Category: Finance

  • MIL-OSI USA: Ricketts, Fischer Secure $5.4 Million Grant for Nebraska Agricultural Supply Chain Efficiency Project

    US Senate News:

    Source: United States Senator Pete Ricketts (Nebraska)
    October 29, 2024
    OMAHA, NE — Today, U.S. Senators Pete Ricketts (R-NE) and Deb Fischer (R-NE) announced a $5.4 million federal grant to enhance the Southeastern Nebraska Agricultural Supply Chain Efficiency Project. The grant was awarded to Manning Rail, Inc. to rehabilitate a rail line between Fairmont and Burress in Filmore County.
    “Food security is national security so enhancing Nebraska’s agricultural supply chain is an important use of these funds,” said Senator Ricketts. “Restoring the rail line will enhance the competitiveness of more than 100 local farmers. This project will not only improve grain transporting efficiency, but also enhance market access for local producers.”
    “Investing in infrastructure keeps rural Nebraska strong,” said Senator Fischer. “Rebuilding the rail line between Fairmont and Burress will connect more than 100 producers to the global marketplace and position Fillmore County for future success.”
    “We are grateful and excited to have been awarded this grant because of the tremendous opportunity it offers regional producers,” said Kent Manning, President of Manning Rail. “When we purchased the line twenty years ago, it had little chance of surviving. Since then, we have worked very hard to restore it. This grant provides the necessary funding for safe and efficient transportation of grain via rail. Once this project is completed, producers for generations to come will have access to 110-car shuttle trains on the BNSF railroad.”
    This project will focus on development, final design, and construction activities to restore the rail line. Manning Rail and Filmore County will contribute the 25 percent non-Federal match. The project qualifies for the statutory set-aside for rural area projects.

    MIL OSI USA News

  • MIL-OSI Europe: Boost for climate adaptation in Europe as EIB and WWF join forces to develop Nature-based Solutions at scale

    Source: European Investment Bank

    EIB

    • EIB and WWF will collaborate to mobilise early-stage funding for Nature-based Solutions.
    • Partnership will develop projects to strengthen climate adaptation by working with nature.
    • Accord signed during United Nations Convention on Biodiversity COP16 in Colombia.

    With Europe facing increasingly intense floods and droughts, the European Investment Bank (EIB) and WWF are teaming up to accelerate climate adaptation in Europe by developing Nature-based Solutions (NbS) that will help to buffer societies and economies against the worsening impacts of the climate and biodiversity crises.

    In a Memorandum of Understanding, the EIB and WWF pledged to promote Nature-based Solutions across Europe to tackle the twin crises of climate change and biodiversity loss. Signed during the United Nations Convention on Biodiversity COP16 in Colombia, the four-year partnership will focus on ecosystem restoration projects linked to sectors such as agriculture, energy, and urban resilience, which will harness the power of nature to strengthen climate adaptation in Europe – the fastest-warming continent on Earth.

    By investing in enhancing the health of ecosystems, the projects will also help to reverse nature loss in the continent. The recent WWF Living Planet Report found that species populations have declined by 35 per cent on average in Europe and Central Asia since 1970.

    Under the agreement, WWF will establish an ‘Incubation facility’ to develop a pipeline of Nature-based Solutions from origination until they are investment-ready, while the EIB will provide guidance on mobilising public and private funding for them.

    “Europe’s adaptation to climate change lags far behind what is needed,” said EIB Vice-President, Ambroise Fayolle, ”We want to support more nature-based-solution projects to restore and protect biodiversity and strengthen the climate resilience of our society. Partnerships with organisations like WWF with a strong presence on the ground are a relevant way for us to help deliver tangible results on a large scale.”

    Nature-based solutions face significant obstacles including a lack of awareness among investors and a need for consensus building among a wide range of local players.

    “Nowhere is immune from the climate crisis. Europe has been hit by a series of historic floods and droughts in recent years, devastating lives and livelihoods – and they are only going to get worse unless we urgently and drastically scale up investment in Nature-based Solutions,” said WWF Director General Kirsten Schuijt. “This partnership will do exactly that by creating a pipeline of projects that work with nature rather than against it. These projects will enhance the power of nature to protect Europeans from the worsening impacts of climate change, particularly droughts and extreme floods along the continent’s rivers and coasts.”

    The announcement of this partnership is timely as the new European Commission has announced that it will work on a European Climate Adaptation Plan, which will support building preparedness and planning with regular science-based risk assessments and a European Water Resilience Strategy.

    It also comes after the EU Nature Restoration Law was adopted in August 2024. This regulation combines an overarching restoration objective for the long-term recovery of nature in the EU with binding restoration targets for specific habitats and species.

    Over the years, the EIB has worked with WWF on a range of matters including Nature-based Solutions, biodiversity, climate resilience and ecosystem restoration. Cooperation has focused on the Sustainable Blue Economy Finance Principles, of which the EIB is one of the founding partners alongside WWF. Another example is EIB cooperation with WWF-Greece on stakeholder engagement to identify and develop nature-based solutions for flood resilience in Thessaly, Greece.

    EIB at COP16

    The EIB delegation will be led by Vice-President Ambroise Fayolle. For interview requests with members of the EIB delegation please get in touch with the press contact below. Find out more about EIB at the United Nations Biodiversity Conference here.

    Background information

    The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It is active in more than 160 countries and makes long-term finance available for sound investment in order to contribute towards EU policy goals.

    As the Climate Bank, the EIB recognises that climate change and nature loss are deeply interconnected and mutually reinforcing environmental crises. The EIB Climate Adaptation Plan builds on the EU Adaptation Strategy, setting out how the EU can adapt to the unavoidable impacts of climate change. The EIB Environment Framework outlines the EIB’s delivery of environmental sustainability impacts at scale. Mainstreaming nature-positive investments, increasing the co-benefits for nature, protecting biodiversity and managing the risks from biodiversity and nature loss are key elements of the Framework. 

    WWF is one of the world’s largest and most respected independent conservation organizations, with over 5 million supporters and a global network active in over 100 countries. WWF’s mission is to stop the degradation of the earth’s natural environment and to build a future in which humans live in harmony with nature, by conserving the world’s biological diversity, ensuring that the use of renewable natural resources is sustainable, and promoting the reduction of pollution and wasteful consumption

    MIL OSI Europe News

  • MIL-OSI Europe: MOTION FOR A RESOLUTION on the audit of green investments in light of Northvolt developments – B10-0069/2024

    Source: European Parliament

    B10‑0069/2024

    Motion for a European Parliament resolution on the audit of green investments in light of Northvolt developments

    The European Parliament,

     having regard to Rule 149 of its Rules of Procedure,

    A. whereas concerns have arisen over the efficiency and cost-effectiveness of EU climate policy, with companies such as Northvolt benefiting from public subsidies and loans from the European Investment Bank, despite considerable financial difficulties;

    B. whereas the European Court of Auditors’ special report 14/2024 found that green spending under the Recovery and Resilience Facility (RRF) could be overestimated by up to EUR 34.5 billion, with some projects having minimal impact on the energy transition or even causing environmental harm;

    1. Urges the Commission to ensure rigorous oversight of green investments benefiting from EU funding and to assess their efficiency and overall contribution to the EU’s efforts to improve its competitiveness;

    2. Stresses the importance of safeguarding taxpayer contributions by ensuring that public funds and subsidies from the EU budget and the RRF are used transparently and provide clear value for money;

    3. Calls for the establishment of clear, measurable criteria for green investments under the EU budget and RRF to ensure that only projects with significant and proven environmental and economic benefits receive funding, thereby enhancing accountability and long-term sustainability.

     

    MIL OSI Europe News

  • MIL-OSI United Kingdom: Investing in the first peatland UNESCO world heritage site in the world

    Source: Scotland – Highland Council

    The Flow Country Partnership has received funding from the Community Loan Fund towards their pioneering peatland restoration project in Sutherland. The fund is delivered by Highland Opportunity (Investments) Limited, HOIL, on behalf of The Highland Council.

    The Community Loan fund aims to encourage and support Highland based community and third sector organisations to start up and grow and contribute to a thriving and sustainable Highland and Scottish economy.  Loans can be used for capital start up-costs, growth of an existing organisation, working capital and bridging finance, with a repayment period of 1 to 10 years.

    Peatland restoration is a vital part of Scotland’s twin goals of reducing emissions and restoring nature.  The Flow Country Partnership was founded in 2006 and became a Scottish Charitable Incorporated Organisation (SCIO) in February 2024 to bring together a community including crofters, farmers, landowners/managers, local businesses, residents, ecologists and local government to grow the resilience of the Flow Country and its people. This restoration will help achieve emission reduction by restoring the capacity of the peatlands to store carbon and improving biodiversity in the first and only peatland UNESCO World Heritage Site in the World.

    The partnership approached HOIL for funding to finance the peatlands restoration project on a farming and sporting estate.  Securing loan funding before the sale of carbon credits will support its long-term aspirations to become a self-sustaining organisation whilst restoring and protecting the ecosystem. 

    The Flow Country Partnership is a SCIO, with a trading subsidiary, Flow Country Restoration Limited and blends public and private finance to deliver its objectives. This project is supported by The Facility for Investment Ready Nature in Scotland (FIRNS) and is being delivered by NatureScot in collaboration with The Scottish Government and in partnership with the National Lottery Heritage Fund and the Scottish Government’s Peatland ACTION Fund.  Trustees,  initiative partners and stakeholders,  amongst others are The Highland Council,  Highlands & Islands Enterprise, Skills Development Scotland, RSPB,  North Highland Initiative, the Environmental Research Institute UHI and local landowners, farmers, crofters and estate owners.

    Councillor Paul Oldham, Chair of HOIl said: “I welcome this opportunity to help The Flow Country Partnership move forward with their Peatland Restoration project which not only helps improve the environment and create carbon storage but also brings local work to Caithness and Sutherland.

    “The Community Loan Fund which is managed by HOIL provides accessible and affordable finance for community projects across the Highlands and is one of several funds we can use to help projects across the area.”

    Graham Neville, Flow Country Partnership Vice-chair and director of Flow Country Restoration Limited added: “We are pleased to have the support of Highland Opportunity (Investments) Limited for our peatland restoration project. This funding is a key step in restoring this vital landscape, which plays a crucial role in carbon storage and biodiversity, while also contributing to Scotland’s Net Zero ambitions. By working with local partners, we aim to create lasting community benefits, support sustainable carbon investments, and protect The Flow Country.”

    To find out more about the support HOIL can provide to Highland community organisations and businesses please visit their website

    MIL OSI United Kingdom

  • MIL-OSI Canada: Statement on the conclusion of the food safety investigation related to the recall of various Silk and Great Value brand plant-based refrigerated beverages

    Source: Government of Canada News

    The Canadian Food Inspection Agency issued a statement related to the recent recall of Silk and Great Value plant-based refrigerated beverages due to Listeria monocytogenes contamination.

    October 29, 2024 – Ottawa, Ontario – Canadian Food Inspection Agency

    The Canadian Food Inspection Agency (CFIA) issued the following statement related to the recent recall of Silk and Great Value plant-based refrigerated beverages due to Listeria monocytogenes contamination:

    “The CFIA is deeply saddened by the recent listeriosis outbreak associated with certain Silk and Great Value plant-based beverages. It extends heartfelt sympathies to the families of the three Canadians who tragically lost their lives and all those who have been affected by the outbreak.

    With the conclusion of CFIA’s food safety investigation related to contaminated products from Danone Canada’s third-party manufacturing plant Joriki Inc. in Pickering, we are sharing the details of the findings.

    Initiation of CFIA investigation

    On June 20, 2024, our investigation began when Public Health Ontario informed us of an outbreak of listeriosis illness and an initial detection of Listeria monocytogenes, in a sample of Silk unsweetened coconut milk. Over the following days, CFIA worked closely with public health partners to confirm the link between the product and the illnesses and deaths.

    As soon as the link was confirmed, on July 8, 2024, a recall warning was issued for several Silk and Great Value plant-based refrigerated beverages due to potential Listeria monocytogenes contamination, and the affected plant lines were immediately shut down.

    As part of the recall being issued, the CFIA visited the Joriki plant in Pickering on 6 occasions, while verifying the affected products were removed from the market. The CFIA continues to monitor the recall’s effectiveness.

    Investigation outcomes and results

    Since then, Danone Canada and Joriki Inc. and the CFIA conducted product and environmental tests. The presence of Listeria monocytogenes in the facility was confirmed on July 9, 2024.

    The investigation was not able to confirm the primary source of the contamination within the establishment, which is not uncommon with investigations regarding pasteurized products like plant-based beverages – listeria cannot survive pasteurization – however, cross-contamination could have occurred after processing.

    Joriki is required to follow federal laws to ensure the safety of the products they sell. Health Canada’s Policy on Listeria monocytogenes in ready-to-eat foods also outlines how plants like Joriki should have strict controls in place to prevent Listeria contamination.

    During the course of its investigation, the CFIA discovered that the facility did not properly implement environmental swabbing and finished product testing in adherence to Health Canada’s Policy on Listeria monocytogenes in ready-to-eat foods, which is why the CFIA is closely following up to ensure corrective actions are completed and necessary safety measures are in place.

    Based on CFIA’s 2021 risk assessment which considered things like scientific data, type of food, and manufacturing processes, the Joriki establishment was not considered high-risk before the Listeria monocytogenes contamination. As such, the CFIA did not conduct a licence inspection prior to its investigation, however, it had visited the plant in response to consumer complaints.

    The consumer complaints received in 2018, 2019 and in 2023-2024 were related to the possible presence of allergens, off-taste, and mould. There is no causal link between mould and listeria.

    In all of these consumer complaints cases, the CFIA followed up with the consumer, the retailer, the distributor, and the manufacturer, and where required, Joriki was provided with corrective actions to be undertaken. All necessary action was taken by the establishment to resolve the complaints.

    The CFIA’s enforcement tools and next steps

    As a result of the food safety investigation, production at Joriki Inc. in Pickering has been fully halted, and significant cleanup and renovations are underway. Manufacturing will not resume until all necessary safety measures are in place, and until we are confident that the risk of contamination has been eliminated.

    CFIA inspectors are closely monitoring the situation, continuing to conduct regular visits to ensure that corrective actions are completed before production can restart.

    When businesses fail to comply with their obligations under the Safe Food for Canadians Act and the Safe Food for Canadians Regulations with respect to ensuring the safety of food, the CFIA has several enforcement tools at its disposal such as monetary penalties and suspending or cancellation of licences.

    The CFIA will continue to monitor the Pickering facility’s progress and will update the public on any further actions taken through our website.

    More to learn

    In 2022, the CFIA had completed a three-year survey of plant-based milk alternatives and found them to be generally safe, with no Listeria monocytogenes found in the samples taken.

    While Listeria monocytogenes has typically been linked to products like ready-to-eat meats and unpasteurized dairy products, this is the first time plant-based beverages have been linked to illness in Canada.

    This outbreak shows that new risks can and do emerge as scientific evidence evolves, and the CFIA takes them seriously.

    The CFIA’s Inspector General has already begun an initial review of the circumstances surrounding this recall, and to identify risks that could lead to similar incidents. Additionally, the Inspector General will be inspecting manufactured food establishments including those producing plant-based products, verifying that establishments are inspected appropriately under the Safe Food for Canadians Regulations, and analyzing consumer complaint trends to enhance risk modeling and inspection frequency.

    The findings from this review and investigation, coupled with advancements in science, will inform our updates to the risk models, enhancing our ability to safeguard the health of Canadians. While it is the responsibility of food producers to ensure the food they produce is safe, the CFIA will continue to work to protect Canadians.”

    The Canadian Food Inspection Agency (CFIA) touches the lives of all Canadians in so many positive ways. Each day, hard-working CFIA employees – including inspectors, veterinarians and scientists – inspect food for safety risks, protect plants from pests and invasive species, and respond to animal diseases that could threaten Canada’s national herd and human health. Guided by science-based decision-making and modern regulations, the Agency works tirelessly to ensure access to safe and healthy food in Canada, and support access to international markets for our high-quality agricultural products. To learn more, visit inspection.canada.ca.

    MIL OSI Canada News

  • MIL-OSI Asia-Pac: CCI approves the proposed combination involving acquisition of additional shareholding in Thoughtworks Holding, Inc. by AP Funds and Temasek

    Source: Government of India (2)

    Posted On: 29 OCT 2024 9:15PM by PIB Delhi

    The Competition Commission of India has approved the proposed combination involving acquisition of additional shareholding in Thoughtworks Holding, Inc. by AP Funds and  Temasek

     

    Tasmania Midco LLC (Acquirer) is an SPV indirectly wholly-owned by the Apax Partners LLP (AP). AP is a limited liability partnership incorporated under the laws of United Kingdom and the parent of a number of entities which provide investment advisory services to private equity funds investing in a range of industry sectors.

    Nevado Investments Pte. Ltd. (Nevado) is a limited company incorporated in Singapore. It is an investment holding company and does not have any business operations other than holding investments. It is an indirect wholly owned subsidiary of Temasek Holdings (Private) Limited (Temasek). 

    Thoughtworks Holding, Inc. (Target) is a global technology consultancy corporation, providing IT consultancy and application implementation and managed services.

    The Proposed Transaction concerns an acquisition by the investment funds advised by Apax Partners LLP (AP) (the “AP Funds“) of additional shareholding in the Target such that post consummation of the proposed transaction the Target will be wholly owned by the AP Funds (through the Acquirer) with Temasek (through Nevado) holding approximately 10% of the Target’s equity as a minority non-controlling passive investor (Proposed Combination).

    Detailed order of the Commission will follow.

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    NB/AD

    (Release ID: 2069427) Visitor Counter : 38

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: NHRC, India’s open house discussion on ‘Sports and Human Rights: Safeguarding the Rights and Well-being of Sportspersons’ in India

    Source: Government of India (2)

    NHRC, India’s open house discussion on ‘Sports and Human Rights: Safeguarding the Rights and Well-being of Sportspersons’ in India

    Chairing the discussion, Acting Chairperson Smt Vijaya Bharathi Sayani says respecting human rights of the sportspersons and ensuring protection thereof through an institutionalized mechanism is necessary for better performance of the country’s talent in sports

    Intersectionality between athlete rights and the role of institutions in safeguarding them highlighted

    Among various suggestions, strengthening institutional mechanism within various sport bodies to develop social equitability among the sportspersons emphasized

    Ensuring action on complaints of sexual harassment through functional institutional mechanisms in all sports bodies underscored

    Posted On: 29 OCT 2024 7:51PM by PIB Delhi

    The National Human Rights Commission (NHRC), India, organized an open house discussion in hybrid mode on ‘Sports and Human Rights: Safeguarding the Rights and Well-being of Sportspersons’ at its premises in New Delhi today. Chairing the discussion, Acting Chairperson, Smt. Vijaya Bharathi Sayani said that maintaining human values is the hallmark of a sportsperson’s spirit. Therefore, respecting the human rights of the sportspersons and ensuring protection thereof through an institutionalized mechanism is necessary for better performance of the country’s talent in sports.

    She highlighted the importance of understanding the intersectionality between athlete rights and the role of institutions in safeguarding them. The concept of intersectionality can help policy makers and sport programmers understand how different types of discrimination – like racism, homophobia, and ableism – combine to prevent athletes particularly women from participating in sport.

    The Acting Chairperson also stressed strengthening the judicial mechanisms in addressing any violations of athlete rights besides the rehabilitation of sportspersons in case of abuse and addressing their mental health concerns.

    NHRC, India Director General (Investigation), Shri Ajay Bhatnagar emphasized zero tolerance for sexual abuse of sportspersons. He highlighted how institutions, especially those in authority, are more accountable for safeguarding athletes.

    Earlier, the NHRC, India Joint Secretary, Shri Devendra Kumar Nim gave an overview of the three technical sessions of the open house which included ‘Rehabilitation of Sportspersons after Incidents of Abuse,’ ‘Mental Health of Sportspersons in India’ and ‘Institutional Frameworks Required to Safeguard Interests of Sportspersons.’

    Some of the suggestions that emerged from the discussion were as follows:

    • It is necessary to have coaches having training in clinical psychology to prepare the athletes better;

    • Streamline insurance benefits to athletes suffering sports injuries;

    • Bring awareness among athletes to report sexual abuse;

    • Ensure action on complaints of sexual harassment through functional institutional mechanisms in all sports bodies;

    • Strengthen institutional mechanisms to support para-athletes;

    • Strengthen institutional mechanisms within various sports bodies to develop social equitability among sportspersons from diverse backgrounds and marginalized communities;

    The meeting was attended by the representatives of the Ministry of Youth Affairs and Sports, Netaji Subhas Sports Authority of India at Patiala, National Centre for Sports Science and Research, National Sports University, Imphal, Wrestling Federation of India, National Rifle Association of India, All India Kabaddi Federation, Sports and Rights Alliance, Switzerland, WAKO India Kickboxing Federation, Humans for Sports, UK, GoSports Foundation based in Bangalore, India and Sports Injury Centre at the Safdarjung Hospital, New Delhi.

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    NSK

    (Release ID: 2069346) Visitor Counter : 63

    MIL OSI Asia Pacific News

  • MIL-OSI: Medallion Bank Reports 2024 Third Quarter Results and Declares Series F Preferred Stock Dividend

    Source: GlobeNewswire (MIL-OSI)

    SALT LAKE CITY, Oct. 29, 2024 (GLOBE NEWSWIRE) — Medallion Bank (Nasdaq: MBNKP, the “Bank”), an FDIC-insured bank specializing in consumer loans for the purchase of recreational vehicles, boats, and home improvements, as well as loan products and services offered through fintech strategic partners, today announced its results for the quarter ended September 30, 2024. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

    2024 Third Quarter Highlights

    • Net income of $15.5 million, compared to $17.2 million in the prior year quarter.
    • Net interest income of $53.2 million, compared to $48.7 million in the prior year quarter.
    • Net interest margin of 8.44%, compared to 8.70% in the prior year quarter.
    • Total provision for credit losses was $20.2 million, compared to $14.0 million in the prior year quarter. Total provision for credit losses included $2.2 million of net taxi medallion recoveries, compared to $1.7 million of net taxi medallion recoveries in the prior year quarter.
    • Annualized net charge-offs were 2.31% of average loans outstanding, compared to 1.97% in the prior year quarter.
    • Annualized return on assets and return on equity were 2.47% and 16.72%, respectively, compared to 3.06% and 20.46% for the prior year period.
    • The total loan portfolio grew 13% from September 30, 2023 to $2.4 billion as of September 30, 2024.
    • Total assets were $2.6 billion and the Tier 1 leverage ratio was 15.66% at September 30, 2024.

    Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “Earnings grew over the sequential quarter as combined recreation and home improvement loan origination volumes reached their anticipated peak for 2024. Net interest income rose to $53 million on more than $72 million of total interest income. As is typical for the time of year, delinquency rose compared to the second quarter while the net charge-off rate was essentially flat. Aided by the new fintech relationship announced in September, we originated $40 million in loans through our fintech strategic partners during the quarter. The strategic partnership program, which we have approached with caution and patience, is expected to grow steadily in the coming periods as our partners grow. Though overall demand for our products remains strong, we continue to prioritize credit quality and managed growth that maintains our market position.”

    Recreation Lending Segment

    • The Bank’s recreation loan portfolio grew 15% to $1.555 billion as of September 30, 2024, compared to $1.346 billion at September 30, 2023. Loan originations were $139.1 million, compared to $92.6 million in the prior year quarter.
    • Net interest income was $40.2 million, compared to $36.5 million in the prior year quarter.
    • Recreation loans were 65% of loans receivable as of September 30, 2024, compared to 64% at September 30, 2023.
    • Delinquencies 30 days or more past due were $64.6 million, or 4.15%, of recreation loans as of September 30, 2024, compared to $51.4 million, or 3.82%, at September 30, 2023.
    • Annualized net charge-offs were 3.18% of average recreation loans outstanding, compared to 2.67% in the prior year quarter.
    • The provision for recreation credit losses was $17.5 million and the allowance for credit losses was 4.53% of the outstanding balance, compared to $11.9 million and 4.24% of the outstanding balance in the prior year quarter.

    Home Improvement Lending Segment

    • The Bank’s home improvement loan portfolio grew 8% to $814.1 million as of September 30, 2024, compared to $750.5 million at September 30, 2023. Loan originations were $96.5 million, compared to $79.3 million in the prior year quarter.
    • Net interest income was $12.6 million, compared to $11.9 million in the prior year quarter.
    • Home improvement loans were 34% of loans receivable as of September 30, 2024, compared to 36% at September 30, 2023.
    • Delinquencies 30 days or more past due were $8.3 million, or 1.02%, of home improvement loans as of September 30, 2024, compared to $6.8 million, or 0.90%, at September 30, 2023.
    • Annualized net charge-offs were 1.76% of average home improvement loans outstanding, compared to 1.61% in the prior year quarter.
    • The provision for home improvement credit losses was $4.9 million and the allowance for credit losses was 2.42% of the outstanding balance, compared to $3.9 million and 2.31% of the outstanding balance in the prior year quarter.

