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Category: Machine Learning

  • MIL-OSI: Magic Empire Global Limited Announces First Half 2024 Unaudited Financial Results

    Source: GlobeNewswire (MIL-OSI)

    HONG KONG, Oct. 30, 2024 (GLOBE NEWSWIRE) — Magic Empire Global Limited (“MEGL” or the “Company”) (NASDAQ: MEGL), a financial services provider in Hong Kong which principally engages in the provision of corporate finance advisory services, today announced its unaudited financial results for the six months ended June 30, 2024.

    Overview:

      ● Revenue increased by approximately 26.9% from approximately HK$6.1 million for the six months ended June 30, 2023 to approximately HK$7.7 million (US$1.0 million) for the six months ended June 30, 2024
         
      ● Net income decreased by approximately 13.6% from approximately HK$0.7 million for the six months ended June 30, 2023 to approximately HK$0.6 million (US$80,000) for the six months ended June 30, 2024
         

    Six Month Financial Results Ended June 30, 2024

    Revenue. Revenue increased by approximately 26.9% from approximately HK$6.1 million for the six months ended June 30, 2023 to approximately HK$7.7 million (US$1.0 million) for the six months ended June 30, 2024. During the six months ended June 30, 2024, the Hong Kong capital markets and the general economic environment in Hong Kong remained difficult. In view of the market conditions of Hong Kong market, we diversified our business to explore projects of listing in other key capital markets such as the United States and we completed two financial advisory projects for clients pursuing listing on Nasdaq and our revenue from financial and independent advisory services significantly increased from approximately HK$0.2 million for the six months ended June 30, 2023 to approximately HK$6.9 million (US$0.9 million) for the six months ended June 30, 2024. Revenue from compliance advisory services decreased from approximately HK$1.4 million for the six months ended June 30, 2023 to approximately HK$0.5 million (US$59,000) for the six months ended June 30, 2024 due to completion of several of our compliance advisory projects during the six months ended June 30, 2024 and the decrease in the number of new IPOs in the Hong Kong market.

    Selling, general and administrative expenses. Selling, general and administrative expenses increased by approximately 27.6% from approximately HK$7.2 million for the six months ended June 30, 2023 to approximately HK$9.2 million (US$1.2 million) for the six months ended June 30, 2024, which was mainly due to (i) increase in staff costs resulting from increase in payroll and bonus to our staff; (ii) increase in travelling, accommodation and entertainment expenses due to increase in travelling for business development initiatives; and (iii) increase in depreciation charge.

    Other income, net. Other net income increased by approximately 13.7% from approximately HK$1.9 million for the six months ended June 30, 2023 to approximately HK$2.1 million (US$0.3 million) for the six months ended June 30, 2024, which was mainly due to the increase in interest income resulting from the increase in average cash balance.

    Income tax expense. Income tax expense was nil for the six months ended June 30, 2024 (six months ended June 30, 2023: nil) as we have available tax losses brought forward.

    Net income. Net income decreased by 13.6% from approximately HK$0.7 million for the six months ended June 30, 2023 to approximately HK$0.6 million (US$80,000) for the six months ended June 30, 2024, which was mainly due to the increase in selling, general and administrative expenses, partially offset by increase in revenue.

    Basic and diluted EPS. Basic and diluted EPS were approximately HK$0.03 (US$0.004) per ordinary share for the six months ended June 30, 2024, as compared to HK$0.04 per ordinary share for the six months ended June 30, 2023, respectively.

    About Magic Empire Global Limited

    Magic Empire Global Limited is a financial services provider in Hong Kong which principally engage in the provision of corporate finance advisory services and underwriting services. Its service offerings mainly comprise (i) IPO sponsorship services; (ii) financial advisory and independent financial advisory services; (iii) compliance advisory services; and (iv) underwriting services. For more information, visit the Company’s website at http://www.meglmagic.com.

    Exchange Rate Information

    This announcement contains translations of certain HK$ amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from HK$ to US$ were made at the rate of HK$7.8083 to US$1.00, the exchange rate on June 28, 2024 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the HK$ or US$ amounts referred could be converted into US$ or HK$, as the case may be, at any particular rate or at all.

    Safe Harbor Statement

    Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC, which are available for review at www.sec.gov.

    Hong Kong:

    Magic Empire Global Limited
    Ms. Vivien Tai
    Tel: +852 3577 8770
    E-mail: meglir@giraffecap.com 

    MAGIC EMPIRE GLOBAL LIMITED

    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

        As of  
        December 31,
    2023    		     June 30,
    2024    		     June 30,
    2024    		  
        HK$     HK$     US$  
    ASSETS                        
    Current assets:                        
    Cash     92,407,813       92,659,337       11,866,775  
    Accounts receivable     2,302,436       1,656,000       212,082  
    Interest receivables     449,550       346,457       44,370  
    Deposits and prepayments     1,096,249       1,055,783       135,213  
                             
    Total current assets     96,256,048       95,717,577       12,258,440  
                             
    Non-current assets:                        
    Property and equipment, net     1,695,006       1,504,509       192,681  
    Right-of-use assets     1,658,382       710,735       91,023  
    Long-term investment     38,647,738       38,647,738       4,949,571  
                             
    Total non-current assets     42,001,126       40,862,982       5,233,275  
    Total assets     138,257,174       136,580,559       17,491,715  
                             
    LIABILITIES AND SHAREHOLDERS’ EQUITY                        
    Current liabilities:                        
    Accruals and other payables     1,079,000       263,003       33,682  
    Contract liabilities     1,164,000       664,000       85,038  
    Operating lease liabilities     1,746,317       757,717       97,040  
                             
    Total current liabilities     3,989,317       1,684,720       215,760  
                             
    Total liabilities     3,989,317       1,684,720       215,760  
                             
    COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY                        
    Ordinary shares, US$0.0001 par value, 300,000,000 shares authorized, and 20,256,099 shares outstanding as of December 31, 2023 and June 30, 2024 respectively     15,826       15,826       2,027  
    Additional paid-in capital     138,662,858       138,662,858       17,758,393  
    Accumulated deficits     (4,410,827 )     (3,782,845 )     (484,465 )
    Total shareholders’ equity     134,267,857       134,895,839       17,275,955  
    Total liabilities and shareholders’ equity     138,257,174       136,580,559       17,491,715  

      

    MAGIC EMPIRE GLOBAL LIMITED

    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

        For the six months ended  
        June 30,
    2023    		     June 30,
    2024    		     June 30,
    2024    		  
        HK$     HK$     US$  
    REVENUE     6,081,430       7,719,600       988,640  
                             
    OPERATING EXPENSES:                        
    Selling, general and administrative expenses     (7,230,225 )     (9,224,710 )     (1,181,399 )
    Total operating expenses     (7,230,225 )     (9,224,710 )     (1,181,399 )
                             
    INCOME FROM OPERATIONS     (1,148,795 )     (1,505,110 )     (192,759 )
                             
    OTHER INCOME (EXPENSE)                        
    Interest income     1,957,509       2,166,502       277,461  
    Other expenses     (81,527 )     (33,410 )     (4,279 )
    Total other income, net     1,875,982       2,133,092       273,182  
                             
    INCOME BEFORE INCOME TAXES     727,187       627,982       80,423  
    INCOME TAX EXPENSES     –       –       –  
    NET INCOME     727,187       627,982       80,423  
                             
    WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES                        
    Basic and diluted     20,256,099       20,256,099       20,256,099  
                             
    EARNINGS PER SHARE                        
    Basic and diluted     0.04       0.03       0.004  

    The MIL Network –

  • MIL-OSI: NCS Multistage Holdings, Inc. Announces Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Third Quarter Results

    • Total revenues of $44.0 million, a 15% year-over-year improvement, driven in part by increased international revenues
    • Net income of $4.1 million and diluted earnings per share of $1.60, compared to $4.4 million and diluted earnings per share of $1.77 one year ago
    • Adjusted EBITDA of $7.1 million, a $0.3 million year-over-year improvement
    • Cash flows from operating activities of $2.1 million for the first nine months of 2024; free cash flow less distributions to non-controlling interest of $0.4 million, a $3.3 million improvement over the first nine months of 2023
    • $15.3 million in cash and $8.6 million of total debt as of September 30, 2024

    HOUSTON, Oct. 30, 2024 (GLOBE NEWSWIRE) — NCS Multistage Holdings, Inc. (Nasdaq: NCSM) (the “Company,” “NCS,” “we” or “us”), a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completions and field development strategies, today announced its results for the quarter ended September 30, 2024.

    Financial Review

    Total revenues were $44.0 million for the quarter ended September 30, 2024 compared to $38.3 million for the third quarter of 2023. Revenue growth was driven by increases in international services revenues, U.S. product sales, and Canada product sales and services. These gains were partially offset by lower U.S. services revenues and international product sales. The significant increase in international revenues was driven by Middle East tracer work and North Sea frac systems, while the increase in the United States reflects higher frac plug and perforating gun sales by our joint venture, Repeat Precision, LLC (“Repeat Precision”). Despite the increase in U.S. revenues, customer activity continues to be negatively impacted by lower natural gas prices. The increase in our Canadian revenue was due in part to higher fracturing systems activity in 2024, as the prior year was impacted more significantly by Canadian wildfires stemming from drought conditions.

    Compared to the second quarter of 2024, total revenues increased by 48%, with an increase in Canada of 139%, primarily due to seasonality associated with spring break-up in the second quarter. This increase was partially offset by a decline of 31% in international revenues, primarily associated with the timing of tracer service work in the Middle East, and a 6% decline in the United States.

    Gross profit was $17.8 million, with a gross margin of 41%, for the third quarter of 2024, compared to $15.2 million, with a gross margin of 40%, for the third quarter of 2023. Gross margin for 2024 improved due to an increase in higher-margin international work in both the Middle East and North Sea, an increase in frac plug and perforating gun sales in the United States, as well as the benefits realized from operational restructurings enacted in 2023. Adjusted gross profit, which we define as total revenues less total cost of sales, exclusive of depreciation and amortization (“DD&A”), was $18.5 million, or an adjusted gross margin of 42%, for the third quarter of 2024, compared to $15.7 million, or 41%, for the third quarter of 2023.

    Selling, general and administrative (“SG&A”) expenses totaled $14.1 million for the third quarter of 2024, an increase of $1.5 million compared to the same period in 2023. This increase in expense reflects a higher annual incentive bonus accrual year-over-year partially offset by the benefit of cost-saving measures implemented through our restructuring efforts in 2023.

    Other income was $1.5 million for the third quarter of 2024 compared to $2.0 million for the third quarter of 2023. This change in other income is primarily attributable to the prior year recovery of unpaid invoices through a litigation settlement and the reversal of a legal contingency fee in 2023 that was not repeated in 2024. This was partially offset in 2024 by increases in royalty income from licensees and the benefit associated with our technical services and assistance agreement with our local partner in Oman. 

    Net income was $4.1 million, or $1.60 per diluted share, for the quarter ended September 30, 2024 compared to net income of $4.4 million, or $1.77 per diluted share for the quarter ended September 30, 2023.

    Adjusted EBITDA was $7.1 million for the quarter ended September 30, 2024, an increase of $0.3 million compared to the same period a year ago. This improvement is primarily the result of an increase in higher-margin international projects partially offset by an increase in SG&A expenses due to higher annual incentive bonus accruals. Our resulting Adjusted EBITDA margin of 16% for the quarter ended September 30, 2024 compared to 18% for the same period a year ago. 

    Cash flow from operating activities for the nine months ended September 30, 2024 was $2.1 million, a $3.5 million improvement compared to the same period in 2023. For the nine months ended September 30, 2024, free cash flow, less distributions to non-controlling interest, provided cash of $0.4 million compared to a use of cash of $(3.0) million for the same period in 2023. The overall increase in free cash flow was largely attributed to our operating results, change in net working capital, and a reduction in net cash used in investing activities, partially offset by a distribution to our non-controlling interest. 

    Liquidity and Capital Expenditures

    As of September 30, 2024, NCS had $15.3 million in cash and $8.6 million in total debt, and a borrowing base under the undrawn asset-based revolving credit facility (“ABL Facility”) of $21.7 million. Our working capital, defined as current assets minus current liabilities, was $77.3 million and $71.2 million as of September 30, 2024 and December 31, 2023, respectively.

    Net working capital, calculated as working capital, less cash and excluding the current maturities of long-term debt, was $64.1 million and $56.3 million as of September 30, 2024 and December 31, 2023, respectively. The increase in our net working capital was primarily attributable to an increase in our accounts receivable, partially offset by an increase in accrued expenses.

    NCS incurred capital expenditures, net of proceeds from the sale of property and equipment, of $0.7 million and $1.5 million for the nine months ended September 30, 2024 and 2023, respectively.

    Review and Outlook 

    NCS’s Chief Executive Officer, Ryan Hummer commented, “NCS has continued to outperform expectations in a challenging market environment. This quarter marks the third consecutive quarter in which our total revenue has been at the high end or exceeded our expectations, and in which our Adjusted EBITDA exceeded the high end of our expectations.

    Our revenue for the first nine months of 2024 of $117.6 million is over $10 million, or approximately 10%, higher than the same period last year. Importantly, we are also demonstrating the operating leverage in our business, with a modest improvement in gross margin percentage paired with a reduction in SG&A expenses for these periods. Our resulting Adjusted EBITDA of $14.1 million for the first nine months of 2024 is approximately 50% higher than the same period last year, a demonstration of the attractive incremental margins our business can generate as we grow.

    This performance reflects the way our team has embraced and executed our core strategies to build upon our leading market positions, capitalize on international and offshore opportunities and to commercialize innovative solutions to complex customer challenges. One example of this is the 124% improvement in revenue derived outside North America for the first nine months of 2024 as compared to 2023, with international revenue comprising 10% of our total revenue in that period, as compared to 5% last year. Our multi-year efforts to grow our customer base in the North Sea and to enter certain markets in the Middle East are being rewarded.

    Our team at NCS and Repeat Precision has delivered year-over-year revenue growth of 15% in the U.S. through the first nine months of the year, an impressive performance in light of meaningful reductions in industry activity, whether measured by the rig count or unconventional completion counts.

    We are pairing this growth with improved free cash flow generation, with free cash flow after distributions to non-controlling interest for the first nine months of 2024 of $0.4 million, increasing by more than $3 million as compared to the same period in 2023. We maintain a net cash position of $6.7 million, and had total liquidity of over $37 million as of September 30, 2024, which includes our cash on hand and availability under our undrawn revolving credit facility.

    We expect that we will continue to deliver improved revenue performance in the fourth quarter of 2024 as compared to 2023 in each of the U.S., Canada and international markets. However, sequentially we expect a 5-15% reduction in revenue in each of these markets, reflecting the potential for a more significant reduction in year-end activity than in prior years for the U.S. and Canadian markets due to industry drilling and completion efficiencies, and more challenging winter operating conditions in selected international markets, including the North Sea. 

    We believe the value that we bring to our customers across our product and service portfolio, our continued product and service innovation, and our targeted efforts to penetrate international markets positions us to outperform the anticipated changes in industry drilling and completion activity. As demonstrated thus far in 2024, we believe that this revenue growth, paired with previously enacted and continued efforts to control our operating expenses, will enable higher year-over-year Adjusted EBITDA Margins. 

    These results are reflective of the talent, effort and dedication of the outstanding team at NCS and at Repeat Precision. By delivering on our core strategies, we are providing extraordinary outcomes to our customers, driving innovation in the industry and creating value for our shareholders.”

    EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Less Share-Based Compensation, Adjusted Net Income (Loss), Adjusted Earnings (Loss) per Diluted Share, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow, Free Cash Flow Less Distributions to Non-Controlling Interest and Net Working Capital are non-GAAP financial measures. For an explanation of these measures and a reconciliation, refer to “Non-GAAP Financial Measures” below.

    Conference Call

    The Company will host a conference call to discuss its third quarter 2024 results and updated guidance on Thursday, October 31, 2024 at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). The conference call will be available via a live audio webcast. Participants who wish to ask questions may register for the call here to receive the dial-in numbers and unique PIN. If you wish to join the conference call but do not plan to ask questions, you may join the listen-only webcast here. The live webcast can also be accessed by visiting the Investors section of the Company’s website at ir.ncsmultistage.com. It is recommended that participants join at least 10 minutes prior to the event start.

    The replay will be available in the Investors section of the Company’s website shortly after the conclusion of the call and will remain available for approximately seven days.

    About NCS Multistage Holdings, Inc.

    NCS Multistage Holdings, Inc. is a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completions and field development strategies. NCS provides products and services primarily to exploration and production companies for use in onshore and offshore wells, predominantly wells that have been drilled with horizontal laterals in both unconventional and conventional oil and natural gas formations. NCS’s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including the North Sea, the Middle East, Argentina and China. NCS’s common stock is traded on the Nasdaq Capital Market under the symbol “NCSM.” Additional information is available on the website, www.ncsmultistage.com.

    Forward Looking Statements

    This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods, or by the inclusion of forecasts or projections. Examples of forward-looking statements include, but are not limited to, statements we make regarding the outlook for our future business and financial performance. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause our actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions and the following: declines in the level of oil and natural gas exploration and production activity in Canada, the United States and internationally; oil and natural gas price fluctuations; significant competition for our products and services that results in pricing pressures, reduced sales, or reduced market share; inability to successfully implement our strategy of increasing sales of products and services into the U.S. and international markets; loss of significant customers; losses and liabilities from uninsured or underinsured business activities and litigation; our failure to identify and consummate potential acquisitions; the financial health of our customers including their ability to pay for products or services provided; our inability to integrate or realize the expected benefits from acquisitions; our inability to achieve suitable price increases to offset the impacts of cost inflation; loss of any of our key suppliers or significant disruptions negatively impacting our supply chain; risks in attracting and retaining qualified employees and key personnel; risks resulting from the operations of our joint venture arrangement; currency exchange rate fluctuations; impact of severe weather conditions; our inability to accurately predict customer demand, which may result in us holding excess or obsolete inventory; impairment in the carrying value of long-lived assets including goodwill; failure to comply with or changes to federal, state and local and non-U.S. laws and other regulations, including anti-corruption and environmental regulations, guidelines and regulations for the use of explosives; change in trade policy, including the impact of tariffs; our inability to successfully develop and implement new technologies, products and services that align with the needs of our customers, including addressing the shift to more non-traditional energy markets as part of the energy transition; our inability to protect and maintain critical intellectual property assets or losses and liabilities from adverse decisions in intellectual property disputes; loss of, or interruption to, our information and computer systems; system interruptions or failures, including complications with our enterprise resource planning system, cybersecurity breaches, identity theft or other disruptions that could compromise our information; our failure to establish and maintain effective internal control over financial reporting; restrictions on the availability of our customers to obtain water essential to the drilling and hydraulic fracturing processes; changes in legislation or regulation governing the oil and natural gas industry, including restrictions on emissions of greenhouse gases; our inability to meet regulatory requirements for use of certain chemicals by our tracer diagnostics business; the reduction in our ABL Facility borrowing base or our inability to comply with the covenants in our debt agreements; and our inability to obtain sufficient liquidity on reasonable terms, or at all and other factors discussed or referenced in our filings made from time to time with the Securities and Exchange Commission. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

    Contact

    Mike Morrison
    Chief Financial Officer and Treasurer
    (281) 453-2222
    IR@ncsmultistage.com 

    NCS MULTISTAGE HOLDINGS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
    (Unaudited)

        Three Months Ended     Nine Months Ended  
        September 30,     September 30,  
        2024     2023     2024     2023  
    Revenues                                
    Product sales   $ 31,675     $ 27,286     $ 82,455     $ 76,149  
    Services     12,331       10,993       35,099       31,075  
    Total revenues     44,006       38,279       117,554       107,224  
    Cost of sales                                
    Cost of product sales, exclusive of depreciation and amortization expense shown below     19,408       17,118       51,309       47,945  
    Cost of services, exclusive of depreciation and amortization expense shown below     6,066       5,449       18,171       16,564  
    Total cost of sales, exclusive of depreciation and amortization expense shown below     25,474       22,567       69,480       64,509  
    Selling, general and administrative expenses     14,139       12,669       42,789       43,297  
    Depreciation     1,188       1,001       3,395       2,892  
    Amortization     168       168       502       502  
    Income (loss) from operations     3,037       1,874       1,388       (3,976 )
    Other income (expense)                                
    Interest expense, net     (108 )     (27 )     (323 )     (447 )
    Provision for litigation, net of recoveries     —       (98 )     —       (42,498 )
    Other income, net     1,523       1,983       4,863       3,753  
    Foreign currency exchange gain (loss), net     217       (157 )     (788 )     (79 )
    Total other income (expense)     1,632       1,701       3,752       (39,271 )
    Income (loss) before income tax     4,669       3,575       5,140       (43,247 )
    Income tax (benefit) expense     (35 )     (537 )     722       (287 )
    Net income (loss)     4,704       4,112       4,418       (42,960 )
    Net income (loss) attributable to non-controlling interest     557       (296 )     1,296       (168 )
    Net income (loss) attributable to NCS Multistage Holdings, Inc.   $ 4,147     $ 4,408     $ 3,122     $ (42,792 )
    Earnings (loss) per common share                                
    Basic earnings (loss) per common share attributable to NCS Multistage Holdings, Inc.   $ 1.63     $ 1.78     $ 1.23     $ (17.33 )
    Diluted earnings (loss) per common share attributable to NCS Multistage Holdings, Inc.   $ 1.60     $ 1.77     $ 1.21     $ (17.33 )
    Weighted average common shares outstanding                                
    Basic     2,548       2,479       2,535       2,469  
    Diluted     2,588       2,489       2,571       2,469  

    NCS MULTISTAGE HOLDINGS, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS*
    (In thousands, except share data)
    (Unaudited)

        September 30,     December 31,  
        2024     2023  
    Assets                
    Current assets                
    Cash and cash equivalents   $ 15,330     $ 16,720  
    Accounts receivable—trade, net     36,652       23,981  
    Inventories, net     41,199       41,612  
    Prepaid expenses and other current assets     1,996       1,862  
    Other current receivables     4,276       4,042  
    Insurance receivable     —       15,000  
    Total current assets     99,453       103,217  
    Noncurrent assets                
    Property and equipment, net     22,656       23,336  
    Goodwill     15,222       15,222  
    Identifiable intangibles, net     3,905       4,407  
    Operating lease assets     3,644       4,847  
    Deposits and other assets     777       937  
    Deferred income taxes, net     186       66  
    Total noncurrent assets     46,390       48,815  
    Total assets   $ 145,843     $ 152,032  
    Liabilities and Stockholders’ Equity                
    Current liabilities                
    Accounts payable—trade   $ 7,512     $ 6,227  
    Accrued expenses     6,874       3,702  
    Income taxes payable     713       364  
    Operating lease liabilities     1,388       1,583  
    Accrual for legal contingencies     —       15,000  
    Current maturities of long-term debt     2,111       1,812  
    Other current liabilities     3,511       3,370  
    Total current liabilities     22,109       32,058  
    Noncurrent liabilities                
    Long-term debt, less current maturities     6,525       6,344  
    Operating lease liabilities, long-term     2,588       3,775  
    Other long-term liabilities     200       213  
    Deferred income taxes, net     311       249  
    Total noncurrent liabilities     9,624       10,581  
    Total liabilities     31,733       42,639  
    Commitments and contingencies                
    Stockholders’ equity                
    Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding at September 30, 2024 and December 31, 2023     —       —  
    Common stock, $0.01 par value, 11,250,000 shares authorized, 2,557,648 shares issued and 2,502,680 shares outstanding at September 30, 2024 and 2,482,796 shares issued and 2,443,744 shares outstanding at December 31, 2023     26       25  
    Additional paid-in capital     446,721       444,638  
    Accumulated other comprehensive loss     (86,300 )     (85,752 )
    Retained deficit     (262,495 )     (265,617 )
    Treasury stock, at cost, 54,968 shares at September 30, 2024 and 39,052 shares at December 31, 2023     (1,913 )     (1,676 )
    Total stockholders’ equity     96,039       91,618  
    Non-controlling interest     18,071       17,775  
    Total equity     114,110       109,393  
    Total liabilities and stockholders’ equity   $ 145,843     $ 152,032  

    _____________________
    * Preliminary

    NCS MULTISTAGE HOLDINGS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)

      Nine Months Ended  
      September 30,  
      2024   2023  
    Cash flows from operating activities            
    Net income (loss) $ 4,418   $ (42,960 )
    Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:            
    Depreciation and amortization   3,897     3,394  
    Amortization of deferred loan costs   155     153  
    Share-based compensation   3,403     4,198  
    Provision for inventory obsolescence   945     256  
    Deferred income tax expense   3     147  
    Gain on sale of property and equipment   (363 )   (423 )
    Provision for credit losses   44     112  
    Provision for litigation, net of recoveries   —     42,498  
    Net foreign currency unrealized loss (gain)   855     (127 )
    Proceeds from note receivable   61     338  
    Changes in operating assets and liabilities:            
    Accounts receivable—trade   (13,050 )   (2,847 )
    Inventories, net   (1,210 )   (6,356 )
    Prepaid expenses and other assets   821     544  
    Accounts payable—trade   1,124     2,894  
    Accrued expenses   3,224     (1,025 )
    Other liabilities   (2,433 )   (2,023 )
    Income taxes receivable/payable   188     (219 )
    Net cash provided by (used in) operating activities   2,082     (1,446 )
    Cash flows from investing activities            
    Purchases of property and equipment   (1,083 )   (1,704 )
    Purchase and development of software and technology   (70 )   (263 )
    Proceeds from sales of property and equipment   421     454  
    Net cash used in investing activities   (732 )   (1,513 )
    Cash flows from financing activities            
    Payments on finance leases   (1,442 )   (1,159 )
    Line of credit borrowings   3,062     11,702  
    Payments of line of credit borrowings   (3,062 )   (11,758 )
    Treasury shares withheld   (237 )   (265 )
    Distribution to noncontrolling interest   (1,000 )   —  
    Net cash used in financing activities   (2,679 )   (1,480 )
    Effect of exchange rate changes on cash and cash equivalents   (61 )   (397 )
    Net change in cash and cash equivalents   (1,390 )   (4,836 )
    Cash and cash equivalents beginning of period   16,720     16,234  
    Cash and cash equivalents end of period $ 15,330   $ 11,398  
    Noncash investing and financing activities            
    Assets obtained in exchange for new finance lease liabilities $ 2,145   $ 1,665  
    Assets obtained in exchange for new operating lease liabilities $ —   $ 1,791  

    NCS MULTISTAGE HOLDINGS, INC.
    REVENUES BY GEOGRAPHIC AREA
    (In thousands)
    (Unaudited)

        Three Months Ended     Nine Months Ended  
        September 30,     September 30,  
        2024     2023     2024     2023  
    United States                                
    Product sales   $ 9,489     $ 5,200     $ 25,806     $ 20,202  
    Services     1,645       2,812       7,130       8,511  
    Total United States     11,134       8,012       32,936       28,713  
    Canada                                
    Product sales     22,140       21,531       53,078       54,062  
    Services     6,725       6,613       19,514       19,074  
    Total Canada     28,865       28,144       72,592       73,136  
    Other Countries                                
    Product sales     46       555       3,571       1,885  
    Services     3,961       1,568       8,455       3,490  
    Total other countries     4,007       2,123       12,026       5,375  
    Total                                
    Product sales     31,675       27,286       82,455       76,149  
    Services     12,331       10,993       35,099       31,075  
    Total revenues   $ 44,006     $ 38,279     $ 117,554     $ 107,224  

    NCS MULTISTAGE HOLDINGS, INC.
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
    (In thousands, except per share data)
    (Unaudited)

    Non-GAAP Financial Measures 

    EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Less Share-Based Compensation, Adjusted Net Income (Loss), Adjusted Earnings (Loss) per Diluted Share, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow, Free Cash Flow Less Distributions to Non-Controlling Interest and Net Working Capital (our “non-GAAP financial measures”) are not defined under generally accepted accounting principles (“GAAP”), are not measures of net income (loss), income (loss) from operations, gross profit and gross margin (inclusive of DD&A), cash provided by (used in) operating activities, working capital or any other performance measure derived in accordance with GAAP, and are subject to important limitations. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies in our industry and are not measures of performance calculated in accordance with GAAP. Our non-GAAP financial measures have important limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our financial performance as reported under GAAP, and they should not be considered as alternatives to net income (loss), income (loss) from operations, gross profit, gross margin, cash provided by (used in) operating activities, working capital or any other performance measures derived in accordance with GAAP as measures of operating performance or as alternatives to cash flow from operating activities as measures of our liquidity.

