Category: Natural Disasters

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.”

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 –

January 25, 2025

MIL-OSI USA: Capito Accepts Inaugural West Virginia Women in Energy “Woman of the Year” Award

US Senate News:

Source: United States Senator for West Virginia Shelley Moore Capito
CHARLESTON, W.Va. – Today, U.S. Senator Shelley Moore Capito (R-W.Va.), Ranking Member of the Senate Environment and Public Works (EPW) Committee, received the first annual West Virginia Women in Energy “Woman of the Year” award and provided acceptance remarks at the 2024 Governor’s Energy Summit. The award recognizes Senator Capito’s accomplishments and contributions across the energy sector and her dedication to women empowerment and leadership.
“I’m honored to receive this award, and express my most heartfelt thankfulness to the West Virginia Office of Energy for recognizing me and my contributions to this vital industry. Energy is something that is synonymous with the very name of our state. For generations, the resources our state is blessed with and our diligent, tireless workforce have kept lights on and our country on the move. I have made it a central aspect of my career to support that tradition and find new and innovative ways to keep American energy generation right here in West Virginia. We must continue to generate the baseload power that our nation relies on, and you can be certain that I will always be an advocate for expanding that capacity in our state and supporting the men and women who make that possible,” Senator Capito said.
Prior to receiving the award, Senator Capito participated in the summit’s “Women in Energy Breakfast” where she spoke to attendees about female empowerment and encouraged the women of the summit to support the next generation of West Virginia female leaders in the energy field.
BACKGROUND:
Throughout her time in Congress, Senator Capito has been a staunch advocate and defender of American energy generation in West Virginia. Her leadership has helped advance efforts and important legislation aimed at enhancing energy infrastructure and providing reliable energy sources to West Virginians and Americans.
Some of Senator Capito’s energy accomplishments include:
Championing and serving as a bill manager of the Infrastructure Investment and Jobs Act (IIJA), which funded the hydrogen hubs, priority West Virginia infrastructure projects, and other critical national energy projects. Senator Capito is also a founding member of the West Virginia Hydrogen Hub Coalition that led to the creation of the Appalachian Regional Clean Hydrogen Hub (ARCH2).
Leading efforts to support the completion of the Mountain Valley Pipeline, and authoring language included in the Fiscal Responsibility Act that finalized the pipeline.
Championing 45Q Carbon Capture Utilization and Storage (CCUS) Tax Credits, as well as serving an original co-sponsor of the USE It Act to reduce regulatory barriers to deployment of CCUS technology.
Consistently supporting investments in new markets for coal, including carbon manufacturing and extracting rare earth elements essential to America’s high tech and defense sectors.
Leading Congressional efforts to stop the Environmental Protection Agency’s (EPA) attempt to shut down coal-fired power plants through the Obama Clean Power Plan and authored successful amicus brief, co-signed with 90 members of Congress, to the Supreme Court in West Virginia v. EPA.
Additionally, as West Virginia’s first female United States Senator for West Virginia, Senator Capito has made it a point to inspire the next generation of female leaders. In an effort to do this, she launched her West Virginia Girls Rise Up program in 2015. The purpose of the initiative is to empower young women through education, physical fitness, and self-confidence. Earlier this month, Senator Capito completed her 34th event since the program’s launch. Learn more about Senator Capito’s West Virginia Girls Rise Up program here.
Photos from today’s event are included below:

U.S. Senator Shelley Moore Capito (R-W.Va.) accepts the first annual West Virginia Women in Energy “Woman of the Year” award at the 2024 Governor’s Energy Summit in Charleston, W.Va. on Wednesday, October 30, 2024.

U.S. Senator Shelley Moore Capito (R-W.Va.) participates in the Women in Energy Breakfast at the 2024 Governor’s Energy Summit in Charleston, W.Va. on Wednesday, October 30, 2024.

MIL OSI USA News –

January 25, 2025
MIL-OSI New Zealand: Your rates in action – an Auckland that is thriving and beautiful

Source: Auckland Council

1 July 2024

Your rates help deliver a wide range of day-to-day activities and services, and support investment in Auckland’s assets.

For 2024/2025, Auckland has some of the lowest rates rises in the country, at 6.8 per cent for the average value residential property.

We are working hard to keep your rates down by carefully balancing the need to strengthen the financial and physical resilience of Auckland, while investing where it is needed most to manage growth.

What your rates deliver

Your rates support community services and activities that make Auckland thriving and beautiful. This includes improving public transport, maintaining parks, providing local and regional events, delivering environmental services, rubbish collection and a variety of community facilities and services.

A rising population means your rates need to work hard to meet increasing demand for the activities and services council provides and supports.

Where we are investing

We’ve been planning for the region’s growth and have just completed our Long-term Plan 2024-2034, which sets out how Auckland Council will use your rates to improve the daily lives of Aucklanders.

This includes making the most of what we have and investing where it is needed most. This involves extensive investment in capital projects across the region, as well as funding many services for Aucklanders.

In the next 10 years, your rates will help deliver:

More travel choices
Better public transport and new travel solutions (including a $50 capped weekly public transport pass).

Safer, improved transport
Investments to alleviate congestion, improve public transport and address safety issues.

Flood protection
Reducing existing flood risks, prevention, awareness and preparation.

Rejuvenated neighbourhoods
Regeneration continuing in Wynyard Quarter, City Centre, Takapuna, Northcote, Henderson, Avondale, Maungawhau, Panmure, Onehunga, Papatoetoe, Manukau, Pukekohe and Ormiston.

Community investment
Increased sports and recreation facilities through a $35 million fund, continued library and digital services, community-led arts and cultural activities, and local development. Local boards have a new, fairer funding model to support local communities.

A transformed city centre
A City Centre Masterplan will deliver a vibrant city centre, regenerating midtown to benefit from the City Rail Link and progress toward transforming Wynyard Point, the port and waterfront.

A safer city
We are increasing community patrols and CCTV surveillance to keep people safe in our city centres.

Food scraps collection
All urban households will have weekly kerbside food scraps collection. Rates-funded refuse collection will also be phased in for North Shore, Waitakere, Papakura, Franklin and Rodney.

A growing Auckland economy
Promoting Auckland as a great place to live, work, invest, study and visit – continuing our large cultural events and securing international and domestic events.

Well-managed local government
The Auckland Future Fund will help improve the financial and physical resilience of the council. The council will also be progressing Maori outcomes and continuing with storm recovery activities.

Want to learn more?

Our Long-term Plan 2024-2034 is our 10-year plan for Auckland.

It focuses on our physical and financial resilience, while investing where it is needed most to manage growth. We are doing this in a way that recognises cost of living concerns and provides the greatest benefit to our communities.

To learn more about all the investment priorities where your rates will go in the coming decade, see the Long-term Plan 2024-2034.

MIL OSI New Zealand News –

January 25, 2025
MIL-OSI Security: Marion Man Sentenced to 262 Months in Prison

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

FORT WAYNE–James Darquan McCreary, 45 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to possessing with intent to distribute cocaine and possessing a firearm as a convicted felon, announced United States Attorney Clifford D. Johnson.

McCreary was sentenced to 262 months in prison followed by 8 years of supervised release.

According to documents in the case, in March 2020, McCreary possessed more than 500 grams of cocaine that was intended for distribution and illegally possessed firearms as a convicted felon. McCreary was determined to be a career offender based on his prior felony battery and robbery convictions from Grant County, Indiana.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the J.E.A.N. (Joint Effort Against Narcotics) Team Drug Task Force, the Indiana State Police, the Marion Police Department, the Grant County Sheriff’s Department, the Grant County Prosecuting Attorney’s Office, the Cass County Sheriff’s Department, and the Wabash County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Anthony W. Geller.

