NewzIntel.com

Category: Politics

  • MIL-OSI USA: Senate Public Safety Chairman John Albers, Majority Leader Steve Gooch Demand Border Security Action Following Murder of Minelys Zoe Rodriguez-Ramirez

    Source: US State of Georgia

    ATLANTA (October 31, 2024) — Senate Committee on Public Safety Chairman, Sen. John Albers (R–Roswell) and Senate Majority Leader Sen. Steve Gooch (R–Dahlonega) today issued statements following the tragic murder of Minelys Zoe Rodriguez-Ramirez, whose body was recovered last week after her disappearance from Cornelia, Georgia.

    Sen. Albers expressed his thoughts regarding the events leading to Rodriguez-Ramirez’s death, drawing a strong connection to a lack of border security and urging immediate federal action:

    “It is with profound sadness and frustration that we mourn the senseless murder of Minelys Zoe Rodriguez-Ramirez. Known as ‘Mimi’ to her friends, 25-year-old Rodriguez-Ramirez worked hard to build a life here in Georgia. She was last seen on October 22, 2024, at a Walmart in Cornelia, and her body was tragically found a week later. She leaves behind a grieving family, including a 9-year-old daughter.

    Mimi was a legal immigrant from Puerto Rico who followed every step of the process to live and work in the United States. She secured employment with Mt. Vernon Hills, Inc. and tirelessly supported her daughter, mother and fiancé. She did everything right, yet her life was cut short because of our federal government’s repeated failure to protect its own citizens.

    The suspected murderer, Angel DeJesus Rivera-Sanches, an illegal immigrant who had no right to be here, was apprehended in Atlanta as he tried to flee back to Mexico. He has been charged with kidnapping in connection to her disappearance.

    Once again, our open-border policies have claimed another innocent life on American soil, right here in Georgia. I commend the swift work of the Habersham Sheriff’s Office, the Georgia Bureau of Investigation, and all agencies involved in apprehending this suspect. My colleagues in the Senate and I will remain unwavering in our commitment to securing our state and nation. Earlier this year, we acted decisively with House Bill 1105, the Georgia Criminal Alien Track and Report Act, which I proudly carried in the Senate and was signed into law by Governor Brian Kemp.

    How many more lives must be lost due to the open-border policies in Washington, D.C.? The administration’s failure to address this issue impacts families here in Georgia and across the United States. Earlier this year, our community mourned the tragic death of Laken Riley, a resident of my district, and now we mourn Mimi Rodriguez-Ramirez. These were preventable tragedies, and we will not forget them. Say their names.”

    Senate Majority Leader Steve Gooch echoed Sen. Albers’ sentiments, calling for immediate and stronger federal action on border control to prevent such tragedies in the future:

    “The murder of Minelys Zoe Rodriguez-Ramirez, so close to my district, is a tragedy that should prompt us all to question how much longer we will put our own people at risk due to Washington’s failure to secure our borders. Mimi followed the law, worked hard and raised a family here, yet her life was stolen by an illegal alien who had no right to be in this country. Enough is enough. We must protect our families, uphold the dignity of those who respect our laws and restore the security that every community deserves.”

    # # # #

    Sen. John Albers serves as Chairman of the Senate Committee on Public Safety. He represents the 56th Senate District which includes portions of Cherokee, Cobb and North Fulton counties. He may be reached at his office at 404.463.8055 or by email at john.albers@senate.ga.gov.

    Sen. Steve Gooch serves as Senate Majority Leader. He represents the 51st Senate District which includes Dawson, Fannin, Gilmer, Lumpkin, Union and Pickens counties and a portion of White County. He may be reached at 404.656.7872 or via email at steve.gooch@senate.ga.gov.

    For all media inquiries, please reach out to SenatePressInquiries@senate.ga.gov.

    MIL OSI USA News –

  • MIL-OSI Africa: African health ministers, delegates adopt declaration on climate change and health

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

    HARARE, Zimbabwe, October 31, 2024/APO Group/ —

    Health ministers and delegates from 20 African countries today adopted a landmark declaration to enhance climate resilience within health systems and address the profound health impacts of climate change on the continent.

    The Harare Declaration, endorsed during the first Climate and Health Africa Conference (CHAC), calls for immediate and collaborative action from a wide array of stakeholders—including governments, academic institutions, funding agencies and civil society—to combat the detrimental health effects of climate change and improve the well-being of African populations.

    Speaking at the official opening of the conference, President Emmerson Mnangagwa of Zimbabwe said, “Climate change is not merely an environmental disaster. It is a public health emergency and I firmly believe the recommendations from this conference will pave the way for a healthier and more sustainable continent, where no one and no place is left behind”.

    The declaration which aligns with the newly WHO adopted framework for building climate-resilient and sustainable health systems in the African region, was endorsed by health ministers and representatives from countries engaged in the WHO-led Alliance for Transformative Action on Climate and Health Initiative (ATACH) and over 500 participants at CHAC.

    “Our region deals with multiple climate-induced emergencies every year. Ensuring health systems resilience is key. I applaud the commitments taken by health policy makers to build climate-resilient health systems that can adapt to and mitigate the impacts of climate change,” said Dr Matshidiso Moeti, WHO Regional Director for Africa.  

    Africa faces an escalating burden of climate-sensitive diseases, with increasing transmission of vector- and waterborne illnesses. Recent statistics reveal a 14% rise in malaria transmissions in 2023, potentially putting an additional 147-171 million people at risk by 2030. Additionally, 18 African countries reported cholera outbreaks linked to natural disasters, contributing to a staggering 836 600 cases between January 2023 and March 2024, alongside widespread malnutrition and population displacement.

    Recognizing the disproportionate burden of climate-related health risks faced by African populations, the declaration presents a comprehensive strategy to address these challenges. It emphasizes the need to strengthen research and knowledge generation by investing in studies that assess the specific impacts of climate change on health in Africa and identify effective interventions. Enhancing policy and decision-making is also crucial by integrating climate change considerations into national health policies and strategies to ensure that health is prioritized in climate action plans.

    The declaration also highlights the importance of improving surveillance and early warning systems to track climate-related health risks, enabling timely and effective responses.

    Additionally, it calls for building climate-resilient health systems by enhancing the capacity of health infrastructures to adapt to and mitigate the impacts of climate change, including through necessary upgrades and workforce training.

    During CHAC, the WHO Regional Office for Africa, in collaboration with the Wellcome Trust, hosted a high-level meeting to promote collaboration among health and climate stakeholders. The meeting was an opportunity to evaluate countries implementation of past Conference of the Parties (COP) commitments and define a roadmap for climate and health in Africa.

    With support from WHO, 29 African countries have joined ATACH, signaling dedication to safeguarding the health and well-being of their population.  The WHO-Wellcome Trust side event provided delegates with a platform to discuss actionable strategies for integrating health priorities into global climate frameworks and strengthening inter-ministerial collaboration.  

    The Climate and Health Africa conference is hosted by the Centre for Sexual Health, HIV and AIDS Research (CeSHHAR) Zimbabwe in collaboration with the Zimbabwean Ministry of Environment, Climate and Wildlife, the Ministry of Health and Child Care and the WHO Regional Office for Africa amongst other partners.

    MIL OSI Africa –

  • MIL-OSI Canada: Federal government reinforces our defence capacity and creates good-paying jobs for Canadians

    Source: Government of Canada News

    News release

    October 31, 2024  –  Gatineau, Quebec –  Public Services and Procurement Canada

    The federal government is committed to ensuring members of the Royal Canadian Navy (RCN) have the equipment they need to complete their missions and assert Canada’s sovereignty.

    Today, the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant, on behalf of the Honourable Bill Blair, Minister of National Defence, announced that the federal government has awarded a contract valued at up to $1.85 billion (including taxes) to Lockheed Martin Canada (LMC) for the renewal of combat system integration in-service support (CSI ISS) for the Halifax-class frigates.

    The renewal of this contract will ensure continued CSI service support until the end-of-life expectancy is reached for the Halifax-class frigates, coinciding with the gradual arrival of the new fleet of River-class destroyer ships. This contract is estimated to contribute $76 million annually to Canada’s gross domestic product and to support up to 680 good-paying jobs annually across the Canadian economy.

    The Halifax-class patrol frigates are the backbone of Canada’s maritime operational capability. The investments announced today will keep Canada’s sovereignty resolute by monitoring Canadian waters and airspace, facilitating large-scale search and rescue activities, providing emergency assistance and supporting global peace and security operations.

    Quotes

    “This contract with Lockheed Martin Canada underscores the federal government’s commitment to supporting the Royal Canadian Navy and ensuring it has the equipment it needs to assert Canada’s sovereignty and protect Canadians. The contract will ensure continued combat system integration services to the Halifax-class frigates, which remain the foundation of the Royal Canadian Navy until the gradual arrival of the River-class destroyers.”

    The Honourable Jean-Yves Duclos
    Minister of Public Services and Procurement and Quebec Lieutenant

    “This contract is not only an investment in our Navy, it is also an investment in Canadian industry and workers. The Royal Canadian Navy’s fleet of Halifax-class frigates are the backbone of maritime operations at home and abroad. This in-service support contract will ensure our frigates remain operationally effective until the arrival of our future fleet of River-class destroyers.”

    The Honourable Bill Blair
    Minister of National Defence

    “Our government is making a crucial investment to ensure that Canada’s naval capabilities remain strong. The combat management system 330 is an export success story, as this Canadian-made solution has been adopted by several allied navies. Through the support announced today, the government is helping the Royal Canadian Navy maintain the highest standards of operational readiness and is contributing to jobs, innovation and economic growth across the country.”

    The Honourable François-Philippe Champagne
    Minister of Innovation, Science and Industry

    Quick facts

    • The initial CSI ISS contract was awarded through a competitive procurement process to LMC in November 2008. The contract included 2 additional 3-year option periods, which have both been exercised. 

    • The initial CSI ISS contract will ensure ongoing maintenance and updates to the combat management system (CMS) 330 until November 6, 2024. 

    • The new CSI ISS contract provides ongoing maintenance, updates and other specialized supports for the CMS 330 onboard the RCN’s 12 Halifax-class frigates. The services also include support for associated shore-based engineering, training and testing.

    • This service support will be from November 2024 to March 2034. The contract includes 13 additional 1‑year option periods, which could extend the contract up to March 2047. 

    • The CMS 330 is the central component of the integrated combat system fitted on the Halifax-class ships. It’s a system designed to integrate and control the various sensors, weapons and information sources of the ships to optimize situational awareness and decision-making.

    • As the original manufacturer of the CMS 330, LMC holds the intellectual property rights necessary to make modifications and add new capabilities and functionalities to this software. LMC has also not licensed or authorized other parties to perform updates to this software. For these reasons, LMC is the only provider capable of meeting all the requirements of the CSI ISS contract, ensuring the RCN can continue to pursue its national and security operations. 

    • These in-service support activities are performed in Halifax, Nova Scotia, Esquimalt, British Columbia, and at various locations in the National Capital Region.

    • Canada’s Industrial and Technological Benefits Policy applies to this project. This requires that LMC provide business activities into the Canadian economy equal to the value of its contract with Canada. 

    Associated links

    Contacts

    Mathis Denis
    Press Secretary and Senior Communications Advisor
    Office of the Honourable Jean-Yves Duclos
    343-573-1846
    mathis.denis@tpsgc-pwgsc.gc.ca

    Media Relations
    Public Services and Procurement Canada
    819-420-5501
    media@pwgsc-tpsgc.gc.ca

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    MIL OSI Canada News –

  • MIL-OSI: Eos Energy Achieves Second Set of Performance Milestones Related to Cerberus Strategic Investment

    Source: GlobeNewswire (MIL-OSI)

    TURTLE CREEK, Pa., Oct. 31, 2024 (GLOBE NEWSWIRE) — Eos Energy Enterprises, Inc. (NASDAQ: EOSE) (“Eos” or the “Company”), a leading provider of safe, scalable, efficient, and sustainable zinc-based long duration energy storage systems, today announced the successful achievement of all four of the second performance milestones previously agreed upon between Eos and an affiliate of Cerberus Capital Management LP (“Cerberus”) as part of Cerberus’s strategic investment in the Company. Achieving these performance milestones enables the Company to draw an additional $65 million from the Delayed Draw Term Loan.

    About Eos Energy Enterprises

    Eos Energy Enterprises, Inc. is accelerating the shift to clean energy with positively ingenious solutions that transform how the world stores power. Our breakthrough Znyth™ aqueous zinc battery was designed to overcome the limitations of conventional lithium-ion technology. It is safe, scalable, efficient, sustainable, manufactured in the U.S., and the core of our innovative systems that today provides utility, industrial, and commercial customers with a proven, reliable energy storage alternative for 3 to 12-hour applications. Eos was founded in 2008 and is headquartered in Edison, New Jersey. For more information about Eos (NASDAQ: EOSE), visit eose.com.

    Contacts        
    Investors:     ir@eose.com
    Media:          media@eose.com

    Forward Looking Statements

    Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding our expected revenue, contribution margins, orders backlog and opportunity pipeline for the fiscal year ended December 31, 2024, our path to profitability and strategic outlook, the tax credits available to our customers or to Eos pursuant to the Inflation Reduction Act of 2022, the delayed draw term loan, milestones thereunder and the anticipated use of proceeds therefrom, statements regarding our ability to secure final approval of a loan from the Department of Energy LPO, or our anticipated use of proceeds from any loan facility provided by the US Department of Energy, statements that refer to outlook, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are based on our management’s beliefs, as well as assumptions made by, and information currently available to, them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected.

    Factors which may cause actual results to differ materially from current expectations include, but are not limited to: changes adversely affecting the business in which we are engaged; our ability to forecast trends accurately; our ability to generate cash, service indebtedness and incur additional indebtedness; our ability to achieve the operational milestones on the delayed draw term loan; our ability to raise financing in the future, including the discretionary revolving facility from Cerberus; risks associated with the credit agreement with Cerberus, including risks of default, dilution of outstanding Common Stock, consequences for failure to meet milestones and contractual lockup of shares; our customers’ ability to secure project financing; the amount of final tax credits available to our customers or to Eos pursuant to the Inflation Reduction Act, uncertainties around our ability to meet the applicable conditions precedent and secure final approval of a loan, in a timely manner or at all from the Department of Energy, Loan Programs Office, or the timing of funding and the final size of any loan that is approved; the possibility of a government shutdown while we work to meet the applicable conditions precedent and finalize loan documents with the U.S. Department of Energy Loan Programs Office or while we await notice of a decision regarding the issuance of a loan from the Department Energy Loan Programs Office; our ability to continue to develop efficient manufacturing processes to scale and to forecast related costs and efficiencies accurately; fluctuations in our revenue and operating results; competition from existing or new competitors; our ability to convert firm order backlog and pipeline to revenue; risks associated with security breaches in our information technology systems; risks related to legal proceedings or claims; risks associated with evolving energy policies in the United States and other countries and the potential costs of regulatory compliance; risks associated with changes to the U.S. trade environment; risks resulting from the impact of global pandemics, including the novel coronavirus, Covid-19; our ability to maintain the listing of our shares of common stock on NASDAQ; our ability to grow our business and manage growth profitably, maintain relationships with customers and suppliers and retain our management and key employees; risks related to the adverse changes in general economic conditions, including inflationary pressures and increased interest rates; risk from supply chain disruptions and other impacts of geopolitical conflict; changes in applicable laws or regulations; the possibility that Eos may be adversely affected by other economic, business, and/or competitive factors; other factors beyond our control; risks related to adverse changes in general economic conditions; and other risks and uncertainties.

    The forward-looking statements contained in this press release are also subject to additional risks, uncertainties, and factors, including those more fully described in the Company’s most recent filings with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Further information on potential risks that could affect actual results will be included in the subsequent periodic and current reports and other filings that the Company makes with the Securities and Exchange Commission from time to time. Moreover, the Company operates in a very competitive and rapidly changing environment, and new risks and uncertainties may emerge that could have an impact on the forward-looking statements contained in this press release.

    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, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

    The MIL Network –

  • MIL-OSI: Asure Announces Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Reports Third Quarter Revenues of $29.3 Million

    Recurring Revenues Grew 20% Versus Prior Year Third Quarter

    AUSTIN, Texas, Oct. 31, 2024 (GLOBE NEWSWIRE) — Asure Software, Inc. (“we”, “us”, “our”, “Asure” or the “Company”) (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management (“HCM”) software solutions, today reported results for the third quarter ended September 30, 2024.

    Third Quarter 2024 Financial Highlights

    • Revenue of $29.3 million, nearly unchanged versus the same period of the prior year
    • Revenue (excluding ERTC revenue) of $29.2 million, up 20% from $24.4 million versus the same period of the prior year
    • Recurring revenue of $28.6 million, up 20% year over year. Recurring revenue was 98% of total revenue versus 81% the same period of the prior year
    • Net loss of $3.9 million versus a net loss of $2.2 million during the same period of the prior year 
    • EBITDA(1) of $2.2  million versus $3.0 million during the same period of the prior year  
    • Adjusted EBITDA(1) of $5.4 million versus $6.2 million during the same period of the prior year 
    • Gross profit of $19.7 million versus $21.3 million during the same period of the prior year  
    • Non-GAAP gross profit(1) of $21.4 million (Non-GAAP gross margin(1) of 73%) versus $22.4 million (and 76% during the same period of the  prior year) 

    Nine Months 2024 Financial Highlights

    • Revenue of $89.0 million down 4% versus the first nine months of prior year
    • Revenue (excluding ERTC revenue) of $87.4 million up 15% from $75.7 million in the first nine months of prior year
    • Recurring revenue (excluding ERTC revenue) of $86.0 million up 16% from $74.4 million in the first nine months of prior year
    • Net loss of $8.6 million versus a net loss of $5.6 million the first nine months of prior year
    • EBITDA(1) of $8.0 million versus $13.2 million the first nine months of prior year
    • Adjusted EBITDA(1) of $16.3 million versus $20.5 million the first nine months of prior year
    • Gross profit of $61.2 million versus $67.7 million during the first nine months of the prior year  
    • Non-GAAP gross profit(1) of $65.6 million (Non-GAAP gross margin(1) of 74%) versus $71.5 million (and 77% during the first nine months of the prior year) 

    _______________
    (1)This financial measure is not calculated in accordance with GAAP and is defined on page 4 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 11 of this release.

    Recent Business Highlights

    • Payroll Tax Management Expansion: Asure’s Payroll Tax Management product gained significant momentum, going live with additional Workday and SAP clients during the third quarter. Key sales wins include one of America’s largest grocery chains and a nationally known HCM system integrator who assists large enterprises with Workday, SAP, and Oracle HCM implementations. These enterprise bookings have grown our backlog and still represent additional product and professional services opportunities.
    • HCM Architectural Milestone: Employee self-service capabilities have been decoupled from disparate payroll platforms and modularized as a single API-based service. This enhancement improves scalability and stability of the end-to-end HCM suite and further consolidates our technical footprint to a more flexible service-oriented architecture.
    • Entering Beta of New AI Agent: More than a chatbot, this new Generative-AI Agent handles inquiries related to payroll and payroll taxes takes secure action on behalf of the user. Through dynamic, interactive sessions, the AI Agent will answer questions and take actions on HR requests including time off requests, demographic changes, or changes to W-4 allowances.
    • Leadership Recognition: Asure Chairman and CEO, Pat Goepel, was named Austin Business Journal’s Best CEO of a Public Company for 2024, recognizing his leadership and commitment to Asure’s growth and success.
    • New financial services product to launch November 2024: Asure is introducing AsurePay™, an innovative financial solution offering working Americans a comprehensive online banking alternative. AsurePay™ combines features such as debit card access, fee-free ATM withdrawals, and paycheck advances through a unique interest-bearing banking solution, designed to improve employee engagement, while also improving overall employer efficiency. This solution is easily accessible through an intuitive mobile app.

    Management Commentary

    Asure Chairman and CEO, Pat Goepel, stated, “Our third quarter performance reflects strong, continued growth, with recurring revenue up 20% year-over-year. We’ve made great strides in transitioning to a more valuable revenue model, with 98% of our revenues now recurring, compared to 81% in the same quarter last year. Additionally, new bookings were up 141% year-over-year. Our backlog has grown significantly — over 35% from Q2 2024 and over 250% from Q3 2023. While large enterprise tax product deals have contributed to our success, their pace of implementation can vary. That said, we remain confident in our ability to maintain this positive trajectory.”

    Goepel continued, “We’re seeing strong demand for our Payroll Tax Management product, we’re introducing new solutions, upgrading our technology, and making strategic acquisitions. Earlier in the year, we faced the challenge of replacing ERTC revenue, but those headwinds have now dissipated as we close out 2024 and this change in the composition of our revenues offers us strong momentum going into 2025. We are optimistic about the opportunities ahead for both the remainder of this year and into next year.”

    Fourth Quarter 2024 and Full Year 2025 Revenue Guidance Ranges

    The Company is providing the following guidance for the fourth quarter 2024 based on the Company’s year-to-date results and recent business trends. Management is initiating full year 2025 guidance to a range of $134M-$138M which does not include revenue from potential future acquisitions.

    Guidance for 2024

    Guidance Range   Q4-2024   FY-2024  
    Revenue $ 30M – 32M $ 119M -121M  
    Adjusted EBITDA(1) $ 6M -7M   18% -19%  
               

    Guidance for 2025 

    Guidance Range   FY-2025  
    Revenue $ 134M – 138M  
    Adjusted EBITDA(1)   23% – 24%  
           

    Management uses GAAP, non-GAAP and adjusted measures when planning, monitoring, and evaluating the Company’s performance. The primary purpose of using non-GAAP and adjusted measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the Company’s results in the same way that management does.

    Management believes that supplementing GAAP disclosures with non-GAAP and adjusted disclosures provides investors with a more complete view of the Company’s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business. Further, to the extent that other companies use similar methods in calculating adjusted financial measures, the provision of supplemental non-GAAP and adjusted information can allow for a comparison of the Company’s relative performance against other companies that also report non-GAAP and adjusted operating results.

    Management has not provided a reconciliation of guidance of GAAP to non-GAAP or adjusted disclosures because management is unable to predict the nature and materiality of non-recurring expenses without unreasonable effort.

    Management’s projections are based on management’s current beliefs and assumptions about the Company’s business, and the industry and markets in which it operates; there are known and unknown risks and uncertainties associated with these projections. There can be no assurance that our actual results will not differ from the guidance set forth above. The Company assumes no obligation to update publicly any forward-looking statements, including its 2024 and 2025 earnings guidance, whether as a result of new information, future events or otherwise. Please refer to the “Use of Forward-Looking Statements” disclosures on page 6 of this press release as well as the risk factors in our quarterly and annual reports on file with the Securities and Exchange Commission for more information about risk that affect our business and industry.

