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Category: Finance

  • MIL-OSI Economics: Mozambique: African Development Bank approves $54 million loan for Mozambique’s first wind energy project

    Source: African Development Bank Group

    The Board of Directors of the African Development Bank has approved a loan of $54 million for a 120 MW onshore wind farm that will help position Mozambique as a regional energy hub.

    The Bank’s loan, which includes $12 million from the Sustainable Energy Fund for Africa (SEFA), is in addition to financing expected from International Finance Corporation (IFC), U.S. International Development Finance Corporation (DFC), the Emerging Africa and Asia Infrastructure Fund (EAAIF) and the Private Infrastructure Development Group’s Technical Assistance. The total project cost is estimated at $224.5 million.

    Mozambique’s national electricity utility, EDM, will be the sole off-taker from the wind farm, located 50 km west of Maputo, under a 25-year power purchase agreement.

    The wind farm will be Mozambique’s first utility-scale wind power project. It is expected to generate 331.6 GWh annually, supplying affordable, reliable, and clean energy to both local consumers and regional markets, diversifying Mozambique’s energy mix, and improving access to electricity. It will also position the country as a regional energy hub, capitalizing on increased energy trade through the Southern African Power Pool (SAPP).

    With Mozambique’s energy sources currently dominated by hydropower and gas, the Namaacha wind farm project will help reduce annual CO₂ emissions by approximately 71,816 tons, contributing to the country’s commitments under the Paris climate agreement.

    The project will support economic growth, job creation, and improved living standards. During construction it will create 600 jobs, of which its targeting about 120 will be for women, and 300 for youth. Once operational, 20 permanent jobs will be created, with a focus on gender and youth inclusion.

    Commenting on the project, Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at the African Development Bank, said, “This wind project represents a milestone for Mozambique and underscores the Bank’s strong commitment to advancing clean, renewable energy solutions in the region. It will not only enhance energy security but also facilitate regional electricity trade, benefiting Mozambique’s socio-economic development.”

    Wale Shonibare, Director of the Energy Financial Solutions, Policy, and Regulations Department at the African Development Bank stressed the technological impact of this milestone project. “As the first large-scale wind energy initiative in Mozambique, this project showcases the transformative potential of renewable technologies to drive sustainable growth. By leveraging Mozambique’s natural resources, we are creating pathways toward a diversified and resilient energy sector that not only meets current demands but is future-proofed to support an evolving economy,” he said.

    Globeleq is one of the project developers. Its CEO Jonathan Hoffman said: “The Namaacha Wind Farm is a significant milestone in Mozambique’s journey toward a diversified and sustainable energy landscape. We are proud to partner with EDM and Source Energia in contributing to the government’s ambitious ‘Energy for All by 2030’ program, which is rapidly transforming into a reality for countless Mozambicans. This project reflects our commitment to supporting Mozambique’s clean energy goals and bringing reliable power to the communities we serve.”

    Aligned with the Bank’s Ten-Year Strategy, the New Deal on Energy for Africa, and its High 5 objective of “Light Up and Power Africa,” the project underscores Mozambique’s dedication to renewable energy development and supports its goal of achieving universal access to electricity by 2030.

    The project complements the Bank’s earlier energy sector initiatives in Mozambique, including the Songo Matambo transmission line and the Mozambique Energy for All program.

    MIL OSI Economics –

  • MIL-OSI Asia-Pac: FS continues to explore business opportunities for Hong Kong in Riyadh, Saudi Arabia (with photos)

    Source: Hong Kong Government special administrative region

         The Financial Secretary, Mr Paul Chan, together with a delegation, had their second day of visit in Riyadh, Saudi Arabia, yesterday (October 30, Riyadh time).     In the morning, Mr Chan attended the listing ceremony for the first exchange-traded fund (ETF) in Saudi Arabia that invests in Hong Kong stocks at the Saudi Exchange. This product is the result of collaboration between Albilad Bank of Saudi Arabia and Hong Kong’s CSOP Asset Management Limited.     Mr Chan highlighted that as the largest ETF in the Middle East, it will attract more regional investors and broaden funding sources for the Hong Kong market, while diversifying the investment product offerings in the Saudi market, fostering the development of its ETF market, creating a win-win situation.     He also noted that after the first ETF investing in the Saudi market was listed in Hong Kong last November, this marks the Saudi Arabia’s first ETF investing in Hong Kong stocks. He believes that more diversified products will emerge in the future, providing investors from the Middle East with convenient channels to invest in Hong Kong and Mainland China, and enhancing the two-way flow of capital between Hong Kong and Saudi Arabia, and fostering greater connectivity and more vibrant development of the capital markets in both regions.     Mr Chan and some delegation members also attended a breakfast meeting hosted by Hong Kong Exchanges and Clearing Limited (HKEX) to discuss capital market connectivity between Asia and the Middle East.     During his keynote speech at the breakfast meeting, Mr Chan elaborated on Hong Kong’s significant role and function in the global capital market. He pointed out that Saudi Arabia’s Vision 2030 has brought major reforms and opportunities, promoting capital investment from Asian markets. With its unique advantage of “one country, two systems”, Hong Kong has become the premier international financial centre connecting the Middle East with the Chinese market, particularly in three key areas: a deep and broad fund-raising market, asset and wealth management, and green and sustainable finance.  They provide diverse investment offerings for investors and enterprises in the Middle East, and providing financial support to regional economic development and green transformation.     The breakfast meeting included a discussion session moderated by HKEX’s Chief Executive Officer (CEO), Ms Bonnie Chan, featuring remarks from CEO of the Saudi Exchange, Mr Mohammed Al-Rumaih; Deputy Chief Executive of the Hong Kong Monetary Authority, Mr Darryl Chan, and CEO of Standard Chartered Group, Mr Bill Winters.     At noon, Mr Chan called on the Ambassador Extraordinary and Plenipotentiary of the People’s Republic of China to the Kingdom of Saudi Arabia, Mr Chang Hua, to brief him on Hong Kong’s latest economic developments and exchange views on China-Saudi co-operation and economic relations.     In the afternoon, Mr Chan co-hosted a capital markets roundtable with Chairman of the Saudi Capital Market Authority, Mr Mohammed bin Abdullah Elkuwaiz. Representatives from regulatory bodies and a number of asset management institutions attended to discuss the latest developments in the financial markets of both regions and to explore further co-operation opportunities.     Later, Mr Chan met with Governor of the Saudi Central Bank, Mr Ayman Alsayari, to discuss advancing connectivity in investment and financial markets between Hong Kong and Saudi Arabia and the Middle East, as well as co-operation in digital finance.     In the evening, the Hong Kong Science and Technology Parks Corporation held the “Hong Kong Tech Disrupt” event, featuring over 20 startups in green technology, biotechnology, artificial intelligence and robotics, etc. They showcased their research products and sought to connect with investors and business partners.     Yesterday, a number of delegation members also attended the “Future Investment Initiative” event and delivered speeches, continuing to tell the good story of China and Hong Kong.     ???     Mr Chan and the delegation will continue their final day of visit in Riyadh today (October 31, Riyadh time).

    MIL OSI Asia Pacific News –

  • MIL-OSI Security: Felon Who Arranged Gun Sales from Jail Sentenced to 63 Months in Prison

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    ST. LOUIS – U.S. District Judge Henry E. Autrey on Wednesday sentenced a St. Louis County man who was caught arranging for his illegally-possessed guns to be sold to 63 months in prison.

    The sentence for James C. Street, 47, will run consecutive to pending probation violation cases in St. Louis and Jefferson counties.

    Street pleaded guilty in July to one count of being a felon in possession of a firearm. He admitted that while a convicted felon and barred from possessing firearms, he possessed three pistols and an AR-style rifle.

    The investigation began after the St. Louis County Police Department learned that Street, who was in jail at the time, was discussing the sale of his firearms. Police then contacted the Bureau of Alcohol, Tobacco, Firearms and Explosives. Street sold a .357 magnum revolver through an intermediary, which was later recovered by law enforcement. Investigators learned Street was planning more sales. A court-approved search of the intermediary’s home recovered the remaining guns, as well as ammunition and large capacity magazines.

    At the time, Street was on probation for multiple felony domestic offenses.

    The Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis County Police Department investigated the case. Assistant U.S. Attorney Chris Goeke prosecuted the case.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    MIL Security OSI –

  • MIL-OSI USA: Eleven Minneapolis Gang Members Charged with RICO Conspiracy, Murder in Aid of Racketeering, and Drug Trafficking Offenses

    Source: US State Government of Utah

    A federal grand jury in Minneapolis returned an 18-count indictment yesterday against 11 alleged members of the Lows — a violent Minneapolis street gang — for crimes including Racketeer Influenced and Corrupt Organizations (RICO) conspiracy involving murder, attempted murder, gun trafficking, and drug trafficking.

    “According to the indictment, these defendants are leaders, organizers, and members of the Lows street gang, a violent gang that allegedly committed multiple murders and attempted murders and trafficked in guns and drugs, including fentanyl,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Violent gangs that engage in bloody street wars and peddle deadly drugs endanger our communities. The Criminal Division, along with our local, state, and federal partners, is committed to holding violent criminals accountable, including by bringing racketeering charges.”

    “The Lows are an exceptionally violent criminal street gang that has terrorized north Minneapolis for nearly 20 years. Through threats and violence — shootings and murders — the Lows have long sought to establish dominion over large swaths of our city,” said U.S. Attorney Andrew Luger for the District of Minnesota. “My office will continue to respond to gang violence by treating it as the organized criminal activity it is. This indictment is an important step in dismantling a violent street gang that has devastated families and communities in north Minneapolis.”

    “More than 100 people lose their lives to gun violence every day in the United States,” said Special Agent in Charge Travis Riddle of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) St. Paul Field Division. “There will never be a time where this will be considered acceptable. Our ATF agents put forth solid investigative work in this case utilizing crime gun intelligence that without a doubt aided the case announced today. ATF is happy to work alongside each of our partners in this investigation, and we are grateful to the Criminal Division, U.S. Attorney Luger, and the entire team for taking up this challenging RICO case.”

    “The charges in this indictment reflect our unwavering commitment to bringing violent criminals to justice,” said Special Agent in Charge Alvin M. Winston Sr. of the FBI Minneapolis Field Office. “For too long, the Lows have inflicted pain and spread fear in north Minneapolis. Together with our law enforcement partners, we are determined to remove this threat from our communities and help restore a sense of security to all who call this city home.”

    “Today’s indictment provides a stark reminder that violence and drug trafficking go hand-in-hand,” said Special Agent in Charge Steven T. Bell of the Drug Enforcement Administration (DEA) Omaha Division. “These were not victimless crimes. Communities were hurt. The DEA will continue its unwavering focus to remove threats of violence and hold accountable the individuals responsible for inflicting fear on the streets of Minneapolis.”

    “The individuals named in this indictment allegedly engaged in homicide, and illegal drug and firearms trafficking, which created an atmosphere of terror and disrupted countless lives in this community,” said Acting Special Agent in Charge Ramsey E. Covington of the IRS Criminal Investigation (CI) Chicago Field Office. “These charges represent a pivotal milestone in our commitment to restore safety and uphold justice in the communities we serve. Working with their federal, state, and local law enforcement partners, IRS-CI special agents will continue to follow every financial trail to dismantle the networks fueling these criminal enterprises. We stand united against the violence and fear that street gangs have inflicted upon our communities in Minneapolis and elsewhere.”

    “The Lows, and criminal organizations like them, wreak havoc on our communities, threatening the safety of our communities on a daily basis through their many acts of violence, murder, and narcotics and firearms trafficking,” said Special Agent in Charge Jamie Holt of Homeland Security Investigations (HSI) St. Paul. “HSI St. Paul will continue to foster a strong collaboration with our law enforcement partners to bring an end to the chaos these criminal organizations inflict on our local communities.”

    “This multi-count indictment against ranking members of the Lows gang is an excellent example of multiple law enforcement agencies combining their expertise and resources to conduct investigations with the common goal of taking down violent leaders perpetuating street violence involving guns and narcotics,” said Inspector in Charge Bryan Musgrove of the U.S. Postal Inspection Service (USPIS) Denver Division. “These RICO charges aim to remove these allegedly violent offenders from our community. U.S. Postal Inspectors are committed to continuing our work to dismantle drug trafficking operations to keep USPS customers and employees safe from greedy drug traffickers who favor profit over human lives.”

    As alleged in this indictment, the defendants were members of the Lows criminal street gang, which has been in existence in Minneapolis since approximately 2004. The Lows are primarily active in the northside of Minneapolis. They allegedly traffic in firearms and narcotics, including fentanyl, and use threats, intimidation, and violence to protect their territory, reputation, illicit proceeds, and power.

    The indictment charges that the defendants engaged in a pattern of racketeering — that is, unlawful acts of violence, gun trafficking, and narcotics trafficking — for the benefit of the Lows enterprise. These acts include seven alleged murders or attempted murders involving a total of ten victims.

    The 11 defendants, all from Minneapolis, have been indicted for the following crimes:

    Ashimiyu Alowonle II, 38, also known as Cash, is charged with RICO conspiracy and conspiracy to distribute controlled substances.

    Timothy Callender III, 26, also known as Lil’ Tim, is charged with RICO conspiracy and conspiracy to distribute controlled substances.

    Glenn Carter III, 23, also known as G5 and Bossman Carter, is charged with RICO conspiracy; using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death; and conspiracy to distribute controlled substances. Carter is charged with committing a murder on May 14, 2022, as a racketeering act in furtherance of the RICO conspiracy.

    Victor Collins, 22, also known as Vic, is charged with RICO conspiracy; using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death; conspiracy to distribute controlled substances; possession with intent to distribute a controlled substance; and possessing a firearm a firearm in furtherance of drug trafficking. Collins is charged with committing a murder and an attempted murder on Feb. 27 as a racketeering act in furtherance of the RICO conspiracy.

    Damari Douglas, 20, also known as Mari, is charged with RICO conspiracy, being a felon in possession of a firearm, and possession of a machine gun. Douglas is charged with committing a murder on Dec. 3, 2023, as a racketeering act in furtherance of the RICO conspiracy.

    Deontae Jackson, 35, also known as Leef, is charged with RICO conspiracy and conspiracy to distribute controlled substances.

    Shannon Jackson, 32, also known as Shakedown, is charged with RICO conspiracy; using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death; conspiracy to distribute controlled substances; possession with intent to distribute a controlled substance; possessing a firearm in furtherance of drug trafficking; and being a felon in possession of a firearm. Jackson is charged with committing a murder on April 27, 2023, as a racketeering act in furtherance of the RICO conspiracy.

    Robert Knights Jr., 19, also known as CMB Rob and Lil’ Rob, is charged with RICO conspiracy, conspiracy to distribute controlled substances, possession with intent to distribute a controlled substance, and possessing a firearm in furtherance of drug trafficking.

    Albert Lucas V, 20, also known as Abk Sav, is charged with RICO conspiracy; using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death; and conspiracy to distribute controlled substances. Lucas is charged with committing multiple murders and an attempted murder on Feb. 27 and May 6, 2021, as a racketeering act in furtherance of the RICO conspiracy.

    Kaprice Richards, 23, also known as Kap, is charged with RICO conspiracy and using, carrying, or possessing a firearm in furtherance of a crime of violence resulting in death. Richards is charged with committing an attempted murder on May 29, 2022, and a murder on April 27, 2023, as racketeering acts in furtherance of the RICO conspiracy.

    Cartrelle Smith, 27, also known as Poo Moe, is charged with RICO conspiracy, conspiracy to distribute controlled substances, possession with intent to distribute a controlled substance, and possessing a firearm in furtherance of drug trafficking.

    If convicted, the defendants face a range of penalties, including up to life in prison for racketeering conspiracy involving acts of murder, using a firearm to commit murder, and conspiracy to distribute controlled substances. A federal district court judge will determine any sentence after the consideration of the U.S. Sentencing Guidelines and other statutory factors.

    ATF, FBI, DEA, IRS-CI, HSI, USPIS, Minneapolis Police Department, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and Minnesota Department of Corrections are investigating the case, with assistance from the U.S. Marshals Service.

    Trial Attorney Jared Engelking of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorneys Garrett S. Fields and David M. Classen for the District of Minnesota are prosecuting the case.

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

    MIL OSI USA News –

  • MIL-OSI Canada: Preparation, swift response define wildfire season

    Source: Government of Canada regional news

    Aerial view of wildfires near Fox Lake and Garden River in July.

    Through effective investments, including a historic $155-million wildfire base budget, Alberta’s government ensured the province was prepared to respond throughout the 2024 wildfire season. In anticipation of the wildfire season, Alberta’s government recruited 100 additional wildland firefighters and an additional 40 contract wildland firefighters – in addition to securing more airtankers, heavy equipment, and helicopters equipped with night vision technology. As a result of this preparation, front-line crews were able to respond quickly and fight fires around the clock, containing 85 per cent of wildfires within 24 hours of detection.

    “While the 2024 wildfire season was challenging, our coordinated efforts and the resilience of Albertans have been crucial in mitigating the impact. We will continue to adapt and strengthen our wildfire management strategies to protect our communities and natural resources.”

    Todd Loewen, Minister of Forestry and Parks

    “This wildfire season has tested our resolve, especially in areas like Fox Lake and Jasper. The coordinated efforts of our firefighters and support teams were instrumental in protecting our communities. We will build on this experience to continue to improve response strategies and initiate new strategies to ensure the safety of all Albertans.”

    Martin Long, MLA for West Yellowhead

    The 2024 wildfire season began earlier than usual, with 64 carryover wildfires stemming from a mild winter and extremely dry conditions. In response to this elevated danger, Alberta’s government activated an early start to the wildfire season on February 20, 2024, implementing a fire ban and fire permit system to prevent additional human-caused wildfires.

    Despite significant challenges, including large wildfires near Jasper that led to evacuations and the tragic loss of an Alberta wildland firefighter, as well as the loss of homes and businesses in the community, Alberta Wildfire demonstrated remarkable coordination, offering immediate aid and resources to Parks Canada, including support personnel, firefighters, aircraft and equipment.

    While supporting the Jasper response led by Parks Canada, Alberta Wildfire crews continued to tackle substantial wildfires throughout the province, deploying personnel, aircraft and equipment to combat wildfires and assist impacted communities. Throughout the season, residents of Garden River, John D’Or Prairie, Fox Lake in the Little Red River Cree Nation, and the Chipewyan Cree Nation were also evacuated. Additionally, an area near Peace River and four neighborhoods in Fort McMurray faced short-term evacuations due to wildfires.

    “In the wake of the heartbreaking loss from the Jasper wildfire, we are reminded of the strength found in collaboration – with each other and among all orders of government. We are reminded also of the compelling need to invest together in training, preparation, mitigation and adaptation, ensuring that we not only respond effectively, but that we also build a more resilient future.”

    Richard Ireland, mayor, Town of Jasper

    “The 2024 wildfire season underscored the importance of early planning and preparation. Investments in people, resources and new technology proved invaluable in our response efforts.”

    Trevor Lamabe, executive director Wildfire Management Branch

    During the 2024 wildfire season, Alberta Wildfire responded to more than 1,210 wildfires in the Forest Protection Area, exceeding last year’s record-breaking total. While the number of fires in 2024 exceeded the total number of fires in 2023, wildfires this season burned less than a third of the area compared with 2023, underscoring the effectiveness of Alberta’s preparation and investments.

    Although Oct. 31 marks the end of Alberta’s wildfire season, Alberta Wildfire remains vigilant and ready to respond to any potential wildfires across the province.

    Quick Facts

    • Alberta Wildfire responded to more than 1,210 wildfires this year with more than 705,000 hectares burned.
    • In 2023, there were 1,080 wildfires and more than 2.2 million hectares burned.
    • Alberta Wildfire had almost 1,900 firefighters, contractors and support staff working on Alberta’s provincial response.
    • Alberta Wildfire also received assistance from other agencies with more than 1,300 firefighters and support staff arriving from around the world to assist.
    • While most wildfires were caused by people, we had 410 lightning-caused wildfires in July, the highest number in 20-years.

    Related information

    • Alberta Wildfire
    • Alberta Wildfire app
    • Alberta Wildfire Status Dashboard

    MIL OSI Canada News –

  • MIL-OSI: Farmers & Merchants Bancorp, Inc. Reports 2024 Third-Quarter and Year-to-Date Financial Results

    Source: GlobeNewswire (MIL-OSI)

    ARCHBOLD, Ohio, Oct. 30, 2024 (GLOBE NEWSWIRE) — Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2024 third quarter and year-to-date ended September 30, 2024.

    2024 Third Quarter Financial and Operating Highlights (on a year-over-year basis unless noted):

    • 86 consecutive quarters of profitability
    • Net income increased 36.4% to $6.5 million, or $0.48 per basic and diluted share, from $4.8 million, or $0.35 per basic and diluted share, and net income expanded 14.7% from the 2024 second quarter
    • Net interest margin increased 12 basis points to 2.71%
    • Efficiency ratio improved to 67.98%, compared to 73.07% for the same period a year ago, and 69.03% for the 2024 second quarter
    • Total net loans remain stable at $2.54 billion at September 30, 2024
    • Total assets increased 4.8% to a record $3.39 billion
    • Deposits increased 4.3% to a record $2.68 billion
    • Stockholders’ equity increased 10.6% to a record $335.4 million
    • Asset quality remains at historically strong levels with nonperforming loans of only $2.9 million at September 30, 2024, compared to $22.4 million at September 30, 2023
    • Allowance for credit losses was 879.37% of nonperforming loans
    • F&M ended the quarter with excellent liquidity levels, and over $635 million in contingent funding sources, and a cash-to-assets ratio of 7.2%
    • According to the FDIC, F&M continued to have the third largest share of deposits out of the 58 financial institutions that are also operating within its local markets

    Lars B. Eller, President and Chief Executive Officer, stated, “F&M produced excellent earnings growth on a year-over-year and sequential basis, driven by higher net interest income, historically strong asset quality, and prudent expense management. Most importantly, our third quarter results reflect the talent of our associates, as we continue to work hard to drive operating improvements at F&M, serve our local Ohio, Indiana, and Michigan communities, and position F&M for long-term success. In addition, I am pleased to report that F&M was the third largest bank out of 58 financial institutions within the markets we compete, according to the FDIC, reflecting the leading value we provide to our local communities. In fact, F&M is the number one bank, based on deposits, in almost half of the communities in which we operate.”  

    Income Statement
    Net income for the 2024 third quarter ended September 30, 2024, was $6.5 million, compared to $4.8 million for the same period last year. Net income per basic and diluted share for the 2024 third quarter was $0.48, compared to $0.35 for the same period last year. Net income for the 2024 nine months ended September 30, 2024, was $17.6 million, compared to $17.2 million for the same period last year. Net income per basic and diluted share for the 2024 nine months was $1.28, compared to $1.26 for the same period last year.

    Mr. Eller continued, “Our 2024 third quarter and year-to-date performance demonstrate the success of the near-term strategies we are pursuing to navigate a complex operating environment and improve earnings. Most importantly, while the demand for loans is high across our markets, our approach to risk and pricing remains conservative. This near-term strategy has contributed to excellent asset quality. In addition, we continue to focus on strategies aimed at optimizing our deposit base and growing low-cost checking (DDA) deposits. Since the beginning of 2024, we have added over 5,600 new checking accounts, and benefited from new and expanded relationships at offices that were opened in 2023. As a result, we ended the quarter with a loan-to-deposit ratio of 93.6%, compared to 97.2% at September 30, 2023, and 96.0% at June 30, 2024. Our third quarter of 2024 loan-to-deposit ratio was the lowest quarterly value in two years. The final near-term strategy we are pursuing is focused on controlling expenses, and I am encouraged by the continued year-over-year and sequential improvement in our efficiency ratio. This reflects the opportunities we are pursuing to manage operating costs and expand productivity.”

    Deposits
    At September 30, 2024, total deposits were $2.68 billion, an increase of 4.3% from September 30, 2023. The Company’s cost of interest-bearing liabilities was 3.2% for the quarter ended September 30, 2024, compared to 2.82% for the quarter ended September 30, 2023, and 3.02% for the 2023 fourth quarter ended December 31, 2023.

    Loan Portfolio and Asset Quality
    “F&M’s teams continue to do an excellent job managing our cost of funds, loan pricing, deposit growth and overall net interest margin. Since the quarter ended December 31, 2023, our yield on earning assets has increased by 34 basis points, compared to a 19 basis point increase in our cost of interest bearing liabilities – representing the third consecutive quarter our yield on earning assets has outpaced our cost of interest bearing liabilities. We expect this trend will continue as more of our loan portfolio reprices in 2024,” continued Mr. Eller.

    Total loans, net at September 30, 2024, increased 0.3%, or by $8.7 million to $2.54 billion, compared to $2.53 billion at September 30, 2023. The year-over-year growth was driven by higher consumer real estate, commercial and industrial, and agricultural loans, partially offset by lower commercial real estate, agricultural real estate, and consumer loans.

    F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $2.9 million, or 0.11% of total loans at September 30, 2024, compared to $22.4 million, or 0.89% of total loans at September 30, 2023, and $22.4 million, or 0.87% at December 31, 2023.

    F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 51.3% of the Company’s total loan portfolio at September 30, 2024. In addition, F&M’s commercial real estate office credit exposure represented 5.3% of the Company’s total loan portfolio at September 30, 2024, with a weighted average loan-to-value of approximately 64% and an average loan of approximately $880,000.

    F&M’s CRE portfolio included the following categories at September 30, 2024:

    CRE Category   Dollar
    Balance    		   Percent of CRE Portfolio(*)   Percent of Total Loan Portfolio(*)
                 
    Industrial   $ 274,953   21.1 %   10.8 %
    Retail   $ 237,622   18.2 %   9.4 %
    Multi-family   $ 223,926   17.2 %   8.8 %
    Hotels   $ 141,642   10.9 %   5.6 %
    Office   $ 134,973   10.4 %   5.3 %
    Gas Stations   $ 62,028   4.8 %   2.5 %
    Food Service   $ 46,526   3.6 %   1.8 %
    Development   $ 30,999   2.4 %   1.2 %
    Senior Living   $ 29,866   2.3 %   1.2 %
    Auto Dealers   $ 25,068   1.9 %   1.0 %
    Other   $ 93,557   7.2 %   3.7 %
    Total CRE   $ 1,301,160   100.0 %   51.3 %

             * Numbers have been rounded

    At September 30, 2024, the Company’s allowance for credit losses to nonperforming loans was 879.37%, compared to 112.61% at September 30, 2023, and 111.95% at December 31, 2023. The allowance to total loans was 1.01% at September 30, 2024, compared to 1.00% at September 30, 2023. Including accretable yield adjustments, associated with the Company’s recent acquisitions, F&M’s allowance for credit losses to total loans was 1.10% at September 30, 2024, compared to 1.18% at September 30, 2023.

    Mr. Eller concluded, “With two months remaining in 2024, I am encouraged by F&M’s strong financial and operating performance to date. F&M ended the quarter with record stockholders’ equity, historically strong asset quality, record deposits, and excellent liquidity levels with over $635 million in contingent funding sources, and a cash-to-assets ratio of 7.2%. We remain focused on continual improvements, managing the items under our control, and providing our customers and communities with outstanding, and local financial services. As a result, F&M’s financial and operating performance continues to strengthen and I believe the Company is well positioned to create lasting value for our communities, customers, team members, and shareholders.”

    Stockholders’ Equity and Dividends
    Total stockholders’ equity increased 10.6% to $335.4 million, or $24.48 per share at September 30, 2024, from $303.2 million, or $22.19 per share at September 30, 2023. The Company’s Tier 1 leverage ratio of 8.04%, remained stable compared to September 30, 2023.

    Tangible stockholders’ equity increased to $242.8 million at September 30, 2024, compared to $208.8 million at September 30, 2023. On a per share basis, tangible stockholders’ equity at September 30, 2024, was $17.72 per share, compared to $15.28 per share at September 30, 2023.

    For the nine months ended September 30, 2024, the Company has declared cash dividends of $0.66125 per share, which is a 5.0% increase over the same period last year. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for 30 consecutive years. For the nine months ended September 30, 2024, the dividend payout ratio was 50.99% compared to 49.50% for the same period last year.

    About Farmers & Merchants State Bank:
    Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) is the holding company of F&M Bank, a local independent community bank that has been serving its communities since 1897. F&M Bank provides commercial banking, retail banking and other financial services. Our locations are in Butler, Champaign, Fulton, Defiance, Hancock, Henry, Lucas, Shelby, Williams, and Wood counties in Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, Steuben and Wells counties. The Michigan footprint includes Oakland County, and we have Loan Production Offices in West Bloomfield, Michigan; Muncie, Indiana; and Perrysburg and Bryan, Ohio.

    Safe Harbor Statement
    Farmers & Merchants Bancorp, Inc. (“F&M”) wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995. Statements by F&M, including management’s expectations and comments, may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended. Actual results could vary materially depending on risks and uncertainties inherent in general and local banking conditions, competitive factors specific to markets in which F&M and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions, capital market conditions, or the effects of the COVID-19 pandemic, and its impacts on our credit quality and business operations, as well as its impact on general economic and financial market conditions. F&M assumes no responsibility to update this information. For more details, please refer to F&M’s SEC filing, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Such filings can be viewed at the SEC’s website, www.sec.gov or through F&M’s website www.fm.bank.

    Non-GAAP Financial Measures
    This press release includes disclosure of financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers & Merchants Bancorp, Inc. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers & Merchants Bancorp, Inc.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP financial measures is included within this press release.

