revenue was $245.4 million, compared to $298.0 million in the same period of fiscal year 2024.

    Gross margins were 6.8% and operating margins were (1.0)% in the second quarter of fiscal year 2025, compared to 8.0% and 2.7%, respectively, in the same period of fiscal year 2024. The decline in margins for the second quarter of fiscal year 2025 primarily reflects the reduction of revenue. As previously announced, interest expense also included approximately $1.0 million in write-offs of unamortized loan fees related to refinancing the Company’s debt with a new lender.

    The net loss was $(4.9) million or $(0.46) per share for the second quarter of fiscal year 2025, compared to net income of $1.1 million or $0.10 per share for the same period of fiscal year 2024. For the first six months of fiscal year 2025, the net loss was $(3.8) million or $(0.35) per share, compared to net income of $1.4 million or $0.13 per share for the same period of fiscal year 2024.

    The adjusted net loss was $(4.1) million or $(0.38) per share for the second quarter of fiscal year 2025, compared to adjusted net income of $1.1 million or $0.10 per share for the same period of fiscal year 2024. The adjusted net loss was $(2.9) million or $(0.27) per share for first six months of fiscal year 2025, compared to adjusted net income of $1.2 million or $0.11 per share for the same period of fiscal year 2024. See “Non-GAAP Financial Measures,” below for additional information about adjusted net income and adjusted net income per share.

    “As we announced today, we’re planning to significantly increase production capacity in Arkansas and Vietnam in order to continue to benefit from the growing customer demand for rebalancing their contract manufacturing. We believe these initiatives should help mitigate the adverse impact and uncertainties surrounding the recently announced tariffs on goods manufactured in China and Mexico,” said Brett Larsen, President and CEO.

    “We are disappointed with the unexpected decline in revenue in the second quarter of fiscal 2025, however, we expect our revenue and earnings to improve in the third quarter of fiscal year 2025 as strategic initiatives undertaken in previous quarters come to fruition. We’re actively streamlining our international and domestic operations, with further headcount reductions to enhance efficiency, building on similar actions a year ago. We’re also pleased to see our inventory levels being more in line with current revenue levels and expect that these strategic changes will improve our overall profitability in the longer term.”  

    “At the same time, we continued to win new programs, such as aerospace systems and an energy resiliency technology program, which was recently announced. Once fully ramped, the latter program could generate annual revenue for us in excess of $60 million. We also closed on a long-term debt refinancing agreement during the quarter that expands available capital for growth. We believe Key Tronic remains well positioned for increased growth and profitability in coming periods.”

    The financial data presented for the second quarter of fiscal 2025 should be considered preliminary and could be subject to change, as the Company’s independent auditor has not completed their review procedures.

    Business Outlook

    Due to uncertainty in the economic and political environments related to the impact of recently announced potential tariffs, Key Tronic will not be issuing revenue or earnings guidance for the third quarter of fiscal year 2025.

    Conference Call

    Key Tronic will host a conference call to discuss its financial results at 2:00 PM Pacific (5:00 PM Eastern) today. A broadcast of the conference call will be available at www.keytronic.com under “Investor Relations” or by calling 888-394-8218 or +1-313-209-4906 (Access Code: 2254355). The Company will also reference accompanying slides that can be viewed with the webcast at www.keytronic.com under “Investor Relations”. A replay will be available at www.keytronic.com under “Investor Relations”.

    About Key Tronic

    Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico, China and Vietnam. The Company provides its customers with full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution. Its customers include some of the world’s leading original equipment manufacturers. For more information about Key Tronic visit: www.keytronic.com 

    Forward-Looking Statements

    Some of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to those including such words as aims, anticipates, believes, continues, estimates, expects, hopes, intends, plans, predicts, projects, targets, will, or would, similar verbs, or nouns corresponding to such verbs, which may be forward looking. Forward-looking statements also include other passages that are relevant to expected future events, performances, and actions or that can only be fully evaluated by events that will occur in the future. Forward-looking statements in this release include, without limitation, the Company’s statements regarding its expectations with respect to financial conditions and results, including revenue and earnings, cost savings from headcount reduction and the Mexican Peso exchange rate, demand for certain products and the effectiveness of some of its programs, business from customers and programs, and impacts from operational streamlining and efficiencies, including reductions in inventories. There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to: the future of the global economic environment and its impact on our customers and suppliers; the success and timing of our expansion plans; the availability of components from the supply chain; the availability of a healthy workforce; the accuracy of suppliers’ and customers’ forecasts; development and success of customers’ programs and products; timing and effectiveness of ramping of new programs; success of new-product introductions; the risk of legal proceedings or governmental investigations relating to the previously reported financial statement restatements and related material weaknesses, the May 2024 cybersecurity incident and the subject of the internal investigation by the Company’s Audit Committee and related or other unrelated matters; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; impact of new governmental legislation and regulation, including tax reform, tariffs and related activities, such trade negotiations and other risks; and other factors, risks, and uncertainties detailed from time to time in the Company’s SEC filings.