MIL Security OSI –

January 25, 2025
MIL-OSI Security: South Florida Man Sentenced to 30 Years in Prison for Distribution of Fentanyl Resulting in Death of Baby and Possession of Firearms as a Convicted Felon

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

MIAMI – Yesterday afternoon, Darnell Mendez, 36, was sentenced to 30 years in federal prison, followed by five years of supervised release, by U. S. District Judge Robin L. Rosenberg. Mendez and his girlfriend, Samantha Yi, previously pled guilty to federal offenses resulting from a long-term joint investigation by the Boynton Beach Police Department (BBPD), the Palm Beach County Sheriff’s Office (PBSO), and the Drug Enforcement Administration (DEA) following the death of a 10-month-old infant in Boynton Beach, Fla. who had ingested fentanyl. Yi is scheduled to be sentenced on Jan. 9, 2025, and faces a minimum mandatory sentence of at least twenty years in prison.

On March 31, 2022, PBSO responded to a 911 call of an infant in distress. The infant was transported to Bethesda Hospital East in Boynton Beach with her mother. On April 1, 2022, the baby was transferred to Joe DiMaggio Children’s Hospital in Hollywood, Fla. On April 5, 2022, the baby died. An autopsy conducted by the Palm Beach County Medical Examiner determined that the baby’s death was caused by fentanyl intoxication and that her manner of death was a homicide.

The BBPD conducted a homicide investigation during which law enforcement recovered fentanyl at the baby’s home. The investigation determined that the baby’s mother and father were addicts and had been abusing fentanyl regularly in the kitchen of their apartment. The investigation also determined that the baby was teething and ingested fentanyl on March 31, 2022, while in the care of her mother, and while her father was at work. The mother was arrested by the BBPD and charged with aggravated manslaughter of a child by culpable negligence.

DEA joined the investigation to identify the drug dealers that were responsible for the distribution of the fentanyl that killed the baby. Through data and information retrieved from the mother’s cellphone, law enforcement was able to identify Yi as the drug dealer. The investigation uncovered months of electronic communications exchanged between Yi and the mother involving drug transactions in which the mother was the customer. The investigation further determined that Yi’s boyfriend, Mendez was also involved in the distribution of fentanyl. Investigators were able to determine that on March 30, 2022, the mother met with Yi in Boynton Beach to purchase fentanyl, and that fentanyl was ingested by the baby resulting in her death.

As part of the joint investigation, DEA, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), BBPD, and PBSO conducted an operation involving two undercover officers who purchased fentanyl from Yi and Mendez. The undercover operation culminated in the arrests of Yi and Mendez on March 6, at their residence in Lake Worth, where law enforcement discovered 14 firearms. As part of their pleas, Yi and Mendez admitted being felons unlawfully in possession of firearms.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the DEA, Miami Field Division, Special Agent in Charge Christopher A. Robinson of the ATF, Miami Field Division, Chief Joe DeGiulio of BBPD, and Sheriff Ric Bradshaw of PBSO announced the sentencing.

The Office of State Attorney Dave Aronberg for the 15^th Judicial Circuit – Palm Beach County provided invaluable assistance. Assistant U.S. Attorneys Adam McMichael and Shannon O’Shea Darsch are prosecuting the case.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-cr-80041.

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MIL Security OSI –

January 25, 2025
MIL-OSI Security: Convicted Murderer Found Guilty of Illegally Possessing Multiple Firearms Following Federal Jury Trial

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

INDIANAPOLIS— A federal jury has convicted Salam Abdul Ali, 57, of Indianapolis, of illegally possessing firearms as a previously convicted felon, following a one-day trial.

According to court documents and evidence introduced at trial, on January 28, 2024, Indianapolis Metropolitan Police Department (IMPD) officers were dispatched to a home for a domestic disturbance call. Upon arrival, a woman who lived at the home with her children reported that her ex-boyfriend, Salam Abdul Ali, owned guns and made threats to kill her, her children, and her brother following an argument the previous night.

On February 14, 2024, IMPD investigators conducted a court-authorized search at Ali’s residence. During the search, investigators located five firearms in his bedroom, along with ammunition and firearm accessories. Ali was present and admitted to law enforcement officers, “I got guns, I sure do,” which was captured on body worn camera.

During the investigation, officers learned that Ali’s former name was Christopher Butler. Ali changed his name from Butler after he was convicted of murder in Marion County and sentenced to sentenced to 60 years in prison. He was released from state prison in approximately 2013. In 2019, Ali was convicted in federal court for his involvement in a drug trafficking conspiracy and sentenced to time served in federal prison. Ali was still on federal supervised release at the time of his most recent arrest. Ali is permanently prohibited from ever again legally possessing a firearm as a result of his felony convictions.

The Bureau of Alcohol, Tobacco, Firearms and Explosives and IMPD investigated this case. U.S. District Judge Matthew P. Brookman presided over the trial and will sentence the defendant at a future hearing. Ali faces up to 15 years in federal prison.

U.S. Attorney Zachary A. Myers thanked Assistant U.S. Attorneys Pam Domash and Zachary Szilagyi, who prosecuted this case.

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

###

MIL Security OSI –

January 25, 2025
MIL-OSI Security: Gore Resident Sentenced For Federal Firearm Charge

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

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kelly Don Girty, Jr., age 30, of Gore, Oklahoma, was sentenced to 46 months for illegally possessing a firearm. The Court ordered the federal sentence to run consecutive to state sentences Girty received in the District Court of Sequoyah County.

The charges arose from an investigation by the Sequoyah County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

On May 2, 2024, Girty pleaded guilty to one count of Felon in Possession of a Firearm. According to investigators, on January 7, 2024, a Sequoyah County Sheriff’s deputy conducting a routine traffic stop discovered Girty in possession of a .22 caliber bolt action rifle. At the time of the stop, Girty had been convicted of a crime punishable by imprisonment for a term exceeding one year and was prohibited from possessing firearms.

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

The Honorable John C. Coughenour, Senior U.S. District Judge in the United States District Court for the Western District of Washington, sitting by assignment, presided over the hearing in Muskogee, Oklahoma. Girty will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.

Assistant U.S. Attorney Jonathan E. Soverly represented the United States.

MIL Security OSI –

January 25, 2025
MIL-OSI USA: Wyden, Merkley, Blumenauer, Hoyle: State of Oregon & Four Tribes Earn More Than $12 Million in Federal Funds for Grid Resilience

US Senate News:

Source: United States Senator Ron Wyden (D-Ore)
October 30, 2024
Tribes with Oregon presence to receive federal investments are the Confederated Tribes of the Warm Springs, Cow Creek Band of Umpqua Tribe of Indians, Burns Paiute and Nez Perce
Washington, D.C. – U.S. Sens. Ron Wyden and Jeff Merkley as well as U.S. Reps. Earl Blumenauer and Val Hoyle today announced that Oregon’s Energy Department has secured $10.9 million and four Tribes with members in Oregon have earned a combined $1.16 million in federal investment to modernize the electric grid and reduce the impacts of extreme weather while also ensuring power sector reliability.
The four Tribes securing the federal funds are the Confederated Tribes of the Warm Springs, Cow Creek Band of Umpqua Tribe of Indians, Burns Paiute and Nez Perce.
“Oregon families, small businesses, schools, hospitals and more rely on a dependable energy grid, said Wyden, who also has introduced the Grid Resilience Improvement through Dedicated (GRID) Assistance Act. “These fresh federal investments in grid resilience are incredibly timely after this year’s state record of nearly 2 million acres burned by wildfires. I’m gratified these resources are heading to these Tribes along with the state Energy Department, and will keep battling for similar funds for communities throughout the state.”
“As devastating wildfires, droughts, and intense winter storms continue to grip Oregon, we must invest in strengthening our power grids to safeguard Oregon families and businesses,” Merkley said. “It is great news that these federal funds from the Bipartisan Infrastructure Law are heading to the Oregon Department of Energy and Tribes to make these critical improvements that will make all the difference for communities across Oregon when disasters strike.”
“Our communities need an electric grid that can withstand the increasingly severe impacts of the climate crisis. Thanks to Democrats in Congress, Oregon and Tribal nations are receiving the investments necessary build this reality with a smarter, more resilient power grid,” said Blumenauer.
“As this season’s record-breaking wildfire season showed, extreme weather, caused by the climate crisis, is becoming increasingly common across Oregon,” Hoyle said. “These funds will help to fortify our energy infrastructure against extreme weather and improve its dependability across the state and in Tribal communities. I’ll continue working with federal and state partners to ensure Oregon’s electric grid is safe and resilient.”
The federal money for the state Energy Department and four Tribes is part of a combined total of $473.6 million nationally in fiscal year 2024 Grid Resilience State and Tribal Formula Grants from the U.S. Department of Energy. The resources will be distributed as follows:
·      Oregon Department of Energy, $10.9 million
·      Confederated Tribes of the Warm Springs, $454,958
·      Nez Perce Tribe, $290,877
·      Cow Creek Band of Umpqua Tribes of Indians, $268,172
·      Burns Paiute Tribe, $148,901
“The Confederated Tribes of the Warm Springs is thankful for the federal government’s financial investment in our ability to protect our communities from extreme weather situations,” said Jonathan W. Smith, Sr., Chairman, Tribal Council for the Confederated Tribes of the Warm Springs Reservation of Oregon. “These funds will allow us to develop community resilience centers on our reservation for our tribal members to seek refuge during unbearably hot and cold weather patterns.”
“The Burns-Paiute tribe has identified energy security and resilience as a key priority,” said Tracy Kennedy, Chair of the Burns-Paiute Tribe. “We appreciate the support from Senator Wyden and Senator Merkley in helping us get funding to achieve our goals.”
“For the Cow Creek Band of Umpqua Tribe of Indians, we aim to use these generous funds to improve the reliability of delivering power, water and utility services provided by our own Umpqua Indian Utility Cooperative to the many Cow Creek Umpqua Tribally-owned properties, our Tribal citizens, and our community members in Canyonville,” said Carla Keene, Chairman of the Cow Creek Band of Umpqua Tribe of Indians. “This grant allows us to exercise our sovereign rights, strengthen the resilience of our system, and put us closer to achieving one of our long-term goals of energy independence.”–
“The Nez Perce Tribe is committed to helping the Northwest meet its energy needs in a cleaner and smarter way that will address the impacts of current energy demands on salmon restoration,” said Shannon F. Wheeler, Chairman, Nez Perce Tribal Executive Committee. “These funds are an important component of this collaborative work with energy utilities and other stakeholders in the Northwest and we are excited that these funds will allow us to continue to do this work.”

MIL OSI USA News –

January 25, 2025

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

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

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 –

January 25, 2025

MIL-OSI USA: Scott, Colleagues to Lead Legislation to Replenish the SBA Disaster Loan Program Following Hurricanes Helene and Milton

US Senate News:

Source: United States Senator for South Carolina Tim Scott
WASHINGTON — U.S. Senator Tim Scott (R-S.C.) joined Senators Thom Tillis (R-N.C.), Ted Budd (R-N.C.), Bill Cassidy, M.D. (R-La.), and Rick Scott (R-Fla.) in announcing plans to introduce legislation that would replenish the Small Business Administration (SBA) Disaster Loan Program. The senators plan to seek passage of the legislation when Congress returns to session. On October 15th, the SBA announced the Disaster Loan Fund had run out of money.
“Hurricane Helene brought a level of devastation to South Carolina we haven’t seen since Hugo. With a natural disaster of this magnitude, Congress should take the opportunity to show leadership and help ease the pain of those who have lost everything,” said Senator Tim Scott. “Communities back home and in surrounding states have come together to recover, but it will take every possible effort to get us back to where we were.”
“The SBA Disaster Loan Program running out of funds risks delays in processing the loans of those affected by Helene and Milton and their ability to get their lives back on track,” said Senator Tillis. “That is why I am leading legislation to replenish this fund when Congress returns to Washington, and I look forward to working across the aisle to pass a long-term disaster aid package that will provide additional resources to help make the victims of these hurricanes whole again.”
“The citizens of Western North Carolina are some of the toughest and most resilient people in this country,” said Senator Budd. “As they recover and rebuild their communities, they must be able to access disaster loans from SBA. This recovery will take many years, and I look forward to working with my colleagues to cut through the delays and provide WNC with the resources they need as quickly as possible.”
“Hurricanes Francine, Helene, and Milton hit us hard, but Louisianans and Americans are resilient,” said Dr. Cassidy. “This funding is essential to help small businesses recover from these storms and support our local economies.”
“We cannot allow frontline federal agencies, like the SBA, to run out of disaster relief funds. This is especially important in the wake of Hurricanes Helene and Milton which devastated Florida, North Carolina and communities across the Southeast U.S.,” said Senator Rick Scott. “I continue to call on Leader Schumer to immediately reconvene the Senate so we can fund disaster relief functions at FEMA, the SBA, USDA and other agencies to get folks what they need and deserve. I won’t stop fighting to get this done and am proud to join my colleagues to introduce a bill that funds SBA disaster loans and makes sure the federal government is a reliable partner as families continue their recovery.”
The Restoring an Economic Lifeline with Immediate Emergency Funding (Relief) Act would appropriate $550 million to fund the SBA Disaster Loan Program Account, which would provide $2.475B in lending capacity projected to last until the end of 2024.
Read text of the bill here.

MIL OSI USA News –

January 25, 2025
MIL-OSI USA: Luján Visits De Baca County and Meets with Local Health and Elected Officials, Tours Damage in Roswell and Chaves County From Devastating Flooding

US Senate News:

Source: United States Senator Ben Ray Luján (D-New Mexico)
Luján Has Visited All 33 Counties Across New Mexico
Roswell, N.M. – This week, U.S. Senator Ben Ray Luján (D-N.M.) traveled to De Baca County to meet with local leaders and health officials and toured the damage in Roswell and Chaves County following deadly flooding earlier this month. Senator Luján has now visited all 33 counties in New Mexico.

On Tuesday, Luján toured the De Baca Family Practice Clinic and met with local health officials to see the care the clinic is providing De Baca County residents and to discuss the importance of supporting rural health care. As a member of the Senate Committee on Health, Education, Labor, and Pensions, Luján has helped deliver funding for community health centers and is fighting to pass legislation to expand primary care across America.

Next in De Baca County, Luján sat down for a meeting with local county officials. During the meeting, Luján discussed the importance of supporting rural communities and highlighted infrastructure funding he helped secure to improve roadway safety and boost the quality of life in rural New Mexico.
“This week, I was honored to visit De Baca County to tour the De Baca Family Clinic and meet with local leaders,” said Senator Luján. “It was a privilege to meet with local health officials at the De Baca Family Practice Clinic to discuss how we can strengthen rural health care and meet with De Baca County officials to speak about investing in rural infrastructure. I am committed to supporting rural communities and will continue to fight to deliver federal resources to bolster the health care workforce, expand health centers, and strengthen infrastructure in rural New Mexico.”

On Wednesday, Luján traveled to Roswell to meet with local officials and tour the damage caused by recent historic rainfall and deadly flooding. During the tour, Luján assessed the damage to local homes, businesses, and infrastructure caused by record rainfall earlier this month. On Monday, Luján, along with the New Mexico Congressional Delegation called on President Biden to swiftly approve the state’s request for a Major Disaster Declaration, which would unlock federal funds and disaster loans.
“Seeing the devastation in Roswell and Chaves County is saddening and tragic. My prayers are with the families of the two victims that were killed from the flooding, and the many more who were injured or displaced,” said Senator Luján. “I thank the brave first responders and countless others who stepped in to assist in rescue efforts and pitched in to support each other during this disaster. While the road to recovery is just getting underway, I am committed to unlocking the federal resources impacted residents need to recover and will continue to work closely with local, state, and federal partners to accelerate recovery efforts.”