    Series F Preferred Stock Dividend

    On October 24, 2024, the Bank’s Board of Directors declared a quarterly cash dividend of $0.50 per share on the Bank’s Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, which trades on the Nasdaq Capital Market under the ticker symbol “MBNKP.” The dividend is payable on January 2, 2025, to holders of record at the close of business on December 16, 2024.

    About Medallion Bank

    Medallion Bank specializes in providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners. The Bank works directly with thousands of dealers, contractors and financial service providers serving their customers throughout the United States. Medallion Bank is a Utah-chartered, FDIC-insured industrial bank headquartered in Salt Lake City and is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

    For more information, visit www.medallionbank.com 

    Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, costs, sales, net investment income, earnings, returns and growth. These statements are often, but not always, made through the use of words or phrases such as “remains,” “anticipated,” “expected,” “continue,” “maintain” or the negative versions of these words or other comparable words or phrases of a future or forward-looking nature. These statements may relate to our future earnings, returns, capital levels, sources of funding, growth prospects, asset quality and pursuit and execution of our strategy. Medallion Bank’s actual results may differ significantly from the results discussed in such forward-looking statements. For a description of certain risks to which Medallion Bank is or may be subject, please refer to the factors discussed under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” included in Medallion Bank’s Form 10-K for the year ended December 31, 2023, and in its Quarterly Reports on Form 10-Q, filed with the FDIC. Medallion Bank’s Form 10-K, Form 10-Qs and other FDIC filings are available in the Investor Relations section of Medallion Bank’s website. Medallion Bank’s financial results for any period are not necessarily indicative of Medallion Financial Corp.’s results for the same period.  

    Company Contact:
    Investor Relations
    212-328-2176
    InvestorRelations@medallion.com 

    MEDALLION BANK
    STATEMENTS OF OPERATIONS
    (UNAUDITED)
     
      Three Months Ended September 30,   Nine Months Ended September 30,
    (In thousands) 2024   2023   2024   2023
    Total interest income $ 72,352   $ 62,193   $ 202,079   $ 173,414
    Total interest expense   19,193     13,446     50,470     33,384
    Net interest income   53,159     48,747     151,609     140,030
    Provision for credit losses   20,153     14,024     55,345     26,740
    Net interest income after provision for credit losses   33,006     34,723     96,264     113,290
    Other non-interest income   645     968     2,116     1,263
    Non-interest expense              
    Salaries and benefits   5,035     5,024     14,971     14,004
    Loan servicing   3,158     3,007     9,074     8,723
    Collection costs   1,604     1,509     4,578     4,473
    Regulatory fees   961     1,021     2,826     2,484
    Professional fees   368     450     1,185     1,612
    Information technology   317     252     858     750
    Occupancy and equipment   193     211     626     625
    Other   875     839     2,685     2,705
    Total non-interest expense   12,511     12,313     36,803     35,376
    Income before income taxes   21,140     23,378     61,577     79,177
    Provision for income taxes   5,661     6,222     16,583     21,268
    Net income $ 15,479   $ 17,156   $ 44,994   $ 57,909
    Less: Preferred stock dividends   1,512     1,512     4,535   $ 4,535
    Net income attributable to common shareholder $ 13,967   $ 15,644   $ 40,459   $ 53,374
     
    MEDALLION BANK
    BALANCE SHEETS
    (UNAUDITED)
     
    (In thousands) September 30, 2024   December 31, 2023   September 30, 2023
    Assets          
    Cash and federal funds sold $ 148,446     $ 110,043     $ 100,192  
    Investment securities, available-for-sale   56,754       54,282       53,175  
    Loans, inclusive of net deferred loan acquisition cost and fees   2,374,673       2,100,338       2,101,786  
    Allowance for credit losses   (90,784 )     (79,283 )     (75,094 )
    Loans, net   2,283,889       2,021,055       2,026,692  
    Loan collateral in process of foreclosure   3,424       4,165       7,658  
    Fixed assets and right-of-use lease assets, net   9,275       8,140       7,705  
    Deferred tax assets   13,338       12,761       11,634  
    Accrued interest receivable   14,013       13,439       13,405  
    Other assets   38,472       38,171       37,595  
    Total assets $ 2,567,611     $ 2,262,056     $ 2,258,056  
    Liabilities and Shareholders’ Equity          
    Liabilities          
    Deposits and other funds borrowed $ 2,143,132     $ 1,866,657     $ 1,865,096  
    Accrued interest payable   4,880       4,029       3,052  
    Income tax payable   25,559       21,219       30,472  
    Other liabilities   17,301       17,509       18,397  
    Due to affiliates   1,038       849       942  
    Total liabilities   2,191,910       1,910,263       1,917,959  
    Shareholder’s Equity          
    Series E Preferred stock   26,303       26,303       26,303  
    Series F Preferred stock   42,485       42,485       42,485  
    Common stock   1,000       1,000       1,000  
    Additional paid in capital   77,500       77,500       77,500  
    Accumulated other comprehensive loss, net of tax   (3,080 )     (4,529 )     (5,794 )
    Retained earnings   231,493       209,034       198,603  
    Total shareholders’ equity   375,701       351,793       340,097  
    Total liabilities and shareholders’ equity $ 2,567,611     $ 2,262,056     $ 2,258,056  

    The MIL Network

  • MIL-OSI: Expand Energy Corporation Reports Third Quarter 2024 Results, Provides Preliminary 2025 Capital and Operating Plan and Announces Enhanced Capital Return Framework

    Source: GlobeNewswire (MIL-OSI)

    OKLAHOMA CITY, Oct. 29, 2024 (GLOBE NEWSWIRE) — Expand Energy Corporation (NASDAQ: EXE) (“Expand Energy” or the “company”) today reported third quarter 2024 financial and operating results. In addition, the company provided its preliminary 2025 capital and operating plan and announced details regarding its enhanced capital return framework. On October 1, 2024, Expand Energy announced the completion of the previously disclosed merger between Chesapeake Energy Corporation (“Chesapeake”) and Southwestern Energy Company (“Southwestern”).

    Legacy Chesapeake Third Quarter Highlights

    • Net cash provided by operating activities of $422 million
    • Net loss of $114 million, or $0.85 per fully diluted share; adjusted net income(1)of $22 million, or $0.16 per share
    • Adjusted EBITDAX(1)of $365 million
    • Produced approximately 2.65 bcf/d net (100% natural gas)

    Expand Energy Highlights

    • Raised annual synergy target by $100 million; expected to achieve approximately $225 million in 2025 and approximately $500 million in annual synergies by year end 2027
    • Upgraded at the start of fourth quarter to Investment Grade credit rating from S&P (BBB-) and Fitch (BBB-)
    • Quarterly base dividend of $0.575 per common share to be paid in December 2024, 15th straight quarter paying a dividend
    • 2025 capital expenditures expected to be approximately $2.7 billion, yielding net production of approximately 7 bcf/day (~91% natural gas)
    • Enhanced capital return framework to more effectively return cash to shareholders and reduce net debt; announced new $1 billion share repurchase authorization

    (1) Definitions of non-GAAP financial measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure are included at the end of this news release.

    “Our strong third quarter results, recent Investment Grade rating and preliminary 2025 outlook demonstrate the power of our advantaged portfolio and resilient financial foundation,” said Nick Dell’Osso, Expand Energy’s President and Chief Executive Officer. “Our integration efforts are already delivering, allowing us to raise our annual synergy expectations by 25% to $500 million, as we drive to lower our breakeven costs and more efficiently reach markets in need. As the largest domestic producer of natural gas, and a top producer globally, we are built to answer the call for affordable, reliable, lower carbon energy and expand opportunity for all stakeholders.”
    Operations Update

    In the third quarter, legacy Chesapeake operated an average of seven rigs to drill 30 wells and turned seven wells in line, resulting in net production of approximately 2.65 bcfe per day (100% natural gas). Additionally, the company built an inventory of 18 drilled but uncompleted (“DUCs”) wells and 12 deferred turn in lines (“TILs”). A detailed breakdown of third quarter production, capital expenditures and activity can be found in supplemental slides which have been posted at https://investors.expandenergy.com/events-presentations.

    Expand Energy continues to execute its previously disclosed plan to defer completions and new TILs. As of October 1, 2024, the combined company had 58 DUCs, excluding working inventory, and 58 deferred TILs. The company intends to prudently activate production as market conditions warrant.

    Expand Energy is currently running 12 rigs (8 in Haynesville, 2 in Northeast Appalachia, and 2 in Southwest Appalachia) and 6 completion crews (3 in Haynesville, 2 in Northeast Appalachia, and 1 in Southwest Appalachia). At current market conditions, the company expects to drop two rigs in the first quarter of 2025.

    Annual Synergy Outlook and Preliminary 2025 Capital & Operating Program

    Expand Energy increased its expected annual synergy outlook by $100 million to $500 million. The company expects to achieve approximately $225 million in synergies in 2025 and to achieve the full $500 million in annual synergies by year end 2027.

    In 2025, at current market conditions, the company expects to run 10 to 12 rigs and invest approximately $2.7 billion yielding an estimated daily production of approximately 7 bcfe per day. Expand Energy will provide complete guidance in early 2025.

    Shareholder Returns Update

    Expand Energy plans to pay its quarterly base dividend of $0.575 per share on December 4, 2024 to shareholders of record at the close of business on November 14, 2024.

    The company announced today its enhanced capital return framework which is designed to more effectively return cash to shareholders and reduce net debt. The plan is expected to go into effect January 1, 2025, and prioritizes the base dividend of $2.30 per share and $500 million of annual net debt reduction. Once both have been funded, it is anticipated that 75% of remaining free cash flow be distributed as market conditions warrant, between share repurchases and additional dividend payments. The remaining free cash flow would be maintained on the balance sheet.

    In conjunction with the enhanced framework, Expand Energy’s Board of Directors approved a $1 billion repurchase authorization.

    Conference Call Information

    A conference call to discuss the results and preliminary 2025 plan has been scheduled for 9 a.m. EDT on October 30, 2024. Participants can view the live webcast here. Participants who would like to ask a question, can register here, and will receive the dial-in info and a unique PIN to join the call. Links to the conference call will be provided on Expand Energy’s website. A replay will be available on the website following the call.

    Financial Statements, Non-GAAP Financial Measures and 2024 Guidance and Outlook Projections

    Reconciliations of each non-GAAP financial measure used in this news release to the most directly comparable GAAP financial measure are provided below. Additional detail on the company’s 2024 third quarter financial and operational results, along with non-GAAP measures that adjust for items typically excluded by certain securities analysts, are available on the company’s website. Non-GAAP measures should not be considered as an alternative to GAAP measures. Management’s updated guidance for 2024 and preliminary plan for 2025 can be found on the company’s website at www.expandenergy.com.

    Expand Energy Corporation (NASDAQ: EXE) is the largest independent natural gas producer in the United States, powered by dedicated and innovative employees focused on disrupting the industry’s traditional cost and market delivery model to responsibly develop assets in the nation’s most prolific natural gas basins. Expand Energy’s returns-driven strategy strives to create sustainable value for its stakeholders by leveraging its scale, financial strength and operational execution. Expand Energy is committed to expanding America’s energy reach to fuel a more affordable, reliable, lower carbon future.

    Forward-Looking Statements

    This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include our current expectations or forecasts of future events, including matters relating to the combined company after the merger with Southwestern Energy Company (“Southwestern”), armed conflict and instability in Europe and the Middle East, along with the effects of the current global economic environment, and the impact of each on our business, financial condition, results of operations and cash flows, actions by, or disputes among or between, members of OPEC+ and other foreign oil-exporting countries, market factors, market prices, our ability to meet debt service requirements, our ability to continue to pay cash dividends, the amount and timing of any cash dividends and our ESG initiatives. Forward-looking and other statements in this release regarding our environmental, social and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking environmental, social and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Forward-looking statements often address our expected future business, financial performance and financial condition, and often contain words such as “expect,” “could,” “may,” “anticipate,” “intend,” “plan,” “ability,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “guidance,” “outlook,” “opportunity” or “strategy.” The absence of such words or expressions does not necessarily mean the statements are not forward-looking.

    Although we believe the expectations and forecasts reflected in our forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include:

    • conservation measures and technological advances could reduce demand for natural gas and oil;
    • negative public perceptions of our industry;
    • competition in the natural gas and oil exploration and production industry;
    • the volatility of natural gas, oil and NGL prices, which are affected by general economic and business conditions, as well as increased demand for (and availability of) alternative fuels and electric vehicles;
    • risks from regional epidemics or pandemics and related economic turmoil, including supply chain constraints;
    • write-downs of our natural gas and oil asset carrying values due to low commodity prices;
    • significant capital expenditures are required to replace our reserves and conduct our business;
    • our ability to replace reserves and sustain production;
    • uncertainties inherent in estimating quantities of natural gas, oil and NGL reserves and projecting future rates of production and the amount and timing of development expenditures;
    • drilling and operating risks and resulting liabilities;
    • our ability to generate profits or achieve targeted results in drilling and well operations;
    • leasehold terms expiring before production can be established;
    • risks from our commodity price risk management activities;
    • uncertainties, risks and costs associated with natural gas and oil operations;
    • our need to secure adequate supplies of water for our drilling operations and to dispose of or recycle the water used;
    • pipeline and gathering system capacity constraints and transportation interruptions;
    • our plans to participate in the LNG export industry;
    • terrorist activities and/or cyber-attacks adversely impacting our operations;
    • risks from failure to protect personal information and data and compliance with data privacy and security laws and regulations;
    • disruption of our business by natural or human causes beyond our control;
    • a deterioration in general economic, business or industry conditions;
    • the impact of inflation and commodity price volatility, including as a result of armed conflict and instability in Europe and the Middle East, along with the effects of the current global economic environment, on our business, financial condition, employees, contractors, vendors and the global demand for natural gas and oil and on U.S. and global financial markets;
    • our inability to access the capital markets on favorable terms;
    • the limitations on our financial flexibility due to our level of indebtedness and restrictive covenants from our indebtedness;
    • our actual financial results after emergence from bankruptcy may not be comparable to our historical financial information;
    • risks related to acquisitions or dispositions, or potential acquisitions or dispositions, including risks related to the merger with Southwestern, such as risks related to loss of management personnel, other key employees, customers, suppliers, vendors, landlords, joint venture partners and other business partners following the merger; risks related to disruption of management time from ongoing business operations due to integration; the risk of any litigation relating to the transaction; the risk that problems may arise in successfully integrating the businesses of the companies, which may result in the combined company not operating as effectively and efficiently as expected; and the risk that the combined company may be unable to achieve synergies or other anticipated benefits of the transaction or it may take longer than expected to achieve those synergies or benefits;
    • our ability to achieve and maintain ESG certifications, goals and commitments;
    • legislative, regulatory and ESG initiatives, addressing environmental concerns, including initiatives addressing the impact of global climate change or further regulating hydraulic fracturing, methane emissions, flaring or water disposal;
    • federal and state tax proposals affecting our industry;
    • risks related to an annual limitation on the utilization of our tax attributes, as well as trading in our common stock, additional issuance of common stock, and certain other stock transactions, which could lead to an additional, potentially more restrictive, annual limitation; and
    • other factors that are described under Risk Factors in Item 1A of Part I of our Annual Report on Form 10-K.

    We caution you not to place undue reliance on the forward-looking statements contained in this release, which speak only as of the filing date, and we undertake no obligation to update this information. We urge you to carefully review and consider the disclosures in this release and our filings with the SEC that attempt to advise interested parties of the risks and factors that may affect our business.

    CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
     
    ($ in millions, except per share data) September 30, 2024   December 31, 2023
    Assets      
    Current assets:      
    Cash and cash equivalents $ 1,044     $ 1,079  
    Restricted cash   76       74  
    Accounts receivable, net   261       593  
    Derivative assets   199       637  
    Other current assets   217       226  
    Total current assets   1,797       2,609  
    Property and equipment:      
    Natural gas and oil properties, successful efforts method      
    Proved natural gas and oil properties   12,373       11,468  
    Unproved properties   1,806       1,806  
    Other property and equipment   518       497  
    Total property and equipment   14,697       13,771  
    Less: accumulated depreciation, depletion and amortization   (4,743 )     (3,674 )
    Total property and equipment, net   9,954       10,097  
    Long-term derivative assets   15       74  
    Deferred income tax assets   1,038       933  
    Other long-term assets   588       663  
    Total assets $ 13,392     $ 14,376  
           
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Accounts payable $ 264     $ 425  
    Accrued interest   41       39  
    Derivative liabilities   5       3  
    Other current liabilities   589       847  
    Total current liabilities   899       1,314  
    Long-term debt, net   2,017       2,028  
    Long-term derivative liabilities         9  
    Asset retirement obligations, net of current portion   271       265  
    Other long-term liabilities   17       31  
    Total liabilities   3,204       3,647  
    Contingencies and commitments      
    Stockholders’ equity:      
    Common stock, $0.01 par value, 450,000,000 shares authorized: 135,107,576 and 130,789,936 shares issued   1       1  
    Additional paid-in capital   5,778       5,754  
    Retained earnings   4,409       4,974  
    Total stockholders’ equity   10,188       10,729  
    Total liabilities and stockholders’ equity $ 13,392     $ 14,376  
    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)              
    Revenues and other:              
    Natural gas, oil and NGL $ 407     $ 682     $ 1,374     $ 2,784  
    Marketing   193       724       641       1,987  
    Natural gas and oil derivatives   46       106       207       1,195  
    Gains on sales of assets   2             12       807  
    Total revenues and other   648       1,512       2,234       6,773  
    Operating expenses:              
    Production   50       73       158       293  
    Gathering, processing and transportation   152       192       479       663  
    Severance and ad valorem taxes   11       27       58       136  
    Exploration   2       4       7       19  
    Marketing   192       723       656       1,985  
    General and administrative   39       29       133       95  
    Separation and other termination costs               23       3  
    Depreciation, depletion and amortization   335       382       1,082       1,148  
    Other operating expense, net   22       3       55       15  
    Total operating expenses   803       1,433       2,651       4,357  
    Income (loss) from operations   (155 )     79       (417 )     2,416  
    Other income (expense):              
    Interest expense   (20 )     (23 )     (59 )     (82 )
    Losses on purchases, exchanges or extinguishments of debt               (2 )      
    Other income   17       15       58       48  
    Total other income (expense)   (3 )     (8 )     (3 )     (34 )
    Income (loss) before income taxes   (158 )     71       (420 )     2,382  
    Income tax expense (benefit)   (44 )     1       (105 )     532  
    Net income (loss) $ (114 )   $ 70     $ (315 )   $ 1,850  
    Earnings (loss) per common share:              
    Basic $ (0.85 )   $ 0.53     $ (2.39 )   $ 13.86  
    Diluted $ (0.85 )   $ 0.49     $ (2.39 )   $ 12.90  
    Weighted average common shares outstanding (in thousands):              
    Basic   133,794       132,153       131,958       133,460  
    Diluted   133,794       142,348       131,958       143,463  
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
     
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
    ($ in millions)   2024       2023       2024       2023  
    Cash flows from operating activities:              
    Net income (loss) $ (114 )   $ 70     $ (315 )   $ 1,850  
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:              
    Depreciation, depletion and amortization   335       382       1,082       1,148  
    Deferred income tax expense (benefit)   (44 )     (80 )     (105 )     319  
    Derivative gains, net   (46 )     (106 )     (207 )     (1,195 )
    Cash receipts on derivative settlements, net   207       216       695       167  
    Share-based compensation   10       9       29       25  
    Gains on sales of assets   (2 )           (12 )     (807 )
    Losses on purchases, exchanges or extinguishments of debt               2        
    Other   (9 )     6       (16 )     35  
    Changes in assets and liabilities   85       9       30       368  
    Net cash provided by operating activities   422       506       1,183       1,910  
    Cash flows from investing activities:              
    Capital expenditures   (298 )     (423 )     (1,021 )     (1,450 )
    Receipts of deferred consideration               116        
    Contributions to investments   (26 )     (61 )     (71 )     (149 )
    Proceeds from divestitures of property and equipment   5       4       17       1,967  
    Net cash provided by (used in) investing activities   (319 )     (480 )     (959 )     368  
    Cash flows from financing activities:              
    Proceeds from Credit Facility                     1,125  
    Payments on Credit Facility                     (2,175 )
    Funds held for transition services         (6 )           91  
    Proceeds from warrant exercise               1        
    Debt issuance and other financing costs               (4 )      
    Cash paid to repurchase and retire common stock         (132 )           (313 )
    Cash paid for common stock dividends   (78 )     (77 )     (254 )     (412 )
    Net cash used in financing activities   (78 )     (215 )     (257 )     (1,684 )
    Net increase (decrease) in cash, cash equivalents and restricted cash   25       (189 )     (33 )     594  
    Cash, cash equivalents and restricted cash, beginning of period   1,095       975       1,153       192  
    Cash, cash equivalents and restricted cash, end of period $ 1,120     $ 786     $ 1,120     $ 786  
                   
    Cash and cash equivalents $ 1,044     $ 713     $ 1,044     $ 713  
    Restricted cash   76       73       76       73  
    Total cash, cash equivalents and restricted cash $ 1,120     $ 786     $ 1,120     $ 786  
    NATURAL GAS, OIL AND NGL PRODUCTION AND AVERAGE SALES PRICES (unaudited)
     
      Three Months Ended September 30, 2024
      Natural Gas   Oil   NGL   Total
      MMcf
    per day
      $/Mcf   MBbl
    per day
      $/Bbl   MBbl
    per day
      $/Bbl   MMcfe
    per day
      $/Mcfe
    Marcellus 1,531   1.51           1,531   1.51
    Haynesville 1,116   1.88           1,116   1.88
    Total 2,647   1.67           2,647   1.67
                                   
    Average NYMEX Price     2.16                      
    Average Realized Price (including realized derivatives)     2.51                   2.51
      Three Months Ended September 30, 2023
      Natural Gas   Oil   NGL   Total
      MMcf
    per day
      $/Mcf   MBbl
    per day
      $/Bbl   MBbl
    per day
      $/Bbl   MMcfe
    per day
      $/Mcfe
    Marcellus 1,734   1.63           1,734   1.63
    Haynesville 1,568   2.15           1,568   2.15
    Eagle Ford 76   2.52   9   82.33   10   25.76   193   6.36
    Total 3,378   1.89   9   82.33   10   25.76   3,495   2.12
                                   
    Average NYMEX Price     2.55       82.26                
    Average Realized Price (including realized derivatives)     2.58       82.33       25.76       2.79
      Nine Months Ended September 30, 2024
      Natural Gas   Oil   NGL   Total
      MMcf
    per day
      $/Mcf   MBbl
    per day
      $/Bbl   MBbl
    per day
      $/Bbl   MMcfe
    per day
      $/Mcfe
    Marcellus 1,601   1.65           1,601   1.65
    Haynesville 1,261   1.88           1,261   1.88
    Total 2,862   1.75           2,862   1.75
                                   
    Average NYMEX Price     2.10                      
    Average Realized Price
    (including realized derivatives)
        2.64                   2.64
      Nine Months Ended September 30, 2023
      Natural Gas   Oil   NGL   Total
      MMcf
    per day
      $/Mcf   MBbl
    per day
      $/Bbl   MBbl
    per day
      $/Bbl   MMcfe
    per day
      $/Mcfe
    Marcellus 1,845   2.24           1,845   2.24
    Haynesville 1,569   2.26           1,569   2.26
    Eagle Ford 96   2.22   26   77.41   12   25.61   323   7.82
    Total 3,510   2.25   26   77.41   12   25.61   3,737   2.73
                                   
    Average NYMEX Price     2.69       77.39                
    Average Realized Price
    (including realized derivatives)
        2.56       72.10       25.61       2.99
    CAPITAL EXPENDITURES ACCRUED (unaudited)
     
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
        2024       2023       2024       2023  
    ($ in millions)              
    Drilling and completion capital expenditures:              
    Marcellus $ 82     $ 91     $ 280     $ 324  
    Haynesville   151       191       477       704  
    Eagle Ford         9             222  
    Total drilling and completion capital expenditures   233       291       757       1,250  
    Non-drilling and completion – field   32       48       106       100  
    Non-drilling and completion – corporate   24       18       73       56  
    Total capital expenditures $ 289     $ 357     $ 936     $ 1,406  
    NON-GAAP FINANCIAL MEASURES
     

    As a supplement to the financial results prepared in accordance with U.S. GAAP, Expand Energy’s quarterly earnings releases contain certain financial measures that are not prepared or presented in accordance with U.S. GAAP. These non-GAAP financial measures include Adjusted Net Income, Adjusted Diluted Earnings Per Common Share, Adjusted EBITDAX, Free Cash Flow, Adjusted Free Cash Flow and Net Debt. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below. Management believes these adjusted financial measures are a meaningful adjunct to earnings and cash flows calculated in accordance with GAAP because (a) management uses these financial measures to evaluate the company’s trends and performance, (b) these financial measures are comparable to estimates provided by certain securities analysts, and (c) items excluded generally are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the company generally excludes information regarding these types of items.

    Expand Energy’s definitions of each non-GAAP measure presented herein are provided below. Because not all companies or securities analysts use identical calculations, Expand Energy’s non-GAAP measures may not be comparable to similarly titled measures of other companies or securities analysts.