    Non-GAAP Financial Measures

    To supplement our consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States (GAAP), we use certain non-GAAP financial measures, adjusted net income and adjusted net income per share, diluted. We provide these non-GAAP financial measures because we believe they provide greater transparency related to our core operations and represent supplemental information used by management in its financial and operational decision making. We exclude (or include) certain items in our non-GAAP financial measures as we believe the net result is a measure of our core business. We believe this facilitates operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain income and expense items that would not otherwise be apparent on a GAAP basis. Non-GAAP performance measures should be considered in addition to, and not as a substitute for, results prepared in accordance with GAAP. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Our non-GAAP financial measures may be different from those reported by other companies. See the table below entitled “Reconciliation of GAAP to non-GAAP measures” for reconciliations of adjusted net income to the most directly comparable GAAP measure, which is GAAP net income, and the computation of adjusted net income per share, diluted.

             
    CONTACTS:   Tony Voorhees   Michael Newman
        Chief Financial Officer   Investor Relations
        Key Tronic Corporation   StreetConnect
        (509)-927-5345   (206) 729-3625
             

    KEY TRONIC CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share amounts)
    (Unaudited)

      Three Months Ended   Six Months Ended
      December 28, 2024   December 30, 2023   December 28, 2024   December 30, 2023
    Net sales $ 113,853     $ 147,847     $ 245,411     $ 297,959  
    Cost of sales   106,147       136,084       224,402       275,334  
    Gross profit   7,706       11,763       21,009       22,625  
    Research, development and engineering expenses   2,320       1,758       4,609       3,999  
    Selling, general and administrative expenses   6,507       6,057       13,077       11,841  
    Gain on insurance proceeds, net of losses   —       —       —       (431 )
    Total operating expenses   8,827       7,815       17,686       15,409  
    Operating income (loss)   (1,121 )     3,948       3,323       7,216  
    Interest expense, net   3,904       2,961       7,167       5,972  
    Income (loss) before income taxes   (5,025 )     987       (3,844 )     1,244  
    Income tax benefit   (111 )     (97 )     (54 )     (175 )
    Net income (loss) $ (4,914 )   $ 1,084     $ (3,790 )   $ 1,419  
    Net income (loss) per share — Basic $ (0.46 )   $ 0.10     $ (0.35 )   $ 0.13  
    Weighted average shares outstanding — Basic   10,762       10,762       10,762       10,762  
    Net income (loss) per share — Diluted $ (0.46 )   $ 0.10     $ (0.35 )   $ 0.13  
    Weighted average shares outstanding — Diluted   10,762       10,889       10,762       10,889  
                                   

    KEY TRONIC CORPORATION AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (Unaudited)

        December 28, 2024   June 29, 2024
    ASSETS        
    Current assets:        
    Cash and cash equivalents   $ 4,244     $ 4,752  
    Trade receivables, net of credit losses of $2,931 and $2,918     113,132       132,559  
    Contract assets     18,892       21,250  
    Inventories, net     100,709       105,099  
    Other, net of credit losses of $1,496 and $1,679     24,159       24,739  
    Total current assets     261,136       288,399  
    Property, plant and equipment, net     27,123       28,806  
    Operating lease right-of-use assets, net     13,829       15,416  
    Other assets:        
    Deferred income tax asset     19,287       17,376  
    Other     6,454       5,346  
    Total other assets     25,741       22,722  
    Total assets   $ 327,829     $ 355,343  
    LIABILITIES AND SHAREHOLDERS’ EQUITY        
    Current liabilities:        
    Accounts payable   $ 63,585     $ 79,394  
    Accrued compensation and vacation     6,218       6,510  
    Current portion of long-term debt     5,063       3,123  
    Other     18,904       15,149  
    Total current liabilities     93,770       104,176  
    Long-term liabilities:        
    Long-term debt, net     106,020       116,383  
    Operating lease liabilities     8,429       10,312  
    Deferred income tax liability     9       263  
    Other long-term obligations     114       219  
    Total long-term liabilities     114,572       127,177  
    Total liabilities     208,342       231,353  
    Shareholders’ equity:        
    Common stock, no par value—shares authorized 25,000; issued and outstanding 10,762 and 10,762 shares, respectively     47,367       47,284  
    Retained earnings     73,131       76,921  
    Accumulated other comprehensive loss     (1,011 )     (215 )
    Total shareholders’ equity     119,487       123,990  
    Total liabilities and shareholders’ equity   $ 327,829     $ 355,343  
             