MIL OSI USA News –

January 25, 2025
MIL-OSI Australia: Outstanding service recognised at Wallan

Source: Victoria Country Fire Authority

Deputy Group Officer Peter Roylance received the CFA Outstanding Service Medal (pictured with his wife Jenny)

Wallan Fire Brigade Members and their families and friends gathered on Saturday 19 October to recognise more than 350 years of combined service to CFA and the community.

More than 80 past and present CFA members, family and friends were joined by Interim CEO Robyn Harris and Acting Commander Paul Brislin at the Wallan Bowls Club for the annual Wallan Fire Brigade presentation dinner.

Captain Tim Benetti thanked members for their tireless commitment to the brigade and acknowledged the family support that enables CFA volunteers to do what they do.

“You are the lifeblood of the brigade and I’d like to thank all of you for the time you’ve given to helping protect our community over the past 12 months,” Tim said.

“I’d like to thank the unsung heroes – the wives, husbands, partners, mums, dads, children and others…. a heartfelt thank you from a captain who’s job would be much more difficult if it wasn’t for your support.”

Tim also spoke about the incredibly busy year for the brigade, responding to 336 calls last financial year – the busiest year in the brigade’s 87-year history – and the brigade’s achievements including the delivery of the new heavy tanker in May.

Interim CEO Robyn Harris and Acting Commander Paul Brislin presented CFA service awards to Kacie Graham (five years), Brenton Allan and Chris Hill (10 years), Taylor Campbell, Chris Walker, Braydan Fletcher, Hayley Hanson, Justin Cardiff, Andrew South and Sue Howitt (15 years), Hayden McMennemin (20 years) and John Meldrum (35 years).

National Emergency Medals for the 2019-20 bushfires were presented to Andrew South, Hayley Hanson, Peter Roylance and Nathan Anderson.

National Medals were presented to Justin Cardiff, Travis Gray, Andrew South, Allie Tuddin, John Tuddin, Nathan Anderson (1st Clasp), Deb Hanson (1st Clasp) and Colin Prentice (1st Clasp).

Deputy Group Officer and Brigade President Peter Roylance, who MCd the evening, was presented with the CFA’s highest internal award, the Outstanding Service Medal to recognise his more than half a century dedicated to the protection of life and property from fire and other emergencies.

Peter joined Epping Fire Brigade in 1971 at age 15 and has maintained an exceptional level of commitment to CFA throughout his volunteer service. He has held an elected leadership role in a brigade or group (often at the same time) for the past 49 years and has mentored countless volunteers on their CFA journeys.

In accepting his award, Peter thanked his family and brigade members for their support and reflected on his years of service.

“These things don’t happen without family support and that’s been a big part of my achievement throughout the years of service,” Peter said.

“I just love being there and listening to the different opinions and the conversations, from the newest member of the organisation to the 70-year-old member. It all means something in the big mix of things.

“The fire brigade became my real passion at age 15, because in those days you could become a senior firefighter at 15. From the word go, I was just totally dedicated totally to CFA and it has just been there all that time.

“Thank you very much. I’m just absolutely stoked.”

The evening’s formalities concluded with the presentation of internal brigade awards to Captain Tim Benetti, Firefighter Edward Martin and Firefighter Chris Answer, and the unveiling of a new Brigade Life Members honour board.

Live music and raffles entertained members into the night.

Photos courtesy of Uniform Photography.

Submitted by Christopher Brockwell

MIL OSI News –

January 25, 2025

Submitted by	Christopher Brockwell

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 –

January 25, 2025

MIL-OSI Global: What the Thai cave rescue can teach us about unconventional leadership

Source: The Conversation – Canada – By Amélie Cloutier, Professor of Strategy and Innovation, Université du Québec à Montréal (UQAM)

Leadership can emerge from unexpected places, especially during times of crisis. One such example occurred during the 2018 rescue of a group of 12 young soccer players and their coach, who were trapped in a cave in northern Thailand after heavy rains blocked their exit route.

The 17-day rescue operation involved a co-ordinated response from thousands of people, including 2,000 soldiers, 200 divers and personnel from 100 government agencies. The success of the operation was largely due to an unconventional group of leaders: an international group of cave divers whose unique expertise was vital to the rescue effort.

Our recent research on the rescue aimed to explore how leadership can emerge outside of the traditional chain of command. To do this, we analyzed a documentary and news coverage about the rescue, along with scientific literature and online searches, including LinkedIn profiles.

We wanted to better understand development of leaders who don’t adhere to the stereotypical image of heroic or charismatic leaders. These atypical leaders challenge our conventional ideas about what a leader should look like, or how they should act.

From advisers to leaders

Tham Luang Nang Non is a cave located beneath Doi Nang Non, a mountain range on the border between Thailand and Myanmar. On June 23, 2018, a group of 12 boys from a local soccer team and their assistant coach became trapped in the cave after heavy rainfall blocked their way out.

On June 25, Royal Thai Navy SEAL divers arrived and began searching the cave for the team, but the flooding made it impossible to locate them. Initially, civilian cave divers were brought in as advisers to the Navy SEALs. However, when the SEAL divers failed to locate the trapped team, the cave divers took the lead.

On July 2, two divers from the British Cave Rescue Council found the group alive, and their roles shifted from being advisers to active participants in the rescue operation.

Following the discovery, the Thai Navy SEAL divers attempted to reclaim their roles as primary rescuers, believing they had the ability to complete the mission. However, their overconfidence and underestimation of the challenges ahead led to a critical setback: those who reached the children were unable to return with them due to a lack of oxygen.

With the situation worsening, the cave divers successfully persuaded the conventional leaders in place — Governor Narongsak Osatanakorn, Lt. Gen. Bancha Duriyapunt, Rear-Admiral Apakorn Youkongkaew and Capt. Anan Surawan — to allow them to take over the mission.

The cave divers assembled a new team of expert cave divers from around the world. The extraction began on July 8, and by July 10, everyone had been rescued.

The ‘Rudolph Effect’

The rescue operation demonstrates how individuals with specialized skills and social capital can step up to lead effectively, even in the most challenging situations.

Before the rescue, many viewed cave diving as odd, and even abnormal. In the documentary The Rescue, cave diver Josh Bratchley acknowledged that being in a pitch-black cave underwater is “probably some people’s worst nightmares.” But for cave diver Jim Warny, “once I get underground, that all disappears.”

For these self-described unconventional individuals, their love for cave diving and exploration serves as a form of escape and empowerment, while accepting that they stand apart from the norm.

However, their knowledge of navigating cold and dark waters underground, combined with their capital within the cave diving community, made the cave divers effective leaders. This case study demonstrates how leadership can emerge unexpectedly, and how atypical skills like cave diving, if valued and encouraged, can lead to innovative solutions.

In our study, we coined the term the “Rudolph Effect” to describe how outcasts and unconventional individuals can become key leaders when given opportunities. Like Rudolph the Red-Nosed Reindeer, the term’s namesake, these leaders can guide their teams through extreme situations effectively, using skills and perspectives that traditional leaders might not possess.

Unconventional and trustworthy helpers can transform into leaders, leveraging their unique skills, knowledge and social capital to manage extreme situations. But this transformation is only possible if they have the chance to demonstrate their abilities.

Cultivating unconventional leaders

The need for these unique leaders isn’t limited to extreme situations. By highlighting an extreme example, we aim to show that managers should create more opportunities for unconventional thinkers to contribute, even in day-to-day situations.

Managers should identify and nurture leadership potential in individuals from diverse backgrounds and experiences. By doing this, organizations can not only improve their ability to handle crises, but also widen their pool of potential leaders. This diversity strengthens companies, making them more resilient and adaptable when facing unexpected challenges.