    Adjusted Net Income: Adjusted Net Income is defined as net income (loss) adjusted to exclude unrealized (gains) losses on natural gas and oil derivatives, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Net Income facilitates comparisons of the company’s period-over-period performance, which many investors use in making investment decisions and evaluating operational trends and performance. Adjusted Net Income should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.

    Adjusted Diluted Earnings Per Common Share: Adjusted Diluted Earnings Per Common Share is defined as diluted earnings (loss) per common share adjusted to exclude the per diluted share amounts attributed to unrealized (gains) losses on natural gas and oil derivatives, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Diluted Earnings Per Common Share facilitates comparisons of the company’s period-over-period performance, which many investors use in making investment decisions and evaluating operational trends and performance. Adjusted Diluted Earnings Per Common Share should not be considered an alternative to, or more meaningful than, earnings (loss) per common share as presented in accordance with GAAP.

    Adjusted EBITDAX: Adjusted EBITDAX is defined as net income (loss) before interest expense, income tax expense (benefit), depreciation, depletion and amortization expense, exploration expense, unrealized (gains) losses on natural gas and oil derivatives, separation and other termination costs, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results. Adjusted EBITDAX is presented as it provides investors an indication of the company’s ability to internally fund exploration and development activities and service or incur debt. Adjusted EBITDAX should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.

    Free Cash Flow: Free Cash Flow is defined as net cash provided by (used in) operating activities less cash capital expenditures. Free Cash Flow is a liquidity measure that provides investors additional information regarding the company’s ability to service or incur debt and return cash to shareholders. Free Cash Flow should not be considered an alternative to, or more meaningful than, net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP.

    Adjusted Free Cash Flow: Adjusted Free Cash Flow is defined as net cash provided by (used in) operating activities less cash capital expenditures and cash contributions to investments, adjusted to exclude certain items management believes affect the comparability of operating results. Adjusted Free Cash Flow is a liquidity measure that provides investors additional information regarding the company’s ability to service or incur debt and return cash to shareholders and is used to determine Expand Energy’s returns framework payout. Adjusted Free Cash Flow should not be considered an alternative to, or more meaningful than, net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP.

    Net Debt: Net Debt is defined as GAAP total debt excluding premiums, discounts, and deferred issuance costs less cash and cash equivalents. Net Debt is useful to investors as a widely understood measure of liquidity and leverage, but this measure should not be considered as an alternative to, or more meaningful than, total debt presented in accordance with GAAP.

    RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (unaudited)
     
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
    ($ in millions)   2024       2023       2024       2023  
    Net income (loss) (GAAP) $ (114 )   $ 70     $ (315 )   $ 1,850  
                   
    Adjustments:              
    Unrealized (gains) losses on natural gas and oil derivatives   160       110       489       (931 )
    Separation and other termination costs               23       3  
    Gains on sales of assets   (2 )           (12 )     (807 )
    Other operating expense, net   23       3       58       18  
    Losses on purchases, exchanges or extinguishments of debt               2        
    Other   (4 )     (4 )     (17 )     (19 )
    Tax effect of adjustments(a)   (41 )     (24 )     (125 )     403  
    Adjusted net income (Non-GAAP) $ 22     $ 155     $ 103     $ 517  
    (a) The three- and nine-month periods ended September 30, 2024 and September 30, 2023 include a tax effect attributed to the reconciling adjustments using a statutory rate of 23%.
    RECONCILIATION OF EARNINGS (LOSS) PER COMMON SHARE TO ADJUSTED DILUTED EARNINGS PER COMMON SHARE (unaudited)
     
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
    ($/share)   2024       2023       2024       2023  
    Earnings (loss) per common share (GAAP) $ (0.85 )   $ 0.53     $ (2.39 )   $ 13.86  
    Effect of dilutive securities         (0.04 )           (0.96 )
    Diluted earnings (loss) per common share (GAAP) $ (0.85 )   $ 0.49     $ (2.39 )   $ 12.90  
                   
    Adjustments:              
    Unrealized (gains) losses on natural gas and oil derivatives   1.20       0.78       3.70       (6.49 )
    Separation and other termination costs               0.17       0.02  
    Gains on sales of assets   (0.02 )           (0.09 )     (5.63 )
    Other operating expense, net   0.17       0.02       0.44       0.13  
    Losses on purchases, exchanges or extinguishments of debt               0.01        
    Other   (0.03 )     (0.03 )     (0.13 )     (0.13 )
    Tax effect of adjustments(a)   (0.31 )     (0.17 )     (0.95 )     2.81  
    Effect of dilutive securities               (0.03 )      
    Adjusted diluted earnings per common share (Non-GAAP) $ 0.16     $ 1.09     $ 0.73     $ 3.61  
    (a) The three- and nine-month periods ended September 30, 2024 and September 30, 2023 include a tax effect attributed to the reconciling adjustments using a statutory rate of 23%.
    RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDAX (unaudited)
     
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
        2024       2023       2024       2023  
    ($ in millions)              
    Net income (loss) (GAAP) $ (114 )   $ 70     $ (315 )   $ 1,850  
                   
    Adjustments:              
    Interest expense   20       23       59       82  
    Income tax expense (benefit)   (44 )     1       (105 )     532  
    Depreciation, depletion and amortization   335       382       1,082       1,148  
    Exploration   2       4       7       19  
    Unrealized (gains) losses on natural gas and oil derivatives   160       110       489       (931 )
    Separation and other termination costs               23       3  
    Gains on sales of assets   (2 )           (12 )     (807 )
    Other operating expense, net   23       3       58       18  
    Losses on purchases, exchanges or extinguishments of debt               2        
    Other   (15 )     (13 )     (57 )     (36 )
    Adjusted EBITDAX (Non-GAAP) $ 365     $ 580     $ 1,231     $ 1,878  
    RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED 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 (GAAP) $ 422     $ 506     $ 1,183     $ 1,910  
    Cash capital expenditures   (298 )     (423 )     (1,021 )     (1,450 )
    Free cash flow (Non-GAAP)   124       83       162       460  
    Cash contributions to investments   (26 )     (61 )     (71 )     (149 )
    Free cash flow associated with divested assets(a)         (57 )           (195 )
    Adjusted free cash flow (Non-GAAP) $ 98     $ (35 )   $ 91     $ 116  
    (a) In March and April of 2023, we closed two divestitures of certain Eagle Ford assets. Due to the structure of these transactions, both of which had an effective date of October 1, 2022, the cash generated by these assets was delivered to the respective buyers through a reduction in the proceeds we received at the closing of each transaction. Additionally, in August 2023, we entered into an agreement to sell the final portion of our Eagle Ford assets, with an economic effective date of February 1, 2023. Included within the adjustment above reflects the cash flows from the three months ended September 30, 2023, associated with the final portion of our Eagle Ford assets as the cash generated by those assets were delivered to the buyer through a reduction in the proceeds we received once the transaction closed during the fourth quarter of 2023.
    RECONCILIATION OF TOTAL DEBT TO NET DEBT (unaudited)
     
    ($ in millions) September 30, 2024
    Total debt (GAAP) $ 2,017  
    Premiums and issuance costs on debt   (67 )
    Principal amount of debt   1,950  
    Cash and cash equivalents   (1,044 )
    Net debt (Non-GAAP) $ 906  
    INVESTOR CONTACT: MEDIA CONTACT: EXPAND ENERGY CORPORATION
    Chris Ayres Brooke Coe 6100 North Western Avenue
    (405) 935-8870 (405) 935-8878 P.O. Box 18496
    ir@expandenergy.com media@expandenergy.com Oklahoma City, OK 73154

    The MIL Network

  • MIL-OSI: EXL Reports 2024 Third Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    2024 Third Quarter Revenue of $472.1 Million, up 14.9% year-over-year

    Q3 Diluted EPS (GAAP) of $0.33, up 24.2% from $0.26 in Q3 of 2023

    Q3 Adjusted Diluted EPS (Non-GAAP) (1)of $0.44, up 16.3% from $0.37 in Q3 of 2023

    NEW YORK, Oct. 29, 2024 (GLOBE NEWSWIRE) — ExlService Holdings, Inc. (Nasdaq: EXLS), a leading data analytics and digital operations and solutions company, today announced its financial results for the quarter ended September 30, 2024.

    Rohit Kapoor, chairman and chief executive officer, said, “We are pleased with our third quarter results. We delivered revenue and adjusted diluted EPS growth of 15% and 16% respectively. The ongoing execution of our data and AI-led strategy enabled us to accelerate our growth, achieving double-digit growth across both our data analytics and digital operations and solutions businesses during the quarter. As we continue to expand our data modernization and AI solution set with innovations such as industry-specific large language models (LLMs), we are well positioned to continue our momentum into the fourth quarter and beyond.”

    Maurizio Nicolelli, chief financial officer, said, “Based on our strong year-to-date performance and current visibility for the remainder of the year, we are raising the full-year guidance range for revenue and EPS. We now expect revenue to be in the range of $1.825 billion to $1.835 billion, up from our prior guidance of $1.805 billion to $1.830 billion. This represents 12% to 13% year-over-year growth on a reported currency basis and approximately 12% on a constant currency basis. We now expect our adjusted diluted earnings per share for 2024 to be in the range of $1.61 to $1.63, up from our prior guidance of $1.59 to $1.62, representing growth of 13% to 14% over the prior year.”

    __________________________________________________________

    (1) Reconciliations of adjusted (non-GAAP) financial measures to the most directly comparable GAAP measures, where applicable, are included at the end of this release under “Reconciliation of Adjusted Financial Measures to GAAP Measures.” These non-GAAP measures, including adjusted diluted EPS and constant currency measures, are not measures of financial performance prepared in accordance with GAAP.

    Financial Highlights: Third Quarter 2024

    • Revenue for the quarter ended September 30, 2024 increased to $472.1 million compared to $411.0 million for the third quarter of 2023, an increase of 14.9% on a reported basis and 14.5% on a constant currency basis. Revenue increased by 5.3% sequentially on a reported basis and 4.9% on a constant currency basis, from the second quarter of 2024.
        Revenue   Gross Margin
        Three months ended
      Three months ended
    Reportable Segments   September 30,
    2024

      September 30,
    2023

      June 30,
    2024

      September 30,
    2024

      September 30,
    2023

      June 30,
    2024

        (dollars in millions)        
    Insurance   $ 157.6     $ 136.4     $ 149.3       36.3 %     36.6 %     36.0 %
    Healthcare     30.5       26.2       28.1       33.6 %     36.8 %     33.1 %
    Emerging Business     80.0       65.3       77.2       40.2 %     42.4 %     41.6 %
    Analytics     204.0       183.1       193.8       38.5 %     37.0 %     36.7 %
    Revenues, net   $ 472.1     $ 411.0     $ 448.4       37.8 %     37.7 %     37.1 %
     
    • Operating income margin for each of the quarter ended September 30, 2024 and the third quarter of 2023, was 14.7%, and 13.7% for the second quarter of 2024. Adjusted operating income margin for the quarter ended September 30, 2024, was 19.9%, compared to 20.0% for the third quarter of 2023 and 19.8% for the second quarter of 2024.
    • Diluted earnings per share for the quarter ended September 30, 2024, was $0.33, compared to $0.26 for the third quarter of 2023 and $0.28 for the second quarter of 2024. Adjusted diluted earnings per share for the quarter ended September 30, 2024, was $0.44, compared to $0.37 for the third quarter of 2023 and $0.40 for the second quarter of 2024.

    Business Highlights: Third Quarter 2024

    • Won 13 new clients in the third quarter of 2024, with 8 clients in digital operations and solutions business and 5 clients in analytics.
    • Launched the EXL Insurance LLM, developed using NVIDIA AI software. This LLM addresses the highly specialized needs of the insurance industry, leveraging EXL’s 25 years of experience in the industry and a proprietary data set with more than a decade of claims-related data.
    • Expanded partnership with Databricks to deploy new data management and generative AI solutions into the Databricks ecosystem, speeding the development of cutting-edge data management solutions for EXL clients.
    • Recognized as a Major Player in the IDC MarketScape: Worldwide Data Modernization Services 2024 Vendor Assessment based on our core value propositions, execution and innovation capabilities, go-to-market strategy, and market impact.
    • Named by Newsweek as one of America’s Most Reliable Companies 2025 based on parameters including: Likelihood of Recommendation, Ease of Doing Business, Value for Money, Consistency of Deliverables, and Reputation for Dependability.

    2024 Guidance
    Based on current visibility, and a U.S. dollar to Indian rupee exchange rate of 84.0, U.K. pound sterling to U.S. dollar exchange rate of 1.30, U.S. dollar to the Philippine peso exchange rate of 58.0 and all other currencies at current exchange rates, we are providing the following guidance for the full year 2024:

    • Revenue of $1.825 billion to $1.835 billion, representing an increase of 12% to 13% on a reported currency basis and approximately 12% on a constant currency basis from 2023.
    • Adjusted diluted earnings per share of $1.61 to $1.63, representing an increase of 13% to 14% from 2023.

    Conference Call

    ExlService Holdings, Inc. will host a conference call on Wednesday, Oct. 30, 2024, at 10:00 A.M. ET to discuss the company’s quarterly operating and financial results. The conference call will be available live via the internet by accessing the investor relations section of EXL’s website at ir.exlservice.com, where an accompanying investor-friendly spreadsheet of historical operating and financial data can also be accessed. Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software.

    Please note that there is a new system to access the live call-in order to ask questions. To join the live call, please register here. For those who cannot access the live broadcast, a replay will be available on the EXL website ir.exlservice.com for a period of approximately twelve months.

    About ExlService Holdings, Inc.

    EXL (Nasdaq: EXLS) is a leading data analytics and digital operations and solutions company. We partner with clients using a data and AI-led approach to reinvent business models, drive better business outcomes and unlock growth with speed. EXL harnesses the power of data, analytics, AI, and deep industry knowledge to transform operations for the world’s leading corporations in industries including insurance, healthcare, banking and financial services, media and retail, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have more than 57,000 employees spanning six continents. For more information, visit www.exlservice.com.

    Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL’s operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management’s experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include our ability to maintain and grow client demand, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, rising interest rates, rising inflation, recessionary economic trends, and ability to successfully integrate strategic acquisitions, are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by applicable law.

    EXLSERVICE HOLDINGS, INC.
    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
    (In thousands, except per share amount and share count)
     
      Three months ended September 30,   Nine months ended September 30,
        2024       2023       2024       2023  
    Revenues, net $ 472,073     $ 410,971     $ 1,356,946     $ 1,216,610  
    Cost of revenues(1)   293,806       256,002       849,336       760,691  
    Gross profit(1)   178,267       154,969       507,610       455,919  
    Operating expenses:              
    General and administrative expenses   57,495       52,213       167,195       144,564  
    Selling and marketing expenses   37,568       30,943       108,982       88,674  
    Depreciation and amortization expense   13,799       11,583       39,055       38,192  
    Total operating expenses   108,862       94,739       315,232       271,430  
    Income from operations   69,405       60,230       192,378       184,489  
    Foreign exchange gain, net   278       409       673       838  
    Interest expense   (5,526 )     (3,405 )     (14,145 )     (10,030 )
    Other income, net   4,374       778       11,876       6,594  
    Income before income tax expense and earnings from equity affiliates   68,531       58,012       190,782       181,891  
    Income tax expense   15,460       14,161       43,086       37,773  
    Income before earnings from equity affiliates   53,071       43,851       147,696       144,118  
    Gain/(loss) from equity-method investment   (34 )     25       (71 )     157  
    Net income $ 53,037     $ 43,876     $ 147,625     $ 144,275  
    Earnings per share:              
    Basic $ 0.33     $ 0.26     $ 0.90     $ 0.87  
    Diluted $ 0.33     $ 0.26     $ 0.90     $ 0.86  
    Weighted average number of shares used in computing earnings per share:              
    Basic   161,732,872       166,159,619       163,197,767       166,707,599  
    Diluted   163,187,733       167,688,374       164,620,081       168,591,612  

    (1) Exclusive of depreciation and amortization expense.

    EXLSERVICE HOLDINGS, INC.
    CONSOLIDATED BALANCE SHEETS (UNAUDITED)
    (In thousands, except per share amount and share count)
     
      As of
      September 30, 2024   December 31, 2023
           
    Assets      
    Current assets:      
    Cash and cash equivalents $ 150,102     $ 136,953  
    Short-term investments   175,648       153,881  
    Restricted cash   7,342       4,062  
    Accounts receivable, net   340,904       308,108  
    Other current assets   93,693       76,669  
    Total current assets   767,689       679,673  
    Property and equipment, net   107,395       100,373  
    Operating lease right-of-use assets   71,796       64,856  
    Restricted cash   5,820       4,386  
    Deferred tax assets, net   106,881       82,927  
    Goodwill   427,663       405,639  
    Other intangible assets, net   51,291       50,164  
    Long-term investments   14,184       4,430  
    Other assets   57,113       49,524  
    Total assets $ 1,609,832     $ 1,441,972  
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Accounts payable $ 4,082     $ 5,055  
    Current portion of long-term borrowings   4,891       65,000  
    Deferred revenue   12,472       12,318  
    Accrued employee costs   110,677       117,137  
    Accrued expenses and other current liabilities   105,159       114,113  
    Current portion of operating lease liabilities   16,904       12,780  
    Total current liabilities   254,185       326,403  
    Long-term borrowings, less current portion   339,828       135,000  
    Operating lease liabilities, less current portion   62,336       58,175  
    Deferred tax liabilities, net   3,245       1,495  
    Other non-current liabilities   42,675       31,462  
    Total liabilities   702,269       552,535  
    Commitments and contingencies      
    Stockholders’ equity:      
    Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued          
    Common stock, $0.001 par value; 400,000,000 shares authorized, 205,317,002 shares issued and 160,880,592 shares outstanding as of September 30, 2024 and 203,410,038 shares issued and 165,277,880 shares outstanding as of December 31, 2023   205       203  
    Additional paid-in capital   572,430       508,028  
    Retained earnings   1,231,288       1,083,663  
    Accumulated other comprehensive loss   (122,593 )     (127,040 )
    Total including shares held in treasury   1,681,330       1,464,854  
    Less: 44,436,410 shares as of September 30, 2024 and 38,132,158 shares as of December 31, 2023, held in treasury, at cost   (773,767 )     (575,417 )
    Total stockholders’ equity   907,563       889,437  
    Total liabilities and stockholders’ equity $ 1,609,832     $ 1,441,972  

    EXLSERVICE HOLDINGS, INC.

    Reconciliation of Adjusted Financial Measures to GAAP Measures

    In addition to its reported operating results in accordance with U.S. generally accepted accounting principles (GAAP), EXL has included in this release certain financial measures that are considered non-GAAP financial measures, including the following:

    1. Adjusted operating income and adjusted operating income margin;
    2. Adjusted EBITDA and adjusted EBITDA margin;
    3. Adjusted net income and adjusted diluted earnings per share; and
    4. Revenue growth on constant currency basis.

    These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles, should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. Accordingly, the financial results calculated in accordance with GAAP and reconciliations from those financial statements should be carefully evaluated. EXL believes that providing these non-GAAP financial measures may help investors better understand EXL’s underlying financial performance. Management also believes that these non-GAAP financial measures, when read in conjunction with EXL’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s results and comparisons of the Company’s results with the results of other companies. Additionally, management considers some of these non-GAAP financial measures to determine variable compensation of its employees. The Company believes that it is unreasonably difficult to provide its earnings per share financial guidance in accordance with GAAP, or a qualitative reconciliation thereof, for a number of reasons, including, without limitation, the Company’s inability to predict its future stock-based compensation expense under ASC Topic 718, the amortization of intangibles associated with future acquisitions and the currency fluctuations and associated tax effects. As such, the Company presents guidance with respect to adjusted diluted earnings per share. The Company also incurs significant non-cash charges for depreciation that may not be indicative of the Company’s ability to generate cash flow.

    EXL non-GAAP financial measures exclude, where applicable, stock-based compensation expense, amortization of acquisition-related intangible assets, restructuring costs, litigation settlement costs and associated legal fees, effects of termination of leases, certain defined social security contributions, allowance for certain material expected credit losses, other acquisition-related expenses or benefits and effect of any non-recurring tax adjustments. Acquisition-related expenses or benefits include, changes in the fair value of contingent consideration, external deal costs, integration expenses, direct and incremental travel costs and non-recurring benefits or losses. Our adjusted net income and adjusted diluted EPS also excludes the effects of income tax on the above pre-tax items, as applicable. The effects of income tax of each item is calculated by applying the statutory rate of the local tax regulations in the jurisdiction in which the item was incurred.

    A limitation of using non-GAAP financial measures versus financial measures calculated in accordance with GAAP is that non-GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in accordance with GAAP and exclude costs that are recurring, namely stock-based compensation and amortization of acquisition-related intangible assets. EXL compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP financial measures to allow investors to evaluate such non-GAAP financial measures.

    EXL’s primary exchange rate exposure is with the Indian rupee, the Philippine peso, the U.K. pound sterling and the South African rand. The average exchange rate of the U.S. dollar against the Indian rupee increased from 82.69 during the quarter ended September 30, 2023 to 83.79 during the quarter ended September 30, 2024, representing a depreciation of 1.3% against the U.S. dollar. The average exchange rate of the U.S. dollar against the Philippine peso increased from 56.02 during the quarter ended September 30, 2023 to 56.84 during the quarter ended September 30, 2024, representing a depreciation of 1.5% against the U.S. dollar. The average exchange rate of the U.K. pound sterling against the U.S. dollar increased from 1.26 during the quarter ended September 30, 2023 to 1.31 during the quarter ended September 30, 2024, representing an appreciation of 4.4% against the U.S. dollar. The average exchange rate of the U.S. dollar against the South African rand decreased from 18.49 during the quarter ended September 30, 2023 to 17.74 during the quarter ended September 30, 2024, representing an appreciation of 4.1% against the U.S. dollar.

    The following table shows the reconciliation of these non-GAAP financial measures for the three months ended September 30, 2024 and September 30, 2023, and the three months ended June 30, 2024:

    Reconciliation of Adjusted Operating Income and Adjusted EBITDA
    (Amounts in thousands)
     
      Three months ended
      September 30,   June 30,
        2024       2023       2024  
    Net Income (GAAP) $ 53,037     $ 43,876     $ 45,825  
    add: Income tax expense   15,460       14,161       13,873  
    add/(subtract): Foreign exchange gain, net, interest expense,
    gain/(loss) from equity-method investment and other income/(loss), net
      908       2,193       1,751  
    Income from operations (GAAP) $ 69,405     $ 60,230     $ 61,449  
    add: Stock-based compensation expense   21,232       17,067       18,095  
    add: Amortization of acquisition-related intangibles   3,449       3,157       3,077  
    add: Restructuring and litigation settlement costs (a)               6,174  
    add: Allowance for expected credit losses (b)         1,700        
    Adjusted operating income (Non-GAAP) $ 94,086     $ 82,154     $ 88,795  
    Adjusted operating income margin as a % of Revenue (Non-GAAP)   19.9 %     20.0 %     19.8 %
    add: Depreciation on long-lived assets   10,350       8,426       9,833  
    Adjusted EBITDA (Non-GAAP) $ 104,436     $ 90,580     $ 98,628  
    Adjusted EBITDA margin as a % of revenue (Non-GAAP)   22.1 %     22.0 %     22.0 %

    (a) To exclude effects of employee severance costs and outplacement support costs of $4,762 and litigation settlement costs and associated legal fees of $1,412 during the three months ended June 30, 2024.

    (b) To exclude the effects of material allowance for expected credit losses on accounts receivables related to a customer bankruptcy event during the three months ended September 30, 2023.

    Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings Per Share
    (Amounts in thousands, except per share amount)
     
      Three months ended
      September 30,   June 30,
        2024       2023       2024  
    Net income (GAAP) $ 53,037     $ 43,876     $ 45,825  
    add: Stock-based compensation expense   21,232       17,067       18,095  
    add: Amortization of acquisition-related intangibles   3,449       3,157       3,077  
    add: Restructuring and litigation settlement costs (a)               6,174  
    add: Effects of changes in fair value of contingent consideration         2,500        
    add: Allowance for expected credit losses (b)         1,700        
    subtract: Tax impact on stock-based compensation expense (c)   (5,830 )     (4,340 )     (4,619 )
    subtract: Tax impact on amortization of acquisition-related intangibles   (866 )     (771 )     (765 )
    subtract: Tax impact on restructuring and litigation settlement costs               (1,588 )
    subtract: Tax impact on allowance for expected credit losses         (429 )      
    Adjusted net income (Non-GAAP) $ 71,022     $ 62,760     $ 66,199  
    Adjusted diluted earnings per share (Non-GAAP) $ 0.44     $ 0.37     $ 0.40  

    (a) To exclude effects of employee severance costs and outplacement support costs of $4,762 and litigation settlement costs and associated legal fees of $1,412 during the three months ended June 30, 2024.

    (b) To exclude the effects of material allowance for expected credit losses on accounts receivables related to a customer bankruptcy event during the three months ended September 30, 2023.

    (c) Tax impact includes $1,673 and $462 during the three months ended September 30, 2024 and 2023 respectively, and $18 during the three months ended June 30, 2024, related to discrete benefits recognized in income tax expense in accordance with ASU No. 2016-09, Compensation – Stock Compensation.

