NewzIntel.com

Category: Politics

  • MIL-OSI Security: FUGITIVE FIREARMS TRAFFICKER CAPTURED IN MEXICO AS PART OF OPERATION RIPSAW

    Source: Office of United States Attorneys

    Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced the arrest of fugitive Roland Munoz (age: 44), who was wanted for trafficking firearms from the United States to a Mexican cartel. 

    On September 21, 2021, along with five other defendants, Munoz was charged in a 12-count indictment with violations of 18 U.S.C. §§ 371 (conspiracy to violate the laws of the United States), 554 (smuggling goods from the United States), 922(a)(6), and 924(a)(2) (straw purchasing firearms), and 22 U.S.C. §§ 2778(b)(2) and 2778(c) and 22 C.F.R. §§ 121.1 and 127.1 (violation of the Arms Export Control Act and the International Traffic in Arms Regulations). In turn, the indictment was the result of a yearslong investigation called “Operation Ripsaw”and led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Homeland Security Investigations (HSI).

    The indictment charges a complex conspiracy to smuggle high-powered firearms from the United States to Mexico. According to court filings, Munoz led this conspiracy by recruiting straw purchasers of firearms in Wisconsin and other states, organizing couriers to transport those firearms and money across the nation, and arranging for smugglers to take the firearms across the border in Texas and provide them to a cartel in Mexico. The conspirators purchased and attempted to smuggle over 25 firearms. According to court records, many of those firearms were later recovered in Mexico, including a .50 caliber rifle which was recovered on December 12, 2020, after Mexican law enforcement authorities engaged a group of armed members of Cártel de Jalisco Nueva Generación (CJNG), a Mexican transnational criminal organization. 

    Munoz’s arrest was made in coordination with officials in Mexico and is the result of collaboration between the United States Marshals Service, ATF, and HSI.    

    If convicted of these offenses, Munoz faces a maximum of 20 years in prison and up to a $1 million fine. The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

    As noted above, ATF and HSI investigated the case. Assistant United States Attorneys Philip T. Kovoor and Christopher Ladwig will prosecute the case in the United States District Court in Green Bay.    

    An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.

    ###

    For further information contact:

    Public Information Officer

    Kenneth.Gales@usdoj.gov

    (414) 297-1700

    Follow us on Twitter

    MIL Security OSI –

  • MIL-OSI: Tech Expert Warns: 2025 Will Be a Crossroads Year for America—A New Era of Disruption and Opportunity

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, March 05, 2025 (GLOBE NEWSWIRE) — Tech expert James Altucher is issuing a stark warning: 2025 will be a defining crossroads for America—one that could either unlock historic new opportunities or leave millions struggling to catch up.

    Dubbed “The Great Gain”, Altucher believes that the U.S. is entering a rare moment in history where massive economic and technological shifts will converge at the same time, forcing industries, businesses, and individuals to either adapt or be left behind. “For the first time in US history… Two major Wealth Drivers are on a collision course.”

    According to Altucher, these two forces—a political and economic realignment combined with a peak in the nation’s financial cycle—are setting the stage for rapid, unpredictable change. “The first 365 days of Trump’s presidency will be remembered as… The best time to get rich in American history.”

    A Defining Moment in Economic History

    Altucher has made a career out of identifying major turning points before they happen. He predicted the rise of video streaming in the late 1990s, saw the social media explosion before Facebook’s IPO, and has been ahead of the curve on disruptive technologies and financial trends.

    Now, he sees 2025 as another major inflection point—one that could either create immense new opportunities or leave many behind. “Technology is evolving at an exponential rate, and industries are being reshaped overnight.”

    Altucher compares this shift to previous economic revolutions—those rare moments when industries and wealth were completely transformed: “The Industrial Revolution created unprecedented business empires. The dot-com boom built some of today’s biggest companies.”

    But, he argues, 2025 will be even bigger. “The Great Gain is the FINAL major wealth-building opportunity of our lifetimes.”

    What This Means for Everyday Americans

    Altucher is urging Americans to prepare now, as this shift will create both massive winners and losers. He believes that for those who take action early, this period could bring a rare second chance to reshape their future.

    “In our nation’s history… There have been only a few times… Where regular Americans could quickly gain enough wealth… To radically improve their standard of living.”

    About James Altucher

    James Altucher is a renowned entrepreneur, investor, and thought leader known for spotting emerging economic trends and breakthrough technologies long before they reach the mainstream.

    Over his career, Altucher has:

    • Built and sold multiple companies across finance, tech, and media
    • Advised Fortune 500 corporations on economic trends and disruptive innovation
    • Authored over 20 books, including Choose Yourself, Skip the Line, and The Rich Employee
    • Been featured in leading media outlets, including CNBC, Yahoo Finance, and The New York Times

    His podcast, The James Altucher Show, has been downloaded over 40 million times, featuring in-depth interviews with some of the world’s most influential entrepreneurs, investors, and visionaries.

    Media Contact:
    Derek Warren
    Public Relations Manager
    Paradigm Press Group
    Email: dwarren@paradigmpressgroup.com

    The MIL Network –

  • MIL-OSI: James Altucher Declares 2025 as ‘America’s Defining Moment’—A Rare Economic Shift That Could Reshape the Future

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, March 05, 2025 (GLOBE NEWSWIRE) — Tech expert, best-selling author, and market forecaster James Altucher is making a bold proclamation: 2025 will mark a turning point in the American economy—one that could redefine industries, technology, and personal opportunity.

    Calling it “The Great Gain”, Altucher believes that a rare collision of economic forces is underway, creating what could be one of the most significant windows for personal and financial transformation in modern history. “For the first time in US history… Two major Wealth Drivers are on a collision course.”

    These two forces—a major political and economic shift combined with a historic wealth cycle peak—are aligning in a way that hasn’t happened in decades. “The first 365 days of Trump’s presidency will be remembered as… The best time to get rich in American history.”

    A Historic Turning Point for Innovation and Growth

    Altucher, who has successfully predicted market-defining trends for decades, sees 2025 as the start of a technological and financial transformation similar to past economic revolutions. “The Industrial Revolution created unprecedented business empires. The dot-com boom built some of today’s biggest companies.”

    He believes this moment could be even bigger, with industries evolving faster than ever before. “Technology is evolving at an exponential rate, and industries are being reshaped overnight.”

    A Rare Chance for Everyday Americans

    Altucher emphasizes that this shift isn’t just for major corporations or Wall Street—it presents a rare second chance for everyday Americans to take advantage of changes before they become mainstream. “In our nation’s history… There have been only a few times… Where regular Americans could quickly gain enough wealth… To radically improve their standard of living.”

    About James Altucher

    James Altucher is not only a tech expert, he’s a former hedge fund manager and best-selling author. Altucher has also launched and sold multiple businesses and advised Fortune 500 companies. His work has been featured on Fox Business, CNBC, Yahoo Finance, The New York Times, and Business Insider​.

    His podcast, The James Altucher Show, has been downloaded over 40 million times, featuring guests such as Mark Cuban, Richard Branson, and Peter Thiel.

    Media Contact:
    Derek Warren
    Public Relations Manager
    Paradigm Press Group
    Email: dwarren@paradigmpressgroup.com

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    Delivered 10% YoY growth in FY 2024 revenue driven by PAC business turnaround and 7thstraight quarter of double-digit YoY ASP growth

    Grew FY 2024 gross margins by approximately 410 bps YoY to 36.2% and achieved 3rdconsecutive quarter of positive Adjusted EBITDA, highlighting sustained foundational PAC business improvement

    Exited 2024 with a stronger financial position, successfully completing a $30 million ABL facility which lowers financing costs, increases capacity, and enhances liquidity

    Development of transformational GAC facility continues; first production anticipated prior to quarter end in line with ramp up to 25 million pounds nameplate capacity in H2 2025

    GREENWOOD VILLAGE, Colo., March 05, 2025 (GLOBE NEWSWIRE) — Arq, Inc. (NASDAQ: ARQ) (the “Company” or “Arq”), a producer of activated carbon and other environmentally efficient carbon products for use in purification and sustainable materials, today announced its financial and operating results for the quarter and year ended December 31, 2024.

    Financial Highlights

    • Generated revenue of $109.0 million in FY 2024 ($27.0 million in Q4 2024), up 10% over the prior year, driven largely by higher Average Sales Price (“ASP”), and positive changes in product mix
    • Increased ASP in Q4 2024 by approximately 14% over the prior year period, reflecting the 7th consecutive quarter of double-digit YoY percentage growth in ASP
    • All powder activated carbon (“PAC”) contracts are now net cash producers following the successful resolution of all negative margin agreements as of December 31, 2024
    • Improved FY 2024 gross margin to 36.2% in FY 2024, up approximately 410 basis points vs. FY 2023, driven by higher revenue, continued focus on profitability over volume, and ongoing operational cost management
    • Gross margin in Q4 2024 of 36.3% vs. 49.8% in Q4 2023 – prior quarter included a $4.7 million take-or-pay benefit and other non-recurring items vs. $1.6 million in Q4 2024. Q4 2024 was otherwise largely in-line with last year’s performance despite two brief but unplanned outages at the Red River plant
    • Reported Net loss of ($5.1) million in FY 2024, reflecting a significant improvement over the prior year period Net loss of ($12.2) million; Q4 2024 Net loss of ($1.3) million vs. Net income of $3.3 million in Q4 2023
    • Adjusted EBITDA of $7.7 million in FY 2024 vs. Adjusted EBITDA loss of ($2.6) million in the prior year(1); Adjusted EBITDA of $3.3 million in Q4 2024 vs. $7.2 million in the prior year period(1)
    • Announced successful closing of a $30 million asset backed lending (“ABL”) facility, enhancing financial flexibility and reducing our cost of capital
    • Exited 2024 with cash and restricted cash of $22.2 million, including $8.7 million restricted cash
    • Capital expenditures for FY 2024 totaled $85.2 million, including $80.0 million growth capital expenditures associated with Red River Phase I development

    (1) Adjusted EBITDA is a non-GAAP financial measure. Please refer to the paragraph titled “Non-GAAP Measures” for the definitions of non-GAAP financial measures and reconciliations to GAAP measures included in this press release.

    Recent Business Highlights

    • Construction at Red River facility complete with commissioning ongoing and first production of granular activated carbon (“GAC”) at Red River expected by end of Q1 2025; on target to achieve first deliveries in Q1 2025
    • Ramp up of Red River GAC production anticipated to run into H2 2025; expect to achieve full run rate capacity of 25 million pounds in H2 2025
    • Approximately 16 million pounds of our 25 million pound per year nameplate capacity contracted
    • In negotiations to contract remaining capacity at Red River. Multiple in-situ pilot tests are underway with customers, a required step before finalizing contracts, and in-line with the expected ramp-up schedule
    • Potential to increase Red River’s 25 million pound per year nameplate capacity by 10-20% still targeted; timing of upside production run-rate expected to be defined once nameplate capacity is achieved

    Management Commentary

    “These results reinforce the durability of our transformation within the foundational PAC business,” said Bob Rasmus, CEO of Arq. “Our 2024 results show a business which has been successfully turned around into a cash flow contributor. The annualized performance of the business has materially improved and is more profitable. With our third consecutive quarter of positive Adjusted EBITDA, the direction of travel is extremely positive. I also believe this is a business which can still be enhanced further.”

    Mr. Rasmus continued, “The capex overrun we experienced in Q4 was extremely frustrating, and while we actively look for ways to mitigate this increase, we remain confident that its impact on our long-term profitability and returns profile should be negligible.”

    “The imminent start of GAC production is of course a major milestone for us and will represent a huge achievement for the whole team,” added Mr. Rasmus. “While we want to remain cautious on the duration of our ramp-up to nameplate capacity, there should be no doubt we will be trying to get there as quickly as possible. By H2 2025 we believe we will have a solid, sustainably profitable PAC business being complimented by a high growth GAC business, representing our springboard to future growth.”

    Full Year 2024 Results

    Revenues totaled $109.0 million for full year 2024, compared to $99.2 million in the prior year. The revenue increase was primarily driven by improved ASP and product diversification into higher value end-markets.

    Cost of revenues totaled $69.5 million for full year 2024, compared to $67.3 million in the prior year. While total costs increased year over year, costs as a percentage of total revenue were down. This decrease in costs as a percentage of revenue was related to a decrease in the cost to manufacture our products, which primarily resulted from decreased variable production costs on lower production volumes during 2024.

    Gross margin was 36.2% for full year 2024, compared to 32.1% in the prior year. The increase was driven by higher revenue as detailed above, as well as cost reductions.

    Other operating expenses were $41.4 million for full year 2024, compared to $45.2 million in the prior year. The reduction was mainly driven by expenses incurred during 2023 relating to the acquisition of Arq Limited (“Legacy Arq”) (the “Arq Acquisition”) that did not occur in 2024.

    Operating loss totaled ($2.0) million for full year 2024, compared to an operating loss of ($13.3) million in the prior year. The reduction in loss was mainly driven by the factors referenced above.

    Interest expense was $3.3 million for full year 2024, compared to $3.0 million in the prior year. The increase was primarily driven by interest expenses related to the $10 million term loan with CF Global (the “CFG Loan”) of $2.3 million and $2.0 million in 2024 and 2023, respectively. The CFG Loan had a higher principal balance from the accrual of interest payable (PIK) upon the termination date of the CFG Loan, which was paid in December 2024.

    Income tax benefit was $0.2 million for full year 2024, compared to an income tax expense of $0.2 million in the prior year.

    Net loss was ($5.1) million, or ($0.14) per diluted share for full year 2024, compared to Net loss of ($12.2) million, or ($0.42) per diluted share in the prior year. The reduction in net loss was driven by higher revenues and a reduction in costs.

    Adjusted EBITDA was $7.7 million for full year 2024, compared to an Adjusted EBITDA loss of ($2.6) million in the prior year. The increase was mainly driven by our continued focus on increasing revenues while driving costs down. Additionally, an addback of Adjusted EBITDA during 2024 related to Loss on extinguishment of debt of $1.4 million, related to our repayment of the CFG Loan in December 2024 led to the increase. See the note below regarding the use of the non-GAAP financial measure Adjusted EBITDA and a reconciliation to the most comparable GAAP financial measure.

    Fourth Quarter 2024 Results

    Revenue totaled $27.0 million for Q4 2024, reflecting a decrease of 4% compared to $28.1 million in the prior year period. The reduction was driven predominantly by the one-off benefits delivered in Q4 2023 as a result of take-or-pay enforcement totaling $4.7 million vs. $1.6 million in the fourth quarter of 2024. Excluding these one-off items, revenue was up YoY. ASP for the fourth quarter of 2024 were up approximately 14% compared to prior year period, marking the 7th consecutive quarter of double-digit year-over-year percentage growth in ASP.

    Costs of revenue totaled $17.2 million for the fourth quarter of 2024, an increase of approximately 22% compared to $14.1 million in the prior year period.

    Gross margin reduced to 36.3% for the fourth quarter of 2024, compared to 49.8% in the prior year period. The reduction in gross margin was driven by higher non-recurring revenues in Q4 2023 driven primarily by $3.1 million of additional take or pay enforcement in Q4 2023. Excluding this, Q4 2024 was largely in-line despite two brief but unplanned outages at our Red River plant.

    Selling, general and administrative expenses totaled $6.0 million in Q4 2024, compared to $6.5 million in the prior year period. The reduction of approximately $0.5 million or 8% was primarily driven by a reduction in payroll and benefits as well as legal and consulting fees as the Company incurred incremental fees related to the Arq Acquisition in 2023.

    Research and development costs totaled $0.7 million in Q4 2024, compared to $1.2 million in the prior year period. This reduction was primarily due to the Company performing product qualification testing in the prior year period with potential lead-adopters as part of its ongoing GAC contracting process in 2023.

    Operating income was $0.4 million for the fourth quarter of 2024, compared to an operating income of $3.1 million in the prior year period. The reduction was mainly driven by the factors referenced above.

    Net loss was ($1.3) million in the fourth quarter of 2024, or ($0.03) per diluted share, compared to a net income of $3.3 million, or $0.10 per diluted share, in the prior year period.

    Adjusted EBITDA was $3.3 million for the fourth quarter of 2024, compared to Adjusted EBITDA of $7.2 million in the prior year period. The reduction was primarily driven by the significant one-off items discussed above. See note below regarding the use of the non-GAAP financial measure Adjusted EBITDA and a reconciliation to the most comparable GAAP financial measure.

    Capex and Balance Sheet

    Capital expenditures totaled $85.2 million for full year 2024, compared to $27.5 million in the prior year. The increase vs. the prior year was driven by the ongoing expansion of our Red River and Corbin facilities. The increase in total 2024 capex from previous guidance of $60 – $70 million was primarily driven by several factors, including $4 – $5 million related to contractor errors associated with small-bore piping needs, roughly $3 – $4 million related to maintaining a timely completion, and approximately $2 million related to the need for additional external professional services.

    The Company raised approximately $26.7 million of net equity proceeds in its September 2024 underwritten public offering of common stock, which, combined with approximately $15 million raised in a private placement of common stock in May 2024, resulted in year-to-date net equity proceeds raised through Q4 2024 of approximately $41.6 million.

    In December 2024, the Company closed a $30 million ABL credit facility (the “ABL Facility”) with MidCap Financial, a leading commercial finance company focused on middle market transactions. Total available borrowing capacity for the ABL Facility is determined by a borrowing base calculation based on a certain percentage of eligible accounts receivable and inventory.

    Initial drawdown from the ABL Facility ($13.8 million as of December 31, 2024) was utilized to refinance Arq’s outstanding CFG Loan. Going forward, the Company expects that proceeds from the ABL Facility will be used to finance ongoing working capital requirements and potential capital expenditures related to the Company’s strategic growth investment at its Red River plant, as well as to support general corporate purposes.

    Cash as of December 31, 2024, including $8.7 million of restricted cash, totaled $22.2 million, compared to $54.2 million as of December 31, 2023. The reduction was largely driven by increased expenditures relating to the Red River GAC expansion.

    Total debt, inclusive of financing leases, as of December 31, 2024, totaled $24.8 million compared to $20.9 million as of December 31, 2023. The increase was driven by closing the ABL Facility.

    Conference Call and Webcast Information

    Arq will host its Q4 2024 earnings conference call on March 6, 2025, at 8:30 a.m. ET. The live webcast can be accessed through the Investor Resources section of Arq’s website at www.arq.com. Interested parties may participate in the conference call by registering at https://www.webcast-eqs.com/arq20250306. Alternatively, the live conference call may be accessed by dialing (877) 407-0890 or (201) 389-0918 and referencing Arq. An investor presentation will also be available in the Investor Resources section before the call begins.

    A replay of the event will be made available shortly after the event and accessible via the same webcast link referenced above. Alternatively, the replay may be accessed by dialing (877) 660-6853 or (201) 612-7415 and entering Access ID 13751420. The dial-in replay will expire after March 13, 2025.

    About Arq

    Arq (NASDAQ: ARQ) is a diversified, environmental technology company with products that enable a cleaner and safer planet while actively reducing our environmental impact. As the only vertically integrated producer of activated carbon products in North America, we deliver a reliable domestic supply of innovative, hard-to-source, high-demand products. We apply our extensive expertise to develop groundbreaking solutions to remove harmful chemicals and pollutants from water, land and air. Learn more at: www.arq.com.

    Caution on Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a “safe harbor” for such statements in certain circumstances. When used in this press release, the words “can,” “will,” “may,” “intends,” “expects,” “continuing,” “believes,” similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. All statements that address activities, events or developments that the Company intends, expects or believes may occur in the future are forward-looking statements. These forward-looking statements include, but are not limited to, statements or expectations regarding: the anticipating timing of the completion of commissioning of the GAC Facility, ramp-up to full nameplate capacity at our Red River facility, and commercial production of our GAC products; the anticipated effects from fluctuations in the pricing of our AC products; expected supply and demand for our AC products and services, including our GAC products; the seasonal impact on our customers and their demand for our products; the ability to continue to successfully integrate Legacy Arq’s business and recognize the benefits and synergies from the Arq Acquisition; the ability to continue to develop and utilize Legacy Arq’s products and technology and the anticipated timing for bringing such products to market; our ability to access new markets for our GAC and other products; any future plant capacity expansions or site development projects and our ability to finance any such projects; the effectiveness of our technologies and the benefits they provide; the timing of awards of, and work and related testing under, our contracts and agreements and their value; probability of any loss occurring with respect to certain guarantees made by Tinuum Group; the timing and amounts of or changes in future revenue, funding for our business and projects, margins, expenses, earnings, tax rates, cash flows, royalty payment obligations, working capital, liquidity and other financial and accounting measures; the performance of obligations secured by our surety bonds; the amount and timing of future capital expenditures needed to fund our business plan; the impact of capital expenditure overruns on our business; awards of patents designed to protect our proprietary technologies both in the U.S. and other countries; the adoption and scope of regulations to control certain chemicals in drinking water and other environmental concerns and the impact of such regulations on our customers’ and our businesses, including any increase or decrease in sales of our AC products resulting from such regulations; the impact of adverse global macroeconomic conditions, including rising interest rates, recession fears and inflationary pressures, and geopolitical events or conflicts; opportunities to effectively provide solutions to our current and future customers to comply with regulations, improve efficiency, lower costs and maintain reliability; and the impact of prices of competing power generation sources such as natural gas and renewable energy on demand for our products. These forward-looking statements included in this press release involve risks and uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors including, but not limited to, the timing and scope of new and pending regulations and any legal challenges to or extensions of compliance dates of them; the U.S. government’s failure to promulgate new regulations or enforce existing regulations that benefit our business; changes in laws and regulations, accounting rules, prices, economic conditions and market demand; availability, cost of and demand for alternative energy sources and other technologies and their impact on coal-fired power generation in the U.S.; technical, start up and operational difficulties; competition within the industries in which the Company operates; risks associated with our debt financing; our inability to effectively and efficiently commercialize new products, including our GAC products; our inability to effectively manage commissioning and startup of the GAC facility at our Red River plant; disruptions at any of our facilities, including by natural disasters or extreme weather; risks related to our information technology systems, including the risk of cyberattacks on our networks; failure to protect our intellectual property from infringement or claims that we have infringed on the intellectual property of others; our inability to obtain future financing or financing on terms that are favorable to us; our inability to ramp up our operations to effectively address recent and expected growth in our business; loss of key personnel; ongoing effects of the inflation and macroeconomic uncertainty, including from the new U.S. presidential administration, increased domestic and international tariffs, lingering effects of the pandemic and armed conflicts around the world, and such uncertainty’s effect on market demand and input costs; availability of materials and equipment for our business; intellectual property infringement claims from third parties; pending litigation; factors relating to our business strategy, goals and expectations concerning the Arq Acquisition; our ability to maintain relationships with customers, suppliers and others with whom the Company does business and meet supply requirements; our results of operations and business generally; risks related to diverting management’s attention from our ongoing business operations; costs related to the ongoing manufacturing of our products, including our GAC products; opportunities for additional sales of our AC products and end-market diversification; the timing and scope of new and pending regulations, executive orders and any legal challenges to or extensions of compliance dates of them; the rate of coal-fired power generation in the U.S.; the timing and cost of any future capital expenditures and the resultant impact to our liquidity and cash flows; and the other risk factors described in our filings with the SEC, including our most recent Annual Report on Form 10-K. You are cautioned not to place undue reliance on the forward-looking statements and to consult filings we have made and will make with the SEC for additional discussion concerning risks and uncertainties that may apply to our business and the ownership of our securities. In addition to causing our actual results to differ, the factors listed above may cause our intentions to change from those statements of intention set forth in this press release. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon changes in such factors, our assumptions, or otherwise. The forward-looking statements speak only as to the date of this press release, and we disclaim any duty to update such statements unless required by law.

    Source: Arq, Inc.

    Investor Contact:
    Anthony Nathan, Arq
    Marc Silverberg, ICR
    investors@arq.com

     
    Arq, Inc. and Subsidiaries
    Consolidated Balance Sheets
     
        As of December 31,
    (in thousands, except share data)     2024       2023  
    ASSETS        
    Current assets:        
    Cash   $ 13,516     $ 45,361  
    Receivables, net     14,876       16,192  
    Inventories, net     19,314       19,693  
    Prepaid expenses and other current assets     4,650       5,215  
    Total current assets     52,356       86,461  
    Restricted cash, long-term     8,719       8,792  
    Property, plant and equipment, net of accumulated depreciation of $26,619 and $19,293, respectively     178,564       94,649  
    Other long-term assets, net     44,729       45,600  
    Total Assets   $ 284,368     $ 235,502  
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    Current liabilities:        
    Accounts payable and accrued expenses   $ 21,017     $ 14,603  
    Revolving credit facility     13,828       —  
    Current portion of long-term debt obligations     1,624       2,653  
    Other current liabilities     8,184       5,792  
    Total current liabilities     44,653       23,048  
    Long-term debt obligations, net of current portion     9,370       18,274  
    Other long-term liabilities     13,069       15,780  
    Total Liabilities     67,092       57,102  
    Commitments and contingencies        
    Stockholders’ equity:        
    Preferred stock: par value of $0.001 per share, 50,000,000 shares authorized, none issued or outstanding     —       —  
    Common stock: par value of $0.001 per share, 100,000,000 shares authorized, 46,639,930 and 37,791,084 shares issued and 42,021,784 and 33,172,938 shares outstanding at December 31, 2024 and 2023, respectively     47       38  
    Treasury stock, at cost: 4,618,146 and 4,618,146 shares as of December 31, 2024 and 2023, respectively     (47,692 )     (47,692 )
    Additional paid-in capital     198,487       154,511  
    Retained earnings     66,434       71,543  
    Total Stockholders’ Equity     217,276       178,400  
    Total Liabilities and Stockholders’ Equity   $ 284,368     $ 235,502  
     
    Arq, Inc. and Subsidiaries
    Consolidated Statements of Operations
     
        Three Months Ended December 31,   Years Ended December 31,
    (in thousands, except per share data)     2024       2023       2024       2023  
        (unaudited)        
    Revenue   $ 27,040     $ 28,104     $ 108,959     $ 99,183  
                     
    Cost of revenue, exclusive of depreciation and amortization     17,236       14,105       69,515       67,323  
                     
    Operating expenses:                
    Selling, general and administrative     5,960       6,495       28,695       34,069  
    Research and development     709       1,169       4,050       3,314  
    Depreciation, amortization, depletion and accretion     2,504       3,267       8,594       10,543  
    Loss (gain) on sale of assets     218       (36 )     64       (2,731 )
    Total operating expenses     9,391       10,895       41,403       45,195  
    Operating income (loss)     413       3,104       (1,959 )     (13,335 )
    Other (expense) income:                
    Earnings from equity method investments     —       111       127       1,623  
    Interest expense     (831 )     (859 )     (3,257 )     (3,014 )
    Loss on extinguishment of debt     (1,422 )     —       (1,422 )     —  
    Other     307       1,120       1,238       2,630  
    Total other (expense) income     (1,946 )     372       (3,314 )     1,239  
    (Loss) income before income taxes     (1,533 )     3,476       (5,273 )     (12,096 )
    Income tax (benefit) expense     (194 )     186       (164 )     153  
    Net (loss) income   $ (1,339 )   $ 3,290     $ (5,109 )   $ (12,249 )
    (Loss) income per common share:                
    Basic   $ (0.03 )   $ 0.10     $ (0.14 )   $ (0.42 )
    Diluted   $ (0.03 )   $ 0.10     $ (0.14 )   $ (0.42 )
    Weighted-average number of common shares outstanding:                
    Basic     41,275       32,367       36,051       29,104  
    Diluted     41,275       32,952       36,051       29,104  
     
    Arq, Inc. and Subsidiaries
    Consolidated Statements of Cash Flows
     
        Years Ended December 31,
    (in thousands)     2024       2023  
    Cash flows from operating activities        
    Net loss   $ (5,109 )   $ (12,249 )
    Adjustments to reconcile net loss to net cash provided by (used in) operating activities:        
    Depreciation, amortization, depletion and accretion     8,594       10,543  
    Stock-based compensation expense     2,715       2,648  
    Operating lease expense     2,004       2,757  
    Loss from extinguishment of debt     1,422       —  
    Amortization of debt discount and debt issuance costs     601       546  
    Loss (gain) on sale of assets     64       (2,731 )
    Earnings from equity method investments     (127 )     (1,623 )
    Other non-cash items, net     37       (75 )
    Changes in operating assets and liabilities:        
    Receivables and related party receivables     1,316       (2,264 )
    Prepaid expenses and other assets     1,166       4,777  
    Inventories, net     1,636       (2,571 )
    Other long-term assets, net     (2,166 )     (4,762 )
    Accounts payable and accrued expenses     216       (12,061 )
    Other current liabilities     1,144       (184 )
    Operating lease liabilities     (1,272 )     (168 )
    Other long-term liabilities     (1,764 )     764  
    Net cash provided by (used in) operating activities     10,477       (16,653 )
    Cash flows from investing activities        
    Acquisition of property, plant, equipment and intangible assets, net     (85,170 )     (27,516 )
    Acquisition of mine development costs     (181 )     (2,690 )
    Proceeds from sale of property and equipment     150       —  
    Distributions from equity method investees in excess of cumulative earnings     127       1,623  
    Cash and restricted cash acquired in business acquisition     —       2,225  
    Payment for disposal of Marshall Mine, LLC     —       (2,177 )
    Net cash used in investing activities   $ (85,074 )   $ (28,535 )
    Cash flows from financing activities        
    Net proceeds from common stock issued in public offering   $ 26,654     $ —  
    Net proceeds from common stock issued in private placement transactions     14,951       15,220  
    Borrowings on revolving credit facility     13,828       —  
    Net proceeds from common stock issued to related party     800       1,000  
    Principal payments on notes payable     (10,544 )     (473 )
    Repurchase of common stock to satisfy tax withholdings     (1,135 )     (230 )
    Principal payments on finance lease obligations     (1,022 )     (1,130 )
    Payment of debt issuance costs     (633 )     —  
    Payment of debt extinguishment costs     (220 )     —  
    Net proceeds from CFG Loan, related party, net of discount and issuance costs     —       8,522  
    Net cash provided by financing activities     42,679       22,909  
    Decrease in Cash and Restricted Cash     (31,918 )     (22,279 )
    Cash and Restricted Cash, beginning of year     54,153       76,432  
    Cash and Restricted Cash, end of year   $ 22,235     $ 54,153  
             
    Supplemental disclosure of cash flow information:        
    Cash paid for interest   $ 2,017     $ 1,727  
    Cash received for income taxes   $ (452 )   $ (1,697 )
    Supplemental disclosure of non-cash investing and financing activities:        
    Change in accrued purchases for property and equipment   $ 6,198     $ 914  
    Purchase of property and equipment through note payable   $ 1,004     $ —  
    Equity issued as consideration for acquisition of business   $ —     $ 31,206  
    Paid-in-kind dividend on Series A Preferred Stock   $ —     $ 157  


    Note on Non-GAAP Financial Measures

    To supplement our financial information presented in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”), we provide certain supplemental financial measures, including EBITDA and Adjusted EBITDA, which are measurements that are not calculated in accordance with U.S. GAAP. EBITDA is defined as earnings before interest, taxes, depreciation and amortization, and Adjusted EBITDA is defined as EBITDA reduced by the non-cash impact of equity earnings from equity method investments and other non-cash gains, increased by cash distributions from equity method investments, other non-cash losses and non-recurring costs and fees. EBITDA and Adjusted EBITDA should be considered in addition to, and not as a substitute for, net income (loss) in accordance with U.S. GAAP as a measure of performance. See below for a reconciliation from net income (loss), the nearest U.S. GAAP financial measure, to EBITDA and Adjusted EBITDA.