    However, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Less Share-Based Compensation, Adjusted Net Income (Loss), Adjusted Earnings (Loss) per Diluted Share, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow, Free Cash Flow Less Distributions to Non-Controlling Interest and Net Working Capital are key metrics that management uses to assess the period-to-period performance of our core business operations or metrics that enable investors to assess our performance from period to period to evaluate our performance relative to other companies that are not subject to such factors, or who may provide similar non-GAAP measures in their public disclosures.

    The tables below set forth reconciliations of our non-GAAP financial measures to the most directly comparable measures of financial performance calculated under GAAP:

    NET WORKING CAPITAL*

    Net working capital is defined as total current assets, excluding cash and cash equivalents, minus total current liabilities, excluding current maturities of long-term debt. Net working capital excludes cash and cash equivalents and current maturities of long-term debt in order to evaluate the investments in working capital that we believe are required to support our business. We believe that net working capital is useful in analyzing the cash flow and working capital needs of the Company, including determining the efficiencies of our operations and our ability to readily convert assets into cash.

        September 30,     December 31,  
        2024     2023  
    Working capital   $ 77,344     $ 71,159  
    Cash and cash equivalents     (15,330 )     (16,720 )
    Current maturities of long term debt     2,111       1,812  
    Net working capital   $ 64,125     $ 56,251  

    _____________________
    *Preliminary

    NCS MULTISTAGE HOLDINGS, INC.
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
    (In thousands, except per share data)
    (Unaudited)

    ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN

    Adjusted gross profit is defined as total revenues minus cost of sales, exclusive of depreciation and amortization expense, which we present as a separate line item in our statement of operations. Adjusted gross margin represents adjusted gross profit as a percentage of total revenues.

        Three Months Ended     Nine Months Ended  
        September 30,     September 30,  
        2024     2023     2024     2023  
    Total revenues   $ 44,006     $ 38,279     $ 117,554     $ 107,224  
    Total cost of sales, exclusive of depreciation and amortization expense     25,474       22,567       69,480       64,509  
    Total depreciation and amortization associated with cost of sales     699       558       1,968       1,601  
    Gross Profit   $ 17,833     $ 15,154     $ 46,106     $ 41,114  
    Gross Margin     41 %     40 %     39 %     38 %
    Exclude total depreciation and amortization associated with cost of sales     (699 )     (558 )     (1,968 )     (1,601 )
    Adjusted Gross Profit   $ 18,532     $ 15,712     $ 48,074     $ 42,715  
    Adjusted Gross Margin     42 %     41 %     41 %     40 %

    ADJUSTED NET INCOME (LOSS) AND ADJUSTED EARNINGS (LOSS) PER DILUTED SHARE

    Adjusted net income (loss) is defined as net income (loss) attributable to NCS Multistage Holdings, Inc. adjusted to exclude certain items which we believe are not reflective of ongoing performance. Adjusted income (loss) per diluted share is defined as adjusted net income (loss) divided by our diluted weighted average common shares outstanding during the relevant period.

        Three Months Ended     Nine Months Ended  
        September 30, 2024     September 30, 2023     September 30, 2024     September 30, 2023  
        Effect on
    Net
    Income    		     Impact
    on Diluted
    Earnings
    Per Share    		     Effect on
    Net
    Income    		     Impact on
    Diluted
    Earnings
    Per Share    		     Effect on
    Net
    Income    		     Impact on
    Diluted
    Earnings
    Per Share    		     Effect on
    Net (Loss)
    Income    		     Impact on
    Diluted
    (Loss)
    Earnings
    Per Share    		  
    Net income (loss) attributable to NCS Multistage Holdings, Inc.   $ 4,147     $ 1.60     $ 4,408     $ 1.77     $ 3,122     $ 1.21     $ (42,792 )   $ (17.33 )
    Adjustments                                                                
    Provision for litigation, net of recoveries (a)     —       —       98       0.04       —       —       42,498       17.21  
    Foreign currency exchange (gain) loss (b)     (262 )     (0.10 )     237       0.10       679       0.26       132       0.06  
    Income tax impact from adjustments (c)     2       —       1       —       (90 )     (0.03 )     303       0.12  
    Adjusted net income attributable to NCS Multistage Holdings, Inc.   $ 3,887     $ 1.50     $ 4,744     $ 1.91     $ 3,711     $ 1.44     $ 141     $ 0.06  

    __________________

    (a) Represents litigation provision primarily associated with a legal matter in Texas for the nine months ended September 30, 2023. In December 2023, we settled the matter where the insurance carrier agreed to pay the mutually-agreed settlement amounts to the plaintiff in January 2024, resulting in no cash payments by NCS.
    (b) Represents realized and unrealized foreign currency exchange gains and losses attributable to NCS Multistage Holdings, Inc. primarily due to movement in the foreign currency exchange rates during the applicable periods.
    (c) Represents income tax impacts based on applicable effective tax rates.

    NCS MULTISTAGE HOLDINGS, INC.
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
    (In thousands)
    (Unaudited)

    EBITDA, ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN, AND ADJUSTED EBITDA LESS SHARE-BASED COMPENSATION

    EBITDA is defined as net income (loss) before interest expense, net, income tax expense and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to exclude certain items which we believe are not reflective of ongoing operating performance or which, in the case of share-based compensation, is non-cash in nature. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of total revenues. Adjusted EBITDA Less Share-Based Compensation is defined as Adjusted EBITDA minus share-based compensation expense. We believe that Adjusted EBITDA is an important measure that excludes costs that management believes do not reflect our ongoing operating performance, legal proceedings for intellectual property as further described below, and certain costs associated with our capital structure. We believe that Adjusted EBITDA Less Share-Based Compensation presents our financial performance in a manner that is comparable to the presentation provided by many of our peers.

    We periodically incur legal costs associated with the assertion of, or defense of, intellectual property, which we exclude from our definition of Adjusted EBITDA and Adjusted EBITDA Less Share-Based Compensation, unless we believe that settlement will occur prior to any material legal spend (included in the table below as “Professional Fees”). Although these costs may recur between periods, depending on legal matters then outstanding or in process, we believe the timing of when these costs are incurred does not typically match the settlement or recoveries associated with such matters, and therefore, can distort our operating results. Similarly, we exclude from Adjusted EBITDA and Adjusted EBITDA Less Share-Based Compensation the one-time settlement or recovery payment associated with these excluded legal matters when realized but would not exclude any go forward royalties or payments, if applicable. We expect to continue to incur these legal costs for current matters under appeal and for any future cases that may go to trial, provided that the amount will vary by period. 

        Three Months Ended     Nine Months Ended  
        September 30,     September 30,  
        2024     2023     2024     2023  
    Net income (loss)   $ 4,704     $ 4,112     $ 4,418     $ (42,960 )
    Income tax (benefit) expense     (35 )     (537 )     722       (287 )
    Interest expense, net     108       27       323       447  
    Depreciation     1,188       1,001       3,395       2,892  
    Amortization     168       168       502       502  
    EBITDA     6,133       4,771       9,360       (39,406 )
    Provision for litigation, net of recoveries (a)     —       98       —       42,498  
    Share-based compensation (b)     651       1,328       2,084       3,285  
    Professional fees (c)     333       (375 )     1,263       1,286  
    Foreign currency exchange (gain) loss (d)     (217 )     157       788       79  
    Severance and other termination benefits (e)     —       671       —       980  
    Other (f)     175       145       573       698  
    Adjusted EBITDA   $ 7,075     $ 6,795     $ 14,068     $ 9,420  
    Adjusted EBITDA Margin     16 %     18 %     12 %     9 %
    Adjusted EBITDA Less Share-Based Compensation   $ 6,424     $ 5,467     $ 11,984     $ 6,135  

    ___________________

    (a) Represents litigation provision primarily associated with a legal matter in Texas. See footnote (a) in the “Adjusted Net Income (Loss) and Adjusted Earnings (Loss) per Diluted Share” table above for more information.
    (b) Represents non-cash compensation charges related to share-based compensation granted to our officers, employees and directors.
    (c) Represents non-capitalizable costs of professional services primarily incurred or reversed in connection with our legal proceedings associated with the assertion of, or defense of, intellectual property as further described above as well as the cost incurred for the evaluation of potential strategic transactions. 
    (d) Represents realized and unrealized foreign currency exchange gains and losses primarily due to movement in the foreign currency exchange rates during the applicable periods.  
    (e) Represents certain expenses associated with consolidations of our tracer diagnostics business operations and Repeat Precision’s manufacturing operations in Mexico.
    (f) Represents the impact of a research and development subsidy that is included in income tax expense in accordance with GAAP along with other charges and credits.

    NCS MULTISTAGE HOLDINGS, INC.
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
    (In thousands)
    (Unaudited)

    FREE CASH FLOW AND FREE CASH FLOW LESS DISTRIBUTIONS TO NON-CONTROLLING INTEREST

    Free cash flow is defined as net cash provided by (used in) operating activities less purchases of property and equipment (inclusive of the purchase and development of software and technology) plus proceeds from sales of property and equipment, as presented in our consolidated statement of cash flows. We define free cash flow less distributions to non-controlling interest as free cash flow less amounts reported in the financing activities section of the statement of cash flows as distributions to non-controlling interest. We believe free cash flow is useful because it provides information to investors regarding the cash that was available in the period that was in excess of our needs to fund our capital expenditures and other investment needs. We believe that free cash flow less distributions to non-controlling interest is useful because it provides information to investors regarding the cash that was available in the period that was in excess of our needs to fund our capital expenditures, other investment needs, and cash distributions to our joint venture partner.

        Nine Months Ended  
        September 30,  
        2024     2023  
    Net cash provided by (used in) operating activities   $ 2,082     $ (1,446 )
    Purchases of property and equipment     (1,083 )     (1,704 )
    Purchase and development of software and technology     (70 )     (263 )
    Proceeds from sales of property and equipment     421       454  
    Free cash flow   $ 1,350     $ (2,959 )
    Distributions to non-controlling interest     (1,000 )     —  
    Free cash flow less distributions to non-controlling interest   $ 350     $ (2,959 )

    The MIL Network –

  • MIL-OSI: Altair Signs Definitive Agreement with Siemens to be Acquired for $10.6 Billion

    Source: GlobeNewswire (MIL-OSI)

    TROY, Mich., Oct. 30, 2024 (GLOBE NEWSWIRE) — Altair (Nasdaq: ALTR), a global leader in computational intelligence, today announced that it has entered into a definitive agreement to be acquired by Siemens, a leading technology company focused on industry, infrastructure, mobility, and healthcare. Altair stockholders will receive $113.00 per share in cash, representing an equity value of approximately $10.6 billion.  The $113.00 per share cash consideration represents a 19% premium to the closing price of Altair common stock on October 21, 2024, the last trading day prior to media speculation regarding a potential transaction, and a 13% premium to Altair’s unaffected all-time high closing price.

    “This acquisition represents the culmination of nearly 40 years in which Altair has grown from a startup in Detroit to a world-class software and technology company. We have added thousands of customers globally in manufacturing, life sciences, energy and financial services, and built an amazing workforce, and innovative culture,” said James Scapa, Altair’s founder and CEO. “We believe this combination of two strongly complementary leaders in the engineering software space brings together Altair’s broad portfolio in simulation, data science, and HPC with Siemens’ strong position in mechanical and EDA design.  Siemens’ outstanding technology, strategic customer relationships, and honest, technical culture is an excellent fit for Altair to continue its journey driving innovation with computational intelligence.”

    “Acquiring Altair marks a significant milestone for Siemens. This strategic investment aligns with our commitment to accelerate the digital and sustainability transformations of our customers by combining the real and digital worlds. The addition of Altair’s capabilities in simulation, high performance computing, data science, and artificial intelligence together with Siemens Xcelerator will create the world’s most complete AI-powered design and simulation portfolio,” said Roland Busch, President and CEO of Siemens AG. “It is a logical next step: we have been building our leadership in industrial software for the last 15 years, most recently, democratizing the benefits of data and AI for entire industries.”

    Approvals and Timing

    The transaction, which was unanimously approved by the Altair Board of Directors, is expected to close in the second half of 2025, following the receipt of regulatory approvals, Altair stockholder approval and the satisfaction of customary closing conditions. Upon completion of the transaction, Altair’s common stock will no longer be listed on any public stock exchange.

    Third Quarter 2024 Financial Results

    In a separate press release, Altair today announced its third quarter fiscal year 2024 financial results.  The press release is available on the Investor Relations section of the Company’s website.  In light of the announced transaction with Siemens, Altair has cancelled its earnings conference call previously scheduled for 5:00 p.m. ET / 2:00 p.m. PT this afternoon, October 30, 2024.

    Advisors

    Citi and J.P. Morgan Securities LLC are serving as financial advisors to Altair, and Davis Polk & Wardwell LLP and Lowenstein Sandler LLP are serving as the Company’s legal advisors.  

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

    About Siemens

    Siemens AG (Berlin and Munich) is a leading technology company focused on industry, infrastructure, mobility, and healthcare. The company’s purpose is to create technology to transform the everyday, for everyone. By combining the real and the digital worlds, Siemens empowers customers to accelerate their digital and sustainability transformations, making factories more efficient, cities more livable, and transportation more sustainable. Siemens also owns a majority stake in the publicly listed company, Siemens Healthineers, a leading global medical technology provider shaping the future of healthcare. In fiscal 2023, which ended on September 30, 2023, the Siemens Group generated revenue of €74.9 billion and net income of €8.5 billion. As of September 30, 2023, the company employed around 305,000 people worldwide on the basis of continuing operations. Further information is available on the Internet at www.siemens.com.

    Important Information and Where to Find It

    This communication relates to a proposed transaction between Altair and Siemens Industry Software Inc. (“Parent”). In connection with this proposed transaction, Altair will file a Current Report on Form 8-K with further information regarding the terms and conditions contained in the definitive transaction agreements and a proxy statement on Schedule 14A or other documents with the United States Securities and Exchange Commission (the “SEC”). This communication is not a substitute for any proxy statement or other document that Altair may file with the SEC in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF ALTAIR ARE URGED TO READ THE PROXY STATEMENT, INCLUDING THE DOCUMENTS INCORPORATED BY REFERENCE INTO THE PROXY STATEMENT, AND OTHER DOCUMENTS THAT MAY BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The definitive proxy statement, when available, will be mailed to stockholders of Altair as applicable. Investors and security holders will be able to obtain free copies of these documents, when available, and other documents filed with the SEC by Altair through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by Altair will be available free of charge on Altairs internet website at https://investor.altair.com or by contacting Altair’s primary investor relations contact by email at ir@altair.com or by phone at (248) 614-2400.

    Participants in Solicitation

    Altair, Parent, Siemens AG, their respective directors and certain of their respective executive officers may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information about the directors and executive officers of Altair, their ownership of Altair common shares, and Altair’s transactions with related persons is set forth in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 22, 2024 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001701732/000095017024018804/altr-20231231.htm), in its proxy statement on Schedule 14A for its 2024 Annual Meeting of Stockholders in the sections entitled “Corporate Governance Matters,” “Security Ownership of Certain Beneficial Owners and Management” and “Transactions with Related Persons”, which was filed with the SEC on April 5, 2024 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001701732/000119312524087903/d722499ddef14a.htm), certain of its Quarterly Reports on Form 10-Q and certain of its Current Reports on Form 8-K.

    These documents can be obtained free of charge from the sources indicated above. Additional information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials to be filed with the SEC when they become available.

    No Offer or Solicitation

    This communication is for informational purposes only and is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

    Forward Looking Statements

    This communication contains “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. Any statements contained in this communication that are not statements of historical fact, including statements regarding the proposed transaction, including the expected timing and closing of the proposed transaction; Altair’s ability to consummate the proposed transaction; the expected benefits of the proposed transaction and other considerations taken into account by the Altair Board of Directors in approving the proposed transaction; the amounts to be received by stockholders and expectations for Altair prior to and following the closing of the proposed transaction, may be deemed to be forward-looking statements. All such forward-looking statements are intended to provide management’s current expectations for the future of Altair based on current expectations and assumptions relating to Altair’s business, the economy and other future conditions. Forward-looking statements generally can be identified through the use of words such as “believes,” “anticipates,” “may,” “should,” “will,” “plans,” “projects,” “expects,” “expectations,” “estimates,” “forecasts,” “predicts,” “targets,” “prospects,” “strategy,” “signs,” and other words of similar meaning in connection with the discussion of future performance, plans, actions or events. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. Such risks and uncertainties include, among others: (i) the timing to consummate the proposed transaction, (ii) the risk that a condition of closing of the proposed transaction may not be satisfied or that the closing of the proposed transaction might otherwise not occur, (iii) the risk that a regulatory approval that may be required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated, (iv) the diversion of management time on transaction-related issues, (v) risks related to disruption of management time from ongoing business operations due to the proposed transaction, (vi) the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the common stock of Altair, (vii) the risk that the proposed transaction and its announcement could have an adverse effect on the ability of Altair to retain customers and retain and hire key personnel and maintain relationships with its suppliers and customers, (viii) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the Merger Agreement, dated October 30, 2024, with Siemens (the “Merger Agreement”), including in circumstances requiring Altair to pay a termination fee, (ix) the risk that competing offers will be made; (x) unexpected costs, charges or expenses resulting from the merger, (xi) potential litigation relating to the merger that could be instituted against the parties to the Merger Agreement or their respective directors, managers or officers, including the effects of any outcomes related thereto, (xii) worldwide economic or political changes that affect the markets that Altair’s businesses serve which could have an effect on demand for Altair’s products and impact Altair’s profitability and (xiii) disruptions in the global credit and financial markets, including diminished liquidity and credit availability, changes in international trade agreements, including tariffs and trade restrictions, cyber-security vulnerabilities, foreign currency volatility, swings in consumer confidence and spending, raw material pricing and supply issues, retention of key employees, increases in fuel prices, and outcomes of legal proceedings, claims and investigations. Accordingly, actual results may differ materially from those contemplated by these forward-looking statements. Investors, therefore, are cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in Altair’s filings with the SEC, including the risks and uncertainties identified in Part I, Item 1A – Risk Factors of Altair’s Annual Report on Form 10-K for the year ended December 31, 2023 and in Altair’s other filings with the SEC. The list of factors is not intended to be exhaustive.

    These forward-looking statements speak only as of the date of this communication, and Altair does not assume any obligation to update or revise any forward-looking statement made in this communication or that may from time to time be made by or on behalf of Altair.

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

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

    The MIL Network –

  • MIL-OSI: Altair Announces Third Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    TROY, Mich., Oct. 30, 2024 (GLOBE NEWSWIRE) — Altair (Nasdaq: ALTR), today released its financial results for the third quarter and nine months ended September 30, 2024.

    Immediately prior to the dissemination of this press release, Altair issued a press release announcing that it has entered into a merger agreement with a subsidiary of Siemens pursuant to which Altair will be acquired and stockholders of Altair will receive cash merger consideration as more fully described in that press release.

    Third Quarter 2024 Financial Results

    • Software revenue was $138.7 million compared to $119.1 million for the third quarter of 2023, an increase of 16.5% in reported currency and 16.2% in constant currency
    • Total revenue was $151.5 million compared to $134.0 million for the third quarter of 2023, an increase of 13.0% in reported currency and 12.8% in constant currency
    • Net income was $1.8 million compared to a net loss of $(4.4) million for the third quarter of 2023, an improvement in earnings of $6.2 million. Net income per share, diluted was $0.02 based on 88.4 million diluted weighted average common shares outstanding, compared to net loss per share, diluted of $(0.05) for the third quarter of 2023, based on 80.4 million diluted weighted average common shares outstanding. Net income margin was 1.2% compared to net loss margin of (3.3)% for the third quarter of 2023
    • Non-GAAP net income was $21.2 million, compared to non-GAAP net income of $12.7 million for the third quarter of 2023, an increase of $8.5 million. Non-GAAP net income per share, diluted was $0.24 based on 88.4 million non-GAAP diluted common shares outstanding, compared to non-GAAP net income per share, diluted of $0.15 for the third quarter of 2023, based on 85.3 million non-GAAP diluted common shares outstanding
    • Adjusted EBITDA was $25.7 million compared to $15.5 million for the third quarter of 2023, an increase of 66.3% Adjusted EBITDA margin was 17.0% compared to 11.5% for the third quarter of 2023
    • Cash provided by operating activities was $14.5 million, compared to $16.4 million for the third quarter of 2023
    • Free cash flow was $9.8 million, compared to $14.7 million for the third quarter of 2023.

    Conference Call Information

    In light of the proposed transaction with Siemens, Altair is suspending quarterly financial results conference calls and its quarterly and annual guidance.

    Non-GAAP Financial Measures

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

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

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

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

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

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

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

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

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

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

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

    About Altair

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

    Important Information and Where to Find It

    This communication relates to a proposed transaction between Altair and Siemens Industry Software Inc. (“Parent”). In connection with this proposed transaction, Altair will file a Current Report on Form 8-K with further information regarding the terms and conditions contained in the definitive transaction agreements and a proxy statement on Schedule 14A or other documents with the United States Securities and Exchange Commission (the “SEC”). This communication is not a substitute for any proxy statement or other document that Altair may file with the SEC in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF ALTAIR ARE URGED TO READ THE PROXY STATEMENT, INCLUDING THE DOCUMENTS INCORPORATED BY REFERENCE INTO THE PROXY STATEMENT, AND OTHER DOCUMENTS THAT MAY BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The definitive proxy statement, when available, will be mailed to stockholders of Altair as applicable. Investors and security holders will be able to obtain free copies of these documents, when available, and other documents filed with the SEC by Altair through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by Altair will be available free of charge on Altair’s internet website at https://investor.altair.com or by contacting Altair’s primary investor relations contact by email at ir@altair.com or by phone at (248) 614-2400.

    Participants in Solicitation

    Altair, Parent, Siemens AG, their respective directors and certain of their respective executive officers may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information about the directors and executive officers of Altair, their ownership of Altair common shares, and Altair’s transactions with related persons is set forth in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 22, 2024 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001701732/000095017024018804/altr-20231231.htm), in its proxy statement on Schedule 14A for its 2024 Annual Meeting of Stockholders in the sections entitled “Corporate Governance Matters,” “Security Ownership of Certain Beneficial Owners and Management” and “Transactions with Related Persons”, which was filed with the SEC on April 5, 2024 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001701732/000119312524087903/d722499ddef14a.htm), certain of its Quarterly Reports on Form 10-Q and certain of its Current Reports on Form 8-K.

    These documents can be obtained free of charge from the sources indicated above. Additional information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials to be filed with the SEC when they become available.