     
    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME
    (Unaudited) (in thousands of dollars, except per share data)
             
          Three Months Ended   Nine Months Ended
          September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023   September 30, 2024   September 30, 2023
    Interest Income                              
    Loans, including fees     $ 36,873     $ 36,593     $ 35,200     $ 34,493   $ 33,783     $ 108,666     $ 94,851  
    Debt securities:                              
    U.S. Treasury and government agencies       1,467       1,148       1,045       987     1,005       3,660       3,103  
    Municipalities       387       389       394       397     392       1,170       1,201  
    Dividends       334       327       333       365     246       994       517  
    Federal funds sold       7       7       7       8     6       21       36  
    Other       2,833       2,702       1,675       2,020     927       7,210       1,830  
    Total interest income       41,901       41,166       38,654       38,270     36,359       121,721       101,538  
    Interest Expense                              
    Deposits       16,947       16,488       15,279       15,015     13,323       48,714       31,908  
    Federal funds purchased and securities sold under agreements to repurchase       277       276       284       293     349       837       1,181  
    Borrowed funds       2,804       2,742       2,689       2,742     2,741       8,235       6,134  
    Subordinated notes       284       285       284       285     284       853       853  
    Total interest expense       20,312       19,791       18,536       18,335     16,697       58,639       40,076  
    Net Interest Income – Before Provision for Credit Losses     21,589       21,375       20,118       19,935     19,662       63,082       61,462  
    Provision for Credit Losses – Loans       282       605       (289 )     278     460       598       1,420  
    Provision for Credit Losses – Off Balance Sheet Credit Exposures   (267 )     (18 )     (266 )     189     (76 )     (551 )     (143 )
    Net Interest Income After Provision for Credit Losses       21,574       20,788       20,673       19,468     19,278       63,035       60,185  
    Noninterest Income                              
    Customer service fees       300       189       598       415     248       1,087       917  
    Other service charges and fees       1,155       1,085       1,057       1,090     1,133       3,297       3,253  
    Interchange income       1,315       1,330       1,429       1,310     1,266       4,074       4,008  
    Loan servicing income       710       513       539       666     502       1,762       3,739  
    Net gain on sale of loans       215       314       107       230     294       636       469  
    Increase in cash surrender value of bank owned life insurance       265       236       216       216     221       717       618  
    Net loss on sale of available-for-sale securities       –       –       –       –     –       –       (891 )
    Total noninterest income       3,960       3,667       3,946       3,927     3,664       11,573       12,113  
    Noninterest Expense                              
    Salaries and wages       7,713       7,589       7,846       6,981     6,777       23,148       19,934  
    Employee benefits       2,112       2,112       2,171       1,218     2,066       6,395       6,302  
    Net occupancy expense       1,054       999       1,027       1,187     950       3,080       2,646  
    Furniture and equipment       1,472       1,407       1,353       1,370     1,189       4,232       3,652  
    Data processing       339       448       500       785     840       1,287       2,362  
    Franchise taxes       410       265       555       308     434       1,230       1,179  
    ATM expense       472       397       473       665     640       1,342       1,946  
    Advertising       597       519       530       397     865       1,646       2,209  
    Net (gain) loss on sale of other assets owned       –       (49 )     –       86     49       (49 )     49  
    FDIC assessment       516       507       580       594     586       1,603       1,388  
    Servicing rights amortization – net       219       187       168       182     106       574       429  
    Loan expense       244       251       229       246     241       724       809  
    Consulting fees       251       198       186       192     179       635       640  
    Professional fees       453       527       445       331     358       1,425       1,099  
    Intangible asset amortization       445       444       445       446     445       1,334       1,334  
    Other general and administrative       1,128       1,495       1,333       1,532     1,319       3,956       4,841  
    Total noninterest expense       17,425       17,296       17,841       16,520     17,044       52,562       50,819  
    Income Before Income Taxes       8,109       7,159       6,778       6,875     5,898       22,046       21,479  
    Income Taxes       1,593       1,477       1,419       1,332     1,121       4,489       4,235  
    Net Income       6,516       5,682       5,359       5,543     4,777       17,557       17,244  
    Other Comprehensive Income (Loss) (Net of Tax):                              
    Net unrealized gain (loss) on available-for-sale securities     11,664       2,531       (1,995 )     13,261     (4,514 )     12,200       (2,480 )
    Reclassification adjustment for realized loss on sale of available-for-sale securities       –       –       –       –     –       –       891  
    Net unrealized gain (loss) on available-for-sale securities     11,664       2,531       (1,995 )     13,261     (4,514 )     12,200       (1,589 )
    Tax expense (benefit)       2,449       531       (418 )     2,784     (947 )     2,562       (333 )
    Other comprehensive income (loss)       9,215       2,000       (1,577 )     10,477     (3,567 )     9,638       (1,256 )
    Comprehensive Income     $ 15,731     $ 7,682     $ 3,782     $ 16,020   $ 1,210     $ 27,195     $ 15,988  
    Basic Earnings Per Share     $ 0.48     $ 0.42     $ 0.39     $ 0.41   $ 0.35     $ 1.28     $ 1.26  
    Diluted Earnings Per Share     $ 0.48     $ 0.42     $ 0.39     $ 0.41   $ 0.35     $ 1.28     $ 1.26  
    Dividends Declared     $ 0.22125     $ 0.22     $ 0.22     $ 0.22   $ 0.21     $ 0.66125     $ 0.63  
                                   
    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited) (in thousands of dollars, except per share data)
     
          September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023
          (Unaudited)   (Unaudited)   (Unaudited)       (Unaudited)
    Assets                    
    Cash and due from banks   $ 244,572     $ 191,785     $ 186,541     $ 140,917     $ 151,711  
    Federal funds sold     932       1,283       1,241       1,284       1,471  
      Total cash and cash equivalents     245,504       193,068       187,782       142,201       153,182  
                           
    Interest-bearing time deposits     2,727       3,221       2,735       2,740       2,989  
    Securities – available-for-sale     404,881       365,209       347,516       358,478       348,255  
    Other securities, at cost     15,028       14,721       14,744       17,138       16,995  
    Loans held for sale     1,706       1,628       2,410       1,576       1,039  
    Loans, net of allowance for credit losses of $25,484 9/30/24 and $25,024 12/31/23     2,512,852       2,534,468       2,516,687       2,556,167       2,504,329  
    Premises and equipment     33,779       34,507       35,007       35,790       31,723  
    Construction in progress     35       38       9       8       3,044  
    Goodwill     86,358       86,358       86,358       86,358       86,358  
    Loan servicing rights     5,644       5,504       5,555       5,648       5,687  
    Bank owned life insurance     34,624       34,359       34,123       33,907       33,691  
    Other assets     46,047       49,552       54,628       43,218       47,388  
                           
    Total Assets   $ 3,389,185     $ 3,322,633     $ 3,287,554     $ 3,283,229     $ 3,234,680  
                           
      Liabilities and Stockholders’ Equity                    
    Liabilities                    
    Deposits                    
      Noninterest-bearing   $ 481,444     $ 479,069     $ 510,731     $ 528,465     $ 505,358  
      Interest-bearing                    
      NOW accounts     865,617       821,145       829,236       816,790       778,133  
      Savings     661,565       673,284       635,430       599,191       591,344  
      Time     676,187       667,592       645,985       663,017       700,445  
      Total deposits     2,684,813       2,641,090       2,621,382       2,607,463       2,575,280  
                           
    Federal funds purchased and securities sold under agreements to repurchase     27,292       27,218       28,218       28,218       30,527  
    Federal Home Loan Bank (FHLB) advances     263,081       266,102       256,628       265,750       266,286  
    Subordinated notes, net of unamortized issuance costs     34,789       34,759       34,731       34,702       34,673  
    Dividend payable     2,998       2,975       2,975       2,974       2,838  
    Accrued expenses and other liabilities     40,832       27,825       25,930       27,579       21,892  
      Total liabilities     3,053,805       2,999,969       2,969,864       2,966,686       2,931,496  
                           
    Commitments and Contingencies                    
                           
    Stockholders’ Equity                    
    Common stock – No par value 20,000,000 shares authorized; issued                    
    14,564,425 shares 9/30/24 and 12/31/23; outstanding 13,702,593     135,193       135,829       135,482       135,515       135,171  
    shares 9/30/24 and 13,664,641 shares 12/31/23                    
    Treasury stock – 861,832 shares 9/30/24 and 899,784 shares 12/31/23     (10,904 )     (11,006 )     (10,851 )     (11,040 )     (11,008 )
    Retained earnings     230,465       226,430       223,648       221,080       218,510  
    Accumulated other comprehensive loss     (19,374 )     (28,589 )     (30,589 )     (29,012 )     (39,489 )
      Total stockholders’ equity     335,380       322,664       317,690       316,543       303,184  
                           
    Total Liabilities and Stockholders’ Equity   $ 3,389,185     $ 3,322,633     $ 3,287,554     $ 3,283,229     $ 3,234,680  
                           
    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    SELECT FINANCIAL DATA
                                               
        For the Three Months Ended   For the Nine Months Ended
    Selected financial data   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023   September 30, 2024   September 30, 2023
    Return on average assets     0.78 %     0.69 %     0.66 %     0.67 %     0.59 %     0.71 %     0.73 %
    Return on average equity     7.93 %     7.13 %     6.76 %     7.27 %     6.26 %     7.28 %     7.52 %
    Yield on earning assets     5.27 %     5.22 %     5.00 %     4.93 %     4.79 %     5.17 %     4.57 %
    Cost of interest bearing liabilities     3.21 %     3.18 %     3.06 %     3.02 %     2.82 %     3.16 %     2.35 %
    Net interest spread     2.06 %     2.04 %     1.94 %     1.91 %     1.97 %     2.01 %     2.22 %
    Net interest margin     2.71 %     2.71 %     2.60 %     2.57 %     2.59 %     2.68 %     2.77 %
    Efficiency     67.98 %     69.03 %     74.08 %     69.23 %     73.07 %     70.36 %     68.24 %
    Dividend payout ratio     45.99 %     52.35 %     55.52 %     54.23 %     60.07 %     50.99 %     49.50 %
    Tangible book value per share   $ 17.72     $ 16.79     $ 16.39     $ 16.29     $ 15.28              
    Tier 1 leverage ratio     8.04 %     8.02 %     8.40 %     8.20 %     8.02 %            
    Average shares outstanding     13,687,119       13,681,501       13,671,166       13,665,773       13,650,823       13,679,955       13,633,101  
                                               
    Loans   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023            
    (Dollar amounts in thousands)                                          
    Commercial real estate   $ 1,301,160     $ 1,303,598     $ 1,304,400     $ 1,337,766     $ 1,304,118              
    Agricultural real estate     220,328       222,558       227,455       223,791       225,672              
    Consumer real estate     524,055       525,902       525,178       521,895       512,973              
    Commercial and industrial     260,732       268,426       256,051       254,935       250,891              
    Agricultural     137,252       142,909       127,670       132,560       123,735              
    Consumer     67,394       70,918       74,819       79,591       83,024              
    Other     25,916       26,449       26,776       30,136       31,083              
    Less: Net deferred loan fees, costs and other (1)     1,499       (1,022 )     (982 )     517       (1,890 )            
    Total loans, net   $ 2,538,336     $ 2,559,738     $ 2,541,367     $ 2,581,191     $ 2,529,606              
                                               
                                               
    Asset quality data   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023            
    (Dollar amounts in thousands)                                          
    Nonaccrual loans   $ 2,898     $ 2,487     $ 19,391     $ 22,353     $ 22,447              
    90 day past due and accruing   $ –     $ –     $ –     $ –     $ –              
    Nonperforming loans   $ 2,898     $ 2,487     $ 19,391     $ 22,353     $ 22,447              
    Other real estate owned   $ –     $ –     $ –     $ –     $ –              
    Nonperforming assets   $ 2,898     $ 2,487     $ 19,391     $ 22,353     $ 22,447              
                                               
                                               
    Allowance for credit losses   $ 25,484     $ 25,270     $ 24,680     $ 25,024     $ 25,277              
    Allowance for unfunded     1,661       1,928       1,946       2,212       2,023              
    Total Allowance for Credit Losses   $ 27,145     $ 27,198     $ 26,626     $ 27,236     $ 27,300              
    Allowance for credit losses/total loans     1.01 %     0.99 %     0.97 %     0.97 %     1.00 %            
    Adjusted credit losses with accretable yield/total loans     1.10 %     1.10 %     1.11 %     1.13 %     1.18 %            
    Net charge-offs:                                          
    Quarter-to-date   $ 68     $ 15     $ 55     $ 531     $ 93              
    Year-to-date   $ 138     $ 70     $ 55     $ 551     $ 20              
    Net charge-offs to average loans                                          
    Quarter-to-date     0.00 %     0.00 %     0.00 %     0.02 %     0.00 %            
    Year-to-date     0.01 %     0.00 %     0.00 %     0.02 %     0.00 %            
    Nonperforming loans/total loans     0.11 %     0.10 %     0.76 %     0.87 %     0.89 %            
    Allowance for credit losses/nonperforming loans     879.37 %     1016.08 %     127.28 %     111.95 %     112.61 %            
    NPA coverage ratio     879.37 %     1016.08 %     127.28 %     111.95 %     112.61 %            
                                               
    (1) Includes carrying value adjustments of $3.0 million as of September 30, 2024, $612 thousand as of June 30, 2024, $969 thousand as of March 31, 2024 and $2.7 million as of December 31, 2023 related to interest rate swaps associated with fixed rate loans            
     
    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
    (in thousands of dollars, except percentages)
                             
        For the Three Months Ended   For the Three Months Ended
        September 30, 2024   September 30, 2023
    Interest Earning Assets:   Average Balance   Interest/Dividends   Annualized Yield/Rate   Average Balance   Interest/Dividends   Annualized Yield/Rate
    Loans   $ 2,551,899   $ 36,873   5.78 %   $ 2,536,885   $ 33,783   5.33 %
    Taxable investment securities     415,943     2,107   2.03 %     393,910     1,559   1.58 %
    Tax-exempt investment securities     19,661     81   2.09 %     23,986     84   1.77 %
    Fed funds sold & other     197,258     2,840   5.76 %     85,515     933   4.36 %
    Total Interest Earning Assets     3,184,761   $ 41,901   5.27 %     3,040,296   $ 36,359   4.79 %
                             
    Nonearning Assets     168,055             180,193        
                             
    Total Assets   $ 3,352,816           $ 3,220,489        
                             
    Interest Bearing Liabilities:                        
    Savings deposits   $ 1,538,387   $ 10,691   2.78 %   $ 1,367,168   $ 7,673   2.24 %
    Other time deposits     667,224     6,256   3.75 %     667,880     5,650   3.38 %
    Other borrowed money     264,539     2,804   4.24 %     266,467     2,741   4.11 %
    Fed funds purchased & securities sold under agreement to repurchase     27,481     277   4.03 %     34,128     349   4.09 %
    Subordinated notes     34,769     284   3.27 %     34,654     284   3.28 %
    Total Interest Bearing Liabilities   $ 2,532,400   $ 20,312   3.21 %   $ 2,370,297   $ 16,697   2.82 %
                             
    Noninterest Bearing Liabilities     491,851             544,801        
                             
    Stockholders’ Equity   $ 328,565           $ 305,391        
                             
    Net Interest Income and Interest Rate Spread       $ 21,589   2.06 %       $ 19,662   1.97 %
                             
    Net Interest Margin           2.71 %           2.59 %
                             
    Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts    
                             
                             
        For the Nine Months Ended   For the Nine Months Ended
        September 30, 2024   September 30, 2023
    Interest Earning Assets:   Average Balance   Interest/Dividends   Annualized Yield/Rate   Average Balance   Interest/Dividends   Annualized Yield/Rate
    Loans   $ 2,561,774   $ 108,666   5.66 %   $ 2,470,770   $ 94,851   5.12 %
    Taxable investment securities     397,466     5,575   1.87 %     396,917     4,544   1.53 %
    Tax-exempt investment securities     20,684     249   2.03 %     24,865     277   1.88 %
    Fed funds sold & other     165,227     7,231   5.84 %     67,869     1,866   3.67 %
    Total Interest Earning Assets     3,145,151   $ 121,721   5.17 %     2,960,421   $ 101,538   4.57 %
                             
    Nonearning Assets     161,113             176,568        
                             
    Total Assets   $ 3,306,264           $ 3,136,989        
                             
    Interest Bearing Liabilities:                        
    Savings deposits   $ 1,487,809   $ 30,291   2.71 %   $ 1,373,110   $ 18,854   1.83 %
    Other time deposits     662,129     18,423   3.71 %     620,071     13,054   2.81 %
    Other borrowed money     264,310     8,235   4.15 %     204,927     6,134   3.99 %
    Fed funds purchased & securities sold under agreement to repurchase     27,887     837   4.00 %     37,649     1,181   4.18 %
    Subordinated notes     34,741     853   3.27 %     34,625     853   3.28 %
    Total Interest Bearing Liabilities   $ 2,476,876   $ 58,639   3.16 %   $ 2,270,382   $ 40,076   2.35 %
                             
    Noninterest Bearing Liabilities     507,843             561,001        
                             
    Stockholders’ Equity   $ 321,545           $ 305,606        
                             
    Net Interest Income and Interest Rate Spread       $ 63,082   2.01 %       $ 61,462   2.22 %
                             
    Net Interest Margin           2.68 %           2.77 %
                             
    Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts    
                             
    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
    (in thousands of dollars, except percentages)    		  
                                         
      For the Three Months Ended September 30, 2024   For the Three Months Ended September 30, 2023  
      As Reported   Excluding Acc/Amort Difference   As Reported   Excluding Acc/Amort Difference  
      $ Yield   $ Yield   $ Yield   $ Yield   $ Yield   $ Yield  
    Interest Earning Assets:                                    
    Loans $ 36,873 5.78 %   $ 36,149 5.67 %   $ 724   0.11 %   $ 33,783 5.33 %   $ 32,631 5.15 %   $ 1,152   0.18 %  
    Taxable investment securities   2,107 2.03 %     2,107 2.03 %     –   0.00 %     1,559 1.58 %     1,559 1.58 %     –   0.00 %  
    Tax-exempt investment securities   81 2.09 %     81 2.09 %     –   0.00 %     84 1.77 %     84 1.77 %     –   0.00 %  
    Fed funds sold & other   2,840 5.76 %     2,840 5.76 %     –   0.00 %     933 4.36 %     933 4.36 %     –   0.00 %  
    Total Interest Earning Assets   41,901 5.27 %     41,177 5.17 %     724   0.10 %     36,359 4.79 %     35,207 4.64 %     1,152   0.15 %  
                                         
    Interest Bearing Liabilities:                                    
    Savings deposits $ 10,691 2.78 %   $ 10,691 2.78 %   $ –   0.00 %   $ 7,673 2.24 %   $ 7,673 2.24 %   $ –   0.00 %  
    Other time deposits   6,256 3.75 %     6,256 3.75 %     –   0.00 %     5,650 3.38 %     5,500 3.29 %     150   0.09 %  
    Other borrowed money   2,804 4.24 %     2,800 4.23 %     4   0.01 %     2,741 4.11 %     2,759 4.14 %     (18 ) -0.03 %  
    Federal funds purchased and securities sold under agreement to repurchase   277 4.03 %     277 4.03 %     –   0.00 %     349 4.09 %     349 4.09 %     –   0.00 %  
    Subordinated notes   284 3.27 %     284 3.27 %     –   0.00 %     284 3.28 %     284 3.28 %     –   0.00 %  
    Total Interest Bearing Liabilities   20,312 3.21 %     20,308 3.21 %     4   0.00 %     16,697 2.82 %     16,565 2.80 %     132   0.02 %  
                                         
    Interest/Dividend income/yield   41,901 5.27 %     41,177 5.17 %     724   0.10 %     36,359 4.79 %     35,207 4.64 %     1,152   0.15 %  
    Interest Expense / yield   20,312 3.21 %     20,308 3.21 %     4   0.00 %     16,697 2.82 %     16,565 2.80 %     132   0.02 %  
    Net Interest Spread   21,589 2.06 %     20,869 1.96 %     720   0.10 %     19,662 1.97 %     18,642 1.84 %     1,020   0.13 %  
    Net Interest Margin   2.71 %     2.62 %     0.09 %     2.59 %     2.46 %     0.13 %  
                                         
                                         
      For the Nine Months Ended September 30, 2024   For the Nine Months Ended September 30, 2023  
      As Reported   Excluding Acc/Amort Difference   As Reported   Excluding Acc/Amort Difference  
      $ Yield   $ Yield   $ Yield   $ Yield   $ Yield   $ Yield  
    Interest Earning Assets:                                    
    Loans $ 108,666 5.66 %   $ 106,588 5.55 %   $ 2,078   0.11 %   $ 94,851 5.12 %   $ 92,364 4.99 %   $ 2,487   0.13 %  
    Taxable investment securities   5,575 1.87 %     5,575 1.87 %     –   0.00 %     4,544 1.53 %     4,544 1.53 %     –   0.00 %  
    Tax-exempt investment securities   249 2.03 %     249 2.03 %     –   0.00 %     277 1.88 %     277 1.88 %     –   0.00 %  
    Fed funds sold & other   7,231 5.84 %     7,231 5.84 %     –   0.00 %     1,866 3.67 %     1,866 3.67 %     –   0.00 %  
     Total Interest Earning Assets   121,721 5.17 %     119,643 5.08 %     2,078   0.09 %     101,538 4.57 %     99,051 4.47 %     2,487   0.10 %  
                                         
    Interest Bearing Liabilities:                                    
    Savings deposits $ 30,291 2.71 %   $ 30,291 2.71 %   $ –   0.00 %   $ 18,854 1.83 %   $ 18,854 1.83 %   $ –   0.00 %  
    Other time deposits   18,423 3.71 %     18,423 3.71 %     –   0.00 %     13,054 2.81 %     13,458 2.89 %     (404 ) -0.08 %  
    Other borrowed money   8,235 4.15 %     8,254 4.16 %     (19 ) -0.01 %     6,134 3.99 %     6,187 4.03 %     (53 ) -0.04 %  
    Federal funds purchased and securities sold under agreement to repurchase   837 4.00 %     837 4.00 %     –   0.00 %     1,181 4.18 %     1,181 4.18 %     –   0.00 %  
    Subordinated notes   853 3.27 %     853 3.27 %     –   0.00 %     853 3.28 %     853 3.28 %     –   0.00 %  
    Total Interest Bearing Liabilities   58,639 3.16 %     58,658 3.16 %     (19 ) 0.00 %     40,076 2.35 %     40,533 2.38 %     (457 ) -0.03 %  
                                         
    Interest/Dividend income/yield   121,721 5.17 %     119,643 5.08 %     2,078   0.09 %     101,538 4.57 %     99,051 4.47 %     2,487   0.10 %  
    Interest Expense / yield   58,639 3.16 %     58,658 3.16 %     (19 ) 0.00 %     40,076 2.35 %     40,533 2.38 %     (457 ) -0.03 %  
    Net Interest Spread   63,082 2.01 %     60,985 1.92 %     2,097   0.09 %     61,462 2.22 %     58,518 2.09 %     2,944   0.13 %  
    Net Interest Margin   2.68 %     2.59 %     0.09 %     2.77 %     2.64 %     0.13 %  
                                         
    Company Contact: Investor and Media Contact:
    Lars B. Eller
    President and Chief Executive Officer Farmers & Merchants Bancorp, Inc.
    (419) 446-2501
    leller@fm.bank    		 Andrew M. Berger
    Managing Director
    SM Berger & Company, Inc.
    (216) 464-6400
    andrew@smberger.com

    The MIL Network –

  • MIL-OSI USA: October 29th, 2024 N.M. Delegation Welcomes Over $4 Million From the Infrastructure Law to Enhance Safety, Reduce Delays at Railway Crossings, and Grow Local Economies in Clovis and San Juan County

    US Senate News:

    Source: United States Senator for New Mexico Martin Heinrich

    ALBUQUERQUE, N.M. – U.S. Senators Martin Heinrich (D-N.M.) and Ben Ray Luján (D-N.M.), and U.S. Representatives Teresa Leger Fernández (D-N.M.), Melanie Stansbury (D-N.M.), and Gabe Vasquez (D-N.M.) welcomed a combined $4,570,920 for two projects in New Mexico from the U.S. Department of Transportation to strengthen the nation’s supply chain, reduce costs, and grow New Mexico’s economy. 

    $4,000,000 will help San Juan County and the Navajo Nation complete the planning for a proposed freight rail line connecting Farmington and Gallup. 

    $570,920 will help the City of Clovis enhance safety and reduce traffic delays at two railway crossings.

    “Thanks to our Infrastructure Law, we’re delivering the funds needed to kick-start planning for a freight rail line from Farmington to Gallup and improve railway crossings in Clovis. Combined, these investments will strengthen our nation’s supply chain, grow local economies, lower transportation costs, create high-quality jobs New Mexicans can build their families around, and improve safety for our communities,” said Heinrich. “I’m pleased to welcome these federal investments, and I remain committed to securing more investments to connect rural communities to the abundant opportunities ahead.”

    “Across our state, New Mexicans rely daily on our railways for travel and to keep our economy running,” said Luján. “Thanks to the Bipartisan Infrastructure Law, this $4.5+ million in federal funding will deliver much-needed railway safety enhancements in Clovis and help construct a new rail line within the Navajo Nation to expand regional rail service in Northwestern New Mexico. I’m proud to welcome these two grants that will both boost railway service and drive economic development for Clovis, the Navajo Nation, and their surrounding communities. I will continue to fight to bring federal dollars home to New Mexico to improve the safety, efficiency, and reliability of passenger and freight rail.”

    “Every time I go to the Four Corners, local leaders emphasize the importance of connecting the region with rail. The Four Corners area is a major economic center of our state, and the funding we’re announcing today is the beginning of our work to make sure our rail infrastructure is ready to meet that potential across San Juan and McKinley Counties,” said Leger Fernández. “I am happy that this funding also includes improvements to safety and efficiency of freight in Clovis. With the support of the CRISI program, we can begin the critical work needed to build stronger connections and drive growth in rural New Mexico.”

    “I am thrilled about the recent allocation of two significant federal grants from the Federal Railroad Administration’s CRISI program, which will greatly enhance rail safety and connectivity in New Mexico,” said Stansbury. “These two grants reflect our commitment to investing in infrastructure prioritizing safety and economic growth. I am grateful for the support from the Federal Railroad Administration and look forward to seeing these projects come to fruition as we work together to build a safer New Mexico!”

    “Federal investments like this bring vital safety and economic benefits to communities across New Mexico. With this funding, we’re improving railway safety, cutting down delays, and connecting New Mexicans to opportunities that drive economic growth and quality jobs,” said Vasquez. “Thanks to the Bipartisan Infrastructure Law, we are building a stronger, safer transportation network. I’m proud to welcome this funding to bring more jobs and opportunities to our rural communities.”

    “The award of grant funding takes a prospective freight rail line study further than any study in the past and is further proof of the importance of collaboration between tribal, local, state, and federal partners to open doors to economic opportunities. We are appreciative of assistance from New Mexico’s federal delegation and excited for future economic growth opportunities in San Juan County and the Four Corners region,” said John T. Beckstead, San Juan County Commission Chairman.

    “The Federal CRISI Grant brings San Juan County and the City of Farmington one step closer to having competitive transportation and economic development. This is an important step in growing our regional economy,” said Tim Gibbs, Four Corner Economic Development CEO.

    The grants are awarded through the U.S. Department of Transportation Federal Railroad Administration’s Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program, which provides funding for projects that improve the safety, efficiency, and reliability of intercity passenger and freight rail. The CRISI Program received significant, additional investments from the Infrastructure Law – legislation passed by Democrats in the N.M. Congressional Delegation. 

    The N.M. Delegation sent a letter of support to the U.S. Department of Transportation supporting the grant for San Juan County that is being announced today. This grant will prepare the Four Corners Rail Project for final design proposals and planning.

    In May 2020, Heinrich and Luján wrote a letter of support for San Juan County’s application for a Better Utilizing Investments to Leverage Development (BUILD) Grant, which applicants of the CRISI Program are required to be approved for.  

    Members of the N.M. Delegation sent a letter of support to the U.S. Department of Transportation urging the support of the grant for the City of Clovis that is being announced today. This grant will enhance safety and reduce traffic delays at two railway crossings including modifications to the Norris Street railroad crossing and construction of a new grade-separated crossing at MLK Jr. Boulevard.

    Below is a breakdown of the U.S. Department of Transportation Federal Railroad Administration funding:  

    Project Name

    Recipient

    Award Amount

    Project Description

    Clovis, N.M. Corridor Improvement Project

    City of Clovis

    $ 570,920

    The proposed project was selected for Project Development and includes activities for one grade crossing separation and improvements to a second at-grade crossing along the BNSF Railway line in Clovis, New Mexico. The project aligns with the selection criteria by enhancing safety and improving system and service performance as the project will reduce blocked crossings. The City of Clovis and BNSF Railway will contribute the 53 percent non-Federal match. This project qualifies for the statutory set-aside for projects in Rural Areas.

    Four Corners Freight Rail Project

    San Juan County

    $ 4,000,000

    The proposed project was selected for Project Development and includes activities to develop a new rail line to connect the Farmington, New Mexico Area to the BNSF Railway corridor near Gallup across San Juan County and McKinley County, New Mexico. The proposed project is a partnership between San Juan County, the Navajo Nation, and the New Mexico Department of Transportation, and most of the project is located within the Navajo Nation. The project aligns with the selection criteria by enhancing resilience and improving system and service performance as the project will provide a viable freight transportation modal alternative to highway trucking, opportunities to simplify the supply chain, and enable new, rail-dependent economic development opportunities thereby imparting benefits to the Navajo Nation and surrounding communities. San Juan County will contribute the 20 percent non-Federal match. This project qualifies for the statutory set-aside for projects in Rural Areas.

    For more information from San Juan County on the proposed Four Corners Rail Project, please click here. 

    MIL OSI USA News –

  • MIL-OSI: Capgemini Q3 2024 revenues

    Source: GlobeNewswire (MIL-OSI)

    Media relations:
    Victoire Grux
    Tel.: +33 6 04 52 16 55
    victoire.grux@capgemini.com

    Investor relations:
    Vincent Biraud
    Tel.: +33 1 47 54 50 87
    vincent.biraud@capgemini.com

    Capgemini Q3 2024 revenues

    • Q3 2024 revenues of €5,377 million, down -1.6% at constant exchange rates*
    • 9M 2024 revenues of €16,515 million, down -2.3% at constant exchange rates
    • FY 2024 constant currency revenue growth target revised to -2.0% to -2.4% and operating margin target narrowed to 13.3% to 13.4%
    • FY 2024 organic free cash-flow target confirmed at around €1.9 billion

    Paris, October 30, 2024 – The Capgemini Group reported consolidated revenues of €5,377 million in Q3 2024, down -1.9% year-on-year on a reported basis, and down -1.6% at constant exchange rates*.

    Aiman Ezzat, Chief Executive Officer of the Capgemini Group, said: “Our growth improved marginally in Q3 compared to Q2, despite stronger headwinds than anticipated in some sectors, primarily in Manufacturing. However, we continue to see recovery in Financial Services and gradually lesser headwinds from Telco and Tech.

    In a market that remains soft overall, we expect to deliver a similar growth in Q4 while demonstrating the resilience of our operating margin and organic free cash-flow. Client demand continues to be driven by operational efficiencies and cost reduction and we seize their growing appetite for AI and Gen AI services.

    Our positioning as a business and technology transformation partner, the relevance of our offerings and the quality of our talent are driving our solid book-to-bill ratio and growing pipeline of strategic deals. We are also launching a set of targeted actions to simplify our operations to make the Group more agile with a stronger emphasis on growth.

    Based on Q4 perspectives, we now expect a full-year constant currency growth rate of -2.0% to -2.4% and narrow the operating margin target to 13.3% to 13.4%, while the organic free cash-flow target of around €1.9 billion is confirmed.”

      (in millions of euros)   Change
    Revenues 2023 2024   At current
    exchange rates    		 At constant
    exchange rates*
    Q3 5,480 5,377   -1.9% -1.6%
    9 months 16,906 16,515   -2.3% -2.3%

    After bottoming out in Q1 2024, Capgemini activity trends improved again in Q3, but only marginally. The Group generated revenues of €5,377 million in Q3 2024, down -1.9% year-on-year on a reported basis and -1.6% at constant exchange rates*. On an organic basis (i.e., restated for changes in Group scope and exchange rates), revenues contracted by -2.1%. For the first nine months of the year, growth stands at -2.3%, both on a reported basis and at constant exchange rates.

    Clients remained focused on driving efficiencies through large digital transformation programs, at the expense of discretionary deals. This is fueling strong demand for Capgemini’s Cloud and Data & AI/Gen AI services, as well as for digital core modernization and intelligent supply chain services that are key focus themes in the current environment.

    Bookings totaled €5,222 million in Q3 2024, down -0.8% at constant exchange rates, leading to a book-to-bill ratio of 0.97 for the period. Generative AI bookings amounted to around €600 million over the last 9 months which represent around 3.5% of Group bookings.

    OPERATIONS BY REGION

    In the Group’s largest regions, Q3 growth rates remained similar to Q2. Overall, this reflects the continued recovery in Financial Services across all regions combined with, as anticipated, a slowdown in the Manufacturing sector.

    At constant exchange rates, revenues in the North America region (28% of Group revenues in Q3 2024) decreased by -3.9% year-on-year. Financial Services further improved, yet still posting a year-on-year decline in Q3. Overall, the revenue contraction was driven by the Consumer Goods & Retail, Energy & Utilities, and Public sectors.

    Revenues in the United Kingdom and Ireland region (13% of Group revenues) returned to positive growth at +0.4%. The continued dynamism of the Energy & Utilities sector and a resilient Manufacturing sector outweighed the contraction in the Consumer Goods & Retail sector.

    Revenues in France (19% of Group revenues) decreased by -2.5%. Growth in the Public sector, along with positive momentum in TMT (Telecoms, Media & Technology), were more than offset by the slowdown of the Manufacturing sector.

    Revenues in the Rest of Europe region (31% of Group revenues) increased by +0.6%. Solid growth in Financial Services, as well as continued dynamism in Energy & Utilities and Public sector, made up for the contraction in the Manufacturing and TMT sectors.

    Lastly, revenues in the Asia-Pacific and Latin America region (9% of Group revenues) were down -2.2%. In the Asia-Pacific region, strong momentum in the Public sector and improving Financial Services were more than offset by visible weakness in the Consumer Goods & Retail and Manufacturing sectors. Growth acceleration in Latin America was mostly driven by the Consumer Goods & Retail sector.

    OPERATIONS BY BUSINESS        

    In Q3 2024, at constant exchange rates, the growth in Strategy & Transformation services (9% of the Group’s total revenues* in Q3 2024) further strengthened to +6.5% year-on-year. This reflects continued client demand for strategic consulting on their transition towards a more digital and sustainable model as well as their unwavering interest in the broad AI and Gen AI opportunities.

    In Applications & Technology services (63% of the Group’s total revenues and Capgemini’s core business), growth rates improved by 170 basis points compared to Q2, to -1.2% year-on-year in Q3.

    Lastly, Operations & Engineering total revenues (28% of the Group’s total revenues) decreased by -3.4% primarily driven by the contraction in Infrastructure Services and, to a lesser extent, Engineering services.

    HEADCOUNT

    The Group’s total headcount stands at 338,900 as at September 30, 2024, down -1.1% year-on-year and up +0.6% since the end of June. The offshore workforce stands at 194,400 employees or 57% of the total headcount.

    OUTLOOK

    The Group’s financial targets for 2024 are updated as follows:

    • Revenue growth of -2.0% to -2.4% at constant currency (was -0.5% to -1.5%);
    • Operating margin of 13.3% to 13.4% (was 13.3% to 13.6%);
    • Organic free cash-flow of around €1.9 billion (unchanged).

    The inorganic contribution to growth should be 40 basis points.

    CONFERENCE CALL

    Aiman Ezzat, Chief Executive Officer, accompanied by Nive Bhagat, Chief Financial Officer, and Olivier Sevillia, Chief Operating Officer, will present this press release during a conference call in English to be held today at 8.00 a.m. Paris time (CET). You can follow this conference call live via webcast at the following link. A replay will also be available for a period of one year.

    All documents relating to this publication will be posted on the Capgemini investor website at https://investors.capgemini.com/en/.

    PROVISIONAL CALENDAR

    February 18, 2025        FY 2024 results
    April 29, 2025        Q1 2025 revenues
    May 7, 2025        Shareholders’ Meeting
    July 30, 2025        H1 2025 results

    DISCLAIMER

    This press release may contain forward-looking statements. Such statements may include projections, estimates, assumptions, statements regarding plans, objectives, intentions and/or expectations with respect to future financial results, events, operations and services and product development, as well as statements, regarding future performance or events. Forward-looking statements are generally identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates”, “plans”, “projects”, “may”, “would”, “should” or the negatives of these terms and similar expressions. Although Capgemini’s management currently believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking statements are subject to various risks and uncertainties (including, without limitation, risks identified in Capgemini’s Universal Registration Document available on Capgemini’s website), because they relate to future events and depend on future circumstances that may or may not occur and may be different from those anticipated, many of which are difficult to predict and generally beyond the control of Capgemini. Actual results and developments may differ materially from those expressed in, implied by or projected by forward-looking statements. Forward-looking statements are not intended to and do not give any assurances or comfort as to future events or results. Other than as required by applicable law, Capgemini does not undertake any obligation to update or revise any forward-looking statement.