    Contacts:
    Investor Relations
    John Kristoff
    Vice President, Investor Relations
    +1 212 209 4613
    ir@exlservice.com

    Media – US
    Keith Little
    Assistant Vice President, Media Relations
    +1 703 598 0980
    media.relations@exlservice.com

    The MIL Network

  • MIL-OSI: Qorvo® Announces Fiscal 2025 Second Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    GREENSBORO, N.C., Oct. 29, 2024 (GLOBE NEWSWIRE) — Qorvo® (Nasdaq:QRVO), a leading global provider of connectivity and power solutions, today announced financial results for the Company’s fiscal 2025 second quarter ended September 28, 2024.

    On a GAAP basis, revenue for Qorvo’s fiscal 2025 second quarter was $1.047 billion, gross margin was 42.6%, operating income was $9.7 million, and loss per share was $0.18. On a non-GAAP basis, gross margin was 47.0%, operating income was $212.2 million, and diluted earnings per share was $1.88.

    Bob Bruggeworth, president and chief executive officer of Qorvo, said, “In the September quarter, ACG successfully supported our largest customer’s seasonal smartphone ramp. In HPA, we expanded our D&A business while building a broad-based business in power management. In CSG, we maintained our leadership in Wi-Fi applications while investing to grow in diverse businesses including automotive solutions and SoCs for ultra-wideband and Matter. HPA and CSG are on pace to achieve mid-teen year-over-year growth in fiscal 2025.”

    Financial Commentary and Outlook

    Grant Brown, chief financial officer of Qorvo, said, “In the September quarter, we exceeded the midpoint of guidance in revenue, gross margin and EPS. Looking forward, the flagship and premium tiers in the smartphone market are holding up well, however, content and ramp profiles vary by model, and we are experiencing unfavorable mix. We expect this to continue in the second half of fiscal 2025. In addition, in the mid and entry tiers of Android 5G smartphones, mix has shifted toward entry-tier 5G at the expense of mid-tier 5G. In our current view, we don’t expect this mix shift in Android 5G from mid-tier to entry-tier to reverse. As a result, we are taking appropriate actions, including factory consolidation and operating expense reductions as well as focusing on opportunities that align with our long-term profitability objectives. We currently expect full-year fiscal 2025 revenue and gross margin will be slightly down versus fiscal 2024.”

    Qorvo’s current outlook for the December 2024 quarter is:

    • Quarterly revenue of approximately $900 million, plus or minus $25 million
    • Non-GAAP gross margin of approximately 45%
    • Non-GAAP diluted earnings per share between $1.10 and $1.30

    See “Forward-looking non-GAAP financial measures” below. Qorvo’s actual quarterly results may differ from these expectations and projections, and such differences may be material.

    Selected Financial Information

    The following tables set forth selected GAAP and non-GAAP financial information for Qorvo for the periods indicated. See the more detailed financial information for Qorvo, including reconciliations of GAAP and non-GAAP financial information, attached.

    SELECTED GAAP RESULTS
    (In millions, except for percentages and EPS)
    (Unaudited)
                           
      Q2 Fiscal 2025   Q1 Fiscal 2025   Q2 Fiscal 2024   Sequential Change   Year-over-Year Change
    Revenue $ 1,046.5     $ 886.7     $ 1,103.5     $ 159.8     $ (57.0 )
    Gross profit $ 445.3     $ 332.3     $ 489.7     $ 113.0     $ (44.4 )
    Gross margin   42.6 %     37.5 %     44.4 %   5.1 ppt   (1.8) ppt
    Operating expenses $ 435.6     $ 327.7     $ 338.3     $ 107.9     $ 97.3  
    Operating income $ 9.7     $ 4.6     $ 151.4     $ 5.1     $ (141.7 )
    Net (loss) income $ (17.4 )   $ 0.4     $ 97.5     $ (17.8 )   $ (114.9 )
    Weighted-average diluted shares   94.9       96.5       98.6       (1.6 )     (3.7 )
    Diluted EPS (loss per share) $ (0.18 )   $ 0.00     $ 0.99     $ (0.18 )   $ (1.17 )
                           
                           
    SELECTED NON-GAAP RESULTS(1)
    (In millions, except for percentages and EPS)
    (Unaudited)
                           
      Q2 Fiscal 2025   Q1 Fiscal 2025   Q2 Fiscal 2024   Sequential Change   Year-over-Year Change
    Revenue $ 1,046.5     $ 886.7     $ 1,103.5     $ 159.8     $ (57.0 )
    Gross profit $ 492.0     $ 362.7     $ 525.2     $ 129.3     $ (33.2 )
    Gross margin   47.0 %     40.9 %     47.6 %     6.1 ppt       (0.6) ppt  
    Operating expenses $ 279.8     $ 264.5     $ 245.8     $ 15.3     $ 34.0  
    Operating income $ 212.2     $ 98.1     $ 279.4     $ 114.1     $ (67.2 )
    Net income $ 179.8     $ 83.5     $ 235.5     $ 96.3     $ (55.7 )
    Weighted-average diluted shares   95.8       96.5       98.6       (0.7 )     (2.8 )
    Diluted EPS $ 1.88     $ 0.87     $ 2.39     $ 1.01     $ (0.51 )

    (1) Adjusted for stock-based compensation expense, amortization of intangible assets, restructuring-related charges, acquisition and integration-related costs, goodwill and other asset impairments, gain or loss on assets, other expense or income, gain or loss on investments, and an adjustment of income taxes.

    SELECTED GAAP RESULTS BY OPERATING SEGMENT
    (In millions, except percentages)
    (Unaudited)
      Q2 Fiscal 2025   Q1 Fiscal 2025   Q2 Fiscal 2024   Sequential Change   Year-over-Year Change
    Revenue                  
    HPA $ 148.3     $ 129.5     $ 149.8       14.5 %     (1.0 )%
    CSG   146.8       114.9       103.6       27.8 %     41.7 %
    ACG   751.4       642.3       850.1       17.0 %     (11.6 )%
    Total revenue $ 1,046.5     $ 886.7     $ 1,103.5       18.0 %     (5.2 )%
    Operating income (loss)                      
    HPA $ 13.1     $ 4.9     $ 25.4       167.3 %     (48.4 )%
    CSG   (9.0 )     (19.5 )     (27.7 )     53.8 %     67.5 %
    ACG   215.1       116.4       284.8       84.8 %     (24.5 )%
    All other(1)   (209.5 )     (97.2 )     (131.1 )     (115.5 )%     (59.8 )%
    Total operating income $ 9.7     $ 4.6     $ 151.4       110.9 %     (93.6 )%
    Operating income (loss) as a % of revenue                          
    HPA   8.8 %     3.8 %     17.0 %     5.0 ppt       (8.2) ppt  
    CSG   (6.1 )     (17.0 )     (26.7 )     10.9 ppt       20.6 ppt  
    ACG   28.6       18.1       33.5       10.5 ppt       (4.9) ppt  
    Total operating income as a % of revenue   0.9 %     0.5 %     13.7 %     0.4 ppt       (12.8) ppt  

    (1) Includes stock-based compensation expense, amortization of intangible assets, restructuring-related charges, acquisition and integration-related costs, goodwill and other asset impairments, gain or loss on assets, other expense or income, and other miscellaneous corporate overhead expenses.

    Non-GAAP Financial Measures

    In addition to disclosing financial results calculated in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this earnings release contains some or all of the following non-GAAP financial measures: (i) non-GAAP gross profit and gross margin, (ii) non-GAAP operating expenses, operating income and operating margin, (iii) non-GAAP net income, (iv) non-GAAP net income per diluted share, (v) free cash flow, (vi) EBITDA, (vii) non-GAAP return on invested capital (ROIC), and (viii) net debt or positive net cash. Each of these non-GAAP financial measures is either adjusted from GAAP results to exclude certain expenses or derived from multiple GAAP measures, which are outlined in the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables, attached, and the “Additional Selected Non-GAAP Financial Measures and Reconciliations” tables, attached.

    In managing Qorvo’s business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures. In developing and monitoring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing gross margin and operating margin. In addition, management relies upon these non-GAAP financial measures to assess whether research and development efforts are at an appropriate level, and when making decisions about product spending, administrative budgets, and other operating expenses. Also, we believe that non-GAAP financial measures provide useful supplemental information to investors and enable investors to analyze the results of operations in the same way as management. We have chosen to provide this supplemental information to enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to operations, and stock-based compensation expense, which may obscure trends in Qorvo’s underlying performance.

    We believe that these non-GAAP financial measures offer an additional view of Qorvo’s operations that, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of Qorvo’s results of operations and the factors and trends affecting Qorvo’s business. However, these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

    Our rationale for using these non-GAAP financial measures, as well as their impact on the presentation of Qorvo’s operations, are outlined below:

    Non-GAAP gross profit and gross margin. Non-GAAP gross profit and gross margin exclude amortization of intangible assets, stock-based compensation expense, restructuring-related charges, acquisition and integration-related costs, and certain other expense (income). We believe that exclusion of these costs in presenting non-GAAP gross profit and gross margin facilitates a useful evaluation of our historical performance and projected costs and the potential for realizing cost efficiencies.

    We view amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, and customer relationships, as items arising from pre-acquisition activities, determined at the time of an acquisition, rather than ongoing costs of operating Qorvo’s business. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangible assets is a static expense, which is not typically affected by operations during any particular period. Although we exclude the amortization of purchased intangible assets from these non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase price accounting and contribute to revenue generation.

    We believe that presentation of non-GAAP gross profit and gross margin and other non-GAAP financial measures that exclude the impact of stock-based compensation expense assists management and investors in evaluating the period-over-period performance of Qorvo’s ongoing operations because (i) the expenses are non-cash in nature, and (ii) although the size of the grants is within our control, the amount of expense varies depending on factors such as short-term fluctuations in stock price volatility and prevailing interest rates, which can be unrelated to the operational performance of Qorvo during the period in which the expense is incurred and generally are outside the control of management. Moreover, we believe that the exclusion of stock-based compensation expense in presenting non-GAAP gross profit and gross margin and other non-GAAP financial measures is useful to investors to understand the impact of the expensing of stock-based compensation to Qorvo’s gross profit and gross margins and other financial measures in comparison to prior periods. We also believe that the adjustments to profit and margin related to restructuring-related charges, and acquisition and integration-related costs do not constitute part of Qorvo’s ongoing operations and therefore the exclusion of these items provides management and investors with better visibility into the actual costs required to generate revenues over time and facilitates a useful evaluation of our historical and projected performance. We believe disclosure of non-GAAP gross profit and gross margin has economic substance because the excluded expenses do not represent continuing cash expenditures and, as described above, we have little control over the timing and amount of the expenses in question.

    Non-GAAP operating expenses, operating income and operating margin. Non-GAAP operating expenses, operating income and operating margin exclude stock-based compensation expense, amortization of intangible assets, acquisition and integration-related costs, goodwill and other asset impairments, restructuring-related charges, (gain) loss on assets and certain other expense (income). We believe that presentation of a measure of operating expenses, operating income and operating margin that excludes amortization of intangible assets and stock-based compensation expense is useful to both management and investors for the same reasons as described above with respect to our use of non-GAAP gross profit and gross margin. We believe that acquisition and integration-related costs, goodwill and other asset impairments, restructuring-related charges, (gain) loss on assets and certain other expense (income) do not constitute part of Qorvo’s ongoing operations and therefore, the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time and facilitates a useful evaluation of our historical and projected performance. We believe disclosure of non-GAAP operating expenses, operating income and operating margin has economic substance because the excluded expenses are either unrelated to ongoing operations or do not represent current cash expenditures.

    Non-GAAP net income and non-GAAP net income per diluted share. Non-GAAP net income and non-GAAP net income per diluted share exclude the effects of stock-based compensation expense, amortization of intangible assets, acquisition and integration-related costs, goodwill and other asset impairments, restructuring-related charges, (gain) loss on assets, certain other expense (income), gain or loss on investments, and also reflect an adjustment of income taxes. The income tax adjustment primarily represents the use of research and development tax credit carryforwards, deferred tax expense (benefit) items not affecting taxes payable, adjustments related to the deemed and actual repatriation of historical foreign earnings, non-cash expense (benefit) related to uncertain tax positions and other items unrelated to the current fiscal year or that are not indicative of our ongoing business operations. We believe that presentation of measures of net income and net income per diluted share that exclude these items is useful to both management and investors for the reasons described above with respect to non-GAAP gross profit and gross margin and non-GAAP operating expenses, operating income and operating margin. We believe disclosure of non-GAAP net income and non-GAAP net income per diluted share has economic substance because the excluded expenses are either unrelated to ongoing operations or do not represent current cash expenditures.

    Free cash flow. Qorvo defines free cash flow as net cash provided by operating activities during the period minus property and equipment expenditures made during the period, and free cash flow margin is calculated as free cash flow as a percentage of revenue. We use free cash flow as a supplemental financial measure in our evaluation of liquidity and financial strength. Management believes that this measure is useful as an indicator of our ability to service our debt, meet other payment obligations and make strategic investments. Free cash flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our entire statement of cash flows.

    EBITDA. Qorvo adjusts GAAP net income for interest expense, interest income, income tax expense (benefit), depreciation and intangible amortization expense, stock-based compensation and other charges that are not representative of Qorvo’s ongoing operations (including goodwill and other asset impairments, investment activity, acquisition-related costs and restructuring-related costs) when presenting EBITDA. Management believes that this measure is useful to evaluate our ongoing operations and as a general indicator of our operating cash flow (in conjunction with a cash flow statement which also includes among other items, changes in working capital and the effect of non-cash charges).

    Non-GAAP ROIC. Return on invested capital (ROIC) is a non-GAAP financial measure that management believes provides useful supplemental information for management and the investor by measuring the effectiveness of our operations’ use of invested capital to generate profits. We use ROIC to track how much value we are creating for our shareholders. Non-GAAP ROIC is calculated by dividing annualized non-GAAP operating income, net of an adjustment for income taxes (as described above), by average invested capital. Average invested capital is calculated by subtracting the average of the beginning balance and the ending balance of equity plus net debt, less certain goodwill.

    Net debt or positive net cash. Net debt or positive net cash is defined as unrestricted cash, cash equivalents and short-term investments minus any borrowings under our credit facility and the principal balance of our senior unsecured notes. Management believes that net debt or positive net cash provides useful information regarding the level of Qorvo’s indebtedness by reflecting cash and investments that could be used to repay debt.

    Inventory days on hand. Inventory days on hand is defined as (a) average net inventory for the period, divided by (b) the result of non-GAAP cost of goods sold for the period divided by the number of days in the period.

    Forward-looking non-GAAP financial measures. Our earnings release contains forward-looking free cash flow, gross margin, income tax rate and diluted earnings per share. We provide these non-GAAP measures to investors on a prospective basis for the same reasons (set forth above) that we provide them to investors on a historical basis. We are unable to provide a reconciliation of the forward-looking non-GAAP financial measures to the most directly comparable forward-looking GAAP financial measures without unreasonable effort due to variability and difficulty in making accurate projections for items that would be required to be included in the GAAP measures, such as stock-based compensation, acquisition and integration-related costs, restructuring-related charges, gain or loss on assets, goodwill and other asset impairments, gain or loss on investments and the provision for income taxes, which could have a potentially significant impact on our future GAAP results.

    Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP financial measures as an analytical tool compared to the most directly comparable GAAP financial measures are these non-GAAP financial measures (i) may not be comparable to similarly titled measures used by other companies in our industry, and (ii) exclude financial information that some may consider important in evaluating our performance, thus limiting their usefulness as a comparative tool. We compensate for these limitations by providing full disclosure of the differences between these non-GAAP financial measures and the corresponding GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the corresponding GAAP financial measures, to enable investors to perform their own analysis of our gross profit and gross margin, operating expenses, operating income, net income, net income per diluted share and net cash provided by operating activities. We further compensate for the limitations of our use of non-GAAP financial measures by presenting the corresponding GAAP measures more prominently.

    Qorvo will conduct a conference call at 5:00 p.m. ET today to discuss today’s press release. The conference call will be broadcast live over the Internet and can be accessed by any interested party at the following URL: https://ir.qorvo.com (under “Events & Presentations”). A telephone playback of the conference call will be available approximately two hours after the call’s completion and can be accessed by dialing 1-412-317-0088 and using the passcode 2723791. The playback will be available through the close of business November 5, 2024.

    About Qorvo

    Qorvo (Nasdaq:QRVO) supplies innovative semiconductor solutions that make a better world possible. We combine product and technology leadership, systems-level expertise and global manufacturing scale to quickly solve our customers’ most complex technical challenges. Qorvo serves diverse high-growth segments of large global markets, including automotive, consumer, defense & aerospace, industrial & enterprise, infrastructure and mobile. Visit www.qorvo.com to learn how our diverse and innovative team is helping connect, protect and power our planet.

    Qorvo is a registered trademark of Qorvo, Inc. in the U.S. and in other countries. All other trademarks are the property of their respective owners.

    This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions, and are not historical facts and typically are identified by terms such as “may,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “forecast”, “predict,” “potential,” “continue” and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements included herein represent management’s current judgment and expectations as of the date the statement is first made, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We caution you not to place undue reliance upon any such forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under U.S. federal securities laws. Our business is subject to numerous risks and uncertainties, including those relating to fluctuations in our operating results on a quarterly and annual basis; our substantial dependence on developing new products and achieving design wins; our dependence on several large customers for a substantial portion of our revenue; a loss of revenue if defense and aerospace contracts are canceled or delayed; our dependence on third parties; risks related to sales through distributors; risks associated with the operation of our manufacturing facilities; business disruptions; poor manufacturing yields; increased inventory risks and costs, due to timing of customers’ forecasts; our inability to effectively manage or maintain relationships with chipset suppliers; our ability to continue to innovate in a very competitive industry; underutilization of manufacturing facilities; unfavorable changes in interest rates, pricing of certain precious metals, utility rates and foreign currency exchange rates; our acquisitions, divestitures and other strategic investments failing to achieve financial or strategic objectives; our ability to attract, retain and motivate key employees; warranty claims, product recalls and product liability; changes in our effective tax rate; enactment of international or domestic tax legislation, or changes in regulatory guidance; changes in the favorable tax status of certain of our subsidiaries; risks associated with social, environmental, health and safety regulations, and climate change; risks from international sales and operations; economic regulation in China; changes in government trade policies, including imposition of tariffs and export restrictions; we may not be able to generate sufficient cash to service all of our debt; restrictions imposed by the agreements governing our debt; our reliance on our intellectual property portfolio; claims of infringement of third-party intellectual property rights; security breaches, failed system upgrades or regular maintenance and other similar disruptions to our IT systems; theft, loss or misuse of personal data by or about our employees, customers or third parties; provisions in our governing documents and Delaware law may discourage takeovers and business combinations that our stockholders might consider to be in their best interests; and volatility in the price of our common stock. These and other risks and uncertainties, which are described in more detail under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended March 30, 2024, and Qorvo’s subsequent reports and statements that we file with the SEC, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.

    Financial Tables to Follow

    QORVO, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
    (Unaudited)
     
      Three Months Ended   Six Months Ended
      September 28, 2024   September 30, 2023   September 28, 2024   September 30, 2023
    Revenue $ 1,046,509     $ 1,103,493     $ 1,933,180     $ 1,754,657  
                   
    Costs and expenses:              
    Cost of goods sold   601,203       613,803       1,155,570       1,035,897  
    Research and development   201,050       174,947       388,652       338,037  
    Selling, general and administrative   107,760       103,696       222,683       209,119  
    Other operating expense   126,821       59,619       151,994       68,312  
    Total costs and expenses   1,036,834       952,065       1,918,899       1,651,365  
                   
    Operating income   9,675       151,428       14,281       103,292  
    Interest expense   (22,594 )     (17,121 )     (39,688 )     (34,382 )
    Other income, net   15,422       5,211       27,187       18,927  
                   
    Income before income taxes   2,503       139,518       1,780       87,837  
    Income tax expense   (19,938 )     (42,057 )     (18,801 )     (33,956 )
    Net (loss) income $ (17,435 )   $ 97,461     $ (17,021 )   $ 53,881  
                   
    Net (loss) income per share:              
    Basic $ (0.18 )   $ 1.00     $ (0.18 )   $ 0.55  
    Diluted $ (0.18 )   $ 0.99     $ (0.18 )   $ 0.54  
                   
    Weighted-average shares of common stock outstanding:              
    Basic   94,886       97,945       95,116       98,167  
    Diluted   94,886       98,590       95,116       98,892  
    QORVO, INC. AND SUBSIDIARIES
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
    (In thousands, except per share data)
    (Unaudited)
     
      Three Months Ended
      September 28, 2024   June 29, 2024   September 30, 2023
               
    GAAP operating income $ 9,675     $ 4,606     $ 151,428  
    Stock-based compensation expense   38,181       42,366       39,053  
    Amortization of intangible assets   29,482       30,474       29,963  
    Restructuring-related charges   34,396       19,574       8,418  
    Acquisition and integration-related costs   1,211       2,582       852  
    Goodwill impairment   96,458             48,000  
    Other expense (income)   2,811       (1,477 )     1,712  
    Non-GAAP operating income $ 212,214     $ 98,125     $ 279,426  
               
    GAAP net (loss) income $ (17,435 )   $ 414     $ 97,461  
    Stock-based compensation expense   38,181       42,366       39,053  
    Amortization of intangible assets   29,482       30,474       29,963  
    Restructuring-related charges   34,396       19,574       8,418  
    Acquisition and integration-related costs   1,211       2,582       852  
    Goodwill impairment   96,458             48,000  
    Other expense (income)   379       (3,446 )     2,616  
    Loss on investments   780       2,499       1,574  
    Adjustment of income taxes   (3,611 )     (10,939 )     7,576  
    Non-GAAP net income $ 179,841     $ 83,524     $ 235,513  
               
    GAAP weighted-average outstanding diluted shares   94,886       96,510       98,590  
    Dilutive stock-based awards   867              
    Non-GAAP weighted-average outstanding diluted shares   95,753       96,510       98,590  
               
    Non-GAAP net income per share, diluted $ 1.88     $ 0.87     $ 2.39  
    QORVO, INC. AND SUBSIDIARIES
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
    (Unaudited)
     
      Three Months Ended
    (in thousands, except percentages) September 28, 2024   June 29, 2024   September 30, 2023
    GAAP gross profit/margin $ 445,306       42.6 %   $ 332,304       37.5 %   $ 489,690       44.4 %
    Stock-based compensation expense   6,047       0.6       5,186       0.6       7,481       0.7  
    Amortization of intangible assets   25,523       2.4       25,827       2.9       25,591       2.3  
    Restructuring-related charges   15,414       1.4                   2,482       0.2  
    Acquisition and integration-related costs   636       0.1       1,925       0.2       1        
    Other income   (885 )     (0.1 )     (2,586 )     (0.3 )            
    Non-GAAP gross profit/margin $ 492,041       47.0 %   $ 362,656       40.9 %   $ 525,245       47.6 %
      Three Months Ended
    Non-GAAP Operating Income September 28, 2024
    (as a percentage of revenue)  
       
    GAAP operating income   0.9 %
    Stock-based compensation expense   3.7  
    Amortization of intangible assets   2.8  
    Restructuring-related charges   3.3  
    Acquisition and integration-related costs   0.1  
    Goodwill impairment   9.2  
    Other expense   0.3  
    Non-GAAP operating income   20.3 %
      Three Months Ended
    Free Cash Flow(1) September 28, 2024
    (in millions)  
       
    Net cash provided by operating activities $ 127.8  
    Purchases of property and equipment   (33.0 )
    Free cash flow $ 94.8  

    (1) Free Cash Flow is calculated as net cash provided by operating activities minus property and equipment expenditures.