    No Offer or Solicitation

    This communication is for informational purposes only and is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

    Forward-Looking Statements

    This communication contains “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. Any statements contained in this communication that are not statements of historical fact, including statements regarding the proposed transaction, including the expected timing and closing of the proposed transaction; Altair’s ability to consummate the proposed transaction; the expected benefits of the proposed transaction and other considerations taken into account by the Altair Board of Directors in approving the proposed transaction; the amounts to be received by stockholders and expectations for Altair prior to and following the closing of the proposed transaction, may be deemed to be forward-looking statements. All such forward-looking statements are intended to provide management’s current expectations for the future of Altair based on current expectations and assumptions relating to Altair’s business, the economy and other future conditions. Forward-looking statements generally can be identified through the use of words such as “believes,” “anticipates,” “may,” “should,” “will,” “plans,” “projects,” “expects,” “expectations,” “estimates,” “forecasts,” “predicts,” “targets,” “prospects,” “strategy,” “signs,” and other words of similar meaning in connection with the discussion of future performance, plans, actions or events. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. Such risks and uncertainties include, among others: (i) the timing to consummate the proposed transaction, (ii) the risk that a condition of closing of the proposed transaction may not be satisfied or that the closing of the proposed transaction might otherwise not occur, (iii) the risk that a regulatory approval that may be required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated, (iv) the diversion of management time on transaction-related issues, (v) risks related to disruption of management time from ongoing business operations due to the proposed transaction, (vi) the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the common stock of Altair, (vii) the risk that the proposed transaction and its announcement could have an adverse effect on the ability of Altair to retain customers and retain and hire key personnel and maintain relationships with its suppliers and customers, (viii) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the Merger Agreement, dated October 30, 2024, with Siemens (the “Merger Agreement”), including in circumstances requiring Altair to pay a termination fee, (ix) the risk that competing offers will be made; (x) unexpected costs, charges or expenses resulting from the merger, (xi) potential litigation relating to the merger that could be instituted against the parties to the Merger Agreement or their respective directors, managers or officers, including the effects of any outcomes related thereto, (xii) worldwide economic or political changes that affect the markets that Altair’s businesses serve which could have an effect on demand for Altair’s products and impact Altair’s profitability and (xiii) disruptions in the global credit and financial markets, including diminished liquidity and credit availability, changes in international trade agreements, including tariffs and trade restrictions, cyber-security vulnerabilities, foreign currency volatility, swings in consumer confidence and spending, raw material pricing and supply issues, retention of key employees, increases in fuel prices, and outcomes of legal proceedings, claims and investigations. Accordingly, actual results may differ materially from those contemplated by these forward-looking statements. Investors, therefore, are cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in Altair’s filings with the SEC, including the risks and uncertainties identified in Part I, Item 1A – Risk Factors of Altair’s Annual Report on Form 10-K for the year ended December 31, 2023 and in Altair’s other filings with the SEC. The list of factors is not intended to be exhaustive.

    These forward-looking statements speak only as of the date of this communication, and Altair does not assume any obligation to update or revise any forward-looking statement made in this communication or that may from time to time be made by or on behalf of Altair.

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

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

    ALTAIR ENGINEERING INC. AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS    		  
       
      September 30, 2024     December 31, 2023    
    (In thousands) (Unaudited)            
    ASSETS                
    CURRENT ASSETS:                
    Cash and cash equivalents $ 513,371     $ 467,459    
    Accounts receivable, net   121,345       190,461    
    Income tax receivable   20,794       16,650    
    Prepaid expenses and other current assets   31,489       26,053    
      Total current assets   686,999       700,623    
    Property and equipment, net   40,908       39,803    
    Operating lease right of use assets   31,856       30,759    
    Goodwill   476,209       458,125    
    Other intangible assets, net   84,904       83,550    
    Deferred tax assets   9,661       9,955    
    Other long-term assets   47,331       40,678    
    TOTAL ASSETS $ 1,377,868     $ 1,363,493    
    LIABILITIES AND STOCKHOLDERS’ EQUITY                
    CURRENT LIABILITIES:                
    Accounts payable $ 3,607     $ 8,995    
    Accrued compensation and benefits   43,497       45,081    
    Current portion of operating lease liabilities   8,212       8,825    
    Other accrued expenses and current liabilities   40,267       48,398    
    Deferred revenue   114,525       131,356    
    Current portion of convertible senior notes, net   —       81,455    
      Total current liabilities   210,108       324,110    
    Convertible senior notes, net   226,812       225,929    
    Operating lease liabilities, net of current portion   24,484       22,625    
    Deferred revenue, non-current   26,310       32,347    
    Other long-term liabilities   53,254       47,151    
    TOTAL LIABILITIES   540,968       652,162    
    Commitments and contingencies                
    STOCKHOLDERS’ EQUITY:                
    Preferred stock ($0.0001 par value), authorized 45,000 shares, none issued and outstanding   —       —    
    Common stock ($0.0001 par value)                
    Class A common stock, authorized 513,797 shares, issued and outstanding 59,518
      and 55,240 shares as of September 30, 2024, and December 31, 2023, respectively    		   5       5    
    Class B common stock, authorized 41,203 shares, issued and outstanding 25,432
      and 26,814 shares as of September 30, 2024, and December 31, 2023, respectively    		   3       3    
    Additional paid-in capital   971,835       864,135    
    Accumulated deficit   (117,324 )     (130,503 )  
    Accumulated other comprehensive loss   (17,619 )     (22,309 )  
    TOTAL STOCKHOLDERS’ EQUITY   836,900       711,331    
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,377,868     $ 1,363,493    
       
    ALTAIR ENGINEERING INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)    		  
       
      Three Months Ended
    September 30,    		     Nine Months Ended
    September 30,    		    
    (in thousands, except per share data) 2024     2023     2024     2023    
    Revenue                                
    License $ 92,939     $ 79,825     $ 303,345     $ 279,972    
    Maintenance and other services   45,733       39,252       129,179       114,069    
    Total software   138,672       119,077       432,524       394,041    
    Engineering services and other   12,778       14,926       40,633       47,157    
    Total revenue   151,450       134,003       473,157       441,198    
    Cost of revenue                                
    License   2,795       3,083       10,437       11,888    
    Maintenance and other services   16,045       13,689       46,410       41,754    
    Total software *   18,840       16,772       56,847       53,642    
    Engineering services and other   11,175       12,314       34,577       38,976    
    Total cost of revenue   30,015       29,086       91,424       92,618    
    Gross profit   121,435       104,917       381,733       348,580    
    Operating expenses:                                
    Research and development *   56,111       51,598       164,014       160,126    
    Sales and marketing *   45,559       44,069       136,468       132,543    
    General and administrative *   17,500       17,218       54,555       53,791    
    Amortization of intangible assets   9,246       7,704       24,313       23,143    
    Other operating (income) expense, net   (2,669 )     (4,408 )     (4,337 )     1,324    
    Total operating expenses   125,747       116,181       375,013       370,927    
    Operating (loss) income   (4,312 )     (11,264 )     6,720       (22,347 )  
    Interest expense   1,317       1,529       4,497       4,583    
    Other income, net   (10,758 )     (1,890 )     (20,465 )     (9,698 )  
    Income (loss) before income taxes   5,129       (10,903 )     22,688       (17,232 )  
    Income tax expense (benefit)   3,350       (6,541 )     9,509       11,369    
    Net income (loss) $ 1,779     $ (4,362 )   $ 13,179     $ (28,601 )  
    Earnings (loss) per share, basic                                
    Earnings (loss) per share $ 0.02     $ (0.05 )   $ 0.16     $ (0.36 )  
    Weighted average shares   84,835       80,431       83,680       80,204    
    Earnings (loss) per share, diluted                                
    Earnings (loss) per share $ 0.02     $ (0.05 )   $ 0.15     $ (0.36 )  
    Weighted average shares   88,425       80,431       87,854       80,204    
       

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

      (Unaudited)    
      Three Months Ended
    September 30,    		     Nine Months Ended
    September 30,    		    
    (in thousands) 2024     2023     2024     2023    
    Cost of revenue – software $ 2,131     $ 2,468     $ 6,230     $ 7,792    
    Research and development   6,378       7,824       19,356       26,510    
    Sales and marketing   5,176       6,933       14,675       22,105    
    General and administrative   3,671       3,301       10,449       10,016    
    Total stock-based compensation expense $ 17,356     $ 20,526     $ 50,710     $ 66,423    
       
    ALTAIR ENGINEERING INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOW
    (Unaudited)    		  
       
      Nine Months Ended
    September 30,    		    
    (In thousands) 2024     2023    
    OPERATING ACTIVITIES:                
    Net income (loss) $ 13,179     $ (28,601 )  
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:                
     Depreciation and amortization   31,120       29,271    
     Stock-based compensation expense   50,710       66,423    
     Deferred income taxes   (114 )     2,178    
     Loss on mark-to-market adjustment of contingent consideration   189       4,494    
     Other, net   1,520       1,385    
    Changes in assets and liabilities:                
     Accounts receivable, net   72,916       47,226    
     Prepaid expenses and other current assets   (7,895 )     959    
     Other long-term assets   408       (1,491 )  
     Accounts payable   (5,416 )     (5,494 )  
     Accrued compensation and benefits   (1,977 )     (2,726 )  
     Other accrued expenses and current liabilities   (12,261 )     (4,526 )  
     Deferred revenue   (25,825 )     (3,442 )  
          Net cash provided by operating activities   116,554       105,656    
    INVESTING ACTIVITIES:                
    Payments for acquisition of businesses, net of cash acquired   (25,575 )     (3,235 )  
    Capital expenditures   (9,739 )     (7,882 )  
    Other investing activities, net   (5,036 )     (2,452 )  
          Net cash used in investing activities   (40,350 )     (13,569 )  
    FINANCING ACTIVITIES:                
    Settlement of convertible senior notes   (81,729 )     —    
    Proceeds from the exercise of common stock options   43,721       25,526    
    Proceeds from employee stock purchase plan contributions   7,112       5,772    
    Payments for repurchase and retirement of common stock   —       (6,255 )  
    Other financing activities   —       (73 )  
          Net cash (used in) provided by financing activities   (30,896 )     24,970    
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   554       (2,599 )  
    Net increase in cash, cash equivalents and restricted cash   45,862       114,458    
    Cash, cash equivalents and restricted cash at beginning of year   467,576       316,958    
    Cash, cash equivalents and restricted cash at end of period $ 513,438     $ 431,416    
       

    Change in Presentation of Revenue and Cost of Revenue

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

    Financial Results

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

        (Unaudited)    
        Three Months Ended
    September 30,    		     Nine Months Ended
    September 30,    		    
    (in thousands, except per share amounts) 2024     2023     2024     2023    
    Net income (loss) $ 1,779     $ (4,362 )   $ 13,179     $ (28,601 )  
    Stock-based compensation expense   17,356       20,526       50,710       66,423    
    Amortization of intangible assets   9,246       7,704       24,313       23,143    
    Non-cash interest expense   310       469       1,204       1,399    
    Impact of non-GAAP tax rate (1)   (3,721 )     (10,997 )     (14,564 )     (8,897 )  
    Special adjustments and other (2)   (3,756 )     (658 )     (2,622 )     4,212    
      Non-GAAP net income $ 21,214     $ 12,682     $ 72,220     $ 57,679    
                                       
    Net income (loss) per share, diluted $ 0.02     $ (0.05 )   $ 0.15     $ (0.36 )  
    Non-GAAP net income per share, diluted $ 0.24     $ 0.15     $ 0.82     $ 0.68    
                                       
    GAAP diluted shares outstanding   88,425       80,431       87,854       80,204    
    Non-GAAP diluted shares outstanding   88,425       85,347       87,854       84,857    
                                       
    (1) For the three and nine months ended September 30, 2024, the Company used a non-GAAP effective tax rate of 25%. For the three and nine months ended September 30, 2023, the Company used a non-GAAP effective tax rate of 26%.  
    (2) The three months ended September 30, 2024, includes $3.8 million of currency gains on acquisition-related intercompany loans. The three months ended September 30, 2023, includes a $3.5 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition and $2.8 million of currency losses on acquisition-related intercompany loans. The nine months ended September 30, 2024, includes $2.8 million of currency gains on acquisition-related intercompany loans, and a $0.2 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition. The nine months ended September 30, 2023, includes a $4.5 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition and $0.3 million of currency gains on acquisition-related intercompany loans.  
         

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

        (Unaudited)    
        Three Months Ended
    September 30,    		     Nine Months Ended
    September 30,    		    
    (in thousands) 2024     2023     2024     2023    
    Net income (loss) $ 1,779     $ (4,362 )   $ 13,179     $ (28,601 )  
    Income tax (benefit) expense   3,350       (6,541 )     9,509       11,369    
    Stock-based compensation expense   17,356       20,526       50,710       66,423    
    Interest expense   1,317       1,529       4,497       4,583    
    Depreciation and amortization   11,563       9,783       31,120       29,271    
    Special adjustments, interest income and other (1)   (9,660 )     (5,481 )     (20,144 )     (7,480 )  
      Adjusted EBITDA $ 25,705     $ 15,454     $ 88,871     $ 75,565    
         
    (1) The three months ended September 30, 2024, includes $5.9 million of interest income and $3.8 million of currency gains on acquisition-related intercompany loans. The three months ended September 30, 2023, includes $4.8 million of interest income, a $3.5 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, and $2.8 million currency losses on acquisition-related intercompany loans. The nine months ended September 30, 2024, includes $17.5 million of interest income, $2.8 million of currency gains on acquisition-related intercompany loans, and a $0.2 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition. The nine months ended September 30, 2023, includes $11.7 million of interest income, a $4.5 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, and $0.3 million currency gains on acquisition-related intercompany loans.  
         

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

      (Unaudited)    
      Three Months Ended
    September 30,    		     Nine Months Ended
    September 30,    		    
    (in thousands) 2024     2023     2024     2023    
    Net cash provided by operating activities $ 14,547     $ 16,427     $ 116,554     $ 105,656    
    Capital expenditures   (4,735 )     (1,698 )     (9,739 )     (7,882 )  
    Free cash flow $ 9,812     $ 14,729     $ 106,815     $ 97,774    
       

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

      (Unaudited)    
      Three Months Ended
    September 30,    		     Nine Months Ended
    September 30,    		    
    (in thousands) 2024     2023     2024     2023    
    Gross profit $ 121,435     $ 104,917     $ 381,733     $ 348,580    
    Stock-based compensation expense   2,131       2,468       6,230       7,792    
    Non-GAAP gross profit $ 123,566     $ 107,385     $ 387,963     $ 356,372    
                                     
    Gross profit margin   80.2 %     78.3 %     80.7 %     79.0 %  
    Non-GAAP gross margin   81.6 %     80.1 %     82.0 %     80.8 %  
       

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

      (Unaudited)    
      Three Months Ended
    September 30,    		     Nine Months Ended
    September 30,    		    
    (in thousands) 2024     2023     2024     2023    
    Total operating expense $ 125,747     $ 116,181     $ 375,013     $ 370,927    
    Stock-based compensation expense   (15,225 )     (18,058 )     (44,480 )     (58,631 )  
    Amortization   (9,246 )     (7,704 )     (24,313 )     (23,143 )  
    Loss on mark-to-market adjustment of
         contingent consideration    		   —       3,493       (189 )     (4,494 )  
    Non-GAAP operating expense $ 101,276     $ 93,912     $ 306,031     $ 284,659    
       

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

        Three Months Ended
    September 30,    		     Nine Months Ended
    September 30,    		    
        2024     2023     2024     2023    
    Numerator:                                
      Non-GAAP net income $ 21,214     $ 12,682     $ 72,220     $ 57,679    
      Interest expense related to convertible notes, net of tax (1)   —       —       —       —    
      Numerator for non-GAAP diluted income per share $ 21,214     $ 12,682     $ 72,220     $ 57,679    
    Denominator:                                
      Weighted average shares outstanding, basic   84,835       80,431       83,680       80,204    
      Effect of dilutive shares   3,590       4,916       4,174       4,653    
      Non-GAAP diluted shares outstanding   88,425       85,347       87,854       84,857    
    Non-GAAP net income per share, diluted $ 0.24     $ 0.15     $ 0.82     $ 0.68    
                                       
    (1) Interest expense related to the convertible notes has been excluded from the numerator for non-GAAP diluted earnings per share because its effect would have been anti-dilutive.                 
       

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

      (Unaudited)    
      Three Months Ended
    September 30,    		     Nine Months Ended
    September 30,    		    
    (in thousands) 2024     2023     2024     2023    
    Revenue $ 151,450     $ 134,003     $ 473,157     $ 441,198    
    Ending deferred revenue   140,835       138,933       140,835       138,933    
    Beginning deferred revenue   (152,184 )     (148,547 )     (163,703 )     (144,460 )  
    Deferred revenue acquired   (253 )     —       (1,825 )     —    
    Billings $ 139,848     $ 124,389     $ 448,464     $ 435,671    
       

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

      (Unaudited)    
      Three Months Ended
    September 30, 2024    		     Three Months Ended
    September 30, 2023    		     Increase/
    (Decrease) %    		    
    (in thousands) As reported     Currency
    changes    		     As adjusted for
    constant
    currency    		     As reported     As reported     As adjusted for
    constant
    currency    		    
    Software revenue $ 138.7     $ (0.3 )   $ 138.4     $ 119.1       16.5 %     16.2 %  
    Total revenue $ 151.5     $ (0.4 )   $ 151.1     $ 134.0       13.0 %     12.8 %  
    Billings $ 139.8     $ (0.1 )   $ 139.7     $ 124.4       12.4 %     12.3 %  
    Adjusted EBITDA $ 25.7     $ (0.1 )   $ 25.6     $ 15.5       66.3 %     65.5 %  
       
     
      Nine Months Ended
    September 30, 2024    		     Nine Months Ended
    September 30, 2023    		     Increase/
    (Decrease) %    		    
    (in thousands) As reported     Currency
    changes    		     As adjusted for
    constant
    currency    		     As reported     As reported     As adjusted for
    constant
    currency    		    
    Software revenue $ 432.5     $ 4.4     $ 436.9     $ 394.0       9.8 %     10.9 %  
    Total revenue $ 473.2     $ 4.6     $ 477.8     $ 441.2       7.2 %     8.3 %  
    Billings $ 448.5     $ 4.5     $ 453.0     $ 435.7       2.9 %     4.0 %  
    Adjusted EBITDA $ 88.9     $ 3.3     $ 92.2     $ 75.6       17.6 %     22.0 %  

    The MIL Network –

  • MIL-OSI Economics: Microsoft Cloud strength drives first quarter results

    Source: Microsoft

    Headline: Microsoft Cloud strength drives first quarter results

    Microsoft Cloud Strength Drives First Quarter Results

    REDMOND, Wash. — October 30, 2024 — Microsoft Corp. today announced the following results for the quarter ended September 30, 2024, as compared to the corresponding period of last fiscal year:

    ·        Revenue was $65.6 billion and increased 16%

    ·        Operating income was $30.6 billion and increased 14%

    ·        Net income was $24.7 billion and increased 11% (up 10% in constant currency)

    ·        Diluted earnings per share was $3.30 and increased 10%

    “AI-driven transformation is changing work, work artifacts, and workflow across every role, function, and business process,” said Satya Nadella, chairman and chief executive officer of Microsoft. “We are expanding our opportunity and winning new customers as we help them apply our AI platforms and tools to drive new growth and operating leverage.”

    “Strong execution by our sales teams and partners delivered a solid start to our fiscal year with Microsoft Cloud revenue of $38.9 billion, up 22% year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

    Business Highlights

    Revenue in Productivity and Business Processes was $28.3 billion and increased 12% (up 13% in constant currency), with the following business highlights:

    ·        Microsoft 365 Commercial products and cloud services revenue increased 13% (up 14% in constant currency) driven by Microsoft 365 Commercial cloud revenue growth of 15% (up 16% in constant currency)

    ·        Microsoft 365 Consumer products and cloud services revenue increased 5% (up 6% in constant currency) driven by Microsoft 365 Consumer cloud revenue growth of 6% (up 7% in constant currency)

    ·        LinkedIn revenue increased 10% (up 9% in constant currency)

    ·        Dynamics products and cloud services revenue increased 14% driven by Dynamics 365 revenue growth of 18% (up 19% in constant currency)

    Revenue in Intelligent Cloud was $24.1 billion and increased 20% (up 21% in constant currency), with the following business highlights:

    ·        Server products and cloud services revenue increased 23% driven by Azure and other cloud services revenue growth of 33% (up 34% in constant currency)

    Revenue in More Personal Computing was $13.2 billion and increased 17%, with the following business highlights:

    ·        Windows OEM and Devices revenue increased 2%

    ·        Xbox content and services revenue increased 61% driven by 53 points of net impact from the Activision acquisition

    ·        Search and news advertising revenue excluding traffic acquisition costs increased 18% (up 19% in constant currency)

    Microsoft returned $9.0 billion to shareholders in the form of dividends and share repurchases in the first quarter of fiscal year 2025.

    Business Outlook

    Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

    Quarterly Highlights, Product Releases, and Enhancements 

    Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.

    Here are the major product releases and other highlights for the quarter, organized by product categories, to help illustrate how we are accelerating innovation across our businesses while expanding our market opportunities.

    Environmental, Social, and Governance (ESG)

    To learn more about Microsoft’s corporate governance and our environmental and social practices, please visit our investor relations Board and ESG website and reporting at Microsoft.com/transparency. 

    Webcast Details

    Satya Nadella, chairman and chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Keith Dolliver, corporate secretary and deputy general counsel, and Brett Iversen, vice president of investor relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on October 30, 2025.

    Constant Currency

    Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding our performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

    Financial Performance Constant Currency Reconciliation

     

    Three Months Ended September 30,

     ($ in millions, except per share amounts)

    Revenue

    Operating Income

    Net Income

    Diluted Earnings per Share

    2023 As Reported (GAAP)

    $56,517

    $26,895

    $22,291

    $2.99

    2024 As Reported (GAAP)

    $65,585

    $30,552

    $24,667

    $3.30

    Percentage Change Y/Y (GAAP)

    16%

    14%

    11%

    10%

    Constant Currency Impact

    $(217)

    $(181)

    $78

    $0.01

    Percentage Change Y/Y Constant Currency

    16%

    14%

    10%

    10%

     

    Segment Revenue Constant Currency Reconciliation

     

    Three Months Ended September 30,

     ($ in millions)

    Productivity and Business Processes

    Intelligent Cloud

    More Personal Computing

    2023 As Reported (GAAP)

    $25,226

    $20,013

    $11,278

    2024 As Reported (GAAP)

    $28,317

    $24,092

    $13,176

    Percentage Change Y/Y (GAAP)

    12%

    20%

    17%

    Constant Currency Impact

    $(128)

    $(72)

    $(17)

    Percentage Change Y/Y Constant Currency

    13%

    21%

    17%

    We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

    Selected Product and Service Revenue Constant Currency Reconciliation        

     

    Three Months Ended September 30, 2024

    Percentage Change Y/Y (GAAP)

    Constant Currency Impact

    Percentage Change Y/Y Constant Currency

    Microsoft Cloud

    22%

    0%

    22%

    Microsoft 365 Commercial products and cloud services

    13%

    1%

    14%

    Microsoft 365 Commercial cloud

    15%

    1%

    16%

    Microsoft 365 Consumer products and cloud services

    5%

    1%

    6%

    Microsoft 365 Consumer cloud

    6%

    1%

    7%

    LinkedIn

    10%

    (1)%

    9%

    Dynamics products and cloud services

    14%

    0%

    14%

    Dynamics 365

    18%

    1%

    19%

    Server products and cloud services

    23%

    0%

    23%

    Azure and other cloud services

    33%

    1%

    34%

    Windows OEM and Devices

    2%

    0%

    2%

    Xbox content and services

    61%

    0%

    61%

    Search and news advertising excluding traffic acquisition costs

    18%

    1%

    19%

     

    About Microsoft

    Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

    Forward-Looking Statements

    Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

    ·        intense competition in all of our markets that may adversely affect our results of operations;

    ·        focus on cloud-based and AI services presenting execution and competitive risks;

    ·        significant investments in products and services that may not achieve expected returns;

    ·        acquisitions, joint ventures, and strategic alliances that may have an adverse effect on our business;

    ·        impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;

    ·        cyberattacks and security vulnerabilities that could lead to reduced revenue, increased costs, liability claims, or harm to our reputation or competitive position;

    ·        disclosure and misuse of personal data that could cause liability and harm to our reputation;

    ·        the possibility that we may not be able to protect information stored in our products and services from use by others;

    ·        abuse of our advertising, professional, marketplace, or gaming platforms that may harm our reputation or user engagement;

    ·        products and services, how they are used by customers, and how third-party products and services interact with them, presenting security, privacy, and execution risks;

    ·        issues about the use of AI in our offerings that may result in reputational or competitive harm, or legal liability;

    ·        excessive outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;

    ·        supply or quality problems;

    ·        government enforcement under competition laws and new market regulation may limit how we design and market our products;

    ·        potential consequences of trade and anti-corruption laws;

    ·        potential consequences of existing and increasing legal and regulatory requirements;

    ·        laws and regulations relating to the handling of personal data that may impede the adoption of our services or result in increased costs, legal claims, fines, or reputational damage;

    ·        claims against us that may result in adverse outcomes in legal disputes;

    ·        uncertainties relating to our business with government customers;

    ·        additional tax liabilities;

    ·        sustainability regulations and expectations that may expose us to increased costs and legal and reputational risk;

    ·        an inability to protect and utilize our intellectual property may harm our business and operating results;

    ·        claims that Microsoft has infringed the intellectual property rights of others;

    ·        damage to our reputation or our brands that may harm our business and results of operations;

    ·        adverse economic or market conditions that may harm our business;

    ·        catastrophic events or geo-political conditions, such as the COVID-19 pandemic, that may disrupt our business;

    ·        exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange and

    ·        the dependence of our business on our ability to attract and retain talented employees.

    For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

    All information in this release is as of September 30, 2024. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

    For more information, press only:

    Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, rrt@we-worldwide.com

    For more information, financial analysts and investors only:

    Brett Iversen, Vice President, Investor Relations, (425) 706-4400

    Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.