    Conference Call Details

    Asure management will host a conference call on Thursday, October 31, 2024, at 3:30 pm Central (4:30 pm Eastern). Asure Chairman and CEO Pat Goepel and CFO John Pence will participate in the conference call followed by a question-and-answer session. The conference call will be broadcast live and available for replay via the investor relations section of the Company’s website. Analysts may participate on the conference call by dialing 877-407-9219 or 201-689-8852.

    About Asure Software, Inc.

    Asure Software (Nasdaq: ASUR) is a leading provider of Human Capital Management (“HCM”) software solutions. We help small and mid-sized companies grow by assisting them in building better teams with skills to stay compliant with ever-changing federal, state, and local tax jurisdictions and labor laws, and better allocate cash so they can spend their financial capital on growing their business rather than back-office overhead expenses. Asure’s Human Capital Management suite, named AsureHCM®, includes cloud-based Payroll, Tax Services, and Time & Attendance software and Asure Marketplace™ as well as human resources (“HR”) services ranging from HR projects to completely outsourcing payroll and HR staff. We also offer these products and services through our network of reseller partners. Visit us at asuresoftware.com.

    Non-GAAP and Adjusted Financial Measures

    This press release includes information about non-GAAP gross profit, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, non-GAAP research and development expense, EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin. These non-GAAP and adjusted financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP and adjusted financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s Condensed Consolidated Financial Statements prepared in accordance with GAAP. Non-GAAP and adjusted financial measures are reconciled to GAAP in the tables set forth in this release and are subject to reclassifications to conform to current period presentations.

    Non-GAAP gross profit differs from gross profit in that it excludes amortization, share-based compensation, and one-time items.

    Non-GAAP sales and marketing expense differs from sales and marketing expense in that it excludes share-based compensation and one-time items.

    Non-GAAP general and administrative expense differs from general and administrative expense in that it excludes share-based compensation and one-time items.

    Non-GAAP research and development expense differs from research and development expense in that it excludes share-based compensation and one-time items.

    EBITDA differs from net income (loss) in that it excludes items such as interest, income taxes, depreciation, and amortization. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

    Adjusted EBITDA differs from EBITDA in that it excludes share-based compensation, other income (expense), net and one-time expenses. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

    All adjusted and non-GAAP measures presented as “margin” are computed by dividing the applicable adjusted financial measure by total revenue.

    Specifically, as applicable to the respective financial measure, management is adjusting for the following items when calculating non-GAAP and adjusted financial measures as applicable for the periods presented. No additional adjustments have been made for potential income tax effects of the adjustments based on the Company’s current and anticipated de minimis effective federal tax rate, resulting from the Company’s continued losses for federal tax purposes and its tax net operating loss balances.

    Share-Based Compensation Expenses. The Company’s compensation strategy includes the use of share-based compensation to attract and retain employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than motivating or rewarding operational performance for any particular period. Thus, share-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period.

    Depreciation. The Company excludes depreciation of fixed assets. Also included in the expense is the depreciation of capitalized software costs.

    Amortization of Purchased Intangibles. The Company views amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, customer lists and customer relationships, and acquired lease intangibles, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by operations during any particular period.

    Interest Expense, Net. The Company excludes accrued interest expense, the amortization of debt discounts and deferred financing costs.

    Income Taxes. The Company excludes income taxes, both at the federal and state levels.

    One-Time Expenses. The Company’s adjusted financial measures exclude the following costs to normalize comparable reporting periods, as these are generally non-recurring expenses that do not reflect the ongoing operational results. These items are typically not budgeted and are infrequent and unusual in nature.

    Settlements, Penalties and Interest. The Company excludes legal settlements, including separation agreements, penalties and interest that are generally one-time in nature and not reflective of the operational results of the business.

    Acquisition and Transaction Related Costs. The Company excludes these expenses as they are transaction costs and expenses that are generally one-time in nature and not reflective of the underlying operational results of our business. Examples of these types of expenses include legal, accounting, regulatory, other consulting services, severance and other employee costs.

    Other non-recurring Expenses. The Company excludes these as they are generally non-recurring items that are not reflective of the underlying operational results of the business and are generally not anticipated to recur. Some examples of these types of expenses, historically, have included write-offs or impairments of assets, demolition of office space and cybersecurity consultants.

    Other (Expense) Income, Net. The Company’s adjusted financial measures exclude Other (Expense) Income, Net because it includes items that are not reflective of the underlying operational results of the business, such as loan forgiveness, adjustments to contingent liabilities and credits earned as part of the CARES Act, passed by Congress in the wake of the coronavirus pandemic.

    Use of Forward-Looking Statements

    This press release contains certain statements made by management that may constitute “forward-looking” statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements about our financial results may include expected or projected U.S GAAP and other operating and non-operating results. The words “believe,” “may,” “will,” “estimate,” “projects,” “anticipate,” “intend,” “expect,” “should,” “plan,” and similar expressions are intended to identify forward-looking statements. Examples of “forward-looking statements” include statements we make regarding our operating performance, future results of operations and financial position, revenue growth, earnings or other projections. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions, over many of which we have no control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.

    The risks and uncertainties referred to above include—but are not limited to—the expiration of major revenue streams such as Employee Retention Tax Credits (“ERTC”) and the impact of the Internal Revenue Service recent measures regarding ERTC claims; risks associated with breaches of the Company’s security measures; risks associated with the Company’s rate of growth and anticipated revenue run rate, including impact of the current economic environment; the Company’s ability to convert deferred revenue and unbilled deferred revenue into revenue and cash flow, and ability to maintain continued growth of deferred revenue and unbilled deferred revenue; privacy concerns and laws and other regulations may limit the effectiveness of our applications; the financial and other impact of any previous and future acquisitions; the Company’s ability to continue to release, gain customer acceptance of and provide support for new and improved versions of the Company’s services; successful customer deployment and utilization of the Company’s existing and future services; interruptions to supply chains and extended shut down of businesses; issues in the use of artificial intelligence in our HCM products and services; political unrest, including the current conflict between Russia and Ukraine and the ongoing conflict involving Israel in the Middle East; reductions in employment and an increase in business failures, specifically among our clients; possible fluctuations in the Company’s financial and operating results; regulatory pressures on economic relief enacted as a result of the COVID-19 pandemic that change or cause different interpretations with respect to eligibility for such programs; domestic and international regulatory developments, including changes to or applicability to our business of privacy and data securities laws, money transmitter laws and anti-money laundering laws; technological developments; the nature of the Company’s business model; interest rates; competition; various financial aspects of the Company’s subscription model; impairment of intangible assets; interruptions or delays in the Company’s services or the Company’s Web hosting; access to additional capital; the Company’s ability to hire, retain and motivate employees and manage the Company’s growth; litigation and any related claims, negotiations and settlements, including with respect to intellectual property matters or industry-specific regulations; volatility and weakness in bank and capital markets; factors affecting the Company’s deferred tax assets and ability to value and utilize them; volatility and low trading volume of our common stock; collection of receivables; and general developments in the economy, financial markets, credit markets and the impact of current and future accounting pronouncements and other financial reporting standards. Please review the Company’s risk factors in its annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2024, and its quarterly reports on Form 10-Q filed with the SEC on August 1, 2024, and October 31, 2024.

    The forward-looking statements, including the financial guidance 2024 and 2025 outlooks, contained in this press release represent the judgment of the Company as of the date of this press release, and the Company expressly disclaims any intent, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations with regard to these forward looking statements or any change in events, conditions or circumstances on which any such statements are based.

    © 2024 Asure Software, Inc. All rights reserved.

    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands, except per share amounts)
    (Unaudited)
     
      September 30, 2024   December 31, 2023
           
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 11,248     $ 30,317  
    Accounts receivable, net of allowance for credit losses of $6,150 and $4,787 at September 30, 2024 and December 31, 2023, respectively   17,233       14,202  
    Inventory   233       155  
    Prepaid expenses and other current assets   4,586       3,471  
    Total current assets before funds held for clients   33,300       48,145  
    Funds held for clients   193,589       219,075  
    Total current assets   226,889       267,220  
    Property and equipment, net   18,490       14,517  
    Goodwill   94,724       86,011  
    Intangible assets, net   73,429       62,082  
    Operating lease assets, net   4,401       4,991  
    Other assets, net   10,176       9,047  
    Total assets $ 428,109     $ 443,868  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Current portion of notes payable $ —     $ 27  
    Accounts payable   1,317       2,570  
    Accrued compensation and benefits   4,277       6,519  
    Operating lease liabilities, current   1,600       1,490  
    Other accrued liabilities   8,287       3,862  
    Deferred revenue   3,029       6,853  
    Total current liabilities before client fund obligations   18,510       21,321  
    Client fund obligations   193,951       220,019  
    Total current liabilities   212,461       241,340  
    Long-term liabilities:      
    Deferred revenue   2,276       16  
    Deferred tax liability   2,116       1,728  
    Notes payable, net of current portion   7,506       4,282  
    Operating lease liabilities, noncurrent   3,832       4,638  
    Other liabilities   765       209  
    Total long-term liabilities   16,495       10,873  
    Total liabilities   228,956       252,213  
    Stockholders’ equity:      
    Preferred stock, $0.01 par value; 1,500 shares authorized; none issued or outstanding   —       —  
    Common stock, $0.01 par value; 44,000 shares authorized; 26,540 and 25,382 shares issued, 26,540 and 24,998 shares outstanding at September 30, 2024 and December 31, 2023, respectively   265       254  
    Treasury stock at cost, zero(1) and 384 shares at September 30, 2024 and December 31, 2023, respectively   —       (5,017 )
    Additional paid-in capital   502,920       487,973  
    Accumulated deficit   (304,022 )     (290,440 )
    Accumulated other comprehensive loss   (10 )     (1,115 )
    Total stockholders’ equity   199,153       191,655  
    Total liabilities and stockholders’ equity $ 428,109     $ 443,868  
    (1) The aggregate Treasury stock of prior repurchases of the Company’s own common stock was retired and subsequently issued effective January 1, 2024. See the Condensed Consolidated Statement of Changes in Stockholders’ Equity for the impact of this transaction.
     
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
    (in thousands, except per share amounts)
    (Unaudited)
     
      Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
        2024       2023       2024       2023  
                   
    Revenue:              
    Recurring $ 28,626     $ 23,833     $ 85,950     $ 74,749  
    Professional services, hardware and other   678       5,501       3,050       18,069  
    Total revenue   29,304       29,334       89,000       92,818  
    Cost of sales   9,600       8,054       27,821       25,120  
    Gross profit   19,704       21,280       61,179       67,698  
    Operating expenses:              
    Sales and marketing   6,680       6,597       21,371       22,312  
    General and administrative   10,378       9,294       30,559       29,586  
    Research and development   1,973       1,803       5,704       5,107  
    Amortization of intangible assets   4,295       3,333       11,790       9,929  
    Total operating expenses   23,326       21,027       69,424       66,934  
    (Loss) income from operations   (3,622 )     253       (8,245 )     764  
    Interest income   165       437       762       1,015  
    Interest expense   (274 )     (1,219 )     (662 )     (5,336 )
    Loss on extinguishment of debt   —       (1,517 )     —       (1,517 )
    Other (expense) income, net   —       (283 )     10       (291 )
    Loss from operations before income taxes   (3,731 )     (2,329 )     (8,135 )     (5,365 )
    Income tax expense (benefit)   170       (123 )     434       267  
    Net loss   (3,901 )     (2,206 )     (8,569 )     (5,632 )
    Other comprehensive loss:              
    Unrealized income (loss) on marketable securities   1,340       (201 )     1,105       (213 )
    Comprehensive loss $ (2,561 )   $ (2,407 )   $ (7,464 )   $ (5,845 )
                   
    Basic and diluted loss per share              
    Basic $ (0.15 )   $ (0.10 )   $ (0.33 )   $ (0.27 )
    Diluted $ (0.15 )   $ (0.10 )   $ (0.33 )   $ (0.27 )
                   
    Weighted average basic and diluted shares              
    Basic   26,429       22,591       25,870       21,204  
    Diluted   26,429       22,591       25,870       21,204  
                                   
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
    (Unaudited)
     
      Nine Months Ended September 30,
        2024       2023  
           
    Cash flows from operating activities:      
    Net loss $ (8,569 )   $ (5,632 )
    Adjustments to reconcile loss to net cash (used) in provided by operations:      
    Depreciation and amortization   16,200       14,243  
    Amortization of operating lease assets   1,025       1,129  
    Amortization of debt financing costs and discount   531       548  
    Non-cash interest expense   —       1,471  
    Net accretion of discounts on available-for-sale securities   (273 )     (63 )
    Provision for expected losses   111       2,004  
    Provision for deferred income taxes   388       111  
    Loss on extinguishment of debt   —       1,208  
    Net realized gains on sales of available-for-sale securities   (1,929 )     (1,645 )
    Share-based compensation   4,981       4,170  
    Loss on disposals of long-term assets   —       132  
    Change in fair value of contingent purchase consideration   —       175  
    Changes in operating assets and liabilities:      
    Accounts receivable   (3,142 )     (5,014 )
    Inventory   (78 )     159  
    Prepaid expenses and other assets   (1,656 )     4,031  
    Operating lease right-of-use assets   —       473  
    Accounts payable   (1,253 )     (498 )
    Accrued expenses and other long-term obligations   (1,052 )     918  
    Operating lease liabilities   (1,139 )     (895 )
    Deferred revenue   (4,539 )     (5,190 )
    Net cash (used) in provided by operating activities   (394 )     11,835  
    Cash flows from investing activities:      
    Acquisition of intangible asset   (12,397 )     (697 )
    Purchases of property and equipment   (546 )     (1,365 )
    Software capitalization costs   (7,677 )     (5,029 )
    Purchases of available-for-sale securities   (10,914 )     (21,513 )
    Proceeds from sales and maturities of available-for-sale securities   13,325       10,428  
    Net cash used in investing activities   (18,209 )     (18,176 )
    Cash flows from financing activities:      
    Payments of notes payable   (420 )     (35,627 )
    Debt extinguishment costs   —       (468 )
    Payments made on amounts due for the acquisition of intangible assets   (658 )     —  
    Net proceeds from issuance of common stock   902       45,986  
    Capital raise fees   (47 )     (258 )
    Net change in client fund obligations   (26,068 )     (31,033 )
    Net cash used in financing activities   (26,291 )     (21,400 )
    Net decrease in cash and cash equivalents   (44,894 )     (27,741 )
    Cash and cash equivalents, beginning of period   177,622       164,042  
    Cash and cash equivalents, end of period $ 132,728     $ 136,301  
                   
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
    (in thousands)
    (Unaudited)
     
      Nine Months Ended September 30,
        2024       2023  
           
    Reconciliation of cash and cash equivalents to the Condensed Consolidated Balance Sheets
    Cash and cash equivalents $ 11,248     $ 32,787  
    Cash and cash equivalents included in funds held for clients   121,480       103,514  
    Total cash and cash equivalents $ 132,728     $ 136,301  
           
    Supplemental information:      
    Cash paid for interest $ —     $ 3,140  
    Cash paid for income taxes $ 15     $ 532  
           
    Non-cash investing and financing activities:      
    Acquisition of intangible assets $ 6,918     $ 332  
    Notes payable issued for acquisitions $ 3,138     $ —  
    Shares issued for acquisitions $ 9,125     $ 2,543  
                   
    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES
    (unaudited)
     
    (in thousands) Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Q1-23 Q4-22
    Revenue(1) $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420   $ 33,064   $ 29,292  
                     
    Gross Profit to non-GAAP Gross Profit                
    Gross Profit $ 19,704   $ 18,868   $ 22,607   $ 17,839   $ 21,280   $ 22,018   $ 24,400   $ 21,139  
    Gross Margin   67.2 %   67.3 %   71.4 %   67.9 %   72.5 %   72.4 %   73.8 %   72.2 %
                     
    Share-based Compensation   44     43     40     32     28     46     31     34  
    Depreciation   1,232     1,145     1,110     921     984     1,309     1,009     871  
    Amortization – intangibles   50     50     50     50     50     50     268     298  
    One-time expenses                
    Settlements, penalties & interest   2     3     —     (6 )   8     —     4     3  
    Acquisition and transaction costs   367     264     39     —     —     —     —     —  
    Non-GAAP Gross Profit $ 21,399   $ 20,373   $ 23,846   $ 18,836   $ 22,350   $ 23,423   $ 25,712   $ 22,345  
    Non-GAAP Gross Margin   73.0 %   72.6 %   75.3 %   71.7 %   76.2 %   77.0 %   77.8 %   76.3 %
                     
    Sales and Marketing Expense to non-GAAP Sales and Marketing Expense
    Sales and Marketing Expense $ 6,680   $ 6,924   $ 7,767   $ 6,422   $ 6,597   $ 8,515   $ 7,200   $ 6,022  
                     
    Share-based Compensation   269     237     243     180     210     149     124     93  
    Depreciation   1     —     1     1     —     —     —     —  
    One-time expenses                
    Settlements, penalties & interest   (5 )   5     18     6     30     4     11     —  
    Acquisition and transaction costs   68     37     11     —     —     —     —     —  
    Other non-recurring expenses   —     —     —     —     —     180     —     —  
    Non-GAAP Sales and Marketing Expense $ 6,347   $ 6,645   $ 7,494   $ 6,235   $ 6,357   $ 8,182   $ 7,065   $ 5,929  
                     
    General and Administrative Expense to non-GAAP General and Administrative Expense
    General and Administrative Expense $ 10,378   $ 10,118   $ 10,063   $ 9,747   $ 9,294   $ 10,336   $ 9,956   $ 9,720  
                     
    Share-based Compensation   1,187     1,122     1,535     980     936     1,298     1,142     641  
    Depreciation   264     256     251     225     200     234     210     168  
    One-time expenses                
    Settlements, penalties & interest   377     304     98     284     101     432     102     34  
    Acquisition and transaction costs   371     245     57     51     —     —     —     —  
    Other non-recurring expenses   253     —     86     53     —     453     —     —  
    Non-GAAP General and Administrative Expense $ 7,926   $ 8,191   $ 8,036   $ 8,154   $ 8,057   $ 7,919   $ 8,502   $ 8,877  
                     
    Research and Development Expense to non-GAAP Research and Development Expense
    Research and Development Expense $ 1,973   $ 1,962   $ 1,769   $ 1,739   $ 1,803   $ 1,325   $ 1,979   $ 1,627  
                     
    Share-based Compensation   90     86     85     69     76     89     40     70  
    One-time expenses                
    Settlements, penalties & interest   —     27     31     —     —     —     —     25  
    Acquisition and transaction costs   195     369     147     —     —     —     —     —  
    Non-GAAP Research and Development Expense $ 1,688   $ 1,480   $ 1,506   $ 1,670   $ 1,727   $ 1,236   $ 1,939   $ 1,532  
                                                     

    (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.

    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES (cont.)
    (unaudited)
     
    (in thousands) Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Q1-23 Q4-22
    Revenue(1) $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420   $ 33,064   $ 29,292  
                     
    GAAP Net (Loss) Income to Adjusted EBITDA
    GAAP Net (Loss) Income $ (3,901 ) $ (4,360 ) $ (308 ) $ (3,582 ) $ (2,206 ) $ (3,765 ) $ 339   $ (1,056 )
                     
    Interest expense, net   109     (53 )   (156 )   (24 )   782     1,593     1,944     1,429  
    Income taxes   170     231     33     (158 )   (123 )   627     (237 )   (94 )
    Depreciation   1,497     1,402     1,361     1,148     1,185     1,542     1,219     1,039  
    Amortization – intangibles   4,345     4,096     3,499     3,743     3,384     3,343     3,570     3,648  
    EBITDA $ 2,220   $ 1,316   $ 4,429   $ 1,127   $ 3,022   $ 3,340   $ 6,835   $ 4,966  
    EBITDA Margin   7.6 %   4.7 %   14.0 %   4.3 %   10.3 %   11.0 %   20.7 %   17.0 %
                     
    Share-based Compensation   1,591     1,488     1,902     1,260     1,251     1,582     1,337     838  
    One Time Expenses                
    Settlements, penalties & interest   375     339     147     283     140     436     117     62  
    Acquisition and transaction costs   1,001     914     254     51     —     —     —     —  
    Other non-recurring expenses   253     —     86     53     —     633     —     —  
    Other (expense) income, net   —     —     (10 )   1     1,800     93     (83 )   139  
    Adjusted EBITDA $ 5,440   $ 4,057   $ 6,808   $ 2,775   $ 6,213   $ 6,084   $ 8,206   $ 6,005  
    Adjusted EBITDA Margin   18.6 %   14.5 %   21.5 %   10.6 %   21.2 %   20.0 %   24.8 %   20.5 %
                                                     

    (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.

    Investor Relations Contact
    Patrick McKillop
    Vice President, Investor Relations
    617-335-5058
    patrick.mckillop@asuresoftware.com

    The MIL Network –

  • MIL-OSI: Qorvo® Selected by MediaTek as Key Supplier for the Inaugural Wave of Wi-Fi 7 FEMs Used in MediaTek Dimensity 9400

    Source: GlobeNewswire (MIL-OSI)

    GREENSBORO, N.C., Oct. 31, 2024 (GLOBE NEWSWIRE) — Qorvo® (Nasdaq: QRVO), a leading global provider of connectivity and power solutions, today announced that MediaTek has selected Qorvo as a key supplier for the inaugural wave of Wi-Fi 7 front-end modules (FEMs) on the MediaTek MT6653 Wi-Fi 7/Bluetooth® combo chip. Qorvo’s Wi-Fi 7 FEMs and the MediaTek MT6653 used in the MediaTek Dimensity 9400 platform are optimized to deliver a best-in-class end-user experience that help enable enhanced Wi-Fi 7 performance, power efficiency and technical features in mobile devices.

    Eric Creviston, president of Qorvo’s Connectivity and Sensors Group, said, “We’re pleased MediaTek has selected Qorvo to be a key supplier of Wi-Fi 7 FEMs for their next-generation mobile Wi-Fi platform. This achievement underscores our commitment to working closely with MediaTek and our joint customers to advance state-of-the-art mobile connectivity.”