    QORVO, INC. AND SUBSIDIARIES
    ADDITIONAL SELECTED NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
    (In thousands)
    (Unaudited)
     
      Three Months Ended
      September 28, 2024   June 29, 2024   September 30, 2023
    GAAP research and development expense $ 201,050     $ 187,602     $ 174,947  
    Less:          
    Stock-based compensation expense   13,468       12,727       11,519  
    Acquisition and integration-related costs   2       2       2  
    Non-GAAP research and development expense $ 187,580     $ 174,873     $ 163,426  
               
      Three Months Ended
      September 28, 2024   June 29, 2024   September 30, 2023
    GAAP selling, general and administrative expense $ 107,760     $ 114,923     $ 103,696  
    Less:          
    Stock-based compensation expense   18,488       24,322       20,030  
    Amortization of intangible assets   3,959       4,647       4,372  
    Acquisition and integration-related costs   1              
    Non-GAAP selling, general and administrative expense $ 85,312     $ 85,954     $ 79,294  
               
      Three Months Ended
      September 28, 2024   June 29, 2024   September 30, 2023
    GAAP other operating expense $ 126,821     $ 25,173     $ 59,619  
    Less:          
    Stock-based compensation expense   178       131       23  
    Restructuring-related charges   18,982       19,574       5,936  
    Acquisition and integration-related costs   572       655       849  
    Goodwill impairment   96,458             48,000  
    Other expense   3,696       1,109       1,712  
    Non-GAAP other operating expense $ 6,935     $ 3,704     $ 3,099  
               
      Three Months Ended
      September 28, 2024   June 29, 2024   September 30, 2023
    GAAP total operating expense $ 435,631     $ 327,698     $ 338,262  
    Less:          
    Stock-based compensation expense   32,134       37,180       31,572  
    Amortization of intangible assets   3,959       4,647       4,372  
    Restructuring-related charges   18,982       19,574       5,936  
    Acquisition and integration-related costs   575       657       851  
    Goodwill impairment   96,458             48,000  
    Other expense   3,696       1,109       1,712  
    Non-GAAP total operating expense $ 279,827     $ 264,531     $ 245,819  
    QORVO, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (Unaudited)
     
      September 28, 2024   March 30, 2024
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 1,096,452     $ 1,029,258  
    Accounts receivable, net   580,963       412,960  
    Inventories   694,457       710,555  
    Other current assets   160,587       133,983  
    Assets of disposal group held for sale         159,278  
    Total current assets   2,532,459       2,446,034  
           
    Property and equipment, net   846,540       870,982  
    Goodwill   2,437,790       2,534,601  
    Intangible assets, net   445,715       509,383  
    Long-term investments   24,804       23,252  
    Other non-current assets   215,767       170,383  
    Total assets $ 6,503,075     $ 6,554,635  
           
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable and accrued liabilities $ 675,581     $ 589,760  
    Current portion of long-term debt   412,179       438,740  
    Other current liabilities   245,977       113,215  
    Liabilities of disposal group held for sale         88,372  
    Total current liabilities   1,333,737       1,230,087  
           
    Long-term debt   1,549,244       1,549,272  
    Other long-term liabilities   209,925       218,904  
    Total liabilities   3,092,906       2,998,263  
           
    Stockholders’ equity   3,410,169       3,556,372  
    Total liabilities and stockholders’ equity $ 6,503,075     $ 6,554,635  

    At Qorvo®
    Doug DeLieto
    VP, Investor Relations
    1.336.678.7968

    The MIL Network

  • MIL-OSI: Gibson Energy Announces 2024 Third Quarter Results and 2024 Record Crude Volumes at Edmonton Terminal

    Source: GlobeNewswire (MIL-OSI)

    All financial figures are in Canadian dollars unless otherwise noted

    CALGARY, Alberta, Oct. 29, 2024 (GLOBE NEWSWIRE) — Gibson Energy Inc. (TSX:GEI) (“Gibson” or the “Company”) announced today its financial and operating results for the three and nine months ended September 30, 2024.

    “Gibson delivered strong results in the third quarter, driven by the continued strength and stability of our Infrastructure segment, which now represents over 85% of our business, and saw 2024 record third party crude volumes at our Edmonton Terminal in the third quarter, driven by deliveries onto the Trans Mountain Expansion pipeline,” said Curtis Philippon, President and Chief Executive Officer. “Since joining Gibson in August, I have had the opportunity to visit all of our operations. Gibson’s critical energy infrastructure spans from touching one in four barrels produced in Western Canada to exporting Permian & Eagle Ford barrels through one of the largest crude export terminals in the United States. It is impressive to see firsthand our asset base and meet the passionate talented teams that support it.”

    Financial Highlights:

    • Revenue of $2,900 million in the third quarter, a $325 million or 10% decrease relative to the third quarter of 2023, due to lower revenues within the Marketing segment driven by Crude Marketing sales volume
    • Infrastructure adjusted EBITDA(1) of $150 million in the third quarter, a $10 million or 7% increase from the third quarter of 2023, primarily driven by a full quarter of contribution from the Gateway Terminal
    • Marketing adjusted EBITDA(1) of $14 million in the third quarter, a $10 million or 41% decrease from the third quarter of 2023, due to lower contributions from the Refined Products business resulting from compressed refining margins and the Crude Marketing business due to fewer opportunities
    • Adjusted EBITDA(1) on a consolidated basis of $151 million in the third quarter, a $2 million or 1% increase over the third quarter of 2023, as higher Infrastructure adjusted EBITDA(1) offset lower Marketing results
    • Net income of $54 million in the third quarter, a $33 million or 161% increase over the third quarter of 2023, primarily due to one-time transaction and finance costs incurred in relation to the acquisition of the Gateway Terminal in the comparative period, and the factors noted above, partially offset by higher depreciation, amortization, income tax expense and foreign exchange losses
    • Distributable cash flow(1) of $88 million in the third quarter, a $5 million or 5% decrease from the third quarter of 2023, primarily due to higher current income tax expense
    • Dividend payout ratio(2) on a trailing twelve-month basis of 65%, below the Company’s 70% – 80% target
    • Net debt to adjusted EBITDA ratio(2) at September 30, 2024 of 3.2x, within the Company’s 3.0x – 3.5x target

    Strategic Developments and Highlights:

    • On July 15, 2024, Gibson announced the extension of a long-term contract with an investment grade global E&P company at its Gateway Terminal which further enhanced the quality of the Company’s cash flows, as well as the sanction of a connection to the Cactus II Pipeline, providing customers with access to up to approximately 700,000 barrels per day of incremental supply

    (1) Adjusted EBITDA and distributable cash flow are non-GAAP financial measures. See the “Specified Financial Measures” section of this release.
    (2) Net debt to adjusted EBITDA ratio and dividend payout ratio are non-GAAP financial ratios. See the “Specified Financial Measures” section of this release.

    Management’s Discussion and Analysis and Financial Statements
    The 2024 third quarter Management’s Discussion and Analysis and unaudited Condensed Consolidated Financial Statements provide a detailed explanation of Gibson’s financial and operating results for the three months and nine months ended September 30, 2024, as compared to the three months and nine months ended September 30, 2023. These documents are available at www.gibsonenergy.com and on SEDAR+ at www.sedarplus.ca.

    Earnings Conference Call & Webcast Details
    A conference call and webcast will be held to discuss the 2024 third quarter financial and operating results at 7:00am Mountain Time (9:00am Eastern Time) on Wednesday, October 30, 2024.

    To register for the call, view dial-in numbers, and obtain a dial-in PIN, please access the following URL:

    Registration at least five minutes prior to the conference call is recommended. 

    This call will also be broadcast live on the Internet and may be accessed directly at the following URL:

    The webcast will remain accessible for a 12-month period at the above URL.

    Supplementary Information
    Gibson has also made available certain supplementary information regarding the 2024 third quarter financial and operating results, available at www.gibsonenergy.com.

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

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

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

    For further information, please contact:

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

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

    Specified Financial Measures

    This press release refers to certain financial measures that are not determined in accordance with GAAP, including non-GAAP financial measures and non-GAAP financial ratios. Readers are cautioned that non-GAAP financial measures and non-GAAP financial ratios do not have standardized meanings prescribed by GAAP and, therefore, may not be comparable to similar measures presented by other entities. Management considers these to be important supplemental measures of the Company’s performance and believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures.

    For further details on these specified financial measures, including relevant reconciliations, see the “Specified Financial Measures” section of the Company’s MD&A for the three and nine months ended September 30, 2024 and 2023, which is incorporated by reference herein and is available on Gibson’s SEDAR+ profile at www.sedarplus.ca and Gibson’s website at www.gibsonenergy.com.

    a) Adjusted EBITDA

    Noted below is the reconciliation to the most directly comparable GAAP measures of the Company’s segmented and consolidated adjusted EBITDA for the three and nine months ended September 30, 2024, and 2023:

    Three months ended September 30, Infrastructure Marketing Corporate and Adjustments Total
    ($ thousands) 2024   2023   2024   2023   2024   2023   2024   2023  
                           
    Segment profit 150,271   137,727   14,183   17,900       164,454   155,627  
    Unrealized (gain) loss on derivative financial instruments (1,553 ) 740   25   6,059       (1,528 ) 6,799  
    General and administrative         (13,004 ) (14,258 ) (13,004 ) (14,258 )
    Adjustments to share of profit from equity accounted investees 1,166   1,432           1,166   1,432  
    Executive transition costs             251     251    
    Renewable power purchase agreement         (175 )   (175 )  
    Other                
    Adjusted EBITDA 149,884   139,899   14,208   23,959   (12,928 ) (14,258 ) 151,164   149,600  
                           
    Nine months ended September 30, Infrastructure Marketing Corporate and Adjustments Total
    ($ thousands) 2024   2023   2024   2023   2024   2023   2024   2023  
                         
    Segment profit 446,566   336,483   69,391   123,962       515,957   460,445  
    Unrealized loss (gain) on derivative financial instruments 3,746   740   (1,884 ) (6,872 )     1,862   (6,132 )
    General and administrative         (51,920 ) (38,677 ) (51,920 ) (38,677 )
    Adjustments to share of profit from equity accounted investees 4,071   4,293           4,071   4,293  
    Executive transition costs         10,665     10,665    
    Renewable power purchase agreement         (175 )   (175 )  
    Other           218     218  
    Adjusted EBITDA 454,383   341,516   67,507   117,090   (41,430 ) (38,459 ) 480,460   420,147  
                                     
      Three months ended September 30,
     
    ($ thousands) 2024   2023  
         
    Net Income 53,916   20,633  
         
    Income tax expense 14,573   7,678  
    Depreciation, amortization, and impairment charges 44,289   38,542  
    Finance costs, net 32,545   50,222  
    Unrealized (gain) loss on derivative financial instruments (1,528 ) 6,799  
    Corporate unrealized (gain) loss on derivative financial instruments (1) (1,934 ) 430  
    Stock based compensation 4,747   6,455  
    Acquisition and integration costs   19,959  
    Adjustments to share of profit from equity accounted investees 1,166   1,432  
    Corporate foreign exchange loss (gain) and other 3,139   (2,550 )
    Executive transition costs 251    
    Adjusted EBITDA 151,164   149,600  
             
      Nine months ended September 30,
     
    ($ thousands) 2024   2023  
           
    Net Income 157,737   160,910  
           
    Income tax expense 46,205   50,864  
    Depreciation, amortization, and impairment charges 131,452   94,788  
    Finance costs, net 104,285   80,357  
    Unrealized loss (gain) on derivative financial instruments 1,862   (6,132 )
    Corporate unrealized loss (gain) on derivative financial instruments (1) 6,707   430  
    Stock based compensation 15,158   15,344  
    Acquisition and integration costs 1,371   19,959  
    Adjustments to share of profit from equity accounted investees 4,071   4,293  
    Corporate foreign exchange loss (gain) and other 947   (666 )
    Executive transition costs 10,665    
    Adjusted EBITDA 480,460   420,147  
             

    b) Distributable Cash Flow

    The following is a reconciliation of distributable cash flow from operations to its most directly comparable GAAP measure, cash flow from operating activities:

      Three months ended September 30,
      Nine months ended September 30,
     
    ($ thousands) 2024   2023   2024   2023  
             
    Cash flow from operating activities 404,794   190,015   531,178   419,254  
    Adjustments:        
    Changes in non-cash working capital and taxes paid (258,264 ) (61,420 ) (64,620 ) (14,921 )
    Replacement capital (13,023 ) (12,876 ) (24,260 ) (25,702 )
    Cash interest expense, including capitalized interest (34,045 ) (32,290 ) (102,405 ) (65,677 )
    Acquisition and integration costs (1)   19,959   1,371   19,959  
    Executive transition costs 7,433     10,665    
    Lease payments (8,144 ) (8,575 ) (24,178 ) (26,268 )
    Current income tax (10,582 ) (1,860 ) (23,633 ) (23,800 )
    Distributable cash flow 88,169   92,953   304,118   282,845  
                     
    Twelve months ended September 30,
     
    ($ thousands) 2024   2023  
         
    Cash flow from operating activities 686,780   489,312  
    Adjustments:    
    Changes in non-cash working capital and taxes paid (57,133 ) 47,812  
    Replacement capital (34,486 ) (32,559 )
    Cash interest expense, including capitalized interest (136,861 ) (81,966 )
    Acquisition and integration costs (1) 3,454   19,959  
    Executive transition costs 10,665    
    Lease payments (33,806 ) (34,035 )
    Current income tax (31,550 ) (37,218 )
    Distributable cash flow 407,063   371,305  
             

    c) Dividend Payout Ratio

    Twelve months ended September 30,
     
      2024   2023  
    Distributable cash flow 407,063   371,305  
    Dividends declared 263,050   226,755  
    Dividend payout ratio 65 % 61 %
             

    d) Net Debt To Adjusted EBITDA Ratio

      Twelve months ended September 30,
     
      2024   2023  
         
    Current and long-term debt 2,528,454   2,645,904  
    Lease  liabilities 50,246   67,862  
    Less: unsecured hybrid debt (450,000 ) (450,000 )
    Less: cash and cash equivalents (55,584 ) (54,464 )
         
    Net debt 2,073,116   2,209,302  
    Adjusted EBITDA 650,141   557,481  
    Net debt to adjusted EBITDA ratio 3.2   4.0  
             

    The MIL Network

  • MIL-OSI: Gibson Energy Declares Dividend

    Source: GlobeNewswire (MIL-OSI)

    All financial figures are in Canadian dollars unless otherwise noted

    CALGARY, Alberta, Oct. 29, 2024 (GLOBE NEWSWIRE) — Gibson Energy Inc. (TSX:GEI) (“Gibson” or the “Company”) announced today that its Board of Directors has approved a quarterly dividend of $0.41 per common share payable on January 17, 2025, to shareholders of record at the close of business December 31, 2024. This dividend is designated as an eligible dividend for Canadian income tax purposes. For non-resident shareholders, Gibson’s dividends are subject to Canadian withholding tax.

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

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

    For further information, please contact:

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

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

    The MIL Network

  • MIL-OSI Economics: How the B20 is turning policy into action for a sustainable future

    Source: International Chamber of Commerce

    Headline: How the B20 is turning policy into action for a sustainable future

    As a B20 Network Partner, ICC supported the Brazilian National Confederation of Industry (CNI) in the fulfilment of the theme – contributing to the development of impactful policy recommendations, leveraging the participation of 11 ICC Executive Board members across a range of Task Forces, and ICC and World Chambers Federation leadership in the B20 International Business Advisory Caucus.

    The B20 is a global platform for the international business community to support the work of the G20 process. Here’s how ICC is working to help the B20 turn policy into action.

    Improving representation of women in B20 Task Forces

    As a partner institution of a new B20 initiative to help increase the representation of women in B20 membership and leadership, ICC pledged to support B20 presidencies by proposing women candidates eligible to chair B20 task forces and encouraging women to become B20 members through the mobilisation of the global ICC network in over 170 countries. The SheLeads B20 initiative aims to achieve 50% female representation by 2030. ICC Secretary General John W.H. Denton AO, who co-chaired a B20 Task Force on Finance and Infrastructure, signed the pledge on behalf of ICC, together with representatives from the OECD, Business at OECD, and International Organisation of Employers (IOE). Prominent women leaders, ICC Honorary Chair Maria Fernanda Garza, ICC Board Member Lama Al-Sulaiman and ICC World Chambers Federation First Vice-Chair Marie Christine Oghly co-chaired B20 Brazil Task Forces on Integrity and Compliance, Employment and Education, and Women, Diversity and Inclusion in Business respectively. Five additional female ICC Board Members (Candace Johnson, Rebecca Enonchong, Marienne Coutinho, Marjorie Yang, and Patricia Nzolantima) were also Members of B20 Task Forces this year.

    Women in trade

    ICC is also a proud supporter of B20 Brazil’s Women in Trade legacy initiative. Working in collaboration with the International Trade Centre (ITC) and the Organisation for Economic Co-operation and Development (OECD), the initiative saw the G20 and B20 partner to share knowledge and best practices for inclusive trade policy designed to increase women’s participation in international trade.

    Combatting food loss and waste

    The Summit also saw the launch of an ICC-B20 Global Challenge against Food Loss and Waste to address food insecurity. The Initiative aims to identify, through a global challenge, private sector projects that can contribute to tackle the most critical issues related to food loss and waste.

    Following a consultation phase, businesses worldwide will be invited to submit proposals aimed at addressing the five biggest challenges related to food loss and waste. The highest-ranking projects will be presented at the FAO World Food Forum in October 2025, providing an opportunity for further visibility and engagement with key stakeholders. A founding member of the Global Alliance Against Hunger and Poverty, one of the Brazilian G20 Presidency’s key initiatives, ICC is committed to leveraging the unique expertise and network of the private sector to support and scale integrated solutions to sustainably and equitably feed the world.

    Addressing B20 participants on a panel looking at how B20 Brazil legacy initiatives are turning policy into action, ICC Secretary General John W.H. Denton AO said:

    “Through the ICC-B20 Global Challenge against Food Loss and Waste, we aim to act as a bridge between the B20 and G20, ensuring public-private collaboration to achieve lasting solutions to poverty and hunger worldwide.”

    MIL OSI Economics

  • MIL-OSI USA: Schumer, Gillibrand Secure Nearly $12 Million To Replace Bridge Street Bridge Over Schoharie Creek

    US Senate News:

    Source: United States Senator for New York Kirsten Gillibrand

    Senators Say Fed $$ Will Support Critical Replacement Of 100-Year-Old Bridge Via Bipartisan Infrastructure Law’s Competitive “Bridge Investment Program”

    Schumer, Gillibrand: The Bipartisan Infrastructure & Jobs Law Is Helping Bridge The Gap To Build Long Overdue Projects The Capital Region!

    U.S. Senate Majority Leader Charles E. Schumer and U.S. Senator Kirsten Gillibrand announced $11,600,000 for Schoharie County to replace the Bridge Street bridge over Schoharie Creek as a recipient of the U.S. Department of Transportation’s (DOT) highly competitive Bridge Investment Program. The federal funding, created in the Bipartisan Infrastructure Investment & Jobs Law championed by the senators, will help replace the aging bridge, which is a vital connector in Schoharie County.

    “The Bridge Street bridge is a vital connector in Schoharie County, but after 100 years of use, it is nearing the end of its useful life. This $11.6 million will boost efforts to replace the bridge and restore this vital connector for Schoharie County,” said Senator Schumer. “The next closest bridge over Schoharie Creek is more than 20 minutes away. When considering emergency vehicles, that 20 minutes is vital. New York State has already put a weight restriction on the bridge due to its condition, and it’s vital that we build a replacement bridge as soon as possible to keep people safe and to maximize ease of transport and economic efficiency. I fought to create the Bridge Investment Program in our Bipartisan Infrastructure & Jobs Law because I know how important boosting federal investment in bridges is to protecting travelers’ safety while creating good-paying jobs. I’m proud that the law is continuing to deliver for the Capital Region.”

    “Infrastructure like the Bridge Street bridge helps local economies thrive, plays a vital role in protecting public safety, and connects communities,” said Senator Gillibrand. “Bridge Street serves as a crucial overpass for emergency vehicles, farm vehicles, and citizens of Schoharie County, and its replacement is long overdue. I’m proud to have fought for the passage of the Bipartisan Infrastructure Law and helped secure this funding for the Capital Region. I will continue working to deliver federal dollars to New York for the improvement of our infrastructure.”

    “We are deeply grateful to Senator Schumer, Senator Gillibrand, Lieutenant Governor Delgado, Congresswoman Stefanik and all the bipartisan supporters for securing the $11.6 million needed for Schoharie’s new Bridge Street Bridge. This bridge is essential for our town—it boosts the safety and efficiency of our roads, ensures emergency responders can act quickly, supports our farmers who rely on it, and links our community hubs. This investment is a big win for everyone in Schoharie County, showing a strong commitment to enhancing our critical infrastructure,” said Benjamin Oevering, Supervisor, Town of Schoharie.

    The Bridge Street bridge is a vital connector in Schoharie County, but after 100 years of use, it is nearing the end of its useful life. The federal funding secured by the senators will help the county build a new bridge, increasing safety and creating jobs. New York State has put a weight restriction on the bridge due to its condition, and the County is concerned that further disrepair could eventually limit its use by emergency vehicles. The nearest bridge is approximately 10 miles away, adding 20-25 minutes in commute time. The senators also said that farm vehicles use the bridge regularly, and the bridge is vital to the County’s thriving rural agriculture economy.

    The senators explained that the Bipartisan Infrastructure Investment and Jobs Act included $12.5 billion appropriated annually over five years (FY 22-26) to help plan, replace, rehabilitate, protect, and preserve some of the nation’s largest bridges, ensuring that they remain operational, support local economies, strengthen supply chains, and improve safety. The Capital Region was one of the first in the nation to tap into this federal funding when Schumer and Gillibrand secured $21 million to repair and modernize the Castleton-on-Hudson Bridge in April 2023.

    MIL OSI USA News

  • MIL-OSI Asia-Pac: Vigilance Department of RINL organises Walkathon at Visakhapatnam Steel Plant as Part of Vigilance Awareness Week 2024 at Visakhapatnam Steel Plan

    Source: Government of India (2)

    Posted On: 29 OCT 2024 5:07PM by PIB Delhi

    In alignment with the guidelines set by the Central Vigilance Commission (CVC), the Vigilance Department of Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant organized a Walkathon in association with the Sports Department at Col. CK. Naidu Ukku Stadium of Visakhapatnam Steel plant, today.

    This event was held as part of the observance of Vigilance Awareness Week 2024 at Visakhapatnam Steel Plant and saw enthusiastic participation from over 300 school children from various institutions of Ukkunagaram along with their parents for about 4 kilometre stretch in the Ukkunagaram township.

    Addressing the jubilant gathering, Dr. S. Karuna Raju, IAS, Chief Vigilance Officer (CVO), RINL underscored the significance of vigilance in various aspects of life. Dr. S. Karuna Raju encouraged students to be vigilant in their learning, conduct & behavior, Relationships, Social interactions, Safety & Security, Health, Finance, environment and at public places.

    Dr. S Karuna Raju, IAS, CVO, RINL emphasized the importance of cultivating honesty and maintaining integrity to curb corruption. He emphasized that today’s students are the leaders of tomorrow, destined to shape fields such as science & technology, education, industries, public services, governance and politics. He encouraged students to develop the habits of honesty and integrity from an early age, explaining how these values are crucial in building a fair and just society.

    Dr. S Karuna Raju, IAS, CVO, RINL inspired all to use technology responsibly and to always act with ethical principles, reinforcing that a corruption-free society begins with individual commitment to truth and transparency and these values are foundational to building a strong and principled nation.

    The Walkathon event successfully highlighted the role of awareness and integrity, reinforcing the message of vigilance and ethical conduct among the younger generation and public.

    ******

    MG

     

    (Release ID: 2069244) Visitor Counter : 5

    MIL OSI Asia Pacific News

  • MIL-OSI Economics: A NEW SATELLITE AGREEMENT TO STRENGTHEN THE PAN-AFRICAN STRATEGIC PARTNERSHIP BETWEEN FRANCE AND MOROCCO

    Source: Thales Group

    Headline: A NEW SATELLITE AGREEMENT TO STRENGTHEN THE PAN-AFRICAN STRATEGIC PARTNERSHIP BETWEEN FRANCE AND MOROCCO

    • French President Emmanuel Macron set to meet with Moroccan King Mohammed VI on a state visit this week.
    • Morocco’s Panafsat and Thales Alenia Space sign memorandum of understanding to build a pan-African satellite telecommunications system.

    Rabat, October 29, 2024 – Moroccan company Panafsat and Thales Alenia Space, the joint venture between Thales (67%) and Leonardo (33%), today announced they had signed a memorandum of understanding (MoU) for the development of a Moroccan satellite communications system. The system will deliver very-high-throughput services (VHTS) to 26 African countries, 23 of them in French-speaking Africa, covering a combined population of around 550 million people over an area spanning 12 million square kilometers.

    The memorandum of understanding between the Moroccan operator Panafsat and Thales Alenia Space was signed today as part of the state visit of French President, Emmanuel Macron, to the Kingdom of Morocco,in the presence of Nadia Fettah Alaoui, Moroccan Minister of the Economy and Finance and Antoine Armand, French Minister of the Economy, Finance and Industry.

    Under the MoU, Thales Alenia Space will build a very-high-performance flexible satellite. Once in orbit, the satellite will deliver high-speed internet to accelerate the transformation of Africa’s digital landscape. This will be achieved by providing the connectivity required for high value-added services for the benefit of governments, businesses and individuals. It will also help bridge the digital divide in rural and isolated communities.

    Chairman and CEO of Panafsat Ahmed Toumi stated: “This project is the next key stage in the digital transformation process and the development of a digital economy in Morocco, and across Africa as a whole. It will change the lives of millions of people, eager to benefit from Internet access and all the essential services they need. We are delighted to be able to draw on the outstanding expertise and capabilities of a partner like Thales Alenia Space. We look forward to working together on this major project, which will bring significant benefits across the continent.”

    Thales Alenia Space CEO Hervé Derrey added: “It is a privilege for Thales Alenia Space to be chosen by Panafsat to deliver this new geostationary telecommunications satellite. The project will make a significant contribution to bridging the digital divide in rural areas, as well as boosting economic growth and strengthening digital sovereignty across the African continent. We are honored to embark on this long-term partnership with Africa’s foremost private operator, helping it to expand its capabilities and develop space services for the benefit of the entire continent.”