     

    MICROSOFT CORPORATION

    INCOME STATEMENTS

    (In millions, except per share amounts) (Unaudited)

    Three Months Ended

     September 30,

     

    2024

    2023

    Revenue:

    Product

     $15,272

     $15,535

    Service and other

    50,313

    40,982

    Total revenue

    65,585

    56,517

    Cost of revenue:

    Product

    3,294

    3,531

    Service and other

    16,805

    12,771

    Total cost of revenue

    20,099

    16,302

    Gross margin

    45,486

    40,215

    Research and development

    7,544

    6,659

    Sales and marketing

    5,717

    5,187

    General and administrative

    1,673

    1,474

    Operating income

    30,552

    26,895

    Other income (expense), net

    (283)

    389

    Income before income taxes

    30,269

    27,284

    Provision for income taxes

    5,602

    4,993

    Net income

     $24,667

     $22,291

    Earnings per share:

    Basic

     $3.32

     $3.00

    Diluted

     $3.30

     $2.99

    Weighted average shares outstanding:

    Basic

    7,433

    7,429

    Diluted

    7,470

    7,462

     


     

    COMPREHENSIVE INCOME STATEMENTS

    (In millions) (Unaudited)

    Three Months Ended

     September 30,

     

    2024

    2023

    Net income

     $24,667

     $22,291

    Other comprehensive income (loss), net of tax:

    Net change related to derivatives

    (10)

    21

    Net change related to investments

    1,114

    (260)

    Translation adjustments and other

    304

    (355)

    Other comprehensive income (loss)

    1,408

    (594)

    Comprehensive income

     $26,075

     $21,697

     


     

    BALANCE SHEETS

    (In millions) (Unaudited)

     

    September 30,

    2024

    June 30,

     2024

    Assets

    Current assets:

    Cash and cash equivalents

     $20,840

     $18,315

    Short-term investments

    57,588

    57,228

    Total cash, cash equivalents, and short-term investments

    78,428

    75,543

    Accounts receivable, net of allowance for doubtful accounts of $647 and $830

    44,148

    56,924

    Inventories

    1,626

    1,246

    Other current assets

    25,724

    26,021

    Total current assets

    149,926

    159,734

    Property and equipment, net of accumulated depreciation of $80,517 and $76,421

    152,863

    135,591

    Operating lease right-of-use assets

    20,528

    18,961

    Equity and other investments

    15,778

    14,600

    Goodwill

    119,374

    119,220

    Intangible assets, net

    26,751

    27,597

    Other long-term assets

    37,793

    36,460

    Total assets

     $523,013

     $512,163

    Liabilities and stockholders’ equity

    Current liabilities:

    Accounts payable

     $22,768

     $21,996

    Short-term debt

    0

    6,693

    Current portion of long-term debt

    2,249

    2,249

    Accrued compensation

    8,326

    12,564

    Short-term income taxes

    9,717

    5,017

    Short-term unearned revenue

    53,026

    57,582

    Other current liabilities

    19,114

    19,185

    Total current liabilities

    115,200

    125,286

    Long-term debt

    42,868

    42,688

    Long-term income taxes

    24,452

    27,931

    Long-term unearned revenue

    2,663

    2,602

    Deferred income taxes

    2,581

    2,618

    Operating lease liabilities

    16,361

    15,497

    Other long-term liabilities

    31,165

    27,064

    Total liabilities

    235,290

    243,686

    Commitments and contingencies

    Stockholders’ equity:

    Common stock and paid-in capital – shares authorized 24,000; outstanding 7,436 and 7,434

    102,976

    100,923

    Retained earnings

    188,929

    173,144

    Accumulated other comprehensive loss

    (4,182)

    (5,590)

    Total stockholders’ equity

    287,723

    268,477

    Total liabilities and stockholders’ equity

     $523,013

     $512,163

     


     

    CASH FLOWS STATEMENTS

    (In millions) (Unaudited)

    Three Months Ended

     September 30,

     

    2024

    2023

    Operations

    Net income

     $24,667

     $22,291

    Adjustments to reconcile net income to net cash from operations:

    Depreciation, amortization, and other

    7,383

    3,921

    Stock-based compensation expense

    2,832

    2,507

    Net recognized losses (gains) on investments and derivatives

    (125)

    14

    Deferred income taxes

    (1,433)

    (568)

    Changes in operating assets and liabilities:

    Accounts receivable

    14,037

    11,034

    Inventories

    (373)

    (505)

    Other current assets

    (82)

    (796)

    Other long-term assets

    (1,761)

    (2,013)

    Accounts payable

    (916)

    1,214

    Unearned revenue

    (5,553)

    (4,126)

    Income taxes

    1,016

    1,425

    Other current liabilities

    (5,479)

    (4,106)

    Other long-term liabilities

    (33)

    291

    Net cash from operations

    34,180

    30,583

    Financing

    Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net

    (5,746)

    18,692

    Proceeds from issuance of debt

    0

    7,073

    Repayments of debt

    (966)

    (1,500)

    Common stock issued

    706

    685

    Common stock repurchased

    (4,107)

    (4,831)

    Common stock cash dividends paid

    (5,574)

    (5,051)

    Other, net

    (889)

    (307)

    Net cash from (used in) financing

    (16,576)

    14,761

    Investing

    Additions to property and equipment

    (14,923)

    (9,917)

    Acquisition of companies, net of cash acquired, and purchases of intangible and other assets

    (1,849)

    (1,186)

    Purchases of investments

    (1,620)

    (8,460)

    Maturities of investments

    2,136

    15,718

    Sales of investments

    1,968

    5,330

    Other, net

    (913)

    (982)

    Net cash from (used in) investing

    (15,201)

    503

    Effect of foreign exchange rates on cash and cash equivalents

    122

    (99)

    Net change in cash and cash equivalents

    2,525

    45,748

    Cash and cash equivalents, beginning of period

    18,315

    34,704

    Cash and cash equivalents, end of period

     $20,840

     $80,452

     


     

    SEGMENT REVENUE AND OPERATING INCOME

    (In millions) (Unaudited)

     

    Three Months Ended

     September 30,

     

     

    2024

    2023

    Revenue

     

     

    Productivity and Business Processes

     $28,317

     $25,226

    Intelligent Cloud

    24,092

    20,013

    More Personal Computing

    13,176

    11,278

    Total

     $65,585

     $56,517

    Operating Income

     

     

    Productivity and Business Processes

     $16,516

     $14,297

    Intelligent Cloud

    10,503

    8,908

    More Personal Computing

    3,533

    3,690

    Total

     $30,552

     $26,895

     

    We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

    MIL OSI Economics –

  • MIL-OSI: North American Construction Group Ltd. Announces Results for the Third Quarter Ended September 30, 2024

    Source: GlobeNewswire (MIL-OSI)

    ACHESON, Alberta, Oct. 30, 2024 (GLOBE NEWSWIRE) — North American Construction Group Ltd. (“NACG”) (TSX:NOA.TO/NYSE:NOA) today announced results for the third quarter ended September 30, 2024. Unless otherwise indicated, financial figures are expressed in Canadian dollars and compared to the prior period ended September 30, 2023.

    Third Quarter 2024 Highlights:

    • Combined revenue of $367.2 million compared favorably to $274.8 million in the same period last year, is a third quarter record, and reflected the best operational quarter to date from the Australian fleet of the MacKellar Group which was acquired on October 1, 2023.
    • Reported revenue of $286.9 million, compared to $196.9 million in the same period last year, was primarily driven by strong equipment utilization of 84% in Australia but was also supported by the Canadian heavy equipment fleet which posted an increase from 2024 Q2.
    • Our net share of revenue from equity consolidated joint ventures was $80.3 million in 2024 Q3 and compared to $77.9 million in the same period last year as the increases at the Fargo project in the current quarter were offset by gold mine project scopes in Northern Ontario completed in the prior quarter.
    • Adjusted EBITDA of $106.4 million and margin of 29.0% compared favorably to the prior period operating metrics of $59.4 million and 21.6%, respectively, as revenue increases resulted in higher gross EBITDA with margin improvements driven by effective operations in Australia and Canada.
    • Combined gross profit of $80.4 million and margin of 21.9% compares favorably to the 13.8% posted in the same period last year as both diversification efforts and effective operations during steady and consistent months contributed to improved margins in the quarter.
    • Cash flows generated from operating activities of $48.2 million was higher than the $37.5 million generated in the prior period as higher cash generation from the strong EBITDA was offset by the temporary impact of changes to working capital in the quarter.
    • Free cash flow generated in the quarter was $10.8 million. Free cash flow prior to working capital changes and increases in capital work in progress was over $55 million resulting from strong revenues and margins offset by our routine capital maintenance programs.
    • Net debt was $882.5 million at September 30, 2024, an increase of $159.1 million from December 31, 2023, as year-to-date free cash flow usage and growth asset purchases required debt financing. The cash-related interest rate was 6.5% driven by Bank of Canada posted rates and corresponding equipment financing rates.
    • On October 29, 2024, the Board of Directors declared a regular quarterly dividend of twelve cents which represents a 20% increase from the previous rate of ten cents per quarter.
    • Additional highlights include: i) in August, signed a $375 million five-year contract for fully maintained equipment fleet in Queensland; ii) in September, surpassed the 50% completion mark at the Fargo-Moorhead flood diversion project, iii) in October, completed delivery to site of twenty-five haul trucks from Canada to Australia; iv) commenced go-live activities for the Company’s ERP system in Australia phased integration ongoing through early November and iv) extended the credit facility agreement through to October 2027.

    Joe Lambert, President and CEO, stated, “I would like to thank our operations team for their safe and efficient performance this quarter. The quarterly records set in Australia demonstrate both growth and operational excellence. The recent five-year contract award and the 25 trucks delivered from Fort McMurray have pushed this region to higher than 50% of our overall business and are further indicators of what will be an exciting 2025. In the oil sands region, we are in discussions with producers and expect to secure meaningful contracts in the near term, reaffirming strong client relationships and supporting our targets for next year.”

    Consolidated Financial Highlights

        Three months ended   Nine months ended
        September 30,   September 30,
    (dollars in thousands, except per share amounts)   2024   2023(iv)   2024   2023(iv)
    Revenue   $ 286,857     $ 196,881     $ 860,197     $ 636,398  
    Total combined revenue(i)     367,155       274,757       1,042,591       875,666  
                     
    Gross profit     65,098       26,518       168,057       89,213  
    Gross profit margin(i)     22.7 %     13.5 %     19.5 %     14.0 %
                     
    Combined gross profit(i)     80,415       38,004       205,229       130,181  
    Combined gross profit margin(i)(ii)     21.9 %     13.8 %     19.7 %     14.9 %
                     
    Operating income     53,805       14,344       130,786       50,386  
                     
    Adjusted EBITDA(i)(iii)     106,384       59,371       286,516       195,827  
    Adjusted EBITDA margin(i)(iii)     29.0 %     21.6 %     27.5 %     22.4 %
                     
    Net income     13,901       11,387       39,277       45,495  
    Adjusted net earnings(i)     31,253       14,295       72,961       52,060  
                     
    Cash provided by operating activities     48,184       37,512       119,063       109,521  
    Cash provided by operating activities prior to change in working capital(i)     79,838       41,666       222,641       134,646  
                     
    Free cash flow(i)     10,785       8,940       (32,518 )     (21,817 )
                     
    Purchase of PPE     61,812       39,295       203,772       114,210  
    Sustaining capital additions(i)     21,127       42,290       118,317       127,792  
    Growth capital additions(i)     21,437       1,727       60,987       4,475  
                     
    Basic net income per share   $ 0.52     $ 0.43     $ 1.47     $ 1.72  
    Adjusted EPS(i)   $ 1.17     $ 0.54     $ 2.73     $ 1.96  

    (i)See “Non-GAAP Financial Measures”.
    (ii)Combined gross profit margin is calculated using combined gross profit over total combined revenue.
    (iii)Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue.
    (iv)The prior year amounts are adjusted to reflect a change in accounting policy. See “Change in significant accounting policy – Basis of presentation”.

        Three months ended   Nine months ended
        September 30,   September 30,
    (dollars in thousands)   2024   2023   2024   2023
    Consolidated Statements of Cash Flows                
    Cash provided by operating activities   $ 48,184     $ 37,512     $ 119,063     $ 109,521  
    Cash used in investing activities     (60,221 )     (26,970 )     (198,919 )     (107,123 )
    Effect of exchange rate on changes in cash     1,385       (1,100 )     508       (1,462 )
    Add back of growth and non-cash items included in the above figures:                
    Growth capital additions(i)(ii)     21,437       1,727       60,987       4,475  
    Capital additions financed by leases(i)     —       (2,229 )     (14,157 )     (27,228 )
    Free cash flow(i)   $ 10,785     $ 8,940     $ (32,518 )   $ (21,817 )

    (i)See “Non-GAAP Financial Measures”.
    (ii)Included above in Cash used in investing activities.

    Declaration of Quarterly Dividend

    On October 29, 2024, the NACG Board of Directors declared a regular quarterly dividend (the “Dividend”) of twelve Canadian cents ($0.12) per common share, payable to common shareholders of record at the close of business on November 27, 2024. The Dividend will be paid on January 3, 2025, and is an eligible dividend for Canadian income tax purposes.

    Financial Results for the Three Months Ended September 30, 2024

    Revenue for 2024 Q3 of $286.9 million represented an increase of approximately $90.0 million (or 46%) from 2023 Q3. The increase is primarily due to the inclusion of results from the MacKellar Group (“MacKellar”) following our acquisition on October 1, 2023.

    The Heavy Equipment – Australia segment showed strong performance, driven by MacKellar’s Q3 results generated from stable operating conditions during the quarter. Equipment utilization of the MacKellar fleet for the quarter of 84% was similar to 2024 Q2 but generated higher revenue as growth assets commissioned late in the second quarter in Western Australia and Queensland provided full quarter contributions. The month of July was particularly strong with utilization being above the target of 85% while August and September averaged 82%. DGI Trading Pty Ltd. (“DGI”) posted lower revenue in the quarter due to timing of large component sales but continues to benefit from international demand for low-cost used components and major parts required by heavy equipment fleets in the mining industry.

    The Heavy Equipment – Canada segment posted a decline in revenue compared to the prior year as equipment utilization was 51% for the quarter in comparison to 56% in 2023 Q3. Quarter over quarter, the decrease in revenue represented a 23% decrease and was primarily driven by changes in work scopes at the Fort Hills and Syncrude mines offset by increases in operating hours at the Millennium mine. Additionally, the prior year’s quarter benefited from higher utilization rates from NACG assets being operated at the gold mine in northern Ontario, a project that concluded in 2023 Q3. When comparing to 2024 Q2, top-line revenue achieved in the quarter was 8% higher on consistent operating conditions from July to September as well as increased work scopes at the Millennium mine.

    Combined revenue of $367.2 million represented a $92.4 million (or 34%) increase from 2023 Q3. Our share of revenue generated in 2024 Q3 by joint ventures and affiliates was $80.3 million, compared to $77.9 million in 2023 Q3. The Fargo-Moorhead flood diversion project, which completed another strong operational quarter, posted a 32% increase from scopes completed in the prior quarter and surpassed the 50% completion mark during the quarter. Mostly offsetting this variance was the completion of the gold mine project in northern Ontario which occurred in 2023 Q3.

    Combined gross profit and margin of $80.4 million and 21.9% compares favorably to the $38.0 million and 13.8% posted in the prior quarter and was the compilation of strong operations across all business lines. In particular, consistent weather conditions in Australia resulted in productive operations and a 24.6% gross margin over the three months. In Canada, heavy equipment operations posted a 19.4% margin as operations stabilized from the first half of the year. The joint ventures posted a 19.1% margin, up from 14.7% in the prior quarter, as Nuna returned to profitable operations. The increases in margin were offset slightly within the Fargo joint ventures as additional costs were recognized in the quarter primarily related to project cost escalation.

    Adjusted EBITDA and the associated margin of $106.4 million and 29.0% exceeded our 2023 Q3 results of $59.4 million and 21.6%, respectively. As mentioned above and despite lower revenue in the oil sands region, effective and efficient operation of the heavy equipment fleets in Australia and Canada generated a strong EBITDA margin. EBITDA margin for this quarter was more consistent with the first quarter and is reflective of the underlying consistent business of our heavy equipment fleets.

    Depreciation of our Canadian and Australian heavy equipment fleets was 13.4% of revenue in the quarter. Depreciation as a percentage of revenue was 16.4% for the Heavy Equipment – Canada fleet which is higher than our historical average as increased customer demand for heavy equipment rentals has changed the revenue profile. The Heavy Equipment – Australia fleet, which averaged approximately 11.7% of revenue reflected both productive operations in the quarter as well as the depreciation of fair market values allocated upon purchase. On a combined basis, depreciation averaged 12.1% of combined revenue in the quarter as the lower capital intensity in Fargo and Nuna joint ventures modestly reduced the ratio.

    General and administrative expenses (excluding stock-based compensation) were $9.6 million, or 3.4% of revenue, compared to $6.9 million, or 3.5% of revenue in 2023 Q3. The increase in expenses reflects the acquisition of the MacKellar Group. Cash related interest expense for the quarter was $14.2 million at an average cost of debt of 6.5%, compared to $7.8 million at an average cost of debt of 7.1% in 2023 Q3, as rates posted by the Bank of Canada directly impact our Credit Facility and have a delayed impact on the rates for secured equipment-backed financing. Total interest expense was $15.0 million in the quarter, compared to $8.1 million in 2023 Q3 based on the debt financing incurred upon acquisition of the MacKellar Group on October 1, 2023.

    Adjusted earnings per share (“EPS”) of $1.17 on adjusted net earnings of $31.3 million was up 117% from the prior year figure of $0.54, consistent with the adjusted EBIT performance which was up 144% quarter over quarter. As mentioned above, the step-changes in interest from the MacKellar acquisition offset EBIT performance with the effective income tax rates being comparable for both quarters. Weighted-average common shares for the third quarters of 2024 and 2023 were relatively stable at 26,823,124 and 26,700,303, respectively, net of shares classified as treasury shares.

    For the quarter, free cash flow generation was $10.8 million, driven primarily by adjusted EBITDA of $106.4 million. After accounting for sustaining capital additions of $21.1 million, cash interest expense of $14.2 million, and cash taxes paid of $9.3 million, the positive cash flow generation reached $61.8 million. However, changes in working capital and increases in capital work in progress deferred approximately $45 million of cash flow to future quarters, and the accumulation of distributable profits in our joint ventures negatively impacted cash flow by $10 million. Sustaining capital expenditures were focused on routine maintenance of heavy equipment fleets in Australia and Canada, with Canadian expenditures being lower than previous periods due to reduced operating hours and a disciplined approach in preparation for winter work scopes.

    2024 Strategic Focus Areas

    • Safety – now on an international basis, maintain our uncompromising commitment to health and safety while elevating the standard of excellence in the field;
    • Execution – enhance equipment availability in Canada and Australia through in-house fleet maintenance, reliability programs, technical improvements, and management systems;
    • Operational excellence – with a specific focus on Nuna Group of Companies, put into action practical and experienced-based protocols to ensure predictable high-quality project execution;
    • Integration – implement ERP and best practices at MacKellar, including identification of opportunities to better utilize our capital and equipment in Australia;
    • Diversification – pursue diversification of customers and resources through strategic partnerships, industry expertise and investment in Indigenous joint ventures; and
    • Sustainability – further develop and deliver into our environmental, social, and governance targets as disclosed and committed to in our annual reporting.

    Liquidity

    Our current liquidity positions us well moving forward to fund organic growth and the required correlated working capital investments. Including equipment financing availability and factoring in the amended Credit Facility agreement, total available capital liquidity of $173.1 million includes total liquidity of $135.7 million and $20.0 million of unused finance lease borrowing availability as at September 30, 2024. Liquidity is primarily provided by the terms of our $485.7 million credit facility which allows for funds availability based on a trailing twelve-month EBITDA as defined in the agreement.

        September 30,
    2024    		   December 31,
    2023
    Cash   $ 77,670     $ 88,614  
    Credit Facility borrowing limit     485,700       478,022  
    Credit Facility drawn     (395,700 )     (317,488 )
    Letters of credit outstanding     (32,011 )     (31,272 )
    Cash liquidity(i)   $ 135,659     $ 217,876  
    Finance lease borrowing limit     350,000       350,000  
    Other debt borrowing limit     20,000       20,000  
    Equipment financing drawn     (267,544 )     (220,466 )
    Guarantees provided to joint ventures     (65,008 )     (74,831 )
    Total capital liquidity(i)   $ 173,107     $ 292,579  

    (i)See “Non-GAAP Financial Measures”.


    NACG’s Outlook for 2024

    The following table provides projected key measures for 2024. These measures are predicated on contracts currently in place, including expected renewals, and the heavy equipment fleet that we own and operate.

    Key measures   2024
    Combined revenue(i)   $1.4 – $1.5B
    Adjusted EBITDA(i)   $395 – $415M
    Sustaining capital(i)   $150 – $170M
    Adjusted EPS(i)   $3.95 – $4.15
    Free cash flow(i)   $100 – $120M
         
    Capital allocation    
    Growth spending(i)   $85 – $95M
    Net debt leverage(i)   Targeting 2.1x

    (i)See “Non-GAAP Financial Measures”.


    Conference Call and Webcast

    Management will hold a conference call and webcast to discuss our financial results for the quarter ended September 30, 2024, tomorrow, Thursday, October 31, 2024, at 7:00 am Mountain Time (9:00 am Eastern Time).

    The call can be accessed by dialing:
              Toll free: 1-800-717-1738
              Conference ID: 86919

    A replay will be available through November 29, 2024, by dialing:
              Toll Free: 1-888-660-6264
              Conference ID: 86919
              Playback Passcode: 86919

    The 2024 Q3 earnings presentation for the webcast will be available for download on the company’s website at www.nacg.ca/presentations/

    The live presentation and webcast can be accessed at:

    https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=71BDBAD7-6AC1-4CF9-9CFF-5BBCBBDEF924

    A replay will be available until November 29, 2024, using the link provided.

    Basis of Presentation

    We have prepared our consolidated financial statements in conformity with accounting principles generally accepted in the United States (“US GAAP”). Unless otherwise specified, all dollar amounts discussed are in Canadian dollars. Please see the Management’s Discussion and Analysis (“MD&A”) for the quarter ended September 30, 2024, for further detail on the matters discussed in this release. In addition to the MD&A, please reference the dedicated 2024 Q3 Results Presentation for more information on our results and projections which can be found on our website under Investors – Presentations.

    Change in significant accounting policy – Basis of presentation

    During the first quarter of 2024, we changed our accounting policy for the elimination of our proportionate share of profit from downstream sales to affiliates and joint ventures to record through equity earnings in affiliates and joint ventures on the Consolidated Statements of Operations and Comprehensive Income. Prior to this change, we eliminated our proportionate share of profit on downstream sales to affiliates and joint ventures through revenue and cost of sales. The change in accounting policy simplifies the presentation for downstream profit eliminations and has no cumulative impact on retained earnings. We have accounted for the change retrospectively in accordance with the requirements of US GAAP Accounting Standards Codification (“ASC”) 250 by restating the comparative period. For details of retrospective changes, refer to note 16 in the Financial Statements.

    Forward-Looking Information

    The information provided in this release contains forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words “anticipate”, “believe”, “expect”, “should” or similar expressions and include all information provided under the above heading “NACG’s Outlook”.

    The material factors or assumptions used to develop the above forward-looking statements and the risks and uncertainties to which such forward-looking statements are subject, are highlighted in the MD&A for the three and nine months ended September 30, 2024. Actual results could differ materially from those contemplated by such forward-looking statements because of any number of factors and uncertainties, many of which are beyond NACG’s control. Undue reliance should not be placed upon forward-looking statements and NACG undertakes no obligation, other than those required by applicable law, to update or revise those statements. For more complete information about NACG, please read our disclosure documents filed with the SEC and the CSA. These free documents can be obtained by visiting EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedarplus.com.

    Non-GAAP Financial Measures

    This press release presents certain non-GAAP financial measures because management believes that they may be useful to investors in analyzing our business performance, leverage and liquidity. The non-GAAP financial measures we present include “adjusted EBIT”, “adjusted EBITDA”, “adjusted EBITDA margin”, “adjusted EPS”, “adjusted net earnings”, “capital additions”, “capital work in progress”, “cash provided by operating activities prior to change in working capital”, “combined gross profit”, “combined gross profit margin”, “equity investment EBIT”, “free cash flow”, “general and administrative expenses (excluding stock-based compensation)”, “gross profit margin”, “growth capital”, “margin”, “net debt”, “sustaining capital”, “total capital liquidity”, “total combined revenue”, and “total debt”. A non-GAAP financial measure is defined by relevant regulatory authorities as a numerical measure of an issuer’s historical or future financial performance, financial position or cash flow that is not specified, defined or determined under the issuer’s GAAP and that is not presented in an issuer’s financial statements. These non-GAAP measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other companies. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Each non-GAAP financial measure used in this press release is defined and reconciled to its most directly comparable GAAP measure in the “Non-GAAP Financial Measures” section of our Management’s Discussion and Analysis filed concurrently with this press release.

    Reconciliation of total reported revenue to total combined revenue

        Three months ended   Nine months ended
        September 30,   September 30,
    (dollars in thousands)     2024   2023(ii)     2024   2023(ii)
    Revenue from wholly-owned entities per financial statements   $ 286,857     $ 196,881     $ 860,197     $ 636,398  
    Share of revenue from investments in affiliates and joint ventures     144,574       168,667       382,789       516,637  
    Elimination of joint venture subcontract revenue     (64,276 )     (90,791 )     (200,395 )     (277,369 )
    Total combined revenue(i)   $ 367,155     $ 274,757     $ 1,042,591     $ 875,666  

    (i)See “Non-GAAP Financial Measures”.
    (ii)The prior year amounts are adjusted to reflect a change in accounting policy. See “Change in significant accounting policy – Basis of presentation”.


    Reconciliation of reported gross profit to combined gross profit

        Three months ended   Nine months ended
        September 30,   September 30,
    (dollars in thousands)     2024
    		   2023(ii)     2024
    		   2023(ii)
    Gross profit from wholly-owned entities per financial statements   $ 65,098     $ 26,518     $ 168,057     $ 89,213  
    Share of gross profit from investments in affiliates and joint ventures     15,317       11,486       37,172       40,968  
    Combined gross profit(i)   $ 80,415     $ 38,004     $ 205,229     $ 130,181  

    (i)See “Non-GAAP Financial Measures”.
    (ii)The prior year amounts are adjusted to reflect a change in accounting policy. See “Change in significant accounting policy – Basis of presentation”.