    Qorvo offers the broadest and most advanced portfolio of Wi-Fi 7 FEMs for mobile applications, enabling customers to select the optimal solution for their specific products and market segments. Qorvo’s Wi-Fi 7 FEMs for mobile applications offer unmatched flexibility in power management and efficiency, which is critical to meeting the performance demands of 5G smartphones. The solutions feature additional transmit modes for enhanced efficiency and throughput across the entire operating power range. Qorvo FEMs support both linear and non-linear architectures, as well as low- to high-power offerings. They span the entire Wi-Fi 7 spectrum to address a broad range of applications including smartphones, consumer premises equipment (CPE), enterprise and industrial computing.

    Qorvo also offers Wi-Fi iFEMs that integrate BAW filtering to ensure optimal performance and reduce board space requirements while increasing efficiency and throughput.

    Qorvo’s Wi-Fi 7 FEMs supporting the MediaTek Dimensity 9400 platform will be shipping in volume during the fourth quarter of 2024. More information about Qorvo’s Wi-Fi innovations can be found at www.qorvo.com/innovation/wi-fi.

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

    Media Contact:
    Alexis Mariani
    Strategic Marketing Manager
    Alexis.Mariani@qorvo.com

    This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions, and are not historical facts and typically are identified by use of terms such as “may,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue” and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements included herein represent management’s current judgment and expectations, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under U.S. federal securities laws. Our business is subject to numerous risks and uncertainties, including those relating to fluctuations in our operating results; our substantial dependence on developing new products and achieving design wins; our dependence on a few large customers for a substantial portion of our revenue; a loss of revenue if contracts with the United States government or defense and aerospace contractors are canceled or delayed or if defense spending is reduced; the COVID-19 pandemic, which has and will likely continue to negatively impact the global economy and disrupt normal business activities, and which may have an adverse effect on our results of operations; our dependence on third parties; risks related to sales through distributors; risks associated with the operation of our manufacturing facilities; business disruptions; poor manufacturing yields; increased inventory risks and costs due to timing of customer forecasts; our inability to effectively manage or maintain evolving relationships with platform providers; risks from international sales and operations; economic regulation in China; changes in government trade policies, including imposition of tariffs and export restrictions; our ability to implement innovative technologies; underutilization of manufacturing facilities as a result of industry overcapacity; we may not be able to borrow funds under our credit facility or secure future financing; we may not be able to generate sufficient cash to service all of our debt; restrictions imposed by the agreements governing our debt; volatility in the price of our common stock; damage to our reputation or brand; fluctuations in the amount and frequency of our stock repurchases; our recent and future acquisitions and other strategic investments could fail to achieve financial or strategic objectives; our ability to attract, retain and motivate key employees; our reliance on our intellectual property portfolio; claims of infringement of third-party intellectual property rights; security breaches and other similar disruptions compromising our information; theft, loss or misuse of personal data by or about our employees, customers or third parties; warranty claims, product recalls and product liability; and risks associated with environmental, health and safety regulations and climate change. Many of the foregoing risks and uncertainties are, and will continue to be, exacerbated by the COVID-19 pandemic and any worsening of the global business and economic environment as a result. These and other risks and uncertainties, which are described in more detail in Qorvo’s most recent Annual Report on Form 10-K and in other reports and statements filed with the Securities and Exchange Commission, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.

    The MIL Network –

  • MIL-OSI: Fidus Investment Corporation Announces Third Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Board of Directors Declared Total Dividends of $0.61 per Share for Fourth Quarter 2024

    Base Dividend of $0.43 and Supplemental Dividend of $0.18 Per Share

    EVANSTON, Ill., Oct. 31, 2024 (GLOBE NEWSWIRE) — Fidus Investment Corporation (NASDAQ:FDUS) (“Fidus” or the “Company”), a provider of customized debt and equity financing solutions, primarily to lower middle-market companies based in the United States, today announced its financial results for the third quarter ended September 30, 2024.

    Third Quarter 2024 Financial Highlights

    • Total investment income of $38.4 million
    • Net investment income of $21.4 million, or $0.64 per share
    • Adjusted net investment income of $20.4 million, or $0.61 per share(1)
    • Invested $65.9 million in debt and equity securities, including three new portfolio companies
    • Received proceeds from repayments and realizations of $50.8 million
    • Paid total dividends of $0.57 per share: regular quarterly dividend of $0.43 and a supplemental dividend of $0.14 per share on September 26, 2024
    • Net asset value (“NAV”) of $658.8 million, or $19.42 per share, as of September 30, 2024
    • Estimated spillover income (or taxable income in excess of distributions) as of September 30, 2024 of $43.1 million, or $1.27 per share

    Management Commentary

    “For the third quarter, our debt investments generated a 8.4% increase in interest income year-over-year. We continued to carefully grow total assets under management while maintaining a healthy portfolio structured to deliver recurring income and the potential for enhanced returns from the monetization of equity investments. We expect investment activity to remain at reasonable levels for the rest of the year, providing us opportunities to advance our long-term goals of generating attractive risk-adjusted returns for our shareholders, preserving capital and growing NAV over time,” said Edward Ross, Chairman and CEO of Fidus Investment Corporation.    

    (1)    Supplemental information regarding adjusted net investment income:

    On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure.  This measure is provided in addition to, but not as a substitute for, net investment income.  Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses.  The management agreement with our investment adviser provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses.  In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate.  As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Reconciliations of net investment income to adjusted net investment income are set forth in Schedule 1.

    Third Quarter 2024 Financial Results

    The following table provides a summary of our operating results for the three months ended September 30, 2024, as compared to the same period in 2023 (dollars in thousands, except per share data):

                             
        Three Months Ended September 30,              
        2024     2023     $ Change     % Change  
    Interest income   $ 31,857     $ 28,313     $ 3,544       12.5 %
    Payment-in-kind interest income     1,851       2,789       (938 )     (33.6 %)
    Dividend income     1,384       262       1,122       428.2 %
    Fee income     2,693       2,255       438       19.4 %
    Interest on idle funds     597       566       31       5.5 %
    Total investment income   $ 38,382     $ 34,185     $ 4,197       12.3 %
                             
    Net investment income   $ 21,411     $ 16,660     $ 4,751       28.5 %
    Net investment income per share   $ 0.64     $ 0.63     $ 0.01       1.6 %
                             
    Adjusted net investment income (1)   $ 20,424     $ 18,188     $ 2,236       12.3 %
    Adjusted net investment income per share (1)   $ 0.61     $ 0.68     $ (0.07 )     (10.3 %)
                             
    Net increase  (decrease) in net assets resulting from operations   $ 16,477     $ 24,299     $ (7,822 )     (32.2 %)
    Net increase (decrease) in net assets resulting from operations per share   $ 0.49     $ 0.91     $ (0.42 )     (46.2 %)

    The $4.2 million increase in total investment income for the three months ended September 30, 2024, as compared to the same period in 2023, was primarily attributable to (i) a $2.6 million increase in total interest income (which includes payment-in-kind interest income) resulting from an increase in average debt investment balances outstanding, partially offset by a decrease in weighted average yield on debt investment balances outstanding, (ii) a $1.1 million increase in dividend income due to an increase in distributions received from equity investments and (iii) a $0.4 million increase in fee income resulting from an increase in amendment fees.

    For the three months ended September 30, 2024, total expenses, including the base management fee waiver and income tax provision, were $17.0 million, a decrease of $0.5 million, or (3.2%) from the $17.5 million of total expenses, including the base management fee waiver and income tax provision, for the three months ended September 30, 2023. The decrease was primarily attributable to (i) a $2.5 million decrease in capital gains incentive fee accrued, partially offset by (ii) a $0.7 million net increase in base management fee, including the base management fee waiver, due to higher average total assets, (iii) a $0.6 million increase in the income incentive fee, and (iv) a $0.6 million increase in income tax provision (benefit).

    Net investment income increased by $4.7 million, or 28.5%, to $21.4 million during the three months ended September 30, 2024 as compared to the same period in 2023, as a result of the $4.2 million increase in total investment income and the $0.5 million decrease in total expenses, including base management fee waiver and income tax provision. Adjusted net investment income,(1) which excludes the capital gains incentive fee accrual, was $0.61 per share compared to $0.68 per share in the prior year.

    For the three months ended September 30, 2024, the total net realized gain/(loss) on investments, net of income tax (provision)/benefit on realized gains, was $(0.4) million, as compared to total net realized gain/(loss) on investments, net of income tax (provision)/benefit on realized gains, of $9.7 million for the same period in 2023.

    Portfolio and Investment Activities

    As of September 30, 2024, the fair value of our investment portfolio totaled $1,090.7 million and consisted of 85 active portfolio companies and five portfolio companies that have sold their underlying operations. Our total portfolio investments at fair value were approximately 101.5% of the related cost basis as of September 30, 2024. As of September 30, 2024, the debt investments of 49 portfolio companies bore interest at a variable rate, which represented $702.0 million, or 73.2%, of our debt investment portfolio on a fair value basis, and the remainder of our debt investment portfolio was comprised of fixed rate investments. As of September 30, 2024, our average active portfolio company investment at amortized cost was $12.6 million, which excludes investments in five portfolio companies that have sold their underlying operations. The weighted average yield on debt investments was 13.8% as of September 30, 2024. The weighted average yield was computed using the effective interest rates for debt investments at cost as of September 30, 2024, including the accretion of original issue discounts and loan origination fees, but excluding investments on non-accrual status and investments recorded as a secured borrowing.

    Third quarter 2024 investment activity included the following new portfolio company investment:

    • Jumo Health, Inc., a developer of creative, patient-centric educational solutions that improve health literacy to accelerate clinical trial enrollment and increase participant retention. Fidus invested $6.0 million in first lien debt and $0.8 million in preferred equity.
    • Thrust Flight LLC, a provider of professional flight training services. Fidus invested $9.8 million in first lien debt, $1.1 million in common equity and made additional commitments up to $2.6 million in first lien debt.
    • InductiveHealth Informatics, LLC, a leading provider of disease and syndromic surveillance solutions for health agencies. Fidus invested $20.0 million in first lien debt and $0.4 million in preferred equity.

    Liquidity and Capital Resources

    As of September 30, 2024, we had $54.4 million in cash and cash equivalents and $100.0 million of unused capacity under our senior secured revolving credit facility (the “Credit Facility”). For the three months ended September 30, 2024, we received net proceeds of $14.1 million from the equity at-the-market program (the “ATM Program”). As of September 30, 2024, we had SBA debentures outstanding of $175.0 million, $125.0 million outstanding of our 4.75% notes due January 2026 (the “January 2026 Notes”) and $125.0 million outstanding of our 3.50% notes due November 2026 (the “November 2026 Notes” and collectively with the January 2026 Notes the “Notes”). As of September 30, 2024, the weighted average interest rate on total debt outstanding was 4.6%.

    Fourth Quarter 2024 Dividends Totaling $0.61 Per Share Declared

    On October 28, 2024, our board of directors declared a base dividend of $0.43 per share and a supplemental dividend of $0.18 per share for the fourth quarter. The dividends will be payable on December 27, 2024, to stockholders of record as of December 17, 2024.

    When declaring dividends, our board of directors reviews estimates of taxable income available for distribution, which differs from consolidated income under GAAP due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of undistributed taxable income carried over from a given year for distribution in the following year. The final determination of 2024 taxable income, as well as the tax attributes for 2024 dividends, will be made after the close of the 2024 tax year.  The final tax attributes for 2024 dividends will generally include ordinary taxable income but may also include capital gains, qualified dividends and return of capital.

    Fidus has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of dividends on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when we declare a cash dividend, stockholders who have not “opted out” of the DRIP at least two days prior to the dividend payment date will have their cash dividends automatically reinvested in additional shares of our common stock. Those stockholders whose shares are held by a broker or other financial intermediary may receive dividends in cash by notifying their broker or other financial intermediary of their election.

    Subsequent Events

    On October 1, 2024, we invested $6.3 million in first lien debt and common equity in Estex Manufacturing Company, LLC, a branded manufacturer of sewn products used in the utility, airline / aerospace, sports, and military end markets.

    On October 11, 2024, we exited our debt investment in US Fertility Enterprises, LLC. We received payment in full of $15.2 million on our subordinated debt, which included a prepayment fee.

    On October 24, 2024, we exited our debt investment in Sonicwall US Holdings, Inc. We received payment of $3.3 million on our second lien debt, resulting in a realized loss of $0.1 million.

    On October 25, 2024, we invested $14.8 million in first lien debt and common equity in Axis Medical Technologies LLC (dba Movemedical), a leading provider of last-mile supply chain software solutions to medical device OEMs.

    Third Quarter 2024 Financial Results Conference Call

    Management will host a conference call to discuss the operating and financial results at 9:00am ET on Friday, November 1, 2024. To participate in the conference call, please dial (844) 808-7136 approximately 10 minutes prior to the call. International callers should dial (412) 317-0534. Please ask to be joined into the Fidus Investment Corporation call.

    A live webcast of the conference call will be available at http://investor.fdus.com/news-events/events-presentations.  Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived replay of the conference call will also be available in the investor relations section of the Company’s website.

    ABOUT FIDUS INVESTMENT CORPORATION

    Fidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies, which management generally defines as U.S. based companies with revenues between $10 million and $150 million. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from debt investments and capital appreciation from equity related investments. Fidus seeks to partner with business owners, management teams and financial sponsors by providing customized financing for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.

    Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. In addition, for tax purposes, Fidus has elected to be treated as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Fidus was formed in February 2011 to continue and expand the business of Fidus Mezzanine Capital, L.P., which commenced operations in May 2007 and was licensed by the U.S. Small Business Administration as a Small Business Investment Company (SBIC).

    FORWARD-LOOKING STATEMENTS

    This press release may contain certain forward-looking statements which are based upon current expectations and are inherently uncertain, including, but not limited to, statements about the future performance and financial condition of the Company, the prospects of our existing and prospective portfolio companies, the financial condition and ability of our existing and prospective portfolio companies to achieve their objectives, and the timing, form and amount of any distributions or supplemental dividends in the future. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control, such as changes in the financial and lending markets, the impact of the general economy (including an economic downturn or recession), and the impact of interest rate volatility; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future as a result of a number of factors related to changes in the markets in which the Company invests, changes in the financial, capital, and lending markets, and other factors described from time to time in the Company’s filings with the Securities and Exchange Commission. Such statements speak only as of the time when made, and are based on information available to the Company as of the date hereof and are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to update any such statement now or in the future, except as required by applicable law.

        FIDUS INVESTMENT CORPORATION
    Consolidated Statements of Assets and Liabilities
    (in thousands, except shares and per share data)
            		  
        September 30,     December 31,  
        2024     2023  
    ASSETS                
    Investments, at fair value:                
       Control investments (cost: $6,832 and $6,832, respectively)   $   —     $   —  
       Affiliate investments (cost: $48,019 and $46,485, respectively)       85,827         83,876  
       Non-control/non-affiliate investments (cost: $1,019,953 and $883,312, respectively)       1,004,848         874,030  
    Total investments, at fair value (cost: $1,074,804 and $936,629, respectively)       1,090,675         957,906  
    Cash and cash equivalents       54,443         119,131  
    Interest receivable       14,317         11,965  
    Prepaid expenses and other assets       1,618         1,896  
    Total assets   $   1,161,053     $   1,090,898  
    LIABILITIES                
    SBA debentures, net of deferred financing costs   $   170,472      $   204,472  
    Notes, net of deferred financing costs       248,081         247,243  
    Borrowings under Credit Facility, net of deferred financing costs       38,853         (1,082 )
    Secured borrowings       14,025         15,880  
    Accrued interest and fees payable       3,544         5,924  
    Base management fee payable, net of base management fee waiver – due to affiliate       4,784         4,151  
    Income incentive fee payable – due to affiliate       5,059         4,570  
    Capital gains incentive fee payable – due to affiliate       14,914         17,509  
    Administration fee payable and other, net – due to affiliate       619         789  
    Taxes payable       751         1,227  
    Accounts payable and other liabilities       1,190         741  
    Total liabilities   $   502,292      $   501,424  
    Commitments and contingencies                
    NET ASSETS                
    Common stock, $0.001 par value (100,000,000 shares authorized, 33,914,652 and 30,438,979 shares                
    issued and outstanding at September 30, 2024 and December 31, 2023, respectively)   $   34      $   31  
    Additional paid-in capital       572,159         504,298  
    Total distributable earnings       86,568         85,145  
    Total net assets       658,761         589,474  
    Total liabilities and net assets   $   1,161,053      $   1,090,898  
    Net asset value per common share   $   19.42      $   19.37  
    FIDUS INVESTMENT CORPORATION
    Consolidated Statements of Operations (unaudited)
    (in thousands, except shares and per share data)

    		  
        Three Months Ended     Nine Months Ended  
        September 30,     September 30,  
        2024     2023     2024     2023  
    Investment Income:                        
    Interest income                        
    Control investments   $ —     $ —     $ —     $ —  
    Affiliate investments     870       1,011       2,603       3,168  
    Non-control/non-affiliate investments     30,987       27,302       88,899       77,268  
    Total interest income     31,857       28,313       91,502       80,436  
    Payment-in-kind interest income                        
    Control investments     —       —       —       —  
    Affiliate investments     —       —       —       —  
    Non-control/non-affiliate investments     1,851       2,789       5,745       4,661  
    Total payment-in-kind interest income     1,851       2,789       5,745       4,661  
    Dividend income                        
    Control investments     —       —       —       —  
    Affiliate investments     1,328       (1 )     1,830       519  
    Non-control/non-affiliate investments     56       263       308       431  
    Total dividend income     1,384       262       2,138       950  
    Fee income                        
    Control investments     —       —       —       —  
    Affiliate investments     5       5       15       60  
    Non-control/non-affiliate investments     2,688       2,250       6,559       5,868  
    Total fee income     2,693       2,255       6,574       5,928  
    Interest on idle funds     597       566       2,738       1,824  
    Total investment income     38,382       34,185       108,697       93,799  
    Expenses:                        
    Interest and financing expenses     6,026       5,985       18,100       16,761  
    Base management fee     4,848       4,161       13,986       12,066  
    Incentive fee – income     5,059       4,478       14,072       11,959  
    Incentive fee (reversal) – capital gains     (987 )     1,528       942       507  
    Administrative service expenses     688       581       1,894       1,672  
    Professional fees     567       587       2,469       2,044  
    Other general and administrative expenses     266       269       764       773  
    Total expenses before base management fee waiver     16,467       17,589       52,227       45,782  
    Base management fee waiver     (64 )     (72 )     (200 )     (216 )
    Total expenses, net of base management fee waiver     16,403       17,517       52,027       45,566  
    Net investment income before income taxes     21,979       16,668       56,670       48,233  
    Income tax provision (benefit)     568       8       682       66  
    Net investment income     21,411       16,660       55,988       48,167  
    Net realized and unrealized gains (losses) on investments:                        
    Net realized gains (losses):                        
    Control investments     —       —       —       (11,458 )
    Affiliate investments     —       1       —       100  
    Non-control/non-affiliate investments     (366 )     9,749       12,161       15,625  
    Total net realized gain (loss) on investments     (366 )     9,750       12,161       4,267  
    Income tax (provision) benefit from realized gains on investments     —       (31 )     (1,523 )     (1,569 )
    Net change in unrealized appreciation (depreciation):                        
    Control investments     —       —       —       11,083  
    Affiliate investments     2,075       (4,507 )     417       (9,109 )
    Non-control/non-affiliate investments     (6,643 )     2,450       (5,823 )     (2,113 )
    Total net change in unrealized appreciation (depreciation) on investments     (4,568 )     (2,057 )     (5,406 )     (139 )
    Net gain (loss) on investments     (4,934 )     7,662       5,232       2,559  
    Realized losses on extinguishment of debt     —       (23 )     (521 )     (23 )
    Net increase (decrease) in net assets resulting from operations   $ 16,477     $ 24,299     $ 60,699     $ 50,703  
    Per common share data:                        
    Net investment income per share-basic and diluted   $ 0.64     $ 0.63     $ 1.74     $ 1.89  
    Net increase in net assets resulting from operations per share — basic and diluted   $ 0.49     $ 0.91     $ 1.89     $ 1.99  
    Dividends declared per share   $ 0.57     $ 0.72     $ 1.81     $ 2.08  
    Weighted average number of shares outstanding — basic and diluted     33,380,480       26,618,973       32,138,865       25,490,379  

    Schedule 1

    Supplemental Information Regarding Adjusted Net Investment Income

    On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure.  This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses.  The management agreement with our investment advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses for such year, less the aggregate amount of any capital gains incentive fees paid in all prior years.  In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate.  As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. The following table provides a reconciliation of net investment income to adjusted net investment income for the three and nine months ended September 30, 2024 and 2023.

              ($ in thousands)     ($ in thousands)  
              Three Months Ended     Nine Months Ended  
              September 30,     September 30,  
              (unaudited)     (unaudited)  
              2024     2023     2024     2023  
    Net investment income         $ 21,411     $ 16,660     $ 55,988     $ 48,167  
    Capital gains incentive fee expense (reversal)           (987 )     1,528       942       507  
    Adjusted net investment income (1)         $ 20,424     $ 18,188     $ 56,930     $ 48,674  
              (Per share)     (Per share)  
              Three Months Ended     Nine Months Ended  
              September 30,     September 30,  
              (unaudited)     (unaudited)  
              2024     2023     2024     2023  
    Net investment income         $ 0.64     $ 0.63     $ 1.74     $ 1.89  
    Capital gains incentive fee expense (reversal)           (0.03 )     0.05       0.03       0.02  
    Adjusted net investment income (1)         $ 0.61     $ 0.68     $ 1.77     $ 1.91  
    (1 ) Adjusted net investment income per share amounts are calculated as adjusted net investment income dividend by weighted average shares outstanding for the period. Due to rounding, the sum of net investment income per share and capital gains incentive fee expense (reversal) amounts may not equal the adjusted net investment income per share amount presented here.
    Company Contact: Investor Relations Contact:
    Shelby E. Sherard Jody Burfening
    Chief Financial Officer LHA
    (847) 859-3940 (212) 838-3777
    ssherard@fidusinv.com jburfening@lhai.com

    The MIL Network –

  • MIL-OSI: CNB Financial Corporation Announces Quarterly Dividend for Series A Preferred Stock and Related Depositary Shares Distribution

    Source: GlobeNewswire (MIL-OSI)

    CLEARFIELD, Pa., Oct. 31, 2024 (GLOBE NEWSWIRE) — The Board of Directors of CNB Financial Corporation (Nasdaq: CCNE) (the “Corporation”) has announced the declaration of a quarterly cash dividend of $0.4453125 per depositary share (Nasdaq: CCNEP), resulting from the Corporation’s declaration of a quarterly cash dividend of $17.8125 per share on its Series A Preferred Stock. The dividend is payable on November 29, 2024, to holders of record as of November 15, 2024.