    The MoU is part of a roadmap developed by France and Morocco encompassing digitalization initiatives such as Digital Economy for Africa (DE4A) and Digital Morocco 2030, as well as the hosting of the FIFA World Cup 2030 in Morocco.

    About Panafsat

    Panafsat SA is a Moroccan private equity firm with Casablanca Finance City (CFC) status.

    It was set up by Ahmed Toumi, an elected board member of the ITU (International Telecommunication Union) Radio Regulation Board from 1998 to 2002. Ahmed Toumi was also Chairman and Director-General of ITSO-Intelsat (the International Telecommunications Satellite Organization) from 2001 to 2009. He was awarded the Order of the Throne Officer class. Panafsat is developing Morocco’s first geostationary satellite to provide Internet access for 26 African countries. The project will contribute to the digital transformation of Africa in line with regional and global objectives.

    Press contact

    Kaoutar HAKAM            Tel: +33 7 79 80 39 26               kaoutar.hakam@panafsat.ma

    ABOUT THALES ALENIA SPACE

    Drawing on over 40 years of experience and a unique combination of skills, expertise and cultures, Thales Alenia Space delivers cost-effective solutions for telecommunications, navigation, Earth observation, environmental management, exploration, science and orbital infrastructures. Governments and private industry alike count on Thales Alenia Space to design satellite-based systems that provide anytime, anywhere connections and positioning, monitor our planet, enhance management of its resources and explore our Solar System and beyond. Thales Alenia Space sees space as a new horizon, helping to build a better, more sustainable life on Earth. A joint venture between Thales (67%) and Leonardo (33%), Thales Alenia Space also teams up with Telespazio to form the parent companies’ Space Alliance, which offers a complete range of services. Thales Alenia Space posted consolidated revenues of approximately €2.2 billion in 2023 and has around 8,600 employees in 9 countries, with 16 sites in Europe and a plant in the US. www.thalesaleniaspace.com

    THALES ALENIA SPACE – PRESS CONTACTS

    Tarik Lahlou                    Tel: +33 (0)6 87 95 89 56           tarik.lahlou@thalesaleniaspace.com

    Catherine des Arcis       Tel: +33 (0)6 78 64 63 97           catherine.des-arcis@thalesaleniaspace.com

    Cinzia Marcanio             Tel.: +39 (0)6 415 126 85           cinzia.marcanio@thalesaleniaspace.com

    MIL OSI Economics

  • MIL-OSI United Nations: Experts of the Human Rights Committee Commend Ecuador’s National Councils for Equality, Ask about State of Emergency Restrictions and Military Management of Prisons

    Source: United Nations – Geneva

    The Human Rights Committee today concluded its consideration of the seventh periodic report of Ecuador on how it implements the provisions of the International Covenant on Civil and Political Rights, with Committee Experts commending the State’s national councils for equality, and raising issues concerning restrictions imposed under the state of emergency and the deployment of military personnel to manage State prisons. 

    A Committee Expert welcomed that the State party had established national councils for equality.  How had the initiatives of the National Council for Gender Equality contributed to promoting gender equality?

    Another Committee Expert cited reports that freedom of movement and assembly had been considerably curtailed under the state of emergency, and that vulnerable sectors of society had been disproportionately affected by restrictions.  How would the State party ensure that measures taken under the state of emergency were strictly proportionate, time-bound and necessary?

    Under the state of emergency, military personnel had been deployed to administer prisons, the Expert noted.  Was the State party considering gradually withdrawing the military from prisons?  There had been complaints of torture and abuse of authority, as well as murders and arbitrary detention by military personnel in prisons.  Had the State party investigated these and prosecuted any personnel?

    Juan Carlos Larrea, Attorney General of State of Ecuador and head of the delegation, said that the Office of the Attorney General had carried out constant training for members of the national police and armed forces on international human rights and humanitarian law, the use of force, and the rights of persons deprived of liberty. The delegation added that the State party was working to strengthen training for prison staff.  It planned to train almost 7,000 staff over a five-year period.

    The delegation said the National Council for Gender Equality had a mandate to mainstream and monitor public policies on gender equality and promote the rights of women and persons from the lesbian, gay, bisexual, transgender and intersex community.  Some of the goals of the national agenda on equality were to reduce maternal and child mortality and teenage pregnancy, and there had been progress in these areas.

    The delegation said a state of emergency had recently been implemented to confront spiralling acts of violence, terrorism, internal armed conflict, and the prison crisis.  All measures implemented under a state of emergency needed to be time bound and to conform with principles of necessity and proportionality, and all states of emergency were monitored by the Constitutional Court.

    Formerly, Ecuador’s prisons were in effect being run by organised gangs due to a lack of oversight, creating a crisis in the prison system, the delegation said.  The State party had implemented the “Phoenix Plan” to regain control and safety in all prisons.  The armed forces were ensuring physical security in only eight of the 35 adult detention centres in the State. 

    The delegation also said armed forces personnel had been involved in 72 cases of habeas corpus, with personnel cleared of wrongdoing in 68 cases and the remaining cases still being investigated.  A specialised prosecutor’s unit had been established to investigate cases of harm or death caused by the armed forces and the prison service.

    In concluding remarks, Mr. Larrea said Ecuador was fully committed to implementing international human rights law and promoting respect for human rights.  It was facing challenges in the field of human rights, including spiralling international organised crime, but remained committed to addressing these.  The delegation hoped that the Committee would provide concrete recommendations that addressed the complex challenges Ecuador was facing.

    Tania María Abdo Rocholl, Committee Chairperson, in concluding remarks, said the dialogue had addressed historic human rights violations, measures to combat terrorism, reproductive rights, the independence of the judiciary, and the situations of human rights defenders and indigenous peoples, among other topics.  The Committee was committed to its mandate of guaranteeing the highest level of implementation of the Covenant in Ecuador.

    The delegation of Ecuador was made up of representatives of the Ministry for Women and Human Rights; National Council for Gender Equality; National Service for the Comprehensive Care of Adults Deprived of Liberty and Adolescent Offenders; Ministry of Foreign Affairs and Human Mobility; Office of the Attorney General of the State; Ministry of National Defence; and the Permanent Mission of Ecuador to the United Nations Office at Geneva.

    The Human Rights Committee’s one hundred and forty-second session is being held from 14 October to 7 November 2024.  All the documents relating to the Committee’s work, including reports submitted by States parties, can be found on the session’s webpage.  Meeting summary releases can be found here.  The webcast of the Committee’s public meetings can be accessed via the UN Web TV webpage.

    The Committee will next meet in public at 10 a.m. on Monday, 4 November, to hear the presentation of the progress report of the Committee’s Special Rapporteur on Views.

    Report

    The Committee has before it the seventh periodic report of Ecuador (CCPR/C/ECU/7).

    Presentation of the Report

    JUAN CARLOS LARREA, Attorney General of State of Ecuador and head of the delegation, said Ecuador had demonstrated its commitment to the promotion and protection of human rights through the ratification of the 27 United Nations instruments on human rights; the open invitation to the Rapporteurs and Special Procedures of the United Nations and the Inter-American system; timely and continuous submission of periodic reports; and the establishment of the national mechanism for the implementation, follow-up and monitoring of Ecuador’s international human rights recommendations.

    Ecuador had implemented public policies to comply with the provisions of the Covenant.  Notable achievements over the reporting period included the creation of the Ministry of Women and Human Rights; the decriminalisation of abortion in cases of rape; the implementation of the second phase of the spotlight initiative for the eradication of gender-based violence; and actions taken to improve the situation of persons deprived of liberty. 

    The executive had trained 25,844 people on the right to life, freedom of expression and peaceful protest, due process, the right to liberty, free mobility, equality and non-discrimination.  The judiciary had held training events on human rights which benefited 69,624 officials, professional associations and universities.  Similarly, the Office of the Attorney General had carried out constant training for members of the national police and armed forces on international human rights and humanitarian law, the use of force, and the rights of persons deprived of liberty. 

    The organic law on communication created a mechanism to protect the life and integrity of journalists and to develop indicators on murder, kidnapping, forced disappearance, arbitrary detention and torture of journalists.  The State was also developing protocols for their protection and to ensure prevention. So far in 2024, 97 alerts of aggression against media workers had been received.  In response to these, the Communication Council had carried out 78 protective actions, in addition to security workshops in conjunction with the national police and armed forces. 

    The National Council for the Equality of Peoples and Nationalities had drawn up the agenda for the equal rights of indigenous nationalities and peoples, the Afro-Ecuadorian people and the Montubio people. Representatives of organizations and civil society were consulted in its development.  In 2023, the National Council held 14 territorial conferences with members of organizations of Afro-Ecuadorian communities to examine issues related to the Decade for People of African Descent at the national and international levels and move forward with proposals for its fulfilment, from which support for the declaration of a second Decade was concluded.

    ARIANNA TANCA MACCHIAVELLO, Minister for Women and Human Rights, said the Ministry was dedicated to preventing, addressing, repairing and eradicating violence against women, children and adolescents.  The Ministry had 45 comprehensive protection services established within the framework of legislation and the national plan to prevent and eradicate violence against women 2020-2030.  There were State-run centres providing free psychological care, legal advice and social work services to victims of violence against women, and the State had cooperation agreements with shelters and comprehensive care centres.

    The recent establishment of the technical standard to mainstream a gender approach in all public policies and actions reinforced the State’s efforts.  The National Council for Gender Equality had formulated the national agenda for gender equality 2021-2025.  Further, in January 2024, the organic law for equal pay between women and men was approved, and 18 September was declared “Equal Pay Day” to raise awareness in society about the gender pay gap.  In May 2024, a law on reparation for relatives of victims of femicide was approved, which guaranteed family members the right to comprehensive reparation, scholarships and financial aid for children who were orphaned, and to medical and psychiatric care and counselling. 

    Ecuador has prioritised the elimination of sexual abuse and violence against children and adolescents in schools.  Among the main measures adopted were the national plan on the creation of protective educational environments and the public policy for the eradication of sexual violence in education. 

    The State Attorney General’s Office had a policy promoting access to justice for the lesbian, gay, bisexual, transgender and intersex community, which established guidelines for the investigation of hate crimes and discrimination against this group.  In addition, the diversity action plan 2022-2025 was adopted, which established 148 actions and 151 indicators to improve living conditions and guarantee equal rights for this community in Ecuador.  In 2023, a measure was introduced for the identification and prosecution of people and entities who discriminated against others based on sexual orientation, gender identity or expression.  The Ministry of Public Health had prepared a manual of good practices in comprehensive health care for this community.  From 2019 to June 2024, more than 39,000 services were provided for people who self-identified as lesbian, gay, bisexual, transgender and intersex.

    The organic law on human mobility determined the procedures to be followed in the event of inadmissibility at borders, deportation and expulsion, taking into account international standards on non-refoulement.  The extraordinary regularisation process for Venezuelan migrants, which began on 1 August 2022 and was still in force, had provided more than 97,000 exceptional temporary residence visas, including 871 visas for unaccompanied or separated children. Ecuador had been awarded for its good practices regarding recognition of sexual diversity and gender identity within refugee status determination procedures.

    Ecuador was committed to the protection, respect and promotion of human rights, in particular within the framework of the obligations assumed under the Covenant.

    Questions by Committee Experts

    A Committee Expert welcomed measures adopted by Ecuador in recent years to tackle serious human rights issues in the country. What measures had been adopted by the State party to implement the Views of the Committee concerning the cases of Isaías Dassum v. Ecuador and Pérez Barriga et al. v. Ecuador.  Had the State party established a procedure for implementing the Committee’s Views?  Had courts other than the Constitutional Court expressly referred to the Covenant’s provisions?  Could the delegation provide updated figures on training for public officials on the Covenant?  What was the situation of the Ombudsperson’s Office?  Did it have sufficient resources to fulfil its mandate? 

    Vulnerable sectors of society had reportedly been disproportionately affected by restrictions imposed under the state of emergency.  What safeguards were in place in this regard?  Under the state of emergency, military personnel had been deployed to administer prisons.  Was the State party considering gradually withdrawing the military from prisons? There had been complaints of torture and abuse of authority, as well as murders and arbitrary detention, by military personnel in prisons.  Had the State party investigated these and prosecuted any personnel? 

    The Constitutional Court had declared the state of emergency as being unconstitutional in 2023.  Why had the executive continued to maintain it, contrary to the Court’s decision?  Was the current state of emergency being monitored by the Court?  There were reports that freedom of movement and assembly had been considerably curtailed under the state of emergency.  How would the State party ensure that measures taken under the state of emergency were strictly proportionate, time-bound and necessary?

    Another Committee Expert asked for information on cases contained within the Truth Commission’s final report on historic human rights violations that had not been concluded.  Reportedly, a large percentage of cases had not been concluded 14 years after the report was issued.  How many persons had been provided with reparations?

    What court cases had been ruled on regarding terrorism in the last three years?  How was the State party ensuring fair trial guarantees for persons accused of terrorism? Around 35,000 people had reportedly been arrested this year alone on charges of terrorism.

    A Committee Expert welcomed that the State party had established national councils for equality.  What impact had these councils had in promoting equality and preventing discrimination?  How had the initiatives of the National Council for Gender Equality contributed to promoting gender equality?  The State party had provided training for members of the judiciary on sexual orientation and gender identity.  Was this effective in combatting discrimination against lesbian, gay, bisexual, transgender and intersex persons?  What impact had measures to improve health care for lesbian, gay, bisexual, transgender and intersex persons had?  What measures were in place to protect and improve the rights of transgender and intersex persons, including children?

    The police had registered 15,000 complaints of violence against women in 2021.  Had inquiries into these cases contributed to combatting impunity and ensuring reparation for victims?  What progress had been achieved by the plan to bolster training regarding violence against women?  What would be done to speed up the legislative process for cases of violence? How would the State party ensure that women who were victims of violence had access to remedy and appropriate protection mechanisms, including psychosocial and rehabilitation services?

    Another Committee Expert asked about the State party’s position on the United Nations’ human rights protection system.  The Expert welcomed that reform of the Democracy Code in 2020 had introduced gender parity on election lists, and said that there had been positive progress in the implementation of legislation to tackle gender-based violence in the political sphere.  However, there were 23 cases of violence against women politicians between 2022 and 2023, including two femicides, one of a female mayor.  How was the State party working to combat such violence and promote women’s participation in politics, including the participation of minority women? 

    Women’s representation in political bodies continued to be limited, particularly for minority women.  What awareness raising campaigns were in place to address stereotypes concerning women’s role in society?  Could the delegation comment on the implementation of the law on equal opportunities and the “purple economy”?

    There were reports of violence against indigenous peoples by the armed forces in the northern border area; had these been investigated and had cases been prosecuted?  Would the State party provide material reparation to indigenous communities affected by violence and the actions of resource sector companies?

    One Committee Expert said there were concerns regarding gaps in the protection system for the children of victims of violence. What steps had been taken to protect vulnerable children and to guarantee a sustainable budget for support payments for victims, so that families of victims could benefit? 

    The Committee was concerned by the high number of girls being subjected to sexual abuse, rape and incest.  Violence against girls in schools was reportedly endemic and girls were discouraged from reporting sexual attacks.  What measures were in place to protect vulnerable girls against such attacks?  What sanctions were imposed for sexual offences and what reparations were provided to girl victims?  Were vulnerable girls’ families provided with legal assistance? 

    Ecuador had expanded access to abortion for victims of sexual assault in a new law.  Would the State party decriminalise abortions in the case of malformation of the foetus?  Had the State party organised education for women and girls regarding contraception and established family planning counsellors within health care facilities? Had the State party approved guidelines for therapeutic abortion care and taken action to inform society regarding the law on abortion and medical centres where abortions were available? How did the State party ensure that there were health care professionals who were able to provide safe abortions in all remote and rural areas?  The Committee noted a Constitutional Court ruling calling on the State party to not prosecute health care professionals who performed abortions.  Had this been implemented?  How was the State party protecting the confidentiality of women who sought abortions?

    Responses by the Delegation

    The delegation said the Truth Commission had the mandate to investigate serious human rights violations occurring between 1983 and 1998.  The Commission’s final report documented enforced disappearances and other violations occurring during that period.  The Ombudsman had been called on to implement reparations for the victims of these violations; more than 150,000 direct and indirect victims had benefited from reparations.  Two criminal cases addressing historic human rights violations had been prosecuted. 

    A law preventing sexual violence and harassment in education had been developed and a national plan for addressing such violence had been implemented.  After victims of violence and harassment were identified, they were referred to mental health services.  The State party promoted the best interests of the child and their right to be informed in all matters affecting them.  Eleven protocols had been issued addressing sexual crimes against minors.

    A law permitting abortion in cases of rape was implemented in 2022 and inter-institutional mechanisms were set up to ensure that the law was properly applied.  Victims of rape did not need to file a legal complaint to access abortions. The prosecution was obliged to provide victims of rape with information on accessing abortions, and all health care facilities were required to provide information immediately on access to abortion in cases of rape.  The State party provided free and confidential guidance on abortions, and health care providers were required to protect the confidentiality of persons who sought abortions.

    The National Council for Gender Equality had a mandate to mainstream and monitor public policies on gender equality and promote the rights of women and persons from the lesbian, gay, bisexual, transgender and intersex community.  The national agenda on equality addressed the barriers faced by various groups of minority women.  Some of the goals of the agenda were to reduce maternal and child mortality and teenage pregnancy, and there had been progress in these areas.  Guidelines had been developed to ensure that vulnerable women had access to credit lines and the digital economy.  The State party was also promoting rural women’s access to land titles.  The police had carried out capacity building programmes addressing gender stereotypes and promoting positive masculinity.

    Formerly, Ecuador’s prisons were in effect being run by organised gangs due to a lack of oversight, creating a crisis situation in the prison system.  The State party had implemented the “Phoenix Plan” to regain control and safety in all prisons and promote the rehabilitation of all those deprived of liberty.  It was working to improve prison infrastructure to address overcrowding and was currently building two new prisons. 

    Protocols were in place to ensure cooperation between the armed forces and the national police in the management of prisons.  The armed forces were ensuring physical security in only eight of the 35 adult detention centres in the State.  The State party was working to strengthen training for prison staff.  It planned to train almost 7,000 staff over a five-year period.  This year, the State party would almost entirely eliminate mixed gender detention to prevent gender-based violence in prisons.

    Ecuador was fully committed to cooperating with the United Nations human rights protection system and was grateful for the support and advice that it offered to the State.  The Constitution allowed for the direct and immediate application of international human rights instruments ratified by the State. Regarding the case of Isaías Dassum v. Ecuador, investigations had been carried out and resolved in favour of the individual involved and reparation had been provided, in compliance with the Committee’s recommendations.

    Ecuador’s President had the ability to impose a state of emergency in cases of violence, threats to the State, and natural disasters. All measures implemented under a state of emergency needed to be time bound and to conform with principles of necessity and proportionality, in line with the Covenant.  A state of emergency had recently been implemented to confront spiralling acts of violence, terrorism and internal armed conflict, and the prison crisis.  All states of emergency were monitored by the Constitutional Court, which had questioned the restriction of rights in certain contexts.  The State party’s duty was to ensure that its people were able to live in a safe society free of corruption.

    The national allowance for orphans whose mothers had been murdered was a monthly allowance indexed to the monthly basic income. So far, 486 allowances had been provided to children.

    An agreement had been reached to strengthen relations with indigenous peoples and to prevent violence against indigenous communities.  There was also a protocol that aimed to protect indigenous peoples in voluntary isolation.

    Follow-Up Questions by Committee Experts

    A Committee Expert said there appeared to be a large gap between the legal and institutional framework on human rights and the situation on the ground.  The rate of femicide was on the rise and women were increasingly becoming victims of enforced disappearance, leading to an increase in orphaned children.  Had drug trafficking groups become so strong that authorities could not control them?  Why was the State party not sufficiently reacting to the prevailing environment of impunity?  What measures were in place to protect vulnerable groups, including children?

    Another Committee Expert said that the Prosecution Service had launched over 200 investigations into torture and abuse of authority by the police force.  Had any rulings been issued for these cases?

    One Committee Expert asked about the role of victims of past human rights violations in creating the Museum of Memory. Why had their proposals regarding the location of the Museum not been taken on board?  Had the prison population increased or decreased as a result of the security measures being implemented by the State party?  Were the prisons in which the armed forces were present the largest and most modern?  Were there plans to reduce the number of prisons administered by the armed forces?  The Expert commended the State party’s significant efforts to train prison guards. What was the current ratio of guards to prisoners?

    A Committee Expert said the allowance for children whose mothers were victims of femicide was a good measure, but all orphaned children needed to receive it.  What were the prospects for decriminalising abortions in cases other than rape or where the mother’s life was at risk?  Did the State party support access to contraception for low-income families?

    Another Committee Expert asked whether allowances given to children whose mothers were murdered were the same regardless of the number of children in the family.

    Responses by the Delegation

    The delegation said the Government would implement the single register on violence by the start of next year.  It had been providing training to public officials on the handling of sensitive information within this register.  The register would allow the State party to gain insights into patterns of violence in different areas of the country, as part of its efforts to eradicate gender-based violence.

    There was a five-year training plan for prison officials and 60 million United States dollars had been invested in improving the prison system this year.  Improving the national rehabilitation system was a priority for the Government.

    Questions by Committee Experts

    A Committee Expert asked about measures to prevent torture and ill treatment by the police against detained persons.  How did the State party ensure transparency in investigations of complaints against the police related to torture?  What redress was provided to victims of torture? What measures were being considered to strengthen human rights training for the police?

    The Transitional Council for Citizen Participation and Oversight was endowed with extraordinary powers allowing for the dismissal and appointment of judges and magistrates at the discretion of the executive branch, violating principles of judicial independence.  It appointed the Attorney General, judges of the National Court of Justice, and 137 other oversight authorities, and had reportedly removed judges and judicial officials who did not align with the political interests of the Presidency.  What mechanisms were in place to prevent conflicts of interest and ensure that the Council complied with international standards on judicial independence?  How was transparency and the participation of citizens ensured in the Council’s evaluations of public authorities?  When did the mandates of the Attorney General and the members of the Council expire?  Why did the Council still have “transitional” status?

    What mechanisms were in place to ensure that migrants at the northern border had access to basic services such as health, education and employment?  Were there programmes to protect migrant women and children from exploitation and abuse? How was discrimination against migrants addressed in regularisation and asylum processing?  Was the State party monitoring and evaluating asylum policies on the northern border?

    The Ecuadorian Government had reportedly failed to implement adequate protection measures for human rights defenders, allowing threats and attacks against these people to go unpunished and exposing them to the constant risk of violence and intimidation.  Had the State party strengthened the legal framework for protecting human rights defenders?  Were human rights defenders involved in developing policies that affected their work? What protection mechanisms were in place for at-risk persons?  Investigative journalists Anderson Boscán and Mónica Velásquez faced threats and were forced into exile in Canada after making complaints about Attorney General Diana Salazar’s alleged connections to organised crime networks.  Why were these persons’ security being jeopardised?

    One Committee Expert asked about the entity that carried out investigations into the excessive use of force.  How many officials had been prosecuted for the excessive use of force?  A 2024 decree called on the armed forces to participate in controlling internal order. Had the State party held a referendum on this decree, and did it comply with the Covenant?

    How did Ecuador guarantee the principle of non-refoulement?  What measures were in place to safeguard the physical security of asylum seekers and refugees?  Restrictions on the freedom of movement had limited migrants’ ability to find jobs. Curfews had affected migrants in street situations, who did not have a place to stay.  Had legal aid or counsel been provided by the State to defend asylum seekers’ rights in regularisation processes?  How was the State party ensuring access to justice for migrants who were victims of extortion?

    Indigenous peoples had been adversely affected by mining projects, including illegal mining linked to organised crime.  What consultation processes had been held regarding these projects?  The State party had adopted decrees but had yet to adopt a law on prior consultation and free, informed and prior consent regarding mining and resource projects. Would the State party speed up the adoption of such a law?  Oil spills had affected the environment and the health of indigenous peoples.  What preventive measures had been taken regarding oil spills and what reparations had been provided to affected persons?

    A Committee Expert said the Committee was concerned about conditions in places of detention and overcrowding, a serious and persistent problem in prisons.  Detainees lacked access to food, water and health services, and overcrowding also increased tensions between inmates and made the management of prisons difficult. Since January 2024, the overall prison capacity had increased by 7.8 per cent, but there were still 18 prisons with critical overcrowding at over 120 per cent capacity.  What measures were in place to address the issue?  Had the State party considered dismantling mega prisons?

    The Committee noted significant efforts by the State party to address the issue of human trafficking through training of judicial actors.  What were the prospects of establishing a specialised office addressing trafficking within the prosecution?  Had compensation been provided to victims of trafficking?  How were victims protected from criminal liability?  How did the State party promote the social inclusion of victims, protect them from revictimisation, and support their access to the labour market?

    Another Committee Expert said there had been more than 600 deaths of detainees between 2018 and 2023.  In March 2024, a violent riot in a prison had led to the death of 12 detainees, while another riot in July led to 18 deaths.  Two prison wardens had recently been murdered. Organised crime had reportedly infiltrated prisons, inciting these events.  What measures were in place to regain control of the prison system and promote the basic rights of prisoners?  How many deaths had occurred in prisons this year, and were there any deaths resulting from torture or ill treatment?  Would the State party grant access to prisons for the national preventive mechanism?