    Reconciliation of net income to adjusted net earnings, adjusted EBIT, and adjusted EBITDA

        Three months ended   Nine months ended
        September 30,   September 30,
    (dollars in thousands)     2024     2023     2024     2023
    Net income   $ 13,901     $ 11,387     $ 39,277     $ 45,495  
    Adjustments:                
    Loss (gain) on disposal of property, plant and equipment     348       (311 )     641       189  
    Write-down on assets held for sale     —       —       4,181       —  
    Stock-based compensation (benefit) expense     1,332       5,583       3,081       16,324  
    Change in fair value of contingent obligation from adjustments to estimates     17,727       —       26,585       —  
    Restructuring costs     —       —       4,517       —  
    Acquisition costs     —       1,161       —       1,161  
    Loss on equity investment customer bankruptcy claim settlement     —       —       —       759  
    Loss (gain) on derivative financial instruments     572       (2,618 )     845       (6,979 )
    Net unrealized loss (gain) on derivative financial instruments included in equity earnings in affiliates and joint ventures     1,836       572       2,806       (649 )
    Tax effect of the above items     (4,463 )     (1,479 )     (8,972 )     (4,240 )
    Adjusted net earnings(i)     31,253       14,295       72,961       52,060  
    Adjustments:                
    Tax effect of the above items     4,463       1,479       8,972       4,240  
    Increase in fair value of contingent obligation from interest accretion expense     4,262       —       12,360       —  
    Interest expense, net     15,003       8,119       44,939       22,941  
    Income tax expense     6,768       1,733       16,325       11,892  
    Equity earnings in affiliates and joint ventures(iii)     (4,428 )     (4,277 )     (9,545 )     (22,963 )
    Equity investment EBIT(i)(iii)     4,365       3,983       7,152       23,307  
    Adjusted EBIT(i)     61,686       25,332       153,164       91,477  
    Adjustments:                
    Depreciation and amortization     38,662       28,884       122,844       90,239  
    Write-down on assets held for sale     —       —       (4,181 )     —  
    Equity investment depreciation and amortization(i)     6,036       5,155       14,689       14,111  
    Adjusted EBITDA(i)   $ 106,384     $ 59,371     $ 286,516     $ 195,827  
    Adjusted EBITDA margin(i)(ii)     29.0 %     21.6 %     27.5 %     22.4 %

    (i)See “Non-GAAP Financial Measures”.
    (ii)Adjusted EBITDA margin is calculated using adjusted EBITDA over total combined revenue.
    (iii)The prior year amounts are adjusted to reflect a change in presentation. See “Accounting Estimates, Pronouncements and Measures”.


    Reconciliation of equity earnings in affiliates and joint ventures to equity investment EBIT

        Three months ended   Nine months ended
        September 30,   September 30,
    (dollars in thousands)     2024   2023(ii)     2024   2023(ii)
    Equity earnings in affiliates and joint ventures   $ 4,428     $ 4,277     $ 9,545     $ 22,963  
    Adjustments:                
    Interest (income) expense, net     (618 )     (742 )     (1,337 )     (915 )
    Income tax expense     738       448       (698 )     1,294  
    Loss (gain) on disposal of property, plant and equipment     (183 )     —       (358 )     (35 )
    Equity investment EBIT(i)   $ 4,365     $ 3,983     $ 7,152     $ 23,307  

    (i)See “Non-GAAP Financial Measures”.
    (ii)The prior year amounts are adjusted to reflect a change in accounting policy. See “Change in significant accounting policy – Basis of presentation”.


    About the Company

    North American Construction Group Ltd. is a premier provider of heavy civil construction and mining services in Canada, the U.S. and Australia. For 70 years, NACG has provided services to the mining, resource and infrastructure construction markets.

    For further information contact:

    Jason Veenstra
    Chief Financial Officer
    North American Construction Group Ltd.
    (780) 960-7171
    IR@nacg.ca
    www.nacg.ca

    Interim Consolidated Balance Sheets

    (Expressed in thousands of Canadian Dollars)
    (Unaudited) 

        September 30,
    2024    		   December 31,
    2023
    Assets        
    Current assets        
    Cash   $ 77,670     $ 88,614  
    Accounts receivable     158,179       97,855  
    Contract assets     16,128       35,027  
    Inventories     77,150       64,962  
    Prepaid expenses and deposits     8,477       7,402  
    Assets held for sale     7,355       1,340  
          344,959       295,200  
    Property, plant and equipment, net of accumulated depreciation of $474,655 (December 31, 2023 – $423,345)     1,235,447       1,142,946  
    Operating lease right-of-use assets     13,404       12,782  
    Investments in affiliates and joint ventures     85,192       81,435  
    Other assets     5,082       7,144  
    Intangible assets     10,052       6,971  
    Total assets   $ 1,694,136     $ 1,546,478  
    Liabilities and shareholders’ equity        
    Current liabilities        
    Accounts payable   $ 123,110     $ 146,190  
    Accrued liabilities     47,724       72,225  
    Contract liabilities     300       59  
    Current portion of long-term debt     94,485       81,306  
    Current portion of contingent obligations     37,601       22,501  
    Current portion of operating lease liabilities     1,852       1,742  
          305,072       324,023  
    Long-term debt     723,487       611,313  
    Contingent obligations     101,752       93,356  
    Operating lease liabilities     12,010       11,307  
    Other long-term obligations     41,768       41,001  
    Deferred tax liabilities     118,133       108,824  
          1,302,222       1,189,824  
    Shareholders’ equity        
    Common shares (authorized – unlimited number of voting common shares; issued and outstanding – September 30, 2024 – 27,827,282 (December 31, 2023 – 27,827,282))     229,455       229,455  
    Treasury shares (September 30, 2024 – 996,435 (December 31, 2023 – 1,090,187))     (15,809 )     (16,165 )
    Additional paid-in capital     22,524       20,739  
    Retained earnings     154,398       123,032  
    Accumulated other comprehensive income (loss)     1,346       (407 )
    Shareholders’ equity     391,914       356,654  
    Total liabilities and shareholders’ equity   $ 1,694,136     $ 1,546,478  

    Interim Consolidated Statements of Operations and
    Comprehensive Income

    (Expressed in thousands of Canadian Dollars, except per share amounts)
    (Unaudited) 

        Three months ended   Nine months ended
        September 30,   September 30,
          2024   2023(i)     2024   2023(i)
    Revenue   $ 286,857     $ 196,881     $ 860,197     $ 636,398  
    Cost of sales     183,405       141,771       570,222       457,856  
    Depreciation     38,354       28,592       121,918       89,329  
    Gross profit     65,098       26,518       168,057       89,213  
    General and administrative expenses     10,945       12,485       36,630       38,638  
    Loss (gain) on disposal of property, plant and equipment     348       (311 )     641       189  
    Operating income     53,805       14,344       130,786       50,386  
    Equity earnings in affiliates and joint ventures     (4,428 )     (4,277 )     (9,545 )     (22,963 )
    Interest expense, net     15,003       8,119       44,939       22,941  
    Change in fair value of contingent obligations     21,989       —       38,945       —  
    Loss (gain) on derivative financial instruments     572       (2,618 )     845       (6,979 )
    Income before income taxes     20,669       13,120       55,602       57,387  
    Current income tax expense     2,238       1,495       5,003       3,198  
    Deferred income tax expense     4,530       238       11,322       8,694  
    Net income   $ 13,901     $ 11,387     $ 39,277     $ 45,495  
    Other comprehensive income                
    Unrealized foreign currency translation (gain) loss     (1,115 )     1,100       (1,753 )     1,462  
    Comprehensive income   $ 15,016     $ 10,287     $ 41,030     $ 44,033  
    Per share information                
    Basic net income per share   $ 0.52     $ 0.43     $ 1.47     $ 1.72  
    Diluted net income per share   $ 0.47     $ 0.39     $ 1.32     $ 1.51  

    (i)The prior year amounts are adjusted to reflect a change in accounting policy. See “Accounting Estimates, Pronouncements and Measures”.

    The MIL Network –

  • MIL-OSI: Superior Energy Services Announces Third Quarter 2024 Results and Conference Call

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, Oct. 30, 2024 (GLOBE NEWSWIRE) — Superior Energy Services, Inc. (the “Company”) filed its Form 10-Q for the period ended September 30, 2024. In accordance with the Company’s Shareholders Agreement, it will host a conference call with shareholders on November 1, 2024.

    For the third quarter of 2024, the Company reported net income from continuing operations of $21.9 million, or $1.09 per diluted share, with revenue of $197.3 million. This compares to net income from continuing operations of $29.5 million or $1.46 per diluted share, with revenue of $201.1 million, for the second quarter of 2024.

    The Company’s Adjusted EBITDA (a non-GAAP measure defined on page 4) was $57.8 million compared to $60.0 million for the second quarter of 2024. Refer to pages 11 and 12 for a reconciliation of Adjusted EBITDA to GAAP results.

    Third Quarter 2024 Geographic Breakdown

    U.S. land revenue was $36.0 million for the third quarter of 2024, a decrease of 8% compared to revenue of $39.0 million for the second quarter of 2024. The decline in U.S. land revenue was primarily driven by decreased activity from our premium drill pipe and bottom hole accessories product lines within our Rentals segment, consistent with a reduced U.S. land rig count.

    U.S. offshore revenue was $49.7 million in the third quarter of 2024, a decrease of 8% compared to revenue of $53.8 million in the second quarter of 2024. U.S. offshore revenue decreased primarily in our Well Services segments, with the most significant decline coming from our project-based completion services product line.  U.S. Offshore revenue in the Rentals segment for the third quarter of 2024 was up $1.6 million versus the second quarter of 2024, despite approximately $1.0 million of revenue slipping to the fourth quarter of 2024 due to hurricane activity in September.

    International revenue was $111.6 million in the third quarter of 2024, an increase of 3% compared to revenue of $108.4 million in the second quarter of 2024. International revenue was up across both our Rentals and Well Services segments, with the increase being driven by our hydraulic snubbing and well control services product lines.

    Third Quarter 2024 Segment Reporting

    The Rentals segment revenue in the third quarter of 2024 was $97.9 million, a 2% decrease compared to revenue of $99.9 million in the second quarter of 2024, primarily driven by reduced activity in U.S. land and hurricane disruptions in the U.S. offshore market. In the third quarter of 2024, Rentals segment income from operations was $43.9 million as compared to $44.1 million in the second quarter of 2024. Adjusted EBITDA was $55.9 million, a decrease from $56.0 million in the second quarter of 2024. Adjusted EBITDA Margin (a non-GAAP measure defined on page 4) was 57%, a 1% increase from the second quarter of 2024.

    The Well Services segment revenue in the third quarter of 2024 was $99.5 million, a 2% decrease compared to revenue of $101.2 million in the second quarter of 2024 and income from operations for the third quarter of 2024 was $3.8 million as compared to $10.7 million in the second quarter of 2024. Adjusted EBITDA for the third quarter of 2024 was $15.4 million with an Adjusted EBITDA Margin of 16%, as compared to Adjusted EBITDA of $19.1 million with an Adjusted EBITDA Margin of 19% in the second quarter of 2024. The Well Services segment sequential decline was primarily driven by lower activity in our project-based completion services product line.

    Liquidity

    As of September 30, 2024, the Company had cash, cash equivalents, and restricted cash of approximately $380.6 million.  As of September 30, 2024, our borrowing base, as defined in our credit agreement, was approximately $89.9 million, and we had $39.5 million in letters of credit outstanding which reduced the borrowing availability to $50.4 million. At September 30, 2024, we had no outstanding borrowings under our credit facility.

    During the third quarter of 2024, we utilized an indirect foreign exchange mechanism known as a Blue Chip Swap. The transactions were completed at implied exchange rates that were approximately 63.0% higher than the official exchange rate, resulting in a loss of approximately $5.1 million during the third quarter of 2024.

    During the third quarter of 2024, net cash from operating activities was $62.5 million. Free Cash Flow (a non-GAAP measure defined on page 4) for the third quarter of 2024 totaled $50.5 million as compared to $39.0 million for the second quarter of 2024. Refer to page 8 for a reconciliation of Free Cash Flow to Net Cash from Operating Activities.

    Third quarter 2024 capital expenditures were $12.0 million. The Company expects total capital expenditures for 2024 to be approximately $100 to $110 million. Approximately 91% of total 2024 capital expenditures are targeted for the replacement of existing assets.  Of the total estimated 2024 capital expenditures, approximately 68% is expected to be invested in the Rentals segment.

    2024 Guidance

    Our full year 2024 guidance remains consistent from the second quarter 2024 guidance. We expect 2024 revenue to come in at a range of $780 million to $840 million with 2024 Adjusted EBITDA expected to be in a range of $235 million to $265 million.

    Conference Call Information

    The Company’s management team will host a conference call on Friday, November 1, 2024, at 10:00 a.m. Eastern Time. The call will be available via live webcast in the “Events” section at ir.superiorenergy.com. To access via phone, participants can register for the call here, where they will be provided a phone number and access code. The call will be available for replay until November 1, 2025 on Superior’s website at ir.superiorenergy.com. If you are a shareholder and would like to submit a question, please email your question beforehand to Jamie Spexarth at ir@superiorenergy.com.

    About Superior Energy Services

    Superior Energy Services serves the drilling, completion and production-related needs of oil and gas companies worldwide through a diversified portfolio of specialized oilfield services and equipment that are used throughout the economic life cycle of oil and gas wells.  For more information, visit: www.superiorenergy.com.

    Non-GAAP Financial Measures

    To supplement Superior’s consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company also uses Adjusted EBITDA and Adjusted EBITDA Margin. Management uses Adjusted EBITDA and Adjusted EBITDA Margin internally for financial and operational decision-making and as a means to evaluate period-to-period comparisons. The Company also believes these non-GAAP measures provide investors useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. Non-GAAP financial measures are not recognized measures for financial statement presentation under U.S. GAAP and do not have standardized meanings and may not be comparable to similar measures presented by other public companies. Adjusted EBITDA and Adjusted EBITDA Margin should be considered as supplements to, and not as substitutes for, or superior to, the corresponding measures calculated in accordance with GAAP. We define Adjusted EBITDA as net income (loss) from continuing activities before net interest expense, income tax expense (benefit) and depreciation, amortization, accretion and depletion, restructuring and transaction expenses, adjusted for other gains and losses and other expenses, net, which management does not consider representative of our ongoing operations. We define Adjusted EBITDA Margin as Adjusted EBITDA by segment as a percentage of segment revenues. For a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP financial measure, please see the tables under “―Superior Energy Services, Inc. and Subsidiaries Reconciliation of Adjusted EBITDA” and “—Superior Energy Services, Inc. and Subsidiaries Reconciliation of Adjusted EBITDA by Segment” included on pages 11 and 12 of this press release.

    Free Cash Flow is defined as net cash from operating activities less payments for capital expenditures. Free Cash Flow is considered a non-GAAP financial measure under the SEC’s rules. Management believes, however, that Free Cash Flow is an important financial measure for use in evaluating the Company’s financial performance, as it measures our ability to generate additional cash from our business operations. Free Cash Flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of Free Cash Flow is limited and 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 obligations or payments made for business acquisitions. Therefore, we believe it is important to view Free Cash Flow as supplemental to our entire Statement of Cash Flows. Please see table under “—Condensed Consolidated Statements of Cash Flows” included on page 8 of this press release.

    The Company is unable to provide a reconciliation of the forward-looking non-GAAP financial measure, Adjusted EBITDA, contained in this press release to its most directly comparable GAAP financial measure, net income, as the information necessary for a quantitative reconciliation of the forward-looking non-GAAP financial measure to its respective most directly comparable GAAP financial measure is not (and was not, when prepared) available to the Company without unreasonable efforts due to the inherent difficulty and impracticability of predicting certain amounts required by GAAP with a reasonable degree of accuracy. Net income includes the impact of depreciation, income taxes and certain other items that impact comparability between periods, which may be significant and are difficult to project with a reasonable degree of accuracy. In addition, we believe such reconciliation could imply a degree of precision that might be confusing or misleading to investors. The probable significance of providing this forward-looking non-GAAP financial measure without the directly comparable GAAP financial measure is that such GAAP financial measure may be materially different from the corresponding non-GAAP financial measure.

    Forward-Looking Statements

    This press release contains, and future oral or written statements or press releases by the Company and its management may contain, certain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Generally, the words “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks”, “will,” “could,” “may” and “estimates,” variations of such words and similar expressions identify forward-looking statements, although not all forward-looking statements contain these identifying words. All statements other than statements of historical fact regarding the Company’s financial position and results, financial performance, liquidity, market outlook, future capital needs, capital allocation plans, business strategies and other plans and objectives of our management for future operations and activities are forward-looking statements. These statements are based on certain assumptions and analyses made by the Company’s management in light of its experience and prevailing circumstances on the date such statements are made. Such forward-looking statements, and the assumptions on which they are based, are inherently speculative and are subject to a number of risks and uncertainties, including but not limited to conditions in the oil and gas industry, U.S. and global market and economic conditions generally and macroeconomic conditions worldwide (including inflation, interest rates, supply chain disruptions and capital and credit markets conditions) and other uncertainties (such as the war in Ukraine and conflict in Israel and broader geopolitical tensions in the Middle East and eastern Europe)  that could cause the Company’s actual results to differ materially from such statements. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside the control of the Company, which could cause actual results to differ materially from such statements.

    While the Company believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business.

    These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in the Company’s Form 10-K for the year ended December 31, 2023 and subsequent reports on Form 10-Qs and those set forth from time to time in the Company’s other periodic filings with the Securities and Exchange Commission, which are available at www.superiorenergy.com. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.

    SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, unaudited)
                                 
      Three Months Ended     Nine Months Ended  
      September 30,     June 30,     September 30,     September 30,  
      2024     2024     2023     2024     2023  
                                 
    Rentals $ 97,857     $ 99,851     $ 113,201     $ 305,799     $ 334,433  
    Well Services   99,450       101,230       97,184       301,223       340,562  
    Total revenues   197,307       201,081       210,385       607,022       674,995  
                                 
    Rentals   35,227       36,596       37,769       109,589       109,258  
    Well Services   74,172       71,672       72,076       214,717       239,062  
    Total cost of revenues   109,399       108,268       109,845       324,306       348,320  
                                 
    Depreciation, depletion, amortization and accretion   21,077       20,868       20,490       62,392       61,250  
    General and administrative expenses   33,458       33,404       30,089       101,837       92,256  
    Restructuring and transaction expenses   5,891       –       –       5,891       1,983  
    Other gains, net   (133 )     (614 )     (4,073 )     (1,829 )     (5,424 )
    Income from operations   27,615       39,155       54,034       114,425       176,610  
                                 
    Other income (expense):                            
    Interest income, net   5,032       5,760       6,629       17,632       18,581  
    Loss on Blue Chip Swaps   (5,113 )     –       (12,120 )     (5,113 )     (12,120 )
    Other income (expense)   979       (2,082 )     (4,520 )     (2,916 )     (8,508 )
    Income from continuing operations before income taxes   28,513       42,833       44,023       124,028       174,563  
    Income tax expense   (6,597 )     (13,370 )     (11,403 )     (34,754 )     (44,615 )
    Net income from continuing operations   21,916       29,463       32,620       89,274       129,948  
    Income from discontinued operations, net of income tax   –       1,896       128       1,896       408  
    Net income $ 21,916     $ 31,359     $ 32,748     $ 91,170     $ 130,356  
                                 
    Income per share – basic:                            
    Net income from continuing operations $ 1.09     $ 1.46     $ 1.62     $ 4.43     $ 6.46  
    Income from discontinued operations, net of income tax   –       0.09       0.01       0.09       0.02  
    Net income $ 1.09     $ 1.55     $ 1.63     $ 4.52     $ 6.48  
                                 
    Income per share – diluted                            
    Net income from continuing operations $ 1.09     $ 1.46     $ 1.62     $ 4.42     $ 6.45  
    Income from discontinued operations, net of income tax   –       0.09       –       0.10       0.02  
    Net income $ 1.09     $ 1.55     $ 1.62     $ 4.52     $ 6.47  
                                 
    Weighted-average shares outstanding                            
    Basic   20,177       20,172       20,136       20,170       20,123  
    Diluted   20,186       20,183       20,159       20,182       20,144  
                                           
    SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (in thousands, unaudited)
               
      September 30,     December 31,  
      2024     2023  
    ASSETS          
    Current assets:          
    Cash and cash equivalents $ 325,881     $ 391,684  
    Accounts receivable, net   200,106       276,868  
    Inventory   70,293       74,995  
    Income taxes receivable   13,383       10,542  
    Prepaid expenses   23,363       18,614  
    Other current assets   7,765       7,922  
    Total current assets   640,791       780,625  
    Property, plant and equipment, net   306,285       294,960  
    Note receivable   72,694       69,005  
    Restricted cash   54,707       85,444  
    Deferred tax assets   59,555       67,241  
    Other assets, net   42,319       43,718  
    Total assets $ 1,176,351     $ 1,340,993  
               
    LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)          
    Current liabilities:          
    Accounts payable $ 38,897     $ 38,214  
    Accrued expenses   106,203       103,782  
    Income taxes payable   20,100       20,220  
    Decommissioning liability   30,747       21,631  
    Total current liabilities   195,947       183,847  
    Decommissioning liability   140,030       148,652  
    Other liabilities   38,599       47,583  
    Total liabilities   374,576       380,082  
               
    Total equity   801,775       960,911  
    Total liabilities and equity $ 1,176,351     $ 1,340,993  
     
    SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands, unaudited) 
                                 
      Three Months Ended     Nine Months Ended  
      September 30,     June 30,     September 30,     September 30,  
      2024     2024     2023     2024     2023  
                                 
    Cash flows from operating activities                            
    Net income $ 21,916     $ 31,359     $ 32,748     $ 91,170     $ 130,356  
    Adjustments to reconcile net loss to net cash from operating activities:                            
    Depreciation, depletion, amortization and accretion   21,077       20,868       20,490       62,392       61,250  
    Loss on Blue Chip Swaps   5,113       –       12,120       5,113       12,120  
    Washington State Tax Settlement   –       –       –       –       (27,068 )
    Decommissioning costs   (5,111 )     (143 )     (3,401 )     (5,684 )     (6,279 )
    Other non-cash items   (2,642 )     4,205       566       4,798       23,357  
    Changes in operating assets and liabilities:   22,162       17,487       (10,112 )     67,396       (38,390 )
    Net cash from operating activities   62,515       73,776       52,411       225,185       155,346  
                                 
    Cash flows from investing activities                            
    Payments for capital expenditures   (12,005 )     (34,744 )     (21,592 )     (67,447 )     (67,218 )
    Proceeds from sales of assets   292       669       9,563       3,577       24,710  
    Proceeds from sales of Blue Chip Swap securities   8,121       –       9,656       8,121       9,656  
    Purchases of Blue Chip Swap securities   (13,234 )     –       (21,776 )     (13,234 )     (21,776 )
    Net cash from investing activities   (16,826 )     (34,075 )     (24,149 )     (68,983 )     (54,628 )
                                 
    Cash flows from financing activities                            
    Distributions to shareholders   –       –       –       (250,417 )     –  
    Repurchase of shares   –       –       –       (962 )     –  
    Other   (358 )     –       –       (1,363 )     (1,116 )
    Net cash from financing activities   (358 )     –       –       (252,742 )     (1,116 )
    Net change in cash, cash equivalents, and restricted cash   45,331       39,701       28,262       (96,540 )     99,602  
    Cash, cash equivalents and restricted cash at beginning of period   335,257       295,556       410,447       477,128       339,107  
    Cash, cash equivalents, and restricted cash at end of period $ 380,588     $ 335,257     $ 438,709     $ 380,588     $ 438,709  
                                 
    Reconciliation of Free Cash Flow                            
    Net cash from operating activities $ 62,515     $ 73,776     $ 52,411     $ 225,185     $ 155,346  
    Payments for capital expenditures   (12,005 )     (34,744 )     (21,592 )     (67,447 )     (67,218 )
    Free Cash Flow $ 50,510     $ 39,032     $ 30,819     $ 157,738     $ 88,128  
                                 
    Free Cash Flow is a Non-GAAP measure. See Non-GAAP Financial Measures for our definition of Free Cash Flow.  
       
    SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
    REVENUE BY GEOGRAPHIC REGION BY SEGMENT
    (in thousands, unaudited)
                                 
      Three Months Ended     Nine Months Ended  
      September 30,     June 30,     September 30,     September 30,  
      2024     2024     2023     2024     2023  
    U.S. land                            
    Rentals $ 28,934     $ 32,713     $ 37,478     $ 100,653     $ 127,341  
    Well Services   7,027       6,242       8,223       20,735       20,384  
    Total U.S. land   35,961       38,955       45,701       121,388       147,725  
                                 
    U.S. offshore                            
    Rentals   32,228       30,644       44,681       100,123       117,867  
    Well Services   17,489       23,125       14,459       69,486       54,185  
    Total U.S. offshore   49,717       53,769       59,140       169,609       172,052  
                                 
    International                            
    Rentals   36,695       36,494       31,042       105,023       89,225  
    Well Services   74,934       71,863       74,502       211,002       265,993  
    Total International   111,629       108,357       105,544       316,025       355,218  
    Total Revenues $ 197,307     $ 201,081     $ 210,385     $ 607,022     $ 674,995  
                                           
    SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
    SEGMENT HIGHLIGHTS
    (in thousands, unaudited)
                                 
      Three Months Ended     Nine Months Ended  
      September 30,     June 30,     September 30,     September 30,  
      2024     2024     2023     2024     2023  
    Revenues                            
    Rentals $ 97,857     $ 99,851     $ 113,201     $ 305,799     $ 334,433  
    Well Services   99,450       101,230       97,184       301,223       340,562  
    Total Revenues $ 197,307     $ 201,081     $ 210,385     $ 607,022     $ 674,995  
                                 
    Income (loss) from Operations                            
    Rentals $ 43,856     $ 44,061     $ 56,253     $ 139,128     $ 167,373  
    Well Services   3,789       10,686       10,581       27,867       50,860  
    Corporate and other   (20,030 )     (15,592 )     (12,800 )     (52,570 )     (41,623 )
    Income from operations $ 27,615     $ 39,155     $ 54,034     $ 114,425     $ 176,610  
                                 
    Adjusted EBITDA                            
    Rentals $ 55,915     $ 56,023     $ 68,791     $ 174,959     $ 204,632  
    Well Services   15,427       19,078       15,137       56,028       69,697  
    Corporate and other   (13,576 )     (15,078 )     (12,125 )     (45,096 )     (37,207 )
    Total Adjusted EBITDA $ 57,766     $ 60,023     $ 71,803     $ 185,891     $ 237,122  
                                 
    Adjusted EBITDA Margin                            
    Rentals   57 %     56 %     61 %     57 %     61 %
    Well Services   16 %     19 %     16 %     19 %     20 %
    Corporate and other n/a     n/a     n/a     n/a     n/a  
    Total Adjusted EBITDA Margin   29 %     30 %     34 %     31 %     35 %
                                 
    Adjusted EBITDA is a Non-GAAP measure.  See Non-GAAP Financial Measures for our definition of Adjusted EBITDA and pages 11 and 12 for a reconciliation to income (loss) from operations.  
       
    SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
    RECONCILIATION OF ADJUSTED EBITDA
    (in thousands, unaudited)
                                 
      Three Months Ended     Nine Months Ended  
      September 30,     June 30,     September 30,     September 30,  
      2024     2024     2023     2024     2023  
                                 
    Net income from continuing operations $ 21,916     $ 29,463     $ 32,620     $ 89,274     $ 129,948  
    Depreciation, depletion, amortization and accretion   21,077       20,868       20,490       62,392       61,250  
    Interest income, net   (5,032 )     (5,760 )     (6,629 )     (17,632 )     (18,581 )
    Income tax expense   6,597       13,370       11,403       34,754       44,615  
    Restructuring expenses and other adjustments (1)   9,074       –       (2,721 )     9,074       (738 )
    Loss on Blue Chip Swap Securities   5,113       –       12,120       5,113       12,120  
    Other (income) expense, net   (979 )     2,082       4,520       2,916       8,508  
    Adjusted EBITDA $ 57,766     $ 60,023     $ 71,803     $ 185,891     $ 237,122  
                                 
    Adjusted EBITDA is a Non-GAAP measure.  See Non-GAAP Financial Measures for our definition of Adjusted EBITDA.  
                                 
    (1) Restructuring expenses and other adjustments for the three and nine months ended September 30, 2024 relate to costs associated with changes in our executive management and other restructuring costs.  Adjustments for the three and nine months ended September 30, 2023 relate to exit and disposal activities related to non-core businesses and other restructuring costs.  
       
    SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
    RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT
    (in thousands, unaudited)
                                 
      Three Months Ended     Nine Months Ended  
      September 30,     June 30,     September 30,     September 30,  
      2024     2024     2023     2024     2023  
    Rentals                            
    Income from operations $ 43,856     $ 44,061     $ 56,253     $ 139,128     $ 167,373  
    Depreciation, depletion, amortization and accretion   12,059       11,962       12,538       35,831       37,259  
    Adjusted EBITDA $ 55,915     $ 56,023     $ 68,791     $ 174,959     $ 204,632  
                                 
    Well Services                            
    Income from operations $ 3,789     $ 10,686     $ 10,581     $ 27,867     $ 50,860  
    Depreciation, depletion, amortization and accretion   8,455       8,392       7,277       24,978       21,558  
    Restructuring expenses and other adjustments(1)   3,183       –       (2,721 )     3,183       (2,721 )
    Adjusted EBITDA $ 15,427     $ 19,078     $ 15,137     $ 56,028     $ 69,697  
                                 
    Corporate                            
    Loss from operations $ (20,030 )   $ (15,592 )   $ (12,800 )   $ (52,570 )   $ (41,623 )
    Depreciation, depletion, amortization and accretion   563       514       675       1,583       2,433  
    Restructuring expenses and other adjustments (1)   5,891       –       –       5,891       1,983  
    Adjusted EBITDA $ (13,576 )   $ (15,078 )   $ (12,125 )   $ (45,096 )   $ (37,207 )
                                 
    Total                            
    Income from operations $ 27,615     $ 39,155     $ 54,034     $ 114,425     $ 176,610  
    Depreciation, depletion, amortization and accretion   21,077       20,868       20,490       62,392       61,250  
    Restructuring expenses and other adjustments (1)   9,074       –       (2,721 )     9,074       (738 )
    Adjusted EBITDA $ 57,766     $ 60,023     $ 71,803     $ 185,891     $ 237,122  
                                 
    Adjusted EBITDA is a Non-GAAP measure.  See Non-GAAP Financial Measures for our definition of Adjusted EBITDA.  
                                 
    (1) Restructuring expenses and other adjustments for the three and nine months ended September 30, 2024 relate to costs associated with changes in our executive management and other restructuring costs.  Adjustments for the three and nine months ended September 30, 2023 relate to exit and disposal activities related to non-core businesses and other restructuring costs.  
       

    FOR FURTHER INFORMATION CONTACT:
    Jamie Spexarth, Chief Financial Officer
    1001 Louisiana St., Suite 2900
    Houston, TX 77002
    Investor Relations, ir@superiorenergy.com, (713) 654-2200

    The MIL Network –

  • MIL-OSI: Oxbridge Re Announces 2024 Third Quarter Results on November 13, 2024

    Source: GlobeNewswire (MIL-OSI)

    GRAND CAYMAN, Cayman Islands, Oct. 30, 2024 (GLOBE NEWSWIRE) — Oxbridge Re (NASDAQ: OXBR) announced that it plans to hold a conference call on Wednesday November 13, 2024 at 4:30 p.m. Eastern time to discuss results for the third quarter and nine months ending ended September 30, 2024. Financial results will be issued in a press release after the close of the market on the same day. Oxbridge Re’s management will host the conference call, followed by a question and answer period.

    Interested parties can listen to the live presentation by dialing the listen-only number below.

    Date: November 13, 2024
    Time: 4:30 p.m. Eastern time
    Listen-only toll-free number: 877 524-8416
    Listen-only international number: +1 412 902-1028
    Passcode (required): 13746519
     

    Please call the conference telephone number 10 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact InComm Conferencing at 201 493-6280 or 877 804-2066

    A replay of the call will be available by telephone after 4:30 p.m. Eastern time on the same day of the call and via the Investor Information section of Oxbridge’s website at www.OxbridgeRe.com until November 26, 2024.

    Toll-free replay number: 877-660-6853
    International replay number: +1 201-612-7415
    Replay passcode: 13746519
     

    About Oxbridge Re Holdings Limited

    Oxbridge Re Holdings Limited (NASDAQ: OXBR, OXBRW) (“Oxbridge Re”) is headquartered in the Cayman Islands. The company offers tokenized Real-World Assets (“RWAs”) as tokenized reinsurance securities and reinsurance business solutions to property and casualty insurers, through its wholly owned subsidiaries SurancePlus Inc, Oxbridge Re NS, and Oxbridge Reinsurance Limited.

    Insurance businesses in the Gulf Coast region of the United States purchase property and casualty reinsurance through our licensed reinsurers Oxbridge Reinsurance Limited and Oxbridge Re NS.

    Our Web3-focused subsidiary, SurancePlus Inc. (“SurancePlus”), has developed the first “on-chain” reinsurance RWA of its kind to be sponsored by a subsidiary of a publicly traded company. By digitizing interests in reinsurance contracts as on-chain RWAs, SurancePlus has democratized the availability of reinsurance as an alternative investment to both U.S. and non-U.S. investors.

    Company Contact:
    Oxbridge Re Holdings Limited
    Jay Madhu, CEO
    +1 345-749-7570
    jmadhu@oxbridgere.com

    The MIL Network –

  • MIL-OSI: iRhythm Technologies Receives FDA 510(k) Clearance for Design Modifications to Its Zio® AT Device

    Source: GlobeNewswire (MIL-OSI)

    Zio AT device, along with the Zio ECG Utilization Software (ZEUS) (K222389), enables the provision of ambulatory Mobile Cardiac Telemetry (MCT) monitoring service for non-critical care patients

    FDA 510(k)-cleared enhancements will be available in 2025

    SAN FRANCISCO, Oct. 30, 2024 (GLOBE NEWSWIRE) — iRhythm Technologies, Inc. (NASDAQ:IRTC), a leading digital health care company focused on creating trusted solutions that detect, predict, and prevent disease, announced today that the U.S. Food and Drug Administration (FDA) has granted clearance for its 510(k) submission related to design modifications and labeling updates for the Zio AT device. Zio AT remains commercially available on the market to ship to customers in the United States, and product enhancements subject to this 510(k) clearance will be available in 2025.

    “This clearance is related to enhancements to our Zio AT product, including design features and labeling updates intended to address areas of concern specific to Zio AT that were noted in a 2023 FDA warning letter to the Company,” said Quentin Blackford, iRhythm President and Chief Executive Officer. “We believe these features that were subject to this clearance advance our technology for the benefit of patients, physicians, and healthcare systems who rely on our Zio AT services. At all times, we remain committed to patient safety, physician trust in Zio AT’s clinical performance, service quality, and regulatory compliance.”

    About the Zio AT System

    The Zio AT device is a prescription-only outpatient cardiac telemetry device, commonly referred to as a mobile cardiac telemetry device, which is used for the provision of our mobile cardiac telemetry (MCT) services. The Zio AT system consists of: the Zio AT patch, an ECG monitor that continuously records ECG data for up to 14 days; the wireless gateway that provides connectivity between the Zio AT patch and the Zio ECG Utilization Software (ZEUS) to transmit data during the wear period; and ZEUS, iRhythm’s deep-learning algorithm that analyzes cardiac events transmitted by the Zio AT patch and gateway. The Zio AT services provide event transmission reports during wear and a comprehensive end-of-wear report1-4 with preliminary findings to the treating medical professional for final clinical decisions. The Zio AT services are provided by iRhythm’s independent diagnostic testing facilities located in San Francisco, California, Deerfield, Illinois and Houston, Texas.

    Zio Services’ Clinically Proven Performance

    The value of the Zio service has been demonstrated in over 100 original scientific research manuscripts5. Zio AT’s patient-centered design enables high patient compliance and analyzable time with minimal noise or artifact6-8, and real-world data shows an impressive 98% patient compliance9, in part thanks to Zio AT’s zero required patient manipulations. Furthermore, physicians agree with the Zio service’s comprehensive end-of-wear report 99% of the time10-11.

    About iRhythm Technologies, Inc.
    iRhythm is a leading digital health care company that creates trusted solutions that detect, predict, and prevent disease. Combining wearable biosensors and cloud-based data analytics with powerful proprietary algorithms, iRhythm distills data from millions of heartbeats12 into clinically actionable information. Through a relentless focus on patient care, iRhythm’s vision is to deliver better data, better insights, and better health for all. To learn more about iRhythm, including its portfolio of Zio products and services, please visit irhythmtech.com.

    Zio AT Indications For Use

    The Zio AT device is intended to capture and transmit symptomatic and asymptomatic cardiac events and record continuous electrocardiogram (ECG) data for long-term monitoring. It is indicated for use on patients 18 years or older who may be asymptomatic or who may suffer from transient symptoms such as palpitations, shortness of breath, dizziness, light-headedness, pre-syncope, syncope, fatigue, or anxiety. It is not intended for use on critical care patients.

    Contraindications

    • Do not use the Zio AT device for patients with symptomatic episodes where variations in cardiac performance could result in immediate danger to the patient or when real-time or in-patient monitoring should be prescribed.
    • Do not use the Zio AT device for patients with known history of life-threatening arrhythmias.
    • Do not use the Zio AT device in combination with external cardiac defibrillators or high frequency surgical equipment near strong magnetic fields or devices such as MRI.
    • Do not use the Zio AT device on patients with a neuro-stimulator, as it may disrupt the quality of ECG data.
    • Do not use the Zio AT device on patients who do not have the competency to wear the device for the prescribed monitoring period.

    Investor Contact
    Stephanie Zhadkevich
    investors@irhythmtech.com

    Media Contact
    Kassandra Perry
    irhythm@highwirepr.com

    1. Zio AT Clinical Reference Manual. iRhythm Technologies, 2022.
    2. Continuous, uninterrupted refers to the recording of ECG data. Zio AT Gateway transmissions may be impacted by a variety of factors. See Product Labeling for more information.
    3. Zio AT is contraindicated for critical care patients.
    4. Do not use Zio AT for patients with symptomatic episodes where variations in cardiac performance could result in immediate danger to the patient or when real-time or in-patient monitoring should be prescribed. Refer to the Zio AT labeling and Clinical Reference Manual for full contraindications.
    5. Data on file. iRhythm Technologies, 2023.
    6. Data on file. iRhythm Technologies, 2022-2023.
    7. Zio XT Clinical Reference Manual. iRhythm Technologies, 2019.
    8. Zio monitor Instructions for Use. iRhythm Technologies, 2023.
    9. Zio AT Clinical Reference Manual. iRhythm Technologies, 2022.
    10. Data on file. iRhythm Technologies, 2021-2022.
    11. Based on a review of all online Zio XT, Zio monitor, and Zio AT end-of-wear reports. Data on file. iRhythm Technologies, 2023.
    12. Based on the US and UK data using Zio ECG monitors. Data on file. iRhythm Technologies, 2023.

    The MIL Network –

  • MIL-OSI USA: SPC Tornado Watch 695

    Source: US National Oceanic and Atmospheric Administration

    Note:  The expiration time in the watch graphic is amended if the watch is replaced, cancelled or extended.Note: Click for Watch Status Reports.
    SEL5

    URGENT – IMMEDIATE BROADCAST REQUESTED
    Tornado Watch Number 695
    NWS Storm Prediction Center Norman OK
    435 PM CDT Wed Oct 30 2024

    The NWS Storm Prediction Center has issued a

    * Tornado Watch for portions of
    Eastern Kansas
    Western Missouri

    * Effective this Wednesday afternoon and evening from 435 PM
    until 1000 PM CDT.

    * Primary threats include…
    A few tornadoes likely with a couple intense tornadoes possible
    Scattered damaging winds likely with isolated significant gusts
    to 80 mph possible
    Isolated large hail events to 1.5 inches in diameter possible

    SUMMARY…Fast moving thunderstorms over eastern Kansas will track
    across the watch area through this evening. Damaging winds and a
    few tornadoes are the primary concerns with these storms.

    The tornado watch area is approximately along and 65 statute miles
    east and west of a line from 50 miles south southwest of Chanute KS
    to 60 miles north northeast of Saint Joseph MO. For a complete
    depiction of the watch see the associated watch outline update
    (WOUS64 KWNS WOU5).

    PRECAUTIONARY/PREPAREDNESS ACTIONS…

    REMEMBER…A Tornado Watch means conditions are favorable for
    tornadoes and severe thunderstorms in and close to the watch
    area. Persons in these areas should be on the lookout for
    threatening weather conditions and listen for later statements
    and possible warnings.

    &&

    OTHER WATCH INFORMATION…CONTINUE…WW 693…WW 694…

    AVIATION…Tornadoes and a few severe thunderstorms with hail
    surface and aloft to 1.5 inches. Extreme turbulence and surface wind
    gusts to 70 knots. A few cumulonimbi with maximum tops to 450. Mean
    storm motion vector 24035.

    …Hart

    Note: The Aviation Watch (SAW) product is an approximation to the watch area. The actual watch is depicted by the shaded areas.
    SAW5
    WW 695 TORNADO KS MO 302135Z – 310300Z
    AXIS..65 STATUTE MILES EAST AND WEST OF LINE..
    50SSW CNU/CHANUTE KS/ – 60NNE STJ/SAINT JOSEPH MO/
    ..AVIATION COORDS.. 55NM E/W /31WSW OSW – 64SW DSM/
    HAIL SURFACE AND ALOFT..1.5 INCHES. WIND GUSTS..70 KNOTS.
    MAX TOPS TO 450. MEAN STORM MOTION VECTOR 24035.

    LAT…LON 37009700 40569572 40569324 37009465

    THIS IS AN APPROXIMATION TO THE WATCH AREA. FOR A
    COMPLETE DEPICTION OF THE WATCH SEE WOUS64 KWNS
    FOR WOU5.

    Watch 695 Status Report Message has not been issued yet.

    Note:  Click for Complete Product Text.Tornadoes

    Probability of 2 or more tornadoes

    High (70%)

    Probability of 1 or more strong (EF2-EF5) tornadoes

    Mod (40%)

    Wind

    Probability of 10 or more severe wind events

    Mod (60%)

    Probability of 1 or more wind events > 65 knots

    Mod (30%)

    Hail

    Probability of 10 or more severe hail events

    Mod (30%)

    Probability of 1 or more hailstones > 2 inches

    Low (10%)

    Combined Severe Hail/Wind

    Probability of 6 or more combined severe hail/wind events

    High (80%)

    For each watch, probabilities for particular events inside the watch (listed above in each table) are determined by the issuing forecaster. The “Low” category contains probability values ranging from less than 2% to 20% (EF2-EF5 tornadoes), less than 5% to 20% (all other probabilities), “Moderate” from 30% to 60%, and “High” from 70% to greater than 95%. High values are bolded and lighter in color to provide awareness of an increased threat for a particular event.

    MIL OSI USA News –

  • MIL-OSI USA: Cardin, Van Hollen, Hoyer, Ruppersberger Announce Over $7.5 Million for Carroll County Regional, Tipton, and Martin State Airports

    US Senate News:

    Source: United States Senator for Maryland Ben Cardin

    WASHINGTON – U.S. Senators Ben Cardin and Chris Van Hollen, Congressmen Steny Hoyer and Dutch Ruppersberger (all D-Md.), today announced $7,556,842 in U.S. Department of Transportation awards to Carroll County Regional, Tipton and Martin State Airports for necessary upgrades to modernize their facilities and improve passenger comfort. 

    “The landmark infrastructure law enacted by President Biden in 2021 continues to invest in Maryland,” said Senator Cardin.  “It recognized that our airports, both large and small, have aging and outdated facilities that require upgrades to meet the changing demands on our aviation system and keep it safe and competitive.”

    “Our local airports are important transportation hubs that support our state’s economy, ensuring that travelers and goods get where they need to go. We fought for these investments to support the Carroll County Regional, Tipton, and Martin State airports in serving the growing needs of Maryland’s businesses, residents, and visitors,” said Senator Van Hollen.

    “President Biden and Vice President Harris’ Investing in America agenda continues to deliver for Maryland’s airports and boost our economic competitiveness,” said Congressman Hoyer. “As Chair of the Regional Leadership Council, I have worked with House Democrats and top officials in the Biden-Harris Administration to ensure that every community in America can see and feel the impact of the historic laws that Democrats passed in the 117th Congress. I was pleased to work with Team Maryland to secure these Bipartisan Infrastructure Law funds for Carroll County Regional Airport, Martin State Airport, and Tipton Airport, which will create good jobs and provide a more reliable air travel experience. Together, we will continue to lower costs, create jobs, and ensure our state’s economy works for all Marylanders.”

    “The bipartisan infrastructure law continues to reap rewards for Maryland and Marylanders including this funding for local airports, which provide a critical connection to communities and economies throughout the region,” said Congressman Ruppersberger. “This is a strategic investment that will make our airports safer, more comfortable and convenient. I look forward to even more upgrades to our nation’s aging transportation infrastructure to come.”

    The funding was awarded by the U.S. Department of Transportation’s Airport Improvement Program and Airport Terminal Program.

    The federal grants have been awarded as follows:

    1. $3,612,000. Carroll County Regional Airport: To remove a building and relocate fencing identified as obstructions by the FAA.
    2. $2,944,842, Tipton Airport: To construct a 6,000 square-foot terminal to accommodate the movement of passengers and baggage.
    3. $1,000,000, Martin State Airport: To fund the funds the construction of a new Airport Traffic Control Tower, replacing the 82-year-old sponsor-owned tower that has reached the end of its useful life.

    The Airport Improvement Program funds various types of airport infrastructure projects across the country, including repairs and upgrades to runways, taxiways, airport signage, lighting and markings – all while creating thousands of good-paying, local jobs. The members have consistently fought to provide funds for airports and terminal operators, including through the fiscal year 2024 appropriations process, which makes $3.35 billion available from the Airport and Airway Trust Fund and an additional $532 million from the general fund for AIP projects.

    The Airport Terminal Program was created in 2021 through the lawmakers’ efforts to pass the Infrastructure Investment and Jobs Act. Funded at $1 billion in fiscal year 2024, the Airport Terminal Program supports safe, sustainable, and accessible airport terminals, on-airport rail access projects, and airport-owned airport traffic control towers.

    MIL OSI USA News –

  • MIL-OSI: Silicon Motion Announces Results for the Period Ended September 30, 2024

    Source: GlobeNewswire (MIL-OSI)

    Business Highlights

    • Third quarter of 2024 sales increased 1% Q/Q and increased 23% Y/Y
      • SSD controller sales: 3Q of 2024 were flat Q/Q and increased 20% to 25% Y/Y
      • eMMC+UFS controller sales: 3Q of 2024 increased 0% to 5% Q/Q and increased 40% to 45% Y/Y
      • SSD solutions sales: 3Q of 2024 increased 5% to 10% Q/Q and increased 5% to 10% Y/Y

    Financial Highlights

      3Q 2024 GAAP 3Q 2024 Non-GAAP
    • Net sales $212.4 million (+1% Q/Q, +23% Y/Y) $212.4 million (+1% Q/Q, +23% Y/Y)
    • Gross margin 46.7% 46.8%
    • Operating margin 11.5% 16.1%
    • Earnings per diluted ADS $0.62 $0.92

    TAIPEI, Taiwan and MILPITAS, Calif., Oct. 31, 2024 (GLOBE NEWSWIRE) — Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion,” the “Company” or “we”) today announced its financial results for the quarter ended September 30, 2024. For the third quarter of 2024, net sales (GAAP) increased sequentially to $212.4 million from $210.7 million in the second quarter of 2024. Net income (GAAP) decreased to $20.8 million, or $0.62 per diluted American Depositary Share of the Company (“ADS”) (GAAP), from net income (GAAP) of $30.8 million, or $0.91 per diluted ADS (GAAP), in the second quarter of 2024.

    For the third quarter of 2024, net income (non-GAAP) decreased to $31.0 million, or $0.92 per diluted ADS (non-GAAP), from net income (non-GAAP) of $32.5 million, or $0.96 per diluted ADS (non-GAAP), in the second quarter of 2024.

    All financial numbers are in U.S. dollars unless otherwise noted.

    Third Quarter of 2024 Review
    “We continued to execute well in the third quarter of 2024, delivering revenue above the mid-point of our guided range and further expanding our gross margins,” said Wallace Kou, President and CEO of Silicon Motion. “Our eMMC and UFS controller revenue grew modestly, and our SSD controller revenue remained strong given continued growth in the OEM channel. We continue to outperform the market through new wins we secured this quarter with both NAND makers and module makers that we expect will ramp-up in 2025. We expect this trend to continue as we expand our product portfolio and deliver world-class controllers to the market.”

    Key Financial Results

    (in millions, except percentages and per ADS amounts) GAAP Non-GAAP
    3Q 2024
    		   2Q 2024
    		   3Q 2023
    		   3Q 2024
    		   2Q 2024
    		   3Q 2023
    		  
    Revenue $212.4   $210.7   $172.3   $212.4   $210.7   $172.3  
    Gross profit   $99.3     $96.8     $73.1     $99.3     $96.8     $73.3  
    Percent of revenue   46.7%     45.9%     42.4%     46.8%     46.0%     42.5%  
    Operating expenses $74.8   $66.0   $58.1   $65.1   $62.1   $49.5  
    Operating income   $24.5     $30.7     $15.0     $34.2     $34.7     $23.8  
    Percent of revenue   11.5%     14.6%     8.7%     16.1%     16.5%     13.8%  
    Earnings per diluted ADS $0.62   $0.91   $0.32   $0.92   $0.96   $0.63  


    Other Financial Information

    (in millions) 3Q 2024
    		   2Q 2024
    		   3Q 2023
    		  
    Cash, cash equivalents, restricted cash and short-term investments—end of period $368.6   $343.6   $350.3  
    Routine capital expenditures $7.4   $6.3   $6.3  
    Dividend payments $16.8   $16.8     —  

    During the third quarter of 2024, we had $12.4 million of capital expenditures, including $7.4 million for the routine purchase of testing equipment, software, design tools and other items, and $5.0 million for building construction in Hsinchu.

    Business Outlook
    “Looking ahead, we expect to experience gains from greater outsourcing by our NAND flash maker partners, which should continue to deliver revenue and profitability growth for the company,” said Wallace Kou, President and CEO of Silicon Motion. “In the current quarter, we are introducing two key new controllers, including our first AI/enterprise server MonTitan controller and our first PCIe Gen 5.0 client SSD controller, placing Silicon Motion in an exceptionally strong position entering calendar 2025. While the seasonal holiday demand is expected to be more muted than in past years, we are confident that our highly differentiated controller solutions for PCs, smartphones and now enterprise-class storage controllers will further strengthen our market leadership position and will build on our foundation for strong, sustainable long-term growth.” 

    For the fourth quarter of 2024, management expects:

    ($ in millions) GAAP Non-GAAP Adjustment Non-GAAP
    Revenue $191 to $202
    -10% to -5% Q/Q
    -6% to 0% Y/Y    		 — $191 to $202
    -10% to -5% Q/Q
    -6% to 0% Y/Y
    Gross margin 46.3% to 47.4% Approximately $0.3* 46.5 % to 47.5%
    Operating margin 8.0% to 9.9% Approximately $13.4 to $14.4** 15.6% to 16.6%

    * Projected gross margin (non-GAAP) excludes $0.3 million of stock-based compensation.
    ** Projected operating margin (non-GAAP) excludes $13.4 million to $14.4 million of stock-based compensation and dispute related expenses.

    Conference Call & Webcast:
    The Company’s management team will conduct a conference call at 8:00 am Eastern Time on October 31, 2024.

    Conference Call Details
    Participants must register in advance to join the conference call using the link provided below. Conference access information (including dial-in information and a unique access PIN) will be provided in the email received upon registration.

    Participant Online Registration:
    https://register.vevent.com/register/BI3e5d77077ee94ca9b9fd61325f52a0e9

    A webcast of the call will be available on the Company’s website at www.siliconmotion.com.