    We believe that the EBITDA and Adjusted EBITDA measures are less susceptible to variances that affect our operating performance. We include these non-GAAP measures because management uses them in the evaluation of our operating performance, and believe they help to facilitate comparison of operating results between periods. We believe the non-GAAP measures provide useful information to both management and users of the financial statements by excluding certain expenses, gains, and losses which can vary widely across different industries or among companies within the same industry and may not be indicative of core operating results and business outlook.

    EBITDA and Adjusted EBITDA:

    The following table reconciles net income (loss), our most directly comparable as-reported financial measure calculated in accordance with U.S. GAAP, to EBITDA and Adjusted EBITDA (Adjusted EBITDA loss).

     
    Arq, Inc. and Subsidiaries
    Reconciliation of Net income (loss) to EBITDA and Adjusted EBITDA (Adjusted EBITDA loss)
    (Unaudited)
     
        Three Months Ended   Years Ended
        September 30,   December 31,   December 31,
    (in thousands)     2024       2024       2023       2024       2023  
    Net income (loss)   $ 1,617     $ (1,339 )   $ 3,290     $ (5,109 )   $ (12,249 )
    Depreciation, amortization, depletion and accretion     2,716       2,504       3,267       8,594       10,543  
    Amortization of Upfront Customer Consideration     127       127       127       508       508  
    Interest expense, net     600       516       346       2,154       1,168  
    Income tax (benefit) expense     —       (194 )     186       (164 )     153  
    EBITDA     5,060       1,614       7,216       5,983       123  
    Cash distributions from equity method investees     127       —       111       127       1,623  
    Equity earnings     (127 )     —       (111 )     (127 )     (1,623 )
    Loss on extinguishment of debt     —       1,422       —       1,422       —  
    (Gain) loss on sale of assets     (154 )     218       —       64       (2,695 )
    Gain on change in estimate, asset retirement obligation     —       —       (37 )     —       (37 )
    Financing costs     228       47       —       275       —  
    Adjusted EBITDA (Adjusted EBITDA loss)   $ 5,134     $ 3,301     $ 7,179     $ 7,744     $ (2,609 )

    The MIL Network –

  • MIL-Evening Report: Elon Musk thinks the US should leave the UN – what if Trump does it?

    Source: The Conversation (Au and NZ) – By Chris Ogden, Associate Professor in Global Studies, University of Auckland, Waipapa Taumata Rau

    Getty Images

    When Donald Trump’s benefactor and cost-cutter-in-chief Elon Musk recently supported a call for the United States to quit NATO and the United Nations, it should perhaps have been more surprising.

    But the first months of the second Trump presidency have already seen key parts of the current international order undermined. Musk’s position fits a general pattern.

    Aside from the tilt towards a multipolar world order, the US now refuses to recognise the International Criminal Court, has slashed its foreign aid contributions, and has withdrawn from the World Health Organization, the UN Human Rights Council and the Palestinian relief agency UNRWA.

    With Trump’s domestic politics displaying a clear autocratic edge, the rejection of the founding principles and ideals of the UN comes into sharper relief. The intolerant and impatient negotiating approach he displayed with Ukraine’s President Volodymyr Zelensky also belies a disregard for cooperative and consensus-based diplomacy.

    The drive to slash the federal deficit dovetails with this general abandonment of expensive international commitments. If the Trump regime follows through on its apparent strategy of manufacturing crises to advance its agenda, then leaving the UN entirely is a logical next step.

    Undermined ideals

    This is all in stark contrast to the central role the UN has traditionally played within the US-led international order since 1945.

    Along with other institutions, the UN allowed the US to shape the international system in its own image and spread its domestic values and interests across the world. Along with NATO, the UN was designed as a global security institution to produce global stability.

    In theory at least, the political and economic values of the US and other democracies enabled the construction of the postwar order. According to political scientist John Ikenberry, this was based on “multilateralism, alliance partnerships, strategic restraint, cooperative security, and institutional and rule-based relationships”.

    But by the 21st century, US actions had undermined many of these principles. The US-led invasion of Iraq in 2003 bypassed the authority of the UN, causing then secretary-general Kofi Annan to declare that “from the charter point of view [the invasion] was illegal”.

    This undermined the legitimacy of the UN and America’s place within it. But it also diminished the organisation as a force for maintaining international security and national sovereignty in global affairs.

    The subsequent human rights violations by the US through its use of rendition, torture and detention at facilities such as Guantanamo Bay and Abu Ghraib further weakened the UN’s credibility as a protector of liberal international values.

    The US has also been a regular non-payer of UN fees, owing US$2.8 billion in early 2025. And it is one of the lowest contribtuors of military and police personnel to UN peacekeeping operations, despite paying nearly 27% of the overall budget.

    US versus UN

    Since the 1990s, several Republican politicians have argued for the US to withdraw entirely from the UN. In 1997, senator Ron Paul introduced the American Sovereignty Restoration Act, aimed at ending UN membership, expelling the UN headquarters from New York and ending US funding.

    Although it received minimal support and never reached committee hearings, Paul reintroduced the act in every congressional session until his 2011 retirement. It was then taken up by other Republicans, including Paul Broun and Mike Rogers.

    In December 2023, senator Mike Lee and representative Chip Roy led the introduction of the “Disengaging Entirely from the United Nations Debacle (DEFUND) Act”.

    Roy referenced the perceived negative treatment of Israel, the promotion of China, “the propagation of climate hysteria” and the US$12.5 billion in annual payments. Lee added:

    Americans’ hard-earned dollars have been funnelled into initiatives that fly in the face of our values – enabling tyrants, betraying allies, and spreading bigotry.

    Public polling in 2024 also showed only 52% of Americans had a favourable view of the UN. This opposition has deeper historical roots, too.

    In 1920, US isolationists blocked the ratification of the Treaty of Versailles, and with it US participation in the League of Nations (the predecessor to the United Nations). Although the US would interact with the League of Nations until the UN’s formation in 1945, it never became an official member.

    Criticism of the UN also has a bipartisan angle, with the US withdrawing funding of UNRWA in 2024 during Joe Biden’s presidency after Israel accused the agency of links to Hamas.

    A diminished UN

    If Trump harnesses these historical and modern forces to pull the US out of the UN, it would fundamentally – and likely irrevocably – undermine what has been a central pillar of the current international order.

    It would also increase US isolationism, reduce Western influence, and legitimise alternative security bodies. These include the Shanghai Cooperation Organisation, which the US could potentially join, especially given Russia and India are both members.

    More broadly, the reduced influence of the UN will endanger general peace and security in the international sphere, and the wider protection and promotion of human rights.

    There would be greater unpredictability in global affairs, and the world would be a more dangerous place. For countries big and small, a UN without the US will force new strategic calculations and create new alliances and blocs, as the world leaps into the unknown.

    Chris Ogden is a Senior Research Fellow with The Foreign Policy Centre, London.

    – ref. Elon Musk thinks the US should leave the UN – what if Trump does it? – https://theconversation.com/elon-musk-thinks-the-us-should-leave-the-un-what-if-trump-does-it-251483

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: Welch Reintroduces the Digital Integrity in Democracy Act 

    US Senate News:

    Source: United States Senator Peter Welch (D-Vermont)
    Bill will increase accountability for election-related disinformation 
    WASHINGTON, D.C. –  U.S. Senator Peter Welch (D-Vt.) led Senators Amy Klobuchar (D-Minn.), Jeff Merkley (D-Ore.), Ben Ray Luján (D-N.M.), and Mazie Hirono (D-Hawaii) this week in reintroducing the Digital Integrity in Democracy Act, legislation to increase accountability for social media platforms that knowingly host false election administration information. The bill aims to strengthen voting rights protections by carving out a narrow exception from existing legal immunity for social media platforms that intentionally or knowingly amplify election-related misinformation. 
    “Across the country, voting rights are under attack. We see that very clearly on social media, where carefully orchestrated campaigns target voters with false information in an effort to keep them from the ballot box. But social media platforms have been reluctant to intervene and remove this false information, letting these harmful lies live online. They need a reality check,” said Senator Welch. “Our bill seeks to hold social media platforms accountable for intentionally hosting false election administration information to ensure every voter can fairly participate in our democracy.” 
    “Free and fair elections are the cornerstone of our democracy. While election disinformation is not new, emerging technologies make it easier to deceive Americans about how to exercise their right to vote,” said Senator Klobuchar. “This legislation will combat efforts intended to disenfranchise voters by holding social media companies accountable for allowing false information on their platforms about voting like when and where to cast a ballot.” 
    “We must crack down on the spread of false information about our elections,” said Senator Merkley. “Preserving a government ‘of, by, and for the people’ depends on protecting voters from the quick, easy spread of misinformation on social media that can jeopardize voters’ ability to exercise their right to vote.” 
    “Falsehoods posted on social media about the time, place and manner of an election, and lies about voter eligibility requirements, are spread with the intent to suppress voter turnout,” said Senator Luján. “I’m proud to cosponsor the Digital Integrity in Democracy Act, legislation that would hold large-scale social media companies accountable for removing these types of election falsities. This is a reasonable, balanced approach to protecting voters and our democracy, while also protecting free speech online.” 
    “Disinformation about elections on social media platforms is a threat to our democracy and to the right of all Americans to make their voices heard in our elections,” said Senator Hirono. “I’m glad to join Senator Welch and our colleagues in introducing this legislation to hold social media companies accountable for election disinformation shared on their platforms.” 
    The Digital Integrity in Democracy Act is endorsed by Common Cause and Stand Up America. 
    “All voters deserve access to trusted information about our elections. However, when social media companies knowingly allow and amplify false election information on their platforms, voters are left in the dark,” said Ishan Mehta, Common Cause’s Media and Democracy Program Director. “Common Cause thanks Senator Welch for introducing the Digital Integrity in Democracy Act to ensure that voters can get trusted information about elections when making their voices heard, and we encourage Congress to quickly pass this legislation.” 
    “Recent decisions at Meta show that social media companies do not want to take responsibility for the content on their platforms. They don’t care if misinformation and disinformation flow rampantly – they’re profiting from it. Instead, they want to exploit users as unpaid labor to do the fact-checking without any real oversight (i.e. Community Notes on Twitter/X and Facebook),” said Dayanita Ramesh, Senior Social Media Director at Stand Up America. “The truth still matters, particularly when it comes to our elections and our freedom to vote. Senator Welch’s Digital Integrity in Democracy Act would finally hold social media companies accountable for spreading lies about election information and voting access. We applaud Senator Welch’s leadership in demanding accountability from these platforms and ensuring the American people have the accurate information they need to exercise their freedom to vote.” 
    Learn more about the Digital Integrity in Democracy Act. 
    Read a section-by-section summary and full text of the bill. 

    MIL OSI USA News –

  • MIL-OSI Russia: Five best articles in Russian for 05.03.2025

    MIL Analysis: Here are the top five Russian language articles published today. The analysis includes five key articles prioritized at the moment.

    Long-term bank deposits are relevant in today’s analysis, but inflation is still high.

    Social infrastructure is productive. The Moscow Metro is improving every year, and it is again celebrating its results for the last two years on the Great Ring Line. In addition, there is a new function on the portal “Recognize Moscow” to facilitate information about the city of Moscow.

    Moscow is preparing for International Women’s Day, and you can already see decorations around the city in the form of posters and exhibitions dedicated to the women of Russia.

    From March 1 to May 31, 2025, applications are accepted for the All-Russian contest called “Golden Names of Higher Education”. The contest is open to faculty members.

    Below you can read one of the entries.

    1. Term matters – Russians are shifting their savings to long deposits.

    How did the bank deposit market change at the beginning of 2025?

    Russians’ demand for long deposits started to grow in January 2025 – customers are trying to lock in a high rate for a long term. According to the data of the platform “Finuservices” for the first two months of the year:

    • the share of deposits for 6 months decreased by 1.5 p.p., amounting to 54% of total deposits – the term is still the most popular;
    • the share of deposits for 3 months decreased by 1.3 p.p. to 25.2%;
    • the share of deposits for 3 months decreased by 1.5 p.p. to 25.2%. – to 25.2%;
    • the share of 1-month deposits also decreased by 1.3 p.p. to 3.1%;
    • the share of deposits for one year, on the contrary, increased by 3 p.p. to 13.7%;
    • deposits with maturity over one year also show insignificant growth.

    2. We invite GUU teachers to participate in the All-Russian contest “Golden Names of Higher Education”.

    From March 1 to May 31, 2025 applications are accepted for participation in the All-Russian Contest “Golden Names of Higher School”. We invite the professorial and pedagogical staff of the State University of Management to participate in the Contest.

    The contest “Golden Names of Higher School” is held by the Interregional Public Organization “League of Higher School Teachers” with the support of the Ministry of Science and Higher Education of the Russian Federation since 2017. It is aimed at identifying and supporting talented teachers and scientists who have made a significant contribution to the development of Russian higher education and science. Over 7 thousand teachers have participated in the Contest throughout its history.

    3. Moscow Metro celebrates two years of through traffic on the Great Ring Line, having served more than 740 million passengers.

    The Moscow Metro celebrates the second anniversary of the launch of through traffic on the Great Ring Line (BCL), a monumental achievement in the city’s transportation infrastructure. Since its full launch two years ago, the BCL has served more than 740 million passengers, changing the way Muscovites travel around the city.

    4. Everything about your capital city: how the personal account of the “Learn Moscow” portal has been updated.

    A new function has appeared in the user’s personal cabinet on the “Learn Moscow” portal. Now in the “Favorites” section you can create your own selections of online routes, articles about museums, monuments and buildings, as well as materials about people who have left their mark on the culture and history of the capital. This will make it easier for users to systematize information about the places they want to visit and find the content they like faster.

    5. “Such different girls, girls, women”: Glavarkhiv invites to the exhibition for March 8.

    The exhibition “Such Different Girls, Girls, Women” dedicated to International Women’s Day opened on Chistoprudny Boulevard and in Ekaterininsky Park. The exhibition includes photographs from the funds of the Moscow Glavarkhiv from the 1900s to the 1980s. The photos depict girls of different professions. The exhibition can be viewed until April 4.

    Learn more about MIL’s content and data services by visiting milnz.co.nz.

    Regards MIL!

    MIL OSI Russia News –

  • MIL-OSI USA: Mandatory Spending Under the Jurisdiction of the House Committee on Energy and Commerce

    Source: US Congressional Budget Office

    In response to a request from Ranking Member Boyle and Ranking Member Pallone, CBO provides information about projections of mandatory spending for the 2025–2034 period for the list of programs, excluding Medicare, that the Members indicated are under the jurisdiction of the House Committee on Energy and Commerce.

    In CBO’s January 2025 baseline budget projections, mandatory outlays for the accounts that the Members asked about total $8.8 trillion for the 2025–2034 period. Medicaid outlays account for $8.2 trillion, or 93 percent, of that amount (see Table 1 in the PDF).

    The Members also asked for two subtotals of projected outlays in Table 1:

    • Outlays other than for Medicaid total $581 billion through 2034.
    • Outlays other than for Medicaid and CHIP total $381 billion over the 10‑year period.

    Among the largest programs other than Medicaid and CHIP are the risk adjustment program, in which health insurers make payments to the government or receive payments from it according to the health of their enrollees ($158 billion), and the Universal Service Fund ($87 billion). The risk adjustment program, however, is budget neutral with revenues offsetting spending. Spending from the Universal Service Fund is derived from fees that are classified as revenues on certain telecommunication services. Outlays for all other programs total $135 billion, on net, over the period, encompassing spending for a variety of federal activities.

    MIL OSI USA News –

  • MIL-OSI: Descartes Announces Fiscal 2025 Fourth Quarter and Annual Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Record Income from Operations

    WATERLOO, Ontario and ATLANTA, March 05, 2025 (GLOBE NEWSWIRE) — The Descartes Systems Group Inc. (TSX:DSG) (Nasdaq:DSGX) announced its financial results for its fiscal 2025 fourth quarter (Q4FY25) and year (FY25) ended January 31, 2025. All financial results referenced are in United States (US) currency and, unless otherwise indicated, are determined in accordance with US Generally Accepted Accounting Principles (GAAP).

    “Fiscal 2025 was another year of growth for Descartes, highlighted by the addition of numerous complementary services to the Global Logistics Network,” said Edward J. Ryan, Descartes’ CEO. “We believe these investments can help shippers, carriers, and logistics services providers manage the increased uncertainty and complexity that’s recently been introduced to the global trade environment. Our customers benefit from our diversity in international and domestic supply chains, our expertise with tariffs, sanctions and other global trade issues, and our expansive roster of connected trading partners as they navigate a quickly evolving trade landscape.”

    FY25 Financial Results
    As described in more detail below, key financial highlights for Descartes’ FY25 included:

    • Revenues of $651.0 million, up 14% from $572.9 million in the same period a year ago (FY24);
    • Revenues were comprised of services revenues of $590.2 million (91% of total revenues), professional services and other revenues of $55.1 million (8% of total revenues) and license revenues of $5.7 million (1% of total revenues). Services revenues were up 13% from $520.9 million in FY24;
    • Cash provided by operating activities of $219.3 million, up 6% from $207.7 million in FY24. Cash provided by operating activities was negatively impacted in FY25 by the payment of $25.0 million in contingent acquisition consideration for previously completed deals, which was not accrued for at the time of acquisition;
    • Income from operations of $181.1 million, up 27% from $142.8 million in FY24;
    • Net income of $143.3 million, up 24% from $115.9 million in FY24. Net income as a percentage of revenues was 22%, compared to 20% in FY24;
    • Earnings per share on a diluted basis of $1.64, up 22% from $1.34 in FY24; and
    • Adjusted EBITDA of $284.7 million, up 15% from $247.5 million in FY24. Adjusted EBITDA as a percentage of revenues was 44%, compared to 43% in FY24.

    Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures provided as a complement to financial results presented in accordance with GAAP. We define Adjusted EBITDA as earnings before interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes) and other charges (for which we include restructuring charges, acquisition-related expenses, and contingent consideration incurred due to better-than-expected performance from acquisitions). These items are considered by management to be outside Descartes’ ongoing operational results. We define Adjusted EBITDA as a percentage of revenues as the quotient, expressed as a percentage, from dividing Adjusted EBITDA for a period by revenues for the corresponding period. A reconciliation of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income determined in accordance with GAAP is provided later in this release.

    The following table summarizes Descartes’ results in the categories specified below over FY25 and FY24 (dollar amounts in millions):

      FY25
    		   FY24  
    Revenues 651.0   572.9  
    Services revenues 590.2   520.9  
    Gross margin 76 % 76 %
    Cash provided by operating activities* 219.3   207.7  
    Income from operations 181.1   142.8  
    Net income 143.3   115.9  
    Net income as a % of revenues 22 % 20 %
    Earnings per diluted share 1.64   1.34  
    Adjusted EBITDA 284.7   247.5  
    Adjusted EBITDA as a % of revenues 44 % 43 %
             

    (*) FY25 cash provided by operating activities was negatively impacted by the payment of $25.0 million in contingent acquisition consideration for previously completed deals, which was not accrued for at the time of acquisition but was paid due to post-acquisition performance exceeding expectations at the time of acquisition

    Q4FY25 Financial Results
    As described in more detail below, key financial highlights for Q4FY25 included:

    • Revenues of $167.5 million, up 13% from $148.2 million in the fourth quarter of fiscal 2024 (Q4FY24) and down from $168.8 million in the previous quarter (Q3FY25);
    • Revenues were comprised of services revenues of $156.5 million (93% of total revenues), professional services and other revenues of $10.7 million (6% of total revenues) and license revenues of $0.3 million (1% of total revenues). Services revenues were up 15% from $135.7 million in Q4FY24 and up 5% from $149.7 million in Q3FY25;
    • Cash provided by operating activities of $60.7 million, up 19% from $50.8 million in Q4FY24 and up 1% from $60.1 million in Q3FY25;
    • Income from operations of $47.1 million, up 27% from $37.0 million in Q4FY24 and up 3% from $45.8 million in Q3FY25;
    • Net income of $37.4 million, up 18% from $31.8 million in Q4FY24 and up 2% from $36.6 million in Q3FY25. Net income as a percentage of revenues was 22%, compared to 21% in Q4FY24 and 22% in Q3FY25;
    • Earnings per share on a diluted basis of $0.43, up 16% from $0.37 in Q4FY24 and up 2% from $0.42 in Q3FY25; and
    • Adjusted EBITDA of $75.0 million, up 14% from $65.7 million in Q4FY24 and up 4% from $72.1 million in Q3FY25. Adjusted EBITDA as a percentage of revenues was 45%, compared to 44% in Q4FY24 and 43% in Q3FY25, respectively.

    The following table summarizes Descartes’ results in the categories specified below over the past 5 fiscal quarters (unaudited; dollar amounts, other than per share amounts, in millions):

      Q4
    FY25    		   Q3
    FY25    		   Q2
    FY25    		   Q1
    FY25    		   Q4
    FY24    		  
    Revenues 167.5   168.8   163.4   151.3   148.2  
    Services revenues 156.5   149.7   146.2   137.8   135.7  
    Gross margin 76 % 74 % 75 % 77 % 76 %
    Cash provided by operating activities* 60.7   60.1   34.7   63.7   50.8  
    Income from operations 47.1   45.8   45.9   42.4   37.0  
    Net income 37.4   36.6   34.7   34.7   31.8  
    Net income as a % of revenues 22 % 22 % 21 % 23 % 21 %
    Earnings per diluted share 0.43   0.42   0.40   0.40   0.37  
    Adjusted EBITDA 75.0   72.1   70.6   67.0   65.7  
    Adjusted EBITDA as a % of revenues 45 % 43 % 43 % 44 % 44 %
                         

    (*) Q2FY25 cash provided by operating activities was negatively impacted by the payment of $25.0 million in contingent acquisition consideration for previously completed deals, which was not accrued for at the time of acquisition but was paid due to post-acquisition performance exceeding expectations at the time of acquisition

    Cash Position
    At January 31, 2025, Descartes had $236.1 million in cash. Cash increased by $54.8 million in Q4FY25 and decreased by $84.9 million in FY25. The table set forth below provides a summary of cash flows for Q4FY25 and FY25 in millions of dollars:

      Q4FY25   FY25  
    Cash provided by operating activities 60.7   219.3  
    Additions to property and equipment (2.1 ) (6.8 )
    Acquisitions of subsidiaries, net of cash acquired (3.7 ) (290.2 )
    Payment of debt issuance costs   (0.1 )
    Issuances of common shares, net of issuance costs 2.5   12.4  
    Payment of withholding taxes on net share settlements –   (6.7 )
    Payment of contingent consideration –   (9.2 )
    Effect of foreign exchange rate on cash (2.6 ) (3.6 )
    Net change in cash 54.8   (84.9 )
    Cash, beginning of period 181.3   321.0  
    Cash, end of period 236.1   236.1  
             

    Conference Call
    Descartes’ executive management team will hold a conference call to discuss the company’s financial results at 5:30 PM ET on Wednesday, March 5. Designated numbers are +1 289 514 5100 or +1 800 717 1738 for North America Toll-Free, using Passcode 45440#.

    The company will simultaneously conduct an audio webcast on the Descartes website at https://www.descartes.com/who-we-are/investor-relations/financial-information. Phone conference dial-in or webcast login is required approximately 10 minutes beforehand.

    Replays of the conference call will be available until March 12, 2025, by dialing +1 289 819 1325 or Toll-Free for North America using +1 888 660 6264 with Playback Passcode: 45440#. An archived replay of the webcast will be available at https://www.descartes.com/who-we-are/investor-relations/financial-information.

    About Descartes

    Descartes (Nasdaq:DSGX) (TSX:DSG) is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, security and sustainability of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, track and help improve the safety, performance and compliance of delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world’s largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world. Learn more at www.descartes.com, and connect with us on LinkedIn and X (Twitter).

    Descartes Investor Contact
    Laurie McCauley
    (519) 746-2969
    investor@descartes.com

    Cautionary Statement Regarding Forward-Looking Statements

    This release may contain forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that relates to Descartes’ expectations concerning future revenues and earnings, and our projections for any future reductions in expenses or growth in margins and generation of cash; our assessment of the potential impact of geopolitical events, such as the ongoing conflict between Russia and Ukraine (the “Russia-Ukraine Conflict”), and between Israel and Hamas (“Israel-Hamas Conflict”), or other potentially catastrophic events, on our business, results of operations and financial condition; continued growth and acquisitions including our assessment of any increased opportunity for our products and services as a result of trends in the logistics and supply chain industries; rate of profitable growth and Adjusted EBITDA margin operating range; demand for Descartes’ solutions; growth of Descartes’ Global Logistics Network (“GLN”); customer buying patterns; customer expectations of Descartes; development of the GLN and the benefits thereof to customers; and other matters. These forward-looking statements are based on certain assumptions including the following: global shipment volumes continuing at levels generally consistent with those experienced historically; the Russia-Ukraine Conflict and Israel-Hamas Conflict not having a material negative impact on shipment volumes or on the demand for the products and services of Descartes by its customers and the ability of those customers to continue to pay for those products and services; countries continuing to implement and enforce existing and additional customs and security regulations relating to the provision of electronic information for imports and exports; countries continuing to implement and enforce existing and additional trade restrictions and sanctioned party lists with respect to doing business with certain countries, organizations, entities and individuals; Descartes’ continued operation of a secure and reliable business network; the stability of general economic and market conditions, currency exchange rates, and interest rates; equity and debt markets continuing to provide Descartes with access to capital; Descartes’ continued ability to identify and source attractive and executable business combination opportunities; Descartes’ ability to develop solutions that keep pace with the continuing changes in technology, and our continued compliance with third party intellectual property rights. These assumptions may prove to be inaccurate. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Descartes, or developments in Descartes’ business or industry, to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, Descartes’ ability to successfully identify and execute on acquisitions and to integrate acquired businesses and assets, and to predict expenses associated with and revenues from acquisitions; the impact of network failures, information security breaches or other cyber-security threats; disruptions in the movement of freight and a decline in shipment volumes including as a result of contagious illness outbreaks; a deterioration of general economic conditions or instability in the financial markets accompanied by a decrease in spending by our customers; the ability to attract and retain key personnel and the ability to manage the departure of key personnel and the transition of our executive management team; changes in trade or transportation regulations that currently require customers to use services such as those offered by Descartes; changes in customer behaviour and expectations; Descartes’ ability to successfully design and develop enhancements to our products and solutions; departures of key customers; the impact of foreign currency exchange rates; Descartes’ ability to retain or obtain sufficient capital in addition to its debt facility to execute on its business strategy, including its acquisition strategy; disruptions in the movement of freight; the potential for future goodwill or intangible asset impairment as a result of other-than-temporary decreases in Descartes’ market capitalization; and other factors and assumptions discussed in the section entitled, “Certain Factors That May Affect Future Results” in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada, including Descartes’ most recently filed Management’s Discussion and Analysis. If any such risks actually occur, they could materially adversely affect our business, financial condition or results of operations. In that case, the trading price of our common shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

    Reconciliation of Non-GAAP Financial Measures – Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues

    We prepare and release quarterly unaudited and annual audited financial statements prepared in accordance with GAAP. We also disclose and discuss certain non-GAAP financial information, used to evaluate our performance, in this and other earnings releases and investor conference calls as a complement to results provided in accordance with GAAP. We believe that current shareholders and potential investors in our company use non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues, in making investment decisions about our company and measuring our operational results.