This case study serves as a reminder for managers to constantly reassess and adjust their resources to achieve their goals. In tough situations, it can be beneficial to bring in leaders who think outside the box.

Managers should be aware of the unique skills and connections within their teams to identify these unconventional leaders during their risk planning. They should also have backup plans ready in case initial solutions prove ineffective.

Amélie Cloutier receives funding from FRQSC.

Andrew Webb receives funding from SSHRC and le Secrétaire du Conseil du Trésor du Québec.

– ref. What the Thai cave rescue can teach us about unconventional leadership – https://theconversation.com/what-the-thai-cave-rescue-can-teach-us-about-unconventional-leadership-233538

MIL OSI – Global Reports –

January 25, 2025
MIL-OSI USA: Rep. Cuellar Announces $11,077,810 in Federal Funding for Opportunity Home San Antonio

Source: United States House of Representatives – Congressman Henry Cuellar (TX-28)

SAN ANTONIO, TX – Today, Congressman Henry Cuellar, Ph.D. (TX-28) announced $11,077,810 in federal funding for Opportunity Home San Antonio.

“Today, I am pleased to announce $11,077,810 in federal funding for Opportunity Home San Antonio,” said Dr. Cuellar, a senior member of the House Appropriations Committee. “This funding is critical in combating health hazards in public households in San Antonio. This funding is an investment in the health and long-term success of the community. I want to thank Opportunity Home Chairman of the Board Gabriel Lopez, Acting President and CEO Michael Reyes, Government Relations Advisor Hector Morales, and State Representative Josey Garcia for being here today and for their effort in fighting for a healthier community.”

Congressman Cuellar secured the funding from the Department of Housing and Urban Development’s Capital Fund Housing-Related Hazards and Lead-Based Paint Capital Fund Programs. The programs work to evaluate and eliminate residential health hazards in public housing, including lead-based paint, carbon monoxide, mold, radon, and fire safety. Opportunity Home San Antonio received $4,800,000 from the Lead-Based Paint Capital Fund and $6,277,810 from the Capital Fund Housing Related-Hazards.

Congressman Cuellar will continue to fight for the funding and resources necessary to make the region a healthier, more prosperous community.

MIL OSI USA News –

January 25, 2025
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 –

January 25, 2025
MIL-OSI Security: Bank Robber Sentenced to Three-and-a-Half Years in Prison

Source: Office of United States Attorneys

PHOENIX, Ariz. – Justin Eric Lindsay, 29, of Phoenix, was sentenced last week by United States District Judge David G. Campbell to 42 months in prison, followed by 36 months of supervised release. On June 27, 2024, Lindsay pleaded guilty to two counts of Bank Robbery.

Between August 2023 and January 2024, Lindsay robbed six banks before he was arrested by agents from the Federal Bureau of Investigation. During two of the robberies, Lindsay falsely claimed he had a firearm.

This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

The Federal Bureau of Investigation, with the assistance of Tempe Police Department, Mesa Police Department, and Task Force Officers from the Peoria Police Department and the Phoenix Police Department conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.

CASE NUMBER: CR-24-00147-PHX-DGC
RELEASE NUMBER: 2024-148_Lindsay

# # #

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.

MIL Security OSI –

January 25, 2025
MIL-OSI Security: Waterville Woman Pleads Guilty to Directing Another to Illegally Purchase a Firearm for Her

Source: Office of United States Attorneys

Nikeshia Knight paid for the purchase made and provided the straw purchaser with fentanyl after the sale

BANGOR, Maine: A Waterville woman pleaded guilty today in U.S. District Court in Bangor to aiding and abetting another individual in making false statements during the purchase of a firearm.

According to court records, after a Glock pistol was recovered following a July 2022 arrest in Salem, Massachusetts, an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) revealed the firearm had been purchased at a federally licensed firearms dealer (FFL) in Fairfield, Maine the prior month. ATF contacted the dealer who provided a copy of the ATF Form 4473 associated with the purchase. The FFL also provided ATF with a 4473 associated with another firearm purchase on June 16, 2022. Further investigation revealed that a second individual, Nikeshia Knight, 25, was involved in this purchase. When interviewed, Knight admitted that she had used a straw purchaser to acquire the firearm because she would not pass a background check, providing the individual with money for the purchase and with fentanyl after it was successfully made. Text messages between Knight and the proxy purchaser confirmed that Knight directed the purchase.

Knight faces a maximum of five years in prison and up to a $250,000 fine to be followed by up to three years of supervised release. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The ATF investigated the case.

STRAW PURCHASING: A straw purchase is an illegal firearm purchase where the actual buyer of the gun, being unable to pass the required federal background check or desiring to not have his or her name associated with the transaction, uses a proxy buyer who can pass the required background check to purchase the firearm for him/her.

###

MIL Security OSI –

January 25, 2025
MIL-OSI Security: New Orleans Man Guilty of Being Felon in Possession of Ammunition

Source: Office of United States Attorneys

NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on October 19, 2024, AVERY JULIEN (“JULIEN”), age 28, a resident of New Orleans, pled guilty to being a felon in possession of ammunition, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(2). JULIEN faces up to 15 years imprisonment, a fine of up to $250,000.00, up to 3 years of supervised release, and a mandatory special assessment fee of $100.00.

According to court records, on September 14, 2022, Jefferson Parish Sheriff’s Office deputies and New Orleans Police Department officers executed a search warrant at JULIEN’s New Orleans residence after learning that JULIEN may have committed a carjacking in Jefferson Parish. During the search of his residence, two firearms, a Sig Sauer Model P229, .40 caliber semi-automatic pistol, and a Sig Sauer Model P250, .40 caliber semi-automatic pistol, were located in JULIEN’s bedroom.

Federal law prohibits convicted felons, such as JULIEN, from possessing firearms. In 2018, JULIEN was convicted of felonies in two separate cases in Orleans Parish Criminal District Court. JULIEN knew he had been convicted of these felonies at the time that he possessed the ammunition. United States District Judge, Brandon S. Long, will sentence JULIENon February 4, 2025.

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

The case was investigated by the Federal Bureau of Investigation, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Public Integrity Unit.

MIL Security OSI –

January 25, 2025
MIL-OSI Security: Defendant pleads guilty to throwing incendiary device, causing fire in local grocery store

Source: Office of United States Attorneys

CINCINNATI – A local man pleaded guilty in U.S. District Court here today to damaging a Spring Grove Village grocery store with an incendiary device in the style of a Molotov cocktail.

Donald Donatelli, 28, currently of Batavia, admitted to causing malicious damage and destruction of a building in interstate commerce. The plea agreement includes a recommended sentence of 66 months in prison.

According to court documents, at approximately 10pm on Nov. 26, 2023, Donatelli threw the incendiary device into the store while the store’s owner and his wife were inside. The store was open at the time of the fire.

Donatelli had traveled to the grocery store on Gwinnet Drive with a co-defendant. Donatelli approached the front glass doors of the grocery store and had a bottle of gasoline with a rag inside. He lit the rag and threw the bottle inside the front doors while the co-defendant filmed a Snapchat video of the crime.

A federal grand jury indicted Donatelli and the co-defendant in April 2024. Charges remain pending against Angela Schweitzer, 35.

Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the guilty plea entered today before U.S. District Judge Matthew W. McFarland. U.S. Attorney Parker and Special Agent in Charge McCormick acknowledged the assistance of the Cincinnati Fire Department, Cincinnati Police Department, Hamilton County Sheriff’s Office and Union Township Police Department. Assistant United States Attorney Megan Gaffney Painter is representing the United States in this case.