    Discussion of Non-GAAP Financial Measures

    To supplement the Company’s unaudited selected financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude stock-based compensation and other items, including gross profit (non-GAAP), gross margin (non-GAAP), operating expenses (non-GAAP), operating profit (non-GAAP), operating margin (non-GAAP), non-operating income (expense) (non-GAAP), net income (non-GAAP), and earnings per diluted ADS (non-GAAP). These non-GAAP measures are not in accordance with or an alternative to GAAP and may be different from similarly-titled non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measure. We compensate for the limitations of our non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

    Our non-GAAP financial measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not indicative of our core operating results and because they are consistent with the financial models and estimates published by many analysts who follow the Company. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with our forecasts, and for benchmarking our performance externally against our competitors. Also, when evaluating potential acquisitions, we exclude the items described below from our consideration of the target’s performance and valuation. Since we find these measures to be useful, we believe that our investors benefit from seeing the results from management’s perspective in addition to seeing our GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:

    • the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;
    • the ability to better identify trends in the Company’s underlying business and perform related trend analysis;
    • a better understanding of how management plans and measures the Company’s underlying business; and
    • an easier way to compare the Company’s operating results against analyst financial models and operating results of our competitors that supplement their GAAP results with non-GAAP financial measures.

    The following are explanations of each of the adjustments that we incorporate into our non-GAAP measures, as well as the reasons for excluding each of these individual items in our reconciliation of these non-GAAP financial measures:

    Stock-based compensation expense consists of non-cash charges related to the fair value of restricted stock units awarded to employees. The Company believes that the exclusion of these non-cash charges provides for more accurate comparisons of our operating results to our peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact of share-based compensation on its operating results.

    Restructuring charges relate to the restructuring of our underperforming product lines, principally the write-down of NAND flash, embedded DRAM and SSD inventory valuation and severance payments. 

    M&A transaction expenses consist of legal, financial advisory and other fees related to the transaction.

    Dispute related expenses consist of legal, consultant, other fees and resolution related to the dispute.

    Foreign exchange loss (gain) consists of translation gains and/or losses of non-US$ denominated current assets and current liabilities, as well as certain other balance sheet items which result from the appreciation or depreciation of non-US$ currencies against the US$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures.

    Unrealized holding loss (gain) on investments relates to the net change in fair value of long-term investments.

     
    Silicon Motion Technology Corporation
    Consolidated Statements of Income
    (in thousands, except percentages and per ADS data, unaudited)
             
        For Three Months Ended   For the Nine Months Ended
        Sep. 30,   Jun. 30,   Sep. 30,   Sep. 30,   Sep. 30,
        2023   2024   2024   2023   2024
        ($)   ($)   ($)   ($)   ($)
    Net Sales   172,333     210,670     212,412     436,763     612,392  
    Cost of sales   99,193     113,893     113,142     254,897     331,227  
    Gross profit   73,140     96,777     99,270     181,866     281,165  
    Operating expenses                    
    Research & development   41,740     50,788     58,486     117,926     163,666  
    Sales & marketing   6,862     6,777     7,009     20,715     20,090  
    General & administrative   8,939     7,215     9,315     20,323     23,003  
    Loss from settlement of litigation   591     1,250     –     591     1,250  
    Operating income   15,008     30,747     24,460     22,311     73,156  
    Non-operating income (expense)                    
    Interest income, net   3,480     4,175     3,518     8,026     10,760  
    Foreign exchange gain (loss), net   569     245     (488 )   2,030     345  
    Unrealized holding gain(loss) on investments   (2,828 )   1,855     (602 )   8,053     (355 )
    Subtotal   1,221     6,275     2,428     18,109     10,750  
    Income before income tax   16,229     37,022     26,888     40,420     83,906  
    Income tax expense   5,642     6,201     6,045     8,639     16,226  
    Net income   10,587     30,821     20,843     31,781     67,680  
                         
    Earnings per basic ADS   0.32     0.92     0.62     0.95     2.01  
    Earnings per diluted ADS   0.32     0.91     0.62     0.95     2.01  
                         
    Margin Analysis:                    
    Gross margin   42.4 %   45.9 %   46.7 %   41.6 %   45.9 %
    Operating margin   8.7 %   14.6 %   11.5 %   5.1 %   11.9 %
    Net margin   6.1 %   14.6 %   9.8 %   7.3 %   11.1 %
                         
    Additional Data:                    
    Weighted avg. ADS equivalents   33,413     33,684     33,687     33,332     33,627  
    Diluted ADS equivalents   33,471     33,697     33,700     33,431     33,691  
                                   
     
    Silicon Motion Technology Corporation
    Reconciliation of GAAP to Non-GAAP Operating Results
    (in thousands, except percentages and per ADS data, unaudited)
             
        For Three Months Ended   For the Nine Months Ended
        Sep. 30,   Jun. 30,   Sep. 30,   Sep. 30,   Sep. 30,
        2023   2024   2024   2023   2024
        ($)   ($)   ($)   ($)   ($)
    Gross profit (GAAP)   73,140     96,777     99,270     181,866     281,165  
    Gross margin (GAAP)   42.4 %   45.9 %   46.7 %   41.6 %   45.9 %
    Stock-based compensation (A)   94     14     63     300     149  
    Restructuring charges   88     46     –     3,347     46  
    Gross profit (non-GAAP)   73,322     96,837     99,333     185,513     281,360  
    Gross margin (non-GAAP)   42.5 %   46.0 %   46.8 %   42.5 %   45.9 %
                         
    Operating expenses (GAAP)   58,132     66,030     74,810     159,555     208,009  
    Stock-based compensation (A)   (3,751 )   (371 )   (3,595 )   (11,460 )   (7,059 )
    M&A transaction expenses   (708 )   –     –     (2,893 )   –  
    Dispute related expenses   (3,495 )   (3,527 )   (6,076 )   (3,495 )   (11,135 )
    Restructuring charges   (661 )   –     –     (4,581 )   –  
    Operating expenses (non-GAAP)   49,517     62,132     65,139     137,126     189,815  
                         
    Operating profit (GAAP)   15,008     30,747     24,460     22,311     73,156  
    Operating margin (GAAP)   8.7 %   14.6 %   11.5 %   5.1 %   11.9 %
    Total adjustments to operating profit   8,797     3,958     9,734     26,076     18,389  
    Operating profit (non-GAAP)   23,805     34,705     34,194     48,387     91,545  
    Operating margin (non-GAAP)   13.8 %   16.5 %   16.1 %   11.1 %   14.9 %
                         
    Non-operating income (expense) (GAAP)   1,221     6,275     2,428     18,109     10,750  
    Foreign exchange loss (gain), net   (569 )   (245 )   488     (2,030 )   (345 )
    Unrealized holding loss (gain) on investments   2,828     (1,855 )   602     (8,053 )   355  
                         
    Non-operating income (expense) (non-GAAP)   3,480     4,175     3,518     8,026     10,760  
                         
    Net income (GAAP)   10,587     30,821     20,843     31,781     67,680  
    Total pre-tax impact of non-GAAP adjustments   11,056     1,858     10,824     15,993     18,399  
    Income tax impact of non-GAAP adjustments   (584 )   (218 )   (649 )   (2,968 )   (1,014 )
    Net income (non-GAAP)   21,059     32,461     31,018     44,806     85,065  
                         
    Earnings per diluted ADS (GAAP)   $0.32     $0.91     $0.62     $0.95     $2.01  
    Earnings per diluted ADS (non-GAAP)   $0.63     $0.96     $0.92     $1.33     $2.52  
                         
    Shares used in computing earnings per diluted ADS (GAAP)   33,471     33,697     33,700     33,431     33,691  
    Non-GAAP adjustments   128     18     109     136     52  
    Shares used in computing earnings per diluted ADS (non-GAAP)   33,599     33,715     33,809     33,567     33,743  
                         
    (A) Excludes stock-based compensation as follows:                    
    Cost of sales   94     14     63     300     149  
    Research & development   2,422     94     2,377     7,605     4,614  
    Sales & marketing   521     173     455     1,496     975  
    General & administrative   808     104     763     2,359     1,470  
                                   
     
    Silicon Motion Technology Corporation
    Consolidated Balance Sheet
    (In thousands, unaudited)
                       
        Sep. 30,
    		   Jun. 30,
    		   Sep. 30,
        2023
    		   2024
    		   2024
        ($)
    		   ($)
    		   ($)
    Cash and cash equivalents   295,385     289,175     313,924  
    Accounts receivable (net)   193,389     191,692     202,726  
    Inventories   199,003     240,811     214,574  
    Refundable deposits – current   49,445     51,036     51,102  
    Prepaid expenses and other current assets   16,896     31,460     38,246  
    Total current assets   754,118     804,174     820,572  
    Long-term investments   17,023     17,301     16,878  
    Property and equipment (net)   162,107     179,550     181,983  
    Other assets   33,672     29,121     29,304  
    Total assets   966,920     1,030,146     1,048,737  
                       
    Accounts payable   26,975     36,411     30,888  
    Income tax payable   26,279     14,103     14,444  
    Accrued expenses and other current liabilities   77,502     134,947     131,143  
    Total current liabilities   130,756     185,461     176,475  
    Other liabilities   62,112     60,182     62,673  
    Total liabilities   192,868     245,643     239,148  
    Shareholders’ equity   774,052     784,503     809,589  
    Total liabilities & shareholders’ equity   966,920     1,030,146     1,048,737  
                       
     
    Silicon Motion Technology Corporation
    Condensed Consolidated Statements of Cash Flows
    (in thousands, unaudited)
             
        For Three Months Ended   For the Nine Months Ended
        Sep. 30,   Jun. 30,   Sep. 30,   Sep. 30,   Sep. 30,
        2023   2024   2024   2023   2024
        ($)   ($)   ($)   ($)   ($)
    Net income   10,587     30,821     20,843     31,781     67,680  
    Depreciation & amortization   8,043     5,802     6,664     19,032     18,075  
    Stock-based compensation   3,845     385     3,658     11,760     7,208  
    Investment losses (gain) & disposals   3,135     (1,855 )   602     (7,556 )   355  
    Changes in operating assets and liabilities   39,302     (13,660 )   22,280     52,910     (9,967 )
    Net cash provided by (used in) operating activities   64,912     21,493     54,047     107,927     83,351  
                         
    Purchase of property & equipment   (17,052 )   (10,427 )   (12,436 )   (40,687 )   (33,612 )
    Net cash provided by (used in) investing activities   (17,052 )   (10,427 )   (12,436 )   (40,687 )   (33,612 )
                         
    Dividend payments   –     (16,820 )   (16,812 )   (15 )   (50,441 )
    Net cash used in financing activities   –     (16,820 )   (16,812 )   (15 )   (50,441 )
                         
    Net increase (decrease) in cash, cash equivalents & restricted cash   47,860     (5,754 )   24,799     67,225     (702 )
    Effect of foreign exchange changes   (2,528 )   86     186     (3,977 )   308  
    Cash, cash equivalents & restricted cash—beginning of period   304,971     349,279     343,611     287,055     368,990  
    Cash, cash equivalents & restricted cash—end of period   350,303     343,611     368,596     350,303     368,596  
                                   

    Shareholder Litigation
    On August 31, 2023, a Silicon Motion ADS holder (the “Plaintiff”) filed a putative class action complaint in the United States District Court for the Southern District of California, captioned Water Island Event-Driven Fund v. MaxLinear, Inc., No. 23-cv-01607 (S.D. Cal.), asserting claims against MaxLinear and two of its officers (the “MaxLinear Defendants”) for alleged violations of (i) Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated thereunder and (ii) Section 20(a) of the Exchange Act, in connection with alleged false and misleading statements made by the MaxLinear Defendants between June 6, 2023 and July 26, 2023 concerning MaxLinear’s intent to consummate the merger agreement it had entered into with Silicon Motion. On August 28, 2024, the Court dismissed the complaint against the MaxLinear Defendants without prejudice for lack of standing.  On September 18, 2024, the Plaintiff filed an amended complaint against the MaxLinear Defendants, and also added Silicon Motion and two of its officers (the “Silicon Motion Defendants”), asserting substantially similar claims under the Exchange Act. The complaint seeks compensatory damages, including interest, costs and expenses, and such other equitable or injunctive relief that the court deems appropriate. Motions to dismiss the amended complaint are expected to be fully briefed by February 2025.  The Silicon Motion Defendants believe that the claims asserted against them are without merit and intend to defend themselves vigorously.

    About Silicon Motion:
    We are the global leader in supplying NAND flash controllers for solid state storage devices.  We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications.  We also supply customized high-performance hyperscale data center and specialized industrial and automotive SSD solutions.  Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs.  For further information on Silicon Motion, visit us at www.siliconmotion.com.

    Forward-Looking Statements:
    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customer’s businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customer’s business taking into account the ongoing U.S.-China tariffs and trade disputes; the uncertainties associated with any future global or regional pandemic; the continuing tensions between Taiwan and China including enhanced military activities; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; changes in our cost of finished goods; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our board of directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2024. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this press release.

    The MIL Network –

  • MIL-OSI: Silicon Motion Appoints Jason Tsai as Chief Financial Officer

    Source: GlobeNewswire (MIL-OSI)

    TAIPEI, Taiwan and MILPITAS, Calif., Oct. 31, 2024 (GLOBE NEWSWIRE) — Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion” or the “Company”), a global leader in designing and marketing NAND flash controllers for solid state storage devices, today announced, following a search process, that Jason Tsai, currently the Interim Chief Financial Officer and VP of Investor Relations and Finance of the Company, has been appointed the Chief Financial Officer, effective October 28, 2024. Mr. Tsai has served as our Interim CFO since April 25, 2024.

    Wallace Kou, Chief Executive Officer of Silicon Motion, said, “Jason has made innumerable contributions to the strong performance of our finance team and the financial results of the Company in his previous roles as Interim CFO and VP of Investor Relations and Finance. After a six-month search, our Board unanimously resolved that with his long history with the Company and his in-depth knowledge of our business, our customers and our industry, Jason is the ideal choice to help align our long-term strategy with our strong financial performance and operational excellence in the years ahead.”

    “I am excited for this opportunity to help Silicon Motion through its next chapter,” said Jason Tsai. “I believe that the Company is poised for significant growth as it extends its market leading position in its current markets and capitalize on its new and growing opportunities in the enterprise storage market.”

    Jason has over 25 years of finance leadership experience in the semiconductor, hardware and software (SaaS) sectors. Prior to rejoining Silicon Motion last year, he held finance leadership positions at Zendesk and Synaptics and brings an extensive background in financial planning, treasury, capital markets, investor relations and strategic planning.

    ABOUT SILICON MOTION:

    We are the global leader in supplying NAND flash controllers for solid state storage devices.  We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications.  We also supply customized high-performance hyperscale data center and specialized industrial and automotive SSD solutions.  Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs.  For further information on Silicon Motion, visit us at www.siliconmotion.com.

    FORWARD-LOOKING STATEMENTS:

    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customer’s businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customer’s business taking into account the ongoing U.S.-China tariffs and trade disputes; the uncertainties associated with any future global or regional pandemic; the continuing tensions between Taiwan and China including enhanced military activities; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; changes in our cost of finished goods; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our board of directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2024. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this press release.

    Investor Contact:

    Tom Sepenzis
    Senior Director of IR & Strategy
    E-mail: tsepenzis@siliconmotion.com

    Selina Hsieh
    Investor Relations
    ir@siliconmotion.com

    The MIL Network –

  • MIL-OSI Economics: Africa Investment Forum welcomes BADEA as new partner ahead of the December Market Days in Rabat

    Source: African Development Bank Group

    The Arab Bank for Economic Development in Africa (BADEA) has joined the Africa Investment Forum as a founding partner, marking a new phase in the Forum’s expansion and influence as a catalyst for mega investments into the continent.

    The official announcement came during a breakfast meeting of heads of the Africa Investment Forum Founding Partner institutions, convened by the African Development Bank in Washington, DC on the sidelines of the International Monetary Fund and World Bank’s annual meetings. During the meeting, the partners examined and adopted a new strategic framework to govern the forum. The meeting took place on Friday 25 October.

    In welcoming BADEA as a new partner, African Development Bank President Akinwumi Adesina said: “Since 2018, BADEA has been a steadfast supporter of the Africa Investment Forum, consistently contributing to the growth and success of this platform.”

    The Arab Bank for Economic Development in Africa is a multilateral development financial institution owned by 18 Arab countries. Its operations cover the entire Sub-Saharan African region.

    BADEA group president Dr. Sidi Ould Tah said the main shareholders of his bank had been working on a new mechanism to support investment flows to Africa. The group has sovereign funds under management with assets in the trillions of dollars, of which they had pledged to channel a part for Africa’s infrastructure needs.

    “The role of BADEA is to catalyse resources for Africa. BADEA will work with all the member countries of AIF to make this pledge a reality,” Tah said.                                 

    The addition of BADEA brings the AIF’s founding partners to nine:  the African Development Bank, Afreximbank, Africa Finance Corporation, Africa50, Development Bank of Southern Africa, European Investment Bank, Islamic Development Bank, and Trade and Development Bank.

    Meeting of AIF founding partners in Washington, DC October 2024

    Heads and representatives of each of the partners who attended the meeting included included Trade and Development Bank President and CEO Admassu Tadesse, Africa Finance Corporation’s CEO  Samaila Zubairu, Africa50  President Alain Ebobissé, European Investment Bank Vice President Ambroise Fayolle,  Hani Salem Sonbol  Chief Executive Officer of the International Islamic Trade Finance Corporation representing Islamic Development Bank President Dr. Muhammad Sulaiman Al Jasser, and Afreximbank’s Director for Export Development Oluranti Doherty, who represented its president.

    Adesina also commended the founding partners for their energy, drive and momentum which he described as a testament to their confidence in the Forum.

    The AIF’s Market Days events, held annually, have drawn sovereign and non-sovereign investors from around the world, enabling a shift in risk perception and fostering confidence in Africa’s investment landscape.

    The platform has actively supported women-led businesses under its Women as Investment Champions pillar with examples such as Mobihealth International Ltd (Healthcare, Nigeria) which was supported to access grant and loan funding for feasibility studies and pan-African expansion.

    From the African Development Bank, Senior Vice President Marie Laure Akin-Olugbade, Hassatou N’Sele Vice President for Finance and CFO, Beth Dunford, Vice President for Agriculture, Human and Social Development,  Nnenna Nwabufo, Vice President for Regional Development, Integration and Business Delivery and Kevin Urama, Chief Economist and Vice President, Economic Governance and Knowledge Management, also attended the meeting. The Senior Director of Syndications, the Africa Investment Forum and Client Solutions, Max Magor Ndiaye, and the Special Representative of President Adesina, Yacine Fall were also present.

    The 2024 Market Days will take place from 4-6 December 2024 in Rabat, Morocco, under the theme: “Leveraging Innovative Partnerships for Scale.”

    MIL OSI Economics –

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

    Source: African Development Bank Group

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

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

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

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

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

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

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

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

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

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

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

    MIL OSI Economics –

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

    Source: Hong Kong Government special administrative region

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

    MIL OSI Asia Pacific News –

  • MIL-OSI USA: DOD Chief Digital and AI Office Hosts Responsible AI in Defense Forum

    Source: United States Department of Defense

    Today, the Department of Defense (DoD) Chief Digital and Artificial Intelligence Office (CDAO) concluded its “Responsible AI in Defense Forum,” a 3-day event that brought together defense leaders, AI experts, policymakers, and global innovators to focus on advancements in Responsible AI (RAI), held at the Hyatt Regency in Reston, VA, Oct. 28-30.

    The Responsible AI in Defense Forum provided an opportunity to discuss technical capabilities and challenges with diverse stakeholders and to examine RAI in the context of international military cooperation.

    “Over the last dozen years, as advances in machine learning yielded new breakthroughs, we’ve worked hard at the Pentagon to be a global leader in establishing responsible policies for military use of autonomous systems and AI,” said Deputy Secretary of Defense Kathleen Hicks during a keynote address delivered via video. “From the beginning, DoD’s approach to responsible AI has been guided by our understanding that AI will only be used and effective where it is trusted and trustworthy. Today we’re at the forefront of accelerating the adoption of trusted AI, and we can’t afford to fall behind.”

    The multiple-day Forum was designed to explore a different topic each day, with participation aligned to the topic. On day one, CDAO led a meeting among the Partnership for Defense’s (PfD) 16 members to examine strategies and tools for enabling RAI across defense enterprises. On day two, CDAO convened government, industry, and academic experts for a series of discussions on operationalizing RAI in defense. Finally, day three featured a closed-door meeting focused on aligning NATO allies and partners with RAI implementation strategies. Each day of the Forum helped advance the CDAO’s critically important work around the responsible implementation of AI in defense.

    CDAO Dr. Radha Plumb kicked off the Forum with the AI Partnership for Defense.

    “The RAI in Defense Forum — and first-ever in-person PfD on Responsible AI — provided an unprecedented opportunity for the Department to connect its practical Responsible AI tools and guidance with critical partners to build leadership on global Responsible AI standards and practices,” stated Plumb.

    The CDAO is pleased to have hosted this pivotal gathering, having achieved its key objectives of strengthening CDAO’s relationships with PfD partners, sharing RAI implementation lessons learned, and promoting RAI globally. As a result of this effort, the CDAO looks forward to accelerated progress in RAI, both at home and abroad.

    About the CDAO

    The CDAO became operational in June 2022 and is dedicated to integrating and optimizing AI capabilities across the DoD. The office is responsible for accelerating the DoD’s adoption of data, analytics, and AI, enabling the Department’s digital infrastructure and policy adoption to deliver scalable AI-driven solutions for enterprise and joint use cases, safeguarding the nation against current and emerging threats.

    For more information about the CDAO, please visit our website at ai.mil. You can also connect with the CDAO on LinkedIn (@ DoD Chief Digital and Artificial Intelligence Office) and X, formally known as Twitter (@dodcdao). Additional updates and news can be found on the CDAO Unit Page on DVIDS.

    MIL OSI USA News –

  • MIL-OSI USA: SPC Tornado Watch 696

    Source: US National Oceanic and Atmospheric Administration

    Note:  The expiration time in the watch graphic is amended if the watch is replaced, cancelled or extended.Note: Click for Watch Status Reports.
    SEL6

    URGENT – IMMEDIATE BROADCAST REQUESTED
    Tornado Watch Number 696
    NWS Storm Prediction Center Norman OK
    555 PM CDT Wed Oct 30 2024

    The NWS Storm Prediction Center has issued a

    * Tornado Watch for portions of
    Northeast Oklahoma

    * Effective this Wednesday afternoon from 555 PM until Midnight
    CDT.

    * Primary threats include…
    A few tornadoes likely with a couple intense tornadoes possible
    Scattered damaging winds likely with isolated significant gusts
    to 80 mph possible
    Scattered large hail events to 1.5 inches in diameter possible

    SUMMARY…A line of storms over north-central Oklahoma will continue
    to intensify and spread eastward through the evening, posing a risk
    for damaging winds gusts and a few tornadoes.

    The tornado watch area is approximately along and 55 statute miles
    east and west of a line from 15 miles northeast of Bartlesville OK
    to 60 miles south of Chandler OK. For a complete depiction of the
    watch see the associated watch outline update (WOUS64 KWNS WOU6).

    PRECAUTIONARY/PREPAREDNESS ACTIONS…

    REMEMBER…A Tornado Watch means conditions are favorable for
    tornadoes and severe thunderstorms in and close to the watch
    area. Persons in these areas should be on the lookout for
    threatening weather conditions and listen for later statements
    and possible warnings.

    &&

    OTHER WATCH INFORMATION…CONTINUE…WW 693…WW 694…WW 695…

    AVIATION…Tornadoes and a few severe thunderstorms with hail
    surface and aloft to 1.5 inches. Extreme turbulence and surface wind
    gusts to 70 knots. A few cumulonimbi with maximum tops to 500. Mean
    storm motion vector 24035.

    …Hart

    SEL6

    URGENT – IMMEDIATE BROADCAST REQUESTED
    Tornado Watch Number 696
    NWS Storm Prediction Center Norman OK
    555 PM CDT Wed Oct 30 2024

    The NWS Storm Prediction Center has issued a

    * Tornado Watch for portions of
    Northeast Oklahoma

    * Effective this Wednesday afternoon from 555 PM until Midnight
    CDT.

    * Primary threats include…
    A few tornadoes likely with a couple intense tornadoes possible
    Scattered damaging winds likely with isolated significant gusts
    to 80 mph possible
    Scattered large hail events to 1.5 inches in diameter possible

    SUMMARY…A line of storms over north-central Oklahoma will continue
    to intensify and spread eastward through the evening, posing a risk
    for damaging winds gusts and a few tornadoes.

    The tornado watch area is approximately along and 55 statute miles
    east and west of a line from 15 miles northeast of Bartlesville OK
    to 60 miles south of Chandler OK. For a complete depiction of the
    watch see the associated watch outline update (WOUS64 KWNS WOU6).

    PRECAUTIONARY/PREPAREDNESS ACTIONS…

    REMEMBER…A Tornado Watch means conditions are favorable for
    tornadoes and severe thunderstorms in and close to the watch
    area. Persons in these areas should be on the lookout for
    threatening weather conditions and listen for later statements
    and possible warnings.

    &&

    OTHER WATCH INFORMATION…CONTINUE…WW 693…WW 694…WW 695…

    AVIATION…Tornadoes and a few severe thunderstorms with hail
    surface and aloft to 1.5 inches. Extreme turbulence and surface wind
    gusts to 70 knots. A few cumulonimbi with maximum tops to 500. Mean
    storm motion vector 24035.

    …Hart

    Note: The Aviation Watch (SAW) product is an approximation to the watch area. The actual watch is depicted by the shaded areas.
    SAW6
    WW 696 TORNADO OK 302255Z – 310500Z
    AXIS..55 STATUTE MILES EAST AND WEST OF LINE..
    15NE BVO/BARTLESVILLE OK/ – 60S CQB/CHANDLER OK/
    ..AVIATION COORDS.. 50NM E/W /33WSW OSW – 42NNE ADM/
    HAIL SURFACE AND ALOFT..1.5 INCHES. WIND GUSTS..70 KNOTS.
    MAX TOPS TO 500. MEAN STORM MOTION VECTOR 24035.