    This press release does not contain or constitute an offer of securities for sale or an invitation or inducement to invest in securities in France, the United States or any other jurisdiction.

    ABOUT CAPGEMINI

    Capgemini is a global business and technology transformation partner, helping organizations to accelerate their dual transition to a digital and sustainable world, while creating tangible impact for enterprises and society. It is a responsible and diverse group of 340,000 team members in more than 50 countries. With its strong over 55-year heritage, Capgemini is trusted by its clients to unlock the value of technology to address the entire breadth of their business needs. It delivers end-to-end services and solutions leveraging strengths from strategy and design to engineering, all fueled by its market leading capabilities in AI, cloud and data, combined with its deep industry expertise and partner ecosystem. The Group reported 2023 global revenues of €22.5 billion.

    Get the Future You Want | www.capgemini.com

    * *

    *

    APPENDIX3F1

    BUSINESS CLASSIFICATION

    • Strategy & Transformation includes all strategy, innovation and transformation consulting services.
    • Applications & Technology brings together “Application Services” and related activities and notably local technology services.
    • Operations & Engineering encompasses all other Group businesses. These comprise Business Services (including Business Process Outsourcing and transaction services), all Infrastructure and Cloud services, and R&D and Engineering services.

    DEFINITIONS

    Organic growth or like-for-like growth in revenues is the growth rate calculated at constant Group scope and exchange rates. The Group scope and exchange rates used are those for the reported period. Exchange rates for the reported period are also used to calculate growth at constant exchange rates.

    Reconciliation of growth rates Q1 2024 Q2 2024 Q3 2024 9M 2024
    Organic growth -3.6% -2.3% -2.1% -2.7%
    Changes in Group scope +0.3 pts +0.4 pts +0.5 pts +0.4 pts
    Growth at constant exchange rates -3.3% -1.9% -1.6% -2.3%
    Exchange rate fluctuations -0.2 pts +0.4 pts -0.3 pts -0.0 pts
    Reported growth -3.5% -1.5% -1.9% -2.3%

    When determining activity trends by business and in accordance with internal operating performance measures, growth at constant exchange rates is calculated based on total revenues, i.e., before elimination of inter-business billing. The Group considers this to be more representative of activity levels by business. As its businesses change, an increasing number of contracts require a range of business expertise for delivery, leading to a rise in inter-business flows.

    Operating margin is one of the Group’s key performance indicators. It is defined as the difference between revenues and operating costs. It is calculated before “Other operating income and expense” which include amortization of intangible assets recognized in business combinations, expenses relative to share-based compensation (including social security contributions and employer contributions) and employee share ownership plan, and non-recurring revenues and expenses, notably impairment of goodwill, negative goodwill, capital gains or losses on disposals of consolidated companies or businesses, restructuring costs incurred under a detailed formal plan approved by the Group’s management, the cost of acquiring and integrating companies acquired by the Group, including earn-outs comprising conditions of presence, and the effects of curtailments, settlements and transfers of defined benefit pension plans.

    Normalized net profit is equal to profit for the year (Group share) adjusted for the impact of items recognized in “Other operating income and expense”, net of tax calculated using the effective tax rate. Normalized earnings per share is computed like basic earnings per share, i.e., excluding dilution.

    Organic free cash flow is equal to cash flow from operations less acquisitions of property, plant, equipment and intangible assets (net of disposals) and repayments of lease liabilities, adjusted for cash out relating to the net interest cost.

    Net debt (or net cash) comprises (i) cash and cash equivalents, as presented in the Consolidated Statement of Cash Flows (consisting of short-term investments and cash at bank) less bank overdrafts, and also including (ii) cash management assets (assets presented separately in the Consolidated Statement of Financial Position due to their characteristics), less (iii) short- and long-term borrowings. Account is also taken of (iv) the impact of hedging instruments when these relate to borrowings, intercompany loans, and own shares.

    REVENUES BY REGION

      Revenues
    (in millions of euros)    		   Year-on-year growth
      Q3 2023 Q3 2024   Reported At constant exchange rates
    North America 1,608 1,530   -4.9% -3.9%
    United Kingdom and Ireland 676 690   +2.1% +0.4%
    France 1,045 1,019   -2.5% -2.5%
    Rest of Europe 1,633 1,646   +0.8% +0.6%
    Asia-Pacific and Latin America 518 492   -5.0% -2.2%
    TOTAL 5,480 5,377   -1.9% -1.6%
      Revenues
    (in millions of euros)    		   Year-on-year growth
      9 months
    2023    		 9 months
    2024    		   Reported At constant exchange rates
    North America 4,896 4,638   -5.3% -4.9%
    United Kingdom and Ireland 2,062 2,070   +0.4% -1.8%
    France 3,353 3,264   -2.6% -2.6%
    Rest of Europe 5,105 5,116   +0.2% +0.1%
    Asia-Pacific and Latin America 1,490 1,427   -4.2% -1.9%
    TOTAL 16,906 16,515   -2.3% -2.3%

    REVENUES BY BUSINESS

      Total revenues*
    (% of Group revenues)    		 Year-on-year growth at constant exchange rates in total revenues of the business
      Q3 2024
    Strategy & Transformation 9% +6.5%
    Applications & Technology 63% -1.2%
    Operations & Engineering 28% -3.4%
      Total revenues*
    (% of Group revenues)    		 Year-on-year growth at constant exchange rates in total revenues of the business
      9 months
    2024
    Strategy & Transformation 9% +3.9%
    Applications & Technology 62% -2.7%
    Operations & Engineering 29% -2.3%

    1 Note that in the appendix, certain totals may not equal the sum of amounts due to rounding adjustments.

    Attachments

    The MIL Network –

  • MIL-OSI: SUBC – Ex. Dividend NOK 3.00 on 30 October 2024

    Source: GlobeNewswire (MIL-OSI)

    Luxembourg – 30 October 2024

    • Issuer: Subsea 7 S.A.
    • Ex-date: 30 October 2024
    • Dividend amount: NOK 3.00
    • Announced currency: Norwegian Krone

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

    This information is published in accordance with the requirements of the Continuing Obligations.

    This stock exchange release was published by Katherine Tonks, Investor Relations, Subsea7, on 30 October 2024 at 07:00 CET.

    The MIL Network –

  • MIL-OSI: Amundi: Third quarter and nine-month 2024 results

    Source: GlobeNewswire (MIL-OSI)

    Amundi: Third quarter and nine-month 2024 results

    Net income1,2up +16% Q3/Q3 and record assets under management at €2.2 trillion

    Strong growth in earnings and revenues   Q3 – adjusted net income1,2 at €337m, fast-growing: +16.1% Q3/Q3

    • Thanks to revenue growth (+10.5%) and positive jaws effect
    • Q3/Q3 cost/income ratio improvement at 52.9%3

    9 months – adjusted net income1,2 at €1,005m, up +10.4% 9M/9M

    Earnings per share2: €1.65 for Q3, €4.91 for 9M
         
    Record AuM
    & dynamic MLT inflows5    		   Record assets under management3: €2,192bn at 30 September 2024, up +11% year-on-year

    Q3 net inflows3 of +€2.9bn, or +€14.5bn excluding the exit from a large, low-income institutional mandate4

    • +€9.1bn in MLT assets4,5,6
    • Solid commercial momentum of Asian JVs: +€5.3bn
         
    Continued strategic progress   ETFs6: +€8bn in Q3 net inflows, now more than €250bn in assets under management
    Third-party distribution: +€7bn Q3 net inflows, with contribution from all regions and asset classes

    Asia: +€7bn in Q3 net inflows, from JVs and direct distribution in Japan, Singapore, Hong Kong, Taiwan and China

    Technology: revenues +42% Q3/Q3

    Victory Capital: approval7 of the partnership with Amundi secured at EGM, transaction expected to close in Q1 2025

    Paris, 30 October 2024

    Amundi’s Board of Directors met on 29 October 2024 under the chairmanship of Philippe Brassac, and reviewed the financial statements for the third quarter and the first 9 months of 2024.

    Valérie Baudson, Chief Executive Officer, said:
    « Amundi’s results in the third quarter of 2024 demonstrate our ongoing strategic progress and continued growth potential. Our Q3 net profit1,2of €337m, increased by +16% compared to the same period in 2023 and exceeded one billion euros over 9 months. Assets under management reached a record level of €2.2 trillion.

    We have been able to support our clients whatever their profile and needs, which has resulted in a high level of net inflows in our strategic development areas, namely Asia, Third-Party Distributors, and ETFs.

    By putting clients at the heart of our strategy and by continuing to develop the areas of expertise that primarily seek to meet their needs, we are ideally positioned to seize growth opportunities in the savings industry. »

    * * * * *

    Further progress in achieving our 2025 Ambitions plan

    Q3 2024 saw key areas of focus under the “2025 Strategic Ambitions” plan contribute to activity and earnings growth.

    • ETFs exceeded €250bn in assets under management at the end of September, up +31% year-on-year, thanks in particular to very dynamic net inflows reaching +€17bn over 9 months, including +€8bn in Q3. This places Amundi in second place in the European market in terms of net inflows this quarter8. these inflows are well diversified across equity and fixed income products, with a high share of products classified as responsible investment9 in net inflows (+€3bn, or 34% market share in flows in this market segment). Amundi has had many commercial successes this quarter: for example, the Amundi ETF Stoxx Europe 600 is the best-selling (+€0.85bn) European equity ETFs in Q3, the Amundi ETF Euro Government Tilted Green Bond, launched last year, saw its assets under management exceed €3bn after gathering +€1.1bn since the beginning of the year, and the Amundi ETF Prime ACWI exceeded €1bn in assets under management 8 months after its launch.
    • Third-Party Distribution reached €377bn in assets under management at the end of September, up +24% year-on-year, with net inflows +€19bn for 9 months 2024, and +€7bn in Q3, thanks to contributions from all regions and asset classes, from ETFs, treasury products and active management;
    • Asia assets under management increased by +17% year-on-year to €458bn; net inflows for 9 months 2024 stood at +€30bn with a significant contribution from Amundi’s Indian JV SBI MF, which now has €278bn in assets, up +19% year-on-year (+€18bn in net inflows); €103bn of total Asian assets under management come from direct distribution excluding JVs (+20% year-on-year), with net inflows for 9 months 2024 standing at +€3bn in Japan, +€2.4bn Singapore, +€1.4bn Hong Kong and also +€1.7bn in China outside the two JVs, mainly with institutional clients;
    • The Technology & Services offering is also experiencing strong growth, with technology revenues of €54m over 9 months, up +28% compared to the same period in 2023, and even +42% Q3/Q3; the Fund Channel fund distribution platform exceeded €490bn in assets at the end of September 2024; during the quarter it signed a distribution agreement with ING Germany and integrated the fintech AirFund into its ecosystem to digitise access to private markets; Fund Channel was also ranked “Best Distribution Platform” for the third consecutive year by the consulting and research firm Platforum;
    • In fixed income expertise, Amundi now manages €1,160bn in assets10 across a wide range of solutions, from treasury products to target maturity funds, offering attractive returns and capital protection; fixed income net inflows stood at +€46bn10 over 9 months and +€14bn10 in Q3 thanks to sustained activity in active bond strategies (+€11bn excluding JV) and ETFs (+€2.5bn);
    • The partnership project with Victory Capital reached an important milestone with shareholder approval of resolutions7 necessary to finalise the transactions, expected in Q1 2025. As a reminder, this partnership aims at creating a larger US investment platform, via the contribution of Amundi US to Victory Capital in return for Amundi taking a 26%-stake of the combined entity as well as 15-year distribution agreements, to serve the clients of both companies; Amundi would thus have a greater number of US and global management expertise to offer its clients. The transaction, which involves no disbursement of cash, is expected to bring a low single-digit accretion for Amundi shareholders, with an increase in the contribution of our US operations to the adjusted net income and EPS.

    Activity

    Market environment

    In the third quarter of 2024, equity markets11 increased by +1.1% in average compared to the previous quarter and by +15.6% compared to Q3 2023. The European bond markets12 also rose, reflecting the shift in monetary policy and the ECB’s decision to cut rates. Year-on-year, our benchmark index12 increased by +6.3% in Q3 2024 compared to Q3 2023 and by +2.1% compared to Q2 2024. The market effect is therefore positive on the evolution of Amundi’s revenues and net income.

    When compared to the 2021 averages used as a reference for the 2025 Ambitions plan, the market effect is only slightly positive.

    The European asset management market continues its gradual recovery. Open-ended fund volumes13, at +€213bn in the third quarter, continued to be driven by treasury products (+€93bn) and passive management (+€75bn). Nevertheless, the third quarter recorded positive flows in medium- to long-term active management for the second quarter in a row (+€45bn), driven by fixed income strategies (+€69bn).

    High level of activity over the quarter in MLT assets5, assets under management at a record level of €2.2tn

    Activity this quarter continues to be marked, like the rest of the European market, by risk aversion among retail clients. However, Amundi performed well, driven in particular by ETFs, bond solutions, third-party distributors and Asia. Excluding the exceptional exit from a low-income insurance mandate4, net inflows were positive in all major medium- to long-term areas of expertise (passive, active, structured products and real assets), in all client segments (Retail, Institutional and JV), and in all major markets (France, Italy, Germany, Asia and the United States).

    Amundi’s assets under management at 30 September 2024 increased by +11.1% year-on-year (compared to the end of September 2023) and by +1.6% quarter-on-quarter (compared to the end of June 2024), to €2,192bn, an all-time high.

    In the third quarter of 2024, the market and currency effect amounted to +€32.5bn (+€175.9bn over a year) and Amundi generated positive net inflows of +€2.9bn. As announced at the time of the second quarter results publication, this amount includes the exit of a low-income multi-asset mandate4 with a European insurer, of €11.6bn.

    Adjusted for this exit4, net inflows for the quarter were +€14.4bn of which +€9.1bn in MLT Assets5. It was positive in active management (+€4.3bn) and ETFs (+€7.8bn), partially offset by outflows from index strategies. Structured products and real and alternative assets also recorded positive net inflows (+€0.8bn), while treasury products were flat (+€0.1bn).

    Finally, the JVs14continued their solid commercial momentum, with net inflows of +€5.3bn, reflecting a positive contribution from India (SBI MF, +€6.0bn) and South Korea (NH-Amundi, +€0.4bn), partially offset this quarter by slight net outflows in China (ABC-CA) despite continued open-ended net inflows.

    By Client Segment, Retail recorded net inflows of +€6.3bn, of which +€1.3bn in MLT assets5, with contrasting developments according to the sub-segments:

    • Third-Party Distributors had another very good quarter in terms of total net inflows (+€6.8bn); all regions contributed to these inflows, which were highly diversified across asset classes, with positive contributions from ETFs, treasury products but also active management (+€1.5bn);
    • Risk aversion has a larger impact on the activity of partner network clients in France (+€1.1bn) and outside France excluding Amundi BOC WM (-€0.9bn), despite the good performance of structured and treasury products as well as bond strategies; Sabadell’s network in Spain continues its sales momentum (+€0.4bn);
    • In China, Amundi BOC WM posted net outflows this quarter (-€0.7bn), as the maturities of fixed-term funds were not offset by open-ended fund subscriptions.

    Excluding the loss of the low-income insurance mandate already mentioned4, the Institutional segment recorded very positive inflows in MLT Assets5(+€7.8bn), in all sub-segments: Institutional & Sovereigns with +€4.4bn, CA & SG insurance mandates with +€2.4bn thanks to the continued recovery of the traditional life insurance Euro contracts this quarter, Corporates and Employee Savings (+€1.0bn) thanks to net inflows in short-term bond products from corporates. Net outflows in Treasury Products (-€4.9bn) are to a large extent seasonal.

    Results

    Sustained growth in net income, +16% Q3/Q3 to €337m, and more than €1bn in the 9 months of 2024

    Adjusted data2

    In the third quarter of 2024, adjusted net income2reached €337m, up +16.1% compared to the third quarter of 2023. Since the second quarter, it includes Alpha Associates, whose acquisition was finalised in early April.

    The growth in net income was mainly due to organic revenue growth, amplified by operating efficiency, which led to a positive jaws effect, and by the very strong momentum of Asian JVs. These results were achieved against the backdrop of continued client risk aversion, and inflation.

    Adjusted net revenues2 reached €862m, up +10.5% compared to the third quarter of 2023.

    • The sustained growth in net management fees, up +9.2% compared to the third quarter of 2023, to €805m, reflects the good level of activity and the increase in average assets under management excluding JVs (+8.6% over the same period);
    • Performance fees (€20m) doubled compared to the third quarter of 2023 (€10m), a low basis of comparison; however, they were down compared to the second quarter of 2024 (€50m) due to the lower level of crystallisation15 in the third quarter than in the second and fourth quarters, as it does every year; however, the performance of Amundi’s management is at a good level, with more than 71% of assets under management ranked in the first or second quartiles according to Morningstar16 over 1, 3 or 5 years and 257 Amundi funds rated 4 or 5 stars by Morningstar as of 30 September;
    • Amundi Technology’s revenues, at €20m, continued to grow steadily (+41.8% compared to the third quarter of 2023; +13.0% compared to the second quarter of 2024), confirming the development of this business;
    • Finally, the Financial and other income2 amounted to €17m, down slightly compared to the third quarter of 2023 and previous quarters.

    The increase in operating expenses2, by +7.4% compared to the third quarter of 2023, to €456m, remains lower than the increase in revenues (+10.5%) over the same period, thus generating a positive jaws effect which reflects the Group’s operational efficiency.

    The increase is mainly due to:

    • the first consolidation of Alpha Associates;
    • the provision for individual variable remuneration in line with the increase in results;
    • and finally the acceleration of investments in development initiatives according to the axes of the 2025 Ambitions Plan, particularly in technology.

    The Cost income ratio improved to 52.9% in adjusted data2 compared to the same quarter last year, and remains in line with the 2025 target and at the best level in the industry.

    The Adjusted gross operating income2(EBIT) amounted to €406m, up +14.2% compared to the third quarter of 2023, reflecting double-digit revenue growth amplified by operational efficiency.

    Income from equity-accounted companies, which reflects Amundi’s share of the net income of minority JVs in India (SBI MF), China (ABC-CA), South Korea (NH-Amundi) and Morocco (Wafa Gestion), was up +36.5% compared to the third quarter of 2023, to €33m, representing 10% of adjusted net income, reflecting the good level of activity in India and Korea.

    Adjusted earnings per share2in the third quarter of 2024 reached €1.65, up +16.0%.

    Accounting data in the third quarter of 2024

    Accounting Net income Group share amounted to €320m and includes non-cash charges related to acquisitions, in particular the amortisation of intangible assets related to distribution and client contracts (-€24m before tax in the quarter including the corresponding new charges related to Alpha Associates, see details in p. 11), representing a total of -€17m after tax.

    Accounting earnings per share in the third quarter of 2024 reached €1.56.

    In the first 9 months of 2024, adjusted net income2amounted to €1,005m, up +10.4%, reflecting the same trends as in the third quarter:

    • Adjusted net revenues2 grew by +7.3% compared to the first 9 months of 2023, to €2,573m, reflecting as in the quarter the sustained growth in management fees (+6.6%) and the strong increase in Amundi Technology’s revenues (€54m, +28.2%) and financial and other income2 (€67m, +38.2%); performance fees, on the other hand, were down by -2.0% to €88m;
    • Adjusted operating expenses2 are well controlled with an increase of +5.9% compared to the first 9 months of 2023, at €1,356m, resulting in a positive jaws effect;
    • Adjusted cost income ratio2 stands at 52.7%.

    Adjusted gross operating income2 was €1,217m, up +8,9% compared to the first 9 months of 2023, showing a higher growth rate than revenue growth thanks to operating efficiency.

    Income from equity-accounted companies increased by +28.6% compared to the first 9 months of 2023, to €94m.

    Adjusted earnings per share2for the first 9 months of 2024 reached €4.91, up +10.1% compared to the first 9 months of 2023.

    Accounting data for the first 9 months of 2024

    Accounting Net income Group share amounted to €956m and includes non-cash charges related to acquisitions, in particular the amortisation of intangible assets related to distribution and client contracts (-€68m before tax in the 9 months including the corresponding new charges related to Alpha Associates, see details on p. 11), representing a total of -€49m after tax in the first 9 months of 2024.

    Accounting earnings per share for the first 9 months of 2024 reached €4.67.

    To be noted for the fourth quarter and full-year 2024

    Success of the capital increase reserved for employees – The capital increase reserved for employees “We Share Amundi”, announced on 23 September 2024, is expected to be completed tomorrow, 31 October 2024. This operation offered for the seventh consecutive year a subscription of shares at a discount.

    It was once again a great success this year: more than 2,000 employees in 15 countries subscribed to this capital increase, for a total amount of €36.3m. This represents nearly two out of three employees in France and more than two out of five worldwide.        
    This transaction, which is in line with the existing legal authorisations voted by the Shareholders’ Meeting on 12 May 2023, reflects Amundi’s desire to involve its employees not only in the development of the Company but also in the creation of economic value.

    The impact of this transaction on earnings per share will be very limited: the number of shares to be created will be 771,628 (i.e. ~0.4% of the share capital before the transaction).        
    This issue will bring the number of shares making up Amundi’s share capital to 205,419,262 as of 31 October 2024, i.e. a share capital increased to €513,548,155.        
    Employees will now hold around 1.7% of Amundi’s capital, compared to 1.3% before the transaction. In the fourth quarter of 2024, the Amundi Group will record in its consolidated financial statements a charge relating to the subscription discount of €12.3m before tax.

    On the basis of the Finance Bill presented by the French government, an exceptional tax contribution on the profits of large companies would apply to Amundi, whose turnover in France for tax purposes is more than €3bn.

    * * * * *

    APPENDICES

    Adjusted income statement2of the first 9 months of 2024 and 2023

    (€m)   9M 2024 9M 2023 % chg.
    9M/9M
             
    Net revenue – Adjusted   2,573 2,397 +7.3%
    Management fees   2,364 2,217 +6.6%
    Performance fees   88 89 -2.0%
    Technology   54 42 +28.2%
    Net financial & other net income   67 49 +38.2%
    Operating expenses – Adjusted   (1,356) (1,280) +5.9%
    Cost income ratio – Adjusted (%)   52.7% 53.4% -0.7pp
    Gross operating income – Adjusted   1,217, 1,117, +8.9%
    Cost of risk & other   (7) (5) +24.5%
    Equity-accounted companies   94 73 +28.6%
    Income before tax – Adjusted   1,305 1,185 +10.1%
    Corporate tax   (302) (277) +8.8%
    Non-controlling interests   2 3 -25.2%
    Net income, Group share – Adjusted   1,005 910 +10.4%
    Depreciation of intangible assets after tax   (49) (44) +11.6%
    Integration costs net of tax   0 0 NS
    Net income, Group share   956 866 +10.3%
    Earnings per share (€)   4.67 4.25 +10.0%
    Earnings per share – Adjusted (€)   4.91 4.46 +10.1%

    Adjusted income statement2of the third quarter of 2024

    (€m)   Q3 2024 Q3 2023 % chg.
    Q3/Q3    		   Q2 2024 % chg.
    Q3/Q2
                   
    Net revenue – Adjusted   862 780 +10.5%   887 -2.9%
    Management fees   805 737 +9.2%   794 +1.3%
    Performance fees   20 10 +97.3%   50 -58.9%
    Technology   20 14 +41.8%   17 +13.0%
    Net financial & other net income   17 19 -10.6%   26 -34.0%
    Operating expenses – Adjusted   (456) (424) +7.4%   (461) -1.1%
    Cost income ratio – Adjusted (%)   52.9% 54.4% -1.5pp   51.9% +1.0pp
    Gross operating income – Adjusted   406 356 +14.2%   426 -4.8%
    Cost of risk & other   (2) (3) -36.0%   (5) -63.4%
    Equity-accounted companies   33 24 +36.5%   33 -0.1%
    Income before tax – Adjusted   437 377 +15.9%   454 -3.9%
    Corporate tax   (101) (88) +14.9%   (105) -3.8%
    Non-controlling interests   1 1 -23.5%   0 NS
    Net income, Group share – Adjusted   337 290 +16.1%   350 -3.7%
    Depreciation of intangible assets after tax   (17) (15) +17.9%   (17) +1.2%
    Integration costs net of tax   0 0 NS   0 NS
    Net income, Group share   320 276 +16.0%   333 -4.0%
    Earnings per share (€)   1.56 1.35 +15.9%   1.63 -4.0%
    Earnings per share – Adjusted (€)   1.65 1.42 +16.0%   1.71 -3.7%

    Evolution of assets under management from the end of 2020 to the end of September 202417

    (€bn) Assets under management Net

    inflows

    		 Market &

    Forex Effect

    		 Scope effect   Change in AuM
    vs. previous quarter
    As of 31/12/2020 1,729       / +4.0%
    Q1 2021   -12.7 +39.3   /  
    As of 31/03/2021 1,755       / +1.5%
    Q2 2021   +7.2 +31.4   /  
    As of 30/06/2021 1,794       / +2.2%
    Q3 2021   +0.2 +17.0   /  
    As of 30/09/2021 1,811       / +1.0%
    Q4 2021   +65.6 +39.1   +14818  
    As of 31/12/2021 2,064       / +14%
    Q1 2022   +3.2 -46.4   /  
    As of 31/03/2022 2,021       / -2.1%
    Q2 2022   +1.8 -97.75   /  
    As of 30/06/2022 1,925       / -4.8%
    Q3 2022   -12.9 -16.3   /  
    As of 30/09/2022 1,895       / -1.6%
    Q4 2022   +15.0 -6.2   /  
    As of 31/12/2022 1,904       / +0.5%
    Q1 2023   -11.1 +40.9   /  
    As of 31/03/2023 1,934       / +1.6%
    Q2 2023   +3.7 +23.8   /  
    As of 31/06/2023 1,961       / +1.4%
    Q3 2023   +13.7 -1.7   /  
    As of 30/09/2023 1,973       / +0.6%
    Q4 2023   +19.5 +63.8   -20  
    As of 31/12/2023 2,037       / +3.2%
    Q1 2024   +16.6 +63.0   /  
    As of 31/03/2024 2,116       / +3.9%
    Q2 2024   +15.5 +16.6   +8  
    30/06/2024 2,156         +1.9%
    Q3 2024   +2.9 +32.5   /  
    30/09/2024 2,192         +1.6%

    Total over one year between September 30, 2023 and September 30, 2024: +11.1%

    • Net inflows          +€54.5bn
    • Market & exchange rate effects        +€175.9bn
    • Scope effects        -€12.2bn
      (disposal of Lyxor Inc. in Q4 2023, first consolidation of Alpha Associates in Q2 2024)

    Details of assets under management and net inflows by client segments19

    (€bn) AuM

    30.09.2024

    		 AuM

    30.09.2023

    		 % change /30.09.2023 Net flows

    Q3 2024

    		 Net flows

    Q3 2023

    		 Net flows

    9M 2024

    		 Net flows

    9M 2023
    French networks 138 126 +9.1% +1.1 +0.9 +0.3 +4.6
    International networks 167 156 +7.1% -1.6 -1.0 -4.4 -3.2
    o/w Amundi BOC WM 3 4 -26.9% -0.7 -0.5 -0.5 -3.3
    Third-party distributors 377 305 +23.5% +6.8 +2.1 +19.2 +4.1
    Retail 681 587 +16.1% +6.3 +2.0 +15.1 +5.6
    Institutional & Sovereigns (*) 518 489 +6.0% -9.3 +17.9 +1.4 +14.4
    Corporates 113 97 +16.0% +2.3 -3.8 -5.8 -7.4
    Employee savings plans 92 84 +9.8% -0.5 -0.9 +2.5 +2.6
    CA & SG insurers 428 406 +5.3% -1.2 -3.9 +0.5 -9.6
    Institutional 1,151 1,076 +6.9% -8.7 +9.3 -1.4 +0.0
    JVs 360 310 +16.0% +5.3 +2.4 +21.3 +0.7
    Total 2,192 1,973 +11.1% +2.9 +13.7 +35.0 +6.3

    Details of assets under management and net inflows by asset classes19

    (€bn) AuM

    30.09.2024

    		 AuM

    30.09.2023

    		 % change /30.09.2023 Net flows

    Q3 2024

    		 Net flows

    Q3 2023

    		 Net flows

    9M 2024

    		 Net flows

    9M 2023
    Equity 527 443 +18.9% -0.7 +7.0 +0.0 +2.0
    Multi-assets 274 274 -0.0% -15.4 -5.9 -22.3 -17.0
    Bonds 732 624 +17.3% +12.8 +7.7 +36.8 +10.1
    Real, alternative & structured assets 114 124 -8.3% +0.8 -1.1 +1.5 +2.4
    MLT ASSETS excl. JVs 1,647 1,465 +12.4% -2.5 +7.8 +16.1 -2.4
    Treasury products excl. JVs 185 198 -6.5% +0.1 +3.5 -2.4 +8.0
    Assets excl. JVs 1,832 1,663 +10.1% -2.4 +11.3 +13.6 +5.6
    JVs 360 310 +16.0% +5.3 +2.4 +21.3 +0.7
    TOTAL 2,192 1,973 +11.1% +2.9 +13.7 +35.0 +6.3
    o/w MLT assets 1,973 1,745 +13.1% +3.4 +11.3 +34.9 -0.7
    o/w Treasury products 219 229 -4.2% -0.5 +2.5 +0.1 +7.1

    Details of assets under management and net inflows by management type and asset classes19

    (€bn) AuM

    30.09.2024

    		 AuM

    30.09.2023

    		 % change /30.09.2023 Net flows

    Q3 2024

    		 Net flows

    Q3 2023

    		 Net flows

    9M 2024

    		 Net flows

    9M 2023
    Active management 1,136 1,022 +11.1% -7.1 -1.9 +2.2 -15.6
    Equity 208 187 +11.4% -2.3 -1.6 -5.4 -2.5
    Multi-assets 263 265 -0.9% -15.7 -6.3 -23.4 -18.2
    Bonds 665 570 +16.6% +10.8 +6.1 +31.0 +5.1
    Structured products 43 35 +22.3% +0.8 -0.2 +2.7 +2.9
    Passive management 397 319 +24.5% +3.8 +10.8 +12.4 +10.8
    ETFs & ETC 251 192 +31.1% +7.8 +3.6 +17.3 +8.0
    Index & Smart Beta 146 127 +14.5% -4.0 +7.2 -5.0 +2.8
    Real & alternative assets 71 89 -20.5% +0.0 -0.9 -1.2 -0.5
    Real assets 67 63 +4.8% +0.2 -0.3 -0.1 +0.2
    Alternative assets 4 25 -83.8% -0.2 -0.6 -1.1 -0.7
    MLT ASSETS excl. JVs 1,647 1,465 +12.4% -2.5 +7.8 +16.1 -2.4
    Treasury products excl. JVs 185 198 -6.5% +0.1 +3.5 -2.4 +8.0
    TOTAL ASSETS excl. JVs 1,832 1,663 +10.1% -2.4 +11.3 +13.6 +5.6
    JVs 360 310 +16.0% +5.3 +2.4 +21.3 +0.7
    TOTAL 2,192 1,973 +11.1% +2.9 +13.7 +35.0 +6.3

    Details of assets under management and net inflows by geographical areas19

    (€bn) AuM

    30.09.2024

    		 AuM

    30.09.2023

    		 % change /30.09.2023 Net flows

    Q3 2024

    		 Net flows

    Q3 2023

    		 Net flows

    9M 2024

    		 Net flows

    9M 2023
    France 987 903 +9.3% +2.8 +4.1 +12.8 -1.2
    Italy 202 197 +2.7% -10.8 -1.5 -13.8 -2.2
    Europe excl. France & Italy 421 353 +19.2% +1.9 -0.8 +6.0 +6.0
    Asia 458 392 +17.0% +7.4 +3.4 +29.6 -0.3
    Rest of the world 124 129 -4.3% +1.7 +8.4 +0.4 +4.0
    TOTAL 2,192 1,973 +11.1% +2.9 +13.7 +35.0 +6.3
    TOTAL outside France 1,204 1,070 +12.5% +0.1 +9.6 +22.2 +7.5

    Methodology Appendix

    Accounting & adjusted data

    Accounting data – These include the amortization of intangible assets, recorded as other income, and since Q2 2024, other non-cash expenses spread according to the schedule of payments of the earn-out until the end of 2029; these expenses are recognized as deductions from net income, in finance costs.

    The aggregate amounts of these items are as follows for the different periods under review:

    • Q1 2023: -€20m before tax and -€15m after tax
    • Q2 2023: -€20m before tax and -€15m after tax
    • Q3 2023: -€20m before tax and -€15m after tax
    • 9M 2023: -€61m before tax and -€44m after tax
    • 2023: -€82m before tax and -€59m after tax
    • Q1 2024: -€20m before tax and -€15m after tax
    • Q2 2024: -€24m before tax and -€17m after tax
    • Q3 2024: -€24m pre-tax and -€17m after tax
    • 9M 2024: -€68m before tax and -€49m after tax

    There were no significant integration costs recorded in the third quarter as a result of the acquisition of Alpha Associates

    Adjusted data – in order to present an income statement closer to economic reality, the following adjustments are made: restatement of the amortization of distribution contracts with Bawag, UniCredit and Banco Sabadell, intangible assets representing the client contracts of Lyxor and, since the second quarter of 2024, Alpha Associates, as well as other non-cash charges related to the acquisition of Alpha Associates; such depreciation and amortization and non-cash expenses are recorded as a deduction from net revenues.