# # #

MIL Security OSI –

January 25, 2025
MIL-OSI Security: Four members of Tidewater drug trafficking conspiracy and two who supplied firearms sentenced to prison

Source: Office of United States Attorneys

NORFOLK, Va. – Four people have been sentenced to prison for their roles in a drug trafficking conspiracy that distributed methamphetamine and other drugs in the Tidewater area. Two others have been sentenced to prison for providing firearms to one of the members of the drug trafficking conspiracy.

By the fall of 2021, Leonard Tromell Brooks, 41, of Virginia Beach, a previously convicted drug trafficker, was conspiring with Kyle Derek Dean, 33, and Katie Loren Harbor, 29, both of Norfolk, to traffic significant quantities of methamphetamine in the Tidewater area. By January 2022, Colin Thomas Costello, 35, of Virginia Beach, had joined the conspiracy.

On March 15, 2022, Dean transported Harbor so she could sell 3.41 grams of meth to an individual in Virginia Beach. On April 20, 2022, Dean sold 2.78 grams of meth to another individual in Norfolk.

On April 6, 2022, Costello sold 26.05 grams of meth, and on April 12, 2022, Costello sold 67.50 grams of meth. On April 22, 2022, law enforcement conducted a traffic stop on Costello in Virginia Beach. Prior to coming to a stop, Costello tossed 58.83 grams of meth from the vehicle’s window.

On April 20, 2022, and again on April 21, 2022, Brooks sold cocaine from a residence in Virginia Beach. Law enforcement learned that Brooks was expecting a shipment of meth from his Florida-based supplier to arrive in Virginia via train on April 22, 2022. They intercepted the courier and recovered five kilograms of 100% pure meth, commonly known as “ice” or “crystal” meth. On at least two previous occasions, Brooks ordered similar quantities of crystal meth for further distribution by Dean, Harbor, and Costello.

On April 22, 2022, law enforcement executed search warrants at residences affiliated with all four conspirators. From Brooks’ residence, investigators recovered 219 grams of cocaine, 7.9 ounces of marijuana, $26,388 in drug-trafficking proceeds, a .45 caliber handgun, and ammunition. From Dean and Harbor’s residence investigators recovered 3.07 grams of meth, a ledger showing amounts of money owed to Dean and Harbor, digital scales, and packaging materials, as well as another 4.12 grams of meth found on Dean’s person. From Costello’s residence investigators recovered 405 grams of meth, quantities of fentanyl and cocaine, packaging materials, scales, and 14 firearms.

As a previously convicted felon, Costello could not legally possess firearms. Jonathan Morrell Scott, 37, of Virginia Beach, straw purchased four firearms for Costello prior to April 22, 2022. On July 26, 2023, Scott pled guilty to making a false statement during the purchase of a firearm. On Dec. 12, 2023, Scott was sentenced to four months in prison.

Costello’s girlfriend, Amber Dawn Hendricks, 40, of Virginia Beach, purchased four firearms in the two months preceding the search, including two purchased just two days before the search, despite being a user of and addicted to meth. She kept those firearms in the residence she shared with Costello. Despite being prohibited from possessing firearms, she and Costello kept a total of 11 firearms in their bedroom at the residence. On May 7, 2024, Hendricks was charged with possession of a firearm by a prohibited person. On Oct. 2, 2024, Hendricks was sentenced to two years and six months in prison.

On Jan. 26, 2023, Costello pled guilty to conspiracy to distribute and possess with intent to distribute methamphetamine; manufacture, distribution, and possession with intent to distribute a Schedule II controlled substance; and possessing, using, and carrying firearms in furtherance of and during and in relation to a drug-trafficking crime. Costello was sentenced today to 20 years in prison.

On Jan. 24, 2023, Dean pled guilty to conspiracy to distribute and possess with intent to distribute methamphetamine and distribution of methamphetamine. On June 15, 2023, Dean was sentenced to 18 years in prison.

On Jan. 12, 2023, Harbor pled guilty to conspiracy to distribute and possess with intent to distribute methamphetamine and distribution of methamphetamine. On June 1, 2023, Harbor was sentenced to nine years in prison.

On Jan. 10, 2023, Brooks pled guilty to conspiracy to distribute and possess with intent to distribute methamphetamine; manufacture, distribution, and possession with intent to distribute a Schedule II controlled substance; and possessing, using, and carrying firearms in furtherance of and during and in relation to a drug-trafficking crime. On May 12, 2023, Brooks was sentenced to 20 years in prison.

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division; James VanVliet, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations Washington, D.C.; Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Mark Talbot, Chief of Norfolk Police; Paul Neudigate, Chief of Virginia Beach Police; and Ramin Fatehi, Norfolk Commonwealth’s Attorney, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.

Assistant U.S. Attorney Kristin G. Bird and Special Assistant U.S. Attorney Graham M. Stolle, an Assistant Commonwealth’s Attorney with the Norfolk Commonwealth’s Attorney Office, prosecuted the case.

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

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 2:22-cr-126 (Brooks, Dean, Harbor, and Costello), 2:23-cr-48 (Hendricks), and 2:23-cr-51 (Scott).

MIL Security OSI –

January 25, 2025
MIL-OSI USA: $16 Million in Federal Funding Fuels Tennessee’s Recovery a Month After Helene

Source: US Federal Emergency Management Agency

Headline: $16 Million in Federal Funding Fuels Tennessee’s Recovery a Month After Helene

$16 Million in Federal Funding Fuels Tennessee’s Recovery a Month After Helene

A month after the major presidential disaster declaration for the Sept. 26-30 flooding from Tropical Storm Helene, Tennessee families and communities are recovering with $16.4 million in funding from FEMA as well as support from the state, other federal agencies, and voluntary and community organizations.Helene’s rains devastated Eastern Tennessee, leaving mountains of debris strewn across a vast area, knocking out power and communications to thousands, and cutting off drinking water. Residents were left without cell coverage, internet connections and access to essential necessities. It may be years before these remote and rural communities resemble the charm they had before.The disaster declaration was approved on Oct. 2, authorizing funding from FEMA’s Individuals and Households Program to the counties most heavily impacted by the storms: Carter, Cocke, Greene, Hamblen, Hawkins, Johnson, Unicoi and Washington counties. Survivors have until Monday, Dec. 2, to apply for FEMA assistance.State, federal and voluntary organizations have collaborated to drive the recovery. As of Oct. 30, $16.4 million in FEMA funds has been approved for Tennessee’s homeowners, renters and businesses. And FEMA authorized a Direct Temporary Housing mission for survivors who had major or significant structural damage to their primary homes. The American Red Cross, Salvation Army and the Tennessee Department of Education have completed their mission after serving 140,903 meals to survivors.In the early days after the storms, with communications down across a swath of rural communities, FEMA brought in a mobile unit that continues to provide high-speed internet by connecting to satellites.Debris removal remains a major priority. The state and federal partners joined with local communities to clear more than 24,000 cubic yards of debris, a visible and vital step in recovery operations. Special attention is focused on Douglas Reservoir, located only a few miles from the Pigeon Forge-Gatlinburg area and the Great Smoky Mountains National Park. A mile-long curtain was installed to save the dam from damage by 1 million cubic yards of debris that rushed into the lake during the storms. Vegetation, construction and demolition equipment, and hazardous materials continue to line the shores even as the reservoir returns to pre-disaster water levels. Perhaps FEMA’s biggest challenge during the response operation has been the campaign to counter misinformation and harmful rhetoric about FEMA’s assistance programs, which was having a negative impact on Tennesseans desperately in need of help. The agency built a Helene Rumor Response webpage where survivors could find the facts themselves, and it continues to push messaging, in English and Spanish, about the many types of available assistance tailored to each survivor’s unique situation. FEMA accomplishes this by directing traffic to the state’s tn.gov/TEMA and fema.gov/Helene/Tennessee disaster pages as well as FEMA’s social media sites on Facebook, X, Instagram and YouTube.But the work of recovery has only just begun. Here are a few highlights:$16.4 million in funding from the Individuals and Households Program to provide financial help to those who are unable to meet their disaster-related needs through insurance or other means. As part of that total, more than $8 million represents Housing Assistance to help homeowners repair or replace residential property damage that is not covered by insurance.$8.3 million in Other Needs Assistance covers necessary disaster-related expenses such as medical bills; money to clean, repair or replace household items; to repair or replace vehicles damaged by the disaster and other non-housing needs.The Direct Temporary Housing Assistance program will help homeowners and renters whose homes were destroyed or heavily damaged.More than $1.07 million for 186 claims was paid to National Flood Insurance policyholders. The program also extended the grace period for paying policy premiums to Tuesday, Nov. 26.FEMA’s Disaster Survivor Assistance specialists visited 6,277 homes, 288 businesses and 237 community facilities. They also referred 1,140 survivors to community resources.More than $53,000 was paid in Disaster Unemployment Assistance to Tennesseans who have been unable to work because of the disaster. FEMA funds the unemployment program, which is managed by the state.Some 1,311 survivors have visited FEMA’s Disaster Recovery Centers to apply for federal assistance, to get help uploading documents to their account or get answers to questions including decisions about eligibility for FEMA assistance. A Mobile Disaster Recovery Center is scheduled to open Nov. 1 in Johnson County.Specialists at the state’s three Multi-Agency Resource Centers in Carter, Cocke and Washington counties also help survivors apply for FEMA assistance and connect them with additional local, state, federal and voluntary agency resources.Disaster assistance is also available to help communities respond to and recover from Helene’s deadly wrath. FEMA Public Assistance was approved for state and local governments and some private non-profits. These funds help communities cover the costs for debris removal, life-saving emergency protective measures and restoring public infrastructure.Public Assistance is a cost-sharing program and FEMA’s largest grant program. FEMA typically covers 75% of funding and the state covers 25%. For Helene damage in Tennessee, President Biden authorized 100% federal funding for emergency work generated by the disaster. This means FEMA will cover all eligible costs incurred during any 45-day period of the state’s choosing during the first 120 days from the start of the disaster, or Sept. 26. This allows communities to maximize cost savings by selecting the 45 days when the greatest costs occurred.Under Public Assistance, the federal share of funding is reimbursed through the Tennessee Emergency Management Agency to disburse to local agencies, local governments and certain private non-profits including houses of worship.
kwei.nwaogu
Wed, 10/30/2024 – 20:38