    CNB Financial Corporation is a financial holding company with consolidated assets of approximately $6.0 billion. CNB Financial Corporation conducts business primarily through its principal subsidiary, CNB Bank. CNB Bank is a full-service bank engaging in a full range of banking activities and services, including trust and wealth management services, for individual, business, governmental, and institutional customers. CNB Bank operations include a private banking division, two loan production offices, one drive-up office, one mobile office, and 54 full-service offices in Pennsylvania, Ohio, New York, and Virginia. CNB Bank, headquartered in Clearfield, Pennsylvania, with offices in Central and North Central Pennsylvania, serves as the multi-brand parent to various divisions. These divisions include ERIEBANK, based in Erie, Pennsylvania, with offices in Northwest Pennsylvania and Northeast Ohio; FCBank, based in Worthington, Ohio, with offices in Central Ohio; BankOnBuffalo, based in Buffalo, New York, with offices in Western New York; Ridge View Bank, based in Roanoke, Virginia, with offices in the Southwest Virginia region; and Impressia Bank, a division focused on banking opportunities for women, which operates in CNB Bank’s primary market areas. Additional information about CNB Financial Corporation may be found at www.CNBBank.bank.

    The MIL Network –

  • MIL-OSI: Progress Completes Acquisition of ShareFile

    Source: GlobeNewswire (MIL-OSI)

    ShareFile’s AI-powered, document-centric collaboration platform expands Progress’ industry-leading product portfolio and marks a major milestone in the company’s Total Growth Strategy

    BURLINGTON, Mass., Oct. 31, 2024 (GLOBE NEWSWIRE) — Progress (Nasdaq: PRGS), the trusted provider of AI-powered infrastructure software, today announced the completion of the acquisition of ShareFile, a business unit of Cloud Software Group, Inc., providing a SaaS-native, AI-powered, document-centric collaboration platform, focusing on industry segments including business and professional services, financial services, industrial and healthcare.

    “This acquisition marks the latest major milestone in Progress’ Total Growth Strategy, which is built on three pillars: Invest and Innovate, Acquire and Integrate and Drive Customer Success. The addition of ShareFile significantly enhances our product capabilities, benefiting our customers and meaningfully expanding the customer base we serve,” said Yogesh Gupta, CEO of Progress. “We are thrilled to welcome ShareFile customers and employees to the Progress community and look forward to a bright future with ShareFile now part of Progress.”

    Progress products help organizations to develop, deploy and manage responsible AI-powered applications and experiences. ShareFile fits strategically with Progress’ Digital Experience portfolio to enable customers to deliver more efficient and effective client and team collaboration, while simplifying the sharing of documents and prioritizing security.

    As previously announced, Progress acquired ShareFile for a purchase price of $875 million, funded with a combination of cash and Progress’ existing revolving credit facility. ShareFile is expected to add more than $240M in annual revenue and more than 86,000 customers to Progress.

    About Progress 
    Progress (Nasdaq: PRGS) empowers organizations to achieve transformational success in the face of disruptive change. Our software enables our customers to develop, deploy and manage responsible AI-powered applications and experiences with agility and ease. Customers get a trusted provider in Progress, with the products, expertise and vision they need to succeed. Over 4 million developers and technologists at hundreds of thousands of enterprises depend on Progress. Learn more at www.progress.com. 
      
    Note Regarding Forward-Looking Statements
    This press release contains statements that are “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. Progress has identified some of these forward-looking statements with words like “believe,” “may,” “could,” “would,” “might,” “should,” “expect,” “intend,” “plan,” “target,” “anticipate” and “continue,” the negative of these words, other terms of similar meaning or the use of future dates. Risks, uncertainties and other important factors that could cause actual results to differ from those expressed or implied in the forward-looking statements include: uncertainties as to the effects of disruption from the acquisition of ShareFile (i.e., making it more difficult to maintain relationships with employees, licensees, other business partners or governmental entities); other business effects, including the effects of industry, economic or political conditions outside of Progress’ or ShareFile’s control; transaction costs; actual or contingent liabilities; uncertainties as to whether anticipated synergies will be realized; and uncertainties as to whether ShareFile’s business will be successfully integrated with Progress’ business. For further information regarding risks and uncertainties associated with Progress’ business, please refer to Progress’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended November 30, 2023. Progress undertakes no obligation to update any forward-looking statements, which speak only as of the date of this press release.

    The MIL Network –

  • MIL-OSI New Zealand: Save the Children – World more dangerous than ever for children with crimes in conflict at highest ever in 2023

    Source: Save the Children

    The number of grave violations committed against children in war rose 15% in 2023 to the highest level since reporting started in 2005 with the biggest increases in Sudan and the occupied Palestinian territory, according to new report by Save the Children [1].
    The report Stop the War on Children – Pathways to Peace  analysed the number of verified grave violations against children in conflict since such records began, with the crimes including killing, maiming and abduction, sexual violence, recruitment into armed groups, attacks on schools and hospitals, and denial of humanitarian access to children.
    The report found 31,721 documented cases of grave violations against children [2] in conflict took place in 2023, which equated to an average of 86 crimes against children per day, eclipsing the previous record set in 2022.
    The largest total number of crimes were committed in the occupied Palestinian territory where 8,434 grave violations were verified – a quarter of the total number – and a 170% jump on the year before. This was followed by the Democratic Republic of Congo (with 3,805 verified cases, up from 2,420 cases in 2022) and Somalia (with 2,290 verified cases, slightly down from 2,783 cases in 2022).
    The biggest relative increase in grave violations was recorded in Sudan, where cases increased fivefold since 2022 from 317 cases to 1,759 cases.
    An horrific 11,338 cases of killing and maiming of children in conflict were documented around the world in 2023, representing a 31% rise compared to the previous year. This was the equivalent to an average of 31 children per day – an entire classroom – losing their life or being maimed. More than a third were Palestinian children.
    Incidents of denial of humanitarian access – another grave violation against children in conflict – also reached an historic high with 5,158 incidents in 2023, compared to 3,931 the previous year – and more than 11 times higher than a decade ago. The occupied Palestinian territory recorded 3,250 incidents of denial of humanitarian access in 2023, the highest number ever recorded in any conflict setting.
    The report also revealed that the last three decades have witnessed a staggering increase in the number of children living under the weight of war, with the number reaching 473 million children – or 19% of the world’s child population – in 2023 [3]. This share has nearly doubled from around 10% of the world’s child population in the mid-1990s, as children’s right to protection in conflict continued to be obliterated [4]
    The report analysed global military spending and found it rose to $2.4 trillion in 2023 – or more than the entire GDP of Italy – while investments in peace and conflict prevention dwindled. The economic impact of violence, including the costs of prevention, containment, and addressing its consequences, has steadily risen, reaching $19.1 trillion in purchasing power parity (PPP) terms in 2023.
    Sharmarke-, a 12-year-old boy living in Puntland, Somalia, lost his brother in the ongoing conflict in his homeland and yearns for peace. He said:
    “If I had one wish, it would be for peace in Somalia. Peace is something that we have been without for so long that many of us don’t even know what it feels like. I wish for a country where families like mine don’t have to run from their homes in fear, where children can go to school without being afraid. Somalia has been broken by war, and it’s time for us to heal.”
    Inger Ashing, CEO of Save the Children International, said:
    “This report is devastating and leaves no doubt that the world is getting more dangerous for children. For so much of humanity we have seen progress on children’s rights and their protection, but in countries at war, the situation is sharply declining.
    “We are seeing global military spending continuing to climb, while investments in conflict prevention are on the decline. The consequences of this misplaced focus are devastating. Ongoing conflicts in the DRC, occupied Palestinian territory, Sudan, and Ukraine, and so many other countries, have witnessed a horrific escalation in attacks against children, schools, and hospitals.
    “These violations have ignited a global outcry and yet we haven’t seen any real and meaningful pledges for peace.
    “States must take action. They need to uphold standards of conduct in conflict. They must hold perpetrators to account. They must protect humanitarian access. They need long term plans for peace. And they need to support children’s resilience and recovery. The future of millions of children depends on immediate and decisive global action.”
    Gudrun Østby, Research Professor at the Peace Research Institute Oslo, said:
    “The documented cases of crimes against children in conflict zones are horrific, yet these figures likely only scratch the surface. With an estimated 473 million children-or 19% globally -living in conflict areas, each of these children has a unique story and conflict experience.”
    “Over the past few decades, the number of children living in conflict settings has risen steadily. The global share of children at risk due to conflict has nearly doubled since the 1990s. Now, more than ever, the need to protect the millions of children in conflict zones is both critical and urgent.”
    Save the Children’s analysis also uncovered an alarming number of UN member states have signed onto less than half of the international legal and political instruments that provide protection children in conflict. As many as 43 UN members, or more than 20%, many of which are involved in armed conflict, have failed to sign or endorse more than six of the twelve instruments, showing a large gap in commitment to child protection. At the same time, arms sales continue to fuel conflicts, with weapons being transferred to actors notorious for violating children’s rights [5].
    Peaceful childhoods are a critical part of building peaceful societies. As government leaders and civil society, including activists, survivors, and young people, prepare to meet at the inaugural Global Ministerial Conference on Violence Against Children in Colombia next month, this report highlights the urgent need for intensified global action to combat violence against children in conflict and build a safer future for children worldwide. Despite the degradation of the rules-based order, there are reasons for optimism, including advancements in accountability, effective implementation practices, and growing popular mobilization for peace and safety for children.
    NOTES:
    • [1] Analysis by Save the Children of the 2024 United Nations annual report of the Secretary-General on children and armed conflict, based on data reported and verified in 2023. The analysis also draws on previous Save the Children mapping of the number of grave violations in the reports on children and armed conflict from 2005-23. Unlike the annual UN reports on children and conflict, we have included verified incidents of military use of hospitals and schools under the grave violation attacks on schools and hospitals when we add up the grave violations in each conflict setting.
    • [2] The six grave violations against children: the UN Security Council has identified six grave violations against children in situations of armed conflict: killing and maiming of children; recruitment or use of children in armed forces and groups; rape and other forms of sexual violence against children; abduction of children; attacks against schools and hospitals; and denial of humanitarian access to children. These grave violations were defined on the basis of their egregious nature and their severe impact on children’s wellbeing. In addition to the six violations, the annual UN has verified cases of detention of children since 2012 and presented them in the report.
    • [3] Updated data on the number of children living in conflict zones conducted by the Peace Research Institute (PRIO), Oslo based on Uppsala Conflict Data Program’s Georeferenced Event Dataset (UCDP GED) cross-referenced with population data from Gridded Population of the World (GPW) and from the UN (2023).
    • [4] Figure 2, page 5. The share was 9,7% in 1995.
    • [5] Including the Safe Schools Declaration, Paris Commitments and the Explosive Weapons in Populated Areas (EWIPA) declaration.

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Environment – Coral pulled up by NZ trawler “environmental vandalism” says Greenpeace

    Source: Greenpeace

    Revelations that a New Zealand trawler has destroyed kilograms of deep sea corals in a region of the South Pacific earmarked for protection, illustrates exactly why New Zealand must stop bottom trawling these international waters, says Greenpeace Aotearoa.
    A New Zealand trawler, The Tasman Viking which is owned by Westfleet, pulled up several species of deep sea coral while trawling in international waters of the Tasman Sea last month.
    The coral ‘encounter’ happened on Lord Howe Rise, a region renowned for diverse marine life including corals, sponges, whales and seabirds, triggering an international fishing rule that will see the area temporarily closed to trawling and countries with a fisheries interest in the area notified.
    Greenpeace campaigner Ellie Hooper says this latest coral destruction by a New Zealand trawler is an embarrassment, calling it yet another example of how destructive bottom trawling is and why it must be banned.
    “It’s reckless environmental vandalism to bulldoze coral, an essential building block for ocean life, especially in the middle of a biodiversity crisis”, says Hooper.
    “New Zealand trawlers are the last, and only boats still bottom trawling the South Pacific high seas. As a country, we’re an outlier on this issue, flying in the face of the New Zealand public, who want bottom trawling banned from vulnerable areas, and the opinion of our international neighbours.
    “If we want a healthy planet, and marine life to thrive, New Zealand must stop bottom trawling seamounts and other vulnerable areas in the South Pacific.”
    Last year Westfleet, which is partly owned by Sealord, was fined over $52,000 and The Tasman Viking convicted following an incident where rare bamboo coral, pulled up in trawl nets, was illegally released overboard before a fisheries observer had a chance to properly document it.
    The incident also happened in the Lord Howe Rise region, and despite the conviction, The Tasman Viking, was given a new high seas trawling permit in June 2024
    The waters around Lord Howe Rise are rich and abundant, and include a chain of seamounts or underwater mountains that are home to a variety of marine life from coral to whales and seabirds including the antipodean albatross.
    Greenpeace and allies are calling for one of the world’s first global ocean sanctuaries to be created in this region, with the Australian government taking a step forward towards this goal in announcing a science symposium on the site for 2025.
    “While other nations are progressing with protecting the high seas from harm, New Zealand is dragging behind, still permitting bottom trawling in these precious areas, despite other countries pushing for them to be closed,” says Hooper.
    “To give the ocean a chance to recover and thrive, the New Zealand government must end the countries’ bottom trawling operation in the South Pacific high seas, and get with the programme on protection.”Scientists agree that to help stave off the worst of the climate crisis at least 30% of the world’s oceans must be protected from industrial harms by 2030. Creating global ocean sanctuaries in international waters, those areas outside of any one country’s jurisdiction, will play a crucial role in achieving this 30×30 goal. A recent report released by Greenpeace International shows that urgent action is needed to create marine protected areas. At the current rate of protection it would take till 2107 to reach the 30×30 goal.

    MIL OSI New Zealand News –

  • MIL-OSI Submissions: GAZA – Detention of MSF Dr Mohammed Obeid and several medical staff from Kamal Adwan Hospital, North Gaza – MSF

    Source: Médecins Sans Frontières/Doctors Without Borders (MSF)

    1st November, 2024. Médecins Sans Frontières/Doctors Without Borders (MSF) has received confirmation that Dr Mohammed Obeid, an MSF orthopedic surgeon, has been detained by Israeli forces along with several medical staff from Kamal Adwan hospital in north Gaza during a military operation at the hospital on 26 October. We are extremely alarmed by the detention of our colleague.

    Dr Obeid has been working tirelessly since the beginning of the war, offering his support as a doctor to multiple hospitals in Gaza. His work has saved countless lives. 

    Our last contact with Dr Obeid was on the afternoon of 25 October. He had been sheltering and offering his support as a surgeon at Kamal Adwan hospital when it was besieged by Israeli forces. 
    We have officially requested information from the Israeli authorities on Dr Obeid’s detention status, his current location, and any information regarding his physical and mental well-being.

    Prior to his detention Dr Obeid shared this testimony describing the situation in the hospital:

    “There is death in all types and forms in Kamal Adwan hospital and north Gaza. The bombardment does not stop. The artillery does not stop. The planes do not stop. There is heavy shelling, and the hospital is targeted too. It just looks like a movie; it does not seem real.

    About five days ago, my house was hit. They completely blew up the roof and water tanks, but we were at the ground floor and only one person got injured, thank God. We left a few times, moving to different areas, my family and neighbors were terrified. I sheltered in Kamal Adwan hospital with my wife and children, and I am now working here, where I can treat numerous patients.

    There are no words to describe the situation in Kamal Adwan hospital: it is disastrous. The hospital is completely overwhelmed. There are injured people everywhere, outside and inside the hospital, and we do not have medical and surgical equipment to treat them.

    Ambulances cannot move. We cannot reach the bodies of the people killed and cannot save the injured ones who lie in the streets. Many of them died before reaching the hospital, and others died inside the hospital as we could not treat their wounds.

    We have 30 people dead inside the hospital, and around 130 injured patients who need urgent medical care. Medical staff are exhausted, and many are injured as well. We feel hopeless. I just don’t have words.

    We call on all the countries in the world to consider north Gaza, and to lift the blockade that has led to the death of so many people.”

    MSF calls for the safety and the protection of our colleague, and for all medical staff in Gaza who work under impossible conditions and are facing horrific violence as they try to provide care.

    MSF Australia was established in 1995 and is one of 24 international MSF sections committed to delivering medical humanitarian assistance to people in crisis. In 2022, more than 120 project staff from Australia and New Zealand worked with MSF on assignment overseas. 

    MSF delivers medical care based on need alone and operates independently of government, religion or economic influence and irrespective of race, religion or gender. For more information visit msf.org.au  

    MIL OSI – Submitted News –

  • MIL-OSI Economics: Apple reports fourth quarter results

    Source: Apple

    Headline: Apple reports fourth quarter results

    Apple periodically provides information for investors on its corporate website, apple.com, and its investor relations website, investor.apple.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to its annual meeting of shareholders.

    This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about payment of the Company’s quarterly dividend and future business plans. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Risks and uncertainties include without limitation: effects of global and regional economic conditions, including as a result of government policies, geopolitical tensions, conflict, terrorism, natural disasters, and public health issues; risks relating to the design, manufacture, introduction, and transition of products and services in highly competitive and rapidly changing markets, including from reliance on third parties for components, technology, manufacturing, applications, support, and content; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; and effects of unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements, which speak only as of the date they are made. 

    About Apple

    Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, AirPods, Apple Watch, and Apple Vision Pro. Apple’s six software platforms — iOS, iPadOS, macOS, watchOS, visionOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, iCloud, and Apple TV+. Apple’s more than 150,000 employees are dedicated to making the best products on earth and to leaving the world better than we found it.

    MIL OSI Economics –

  • MIL-OSI USA: Hageman Files Amicus Brief in Support of Fourth Amendment Rights

    Source: United States House of Representatives – Wyoming Congresswoman Harriet Hageman

    Washington, DC – Today, Congresswoman Harriet Hageman, joined by Senators Cynthia Lummis, R-WY, Rand Paul, R-KY, and Ron Wyden, D-OR, and Representatives Dan Bishop, R-NC, Thomas Massie, R-KY, and Nikema Williams, D-GA, filed an amicus brief in the case of Martin v United States, a Federal Tort Claims Act (FTCA) challenge against the U.S. due to a wrongful raid conducted by the FBI. 

    Representative Hageman stated, “When the government infringes upon a citizen’s Constitutional rights there must be methods of redress for those who were wronged. The FBI clearly violated the Fourth Amendment rights of Ms. Martin and her family, and it is critically important that they have legal redress. Congress has provided Americans with an avenue to protect their individual natural, including those and victims of wrongful federal law enforcement raids. Courts have no right to ignore those protections in order to arbitrarily grant immunity to the FBI, and in doing so in this case the appellate judges have blatantly subverted the laws enacted by Congress. The FBI must be held accountable for the physical and emotional damages it inflicted by wrongfully raiding Curtrina Martin’s home.”

    Background: 

    • In 2017, as part of an anti-gang operation, FBI agents executed a warrant for a specific gang member, raiding the wrong home of Curtrina Martin. Martin, her child, and boyfriend were awoken when agents detonated a flash grenade and ripped the door off its hinges. Her boyfriend was handcuffed, and Martin held at gunpoint. After the FBI noticed it was at the wrong address, the agents ended the raid without explanation. 
    • Congress enacted the FTCA in 1946 to allow U.S. persons to sue the federal government for torts, including harms that result in legal liability, committed by persons acting on behalf of the government. Congress expanded this accountability measure in the 1970s to address federal law enforcement actions in response to a series of wrongful drug raids on innocent persons.  
    • Ms. Martin filed for redress against the United States under the FTCA, alleging violation of Fourth Amendment rights. The 11th circuit dismissed her claims on a faulty application of the Constitution’s Supremacy Clause. If allowed to stand, this decision would effectively gut the FTCA, and the accountability it provides, for not just Curtrina Martin, but all Americans, and would deal a serious blow to the separation of powers that underpins our Constitutional republic. 

    ###

    Contact: Chris Berardi, Sr. Advisor/Communications Director

    MIL OSI USA News –

  • MIL-OSI USA: Bergman Leads on Call for Election Integrity in Michigan

    Source: United States House of Representatives – Congressman Jack Bergman (MI-1)

    Today, Representative Jack Bergman led Michigan Republican Members of Congress in sending a letter to Michigan Secretary of State Jocelyn Benson demanding answers on Michigan’s elections and urging her to protect election integrity.

    Following reports of a Chinese national University of Michigan student – who is not a U.S. citizen – casting a ballot for the upcoming Presidential election, Rep. Jack Bergman, joined by Reps. John Moolenaar, Bill Huizenga, Tim Walberg, John James, and Lisa McClain, wrote a letter to Secretary Jocelyn Benson outlining their concerns and demanding answers on this issue.

    You can read the letter here or below:

    Secretary Benson:

    As you know, the State of Michigan will play a pivotal role in next week’s election, potentially deciding who will become the 47th President of the United States and which party will control the United States Congress.

    On October 22, 2024, you made the following statement: “Let me be clear: We have secure elections in Michigan.” Furthermore, you testified before the Committee on House Administration on September 11, 2024, stating there is “no evidence non-citizens are voting.” And yet, according to a recent report by The Detroit News, a University of Michigan student who is a Chinese national – and not a U.S. citizen – allegedly cast a ballot for the upcoming presidential election. The report goes on to note that his ballot will be counted.

    Only U.S. citizens are legally permitted to vote in federal elections. You acknowledged this fact during a recent interview on CNN, noting that “Only US citizens can vote in our elections, and secure processes are in place in every state to ensure and reinforce that.” Clearly, this acknowledgement is at odds with the aforementioned report.

    Having instances of non-citizens voting, however isolated they may be, puts doubt into the minds of the millions of Michiganders who entrust you with ensuring our elections are secure, free, and fair, and that the results are valid.

    With this in mind, we would like you to answer the following questions:

    1. What steps is your office taking to verify the citizenship and residency of individuals registering to vote in Michigan to ensure only eligible voters participate in the upcoming election?

    2. Will you commit to prosecuting ineligible voters, like the Chinese University of Michigan student, to the fullest extent of the law?

    3. How is the Michigan Secretary of State’s office addressing potential risks related to ineligible individuals voting, and what security measures are in place to protect the integrity of the voter rolls?

    4. What avenues of recourse are available to ensure improper ballots are not counted? And will you pursue them?

    Please respond no later Friday, November 1, 2025, at 5 p.m.