    The term “Adjusted EBITDA” refers to a financial measure that we define as earnings before certain charges that management considers to be non-operating expenses and which consist of interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes) and other charges (for which we include restructuring charges, acquisition-related expenses, and contingent consideration incurred due to better-than-expected performance from acquisitions). Adjusted EBITDA as a percentage of revenues divides Adjusted EBITDA for a period by the revenues for the corresponding period and expresses the quotient as a percentage.

    Management considers these non-operating expenses to be outside the scope of Descartes’ ongoing operations and the related expenses are not used by management to measure operations. Accordingly, these expenses are excluded from Adjusted EBITDA, which we reference to both measure our operations and as a basis of comparison of our operations from period-to-period. Management believes that investors and financial analysts measure our business on the same basis, and we are providing the Adjusted EBITDA financial metric to assist in this evaluation and to provide a higher level of transparency into how we measure our own business. However, Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures and may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues should not be construed as a substitute for net income determined in accordance with GAAP or other non-GAAP measures that may be used by other companies, such as EBITDA. The use of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues does have limitations. In particular, we have completed seven acquisitions since the beginning of fiscal 2024 and may complete additional acquisitions in the future that will result in acquisition-related expenses and restructuring charges. As these acquisition-related expenses and restructuring charges may continue as we pursue our consolidation strategy, some investors may consider these charges and expenses as a recurring part of operations rather than expenses that are not part of operations.

    The table below reconciles Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income reported in our audited Consolidated Statements of Operations for FY25 and FY24, which we believe is the most directly comparable GAAP measure.

    (US dollars in millions) FY25   FY24  
    Net income, as reported on Consolidated Statements of Operations 143.3   115.9  
    Adjustments to reconcile to Adjusted EBITDA:    
    Interest expense 1.0   1.4  
    Investment income (11.5 ) (9.7 )
    Income tax expense 48.3   35.2  
    Depreciation expense 5.6   5.5  
    Amortization of intangible assets 69.4   60.5  
    Stock-based compensation and related taxes 21.1   17.1  
    Other charges 7.5   21.6  
    Adjusted EBITDA 284.7   247.5  
         
    Revenues 651.0   572.9  
    Net income as % of revenues 22 % 20 %
    Adjusted EBITDA as % of revenues 44 % 43 %
             

    The table below reconciles Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income reported in our unaudited Consolidated Statements of Operations for Q4FY25, Q3FY25, Q2FY25, Q1FY25, and Q4FY24, which we believe is the most directly comparable GAAP measure.

    (US dollars in millions) Q4FY25   Q3FY25   Q2FY25   Q1FY25   Q4FY24  
    Net income, as reported on Consolidated Statements of Operations 37.4   36.6   34.7   34.7   31.8  
    Adjustments to reconcile to Adjusted EBITDA:          
    Interest expense 0.2   0.2   0.2   0.3   0.3  
    Investment income (1.9 ) (2.9 ) (2.7 ) (4.1 ) (3.4 )
    Income tax expense 11.4   11.9   13.6   11.5   8.3  
    Depreciation expense 1.5   1.4   1.4   1.4   1.4  
    Amortization of intangible assets 19.4   17.5   17.4   15.0   15.1  
    Stock-based compensation and related taxes 5.4   5.6   5.8   4.3   4.7  
    Other charges 1.6   1.8   0.2   3.9   7.5  
    Adjusted EBITDA 75.0   72.1   70.6   67.0   65.7  
               
    Revenues 167.5   168.8   163.4   151.3   148.2  
    Net income as % of revenues 22 % 22 % 21 % 23 % 21 %
    Adjusted EBITDA as % of revenues 45 % 43 % 43 % 44 % 44 %
               

    The Descartes Systems Group Inc.
    Consolidated Balance Sheets
    (US dollars in thousands; US GAAP)

      January 31,   January 31,  
      2025   2024  
    ASSETS    
    CURRENT ASSETS    
    Cash 236,138   320,952  
    Accounts receivable (net)    
    Trade 53,953   51,569  
    Other 16,931   12,193  
    Prepaid expenses and other 45,544   33,468  
      352,566   418,182  
    OTHER LONG-TERM ASSETS 24,887   24,737  
    PROPERTY AND EQUIPMENT, NET 12,481   11,552  
    RIGHT-OF-USE ASSETS 7,623   6,257  
    DEFERRED INCOME TAXES 3,802   2,097  
    INTANGIBLE ASSETS, NET 321,270   251,047  
    GOODWILL 924,755   760,413  
      1,647,384   1,474,285  
    LIABILITIES AND SHAREHOLDERS’ EQUITY    
    CURRENT LIABILITIES    
    Accounts payable 20,650   17,484  
    Accrued liabilities 79,656   91,824  
    Lease obligations 3,178   3,075  
    Income taxes payable 9,313   6,734  
    Deferred revenue 104,230   84,513  
      217,027   203,630  
    LEASE OBLIGATIONS 4,718   3,903  
    DEFERRED REVENUE 978   1,464  
    INCOME TAXES PAYABLE 5,531   6,153  
    DEFERRED INCOME TAXES 34,127   21,101  
      262,381   236,251  
         
    SHAREHOLDERS’ EQUITY    
    Common shares – unlimited shares authorized; Shares issued and outstanding totaled 85,605,969 at January 31, 2025 (January 31, 2024 – 85,183,455) 568,339   551,164  
    Additional paid-in capital 503,133   494,701  
    Accumulated other comprehensive loss (50,497 ) (28,586 )
    Retained earnings 364,028   220,755  
      1,385,003   1,238,034  
      1,647,384   1,474,285  
             

    The Descartes Systems Group Inc.
    Consolidated Statements of Operations
    (US dollars in thousands, except per share and weighted average share amounts; US GAAP)

      January 31,   January 31,   January 31,  
    Year Ended 2025   2024   2023  
           
    REVENUES 651,000   572,931   486,014  
    COST OF REVENUES 158,574   138,295   113,326  
    GROSS MARGIN 492,426   434,636   372,688  
    EXPENSES      
    Sales and marketing 73,692   68,161   56,573  
    Research and development 95,497   84,103   70,353  
    General and administrative 65,248   57,373   49,710  
    Other charges 7,466   21,649   5,441  
    Amortization of intangible assets 69,399   60,501   60,177  
      311,302   291,787   242,254  
    INCOME FROM OPERATIONS 181,124   142,849   130,434  
    INTEREST EXPENSE (1,004 ) (1,363 ) (1,167 )
    INVESTMENT INCOME 11,513   9,666   4,461  
    INCOME BEFORE INCOME TAXES 191,633   151,152   133,728  
    INCOME TAX EXPENSE (RECOVERY)      
    Current 53,402   41,223   28,248  
    Deferred (5,042 ) (5,978 ) 3,244  
      48,360   35,245   31,492  
    NET INCOME 143,273   115,907   102,236  
    EARNINGS PER SHARE      
    Basic 1.68   1.36   1.21  
    Diluted 1.64   1.34   1.18  
    WEIGHTED AVERAGE SHARES OUTSTANDING (thousands)      
    Basic 85,443   85,068   84,791  
    Diluted 87,323   86,818   86,451  
                 

    The Descartes Systems Group Inc.
    Consolidated Statements of Cash Flows
    (US dollars in thousands; US GAAP)

    Year Ended January 31,   January 31,   January 31,  
      2025   2024   2023  
    OPERATING ACTIVITIES            
    Net income 143,273   115,907   102,236  
    Adjustments to reconcile net income to cash provided by operating activities:      
    Depreciation 5,589   5,474   5,225  
    Amortization of intangible assets 69,399   60,501   60,177  
    Stock-based compensation expense 19,962   16,480   13,667  
    Other non-cash operating activities 23   114   53  
    Deferred tax expense (recovery) (5,042 ) (5,978 ) 3,244  
    Changes in operating assets and liabilities (13,932 ) 15,182   7,793  
    Cash provided by operating activities 219,272   207,680   192,395  
    INVESTING ACTIVITIES      
    Additions to property and equipment (6,743 ) (5,563 ) (6,071 )
    Acquisition of subsidiaries, net of cash acquired (290,204 ) (142,700 ) (115,561 )
    Cash used in investing activities (296,947 ) (148,263 ) (121,632 )
    FINANCING ACTIVITIES      
    Payment of debt issuance costs (53 ) (43 ) (1,118 )
    Issuance of common shares for cash, net of issuance costs 12,391   9,272   1,730  
    Payment of withholding taxes on net share settlements (6,745 ) (4,886 ) –  
    Payment of contingent consideration (9,223 ) (19,084 ) (5,215 )
    Cash used in financing activities (3,630 ) (14,741 ) (4,603 )
    Effect of foreign exchange rate changes on cash (3,509 ) (109 ) (3,212 )
    Increase (decrease) in cash (84,814 ) 44,567   62,948  
    Cash, beginning of year 320,952   276,385   213,437  
    Cash, end of year 236,138   320,952   276,385  
                 

    The MIL Network –

  • MIL-OSI Canada: Budget 2025: Investing in Alberta’s future | Budget 2025 : Investir dans l’avenir de l’Alberta

    As Alberta continues work to address increasing domestic and international economic pressures, Budget 2025 works to strengthen Alberta’s economy. This budget helps build communities, secure Alberta’s southern border and boost investments in the province’s economic future.

    “While we work closely with partners to find solutions to a possible trade conflict, we will continue our work to make sure Alberta’s economy is strong – in and outside of the energy sector – so that we can manage any turbulence that comes our way. Budget 2025 carves our path forward in the face of this uncertainty.”

    Nate Horner, President of Treasury Board and Minister of Finance

    Budget 2025: Supporting a strong workforce

    Alberta’s workforce is the backbone of the provincial economy. Budget 2025 continues the commitment to training and developing a skilled and resilient labour force to further grow Alberta’s economy and help businesses succeed, including: 

    • $26.1 billion over three years from the Capital Plan, to support about 26,500 direct and 12,000 indirect jobs each year through 2027-28.
    • $135 million for skilled trade programs such as apprenticeship and adult learning initiatives to help Albertans gain the skills and training needed for successful careers, and support access to job opportunities.
    • $2 billion in 2025-26 to support and expand early learning and child-care system so parents and caregivers can participate in training, education or work opportunities.  

    Budget 2025: Securing our borders

    • Alberta’s government is committed to being a good neighbour and trading partner, and part of this commitment involves taking measures to secure the Alberta-US border. Budget 2025 includes $29 million in 2025-26 for a new Interdiction Patrol Team within the Alberta Sheriffs to tackle illegal drug and gun smuggling, human trafficking, apprehension of persons attempting to cross the border illegally, and other illegal activities along Alberta’s international land border. Budget 2025 also includes a $15 million investment over two years for three new vehicle inspection stations located near borders to the USA.

    Budget 2025: Investing in post-secondary education

    Budget 2025 invests a total of $7.4 billion in post-secondary education, with an operating budget of $6.6 billion in 2025-26. This includes:

    • $78 million per year over the next three years to create more seats in apprenticeship classes across the province to build skilled trades and apprenticeship education that will respond to the needs of industry, support the economy and connect Albertans with jobs.
    • $113 million to support greater demand for scholarships and the Alberta Student Grant, with $60 million funded from the Alberta Heritage Scholarship Fund.
    • $4 million to the First Nations Colleges Grant which is distributed equally across five colleges in rural and remote Indigenous communities.

    “Our government is ensuring that Alberta students have the skills and training they need to meet the needs of today while preparing for the economy of the future. Budget 2025 makes foundational investments to meet the challenge of a rapidly growing population while supporting a sustainable post-secondary education system.”

    Rajan Sawhney, Minister of Advanced Education

    Budget 2025: Building communities

    Alberta’s vibrant communities make Alberta the best place in Canada to live, work and raise a family. Budget 2025 invests in stronger communities across Alberta, including:

    • $17.2 million to increase grants made to municipalities in lieu of property taxes on government-owned property to 75 per cent, up from the current 50 per cent. By next year, the province will cover 100 per cent of the amount that would be paid if the property was taxable.
    • $820 million this year and $2.5 billion over three years in Local Government Fiscal Framework capital funding to help fund local infrastructure priorities.

    Budget 2025: Supporting trade and diversification

    Alberta continues to champion economic growth and policies that support productivity. Through Budget 2025, Alberta’s government will continue to build on current successes through:

    • Attracting more investment through low corporate income taxes. At eight per cent, Alberta’s corporate income tax rate is 30 per cent lower than the next lowest province.
    • Providing greater incentive for small- and medium-sized firms that increase their spending on research and development, with Alberta’s Innovation Employment Grant.
    • Promoting Alberta as a reliable partner in supporting North American and global energy security to investors. The province will optimize new and existing infrastructure to access new markets for Alberta’s energy and mineral resources.
    • Supporting Alberta’s agriculture producers and value-added processors, addressing barriers to trade by cultivating export markets, and working to increase market access for Alberta products.
    • Reinforcing Alberta as a critical contributor to North American energy security by continuing to advocate for our remarkable energy sector across Canada, the U.S., Germany, Japan and the rest of the world.

    Budget 2025: Investing in business and industry

    Budget 2025 continues to find ways to help Alberta’s economy grow through investments in business and industry and help our economy grow, including:

    • Support to attract investment in Alberta’s energy and mineral resource sector to accelerate opportunities in emerging resources.
    • $45 million over three years for the Investment and Growth Fund to attract investment into Alberta’s economy.
    • $1.8 million in Western Crop Innovations for industry-leading crop research.
    • $780,000 to support small- and medium-sized meat processors.
    • $3.1 million for the University of Calgary’s Faculty of Veterinary Medicine to expand toward a full-service veterinary diagnostic laboratory. This will give livestock producers and vets access to quicker, more affordable livestock diagnostics closer to home.

    “Budget 2025 builds a stronger Alberta by growing industries, creating high-quality jobs and expanding opportunities for workers and families. With strategic investments in innovation, infrastructure and workforce development, Alberta is rising to the challenge, strengthening our province for many years to come.”

    Matt Jones, Minister of Jobs, Economy and Trade

    “We are advancing cutting-edge research in agriculture and supporting small and medium-sized businesses. Additionally, we are strengthening our agricultural infrastructure, ensuring quicker and more affordable services for livestock producers and veterinarians. We’re supporting innovation, attracting investment, and building a resilient economy for the future.”

    RJ Sigurdson, Minister of Agriculture and Irrigation

    Budget 2025 is meeting the challenge faced by Alberta with continued investments in education and health, lower taxes for families and a focus on the economy.

    Related information

    • Budget 2025

    Related news

    • Budget 2025: Meeting the challenge (Feb 27, 2025)
    • Budget 2025: Meeting the challenge in health and education (Feb 27, 2025)

    Multimedia

    • Watch the Budget address
    • Watch the news conference
    • Listen to the news conference

    Le budget de 2025 relève le défi de l’incertitude en matière de commerce et de sécurité en mettant l’accent sur l’économie.

    À mesure que l’Alberta continue de répondre aux pressions économiques intérieures et internationales, le budget de 2025 vise à renforcer l’économie albertaine. Il contribue à bâtir des communautés, à assurer la sécurité de la frontière au sud de la province et à renforcer les investissements dans notre avenir économique.

    « Alors que nous travaillons en étroite collaboration avec des partenaires pour trouver des solutions à un différend commercial potentiel, nous poursuivons notre travail pour nous assurer que l’économie de l’Alberta est forte, dans le secteur de l’énergie et ailleurs, afin de pouvoir gérer toute perturbation. Le budget de 2025 trace la voie à suivre face à cette incertitude. »

    Nate Horner, président du Conseil du Trésor et ministre des Finances

    Budget 2025 : Soutenir une main-d’œuvre solide

    La main-d’œuvre albertaine est l’épine dorsale de l’économie provinciale. Le budget de 2025 maintient l’engagement envers la formation et le perfectionnement d’une main-d’œuvre qualifiée et résiliente de sorte à faire croître l’économie et aider les entreprises à réussir : 

    • 26,1 milliards de dollars sur trois ans provenant du plan d’immobilisations afin d’appuyer environ 26 500 emplois directs et 12 000 emplois indirects chaque année jusqu’en 2027-2028.
    • 135 millions de dollars pour des programmes de métiers spécialisés, comme des initiatives d’apprentissages et d’éducation des adultes de sorte à aider les Albertains à acquérir les compétences et à suivre la formation nécessaires pour mener des carrières fructueuses, ainsi qu’à soutenir l’accès aux possibilités d’emploi.
    • 2 milliards de dollars en 2025-26 pour appuyer et élargir le système d’apprentissage et de garde des jeunes enfants afin que les parents et les gardiens tirent parti de possibilités de formation, d’éducation ou d’emploi.  

    Budget 2025 : Assurer la sécurité de nos frontières

    • Le gouvernement de l’Alberta est résolu à être un bon voisin et un bon partenaire commercial, ce qui implique la prise de mesures pour assurer la sécurité de la frontière entre l’Alberta et les États-Unis. Le budget de 2025 prévoit 29 millions de dollars en 2025-26 pour une nouvelle équipe de « patrouille d’interdiction » (Interdiction Patrol Team) qui fait partie des shérifs de l’Alberta et sera chargée de lutter contre le trafic de drogue et d’armes et la traite de personnes, d’appréhender les personnes qui tentent de traverser la frontière illégalement et de surveiller d’autres activités illégales le long de la frontière internationale de la province. Le budget de 2025 comprend en outre un investissement de 15 millions de dollars sur deux ans pour trois nouveaux postes d’inspection de véhicules près de la frontière des États-Unis.

    Budget 2025 : Investir dans l’enseignement postsecondaire

    Le budget de 2025 investit en tout 7,4 milliards de dollars dans l’enseignement postsecondaire, le budget d’exploitation étant de 6,6 milliards de dollars en 2025-2026. Cette somme comprend :

    • 78 millions de dollars par années sur trois ans pour créer un plus grand nombre de places dans les cours d’apprentissage de toute la province en vue de renforcer les métiers spécialisés et les formations en apprentissage qui répondront aux besoins de l’industrie, soutiendront l’économie et mettront les Albertains en rapport avec des emplois.
    • 113 millions de dollars pour contribuer à satisfaire à la demande croissante de bourses et appuyer la bourse aux étudiants de l’Alberta (Alberta Student Grant), dont 60 millions de dollars provenant de l’Alberta Heritage Scholarship Fund.
    • 4 millions de dollars pour la subvention aux collèges des Premières Nations (First Nations Colleges Grant), cette somme étant répartie également entre cinq collèges dans des communautés autochtones rurales et éloignées.

    « Notre gouvernement veille à ce que les étudiants en Alberta possèdent les compétences et la formation nécessaires pour répondre aux besoins actuels, tout en se préparant à l’économie future. Le budget de 2025 réalise des investissements fondamentaux de sorte à relever les défis posés par une population en pleine croissance, tout en appuyant un système d’éducation postsecondaire durable. »

    Rajan Sawhney, ministre de l’Enseignement postsecondaire

    Budget 2025 : Bâtir des communautés

    Les communautés dynamiques de notre province font de l’Alberta le meilleur endroit au Canada où vivre, travailler et élever une famille. Le budget de 2025 investit dans des communautés plus fortes partout en Alberta :

    • 17,2 millions de dollars pour augmenter de 50 % à 75 % les subventions accordées aux municipalités en remplacement d’impôts fonciers à l’égard des propriétés qui appartiennent au gouvernement. D’ici l’année prochaine, la province couvrira 100 $ du montant qui serait versé si la propriété était imposable.
    • 820 millions de dollars cette année et 2,5 milliards de dollars sur trois ans en dépenses en capital du cadre fiscal des administrations locales (Local Government Fiscal Framework) afin d’aider à financer les travaux d’infrastructures prioritaires.

    Budget 2025 : Soutenir le commerce et la diversification

    L’Alberta continue de favoriser la croissance économique et des politiques qui appuient la productivité. Par l’entremise du budget de 2025, le gouvernement de l’Alberta continuera de tirer parti des réussites actuelles en faisant ce qui suit :

    • Attirer plus d’investissements grâce à un faible taux d’imposition sur le revenu des sociétés. En Alberta, le taux de 8 % est de 30 % inférieur à celui de la province qui se classe deuxième.
    • Offrir de plus grands stimulants aux petites et moyennes entreprises qui augmentent leurs dépenses en recherche et développement, par l’entremise de la subvention pour l’emploi et l’innovation (Alberta’s Innovation Employment Grant).
    • Promouvoir l’Alberta en tant que partenaire fiable pour soutenir la sécurité énergétique nord-américaine et mondiale auprès des investisseurs. La province optimisera les infrastructures nouvelles et existantes afin d’accéder à de nouveaux marchés pour les ressources énergétiques et minérales de l’Alberta.
    • Soutenir les producteurs agricoles albertains et les transformateurs à valeur ajoutée de l’Alberta, s’attaquer aux obstacles au commerce en cultivant les marchés d’exportation et s’employer à améliorer l’accès au marché pour les produits de l’Alberta.
    • Renforcer la position de l’Alberta en tant que contributrice essentielle à la sécurité énergétique de l’Amérique du Nord en continuant de promouvoir notre secteur énergétique remarquable au Canada, aux États-Unis, en Allemagne, au Japon et dans le reste du monde.

    Budget 2025 : Investir dans les entreprises et les industries

    Le budget de 2025 continue de trouver des moyens de favoriser la croissance de l’économie albertaine en investissant dans les entreprises et les industries :

    • Soutien visant à attirer des investissements dans le secteur de l’énergie et des ressources minérales de sorte à accélérer les possibilités dans le domaine des ressources émergentes.
    • 45 millions de dollars sur trois ans pour le fonds d’investissement et de croissance (Investment and Growth Fund) en vue d’attirer des investissements dans l’économie albertaine.
    • 1,8 million de dollars versés à Western Crop Innovations au titre de la recherche de pointe sur les cultures.
    • 780 000 $ pour appuyer les petites et moyennes entreprises de transformation de viande.
    • 3,1 millions de dollars pour la Faculté de médecine vétérinaire de l’Université de Calgary en vue d’un agrandissement menant à un laboratoire de diagnostic vétérinaire complet. Les éleveurs de bétail et les vétérinaires auront alors accès à un diagnostic plus rapide, plus abordable et plus proche.

    « Le budget de 2025 bâtit une Alberta plus forte en développant les industries, en créant des emplois de haute qualité et en élargissant les possibilités offertes aux travailleurs et aux familles. Grâce à des investissements stratégiques en innovation, infrastructure et perfectionnement de la main-d’œuvre, l’Alberta relève le défi pour être plus forte pendant de nombreuses années à venir. »

    Matt Jones, ministre de l’Emploi, de l’Économie et du Commerce

    « Nous faisons progresser la recherche de point en agriculture et nous appuyons les petites et moyennes entreprises. De plus, nous renforçons notre infrastructure agricole pour offrir des services plus rapides et plus abordables aux éleveurs de bétail et aux vétérinaires. Nous soutenons l’innovation, nous attirons les investissements et nous bâtissons une économie résiliente pour l’avenir. »

    RJ Sigurdson, ministre de l’Agriculture et de l’Irrigation

    Le budget de 2025 relève le défi auquel fait face l’Alberta grâce à des investissements continus dans l’éducation et la santé, une baisse des impôts pour les familles et un accent sur l’économie.

    Renseignements connexes

    • Budget 2025

    Nouvelles connexes

    • Budget 2025: Meeting the challenge | Budget 2025 : Relever le défi (27 février 2025)
    • Budget 2025: Meeting the challenge in health and education | Budget 2025 :  Relever le défi dans la santé et l’éducation (27 février 2025)

    Multimédias

    • Regarder le discours du budget
    • Regarder la conférence de presse
    • Écouter la conférence de presse

    Translations

    • Arabic
    • Simplified Chinese
    • Traditional Chinese
    • Hindi
    • Korean
    • Persian
    • Punjabi
    • Somali
    • Spanish
    • Tagalog
    • Ukrainian
    • Urdu
    • Vietnamese

    MIL OSI Canada News –

  • MIL-OSI Australia: Australian Deputy PM: $1.1 billion for a safer, more efficient Western Freeway

    Source: Minister of Infrastructure

    The Albanese Labor Government is building Australia’s future, boosting our nation’s productivity and connecting our region’s communities by investing in our highway network. 

    We’re investing $1.1 billion to upgrade Victoria’s Western Freeway – the major highway connecting Melbourne to Adelaide, and our regions to both cities. 

    This brings our total investment in the Western Freeway corridor to $2.1 billion.

    Approximately 86,000 vehicles travel the Western Freeway stretch between Melton and Caroline Springs every single day, with this figure expected to rise to approximately 113,000 by 2031.

    It’s a critical transport route for passengers and freight, which links with major freight routes throughout the state including Midland, Sunraysia, Pyrenees, Henty and Wimmera Highways.

    The investment will go towards improving capacity and safety along the freeway between Melton and Caroline Springs, with upgrades to be identified and prioritised between the Australian and Victorian governments from the jointly funded business case being finalised by the Victorian Government. 

    $100 million will be allocated towards planning and early works to upgrade the intersection of the freeway with Brewery Tap Road in Warrenheip.

    In addition, we’re providing $6.1 million towards two bridge strengthening upgrades between Stawell and the South Australian border. 

    The Albanese and Allan Governments will undertake bridge strengthening works at the Dimboola Bridge over the Melbourne-Adelaide Railway Line and Dadswells Bridge over the Mt William Creek Floodplain, reducing transit times and providing better efficiency of freight movements between rural industries and manufacturers, while allowing for industry growth and regional development.

    Construction of these bridge upgrades is expected to commence in 2025 and end by 2026. 

    The Albanese Government remains dedicated to working for all Australians by delivering nationally significant infrastructure projects that enhance productivity and resilience, improve liveability, and promote sustainability.  

    Quotes attributable to Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King:

    “We’re investing in the transport projects that matter most to Victorians, delivering a rail link to Melbourne Airport, fixing our regional and suburban roads, and strengthening our busiest freeways. 

    “We’re investing $2.1 billion in the Western Freeway corridor, $7 billion in the Melbourne Airport rail link, and $1 billion in a suburban road blitz because we care about our cities, our suburbs and our regions. 

    “The Liberals and Nationals starved Victorians of infrastructure funding over their decade in government, and we won’t let that happen again.”

    Quotes attributable to Federal Member for Gorton Brendan O’Connor: 

    “Those who regularly travel on this stretch of the Western Freeway know full well how much this $1 billion investment is needed. 

    “The Liberals ignored this for nine years while the traffic got heavier and the road conditions worsened. 

    “Only Labor Governments invest in the west.”

    MIL OSI News –

  • MIL-OSI Australia: $1.1 billion for a safer, more efficient Western Freeway

    Source: Australian Ministers for Regional Development

    The Albanese Labor Government is building Australia’s future, boosting our nation’s productivity and connecting our region’s communities by investing in our highway network. 

    We’re investing $1.1 billion to upgrade Victoria’s Western Freeway – the major highway connecting Melbourne to Adelaide, and our regions to both cities. 

    This brings our total investment in the Western Freeway corridor to $2.1 billion.

    Approximately 86,000 vehicles travel the Western Freeway stretch between Melton and Caroline Springs every single day, with this figure expected to rise to approximately 113,000 by 2031.

    It’s a critical transport route for passengers and freight, which links with major freight routes throughout the state including Midland, Sunraysia, Pyrenees, Henty and Wimmera Highways.

    The investment will go towards improving capacity and safety along the freeway between Melton and Caroline Springs, with upgrades to be identified and prioritised between the Australian and Victorian governments from the jointly funded business case being finalised by the Victorian Government. 

    $100 million will be allocated towards planning and early works to upgrade the intersection of the freeway with Brewery Tap Road in Warrenheip.

    In addition, we’re providing $6.1 million towards two bridge strengthening upgrades between Stawell and the South Australian border. 

    The Albanese and Allan Governments will undertake bridge strengthening works at the Dimboola Bridge over the Melbourne-Adelaide Railway Line and Dadswells Bridge over the Mt William Creek Floodplain, reducing transit times and providing better efficiency of freight movements between rural industries and manufacturers, while allowing for industry growth and regional development.

    Construction of these bridge upgrades is expected to commence in 2025 and end by 2026. 

    The Albanese Government remains dedicated to working for all Australians by delivering nationally significant infrastructure projects that enhance productivity and resilience, improve liveability, and promote sustainability.  

    Quotes attributable to Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King:

    “We’re investing in the transport projects that matter most to Victorians, delivering a rail link to Melbourne Airport, fixing our regional and suburban roads, and strengthening our busiest freeways. 

    “We’re investing $2.1 billion in the Western Freeway corridor, $7 billion in the Melbourne Airport rail link, and $1 billion in a suburban road blitz because we care about our cities, our suburbs and our regions. 

    “The Liberals and Nationals starved Victorians of infrastructure funding over their decade in government, and we won’t let that happen again.”

    Quotes attributable to Federal Member for Gorton Brendan O’Connor: 

    “Those who regularly travel on this stretch of the Western Freeway know full well how much this $1 billion investment is needed. 

    “The Liberals ignored this for nine years while the traffic got heavier and the road conditions worsened. 

    “Only Labor Governments invest in the west.”

    MIL OSI News –

  • MIL-OSI Australia: New investment in toy libraries to support children with disability

    Source: Ministers for Social Services

    The Albanese Government has reinforced its commitment to building a better future for children with disability or development delay by investing another $600,000 in toy libraries.