    The Committee was concerned about the reported penetration of organised crime into the judiciary.  Members of the judiciary were allegedly paid bribes to give shortened prison sentences to members of organised crime groups.  What investigations had been carried out into such allegations?  How did the State party ensure the integrity of investigations into corruption?  What was the disciplinary structure for judges and how was their independence guaranteed?

    In 2018, three journalists were kidnapped and murdered by organised crime and four journalists were murdered in 2022.  What investigations had been carried out into these events?  The judicial system was reportedly used as a tool for censorship against journalists. How did the State party ensure that journalists could carry out their work without interference?

    One Committee Expert said the Communication Council had been involved in promoting diversity in the media and in organising training on media workers’ rights.  What results had been obtained by training programmes?  Between July and December 2021, there were 62 reports of harassment against journalists.  What measures were in place to ensure that threats against journalists were properly investigated and punished?  During 2022 demonstrations, at least nine deaths were recorded and close to 200 people were arrested.  How did the State party guarantee the right to peaceful assembly and ensure justice for victims of excessive force by State officials?

    Was the law issued in 2022 on the use of force and firearms by the police in line with the Covenant?  Was civil society involved in the drafting of the law?  How was the law being implemented?  Did the State party provide training programmes on the law to police?

    How had the State party guaranteed access to justice for indigenous peoples in indigenous languages?  What obstacles were there in providing legal aid to indigenous peoples?  What measures were in place to strengthen the indigenous legal system and to ensure coordination between indigenous and regular legal systems?

    In some regions, authorities did not recognise the legal status of indigenous peoples.  Farmers who were defending their lands were reportedly perceived as criminals and harassed by authorities.  How was the State party preventing such harassment?

    Responses by the Delegation

    The delegation said training had been provided for around 500 prosecution staff and over 2,000 civil servants on investigating violent deaths of women and girls since 2022.  This year alone, over 500 members of the armed forces and other civil servants had participated in the prosecution office’s training on international human rights law. 

    The armed forces were ensuring internal security in the context of the high level of armed conflict occurring in the State, caused by organised gangs.  The activities of the armed forces strictly complied with human rights standards, regulations on the use of force and firearms, and principles of necessity and proportionality.  The State party was constantly updating provisions on the use of force in line with international standards.  During the first six months of this year, the murder rate had fallen significantly and criminal structures had been dismantled.

    The armed forces’ activities had helped to reduce criminal activities within the prison system.  The armed forces allowed oversight visits to prisons by Government bodies.  Members of the armed forces were trained in human rights, the use of force, and the protection of vulnerable persons.  Accusations of human rights violations by members of the armed forces were investigated in cooperation with public bodies.  Armed forces personnel had been involved in 72 cases of habeas corpus, with personnel cleared of wrongdoing in 68 cases and the remaining cases still being investigated.  A specialised prosecutor’s unit had been established to investigate cases of harm or death caused by the armed forces and the prison service.

    The State party was strengthening the national framework for the prevention of terrorism.  It was receiving international support to bring its legislation on terrorism in line with international standards.

    Ecuador ensured full reparation for direct and indirect victims of homicide, including through the law on support for family members of victims of femicide.  The public policy on reparation was being updated to strengthen support for victims’ relatives through consultations with civil society.  Support payments for orphaned children whose parents were murdered were increased progressively depending on the number of children in the family.

    State legislation protected the activities of human rights defenders.  An inter-institutional board was developing a comprehensive policy on the protection of human rights defenders and carrying out an analysis of threats faced by human rights defenders.  The State provided protection to victimised human rights defenders involved in court proceedings through the witness protection programme.  Regional councils of human rights defenders had been established.

    The Government had delineated certain areas as “protected land” where mining activities could not be carried out.  It had provided training on promoting the human rights of indigenous peoples and tackling their exploitation.  Over 3,000 interventions related to indigenous peoples had been carried out by the Government.  The State party worked closely with local autonomous governments to ensure the incorporation of indigenous knowledge into policies and activities to address climate change.

    Before implementing measures related to non-admission and deportation, investigations needed to be carried out to assess whether the individual concerned needed international protection.  Asylum seekers could receive free legal aid and the support of translation services if required.  An online platform to support asylum requests had been established; it had received more than 56,000 such requests.  Over 96,000 Venezuelan citizens had been granted temporary residency through a special procedure implemented in 2022.  Emergency care was being provided for the large number of migrants on the northern border in collaboration with international organizations and private sector bodies, to ensure that these migrants and asylum seekers received the highest standard of care.

    The State party had been procuring building materials and conducting repairs to improve prison infrastructure and the living conditions of detainees.  Accommodation in two prisons had recently been increased by 1,700 places.  The State had authorised the construction within 300 days of two new prisons to house a maximum of 800 detainees.  These would greatly reduce the rate of overcrowding. The Government was increasing human resources for administering these prisons.  Around 600 prisoners who had been detained for over five years and were not accused of violent crimes would soon be pardoned to further reduce overcrowding.

    The National Red Cross Committee had been training medical staff to improve health care in prisons.  A classification plan was in place to revise the classification of detainees to reduce the grouping of members of organised crime in prisons. Female detainees had been relocated to exclusively female prisons.  Over the next five years, the State party planned to recruit 700 new prison guards. A protocol on the handling of complaints within the prison system had been developed.

    Although a law on free, prior and informed consent had yet to be implemented, the Constitutional Court had established standards relating to this consent that needed to be respected by administrative authorities.  Bills had been developed to enact such a law that were currently before Parliament. The State party was undertaking environmental consultations that were in line with international standards in relation to upcoming mining projects.  It was also working to respect the life and integrity of indigenous peoples and preventing them from being harmed by the actions of third parties.  The Government had been successful in reducing conflict over indigenous territory and was fostering a culture of peace.  A health cordon had been established to improve the health conditions of people living in voluntary isolation.

    State legislation ensured respect for judicial independence.  No Government entity could interfere with the activities of the judiciary.  A roadmap had been developed to promote judicial independence through strict internal oversight of appointment, promotion and evaluation of members of the judiciary.  The Council of the Judiciary had implemented measures to ensure the safety of judicial operators.  The transitionary period for the Council for Citizen Participation and Social Control had concluded and its regular members were being appointed.

    There was a protection and early warning system for media professionals who were facing aggression.  The Government was strengthening its capacity to react to attacks against media professionals and to prevent such attacks.  Civil society organizations were involved in providing protection measures and improving the working environment for media professionals. 

    Follow-Up Questions by Committee Experts

    A Committee Expert asked why the State party allowed civilians to carry firearms in violent areas in the country.  Had any initiatives been adopted to regularise migrants who came into the country after 2022?

    Another Committee Expert said judges and prosecutors had been killed and the rule of law was in danger in the country.  Some judges had been murdered outside of the premises of the judiciary.  There needed to be effective protective actions to ensure the independence of the judiciary and the rule of law.  What transparency measures would be implemented to increase public trust in the judiciary?  It was positive that the State party had begun a reform of legislation on terrorism in cooperation with international bodies.  Would the bill of law being developed provide procedural guarantees in terrorism cases in line with the Covenant?

    One Committee Expert said that, since the deployment of armed forces across the territory, femicides, the enforced disappearance of women, and the violation of indigenous peoples’ rights had continued with impunity for offenders.  The State party had not ensured the protection of indigenous human rights defenders, whose rights were violated by the activities of mining companies. There were environmental issues threatening the lives of indigenous peoples that had not been investigated and several indigenous peoples were awaiting compensation.  Environmental rights defenders were continually harassed by authorities.  Could the delegation provide information on the killing of an indigenous chief in February 2024 who was protesting oil prospecting in his region?

    Another Committee Expert said poverty and insecurity were serious issues in Ecuador that were disproportionately affecting vulnerable groups.  How would the State party address these issues and protect the rights of workers?

    Closing Remarks

    JUAN CARLOS LARREA, Attorney General of State of Ecuador and head of the delegation, said Ecuador was fully committed to implementing international human rights law and promoting respect for human rights.  It was the first country in Latin America to receive a visit from the current High Commissioner for Human Rights, Volker Türk.  It was working to implement all recommendations issued to it by the United Nations human rights system.

    Ecuador was facing challenges in the field of human rights, including spiralling international organised crime and the current energy crisis, but remained committed to addressing these, and to strengthening efforts to promote the human rights of all people on its territory. It called on the international community to increase technical support for the promotion and protection of human rights in Ecuador.  The delegation hoped that the Committee would provide concrete recommendations that addressed the complex challenges that Ecuador was facing.

    TANIA MARÍA ABDO ROCHOLL, Committee Chairperson, thanked all those who had contributed to the dialogue.  The dialogue had addressed Constitutional and legal frameworks related to the Covenant, historic human rights violations, measures to combat terrorism, reproductive rights, the independence of the judiciary, detention conditions, the right to life, freedom of expression and association, trafficking in persons, and the situations of human rights defenders and indigenous peoples, among other topics.  The Committee was committed to its mandate of guaranteeing the highest level of implementation of the Covenant in Ecuador.

     

    Produced by the United Nations Information Service in Geneva for use of the media; 
    not an official record. English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

     

    CCPR24.023E

    MIL OSI United Nations News

  • MIL-OSI USA: FDA Roundup: October 29, 2024

    Source: US Food and Drug Administration

    For Immediate Release:

    Today, the U.S. Food and Drug Administration is providing an at-a-glance summary of news from around the agency: 

    • Today, the FDA responded to objections on the agency’s final rule that removed the authorized food contact uses of most phthalates because industry abandoned these uses. The FDA evaluated the objections and concluded that they did not provide a basis for modifying the final rule. However, the FDA is working on an updated safety assessment of the remaining authorized uses, including considering information we have received through our request for information, and phthalates are included on the list of select chemicals under FDA review.
    • On Monday, the FDA announced a hybrid meeting, In Vitro Diagnostics (IVD) Roundtable, that will be held on Nov. 12, 2024, at 10 a.m. ET. The meeting will provide a forum to facilitate communication between the FDA and IVD industry. Participants can attend in-person or virtually. Space is limited for in-person attendance. There is no fee to attend, and registration is required. To attend in person, register by Oct. 30, 2024. To attend virtually, register by Nov. 12, 2024.
    • On Monday, the FDA shared information about medical device cybersecurity. Like other electronics, medical devices can be vulnerable to security breaches, potentially impacting the safety and effectiveness of the device. Informed by patient voices and collaborations with industry, government agencies, and health care delivery organizations, the FDA will continue to drive and refine medical device cybersecurity policy. Before Cybersecurity Awareness Month ends, check out these recent publications that may be generally informative to help keep medical devices operating safely.
    • On Friday, the FDA issued a safety communication to alert consumers, health care providers, and health care facilities not to use BioZorb Markers and BioZorb LP Markers by Hologic Inc. On Oct. 25, 2024, Hologic announced a voluntary recall for removal of all lots of unused BioZorb Markers. The recall is due to reports of serious adverse events occurring in patients who had the devices implanted in breast tissue. 
    • On Friday, the FDA granted marketing authorization of Distalmotion, SA’s Dexter L6 System, an electromechanical surgical system intended to repair inguinal hernias through minimally invasive procedures using high-precision surgical endoscopic instruments. The Dexter L6 System includes a console surgeons use to control movements of the different parts of the system, separate carts that can be positioned next to the operating room table, and arms that get attached to the carts and that can hold and manipulate different endoscopic instruments based on motions captured on the surgeon-controlled console. Although the Dexter L6 Surgical System operates using similar principles as other robotically assisted surgery device systems, it allows for the surgeon and the user interface to be in the sterile field, unlike other authorized devices. The Dexter L6 System is intended for use by trained laparoscopic surgeons on patients 22 years of age or older. This authorization reinforces the FDA’s commitment to providing physicians and patients with minimally invasive surgery options to treat relatively common conditions, such as inguinal hernias.
    • On Friday, three individuals in London were sentenced for their role in the international importation and distribution of unapproved drugs. The operation seized over £1M ($1.3M) and 1 million illicit pills. This result is the culmination of numerous law enforcement agencies, including the FDA Office of Criminal Investigations (FDA-OCI), working together from across the world for more than three years. The investigation began in October 2020 when U.S. Customs and Border Protection seized numerous shipments sent from the U.K. found to contain illicit drugs. Information sharing between FDA-OCI and the City of London Police led to the successful execution of warrants in the U.S., where illicit unapproved drugs were found.

    Related Information

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    The FDA, an agency within the U.S. Department of Health and Human Services, protects the public health by assuring the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices. The agency also is responsible for the safety and security of our nation’s food supply, cosmetics, dietary supplements, radiation-emitting electronic products, and for regulating tobacco products.


    Inquiries

    Consumer:
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  • MIL-OSI USA: Governor Newsom announces local accountability, transparency rules for new round of homeless funding

    Source: US State of California 2

    Oct 29, 2024

    What you need to know: Governor Newsom today announced 37 new grant awards totaling more than $827 million to help more than 100 local communities and organizations create long-term solutions to address homelessness. The grant agreements include strong accountability and transparency measures and clear expectations to ensure that local strategies to address homelessness are measurable and effective. 

    LOS ANGELES — Expanding California’s unprecedented support for local efforts to create long-term solutions to address homelessness, Governor Newsom today announced that 37 regional grantees — representing 100 local communities and organizations statewide — will receive more than $827 million in new state investments to create new housing, shelter, and support for those experiencing homelessness. The funding comes with strong accountability measures and reporting requirements to ensure funding is used effectively and outcomes can be tracked and measured.

    “We’ve given our local partners the tools and resources they need — it’s time to end this crisis now. These new funds represent the hard work, accountability, and strategic planning needed to address homelessness with real, long-lasting results.”

    Governor Gavin Newsom

    Investing in impactful solutions to address homelessness 

    California has made unprecedented investments to address the housing and homelessness crises, with $40 billion invested to help communities create more housing and $27 billion provided to communities to help prevent and end homelessness. Today’s new grant awards are part of the state’s Homeless Housing, Assistance and Prevention (HHAP) grant program, which provides flexible grant funding to help communities support people experiencing homelessness by creating permanent housing, rental and move-in assistance, case management services, and rental subsidies, among other eligible uses. 

    The Governor announced the awards in Downtown Los Angeles, where he was joined by city and county officials. 

    “The only way we can be successful in solving homelessness is by locking arms and implementing a comprehensive approach that shows results,” said Los Angeles Mayor Karen Bass. “The Homelessness Housing, Assistance and Prevention program is critical to our success here in Los Angeles, and has helped reduce homelessness for the first time in years. I want to thank Governor Newsom and our state elected partners for working together to bring people off of the streets and into housing as urgently as this crisis requires.”

    Greater accountability 

    As a condition of receiving the funding, the awardees must agree to increased accountability, transparency, and compliance measures. These new measures will help enhance the ability for these state investments to drive real, measurable results and will help improve the tracking of data and outcomes. This ensures that grant recipients remain accountable and protects state funding.

    Regional approach

    Grantees were required to work regionally on these applications. Cities, counties, and Continuums of Care were required to explicitly commit to coordinating with one another, clearly stating who was responsible for which parts of their joint regional homeless efforts, as a condition of receiving funding. This will drive coordination and make sure homelessness is solved regionally — not treated as a problem that stops at the city limits. 

    Greater transparency

    Grantees will report monthly fiscal progress that will be available live on the California Housing and Community Development’s (HCD) website through the HHAP fiscal dashboard. Grantees will also upload HHAP program outcomes to the California Homeless Data Integration System on a quarterly basis.

    More support 

    This round of HHAP funding embraces an inclusive process — helping California regions to assess and build on their existing capacity to address their unique homelessness challenges, transition homeless individuals and families into affordable permanent housing, and support those individuals and families in maintaining stable permanent housing. The funding requires grantees to commit to addressing racial inequities in homelessness, prioritize permanent housing rather than temporary shelters, and include people with lived experience of homelessness in program design.

    “The HHAP Round 5 grants demonstrate how the state can support and amplify regional strategies and coordination to help our most vulnerable residents move into safe and stable housing,” said Business, Consumer Services and Housing Secretary Tomiquia Moss. “The accountability in this round of funding ensures we are empowering local partners to design local solutions to prevent and end homelessness, and produce measurable results. By working together to address the unique needs in their communities we get that much closer to reducing unsheltered homelessness across the State.”

    HHAP funds build on ongoing state investments and are intended to be paired strategically with other state, local, and federal funds, including other HCD programs like Homekey+

    Care, compassion, collaboration 

    Today’s announcement follows the Governor’s executive order urging local governments to adopt policies and plans consistent with the California Department of Transportation’s (Caltrans) existing encampment policy.

    Prioritizing encampments that pose a threat to the life, health, and safety of the community, Caltrans provides advance notice of clearance and works with local service providers to support those experiencing homelessness at the encampment, and stores personal property collected at the site for at least 60 days.  Earlier this month, Governor Newsom also provided local communities with $131 million, as part of the state’s $1 billion of Encampment Resolution Funds to address homelessness, to help local governments address homeless encampments and provide shelter, care, and support.

    As required by the Governor’s executive order, the California Interagency Council on Homelessness today is releasing new guidance to assist local communities in addressing encampments. The guidance provides local communities with best practices for resolving encampments and connecting individuals in encampments with services and housing.

    California is also transforming behavioral health care by improving access, accountability, transparency, and capacity. This includes through the Community Assistance, Recovery, and Empowerment (CARE) Court, a first-in-the-nation approach to create accountability for connecting individuals with untreated psychosis to the treatment and housing they need. It also includes Proposition 1, which is expanding the behavioral health continuum using existing dollars and providing care to individuals experiencing mental health conditions and substance use disorders — with a particular focus on people who are the most seriously ill, vulnerable, and at risk of homelessness or homeless. 

    HHAP Funding provided by region

    Local communities and organizations are required to coordinate and apply together through Regionally Coordinated Homelessness Action Plans. The 37 California regions awarded HHAP funds today have approved plans that demonstrated a commitment to the priorities of creating permanent housing solutions and sustaining existing interim housing. 

    For a list of regions receiving the award, view here.

    Recent news

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  • MIL-OSI Security: Pembroke Township Man Sentenced to 6 ½ Years in Prison for Filing False Tax Returns

    Source: Office of United States Attorneys

    URBANA, Ill. – Larry Dean Gibbs, 63, of Pembroke Township in Kankakee County, Illinois, was sentenced on October 28, 2024, to 6 ½ years of imprisonment for filing false tax returns.

    Gibbs was convicted of filing three false federal tax returns following a jury trial held at the U.S. Courthouse in Urbana in March of this year. During the trial, the government presented evidence to establish that, in January 2017, Gibbs filed three federal income tax returns for the tax years 2012, 2013, and 2014, each falsely claiming that he had earned $10 million in annual income from the “Larry Dean Gibbs Estate.” Gibbs further falsely claimed that the IRS withheld over $3 million per year from his earnings each year and that he was entitled to refunds totaling over $6.8 million. In contemporaneous filings, Gibbs claimed that he had changed his name to Mulumbua Humraukn El Taikem Bey and that he was the Ambassador for the Al Moroccan Empire National Republic, which is not officially recognized by the U.S. State Department. At the time Gibbs filed the three false tax returns, he had just been released from federal prison for a prior conviction for filing a false federal tax return in 2005, when he had obtained a $66,282 refund to which he was not entitled.

    At the sentencing hearing, U.S. District Judge Colin S. Bruce found that Gibbs had obstructed justice during the trial by falsely claiming that he was a member of the Maipuri Arauan Nation and that a treaty between that tribe and the United States required tribal members to be seated on his jury. Judge Bruce found that Gibbs “continues to file nonsensical sovereign citizen documents with the court, despite the court’s clear warnings against such frivolous, docket-clogging activity.”

    The statutory penalties for filing a false tax return are up to three years of imprisonment and up to a $100,000 fine on each of the three counts of conviction. In addition to imprisonment, Judge Bruce sentenced Gibbs to serve one year of supervised release following his release from the federal Bureau of Prisons.

    Judge Bruce directed Gibbs to report to the Bureau of Prisons to begin serving his sentence of imprisonment on January 7, 2025. In the meantime, Gibbs remains released on conditions of bond, which include home detention.

    “Fraud upon the government ultimately harms honest taxpayers,” said U.S. Attorney Gregory K. Harris. “Our office will vigorously prosecute these important cases, including those involving repeat offenders such as the defendant. We are grateful to our federal law enforcement partners for their dedicated work on this case.”

    “Tax fraud undermines the trust between taxpayers and their government,” said Ramsey E. Covington, Acting Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “By filing false tax returns, Larry Gibbs not only cheated the system but also imposed an unjust burden on honest taxpayers. His frivolous court filings further clogged our legal system, wasting valuable resources that could be better used to serve the community. IRS Criminal Investigation and its fellow law enforcement partners remain committed to holding accountable those who seek to exploit our tax laws for personal gain.”

    “The FBI is proud to work with its law enforcement and prosecutorial partners to ensure that taxpayer dollars aren’t used to line the pockets of repeat offenders,” said Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. “Our tax system is predicated on the principal that every American pays their fair share, and this sentencing reflects the government’s commitment to ensuring equity for hardworking Americans.”

    The IRS Criminal Investigation, Chicago Field Office, and FBI, Chicago Field Office, investigated the case. Supervisory Assistant United States Attorney Eugene L. Miller represented the government in the prosecution.

    MIL Security OSI

  • MIL-OSI Security: Paving Contractor Pleads Guilty to Tax Evasion

    Source: Office of United States Attorneys

    BOSTON – The owner of a paving company doing business north of Boston pleaded guilty yesterday to a multi-year income tax evasion scheme.

    Richard Cooper, 71, of Billerica, pleaded guilty to four counts of tax evasion. U.S. District Court Judge Denise J. Casper scheduled Cooper’s sentencing for Jan. 30, 2024. Cooper was charged in September 2024.

    From 2017 to 2020, in addition to depositing customer payments to his company, Rick Cooper Paving, Cooper also cashed over $4.3 million in customer checks. When Cooper had his taxes prepared, he did not tell his preparer about the checks he was cashing, resulting in his tax returns underreporting the gross receipts of the business by millions. As a result, Cooper kept over $1 million that he should have paid in federal and state income taxes.

    Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit prosecuted the case.

    MIL Security OSI

  • MIL-OSI Security: Federal Jury Finds Man Guilty of Defrauding UConn

    Source: Office of United States Attorneys

    Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found DICKSON ALORWORNU, also known as “Dixon Al,” 35, a citizen of Ghana residing in Greenwich, guilty of fraud offenses.  The trial before U.S. District Judge Sarala V. Nagala began on October 23 and the jury returned guilty verdicts on both counts of an indictment this afternoon.

    According to the evidence presented during the trial, in December 2017, Alorwornu used other individuals’ names, fake Social Security numbers, and email addresses to submit two non-degree student applications to the University of Connecticut (“UConn”).  He then used American Express card information that had been stolen from three victims to fund the two student accounts with a total of more than $62,000 in fraudulently obtained funds.  In early 2018, Alorwornu withdrew from the courses and requested that UConn refund the money he had deposited.  UConn subsequently transferred tens of thousands of dollars to bank accounts Alorwornu controlled.  The investigation revealed that the email accounts that Alorwornu used to defraud UConn were also used to commit fraud at other universities.

    The jury found Alorwornu guilty of two counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count.  Judge Nagala scheduled sentencing for February 19.

    Alorwornu was arrested on February 1, 2023.  He is released on a $50,000 bond pending sentencing.

    This investigation has been conducted by the Federal Bureau of Investigation and the UConn Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Edward Chang and Elena Coronado.

    MIL Security OSI

  • MIL-OSI Security: Leader And Three Members of Poly-Drug Trafficking Organization Are Sentenced To Prison

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

    CHARLOTTE, N.C. – The leader and three members of a drug trafficking organization (DTO) were handed down sentences ranging from 70 months to 27 years in prison today for the bulk distribution of methamphetamine, fentanyl, and other narcotics, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

    Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.

    Led by the FBI, ATF, and CMPD, this Organized Crime Drug Enforcement Task Force (OCDETF) operation successfully dismantled a poly-drug network that trafficked large quantities of methamphetamine, fentanyl, heroin, and cocaine in Mecklenburg County.

    The investigation identified nine members of the DTO who were prosecuted federally in connection with this case. The four sentenced today are:

    George Irving Rivens, 38, of Charlotte, and leader of the DTO, was sentenced to 27 years in prison followed by five years of supervised release. He pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, methamphetamine, heroin, and fentanyl.

    Paul Alexander Kaber, 29, of Charlotte, was sentenced to 172 months in prison followed by five years of supervised release. He pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, methamphetamine, and heroin.

    Christopher Ahmad Townsend, 32, of Charlotte, was sentenced to 130 months in prison followed by five years of supervised release. He pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, methamphetamine, and fentanyl.

    Joseph Earl Connor, 34, of Charlotte, was sentenced to 70 months in prison followed by five years of supervised release. He pleaded guilty to distribution of fentanyl.

    The five DTO members previously sentenced and the charges they pleaded guilty to are as follows: 

    Daneon Hansen, 47, of Charlotte, was sentenced to 10 years in prison followed by five years of supervised release. He pleaded guilty to possession with intent to distribute methamphetamine and heroin.