    MIL OSI USA News –

  • MIL-OSI Security: Regional Cooperation Framework for U.S.-ROK Alliance Contributions to Security in the Indo-Pacific

    Source: United States INDO PACIFIC COMMAND

    The United States (U.S.) – Republic of Korea (ROK) Alliance remains the linchpin of peace and security not only on the Korean Peninsula but also in the Indo-Pacific region.

    Today the U.S. Department of Defense and ROK Ministry of National Defense announce the following Regional Cooperation Framework for U.S.-ROK Alliance Contributions to Security in the Indo-Pacific to facilitate deeper collaboration between our two countries and to demonstrate our commitment to maintaining a free, peaceful, and prosperous Indo-Pacific region.

    Our two nations share fundamentally common interests and values that underpin regional security efforts, such as respect for democratic governance, the rule of law, territorial integrity, and sovereignty. We seek to better align our efforts in the Indo-Pacific to help realize the vision of a global comprehensive strategic alliance and to advance the security and prosperity of our people, the region, and the globe.

    This framework builds upon our respective strategies for the region – the U.S. Indo-Pacific Strategy, and the ROK Strategy for a Free, Peaceful, and Prosperous Indo-Pacific region – to help develop and maintain a sustainable, secure, and resilient regional order. Our cooperative efforts also draw upon the 2023 Defense Vision of the U.S.-ROK Alliance, which identifies strengthening solidarity and regional security cooperation with like-minded partners as one of our key bilateral priorities, and are intended to support the Republic of Korea’s goal of becoming a “Global Pivotal State.” 

    To advance this cooperation, the U.S. Secretary of Defense and the ROK Minister of National Defense endorse the following general principles and seek to chart a path forward that ensures our common national interest:

    • Our cooperative efforts should seek to create a region that is more connected, prosperous, secure, and resilient. We intend to utilize approaches and pursue initiatives that are based on mutual confidence, trust, reciprocity, and respect for relevant international laws, standards, and norms.
    • Both the U.S. and ROK recognize that our national interests, as well as those of our bilateral Alliance, can be advanced by firmly upholding and strengthening the rules-based order in the Indo-Pacific region; this includes the freedoms of navigation and overflight, and other uses of the sea guaranteed to all nations under international law.
    • Both sides reaffirm their strong support for Association of Southeast Asian Nations (ASEAN) centrality, unity, and the ASEAN-led regional architecture; we commit to partnering closely with ASEAN to advance implementation of the ASEAN Outlook on the Indo-Pacific in defense-related areas; we are also determined to work closely with Pacific Island countries and the Pacific Islands Forum to build capacity in the region.
    • Both sides intend to pursue initiatives and activities together that more comprehensively build partner capacity, bolster maritime security, and foster collaboration and interoperability with like-minded countries in the region.
    • Through increased participation in multilateral exercises, both sides are determined to enhance the readiness, capability, and resilience of combined forces to be prepared to respond to evolving and complex threats in the region.
    • To expand comprehensive security cooperation, the U.S. and ROK intend to pursue initiatives that strengthen collaboration in the areas of non-proliferation, counter-terrorism, humanitarian aid and disaster relief, climate change, and the prevention of infectious diseases as well as empower regional organizations to contribute to greater regional stability; both sides also intend to increase information sharing with like-minded countries to better address challenges in the region.
    • In the area of defense exports and defense industrial cooperation, both sides intend to work together on issues of mutual interest including: sharing best practices on export controls, foreign direct investment, and technology security; exchanging information on expert planning and decision-making; and cooperating effectively to secure supply chains.
    • Both sides are also determined to work together to increase information sharing in the cyber domain to enhance regional cybersecurity practices and situational awareness, and build cyber resilience to defend against globally-expanding malicious cyber threats.
    • Finally, both sides also pledge to continue using established forums such as the Regional Cooperation Working Group (RCWG), and other existing bilateral mechanisms, to develop and sustain dialogue between the U.S. and ROK on defense cooperation in priority areas identified in both the government and industrial sectors. The mechanisms will report to the annual Security Consultative Meeting (SCM) through the Korea-U.S. Integrated Defense Dialogue (KIDD).

    To implement this framework, both sides intend to present concepts for cooperative projects through government channels and, where appropriate, facilitate business-to-business connections that may advance opportunities for collaboration and cooperation. These projects should complement other efforts being undertaken by other like-minded countries in the region and seek to effectively utilize public sector resources.

    Initiatives and projects under this framework will focus on the following areas, which both sides have identified as priority areas for cooperation, with a particular focus on cooperation with ASEAN and Pacific Island countries:

    Maritime Security 

    Multilateral Exercises

    Capacity Building 

    Defense Exports and Defense Industrial Cooperation

    Technical Cooperation (e.g., cyber security and emerging capabilities)

    Information Sharing

    Both sides intend to identify points of contact responsible for coordinating engagements and tracking the implementation of cooperative projects decided upon under this framework. The lead points of contact should review potential opportunities and prioritize actions, with the goal of presenting at least one project or initiative each year before the SCM.

    MIL Security OSI –

  • MIL-OSI Russia: IMF Releases the 2024 Financial Access Survey Results

    Source: IMF – News in Russian

    October 30, 2024

    Washington, DC: The International Monetary Fund (IMF) released the results of the 2024 Financial Access Survey (FAS), marking the 15th anniversary of the FAS. The report “FAS: 2024 Highlights,” published along with the data release, summarizes the key trends on access to and usage of financial services over the past few years. Established in 2009, the FAS has played a crucial role in providing essential data to develop and evaluate financial inclusion policies, a topic of key relevance for the IMF, as it fosters broader economic participation, reduces inequalities, promotes inclusive growth, and aids in achieving the Sustainable Development Goals (SDGs). The FAS stands as the most comprehensive annual supply-side database on financial inclusion, boasting nearly complete global coverage. It covers 192 economies, featuring 121 series and 70 normalized indicators for global comparison. The FAS dataset spans from 2004 to 2023, and it continues to evolve in line with financial innovations such as the provision of digital financial services and the increasing demand for gender-disaggregated data.

    Digital Financial Services Continue to Make Gains

    There has been a substantial increase in the usage of non-traditional financial services, including mobile and internet banking, with mobile money being particularly important in Sub-Saharan Africa. Yet, usage of traditional financial services remains essential in many economies. For example, from 2013 to 2019, deposit accounts per 100 adults increased by over 40% in emerging and developing Europe and Sub-Saharan Africa. The growth of digital financial services has also led to an increase in non-traditional access points, such as retail and mobile money agents, while traditional access methods like ATMs and bank branches have seen a decline, especially since the COVID-19 pandemic (Figure).

    Traditional and Non-traditional Access Points in Recent Years (2019 to 2023)

    (Number of Access Points Per 100,000 Adults)
     

    Source: Financial Access Survey and IMF staff calculations.

    Notes: These charts show the weighted average by region for economies whose data are available for 2019–2023. Country coverage differs across indicators depending on data availability. While three economies from Latin America and the Caribbean (El Salvador, Colombia, and Haiti) report data on number of registered mobile money agents, none provide data for all five years covered in this chart and are therefore not included.

    Microfinance Institutions Have Continued Supporting Economically Marginalized Groups

    Financing by microfinance institutions has shown resilience amid recent economic shocks. In various economies, borrowing from microfinance institutions increased, as indicated by the growth in the number of accounts and outstanding loans. While commercial banks usually provide larger loan amounts, microfinance institutions serve a broader client base, as evidenced by the larger number of loan accounts compared to those at commercial banks.

    Challenges in Narrowing Gender Gaps Remain 

    Despite the benefits of incorporating women into the financial system, substantial gender gaps in the usage of financial services persist. These gaps are particularly evident in the usage of deposit and loan accounts. Globally, women’s outstanding deposit amounts as percentage of men’s stand at 64 percent, while their outstanding loan balances account for only 46 percent of men’s. In terms of regional differences, advanced economies demonstrate a more gender-equal financial inclusion compared to emerging economies. Among the latter, emerging and developing Europe and Latin America and the Caribbean show relatively higher gender equality.

    Lending to SMEs Declined

    Data from FAS indicate a decrease in the outstanding amounts of SME loans from 2021 to 2023 in most economies that reported this information. Although several supportive policies were introduced during the COVID-19 Pandemic, subsequent developments, including tighter financial conditions and geopolitical tensions, may have contributed to the decline in SME loans.

    Additional Enhancements to the FAS are Being Tested

    To ensure the FAS data remain vital for informing financial inclusion policy, a pilot exercise is underway to assess the potential for enhancing the FAS. This includes incorporating additional gender disaggregation, information on new fintech services, and important factors such as loan pricing and risks, especially for underserved populations.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Pemba Sherpa

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/10/30/pr-24400-imf-releases-the-2024-financial-access-survey-results

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Australia: Batchelor Search and Rescue Exercise Enhances NT Police Capabilities

    Source: Northern Territory Police and Fire Services

    The Northern Territory Police Search and Rescue Section (SRS) conducted an intensive search and rescue exercise (SAREX) in Batchelor last week, focusing on testing and refining the agency’s land search and rescue response capabilities. The exercise showcased the effectiveness of deploying K9 units and other specialist police assets in challenging field conditions, vital for enhancing operational readiness across the Territory.

    The exercise revolved around a simulated missing person report, where the search began after an abandoned vehicle was discovered on a remote dirt road in Batchelor. The scenario required the missing person, who had wandered a considerable distance from the vehicle, to be located by the Northern Territory (NT) Search and Rescue K9 Unit, an external agency working in collaboration with our NT Police Dog Operations Unit. Various specialist sections of NT Police were deployed to establish a field search headquarters, coordinate search efforts, and safely recover the missing person according to the rescue plan.

    As part of NT Police’s responsibility under the Intergovernmental Agreement, the SRS coordinates both marine and land search and rescue operations. This recent training exercise provided a critical opportunity to assess the deployability of police SAR assets to regional and remote areas, demonstrating the team’s ability to respond to emergencies across varied and demanding terrains.

    Acting Sergeant Chris Grotherr explained, “The main purpose of this SAREX was to test our Land SAR response capabilities, particularly the deployment of K9 assets in the field, alongside other specialist resources, such as the Mounted Unit, motorcycles, ATVs, and drone capability. This allows us to identify gaps in our capabilities and find ways to bridge them, ensuring we are constantly improving our readiness for future operations.”

    The exercise also offered vital training for SRS and other specialist police sections, helping them understand local conditions at this time of year and the specific challenges associated with the terrain in the Batchelor region.

    In the 12 months ending June 2024, the SRS responded to over 80 search and rescue incidents across the NT, assisting 93 people and saving 10 lives. These successes highlight the importance of ongoing training and multi-agency collaboration. Regular exercises like the one in Batchelor help the team maintain proficiency in operating specialist equipment and assets, while identifying any maintenance or serviceability issues that need to be addressed.

    “Operating specialist equipment in real-world conditions is key to maintaining our proficiency and ensuring all assets are mission-ready,” A/Sgt Grotherr added. “The insights gained from this exercise are invaluable in fine-tuning our response strategies moving forward.”

    The NT Police are dedicated to maintaining a high standard of search and rescue readiness, working continuously to enhance their operations and ensure the safety of all Territorians, no matter the challenge or location.

    Media Note: Imagery, including interview footage, overlays, and still shots, is available upon request.

    MIL OSI News –

  • MIL-OSI Europe: Minister Calleary announces key milestone in the implementation of the EU regulation on AI

    Source: Government of Ireland – Department of Jobs Enterprise and Innovation

    31st October 2024

    Minister of State for Trade Promotion, Digital and Company Regulation, Dara Calleary TD, today published a list of nine national public authorities responsible for protecting fundamental rights under the EU Artificial Intelligence (AI) Act.

    These authorities will get additional powers under the AI Act to facilitate them in carrying out their current responsibilities for protecting fundamental rights in circumstances where use of AI poses a high risk to those rights. For example, the authorities will have the power to access documentation that developers and deployers of AI systems are required to hold under the AI Act.

    This action fulfils Ireland’s first obligation for the national implementation of the AI Act.

    The list of authorities is as follows:

    • An Coimisiún Toghcháin
    • Coimisiún na Meán
    • Data Protection Commission
    • Environmental Protection Agency
    • Financial Services & Pensions Ombudsman
    • Irish Human Rights & Equality Commission
    • Ombudsman
    • Ombudsman for Children
    • Ombudsman for the Defence Forces 

    Minister Calleary commented,

    “AI can provide many benefits for our society and our economy. However, AI also comes with certain risks. The EU AI Act will have a critical role in addressing these risks and in promoting human-centric, trustworthy AI. It will establish a regulatory framework for the development and use of AI systems to provide a high level of protection to people’s health, safety, and fundamental rights.

    “The government is committed to comprehensive and effective implementation of the AI Act and the publication of this list is an important first step in this regard. The additional powers these authorities will acquire under the AI Act will support them in protecting fundamental rights in circumstances where certain high-risk AI systems are used.”

    This list will be notified to the European Commission. It will be kept under review by the Minister and can be updated at any time to reflect future changes in the national authorities.

    Note to Editors

    The pioneering EU Artificial Intelligence (AI) Act, which entered into force on 2nd August 2024, provides a harmonised regulatory framework for AI systems developed or deployed in the EU. It is the most comprehensive such framework in the world. It is designed to provide a high level of protection to people’s health, safety, and fundamental rights and to promote the adoption of human-centric, trustworthy AI. The Act adopts a risk-based approach to regulation and focuses on applications of AI systems to ensure that its regulatory provisions are targeted and proportionate. Its provisions will apply, in a phased manner, over the 36-month period from entry into force.

    The AI Act is an EU Regulation and consequently has direct effect in all Member States, however, it places obligations on Member States to provide for implementation and enforcement at national level.

    The first obligation on Member States under the Act is to identify national public authorities which supervise or enforce the respect of obligations under Union law protecting fundamental rights, including the right to non-discrimination, in relation to certain high-risk uses of AI systems, specified the Act. Under the Act, fundamental rights are those enshrined in the EU Charter of Fundamental Rights, including democracy, the rule of law and environmental protection. This list of authorities must be published, and notified to the European Commission, by 2 November 2024.

    The identified authorities will not be competent authorities for the Act, nor will any obligations, responsibilities or tasks be assigned to them. Rather, identified authorities will get additional powers to facilitate them in carrying out their current mandates in circumstances involving the use of AI systems. These powers will apply from 2 August 2026.

    ENDS

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    MIL OSI Europe News –

  • MIL-OSI: Sound Financial Bancorp, Inc. Q3 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    SEATTLE, Oct. 30, 2024 (GLOBE NEWSWIRE) — Sound Financial Bancorp, Inc. (the “Company”) (Nasdaq: SFBC), the holding company for Sound Community Bank (the “Bank”), today reported net income of $1.2 million for the quarter ended September 30, 2024, or $0.45 diluted earnings per share, as compared to net income of $795 thousand, or $0.31 diluted earnings per share, for the quarter ended June 30, 2024, and $1.2 million, or $0.45 diluted earnings per share, for the quarter ended September 30, 2023. The Company also announced today that its Board of Directors declared a cash dividend on common stock of $0.19 per share, payable on November 26, 2024 to stockholders of record as of the close of business on November 12, 2024.

    Comments from the President and Chief Executive Officer

    “For the first time in our history, loans surpassed $900 million, and we continued to grow deposits. These production improvements came as we held operating expenses steady, demonstrating our ability to grow the Bank efficiently,” remarked Laurie Stewart, President and Chief Executive Officer. “We also completed a major upgrade to our online banking services and have received positive feedback on this from our clients,” concluded Ms. Stewart.

    “Net income increased 45% from the prior quarter primarily due to the improvement in our net interest margin, which was driven by the repricing and origination of new loans at higher market rates. At the same time, funding costs increased at a slower pace, as the majority of our deposits had already been repriced. We also made progress in transitioning time deposits to savings and money market accounts, which typically carry lower rates and provide more flexibility for future repricing,” explained Wes Ochs, Executive Vice President and Chief Financial Officer.

    Mr. Ochs continued, “As always, we remain focused on maintaining strong asset quality. Non-performing loans decreased from the prior quarter-end and we are actively utilizing available remedies to address the remaining problem loans.”

    Q3 2024 Financial Performance
    Total assets increased $26.1 million or 2.4% to $1.10 billion at September 30, 2024, from $1.07 billion at June 30, 2024, and increased $70.8 million or 6.9% from $1.03 billion at September 30, 2023.     Net interest income increased $425 thousand or 5.7% to $7.9 million for the quarter ended September 30, 2024, from $7.4 million for the quarter ended June 30, 2024, and decreased $295 thousand or 3.6% from $8.2 million for the quarter ended September 30, 2023.
       
        Net interest margin (“NIM”), annualized, was 2.98% for the quarter ended September 30, 2024, compared to 2.92% for the quarter ended June 30, 2024 and 3.38% for the quarter ended September 30, 2023.
    Loans held-for-portfolio increased $12.5 million or 1.4% to $901.7 million at September 30, 2024, compared to $889.3 million at June 30, 2024, and increased $26.3 million or 3.0% from $875.4 million at September 30, 2023.    
        An $8 thousand provision for credit losses was recorded for the quarter ended September 30, 2024, compared to a $109 thousand and a $75 thousand release of provision for credit losses for the quarters ended June 30, 2024 and September 30, 2023, respectively. At September 30, 2024, the allowance for credit losses on loans to total loans outstanding was 0.95%, compared to 0.96% at both June 30, 2024 and September 30, 2023.
    Total deposits increased $23.4 million or 2.6% to $930.2 million at September 30, 2024, from $906.8 million at June 30, 2024, and increased $69.3 million or 8.1% from $860.9 million at September 30, 2023. Noninterest-bearing deposits increased $4.8 million or 3.8% to $129.7 million at September 30, 2024 compared to $124.9 million at June 30, 2024, and decreased $24.2 million or 15.7% compared to $153.9 million at September 30, 2023.    
        Total noninterest income increased $73 thousand or 6.3% to $1.2 million for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, and increased $154 thousand or 14.2% compared to the quarter ended September 30, 2023.
    The loans-to-deposits ratio was 97% at September 30, 2024, compared to 98% at June 30, 2024 and 102% at September 30, 2023.    
        Total noninterest expense decreased $58 thousand or 0.7% to $7.7 million for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, and decreased $31 thousand or 0.4% from compared to the quarter ended September 30, 2023.
    Total nonperforming loans decreased $420 thousand or 4.7% to $8.5 million at September 30, 2024, from $8.9 million at June 30, 2024, and increased $6.7 million or 381.8% from $1.8 million at September 30, 2023. Nonperforming loans to total loans was 0.94% and the allowance for credit losses on loans to total nonperforming loans was 101.13% at September 30, 2024.    
        The Bank continued to maintain capital levels in excess of regulatory requirements and was categorized as “well-capitalized” at September 30, 2024.
           
             

    Operating Results

    Net interest income increased $425 thousand, or 5.7%, to $7.9 million for the quarter ended September 30, 2024, compared to $7.4 million for the quarter ended June 30, 2024, and decreased $295 thousand, or 3.6%, from $8.2 million for the quarter ended September 30, 2023.The increase from the prior quarter was primarily due to a higher average yield on interest-earning assets, particularly loans receivable, and an increase in the average balances of both loans receivable and interest-earning cash. This was partially offset by a more modest rise in the cost of funds, as higher cost earnings interest-bearing deposits decreased by the end of the third quarter of 2024, limiting the growth in funding costs compared to the prior quarter. The decrease in net interest income compared to the same quarter one year ago was primarily due to higher funding costs, specifically, increased rates on and balances of money market and certificate accounts, partially offset by an increase in the average yield earned on interest-earning assets.

    Interest income increased $799 thousand, or 5.7%, to $14.8 million for the quarter ended September 30, 2024, compared to $14.0 million for the quarter ended June 30, 2024, and increased $2.2 million, or 17.0%, from $12.7 million for the quarter ended September 30, 2023. The increase from the prior quarter was primarily due to a higher average balance of loans and interest-bearing cash, along with a 14 basis point increase in the average loan yield, reflecting higher rates on newly originated loans and upward adjustments to rates on existing variable rate loans. The increase in interest income compared to the same quarter last year was due primarily to higher average balances of loans and interest-bearing cash, a 41 basis point increase in the average yield on loans, a 20 basis point increase in the average yield on interest-bearing cash, and a seven basis point increase in the average yield on investments, partially offset by a decline in the average balance of investments.

    Interest income on loans increased $556 thousand, or 4.5%, to $12.9 million for the quarter ended September 30, 2024, compared to $12.3 million for the quarter ended June 30, 2024, and increased $1.4 million, or 11.9%, from $11.5 million for the quarter ended September 30, 2023. The average balance of total loans was $898.6 million for the quarter ended September 30, 2024, up from $891.9 million for the quarter ended June 30, 2024 and $862.4 million for the quarter ended September 30, 2023. The average yield on total loans was 5.70% for the quarter ended September 30, 2024, up from 5.56% for the quarter ended June 30, 2024 and 5.29% for the quarter ended September 30, 2023. The increase in the average loan yield during the current quarter, compared to both the prior quarter and the third quarter of 2023, was primarily due to the origination of new loans at higher interest rates. Additionally, variable-rate loans resetting to higher rates contributed to the increase in average yield compared to the third quarter of 2023. The increase in the average balance during the current quarter compared to the prior quarter was primarily due to growth in commercial and multifamily loans, manufactured housing loans and consumer loans, with the growth in consumer loans coming primarily from floating home loans. This was partially offset by a decline in construction and land loans. The average balances for commercial business loans and one-to-four family loans remained relatively flat from the second quarter of 2024. The increase in the average balance of loans during the current quarter compared to the third quarter of 2023 was primarily due to loan growth across all categories, except for one-to-four family loans, construction and land loans, and commercial business loans, with the largest decrease being in construction and land loans.

    Interest income on investments was $132 thousand for the quarter ended September 30, 2024, compared to $133 thousand for the quarter ended June 30, 2024, and $139 thousand for the quarter ended September 30, 2023. Interest income on interest-bearing cash increased $244 thousand to $1.8 million for the quarter ended September 30, 2024, compared to $1.6 million for the quarter ended June 30, 2024, and increased $788 thousand from $1.0 million for the quarter ended September 30, 2023. These increases were due to higher average balances of interest-bearing cash, with the increase from the same quarter in the prior year also resulting from a higher average yield.