    Acquisition of Alpha Associates

    In accordance with IFRS 3, recognition of Amundi’s balance sheet as at 01/04/2024:

    • goodwill of €290m;
    • an intangible asset of €50m representing client contracts, depreciable on a straight-line basis until the end of 2030;
    • a liability representing the conditional earn-out not yet paid, for €160m, including an actuarial discount of -€30m, which will be amortized over 6 years.

    In the Group’s income statement, the following is recorded:

    • amortization of intangible assets for a full-year expense of -€7.6m (-€6.1m after tax)
    • other non-cash expenses spread according to the schedule of payments of the earn-out until the end of 2029; These expenses are recorded as deductions from net income, as finance costs.

    In Q3 2024, the amortization of intangible assets was -€1.9m before tax (-€1.5m after tax) and non-cash expenses were -€1.4m before tax (i.e. -€1.1m after tax). Over the first 9 months of 2024, these expenses are respectively -€3.8m and -€2.9m (-€6.6m in total), since they only started in Q2.

    Alternative Performance Measures20

    In order to present an income statement that is closer to economic reality, Amundi publishes adjusted data that excludes the depreciation of intangible assets and, since the second quarter of 2024, Alpha Associates, as well as other non-cash charges related to the acquisition of Alpha Associates.
    Adjusted, normalized data are reconciled with accounting data as follows:

    = accounting data
    = adjusted data
    (m€)   9M 2024 9M 2023   Q3 2024 Q3 2023   Q2 2024
                     
    Net operating income   2,452 2,307   825 747   844
    Technology   54 42   20 14   17
    Net financial income and other income   (1) (13)   (6) (1)   3
    Adjusted net financial income and other income   67 49   17 19   26
                     
    Net revenues (a)   2,505 2,336   838 760,   864,
    – Depreciation of intangible assets before tax   (65) (61)   (22) (20)   (22)
    – other non-cash charges relating to Alpha Associates   (3) 0   (1) 0   (1)
    Net revenues – Adjusted (b)   2,573 2,397   862, 780,   887
                     
    Operating expenses (c)   (1,356) (1,280)   (456) (424)   (461)
    – Integration costs before tax   0 0   0 0   0
    Operating expenses – Adjusted (d)   (1,356) (1,280)   (456) (424)   (461)
                     
    Gross operating income (e) = (a) + (c)   1,149 1,056   382 335   403
    Gross operating income – Adjusted (f) = (b) + (d)   1,217 1,117   406 356   426
    Cost-income ratio (%) -(c)/(a)   54.1% 54.8%   54.4% 55.9%   53.4%
    Cost-income ratio – Adjusted (%) -(d)/(b)   52.7% 53.4%   52.9% 54.4%   51.9%
    Cost of risk & other (g)   (7) (5)   (2) (3)   (5)
    Equity-accounted companies (h)   94 73   33 24   33
    Income before tax (i) = (e) + (g) + (h)   1,237 1,124   413 356   431
    Income before tax – Adjusted (j) = (f) + (g) + (h)   1,305 1,185   437 377   454
    Income tax (k)   (283) (260)   (94) (82)   (98)
    Income tax – Adjusted (l)   (302) (277)   (101) (88)   (105)
    Non-controlling interests (m)   2 3   1 1   0
    Net income, Group share (o) = (i)+(k)+(m)   956 866   320 276   333
    Net income, Group share – Adjusted (p) = (j)+(l)+(m)   1,005 910   337 290   350
                     
    Earnings per share (€)   4.67 4.25   1.56 1.35   1.63
    Adjusted earnings per share (€)   4.91 4.46   1.65 1.42   1.71

    Shareholding

        30 September 2023   31 December 2023   30 September 2024
    (units)   Number

    of shares

    		 % of share capital   Number

    of shares

    		 % of share capital   Number

    of shares

    		 % of share capital
    Crédit Agricole Group   141,057,399 68.93%   141,057,399 68.93%   141,057,399 68.93%
    Employees   3,042,292 1.49%   2,918,391 1.43%   2,751,891 1.34%
    Treasury shares   1,297,231 0.63%   1,247,998 0.61%   958,031 0.47%
    Free float   59,250,712 28.95%   59,423,846 29.04%   59,880,313 29.26%
                       
    Number of shares at end of period   204,647,634 100.0%   204,647,634 100.0%   204,647,634 100.0%
    Average number of shares year-to-date   204,050,516 –   204,201,023 –   204,647,634 –
    Average number of shares quarter-to-date   204,425,079 –   204,647,634 –   204,647,634 –

    Average number of shares on a pro rata basis.

    • The average number of shares is unchanged between Q2 and Q3 2024, it increased by +0.1% between Q3 2023 and Q3 2024 and by +0.3% between the first 9 months of 2023 and the same period of 2024;
    • A capital increase reserved for employees will be carried out on October 31, 2024. 771,628 shares were created (approximately 0.4% of the share capital before the transaction), bringing the share of employees to about 1.7% of the capital, compared to 1.34% at September 30, 2024, before the transaction.                                        

    Financial communication calendar

    • Q4 and Full Year 2024 Results: February 4, 2025
    • Q1 2025 earnings release: April 29, 2025
    • Annual General Meeting: May 27, 2025
    • Q2 and H1 2025 earnings release: July 29, 2025
    • Q3 and 9-month 2025 results: October 28, 2025

    About Amundi

    Amundi, the leading European asset manager, ranking among the top 10 global players21, offers its 100 million clients – retail, institutional and corporate – a complete range of savings and investment solutions in active and passive management, in traditional or real assets. This offering is enhanced with IT tools and services to cover the entire savings value chain. A subsidiary of the Crédit Agricole group and listed on the stock exchange, Amundi currently manages close to €2.2 trillion of assets22.

    With its six international investment hubs23, financial and extra-financial research capabilities and long-standing commitment to responsible investment, Amundi is a key player in the asset management landscape.

    Amundi clients benefit from the expertise and advice of 5,500 employees in 35 countries.

    Amundi, a trusted partner, working every day in the interest of its clients and society.

    www.amundi.com  

    Press contacts:        
    Natacha Andermahr 
    Tel. +33 1 76 37 86 05
    natacha.andermahr@amundi.com 

    Corentin Henry
    Tel. +33 1 76 36 26 96
    corentin.henry@amundi.com

    Investor contacts:
    Cyril Meilland, CFA
    Tel. +33 1 76 32 62 67
    cyril.meilland@amundi.com 

    Thomas Lapeyre
    Tel. +33 1 76 33 70 54
    thomas.lapeyre@amundi.com 

    Annabelle Wiriath

    Tel. + 33 1 76 32 43 92

    annabelle.wiriath@amundi.com

    WARNING

    This document does not constitute an offer or invitation to sell or purchase, or any solicitation of any offer to purchase or subscribe for, any securities of Amundi in the United States of America or in France. Securities may not be offered, subscribed or sold in the United States of America absent registration under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements thereof. The securities of Amundi have not been and will not be registered under the U.S. Securities Act and Amundi does not intend to make a public offer of its securities in the United States of America or in France.

    This document may contain forward looking statements concerning Amundi’s financial position and results. The data provided do not constitute a profit “forecast” or “estimate” as defined in Commission Delegated Regulation (EU) 2019/980.

    These forward looking statements include projections and financial estimates based on scenarios that employ a number of economic assumptions in a given competitive and regulatory context, assumptions regarding plans, objectives and expectations in connection with future events, transactions, products and services, and assumptions in terms of future performance and synergies. By their very nature, they are therefore subject to known and unknown risks and uncertainties, which could lead to their non-fulfilment. Consequently, no assurance can be given that these forward looking statement will come to fruition, and Amundi’s actual financial position and results may differ materially from those projected or implied in these forward looking statements. [In particular, conditions to completion of the announced transaction between Amundi and Victory Capital, may not be satisfied and such transaction may not be completed on schedule, or at all; risks relating to the expected benefits or impact of the transaction on Victory Capital’s and Amundi’s respective businesses are contained in their respective public filings.]

    Amundi undertakes no obligation to publicly revise or update any forward looking statements provided as at the date of this document. Risks that may affect Amundi’s financial position and results are further detailed in the “Risk Factors” section of our Universal Registration Document filed with the French Autorité des Marchés Financiers. The reader should take all these uncertainties and risks into consideration before forming their own opinion.

    The figures presented were prepared in accordance with applicable prudential regulations and IFRS guidelines, as adopted by the European Union and applicable at that date. The financial information set out herein do not constitute a set of financial statements for an interim period as defined by IAS 34 “Interim Financial Reporting” and has not been audited.

    Unless otherwise specified, sources for rankings and market positions are internal. The information contained in this document, to the extent that it relates to parties other than Amundi or comes from external sources, has not been verified by a supervisory authority or, more generally, subject to independent verification, and no representation or warranty has been expressed as to, nor should any reliance be placed on, the fairness, accuracy, correctness or completeness of the information or opinions contained herein. Neither Amundi nor its representatives can be held liable for any decision made, negligence or loss that may result from the use of this document or its contents, or anything related to them, or any document or information to which this document may refer.

    The sum of values set out in the tables and analyses may differ slightly from the total reported due to rounding.

    1        Net income Group share
    2        Adjusted data: excluding amortisation of intangible assets relating to distribution and client contracts as well as other non-cash charges relating to the acquisition of Alpha Associates recorded in net financial income (see note p. 11)
    3        Assets under management and flows including assets under advisory, marketed assets and funds of funds, and taking into account 100% of Asian JV’s assets and flows; for Wafa Gestion in Morocco, they are reported in proportion to Amundi’s holding in the capital of the JV
    4        As announced at the time of the publication of the Q2 results, exit in Q3 from a large low-income mandate (€11.6 billion) with a European insurer, in multi-asset; including this exit, net inflows were positive by +€2.9bn in Q3 and +€35bn over 9 months
    5        Medium-Long Term Assets
    6        Excluding JVs
    7        Extraordinary General Meeting of Shareholders of Victory Capital, held on 11 October 2024
    8        Source: TrackInsight Q3 2024
    9        Classified as article 8 or 9 of the SFDR regulation of the European Union
    10        Including JV: €234bn in assets, +€12bn net inflows over 9 months and +€1bn in Q3
    11        50% MSCI World + 50% Eurostoxx 600 composite index for equity markets, average values over each period considered
    12        Bloomberg Euro Aggregate for bond markets, average values over each reporting period
    13        Source: Morningstar FundFile, ETFGI. European & cross-border open-ended funds (excluding mandates and dedicated funds). Data as of the end of June 2024.
    14        Assets under management and flows including assets under advisory, marketed assets and funds of funds, and taking into account 100% of Asian JV’s assets and flows; for Wafa Gestion in Morocco, they are reported in proportion to Amundi’s holding in the capital of the JV
    15        Anniversary dates of the funds triggering the recognition of these fees
    16        Source: Morningstar Direct, Broadridge FundFile – Open-ended funds and ETFs, global fund scope, September 2024; as a percentage of the assets under management of the funds in question; the number of Amundi open-ended funds rated by Morningstar was 1063 at the end of September 2024. © 2024 Morningstar, all rights reserved
    17        Assets under management and flows including assets under advisory, marketed assets and funds of funds, and taking into account 100% of Asian JV’s assets and flows; for Wafa Gestion in Morocco, they are reported in proportion to Amundi’s holding in the capital of the JV
    18        Lyxor, integrated as of 31/12/2021
    19        Assets under management and flows including assets under advisory, marketed assets and funds of funds, and taking into account 100% of Asian JV’s assets and flows; for Wafa Gestion in Morocco, they are reported in proportion to Amundi’s holding in the capital of the JV; as of 01/01/2024, reclassification of short-term bond strategies (€30 billion in outstandings) as Bonds previously classified as Treasury until that date; Outstanding amounts up to that date have not been reclassified in these tables
    20        See also the section 4.3 of the 2023 Universal Registration Document filed with the AMF on April 18, 2024
    21Source: IPE “Top 500 Asset Managers” published in June 2024, based on assets under management as at 31/12/2023
    22Amundi data at 30/09/2024
    23Boston, Dublin, London, Milan, Paris and Tokyo

    Attachment

    The MIL Network –

  • MIL-OSI: Sampo plc’s share buybacks 29 October 2024

    Source: GlobeNewswire (MIL-OSI)

    Sampo plc, stock exchange release, 30 October 2024 at 8:30 am EET

    Sampo plc’s share buybacks 29 October 2024

    On 29 October 2024, Sampo plc (business code 0142213-3, LEI 743700UF3RL386WIDA22) has acquired its own A shares (ISIN code FI4000552500) as follows:                

    Sampo plc’s share buybacks Aggregated daily volume (in number of shares) Daily weighted average price of the purchased shares* Market (MIC Code)
      4,184 41.39 AQEU        
      35,180 41.39 CEUX
      980 41.39 TQEX
      50,822 41.41 XHEL
    TOTAL 91,166 41.40  

    *rounded to two decimals                

    On 17 June 2024, Sampo announced a share buyback programme of up to a maximum of EUR 400 million in compliance with the Market Abuse Regulation (EU) 596/2014 (MAR) and the Commission Delegated Regulation (EU) 2016/1052. On 16 September 2024, the Board of Directors of Sampo plc resolved to increase the share buyback programme to EUR 475 million. The programme, which started on 18 June 2024, is based on the authorisation granted by Sampo’s Annual General Meeting on 25 April 2024.

    After the disclosed transactions, the company owns in total 9,597,138 Sampo A shares representing 1.74 per cent of the total number of shares in Sampo plc, taking the issuance of shares on 16 September 2024 into account.

    Details of each transaction are included as an appendix of this announcement.

    On behalf of Sampo plc,
    Morgan Stanley

    For further information, please contact:

    Sami Taipalus
    Head of Investor Relations
    tel. +358 10 516 0030

    Distribution:
    Nasdaq Helsinki
    Nasdaq Stockholm
    Nasdaq Copenhagen
    London Stock Exchange
    The principal media
    FIN-FSA
    DEN-FSA
    www.sampo.com

    Attachment

    The MIL Network –

  • MIL-OSI China: Scholarship quota for undergrads doubled

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

    China has recently optimized scholarships and bursary granting systems to senior high school and college students with an aim of providing financial aid to youth pursuing higher education.

    The initiative jointly launched by the Ministry of Finance, the Ministry of Education and the Ministry of Human Resources and Social Security will double the number of undergraduate students receiving the State-level scholarships, while financial aid will also be significantly increased, starting this year.

    As per the policy, 120,000 undergraduate students from universities and junior colleges can receive the scholarship, and each will be awarded 10,000 yuan ($1,400) annually. Previously, the quota of students was 60,000, and they could receive no more than 8,000 yuan a year.

    The State-level scholarship provides major assistance for higher education students, rewarding them for achieving outstanding academic performance, diligence and good moral qualities.

    The new policy will also double the number of such scholarships to postgraduate students from 45,000 to 90,000 from this year, among whom 70,000 will be master’s degree candidates and 20,000 doctoral students.

    Meanwhile, China will also channel more funds to assist students with financial difficulties. They will receive 3,700 yuan of State-level financial aid on average from this semester, with some receiving as much as 5,000 yuan. Previously, the financial aid offered was 3,300 yuan per year.

    Beginning in the spring semester next year, aid will also be extended to students from regular senior high schools facing financial difficulties. On average, they will receive 2,300 yuan, while the neediest can receive up to 3,500 yuan per year in accordance with local practices. Previously, senior high students received 2,000 yuan in such aid annually.

    The nation will expand the coverage of its financial aid to more vocational high school students and raise the amount from 2,000 yuan per year to 2,300 yuan starting next spring. Vocational high school students who are in their third year and having financial difficulties are included in the new policy.

    Guo Tingting, vice-minister of finance, said at a recent news conference that China has established an all-around financial support system for students to give them security and make it easier for them to access higher education.

    According to the finance ministry, the nation channeled 93.2 billion yuan in scholarships and aid to students last year, with over 31 million higher education students benefiting.

    MIL OSI China News –

  • MIL-OSI Asia-Pac: Opening address by Permanent Secretary for Financial Services and the Treasury (Financial Services) at ASIFMA’s 5th Annual Sustainable Finance Conference: Enabling Transition Finance in Asia (English only) (with photo)

    Source: Hong Kong Government special administrative region

         Following is the opening address by the Permanent Secretary for Financial Services and the Treasury (Financial Services), Ms Salina Yan, at the ASIFMA’s 5th Annual Sustainable Finance Conference: Enabling Transition Finance in Asia today (October 30):
     
    Peter (Chief Executive Officer of the Asia Securities Industry & Financial Markets Association (ASIFMA), Mr Peter Stein), Boris (Managing Director, Head of Institutional Banking Group of DBS Bank (Hong Kong) Limited, Mr Boris Chan), distinguished guests, ladies and gentlemen,
     
         Good morning. It is my great pleasure to join you today at the 5th Annual Sustainable Finance Conference organised by ASIFMA. ASIFMA’s events always draw an inquisitive and enthusiastic crowd with a lot of brain power. Today is no exception, but perhaps with somewhat more seriousness than usual as we are addressing the serious topic of enabling transition finance in the sustainability pathway towards net zero carbon emissions.  
     
         The seriousness is compounded when one reads the Asian Development Bank’s thematic report on “Asia in the Global Transition to Net Zero” published last year. According to the report, developing Asia accounted for 44 per cent of global greenhouse gas (GHG) emissions in 2019, and growth in the region still tends to rely substantially on emission-intensive activities. Obviously, there is a huge need for transition finance to assist heavy-emitting industries and economic activities to go down the path of net zero while managing economic development implications. Market estimates put the funding gap at over US$3 to 4 trillion in annual investment over the next three decades in the region. Policy trade-offs will certainly be involved in finding the right solutions.
     
         For this, I note a keyword in the topic of the Conference today and that is “enabling”. Hong Kong, being an international financial centre as well as a premier sustainable finance hub, is well-positioned to play important enabling roles in expediting Asia’s transition to net zero in an enabling or conducive environment. 
     
         With well-functioning capital markets offering a wide range of investment products and an international pool of financial services professionals, Hong Kong can contribute to mobilising international capital to finance transition initiatives in the region.  We are already doing so and enriching our ecosystem. For example, the number of ESG funds authorised by the Securities and Futures Commission (SFC) has increased significantly in recent years, with assets under management reaching close to US$170 billion as of June this year.
     
         The bond market also helps issuers raise sustainable financing in support of low-carbon transition efforts. The volume of green and sustainable bonds arranged in Hong Kong increased by about five times from around US$6 billion in 2019 to almost US$30 billion last year, topping the Asian market from 2021 to 2023. Among these, the Government Green Bond Programme has issued bonds of various tenors denominated in different currencies including RMB, euro and USD. The programme has recently been expanded to cover sustainable projects. The bonds issuances have been well received by institutional and retail investors alike, and have taken tokenisation form for two recent tranches. 
     
         Two points specifically on transition finance:
     
    (a) First, we published the first edition of the Hong Kong Taxonomy for Sustainable Finance in May this year to provide a clear set of definitions or classification of green activities for application by the industry in their green transition journey. It aligns with the two mainstream taxonomies of the Mainland and the European Union, and currently encompasses 12 economic activities under four sectors of power generation, transportation, construction, and water and waste management. The Taxonomy is now under the next phase development, where the scope of sectors and economic activities will be expanded to cover transition activities as well. The Hong Kong Monetary Authority (HKMA) plans to conduct a public consultation on the updated taxonomy prototype in the first half of 2025.
     
    (b) Second, to cater for the increasingly significant need for transition finance in the region, we have expanded the scope of the Green and Sustainable Finance Grant Scheme to cover transition bonds and loans, helping to incentivise relevant industries in the region to make use of Hong Kong’s transition financing platform towards the decarbonisation mission. Since its inception in 2021 to mid-October this year, we have granted around $280 million to 470 green and sustainable debt instruments under the Scheme.
     
            Moving into another subject which is important to today’s topic, data clarity and transparency is often cited as one of the primary challenges hindering the development of transition finance. Hong Kong operates a highly open and internationalised market aligning with international standards and best practices. We stand ready to promote the adoption of data transparency in the market to facilitate and encourage more transition financing activities. 
     
         Earlier this month, for example, the Hong Kong Code of Conduct for ESG Ratings and Data Products Providers was published by an industry working group sponsored by the SFC. Its aim is to establish and promote a globally consistent, interoperable, and proportionate voluntary code for providers offering ESG ratings and data products and services in Hong Kong. The Code was modelled on international best practices recommended by the International Organization of Securities Commissions (IOSCO). It is intended to enhance transparency of methodologies for ESG ratings and data products and improve standards generally across the market with a view to combating greenwashing and instilling integrity in the growing green and sustainable finance ecosystem.
     
         Another important measure on standards is our commitment to launch a roadmap on the full adoption of the ISSB Standards on sustainability disclosure within this year, leading Hong Kong to be among the first jurisdictions in the world to align its local requirements with ISSB Standards. The Hong Kong Institute of Certified Public Accountants has already issued the exposure drafts for consultation. I am sure they will come up with final Hong Kong standards aligning with the ISSB Standards soon. I know that the afternoon session of this Conference has scheduled a dedicated panel to dive deep into this subject. I will spare the detail here.

         Blended finance is an evolving concept and is quickly developing. An OECD (Organisation for Economic Co-operation and Development) report defines it as a combination of official development finance, private philanthropic funds and commercial finance where the principal purpose is commercial rather than development. I look forward to the Panel’s discussion on this. I would note here that as Asia’s primary asset and wealth management hub for international investors, Hong Kong is well placed to harness the finance power of the public and private sectors. 
     
         On the home front, the HKMA launched last week the Sustainable Finance Action Agenda, setting out its goals and actions to be taken to further support green and sustainable financing needs in Asia and globally. Under the Agenda, one of the action areas is investment in a sustainable future, under which the HKMA aims to achieve net-zero emissions for the investment portfolio of the Exchange Fund by 2050 through continuing to actively expand the scope and variety of its sustainable investments, particularly those supporting the theme of climate transition across the public and private markets. The Exchange Fund will also deepen its focus on transition opportunities and mobilise stakeholders to actively support this effort through stewardship and engagement.
     
         Another emerging source of funds to support sustainable initiatives comes from philanthropy and impact investing of family offices. In Hong Kong, the philanthropic landscape is underscored by the existence of more than 10 000 charities that have been established in Hong Kong, reflecting a diverse and robust ecosystem of giving. Meanwhile, the global impact investing market, valued at about US$1.6 trillion, attaches growing recognition of the need to address critical challenges such as climate change. We have seen growing interest from family offices in impact investing as they do not just allocate funds for charitable purposes but also seek financial returns and measurable social outcomes. To this end, we will soon consult the industry on proposals to enhance the tax arrangements for funds and single family offices, including expanding the definition of “fund” to cover pension fund and endowment fund, and include emission derivatives and emission allowance as eligible exemption items.
     
         Added to this, Hong Kong is exceptionally well placed to serve the sustainable initiatives and transition needs of entities on the Mainland. Various Mainland local governments including Shenzhen, Hainan Province and Guangdong Province have issued offshore RMB local government bonds including green, blue, sustainability and social bonds in Hong Kong over the past few years. And Core Climate, our carbon credit marketplace, is exploring co-operation initiatives with its Mainland counterparts. We will certainly contribute our best to the country’s drive to achieve the goal of peaking carbon emissions by 2030 and reaching net zero by 2060. 
     
         Ladies and gentlemen, all these being said, a lot remains to be done. Hong Kong takes our 2050 net zero commitment very seriously and has set up a high-level steering committee comprising policy bureaux with both environmental protection and financial services policy responsibilities, and all financial regulators to co-ordinate and take forward relevant initiatives. Our Financial Secretary is also chairing the Green Technology and Finance Development Committee. We look forward to having your advice and participation in the journey. On this note, I wish you all a rewarding day at the Conference today. Thank you.   

    MIL OSI Asia Pacific News –

  • MIL-OSI: Redemption of 2024 Zero Dividend Preference Shares and Notice of Cancellation

    Source: GlobeNewswire (MIL-OSI)

    THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO AUSTRALIA, CANADA, ITALY, DENMARK, JAPAN, THE UNITED STATES, OR TO ANY NATIONAL OF SUCH JURISDICTIONS

    Redemption of 2024 Zero Dividend Preference Shares and Notice of Cancellation

    30 October 2024

    NB Private Equity Partners (NBPE), the $1.3bn1, FTSE 250, listed private equity investment company managed by Neuberger Berman, today announces that the Company will request the admission to and trading of the 2024 ZDPs on the Specialist Fund Segment of the Main Market of London Stock Exchange plc be cancelled. The cancellation will follow the redemption of the 2024 Zero Dividend Preference Shares (“2024 ZDPs”), with effect from 12:00 pm on 30 October 2024.  

    As previously announced, the maturity date of the 2024 ZDPs is 30 October 2024 and the final capital entitlement is 130.63 pence per share.

    Cheques are expected to be mailed to holders on 30 October 2024.

    CREST accounts are expected to be credited on 30 October 2024.

    For further information, please contact:

    NBPE Investor Relations         +44 (0) 20 3214 9002
    Luke Mason                              NBPrivateMarketsIR@nb.com 

    Kaso Legg Communications   +44 (0)20 3882 6644

    Charles Gorman                        nbpe@kl-communications.com
    Luke Dampier
    Charlotte Francis

    About NB Private Equity Partners Limited
    NBPE invests in direct private equity investments alongside market leading private equity firms globally. NB Alternatives Advisers LLC (the “Investment Manager”), an indirect wholly owned subsidiary of Neuberger Berman Group LLC, is responsible for sourcing, execution and management of NBPE. The vast majority of direct investments are made with no management fee / no carried interest payable to third-party GPs, offering greater fee efficiency than other listed private equity companies. NBPE seeks capital appreciation through growth in net asset value over time while paying a bi-annual dividend.

    LEI number: 213800UJH93NH8IOFQ77

    About Neuberger Berman
    Neuberger Berman is an employee-owned, private, independent investment manager founded in 1939 with over 2,800 employees in 26 countries. The firm manages $509 billion of equities, fixed income, private equity, real estate and hedge fund portfolios for global institutions, advisors and individuals. Neuberger Berman’s investment philosophy is founded on active management, fundamental research and engaged ownership. The PRI identified the firm as part of the Leader’s Group, a designation awarded to fewer than 1% of investment firms for excellence in environmental, social and governance practices. Neuberger Berman has been named by Pensions & Investments as the #1 or #2 Best Place to Work in Money Management for each of the last ten years

    This press release appears as a matter of record only and does not constitute an offer to sell or a solicitation of an offer to purchase any security. NBPE is established as a closed-end investment company domiciled in Guernsey. NBPE has received the necessary consent of the Guernsey Financial Services Commission. The value of investments may fluctuate. Results achieved in the past are no guarantee of future results. This document is not intended to constitute legal, tax or accounting advice or investment recommendations. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision. Statements contained in this document that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of NBPE’s investment manager. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Additionally, this document contains “forward-looking statements.” Actual events or results or the actual performance of NBPE may differ materially from those reflected or contemplated in such targets or forward-looking statements.

    (firms with more than 1,000 employees). Visit www.nb.com for more information. Data as of September 30, 2024.

    1Based on net asset value.

    The MIL Network –

  • MIL-OSI Economics: Q&A: Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP)

    Source: Asia Development Bank

    • Workers walking by a solar power plant in Kazakhstan

    Article | 30 October 2024
    Read time: 6 mins

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    •  IF-CAP is the first leveraged guarantee mechanism for climate finance to ever be adopted by a multilateral development bank.
    •  Various simulations have shown that for every $1 that is guaranteed, up to $4.5 of new climate finance will be generated under IF-CAP’s mechanism.
    •  IF-CAP will strengthen ADB’s developing member countries’ capacity to develop their low-carbon and climate-resilient strategies and build a larger pipeline of potential investments.

    What is IF-CAP?

      The Innovative Finance Facility for Climate in Asia and the Pacific, or IF-CAP, is a multi-donor financing partnership facility with the goal of scaling-up finance for accelerated action against climate change in Asia and the Pacific. IF-CAP partners will provide guarantees for parts of ADB’s sovereign loan portfolios to enable ADB to free up capital to increase lending for climate investments. Supplementary grants will facilitate project preparation, capacity building, and knowledge solutions.

    Why is IF-CAP being formed?

    The battle against climate change will be won or lost in Asia and the Pacific. And our region is uniquely vulnerable to the impacts. More than 40% of climate-related disasters occurred in Asia and the Pacific since the start of the century, affecting nearly 3.6 billion people. ADB estimates that $1.7 trillion per year will need to be invested in infrastructure in developing Asia between 2016-2030 to meet both climate and development goals. The Intergovernmental Panel for Climate Change (IPCC) says the year 2030 is a significant crossroad after which it will become considerably harder to meet climate targets.

    As Asia and the Pacific’s climate bank, the Asian Development Bank is spearheading significant climate change financing and expertise across the region.   IF-CAP is the first leveraged guarantee mechanism for climate finance to ever be adopted by a multilateral development bank. It is inspired by the International Finance Facility for Education (IFFEd), which aims to use innovative financing to unlock new education funding in low-and middle-income countries.

    What will IF-CAP do?

    IF-CAP will allow ADB to significantly increase climate finance for investments that are aligned with the Paris Agreement and other key ADB policies, including the forthcoming Climate Change Action Plan.

      With a model of “$1 in, $4.5 out”, IF-CAP’s current guarantee size of $2.5 billion will create over $11 billion in climate finance for much-needed climate projects across Asia and the Pacific. Alongside lending facilitated by IF-CAP, ADB will provide up to $1 billion in concessional ordinary capital resources lending (COL) from its own resources, in support of projects enabled by IF-CAP’s guarantee structure. In total, resources aligned with IF-CAP amount to over $12 billion.

    IF-CAP enabled projects will address both climate change mitigation, which focuses on reducing greenhouse gas emissions, and climate change adaptation, which focuses on building resilience to the worsening effects of climate change. These investments could cover a wide range of sectors, such as transportation, energy, urban, and agriculture and natural resources, as well as social sectors such as health and education, for projects with high climate impacts.

    What will IF-CAP not do?

    IF-CAP will not support new or existing fossil fuel-based electricity generation facilities or dedicated transmission, or any new or existing natural gas-related projects. Climate finance enabled by IF-CAP will not be used towards early retirement or repurposing of fossil fuel fired power plants.

    • Developing Asia’s share of global greenhouse gas emissions nearly doubled, from 22% in 1990 to 44% in 2019 and is expected to remain at this level until mid-century under current policies.

    • Asia and the Pacific can only realize its climate goals if it pursues a transition away from coal-based energy in the near term.

    How does the leverage mechanism work?

    The program is based on the use of financial guarantees from our partners. By guaranteeing a portfolio of ADB sovereign loans on a first-loss basis, they will help shoulder some of the loss in case of a default by one of our borrowers included in our portfolio.

    This is a groundbreaking arrangement because IF-CAP’s portfolio guarantee enables ADB to optimize the usage of our balance sheet, supported by the strength of our triple-A credit ratings and preferred creditor status. This allows ADB to reduce the capital held for credit risk and release more capital for climate loans. Every dollar of guarantee into IF-CAP will result in the capacity to provide more climate finance for eligible projects. Simulations show that for every $1 that is guaranteed, $4.5 of climate finance could be generated. That is a fundamental shift from the traditional “one dollar in, one dollar out” facilities at MDBs, because of IF-CAP’s leverage effect.

    Who are the partners supporting IF-CAP?

    IF-CAP’s founding partners are Denmark, Japan, Norway, Republic of Korea, Sweden, the United Kingdom, and the United States. In 2023, the Global Energy Alliance for People and Planet established a trust fund under the IF-CAP Financing Partnership Facility.

    What sovereign portfolios will their guarantees cover?

    IF-CAP will cover a dynamic and diversified reference portfolio consisting of ADB’s exposures to a board spectrum of developing member countries, which have been identified to achieve the desired leverage based on the risk appetite of the partners.

    Which countries are eligible for IF-CAP financing?

    All ADB’s developing member countries (DMCs) are eligible. Individual financing partners may exercise discretion for certain projects based on their policies and priorities.

    Will IF-CAP differ from ADB’s regular climate financing?

    Functionally, there will be no difference. IF-CAP’s role will be to enable ADB to approve climate financing more quickly and at a higher volume.

    What are the benefits of IF-CAP?

    For DMCs, IF-CAP can help them advance operations with high climate ambition that are currently not in their pipeline, increase climate finance components of existing pipeline projects, and enable greater visibility and demonstration effects for projects including those with innovative components or high climate impact.

    For IF-CAP partners, it can enable them to make a greater impact through a leveraged guarantee mechanism not offered by other financing partnership facilities, providing them with an effective and efficient way to fight climate change in support of their national commitments.

    For ADB, IF-CAP is an innovative method to optimize our balance sheet, unlock capital resources, and increase our lending capacity by over $11 billion so we can make more resources available for critical climate projects in Asia and the Pacific.

    Will IF-CAP contribute to ADB’s ambition of $100 billion climate financing for 2019-2030?