    Deion Rashaad Thompson, 30, of Charlotte, was sentenced to 10 years in prison followed by five years of supervised release. He pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, methamphetamine, heroin, and fentanyl; distribution of methamphetamine; and two counts of distribution of fentanyl.

    Joseph Stewart, 36, of Charlotte, was sentenced to 15 months in prison followed by three years of supervised release. He pleaded guilty to distribution of fentanyl.

    Naliyah Tekayla Herd, 26, of Charlotte, was sentenced to a year and a day in prison followed by three years of supervised release. She pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, methamphetamine, heroin, and fentanyl.

    Alexis Taylor, 27, of Mount Holly, N.C., was sentenced to four months in prison followed by three years of supervised release. She pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, methamphetamine, heroin, and fentanyl.

    According to court documents and court proceedings, from at least January 1, 2021, to June 3, 2022, Rivens supplied the members of the DTO with methamphetamine, fentanyl, heroin, and cocaine for local distribution in Charlotte. During the investigation, law enforcement identified a residence in Charlotte the DTO was using as a wholesale stash house to store and traffic drugs. On June 3, 2022, investigators executed a search warrant at the stash house, seizing 16.5 kilograms of methamphetamine, more than 5.7 kilograms of fentanyl, over 2.6 kilograms of cocaine, over a kilogram of heroin, 37 kilograms of marijuana, and more than half a kilogram of cocaine base. In addition, 10 firearms and nearly $30,000 in cash drug proceeds were seized. Court record show that, when law enforcement conducted the search warrant, it appeared that some of the occupants of the stash house had been attempting to destroy evidence by flushing methamphetamine down the toilet.

    On the same day, investigators also executed a search warrant at another location, seizing 3.6 kilograms of methamphetamine, 1.1 kilograms of heroin, three firearms, and $60,000 in cash. From another residence used by Rivens, law enforcement seized $30,303 in cash and two more firearms. In total, over the course of the investigation, law enforcement seized over a quarter million dollars in drug cash proceeds and other assets, including over $100,000 worth of jewelry, a 2020 Dodge Charger Scat Pack, and a residence used by the DTO to facilitate drug trafficking. 

    In making today’s announcement, U.S. Attorney King commended the FBI, ATF, and CMPD for leading this OCDETF operation.

    OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

    Assistant U.S. Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte prosecuted the case. 

     

    MIL Security OSI

  • MIL-OSI Submissions: Crypto – Bitcoin to hit fresh all-time highs on Trump victory, deVere CEO predicts

    Source: deVere Group


    October 29 2024 – Bitcoin is likely to reach fresh all-time highs should Donald Trump win the US presidential election, predicts the CEO of one of the world’s largest independent financial advisory and asset management organizations.


    The bullish prediction from deVere Group’s Nigel Green comes a week ahead of the down-to-the-wire race for the White House between former president Trump and Vice President Kamala Harris.


    Bitcoin is currently around $71,000 (on Tuesday morning, GMT). The highest price paid for Bitcoin (BTC) is $73,737 which was recorded on March 14 2024.


    The deVere CEO comments: “A Trump victory could be the catalyst that pushes the world’s first and largest cryptocurrency into uncharted territory as his return to office would likely have a renewed emphasis on deregulation, tax incentives, and economic policies favorable to alternative investments, such as Bitcoin.”


    He continues: “During the campaign, he’s positioned himself as the pro-Bitcoin candidate, speaking in favor of digital currencies. 


    “Trump has also criticized the excessive influence of centralized financial institutions and has pledged to reduce regulatory constraints on digital assets if re-elected. 


    “This outspoken support has earned him recognition within the crypto community, with many investors viewing his potential return to office as an important bullish signal for Bitcoin.”


    Investor anticipation of policy shifts that many expect from a second Trump administration is likely to fuel a rally.


    The former president’s pro-business stance is often associated with easing regulatory constraints and implementing fiscal policies that encourage investment in unconventional assets. 


    “Should he return to office, Trump’s focus on deregulation might extend to cryptocurrency markets, providing a friendlier environment for digital assets like Bitcoin,” notes Nigel Green.


    Furthermore, Trump’s previous term was marked by substantial corporate tax cuts, which injected additional liquidity into markets, fostering investment in high-growth assets. 


    “Similar fiscal policies could be reintroduced, creating an environment ripe for Bitcoin’s price appreciation. This potential policy outlook adds a sense of urgency for investors to secure their positions in the leading crypto.”


    The former President’s economic stance, often marked by bold decisions and an ‘America First’ approach, could heighten concerns about potential shifts in global trade and US foreign policy. 


    The deVere CEO affirms: “This uncertain landscape makes Bitcoin an attractive alternative for investors looking to hedge against traditional market risks, spurring a demand that could propel Bitcoin to new highs.”


    In recent years, institutional interest in Bitcoin has grown, with large-scale investors, hedge funds, and even public companies allocating portions of their capital to digital assets. This trend has lent additional legitimacy to Bitcoin and has reduced volatility, making it more accessible to mainstream investors.


    A Trump victory might accelerate this trend by promoting a regulatory environment conducive to institutional involvement in the cryptocurrency market. 


    “Such a scenario would bring even more institutional money into Bitcoin, driving its price higher. If Trump advocates for more crypto-friendly policies, it would reinforce the digital asset’s standing in mainstream finance.”


    His potential re-election could also impact the Federal Reserve’s monetary policy stance and the strength of the US dollar, factors that indirectly affect Bitcoin’s price. If his policies lead to a weaker dollar, investors may flock to Bitcoin as a store of value, spurring further demand and pushing prices upward.


    Nigel Green concludes: “A Trump victory, we believe, could spark a substantial rally for Bitcoin as investors look to capitalize on potential policy shifts and a pro-business outlook. 


    “Given Bitcoin’s current positioning just below its all-time high, this election may be the spark that sends it to new records.”

    deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of offices around the world, more than 80,000 clients, and $12bn under advisement.

    MIL OSI – Submitted News

  • MIL-OSI USA: Governor Murphy Announces Creation of Economic Council

    Source: US State of New Jersey

    TRENTON – Governor Murphy today signed an Executive Order establishing a new Economic Council, which will be supported by a newly established Development Coordination Committee. Under the executive order, the Economic Council will provide a regular forum for the business community and state government to discuss, collaborate, and solve issues important to the public and private sectors, and stimulate economic growth and prosperity. The new Development Coordination Committee will support the Council’s work in advancing development projects that require multiple state, county and local government approvals. 

    “The Economic Council will ensure that we continue to have a healthy collaboration between the business community and the state government,” said Governor Murphy. “Deepening our Administration’s strong relationship with various sectors across our state will stimulate growth within our economy. I look forward to the forum for ongoing dialogue, collaboration, and problem-solving to advance our shared economic goals.” 

    Since the beginning of the Murphy Administration, state officials have worked with legislative partners and industry stakeholders on policies to improve the role and function of the government in facilitating economic development. Since 2018, New Jersey has seen small businesses increase by over 40,000 or 19%, despite the effects of the global COVID-19 pandemic.

    The Economic Council’s co-chairs will be the Deputy Chief of Staff for Economic Growth and the Chief Executive Officer of the New Jersey Economic Development Authority. The co-chairs will designate representatives from industry to participate in working group discussions with the Council. Along with the co-chairs, the Council will also consist of the Governor’s Chief of Staff, Chief Counsel, Chief Policy Advisor, the State Treasurer; and the Executive Director of the Business Action Center, or their respective designees.

    “New Jersey’s economy has grown stronger under Governor Murphy’s leadership, and the Economic Council will build upon the progress we’ve made over the past seven years,” said NJEDA Chief Executive Officer Tim Sullivan. “I’m honored to co-chair the Economic Council and look forward to working with our government partners and key stakeholders to help meet the ambitious economic goals of the administration.”

    “The establishment of the Economic Council is a giant step forward in Governor Murphy’s relationship with the business community,” said Deputy Chief of Staff for Economic Growth Eric Brophy. “Over the past several years, at the governor’s urging, we have made doing business in New Jersey easier. We learned early on that working closely with the business community and legislators is the best way to grow New Jersey’s economy. The Economic Council will further cultivate our ambition to make business in New Jersey less complicated.”

    “Addressing the future economy of our state is vitally important to unleashing our enormous economic potential – as is the need to generate additional organic, reliable revenue to fund our growing state budgets,” said Tom Bracken, President & CEO, New Jersey Chamber of Commerce. “The New Jersey Chamber of Commerce has been advocating for the creation of an economic council for many years to accomplish that goal. Today’s announcement, hopefully, will put in place a mechanism to bring together government and the business community to address collective thoughts and strategies to create a more vibrant, competitive economic landscape. With the Economic Council and Development Coordination Committee structure in place, it will now be up to its organizers to ensure it will quickly and effectively deliver the results we desperately need. We thank Gov. Murphy for creating this forum that we hope transcends administrations – and we look forward to working with the administration and being part of this opportunity.” 

    Within the Council, the Executive Order also establishes a Development Coordination Committee as a subcommittee that will focus on ways to streamline the intergovernmental review of complex development projects, improve communication amongst state, county and local government financing and permitting entities with respect to projects that require a coordinated review. This will enhance information sharing by and between government agencies and project developers.

    The Development Coordination Committee will consist of the Deputy Chief of Staff for Economic Growth; the State Treasurer; the Commissioners of the Departments of Community Affairs, Environmental Protection, and Transportation; and the Executive Directors of the EDA, New Jersey Housing and Mortgage Finance Agency, Schools Development Authority, and Infrastructure Bank, or their respective designees. The Committee will also be tasked with reporting to the Council on recommended policies, initiatives or reforms that may be undertaken to reduce barriers to development or construction project disruptions or delays.

    Read Executive Order No.369 here.

    MIL OSI USA News

  • MIL-OSI USA: Warner, Kaine, and Scott Applaud $380 Million in Inflation Reduction Act Funding for the Port of Virginia

    US Senate News:

    Source: United States Senator for Commonwealth of Virginia Mark R Warner
    WASHINGTON –  Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) and U.S. Representative Bobby Scott (D-VA-03) announced $380,000,000 in federal funding for the Port of Virginia to accelerate its plan to become carbon-neutral by 2040. Warner, Kaine, and Scott advocated for this funding and sent a letter of support for this grant. The funding was awarded through the Environmental Protection Agency’s Clean Ports Program, which was made possible by the Inflation Reduction Act that the members helped pass. 
    “The Port of Virginia is one of the largest and busiest ports on the eastern seaboard, and it’s critical to Virginia’s economy and offshore wind industry. As the Port of Virginia continues to grow thanks to investments we’re making, we must also ensure we’re reducing greenhouse gas emissions, which result in negative health and environmental impacts for our communities,” said the lawmakers. “That’s why we’re thrilled that this federal funding, which was made possible by theInflation Reduction Act we supported, will accelerate the Port’s efforts to achieve net-zero carbon emissions by 2040 and further cement Virginia’s place as a leader in clean energy.”  
    The Inflation Reduction Act made historic investments to support clean energy projects. It included clean energy tax credits that have incentivized a series of corporate investments in Virginia, including:
    A $681 million investment by LS GreenLink to build a state-of-the-art facility to manufacture high-voltage subsea cables used for offshore wind farms inChesapeake, which will create over 330 jobs in Virginia.
    An investment of over $400 million by Topsoe to build a new manufacturing facility in Chesterfield County, which will create at least 150 new jobs in Virginia.
    An investment of $208 million by Mack and Volvo Trucks—in addition to a federal grant award of over $208 million for the company—to sustain 7,900 union jobs and create 295 new jobs in Virginia, Maryland, and Pennsylvania. Volvo Trucks is the second largest employer in the New River Valley, sustaining 3,600 jobs in Dublin, including 3,200 United Automobile Workers (UAW) jobs. In September 2024, Warner and Kaine visited Volvo’s New River Valley plant to celebrate the investment.
    Today’s announcement builds on other transformational investments made to the Port of Virginia by the Biden-Harris administration with the backing of Warner, Kaine, and Scott. That includes $225.4 million to fully fund the Norfolk Harbor Deepening and Widening Project, which will improve navigation and expand capacity by deepening and widening Norfolk Harbor’s shipping channels, allowing for two-way traffic in and out of the harbor. Of this amount, $141.7 million was made available through the Infrastructure Investment and Jobs Act and $83.7 million was provided through the Fiscal Year 2022 omnibus appropriations bill.
    The Port also previously received $20 million in federal funding from the Department of Transportation for improvements to Portsmouth Marine Terminal that will allow it to serve as a staging area to support the manufacturing and movement of offshore wind goods to support the 2.6 gigawatt Coastal Virginia Offshore Wind commercial project and other commercial offshore wind projects up-and-down the East Coast. Warner, Kaine, and Scott led a Virginia Congressional Delegation letter to Secretary of Transportation Pete Buttigieg in support of the Port’s application for that funding.

    MIL OSI USA News

  • MIL-OSI New Zealand: Pacific Trade Invest – Investment Webinar: EXPANDING the HORIZON for Women in Technology

    Source: Pacific Trade Invest NZ

    Pacific Trade Invest NZ is delighted to invite you to our upcoming hour-long webinar, Expanding the Horizon for Women in Technology.

    Join us on Thursday 7 November 2024 at 2:00 PM New Zealand time as industry experts and thought leaders discuss their involvement in the technology sector; what’s on the horizon and the investment possibilities the sector presents for investors.  

     

    Register here    https://shorturl.at/C34uL

     

    A great line-up of speakers is confirmed:
     
    Julia Arnott-Nene and Eteroa Lafaele, Co-Founders and Directors Fibre Fale

    Julia and Eteroa are an award-winning changemaker team in tech, on a mission for Digital Equity and increased representation of Pacific people in technology. Fibre Fale is an innovative Aotearoa collective creating pathways into technology for Pacific people. Fibre Fale builds future tech leaders and prepares the future of the technology industry in the Blue Pacific.

    Priyanka Brahmbhatt, Executive Director, Bankai Group and CEO Bankai Technology

    Global leader in technology and investments; a member of the Forbes Council. As a UN Youth Delegate she’s advocated for climate action, women in tech, mental health awareness, and socio-economic empowerment of marginalized communities.

    Tenanoia Simona, CEO Tuvalu Telecommunications Corporation

    An innovator and leader in implementing effective technology in the Blue Pacific. Simona has spearheaded initiatives from satellites, xGPON fibre network roll-out, and 4G LTE deployment in remote islands. She firmly believes that diversity and inclusion are vital for driving innovation and achieving meaningful progress in small island nations.

     

    The speakers will discuss topics such as: 

      • Technology as a rewarding career path for women
      • The positive role of government and educational institutions, in contributing to this transformation
      • The Fibre Fale model 
      • How technology has evolved over time.
      • Investing in women in technology

    Register here    https://shorturl.at/C34uL

     

    ABOUT PACIFIC TRADE INVEST NZ

    • Is part of the Pacific Trade Invest Global Network of offices operating in Sydney, Australia; Beijing, People’s Republic of China; Geneva, Switzerland and Auckland, New Zealand.
    • An agency of Pacific Islands Forum Secretariat (PIFS) and is funded by New Zealand’s Ministry of Foreign Affairs and Trade (MFAT).
    • Supports the 16 Forum Island countries and Territories: Cook Islands, Federated States of Micronesia, Fiji, French Polynesia, Kiribati, Republic of the Marshall Islands, Nauru, New Caledonia, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.

    MIL OSI New Zealand News

  • MIL-OSI Security: Six Charged in Scheme to Defraud the Federal Government

    Source: United States Attorneys General 8

    Six defendants have been charged for their roles in schemes to rig bids, defraud the government and pay bribes and kickbacks in connection with the sale of IT products and services to federal government purchasers, which resulted in overcharges of millions of dollars to the U.S. government, including the Department of Defense (DoD). 

    On Oct. 9 and Oct. 16, a federal grand jury in Baltimore returned indictments against two additional defendants. Four other defendants were also charged. These are the first charges in the Justice Department’s ongoing investigation into IT manufacturers, distributors and resellers who sell products and services to government purchasers, including to the intelligence community. 

    “Antitrust crimes can undermine competition for products and services that are vital to our national security,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “When fraudsters siphon taxpayer funds, the Antitrust Division and its Procurement Collusion Strike Force (PCSF) partners across the government will hold accountable those who collude to subvert competition, line their pockets with federal procurement dollars and compromise the integrity of our intelligence community programs.”

    “This office and our partners will use all available resources to hold accountable those who would undermine and distort the government’s procurement of goods and services, especially those related to our cybersecurity infrastructure,” said U.S. Attorney Erek L. Barron for the District of Maryland. 

    “This investigation demonstrates the vital need to protect the DoD procurement process, particularly within the Intelligence Community,” said Special Agent in Charge Christopher Dillard of the DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “The Defense Criminal Investigative Service is committed to identifying fraudsters who abuse public trust and enrich themselves through criminal schemes.”

    “There is no place for fraudsters and crooks scheming to manipulate the government bidding process for personal gain,” said Special Agent in Charge William J. DelBagno of the FBI Baltimore Field Office. “The FBI remains steadfastly committed to identifying, investigating and bringing to justice those conspiring to enrich themselves by cheating taxpayers.”

    “Investigating complex fraud schemes is a top priority of ours,” said National Security Agency Acting Inspector General Kevin Gerrity. “I commend our team, our law enforcement partners and the Justice Department for their work protecting the integrity of federal contracting.”

    “Each part of the government must do its part to detect and prosecute instances of waste, fraud and abuse, and CIA’s Office of Inspector General was pleased to join its law enforcement partners in investigating this egregious case,” said CIA Inspector General Robin C. Ashton.

    United States v. Victor Marquez

    Victor M. Marquez, a Maryland resident and owner of two IT companies with significant government contracts, was charged in a four-count indictment with wire fraud conspiracy, wire fraud and major fraud against the United States for rigging bids and inflating the amount of money obtained from valuable IT contracts. 

    Antwann C.K. Rawls, an employee of one of Marquez’s companies, and Scott A. Reefe, an IT sales executive, have been charged for their respective roles in the conspiracy.

    As alleged in the indictment, Marquez, Rawls, Reefe and their co-conspirators used their positions of trust to learn sensitive, confidential procurement information, including procurement budgets for large U.S. government IT contracts. The co-conspirators used that inside information to craft bids at artificially determined, non-competitive and non-independent prices, ensuring Marquez’s company would win the procurement. 

    According to court documents, the co-conspirators shared their bids in advance of submitting them to the government, with one co-conspirator emailing that he would submit a “high price third bid.” Marquez and his co-conspirators submitted their collusive bids despite knowing the government sought independent, competitive bids for the valuable contracts, and despite Marquez’s certification of independent bidding.

    If convicted, Marquez faces maximum penalties of 20 years in prison for each conspiracy and wire fraud count and 10 years in prison for the major fraud charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    United States v. Breal L. Madison Jr.

    Breal L. Madison Jr., a Maryland resident, was charged in a 13-count indictment with conspiracy, bribery of a public official, mail fraud and money laundering for orchestrating a years-long scheme to defraud his employer and the United States out of over $7 million in connection with the sale of IT products to various government agencies.

    Brandon Scott Glisson, an IT contractor providing IT services to the U.S. government, and Glisson’s supervisor, Lawrence A. Eady, a former senior government employee, have also been charged for their respective roles in the scheme.

    According to court documents, through multiple misrepresentations, Madison and his co-conspirators conspired to steal money from Madison’s employer and government agencies, illegally siphoning over $9 million in stolen proceeds to Madison’s shell company, Trident Technology Solutions, and another shell company. They used the money to purchase luxury items and to pay approximately $630,000 in bribes to Eady in exchange for Eady’s ensuring the purchase of additional products sold by Madison. 

    Madison used his ill-gotten gains to buy a Vanquish VQ58 yacht, 2020 Lamborghini Huracan and multiple other vehicles, all of which the United States seeks to forfeit in the indictment. 

    If convicted, Madison faces maximum penalties of five years in prison for the conspiracy count, 15 years in prison for each bribery count, 20 years in prison for each mail fraud count and 10 years for each money laundering count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The DCIS, the FBI Baltimore Field Office, CIA Office of Inspector General and NSA Office of Inspector General investigated the case.

    Acting Assistant Chief Michael Sawers and Trial Attorneys Zachary Trotter and Elizabeth French of the Antitrust Division’s Washington Criminal Section and Assistant U.S. Attorneys Aaron S.J. Zelinsky, Sean M. Delaney and Darren Gardner for the District of Maryland are prosecuting the case. 

    Anyone with information about this investigation or other procurement fraud schemes should notify the PCSF at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government — federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.

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

    View the Rawls information.

    View the Eady information.

    View Reefe information.

    View the Glisson information.

    View the Madison indictment.

    View the Marquez indictment.

    MIL Security OSI

  • MIL-OSI: Seaway7 awarded offshore wind contract in UK

    Source: GlobeNewswire (MIL-OSI)

    Luxembourg – 29 October 2024 – Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) today announced the award to Seaway7, part of the Subsea7 Group, of a substantial1 contract by Ørsted for the transport and installation of the inter-array cables of the Hornsea 3 offshore wind project located in the UK sector of the North Sea.

    Seaway7’s scope of work covers the transportation and installation (T&I) of 192 66kV inter-array cables, measuring approximately 500 kilometres in length, with offshore activities scheduled to commence in 2026.

    Stuart Fitzgerald, CEO Seaway7, said: “With this award we look forward to continuing our long-standing relationship with Ørsted. The Hornsea 3 project represents our seventh offshore wind project together, including the inter-array cables on the two previous phases of the Hornsea Wind Zone, Hornsea 1 and Hornsea 2. The award adds to our backlog and leading position in the UK, Europe’s largest offshore wind market.

    (1) Subsea7 defines a substantial contract as being between USD 150 million and USD 300 million.

    *******************************************************************************
    Subsea7 is a global leader in the delivery of offshore projects and services for the evolving energy industry. We create sustainable value by being the industry’s partner and employer of choice in delivering the efficient offshore solutions the world needs.

    Subsea7 is listed on the Oslo Børs (SUBC), ISIN LU0075646355, LEI 222100AIF0CBCY80AH62.

    *******************************************************************************

    Contact for investment community enquiries:
    Katherine Tonks
    Investor Relations Director
    Tel +44 (0)20 8210 5568
    ir@subsea7.com

    Contact for media enquiries:
    Nikki Beales
    Communications Manager, Seaway7
    Tel +44 (0)7843895292
    nikki.beales@seaway7.com
    www.seaway7.com

    Forward-Looking Statements: This document may contain ‘forward-looking statements’ (within the meaning of the safe harbour provisions of the U.S. Private Securities Litigation Reform Act of 1995). These statements relate to our current expectations, beliefs, intentions, assumptions or strategies regarding the future and are subject to known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements may be identified by the use of words such as ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘future’, ‘goal’, ‘intend’, ‘likely’ ‘may’, ‘plan’, ‘project’, ‘seek’, ‘should’, ‘strategy’ ‘will’, and similar expressions. The principal risks which could affect future operations of the Group are described in the ‘Risk Management’ section of the Group’s Annual Report and Consolidated Financial Statements. Factors that may cause actual and future results and trends to differ materially from our forward-looking statements include (but are not limited to): (i) our ability to deliver fixed price projects in accordance with client expectations and within the parameters of our bids, and to avoid cost overruns; (ii) our ability to collect receivables, negotiate variation orders and collect the related revenue; (iii) our ability to recover costs on significant projects; (iv) capital expenditure by oil and gas companies, which is affected by fluctuations in the price of, and demand for, crude oil and natural gas; (v) unanticipated delays or cancellation of projects included in our backlog; (vi) competition and price fluctuations in the markets and businesses in which we operate; (vii) the loss of, or deterioration in our relationship with, any significant clients; (viii) the outcome of legal proceedings or governmental inquiries; (ix) uncertainties inherent in operating internationally, including economic, political and social instability, boycotts or embargoes, labour unrest, changes in foreign governmental regulations, corruption and currency fluctuations; (x) the effects of a pandemic or epidemic or a natural disaster; (xi) liability to third parties for the failure of our joint venture partners to fulfil their obligations; (xii) changes in, or our failure to comply with, applicable laws and regulations (including regulatory measures addressing climate change); (xiii) operating hazards, including spills, environmental damage, personal or property damage and business interruptions caused by adverse weather; (xiv) equipment or mechanical failures, which could increase costs, impair revenue and result in penalties for failure to meet project completion requirements; (xv) the timely delivery of vessels on order and the timely completion of ship conversion programmes; (xvi) our ability to keep pace with technological changes and the impact of potential information technology, cyber security or data security breaches; (xvii) global availability at scale and commercially viability of suitable alternative vessel fuels; and (xviii) the effectiveness of our disclosure controls and procedures and internal control over financial reporting. Many of these factors are beyond our ability to control or predict. Given these uncertainties, you should not place undue reliance on the forward-looking statements. Each forward-looking statement speaks only as of the date of this document. We undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
    This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
    This stock exchange release was published by Katherine Tonks, Investor Relations, Subsea7, on 29 October 2024 at 21:05 CET.

    Attachment

    The MIL Network