    Interest expense increased $374 thousand, or 5.7%, to $7.0 million for the quarter ended September 30, 2024, from $6.6 million for the quarter ended June 30, 2024, and increased $2.4 million, or 54.2%, from $4.5 million for the quarter ended September 30, 2023. The increase in interest expense during the current quarter from the prior quarter was primarily the result of a $38.8 million increase in the average balance of savings and money market accounts, as well as higher average rates paid on these accounts, partially offset by a $13.9 million decrease in the average balance of certificate accounts. The increase in interest expense during the current quarter from the comparable period a year ago was primarily the result of a $9.8 million increase in the average balance of certificate accounts and a $148.1 million increase in the average balance of savings and money market accounts, as well as higher average rates paid on all interest-bearing deposits. This was partially offset by a $46.3 million decrease in the average balance of demand and NOW accounts and a $2.8 million decrease in the average balance of FHLB advances. The average cost of deposits was 2.74% for the quarter ended September 30, 2024, up from 2.67% for the quarter ended June 30, 2024 and 1.85% for the quarter ended September 30, 2023. The average cost of FHLB advances was 4.32% for both the quarters ended September 30, 2024 and June 30, 2024, and down from 4.38% for the quarter ended September 30, 2023.

    NIM (annualized) was 2.98% for the quarter ended September 30, 2024, up from 2.92% for the quarter ended June 30, 2024 and down from 3.38% for the quarter ended September 30, 2023. The increase in NIM from the prior quarter was result of an increase in interest income on interest-earning assets, partially offset by an increase in the cost of funding. The decrease in NIM from the quarter one year ago was primarily due to the cost of funding increasing at a faster pace than the yield earned on interest-earning assets, driven by the higher average balance of higher costing money market and certificate accounts.

    A provision for credit losses of $8 thousand was recorded for the quarter ended September 30, 2024, consisting of a provision for credit losses on loans of $106 thousand and a release of provision for credit losses on unfunded loan commitments of $98 thousand. This compared to a release of provision for credit losses of $109 thousand for the quarter ended June 30, 2024, consisting of a release of provision for credit losses on loans of $88 thousand and a release of provision for credit losses on unfunded loan commitments of $21 thousand, and a provision for credit losses of $75 thousand for the quarter ended September 30, 2023, consisting of a provision for credit losses on loans of $224 thousand and a release of the provision for credit losses on unfunded loan commitments of$149 thousand. The increase in the provision for credit losses for the quarter ended September 30, 2024 compared to the quarter ended June 30, 2024 resulted primarily from growth in the loan portfolio and higher quantitative loss rates, which were influenced by a forecast of higher unemployment, and enhancements to the loss model, including an additional qualitative adjustment related to loan review. These adjustments were partially offset by decline in the balance of the construction loan portfolio, which typically has higher loss rates, and a decrease in the qualitative risk adjustment for construction loans as projects were completed and market conditions improved. Expected loss estimates consider various factors, such as market conditions, borrower -specific information, projected delinquencies, and the impact of economic conditions on borrowers’ ability to repay.

    Noninterest income increased $73 thousand, or 6.3%, to $1.2 million for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, and increased $154 thousand, or 14.2%, compared to the quarter ended September 30, 2023. The increase from the prior quarter was primarily related to a $217 thousand upward adjustment in fair value of mortgage servicing rights and a $52 thousand increase in earnings from bank-owned life insurance (“BOLI”), both influenced by fluctuating market interest rates. These gains were partially offset by a $133 thousand decrease in service charges and fee income, which was elevated in the prior quarter due to the recovery of potential future lost fee income due to vendor error. Additionally, there was a $34 thousand decrease in net gain on sale of loans, due to lower sales volume, and a $30 thousand decrease in gain on disposal of assets due to insurance claims on the loss of fully depreciated assets in second quarter of 2024. The increase in noninterest income from the comparable period in 2023 was primarily due to an $98 thousand increase in earnings on BOLI due to market rate fluctuations, and an $179 thousand increase in the fair value adjustment on mortgage servicing rights due to changes in prepayment speeds, servicing costs, and discount rate. These increases were partially offset by a $72 thousand decrease in service charges and fee income primarily due to a volume incentive paid by Mastercard in 2023, a $36 thousand decrease in net gain on sale of loans for reason similar to those noted above, and a decrease in mortgage servicing income as a result of the portfolio paying down at a faster rate than we are replacing the loans. Additionally, mortgage servicing income decreased by $15 thousand compared to the third quarter of 2023. Loans sold during the quarter ended September 30, 2024, totaled $2.4 million, compared to $4.0 million and $4.4 million of loans sold during the quarters ended June 30, 2024 and September 30, 2023, respectively.

    Noninterest expense decreased $58 thousand, or 0.7%, to $7.7 million for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, and decreased $31 thousand, or 0.4%, from the quarter ended September 30, 2023. The decrease from the quarter ended June 30, 2024 was primarily a result of lower a $189 thousand decrease in salaries and benefits, primarily due to lower incentive compensation accruals. This was partially offset by an $157 thousand increase in data processing expenses, largely due to a vendor reimbursement received in the previous quarter for software implementation costs. Additionally, regulatory assessments declined $31 thousand due to a lower accrual for exam costs. Compared to same quarter in 2023, the decrease in noninterest expense was primarily due to lower operations, data processing, and occupancy expenses, which were partially offset by a $321 thousand increase in salaries and benefits. Operations expenses decreased due to reduction in loan originations costs, office expenses, marketing costs, legal fees, and charitable contributions, partially offset by an operational loss from a fraudulently obtained loan charged off in the third quarter of 2024. Data processing expenses decreased due to one-time costs related to new technology implemented in 2023, while occupancy expenses decreased primarily due fully amortized leasehold improvements. The increase in salaries and benefits compared to the third quarter of 2023 reflected higher incentive compensation, medical expenses, retirement plan costs, and directors’ fees (due to the addition of a new director), partially offset by lower salaries from a restructuring of positions at the end of 2023.

    Balance Sheet Review, Capital Management and Credit Quality

    Assets at September 30, 2024 totaled $1.10 billion, an increase from $1.07 billion at June 30, 2024 and $1.03 billion at September 30, 2023. The increase in total assets from June 30, 2024 and one year ago was primarily due to an increase in cash and cash equivalents and in loans held-for-portfolio.

    Cash and cash equivalents increased $13.8 million, or 10.2%, to $148.9 million at September 30, 2024, compared to $135.1 million at June 30, 2024, and increased $47.0 million, or 46.2%, from $101.9 million at September 30, 2023. The increase from the prior quarter and from one year ago was primarily due to the increase in deposits exceeding the increase in loans held-for-portfolio.

    Investment securities increased $28 thousand, or 0.3%, to $10.2 million at September 30, 2024, compared to $10.1 million at June 30, 2024, and increased $17 thousand, or 0.2%, from $10.2 million at September 30, 2023. Held-to-maturity securities totaled $2.1 million at both September 30, 2024 and June 30, 2024, and totaled $2.2 million at September 30, 2023. Available-for-sale securities totaled $8.0 million at September 30, 2024, June 30, 2024 and September 30, 2023.

    Loans held-for-portfolio were $901.7 million at September 30, 2024, compared to $889.3 million at June 30, 2024 and $875.4 million at September 30, 2023. The increase from to June 30, 2024, primarily resulted from growth in one-to-four family home loans, commercial and multifamily loans, as well as manufactured home and floating home loans, partially offset by decreases in construction and land loans and home equity loans. The increase in one-to-four family home loans was primarily due to new originations exceeding prepayments during the quarter, while the increase in commercial and multifamily loans primarily resulted from conversion of construction projects to permanent financing. The increase in manufactured home loans and floating home loans relates to continued strong demand for this type of financing in our market. The decrease in construction and land loans was primarily due to project completions and reduced demand caused by higher interest rates, which limited new financing opportunities. The decrease in home equity loans reflected normal payment fluctuations. Compared to September 30, 2024, the overall increase in loans held-for-portfolio was due to sustained strong loan demand and slower prepayment activity, with increases primarily related to commercial and multifamily loans, home equity loans, manufactured home loans and floating home loans.

    Nonperforming assets (“NPAs”), which are comprised of nonaccrual loans (including nonperforming modified loans), other real estate owned (“OREO”) and other repossessed assets, decreased $420 thousand, or 4.7%, to $8.6 million at September 30, 2024, from $9.0 million at June 30, 2024 and increased $6.3 million, or 268.2%, from $2.3 million at September 30, 2023. The decrease in NPAs from June 30, 2024 was primarily due to the payoff of three loans totaling $175 thousand and one loan totaling $421 thousand returning to accrual status, partially offset by the addition of eight loans totaling $260 thousand to nonaccrual. The increase in NPAs from one year ago was primarily due to the placement of an additional $7.7 million of loans on nonaccrual status, which included a $3.7 million matured commercial real estate loan where the borrower is in the process of securing financing from another lender, a $2.4 million floating home loan, and a $985 thousand commercial real estate loan, all of which are well secured, and one manufactured home loan of $115 thousand that was repossessed in the first quarter of 2024. These additions were partially offset by the payoff of seven loans totaling $877 thousand, and normal payment amortization.

    NPAs to total assets were 0.78%, 0.84% and 0.23% at September 30, 2024, June 30, 2024 and September 30, 2023, respectively. The allowance for credit losses on loans to total loans outstanding was 0.95% at September 30, 2024, compared to 0.96% at both June 30, 2024 and September 30, 2023. Net loan charge-offs for the third quarter of 2024 totaled $14 thousand, compared to $17 thousand for the second quarter of 2023, and $3 thousand for the third quarter of 2023.

    The following table summarizes our NPAs at the dates indicated (dollars in thousands):

      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Nonperforming Loans:                  
    One-to-four family $ 745     $ 822     $ 835     $ 1,108     $ 1,137  
    Home equity loans   338       342       83       84       86  
    Commercial and multifamily   4,719       5,161       4,747       —       306  
    Construction and land   25       28       29       —       78  
    Manufactured homes   230       136       166       228       151  
    Floating homes   2,377       2,417       3,192       —       —  
    Commercial business   23       —       —       2,135       —  
    Other consumer   32       3       1       1       4  
    Total nonperforming loans   8,489       8,909       9,053       3,556       1,762  
    OREO and Other Repossessed Assets:                  
    Commercial and multifamily   —       —       575       575       575  
    Manufactured homes   115       115       115       —       —  
    Total OREO and repossessed assets   115       115       690       575       575  
    Total NPAs $ 8,604     $ 9,024     $ 9,743     $ 4,131     $ 2,337  
                       
    Percentage of Nonperforming Loans:                  
    One-to-four family   8.7 %     9.1 %     8.5 %     26.9 %     48.7 %
    Home equity loans   3.9       3.8       0.9       2.0       3.7  
    Commercial and multifamily   54.8       57.2       48.7       —       13.1  
    Construction and land   0.3       0.3       0.3       —       3.3  
    Manufactured homes   2.7       1.5       1.7       5.5       6.4  
    Floating homes   27.6       26.8       32.8       —       —  
    Commercial business   0.3       —       —       51.7       —  
    Other consumer   0.4       —       —       —       0.2  
    Total nonperforming loans   98.7       98.7       92.9       86.1       75.4  
    Percentage of OREO and Other Repossessed Assets:                  
    Commercial and multifamily   —       —       5.9       13.9       24.6  
    Manufactured homes   1.3       1.3       1.2       —       —  
    Total OREO and repossessed assets   1.3       1.3       7.1       13.9       24.6  
    Total NPAs   100.0 %     100.0 %     100.0 %     100.0 %     100.0 %
     

    The following table summarizes the allowance for credit losses at the dates and for the periods indicated (dollars in thousands, unaudited):

      At or For the Quarter Ended:
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Allowance for Credit Losses on Loans                  
    Balance at beginning of period $ 8,493     $ 8,598     $ 8,760     $ 8,438     $ 8,217  
    (Release of) Provision for credit losses during the period   106       (88 )     (106 )     337       224  
    Net charge-offs during the period   (14 )     (17 )     (56 )     (15 )     (3 )
    Balance at end of period $ 8,585     $ 8,493     $ 8,598     $ 8,760     $ 8,438  
    Allowance for Credit Losses on Unfunded Loan Commitments                  
    Balance at beginning of period $ 245     $ 266     $ 193     $ 557     $ 706  
    (Release of) Provision for credit   (98 )     (21 )     73       (364 )     (149 )
    Balance at end of period   147       245       266       193       557  
    Allowance for Credit Losses $ 8,732     $ 8,738     $ 8,864     $ 8,953     $ 8,995  
    Allowance for credit losses on loans to total loans   0.95 %     0.96 %     0.96 %     0.98 %     0.96 %
    Allowance for credit losses to total loans   0.97 %     0.98 %     0.99 %     1.00 %     1.03 %
    Allowance for credit losses on loans to total nonperforming loans   101.13 %     95.33 %     94.97 %     246.34 %     478.89 %
    Allowance for credit losses to total nonperforming loans   102.86 %     98.08 %     97.91 %     251.77 %     510.50 %
     

    Deposits increased $23.4 million, or 2.6%, to $930.2 million at September 30, 2024, from $906.8 million at June 30, 2024 and increased $69.3 million, or 8.1%, from $860.9 million at September 30, 2023. The increase in deposits compared to the prior quarter-end was primarily a result of an increase of $17.0 million related to one new depositor relationship, as well as a $5.3 million increase in related party money market deposits. Compared to a year ago, the increase was primarily a result of an increase in certificate accounts and money market accounts, including $50.2 million of related party deposits, which helped fund organic loan growth. These increases were partially offset by decreases in noninterest-bearing and interest-bearing demand accounts and savings accounts, as interest rate sensitive clients shifted funds from lower-cost deposits, such as noninterest-bearing deposits, into higher rate money market and time deposits. Noninterest-bearing deposits increased $4.8 million, or 3.8%, to $129.7 million at September 30, 2024, compared to $124.9 million at June 30, 2024 and decreased $24.2 million, or 15.7%, from $153.9 million at September 30, 2023. Noninterest-bearing deposits represented 14.0%, 13.8% and 17.9% of total deposits at September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

    FHLB advances totaled $40.0 million at each of September 30, 2024, June 30, 2024, and September 30, 2023. FHLB advances are primarily used to support organic loan growth and to maintain liquidity ratios in line with our asset/liability objectives. FHLB advances outstanding at September 30, 2024 had maturities ranging from late 2024 through early 2028. Subordinated notes, net totaled $11.7 million at each of September 30, 2024, June 30, 2024 and September 30, 2023.

    Stockholders’ equity totaled $102.2 million at September 30, 2024, an increase of $892 thousand, or 0.9%, from $101.3 million at June 30, 2024, and an increase of $2.0 million, or 2.0%, from $100.2 million at September 30, 2023. The increase in stockholders’ equity from June 30, 2024 was primarily the result of $1.2 million of net income earned during the current quarter and a $127 thousand decrease in accumulated other comprehensive loss, net of tax, partially offset by the payment of $487 thousand in cash dividends to the Company’s stockholders.

    Sound Financial Bancorp, Inc., a bank holding company, is the parent company of Sound Community Bank, which is headquartered in Seattle, Washington and has full-service branches in Seattle, Tacoma, Mountlake Terrace, Sequim, Port Angeles, Port Ludlow and University Place. Sound Community Bank is a Fannie Mae Approved Lender and Seller/Servicer with one loan production office located in the Madison Park neighborhood of Seattle. For more information, please visit www.soundcb.com.

    Forward-Looking Statements Disclaimer

    When used in this press release and in documents filed or furnished by Sound Financial Bancorp, Inc. (the “Company”) with the Securities and Exchange Commission (the “SEC”), in the Company’s other press releases or other public or stockholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “intends” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which are based on various underlying assumptions and expectations and are subject to risks, uncertainties and other unknown factors, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events and may turn out to be wrong because of inaccurate assumptions we might make, because of the factors listed below or because of other factors that we cannot foresee that could cause our actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made.

    Factors which could cause actual results to differ materially, include, but are not limited to: adverse impacts to economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation or deflation, a recession or slowed economic growth, as well as supply chain disruptions; changes in the interest rate environment, including increases and decreases in the Board of Governors of the Federal Reserve System (the Federal Reserve) benchmark rate and the duration at which such interest rate levels are maintained, which could adversely affect our revenues and expenses, the values of our assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and the current and future monetary policies of the Federal Reserve in response thereto; the effects of any federal government shutdown; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; changes in consumer spending, borrowing and savings habits; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; the Company’s ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company’s market area; secondary market conditions for loans; expectations regarding key growth initiatives and strategic priorities; environmental, social and governance goals and targets; results of examinations of the Company or the Bank by their regulators; increased competition; changes in management’s business strategies; legislative changes; changes in the regulatory and tax environments in which the Company operates; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on our third-party vendors; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events on our business; and other factors described in the Company’s latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other documents filed with or furnished to the SEC, which are available at www.soundcb.com and on the SEC’s website at www.sec.gov. The risks inherent in these factors could cause the Company’s actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company and could negatively affect the Company’s operating and stock performance.

    The Company does not undertake—and specifically disclaims any obligation—to revise any forward-looking statement to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statement.


    CONSOLIDATED INCOME STATEMENTS
    (Dollars in thousands, unaudited)

        For the Quarter Ended
        September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Interest income   $ 14,838   $ 14,039     $ 13,760     $ 13,337     $ 12,686  
    Interest expense     6,965     6,591       6,300       5,770       4,518  
    Net interest income     7,873     7,448       7,460       7,567       8,168  
    Provision for (release of) credit losses     8     (109 )     (33 )     (27 )     75  
    Net interest income after provision for (release of) credit losses     7,865     7,557       7,493       7,594       8,093  
    Noninterest income:                    
    Service charges and fee income     628     761       612       576       700  
    Earnings on bank-owned life insurance     186     134       177       222       88  
    Mortgage servicing income     280     279       282       288       295  
    Fair value adjustment on mortgage servicing rights     101     (116 )     (65 )     (96 )     (78 )
    Net gain on sale of loans     40     74       90       76       76  
    Other income     —     30       —       —       —  
    Total noninterest income     1,235     1,162       1,096       1,066       1,081  
    Noninterest expense:                    
    Salaries and benefits     4,469     4,658       4,543       3,802       4,148  
    Operations     1,540     1,569       1,457       1,537       1,625  
    Regulatory assessments     189     220       189       198       183  
    Occupancy     414     397       444       458       458  
    Data processing     1,067     910       1,017       1,311       1,296  
    Net (gain) loss on OREO and repossessed assets     —     (17 )     6       —       —  
    Total noninterest expense     7,679     7,737       7,656       7,306       7,710  
    Income before provision for income taxes     1,421     982       933       1,354       1,464  
    Provision for income taxes     267     187       163       143       295  
    Net income   $ 1,154   $ 795     $ 770     $ 1,211     $ 1,169  
     

    CONSOLIDATED INCOME STATEMENTS
    (Dollars in thousands, unaudited)

        For the Nine Months Ended September 30
          2024       2023  
    Interest income   $ 42,638     $ 37,273  
    Interest expense     19,856       10,990  
    Net interest income     22,782       26,283  
    (Release of) provision for credit losses     (134 )     (246 )
    Net interest income after (release of) provision for credit losses     22,916       26,529  
    Noninterest income:        
    Service charges and fee income     2,001       1,951  
    Earnings on bank-owned life insurance     498       957  
    Mortgage servicing income     841       891  
    Fair value adjustment on mortgage servicing rights     (81 )     (123 )
    Net gain on sale of loans     205       264  
    Other income     30       —  
    Total noninterest income     3,494       3,940  
    Noninterest expense:        
    Salaries and benefits     13,670       13,333  
    Operations     4,566       4,557  
    Regulatory assessments     598       490  
    Occupancy     1,255       1,352  
    Data processing     2,995       3,077  
    Net (gain) loss on OREO and repossessed assets     (10 )     13  
    Total noninterest expense     23,074       22,822  
    Income before provision for income taxes     3,336       7,647  
    Provision for income taxes     617       1,419  
    Net income   $ 2,719     $ 6,228  
     

    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, unaudited)

        September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    ASSETS                    
    Cash and cash equivalents   $ 148,930     $ 135,111     $ 137,977     $ 49,690     $ 101,890  
    Available-for-sale securities, at fair value     8,032       7,996       8,115       8,287       7,980  
    Held-to-maturity securities, at amortized cost     2,139       2,147       2,157       2,166       2,174  
    Loans held-for-sale     65       257       351       603       1,153  
    Loans held-for-portfolio     901,733       889,274       897,877       894,478       875,434  
    Allowance for credit losses – loans     (8,585 )     (8,493 )     (8,598 )     (8,760 )     (8,438 )
    Total loans held-for-portfolio, net     893,148       880,781       889,279       885,718       866,996  
    Accrued interest receivable     3,705       3,413       3,617       3,452       3,415  
    Bank-owned life insurance, net     22,363       22,172       22,037       21,860       21,638  
    Other real estate owned (“OREO”) and other repossessed assets, net     115       115       690       575       575  
    Mortgage servicing rights, at fair value     4,665       4,540       4,612       4,632       4,681  
    Federal Home Loan Bank (“FHLB”) stock, at cost     2,405       2,406       2,406       2,396       2,783  
    Premises and equipment, net     4,807       4,906       6,685       5,240       5,204  
    Right-of-use assets     3,779       4,020       4,259       4,496       4,732  
    Other assets     6,777       6,995       4,500       6,106       6,955  
    TOTAL ASSETS   $ 1,100,930     $ 1,074,859     $ 1,086,685     $ 995,221     $ 1,030,176  
    LIABILITIES                    
    Interest-bearing deposits   $ 800,480     $ 781,854     $ 788,217     $ 699,813     $ 706,954  
    Noninterest-bearing deposits     129,717       124,915       128,666       126,726       153,921  
    Total deposits     930,197       906,769       916,883       826,539       860,875  
    Borrowings     40,000       40,000       40,000       40,000       40,000  
    Accrued interest payable     908       760       719       817       588  
    Lease liabilities     4,079       4,328       4,576       4,821       5,065  
    Other liabilities     9,711       9,105       9,578       9,563       9,794  
    Advance payments from borrowers for taxes and insurance     2,047       812       2,209       1,110       1,909  
    Subordinated notes, net     11,749       11,738       11,728       11,717       11,707  
    TOTAL LIABILITIES     998,691       973,512       985,693       894,567       929,938  
    STOCKHOLDERS’ EQUITY:                    
    Common stock     25       25       25       25       25  
    Additional paid-in capital     28,296       28,198       28,110       27,990       28,112  
    Retained earnings     74,840       74,173       73,907       73,627       73,438  
    Accumulated other comprehensive loss, net of tax     (922 )     (1,049 )     (1,050 )     (988 )     (1,337 )
    TOTAL STOCKHOLDERS’ EQUITY     102,239       101,347       100,992       100,654       100,238  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 1,100,930     $ 1,074,859     $ 1,086,685     $ 995,221     $ 1,030,176  
     

    KEY FINANCIAL RATIOS
    (unaudited)

        For the Quarter Ended
        September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Annualized return on average assets     0.42 %     0.30 %     0.29 %     0.46 %     0.46 %
    Annualized return on average equity     4.50 %     3.17 %     3.06 %     4.78 %     4.60 %
    Annualized net interest margin(1)     2.98 %     2.92 %     2.95 %     3.04 %     3.38 %
    Annualized efficiency ratio(2)     84.31 %     89.86 %     89.48 %     84.63 %     83.36 %
    (1)   Net interest income divided by average interest earning assets.
    (2)   Noninterest expense divided by total revenue (net interest income and noninterest income).
     