    IF-CAP will be one of the flagship instruments to enable ADB to reach its climate finance target beyond $100 billion and support our target for climate finance to reach 50% of the total committed financing volume by 2030.

    SHARE THIS PAGE
    Subjects
    • ADB funds and products
    • Climate change
    • Climate finance

    MIL OSI Economics –

  • MIL-OSI Russia: What excursions await the participants of the ninth season of the project “Discover

    Translation. Region: Russian Federation –

    Source: Moscow Government – Government of Moscow –

    From November 5 to 22, more than 170 excursions will be held around the capital’s high-tech industrial enterprises. Participants will visit production facilities that produce cosmetics, footwear, clothing, confectionery and bakery products, ventilators, emergency medical supplies, elevators and other products. You can register for the excursion on the project’s website “Open. This was reported by the Minister of the Moscow Government, head of the capital’s Department of Investment and Industrial Policy Anatoly Garbuzov.

    “We continue to introduce Moscow residents to the production processes of food products, children’s educational kits, laser equipment, pharmaceuticals, auto parts and other high-tech products. In November, we prepared over 170 excursions to 35 enterprises, as well as 75 master classes. This season, four new factories have joined the project, which produce Christmas tree decorations, clothing, cable products and printed products,” said Anatoly Garbuzov.

    The new season will see the first tours of the Kolomeyev Christmas tree toy factory. Guests will see how the products are blown and painted. The company makes classic Soviet toys: pine cones, Christmas trees, houses, astronaut figurines, as well as New Year’s decorations for the interior and dolls for the tree. Most of the products are made using traditional technologies and hand-painted by master artists.

    For the first time, the company “Printing House “Tissot”” will welcome visitors. The company’s specialists will show how postcards, books, calendars, folders and other products are produced. In addition, a master class on making notebooks will be held here.

    In addition, Muscovites will be able to visit the production of PLNB Jeans, where jeans, trousers, jackets, shirts and much more are produced. The tour will tell about all stages of preparation and production of products, as well as the history of denim culture and the capital brand.

    At the Spetskabel plant, which will also welcome visitors for the first time, guests will see how modern cable and wire products are manufactured. The company manufactures cables for all industries, including the oil and gas, energy, shipbuilding and space sectors. Many of the company’s developments have no analogues in the world. The plant produces more than 40 thousand kilometers of cable per year.

    The Open Project

    Sobyanin: This year, the project “Open

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

    Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

    http://vvv.mos.ru/nevs/item/145935073/

    MIL OSI Russia News –

  • MIL-OSI Asia-Pac: SFST’s speech at ASIFMA’s 5th Annual Sustainable Finance Conference: Enabling Transition Finance in Asia (English only)

    Source: Hong Kong Government special administrative region

         Following is the speech by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at ASIFMA’s 5th Annual Sustainable Finance Conference: Enabling Transition Finance in Asia today (October 30):

    Distinguished guests, ladies and gentlemen,

         It is both an honour and a privilege to stand before you today at ASIFMA’s 5th Annual Sustainable Finance Conference. I would like to extend my heartfelt gratitude to ASIFMA (Asia Securities Industry & Financial Markets Association) for hosting this significant event, now in its fifth year, and for bringing together an impressive gathering of leaders and advocates in the realm of sustainability. We are here to engage in critical discussions about how we can collectively scale and enable transition finance in Asia – a topic that has never been more urgent.

         Today’s theme, “Enabling Transition Finance in Asia”, reflects a vital aspect of our collective effort to combat climate change. As we know, climate change poses unprecedented challenges to our societies and economies. We must take bold steps to address these challenges. Hong Kong serves as a crucial financial gateway in Asia, bridging the East and West. This unique position makes it an ideal location for managing and channelling investments aimed at sustainable development. With our robust banking system, flourishing financial market, and strong regulatory framework, Hong Kong is well-positioned to facilitate transition finance.

         As we gather here today, we are acutely aware of the challenges that climate change poses to our societies and economies. Today, I would like to outline Hong Kong’s efforts in driving sustainability, encapsulated in four key “C” pillars: Capital, Creation, Commitment, and Collaboration.

    Capital – A vital tool for green financing

         The first “C” is Capital, which highlights Hong Kong’s well-developed capacity for green investment. This is not just a financial mechanism; it is a vital tool for green financing that underpins our commitment to sustainability. Hong Kong has set an ambitious goal to achieve carbon neutrality by 2050, with a target to halve carbon emissions by 2035. To realise these goals, we are implementing a range of policies and initiatives designed to promote green finance and support the transition to a low-carbon economy.

         As Asia’s leading international financial centre and green finance hub, Hong Kong stands ready to channel international investment toward sustainable purposes. Our financial ecosystem is equipped to facilitate a robust green transition. Recent market research estimates that sustainable bond issuance will approach US$1 trillion in 2024. Moreover, it is projected that annual climate investments must reach US$9 trillion by 2030 and US$10 trillion by 2050, underscoring the immense demand for green finance.

         To this end, we launched the Government Green Bond Programme (renamed Government Sustainable Bond Programme) in 2019. This initiative aims to raise funds for government green projects that contribute to sustainable development. I am pleased to report that our issuance has been attracting strong interest from both local and international investors. For example, for the issuance in July this year, our offer of HK$25 billion of bonds attracted more than HK$120 billion equivalent in orders, about five times of the offer size. So far a total of HK$220 billion in government green bonds has been successfully issued, including a diverse array of bonds – retail, institutional, and tokenised – across multiple currencies and tenors. These efforts have effectively raised funds for the Government’s green projects, reinforcing our commitment to fostering a greener future for Hong Kong.

         The momentum towards sustainable investment has gained unprecedented traction in our financial markets. Over 230 ESG (environmental, social, and governance) funds have been authorised by our Securities and Futures Commission, collectively managing over HK$1.3 trillion in assets. This represents a significant year-on-year increase of 19 per cent in the number of funds and an 8 per cent rise in assets. These encouraging statistics reflect a growing recognition among investors of the importance of sustainable finance and their commitment to supporting responsible investment initiatives.

    Creation – innovating the green fintech market

         The second “C” is Creation, which emphasises Hong Kong’s role in innovation for adoption of green fintech. In addition to capital, technology plays a crucial role in green transition. The global shift toward sustainability is not just creating new markets; it is also driving innovation and opening up investment opportunities. The Government recognises that sustainable development and financial innovation must go hand in hand. By positioning Hong Kong as a leader in sustainable finance, we can attract capital, stimulate innovation, and contribute to a more sustainable future for all.

         As we strive to integrate fintech with green finance and accelerate our green transformation, we are actively expanding the green fintech ecosystem. This year in June, we launched the Green and Sustainable Fintech Proof-of-Concept Funding Support Scheme. This initiative aims to provide early-stage funding to technology companies or research institutes conducting green fintech activities, allowing them to collaborate with local enterprises to co-develop new projects that address industry pain points. By facilitating the completion of the commercialisation and proof-of-concept stages, this scheme aims to enable wider adoption of green and sustainable fintech solutions in our local business landscape.

         Fostering partnerships that drive innovation in financial products is another crucial element in promoting sustainable practices and ensuring that our financial systems are resilient and future-ready. Earlier this year, in March, we launched the Prototype Hong Kong Green Fintech Map, developed in collaboration with various stakeholders. This map serves as a one-stop resource, providing comprehensive information on the current status of green fintech companies in Hong Kong and the related services available. By enhancing the visibility of these companies, we support their growth and ultimately contribute to our vision of a greener and more sustainable financial ecosystem.

    Commitment – building a comprehensive foundation

         The third “C” is our commitment to building a comprehensive green finance ecosystem. Recent market studies indicate that approximately 90 per cent of issuance in the green bond market relates to financing climate transition projects. Transition finance encompasses more than just capital; it empowers various industries to evolve towards sustainable practices while acknowledging that the journey to a low-carbon economy varies across sectors.

         The time is ripe for Hong Kong to seize the opportunities ahead in developing a sustainable community. We are committed to enabling transition finance in Asia and working towards a more sustainable future. As part of this commitment, Hong Kong is a forerunner in setting regulatory requirements and guidance for the financial sector. In the recent Policy Address, the Chief Executive announced significant steps towards enhancing our financial reporting framework.

         We will soon launch a roadmap for the full adoption of the International Financial Reporting Standards – Sustainability Disclosure Standards (ISSB Standards). Our goal is clear: We aim for Hong Kong to be among the first jurisdictions to align our local requirements with these internationally recognised standards. This initiative not only underscores our commitment to transparency and sustainability but also positions Hong Kong as a leader in the global financial landscape.

         Transparency and accountability are essential for the success of sustainable finance. As a crucial initial step, Hong Kong Stock Exchange has introduced new climate-related disclosure requirements. These requirements, developed based on the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures, will be implemented for listed companies under a phased approach starting next year. These initiatives reflect our ongoing efforts to foster a sustainable environment that resonates throughout our financial ecosystem.

    Collaboration – the key to a sustainable future

         The last “C”, but certainly not least, is collaboration. While government initiatives are crucial, the transition to a sustainable economy cannot be achieved in isolation. It requires collaboration among all stakeholders – the Government and regulators, financial institutions, corporations, and the community.

         In 2020, the Government established the Green and Sustainable Finance Cross-Agency Steering Group, comprising representatives from various sectors. This group is working diligently to formulate strategies that enhance Hong Kong’s role as a green finance hub and engage industry participants and relevant stakeholders to advance sustainable finance in Hong Kong.

         As we look ahead, we are also mindful of the international context.  In just a few weeks, the global climate challenge will be front and centre at COP29 (29th Conference of the Parties to the United Nations Framework Convention on Climate Change) in Azerbaijan. This conference presents an opportunity for world leaders to ramp up climate action and provide stronger protections for those on the frontlines of climate change. COP29 is being billed as the “finance COP”, a pivotal moment for countries to establish a new global climate finance goal. We look forward to actively exploring collaboration with other regions on zero-carbon projects and initiatives, enhancing our collective capacity to address these urgent challenges.

    Closing

         In closing, the journey to a sustainable future is one that requires capital, creation, commitment, and collaboration. As we gather here today, we reaffirm our shared responsibility to enable transition finance in Asia and harness the power of finance to drive meaningful change. Together, we can create a better world for future generations.

         Your commitment to advancing the agenda of sustainable finance in Asia is truly inspiring. I am grateful for your attention to this pressing global issue, and I look forward to the fruitful discussions and insights that will emerge from today’s conference. Together, let us turn our vision of a sustainable future into a reality.

         Thank you.

    MIL OSI Asia Pacific News –

  • MIL-OSI: INVL Technology Interim unaudited information for 9 months of 2024

    Source: GlobeNewswire (MIL-OSI)

    Equity of the Company and the Company’s net asset value as of 30 September 2024 was EUR 44.44 million or EUR 3.71 per share. At the end of 2023, these figures were EUR 43.53 million and EUR 3.61 respectively.

    Investments of the Company into managed companies amounted to EUR 44.83 million at the end of September 2024 and EUR 34.20 million at the end of September 2023.

    The net profit of the Company for 9 months of 2024 was EUR 1.11 million, the net loss of the Company for 9 months of 2023 amounted EUR 538 thousand.

    Additional information:

    INVL Technology, a company that invests in IT businesses, had an equity and a net asset value of EUR 44.44 million at the end of September this year, which is 2.1% more than at the start of the year. Their per share value of its equity and NAV was EUR 3.7067 and was up 2.8% from the start of the year.

    INVL Technology had an unaudited net profit of EUR 1.11 million in nine months of 2024, compared to a loss of EUR 0.538 million in the same period last year.

    “INVL Technology’s portfolio companies, which work in the areas of cybersecurity, artificial intelligence, and the development and deployment of supercomputers and information systems, are growing their revenues and profit. In selling the business, we hope to attract the interest of international and regional investors,” says Kazimieras Tonkūnas, INVL Technology’s managing partner.

    In mid-March this year, the company announced that it had signed an agreement with the Zurich branch of M&A intermediation service provider Corum Group’s Luxembourg-based unit Corum Group International, to advise and serve as M&A intermediary on the sale of the company’s portfolio of businesses.

    Performance of INVL Technology’s portfolio companies

    INVL Technology’s portfolio companies had aggregated revenues of EUR 47.60 million in the January-September, which is 12.5% more than in the same period last year. Their gross profit increased 14.5% in the same period of comparison to EUR 13.22 million, while their aggregated EBITDA grew 2.2 times larger to EUR 3.45 million.

    INVL Technology owns and manages the cybersecurity company NRD Cyber Security, the GovTech company NRD Companies, and the Baltic IT company Novian.

    NRD Cyber Security, which also owns NRD Bangladesh, in January-September of 2024 increased its consolidated revenue by 26.74% from the same period last year to EUR 5.853 million. The company’s gross profit grew 14.9% in the period of comparison to EUR 3 million, while its EBITDA rose 28.9% to EUR 941,000.

    NRD Companies had consolidated revenue of EUR 6.88 million in the first nine months of this year, which is 17.9% less than in the same period of 2023. The company earned a gross profit of EUR 3.3 million, or 9.3% more than in January-September last year, while the group’s EBITDA decreased by 2.1% to EUR 0.69 million. Norway-based NRD Companies has the subsidiaries Norway Registers Development in Norway, with a branch in Lithuania, and NRD Systems and Etronika in Lithuania.

    Novian had aggregated revenues of EUR 31.54 million in January-September 2024, 18.6% more than in the same period of 2023, while its gross profit of EUR 6.12 million was 24.2% larger than a year earlier. The Novian group’s EBITDA for the first three quarters of this year increased 6.7 times versus the same period of 2023 to EUR 1.799 million. The group consists of Novian in Lithuania with the technology-area businesses Novian Technologies, Zissor in Norway, Novian Eesti in Estonia, Andmevara in Moldova, and Novian Rwanda (earlier Norway Registers Development Rwanda) in Rwanda, and the software services businesses Novian Systems and Novian Pro in Lithuania.

    INVL Technology’s managing partner Kazimieras Tonkūnas notes that the companies are expected to deliver good results for the full year 2024 as well.

    INVL Technology, which is managed by INVL Asset Management, the leading alternative asset manager in the Baltics, is a closed-end investment company which must exit its investments no later than mid-July 2026 and distribute the money to shareholders.

    The person authorized to provide additional information:
    Kazimieras Tonkūnas
    INVL Technology Managing Partner
    E-mail k.tonkunas@invltechnology.lt

    Attachment

    The MIL Network –

  • MIL-OSI: Sampo Group’s results for January–September 2024 will be published on 6 November 2024

    Source: GlobeNewswire (MIL-OSI)

    Sampo plc, press release, 30 October 2024 at 10:00 am EET


    Sampo Group’s results for January–September 2024 will be published on 6 November 2024

    Sampo Group will publish the Interim Statement for January–September 2024 on 6 November between 9:30 am and 10:00 am Finnish time (7:30-8:00 am UK time). The report, the investor presentation, and a video review with Group CEO Torbjörn Magnusson will be available at www.sampo.com/result.

    Conference call

    6 November at 2:30 pm Finnish time (12:30 pm UK time)

    To ask questions, please join the teleconference by registering using the following link:  https://palvelu.flik.fi/teleconference/?id=50048816.

    After the registration, you will be provided with phone numbers and a conference ID to access the conference. To ask a question, please press #5 on your telephone keypad to enter the queue.

    Group CEO Torbjörn Magnusson, Group CFO Knut Arne Alsaker, CEO of If P&C Morten Thorsrud, CEO of Hastings Toby van der Meer, and Head of IR Sami Taipalus will attend the conference call for investors and analysts.

    The conference call can also be followed live at www.sampo.com/result. A recorded version and a transcript will later be available at the same address.

    SAMPO PLC
    Investor Relations and Group Communications


    Further information:

    Maria Silander
    Communications Manager, Media Relations
    tel. +358 10 516 0031


    Distribution:
    The principal media
    www.sampo.com

    The MIL Network –

  • MIL-OSI Africa: Islamic Corporation for the Development of the Private Sector (ICD) Commits Eur 40 Million to Nakkas- Basaksehir Section of Türkiye’s Northern Marmara Highway Project

    Source: Africa Press Organisation – English (2) – Report:

    ISTANBUL, Turkey, October 30, 2024/APO Group/ —

    • ICD is investing EUR 40 million in the Nakkaş-Başakşehir section as part of a EUR 1.04 billion funding package.
    • The project incorporates solar energy and LED lighting, aiming to cut energy use and emissions significantly.
    • It’s backed by a consortium led by Rönesans Holding, with support from MDBs and ECAs.

    The Islamic Corporation for the Development of the Private Sector (ICD) (www.ICD-ps.org) has signed a EUR 40 million to co-finance the Nakkaş-Başakşehir section of Türkiye Northern Marmara Highway Project.

    The Project  aimes to enhance Istanbul’s east-west connectivity, improve road safety and reduce congestion. It is being developed under a build-operate-transfer agreement by a consortium led by Rönesans Holding A.Ş. in partnership with Samsung C&T Corporation and other Korean investors. It involves a 31.3-km toll road, including a 1.6-km cable-stayed bridge and multiple overpasses and underpasses.

    ICD’s EUR 40 million contribution is part of a broader EUR1.04 billion senior debt package, fully financed by international institutions, including the European Bank for Reconstruction and Development (EBRD), the Asian Infrastructure Investment Bank (AIIB), the Islamic Development Bank (IsDB), alongside Atradius and SERV as European export credit agencies, ICIEC, and a consortium of commercial lenders.

    Thanks to Solar Energy Production System to be installed within the scope of the Nakkaş-Başakşehir project, which has “sustainability” at the center of its design, the clean energy obtained from solar panels will meet the energy needs of the highway’s operation and management (O&M) center and service stations.

    The installation of over 4,500 LED lamps, replacing sodium lamps, will cut energy consumption by 37.5%, saving over 35 MWh. Within the scope of the project, in which all O&M highway vehicles are planned to be hybrid or electric, it is expected to save approximately 112 thousand liters of fuel annually.

    While the Nakkaş-Başakşehir Highway Project is expected to prevent 7.9 million tons of greenhouse gas (GHG) emissions in 30 years, in particular, it will reduce particulate matter (PM) emissions by 1,399 tons, nitrogen oxides (NOx) by 58,699 tons and sulfur dioxide (SO2) by 95 tons. tons reduction is aimed.

    MIL OSI Africa –

  • MIL-OSI United Kingdom: Labour urged to use wealth tax on super-rich to fund green transition

    Source: Scottish Greens

    30 Oct 2024 Finance

    By taxing the super wealthy we can fund our shift to a fairer, greener and better economy.

    More in Finance

    The Labour government must tax the super-rich and polluters to fund our green transition and tackle the climate and nature emergencies, say the Scottish Greens.

    Speaking ahead of today’s UK Budget statement, the party’s Co-leader, Lorna Slater, has urged the Chancellor to apply a wealth tax on the wealthiest 1% of households in the UK – those with assets worth £3.4 million and above.

    Analysis from the University of Greenwich suggests that this tax would raise over £70 billion a year and potentially up to £130 billion. 

    Ms Slater said:

    “The world is burning around us. We urgently need to see climate leadership from Downing Street.

    “There is more than enough money to support our transition to a greener future and create thousands of high quality, well paid green jobs, but so much of it is being hoarded by a tiny number of extremely wealthy people who don’t need it.

    “The solution is staring us right in the face. By asking the richest people and corporations to pay their fair share we can transform our economy and protect future generations.

    “Making the change is essential for our climate, but it is also crucial for our economy. The UK has a huge opportunity, but it has been squandered by 14 years of a Tory government that actively undermined our climate efforts while giving handouts and tax breaks to its super-wealthy friends and donors.

    “Labour must show the level of ambition that is needed by making a generation-defining investment in clean, green renewable energy and nature restoration and ending the climate vandalism of the Tories.”

    Ms Slater added:

    “The pain that households and families have suffered over the last 14 years was not inevitable. The cuts and austerity were a political choice, and one that Labour has doubled down on by cutting Winter Fuel Payments and refusing to lift the cruel two child cap. Labour can put an end to the cuts and support vital services like our NHS and schools.”

    The tax, supported by the Scottish Greens, would start at a marginal rate of 1%, rising to 5% for those with £5.7 million or more (the richest 0.5%), and 10% for those with £18.2 million (the richest 0.15%). 

    MIL OSI United Kingdom –

  • MIL-OSI Asia-Pac: LCQ6: BUD Fund

    Source: Hong Kong Government special administrative region

         Following is a question by Dr the Hon Kennedy Wong and a reply by the Secretary for Commerce and Economic Development, Mr Algernon Yau, in the Legislative Council today (October 30):
     
    Question:
     
         In recent years, the Government has launched many enhancement measures to the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund). In this connection, will the Government inform this Council:
     
    (1) given that the Government launched the “E-commerce Easy” under the BUD Fund on July 15 this year, with a view to assisting enterprises in opening up the Mainland market through developing electronic commerce (e-commerce) business, of the respective numbers of relevant applications received and approved by the Government so far, as well as the average and maximum amounts of funding involved;
     
    (2) given that at present, enterprises applying for the BUD Fund are required to provide proof of substantive operations and commercial transactions in Hong Kong, but it is learnt that many enterprises with trademarks and other intellectual property rights registered in Hong Kong have substantive operations on the Mainland and overseas, thus rendering them unable to successfully apply for the Fund, and there are views that the original intention of the Fund is to assist enterprises in enhancing their competitiveness, whether the Government will, in the light of the relevant situation, review the eligibility criteria for applying for the Fund; if so, of the details; if not, the reasons for that; and
     
    (3) given that there are views pointing out that the application of artificial intelligence (AI) in cross-border e-commerce is particularly innovative, such as the use of AI key opinion leaders for marketing of goods, whether the authorities will consider expanding the funding coverage of “E-commerce Easy” to include the application of AI, thereby enabling enterprises to make better use of the funding to establish marketing systems; if so, of the details; if not, the reasons for that?
     
    Reply:
     
    President,
     
         The Government is dedicated to assisting Hong Kong enterprises, including small and medium enterprises (SMEs) and start-ups, in developing brands, upgrading business operations and enhancing competitiveness. One such measure is the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund), which provides funding support for non-listed Hong Kong enterprises to develop business in the Mainland and 38 economies with which Hong Kong has signed free trade agreements and/or investment promotion and protection agreements.
     
         The reply to the three parts of the question is as follows:
     
    (1) With a view to assisting Hong Kong enterprises in developing the Mainland sales market through electronic commerce (e-commerce) business, the Government launched “E-commerce Easy” under the BUD Fund on July 15 this year to allow enterprises to make use of $1 million funding flexibly within the cumulative funding ceiling of $7 million per enterprise to implement e-commerce projects on the Mainland. Since the launching of “E-commerce Easy”, the number of applications received has been gradually increasing for each month. As at end September this year, 102 applications have been received. So far, eight applications have been approved or approved with conditions. Other applications are being processed earnestly by the BUD Fund Secretariat, the Hong Kong Productivity Council, which will complete the vetting as soon as possible upon receipt of clarification on the questions raised by the Secretariat and supplementary documents from applicant enterprises. So far, the average funding amount of the approved applications is about $470,000, whereas the largest funding amount approved is about $990,000.
     
    (2) The BUD Fund aims to assist Hong Kong enterprises in exploring more diversified markets through developing brands, upgrading business operations and developing sales. As such, the application eligibility is enterprise-based, requiring that an applicant enterprise must be registered in Hong Kong under the Business Registration Ordinance (Cap. 310) and has substantive business operations in Hong Kong, but is not premised on the registration location of the relevant intellectual property rights.
     
         Since the setting up of the BUD Fund in 2012, the requirement of having substantive business operations in Hong Kong has been in place, and was specified in the relevant Legislative Council Finance Committee paper for setting up the BUD Fund. As such, enterprises which solely operate outside Hong Kong do not meet the application eligibility. Considering that the BUD Fund involves public funds, we should focus the resources on enterprises with substantive business operations in Hong Kong in order to maximise the benefits brought about by the BUD Fund to Hong Kong’s economy and to such enterprises, thereby meeting the public expectation. We have no plan to relax this requirement.
     
         In fact, many Hong Kong enterprises have developed the Mainland and overseas markets with the BUD Fund’s support, including establishing new offices and retail points at target markets, purchasing machinery/equipment, placing advertisements, thereby benefiting their business operations in both Hong Kong and outside markets. Past success stories of different types of applications are set out on the website of the BUD Fund for the reference of applicant enterprises.
     
         Since the launching of the BUD Fund in 2012, the Government has kept on reviewing and enhancing its operational arrangements from time to time, having regard to market changes and the needs of the trade. Over the years, the Government has launched a number of enhancement measures, including expanding the geographical scope of the BUD Fund in phases from only the Mainland originally to 39 economies at present, gradually increasing the cumulative funding ceiling per enterprise from $500,000 to $7 million, launching “Easy BUD” in June 2023 to expedite the processing of applications involving designated measures with a smaller funding amount, as well as launching “E-commerce Easy” in July this year to assist enterprises in developing the Mainland sales market through e-commerce business.
     
         In the 2024 Policy Address released earlier, the Chief Executive announced the injection of $1 billion into the BUD Fund to assist SMEs in upgrading their business operations and developing new markets. In view of the rapid development of the e-commerce market of the Association of Southeast Asian Nations (ASEAN), and that the ASEAN is Hong Kong’s second-largest trading partner, the geographical coverage of “E-commerce Easy” will be expanded to the 10 ASEAN countries to support enterprises to develop the ASEAN market through digital transformation. We will also provide more targeted funding support for SMEs to implement green transformation projects. We expect that the above measures will be rolled out in the first half of 2025.
     
    (3) The funding scope of the BUD Fund – “E-commerce Easy” is broad and covers many measures related to e-commerce, including the establishment of online stores on third-party online sales platforms and placing advertisements (including the engagement of ambassadors/key opinion leaders to promote products), development and enhancement of mobile applications and websites (such as adding online payment function and chatbot on enterprises’ websites). On the condition that the existing guidelines and other funding criteria can be satisfied, the use of technological services or plans (including artificial intelligence technology) by enterprises to implement the above measures for developing e-commerce business is within the funding scope of “E-commerce Easy”.

    MIL OSI Asia Pacific News –

  • MIL-OSI USA: FACT SHEET: President  Biden and Vice President Harris Announce New Actions and Investments to Advance Educational and Economic Opportunity for Latino Communities Across the  Country

    US Senate News:

    Source: The White House
    Today, President Biden will ceremonially sign Executive Order (EO) 14124, establishing the White House Initiative on Advancing Educational Equity, Excellence, and Economic Opportunity Through Hispanic-Serving Institutions (HSIs), alongside nearly two dozen champions for these institutions and Latino communities. President Biden and Vice President Harris will also announce nearly $19 million in transformational investments for five HSIs in Florida, Illinois, Texas, and Puerto Rico to build research infrastructure. These efforts build on the Administration’s historic investment of over $16 billion in more than 500 HSIs across 30 states, the District of Columbia, and Puerto Rico that educate more than 4.7 million students annually.
    Over the past three years, President Biden and Vice President Harris have taken historic actions to expand opportunity for Latino families and communities, including: creating more than 15 million jobs – with 5 million created for Latinos, helping Latino entrepreneurs start new businesses at the fastest rate in over 10 years, addressing our broken immigration system, and working to ensure equitable educational opportunity for students.
    Today, the Biden-Harris Administration is announcing new actions to advance educational opportunities for students at HSIs and giving them a fair shot at achieving the American dream. 
    Advancing Educational Equity, Excellence, and Economic Opportunity through HSIs
    With student enrollment that is at least one-quarter Latino, HSIs are engines of economic mobility, propelling high numbers of students from low-income backgrounds and first-generation college students into good jobs and brighter futures. Today, President Biden will ceremonially sign EO 14124 to strengthen the Federal Government’s commitment to advancing opportunity for HSIs and the students they serve.
    The EO creates a new Initiative and first-ever President’s Board of Advisors on HSIs to:
    Increase awareness of opportunities for HSIs to equally participate in Federal programs and enhance the capacity of HSIs to meet the educational needs of their students.
    Identify best practices for HSIs to scale effective strategies, programs, and initiatives to support the educational success and economic mobility of their students.
    Improve the ability of HSIs to align program offerings with the economic needs of the Nation and their local economies, especially in Science, Technology, Engineering, Math, and teaching.
    Coordinate efforts to help HSIs become or remain fiscally secure institutions.
    Foster cross-sector collaboration among HSIs and philanthropic, public, and private sector organizations.
    Strengthen Federal recruitment activities at HSIs to build accessible and equal pathways into Federal career opportunities for HSI students, faculty, staff, and alumni.
    Provide tools, data, and analytics to support HSIs in improving educational equity, excellence, and economic opportunity for students.
    Investing Additional $19 Million in Research Infrastructure at HSIs
    To remain the most competitive economy in the world, the Nation’s most inclusive institutions of higher education must continue to lead in research and development. Yet too many HSIs report having unmet infrastructure needs that hold back their ability to engage in research that will propel forward these institutions, their students, and the nation as a whole.
    To help address these needs, the Biden-Harris Administration established the Department of Education’s Research and Development Infrastructure Program (RDI) for the colleges and universities that play a central role in educating students from diverse backgrounds. The program provides funds to Historically Black Colleges and Universities (HBCUs), Tribally Controlled Colleges and Universities (TCCUs), and Minority Serving Institutions (MSIs)—including HSIs— to implement transformational investments in research infrastructure, including research productivity, faculty expertise, graduate programs, physical infrastructure, human capital development, and partnerships leading to increases in external funding.
    Today, the Biden-Harris Administration announced nearly $19 million in new grants to five HSIs to build their research and physical infrastructure including—
    Florida Atlantic University in Boca Raton, Florida received $1.1 million.
    National Louis University in Chicago, Illinois received $3 million.
    Sam Houston State University in Houston, Texas received $5 million.
    Texas A&M University Corpus Christi in Corpus Christi, Texas received $4.7 million.
    University of Puerto Rico on the Rio Piedras Campus received $5 million.
    The $19 million in grants to HSIs was a part of $49 million in RDI grants to 13 HBCUs, TCCUs, and MSIs.
    Building on Historic Investments in HSIs
    Today’s announcements build on President Biden and Vice President Harris’ historic investments of over $16 billion in direct funding to HSIs, including through COVID relief funds and the Department of Education’s federal grant program funds.
     The chart below provides a state-by-state breakdown of funding to date.
    State 
    Total Funds Received by HSIs in the State 
    AR 
    $11,356,918
    AZ 
    $739,602,657
    CA 
    $6,389,050,269
    CO 
    $290,670,467
    CT 
    $81,522,902
    DC 
    $10,396,350
    FL 
    $1,524,890,025
    GA 
    $96,526,460
    ID 
    $12,477,969
    IL 
    $664,298,648
    IN 
    $20,049,711
    KS 
    $20,869,761
    MA 
    $110,295,475
    MD 
    $68,836,836
    MN 
    $12,999,876
    NC 
    $10,750,057
    NE 
    $1,211,270
    NJ 
    $582,987,076
    NM 
    $399,198,109
    NV 
    $336,899,054
    NY 
    $327,800,182
    OH 
    $875,529
    OK 
    $9,372,922
    OR 
    $58,864,009
    PA 
    $66,357,824
    PR 
    $1,135,872,342
    RI 
    $48,066,707
    TN 
    $7,383,933
    TX 
    $3,433,719,411
    VA 
    $14,730,892
    WA 
    $124,035,244
    WI 
    $23,119,648
    Grand Total 
    $16,635,088,533

    MIL OSI USA News –

  • MIL-OSI: Solidion Develops a Lithium Battery that can be Charged in 5 minutes With Key Newly Granted US Patent

    Source: GlobeNewswire (MIL-OSI)

    DAYTON, Ohio, Oct. 30, 2024 (GLOBE NEWSWIRE) — Solidion Technology, Inc. (ticker “STI”), an advanced battery technology solutions provider, today announced that its battery scientists have successfully developed a cost-effective strategy for enabling completion of charging in 5 minutes for a wide range of lithium batteries.

    Range anxiety, the fear that an electric vehicle (EV) may run out of battery power during a trip, has long been regarded as a key reason for consumers’ reluctance to adopt EVs. This issue is exacerbated by the notion that recharging batteries usually takes much longer time than refueling internal combustion engine vehicles (ICEVs).

    To be competitive with ICEVs, fast charging of EVs should be weather-independent and comparable in time as refueling a gasoline car. Variations in temperatures in different geographic regions and seasons poses a challenge in fast charging EV batteries, since batteries can behave very differently. In winter, half of the United States and most of Northern Europe has an average temperature below 0°C. None of today’s EV batteries allow for fast charging at low temperatures.

    Responsive to EV market’s urgent need for a battery that can be fast charged at all climate conditions, Solidion’s technical team has developed and patented an effective method and system for fast charging a battery cell or pack without negatively impacting the battery. The strategy also allows a battery system to operate in a safe mode and avoid a thermal runaway problem.

    The technology uses a graphene-based heat spreader to quickly move heat from a battery to warm it up before or during fast charging. It also has a cooling system that kicks in when the battery is in use, like when powering a device or electric vehicle. The heat spreader moves the heat to the cooling system for efficient cooling. The system switches between heating when charging and cooling when discharging. Graphene, with its super high thermal conductivity (5,300 W/m-K), is much more effective than copper, which has a lower conductivity (410 W/m-K) and is four times heavier.