    Toy libraries offer families and carers an affordable way to borrow toys, puzzles and games that support children’s early learning and development through play.

    With this additional funding, our investment in Toy Libraries Australia now totals $2.3 million, supporting more than 280 toy libraries across the country.

    Today’s announcement will enable 30 toy libraries to extend their opening hours and offer low-sensory borrowing sessions. It will help some toy libraries hold specialised play sessions, train volunteers and buy specific toys, to better include families. A new specialist mobile service will also be set up to support toy libraries across Western Australia.

    Minister for Social Services, Amanda Rishworth visited Unley Toy Libraries in Adelaide, South Australia today, which has a huge range of toys for children with disability.

    “This continued investment reinforces the Albanese Labor Government’s commitment to the early years and supporting Australian children with disability or development delay and their families,” Minister Rishworth said.

    “We know that all children learn through play, and toy libraries really help parents and carers to nurture children’s early development with tools and activities they may not otherwise have access to.

    “Children with disability or developmental delay and their families deserve to have cost-effective and accessible specialist sensory, fine motor and gross motor skill toys for play. This funding will ensure that toy libraries are more accessible across the country and properly equipped for all children.

    “We are proud to support organisations like Toy Libraries Australia, that empower and embrace children with disability to enrich their learning to achieve their full potential.” 

    Toy Libraries Australia CEO, Debbie Williams welcomed the additional Australian Government funding.

    “Families tell us that children with disability need additional support to access a toy library,” Ms Williams said.

    “That could be more space to move around, less sensory stimulus, or one-on-one time with the toy librarian. Additional sessions will allow toy libraries to meet these diverse needs and provide an inclusive and accessible service for all.”

    More than 50,000 families and 80,000 children access toy libraries every year. Memberships are usually as low as $2 a week.

    The facilities mean many families don’t have to buy large ranges of expensive toys for their children.

    The funding is delivering on an election commitment and supports families and children, and their development. It is in line with the Government’s commitment to the Early Years.

    More information on toy libraries is available at the Toy Libraries Australia website.

    MIL OSI News –

  • MIL-OSI USA: Armstrong releases statement on President Trump’s address to joint session of Congress

    Source: US State of North Dakota

    Gov. Kelly Armstrong released the following statement after President Donald Trump’s address tonight to a joint session of Congress.

    “President Trump outlined the significant progress our nation has made during his six short weeks in office to secure our borders, unleash U.S. energy and manufacturing, project strength on the international stage and bring common sense back to America,” Armstrong said. “Illegal immigration is down, investment in U.S. manufacturing is up, and North Dakota is among the states that stand to benefit most from the president’s focus on American innovation, common-sense regulations and government efficiency.”

    MIL OSI USA News –

  • MIL-OSI Security: Clairton Resident Sentenced for Escape from Residential Reentry Center

    Source: Office of United States Attorneys

    PITTSBURGH, Pa. – A former resident of Clairton, Pennsylvania, has been sentenced in federal court to time served of approximately seven months on his conviction of escape, Acting United States Attorney Troy Rivetti announced today.

    United States District Judge Cathy Bissoon imposed the sentence on Jamiel Green, 28.

    According to information presented to the Court, while serving the last portion of a 37-month term of imprisonment for his conviction for possessing a firearm as a convicted felon, Green was housed at a residential reentry center designed to assist defendants in their transitions back into society. In early November 2023, the center provided Green with a work release pass, but Green failed to return to the center when required, remaining a fugitive for several months until he was arrested by the U.S. Marshals Service.

    Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.

    Acting United States Attorney Rivetti commended the U.S. Marshals Service for the investigation leading to the successful prosecution of Green.

    MIL Security OSI –

  • MIL-OSI USA: NEWS: Sanders, Scott, Schumer, Jeffries, Murray, Bipartisan Colleagues Introduce Legislation to Protect the Rights of American Workers

    US Senate News:

    Source: United States Senator for Vermont – Bernie Sanders

    WASHINGTON, March 5 – Sen. Bernie Sanders (I-Vt.), Ranking Member of the Senate Committee on Health, Education, Labor, and Pensions (HELP), and Rep. Bobby Scott (D-Va.), Ranking Member of the House Committee on Education and Workforce, alongside Senate Minority Leader Chuck Schumer (D-N.Y.), House Minority Leader Hakeem Jeffries (D-N.Y.), House Democratic Whip Katherine Clark (D-Mass.), Sen. Patty Murray (D-Wash.) and Congressional and labor leaders, today reintroduced the Richard L. Trumka Protecting the Right to Organize Act (PRO Act), comprehensive labor legislation to protect the rights of workers to stand together and bargain for fairer wages, better benefits and safer workplaces. The legislation was renamed in honor of former AFL-CIO President Richard L. Trumka.

    Joining Sanders, Scott, Schumer, Jeffries and Murray on the PRO Act are Sens. Angela Alsobrooks (D-Md.), Tammy Baldwin (D-Wis.), Michael Bennet (D-Colo.), Richard Blumenthal (D-Conn.), Lisa Blunt Rochester (D-Del.), Cory Booker (D-N.J.), Maria Cantwell (D-Wash.), Chris Coons (D-Del.), Catherine Cortez Masto (D-Nev.), Tammy Duckworth (D-Ill.), Richard Durbin (D-Ill.), John Fetterman (D-Pa.), Ruben Gallego (D-Ariz.), Kirsten Gillibrand (D-N.Y.), Maggie Hassan (D-N.H.), Martin Heinrich (D-N.M.), John Hickenlooper (D-Colo.), Mazie Hirono (D-Hawaii), Tim Kaine (D-Va.), Mark Kelly (D-Ariz.), Andy Kim (D-N.J.), Angus King (I-Maine), Amy Klobuchar (D-Minn.), Ben Ray Luján (D-N.M.), Ed Markey (D-Mass.), Jeff Merkley (D-Ore.), Chris Murphy (D-Conn.), Jon Ossoff (D-Ga.), Alex Padilla (D-Calif.), Gary Peters (D-Mich.), Jack Reed (D-R.I.), Jacky Rosen (D-Nev.), Brian Schatz (D-Hawaii), Adam Schiff (D-Calif.), Jeanne Shaheen (D-N.H.), Elissa Slotkin (D-Mich.), Tina Smith (D-Minn.), Chris Van Hollen (D-Md.), Raphael Warnock (D-Ga.), Elizabeth Warren (D-Mass.), Peter Welch (D-Vt.), Sheldon Whitehouse (D-R.I.) and Ron Wyden (D-Ore.), as well as 210 cosponsors in the House.

    “Never before in the history of our nation have income and wealth inequality been greater than today. Workers are falling further and further behind. In response, millions of Americans have expressed their desire to join a union,” said Sanders. “However, the billionaire class is fighting with all its might to put down attempts by workers to exercise their constitutional right to unionize. That includes the decision by President Trump to illegally fire National Labor Relations Board Member Gwynne Wilcox and effectively shut down the NLRB. Without a functioning NLRB, corporate bosses can illegally fire unionizing workers, flagrantly violate labor laws and render free and fair union elections near impossible. Supporting the immediate reinstatement of Member Wilcox and the swift passage of the PRO Act would be major steps toward building real worker power. The PRO Act is long overdue and I am proud to be introducing this bill in the Senate.”

    “Unions are essential for building a strong middle class and improving the lives of workers and families. Regrettably, for too long, workers have suffered from anti-union attacks and toothless labor laws that undermined their right to form a union,” said Scott. “As union approval remains at record highs, Congress has an urgent responsibility to ensure that workers can join a union and negotiate for higher pay, better benefits, and safer workplaces. The PRO Act is the most critical step Congress can take to uplift American workers. I urge my House and Senate colleagues on both sides of the aisle to join me in advancing the most significant update for workers’ labor organizing rights in over eighty years.”

    “As we speak Donald Trump and his billionaire buddies are stealing the American dream away from working families, rigging every lever of society in favor of the billionaire class,” said Schumer. “That’s why we need the PRO Act, to empower hardworking Americans to bargain for better wages, benefits, and safer working conditions. I’ve been involved in this fight for a very, very long time, and I will stay in this fight for as long as it takes – until every worker gets the wage they deserve, until the right to organize is protected and encouraged and secure, and until we finally make the PRO Act the law of the land.”

    “Right now, Donald Trump and Elon Musk are attacking workers, including mass firing people by the tens of thousands, left and right, regardless of how important that work is,” said Murray. “Reintroducing the PRO Act is more important now than ever. This is about making sure we are not just pushing back—but also pushing forward: charting a positive vision for workers and daring Republicans to make their actions match their words. Who do you stand with—the billionaires like Elon Musk and Donald Trump—whose favorite two words are ‘you’re fired?’ Or do you stand with hard working American women and men. People who just want fair pay, decent treatment, and a government that works to make their lives better, not worse? That should not be too much to ask! I’m going to keep fighting, come hell or high water, to make it easier for workers to join together and fight for the better pay and working conditions they deserve.”

    “When our unions are strong, the United States of America is strong,” said Jeffries. “While Republicans are focused on giving handouts to their billionaire donors, Democrats will continue to fight to make sure that every American worker can organize and thrive and fight for better wages, better pay, better safety conditions and better benefits. Thanks to the leadership of Ranking Member Bobby Scott, that is exactly what the PRO Act does and we will not rest until we get this legislation across the finish line.”

    “Billionaires know there’s no greater threat to their power than a union card,” said Clark. “That’s why they’re using miles of red tape to deny the American people their basic, constitutional right to organize. We can cut that red tape for good. The PRO Act is yet another chance for Republicans to show where they stand: with working people or their billionaire donors.”

    “The PRO Act will safeguard the fundamental right of American workers to collectively bargain and organize and will ensure workers receive fair treatment while holding their employers to just standards,” said Rep. Brian Fitzpatrick (R-Pa.). “I am proud to lead this bipartisan effort to strengthen the right of our nation’s hardest-working men and women to organize and negotiate for better wages, benefits, and conditions. A strong workforce is the foundation of a strong nation, and I look forward to working with my colleagues on both sides of the aisle to see this vital legislation through.”

    “Americans believe in the power of unions and tens of millions of working people would become union members tomorrow if they could. But American labor law is broken, weighted on the side of the bosses and against the workers. In too many workplaces, in too many industries across the country, big corporations and billionaire CEOs still retaliate against us for organizing. They refuse to negotiate our contracts, force us to sit through hours of anti-union propaganda, and engage in illegal union-busting every day. Now they have an unelected, unaccountable, union-buster trying to illegally fire tens of thousands of our fellow workers in federal jobs and an administration rolling back the workplace protections. The PRO Act is long overdue, and the American people agree. We urge elected leaders of both parties to move this critical legislation forward so that all workers have the chance to stand together and build better lives for themselves and their families,” said AFL-CIO President Liz Shuler.

    Large corporations and the wealthy continue to capture the rewards of a growing economy while working families and middle-class Americans are left behind. From 1979 to 2023, annual wages for the bottom 90% of households increased just 44 percent, while average incomes for the wealthiest 1% increased more than 180 percent.

    Unions are critical to increasing wages and creating a strong economy that rewards hardworking people. Through the power of collective bargaining, the typical union worker earns 16 percent more than the typical non-union worker.

    The American people’s support for unions is surging. According to a 2024 Gallup poll, 70 percent of Americans approve of labor unions — remaining at near record highs. Despite growing support for unions, billionaire- and special interest-funded attacks on the rights of workers, unions and labor laws have eroded union density and made it harder for workers to organize. The share of American workers who are union members has fallen from roughly one in three workers in 1956 to a new low of 9.9 percent in 2024. The PRO Act restores fairness to the economy by strengthening the federal law that protects the right of workers to join a union and bargain for higher pay, better benefits and safer workplaces.

    The PRO Act would protect the right to organize and collectively bargain by:

    • Bolstering remedies and punishing violations of the rights of workers through authorizing meaningful penalties for employers that violate their rights, strengthening support for workers who suffer retaliation for exercising their rights and authorizing a private right of action for violation of the rights of workers.
    • Strengthening the rights of workers to join together and negotiate for better working conditions by enhancing their right to support secondary boycotts, ensuring unions can collect “fair share” fees, modernizing the union election process and facilitating initial collective bargaining agreements.
    • Restoring fairness to an economy rigged against workers by closing loopholes that allow employers to misclassify their employees as supervisors and independent contractors and increasing transparency in labor-management relations.

    More than 18 organizations endorsed the PRO Act, including the AFL-CIO, Service Employees International Union (SEIU), United Autoworkers (UAW), United Steelworkers (USW), Communications Workers of America (CWA), National Nurses United (NNU), International Alliance of Theatrical Stage Employees (IATSE), Department for Professional Employees, AFL-CIO (DPE), National Postal Mail Handlers Union (NPMHU), American Federation of Teachers (AFT), International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART), the American Federation of Musicians, International Association of Machinists and Aerospace Workers (IAM), International Union of Bricklayers and Allied Craftworkers, Laborers’ International Union of North America (LiUNA), Transport Workers Union (TWU), International Brotherhood of Electrical Workers (IBEW) and the International Union of Painters and Allied Trades (IUPAT).

    Read the bill text here.

    Read a fact sheet here.

    Read a section-by-section summary here.

    MIL OSI USA News –

  • MIL-OSI United Nations: Funding cuts jeopardize global fight against tuberculosis, WHO warns

    Source: United Nations 2

    Health

    The UN World Health Organization (WHO) warned on Wednesday that severe funding cuts – particularly in the United States – are threatening decades of progress in the fight against tuberculosis (TB), still the world’s deadliest infectious disease.

    The health agency highlighted that essential prevention, testing and treatment services are collapsing, leaving millions at risk.

    The hardest-hit regions include Africa, Southeast Asia, and the Western Pacific, where national TB programmes depend heavily on international support.

    “Any disruption to TB services – whether financial, political or operational – can have devastating and often fatal consequences for millions worldwide,” said Tereza Kasaeva, Director of WHO Global Programme on TB and Lung Health.

    Last week, UN Secretary-General António Guterres also raised the alarm over funding cuts, noting the immediate impact on key health programmes combatting HIV/AIDS, tuberculosis, malaria and cholera.

    A devastating setback

    Over the past two decades, global TB programmes have saved more than 79 million lives, averting approximately 3.65 million deaths last year alone.

    A significant portion of this success has been driven by US Government funding, which has provided about $200 to $250 million annually – approximately a quarter of the total international donor funding secured.  

    The US has been the largest bilateral donor for programmes combatting the disease.

    However, newly announced cuts for 2025 through executive orders will have devastating impacts on TB response efforts in at least 18 high-burden countries, where 89 per cent of expected US funding was allocated for patient care.

    The impact will be particularly devastating in Africa, where treatment disruptions and staff layoffs could exponentially increase TB transmission rates.

    Immense burden

    Early reports from TB-affected countries indicate that funding constraints are already dismantling essential health services.

    Among the most pressing concerns are health worker layoffs, drug shortages and supply chain breakdowns, data and surveillance systems are collapse, and disruptions to TB research and funding.

    “Without immediate action, hard-won progress in the fight against TB is at risk. Our collective response must be swift, strategic and fully resourced to protect the most vulnerable and maintain momentum toward ending TB,” urged Dr. Kasaeva.

    Call for urgent action

    WHO reaffirmed its commitment to supporting governments and global partners in the fight against TB.

    “In these challenging times, WHO remains steadfast in its commitment to supporting national governments, civil society and global partners in securing sustained funding and integrated solutions to safeguard the health and well-being of those most vulnerable to TB,” the agency said.

    MIL OSI United Nations News –

  • MIL-OSI Canada: Alberta pushes back on illegal U.S. tariffs

    As part of its non-tariff retaliatory measures, Alberta is altering its procurement practices to ensure Alberta’s government, as well as agencies, school boards, Crown corporations and Alberta municipalities, purchase their goods and services from Alberta companies, Canadian companies or countries with which Canada has a free trade agreement that is being honoured.  

    “I will always put the best interests of Alberta and Albertans first. These non-tariff actions are measured, proportionate and put an emphasis on defending Alberta and Canada against these economically destructive tariffs imposed by U.S. President Donald Trump, while breaking down restrictive provincial trade barriers so we can fast-track nation building resource projects and allow for the unrestricted movement of goods, services and labour across the country. I understand this is an uncertain time for many Albertans, and our government will continue to do all it can to prioritize Alberta’s and Canada’s world-class products and businesses as we face this challenge together. I also look forward to working with my provincial counterparts to help unite Canada and ensure free and fair trade throughout our country.” 

    Danielle Smith, Premier

    Alberta’s government has also directed Alberta Gaming, Liquor and Cannabis to suspend the purchase of U.S. alcohol and video lottery terminals (VLTs) from American companies until further notice. This will ensure Alberta and Canadian brands take priority in restaurants, bars and on retail shelves.

    “We are committed to putting Canadian businesses first. By suspending the purchase of U.S. produced alcohol, slot machines and VLTs, we are ensuring that Alberta and Canadian brands take priority in our restaurants, bars and retail stores. We will continue to take bold steps to support local industries and strengthen our economy.”

    Dale Nally, Minister of Service Alberta and Red Tape Reduction

    To encourage the purchase of stock from vendors in Alberta, Canada and other countries with which Canada has a free trade agreement, the government will help all Alberta grocers and other retailers with labelling Canadian products in their stores. In the coming weeks, Alberta’s government will augment these efforts by launching a “Buy Alberta” marketing campaign. Spearheaded by Minister of Agriculture and Irrigation RJ Sigurdson, this campaign will remind Albertans of their options for local food and the importance of supporting Alberta’s agriculture producers and processers.

    “Alberta’s agriculture producers and processers are the best in the world. Although these U.S. tariffs are incredibly concerning, this “Buy Alberta” campaign will put a spotlight on Alberta’s farmers, ranchers and agri-food businesses and support Albertans in choosing goods from right here at home.”

    RJ Sigurdson, Minister of Agriculture and Irrigation

    Building on Alberta’s reputation as a leader in removing barriers to trade within Canada, Alberta’s government will continue to push other provinces to match our ambition in providing full labour mobility and eliminating trade barriers through work like mutual recognition of regulations. This will allow for goods, services and labour from other provinces to flow into and out of Alberta without having to undergo additional regulatory assessments.

    “While no one wins in a tariff war, this situation underscores the need to develop Canada’s trade infrastructure and the diversification of our trading partners and could be the catalyst to unlocking Canada’s true potential. As we look at how best to support Albertans and our businesses, we must also work to reduce internal trade and labour mobility barriers while expanding markets for Alberta energy, agricultural and manufactured products into Europe, Asia, the Americas and beyond. Albertans and Canadians are counting on us.”

    Matt Jones, Minister of Jobs, Economy and Trade

    Alberta’s government is also focused on doubling oil production. With U.S. tariffs in place on Canadian energy products, Alberta is looking elsewhere for additional pipeline infrastructure, including east and west, in order to get our products to new markets.

    Alberta’s government will continue to engage with elected officials and industry leaders in the U.S. to reverse these tariffs on Canadian goods and energy and rebuild Canada’s relationship with its largest trading partner and ally.   

    Quick facts

    • On March 4, U.S. President Trump implemented a 25 per cent tariff on all Canadian goods and a 10 per cent tariff on Canadian energy.
    • The U.S. is Alberta’s – and Canada’s – largest trading partner. 
    • Alberta is the second largest provincial exporter to the U.S. after Ontario.
      • In 2024, Alberta’s exports to the U.S. totalled C$162.6 billion, accounting for 88.7 per cent of total provincial exports.
      • Energy products accounted for approximately C$132.8 billion or 82.2 per cent of Alberta’s exports to the U.S. in 2024.
    • About 10 per cent of liquor products in stock in Alberta are imported from the United States.
      • U.S. products represent a small minority of the beer and refreshment beverage categories; however, a significant number of wines originate in the U.S.
      • In 2023-24, about $292 million in U.S. liquor products were sold in Alberta.
    • Alberta has been a longstanding supporter of reducing barriers to trade within Canada. In 2019, the province removed 21 of 27 exceptions, including all procurement exceptions, and narrowed the scope of two others. Since then, the province has only added 2 exceptions, which allow for the management the legalization of cannabis.
      • Removing party-specific exemptions has helped facilitate even greater access to the Alberta market for Canadian companies in the areas of government tenders, Crown land acquisition, liquor, energy and forest products, among others.

    Related information

    • Premier Smith’s speaking notes
    • Response to U.S. tariffs: Premier Smith

    MIL OSI Canada News –

  • MIL-OSI New Zealand: ‘Need not race’ approach to bowel cancer screening will save lives

    Source: ACT Party

    “The move to reduce the eligibility age for free bowel cancer screening to 58 is ‘need, not race’ in action, and will save lives,” says ACT Leader David Seymour.

    “ACT campaigned against targeting services based on race, because this practice was unfair, inefficient, and led to perverse outcomes.

    “Bowel cancer screening was a classic example. In 2022, Labour set a lower eligibility age for Māori/Pacific people accessing the National Bowel Screening Programme.

    “However, bowel cancer does not discriminate on race. Māori and Pacific peoples have a similar risk of developing bowel cancer compared to other population groups at a given age.

    “It was true that a higher proportion of bowel cancers occur in Māori and Pacific peoples at a younger age, but that is because the overall demographics of those groups are younger. It has always been age that determines bowel cancer risk, not race.

    “Today, the Government has repurposed Labour’s funding to deliver an eligibility age of 58 for all population groups, down from the previous default of 60.

    “This is ‘need, not race’ in action. ACT campaigned on it, we secured it in our coalition agreement, the Minister of Health pushed officials, and the result was (after having to go overseas for the advice) that we can have good things and deliver wider health benefits to all New Zealanders.

    “It shows, when you use real science and real statistics you don’t have to be racist. The previous government got the science and statistics wrong, and practiced racism. We abhor racial discrimination and we’re proud to be part of seeing the back of it.”

    MIL OSI New Zealand News –

  • MIL-OSI USA: ICE removes human rights violator, sex offender to Rwanda

    Source: US Immigration and Customs Enforcement

    WASHINGTON – U.S. Immigration and Customs Enforcement successfully removed Napolean Ahmed Mbonyunkiza, a 56-year-old Rwandan convicted sex offender and human rights violator, to his home country, March 4.

    Ahmed Mbonyunkiza was charged in 2010 with sexual abuse in the third degree, neglect of a dependent person, and dependent adult abuse in the United States. He was released on bond but fled prior to the completion of his criminal court proceedings.

    ICE paroled Ahmed Mbonyunkiza into the U.S. in 2013 to face justice for his crimes. ICE’s Human Rights Violators and War Crimes Center uncovered during the investigation his ties to the Mouvement Republicain National pour la Democratie et le Developpement, a political party affiliated with the notorious Interahamwe militia which played a significant role in the Rwandan genocide.

    Ahmed Mbonyunkiza pled guilty in 2014 to all charges and was sentenced to a maximum of 30 years in prison. He ultimately served 10 years before being taken into ICE custody in January 2024, at which time he was placed into removal proceedings.

    An immigration judge from the Justice Department’s Executive Office for Immigration Review ordered his removal to Rwanda on April 15, 2024. ICE successfully executed the removal, turning the criminal alien over to Rwandan authorities without incident.

    The Human Rights Violators and War Crimes Center is led by ICE and leverages the expertise of criminal investigators, attorneys, historians, intelligence analysts and federal partners to provide a whole of government approach to prevent the U.S. from becoming a safe haven for individuals who commit war crimes, genocide, torture and other human rights abuses around the globe. Currently, ICE has more than 180 active investigations into suspected human rights violators and is pursuing more than 1,945 leads and removals cases involving suspected human rights violators from 95 different countries. The center has issued more than 79,000 lookouts since 2003, for potential perpetrators of human rights abuses and stopped over 390 human rights violators and war crimes suspects from entering the U.S.

    Individuals can report suspicious criminal activity to the ICE Tip Line 24 hours a day, seven days a week by dialing 866-DHS-2-ICE or (866-347-2423) or completing the online tip form. Highly trained specialists take reports from both the public and law enforcement agencies on more than 400 laws enforced by ICE.

    Learn more about ICE mission to remove human rights violators from your community on X @ICEgov.

    MIL OSI USA News –

  • MIL-OSI: Alto Ingredients, Inc. Reports Fourth Quarter and Year-end 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    – Implemented Cost Savings Expected to Yield Approximately $8 Million Annually –
    – Integrated Accretive Acquisition of a Beverage-grade Liquid CO2Processor –
    – Considering Asset Sales, a Merger or Other Strategic Transactions –

    PEKIN, Ill., March 05, 2025 (GLOBE NEWSWIRE) — Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients, reported its financial results for the quarter and year ended December 31, 2024.

    Bryon McGregor, President and Chief Executive Officer of Alto Ingredients said, “During the fourth quarter of 2024 and the first quarter of 2025, we implemented cost saving initiatives, including cold idling our Magic Valley plant, and lowering total company headcount by 16%. We expect these staffing reductions to save approximately $8 million annually beginning in the second quarter of 2025. While ensuring high customer service, we rightsized the company to our smaller organizational footprint to position for long-term sustainable growth.

    “On January 1st, we acquired a beverage-grade liquid carbon dioxide processor adjacent to our Columbia site. Bolstering economics and increasing asset valuation, this immediately accretive transaction has a compelling payback of less than two years as well as opportunities for cost synergies and expanded production. At our Pekin Campus, we continue to diligently pursue opportunities to optimize carbon, which has been historically underutilized and undervalued. Lastly, with the assistance of our financial and legal advisors, we are considering a broad range of options, including asset sales, a merger or other strategic transactions to better align the long-term value potential of the company.”

    Chief Financial Officer Rob Olander added, “Our restructuring has improved Alto’s financial position going forward. In doing so, during the fourth quarter of 2024, we recognized over $30 million in asset impairments and prior acquisition-related expenses, which reset our base. Combining our reduced expense run rate with our improved performance at the Pekin wet mill, our synergistic acquisition of premium liquid CO2 processing and our entry into the European market, we are optimistic about 2025.”

    Financial Results for the Three Months Ended December 31, 2024 Compared to 2023

    • Net sales were $236.3 million, compared to $273.6 million.
    • Cost of goods sold was $237.7 million, compared to $276.2 million.
    • Gross loss was $1.4 million, including $3.5 million in realized losses on derivatives, compared to a gross loss of $2.5 million, including $2.3 million in realized losses on derivatives.
    • Selling, general and administrative expenses were $7.4 million, compared to $7.8 million.
    • Expenses related to the Eagle Alcohol acquisition were $5.7 million, compared to $0.7 million.
    • Asset impairments were $24.8 million comprised of $21.4 million related to Magic Valley and $3.4 million related to Eagle Alcohol, compared to $6.0 million related to Eagle Alcohol.
    • Net loss attributable to common stockholders was $42.0 million, or $0.57 per share, compared to $19.3 million, or $0.26 per share.
    • Adjusted EBITDA was negative $7.7 million, including $3.5 million in realized losses on derivatives, compared to positive $3.5 million, including $2.3 million in realized losses on derivatives.

    Cash and cash equivalents were $35.5 million at December 31, 2024, compared to $30.0 million at December 31, 2023. At December 31, 2024, the company’s borrowing availability was $88.1 million including $23.1 million under the company’s operating line of credit and $65.0 million under its term loan facility, subject to certain conditions.

    Financial Results for the Twelve Months Ended December 31, 2024 Compared to 2023

    • Net sales were $965.3 million, compared to $1,222.9 million.
    • Net loss attributable to common stockholders was $60.3 million, including $32.5 million in expenses related to asset impairments and the company’s Eagle Alcohol acquisition, or $0.82 per share. This compares to $29.3 million, including $6.5 million in net expenses related to asset impairments, the company’s Eagle Alcohol acquisition and a USDA cash grant, or $0.40 per share.
    • Adjusted EBITDA was negative $8.5 million, including $2.5 million in realized losses on derivatives and $5.4 million in costs related to the biennial outage in the second quarter, compared to positive $20.8 million, including $1.6 million in realized gains on derivatives.

    Fourth Quarter 2024 Results Conference Call
    Management will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on Wednesday, March 5, 2025, and will deliver prepared remarks via webcast followed by a question-and-answer session.

    The webcast for the conference call can be accessed from Alto Ingredients’ website at www.altoingredients.com. Alternatively, to receive a number and unique PIN by email, register here. To dial directly up to twenty minutes prior to the scheduled call time, please dial (833) 630-0017 domestically and (412) 317-1806 internationally. The webcast will be archived for replay on the Alto Ingredients website for one year. In addition, a telephonic replay will be available at 8:00 p.m. Eastern Time on Wednesday, March 5, 2025, through 8:00 p.m. Eastern Time on Wednesday, March 12, 2025. To access the replay, please dial (877) 344-7529. International callers should dial 00-1 412-317-0088. The pass code will be 5306551.

    Use of Non-GAAP Measures
    Management believes that certain financial measures not in accordance with generally accepted accounting principles (“GAAP”) are useful measures of operations. The company defines Adjusted EBITDA as unaudited consolidated net income (loss) before interest expense, interest income, provision for income taxes, asset impairments, unrealized derivative gains and losses, acquisition-related expense and depreciation and amortization expense. A table is provided at the end of this release that provides a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss). Management provides this non-GAAP measure so that investors will have the same financial information that management uses, which may assist investors in properly assessing the company’s performance on a period-over-period basis. Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of the company’s results as reported under GAAP.