    LAT…LON 36919483 34849585 34849779 36919682

    THIS IS AN APPROXIMATION TO THE WATCH AREA. FOR A
    COMPLETE DEPICTION OF THE WATCH SEE WOUS64 KWNS
    FOR WOU6.

    Watch 696 Status Report Message has not been issued yet.

    Note:  Click for Complete Product Text.Tornadoes

    Probability of 2 or more tornadoes

    High (70%)

    Probability of 1 or more strong (EF2-EF5) tornadoes

    Mod (40%)

    Wind

    Probability of 10 or more severe wind events

    High (70%)

    Probability of 1 or more wind events > 65 knots

    Mod (30%)

    Hail

    Probability of 10 or more severe hail events

    Mod (40%)

    Probability of 1 or more hailstones > 2 inches

    Low (20%)

    Combined Severe Hail/Wind

    Probability of 6 or more combined severe hail/wind events

    High (90%)

    For each watch, probabilities for particular events inside the watch (listed above in each table) are determined by the issuing forecaster. The “Low” category contains probability values ranging from less than 2% to 20% (EF2-EF5 tornadoes), less than 5% to 20% (all other probabilities), “Moderate” from 30% to 60%, and “High” from 70% to greater than 95%. High values are bolded and lighter in color to provide awareness of an increased threat for a particular event.

    MIL OSI USA News –

  • MIL-OSI Banking: Trial Use of a Generative AI-based Demand Forecasting Application to Drive E-commerce Sales Growth in Southeast Asia

    Source: Panasonic

    Headline: Trial Use of a Generative AI-based Demand Forecasting Application to Drive E-commerce Sales Growth in Southeast Asia

    Aiming to expand the direct-to-consumer (D2C) sales of Panasonic products with a focus on home appliances and consumer electronics in Southeast Asian markets, GDX Co., Ltd. (Head Office: Shinagawa-ku, Tokyo, CEO: Jun Horata, hereafter “GDX”) has developed a new application called AI Commerce Series 1 “Demand Forecast” in collaboration with Panasonic Appliances Marketing Asia Pacific (hereafter “PAPMAP”) based in Malaysia and affiliated with Panasonic Corporation (Head Office: Minato-ku, Tokyo, CEO: Masahiro Shinada, hereafter “Panasonic”), and began its trial use in Thailand.
    AI Commerce Series 1 “Demand Forecast” is an application for demand prediction independently developed by GDX to maximize sales and streamline inventory control. Specifically, generative AI selects the scenario best suited for the situation from the predictions generated by AI based on 36 scenarios and outputs various demand forecast data in the format specified by users. PAPMAP has collaborated with GDX in application development to improve the accuracy of demand forecasting for e-commerce sales in Southeast Asia and to develop a user-friendly generative AI-based tool for its marketing staff without AI-related expertise.
    In October 2024, a Panasonic sales company in Thailand (Panasonic Solutions (Thailand) Co., Ltd.) began the trial use of this new application to improve the accuracy of e-commerce sales forecasts for home appliances and consumer electronics. This will enable PAPMAP to predict future demand effortlessly and simply, without reliance on individual expertise, and to incorporate the forecast into product purchase planning by applying generative AI and machine learning to Panasonic’s sales-related data, thereby reducing the loss of sales opportunities. The company will start by expanding e-commerce sales in Thailand.
    By contributing to Panasonic’s e-commerce sales through the use of advanced generative AI technology, GDX aims to open up new possibilities for D2C sales in Southeast Asian markets. PAPMAP will verify the effectiveness and usability of the application through trial use in Thailand and consider broadening the scope of collaboration in e-commerce sales with a view to expanding its use in the rest of Southeast Asia.
    In order to support the DX promotion of brand companies’ entire value chain, GDX plans to establish a series of AI Commerce products as generative AI-based solutions and release them successively.

    MIL OSI Global Banks –

  • MIL-OSI: Capgemini Q3 2024 revenues

    Source: GlobeNewswire (MIL-OSI)

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

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

    Capgemini Q3 2024 revenues

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

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

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

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

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

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

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

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

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

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

    OPERATIONS BY REGION

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

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

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

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

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

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

    OPERATIONS BY BUSINESS        

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

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

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

    HEADCOUNT

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

    OUTLOOK

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

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

    The inorganic contribution to growth should be 40 basis points.

    CONFERENCE CALL

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

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

    PROVISIONAL CALENDAR

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

    DISCLAIMER

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

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

    ABOUT CAPGEMINI

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

    Get the Future You Want | www.capgemini.com

    * *

    *

    APPENDIX3F1

    BUSINESS CLASSIFICATION

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

    DEFINITIONS

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

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

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

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

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

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

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

    REVENUES BY REGION

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

    REVENUES BY BUSINESS

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

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

    Attachments

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    Amundi: Third quarter and nine-month 2024 results

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

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

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

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

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

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

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

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

    Technology: revenues +42% Q3/Q3

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

    Paris, 30 October 2024

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

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

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

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

    * * * * *

    Further progress in achieving our 2025 Ambitions plan

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

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

    Activity

    Market environment

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

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

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

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

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

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

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

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

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

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

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

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

    Results

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

    Adjusted data2

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

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

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

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

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

    The increase is mainly due to:

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

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

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

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

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

    Accounting data in the third quarter of 2024

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

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

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

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

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

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

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

    Accounting data for the first 9 months of 2024

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

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

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

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

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

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

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

    * * * * *

    APPENDICES

    Adjusted income statement2of the first 9 months of 2024 and 2023

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

    Adjusted income statement2of the third quarter of 2024

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

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

    (€bn) Assets under management Net

    inflows

    		 Market &

    Forex Effect

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

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

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

    Details of assets under management and net inflows by client segments19

    (€bn) AuM

    30.09.2024

    		 AuM

    30.09.2023

    		 % change /30.09.2023 Net flows

    Q3 2024

    		 Net flows

    Q3 2023

    		 Net flows

    9M 2024

    		 Net flows

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

    Details of assets under management and net inflows by asset classes19

    (€bn) AuM

    30.09.2024

    		 AuM

    30.09.2023

    		 % change /30.09.2023 Net flows

    Q3 2024

    		 Net flows

    Q3 2023

    		 Net flows

    9M 2024

    		 Net flows

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

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

    (€bn) AuM

    30.09.2024

    		 AuM

    30.09.2023

    		 % change /30.09.2023 Net flows

    Q3 2024

    		 Net flows

    Q3 2023

    		 Net flows

    9M 2024

    		 Net flows

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

    Details of assets under management and net inflows by geographical areas19

    (€bn) AuM

    30.09.2024

    		 AuM

    30.09.2023

    		 % change /30.09.2023 Net flows

    Q3 2024

    		 Net flows

    Q3 2023

    		 Net flows

    9M 2024

    		 Net flows

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

    Methodology Appendix

    Accounting & adjusted data

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

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

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

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

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

    Acquisition of Alpha Associates

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

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

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

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

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

    Alternative Performance Measures20

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

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

    Shareholding

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

    of shares

    		 % of share capital   Number

    of shares

    		 % of share capital   Number

    of shares

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

    Average number of shares on a pro rata basis.

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

    Financial communication calendar

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

    About Amundi

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

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

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

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

    www.amundi.com  

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

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

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

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

    Annabelle Wiriath

    Tel. + 33 1 76 32 43 92

    annabelle.wiriath@amundi.com

    WARNING

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

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

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

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

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

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

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

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

    Attachment

    The MIL Network –

  • MIL-OSI: Quadient secures €25 million Schuldschein facility from EBRD to finance R&D programs in Czech Republic

    Source: GlobeNewswire (MIL-OSI)

    Quadient secures €25 million Schuldschein facility from EBRD
    to finance R&D programs in Czech Republic

    Paris, October 30, 2024

    Quadient S.A. (Euronext Paris: QDT), a global automation platform powering secure and sustainable business connections, today announces that it has secured a new €25 million Schuldschein facility from the European Bank of Reconstruction and Development (EBRD) to finance R&D programs in Czech Republic.  

    The Schuldschein loan from the EBRD is for a total nominal amount of €25 million with maturities spread equally between 5 and 7 years. The new credit facility aims at financing R&D programs at Quadient’s state of the art R&D center in Hradec Králové, Czech Republic.

    Quadient’s R&D center in Czech Republic is the Company’s hub for its Digital automation platform development. It currently hosts around 400 employees, including software developers, testers, IT consultants, trainers and UX designers. The R&D team is responsible for driving continuous improvements to Quadient software offerings and developing innovative Digital solutions, by leveraging advanced technologies such as Artificial Intelligence, complex frameworks, and programming languages. A strong focus is placed on fostering continuous learning and collaboration by partnering with local schools and universities to train future engineers and developers. Notably, Quadient regularly collaborates with the University of Hradec Králové, offering classes, organizing IT events, and hosting BarCamps on new technologies.

    In addition to the headquarters in Hradec Králové, Quadient also has offices established in Olomouc and Ostrava in the Czech Republic. This strong presence in the Královéhradecký region is well recognized locally as Quadient Czech Republic has been named Employer of the Year for several consecutive years and recently achieved 4th place nationally.

    Laurent du Passage, Chief Financial Officer of Quadient, said: “We are pleased to be partnering with the EBRD to strengthen our R&D activities in Czech Republic. Our R&D center in Hradec Králové is central to Quadient’s Digital strategy and plays a key role in the local community. We are excited to be able to further enhance our development capabilities while maintaining our leadership in the field of innovation and Artificial Intelligence, continuing to offer best in class solutions to our customers.”

    In the full-year 2023, Quadient dedicated a total of €63.2 million to R&D spending across its three automation platforms, representing 5.9% of its Group revenue.

    About Quadient®

    Quadient is a global automation platform provider powering secure and sustainable business connections through digital and physical channels. Quadient supports businesses of all sizes in their digital transformation and growth journey, unlocking operational efficiency and creating meaningful customer experiences. Listed in compartment B of Euronext Paris (QDT) and part of the CAC® Mid & Small and EnterNext® Tech 40 indices, Quadient shares are eligible for PEA-PME investing.

    For more information about Quadient, visit https://invest.quadient.com/en/

    Contacts

    About EBRD

    The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 36 economies across three continents. The Bank is owned by 73 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, well governed, green, inclusive, resilient and integrated.

    Attachment

    The MIL Network –

  • MIL-OSI: Falcon Oil & Gas Ltd. – Results of Special Meeting of Shareholders

    Source: GlobeNewswire (MIL-OSI)

    FALCON OIL & GAS LTD.

    (“Falcon”)

    Results of Special Meeting of Shareholders

    30 October 2024 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) held its special meeting of shareholders in Dublin, Ireland yesterday.

    All resolutions considered and voted upon by the shareholders were approved. The full text of each resolution was included in the Management Information Circular communicated in advance of the meeting to shareholders.

    Ends.

    CONTACT DETAILS:

    Falcon Oil & Gas Ltd.          +353 1 676 8702
    Philip O’Quigley, CEO +353 87 814 7042
    Anne Flynn, CFO +353 1 676 9162
     
    Cavendish Capital Markets Limited (NOMAD & Broker)
    Neil McDonald / Adam Rae +44 131 220 9771

    About Falcon Oil & Gas Ltd.

    Falcon Oil & Gas Ltd. is an international oil & gas company engaged in the exploration and development of unconventional oil and gas assets, with the current portfolio focused in Australia, South Africa and Hungary. Falcon Oil & Gas Ltd. is incorporated in British Columbia, Canada and headquartered in Dublin, Ireland with a technical team based in Budapest, Hungary.

    For further information on Falcon Oil & Gas Ltd. please visit www.falconoilandgas.com

    Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

    Redemption of 2024 Zero Dividend Preference Shares and Notice of Cancellation

    30 October 2024

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

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

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

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

    For further information, please contact:

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

    Kaso Legg Communications   +44 (0)20 3882 6644

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

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

    LEI number: 213800UJH93NH8IOFQ77

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

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

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

    1Based on net asset value.

    The MIL Network –

  • MIL-OSI Russia: Hello, Lucky: “Active Citizens” Chose a Name for a Baby Dolphin from Moskvarium

    Translation. Region: Russian Federation –

    Source: Moscow Government – Government of Moscow –

    Muscovites chose a name for a Black Sea bottlenose dolphin calf in the Active Citizen project. More than 290,000 people took part in the voting.

    According to its results, the baby will be called Lucky, which means “lucky” in English. This option was chosen by 34 percent of participants. In second place was the name Fedya – 24 percent of votes. 14 percent of “active citizens” voted for Kesha. 13 percent of Muscovites would like to name the baby Leon. 12 percent of participants liked the name Lars. Four percent of users trusted their choice to specialists.

    The baby dolphin was born in the Moskvarium oceanography and marine biology center in July. As Moskvarium reported, during the two months of voting, the baby managed to grow a lot and become more independent.

    “The baby is developing quickly, gaining weight well and growing actively. Since birth, its weight has tripled, and it has grown by about 40 centimeters. It has also started teething. We regularly monitor all of its physiological indicators and can confidently say that the baby’s development is within the biological norms for this age,” shared Irina Suvorova, head of the veterinary service at Moskvarium.

    The baby dolphin is also increasingly showing interest in the world around him. Previously, he spent all his time with his mother, but now he often communicates with other inhabitants, especially with the cubs Loki and Izy.

    “The baby is very playful and inquisitive. He loves his toys, especially the fitballs and the big ring. Recently he learned to blow bubbles with his blowhole, his favorite pastime now is blowing them up and popping them. He actively tries to interact with the trainers, comes up to scratch himself, offers his tummy and tail,” said Ilya Siplivy, a marine mammal trainer at Moskvarium.

    With the help of voting in the Active Citizen project, residents of the capital have already chosen names for animals of the Moscow Zoo and the City Farm at VDNKh. Among them are panda Katyusha, tiger Amur, macaques Manya and Dunya, yak Zvezdochka, alpacas Shokoladka and Chernichka, and others.

    The vote is prepared VDNKh and the Active Citizen project. The results can be found on the website or in the project’s mobile application.

    Project “Active Citizen” has been operating since 2014. During this time, more than seven million people have joined it, and over 6.7 thousand votes have been held. Every month, 30–40 decisions made by Muscovites are implemented in the city. The project is being developed Department of Information Technology of the City of Moscow and the State Institution “New Management Technologies”.

    The use of digital technologies and artificial intelligence to improve the quality of life of city residents corresponds to the objectives of the national program “Digital Economy of the Russian Federation” and the regional project of the capital “Digital Public Administration”. More information about this and other national projects implemented in Moscow can be found Here.

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

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

    https://vvv.mos.ru/nevs/item/145915073/

    MIL OSI Russia News –

  • MIL-OSI Asia-Pac: Speech by SITI at Green Tech Summit 2024 (English only) (with photo)

    Source: Hong Kong Government special administrative region

    Speech by SITI at Green Tech Summit 2024 (English only) (with photo)
    Speech by SITI at Green Tech Summit 2024 (English only) (with photo)
    ********************************************************************

         Following is the speech by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, at the Hong Kong Green Tech Summit 2024 today (October 30): Alice Chow (President of Stanford GSB Hong Kong Alumni Club), Jason Tu (Founder and CEO of MioTech), and participants of the Hong Kong Green Tech Summit 2024,      I am delighted to join you today at this important occasion, the first ever Hong Kong Green Tech Summit 2024 – The Tech Afternoon, where leading experts, policymakers, and innovators gather to discuss and explore the latest advancements in innovation and technology (I&T), with a focus on green technology and sustainable practices.        In the face of intensifying climate change challenges, promoting green transformation to achieve sustainable development is a crucial issue for countries worldwide. Hong Kong has pooled together numerous green tech enterprises and talent, giving it a significant advantage in fostering the development of green tech. There are more than 250 green-technology companies now in the two I&T flagships in Hong Kong, i.e. the Hong Kong Science Park and Cyberport, with some equipped with globally competitive technologies and having successfully tapped into Mainland and overseas markets. This also enables Hong Kong to contribute its strengths to addressing global climate issues. Green tech plays a vital role in supporting the reduction of carbon emissions and environmental protection, serving as a key engine for accelerating green transformation. Promoting the development of green tech is a long-term and challenging task. Throughout this process, stakeholders from various fields collaborate across sectors to identify pain points and needs in the low-carbon transition of different industries. They jointly develop and refine solutions, and support and promote applications, aiming to balance environmental protection and societal needs while driving economic development.      Under the National 14th Five-Year Plan, Hong Kong is positioned to be an international I&T centre. The Hong Kong SAR Government has been attaching much importance to enhancing the I&T ecosystem in Hong Kong by rolling out various initiatives in recent years, and I am pleased to share with you that Hong Kong ranked first in Asia and third globally among the world’s top 100 emerging ecosystems in the Global Startup Ecosystem Report 2024. We also ranked second worldwide in the “Technology” Factor and 10th overall in the World Digital Competitiveness Ranking 2023 published by the International Institute for Management Development.       In fact, Hong Kong has robust capability in basic research and development (R&D). Our city is the only one in Asia with five of the world’s top 100 universities. In addition, the level of internationalisation among our I&T talent is world-leading, with four of our universities ranked among the world’s top 10 most international universities. These, coupled with our robust intellectual property protection regime, could help pool global innovation resources to Hong Kong.      To support the development of various I&T industries, including green tech, the Government has been proactively enhancing Hong Kong’s I&T ecosystem, which hinges on the comprehensive development of and positive interaction among the upstream, midstream and downstream sectors. To this end, the Government has been actively promoting interactive development of the upstream, midstream and downstream sectors.      To further promote upstream basic R&D, we endeavour to consolidate Hong Kong’s R&D strengths and strengthen universities’ capacity for breakthrough researches. The Government has been implementing different initiatives to fund R&D projects, including those on green technologies. For example, the Green Tech Fund provides focused funding support to R&D projects that can help Hong Kong decarbonise and enhance environmental protection. In addition, the I&T Fund provides funding to R&D projects in various technology areas, including green tech.      The R&D Centres established by the Government have been carrying out R&D work in different areas, including green tech. For example, one of the centres developed a new generation of materials incorporating plant stems into biodegradable plastics, which could aid the production of eco-friendly products at a competitive cost.      To support the transformation and realisation of the R&D outcomes in the midstream, we launched the $10 billion Research, Academic and Industry Sectors One-plus Scheme (RAISe+) last year, to fund, on a matching basis, research teams from universities with good potential to become successful start-ups to transform and commercialise their R&D outcomes. We welcome investors around the world to explore collaboration opportunities with the universities in Hong Kong and invest in their RAISe+ projects.      As for the promotion of downstream development of new industrialisation, we have launched the $10 billion New Industrialisation Acceleration Scheme this year to provide funding support for enterprises in industries of strategic importance to set up new smart production facilities in Hong Kong. Such industries include life and health technology, along with AI and data science, advanced manufacturing and new energy technology industries, etc. To further support our tech enterprises, the Government introduced enhancement measures to the New Industrialisation Funding Scheme to encourage local manufacturers to switch to smart manufacturing. The scheme benefits enterprises to, among others, upgrade and transform by adopting green technology.      In addition, to give further impetus to the promotion of new industrialisation, the Chief Executive has announced in his 2024 Policy Address (PA) that a $10 billion I&T Industry-Oriented Fund will be set up to form a fund-of-funds to channel more market capital to invest in specified emerging and future industries of strategic importance.      Hong Kong’s two I&T flagships, the Hong Kong Science and Technology Parks Corporation and Cyberport, have been providing technology start-ups with incubation programmes and one-stop support services. These I&T parks have nurtured a group of passionate and high-quality green tech companies. The 2024 PA also announced the launch of the I&T Accelerator Pilot Scheme with a funding allocation of $180 million at a one-to-two matching ratio between the Government and the institution, up to a subsidy ceiling of $30 million, with an aim to attract professional start-up service providers with proven track records in and beyond Hong Kong to set up accelerator bases in Hong Kong.      Ladies and gentlemen, Hong Kong is fully committed to positioning as an international I&T centre. I would like to express my sincere appreciation to the Stanford GSB Hong Kong Alumni Club and MioTech for hosting this meaningful event. I encourage all participants to engage in meaningful discussions, share best practices, and forge collaborations that will drive real change. Together, let us embrace the opportunities before us and solidify Hong Kong’s position as a global leader in green tech.      Thank you.

     
    Ends/Wednesday, October 30, 2024Issued at HKT 15:15

    NNNN

    MIL OSI Asia Pacific News –

  • MIL-OSI: Sydbank’s Interim Report – Q1-Q3 2024

    Source: GlobeNewswire (MIL-OSI)

    Company Announcement No 51/2024
    30 October 2024

    Sydbank’s Interim Report – Q1-Q3 2024

    Bigger Sydbank – new 3-year strategy plan
    On the back of the highly satisfactory results achieved during the present strategy period, which will expire at the end of 2024, Sydbank is announcing today a new 3-year strategy plan to ensure that the Bank will continue the positive momentum demonstrated since 2014. The strategy is called: “Bigger Sydbank – value for all through advice and relationships”.

    Q1-Q3 2024 – highlights

    • Profit for the period of DKK 2,396m equals a return on equity of 21.7% p.a. after tax
    • Core income of DKK 5,447m is 4% higher compared to the same period in 2023
    • Trading income of DKK 223m compared to DKK 240m in the same period in 2023
    • Costs (core earnings) of DKK 2,453m compared to DKK 2,335m in the same period in 2023
    • Core earnings before impairment of DKK 3,217m are 3% higher compared to the same period in 2023
    • Impairment charges for loans and advances etc represent an expense of DKK 87m
    • Bank loans and advances have risen by DKK 8.0bn, equal to an increase of 11% compared to year-end 2023
    • The CET1 ratio stands at 18.0%, equal to a decrease of 0.9pp compared to year-end 2023

    CEO Mark Luscombe comments on the result:

    • It is positive that we were able to lift core income and total income in the first 9 months of the year from their all-time high levels last year. Costs have risen by 3% – excl Coop Bank – compared with a year ago. Thanks to the Bank’s constant focus on becoming increasingly efficient, the increase in costs is smaller than the effects of the agreed overall pay rises and the abolition of Great Prayer Day. Profit for the first 9 months of the year is on the same level as that of the record year 2023 and equals a return on equity of 21.7%, which is highly satisfactory.

    Mark Luscombe comments on developments in business volume:

    • We are pleased that the continued effect of our strong focus on providing value-creating advice to our customers has boosted our business volume in terms of bank loans and advances, deposits and the investment area. Bank loans and advances constitute DKK 82.5bn – an increase of DKK 8.0bn during the period. Deposits make up DKK 114.8bn – – and are thus at a historically all-time high.

    Board chairman Lars Mikkelgaard-Jensen comments on Sydbank’s new 3-year strategy plan:
    As a natural next step for the current strategy “Growing our business” we will be raising the bar and we will create a Bigger Sydbank in the next strategy period. This means that we will maintain our starting point as Denmark’s Corporate Bank and increase our market share in the corporate segment. Our ambition is to have more satisfied retail clients and significantly more retail clients and Private Banking clients. Assets under management will increase as a result of our customer focus within Wealth Management.

    Mark Luscombe elaborates:
    Our strategy “Bigger Sydbank” centres on 5 themes: “Customer-focused”, “Bigger and efficient”, “Attractive and cooperating”, “Data, digitization, AI and security”, and “ESG integrated in core business”. The themes must go hand in hand with a level of profitability at the very top of the Danish banking industry. We will continue to focus on the customer and be the workplace for some of the industry’s brightest and most dedicated employees.

    Outlook for 2024

    • Moderate growth is projected for the Danish economy.
    • Profit after tax is expected to be in the range of DKK 2,800-3,100m.
    • The outlook is subject to uncertainty and depends on financial market developments and macroeconomic factors which may affect eg the level of impairment charges.

    Additional information
    Jørn Adam Møller, Deputy Group Chief Executive, Tel +45 74 37 20 30
    Lars Grubak Lohff, Press Manager Tel +45 20 31 54 65

    Attachments

    The MIL Network –

  • MIL-OSI: Netcompany – Final transactions in connection with share buyback programme

    Source: GlobeNewswire (MIL-OSI)

    Company announcement
    No. 47/2024

                                                     30 October 2024

    On 14 August 2024, Netcompany Group A/S (“Netcompany”) announced that a share buyback programme of up to DKK 150m and a maximum of 1,000,000 shares had been initiated with the purpose of adjusting Netcompany’s capital structure and meeting its obligations relating to share-based incentive programmes.

    The share buyback programme is executed in accordance with EU Market Abuse Regulation, EU Regulation no. 596/2014 of 16 April 2014 and the provisions of Commission Delegated Regulation (EU) 2016/1052 of 8 March 2016 (the “Safe Harbour Regulation”). The share buyback programme was set to end no later than 29 October 2024.

    Today, Netcompany announces the final transactions carried out under the current share buyback programme.

    The following transactions have been executed in the period 25 October 2024 to 29 October 2024:

      Number of shares Average purchase price, DKK Transaction value, DKK
    25-10-2024  4,000  308.07  1,232,280
    28-10-2024  4,000  308.59  1,234,360
    29-10-2024  6,500  309.67  2,012,855
    Accumulated for the period 14,500 –  4,479,495
    Accumulated under the programme 495,800 – 149,990,713

    Detailed information on all transactions under the share buyback programme during the period is included in the attached appendix.

    Following the above transactions, Netcompany owns a total of 2,228,909 treasury shares corresponding to 4.5% of the total share capital.

    Additional information
    For additional information, please contact:

    Netcompany Group A/S
    Thomas Johansen, CFO, +45 51 19 32 24
    Frederikke Linde, Head of IR, +45 60 62 60 87

    Attachments

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

    Additional information:

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

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

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

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

    Performance of INVL Technology’s portfolio companies

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

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

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

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

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

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

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

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

    Attachment

    The MIL Network –

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

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

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

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

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

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

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

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

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

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

    MIL OSI Africa –