    Solidion is aimed at fully commercializing this technology in 2-3 years.

    About Solidion Technology, Inc.

    Headquartered in Dallas, Texas, with production facilities in Dayton, Ohio, Solidion’s core business includes manufacturing of battery materials and components, as well as development and production of next-generation batteries for energy storage systems and electric vehicles for ground, air, and sea transportation. Recognized as a global IP leader in both the high-capacity anode, utilizing a non-silane based solution, and the high-energy solid-state battery. Solidion is uniquely positioned to offer two lines of battery products: (i) advanced anode materials (ready for production expansion); and (ii) three classes of solid-state batteries, including Silicon-rich all-solid-state lithium-ion cells (Gen 1), anodeless lithium metal cells (Gen 2), and lithium-sulfur cells (Gen 3), all featuring an advanced polymer- or polymer/inorganic composite-based solid electrolyte that is process-friendly. Solidion’s solid-state batteries can be manufactured at scale using current lithium-ion cell production facilities; this feature enables fastest time-to-market of safe solid-state batteries. Solidion batteries are designed to deliver significantly extended EV range, improved battery safety, lower cost per KWh, fastest time-to-market, and next-gen cathodes (potential to replace expensive nickel and cobalt with sulfur (S) and other more abundant elements).

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Solidion Technology Inc., (Nasdaq: STI) (the “Company,” “Solidion,” “we,” “our” or “us”) desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “forecasts” “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements primarily on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs.

    Contacts

    For Investors: ir@solidiontech.com

    For Media: press@solidiontech.com

    The MIL Network –

  • MIL-OSI: CSW Industrials Reports Record Fiscal 2025 Second Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    DALLAS, Oct. 30, 2024 (GLOBE NEWSWIRE) — CSW Industrials, Inc. (Nasdaq: CSWI or the “Company”) today reported record results for the fiscal 2025 second quarter period ended September 30, 2024.

    Fiscal 2025 Second Quarter Highlights (comparisons to fiscal 2024 second quarter)

    • Total revenue increased 11.9% to an all-time quarterly high of $227.9 million, driven by organic growth of 6.2% and inorganic growth of 5.7% from the recent acquisitions of Dust Free and PSP Products
    • Net income attributable to CSWI increased 20.0% to $36.1 million, compared to $30.1 million
    • Earnings per diluted share (“EPS”) increased 17.1% to $2.26, compared to $1.93
    • EBITDA grew 14.8% to $60.8 million, including margin expansion of 70 bps to 26.7%
    • Cash flow from operations increased 49.5% to $66.8 million, compared to $44.7 million
    • Issued and sold 1.265 million shares of stock at $285 per share in a successful follow-on equity offering, resulting in net proceeds of $347.4 million
    • Paid down $115.0 million, or all outstanding debt on the revolver following the equity offering, further improving the strength of the balance sheet

    Fiscal 2025 First Half Highlights (comparisons to fiscal 2024 first half)

    • Total revenue increased 11.6% to $454.1 million, of which 7.0%, or $28.3 million was organic growth, and $18.8 million, or 4.6%, was inorganic growth from recent acquisitions
    • Net income attributable to CSWI increased 23.0% to $74.6 million, as compared to $60.7 million
    • EPS improved 21.5% to $4.73, compared to $3.90
    • EBITDA increased 17.4% to $126.1 million, including margin expansion of 140 bps to 27.8%
    • Cash flow from operations increased 36.4% to $129.5 million, compared to $94.9 million
    • Invested $32.3 million in acquisitions and $8.6 million in organic capital expenditures, while returning total cash of $15.4 million to shareholders through share repurchases of $8.9 million and dividends of $6.5 million

    Comments from the Chairman, President, and Chief Executive Officer

    Joseph B. Armes, CSW Industrials’ Chairman, President, and Chief Executive Officer, commented, “I am pleased to announce these outstanding results for the fiscal second quarter of 2025. CSWI’s record revenue for the quarter was driven by organic volume growth, pricing actions, and our strategic acquisitions of Dust Free and PSP Products. The team also achieved all-time record operating cash flow and record fiscal second quarter net income, earnings per diluted share, and EBITDA for the quarter.”

    Armes continued, “During the second fiscal quarter 2025, CSWI issued equity to the public for the first time in our history. Strong investor demand, after the public announcement of our follow-on equity offering, allowed the Company to issue a total of 1.265 million shares of common stock proving that our track record of building long-term shareholder value is attractive to both pre-existing and new shareholders, while also being accretive to our earnings due to the full repayment of our debt and investment in interest-bearing accounts. In addition, our disciplined capital allocation philosophy led us to acquire PSP Products in the quarter, adding innovative products within the profitable electrical end market for CSWI. Subsequent to quarter end, the Company announced a mid-year, 14% increase in our quarterly cash dividend, reflecting our strong balance sheet, cash flows, and profitability.”

    Fiscal 2025 Second Quarter Consolidated Results

    Fiscal second quarter revenue was $227.9 million, a $24.3 million or 11.9% increase over the prior year period. Total revenue growth included $12.7 million of organic growth contributed from all operating segments (6.2% of the total 11.9% growth) due to increased volume and pricing actions, with the remainder contributed by the Dust Free and PSP acquisitions, which are both reported in the Contractor Solutions segment.

    Gross profit in the fiscal second quarter was $103.9 million, representing 14.2% growth over $91.0 million in the prior year period. Gross profit margin expanded 90 bps to 45.6%, compared to 44.7% in the prior year period. The gross profit margin increase was primarily a result of volume leverage and pricing actions.

    Operating expenses as a percentage of revenue were 23.0% in the current period, which was below the prior year period of 24.0%. Operating expenses were $52.4 million in the current year period, compared to $49.0 million in the prior year period and we were able to leverage our revenue growth while absorbing additional expenses related to the recent acquisitions, spending on business development and integration, and investing in team members.

    Operating income in the current period was $51.5 million, compared to $42.0 million in the prior year period. Operating income as a percentage of revenue was 22.6% in fiscal 2025 second quarter, compared to 20.6% in the prior year period. The 200 bps improvement in operating income margin was a result of the previously mentioned improvement in the gross profit margin and leverage on operating expenses.

    Interest expense was $1.3 million, compared to interest expense of $3.3 million in the prior year period. The decrease of $2.0 million was a result of a lower debt balance throughout the quarter and paying off the outstanding balance borrowed against our revolver and interest income earned from the net proceeds of the equity offering.

    Other expense was $0.7 million, compared to other income of $1.9 million in the prior year period. The change in other expense of $2.6 million was primarily related to a gain of $1.4 million reported in the previous period in connection with the sale of a property previously held for investment that did not recur, in addition to losses arising from transactions in currencies other than functional currencies.

    Net income attributable to CSWI (net of non-controlling interest in the joint venture) increased 20.0% to $36.1 million, compared to the prior year period of $30.1 million, and EPS increased 17.1% to $2.26, compared to $1.93 in the prior year period.

    Fiscal 2025 second quarter EBITDA increased 14.8% to $60.8 million, up from $53.0 million in the prior year period. EBITDA margin expanded 70 bps to 26.7%, compared to 26.0% in the prior year period.

    During the fiscal second quarter 2025, the Company issued equity to the public for the first time. On September 4, 2024, CSWI announced the commencement of an underwritten public offering of one million shares of common stock. The following day, the Company announced the upsize of the public offering to 1.1 million shares of common stock at a price of $285 per share, plus an option for the underwriters to purchase up to an additional 165 thousand shares. In the aggregate, CSWI was able to issue and sell 1.265 million shares of common stock at $285 for proceeds of approximately $347.4 million, net of underwriting discount and expenses incurred directly related to the offering. The follow-on equity offering increased the Company’s weighted average shares outstanding, used in determining the diluted EPS, by 336 thousand for the fiscal 2025 second quarter and 169 thousand for the first half of fiscal 2025.

    During the fiscal second quarter, the Company paid down $115.0 million of debt, resulting in no borrowings outstanding under the revolving line of credit at quarter end, utilizing the record quarterly cash flows from operations of $66.8 million and the cash received from our follow-on equity offering. Cash flows from operations benefited from a $16.8 million tax payment deferral from fiscal first half 2025 to fiscal third quarter 2025 under a temporary federal tax relief related to the severe storms and flooding in Texas in early 2024.

    Following quarter-end, the Company announced its twenty-third consecutive regular quarterly cash dividend. This dividend was increased by $0.03, or 14.3%, from the prior quarter to $0.24 per share due to our strong balance sheet, cash flows and profitability, and will be paid on November 8, 2024, to shareholders of record on October 25, 2024.

    The Company’s effective tax rate for the fiscal second quarter was 26.1%. The third quarter GAAP tax rate may be lower than average, due to a potential $3.6M release of uncertain tax position reserves upon statue expiration of several pre-acquisition tax returns for TRUaire and Falcon.

    Fiscal 2025 Second Quarter Segment Results

    The Contractor Solutions segment revenue was $158.8 million, an $18.9 million or 13.5% increase over the prior year period, comprised of organic growth of $7.3 million (5.2% of the total 13.5% growth) driven by increased organic unit volumes and pricing actions, and inorganic growth of $11.6 million from the recent acquisitions of Dust Free and PSP Products. As compared to the prior year period, net revenue growth was driven by the HVAC/R, electrical, and plumbing end markets. Segment operating income improved to $46.3 million, compared to $39.0 million in the prior year period. The incremental profit resulted from revenue growth, gross profit leverage, and the inclusion of recently acquired businesses and was partially offset by increased spending on business integrations, strategic development activities, and employee compensation. Segment operating income margin in the fiscal second quarter was 29.1%, compared to 27.9% in the prior year period. Segment EBITDA in the fiscal second quarter was $53.7 million, or 33.8% of revenue, compared to $46.6 million, or 33.3% of revenue in the prior year period.

    The Specialized Reliability Solutions segment revenue was $38.5 million, a $1.9 million or 5.2% increase from the prior year period. The increased net revenue was driven by growth in the energy, rail transportation, and mining end markets. Segment operating income improved to $5.8 million, as compared to $4.8 million in the prior year period, an increase of 20.5%. Segment operating income margin in the fiscal second quarter improved to 15.1%, compared to the prior year period of 13.2% as a result of manufacturing efficiencies. Segment EBITDA improved by 13.2% to $7.1 million in the fiscal second quarter, with an EBITDA margin of 18.4% as compared to 17.2% in the prior year period.

    The Engineered Building Solutions segment revenue was a record $32.7 million, or 11.9% increase compared to $29.2 million in the prior year period, driven by strength in the backlog converting to revenue and market expansion. Segment operating income was $6.1 million, or 18.6% of revenue, compared to the prior year period of $5.2 million, or 17.9% of revenue, due to the management of operating expenses. Segment EBITDA and EBITDA margin also improved to $6.6 million and 20.1% in the fiscal second quarter, compared to $5.7 million and 19.5% in the prior year period.

    Fiscal 2025 First Half Consolidated Results

    Fiscal first half revenue was $454.1 million, representing 11.6% growth from $407.0 million in the prior year period, with growth in all three reporting segments. Of the $47.1 million total growth, $28.3 million (7.0% of the 11.6% total growth) resulted from organic growth, with the remainder ($18.8 million) contributed by the Dust Free and PSP acquisitions.

    Gross profit in the fiscal first half was $211.3 million, representing $28.2 million (15.4%) growth from $183.1 million in the prior year period, with the incremental profit resulting predominantly from revenue growth driven by increased unit volumes, a slight increase from pricing actions, and recent acquisitions. Gross profit as a percentage of sales was 46.5%, compared to 45.0% in the prior year period. Gross margin improvement was a result of leveraging the volume increase, favorable product mix and pricing actions.

    Operating expenses as a percentage of revenue were 23.1%, compared to 23.6% in the prior year period, as the increase in revenue growth outpaced operating expenses. Operating expenses in the current year period were $104.7 million, compared to $95.9 million in the prior year period. The additional expenses were related to employee compensation, expenses related to recent acquisitions including amortization of intangible assets, business development expenses, and integration costs.

    In the current period, operating income was $106.6 million, compared to $87.2 million in the prior year period. The incremental operating income resulted from the gross profit increase, partially offset by the operating expense increase as discussed above. Operating income margin in the current period improved to 23.5%, compared to the prior year period of 21.4%. During the comparative periods, the enhanced operating income margin was due to the improvement in gross profit margin combined with the management of operating expenses.

    Interest expense was $3.9 million, compared to interest expense of $7.3 million in the prior year period. The decrease of $3.4 million was a result of a lower debt balance throughout the first half of the year, then paying off the outstanding balance borrowed against our revolver and interest income earned from the net proceeds of the equity offering.

    Other expense was $0.4 million, compared to other income of $2.2 million in the prior year period. The change in other expense of $2.6 million was primarily related to the aforementioned gain of $1.4 million, in addition to losses arising from transactions in currencies other than functional currencies.

    In the current period, reported net income attributable to CSWI improved to $74.6 million, or $4.73 per diluted share. In the prior year period, reported net income attributable to CSWI was $60.7 million, or $3.90 per diluted share.

    Fiscal 2025 first half EBITDA increased 17.4% to $126.1 million from $107.4 million in the prior year period. EBITDA as a percentage of revenue improved 140 bps to 27.8%, compared to 26.4%, in the prior year period.

    Net cash provided by operating activities for the fiscal 2025 first half was a record $129.5 million, compared to $94.9 million in the prior year’s first half, as improved profit, and the tax payment deferrals led to a 36.4% increase compared to the prior year period. The Company paid down all $166.0 million of debt in the first half utilizing our record cash flow from operations and net proceeds from the follow-on equity offering.

    The Company’s effective tax rate for the fiscal first half was 26.2% on a GAAP basis.

    Fiscal 2025 First Half Segment Results

    Contractor Solutions segment revenue was $319.3 million, a $39.4 million or 14.1% increase from the prior year period. Revenue growth was comprised of inorganic growth from Dust Free and PSP acquisitions ($18.8 million, or 6.7%, of growth), and organic growth of $20.6 million (7.4% of the total 14.1% growth) due to increased unit volumes and a slight increase from pricing actions. As compared to the prior year period, net revenue growth was driven primarily by the HVAC/R, plumbing, and electrical end markets. Segment operating income in the current year period was $96.1 million, compared to $78.7 million in the prior year period. The incremental profit resulted from the increased unit volumes, favorable product mix, and the inclusion of recent acquisitions, partially offset by increased expenses related to employee compensation and business integrations as the segment builds the infrastructure to support continued growth, and increased expenses related to the inclusion of Dust Free and PSP in the current period, including amortization of intangible assets. Segment operating income margin was 30.1%, compared to 28.1% in the prior year period, driven primarily by increased operating leverage from the additional volume, favorable product mix and pricing actions, combined with the management of operating expenses. Segment EBITDA in the current period was $112.0 million, or 35.1% of revenue, compared to $93.4 million, or 33.4% of revenue in the prior year period.

    Specialized Reliability Solutions segment revenue grew to $75.3 million, a $1.0 million or 1.3% increase from the prior year period of $74.3 million, primarily due to pricing actions and increased unit volumes, with growth in the rail transportation end market and a decrease in mining. In the current year period, Segment operating income improved by 10.0% to $13.0 million, or 17.2% of revenue, compared to the prior year period of $11.8 million, or 15.9% of revenue. Improved segment operating income resulted primarily as a result of a favorable inventory adjustment in the first quarter as well as the increased volume. Segment EBITDA in the current period was $15.6 million, or 20.7% of revenue, compared to $14.7 million, or 19.8% of revenue in the prior year period.

    Engineered Building Solutions segment revenue was $63.6 million, a $6.8 million or 11.9% increase over the prior year period, primarily due to the conversion of backlog into revenue and market expansion. Segment operating income increased 24.4% to $11.8 million, or 18.6% of revenue, compared to the prior year period of $9.5 million, or 16.7% of revenue, due to the increased net revenue, improved gross margin as a result of operating leverage, and management of operating expenses. Segment EBITDA in the current period was $12.8 million, or 20.1% of revenue, compared to $10.4 million, or 18.3% of revenue in the prior year period.

    All percentages are calculated based upon the attached financial statements. Share count used in determining the diluted EPS is based on a weighted average of outstanding shares throughout the measurement period.

    Conference Call Information

    The Company will host a conference call today at 10:00 a.m. ET to discuss the results, followed by a question-and-answer session for the investment community. A live webcast of the call can be accessed at https://cswindustrials.gcs-web.com/. To access the call, participants may dial 1-877-407-0784, international callers may use 1-201-689-8560, and request to join the CSW Industrials earnings call.

    A telephonic replay will be available shortly after the conclusion of the call and until Wednesday, November 13, 2024. Participants may access the replay at 1-844-512-2921, international callers may use 1-412-317-6671 and enter access code 13749338. The call will also be available for replay via webcast link on the Investors portion of the CSWI website www.cswindustrials.com.

    Safe Harbor Statement

    This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as “may,” “should,” “expects,” “could,” “intends,” “plans,” “anticipates,” “estimates,” “believes,” “forecasts,” “predicts” or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, effective tax rate, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations, and financial performance and condition.

    The forward-looking statements included in this press release are based on our current expectations, projections, estimates, and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the risk factors described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.

    All forward-looking statements included in this press release are based on information currently available to us, and we assume no obligation to update any forward-looking statement except as may be required by law.

    Non-GAAP Financial Measures

    This press release includes an analysis of adjusted diluted earnings per share attributable to CSWI, adjusted net income attributable to CSWI, adjusted operating income and free cash flows, which are non-GAAP financial measures of performance. Attributable to CSWI is defined to exclude the income attributable to the non-controlling interest in the Whitmore JV.

    CSWI utilizes adjusted EBITDA (earnings before interest, tax, depreciation and amortization) as an additional consolidated, non-GAAP financial measure, which consists of consolidated net income including income attributable to the non-controlling interest in the Whitmore JV, adjusted to remove the impact of income taxes, interest expense, depreciation, amortization and impairment, and significant nonrecurring items.

    For a reconciliation of these measures to the most directly comparable GAAP measures and for a discussion of why we consider these non-GAAP measures useful, see the “Reconciliation of Non-GAAP Measures” section of this release.

    About CSW Industrials, Inc.

    CSW Industrials is a diversified industrial growth company with industry-leading operations in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions. CSWI provides niche, value-added products with two essential commonalities: performance and reliability. The primary end markets we serve with our well-known brands include: HVAC/R, plumbing, electrical, general industrial, architecturally-specified building products, energy, mining, and rail transportation. For more information, please visit www.cswindustrials.com.

    Investor Relations

    Alexa Huerta
    Vice President, Investor Relations and Treasurer
    214-489-7113
    alexa.huerta@cswindustrials.com

    CSW INDUSTRIALS, INC.
    CONSOLIDATED STATEMENTS OF INCOME
    (unaudited)
     
        Three Months Ended
    September 30,    		   Six Months Ended
    September 30,
    (Amounts in thousands, except per share amounts)     2024       2023       2024       2023  
    Revenues, net   $ 227,926     $ 203,653     $ 454,103     $ 407,013  
    Cost of revenues     (124,025 )     (112,694 )     (242,781 )     (223,887 )
    Gross profit     103,901       90,959       211,322       183,126  
    Selling, general and administrative expenses     (52,352 )     (48,966 )     (104,712 )     (95,927 )
    Operating income     51,549       41,993       106,610       87,199  
    Interest expense, net     (1,341 )     (3,306 )     (3,861 )     (7,315 )
    Other income (expense), net     (677 )     1,926       (418 )     2,240  
    Income before income taxes     49,531       40,613       102,331       82,124  
    Provision for income taxes     (12,910 )     (10,431 )     (26,859 )     (20,885 )
    Net income     36,621       30,182       75,472       61,239  
    Less: Income attributable to redeemable noncontrolling interest     (570 )     (127 )     (828 )     (572 )
    Net income attributable to CSW Industrials, Inc.   $ 36,051     $ 30,055     $ 74,644     $ 60,667  
                     
    Net income per share attributable to CSW Industrials, Inc.                
    Basic   $ 2.27     $ 1.93     $ 4.75     $ 3.91  
    Diluted     2.26       1.93       4.73       3.90  
                     
    Weighted average number of shares outstanding:                
    Basic     15,866       15,544       15,701       15,532  
    Diluted     15,941       15,588       15,770       15,568  
    CSW INDUSTRIALS, INC.
    CONSOLIDATED BALANCE SHEETS
    (unaudited)
    (Amounts in thousands, except for per share amounts)   September 30, 2024   March 31, 2024
    ASSETS        
    Current assets:        
    Cash and cash equivalents   $ 273,220     $ 22,156  
    Accounts receivable, net of allowance for expected credit losses of $1,127 and $908, respectively     135,265       142,665  
    Inventories, net     183,731       150,749  
    Prepaid expenses and other current assets     17,281       15,840  
    Total current assets     609,497       331,410  
    Property, plant and equipment, net of accumulated depreciation of $109,891 and $103,515, respectively     95,128       92,811  
    Goodwill     255,899       247,191  
    Intangible assets, net     333,326       318,819  
    Other assets     65,446       53,095  
    Total assets   $ 1,359,296     $ 1,043,326  
             
    LIABILITIES AND EQUITY        
    Current liabilities:        
    Accounts payable   $ 63,191     $ 48,387  
    Accrued and other current liabilities     96,259       67,449  
    Total current liabilities     159,450       115,836  
    Long-term debt     —       166,000  
    Retirement benefits payable     1,093       1,114  
    Other long-term liabilities     148,404       125,298  
    Total liabilities     308,947       408,248  
    Commitments and contingencies (See Note 13)        
    Redeemable noncontrolling interest     20,183       19,355  
    Equity:        
    Common shares, $0.01 par value     177       164  
    Additional paid-in capital     494,535       137,253  
    Treasury shares, at cost (982 and 952 shares, respectively)     (106,636 )     (95,643 )
    Retained earnings     651,145       583,075  
    Accumulated other comprehensive loss     (9,055 )     (9,126 )
    Total equity     1,030,166       615,723  
    Total liabilities, redeemable noncontrolling interest and equity   $ 1,359,296     $ 1,043,326  
    CSW INDUSTRIALS, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (unaudited)
        Six Months Ended
    September 30,
    (Amounts in thousands)     2024       2023  
    Cash flows from operating activities:        
    Net income   $ 75,472     $ 61,239  
    Adjustments to reconcile net income to net cash provided by operating activities:        
    Depreciation     7,045       6,613  
    Amortization of intangible and other assets     13,214       11,730  
    Provision for inventory reserves     840       2,490  
    Provision for doubtful accounts     723       227  
    Share-based compensation     6,891       5,556  
    Net gain on disposals of property, plant and equipment     (39 )     (1,446 )
    Net pension benefit     33       33  
    Impairment of assets     —       91  
    Net deferred taxes     1,516       411  
    Changes in operating assets and liabilities:        
    Accounts receivable     11,301       (3,917 )
    Inventories     (25,282 )     7,739  
    Prepaid expenses and other current assets     (2,085 )     (5,478 )
    Other assets     153       (466 )
    Accounts payable and other current liabilities     39,626       8,975  
    Retirement benefits payable and other liabilities     61       1,139  
    Net cash provided by operating activities     129,469       94,936  
    Cash flows from investing activities:        
    Capital expenditures     (8,587 )     (7,785 )
    Proceeds from sale of assets held for investment     —       1,665  
    Proceeds from sale of assets     43       42  
    Cash paid for investments     (500 )     —  
    Cash paid for acquisitions     (32,305 )     (2,623 )
    Net cash used in investing activities     (41,349 )     (8,701 )
    Cash flows from financing activities:        
    Borrowings on line of credit     32,723       38,681  
    Repayments of line of credit and term loan     (198,723 )     (118,681 )
    Purchase of treasury shares     (12,287 )     (3,928 )
    Proceeds from equity issuance     347,407       —  
    Dividends     (6,523 )     (5,900 )
    Net cash provided by (used in) financing activities     162,597       (89,828 )
    Effect of exchange rate changes on cash and equivalents     347       (1,016 )
    Net change in cash and cash equivalents     251,064       (4,609 )
    Cash and cash equivalents, beginning of period     22,156       18,455  
    Cash and cash equivalents, end of period   $ 273,220     $ 13,846  

    Reconciliation of Non-GAAP Measures

    We use adjusted earnings per share attributable to CSWI, adjusted net income attributable to CSWI, adjusted operating income, and adjusted EBITDA, together with financial measures prepared in accordance with GAAP, such as revenue, cost of revenue, operating expense, operating income and net income attributable to CSWI, to assess our historical and prospective operating performance and to enhance our understanding of our core operating performance. Free cash flow is a non-GAAP financial measure and is defined as cash flow from operations less capital expenditures. We also believe these measures are useful for investors to assess the operating performance of our business without the effect of non-recurring items. In the following tables, there could be immaterial differences in amounts presented due to rounding.

    CSW Industrials, Inc.
    Reconciliation of Net Income Attributable to CSWI to EBITDA
    (unaudited)
                     
    (Amounts in thousands)   Three months ended
    September 30,    		   Six Months ended
    September 30,
          2024       2023       2024       2023  
    Net Income attributable to CSWI   $ 36,051     $ 30,055     $ 74,644     $ 60,667  
    Plus: Income attributable to redeemable noncontrolling interest     570       127       828       572  
    Net Income   $ 36,621     $ 30,182     $ 75,472     $ 61,239  
                     
    Adjusting Items:                
    Interest expense, net     1,341       3,306       3,861       7,315  
    Income tax expense     12,909       10,431       26,859       20,886  
    Depreciation & amortization     9,951       9,045       19,883       17,960  
    EBITDA   $ 60,823     $ 52,964     $ 126,075     $ 107,399  
    EBITDA % Revenue     26.7 %     26.0 %     27.8 %     26.4 %
    CSW Industrials, Inc.
    Reconciliation of Segment Operating Income to Segment EBITDA
    (unaudited)
               
    (Amounts in thousands) Three months ended September 30, 2024
      Contractor
    Solutions    		 Specialized
    Reliability
    Solutions    		 Engineered
    Building
    Solutions    		 Corporate
    and Other    		 Consolidated
    Revenue, net $ 158,835   $ 38,535   $ 32,673   $ (2,115 ) $ 227,927  
               
    Operating Income $ 46,254   $ 5,819   $ 6,082   $ (6,606 ) $ 51,550  
    % Revenue   29.1 %   15.1 %   18.6 %     22.6 %
               
    Adjusting Items:          
    Other income (expense), net   (543 )   (121 )   (12 )   (2 )   (678 )
    Depreciation & amortization   8,002     1,409     494     45     9,951  
    EBITDA $ 53,713   $ 7,108   $ 6,564   $ (6,562 ) $ 60,823  
    % Revenue   33.8 %   18.4 %   20.1 %     26.7 %
               
    (Amounts in thousands) Three months ended September 30, 2023
      Contractor
    Solutions    		 Specialized
    Reliability
    Solutions    		 Engineered
    Building
    Solutions    		 Corporate
    and Other    		 Consolidated
    Revenue, net $ 139,902   $ 36,614   $ 29,211   $ (2,075 ) $ 203,653  
               
    Operating Income $ 39,025   $ 4,829   $ 5,233   $ (7,095 ) $ 41,993  
    % Revenue   27.9 %   13.2 %   17.9 %     20.6 %
               
    Adjusting Items:          
    Other income (expense), net   575     (54 )   3     1,402     1,926  
    Depreciation & amortization   7,045     1,505     453     42     9,045  
    EBITDA $ 46,645   $ 6,280   $ 5,690   $ (5,651 ) $ 52,964  
    % Revenue   33.3 %   17.2 %   19.5 %     26.0 %
               
    CSW Industrials, Inc.
    Reconciliation of Segment Operating Income to Segment EBITDA
    (unaudited)
               
    (Amounts in thousands) Six Months ended September 30, 2024
      Contractor
    Solutions    		 Specialized
    Reliability
    Solutions    		 Engineered
    Building
    Solutions    		 Corporate
    and Other    		 Consolidated
    Revenue, net $ 319,252   $ 75,327   $ 63,566   $ (4,041 ) $ 454,104  
               
    Operating Income $ 96,138   $ 12,970   $ 11,806   $ (14,304 ) $ 106,610  
    % Revenue   30.1 %   17.2 %   18.6 %     23.5 %
               
    Adjusting Items:          
    Other income (expense), net   (147 )   (183 )   (19 )   (68 )   (418 )
    Depreciation & amortization   15,985     2,832     979     87     19,883  
    EBITDA $ 111,976   $ 15,619   $ 12,766   $ (14,285 ) $ 126,075  
    % Revenue   35.1 %   20.7 %   20.1 %     27.8 %
               
    (Amounts in thousands) Six Months ended September 30, 2023
      Contractor
    Solutions    		 Specialized
    Reliability
    Solutions    		 Engineered
    Building
    Solutions    		 Corporate
    and Other    		 Consolidated
    Revenue, net $ 279,857   $ 74,326   $ 56,798   $ (3,967 ) $ 407,014  
               
    Operating Income $ 78,692   $ 11,794   $ 9,493   $ (12,780 ) $ 87,199  
    % Revenue   28.1 %   15.9 %   16.7 %     21.4 %
               
    Adjusting Items:          
    Other income (expense), net   747     (91 )   11     1,573     2,240  
    Depreciation & amortization   13,940     3,035     895     90     17,960  
    EBITDA $ 93,380   $ 14,738   $ 10,398   $ (11,117 ) $ 107,399  
    % Revenue   33.4 %   19.8 %   18.3 %     26.4 %
               
    CSW INDUSTRIALS, INC.
    Reconciliation of Operating Cash Flow to Free Cash Flow
    (Unaudited)
                   
    (Amounts in thousands) Three Months Ended
    September 30,    		   Six Months ended
    September 30,
        2024       2023       2024       2023  
    Net cash provided by operating activities $ 66,814     $ 44,679     $ 129,469     $ 94,936  
    Less: Capital expenditures   (5,486 )     (2,814 )     (8,587 )     (7,785 )
    Free cash flow $ 61,328     $ 41,865     $ 120,882     $ 87,151  
    Free cash flow % EBITDA   100.8 %     79.0 %     95.9 %     81.1 %

    The MIL Network –

  • MIL-OSI USA: Department of Labor finds construction contractors failed to protect rigger from fatal 30-story fall at Fort Lauderdale high-rise

    Source: US Department of Labor

    FORT LAUDERDALE, FL – A U.S. Department of Labor investigation found two contractors could have prevented a crane collapse at a Fort Lauderdale residential construction site in April 2024, which caused a 27-year-old rigger to suffer fatal injuries after falling approximately 30 stories.

    Investigators with the department’s Occupational Safety and Health Administration learned that two workers employed by Phoenix Rigging & Erecting LLC were installing a section on a tower crane to increase its height when a support cable failed and the platform on which they stood became displaced. One worker, who was wearing the required fall protection and tied off, was rescued. Another worker, whose lanyard was not connected to an anchor point was fatally injured.

    OSHA cited Phoenix Rigging & Erecting in Mableton, Georgia, for three serious violations for failing to do the following: 

    The agency also cited a Canonsburg, Pennsylvania, crane rental company, Maxim Crane Works LP, for two serious violations for failing to do the following:

    • Observing deficiencies to significantly corroded and cracked pins and bolts, and improperly applying end connections.
    • Allowing employees to start work without conducting pre-inspections of crane components, including but not limited to U-bolt clamps, bolts, pins, thimbles and wire ropes, to ensure those were inspected adequately by a qualified person for damage or excessive wear.

    “Neglecting workplace safety requirements can be a matter of life or death,” said OSHA Area Director Condell Eastmond in Fort Lauderdale, Florida. “If these companies had made safety a priority, a young man’s family, friends, and co-workers wouldn’t be facing this preventable loss. Construction employers are responsible for ensuring that workers use fall protection in hazardous situations, and we will hold all employers accountable for failing to provide safe working conditions.”

    OSHA cited the construction contractors for five serious violations and proposed $61,299 in penalties, the maximum amount that OSHA can legally recommend. 

    The Bureau of Labor Statistics reports that 1,056 construction workers were fatally injured on the job in 2022, with 423 of those fatalities related to falls from elevation, slips or trips.  

    Phoenix Rigging & Erecting LLC conducts crane assembly and dismantling. Maxim Crane Works LP rents heavy-lift equipment, including hydraulic truck cranes, rough terrain cranes, crawler cranes, tower cranes, conventional truck cranes and boom trucks at more than 50 locations nationwide.

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

    Visit OSHA’s website for information on developing a workplace safety and health program. Employers can also contact the agency for information about OSHA’s compliance assistance resources and for free help on complying with OSHA standards. 

    Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA’s role is to ensure these conditions for America’s working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit OSHA’s website to learn more. 

    MIL OSI USA News –

  • MIL-OSI: YieldMax™ ETFs Announces Distributions on YBIT (65.28%), TSLY (60.58%), TSMY (54.47%), YMAX (66.23%), YMAG (41.16%) and Others

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO and MILWAUKEE and NEW YORK, Oct. 30, 2024 (GLOBE NEWSWIRE) — YieldMax™ today announced distributions for the YieldMax™ ETFs listed in the table below.