    PER COMMON SHARE DATA
    (unaudited)

        At or For the Quarter Ended
        September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023
    Basic earnings per share   $ 0.45     $ 0.31     $ 0.30     $ 0.47     $ 0.45  
    Diluted earnings per share   $ 0.45     $ 0.31     $ 0.30     $ 0.47     $ 0.45  
    Weighted-average basic shares outstanding     2,544,233       2,540,538       2,539,213       2,542,175       2,553,773  
    Weighted-average diluted shares outstanding     2,569,368       2,559,015       2,556,958       2,560,656       2,571,808  
    Common shares outstanding at period-end     2,564,095       2,557,284       2,558,546       2,549,427       2,568,054  
    Book value per share   $ 39.87     $ 39.63     $ 39.47     $ 39.48     $ 39.03  
     

    AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE RATE PAID
    (Dollars in thousands, unaudited)

    The following tables present, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates. Income and yields on tax-exempt obligations have not been computed on a tax equivalent basis. All average balances are daily average balances. Nonaccrual loans have been included in the table as loans carrying a zero yield for the period they have been on nonaccrual (dollars in thousands).

      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
      Average
    Outstanding
    Balance    		   Interest
    Earned/
    Paid    		   Yield/Rate   Average Outstanding Balance   Interest
    Earned/
    Paid    		   Yield/Rate   Average Outstanding Balance   Interest
    Earned/
    Paid    		   Yield/Rate
    Interest-Earning Assets:                                  
    Loans receivable $ 898,570     $ 12,876   5.70 %   $ 891,863     $ 12,320   5.56 %   $ 862,397     $ 11,505   5.29 %
    Interest-earning cash   138,240       1,830   5.27 %     120,804       1,586   5.28 %     81,616       1,042   5.07 %
    Investments   13,806       132   3.80 %     13,935       133   3.84 %     14,793       139   3.73 %
    Total interest-earning assets $ 1,050,616       14,838   5.62 %     1,026,602     $ 14,039   5.50 %   $ 958,806       12,686   5.25 %
    Interest-Bearing Liabilities:                                  
    Savings and money market accounts $ 340,281       2,688   3.14 %   $ 301,454       2,115   2.82 %   $ 192,214       720   1.49 %
    Demand and NOW accounts   148,252       151   0.41 %     153,739       148   0.39 %     194,561       173   0.35 %
    Certificate accounts   303,632       3,524   4.62 %     317,496       3,731   4.73 %     293,820       2,984   4.03 %
    Subordinated notes   11,745       168   5.69 %     11,735       168   5.76 %     11,703       168   5.70 %
    Borrowings   40,000       434   4.32 %     40,000       429   4.31 %     42,815       473   4.38 %
    Total interest-bearing liabilities $ 843,910       6,965   3.28 %   $ 824,424       6,591   3.22 %   $ 735,113       4,518   2.44 %
    Net interest income/spread     $ 7,873   2.34 %       $ 7,448   2.28 %       $ 8,168   2.81 %
    Net interest margin         2.98 %           2.92 %           3.38 %
                                       
    Ratio of interest-earning assets to interest-bearing liabilities   124 %             125 %             130 %        
    Noninterest-bearing deposits $ 132,762             $ 128,878             $ 151,298          
    Total deposits   924,927     $ 6,363   2.74 %     901,567     $ 5,994   2.67 %     831,893     $ 3,877   1.85 %
    Total funding (1)   976,672       6,965   2.84 %     953,302       6,591   2.78 %     886,411       4,518   2.02 %
    (1)   Total funding is the sum of average interest-bearing liabilities and average noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
     
      Nine Months Ended
      September 30, 2024   September 30, 2023
      Average
    Outstanding
    Balance    		   Interest
    Earned/
    Paid    		   Yield/Rate   Average
    Outstanding
    Balance    		   Interest
    Earned/
    Paid    		   Yield/Rate
    Interest-Earning Assets:                      
    Loans receivable $ 895,300     $ 37,429   5.58 %   $ 865,357     $ 34,437   5.32 %
    Interest-earning cash   122,194       4,832   5.28 %     70,094       2,447   4.67 %
    Investments   12,607       377   3.99 %     13,962       389   3.73 %
    Total interest-earning assets $ 1,030,101       42,638   5.53 %   $ 949,413       37,273   5.25 %
    Interest-Bearing Liabilities:                      
    Savings and money market accounts $ 308,845       6,669   2.88 %   $ 173,319       1,197   0.92 %
    Demand and NOW accounts   153,897       440   0.38 %     216,753       587   0.36 %
    Certificate accounts   312,176       10,950   4.69 %     273,564       7,182   3.51 %
    Subordinated notes   11,735       504   5.74 %     11,693       504   5.76 %
    Borrowings   40,000       1,293   4.32 %     45,280       1,520   4.49 %
    Total interest-bearing liabilities $ 826,653       19,856   3.21 %   $ 720,609       10,990   2.04 %
    Net interest income/spread     $ 22,782   2.32 %       $ 26,283   3.21 %
    Net interest margin         2.95 %           3.70 %
                           
    Ratio of interest-earning assets to interest-bearing liabilities   125 %             132 %        
    Noninterest-bearing deposits $ 131,365             $ 161,051          
    Total deposits   906,283     $ 18,059   2.66 %     824,687     $ 8,966   1.45 %
    Total funding (1)   958,018       19,856   2.77 %     881,660       10,990   1.67 %
    (1)   Total funding is the sum of average interest-bearing liabilities and average noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
     

    LOANS
    (Dollars in thousands, unaudited)

        September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Real estate loans:                    
    One-to-four family   $ 271,702     $ 268,488     $ 279,213     $ 279,448     $ 280,556  
    Home equity     25,199       26,185       24,380       23,073       21,313  
    Commercial and multifamily     358,587       342,632       324,483       315,280       304,252  
    Construction and land     85,724       96,962       111,726       126,758       118,619  
    Total real estate loans     741,212       734,267       739,802       744,559       724,740  
    Consumer Loans:                    
    Manufactured homes     40,371       38,953       37,583       36,193       34,652  
    Floating homes     86,155       81,622       84,237       75,108       73,716  
    Other consumer     18,266       18,422       18,847       19,612       18,710  
    Total consumer loans     144,792       138,997       140,667       130,913       127,078  
    Commercial business loans     17,481       17,860       19,075       20,688       25,033  
    Total loans     903,485       891,124       899,544       896,160       876,851  
    Less:                    
    Premiums     736       754       808       829       850  
    Deferred fees, net     (2,488 )     (2,604 )     (2,475 )     (2,511 )     (2,267 )
    Allowance for credit losses – loans     (8,585 )     (8,493 )     (8,598 )     (8,760 )     (8,438 )
    Total loans held-for-portfolio, net   $ 893,148     $ 880,781     $ 889,279     $ 885,718     $ 866,996  
     

    DEPOSITS
    (Dollars in thousands, unaudited)

        September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Noninterest-bearing demand   $ 129,717     $ 124,915     $ 128,666     $ 126,726     $ 153,921  
    Interest-bearing demand     148,740       152,829       159,178       168,346       185,441  
    Savings     61,455       63,368       65,723       69,461       76,729  
    Money market(1)     285,655       253,873       241,976       154,044       143,558  
    Certificates     304,630       311,784       321,340       307,962       301,226  
    Total deposits   $ 930,197     $ 906,769     $ 916,883     $ 826,539     $ 860,875  
    (1)   Includes $5.0 million of brokered deposits at December 31, 2023.
     

    CREDIT QUALITY DATA
    (Dollars in thousands, unaudited)

        At or For the Quarter Ended
        September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Total nonperforming loans   $ 8,489     $ 8,909     $ 9,053     $ 3,556     $ 1,762  
    OREO and other repossessed assets     115       115       690       575       575  
    Total nonperforming assets   $ 8,604     $ 9,024     $ 9,743     $ 4,131     $ 2,337  
    Net charge-offs during the quarter   $ (14 )   $ (17 )   $ (56 )   $ (15 )   $ (3 )
    Provision for (release of) credit losses during the quarter     8       (109 )     (33 )     (27 )     75  
    Allowance for credit losses – loans     8,585       8,493       8,598       8,760       8,438  
    Allowance for credit losses – loans to total loans     0.95 %     0.96 %     0.96 %     0.98 %     0.96 %
    Allowance for credit losses – loans to total nonperforming loans     101.13 %     95.33 %     94.97 %     246.34 %     478.89 %
    Nonperforming loans to total loans     0.94 %     1.00 %     1.01 %     0.40 %     0.20 %
    Nonperforming assets to total assets     0.78 %     0.84 %     0.90 %     0.42 %     0.23 %
     

    OTHER STATISTICS
    (Dollars in thousands, unaudited)

        At or For the Quarter Ended
        September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
                         
    Total loans to total deposits     97.13 %     98.27 %     98.11 %     108.42 %     101.86 %
    Noninterest-bearing deposits to total deposits     13.95 %     13.78 %     14.03 %     15.33 %     17.88 %
                         
    Average total assets for the quarter   $ 1,095,404     $ 1,070,579     $ 1,062,036     $ 1,033,985     $ 1,005,223  
    Average total equity for the quarter   $ 102,059     $ 100,961     $ 101,292     $ 100,612     $ 100,927  
                                             

    Contact

    Financial:      
    Wes Ochs
    Executive Vice President/CFO
    (206) 436-8587
     
    Media:      
    Laurie Stewart
    President/CEO
    (206) 436-1495

    The MIL Network –

  • MIL-OSI Economics: IMF Releases the 2024 Financial Access Survey Results

    Source: International Monetary Fund

    October 30, 2024

    Washington, DC: The International Monetary Fund (IMF) released the results of the 2024 Financial Access Survey (FAS), marking the 15th anniversary of the FAS. The report “FAS: 2024 Highlights,” published along with the data release, summarizes the key trends on access to and usage of financial services over the past few years. Established in 2009, the FAS has played a crucial role in providing essential data to develop and evaluate financial inclusion policies, a topic of key relevance for the IMF, as it fosters broader economic participation, reduces inequalities, promotes inclusive growth, and aids in achieving the Sustainable Development Goals (SDGs). The FAS stands as the most comprehensive annual supply-side database on financial inclusion, boasting nearly complete global coverage. It covers 192 economies, featuring 121 series and 70 normalized indicators for global comparison. The FAS dataset spans from 2004 to 2023, and it continues to evolve in line with financial innovations such as the provision of digital financial services and the increasing demand for gender-disaggregated data.

    Digital Financial Services Continue to Make Gains

    There has been a substantial increase in the usage of non-traditional financial services, including mobile and internet banking, with mobile money being particularly important in Sub-Saharan Africa. Yet, usage of traditional financial services remains essential in many economies. For example, from 2013 to 2019, deposit accounts per 100 adults increased by over 40% in emerging and developing Europe and Sub-Saharan Africa. The growth of digital financial services has also led to an increase in non-traditional access points, such as retail and mobile money agents, while traditional access methods like ATMs and bank branches have seen a decline, especially since the COVID-19 pandemic (Figure).

    Traditional and Non-traditional Access Points in Recent Years (2019 to 2023)

    (Number of Access Points Per 100,000 Adults)
     

    Source: Financial Access Survey and IMF staff calculations.

    Notes: These charts show the weighted average by region for economies whose data are available for 2019–2023. Country coverage differs across indicators depending on data availability. While three economies from Latin America and the Caribbean (El Salvador, Colombia, and Haiti) report data on number of registered mobile money agents, none provide data for all five years covered in this chart and are therefore not included.

    Microfinance Institutions Have Continued Supporting Economically Marginalized Groups

    Financing by microfinance institutions has shown resilience amid recent economic shocks. In various economies, borrowing from microfinance institutions increased, as indicated by the growth in the number of accounts and outstanding loans. While commercial banks usually provide larger loan amounts, microfinance institutions serve a broader client base, as evidenced by the larger number of loan accounts compared to those at commercial banks.

    Challenges in Narrowing Gender Gaps Remain 

    Despite the benefits of incorporating women into the financial system, substantial gender gaps in the usage of financial services persist. These gaps are particularly evident in the usage of deposit and loan accounts. Globally, women’s outstanding deposit amounts as percentage of men’s stand at 64 percent, while their outstanding loan balances account for only 46 percent of men’s. In terms of regional differences, advanced economies demonstrate a more gender-equal financial inclusion compared to emerging economies. Among the latter, emerging and developing Europe and Latin America and the Caribbean show relatively higher gender equality.

    Lending to SMEs Declined

    Data from FAS indicate a decrease in the outstanding amounts of SME loans from 2021 to 2023 in most economies that reported this information. Although several supportive policies were introduced during the COVID-19 Pandemic, subsequent developments, including tighter financial conditions and geopolitical tensions, may have contributed to the decline in SME loans.

    Additional Enhancements to the FAS are Being Tested

    To ensure the FAS data remain vital for informing financial inclusion policy, a pilot exercise is underway to assess the potential for enhancing the FAS. This includes incorporating additional gender disaggregation, information on new fintech services, and important factors such as loan pricing and risks, especially for underserved populations.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Pemba Sherpa

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    @IMFSpokesperson

    MIL OSI Economics –

  • MIL-OSI United Kingdom: What the Great Gale of 1824 taught us about extreme weather

    Source: United Kingdom – Government Statements

    November is the 200th anniversary of the Great Gale of 1824. It killed nearly 100 people and destroyed villages along the south coast of England.

    There is a free public exhibition about the impacts of the Great Gale on the Dorset coast.

    The Environment Agency, Dorset Coast Forum and Bournemouth, Christchurch and Poole (BCP) Council are raising awareness of extreme weather and flooding as they mark the 200th anniversary of the 1824 Great Gale.

    On the night of 22 November 1824, a devastating storm struck England’s south coast and raged for two days. Winds reached hurricane force, with gusts exceeding 100 mph, causing widespread damage. Houses were severely flooded, whole villages destroyed, ships lost at sea and nearly 100 people were tragically killed.

    Trail of destruction

    The Dorset coast was hardest hit, but the storm’s impact stretched from Land’s End to Dover. Inland communities did not escape devastation from wind damage and it took many years for affected communities to recover.

    At Plymouth, the storm sunk 22 vessels and swept away over 200,000 tons of stone from the city’s new breakwater which was under construction. While, at Abbotsbury, seawater surged over Chesil Beach, reaching astonishing depths of up to 6.9 metres.

    Watch our animation about the Great Gale’s trail of destruction Great Gale of 1824.

    Rare combination created Dorset’s worst storm

    The Great Gale, considered the most destructive storm ever to strike the Dorset coastline, was caused by a rare combination of factors. Hurricane force winds, spring high tides, extreme low pressure and towering waves created unprecedented conditions for the storm. Its severity was so extreme it is estimated to have a 1 in 10,000 chance of recurring each year.

    Recent events like Storm Boris in Europe, Typhoon Yagi in Asia and Hurricanes Helene and Milton in North America highlight the ongoing threat of severe weather – and, as climate change increases the energy driving these storms, the importance of being prepared.

    How to prepare for extreme weather

    This post is nearly 7m high and shows the 1824 storm’s high water mark which reached 22ft 8in at the Swannery, Abbotsbury, Dorset.

    Know the simple steps to take in advance to protect yourself from flooding.

    Andrea Summers, Environment Agency flood and coastal risk manager for Wessex, said:

    As we remember those who tragically lost their lives 200 years ago, this anniversary serves as a stark reminder of the destructive power of nature and the devastating impact flooding can have on communities.

    Needless to say, we are much more resilient now than we were then, with major innovations in forecasting, warning and defence systems. But our climate is changing, sea levels are rising and extreme weather events are becoming more frequent.

    While the events of November 1824 represent a worst-case scenario, they highlight the importance of being prepared. You should know your flood risk, sign up for flood warnings and make sure your homes and businesses are resilient to flooding.

    What is being done to better protect people

    The Environment Agency is investing to better protect people from flooding and extreme weather. The £200m Flood and Coastal Innovation Programmes is working in partnership with local authorities nationwide to develop, test and implement innovative ways of improving resilience and adapting to the impacts of flooding, coastal erosion and climate change. 

    Additionally, the new Floods Resilience Taskforce is driving government efforts to accelerate the development of flood defences and bolster the nation’s resilience to extreme weather events.

    How to see The Great Gale of 1824 exhibition

    As part of the bicentenary commemorations, the Environment Agency has worked with Dorset Coast Forum and BCP Council to bring together a free public exhibition to explore the impacts the Great Gale left on the Dorset Coast.  For more information, including dates and venues, please visit the Dorset Coast Forum website.

    Updates to this page

    Published 31 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Government ends miners’ pension injustice

    Source: United Kingdom – Government Statements

    Historic injustice reversed as 112,000 former coalminers finally have £1.5 billion from their pension scheme transferred to them, boosting their pensions.

    • Historic injustice reversed as 112,000 former coalminers finally have £1.5 billion from their pension scheme transferred to them, boosting their pensions by 32% 

    • Government delivers longstanding campaign ask from ex-pit workers, alongside new review to also ensure mineworkers receive a fair pension for years to come 

    • Energy Secretary pays tribute to the “mineworkers who powered our country” and the campaigners who fought for justice over many years 

    Over 100,000 former mineworkers will receive £1.5 billion of money that was kept from their pensions, overturning an historic injustice and ensuring fair payouts for years to come. 

    Following the announcement in yesterday’s budget, Energy Secretary Ed Miliband confirmed that the move will mean a 32% boost to the annual pensions of 112,000 former mineworkers – an average increase of £29 per week for each member. 

    The investment reserve fund was set up using profits from the scheme in 1992, to provide a buffer in case the Mineworkers’ Pension Scheme went into deficit. This money was due to be returned to government in 2029.  

    Former mineworkers and their families have fought for justice for many years. In a landmark decision, the fund – now worth £1.5 billion – will be handed over to the pension scheme, ensuring former pit workers who powered the country for decades finally get the just rewards from their labour.  

    When British Coal was privatised in 1994, the government also agreed to take half of any profits generated by the pension scheme, in return for a guarantee that pensions would increase in line with inflation. 

    The scheme has continued to produce strong returns and the government has never paid any funds into it. Therefore, the government is also delivering on its commitment to review this agreement to ensure former miners and their families get a fairer deal in the years ahead, with next steps set out in the coming months. 

    Energy Secretary Ed Miliband said: 

    We owe the mining communities who powered this country a debt of gratitude.  

    For decades, it has been a scandal that the government has taken money that could have been passed to the miners and their families. 

    Today, that scandal ends, and the money is rightfully transferred to the miners. I pay tribute to the campaigners who have fought for justice- today is their victory.

    Minister for Industry Sarah Jones said: 

    Miners powered our industries and our homes for decades. That’s why we have to right the wrong that has denied them the decent pension they deserved. 

    We are handing over the £1.5 billion that for years has sat in the reserve fund unused at times when people needed it most. This will end an historic injustice and will ensure members of the scheme see an average increase of £29 per week added to their pay – an increase of 32%.

    Gary Saunders, Chair of the Trustees of the Mineworker’ Pension Scheme, said: 

    As a Trustee board we are delighted we will be able to put more money in our members’ pockets. We are also grateful to the many members and MPs who have shown support of the Scheme on this matter over the years.

    Allen Young, Pensioner Representative Trustee for the North East of England and Overseas members, said: 

    The government’s decision to make good on this part of its manifesto commitment in respect of the Scheme is a very positive development for our members. The Trustees will use the Investment Reserve to increase our members’ pensions and we will be writing to all members with the good news very shortly.

    The trustees are responsible for deciding how the £1.5 billion fund is distributed amongst their 112,000 members and are now working at speed to deliver the bonus into pension pay packets from November this year. 

    This announcement follows urgent action already taken toward the government’s clean energy superpower mission, helping to boost energy independence and create jobs. In just three months this includes lifting the ban on onshore wind, setting up Great British Energy and announcing a partnership with The Crown Estate to accelerate offshore wind projects, approving four major solar farms, launching the Clean Energy Mission Control centre led by Chris Stark, securing a record pipeline of renewable projects in the latest auction and launching the UK’s first carbon capture sites. 

    Updates to this page

    Published 31 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI USA: PCC short-line railroad receives $37.7 million federal grant to improve eastern Washington track

    Source: Washington State News 2

    OLYMPIA – A project to improve 34 miles of railroad track between Davenport and Wilbur recently received a $37.7 million grant from the Federal Railroad Administration.

    The Washington State Department of Transportation will use the grant, from the Consolidated Rail Infrastructure and Safety Improvements program, to continue enhancements on the state-owned Palouse River and Coulee City (PCC) railway in eastern Washington. Another $20.3 million in state and private matching funds were contributed toward this project.  

    This grant is in addition to two previous federal grants received for upgrades to the PCC system – one in 2018 for $5.6 million and another in 2023 for $72.8 million. These grants were matched with a total of $45 million in state, local and private funds. Capital projects funded by these two grants benefit the PCC system in Grant, Lincoln, Spokane, Adams and Whitman counties.

    The latest Phase III grant will replace 100-year-old worn rail with new heavy 115-pound rail, which can accommodate today’s modern 286,000-pound rail cars. Once the new rail is installed, track speeds will increase from 10 to 25 mph, enabling agricultural products to move more quickly to national and international markets.

    These improvements align with the 2015 PCC Rail System Strategic Plan (PDF 3MB), which serves as a blueprint for investments on the state’s longest short-line railroad. WSDOT oversees the facilities and regulatory portions of the system and contracts with private railroads to operate and maintain each of the three branches. The PCC Rail Authority — an intergovernmental entity formed by the counties — oversees the business and economic development portions of the operating leases.