MIL OSI USA News –

January 25, 2025
MIL-OSI USA: FEMA Direct Temporary Housing Approved for Tennessee

Source: US Federal Emergency Management Agency

Headline: FEMA Direct Temporary Housing Approved for Tennessee

FEMA Direct Temporary Housing Approved for Tennessee

With affordable housing in short supply, FEMA has approved temporary housing for 18 months for homeowners and renters who had major or significant structural damage after Tropical Storm Helene’s floodwaters swept across Eastern Tennessee Sept. 26-30.Direct Temporary Housing Assistance is approved for Helene survivors until April 2, 2026, and includes Direct Lease, Multifamily Lease and Repair, and Transportable Temporary Housing Units. For Direct Lease, FEMA leases existing, ready-to-occupy residential properties for use as temporary housing. Under Multifamily Lease and Repair, the agency funds the repair or improvement of existing, vacant multi-family rental properties that eligible applicants can use for temporary housing. Knowing that housing solutions are not one-size-fits-all and each survivor has a unique set of needs, FEMA will contact homeowners to determine if they would like a Transportable Temporary Housing Unit. These are furnished one-, two- or three-bedroom units provided at no cost to eligible survivors. If necessary, these units can be modified or improved to be compliant with the guidelines of the Americans with Disabilities Act, providing accessibility for individuals with disabilities or access and functional needs.TEMA’s assessment of homes, barns, sheds and other structures estimates nearly $20.37 million in damage was caused by the record flooding from Helene. The assessment identified 114 affected structures including 48 that were destroyed, 51 with major damage and 12 with minor damage. Two other structures also sustained some damage. Between 346 and 414 applicants may be eligible for FEMA direct housing, the state’s preliminary estimates show.Survivors whose primary residence is in one of six counties – Carter, Cocke, Greene, Johnson, Unicoi or Washington – must first apply for FEMA Individual Assistance before the Monday, Dec. 2, deadline to be eligible for Direct Temporary Housing Assistance. Assessments are ongoing for Hamblen and Hawkins counties.To apply, go online to DisasterAssistance.gov, use the FEMA App or call the FEMA Helpline at 800-621-3362. Lines are open from 7 a.m. to midnight Eastern Time. Operators speak most languages; if you use a relay service, captioned telephone or other service, you can give FEMA your number for that service. You may also visit a Disaster Recovery Center. For locations and hours, visit fema.gov/drc.To watch an accessible video on how to apply, visit FEMA Accessible: Registering for Individual Assistance (youtube.com).
kwei.nwaogu
Wed, 10/30/2024 – 20:43

MIL OSI USA News –

January 25, 2025
MIL-OSI USA: Disaster Recovery Centers to Close for Election Day

Source: US Federal Emergency Management Agency

Headline: Disaster Recovery Centers to Close for Election Day

Disaster Recovery Centers to Close for Election Day

Disaster Recovery Centers for the storms and flooding that took place July 11-13 and July 29-31 will be closed for Election Day, Tuesday, Nov. 5. These centers are located at the Newport Municipal Building (222 Main St) and at the Lyndon Public Safety Facility (316 Main St).Because the center at the Hinesburg Town Hall ( 10632 Route 116) will be used as a voting site, it will be closed Monday, Nov. 4 through Wednesday, Nov. 6.The DRCs at Newport and Lyndon will reopen at 9 a.m. on Wednesday, Nov. 6.The DRC in Hinesburg will reopen at 9 a.m. on Thursday, November 7. Hours for all DRCs are 9 a.m. to 6 p.m. Monday – Saturday. Residents affected by the flooding don’t need to visit a Disaster Recovery Center to apply for or receive FEMA assistance. The deadline to apply is November 25, 2024. Three ways to apply include:Online at DisasterAssistance.govThe FEMA mobile app Call the FEMA Helpline at 1-800-621-3362. Phone lines operate from 7 a.m. to 10 p.m. (in your time zone), seven days a week. Help is available in most languages. If you use video relay service (VRS), captioned telephone service or others, give FEMA your number for that service. For an accessible video on how to apply for assistance go to, youtube.com/watch?v= WZGpWI2RCNw..
adrien.urbani
Wed, 10/30/2024 – 21:34

MIL OSI USA News –

January 25, 2025
MIL-OSI Security: Eleven Minneapolis Gang Members Charged with RICO Conspiracy, Murder in Aid of Racketeering, and Drug Trafficking Offenses

Source: United States Attorneys General 4

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

MIL Security OSI –

January 25, 2025
MIL-OSI USA: Whispers in the Texas Wind

US Senate News:

Source: United States Senator for Texas John Cornyn

As the leaves shift from green to shades of red and brown, Fall brings more than just hayrides, pumpkin patches, and trick-or-treating. You may not realize it while carving your jack-o’-lantern, but Texas is home to more than just famous haunted houses—you don’t have to look far to stumble upon a graveyard with a story to tell.

Texas boasts around 14,000 cemeteries, many of which are steeped in legends that will send a chill up your spine. Some gravestones hold dramatic tales of early settlement, disease, natural disasters, and war. From the Panhandle to the Gulf Coast, these cemeteries are living pieces of history wrapped in a touch of the supernatural.

Take Oakwood Cemetery in Austin, the state’s oldest graveyard. It spans 40 acres of centuries-old tombstones and is the resting place of Texas Revolution and Civil War veterans, as well as former governors like General Sam Houston. Some of the most haunting stories come from these graves. One such grave belongs to Eula Phillips a teenager murdered on Christmas Eve in 1885. Legend has it her spirit floats through the cemetery at night, searching for answers to her untimely death.