    ETF Ticker1 ETF Name Reference Asset Distribution
    per Share    		 Distribution Frequency Distribution Rate2,4,5 30-Day
    SEC Yield    3    		 Ex-Date & Record
    Date    		 Payment Date
    YMAX YieldMax™ Universe Fund of Option Income ETFs Multiple $0.2247 Weekly 66.23% 50.85% 10/31/24 11/1/2024
    YMAG YieldMax™ Magnificent 7 Fund of Option Income ETFs Multiple $0.1528 Weekly 41.16% 62.93% 10/31/24 11/1/2024
    TSLY YieldMax™ TSLA Option Income Strategy ETF TSLA $0.5986 Every 4
    Weeks    		 60.58% 3.09% 10/31/24 11/1/2024
    CRSH   YieldMax™ Short TSLA Option Income Strategy ETF TSLA $0.4489 Every 4
    Weeks    		 51.38% 3.61% 10/31/24 11/1/2024
    GOOY YieldMax™ GOOGL Option Income Strategy ETF GOOGL $0.3771 Every 4
    Weeks    		 31.69% 3.28% 10/31/24 11/1/2024
    YBIT YieldMax™ Bitcoin Option Income Strategy ETF Bitcoin ETP $0.6717 Every 4
    Weeks    		 65.28% 4.07% 10/31/24 11/1/2024
    OARK YieldMax™ Innovation Option Income Strategy ETF ARKK $0.2818 Every 4
    Weeks    		 35.18% 3.37% 10/31/24 11/1/2024
    XOMO YieldMax™ XOM Option Income Strategy ETF XOM $0.3373 Every 4
    Weeks    		 26.26% 3.32% 10/31/24 11/1/2024
    SNOY YieldMax™ SNOW Option Income Strategy ETF SNOW $0.5589 Every 4
    Weeks    		 43.15% 3.44% 10/31/24 11/1/2024
    TSMY YieldMax™ TSM Option Income Strategy ETF TSM $0.8897 Every 4
    Weeks    		 54.47% 3.48% 10/31/24 11/1/2024
    Scheduled for next week: YMAX YMAG NVDY DIPS FBY GDXY BABO JPMO MRNY PLTY


    The performance data quoted above represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted above. Performance current to the most recent month-end can be obtained by calling     (833) 378-0717.

    Note: DIPS, FIAT, CRSH and YQQQ are hereinafter referred to as the “Short ETFs”.

    Distributions are not guaranteed. The Distribution Rate and 30-Day SEC Yield are not indicative of future distributions, if any, on the ETFs. In particular, future distributions on any ETF may differ significantly from its Distribution Rate or 30-Day SEC Yield. You are not guaranteed a distribution under the ETFs. Distributions for the ETFs (if any) are variable and may vary significantly from period to period and may be zero. Accordingly, the Distribution Rate and 30-Day SEC Yield will change over time, and such change may be significant.

    Investors in the Funds will not have rights to receive dividends or other distributions with respect to the underlying reference asset(s).

    1  All YieldMax™ ETFs shown in the table above (except YMAX and YMAG) have a gross expense ratio of 0.99%. YMAX and YMAG have a Management Fee of 0.29% and Acquired Fund Fees and Expenses of 0.99% for a gross expense ratio of 1.28%. “Acquired Fund Fees and Expenses” are indirect fees and expenses that the Fund incurs from investing in the shares of other investment companies, namely other YieldMax™ ETFs.

    2  The Distribution Rate shown is as of close on October 29, 2024. The Distribution Rate is the annual distribution rate an investor would receive if the most recent distribution, which includes option income, remained the same going forward. The Distribution Rate is calculated by annualizing an ETF’s Distribution per Share and dividing such annualized amount by the ETF’s most recent NAV. The Distribution Rate represents a single distribution from the ETF and does not represent its total return. Distributions may also include a combination of ordinary dividends, capital gain, and return of investor capital, which may decrease an ETF’s NAV and trading price over time. As a result, an investor may suffer significant losses to their investment. These Distribution Rates may be caused by unusually favorable market conditions and may not be sustainable. Such conditions may not continue to exist and there should be no expectation that this performance may be repeated in the future.

    3  The 30-Day SEC Yield represents net investment income, which excludes option income, earned by such ETF over the 30-Day period ended September 30, 2024, expressed as an annual percentage rate based on such ETF’s share price at the end of the 30-Day period.

    4  Each ETF’s strategy (except those of the Short ETFs) will cap potential gains if its reference asset’s shares increase in value, yet subjects an investor to all potential losses if the reference asset’s shares decrease in value. Such potential losses may not be offset by income received by the ETF. Each Short ETF’s strategy will cap potential gains if its reference asset decreases in value, yet subjects an investor to all potential losses if the reference asset increases in value. Such potential losses may not be offset by income received by the ETF.

    5  YieldMax™ ETF distributions may contain return of capital, but an estimate cannot be provided at this time. Please refer to the 19a-1 notices here for additional details regarding the distributions’ composition, once available.

    Each Fund has a limited operating history and while each Fund’s objective is to provide current income, there is no guarantee the Fund will make a distribution. Distributions are likely to vary greatly in amount.

    Standardized Performance

    For YMAX, click here. For YMAG, click here. For TSLY, click here. For OARK, click here. For APLY, click here. For NVDY, click here. For AMZY, click here. For FBY, click here. For GOOY, click here. For NFLY, click here. For CONY, click here. For MSFO, click here. For DISO, click here. For XOMO, click here. For JPMO, click here. For AMDY, click here. For PYPY, click here. For SQY, click here. For MRNY, click here. For AIYY, click here. For MSTY, click here. For ULTY, click here. For YBIT, click here. For CRSH, click here. For GDXY, click here. For SNOY, click here. For ABNY, click here. For FIAT, click here. For DIPS, click here. For BABO, click here. For YQQQ, click here. For TSMY, click here. For SMCY, click here. For PLTY, click here.

    Prospectuses

    Click here.

    Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information are in the prospectus. Please read the prospectuses carefully before you invest.

    There is no guarantee that any Fund’s investment strategy will be properly implemented, and an investor may lose some or all of its investment in any such Fund.

    Tidal Financial Group is the adviser for all YieldMax™ ETFs and ZEGA Financial is their sub-adviser.

    THE FUND, TRUST, AND SUB-ADVISER ARE NOT AFFILIATED WITH ANY UNDERLYING REFERENCE ASSET.

    Risk Disclosures (applicable to all YieldMax ETFs referenced above, except the Short ETFs)

    YMAX and YMAG generally invest in other YieldMax™ ETFs. As such, these two Funds are subject to the risks listed in this section, which apply to all the YieldMax™ ETFs they may hold from time to time.

    Investing involves risk. Principal loss is possible.

    Call Writing Strategy Risk. The path dependency (i.e., the continued use) of the Fund’s call writing strategy will impact the extent that the Fund participates in the positive price returns of the underlying reference asset and, in turn, the Fund’s returns, both during the term of the sold call options and over longer periods.

    Counterparty Risk. The Fund is subject to counterparty risk by virtue of its investments in options contracts. Transactions in some types of derivatives, including options, are required to be centrally cleared (“cleared derivatives”). In a transaction involving cleared derivatives, the Fund’s counterparty is a clearing house rather than a bank or broker. Since the Fund is not a member of clearing houses and only members of a clearing house (“clearing members”) can participate directly in the clearing house, the Fund will hold cleared derivatives through accounts at clearing members.

    Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund’s investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, imperfect correlation with underlying investments or the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions.

    Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying instrument, including the anticipated volatility, which are affected by fiscal and monetary policies and by national and international political, changes in the actual or implied volatility or the reference asset, the time remaining until the expiration of the option contract and economic events.

    Distribution Risk. As part of the Fund’s investment objective, the Fund seeks to provide current income. There is no assurance that the Fund will make a distribution in any given period. If the Fund does make distributions, the amounts of such distributions will likely vary greatly from one distribution to the next.

    High Portfolio Turnover Risk. The Fund may actively and frequently trade all or a significant portion of the Fund’s holdings.

    Liquidity Risk. Some securities held by the Fund, including options contracts, may be difficult to sell or be illiquid, particularly during times of market turmoil.

    Non-Diversification Risk. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund.

    New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.

    Price Participation Risk. The Fund employs an investment strategy that includes the sale of call option contracts, which limits the degree to which the Fund will participate in increases in value experienced by the underlying reference asset over the Call Period.

    Single Issuer Risk. Issuer-specific attributes may cause an investment in the Fund to be more volatile than a traditional pooled investment which diversifies risk or the market generally. The value of the Fund, which focuses on an individual security (ARKK, TSLA, AAPL, NVDA, AMZN, META, GOOGL, NFLX, COIN, MSFT, DIS, XOM, JPM, AMD, PYPL, SQ, MRNA, AI, MSTR, Bitcoin ETP, GDX®, SNOW, ABNB, BABA, TSM, SMCI, PLTR), may be more volatile than a traditional pooled investment or the market as a whole and may perform differently from the value of a traditional pooled investment or the market as a whole.

    Inflation Risk. Inflation risk is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the present value of the Fund’s assets and distributions, if any, may decline.

    Risk Disclosures (applicable only to BABO and TSMY)

    Currency Risk: Indirect exposure to foreign currencies subjects the Fund to the risk that currencies will decline in value relative to the U.S. dollar. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates and the imposition of currency controls or other political developments in the U.S. or abroad.

    Depositary Receipts Risk: The securities underlying BABO and TSMY are American Depositary Receipts (“ADRs”). Investment in ADRs may be less liquid than the underlying shares in their primary trading market.

    Foreign Market and Trading Risk: The trading markets for many foreign securities are not as active as U.S. markets and may have less governmental regulation and oversight.

    Foreign Securities Risk: Investments in securities of non-U.S. issuers involve certain risks that may not be present with investments in securities of U.S. issuers, such as risk of loss due to foreign currency fluctuations or to political or economic instability, as well as varying regulatory requirements applicable to investments in non-U.S. issuers. There may be less information publicly available about a non-U.S. issuer than a U.S. issuer. Non-U.S. issuers may also be subject to different regulatory, accounting, auditing, financial reporting and investor protection standards than U.S. issuers.

    Risk Disclosures (applicable only to GDXY)

    Risk of Investing in Foreign Securities. The Fund is exposed indirectly to the securities of foreign issuers selected by GDX®’s investment adviser, which subjects the Fund to the risks associated with such companies. Investments in the securities of foreign issuers involve risks beyond those associated with investments in U.S. securities.

    Risk of Investing in Gold and Silver Mining Companies. The Fund is exposed indirectly to gold and silver mining companies selected by GDX®’s investment adviser, which subjects the Fund to the risks associated with such companies.

    The Fund invests in options contracts based on the value of the VanEck Gold Miners ETF (GDX®), which subjects the Fund to some of the same risks as if it owned GDX®, as well as the risks associated with Canadian, Australian and Emerging Market Issuers, and Small-and Medium-Capitalization companies.

    Risk Disclosures (applicable only to YBIT)

    YBIT does not invest directly in Bitcoin or any other digital assets. YBIT does not invest directly in derivatives that track the performance of Bitcoin or any other digital assets. YBIT does not invest in or seek direct exposure to the current “spot” or cash price of Bitcoin. Investors seeking direct exposure to the price of Bitcoin should consider an investment other than YBIT.

    Bitcoin Investment Risk: The Fund’s indirect investment in Bitcoin, through holdings in one or more Underlying ETPs, exposes it to the unique risks of this emerging innovation. Bitcoin’s price is highly volatile, and its market is influenced by the changing Bitcoin network, fluctuating acceptance levels, and unpredictable usage trends.

    Digital Assets Risk: Digital assets like Bitcoin, designed as mediums of exchange, are still an emerging asset class. They operate independently of any central authority or government backing and are subject to regulatory changes and extreme price volatility. Potentially No 1940 Act Protections. As of the date of this Prospectus, there is only a single eligible Underlying ETP, and it is an investment company subject to the 1940 Act.

    Bitcoin ETP Risk: The Fund invests in options contracts that are based on the value of the Bitcoin ETP. This subjects the Fund to certain of the same risks as if it owned shares of the Bitcoin ETP, even though it does not. Bitcoin ETPs are subject, but not limited, to significant risk and heightened volatility. An investor in a Bitcoin ETP may lose their entire investment. Bitcoin ETPs are not suitable for all investors. In addition, not all Bitcoin ETPs are registered under the Investment Company Act of 1940. Those Bitcoin ETPs that are not registered under such statute are therefore not subject to the same regulations as exchange traded products that are so registered.

    Risk Disclosures (applicable only to the Short ETFs)

    Investing involves risk. Principal loss is possible.

    Price Appreciation Risk. As part of the Fund’s synthetic covered put strategy, the Fund purchases and sells call and put option contracts that are based on the value of the underlying reference asset. This strategy subjects the Fund to certain of the same risks as if it shorted the underlying reference asset, even though it does not. By virtue of the Fund’s indirect inverse exposure to changes in the value of the underlying reference asset, the Fund is subject to the risk that the value of the underlying reference asset increases. If the value of the underlying reference asset increases, the Fund will likely lose value and, as a result, the Fund may suffer significant losses.

    Put Writing Strategy Risk. The path dependency (i.e., the continued use) of the Fund’s put writing (selling) strategy will impact the extent that the Fund participates in decreases in the value of the underlying reference asset and, in turn, the Fund’s returns, both during the term of the sold put options and over longer periods.

    Purchased OTM Call Options Risk. The Fund’s strategy is subject to potential losses if the underlying reference asset increases in value, which may not be offset by the purchase of out-of-the-money (OTM) call options. The Fund purchases OTM calls to seek to manage (cap) the Fund’s potential losses from the Fund’s short exposure to the underlying reference asset if it appreciates significantly in value. However, the OTM call options will cap the Fund’s losses only to the extent that the value of the underlying reference asset increases to a level that is at or above the strike level of the purchased OTM call options. Any increase in the value of the underlying reference asset to a level that is below the strike level of the purchased OTM call options will result in a corresponding loss for the Fund. For example, if the OTM call options have a strike level that is approximately 100% above the then-current value of the underlying reference asset at the time of the call option purchase, and the value of the underlying reference asset increases by at least 100% during the term of the purchased OTM call options, the Fund will lose all its value. Since the Fund bears the costs of purchasing the OTM calls, such costs will decrease the Fund’s value and/or any income otherwise generated by the Fund’s investment strategy.

    Counterparty Risk. The Fund is subject to counterparty risk by virtue of its investments in options contracts. Transactions in some types of derivatives, including options, are required to be centrally cleared (“cleared derivatives”). In a transaction involving cleared derivatives, the Fund’s counterparty is a clearing house rather than a bank or broker. Since the Fund is not a member of clearing houses and only members of a clearing house (“clearing members”) can participate directly in the clearing house, the Fund will hold cleared derivatives through accounts at clearing members.

    Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund’s investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, imperfect correlation with underlying investments or the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions.

    Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying reference asset, including the anticipated volatility, which are affected by fiscal and monetary policies and by national and international political, changes in the actual or implied volatility or the reference asset, the time remaining until the expiration of the option contract and economic events.

    Distribution Risk. As part of the Fund’s investment objective, the Fund seeks to provide current income. There is no assurance that the Fund will make a distribution in any given period. If the Fund does make distributions, the amounts of such distributions will likely vary greatly from one distribution to the next.

    High Portfolio Turnover Risk. The Fund may actively and frequently trade all or a significant portion of the Fund’s holdings.

    Liquidity Risk. Some securities held by the Fund, including options contracts, may be difficult to sell or be illiquid, particularly during times of market turmoil.

    Non-Diversification Risk. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund.

    New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.

    Price Participation Risk. The Fund employs an investment strategy that includes the sale of put option contracts, which limits the degree to which the Fund will participate in decreases in value experienced by the underlying reference asset over the Put Period.

    Single Issuer Risk. Issuer-specific attributes may cause an investment in the Fund to be more volatile than a traditional pooled investment which diversifies risk or the market generally. The value of the Fund, for any Fund that focuses on an individual security (e.g., TSLA, COIN, NVDA), may be more volatile than a traditional pooled investment or the market as a whole and may perform differently from the value of a traditional pooled investment or the market as a whole.

    Inflation Risk. Inflation risk is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the present value of the Fund’s assets and distributions, if any, may decline.

    Risk Disclosures (applicable only to YQQQ)

    Index Overview. The Nasdaq 100 Index is a benchmark index that includes 100 of the largest non-financial companies listed on the Nasdaq Stock Market, based on market capitalization.

    Index Level Appreciation Risk. As part of the Fund’s synthetic covered put strategy, the Fund purchases and sells call and put option contracts that are based on the Index level. This strategy subjects the Fund to certain of the same risks as if it shorted the Index, even though it does not. By virtue of the Fund’s indirect inverse exposure to changes in the Index level, the Fund is subject to the risk that the Index level increases. If the Index level increases, the Fund will likely lose value and, as a result, the Fund may suffer significant losses. The Fund may also be subject to the following risks: innovation and technological advancement; strong market presence of Index constituent companies; adaptability to global market trends; and resilience and recovery potential.

    Index Level Participation Risk. The Fund employs an investment strategy that includes the sale of put option contracts, which limits the degree to which the Fund will benefit from decreases in the Index level experienced over the Put Period. This means that if the Index level experiences a decrease in value below the strike level of the sold put options during a Put Period, the Fund will likely not experience that increase to the same extent and any Fund gains may significantly differ from the level of the Index losses over the Put Period. Additionally, because the Fund is limited in the degree to which it will participate in decreases in value experienced by the Index level over each Put Period, but has significant negative exposure to any increases in value experienced by the Index level over the Put Period, the NAV of the Fund may decrease over any given period. The Fund’s NAV is dependent on the value of each options portfolio, which is based principally upon the inverse of the performance of the Index level. The Fund’s ability to benefit from the Index level decreases will depend on prevailing market conditions, especially market volatility, at the time the Fund enters into the sold put option contracts and will vary from Put Period to Put Period. The value of the options contracts is affected by changes in the value and dividend rates of component companies that comprise the Index, changes in interest rates, changes in the actual or perceived volatility of the Index and the remaining time to the options’ expiration, as well as trading conditions in the options market. As the Index level changes and time moves towards the expiration of each Put Period, the value of the options contracts, and therefore the Fund’s NAV, will change. However, it is not expected for the Fund’s NAV to directly inversely correlate on a day-to-day basis with the returns of the Index level. The amount of time remaining until the options contract’s expiration date affects the impact that the value of the options contracts has on the Fund’s NAV, which may not be in full effect until the expiration date of the Fund’s options contracts. Therefore, while changes in the Index level will result in changes to the Fund’s NAV, the Fund generally anticipates that the rate of change in the Fund’s NAV will be different than the inverse of the changes experienced by the Index level.

    YieldMax™ ETFs are distributed by Foreside Fund Services, LLC. Foreside is not affiliated with Tidal Financial Group, YieldMax™ ETFs or ZEGA Financial.

    © 2024 YieldMax™ ETFs

    The MIL Network –

  • MIL-OSI: Dayforce Reports Third Quarter 2024 Results¹

    Source: GlobeNewswire (MIL-OSI)

    Dayforce® recurring revenue of $333.2 million, up 19%

    Total revenue of $440.0 million, up 17%

    Year-to-date net cash provided by operating activities of $200.1 million, up 54%

    MINNEAPOLIS and TORONTO, Oct. 30, 2024 (GLOBE NEWSWIRE) — Dayforce, Inc. (“Dayforce” or the “Company”) (NYSE:DAY) (TSX:DAY), a global leader in human capital management (“HCM”) technology, today announced its financial results for the third quarter ended September 30, 2024.

    “Our dedicated team achieved excellent results in the third quarter, positioning us to finish 2024 with strength,” said David Ossip, Chair and CEO of Dayforce. “Dayforce recurring revenue grew 19% year-over-year, and year-to-date cash flows from operating activities were up 54%, underscoring our ability to both grow and generate profits at scale. We continue to see organizations across the globe realize greater value as they simplify their people operations with the all-in-one Dayforce platform.”

    “In the third quarter, we repurchased approximately $30 million worth of shares under our $500 million share repurchase program that we launched last quarter highlighting our progress in enhancing our overall profit profile and the flexibility of our cash-generative business model,” said Jeremy Johnson, CFO of Dayforce. “Looking forward, we are excited to meet many of our investors in-person at our inaugural Investor Day alongside our Dayforce Discover conference in Las Vegas where we will outline our strategy for future growth.” 

    Financial Highlights for the Third Quarter 20241

    • Total revenue was $440.0 million, an increase of 16.6%, or 16.7% on a constant currency basis.
    • Dayforce recurring revenue was $333.2 million, an increase of 19.2%, or 19.3% on a constant currency basis. Excluding float revenue, Dayforce recurring revenue was $292.0 million, an increase of 18.9%, or 19.0% on a constant currency basis.
    • Cloud recurring gross margin was 79.0%, compared to 77.0%. Adjusted cloud recurring gross margin was 79.9%, compared to 78.3%.
    • Operating profit was $20.8 million compared to $26.5 million. Adjusted operating profit was $103.2 million compared to $89.4 million.
    • Net income was $2.0 million, compared to net loss of $3.8 million. Adjusted net income was $74.5 million, compared to $58.3 million.
    • Adjusted EBITDA was $126.1 million, compared to $107.2 million.
    • Diluted net income per share was $0.01, compared to diluted net loss per share of $0.02. Adjusted diluted net income per share was $0.47, compared to $0.37.
    • Net cash provided by operating activities for the nine months ended September 30, 2024 was $200.1 million, compared to $129.6 million for the nine months ended September 30, 2023. Free cash flow for the nine months ended September 30, 2024 was $117.3 million, compared to $41.3 million for the nine months ended September 30, 2023.

    Supplemental Detail

    • 6,730 customers were live on the Dayforce platform as of September 30, 2024, an increase of 73 customers since June 30, 2024 and an increase of 384 customers since September 30, 2023, or 6.1% year-over-year.2
    • Dayforce recurring revenue per customer was $159,496 for the trailing twelve months ended September 30, 2024, an increase of 14.9%.3
    • The average float balance for Dayforce’s customer funds during the quarter was $4.48 billion and the average yield on Dayforce’s float balance was 4.0%, an increase of 20 basis points year-over-year. Float revenue from invested customer funds was $45.6 million for the three months ended September 30, 2024.
    • The average U.S. dollar to Canadian dollar foreign exchange rate was $1.36 for the three months ended September 30, 2024, compared to $1.34 for the three months ended September 30, 2023. Dayforce presents percentage change in revenue on a constant currency basis in order to exclude the effect of foreign currency rate fluctuations, which it believes is useful to management and investors. Percentage change in revenue was calculated on a constant currency basis by applying the average foreign exchange rate in effect during the comparable prior period.

    1 The financial highlights are on a year-over-year basis, unless otherwise stated. All financial results are reported in United States (“U.S.”) dollars and in accordance with accounting principles generally accepted in the U.S. (“GAAP”), unless otherwise stated.
    2 Excluding Ascender, ADAM HCM, and eloomi.
    3 Excluding float revenue, Ascender, ADAM HCM, and eloomi revenue, and on a constant currency basis. Please refer to the “Non-GAAP Financial Measures” section for discussion of percentage change in revenue on a constant currency basis.

    Business Highlights

    • Dayforce was named a Leader in the 2024 Gartner Magic Quadrant for Cloud HCM Suites for 1,000+ Employee Enterprises for the fifth consecutive year in October 2024. The Company also scored highest in both North American Compliance Suite 1,000-2,500 and North American Compliance Suite 2,500+ in the 2024 Critical Capabilities report for Cloud HCM Suites for Enterprises with 1000+ Employees.
    • The Company earned a 2024 Top HR Products of the Year Award from Human Resources Executive Magazine for Dayforce Career Explorer and placed on the Constellation ShortList™ within four categories: Workforce Management Suites, HCM Suites with a North American Focus, Global HCM Suites, and Payroll for North American SMBs.
    • Dayforce attained a five-star rating for the second year in a row on Newsweek’s list of America’s Greenest Companies 2025, recognized by TIME Magazine as one of the World’s Most Sustainable Companies 2024, named a Top 10 company for workers by JUST Capital, placed on the Most Loved Workplaces list for young professionals, and awarded a TrustRadius Tech Cares award for the company’s efforts in social responsibility and volunteerism.

    Sales Highlights

    • A North American hospitality company that specializes in managing and developing luxury hotels and resorts selected the full Dayforce suite to support 22,000 employees across U.S., Mexico, and Canada.
    • A major multi-brand Australian retailer has selected Dayforce as its unified HCM solution to support their 12,000 employees across Australia and New Zealand.
    • A global manufacturing and distribution leader, operating in over 12 countries, selected the full Dayforce suite to enhance the experience of 8,500 employees across the United States and Canada.
    • A wholesale distributor of food service and janitorial supplies, with 7,200 employees in the U.S. and Canada chose Dayforce as its comprehensive human capital management solution, opting for the full Dayforce suite of products with Managed Benefits.
    • A world-leading manufacturer and retailer of footwear chose the full Dayforce suite to support its 5,300 employees globally.
    • A U.S.-based online gaming and sports entertainment company chose Dayforce Managed Payroll Services to support its 4,100 employees across the U.S., Canada, and the United Kingdom (“U.K.”).
    • A U.K.-based clothing retailer chose the full Dayforce Talent suite and Global Payroll to effectively manage its workforce of 3,800 employees across 12 countries.
    • A U.S. construction company selected the full Dayforce suite for consolidating and modernizing its systems across 48 states and 32 unique FEINs for its 3,500 employees.
    • A regional commuter railroad corporation in the U.S. has chosen Dayforce as its unified HCM solution, including the full Talent Suite, to effectively manage its workforce of 3,300 employees.
    • A global manufacturer and distributor of medical devices operating in 33 countries, chose Dayforce for Global Pay, Time, and Managed Benefits in the U.S. to support 2,300 employees.

    New Customer Highlights

    • A British multinational hotel and restaurant company with 38,000 employees went live across the U.K. with Dayforce Managed Payroll, HR, Workforce Management, and Talent.
    • A prominent U.S. manufacturer recently went live with Dayforce HR, Payroll, Time, Wallet, Document Management for its 10,000 employees.
    • A U.K. fashion retailer with 400 stores and 10,000 employees has recently implemented Dayforce HR, Workforce Management, Payroll, and Dayforce Wallet.
    • A leading senior living organization recently deployed the full Dayforce suite, supporting 6,300 active employees across the U.S.
    • A well-established U.S. logistics company has gone live with the full Dayforce suite to support its 5,200 employees.
    • A well-established U.S.-based insurance company has gone live with the full Dayforce suite supporting its 4,800 employees across North America.
    • A North American technology company migrated to Dayforce Managed Payroll to support nearly 4,700 U.S. employees.
    • A global office furniture manufacturer has implemented Dayforce HR, Payroll, Time, Analytics, and Dayforce Wallet for almost 4,000 U.S. employees.
    • A U.S.-based energy services company with 1,200 employees has implemented Dayforce Payroll, Benefits, Time, Core HR, Onboarding, and Recruiting.
    • A nonprofit organization dedicated to the governance and promotion of golf in America recently undertook a full-suite implementation of Dayforce to support its 400 employees.

    Product Roadmap Highlights

    In the third quarter, Dayforce launched new product capabilities to help Dayforce customers realize quantifiable value through enriched workforce engagement, enhanced analytics, and improved employee financial wellness, and to update their compliance capabilities.

    • The new Dayforce Learning was announced, with enhancements that will better equip organizations with the advanced learning and development capabilities needed to grow, engage, and enrich their workforces.
    • Dayforce People Analytics enhancements include:
      • Measures, a new KPI and performance management tool, that surfaces performance across 28+ metrics, allowing organizations to configure intelligent nudges that can surface changes requiring their attention
      • Data Cards display Measures in the Advanced Experience Hub, embedding awareness of performance metrics across the organization
      • Machine learning enhanced prediction gives organizations a view into future performance
    • Dayforce Wallet updates include a new Savings feature, which allows users to route some of their earnings into a saving plan, a new Cashless Tips feature, which allows employers to pay out pre-tax or net tips by automating their distribution at the end of a shift, and a new Dayforce Wallet widget that integrates on-demand pay into Dayforce Hub, allowing employees to view and request available pay directly. As of September 30, 2024, over 1,290 customers were live on Dayforce Wallet.
    • Dayforce Payroll enhancements include a reimagined payroll experience that offers real-time insight into pay variances, helping users detect anomalies by highlighting areas needing attention.
    • 240+ compliance updates up to the end of the third quarter, will bolster the Company’s industry-leading position in compliance by addressing changes in regional taxes, workers’ compensation, garnishments, and multiple state and city rate changes.

    Business Outlook

    Based on information available as of October 30, 2024, Dayforce is issuing the following guidance for the fourth quarter and full year of 2024 as indicated below. Comparisons are on a year-over-year basis, unless stated otherwise.

    Guided Metrics   Full Year 2024   Fourth Quarter 2024
    Total revenue   $1,747 million to $1,752 million, an increase of 15% to 16% on a GAAP basis or 16% on a constant currency basis.   $452 million to $457 million, an increase of 13% to 14% on a GAAP basis or 13% to 15% on a constant currency basis.
    Dayforce recurring revenue, excluding float   $1,163 million to $1,168 million, an increase of 21% on a GAAP and on a constant currency basis.   $311 million to $316 million, an increase of 21% to 23% on a GAAP and on a constant currency basis.
    Float revenue   $192 million   $37 million
    Adjusted EBITDA   $492 million to $507 million   $120 million to $135 million

    Dayforce is also providing an initial outlook for full year 2025 as follows:

    • Total revenue growth, excluding float, between 14% and 15%, on a constant currency basis
    • Adjusted EBITDA margin above 31%
    • Free cash flow as a percentage of total revenue above 12%

    Dayforce has not reconciled the Adjusted EBITDA ranges, Adjusted EBITDA margin, or free cash flow for the fourth quarter or full years of 2024 or 2025 to the directly comparable GAAP financial measures because applicable information for the future period, on which these reconciliations would be based, is not available without unreasonable efforts due to uncertainty regarding, and the potential variability of, depreciation and amortization, share-based compensation expense and related employer taxes, changes in foreign currency exchange rates, and other items.

    Foreign Exchange

    For the fourth quarter of 2024, Dayforce’s guidance assumes an average U.S. dollar to Canadian dollar foreign exchange rate of $1.38, which results in an average rate of $1.37 for the full year of 2024, compared to an average rate of $1.36 and $1.35 for the fourth quarter and full year of 2023, respectively.

    Conference Call Details

    Dayforce will host a live webcast and conference call to discuss the third quarter 2024 earnings at 8:00 a.m. Eastern Time on October 30, 2024. Those wishing to participate via the webcast should access the call through the Investor Relations section of the Dayforce website. Those wishing to participate via the telephone may dial in at 877-497-9071 (USA) or 201-689-8727 (International). The webcast replay will be available through the Investor Relations section of the Dayforce website.

    About Dayforce

    Dayforce makes work life better. Everything we do as a global leader in HCM technology is focused on improving work for thousands of customers and millions of employees around the world. Our single, global people platform for HR, Pay, Time, Talent, and Analytics equips Dayforce customers to unlock their full workforce potential and operate with confidence. To learn how Dayforce helps create quantifiable value for organizations of all sizes and industries, visit dayforce.com.

    Forward-Looking Statements

    This press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this press release are forward-looking statements. Forward-looking statements give Dayforce’s current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance, and business. Users can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. Forward-looking statements in this press release include statements relating to the fourth quarter and full fiscal years of 2024 and 2025, as well as those relating to future growth initiatives. These statements may include words such as “anticipate,” “estimate,” “expect,” “assume”, “project,” “seek,” “plan,” “intend,” “believe,” “will,” “may,” “could,” “continue,” “likely,” “should,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events, but not all forward-looking statements contain these identifying words. The forward-looking statements contained in this press release are based on assumptions that Dayforce has made in light of its industry experience and its perceptions of historical trends, current conditions, expected future developments and other factors that it believes are appropriate under the circumstances. As users consider this press release, it should be understood that these statements are not guarantees of performance or results. These assumptions and Dayforce’s future performance or results involve risks and uncertainties (many of which are beyond its control). In particular:

    • its inability to maintain its high Cloud solutions growth rate, manage its domestic and international growth effectively, or execute on its growth strategy;
    • the impact of disruptions to the movement of funds to initiate payroll-related transactions on behalf of  customers;
    • its failure to manage its aging technical operations infrastructure;
    • system breaches, interruptions or failures, including cyber-security breaches, identity theft, or other disruptions that could compromise customer information or sensitive company information, including its ongoing consent order with the Federal Trade Commission regarding data protection;
    • its failure to comply with applicable privacy, data protection, information security, and financial services laws, regulations and standards;
    • its inability to successfully compete in the markets in which Dayforce operates and expand its current offerings into new markets or further penetrate existing markets due to competition;
    • its failure to properly update its solutions to enable its customers to comply with applicable laws;
    • its failure to provide new or enhanced functionality and features, including those that may involve artificial intelligence or machine learning;
    • its inability to maintain necessary third-party relationships, and third-party software licenses, and identify errors in the software it licenses;
    • its inability to offer and deliver high-quality technical support, implementation, and professional services;
    • its inability to attract and retain senior management employees and highly skilled employees;
    • the impact of its outstanding debt obligations on its financial condition, results of operations, and value of its common stock;
    • its ability to maintain effective internal control over financial reporting, and the effect of the existing material weakness in its internal control over financial reporting on its business, financial condition, and results of operations; or
    • the impact of adverse economic and market conditions on its business, operating results, or financial condition.