    About Alto Ingredients, Inc.
    Alto Ingredients, Inc. (NASDAQ: ALTO) is a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients. Leveraging the unique qualities of its facilities, the company serves customers in a wide range of consumer and commercial products in the Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels markets. For more information, please visit www.altoingredients.com.

    Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
    Statements and information contained in this communication that refer to or include Alto Ingredients’ estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients’ current perspective of existing trends and information as of the date of the communication. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning Alto Ingredients’ projected outlook and future performance, including the timing and effects of its cost savings initiatives and its acquisition of a liquid carbon dioxide processor adjacent to its Columbia plant; Alto Ingredients’ capital projects, including its carbon capture and storage (CCS) project and opportunities to optimize carbon; and Alto Ingredients’ other plans, objectives, expectations and intentions. It is important to note that Alto Ingredients’ plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business and plans. These factors include, among others adverse economic and market conditions, including for renewable fuels, specialty alcohols and essential ingredients; export conditions and international demand for the company’s products; fluctuations in the price of and demand for oil and gasoline; raw material costs, including production input costs, such as corn and natural gas; adverse impacts of inflation and supply chain constraints; and the cost, ability to fund, timing and effects of, including the financial and other results deriving from, Alto Ingredients’ repair and maintenance programs, plant improvements and other capital projects, including CCS, and other business initiatives and strategies. These factors also include, among others, the inherent uncertainty associated with financial and other projections and large-scale capital projects, including CCS; the anticipated size of the markets and continued demand for Alto Ingredients’ products; the impact of competitive products and pricing; the risks and uncertainties normally incident to the alcohol production, marketing and distribution industries; changes in generally accepted accounting principles; successful compliance with governmental regulations applicable to Alto Ingredients’ facilities, products and/or businesses; changes in laws, regulations and governmental policies, including with respect to the Inflation Reduction Act’s tax and other benefits Alto Ingredients expects to derive from CCS; the loss of key senior management or staff; and other events, factors and risks previously and from time to time disclosed in Alto Ingredients’ filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Alto Ingredients’ Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 8, 2024.

    Company IR and Media Contact:
    Michael Kramer, Alto Ingredients, Inc., 916-403-2755
    Investorrelations@altoingredients.com

    IR Agency Contact:
    Kirsten Chapman, Alliance Advisors Investor Relations, 415-433-3777
    altoinvestor@allianceadvisors.com

    ALTO INGREDIENTS, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (unaudited, in thousands, except per share data)
         
      Three Months Ended
    December 31,    		   Years Ended
    December 31,
       2024     2023     2024     2023 
             
    Net sales $ 236,347     $ 273,625     $ 965,258     $ 1,222,940  
    Cost of goods sold   237,738       276,150       955,536       1,207,287  
    Gross profit (loss)   (1,391 )     (2,525 )     9,722       15,653  
    Selling, general and administrative expenses   (7,358 )     (7,823 )     (29,736 )     (29,864 )
    Acquisition-related expenses   (5,676 )     (700 )     (7,701 )     (2,800 )
    Gain (loss) on sale of assets   —       (153 )     830       (293 )
    Asset impairments   (24,790 )     (5,970 )     (24,790 )     (6,544 )
    Loss from operations   (39,215 )     (17,171 )     (51,675 )     (23,848 )
    Interest expense, net   (2,474 )     (2,126 )     (7,644 )     (7,425 )
    Income from cash grant   —       —       —       2,812  
    Other income, net   150       449       508       553  
    Loss before provision for income taxes   (41,539 )     (18,848 )     (58,811 )     (27,908 )
    Provision for income taxes   173       97       173       97  
    Net loss $ (41,712 )   $ (18,945 )   $ (58,984 )   $ (28,005 )
    Preferred stock dividends $ (319 )   $ (319 )   $ (1,269 )   $ (1,265 )
    Net loss attributable to common stockholders $ (42,031 )   $ (19,264 )   $ (60,253 )   $ (29,270 )
    Net loss per share, basic and diluted $ (0.57 )   $ (0.26 )   $ (0.82 )   $ (0.40 )
    Weighted-average shares outstanding, basic and diluted   73,835       72,969       73,482       73,339  
                                   
    ALTO INGREDIENTS, INC.
    CONSOLIDATED BALANCE SHEETS
    (unaudited, in thousands, except par value)
     
    ASSETS December 31,
    2024    		   December 31,
    2023
    Current Assets:    
    Cash and cash equivalents $ 35,469   $ 30,014
    Restricted cash   742     15,466
    Accounts receivable, net   58,217     58,729
    Inventories   49,914     52,611
    Derivative instruments   3,313     2,412
    Other current assets   5,463     9,538
    Total current assets   153,118     168,770
    Property and equipment, net   214,742     248,748
    Other Assets:      
    Right of use operating lease assets, net   20,553     22,597
    Intangible assets, net   4,509     8,498
    Other assets   8,516     5,628
    Total other assets   33,578     36,723
    Total Assets $ 401,438   $ 454,241
    ALTO INGREDIENTS, INC.
    CONSOLIDATED BALANCE SHEETS (CONTINUED)
    (unaudited, in thousands, except par value)
     
    LIABILITIES AND STOCKHOLDERS’ EQUITY December 31,
    2024    		   December 31,
    2023
    Current Liabilities:    
    Accounts payable $ 20,369     $ 20,752  
    Accrued liabilities   24,214       20,205  
    Current portion – operating leases   4,851       4,333  
    Derivative instruments   1,177       13,849  
    Other current liabilities   7,193       6,149  
    Total current liabilities   57,804       65,288  
                   
    Long-term debt, net   92,904       82,097  
    Operating leases, net of current portion   16,913       19,029  
    Other liabilities   8,754       8,270  
    Total Liabilities   176,375       174,684  
                   
    Stockholders’ Equity:    
    Preferred stock, $0.001 par value; 10,000 shares authorized;
        Series A: no shares issued and outstanding as of
        December 31, 2024 and 2023
        Series B: 927 shares issued and outstanding as of
        December 31, 2024 and 2023    		   1       1  
    Common stock, $0.001 par value; 300,000 shares authorized;
        76,565 and 75,703 shares issued and outstanding as of
        December 31, 2024 and 2023, respectively    		   77       76  
    Non-voting common stock, $0.001 par value; 3,553 shares authorized;
        1 share issued and outstanding as of December 31, 2024 and 2023    		   —       —  
    Additional paid-in capital   1,044,176       1,040,912  
    Accumulated other comprehensive income   4,975       2,481  
    Accumulated deficit   (824,166 )     (763,913 )
    Total Stockholders’ Equity   225,063       279,557  
    Total Liabilities and Stockholders’ Equity $ 401,438     $ 454,241  


    Reconciliation of Adjusted EBITDA to Net Loss

      Three Months Ended
    December 31,    		   Years Ended
    December 31,
    (in thousands) (unaudited) 2024   2023   2024   2023
    Net loss $ (41,712 )   $ (18,945 )   $ (58,984 )   $ (28,005 )
    Adjustments:        
    Interest expense   2,474       2,126       7,644       7,425  
    Interest income   (112 )     (265 )     (689 )     (854 )
    Unrealized derivative (gains) losses   (5,495 )     8,162       (13,574 )     9,679  
    Acquisition-related expense   5,676       700       7,701       2,800  
    Provision for income taxes   173       97       173       97  
    Asset impairments   24,790       5,970       24,790       6,544  
    Depreciation and amortization expense   6,548       5,698       24,408       23,080  
    Total adjustments   34,054       22,488       50,453       48,771  
    Adjusted EBITDA $ (7,658 )   $ 3,543     $ (8,531 )   $ 20,766  


    Segment Financials (unaudited, in thousands)

      Three Months Ended
    December 31,    		   Years Ended
    December 31,
       2024     2023     2024     2023 
    Net Sales                              

    Pekin Campus, recorded as gross:

    		                              
    Alcohol sales $ 100,216     $ 113,588     $ 415,710     $ 502,217  
    Essential ingredient sales   42,011       48,483       169,308       217,702  
    Intersegment sales   316       307       1,243       1,427  
    Total Pekin Campus sales   142,543       162,378       586,261       721,346  

    Marketing and distribution:

    		                              
    Alcohol sales, gross $ 37,230     $ 46,844     $ 216,295     $ 262,587  
    Alcohol sales, net   60       73       229       365  
    Intersegment sales   2,831       2,920       10,833       11,654  
    Total marketing and distribution sales   40,121       49,837       227,357       274,606  
                                   
    Western production, recorded as gross:                              
    Alcohol sales $ 41,306     $ 44,496     $ 115,389     $ 166,971  
    Essential ingredient sales   12,769       16,650       36,953       57,264  
    Intersegment sales   —       35       (122 )     134  
    Total Western production sales   54,075       61,181       152,220       224,369  
             
    Corporate and other   2,755       3,491       11,374       15,834  
    Intersegment eliminations   (3,147 )     (3,262 )     (11,954 )     (13,215 )
    Net sales as reported $ 236,347     $ 273,625     $ 965,258     $ 1,222,940  

    Cost of goods sold:    		                              
    Pekin Campus (1) (2) $ 139,899     $ 163,497     $  563,033      $ 710,089  
    Marketing and distribution   36,348       46,311       213,023       259,234  
    Western production (1)   59,449       65,042       172,209       230,444  
    Corporate and other   3,592       2,802       12,285       12,122  
    Intersegment eliminations   (1,550 )     (1,502 )     (5,014 )     (4,602 )
    Cost of goods sold as reported $ 237,738     $ 276,150     $ 955,536     $  1,207,287  

    Gross profit (loss):    		                              
    Pekin Campus $ 2,644     $ (1,119 )   $  23,228     $ 11,257  
    Marketing and distribution   3,773       3,526       14,334        15,372  
    Western production   (5,374 )     (3,861 )     (19,989  )     (6,075 )
    Corporate and other   (837 )     689       (911  )      3,712  
    Intersegment eliminations   (1,597 )     (1,760 )     (6,940  )      (8,613 )
    Gross profit (loss) as reported $ (1,391 )   $ (2,525 )   $  9,722      $ 15,653  

    (1) – includes depreciation and amortization expense
    (2) – includes unrealized gain (loss) on derivatives

    Sales and Operating Metrics (unaudited)

      Three Months Ended
    December 31,    		   Years Ended
    December 31,
       2024     2023     2024     2023
    Alcohol Sales (gallons in millions)          
    Pekin Campus renewable fuel gallons sold   32.1     31.8     125.7     136.2
    Western production renewable fuel gallons sold   22.3     20.4     60.5     67.0
    Third party renewable fuel gallons sold   19.0     20.2     108.3     102.6
    Total renewable fuel gallons sold   73.4     72.4     294.5     305.8
    Specialty alcohol gallons sold   21.7     20.1     91.5     76.7
    Total gallons sold   95.1     92.5     386.0     382.5
               
    Sales Price per Gallon          
    Pekin Campus $ 1.89   $ 2.23   $ 1.95   $ 2.40
    Western production $ 1.86   $ 2.18   $ 1.91   $ 2.49
    Marketing and distribution $ 1.96   $ 2.32   $ 2.00   $ 2.56
    Total $ 1.88   $ 2.24   $ 1.95   $ 2.47
               
    Alcohol Production (gallons in millions)          
    Pekin Campus   55.4     51.6     212.4     209.7
    Western production   21.2     20.8     58.7     68.1
    Total   76.6     72.4     271.1     277.8
               
    Corn Cost per Bushel          
    Pekin Campus $ 4.17   $ 5.10   $ 4.45   $ 6.32
    Western production $ 5.79   $ 6.44   $ 5.73   $ 7.45
    Total $ 4.63   $ 5.46   $ 4.72   $ 6.58
               
    Average Market Metrics          
    PLATTS Ethanol price per gallon $ 1.60   $ 1.96   $ 1.69   $ 2.22
    CME Corn cost per bushel $ 4.26   $ 4.76   $ 4.24   $ 5.64
    Board corn crush per gallons (1) $ 0.08   $ 0.26   $ 0.18   $ 0.21
               
    Essential Ingredients Sold (thousand tons)          
    Pekin Campus:          
    Distillers grains   85.3     80.2     336.4     332.7
    CO2   52.7     43.4     188.6     182.4
    Corn wet feed   41.4     25.0     121.8     95.0
    Corn dry feed   22.0     23.3     87.2     90.6
    Corn oil and germ   21.0     18.2     75.1     73.8
    Syrup and other   10.0     12.7     38.6     41.2
    Corn meal   9.3     9.0     35.4     36.8
    Yeast   5.4     6.2     23.2     25.9
    Total Pekin Campus essential ingredients sold   247.1     218.0     906.3     878.4
               
             
    Western production:          
    Distillers grains   144.3     152.0     394.5     459.7
    CO2   14.6     13.8     57.7     55.5
    Syrup and other   17.2     47.5     54.8     119.1
    Corn oil   3.1     2.8     7.6     8.0
    Total Western production essential ingredients sold   179.2     216.1     514.6     642.3
               
    Total Essential Ingredients Sold   426.3     434.1     1,420.9     1,520.7
               
               
    Essential ingredients return % (2)          
    Pekin Campus return   49.5%     51.9%     49.7%     45.7%
    Western production return   30.3%     36.3%     32.0%     33.4%
    Consolidated total return   43.1%     46.8%     45.2%     42.4%
               

    ________________
    (1) Assumes corn conversion of 2.80 gallons of alcohol per bushel of corn.
    (2) Essential ingredients revenues as a percentage of total corn costs consumed.

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    BERKELEY, Calif., March 05, 2025 (GLOBE NEWSWIRE) — Rigetti Computing, Inc. (Nasdaq: RGTI) (“Rigetti” or the “Company”), a pioneer in full-stack quantum-classical computing, today announced its financial results for the fourth quarter and year ended December 31, 2024.

    Fourth Quarter and Full-Year 2024 Financial Highlights

    • Revenues for the three months ended December 31, 2024 were $2.3 million
    • Operating expenses for the three months ended December 31, 2024 were $19.5 million
    • Operating loss for the three months ended December 31, 2024 was $18.5 million
    • Net loss for the three months ended December 31, 2024 was $153.0 million, including $135.1 million of non-cash charges for the fair value change in the earn-out and derivative warrant liabilities
    • For the year ended December 31, 2024, revenues were $10.8 million, operating expenses were $74.2 million, operating loss was $68.5 million and net loss was $201.0 million, including $133.9 million of non-cash charges for the fair value change in the earn-out and derivative warrant liabilities
    • As of December 31, 2024 cash, cash equivalents and available-for-sale securities totaled $217.2 million
    • Received net proceeds of $153.3 million during the three months ended December 31, 2024 from the sale of 88.1 million shares of common stock through a registered direct offering and completion of our at-the-market equity offering
    • Prepaid in full all remaining amounts owed under our loan agreement with Trinity Capital, Inc.

    Business & Strategic Collaboration Updates

    New strategic collaboration with Quanta Computer
    Rigetti has entered into a strategic collaboration agreement with Quanta Computer, Inc. (“Quanta”), a Taiwan-based Global Fortune 500 company and the global leader of computer server manufacturing, with the goal of accelerating the development and commercialization of superconducting quantum computing. The companies have committed to investing more than $100 million each over the next five years pursuant to the collaboration agreement, with both sides focusing on their complementary strengths to develop superconducting quantum computing technologies. In addition, pursuant to a securities purchase agreement, Quanta will invest $35 million to purchase shares of Rigetti common stock, subject to regulatory clearance. The agreements were signed on February 27, 2025.

    “Quanta’s collaboration with Rigetti is designed to strengthen our position in this flourishing market. Our companies’ complementary strengths — Rigetti as a pioneer in superconducting quantum technology, with open, modular architecture enabling integration of innovative solutions across the stack, and Quanta as the world’s leading notebook/server manufacturer with $43 billion in annual sales — will support us in our goal to be at the forefront of the quantum computing industry,” says Dr. Subodh Kulkarni, Rigetti CEO.

    Montana State University purchases a Novera QPU
    Rigetti sold a Novera QPU to Montana State University (MSU) in December 2024, which was the Company’s first QPU sale to an academic institution. The Novera will be located at MSU’s QCORE to educate and train scientists and engineers on quantum computing technologies, in addition to being used to create a testbed for quantum computing R&D. MSU’s QCORE is a new center of excellence for quantum enabling technologies established to accelerate workforce development and the regional quantum innovation ecosystem.

    Technology Milestones

    84-qubit Ankaa-3 system launches with record high fidelity
    Rigetti launched its 84-qubit Ankaa™-3 system in December 2024. Ankaa-3 features an extensive hardware redesign that enables superior performance. Rigetti achieved major two-qubit gate fidelity milestones with Ankaa-3: successfully halving error rates in 2024 to achieve a 99.0% median iSWAP gate fidelity and demonstrating 99.5% median fidelity with fSim gates. Rigetti’s newest flagship quantum computer continues to feature Rigetti’s scalable, industry-leading chip architecture with 3D signal delivery while incorporating major enhancements to key technologies.

    Ankaa-3 is available to Rigetti’s partners via the Rigetti Quantum Cloud Services platform (QCS®) and to the general public via Microsoft Azure and Amazon Braket.

    “We believe that superconducting qubits are the winning modality for quantum computers given their fast gate speeds and scalability. We’ve developed critical IP to scale our systems and remain confident in our plans to scale to 100+ qubits by the end of the year with a targeted 2x reduction in error rates from the error rates we achieved at the end of 2024. We believe our leadership in superconducting quantum computing continues to be reinforced as we push the boundaries of our system performance, as evidenced by the success of Ankaa-3,” says Dr. Kulkarni.

    Successful AI-powered calibration of a Rigetti QPU
    AI-powered tools from Quantum Elements and Qruise remotely automated the calibration of a Rigetti QPU integrated with Quantum Machines’ control system. This work was part of the “AI for Quantum Calibration Challenge” (the “Challenge”) hosted at the Israeli Quantum Computing Center. The two companies participating in the Challenge, Quantum Elements and Qruise, automated the calibration of a 9-qubit Rigetti Novera™ QPU integrated with Quantum Machines’ advanced OPX1000 control system and NVIDIA DGX Quantum, a unified system for quantum-classical computing that NVIDIA built with Quantum Machines. This achievement showcases the potential of AI in quantum computer calibration and also highlights the growing collaboration within the quantum computing ecosystem.

    Quantum Elements, Cruise, and Quantum Machines are members of Rigetti’s Novera QPU Partner Program — an ecosystem of quantum computing hardware, software, and service providers who build and offer integral components of a functional quantum computing system.

    “We believe that another advantage we leverage is our modular approach to developing our technology. By enabling our partners to integrate their technology with ours, we can explore and advance creative and flexible ways to improve quantum computing capabilities,” says Dr. Kulkarni.

    Research demonstrating optical reading technique published in Nature Physics
    Joint research with QphoX and Qblox demonstrating the ability to readout superconducting qubits with an optical transducer was recently published in Nature Physics. This approach to qubit signal processing could have benefits in building scalable quantum computers as it could be a more compact, modular approach for measuring qubit performance in quantum computing systems that rely on microwave amplification. Current qubit readout techniques used by superconducting quantum computer systems in cryogenic environments can be resource intensive from a thermal and power usage perspective. A potential solution to this problem may be to replace coaxial cables and other cryogenic components with optical fibers, which have a considerably smaller footprint and negligible thermal conductivity. To demonstrate the potential of this technology, QphoX, Rigetti and Qblox connected a transducer to a superconducting qubit, with the goal of measuring its state using light transmitted through an optical fiber. It was discovered that the transducer is capable of converting the signal that reads out the qubit and the qubit can also be sufficiently protected from decoherence introduced by thermal noise or stray optical photons from the transducer during operation.

    Conference Call and Webcast
    Rigetti will host a conference call later today, March 5, 2025, at 5:00 pm ET, or 2:00 pm PT, to discuss its fourth quarter and full-year 2024 financial results.

    You can listen to a live audio webcast of the conference call at https://edge.media-server.com/mmc/p/5jaikwa8/ or the “Events & Presentations” section of the Company’s Investor Relations website at https://investors.rigetti.com/. A replay of the conference call will be available at the same locations following the conclusion of the call for one year.

    To participate in the live call, you must register using the following link: https://register.vevent.com/register/BIc3642ee5e70e4bea9d3311a88c4e128a. Once registered, you will receive dial-in numbers and a unique PIN number. When you dial in, you will input your PIN and be routed into the call. If you register and forget your PIN, or lose the registration confirmation email, simply re-register to receive a new PIN.

    About Rigetti
    Rigetti is a pioneer in full-stack quantum computing. The Company has operated quantum computers over the cloud since 2017 and serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform. In 2021, Rigetti began selling on-premises quantum computing systems with qubit counts between 24 and 84 qubits, supporting national laboratories and quantum computing centers. Rigetti’s 9-qubit Novera QPU was introduced in 2023 supporting a broader R&D community with a high-performance, on-premises QPU designed to plug into a customer’s existing cryogenic and control systems. The Company’s proprietary quantum-classical infrastructure provides high-performance integration with public and private clouds for practical quantum computing. Rigetti has developed the industry’s first multi-chip quantum processor for scalable quantum computing systems. The Company designs and manufactures its chips in-house at Fab-1, the industry’s first dedicated and integrated quantum device manufacturing facility. Learn more at https://www.rigetti.com/.

    Contacts

    Rigetti Computing Investor Contact:
    IR@Rigetti.com

    Rigetti Computing Media Contact:
    press@rigetti.com

    Cautionary Language Concerning Forward-Looking Statements
    Certain statements in this communication may be considered “forward-looking statements” within the meaning of the federal securities laws, including statements with respect to the Company’s future success and performance, including expectations with respect to future revenues and the timing, availability and impact of government programs relating to quantum information science; expectations regarding the advantages and impact of the strategic collaboration agreement with Quanta Computer on our operations, technology roadmap, milestones, and our position in the industry; the expectation that Rigetti and Quanta will each invest more than $100 million over the next five years; expectations regarding Quanta’s anticipated $35 million investment in Rigetti through a purchase of Rigetti’s common stock; anticipated regulatory clearance; expectations related to the Company’s ability to achieve milestones including the development of future generations of hardware, including any future generations developed to achieve our targeted fidelities and qubit counts, or to demonstrate narrow quantum advantage or broad quantum advantage, each of which is an important anticipated milestone for our technology roadmap and commercialization of our quantum computers; expectations with respect to scaling to create larger qubit systems without sacrificing gate performance using the Company’s modular chip architecture, including expectations with respect to the Company’s anticipated systems and targeted error rate reduction; expectations with respect to future sales or leases of the Novera QPU, customer adoption of the Ankaa-3 systems and Novera QPU; the possibility that reading out superconducting qubits with an optical transducer could have benefits in building scalable quantum computers; the possibility that replacing coaxial cables and other cryogenic components with optical fibers could result in less thermal and power usage; expectations with respect to the Company’s partners and customers and the quantum computing plans and activities thereof; and expectations with respect to the anticipated stages of quantum technology maturation, including the Company’s ability to develop a quantum computer that is able to solve practical, operationally relevant problems significantly better, faster, or cheaper than a current classical solution and achieve quantum advantage on the anticipated timing or at all. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the Company’s ability to achieve milestones, technological advancements, including with respect to its technology roadmap; the ability of the Company to obtain government contracts successfully and in a timely manner and the availability of government funding; the potential of quantum computing; the ability of the Company to expand its QPU sales and the Novera QPU Partnership Program; the success of the Company’s partnerships and collaborations, including the strategic collaboration with Quanta Computer; the Company’s ability to accelerate its development of multiple generations of quantum processors; the outcome of any legal proceedings that may be instituted against the Company or others; the ability to maintain relationships with customers and suppliers and attract and retain management and key employees; costs related to operating as a public company; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, or competitive factors; the Company’s estimates of expenses and profitability; the evolution of the markets in which the Company competes; the ability of the Company to implement its strategic initiatives and expansion plans; the expected use of proceeds from the Company’s past and future financings or other capital; the sufficiency of the Company’s cash resources; unfavorable conditions in the Company’s industry, the global economy or global supply chain, including rising inflation and interest rates, deteriorating international trade relations, political turmoil, natural catastrophes, warfare and terrorist attacks; and other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and other documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements other than as required by applicable law. The Company does not give any assurance that it will achieve its expectations.

    RIGETTI COMPUTING, INC.
    CONSOLIDATED BALANCE SHEETS
    (in thousands, except number of shares and par value)
               
      December 31,   December 31,
      2024   2023
    Assets          
    Current assets:          
    Cash and cash equivalents $ 67,674     $ 21,392  
    Available-for-sale investments – short-term   124,420       78,537  
    Accounts receivable   2,427       5,029  
    Prepaid expenses   3,156       1,938  
    Other current assets   9,081       771  
    Total current assets   206,758       107,667  
    Available-for-sale investments – long-term   25,068       —  
    Property and equipment, net   44,643       44,483  
    Operating lease right-of-use assets   7,993       7,634  
    Other assets   325       129  
    Total assets $ 284,787     $ 159,913  
               
    Liabilities and Stockholders’ Equity          
    Current liabilities:          
    Accounts payable $ 1,590     $ 5,772  
    Accrued expenses and other current liabilities   8,005       8,563  
    Current portion of deferred revenue   113       343  
    Current portion of debt   —       12,164  
    Current portion of operating lease liabilities   2,159       2,210  
    Total current liabilities   11,867       29,052  
    Debt, less current portion   —       9,894  
    Deferred revenue, less current portion   698       —  
    Operating lease liabilities, less current portion   6,641       6,297  
    Derivative warrant liabilities   93,095       2,927  
    Earn-out liabilities   45,897       2,155  
    Total liabilities   158,198       50,325  
    Commitments and contingencies          
    Stockholders’ equity:          
    Preferred stock, par value $0.0001 per share, 10,000,000 shares authorized, none outstanding   —       —  
    Common stock, par value $0.0001 per share, 1,000,000,000 shares authorized, 283,546,871 shares issued and outstanding at December 31, 2024 and 147,066,336 shares issued and outstanding at December 31, 2023   29       14  
    Additional paid-in capital   681,202       463,089  
    Accumulated other comprehensive income   105       244  
    Accumulated deficit   (554,747 )     (353,759 )
    Total stockholders’ equity   126,589       109,588  
    Total liabilities and stockholders’ equity $ 284,787     $ 159,913  
                   
    RIGETTI COMPUTING, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except per share data)
     
                   
      Three Months Ended December 31,   Year Ended December 31,
      2024   2023   2024   2023
    Revenue $ 2,274     $ 3,376     $ 10,790     $ 12,008  
    Cost of revenue   1,271       860       5,093       2,800  
    Total gross profit   1,003       2,516       5,697       9,208  
    Operating expenses:                      
    Research and development   13,657       12,787       49,750       52,768  
    Selling, general and administrative   5,840       6,936       24,457       27,744  
    Restructuring   —       —       —       991  
    Total operating expenses   19,497       19,723       74,207       81,503  
    Loss from operations   (18,494 )     (17,207 )     (68,510 )     (72,295 )
    Other income (expense), net                      
    Interest expense   (446 )     (1,268 )     (3,255 )     (5,779 )
    Interest income   1,546       1,330       5,113       5,076  
    Change in fair value of derivative warrant liabilities   (90,885 )     3,160       (90,168 )     (1,160 )
    Change in fair value of earn-out liabilities   (44,256 )     1,413       (43,742 )     (949 )
    Loss on extinguishment of debt   (426 )     —       (426 )     —  
    Total other expense, net   (134,467 )     4,635       (132,478 )     (2,812 )
    Net loss before provision for income taxes   (152,961 )     (12,572 )     (200,988 )     (75,107 )
    Provision for income taxes   —       —       —       —  
    Net loss $ (152,961 )   $ (12,572 )   $ (200,988 )   $ (75,107 )
    Net loss per share attributable to common stockholders – basic and diluted $ (0.68 )   $ (0.09 )   $ (1.09 )   $ (0.57 )
    Weighted average shares used in computing net loss per share attributable to common stockholders – basic and diluted   226,364       140,537       184,666       131,977  
                                   
    RIGETTI COMPUTING INC.
    CONSOLIDATED STATEMENTS OF CASH FLOW
    (in thousands)
       
      Year Ended December 31,
      2024   2023
    Cash flows from operating activities:          
    Net loss $ (200,988 )   $ (75,107 )
    Adjustments to reconcile net loss to net cash used in operating activities:          
    Depreciation and amortization   6,906       7,426  
    Stock-based compensation   13,069       12,409  
    Change in fair value of earn-out liabilities   43,742       949  
    Change in fair value of derivative warrant liabilities   90,168       1,160  
    Change in fair value of forward contract   —       2,229  
    Impairment of deferred offering costs   —       836  
    Accretion of available-for-sale securities   (3,622 )     (3,121 )
    Loss on extinguishment of debt   426       —  
    Amortization of debt issuance costs, commitment fees and accretion of final payment fees   844       1,453  
    Non-cash lease expense   1,909       1,682  
    Changes in operating assets and liabilities:          
    Accounts receivable   2,602       1,206  
    Prepaid expenses, other current assets and other assets   (2,434 )     (259 )
    Deferred revenue   468       (618 )
    Accounts payable   (1,036 )     895  
    Accrued expenses and operating lease liabilities   (2,681 )     (1,719 )
    Net cash used in operating activities   (50,627 )     (50,579 )
    Cash flows from investing activities:          
    Purchases of property and equipment   (11,098 )     (9,059 )
    Purchases of available-for-sale securities   (224,764 )     (109,252 )
    Maturities of available-for-sale securities   157,500       119,084  
    Net cash (used in) provided by investing activities   (78,362 )     773  
    Cash flows from financing activities:          
    Principal repayments and prepayment and final payment fees of notes payable   (23,328 )     (8,333 )
    Net payments of tax withholdings on sell-to-cover equity award transactions   (6,272 )     —  
    Proceeds from sale of common stock through Common Stock Purchase Agreement   12,838       20,544  
    Proceeds from sale of common stock through At-The-Market (ATM) Offering   97,500       —  
    Proceeds from sale of common stock through registered direct offering   96,000       —  
    Payments of offering costs   (1,833 )     (107 )
    Proceeds from issuance of common stock upon exercise of stock options and warrants   554       1,126  
    Net cash provided by financing activities   175,459       13,230  
    Effects of exchange rate changes on cash and cash equivalents   (188 )     80  
    Net increase (decrease) in cash and cash equivalents   46,282       (36,496 )
    Cash and cash equivalents – beginning of period   21,392       57,888  
    Cash and cash equivalents – end of period $ 67,674     $ 21,392  
    Supplemental disclosures of other cash flow information:          
    Cash paid for interest $ 2,350     $ 4,340  
    Non-cash investing and financing activities:          
    Capitalization of deferred costs to equity upon share issuance   —       13  
    Purchases of property and equipment recorded in accounts payable   466       3,612  
    Purchases of property and equipment recorded in accrued expenses   150       1,019  
    Non-cash addition to operating lease right-of-use assets and lease liability   2,268       —  
    Unrealized gain on short term investments   66       325  

    The MIL Network –

  • MIL-OSI USA: Kennedy explains how new natural disaster tax law could save Louisianians money this tax season

    US Senate News:

    Source: United States Senator John Kennedy (Louisiana)

    Watch Kennedy’s comments here.
    WASHINGTON – Sen. John Kennedy (R-La.) explained how changes to the tax code could affect how some Louisianians claim deductions related to damage from Hurricanes Laura, Delta, Ida and Francine in a speech on the Senate floor.
    Key excerpts of the speech are below:
    “I realize, Mr. President of the Senate, that you would probably prefer to be condemned to hearing O.J. jokes for the rest of eternity than to hear me talk about federal income tax filing, but it is important for Americans and my people back in Louisiana because we have a new deduction for people who have uninsured losses from natural disasters. It’s really important in my state because many of my people have suffered damages, for which they did not receive insurance payments, from Hurricanes Laura, Delta, Ida and Francine.
    “It is called the Federal Disaster Tax Relief Act. What it does is the following: It changes the law. It now says that if you are a victim of a natural disaster like a hurricane and you have a loss that is not paid for by your insurance, you can now deduct off your income tax—dollar for dollar—any uninsured property damage in excess of $500.”
    . . . 
    “I know folks are thinking, well, I already filed my income taxes for 2021 and 2022 and 2023. You can file an amended return. It is very simple to do. You just file an amended return that says: There has been a change in the law, and I am entitled to have this higher deduction, and therefore the federal government owes me money, and therefore please send me my check. So, I wanted to make sure that Americans knew about this new tax provision we passed.”
    Background: 
    In Dec. 2024, Congress passed the Federal Disaster Tax Relief Act, which allows Americans who suffered damage as a result of a federally declared disaster—including some hurricanes, tornados, and wildfires—to deduct from their taxes certain uninsured property damage in excess of $500.
    Louisianians who suffered uninsured property damage during Hurricanes Laura, Delta, Ida and Francine may be eligible for the new deduction. Those who already claimed losses from those storms between 2021 and 2023 may be able to amend their previously filed taxes to claim the new deduction.
    Individuals and couples that receive the standard tax deduction—which is 90% of Americans—will still receive the full standard deduction in addition to any deduction they may claim related to storm damage under this new law.
    Watch Kennedy’s full speech here.