    KEY TRONIC CORPORATION AND SUBSIDIARIES
    Reconciliation of GAAP to non-GAAP measures
    (In thousands, except per share amounts)
    (Unaudited)

      Three Months Ended   Six Months Ended
      December 28, 2024   December 30, 2023   December 28, 2024   December 30, 2023
    GAAP net income (loss) $ (4,914 )   $ 1,084     $ (3,790 )   $ 1,419  
    Gain on insurance proceeds (net of losses)   —       —       —       (431 )
    Stock-based compensation expense   16       53       83       112  
    Write-off of unamortized loan fees   1,012       —       1,012       —  
    Income tax effect of non-GAAP adjustments (1)   (206 )     (11 )     (219 )     64  
    Adjusted net income (loss): $ (4,092 )   $ 1,126     $ (2,914 )   $ 1,164  
                   
    Adjusted net income (loss) per share — non-GAAP Diluted $ (0.38 )   $ 0.10     $ (0.27 )   $ 0.11  
    Weighted average shares outstanding — Diluted   10,762       10,889       10,762       10,889  
                   
    (1) Income tax effects are calculated using an effective tax rate of 20%, which approximates the statutory GAAP tax rate for the presented periods.        

    The MIL Network –

  • MIL-OSI: Uni-Fuels Holdings Limited Announces Underwriters’ Full Exercise of Over-allotment Option

    Source: GlobeNewswire (MIL-OSI)

    SINGAPORE, Feb. 04, 2025 (GLOBE NEWSWIRE) — Uni-Fuels Holdings Limited (NASDAQ: UFG) (“Uni-Fuels” or the “Company”), a global provider of marine fuel solutions for shipping companies headquartered in Singapore, announced today that on February 4, 2025, the underwriter of its previously announced initial public offering (the “Offering”) has exercised its over-allotment option (the “Over-Allotment Option”) in full and purchased an additional 315,000 Class A Ordinary Shares of the Company at the public offering price of $4.00 per share, resulting in additional gross proceeds of $1.26 million. After giving effect to the full exercise of the Over-Allotment Option, the total number of Class A Ordinary Shares sold by the Company in the Offering increased to 2,415,000 Class A Ordinary Shares and the gross proceeds increased to $9.66 million, before deducting underwriting discounts and commissions.

    The Class A Ordinary Shares commenced trading on Nasdaq Capital Market on January 14, 2025 under the ticker symbol “UFG.”

    Uni-Fuels intends to use the proceeds from the Offering for scaling up its reselling activities to gain market share from existing and new markets; for strengthening its workforce and expanding its market presence in new geographical locations; and as cash reserve and general corporate purposes.

    The Offering was conducted on a firm commitment basis. R. F. Lafferty & Co., Inc. acted as the sole book-running manager for the Offering.

    A registration statement on Form F-1 relating to the shares being sold in the Offering was initially filed with the U.S. Securities and Exchange Commission (the “SEC”) on October 28, 2024; and was declared effective by the SEC on January 10, 2025. This Offering was made only by means of a prospectus. A copy of the final prospectus relating to the Offering may be obtained for free by visiting EDGAR on the SEC’s website at www.sec.gov, or alternatively, from: R. F. Lafferty & Co., Inc., 40 Wall Street, 27th Floor, New York, NY 10005; (212) 293-9090.

    This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

    About Uni-Fuels Holdings Limited

    Uni-Fuels is a fast-growing global provider of marine fuel solutions, helping shipping companies optimize fuel procurement across all markets and time zones. Founded in 2021, Uni-Fuels has evolved from modest beginnings into a dynamic, forward-thinking company. Backed by a passionate team and a growing presence across multiple locations, it has forged trusted partnerships with customers, supporting them in achieving their operational objectives with confidence, from shore to shore.

    For more information, visit www.uni-fuels.com.

    Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the intended use of the proceeds. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “may”, “will”, “should”, “can have”, “likely” and other words and terms of similar meaning. Forward-looking statements represent Uni-Fuels’ current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

    Contact Information

    For Investor Relations:

    Uni-Fuels Holdings Ltd
    Email: investors@uni-fuels.com

    Skyline Corporate Communications Group, LLC
    Email: info@skylineccg.com

    The MIL Network –