    Although Dayforce has attempted to identify important risk factors, additional factors or events that could cause Dayforce’s actual performance to differ from these forward-looking statements may emerge from time to time, and it is not possible for Dayforce to predict all of them. Should one or more of these risks or uncertainties materialize, or should any of Dayforce’s assumptions prove incorrect, its actual financial condition, results of operations, future performance, and business may vary in material respects from the performance projected in these forward-looking statements. In addition to any factors and assumptions set forth above in this press release, the material factors and assumptions used to develop the forward-looking information include, but are not limited to: the general economy remains stable; the competitive environment in the HCM market remains stable; the demand environment for HCM solutions remains stable; Dayforce’s implementation capabilities and cycle times remain stable; foreign exchange rates, both current and those used in developing forward-looking statements, specifically U.S. dollar to Canadian dollar, remain stable at, or near, current rates; Dayforce will be able to maintain its relationships with its employees, customers, and partners; Dayforce will continue to attract qualified personnel to support its development requirements and the support of its new and existing customers; and that the risk factors noted above, individually or collectively, do not have a material impact on Dayforce. Any forward-looking statement made by Dayforce in this press release speaks only as of the date on which it is made. Dayforce undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

       
    Dayforce, Inc.
    Condensed Consolidated Balance Sheets
    (Unaudited)    		  
       
        September 30,     December 31,  
        2024     2023  
    (In millions, except per share data)            
    Assets            
    Current assets:            
    Cash and equivalents   $ 494.1     $ 570.3  
    Restricted cash     —       0.8  
    Trade and other receivables, net     255.8       228.8  
    Prepaid expenses and other current assets     153.3       126.7  
    Total current assets before customer funds     903.2       926.6  
    Customer funds     4,000.7       5,028.6  
    Total current assets     4,903.9       5,955.2  
    Right of use lease assets, net     14.7       19.1  
    Property, plant, and equipment, net     228.3       210.1  
    Goodwill     2,394.5       2,293.9  
    Other intangible assets, net     228.3       230.2  
    Deferred sales commissions     215.6       192.1  
    Other assets     131.7       110.3  
    Total assets   $ 8,117.0     $ 9,010.9  
                 
    Liabilities and stockholders’ equity            
    Current liabilities:            
    Current portion of long-term debt   $ 7.3     $ 7.6  
    Current portion of long-term lease liabilities     6.0       7.0  
    Accounts payable     73.1       66.7  
    Deferred revenue     42.7       40.2  
    Employee compensation and benefits     77.9       92.9  
    Other accrued expenses     66.3       30.4  
    Total current liabilities before customer funds obligations     273.3       244.8  
    Customer funds obligations     4,004.6       5,090.1  
    Total current liabilities     4,277.9       5,334.9  
    Long-term debt, less current portion     1,209.9       1,210.1  
    Employee benefit plans     25.0       27.7  
    Long-term lease liabilities, less current portion     14.0       18.9  
    Other liabilities     34.2       21.1  
    Total liabilities     5,561.0       6,612.7  
    Commitments and contingencies            
    Stockholders’ equity:            
    Common stock, $0.01 par, 500.0 shares authorized, 157.8 and 156.3 shares issued and outstanding, respectively     1.6       1.6  
    Additional paid in capital     3,291.5       3,151.1  
    Accumulated deficit     (340.5 )     (317.8 )
    Accumulated other comprehensive loss     (396.6 )     (436.7 )
    Total stockholders’ equity     2,556.0       2,398.2  
    Total liabilities and stockholders’ equity   $ 8,117.0     $ 9,010.9  
       
    Dayforce, Inc.
    Condensed Consolidated Statements of Operations
    (Unaudited)    		  
       
        Three Months Ended
    September 30,    		     Nine Months Ended
    September 30,    		  
        2024     2023     2024     2023  
    (In millions, except per share data)                        
    Revenue:                        
    Recurring   $ 375.9     $ 325.4     $ 1,123.6     $ 958.2  
    Professional services and other     64.1       52.1       171.2       155.8  
    Total revenue     440.0       377.5       1,294.8       1,114.0  
    Cost of revenue:                        
    Recurring     87.4       80.5       265.1       239.4  
    Professional services and other     75.1       66.1       210.8       197.0  
    Product development and management     55.4       53.3       166.8       153.5  
    Depreciation and amortization     20.8       17.1       58.6       47.4  
    Total cost of revenue     238.7       217.0       701.3       637.3  
    Gross profit     201.3       160.5       593.5       476.7  
    Selling and marketing     86.4       61.8       248.5       177.5  
    General and administrative     94.1       72.2       269.4       204.9  
    Operating profit     20.8       26.5       75.6       94.3  
    Interest expense, net     8.8       8.9       33.2       27.2  
    Other (income) expense, net     (6.3 )     5.1       5.7       6.6  
    Income before income taxes     18.3       12.5       36.7       60.5  
    Income tax expense     16.3       16.3       29.4       51.3  
    Net income (loss)   $ 2.0     $ (3.8 )   $ 7.3     $ 9.2  
    Net income (loss) per share:                        
    Basic   $ 0.01     $ (0.02 )   $ 0.05     $ 0.06  
    Diluted   $ 0.01     $ (0.02 )   $ 0.05     $ 0.06  
    Weighted average shares outstanding:                        
    Basic     158.1       155.7       157.6       155.0  
    Diluted     159.7       155.7       159.9       158.2  
       
    Dayforce, Inc.
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)    		  
       
        Nine Months Ended
    September 30,    		  
        2024     2023  
    (In millions)            
    Cash flows from operating activities            
    Net income   $ 7.3     $ 9.2  
    Adjustments to reconcile net income to net cash provided by operating activities:            
    Deferred income tax (benefit) expense     (27.5 )     13.9  
    Depreciation and amortization     151.5       84.1  
    Amortization of debt issuance costs and debt discount     3.2       3.3  
    Loss on debt extinguishment     4.3       —  
    Provision for doubtful accounts     4.7       4.2  
    Net periodic pension and postretirement cost     7.6       0.9  
    Share-based compensation expense     118.4       118.0  
    Change in fair value of contingent consideration     9.0       11.8  
    Other     (1.2 )     0.3  
    Changes in operating assets and liabilities, excluding effects of acquisitions:            
    Trade and other receivables     (26.2 )     (62.0 )
    Prepaid expenses and other current assets     (4.5 )     (20.1 )
    Deferred sales commissions     (22.9 )     (25.9 )
    Accounts payable and other accrued expenses     5.9       8.5  
    Deferred revenue     (6.5 )     7.5  
    Employee compensation and benefits     (16.1 )     (23.2 )
    Accrued taxes     22.5       11.0  
    Payment of contingent consideration     (20.9 )     —  
    Other assets and liabilities     (8.5 )     (11.9 )
    Net cash provided by operating activities     200.1       129.6  
                 
    Cash flows from investing activities            
    Purchases of customer funds marketable securities     (483.2 )     (252.0 )
    Proceeds from sale and maturity of customer funds marketable securities     283.4       326.4  
    Purchases of marketable securities     (10.0 )     —  
    Proceeds from sale and maturity of marketable securities     7.6       —  
    Expenditures for property, plant, and equipment     (8.7 )     (15.4 )
    Expenditures for software and technology     (74.1 )     (72.9 )
    Acquisition costs, net of cash acquired     (173.1 )     —  
    Other     —       (1.0 )
    Net cash used in investing activities     (458.1 )     (14.9 )
                 
    Cash flows from financing activities            
    (Decrease) increase in customer funds obligations, net     (1,049.9 )     311.0  
    Proceeds from issuance of common stock under share-based compensation plans     22.0       40.3  
    Repurchases of common stock     (28.8 )     —  
    Proceeds from debt issuance     650.0       —  
    Repayment of long-term debt obligations     (646.5 )     (6.0 )
    Payment of debt refinancing costs     (11.4 )     —  
    Payment of contingent consideration     (3.0 )     —  
    Net cash (used in) provided by financing activities     (1,067.6 )     345.3  
                 
    Effect of exchange rate changes on cash, restricted cash, and equivalents     (18.2 )     5.1  
    Net (decrease) increase in cash, restricted cash, and equivalents     (1,343.8 )     465.1  
    Cash, restricted cash, and equivalents at beginning of period     3,421.4       3,151.2  
    Cash, restricted cash, and equivalents at end of period   $ 2,077.6     $ 3,616.3  
                 
    Reconciliation of cash, restricted cash, and equivalents to the condensed consolidated balance sheets            
    Cash and equivalents   $ 494.1     $ 510.3  
    Restricted cash     —       0.8  
    Restricted cash and equivalents included in customer funds     1,583.5       3,105.2  
    Total cash, restricted cash, and equivalents   $ 2,077.6     $ 3,616.3  
       
    Dayforce, Inc.
    Revenue Financial Measures
    (Unaudited)    		  
       
        Three Months Ended September 30,     Percentage change in revenue     Impact of
    changes in
    foreign
    currency (a)    		     Percentage change in revenue on a constant currency basis (a)  
        2024     2023     2024 vs. 2023           2024 vs. 2023  
        (In millions)                    
    Revenue:                              
    Recurring revenue:                              
    Dayforce recurring, excluding float   $ 292.0     $ 245.6       18.9 %     (0.1 )%     19.0 %
    Dayforce float     41.2       34.0       21.2 %     (0.3 )%     21.5 %
    Total Dayforce recurring     333.2       279.6       19.2 %     (0.1 )%     19.3 %
    Powerpay recurring, excluding float     20.2       19.6       3.1 %     (2.0 )%     5.1 %
    Powerpay float     4.2       4.4       (4.5 )%     (2.2 )%     (2.3 )%
    Total Powerpay recurring     24.4       24.0       1.7 %     (2.0 )%     3.7 %
    Total Cloud recurring     357.6       303.6       17.8 %     (0.3 )%     18.1 %
    Other recurring (b)     18.3       21.8       (16.1 )%     0.9 %     (17.0 )%
    Total recurring revenue     375.9       325.4       15.5 %     (0.2 )%     15.7 %
    Professional services and other (c)     64.1       52.1       23.0 %     (— )%     23.0 %
    Total revenue   $ 440.0     $ 377.5       16.6 %     (0.1 )%     16.7 %
    a) Dayforce has calculated percentage change in revenue on a constant currency basis by applying the average foreign exchange rate in effect during the comparable prior period. Please refer to the “Non-GAAP Financial Measures” section for discussion of percentage change in revenue on a constant currency basis.
    b) Float attributable to Other recurring was $0.2 million and $0.4 million for the three months ended September 30, 2024, and 2023, respectively.
    c) For the three months ended September 30, 2024, Professional services and other consisted of $61.8 million and $2.3 million associated with Dayforce and Other, respectively. For the three months ended September 30, 2023, Professional services and other consisted of $48.2 million, $3.8 million, and $0.1 million associated with Dayforce, Other, and Powerpay, respectively.
        Nine Months Ended September 30,     Percentage change in revenue    
    Impact of
    changes in
    foreign
    currency (a)    		     Percentage change in revenue on a constant currency basis (a)  
        2024     2023     2024 vs. 2023           2024 vs. 2023  
        (In millions)                    
    Revenue:                              
    Recurring revenue:                              
    Dayforce recurring, excluding float   $ 852.1     $ 706.5       20.6 %     (0.2 )%     20.8 %
    Dayforce float     139.9       112.5       24.4 %     (0.2 )%     24.6 %
    Total Dayforce recurring     992.0       819.0       21.1 %     (0.2 )%     21.3 %
    Powerpay recurring, excluding float     60.6       58.8       3.1 %     (1.2 )%     4.3 %
    Powerpay float     14.4       13.4       7.5 %     (0.7 )%     8.2 %
    Total Powerpay recurring     75.0       72.2       3.9 %     (1.1 )%     5.0 %
    Total Cloud recurring     1,067.0       891.2       19.7 %     (0.3 )%     20.0 %
    Other recurring (b)     56.6       67.0       (15.5 )%     (1.0 )%     (14.5 )%
    Total recurring revenue     1,123.6       958.2       17.3 %     (0.3 )%     17.6 %
    Professional services and other (c)     171.2       155.8       9.9 %     (0.2 )%     10.1 %
    Total revenue   $ 1,294.8     $ 1,114.0       16.2 %     (0.3 )%     16.5 %
    a) Dayforce has calculated percentage change in revenue on a constant currency basis by applying the average foreign exchange rate in effect during the comparable prior period. Please refer to the “Non-GAAP Financial Measures” section for discussion of percentage change in revenue on a constant currency basis.
    b) Float attributable to Other recurring was $0.9 million and $1.6 million for the nine months ended September 30, 2024, and 2023, respectively.
    c) For the nine months ended September 30, 2024, Professional services and other consisted of $164.4 million, $6.6 million, and $0.2 million associated with Dayforce, Other, and Powerpay, respectively. For the three months ended September 30, 2023, Professional services and other consisted of $144.6 million, $11.1 million, and $0.1 million associated with Dayforce, Other, and Powerpay, respectively.
       
    Dayforce, Inc.
    Share-Based Compensation Expense and Related Employer Taxes
    (Unaudited)    		  
       
        Three Months Ended
    September 30,    		     Nine Months Ended
    September 30,    		  
        2024     2023     2024     2023  
        (in millions)  
    Cost of revenue – Cloud   $ 3.0     $ 3.9     $ 9.6     $ 11.9  
    Cost of revenue – Other     0.6       0.5       1.7       1.2  
    Professional services and other     4.0       4.4       11.7       13.5  
    Product development and management     8.1       7.8       25.0       25.7  
    Sales and marketing     9.4       6.4       27.2       19.0  
    General and administrative     14.5       13.4       43.2       47.0  
    Total   $ 39.6     $ 36.4     $ 118.4     $ 118.3  
       
    Dayforce, Inc.
    Reconciliation of GAAP to Non-GAAP Financial Measures
    (Unaudited)    		  
       
    The following tables reconcile Dayforce’s reported results to its non-GAAP financial measures:  
       
        Three Months Ended September 30, 2024  
        As reported     As reported margins (a)     Share-based
    compensation    		     Amortization     Other (b)     As adjusted (b)     As adjusted margins (a)  
        (Dollars in millions, except per share data)  
    Cost of Cloud recurring revenue   $ 75.1       79.0 %   $ 3.0     $ —     $ 0.1     $ 72.0       79.9 %
                                               
    Operating profit   $ 20.8       4.7 %   $ 39.6     $ 29.6     $ 13.2     $ 103.2       23.5 %
                                               
    Net income   $ 2.0       0.5 %   $ 39.6     $ 29.6     $ 3.3     $ 74.5       16.9 %
    Interest expense, net     8.8             —       —       —       8.8        
    Income tax expense (c)     16.3             —       —       (4.0 )     20.3        
    Depreciation and amortization     52.1             —       29.6       —       22.5        
    EBITDA   $ 79.2           $ 39.6     $ —     $ 7.3     $ 126.1       28.7 %
                                               
    Net income per share – diluted (d)   $ 0.01           $ 0.25     $ 0.19     $ 0.02     $ 0.47        
    a) Cloud recurring gross margin is defined as total Cloud recurring revenue less cost of Cloud recurring revenue as a percentage of total Cloud recurring revenue. Operating profit margin and net profit margin are determined by calculating the percentage operating profit and net (loss) income are of total revenue. Please refer to the “Non-GAAP Financial Measures” section for additional information on the as adjusted margins.
    b) The as adjusted column is a non-GAAP financial measure, adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items including $9.0 million related to the fair value adjustment for the DataFuzion contingent consideration, $3.2 million of restructuring expenses, $3.2 million of costs associated with the planned termination of its frozen U.S. pension plan, $1.0 million of fees associated with initiating the receivables securitization program, and $9.1 million of foreign exchange gain, along with a $4.0 million net adjustment for the effect of income taxes related to these items. Please refer to the “Non-GAAP Financial Measures” section for additional information on the as adjusted metrics.
    c) Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.
    d) GAAP and Adjusted diluted net income per share are calculated based upon 159.7 million weighted average shares of common stock.
        Three Months Ended September 30, 2023  
        As reported     As reported margins (a)     Share-based
    compensation    		     Amortization     Other (b)     As adjusted (b)     As adjusted margins (a)  
        (Dollars in millions, except per share data)  
    Cost of Cloud recurring revenue   $ 69.9       77.0 %   $ 3.9     $ —     $ —     $ 66.0       78.3 %
                                               
    Operating profit   $ 26.5       7.0 %   $ 36.4     $ 20.5     $ 6.0     $ 89.4       23.7 %
                                               
    Net (loss) income   $ (3.8 )     (1.0 )%   $ 36.4     $ 20.5     $ 5.2     $ 58.3       15.4 %
    Interest expense, net     8.9             —       —       —       8.9        
    Income tax expense (c)     16.3             —       —       (5.5 )     21.8        
    Depreciation and amortization     38.7             —       20.5       —       18.2        
    EBITDA   $ 60.1           $ 36.4     $ —     $ 10.7     $ 107.2       28.4 %
                                               
    Net (loss) income per share – diluted (d)   $ (0.02 )         $ 0.23     $ 0.13     $ 0.03     $ 0.37        
    a) Cloud recurring gross margin is defined as total Cloud recurring revenue less cost of Cloud recurring revenue as a percentage of total Cloud recurring revenue. Operating profit margin and net profit margin are determined by calculating the percentage operating profit and net income are of total revenue. Please refer to the “Non-GAAP Financial Measures” section for additional information on the as adjusted margins.
    b) The as adjusted column is a non-GAAP financial measure, adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items including $4.7 million of foreign exchange loss, $4.6 million related to the impact of the fair value adjustment for the DataFuzion contingent consideration, $1.2 million of restructuring expenses, and $0.2 million related to the abandonment of certain leased facilities, along with a $5.5 million net adjustment for the effect of income taxes related to these items. Please refer to the “Non-GAAP Financial Measures” section for additional information on the as adjusted metrics.
    c) Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.
    d) GAAP diluted net loss per share is calculated based upon 155.7 weighted average shares of common stock, and Adjusted diluted net income per share is calculated based upon 158.8 million weighted average shares of common stock.
        Nine Months Ended September 30, 2024  
        As reported     As reported margins (a)     Share-based
    compensation    		     Amortization     Other (b)     As adjusted (b)     As adjusted margins (a)  
        (Dollars in millions, except per share data)  
    Cost of Cloud recurring revenue   $ 228.5       78.6 %   $ 9.6     $ —     $ 0.9     $ 218.0       79.6 %
                                               
    Operating profit   $ 75.6       5.8 %   $ 118.4     $ 87.5     $ 25.7     $ 307.2       23.7 %
                                               
    Net income   $ 7.3       0.6 %   $ 118.4     $ 87.5     $ 5.5     $ 218.7       16.9 %
    Interest expense, net     33.2             —       —       —       33.2        
    Income tax expense (c)     29.4             —       —       (27.0 )     56.4        
    Depreciation and amortization     151.5             —       87.5       —       64.0        
    EBITDA   $ 221.4           $ 118.4     $ —     $ 32.5     $ 372.3       28.8 %
                                               
    Net income per share – diluted (d)   $ 0.05           $ 0.74     $ 0.55     $ 0.03     $ 1.37        
    a) Cloud recurring gross margin is defined as total Cloud recurring revenue less cost of Cloud recurring revenue as a percentage of total Cloud recurring revenue. Operating profit margin and net profit margin are determined by calculating the percentage operating profit and net income are of total revenue. Please refer to the “Non-GAAP Financial Measures” section for additional information on the as adjusted margins.
    b) The as adjusted column is a non-GAAP financial measure, adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items including $15.7 million of restructuring expenses, $9.7 million of costs associated with the planned termination of its frozen U.S. pension plan, $9.0 million related to the fair value adjustment for the DataFuzion contingent consideration, $1.0 million of fees associated with initiating the receivables securitization program, and $2.9 million of foreign exchange gain, along with a $27.0 million net adjustment for the effect of income taxes related to these items. Please refer to the “Non-GAAP Financial Measures” section for additional information on the as adjusted metrics.
    c) Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.
    d) GAAP and Adjusted diluted net income per share are calculated based upon 159.9 million weighted average shares of common stock.
        Nine Months Ended September 30, 2023  
        As reported     As reported margins (a)     Share-based
    compensation    		     Amortization     Other (b)     As adjusted (b)     As adjusted margins (a)  
        (Dollars in millions, except per share data)  
    Cost of Cloud recurring revenue   $ 204.8       77.0 %   $ 11.9     $ —     $ —     $ 192.9       78.4 %
                                               
    Operating profit   $ 94.3       8.5 %   $ 118.3     $ 32.7     $ 15.6     $ 260.9       23.4 %
                                               
    Net income   $ 9.2       0.8 %   $ 118.3     $ 32.7     $ (1.8 )   $ 158.4       14.2 %
    Interest expense, net     27.2             —       —       —       27.2        
    Income tax expense (c)     51.3             —       —       (22.7 )     74.0        
    Depreciation and amortization     84.1             —       32.7       —       51.4        
    EBITDA   $ 171.8           $ 118.3     $ —     $ 20.9     $ 311.0       27.9 %
                                               
    Net income per share – diluted (d)   $ 0.06           $ 0.75     $ 0.21     $ (0.01 )   $ 1.00        
    a) Cloud recurring gross margin is defined as total Cloud recurring revenue less cost of Cloud recurring revenue as a percentage of total Cloud recurring revenue. Operating profit margin and net profit margin are determined by calculating the percentage operating profit and net income are of total revenue. Please refer to the “Non-GAAP Financial Measures” section for additional information on the as adjusted margins.
    b) The as adjusted column is a non-GAAP financial measure, adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items including $11.8 million related to the impact of the fair value adjustment for the DataFuzion contingent consideration, $5.3 million of foreign exchange loss, $3.4 million of restructuring expenses, and $0.4 million related to the abandonment of certain leased facilities, along with a $22.7 million net adjustment for the effect of income taxes related to these items. Please refer to the “Non-GAAP Financial Measures” section for additional information on the as adjusted metrics.
    c) Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.
    d) GAAP and Adjusted diluted net income per share are calculated based upon 158.2 million weighted average shares of common stock.
       
    Dayforce, Inc.
    Reconciliation of Free Cash Flow
    (Unaudited)    		  
       
        Three Months Ended
    September 30,    		     Nine Months Ended
    September 30,    		  
        2024     2023     2024     2023  
        (In millions)  
    Net cash provided by operating activities   $ 91.8     $ 36.6     $ 200.1     $ 129.6  
    Expenditures for property, plant, and equipment     (2.0 )     (5.3 )     (8.7 )     (15.4 )
    Expenditures for software and technology     (26.4 )     (26.5 )     (74.1 )     (72.9 )
    Free cash flow   $ 63.4     $ 4.8     $ 117.3     $ 41.3  


    Non-GAAP Financial Measures

    Dayforce uses certain non-GAAP financial measures in this release including:

    Non-GAAP Financial Measure   GAAP Financial Measure
    EBITDA   Net (loss) income
    Adjusted EBITDA   Net (loss) income
    Adjusted EBITDA margin   Net profit margin
    Adjusted Cloud recurring gross margin   Cloud recurring gross margin
    Adjusted operating profit   Operating profit
    Adjusted operating profit margin   Operating profit margin
    Adjusted net income   Net (loss) income
    Adjusted net profit margin   Net profit margin
    Adjusted diluted net income per share   Diluted net (loss) income per share
    Free cash flow   Net cash provided by operating activities
    Percentage change in revenue, including total revenue and revenue by solution, on a constant currency basis   Percentage change in revenue, including total revenue and revenue by solution
    Dayforce recurring revenue per customer   No directly comparable GAAP measure

    Dayforce believes that these non-GAAP financial measures are useful to management and investors as supplemental measures to evaluate its overall operating performance including comparison across periods and with competitors. Dayforce’s management team uses these non-GAAP financial measures to assess operating performance because these financial measures exclude the results of decisions that are outside the normal course of its business operations, and are used for internal budgeting and forecasting purposes both for short- and long-term operating plans. Additionally, Adjusted EBITDA is a component of its management incentive plan and Adjusted Cloud recurring gross margin and Adjusted operating profit are components of certain performance based equity awards for its named executive officers. Additionally, Dayforce believes that the non-GAAP financial measure free cash flow is meaningful to investors because it is a measure of liquidity that provides useful information in understanding and evaluating the strength of Dayforce’s liquidity and future ability to generate cash that can be used for strategic opportunities or investing in its business. The exclusion of capital expenditures facilitates comparisons of Dayforce’s liquidity on a period-to-period basis and excludes items that management does not consider to be indicative of Dayforce’s liquidity.

    These non-GAAP financial measures are not required by, defined under, or presented in accordance with, GAAP, and should not be considered as alternatives to Dayforce’s results as reported under GAAP, have important limitations as analytical tools, and its use of these terms may not be comparable to similarly titled measures of other companies in its industry. Dayforce’s presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by similar items to those eliminated in this presentation. Please refer to Dayforce’s full financial results, including further discussion of non-GAAP financial measures, on the Investor Relations portion of its website at investors.dayforce.com.

    Dayforce defines its non-GAAP financial measures as follows:

    • EBITDA is defined as net (loss) income before interest, taxes, depreciation, and amortization, and Adjusted EBITDA is EBITDA, as adjusted to exclude share-based compensation expense and related employer taxes, and certain other items.
    • Adjusted EBITDA margin is determined by calculating the percentage Adjusted EBITDA is of total revenue.
    • Adjusted Cloud recurring gross margin is defined as Cloud recurring gross margin, as adjusted to exclude share-based compensation and related employer taxes, and certain other items, as a percentage of total Cloud recurring revenue.
    • Adjusted operating profit is defined as operating profit, as adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items.
    • Adjusted net income is defined as net (loss) income, as adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items, all of which are adjusted for the effect of income taxes.
    • Adjusted net profit margin is determined by calculating the percentage Adjusted net income is of total revenue.
    • Adjusted diluted net income per share is calculated by dividing adjusted net income by diluted weighted average common shares outstanding. When adjusted diluted net income per share is positive, diluted weighted average common shares outstanding incorporate the effect of dilutive equity instruments.
    • Free cash flow is defined as net cash provided by operating activities, as adjusted to exclude capital expenditures.
    • Percentage change in revenue, including total revenue and revenue by solution, on a constant currency basis is calculated by applying the average foreign exchange rate in effect during the comparable prior period.
    • Dayforce recurring revenue per customer is an indicator of the average size of Dayforce recurring revenue customers. To calculate Dayforce recurring revenue per customer, the Company starts with Dayforce recurring revenue on a constant currency basis by applying the same exchange rate to all comparable periods for the trailing twelve months and excludes float revenue and Ascender, ADAM HCM, and eloomi revenue. This amount is divided by the number of live Dayforce customers at the end of the trailing twelve month period, excluding Ascender, ADAM HCM, and eloomi. The Company has not reconciled the Dayforce recurring revenue per customer because there is no directly comparable GAAP financial measure.

    Source: Dayforce, Inc.

    For further information, please contact:

    Investor Relations
    1-844-829-9499
    investors@dayforce.com

    Public Relations
    1-647-417-2117
    teri.murphy@dayforce.com

    The MIL Network –

  • MIL-OSI: Amplify ETFs Declares October Income Distributions for its Income ETFs

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, Oct. 30, 2024 (GLOBE NEWSWIRE) — Amplify ETFs announces October income distributions for its income ETFs.

    ETF Name Ticker Amount per Share Ex-Date Record Date Payable Date
    Amplify Samsung SOFR ETF SOFR $ 0.40475 10/30/24 10/30/24 10/31/24
    Amplify Cash Flow High Income ETF HCOW $ 0.17240 10/30/24 10/30/24 10/31/24
    Amplify CWP Enhanced Dividend Income ETF DIVO $ 0.16419 10/30/24 10/30/24 10/31/24
    Amplify CWP International Enhanced Dividend Income ETF IDVO $ 0.15609 10/30/24 10/30/24 10/31/24
    Amplify CWP Growth & Income ETF QDVO $ 0.15131 10/30/24 10/30/24 10/31/24
    Amplify Natural Resources Dividend Income ETF NDIV $ 0.12455 10/30/24 10/30/24 10/31/24
    Amplify High Income ETF YYY $ 0.12000 10/30/24 10/30/24 10/31/24

    About Amplify ETFs
    Amplify ETFs, sponsored by Amplify Investments, has over $10 billion in assets across its suite of ETFs (as of 10/21/2024). Amplify ETFs deliver expanded investment opportunities for investors seeking growth, income, and risk-managed strategies across a range of actively managed and index-based ETFs. Learn more visit AmplifyETFs.com.

    Sales Contact:
    Amplify ETFs
    855-267-3837
    info@amplifyetfs.com    		 Media Contacts:
    Gregory FCA for Amplify ETFs
    Kerry Davis
    610-228-2098
    amplifyetfs@gregoryfca.com

    This information is not intended to provide and should not be relied upon for accounting, legal or tax advice, or investment recommendations. To receive a distribution, you must be a registered shareholder of the fund on the record date. Distributions are paid to shareholders on the payment date. There is no guarantee that distributions will be made in the future. Your own trading will also generate tax consequences and transaction expenses. Past distributions are not indicative of future distributions. Please consult your tax professional or financial adviser for more information regarding your tax situation.

    Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in Amplify Funds’ statutory and summary prospectuses, which may be obtained at AmplifyETFs.com. Read the prospectuses carefully before investing.

    Investing involves risk, including the possible loss of principal.

    Amplify ETFs are distributed by Foreside Services, LLC.

    The MIL Network –

  • MIL-OSI: Xtract One’s New Gateway Selected to Secure Tift County Schools

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Oct. 30, 2024 (GLOBE NEWSWIRE) — Xtract One Technologies (TSX: XTRA)(OTCQX: XTRAF)(FRA: 0PL) (“Xtract One” or the “Company”) today announced their newly-debuted Xtract One Gateway (“Gateway”) has been selected by Tift County Schools in Tifton, Georgia, to protect school entrances, ensuring a welcoming, streamlined, and secure experience for all individuals entering the buildings.

    Tift County Schools is set to deploy Xtract One Gateway at the entrances of their high school and middle schools, with plans to deploy the system across all K-12 schools in the future. This installation aims to strengthen safety and security measures within the district, and highlights the joint dedication to prioritize the well-being of students and staff while maintaining a positive school atmosphere. By differentiating between everyday items—such as laptops, tablets, 3-ring binders, cell phones, and keys—and potential threats such as firearms, Gateway ensures a smooth and secure entry experience for students and visitors who enter carrying a medium volume of personal belongings. The system features advanced bi-directional screening technology for weapon detection and identification, allowing individuals to keep their personal belongings on them, and reducing the need for separate bag searches, thereby dramatically reducing screening times.

    “As a district with 11 schools, nearly 7,700 students, and over 1,000 teachers and staff members, it’s critically important for us to prioritize our students’ learning, well-being, and overall school experience. We’re excited to be using Xtract One Gateway to further our mission to protect and nurture the future generations of Tift County,” said Jonathan Judy, Chief Information Officer at Tift County School District. “We investigated several technologies to secure our facilities and found that Gateway provided a broad set of weapons detection while also significantly reducing unnecessary bag searches, x-ray machines, or complex operations. Our students, teachers, staff, and visitors deserve the best, and with Xtract One’s enhanced security solution, we’ll be able to deliver an atmosphere district-wide for anyone entering our schools that is even more secure, with an experience that still remains inviting.”

    “Safe schools are a prerequisite for student achievement and, to a larger extent, an important standard for the well-being of the surrounding community that supports the school. We’re continuing to deliver innovative security solutions that empower schools to address modern threats and enhance safety without compromising the welcoming environment that students deserve,” said Peter Evans, CEO of Xtract One. “With technology like Gateway complementing existing security operations, students will benefit from enhanced, non-invasive security that allows them to walk into school freely without needing to divest their personal belongings. This sets a new standard for school safety and allows students to focus on their education.”

    To learn more, visit www.xtractone.com.

    About Xtract One
    Xtract One Technologies is a leading technology-driven provider of threat detection and security solutions leveraging AI to deliver seamless and secure experiences. The Company makes unobtrusive weapons and threat detection systems that enable facility operators to prioritize and deliver improved “Walk-right-In” experiences while providing unprecedented safety. Xtract One’s innovative portfolio of AI-powered Gateway solutions excels at allowing facilities to discreetly screen and identify weapons and other threats at points of entry and exit without disrupting the flow of traffic. With solutions built to serve the unique market needs for schools, hospitals, arenas, stadiums, manufacturing, distribution, and other customers, Xtract One is recognized as a market leader delivering the highest security in combination with the best individual experience. For more information, visit www.xtractone.com or connect on Facebook, X, and LinkedIn.

    Forward Looking Statements
    This news release contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are “forward-looking statements”. Forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward looking statements. Such risks and uncertainties include, but are not limited to, the risks detailed from time to time in the continuous disclosure filings made by the Company with securities regulations. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. Although the Company has attempted to identify important risk factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other risk factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. The Company has no obligation to update any forward looking statement, even if new information becomes available as a result of future events, new information or for any other reason except as required by law.

    No securities exchange or commission has reviewed or accepts responsibility for the adequacy or accuracy of this release.

    For further information, please contact:
    Xtract One Inquiries: info@xtractone.com, http://www.xtractone.com
    Investor Relations: Chris Witty, Darrow Associates, cwitty@darrowir.com, 646-438-9385
    Media Contact: Kristen Aikey, JMG Public Relations, kristen@jmgpr.com, 212-206-1645

    The MIL Network –