    MIL OSI USA News –

  • MIL-OSI USA: Kennedy identifies 3 ways Congress can unplug the Biden admin’s “inflation machine”

    US Senate News:

    Source: United States Senator John Kennedy (Louisiana)

    Watch Kennedy’s comments here.
    WASHINGTON – Sen. John Kennedy (R-La.) detailed the three ways in which Congress can work with the Trump administration to address inflation in a speech on the Senate floor.
    Key excerpts of the speech are below:
    “I don’t want to dwell on the past, but President Biden’s administration was an inflation machine. . . . What the American people are wondering every single day as they sell blood plasma to go to the grocery store is: when am I going to get some relief from these high prices? And we do need to provide them relief. I want to talk about three ways that we are in the process of trying to reduce those prices that my Democratic colleagues caused.”
    . . .
    “Number one: reduce spending. You see it every single day from President Trump. He said he was going to audit federal spending, and that is exactly what he is doing.” 
    . . .
    “Number two: deregulation. The federal government wants to regulate every breath we take. . . . It is just amazing, and each one of these regulations has a cost. The cost of all of our regulations today is in excess of $2 trillion—not billion, not million—$2 trillion.
    “What does that mean? That means when a business produces a product or it delivers a service—and it has to comply with a meaningless, gnarly federal regulation which costs money—that extra expense is added to the cost of the product or the service. Duh. I mean, businesses have to stay in business. They can’t eat the cost so they pass it on, and that leads to higher prices.”
    . . .
    “The third way we are attacking these high prices is by trying to stimulate the economy to increase wages so that we actually can grow out of these high prices so that people will have more money to spend when they buy a car or go to the grocery store. We are not going to do that with tepid GDP growth. . . . We are going to do that through the tax code.
    “We have about $4.5 trillion worth of tax cuts that we implemented back in 2017 that caused the economy to grow and wages to go up until COVID hit. Those tax cuts are expiring here very shortly, and we are going to extend them.”
    . . .
    “We are well aware that high prices are gutting the American people like a fish, but by reducing spending, by deregulating the economy, and by designing a tax code that looks like somebody designed it on purpose, we are going to get those high prices down.”
    Watch Kennedy’s full speech here.

    MIL OSI USA News –

  • MIL-OSI United Kingdom: Prime Minister’s remarks at UK-Ireland Summit: 5 March 2025

    Source: United Kingdom – Executive Government & Departments

    Speech

    Prime Minister’s remarks at UK-Ireland Summit: 5 March 2025

    Prime Minister’s remarks at the UK-Ireland Summit in Liverpool.

    Thanks Lisa, it’s really fantastic to see you all here and to be in this absolutely wonderful museum.

    I’ve been in this museum a number of times, but I’m normally bundled in to the top floor to do an interview with Laura Kuenssberg on the Sunday morning of our conference.

    So, to come and see it in all its glory is really really fantastic.

    As it is to look out and see all of you here.

    And particularly just to see UK and Ireland Summit 2025 on the walls here is absolutely amazing and really, really uplifting, so thank you all for coming.

    Look I know we’re still some days away from St. Patrick’s Day.

    But we’ve got some fantastic food and drink from Irish chef Anna Haugh who is here this evening.

    Fantastic music from the Liverpool String Quartet.

    And I know we’ve got incredible people in this room.

    Business leaders, people in the arts, education, politicians.

    And of course, a very big thank you to the Taoiseach Micheál Martin who is with us this evening.

    So, all in all I think we can consider this an early celebration of everything Irish…

    And everything that binds the UK and Ireland together.

    Micheál, everyone, it really is good to see you all here in Liverpool for this important summit 

    A city which stands as the living embodiment of the connections between our two countries.

    As Lisa has alluded to, I’ve been to Ireland many times. 

    But in September last year I visited Ireland for the first time as Prime Minister of the United Kingdom.

    That was an important and special moment for me.

    But it was a wider moment, not just because I got to watch the England-Ireland football match at the Aviva Stadium…I won’t mention the score. 

    But because as the first visit by a UK Prime Minister in five years…

    And despite all the turbulence in recent times…

    It was a reminder of just how strong those ties are that bind us together.

    So, it was a really important moment for me personally, 

    But a really important moment for the United Kingdom and for Ireland to have that first visit so early in my tenure as Prime Minister.

    So, I’m really delighted that the Irish delegation is here today…

    To continue strengthening that friendship…

    As we work to bring huge benefits to the people of both countries…

    By delivering greater trade, prosperity and security.

    Now many of you will know that as Prime Minister

    My focus is on delivering change

    Improving people’s lives

    Boosting growth

    So that we can raise living standards

    and put more money into people’s pockets

    And deliver the public services people need.

    But of course, we can do much more…

    When we work together with others.

    As I’ve said before, I don’t believe the relationship between the UK and Ireland has ever reached its full potential.

    And I’m delighted that now with this summit we’re going to change all that. What an opportunity. 

    Micheál, I know we’ve got a lot to do over the coming days…

    We’ve got great ambitions for this summit.

    Talking together

    Speaking to business leaders

    Perhaps finding a moment for a bit of Guinness diplomacy.

    But tonight…

    I hope we can simply celebrate

    The UK and Ireland

    And everything that makes this such a fantastic friendship

    And now it’s my pleasure to introduce the Taoiseach, you’re so welcome I’m so pleased we were able to get this summit together: Micheál .

    Updates to this page

    Published 5 March 2025

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: British Ambassador discusses economic growth, trade opportunities and investment climate with Minister of Economy

    Source: United Kingdom – Executive Government & Departments

    World news story

    British Ambassador discusses economic growth, trade opportunities and investment climate with Minister of Economy

    The British Ambassador to Guatemala, Juliana Correa, paid a courtesy visit to the Minister of Economy, Gabriela Garcia-Quinn on 5 March.

    The Ambassador and the Minister reviewed key areas of bilateral and international economic collaboration between the UK and Guatemala noting their shared values and interests, and their desire for increased cooperation. 

    Ambassador Correa welcomed Guatemalan efforts to enhance economic security, strengthen the resilience of critical supply chains and to coordinate efforts to address future challenges and build prosperity. 

    Amongst these, the UK commends the advancements made on the Competition Law, the openness to foreign investment, improved steps in the fight against corruption and continued collaboration to increase the UK-Guatemala trade figures through the UK-Central America Association Agreement. 

    According to Guatemala’s trade figures, bilateral trade in 2024 was US$155.7 million, an increase of 4.8% compared to the previous year. Exports of Guatemalan products were US$102.4 million, a decrease of -0.8%; while imports of British products were US$53.3 million, an increase of 17.6%.

    Finally, Ambassador Correa agreed to continue building up on economic opportunities detected by UK companies, share experiences that would benefit the business environment and work together to uphold and promote the rules-based international economic system, including free and open trade.

    Updates to this page

    Published 5 March 2025

    MIL OSI United Kingdom –

  • MIL-OSI Canada: More tax relief on the way for Jasper

    Source: Government of Canada regional news (2)

    MIL OSI Canada News –

  • MIL-OSI USA: Statement from CWA President Claude Cummings Jr. on the Passing of Congressman Sylvester Turner

    Source: Communications Workers of America

    Our entire Communications Workers of America family is saddened by the death of Congressman and former Houston Mayor Sylvester Turner. Congressman Turner was a champion for all working people and a great friend to CWA members in Houston.

    As a native Houstonian, I had the honor of working closely with Sylvester throughout his career. He had the ability to bring people from all walks of life and different political parties together to focus on finding solutions to tough challenges. As a leader in the Texas legislature, he worked across the aisle to facilitate increased investment in our communities by telecommunications companies like AT&T, resulting in better service and thousands of jobs. As Mayor of Houston, he saw our beloved city through several natural disasters and the COVID-19 pandemic, and he paid special attention to creating economic opportunities for young people in our city.

    My prayers are with Sylvester’s family during this difficult time. We will never forget Congressman Turner’s service to the City of Houston, the State of Texas, and our country. Although we will miss his leadership during these challenging times, we will fight on in his name.

    ###

    About CWA: The Communications Workers of America represents working people in telecommunications, customer service, media, airlines, health care, public service and education, manufacturing, tech, and other fields.

    cwa-union.org @cwaunion

    MIL OSI USA News –

  • MIL-OSI: Amplify Energy Announces Fourth Quarter and Full-Year 2024 Results, Year-End 2024 Proved Reserves, Juniper Capital Acquisition Update and Standalone Full-Year 2025 Guidance

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, March 05, 2025 (GLOBE NEWSWIRE) — Amplify Energy Corp. (NYSE: AMPY) (“Amplify,” the “Company,” “us,” or “our”) announced today its operating and financial results for the fourth quarter and full-year 2024, year-end 2024 proved reserves, Juniper Capital (“Juniper”) acquisition update and full-year 2025 standalone guidance for the Company.

    Key Highlights

    • 2025 strategic initiatives include:
      • Completing the previously announced transformational combination with certain Juniper portfolio companies which own substantial oil-weighted producing assets and significant leasehold interests in the DJ and Powder River Basins (the “Transaction”) and integrating such assets into our operations
      • Continuing the Beta development program with six completions planned for 2025 including the C-48 and the A-45 which were deferred from the 2024 program
      • Expanding Magnify Energy Services, a wholly owned subsidiary of Amplify (“Magnify”), to enhance Amplify’s competitive advantage in operating our mature assets located in East Texas and Oklahoma
      • Creating incremental value in East Texas by monetizing portions of our portfolio and/or participating in joint development opportunities focused within the Haynesville formation
    • During the fourth quarter of 2024, the Company:
      • Achieved average total production of 18.5 MBoepd
      • Generated net cash provided by operating activities of $12.5 million and a net loss of $7.4 million
      • Delivered Adjusted EBITDA of $21.8 million and Adjusted Net Income of $5.1 million
      • Generated $2.9 million of free cash flow
      • Completed the sale of undeveloped Haynesville acreage in East Texas for $1.4 million
    • For full-year 2024, the Company:
      • Achieved average total production of 19.5 MBoepd
      • Generated net cash provided by operating activities of $51.3 million and net income of $12.9 million
      • Delivered Adjusted EBITDA of $103.0 million and Adjusted Net Income of $35.8 million
      • Generated $18.0 million of free cash flow
      • Renegotiated prior surety bonds and reduced sinking fund payments by approximately $7.0 million per year
      • Initiated development drilling program at Beta, with the completion of two wells, which outperformed type curves
      • Generated $3.1 million of Adjusted EBITDA at Magnify
      • Renegotiated the iodine contract in Oklahoma, increasing annual Adjusted EBITDA by $2.4 million
    • Amplify’s year-end 2024 total proved reserves, utilizing Securities and Exchange Commission (“SEC”) pricing of $75.48/Bbl for oil and NGLs and $2.13/MMBtu for natural gas, totaled 93 MMBoe and had a PV-10 value of approximately $736 million
    • As of December 31, 2024, Amplify had $127.0 million outstanding under the revolving credit facility
      • Net Debt to Last Twelve Months (“LTM”) Adjusted EBITDA of 1.2x1
         
      (1) Net debt as of December 31, 2024, consisting of $127 MM outstanding under its revolving credit facility with ~$0.0 MM of cash and cash equivalents, and LTM Adjusted EBITDA as of the fourth quarter of 2024.
         

    Martyn Willsher, Amplify’s President and Chief Executive Officer, commented, “In early 2024, we told stakeholders that 2024 had the potential to be a transformative year for the Company, and we believe that we delivered on that expectation throughout the year. The recently announced transaction with Juniper Capital expands our operations into the DJ and Powder River Basins, increases our scale, operating efficiency and margins, improves our inventory of attractive drilling locations, and provides us with a new core area for potential M&A activity. The transaction also resulted in a new long-term partnership with Juniper Capital, who have a long history of delivering substantial value to shareholders. At Beta, we safely and successfully initiated a drilling program, which has increased our confidence regarding the future inventory of the field and has enabled us to expand our development plans for this prolific asset in 2025 and beyond.”

    Mr. Willsher continued, “While we have focused our attention and resources on these two significant initiatives, our team has also delivered value to stockholders by pursuing opportunities to reduce operating expenses and maximize the value of our existing asset base. For example, Magnify Energy Services, our wholly owned subsidiary that provides oilfield services to Amplify-operated wells, expanded meaningfully in scope, realizing a significant increase in revenue and efficiency and reducing operating costs in East Texas and Oklahoma. We also renegotiated several existing contracts, like our iodine extraction contract, to receive improved economics. Although smaller in scope, these efforts have demonstrated management’s commitment to identifying areas to improve our operations and deliver value to stockholders. On the value maximizing front, we were able to monetize a portion of our acreage with Haynesville rights for several million dollars, while retaining an interest to realize upside value.”

    Mr. Willsher concluded, “We believe that our strategic and operational accomplishments in 2024 set the foundation for Amplify’s future and that in 2025 we will begin to capitalize on the growth potential of this significantly enhanced asset base.  By delivering on our 2025 strategic initiatives, we believe we can create immediate and long-term value for Amplify’s stockholders.”

    Juniper Capital Rocky Mountain Assets Update

    On January 15, 2025, Amplify announced that it has entered into a definitive merger agreement with privately held Juniper to combine with certain Juniper portfolio companies owning assets and leasehold interests in the DJ and Powder River Basins. Such portfolio companies are oil-weighted and include approximately 287,000 net acres. We expect to close the acquisition in the second quarter of 2025. Amplify has provided more information on the portfolio companies and their assets and the value potential of the Transaction in its latest investor presentation, available on its investor relations website.

    On March 4, 2025, a definitive proxy statement was filed providing additional details on the Transaction. A special meeting of stockholders, to be held virtually, has been scheduled for April 14, 2025, at 9:00 am Central Time, where stockholders of record as of March 3, 2025 can vote to approve the issuance of common stock, par value $0.01 per share (the “Common Stock”) (as described in more detail in the definitive proxy statement) in connection with the Transaction. In order to virtually attend, stockholders must register in advance at www.cesonlineservices.com/ampysm_vm prior to April 13, 2025 at 9:00 a.m. Central Time. More information can be found in the definitive proxy statement on the SEC’s website at www.sec.gov and the Company’s website, www.amplifyenergy.com, under the Investor Relations section. Upon approval from our stockholders of the issuance of Common Stock and the resulting closing of the Transaction, Amplify and Juniper are expected to own approximately 61% and 39%, respectively, of the combined company’s outstanding equity.

    In anticipation of closing, Amplify is currently working with Juniper and its portfolio companies on integrating the Juniper assets into the Amplify organization. Furthermore, the Company expects to refinance a substantial portion of its outstanding debt and approximately $133 million in principal amount of the portfolio companies’ outstanding debt prior to closing the Transaction. Amplify intends to update the market with developments of the Transaction as they progress.

    East Texas Haynesville Monetization Update

    Starting in 2024, several operators expressed increased interest in buying or partnering with Amplify on our East Texas Haynesville interests. In December 2024, Amplify monetized ninety percent (90%) of its interests in certain units with Haynesville rights in Panola and Shelby Counties, while retaining a ten percent (10%) working interest and the ability to participate in any well drilled within the boundary of such units. Upon closing, such transaction generated approximately $1.4 million in proceeds.

    In January 2025, Amplify completed a second transaction with a separate counterparty. Amplify sold ninety percent (90%) of its interest in certain units with Haynesville rights in Harrison County, Texas, in addition to 11 gross operated wells. This transaction also established an Area of Mutual Interest (“AMI”) with the counterparty covering 10,000 gross acres. Amplify retained a ten percent (10%) working interest in the units it divested and purchased a ten percent (10%) working interest in the counterparty’s acreage. Amplify generated net proceeds of $6.2 million from these transactions and estimates the AMI has more than 30 potential gross drilling locations.

    2024 Year-End Proved Reserve Update

    The Company’s estimated proved reserves at SEC pricing for year-end 2024 totaled 93.0 MMBoe, which consisted of 82.2 MMBoe of proved developed reserves and 10.8 MMBoe of proved undeveloped reserves. Proved developed reserves were lower year-over-year, primarily due to lower SEC pricing for oil and natural gas, which fell from $78.22 to $75.48 for oil and from $2.64 to $2.13 for natural gas, and the impact of 2024 production roll-off. Total proved reserves were comprised of 44% oil, 19% NGLs, and 37% natural gas.

    At year-end 2024, Amplify’s total proved reserves and proved developed reserves had PV-10 values of approximately $736 million and $507 million, respectively, using SEC pricing. Proved developed reserve value at Bairoil was lower than 2023 due to a combination of SEC pricing, production performance and higher operating cost assumptions due to significant increases in regulated electricity rates. Proved undeveloped reserves have increased materially as a result of the successful 2024 Beta development program, with the Company adding 23 additional locations and approximately $200 million in PV-10 value. The initial production rates for the two Beta wells brought on-line in 2024 exceeded the type-curves included in our year-end reserve report, and Amplify will consider increasing the type curve assumptions for Beta development wells after evaluating results from the 2025 development program. Detail on the Company’s reserves by asset is provided in the table below. Additionally, Amplify has provided more information on its Beta development program and the substantial value potential of the field in its latest investor presentation, available on its investor relations website.

      Estimated Net Reserves1
    Region MMBoe % Oil and NGL Proved Developed PV-10 Proved Undeveloped PV-10 Total Proved PV-10
          (in millions)
               
    Beta 19.1 100% $144 $214 $358
    Oklahoma 27.0 46% 138 – 138
    Bairoil 16.4 100% 118 – 118
    East Texas/ North Louisiana 28.0 30% 75 4 79
    Eagle Ford (Non-op) 2.5 90% 32 11 43
               
    Total 93.0 63% $507 $229 $736
    (1) Amplify’s year-end 2024 total proved reserves, utilizing SEC pricing of $75.48/Bbl for oil and NGLs and $2.13/MMBtu for natural gas.
       

    Amplify’s reserves estimates were prepared by its third-party independent reserve consultant, Cawley, Gillespie & Associates, Inc.

    Key Financial Results

    During the fourth quarter of 2024, the Company reported a net loss of approximately $7.4 million. The net loss was primarily attributable to a non-cash unrealized loss on commodity derivatives during the period. Excluding the impact of the non-cash unrealized loss on commodity derivatives in addition to other one-time impacts, Amplify generated Adjusted Net Income of $5.1 million in the fourth quarter of 2024.

    Fourth quarter Adjusted EBITDA was $21.8 million, a decrease of approximately $3.7 million from $25.5 million in the prior quarter. The decrease was primarily due to lower realized oil prices (net of hedges) in the fourth quarter compared to the prior quarter.

    Free cash flow was $2.9 million for the fourth quarter, a decrease of $0.7 million compared to the prior quarter. Amplify has now generated positive free cash flow in 18 of the last 19 fiscal quarters.

      Fourth Quarter Third Quarter
    $ in millions 2024   2024  
    Net income (loss)   ($7.4 )   $22.7  
    Net cash provided by operating activities   $12.5     $15.7  
    Average daily production (MBoe/d)   18.5     19.0  
    Total revenues excluding hedges   $69.0     $69.9  
    Adjusted EBITDA (a non-GAAP financial measure)   $21.8     $25.5  
    Adjusted net income (loss), (a non-GAAP financial measure)   $5.1     $9.8  
    Total capital   $15.3     $18.2  
    Free Cash Flow (a non-GAAP financial measure)   $2.9     $3.6  
         

    Revolving Credit Facility

    As of December 31, 2024, Amplify had $127.0 million outstanding under its revolving credit facility, and net debt to LTM Adjusted EBITDA was 1.2x (net debt as of December 31, 2024 and 4Q24 LTM Adjusted EBITDA). Fourth quarter net debt increased from the prior quarter due to expected changes in working capital and increased development activity, primarily at Beta.

    Corporate Production and Pricing

    During the fourth quarter of 2024, average daily production was approximately 18.5 Mboepd, a decrease of 0.5 Mboepd from the prior quarter. The decrease in production was driven by gas volumes, which were impacted by gas plant realizations in East Texas. Our oil volumes, although slightly higher compared to the prior quarter, were impacted by platform shutdowns following the completion of the emission reduction and electrification facility projects and several unexpected well failures and subsequent interventions at Beta. With the successful completion of the electrification and emissions reduction project in the fourth quarter 2024 and the intervention projects completed by end of January 2025, we are projecting Beta production to be significantly higher than the fourth quarter, before the impact of the 2025 drilling program. As of March 2, 2025, current 7-day average production rates at Beta were 4,834 gross Bopd (3,635 net Bopd), representing an approximate 9% increase from fourth quarter 2024 volumes, with minimal contribution from the recently completed C48 well, which we continue to draw down since completing in mid-February.

    The Company’s product mix for the quarter was 45% crude oil, 17% NGLs, and 38% natural gas.

      Three Months   Three Months
      Ended   Ended
      December 31, 2024   September 30, 2024
           
    Production volumes – MBOE:      
    Bairoil   293       294  
    Beta   308       304  
    Oklahoma   436       454  
    East Texas / North Louisiana   609       638  
    Eagle Ford (Non-op)   60       62  
    Total – MBoe   1,706       1,752  
    Total – MBoe/d   18.5       19.0  
    % – Liquids   62 %     60 %
           

    Total oil, natural gas and NGL revenues for the fourth quarter of 2024 were approximately $67.2 million, before the impact of derivatives. The Company realized a net gain on commodity derivatives of $4.1 million during the fourth quarter. Oil, natural gas and NGL revenues, net of realized hedges, decreased $3.3 million for the fourth quarter compared to the prior quarter.

    The following table sets forth information regarding average realized sales prices for the periods indicated:

      Crude Oil ($/Bbl) NGLs ($/Bbl) Natural Gas ($/Mcf)
                           
      Three Months Ended December 31, 2024   Three Months Ended September 30, 2024   Three Months Ended December 31, 2024   Three Months Ended September 30, 2024   Three Months Ended December 31, 2024   Three Months Ended September 30, 2024
                           
    Average sales price exclusive of realized derivatives and certain deductions from revenue $ 66.82     $ 71.74     $ 23.46     $ 21.63     $ 2.52     $ 1.84  
    Realized derivatives   1.43       (0.24 )     –       –       0.76       1.38  
                           
    Average sales price with realized derivatives exclusive of certain deductions from revenue $ 68.25     $ 71.50     $ 23.46     $ 21.63     $ 3.28     $ 3.22  
    Certain deductions from revenue   –       –       (1.37 )     (1.33 )     (0.01 )     0.00  
                           
    Average sales price inclusive of realized derivatives and certain deductions from revenue $ 68.25     $ 71.50     $ 22.09     $ 20.30     $ 3.27     $ 3.22  
                           

    Costs and Expenses

    Lease operating expenses in the fourth quarter of 2024 were approximately $35.1 million, or $20.57 per Boe, a $1.8 million increase compared to the prior quarter. Due to increased well failures in the fourth quarter, Beta lease operating costs were higher compared to the prior quarter. Lease operating expenses do not reflect $0.9 million of income generated by Magnify in the fourth quarter.

    Severance and ad valorem taxes in the fourth quarter were approximately $5.4 million, a decrease of $0.6 million compared to $6.0 million in the prior quarter, and in line with expectations. Severance and ad valorem taxes as a percentage of revenue were approximately 8.0% in the fourth quarter.

    Amplify incurred $4.5 million, or $2.62 per Boe, of gathering, processing and transportation expenses in the fourth quarter, compared to $4.3 million, or $2.45 per Boe, in the prior quarter.

    Cash G&A expenses in the fourth quarter were $6.3 million, an increase of $0.1 million compared to the prior quarter and in-line with expectations.

    Depreciation, depletion and amortization expense in the fourth quarter totaled $8.4 million, or $4.93 per Boe, compared to $8.1 million, or $4.62 per Boe, in the prior quarter.

    Net interest expense was $3.7 million in the fourth quarter, a decrease of $0.1 million compared to $3.8 million in the prior quarter.

    Amplify recorded a current income tax benefit of $2.1 million in the fourth quarter.

    Fourth Quarter and Full-Year Capital Investments

    Cash capital investment during the fourth quarter of 2024 was approximately $15.3 million. During the fourth quarter, the Company’s capital allocation was approximately 65% for Beta development drilling and facility projects, with the remainder distributed across the Company’s other assets.

    The following table details Amplify’s capital invested during the fourth quarter of 2024:

      Fourth Quarter   Full-Year
      2024 Capital   2024 Capital
      ($ MM)   ($ MM)
    Bairoil $ 0.2     $ 2.9  
    Beta $ 10.0     $ 53.7  
    Oklahoma $ 0.1     $ 3.2  
    East Texas / North Louisiana $ 2.8     $ 5.6  
    Eagle Ford (Non-op) $ 2.1     $ 4.1  
    Magnify Energy Services $ 0.1     $ 1.1  
    Total Capital Invested $ 15.3     $ 70.6  
           

    2025 Operations & Development Plan

    The following table details Amplify’s 2025 projected capital investments of $70 – $80 million:

    Capital Investment by Type (% of Total):  
    Beta Development 41 %
    Beta Facility 16 %
    Workovers & Other Facilities 25 %
    Non-op Development 18 %
    Total Capital Investments: 100 %
         

    Amplify’s 2025 operations and development plan is designed to continue unlocking the underlying value of the Company’s assets. To achieve this goal, we intend to 1) continue our development program at Beta, 2) execute on low-cost, high-return workover projects, and 3) reduce operating costs by increasing activity at Magnify.

    At Beta, Amplify intends to complete six wells in 2025. The C48 well, the first of the six wells to be completed in 2025, was drilled in the fourth quarter of 2024 and completed in mid-February. Similar to the A50 and C59 wells drilled in 2024, the completion of the C48 well was initially designed to target the D-sand. However, drilling conditions encountered in the D-sand and the quality of the C-Sand observed while drilling through the formation, led the team to alter the completion design and target the C-sand instead. The C48 will be the first test of the horizontal potential of the C-sand and we will share the results of the C48 well after obtaining sufficient initial production data.