Farther southeast, in Galveston, lies the Old City Cemetery, where spirits are rumored to be more restless. This graveyard serves as a somber reminder of the catastrophic Hurricane of 1900 that devastated the island. Thousands lost their lives, including many who were swept into the Gulf of Mexico. On stormy nights, the howling wind is said to carry the cries of men calling for help and wails of women searching for their lost children.

Among those buried there is Elize Romer Alberti, Galveston’s “Demented Mother,” who poisoned her five children in 1894, four of whom succumbed to it. After the murders, she was sent to the San Antonio Asylum, but returned to Galveston, where she eventually died. Buried with her children, she is said to haunt the cemetery grounds to this day.

In El Paso, Concordia Cemetery is one of Texas’ largest cemeteries, covering 52 acres and holding the graves of more than 60,000 souls, including buffalo soldiers and Texas Rangers. Its most famous occupant is John Wesley Hardin, the notorious gunslinger of the Old West. Under the moonlight, the spirits of Hardin and other outlaws are rumored to roam the grounds, earning Concordia the nickname “El Paso’s Boot Hill” due to its rowdy history.

Texas cemeteries hold more than tombstones, they are places where the living just might happen upon spirits of the past. So whether you believe in ghosts or not, this is the season to gather around a campfire and share a scary story or two, because you never know what—or who—may be dying to hear it.

MIL OSI USA News –

January 25, 2025
MIL-OSI USA: FEMA Continues Work with the Disability Community on Helene and Milton Response, FEMA’s Disability Director Visits Affected Areas to Meet with Survivors, Community Groups and Governmental Officials

Source: US Federal Emergency Management Agency

Headline: FEMA Continues Work with the Disability Community on Helene and Milton Response, FEMA’s Disability Director Visits Affected Areas to Meet with Survivors, Community Groups and Governmental Officials

FEMA Continues Work with the Disability Community on Helene and Milton Response, FEMA’s Disability Director Visits Affected Areas to Meet with Survivors, Community Groups and Governmental Officials

WASHINGTON — Since Hurricane Helene made landfall, FEMA has been working with governmental and voluntary disability support organizations to ensure survivors with disabilities have the tools they need to recover from the storm. Building relationships with these organizations pre-disaster has been crucial to getting support to survivors as quickly as possible. FEMA’s Disability Integration Advisors continue their work advocating for people with disabilities and connecting them with available resources to help speed their recovery.Sherman Gillums, Jr., FEMA’s Director of the Office of Disability Integration and Coordination personally traveled to hurricane-impacted areas to support these advisors, survey recovery efforts and meet with state officials and local disability organizations. “It was important to me to talk to organizations and officials in person to show our unwavering commitment to people with disabilities,” said Director Gillums. “The relationships we’ve built with these organizations prior to the disaster allowed us to pinpoint the areas where people with disabilities needed help. My visit with Able South Carolina and independent living centers in Ashville highlighted ways we could assist with their recovery efforts. I deeply appreciated their insight and openness about their experiences which allowed us to work together on solutions to challenges.” The percentage of people applying for FEMA disaster assistance and identifying as having a disability is consistent with the demographic information we have for the hurricane affected areas. “This is really important,” said Director Gillums. “It is a good indication that we are reaching people with disabilities and getting them the tools they need to apply for assistance more quickly year after year. That doesn’t mean that there isn’t more work needed to get people with disabilities on the road to recovery, but it is an encouraging first step.As disability advisors, Director Gillums and his staff work to integrate accessibility into all stages of recovery. This includes everything from helping survivors access medical necessities to getting them access to assistive devices like screen readers so they can apply for assistance. Most importantly though, the advisors support emergency management specialists throughout the recovery process, by helping them integrate accessibility and disability inclusiveness into their work. “This storm caused massive disruption to infrastructure that many of us take for granted,” Director Gillums commented after his travel in North Carolina, Virginia and South Carolina. “As a disability advisor, and a member of the disability community myself, I see how these challenges are compounded for people with disabilities. Getting access to electricity can be a matter of independence and even survival. During my deployment, I witnessed firsthand how communities were eager to be a part of the effort to ensure people with disabilities get what they need to sustain some semblance of independence. FEMA is working with these partners to make sure all survivors, including those with disabilities, are able to access the essential resources they need to be safe, informed and in charge of their lives.”FEMA encourages Helene and Milton survivors to apply online as this remains the best way to apply for disaster assistance. Here are the ways to apply for federal assistance: Applying online at disasterassistance.govUsing the FEMA AppCalling 800-621-3362, Staffed daily from 7 a.m.-10 p.m. local timeVisiting a Disaster Recovery Center to talk with FEMA and state agency officials and apply for assistance

Richmond, VA — Federal Coordinating Officer Timothy S. Pheil discussing the disability integration strategy for the Hurricane Helene response with FEMA Disability Coordinator Sherman Gillums Jr. along with state access and functional needs staff in the situation room at the Virginia Emergency Operations Center.

View Original’ data-align=”center” data-asset-link=”1″ data-entity-type=”emerald” data-image-style=”large” data-asset-type=”imageasset” data-asset-id=”56473″ src=”https://www.fema.gov/sites/default/files/styles/large/public/externals/cf9d4bec75102ebbb97b6fc199bfe0d0.jpg?itok=9VB86i5n” alt=”Caption: Columbia, S.C. (Oct. 14, 2024) – FEMA’s Director of Disability Integration and Coordination, Sherman Gillums, Jr., visits the Association for Better Living and Education to show support for their ongoing efforts in supporting the disabled community. Director Gillums met with Dori Tempio, Sr., Director of Community Education, and Mandy Halloran, Director of Public Health.” class=”image-style-large”>

Columbia, S.C. (Oct. 14, 2024) – FEMA’s Director of Disability Integration and Coordination, Sherman Gillums, Jr., visits the Association for Better Living and Education to show support for their ongoing efforts in supporting the disabled community. Director Gillums met with Dori Tempio, Sr., Director of Community Education, and Mandy Halloran, Director of Public Health.

amy.ashbridge
Wed, 10/30/2024 – 21:38

MIL OSI USA News –

January 25, 2025
MIL-OSI Security: Felon Who Arranged Gun Sales from Jail Sentenced to 63 Months in Prison

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

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

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

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

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

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

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

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

MIL Security OSI –

January 25, 2025
MIL-OSI Security: West Lafayette Man Sentenced to 27 Months in Prison

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

HAMMOND- Markith Williams, age 39, of West Lafayette, Indiana, was sentenced by United States District Court Judge Philip P. Simon after a jury found him guilty of being a convicted felon in possession of a firearm following a two-day jury trial, announced United States Attorney Clifford D. Johnson.

Williams was sentenced to 27 months in prison followed by 2 years of supervised release.

According to documents in the case, on January 13, 2022, a traffic stop of Williams’ vehicle in Jasper County, Indiana, led to the recovery of a loaded semi-automatic pistol. Williams’ criminal history revealed that he had 3 prior Illinois felony convictions which included being a felon in possession of a firearm, aggravated unlawful use of a weapon, and delivery of cocaine, any one of which prohibited him from possessing the firearm in this case.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hammond Police Department, and the Jasper County Sheriff’s Department. The case was prosecuted by Special Assistant United States Attorney Patrick D. Grindlay and Assistant United States Attorney Kristian R. Mukoski.

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

MIL Security OSI –

January 25, 2025
MIL-OSI USA: Eleven Minneapolis Gang Members Charged with RICO Conspiracy, Murder in Aid of Racketeering, and Drug Trafficking Offenses

Source: US State Government of Utah

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

MIL OSI USA News –

January 25, 2025

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