    In 2024 Amplify brought online two new wells at Beta, the A50 well (brought online in June) and the C59 well (brought online in October), both of which exceeded internal projections and increased Beta’s overall production approximately 15% in January 2025 compared to January of 2024. Similarly, the six Beta completions planned in 2025 are expected to significantly increase Amplify’s oil production year-over-year. Additional information regarding the Beta development plan can be found in the investor presentation on the Company’s investor relations website.

    In addition to drilling and completing the six wells, Amplify intends to make continued investments in Beta’s facilities. In 2025, the Company expects to invest approximately $8 million to upgrade a 2-mile pipeline that ships all produced fluid from platform Eureka to platform Elly.

    At Bairoil, we continue to focus on enhancing water-alternating-gas injection performance through targeted well recompletions and conversions, which helps offset the asset’s nominal production declines. Our plan also includes an investment at our CO2 gas plant intended to reduce overall power usage and lease operating expenses in the second half of 2025.

    Amplify’s operating strategy in Oklahoma remains focused on prioritizing a stable free cash flow profile by managing production through an active workover program, artificial lift enhancements, extending well run-times and continuing to reduce operating costs.

    In East Texas, we are participating in the completion of four non-operated development projects, which we expect to be online by mid-year. The Company also continues to focus on prudent management of the field, such as optimizing field compression, artificial lift enhancement, and equipment insourcing, which is expected to improve the production profile and lower lease operating costs.

    In late 2023, we formed Magnify to in-source specific oilfield services to improve service reliability and to reduce overall operating expenses for the Company. Since its inception, Magnify has generated $3.7 million of Adjusted EBITDA with a capital investment of only $1.7 million. In 2025, we expect to invest an additional $1.4 million of capital in Magnify and project 2025 Adjusted EBITDA of approximately $5 million (with an annualized run rate of $6 million by year-end). We are evaluating additional accretive services for Magnify to service Amplify operated assets.

    In the Eagle Ford, we are participating in 14 gross (0.7 net) new development wells and two gross (0.4 net) recompletion projects. These non-operated wells, with highly accretive returns, are currently scheduled to be completed in the first half of 2025.

    Full-Year 2025 Guidance

    The following standalone guidance is subject to the cautionary statements and limitations described under the “Forward-Looking Statements” caption at the end of this press release. Amplify’s 2025 guidance is based on its current expectations regarding capital investment levels and flat commodity prices for crude oil of $71/Bbl (WTI) and natural gas of $3.75/MMBtu (Henry Hub), and on the assumption that market demand and prices for oil and natural gas will continue at levels that allow for economic production of these products. Additionally, the Company expects to invest approximately 90% of its capital in the first three quarters of the year primarily in connection with the Beta development program. Upon closing of the Transaction with Juniper, the Company will provide updated guidance to include the acquired assets.

    A summary of the standalone guidance is presented below:

      FY 2025E
           
      Low   High
           
    Net Average Daily Production      
    Oil (MBbls/d) 8.5 – 9.4
    NGL (MBbls/d) 3.0 – 3.3
    Natural Gas (MMcf/d) 45.0 – 51.0
    Total (MBoe/d) 19.0 – 21.0
           
    Commodity Price Differential / Realizations (Unhedged)      
    Oil Differential ($ / Bbl) ($3.25) – ($4.25)
    NGL Realized Price (% of WTI NYMEX) 27% – 31%
    Natural Gas Realized Price (% of Henry Hub) 85% – 92%
           
    Other Revenue      
    Magnify Energy Services ($ MM) $4 – $6
    Other ($ MM) $2 – $3
    Total ($ MM) $6 – $9
           
    Gathering, Processing and Transportation Costs      
    Oil ($ / Bbl) $0.65 – $0.85
    NGL ($ / Bbl) $2.75 – $4.00
    Natural Gas ($ / Mcf) $0.55 – $0.75
    Total ($ / Boe) $2.25 – $2.85
           
    Average Costs      
    Lease Operating ($ / Boe) $18.50 – $20.50
    Taxes (% of Revenue) (1) 6.0% – 7.0%
    Cash General and Administrative ($ / Boe) (2)(3) $3.40 – $3.90
           
    Adjusted EBITDA ($ MM) (2)(3) $100 – $120
    Cash Interest Expense ($ MM) $12 – $18
    Capital Expenditures ($ MM) $70 – $80
    Free Cash Flow ($ MM) (2)(3) $10 – $30
           
    (1) Includes production, ad valorem and franchise taxes
    (2) Refer to “Use of Non-GAAP Financial Measures” for Amplify’s definition and use of Cash G&A, Adjusted EBITDA and free cash flow, non-GAAP measures (cash income taxes, which are not included in free cash flow, are expected to range between $0 – $2 million for the year)
    (3) Amplify believes that a quantitative reconciliation of such forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require Amplify to predict the timing and likelihood of future transactions and other items that are difficult to accurately predict. Neither of these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measures is not provided.
     

    Hedging

    Recently, the Company took advantage of volatility in the futures market to add to its hedge position, further protecting future cash flows. Amplify executed crude oil swaps covering the second half of 2025 through year-end 2026 at a weighted average price of $68.10. The Company also added natural gas collars for a portion of 2027 with a weighted average floor of $3.63 per MMBtu and a weighted average ceiling of $3.98 per MMBtu.

    The following table reflects the hedged volumes under Amplify’s commodity derivative contracts and the average fixed floor and ceiling prices at which production is hedged for January 2025 through December 2027, as of March 4, 2025:

        2025       2026       2027  
               
    Natural Gas Swaps:          
    Average Monthly Volume (MMBtu)   585,000       500,000       87,500  
    Weighted Average Fixed Price ($) $ 3.75     $ 3.79     $ 3.76  
               
    Natural Gas Collars:          
    Two-way collars          
    Average Monthly Volume (MMBtu)   500,000       500,000       87,500  
    Weighted Average Ceiling Price ($) $ 3.90     $ 4.06     $ 4.20  
    Weighted Average Floor Price ($) $ 3.50     $ 3.55     $ 3.50  
               
    Oil Swaps:          
    Average Monthly Volume (Bbls)   128,583       72,750      
    Weighted Average Fixed Price ($) $ 70.85     $ 69.19      
               
    Oil Collars:          
    Two-way collars          
    Average Monthly Volume (Bbls)   59,500          
    Weighted Average Ceiling Price ($) $ 80.20          
    Weighted Average Floor Price ($) $ 70.00          
               

    Amplify has posted an updated investor presentation containing additional hedging information on its website, www.amplifyenergy.com, under the Investor Relations section.

    Annual Report on Form 10-K

    Amplify’s financial statements and related footnotes will be available in its Annual Report on Form 10-K for the year ended December 31, 2024, which Amplify expects to file with the SEC on March 5, 2025.

    About Amplify Energy

    Amplify Energy Corp. is an independent oil and natural gas company engaged in the acquisition, development, exploitation and production of oil and natural gas properties. Amplify’s operations are focused in Oklahoma, the Rockies (Bairoil), federal waters offshore Southern California (Beta), East Texas / North Louisiana, and the Eagle Ford (Non-op). For more information, visit www.amplifyenergy.com.

    Conference Call

    Amplify will host an investor teleconference tomorrow at 10 a.m. Central Time to discuss these operating and financial results. Interested parties may join the call by dialing (888) 999-5318 at least 15 minutes before the call begins and providing the Conference ID: AEC4Q24. A telephonic replay will be available for fourteen days following the call by dialing (800) 654-1563 and providing the Access Code: 71724906. A transcript and a recorded replay of the call will also be available on our website after the call.

    Forward-Looking Statements

    This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Terminology such as “may,” “will,” “would,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursue,” “target,” “outlook,” “continue,” the negative of such terms or other comparable terminology are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the Company’s expectations of plans, goals, strategies (including measures to implement strategies), objectives and anticipated results with respect thereto. These statements address activities, events or developments that we expect or anticipate will or may occur in the future, including things such as projections of results of operations, plans for growth, goals, future capital expenditures, competitive strengths, references to future intentions and other such references. These forward-looking statements involve risks and uncertainties and other factors that could cause the Company’s actual results or financial condition to differ materially from those expressed or implied by forward-looking statements. These include risks and uncertainties relating to, among other things: the Company’s ability to successfully complete the proposed business combination between the Company and certain of Juniper’s portfolio companies, or the “Mergers”; the Company’s evaluation and implementation of strategic alternatives; risks related to the redetermination of the borrowing base under the Company’s revolving credit facility; the Company’s ability to satisfy debt obligations; the Company’s need to make accretive acquisitions or substantial capital expenditures to maintain its declining asset base, including the existence of unanticipated liabilities or problems relating to acquired or divested business or properties; volatility in the prices for oil, natural gas and NGLs; the Company’s ability to access funds on acceptable terms, if at all, because of the terms and conditions governing the Company’s indebtedness, including financial covenants; general political and economic conditions, globally and in the jurisdictions in which we operate, including the Russian invasion of Ukraine, and ongoing conflicts in the Middle East, and the potential destabilizing effect such conflicts may pose for the global oil and natural gas markets; expectations regarding general economic conditions, including inflation; and the impact of local, state and federal governmental regulations, including those related to climate change and hydraulic fracturing, and the current administration’s potential reversal thereof. Please read the Company’s filings with the SEC, including “Risk Factors” in the Company’s Annual Report on Form 10-K, and if applicable, the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available on the Company’s Investor Relations website at https://www.amplifyenergy.com/investor-relations/sec-filings/default.aspx or on the SEC’s website at http://www.sec.gov, for a discussion of risks and uncertainties that could cause actual results to differ from those in such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements in this press release are qualified in their entirety by these cautionary statements. Except as required by law, the Company undertakes no obligation and does not intend to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.

    No Offer or Solicitation

    A portion of this press release relates to a proposed business combination transaction between the Company and certain Juniper portfolio companies. This communication is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, in any jurisdiction, pursuant to the proposed business combination transaction or otherwise, nor shall there be any sale, issuance, exchange or transfer of the securities referred to in this document in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

    Important Additional Information Regarding the Mergers Will Be Filed With the SEC

    In connection with the proposed transaction, the Company has filed a definitive proxy statement. The definitive proxy statement will be sent to the stockholders of the Company. The Company may also file other documents with the SEC regarding the proposed transaction. INVESTORS AND SECURITY HOLDERS OF AMPLIFY ARE ADVISED TO CAREFULLY READ THE DEFINITIVE PROXY STATEMENT AND ANY OTHER RELEVANT MATERIALS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGERS, THE PARTIES TO THE MERGERS AND THE RISKS ASSOCIATED WITH THE MERGERS. Investors and security holders may obtain a free copy of the definitive proxy statement and other relevant documents filed by Amplify with the SEC from the SEC’s website at www.sec.gov. Security holders and other interested parties will also be able to obtain, without charge, a copy of the definitive proxy statement and other relevant documents (when available) by (1) directing your written request to: 500 Dallas Street, Suite 1700, Houston, Texas or (2) contacting our Investor Relations department by telephone at (832) 219-9044 or (832) 219-9051. Copies of the documents filed by the Company with the SEC will be available free of charge on the Company’s website at http://www.amplifyenergy.com.

    Participants in the Solicitation

    Amplify and certain of its respective directors, executive officers and employees may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the stockholders of Amplify in connection with the proposed transaction, including a description of their respective direct or indirect interests, by security holdings or otherwise, is included in the definitive proxy statement filed with the SEC. Additional information regarding the Company’s directors and executive officers is also included in Amplify’s Notice of Annual Meeting of Stockholders and 2024 Proxy Statement, which was filed with the SEC on April 5, 2024. These documents are available free of charge as described above.

    Use of Non-GAAP Financial Measures

    This press release and accompanying schedules include the non-GAAP financial measures of Adjusted EBITDA, Adjusted net income, free cash flow, net debt, PV-10 and cash G&A. The accompanying schedules provide a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. Amplify’s non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flows provided by operating activities, standardized measure of discounted future net cash flows, or any other measure of financial performance calculated and presented in accordance with GAAP. Amplify’s non-GAAP financial measures may not be comparable to similarly titled measures of other companies because they may not calculate such measures in the same manner as Amplify does.

    Adjusted EBITDA. Amplify defines Adjusted EBITDA as net income (loss) plus Interest expense; Income tax expense (benefit); DD&A; Impairment of goodwill and long-lived assets (including oil and natural gas properties); Accretion of AROs; Loss or (gain) on commodity derivative instruments; Cash settlements received or (paid) on expired commodity derivative instruments; Amortization of gain associated with terminated commodity derivatives; Losses or (gains) on sale of assets and other, net; Share-based compensation expenses; Exploration costs; Acquisition and divestiture related expenses; Reorganization items, net; Severance payments; and Other non-routine items that we deem appropriate. Adjusted EBITDA is commonly used as a supplemental financial measure by management and external users of Amplify’s financial statements, such as investors, research analysts and rating agencies, to assess: (1) its operating performance as compared to other companies in Amplify’s industry without regard to financing methods, capital structures or historical cost basis; (2) the ability of its assets to generate cash sufficient to pay interest and support Amplify’s indebtedness; and (3) the viability of projects and the overall rates of return on alternative investment opportunities. Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies. The GAAP measures most directly comparable to Adjusted EBITDA are net income and net cash provided by operating activities.

    Adjusted Net Income. Amplify defines Adjusted Net Income as net income (loss) adjusted for loss (gain) on commodity derivative instruments, acquisition & divestiture related expenses, unusual and infrequent items, and the income tax expense or benefit of these adjustments using our federal statutory tax rate. Adjusted Net Income (Loss) excludes the impact of unusual and infrequent items affecting earnings that vary widely and unpredictably, including derivative gains and losses. This measure is not meant to disassociate these items from management’s performance but rather is intended to provide helpful information to investors interested in comparing our performance between periods. Adjusted net income (loss) is not considered to be an alternative to net income (loss) reported in accordance with GAAP.

    Free cash flow. Amplify defines free cash flow as Adjusted EBITDA, less cash interest expense and capital expenditures. Free cash flow is an important non-GAAP financial measure for Amplify’s investors since it serves as an indicator of the Company’s success in providing a cash return on investment. The GAAP measures most directly comparable to free cash flow are net income and net cash provided by operating activities.

    Net debt. Amplify defines net debt as the total principal amount drawn on the revolving credit facility less cash and cash equivalents. The Company uses net debt as a measure of financial position and believes this measure provides useful additional information to investors to evaluate the Company’s capital structure and financial leverage.

    PV-10. PV-10 is a non-GAAP financial measure that represents the present value of estimated future cash inflows from proved oil and natural gas reserves that are calculated using the unweighted arithmetic average first-day-of-the-month prices for the prior 12 months, less future development and operating costs, discounted at 10% per annum to reflect the timing of future cash flows. The most directly comparable GAAP measure to PV-10 is standardized measure. PV-10 differs from standardized measure in its treatment of estimated future income taxes, which are excluded from PV-10. Amplify believes the presentation of PV-10 provides useful information because it is widely used by investors in evaluating oil and natural gas companies without regard to specific income tax characteristics of such entities. PV-10 is not intended to represent the current market value of our estimated proved reserves. PV-10 should not be considered in isolation or as a substitute for the standardized measure as defined under GAAP.

    Cash G&A. Amplify defines cash G&A as general and administrative expense, less share-based compensation expense; acquisition and divestiture costs; bad debt expense; and severance payments. Cash G&A is an important non-GAAP financial measure for Amplify’s investors since it allows for analysis of G&A spend without regard to share-based compensation and other non-recurring expenses which can vary substantially from company to company. The GAAP measures most directly comparable to cash G&A is total G&A expenses.

    Contacts

    Jim Frew — Senior Vice President and Chief Financial Officer
    (832) 219-9044
    jim.frew@amplifyenergy.com

    Michael Jordan — Director, Finance and Treasurer
    (832) 219-9051
    michael.jordan@amplifyenergy.com


    Selected Operating and Financial Data (Tables)

    Amplify Energy Corp.
    Selected Financial Data – Unaudited
    Statements of Operations Data
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   September 30, 2024
           
    Revenues:      
    Oil and natural gas sales $ 67,189     $ 68,135  
    Other revenues   1,832       1,723  
    Total revenues   69,021       69,858  
           
    Costs and Expenses:      
    Lease operating expense   35,100       33,255  
    Pipeline incident loss   2,405       247  
    Gathering, processing and transportation   4,468       4,290  
    Exploration   10       –  
    Taxes other than income   5,356       5,997  
    Depreciation, depletion and amortization   8,418       8,102  
    General and administrative expense   9,486       8,251  
    Accretion of asset retirement obligations   2,156       2,125  
    Realized (gain) loss on commodity derivatives   (4,052 )     (6,375 )
    Unrealized (gain) loss on commodity derivatives   13,357       (18,672 )
    (Gain) loss on sale of properties   (1,367 )     –  
    Other, net   334       38  
    Total costs and expenses   75,671       37,258  
           
    Operating Income (loss)   (6,650 )     32,600  
           
    Other Income (Expense):      
    Interest expense, net   (3,684 )     (3,756 )
    Other income (expense)   (113 )     (130 )
    Total other income (expense)   (3,797 )     (3,886 )
           
    Income (loss) before reorganization items, net and income taxes   (10,447 )     28,714  
           
    Income tax benefit (expense) – current   2,132       (412 )
    Income tax benefit (expense) – deferred   886       (5,650 )
           
    Net income (loss) $ (7,429 )   $ 22,652  
           
    Earnings per share:      
    Basic and diluted earnings (loss) per share $ (0.19 )   $ 0.54  
           
    Selected Financial Data – Unaudited      
    Operating Statistics      
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s, except per unit data) December 31, 2024   September 30, 2024
           
    Oil and natural gas revenue:      
    Oil Sales $ 50,817     $ 54,353  
    NGL Sales   6,602       6,096  
    Natural Gas Sales   9,770       7,686  
    Total oil and natural gas sales – Unhedged $ 67,189     $ 68,135  
           
    Production volumes:      
    Oil Sales – MBbls   760       758  
    NGL Sales – MBbls   299       301  
    Natural Gas Sales – MMcf   3,883       4,165  
    Total – MBoe   1,706       1,752  
    Total – MBoe/d   18.5       19.0  
           
    Average sales price (excluding commodity derivatives):      
    Oil – per Bbl $ 66.82     $ 71.74  
    NGL – per Bbl $ 22.09     $ 20.29  
    Natural gas – per Mcf $ 2.52     $ 1.85  
    Total – per Boe $ 39.37     $ 38.88  
           
    Average unit costs per Boe:      
    Lease operating expense $ 20.57     $ 18.98  
    Gathering, processing and transportation $ 2.62     $ 2.45  
    Taxes other than income $ 3.14     $ 3.42  
    General and administrative expense $ 5.56     $ 4.71  
    Realized gain/(loss) on commodity derivatives $ 2.38     $ 3.64  
    Depletion, depreciation, and amortization $ 4.93     $ 4.62  
           
    Selected Financial Data – Unaudited      
    Asset Operating Statistics      
           
      Three Months   Three Months
      Ended   Ended
      December 31, 2024   September 30, 2024
           
    Production volumes – MBOE:      
    Bairoil   293       294  
    Beta   308       304  
    Oklahoma   436       454  
    East Texas / North Louisiana   609       638  
    Eagle Ford (Non-op)   60       62  
    Total – MBoe   1,706       1,752  
    Total – MBoe/d   18.5       19.0  
    % – Liquids   62 %     60 %
           
    Lease operating expense – $M:      
    Bairoil $ 11,800     $ 13,164  
    Beta   12,113       9,520  
    Oklahoma   3,948       3,644  
    East Texas / North Louisiana   5,887       5,592  
    Eagle Ford (Non-op)   1,351       1,335  
    Total Lease operating expense: $ 35,099     $ 33,255  
           
    Capital expenditures – $M:      
    Bairoil $ 190     $ 1,224  
    Beta   10,001       12,047  
    Oklahoma   168       1,449  
    East Texas / North Louisiana   2,758       2,303  
    Eagle Ford (Non-op)   2,125       1,157  
    Magnify Energy Services   82       44  
    Total Capital expenditures: $ 15,324     $ 18,224  
           
    Selected Financial Data – Unaudited              
    Balance Sheet Data              
                   
    (Amounts in $000s) December 31, 2024   September 30, 2024
                   
    Assets              
    Cash and Cash Equivalents $ –     $ –  
    Accounts Receivable   39,713       32,295  
    Other Current Assets   32,064       37,862  
    Total Current Assets $ 71,777     $ 70,157  
                   
    Net Oil and Gas Properties $ 386,218     $ 378,871  
    Other Long-Term Assets   289,081       290,188  
    Total Assets $ 747,076     $ 739,216  
                   
    Liabilities              
    Accounts Payable $ 13,231     $ 18,107  
    Accrued Liabilities   43,413       36,699  
    Other Current Liabilities   11,494       11,362  
    Total Current Liabilities $ 68,138     $ 66,168  
                   
    Long-Term Debt $ 127,000     $ 120,000  
    Asset Retirement Obligation   129,700       127,556  
    Other Long-Term Liabilities   13,326       10,822  
    Total Liabilities $ 338,164     $ 324,546  
                   
    Shareholders’ Equity              
    Common Stock & APIC $ 440,380     $ 438,709  
    Accumulated Earnings (Deficit)   (31,468 )     (24,039 )
    Total Shareholders’ Equity $ 408,912     $ 414,670  
                   
    Selected Financial Data – Unaudited      
    Statements of Cash Flows Data      
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   September 30, 2024
           
           
    Net cash provided by (used in) operating activities $ 12,455     $ 15,737  
    Net cash provided by (used in) investing activities   (19,379 )     (18,078 )
    Net cash provided by (used in) financing activities   6,924       1,839  
           
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Adjusted EBITDA and Free Cash Flow
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   September 30, 2024
           
    Reconciliation of Adjusted EBITDA to Net Cash Provided from Operating Activities:    
    Net cash provided by operating activities $ 12,455     $ 15,737  
    Changes in working capital   4,770       5,937  
    Interest expense, net   3,684       3,756  
    Cash settlements received on terminated commodity derivatives   –       (793 )
    Amortization of gain associated with terminated commodity derivatives   159       –  
    Amortization and write-off of deferred financing fees   (315 )     (310 )
    Exploration costs   10       –  
    Acquisition and divestiture related costs   1,424       186  
    Plugging and abandonment cost   754       372  
    Current income tax expense (benefit)   (2,132 )     412  
    Pipeline incident loss   2,405       247  
    (Gain) loss on sale of properties   (1,367 )     –  
    Adjusted EBITDA: $ 21,847     $ 25,544  
           
    Reconciliation of Free Cash Flow to Net Cash Provided from Operating Activities:    
    Adjusted EBITDA: $ 21,847     $ 25,544  
    Less: Cash interest expense   3,598       3,721  
    Less: Capital expenditures   15,324       18,224  
    Free Cash Flow: $ 2,925     $ 3,599  
           
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Adjusted EBITDA and Free Cash Flow
           
           
      Twelve Months   Twelve Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   December 31, 2023
           
    Reconciliation of Adjusted EBITDA1to Net Cash Provided from Operating Activities:    
    Net cash provided by operating activities $ 51,293     $ 141,590  
    Changes in working capital   32,272       (8,517 )
    Interest expense, net   14,599       17,719  
    Cash settlements received on terminated commodity derivatives   (793 )     (658 )
    Amortization of gain associated with terminated commodity derivatives   159       658  
    Amortization and write-off of deferred financing fees   (1,233 )     (1,980 )
    Exploration costs   61       57  
    Acquisition and divestiture related costs   1,633       219  
    Plugging and abandonment cost   1,640       2,239  
    Current income tax expense (benefit)   232       4,817  
    Pipeline incident loss   3,859       19,981  
    (Gain) loss on sale of properties   (1,367 )     –  
    LOPI – timing differences   –       (4,636 )
    Litigation settlement   –       (84,875 )
    Other   686       1,418  
    Adjusted EBITDA: $ 103,041     $ 88,032  
           
    Reconciliation of Free Cash Flow to Net Cash Provided from Operating Activities:    
    Adjusted EBITDA1: $ 103,041     $ 88,032  
    Less: Cash interest expense   14,438       16,263  
    Less: Capital expenditures   70,644       33,744  
    Free Cash Flow: $ 17,959     $ 38,025  
      (1) Adjusted EBITDA includes a revenue suspense release of $8.4 million for the twelve months ended December 31, 2024. See “Revenue Payables in Suspense” table for additional information.
         
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Adjusted EBITDA1 and Free Cash Flow
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   September 30, 2024
           
    Reconciliation of Adjusted EBITDA to Net Income (Loss):      
    Net income (loss) $ (7,429 )   $ 22,652  
    Interest expense, net   3,684       3,756  
    Income tax expense (benefit) – current   (2,132 )     412  
    Income tax expense (benefit) – deferred   (886 )     5,650  
    Depreciation, depletion and amortization   8,418       8,102  
    Accretion of asset retirement obligations   2,156       2,125  
    (Gains) losses on commodity derivatives   9,305       (25,047 )
    Cash settlements received (paid) on expired commodity derivative instruments   4,052       5,582  
    Amortization of gain associated with terminated commodity derivatives   159       –  
    Acquisition and divestiture related costs   1,424       186  
    Share-based compensation expense   1,686       1,815  
    (Gain) loss on sale of properties   (1,367 )     –  
    Exploration costs   10       –  
    Loss on settlement of AROs   334       38  
    Bad debt expense   28       26  
    Pipeline incident loss   2,405       247  
    Adjusted EBITDA1: $ 21,847     $ 25,544  
           
    Reconciliation of Free Cash Flow to Net Income (Loss):      
    Adjusted EBITDA: $ 21,847     $ 25,544  
    Less: Cash interest expense   3,598       3,721  
    Less: Capital expenditures   15,324       18,224  
    Free Cash Flow: $ 2,925     $ 3,599  
           
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Adjusted EBITDA and Free Cash Flow
           
           
      Twelve Months   Twelve Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   December 31, 2023
           
           
    Reconciliation of Adjusted EBITDA1to Net Income (Loss):      
    Net income (loss) $ 12,946     $ 392,750  
    Interest expense, net   14,599       17,719  
    Income tax expense (benefit) – current   232       4,817  
    Income tax expense (benefit) – deferred   2,196       (253,796 )
    Depreciation, depletion and amortization   32,586       28,004  
    Accretion of asset retirement obligations   8,438       7,951  
    (Gains) losses on commodity derivatives   2,047       (40,343 )
    Cash settlements received (paid) on expired commodity derivative instruments   17,617       (8,273 )
    Amortization of gain associated with terminated commodity derivatives   159       658  
    Acquisition and divestiture related costs   1,633       219  
    Share-based compensation expense   6,799       5,280  
    (Gain) loss on sale of properties   (1,367 )     –  
    Exploration costs   61       57  
    Loss on settlement of AROs   470       1,003  
    Bad debt expense   80       98  
    Pipeline incident loss   3,859       19,981  
    LOPI – timing differences   –       (4,636 )
    Litigation settlement   –       (84,875 )
    Other   686       1,418  
    Adjusted EBITDA: $ 103,041     $ 88,032  
           
    Reconciliation of Free Cash Flow to Net Income (Loss):      
    Adjusted EBITDA1: $ 103,041     $ 88,032  
    Less: Cash interest expense   14,438       16,263  
    Less: Capital expenditures   70,644       33,744  
    Free Cash Flow: $ 17,959     $ 38,025  
      (1) Adjusted EBITDA includes a revenue suspense release of $8.4 million for the twelve months ended December 31, 2024. See “Revenue Payables in Suspense” table for additional information.
         
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Net Income (Loss) to Adjusted Net Income (Loss)
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   September 30, 2024
           
    Reconciliation of Adjusted Net Income (Loss):      
    Net income (loss) $ (7,429 )   $ 22,652  
    Unrealized (gain) loss on commodity derivatives   13,357       (18,672 )
    Acquisition and divestiture related costs   1,424       186  
    Non-recurring costs:      
    Income tax expense (benefit) – deferred   (886 )     5,650  
    Gain on sale of properties   (1,367 )     –  
    Litigation settlement   –       –  
    Tax effect of adjustments   (12 )     (39 )
    Adjusted net income (loss) $ 5,087     $ 9,777  
           
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Net Income (Loss) to Adjusted Net Income (Loss)
           
      Twelve Months   Twelve Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   December 31, 2023
           
    Reconciliation of Adjusted Net Income (Loss):      
    Net income (loss) $ 12,946     $ 392,750  
    Unrealized (gain) loss on commodity derivatives   20,457       (47,958 )
    Acquisition and divestiture related costs   1,633       219  
    Non-recurring costs:      
    Income tax expense (benefit) – deferred1   2,196       (253,796 )
    Gain on sale of properties   (1,367 )     –  
    Litigation settlement2   –       (84,875 )
    Tax effect of adjustments3   (56 )     17,778  
    Adjusted net income (loss) $ 35,809     $ 24,118  
      (1) In 2023, we achieved three years of cumulative book income which resulted in the release of our valuation allowance of $284.9 million.
      (2) In 2023, non-recurring costs included a litigation settlement with the shipping companies and the containerships whose anchors struck the Company’s pipeline.
      (3) The federal statutory rates were utilized for all periods presented.
         
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Cash General and Administrative Expenses
                   
      Three Months      Three Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   September 30, 2024
                   
    General and administrative expense $ 9,486     $ 8,251  
    Less: Share-based compensation expense   1,686       1,815  
    Less: Acquisition and divestiture costs   1,424       186  
    Less: Bad debt expense   28       26  
    Less: Severance payments   —       —  
    Total Cash General and Administrative Expense $ 6,348     $ 6,224  
                   
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Cash General and Administrative Expenses
                   
      Twelve Months      Twelve Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   December 31, 2023
                   
    General and administrative expense $ 35,895     $ 32,984  
    Less: Share-based compensation expense   6,799       5,280  
    Less: Acquisition and divestiture costs   1,633       219  
    Less: Bad debt expense   80       98  
    Less: Severance payments   344       965  
    Total Cash General and Administrative Expense $ 27,039     $ 26,422  
                   
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Revenue Payables in Suspense
           
      Three Months      Twelve Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   December 31, 2024
           
           
    Oil and natural gas sales $ –     $ 4,023  
    Other revenues   –       4,829  
    Severance tax and other deducts   –       (433 )
    Total net revenue $ –     $ 8,419  
           
    Production volumes:      
    Oil (MBbls)   –       33  
    NGLs (MBbls)   –       31  
    Natural gas (MMcf)   –       441  
    Total (Mboe)   –       138  
    Total (Mboe/d)   –       0.38  
           
        As of       As of  
      December 31,       December 31,  
      2024       2023  
    Standardized measure of future net cash flows, discounted at 10% ($ M)   $608,239       $626,131  
    Add: PV of future income tax, discounted at 10% ($ M)   $127,526       $130,882  
    PV-10 ($ M)   $735,765       $757,013  
                   

    The MIL Network –

  • MIL-OSI: Zscaler Reports Second Quarter Fiscal 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Second Quarter Highlights

    • Revenue grows 23% year-over-year to $647.9 million
    • Calculated billings grows 18% year-over-year to $742.7 million
    • Deferred revenue grows 25% year-over-year to $1,878.5 million
    • GAAP net loss of $7.7 million compared to GAAP net loss of $28.5 million on a year-over-year basis
    • Non-GAAP net income of $127.1 million compared to non-GAAP net income of $99.4 million on a year-over-year basis

    SAN JOSE, Calif., March 05, 2025 (GLOBE NEWSWIRE) — Zscaler, Inc. (Nasdaq: ZS), the leader in cloud security, today announced financial results for its second quarter of fiscal year 2025, ended January 31, 2025.

    “Growing adoption of Zero Trust and AI is driving strong demand for our platform, resulting in yet another strong quarter that exceeded our guidance on both top and bottom line. We are leading the industry towards Zero Trust Everywhere by transforming security from legacy appliance-based to a Zero Trust architecture,” said Jay Chaudhry, Chairman and CEO of Zscaler. “By combining AI with Zero Trust, we are delivering several key innovations to secure our customers’ use of AI applications, creating new avenues of growth.”

    Second Quarter Fiscal 2025 Financial Highlights

    • Revenue: $647.9 million, an increase of 23% year-over-year.
    • Income (loss) from operations: GAAP loss from operations was $40.1 million, or 6% of revenue, compared to $45.5 million, or 9% of revenue, in the second quarter of fiscal 2024. Non-GAAP income from operations was $140.5 million, or 22% of revenue, compared to $103.2 million, or 20% of revenue, in the second quarter of fiscal 2024.
    • Net income (loss): GAAP net loss was $7.7 million, compared to $28.5 million in the second quarter of fiscal 2024. Non-GAAP net income was $127.1 million, compared to $99.4 million in the second quarter of fiscal 2024.
    • Net income (loss) per share, diluted: GAAP net loss per share was $0.05, compared to $0.19 in the second quarter of fiscal 2024. Non-GAAP net income per share was $0.78, compared to $0.63 in the second quarter of fiscal 2024.
    • Cash flows: Cash provided by operations was $179.4 million, or 27% of revenue, compared to $142.1 million, or 27% of revenue, in the second quarter of fiscal 2024. Free cash flow was $143.4 million, or 22% of revenue, compared to $100.8 million, or 19% of revenue, in the second quarter of fiscal 2024.
    • Deferred revenue: $1,878.5 million as of January 31, 2025, an increase of 25% year-over-year.
    • Cash, cash equivalents and short-term investments: $2,880.2 million as of January 31, 2025, an increase of $470.6 million from July 31, 2024.

    Recent Business Highlights

    • Introduced the industry’s first Zero Trust Segmentation solution for branches and cloud environments. The new solution improves customers’ security posture by preventing lateral movement from ransomware attacks, while cutting firewall and infrastructure spend in half.
    • Started offering the Zero Trust Network Access (ZTNA) service natively integrated within RISE with SAP. Zscaler Private Access™ (ZPA™) for SAP helps enable SAP customers with on-premises ERP workloads to simplify and de-risk their cloud migration, without the complexity and risk associated with traditional VPNs.
    • Appointed Phil Tee as EVP of AI Innovations. Tee previously co-founded an enterprise AI-driven provider of intelligent monitoring solutions for DevOps and ITOps.
    • Achieved FedRAMP authorization for Zscaler Zero Trust Browser. The authorization assures agencies of compliance with rigorous security standards, facilitating cloud adoption and streamlining the procurement process.
    • Announced that Nokia, a multinational technology leader, is migrating from its traditional firewall-based security model to the Zscaler Zero Trust Exchange to enhance its security, improve operational efficiency, and strengthen cloud capabilities.

    Change in Non-GAAP Measures Presentation

    Effective August 1, 2024, the beginning of our fiscal year ending July 31, 2025, we are using a long-term projected non-GAAP tax rate of 23% for the purpose of determining our non-GAAP net income and non-GAAP net income per share to provide better consistency across interim reporting periods in fiscal 2025 and beyond. Given the significant growth of our business and non-GAAP operating income, we believe this change is necessary to better reflect the performance of our business. We will continue to assess the appropriate non-GAAP tax rate on a regular basis, which could be subject to changes for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or other changes to our strategy or business operations. Prior period amounts have been recast to reflect this change.

    Financial Outlook

    For the third quarter of fiscal 2025, we expect:

    • Revenue of $665 million to $667 million
    • Non-GAAP income from operations of $140 million to $142 million
    • Non-GAAP net income per share of approximately $0.75 to $0.76, assuming approximately 163 million fully diluted shares outstanding and a non-GAAP tax rate of 23%

    For the full year of fiscal 2025, we expect:

    • Revenue of approximately $2.640 billion to $2.654 billion
    • Calculated billings of $3.153 billion to $3.168 billion
    • Non-GAAP income from operations of $562 million to $572 million
    • Non-GAAP net income per share of $3.04 to $3.09, assuming approximately 163.5 million fully diluted shares outstanding and a non-GAAP tax rate of 23%

    These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

    Guidance for non-GAAP income from operations excludes stock-based compensation expense and related employer payroll taxes, amortization of debt issuance costs, and amortization expense of acquired intangible assets. We have not reconciled our expectations of non-GAAP income from operations and non-GAAP net income per share to their most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. For those reasons, we are also unable to address the probable significance of the unavailable information, the variability of which may have a significant impact on future results. Accordingly, a reconciliation for the guidance for non-GAAP income from operations and non-GAAP net income per share is not available without unreasonable effort.

    For further information regarding why we believe that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the “Explanation of Non-GAAP Financial Measures” section of this press release.

    Conference Call and Webcast Information

    Zscaler will host a conference call for analysts and investors to discuss its second quarter of fiscal 2025 and outlook for its third quarter of fiscal 2025 and full year fiscal 2025 today at 1:30 p.m. Pacific time (4:30 p.m. Eastern time).

    Date: Wednesday, March 5, 2025
    Time: 1:30 p.m. PT
    Webcast: https://ir.zscaler.com 
    Dial-in: To join by phone, register at the following link: (https://register.vevent.com/register/BI81201a44d72f48cab018ea30aa79b03b). After registering, you will be provided with a dial-in number and a personal PIN that you will need to join the call.
       

    Upcoming Conferences

    Third quarter of fiscal 2025 investor conference participation schedule:

    • Morgan Stanley Technology, Media and Telecom Conference in San Francisco
      Thursday, March 6, 2025
    • Susquehanna Travel, Tech + Gambling Forum (Virtual)
      Friday, March 7, 2025
    • Loop Capital Markets 2025 Investor Conference (Virtual)
      Monday, March 10, 2025
    • Stifel Technology 2025 Technology One-on-One Conference in New York City
      Tuesday, March 11, 2025
    • Cantor Global Technology Conference in New York City
      Wednesday, March 12, 2025

    Sessions which offer a webcast will be available on the Investor Relations section of the Zscaler website at https://ir.zscaler.com/

    Forward-Looking Statements

    This press release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, statements regarding our future financial and operating performance, including our financial outlook for the third quarter of fiscal 2025 and full year fiscal 2025. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including but not limited to: macroeconomic influences and instability, geopolitical events, operations and financial results and the economy in general; risks related to the use of AI in our platform; our ability to identify and effectively implement the necessary changes to address execution challenges; risks associated with managing our rapid growth, including fluctuations from period to period; our limited experience with new products and subscriptions and support introductions and the risks associated with new products and subscription and support offerings, including the discovery of software bugs; our ability to attract and retain new customers; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscription and support; rapidly evolving technological developments in the market for network security products and subscription and support offerings and our ability to remain competitive; length of sales cycles; useful lives of our assets and other estimates; and general market, political, economic and business conditions.

    Additional risks and uncertainties that could affect our financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth from time to time in our filings and reports with the Securities and Exchange Commission (“SEC”), including our Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2024 filed on December 5, 2024 and our Annual Report on Form 10-K for the fiscal year ended July 31, 2024 filed on September 12, 2024, as well as future filings and reports by us, copies of which are available on our website at ir.zscaler.com and on the SEC’s website at www.sec.gov. You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

    Use of Non-GAAP Financial Information

    We believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. For further information regarding why we believe that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the “Explanation of Non-GAAP Financial Measures” section of this press release.

    About Zscaler

    Zscaler (Nasdaq: ZS) accelerates digital transformation so customers can be more agile, efficient, resilient, and secure. The Zscaler Zero Trust Exchange™ platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Distributed across more than 160 data centers globally, the SASE-based Zero Trust Exchange is the world’s largest in-line cloud security platform.

    Zscaler™ and the other trademarks listed at https://www.zscaler.com/legal/trademarks are either (i) registered trademarks or service marks or (ii) trademarks or service marks of Zscaler, Inc. in the United States and/or other countries. Any other trademarks are the properties of their respective owners.

    Investor Relations Contacts

    Ashwin Kesireddy
    VP, Investor Relations and Strategic Finance
    (415) 798-1475
    ir@zscaler.com

    Natalia Wodecki
    Media Relations Contact
    press@zscaler.com

     
    ZSCALER, INC.
    Condensed Consolidated Statements of Operations
    (in thousands, except per share amounts)
    (unaudited)
                   
      Three Months Ended   Six Months Ended
      January 31,   January 31,
      2025   2024   2025   2024
    Revenue $ 647,900     $ 524,999     $ 1,275,855     $ 1,021,702  
    Cost of revenue(1) (2)   148,498       117,199       289,960       228,593  
    Gross profit   499,402       407,800       985,895       793,109  
    Operating expenses:              
    Sales and marketing(1) (2)   307,872       276,481       613,959       543,592  
    Research and development(1) (2)   170,860       122,181       325,114       235,720  
    General and administrative(1)   60,810       54,595       117,629       105,311  
    Total operating expenses   539,542       453,257       1,056,702       884,623  
    Loss from operations   (40,140 )     (45,457 )     (70,807 )     (91,514 )
    Interest income   30,878       28,385       60,926       54,327  
    Interest expense(3)   (2,339 )     (3,605 )     (5,482 )     (6,764 )
    Other income (expense), net   (4,936 )     172       (5,588 )     (1,040 )
    Loss before income taxes   (16,537 )     (20,505 )     (20,951 )     (44,991 )
    Provision for (benefit from) for income taxes(4)   (8,813 )     7,964       (1,176 )     16,961  
    Net loss $ (7,724 )   $ (28,469 )   $ (19,775 )   $ (61,952 )
    Net loss per share, basic and diluted $ (0.05 )   $ (0.19 )   $ (0.13 )   $ (0.42 )
    Weighted-average shares used in computing net loss per share, basic and diluted   153,672       148,951       153,114       148,287  
    (1) Includes stock-based compensation expense and related payroll taxes as follows:
    Cost of revenue $ 17,619     $ 13,434     $ 33,412     $ 26,389  
    Sales and marketing   69,979       65,855       134,845       124,523  
    Research and development   65,896       44,120       124,761       85,163  
    General and administrative   22,862       22,127       43,912       42,190  
    Total $ 176,356     $ 145,536     $ 336,930     $ 278,265  
    (2) Includes amortization expense of acquired intangible assets as follows:
    Cost of revenue $ 3,815     $ 2,717     $ 7,490     $ 5,434  
    Sales and marketing   425       226       850       452  
    Research and development   5       140       145       233  
    Total $ 4,245     $ 3,083     $ 8,485     $ 6,119  
    (3) Includes amortization of debt issuance costs $ 982     $ 978     $ 1,963     $ 1,955  
    (4) Benefit from a release of valuation allowance (*) $ 17,188     $ —     $ 17,188     $ —  
                                   

    (*) During the three months ended January 31, 2025, we recognized a tax benefit of $17.2 million attributable to the release of the valuation allowance on United Kingdom (U.K.) deferred tax assets.

     
    ZSCALER, INC.
    Condensed Consolidated Balance Sheets
    (in thousands)
    (unaudited)
      January 31,   July 31,
      2025   2024
    Assets      
    Current assets:      
    Cash and cash equivalents $ 1,758,506     $ 1,423,080  
    Short-term investments   1,121,734       986,574  
    Accounts receivable, net   514,314       736,529  
    Deferred contract acquisition costs   156,079       148,873  
    Prepaid expenses and other current assets   114,573       101,561  
    Total current assets   3,665,206       3,396,617  
    Property and equipment, net   422,315       383,121  
    Operating lease right-of-use assets   83,703       89,758  
    Deferred contract acquisition costs, noncurrent   284,286       296,525  
    Acquired intangible assets, net   55,658       63,835  
    Goodwill   417,730       417,029  
    Other noncurrent assets   77,070       58,083  
    Total assets $ 5,005,968     $ 4,704,968  
           
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable $ 24,600     $ 23,309  
    Accrued expenses and other current liabilities   90,626       91,708  
    Accrued compensation   140,430       160,810  
    Deferred revenue   1,595,780       1,643,919  
    Convertible senior notes   1,147,513       1,142,275  
    Operating lease liabilities   49,917       50,866  
    Total current liabilities   3,048,866       3,112,887  
    Deferred revenue, noncurrent   282,725       251,055  
    Operating lease liabilities, noncurrent   40,912       44,824  
    Other noncurrent liabilities   26,119       22,100  
    Total liabilities   3,398,622       3,430,866  
    Stockholders’ Equity      
    Common stock   155       152  
    Additional paid-in capital   2,797,350       2,426,819  
    Accumulated other comprehensive loss   (22,304 )     (4,789 )
    Accumulated deficit   (1,167,855 )     (1,148,080 )
    Total stockholders’ equity   1,607,346       1,274,102  
    Total liabilities and stockholders’ equity $ 5,005,968     $ 4,704,968  
                   
     
    ZSCALER, INC.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
    (unaudited)
      Six Months Ended
      January 31,
      2025   2024
    Cash Flows from Operating Activities      
    Net loss $ (19,775 )   $ (61,952 )
    Adjustments to reconcile net loss to cash provided by operating activities:      
    Depreciation and amortization expense   45,911       29,361  
    Amortization expense of acquired intangible assets   8,485       6,119  
    Amortization of deferred contract acquisition costs   79,191       61,504  
    Amortization of debt issuance costs   1,963       1,955  
    Non-cash operating lease costs   31,565       21,633  
    Stock-based compensation expense   329,295       269,570  
    Accretion of investments purchased at a discount   (10,110 )     (9,582 )
    Unrealized losses on hedging transactions   3,036       2,841  
    Deferred income taxes   (17,359 )     (1,437 )
    Other   1,303       1,403  
    Changes in operating assets and liabilities, net of effects of business acquisitions:      
    Accounts receivable   222,043       102,374  
    Deferred contract acquisition costs   (74,158 )     (67,744 )
    Prepaid expenses, other current and noncurrent assets   (12,144 )     2,660  
    Accounts payable   98       (2,412 )
    Accrued expenses, other current and noncurrent liabilities   (11,481 )     6,020  
    Accrued compensation   (20,380 )     562  
    Deferred revenue   (16,469 )     62,477  
    Operating lease liabilities   (30,246 )     (22,477 )
    Net cash provided by operating activities   510,768       402,875  
    Cash Flows from Investing Activities      
    Purchases of property, equipment and other assets   (32,043 )     (59,553 )
    Capitalized internal-use software   (43,416 )     (17,816 )
    Payments for business acquisitions, net of cash acquired   (834 )     (4,377 )
    Purchase of strategic investments   (786 )     (2,000 )
    Purchases of short-term investments   (729,066 )     (761,796 )
    Proceeds from maturities of short-term investments   605,003       594,687  
    Proceeds from sale of short-term investments   —       2,105  
    Net cash used in investing activities   (201,142 )     (248,750 )
    Cash Flows from Financing Activities      
    Proceeds from issuance of common stock upon exercise of stock options   3,456       3,848  
    Proceeds from issuance of common stock under the employee stock purchase plan   22,344       18,407  
    Net cash provided by financing activities   25,800       22,255  
    Net increase in cash and cash equivalents   335,426       176,380  
    Cash and cash equivalents at beginning of period   1,423,080       1,262,206  
    Cash and cash equivalents at end of period $ 1,758,506     $ 1,438,586  
                   
     
    ZSCALER, INC.
    Reconciliation of GAAP to Non-GAAP Financial Measures
    (in thousands, except percentages)
    (unaudited)
                   
      Three Months Ended   Six Months Ended
      January 31,   January 31,
      2025   2024   2025   2024
                   
    Revenue $ 647,900     $ 524,999     $ 1,275,855     $ 1,021,702  
                   
    Non-GAAP Gross Profit and Non-GAAP Gross Margin              
    GAAP gross profit $ 499,402     $ 407,800     $ 985,895     $ 793,109  
    Add: Stock-based compensation expense and related payroll taxes   17,619       13,434       33,412       26,389  
    Add: Amortization expense of acquired intangible assets   3,815       2,717       7,490       5,434  
    Non-GAAP gross profit $ 520,836     $ 423,951     $ 1,026,797     $ 824,932  
    GAAP gross margin   77 %     78 %     77 %     78 %
    Non-GAAP gross margin   80 %     81 %     80 %     81 %
                   
    Non-GAAP Income from Operations and Non-GAAP Operating Margin              
    GAAP loss from operations $ (40,140 )   $ (45,457 )   $ (70,807 )   $ (91,514 )
    Add: Stock-based compensation expense and related payroll taxes   176,356       145,536       336,930       278,265  
    Add: Amortization expense of acquired intangible assets   4,245       3,083       8,485       6,119  
    Non-GAAP income from operations $ 140,461     $ 103,162     $ 274,608     $ 192,870  
    GAAP operating margin (6 )%   (9 )%   (6 )%   (9 )%
    Non-GAAP operating margin   22 %     20 %     22 %     19 %
                                   
     
    ZSCALER, INC.
    Reconciliation of GAAP to Non-GAAP Financial Measures
    (in thousands, except per share amounts)
    (unaudited)
                   
      Three Months Ended   Six Months Ended
      January 31,   January 31,
      2025   2024   2025   2024
    Non-GAAP Net Income per Share, Diluted              
    GAAP net loss $ (7,724 )   $ (28,469 )   $ (19,775 )   $ (61,952 )
    Add: GAAP provision for (benefit from) income taxes   (8,813 )     7,964       (1,176 )     16,961  
    GAAP loss before income taxes   (16,537 )     (20,505 )     (20,951 )     (44,991 )
    Add:              
    Stock-based compensation expense and related payroll taxes   176,356       145,536       336,930       278,265  
    Amortization expense of acquired intangible assets   4,245       3,083       8,485       6,119  
    Amortization of debt issuance costs   982       978       1,963       1,955  
    Non-GAAP net income before income taxes   165,046       129,092       326,427       241,348  
    Non-GAAP provision for income taxes(1)   37,965       29,691       75,083       55,510  
    Non-GAAP net income $ 127,081     $ 99,401     $ 251,344     $ 185,838  
                   
    GAAP provision for (benefit from) income taxes $ (8,813 )   $ 7,964     $ (1,176 )   $ 16,961  
    Add: Income tax and other tax adjustments(2)   46,778       21,727       76,259       38,549  
    Non-GAAP provision for income taxes(1) $ 37,965     $ 29,691     $ 75,083     $ 55,510  
    Non-GAAP effective tax rate(1)   23 %     23 %     23 %     23 %
                   
    Non-GAAP net income   127,081       99,401       251,344       185,838  
    Add: Non-GAAP interest expense, net of tax related to the convertible senior notes   276       276       552       552  
    Numerator used in computing non-GAAP net income per share, diluted $ 127,357     $ 99,677     $ 251,896     $ 186,390  
                   
    GAAP net loss per share, diluted $ (0.05 )   $ (0.19 )   $ (0.13 )   $ (0.42 )
    Stock-based compensation expense and related payroll taxes   1.09       0.91       2.08       1.75  
    Amortization expense of acquired intangible assets   0.03       0.02       0.05       0.04  
    Amortization of debt issuance costs   0.01       0.01       0.01       0.01  
    Income tax and other tax adjustments(2)   (0.29 )     (0.14 )     (0.47 )     (0.24 )
    Non-GAAP interest expense related to the convertible senior notes   —       —       —       —  
    Adjustment to total fully diluted earnings per share(3)   (0.01 )     0.02       0.01       0.03  
    Non-GAAP net income per share, diluted $ 0.78     $ 0.63     $ 1.55     $ 1.17  
                   
    Weighted-average shares used in computing GAAP net loss per share, diluted   153,672       148,951       153,114       148,287  
    Add: Outstanding potentially dilutive equity incentive awards   2,988       4,670       2,848       4,226  
    Add: Convertible senior notes   7,626       7,626       7,626       7,626  
    Less: Antidilutive impact of capped call transactions(4)   (1,769 )     (2,093 )     (1,505 )     (1,254 )
    Weighted-average shares used in computing non-GAAP net income per share, diluted   162,517       159,154       162,083       158,885  

    ___________

    (1) Effective August 1, 2024, the beginning of our fiscal year ending July 31, 2025, we are using a long-term projected non-GAAP tax rate of 23% for the purpose of determining our non-GAAP net income and non-GAAP net income per share to provide better consistency across interim reporting periods in fiscal 2025 and beyond. Given the significant growth of our business and non-GAAP operating income, we believe this change is necessary to better reflect the performance of our business. We will continue to assess the appropriate non-GAAP tax rate on a regular basis, which could be subject to changes for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or other changes to our strategy or business operations. Prior period amounts have been recast to reflect this change.

    (2) Consists of income tax adjustments related to our long-term non-GAAP effective tax rate of 23%. In the three months ended January 31, 2025, the adjustments exclude the tax benefit of $17.2 million attributable to the release of the valuation allowance on U.K. deferred tax assets.

    (3) The sum of the fully diluted earnings per share impact of individual reconciling items may not total to fully diluted non-GAAP net income per share due to the weighted-average shares used in computing the GAAP net loss per share differs from the weighted-average shares used in computing the non-GAAP net income per share, and due to rounding of the individual reconciling items. The GAAP net loss per share calculation uses a lower share count as it excludes potentially dilutive shares, which are included in calculating the non-GAAP net income per share.

    (4) We exclude the in-the-money portion of the convertible senior notes for non-GAAP weighted-average diluted shares as they are covered by our capped call transactions. Our outstanding capped call transactions are antidilutive under GAAP but are expected to mitigate the dilutive effect of the convertible senior notes and therefore are included in the calculation of non-GAAP diluted shares outstanding. The capped calls have an antidilutive impact when the average stock price of our common stock in a given period is higher than their exercise price.

     
    ZSCALER, INC.
    Reconciliation of GAAP to Non-GAAP Financial Measures
    (in thousands, except percentages)
    (unaudited)
                   
      Three Months Ended   Six Months Ended
      January 31,   January 31,
      2025   2024   2025   2024
    Calculated Billings              
    Revenue $ 647,900     $ 524,999     $ 1,275,855     $ 1,021,702  
    Add: Total deferred revenue, end of period   1,878,505       1,502,175       1,878,505       1,502,175  
    Less: Total deferred revenue, beginning of period   (1,783,720 )     (1,399,544 )     (1,894,974 )     (1,439,676 )
    Calculated billings $ 742,685     $ 627,630     $ 1,259,386     $ 1,084,201  
                   
    Free Cash Flow              
    Net cash provided by operating activities $ 179,433     $ 142,069     $ 510,768     $ 402,875  
    Less: Purchases of property, equipment and other assets   (15,018 )     (30,894 )     (32,043 )     (59,553 )
    Less: Capitalized internal-use software   (20,987 )     (10,387 )     (43,416 )     (17,816 )
    Free cash flow $ 143,428     $ 100,788     $ 435,309     $ 325,506  
                   
    Free Cash Flow Margin              
    Net cash provided by operating activities, as a percentage of revenue   27 %     27 %     40 %     39 %
    Less: Purchases of property, equipment and other assets, as a percentage of revenue (2 )%   (6 )%   (3 )%   (6 )%
    Less: Capitalized internal-use software, as a percentage of revenue (3 )%   (2 )%   (3 )%   (2 )%
    Free cash flow margin   22 %     19 %     34 %     32 %
                                   
     
    ZSCALER, INC.
    Explanation of Non-GAAP Financial Measures
     

    In addition to our results determined in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, as it has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In particular, free cash flow is not a substitute for cash provided by operating activities. Additionally, the utility of free cash flow as a measure of our liquidity is further limited as it does not represent the total increase or decrease in our cash balance for a given period. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. A reconciliation of our historical non-GAAP financial measures to their most directly comparable financial measures stated in accordance with GAAP has been included in this press release. Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures and key metrics as analytical tools. Investors are encouraged to review these reconciliations, and not to rely on any single financial measure to evaluate our business.

    Expenses Excluded from Non-GAAP Measures

    Stock-based compensation expense is excluded primarily because it is a non-cash expense that management believes is not reflective of our ongoing operational performance. Employer payroll taxes related to stock-based compensation, which is a cash expense, are excluded because these are tied to the timing and size of the exercise or vesting of the underlying equity incentive awards and the price of our common stock at the time of vesting or exercise, which may vary from period to period independent of the operating performance of our business. Amortization expense of acquired intangible assets and amortization of debt issuance costs from the convertible senior notes are excluded because these are non-cash expenses and are not reflective of our ongoing operational performance.

    Effective August 1, 2024, the beginning of our fiscal year ending July 31, 2025, we are using a long-term projected non-GAAP tax rate of 23% for the purpose of determining our non-GAAP net income and non-GAAP net income per share to provide better consistency across interim reporting periods. Given the significant growth of our business and non-GAAP operating income, we believe this change is necessary to better reflect the performance of our business. We will continue to assess the appropriate non-GAAP tax rate on a regular basis, which could be subject to changes for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or other changes to our strategy or business operations. Prior period amounts have been recast to reflect this change.

    Non-GAAP Financial Measures

    Non-GAAP Gross Profit and Non-GAAP Gross Margin. We define non-GAAP gross profit as GAAP gross profit excluding stock-based compensation expense and related employer payroll taxes and amortization expense of acquired intangible assets. We define non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue.

    Non-GAAP Income from Operations and Non-GAAP Operating Margin. We define non-GAAP income from operations as GAAP loss from operations excluding stock-based compensation expense and related employer payroll taxes and amortization expense of acquired intangible assets. We define non-GAAP operating margin as non-GAAP income from operations as a percentage of revenue.

    Non-GAAP Net Income per Share, Diluted. We define non-GAAP net income as GAAP net loss excluding stock-based compensation expense and related employer payroll taxes, amortization expense of acquired intangible assets, amortization of debt issuance costs, and the non-GAAP provision for income taxes adjustment. We define non-GAAP net income per share, diluted, as non-GAAP net income plus the non-GAAP interest expense related to the convertible senior notes divided by the weighted-average diluted shares outstanding, which includes the effect of potentially diluted common stock equivalents outstanding during the period and the anti-dilutive impact of the capped call transactions entered into in connection with the convertible senior notes.

    Calculated Billings. We define calculated billings as revenue plus the change in deferred revenue in a period. Calculated billings in any particular period aims to reflect amounts invoiced for subscriptions to access our cloud platform, together with related support services for our new and existing customers. We typically invoice our customers annually in advance, and to a lesser extent quarterly in advance, monthly in advance or multi-year in advance.

    Free Cash Flow and Free Cash Flow Margin. We define free cash flow as net cash provided by operating activities less purchases of property, equipment and other assets and capitalized internal-use software. We define free cash flow margin as free cash flow divided by revenue. We believe that free cash flow and free cash flow margin are useful indicators of liquidity that provide information to management and investors about the amount of cash generated from our operations that, after the investments in property, equipment and other assets and capitalized internal-use software, can be used for strategic initiatives.

    The MIL Network –