    MIL OSI USA News –

  • MIL-OSI Economics: Media Release: Australia wins bid to host 2026 global carbon capture conference – Australian Energy Producers

    Source: Australian Petroleum Production & Exploration Association

    Headline: Media Release: Australia wins bid to host 2026 global carbon capture conference – Australian Energy Producers

    The Australian oil and gas sector’s leadership in carbon capture, utilisation and storage (CCUS) – a key emissions reductions technology – is set to be showcased on the world stage.

    Australian Energy Producers is pleased to announce it will co-host the world’s leading CCUS conference in Perth in 2026, in partnership with the CSIRO, CO2CRC and the Department of Climate Change, Energy, the Environment and Water.

    The Greenhouse Gas Control Technologies (GHGT) Conference, run by the IEA Greenhouse Gas R&D Programme, brings together over 1,000 CCUS researchers, industry leaders, government officials, and stakeholders from around the world to discuss and share the latest developments with the technology.

    Australian Energy Producers Chief Executive Samantha McCulloch said Australia’s selection to host GHGT-18 reinforced its standing as a global leader in CCUS research, development and deployment.  

    “Australia has two of the largest carbon capture and storage (CCS) projects operating globally – Chevron’s Gorgon Project and the Santos and Beach Energy joint venture Moomba Project,” she said.

    “These projects are today storing emissions equivalent to taking one million cars off the road each year.

    “CCUS is a key technology in efforts to reach net zero in Australia and the region.

    “The International Energy Agency, Intergovernmental Panel on Climate Change, and CSIRO have all found that there is no pathway to net zero without CCUS.”

    The 2026 event will be the third time Australia has hosted the global conference, having hosted it in Cairns in 2000 and Melbourne in 2018.

    The announcement last week in Canada during the closing session of GHGT-17 coincided with a major CCUS milestone for Australia, with the Moomba CCS Project achieving first injection and full ramp up.

    “Australia has a comparative advantage in CCUS, with world class geology, industry experience, and strong links with regional trading partners looking to collaborate on CCUS,” Ms McCulloch said.

    “Scaling up CCUS is an opportunity to not just reduce emissions but also create new jobs and attract new investment.”

    Australia’s hosting of the conference is supported by Business Events Perth, reflecting the opportunity for GHGT-18 to amplify Western Australia’s global standing as a premier destination for impactful global events.

    Contact: 0401 839 227

    MIL OSI Economics –

  • MIL-Evening Report: Forum troika’s visit highlights value of regionalism for New Caledonia

    ANALYSIS: By Patrick Decloitre, RNZ Pacific correspondent French Pacific desk

    As a three-day fact-finding mission from a group of Pacific leaders drew to a close in New Caledonia, and with the outcomes report not expected before next year, the visit to the riot-hit French Pacific territory seems to have triggered a new sense of awareness locally about the values of Pacific regional mechanisms of “talanoa” embodied by the Pacific Islands Forum (PIF).

    Local President Louis Mapou stressed on several occasions during the visit that New Caledonia’s situation was the “subject of much attention” in the Pacific region.

    He suggested that one of the reasons for this could be because of a potential “spillover” effect that could “jeopardise cohesion in the Pacific”.

    However, Mapou also stressed that he had received the message conveyed by the PIF “Troika-Plus” group that “they’re ready to take part in [New Caledonia’s] reconstruction”.

    ‘New Caledonia’s regional integration in its region’
    Mapou said that one of the recurrent themes during the PIF visit was “New Caledonia’s regional integration in its region”.

    “Whatever might be said, in many ways, New Caledonia does not know its [Pacific] region very well. Because it has this affiliation relationship to Europe and France that has prevailed over all these years,” he told local media.

    “So, in a certain way, we’re just discovering our region. And in this process, the Pacific Islands Forum could bring a sort of leverage,” he said.

    Kanaky New Caledonia, as well as French Polynesia — both French Pacific entities — became full members of the Pacific Islands Forum in 2016, after several years of “associate members” status.

    Mapou said New Caledonia’s current status vis-à-vis France was mentioned during talks with the PIF mission.

    “I spoke with them about obstacles that should be removed, that are directly related to our current status. This is part of topics on which we should be working in future,” he said.

    “They’re very open-minded, they don’t have any preconceived ideas, they’re happy to talk equally about the concepts of independence, just as they are for keeping [New Caledonia] within the French Republic,” he revealed.

    One of the unexpected outcomes, beyond the specific fact-finding mission that brought this PIF “Troika-Plus” leaders’ delegation to New Caledonia, seems to have underlined the values of regionalism, as well as New Caledonia’s long-awaited and genuine integration in its “regional environment”.

    These values seem to have been recognised by all sides of New Caledonia’s political spectrum, as well as all walks of life within the civil, economic, educational and religious society.

    PIF’s “Troika-Plus” leaders meet with Southern Province President Sonia Backès (third from left) at SPC headquarters last Monday. Image: PIF/RNZ Pacific

    Pacific diversity in status
     During the past few days, informal exchanges with the Pacific leaders have also allowed New Caledonia’s authorities to share and compare possible ways forward regarding the territory’s political status.

    “They readily exchanged their own experiences with our government. The Cook Islands, which is a self-governing state in ‘free association’ with New Zealand; Tonga, which has never been colonised; and the Solomon Islands, who have also undergone inter-ethnic conflicts and where the young population was also involved. And Fiji, which obtained independence (in 1970), had decided to withdraw from the Commonwealth and is finally re-discussing its link with Great Britain,” Mapou briefed local media on Tuesday.

    The leaders spent three days (October 27-29) in the French Pacific territory to gather information on the ground, after destructive riots broke out in May, resulting in 13 deaths and extensive economic damage estimated at €2.2 billion.

    During the three days, the PIF leaders met a wide range of political, business, religious, and civil society leaders to get a first-hand account of the situation.

    On Tuesday, the “plus” component of the troika, Fiji Prime Minister Sitiveni Rabuka, reiterated the mission’s assigned mantra in a manner of conclusion to their mission.

    “We were here to understand and make recommendations. We have heard many extremely different attitudes. We hope it will be possible to find a solution for the people and the government,” Rabuka told religious leaders.

    Bitterness from civil society
     The long series of talks, within a particularly tight schedule, also allowed groups within New Caledonia’s civil society — including traditional chiefs, youth, human rights activists, educationists, mayors and women — to express their views directly during the Pacific leaders’ visit.

    Some of these groups also took the opportunity to point out that they were not always listened to in other circumstances.

    “Today, peace has just been through a rough episode. And we, women, are being asked to help. But when was the last time we were heard?

    “We’ve already said women should be part of all levels of decision-making, including on matters of dealing with violence and access for women to economic empowerment.

    “We were ignored. And then, when fire breaks out, we’re being asked for help because this is the foundation of Pacific values,” said Sonia Tonga, the president of the Oceania Union of Francophone Women, which groups women’s groups from New Caledonia, French Polynesia, Wallis-and-Futuna and Vanuatu.

    Talking about the youth, she said there was an “ill-being”, “they don’t recognise themselves in this system, including for education. We’re trying to fit an Oceanian society into a framework that has not been designed for them.

    “When will we be heard in our country?”.

    As part of talks with church leaders, it was also pointed out that there were benefits from sharing experiences with Pacific leaders.

    “I’ve been many times in Fiji, Tonga, the Solomon Islands, Vanuatu and other Pacific islands. They too have had their hard times.

    “And they too are familiar with the experience of violence which is difficult to bring back to a path of dialogue,” said 80-year-old Nouméa Catholic Archbishop Michel-Marie Calvet, a respected figure.

    In terms of earlier crises in the Pacific region, among PIF member island states, in the early 2000s, civil unrest occurred in both Fiji and the Solomon Islands, with shops being targeted and looted.

    Under Pacific Islands Forum mechanisms, especially the declaration of Biketawa, this prompted in 2003 the setting up of “RAMSI” (Regional Assistance Mission to Solomon Islands), with mostly Australia and New Zealand military and police as its main contributors, with additional input from other Pacific island countries.

    In Fiji, the mission to defuse the crisis, associated with an attempted coup and a MPs hostage situation within Parliament buildings in May 2000, was mainly achieved by the Republic of Fiji Military Forces (RFMF) through protracted negotiations and without violence.

    Forum “Troika-Plus” leaders in New Caledonia conducting a fact-finding mission to assess the situation on ground. Image: X /@ForumSEC/RNZ Pacific

    Supporting Pacific dialogue
    In the political sphere, there was a recognition of the benefits of a Pacific perspective.

    “There is a Pacific tradition of dialogue and talanoa. So, I think [the PIF leaders] can invite pro-independence parties to come to the [negotiating] table,” said New Caledonia’s Mayors’ Association president Pascal Vittori.

    “We’re actually expecting PIF will back this notion of dialogue — that’s what’s important now,” he told local media.

    Sonia Backès, one of the staunchest defenders of New Caledonia remaining part of France, told reporters on Monday: “We didn’t ask for this [mission]. Now we’re waiting for this (troika) report based on their observing mission.

    “We all know that there are biased views on the part of some, one way or the other.

    “So we hope the final report will be as fair and neutral as possible so as not to add fuel to the fire.”

    Following their visit to New Caledonia and based on the information gathered, the Forum “Troika-Plus” leaders are expected to compile a “comprehensive report” to be submitted to the next annual Forum Leaders’ Summit in the Solomon Islands in 2025.

    “The terms of reference of this mission were discussed beforehand between the government of New Caledonia, the Pacific Islands Forum and the (French) State. We all agreed that what was most important was to have an assessment of the situation.

    “There is a need to provide information to the public so that it is an informed opinion leader. It’s important in those times of misinformation and manipulation from one side or the other,” French ambassador for the Pacific Véronique Roger-Lacan told public broadcaster NC la 1ère TV on Tuesday evening.

    Rioting damage in Nouméa’s Ducos industrial zone. Image: LNC TV/RNZ Pacific

    Business sector now needs Pacific market overtures
     Even the business sector now seems to believe that, as a result of the widespread destruction caused by the riots, which has left more than 800 companies burnt down and looted, as well as thousands jobless, the wider Pacific region has now become a new potentially attractive market.

    “Our local market has just shrunk considerably and so we will need to find new openings for our products. In that perspective, our cooperation with the Pacific is very, very strategic”, said business leaders association MEDEF-NC president Mimsy Daly.

    She had once again presented a detailed view of the widespread devastation caused by the recent riots and those who took part.

    “‘Were they aware of what they were doing?’ is one of the questions I was asked,” she wrote on social networks after her encounter with the “Troika-Plus”.

    “A logical question when you know that what has been destroyed equals about 70 percent of the GDP of the Cook Islands, 100 percent of the GDP of the Solomon Islands and 40 percent of the GDP of Fiji.”

    But she admitted the response to this complex question was “primordial” and “every light will have to be shed on the matter”.

    In a wrap-up of the three days, President Mapou held a final meeting with the group on Tuesday.

    Wide circle of ‘concertation’ needed
     French High Commissioner Louis Le Franc, after a final meeting with the delegation, said: “They have come here to seek the profound causes of what happened on May 13. They have been listening very closely.

    “I understand their view is that a wide circle of concertation [cooperation] will be required to reach an agreement,” he said.

    He elaborated, saying that the Pacific Forum leaders seemed to place a lot of hope in the notions of “trust”, the “necessity of living together” and the PIF’s “will to help, while saying that, at the same time, the solution lies in the hands of New Caledonia”.

    French President Macron (right) with New Caledonia’s President Louis Mapou (left) and former New Caledonia Congress President Roch Wamytan (centre) earlier this year. Image: RNZ Pacific

    Next: another ‘concertation and dialogue’ mission
     Following the PIF “Troika-Plus” mission, another visit is expected in New Caledonia in the next few days — this time coming from Paris.

    This new high-level visit will be headed by the presidents of both houses of Parliament in France (Senate and National Assembly), respectively Gérard Larcher and Yaël Braun-Pivet, from November 9-14.

    They will lead what is described as a “mission of concertation and dialogue”.

    The dates come as a top-level meeting took place last week, presided by French Head of State Emmanuel Macron and attended by French minister for Overseas François-Noël Buffet (who had just returned from New Caledonia), French PM Barnier, Larcher and Braun-Pivet.

    The objective, once again, was to reinforce the signal that the time had come to resume political dialogue.

    Macron indicated earlier that he still intended to host a meeting in Paris sometime in November.

    Buffet was also in New Caledonia earlier this month for four days to assess the situation and try to restore a path to dialogue between all political stakeholders, both pro-independence and pro-France.

    This article is republished under a community partnership agreement with RNZ.

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Individual action on climate was tarred as greenwashing or virtue signalling. But it still has a place

    Source: The Conversation (Au and NZ) – By Sukhbir Sandhu, Associate Professor in Sustainability, University of South Australia

    j.chizhe/Shutterstock

    Two decades ago, the fight against climate change was often framed as a personal choice. You might try to reduce your carbon footprint by avoiding flights or change your buying habits to avoid meat or reduce plastic.

    But this approach lost popularity, as it shifted responsibility from producer to consumer. The carbon footprint, for instance, was famously popularised by oil company BP. In 2008, well-known American climate activist Bill McKibben pointed out the impotence of individual action without collective action.

    Behavioural researchers also began finding a seeming paradox – many of us expressed strong interest in taking individual action on climate, but our actual behaviours barely changed.

    Much focus shifted to top-down efforts such as government incentives for clean energy and commitments at a national level to cut emissions.

    But there is still a role for individuals – especially around demonstrating what clean alternatives actually look like. For instance, the more solar panels are installed on rooftops in your neighbourhood, the more likely you are to consider it. This neighbourhood effect also affects uptake of electric vehicles and e-bikes. This is especially important if we are to see clean alternatives go mainstream rather than stop at a small fraction of the population.

    Of course, individual actions can only go so far. As our research on sustainable consumption has shown, individual actions can be magnified with a backdrop of institutional support.

    The neighbourhood effect has influence on solar and electric vehicle uptake.
    zstock/Shutterstock

    What we say and what we do

    Humans are complicated. We often say we want to make greener choices – but in reality, we act differently.

    Individual climate action sounds great in theory. If many of us chose electric vehicles or bikes, installed solar panels and built energy efficient houses, our actions in aggregate could contribute to wider emissions goals. Then there are choices such as reducing dairy and meat, installing LED lights and buying produce with less packaging.

    Everyday actions can contribute too, such as washing clothes in cold water, avoiding putting aircon too low or heating too high, and wearing extra layers of clothes. Recycling, repairing and reusing offer us still more methods to extend the life of our products, reduce waste and save money.

    Yet it turns out the reality of individual action on climate is much more complicated – because we are complicated.

    When surveyed, a majority of us say we want green, sustainable products. But when we go to the shops, we often don’t actually buy them. My colleagues and I have dubbed this the “Janus faced” consumer phenomenon – we often say one thing but do another.

    Why might that be? One reason is many consumers believe green products – whether electric cars or detergents – will perform worse. Green products are also perceived to be more expensive and inconvenient to use.

    Then there’s the question of virtue signalling. This is a phenomenon where consumers purchase highly visible green products primarily to signal they’re a person who cares about the environment without necessarily doing so.

    Some of these challenges are being overcome. It’s hard to write off modern electric cars as inferior when they can accelerate faster and run much cheaper than fossil fuel cars. While early adopters of solar might once have been seen as virtue-signallers, the main reason Australian households go solar is to save money on the power bill, according to a CSIRO survey.

    Was buying a Toyota Prius about going green – or signalling your virtue?
    Stephen Barnes/Shutterstock

    One and the many

    Individual action can only go so far. For individual action to create sustained impact, it needs supportive policies and institutional backing.

    For instance, a 2023 report found many Australian clean energy organisations would like to re-use solar panels for community projects or as a low-cost option for households. This makes sense, given used solar panels are often 80% as good as new ones.

    But for consumers to actually act on this, they need institutional scaffolding. If you’re going to buy used solar, you want to make sure they are in good condition. Without a certification process, their willingness will come to nothing.

    While many of us say we would consider buying an electric vehicle, the uptake is constrained by things outside our control such as whether there are enough public chargers in cities and rural areas.

    You can see the importance of institutional backing clearly in transport. The Melbourne-Sydney flight path is the fifth busiest in the world. That’s because there are no fast green alternatives. If there was high-speed rail as in China or Japan, many of us would choose to avoid the emissions caused by flying. But it doesn’t exist (yet), so our individual choices are curtailed.

    Which way forward?

    As climate change intensifies, more and more of us say we are willing to act on our beliefs and concerns on an individual level. Even better, more of us are actually doing what we say we will.

    Not everywhere, of course. For many Australians, switching from petrol to electric might be easier than giving up meat or a flight to Japan. But some progress is better than none.

    This groundswell is encouraging. But our individual efforts can only go so far. To make the most of it, we need institutional scaffolding. Australia has world-beating rooftop solar uptake because state and federal governments used subsidies and incentives to make the emerging technology cheaper. With incentives on offer, millions of us made individual choices to take it up.

    We are more than consumers, of course. Our power as individuals isn’t limited to choosing specific products. As citizens, we can push for our governments to provide the essential scaffolding we need to make greener choices.

    Sukhbir Sandhu has received research grants from Australian Research Council (Discovery), Green Industries SA, and the European Union.

    – ref. Individual action on climate was tarred as greenwashing or virtue signalling. But it still has a place – https://theconversation.com/individual-action-on-climate-was-tarred-as-greenwashing-or-virtue-signalling-but-it-still-has-a-place-239196

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI NGOs: Pakistan: Flood survivors in Sindh province suffer disease and food insecurity amid government inaction – new testimony

    Source: Amnesty International –

    • Thousands lacking support after severe flooding
    • Older people and children at increased risk of death and disease

    Severe flooding in Pakistan’s Sindh province has left thousands of people suffering from disease and food insecurity amid government inaction, Amnesty International said.

    Following major flooding in August 2024, more than 140,000 people were displaced with many now living in tents. Months later, affected communities are still struggling with health risks and lost livelihoods compounded by little international or government support. With disease rampant due to stagnant floodwaters, older people, children and pregnant women are at increased risk of illness and death.

    By failing to guarantee access to adequate healthcare, food and housing in the wake of the floods, the government of Sindh has failed to fulfil economic, social and cultural rights set out in key human rights instruments ratified by Pakistan.  The biggest emitters of greenhouse gases, who bear most responsibility for climate change-related disasters, must also minimize the harmful effects of climate change on human rights by phasing out fossil fuels as quickly as possible.

    “Tens of thousands of people have been abandoned by the Sindh government and the international community after being devastated again by major floods,” said Scott Edwards, Amnesty International’s Crisis Response Programme Director.

    “Many impacted communities were harmed by record-breaking floods in 2022, and have struggled to rebuild their lives. Inaction in the face of repeated disasters is evidence of waning resiliency and global lethargy.

    “Climate change is not a tentative threat; lives are being lost today to global inaction and inadequate humanitarian response. The international community and Pakistani authorities must act urgently before more people suffer unnecessarily.”

    In late September 2024, Amnesty International visited eight flood-affected villages in Badin and Dadu districts in Sindh province and interviewed 36 people, including older people, people with disabilities, children, pregnant women, and one doctor.

    MIL OSI NGO –

  • MIL-OSI: Athabasca Oil Announces 2024 Third Quarter Results Highlighted by Strong Free Cash Flow and Continued Execution on Share Buybacks

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, Oct. 30, 2024 (GLOBE NEWSWIRE) — Athabasca Oil Corporation (TSX: ATH) (“Athabasca” or the “Company”) is pleased to report its third quarter results highlighting strong free cash flow underpinned by operational momentum at all assets and continued execution on its return of capital commitment through share buybacks.

    Corporate Consolidated Third Quarter Highlights

    • Production: Average production of 38,909 boe/d (98% Liquids), representing 8% growth year over year (16% on a per share basis). Annual production remains on track with previously increased 2024 guidance of 36,000 – 37,000 boe/d.
    • Cash Flow Growth: Adjusted Funds Flow of $164 million (cash flow from operating activities of $187 million) or $0.30 per share, representing 25% growth on a per share basis year over year. In 2024, the Company forecasts Adjusted Funds Flow of ~$555 million1, supported by increased operating scale and constructive Canadian heavy oil pricing. Athabasca forecasts ~100% growth in 2024 forecasted funds flow per share relative to 2022 when growth to 28,000 bbl/d at Leismer was sanctioned.
    • Differentiated Balance Sheet: Proactively refinanced the Company’s senior secured second lien Notes with $200 million of senior unsecured notes at a 6.75% coupon with a 2029 maturity. Consolidated Net Cash position of $135 million with Liquidity of $456 million, including $335 million in cash.
    • Resilient Producer: Competitively positioned with Thermal Oil sustaining capital to hold production flat funded within cash flow at ~US$50/bbl WTI1 and growth initiatives fully funded within cash flow at ~US$60/bbl WTI1.
    • Robust Free Cash Flow: Capital flexibility and balance sheet strength supports durable asset growth and return of capital initiatives for shareholders, resulting in continued top tier cash flow per share growth into the future. Athabasca expects to generate in excess of $1 billion of Free Cash Flow at US$70/bbl WTI1 after fully funding its growth program during the timeframe of 2024-27. The Company intends to release its 2025 capital budget in December.

    Return of Capital

    • Cumulative Return of Capital of ~$800 million. Commencing in the Fall of 2021 a deliberate strategy prioritized $385 million of debt reduction. Share buybacks commenced in 2023 and have totaled $415 million to date.
    • 2024 Return of Capital Commitment: Athabasca (Thermal Oil) is allocating 100% of Free Cash Flow to share buybacks in 2024. Year to date the Company has completed $257 million in share buybacks and forecasts 2024 Free Cash Flow of ~$315 million1.
    • Focus on Per Share Metrics: A steadfast commitment to return of capital has driven an ~104 million share reduction (~16%) in the Company’s fully diluted share count since March 31, 2023.

    Athabasca (Thermal Oil) Third Quarter Highlights

    • Production: ~34,900 bbl/d supported by growth at Leismer (record quarter at ~27,500 bbl/d) and stability at Hangingstone (~7,400 bbl/d).
    • Cash Flow: Adjusted Funds Flow of $150 million with an Operating Netback of $49.68/bbl.
    • Capital Program: $44 million of capital focused on sustaining operations at Leismer and Hangingstone. 2024 capital program forecast of ~$195 million including the commencement of progressive growth to 40,000 bbl/d at Leismer. The Company is currently drilling four new well pairs and six redrill opportunities at Leismer with production expected in early 2025. Two new well pairs at Hangingstone (1,400 meter laterals) will begin steaming in late November with production expected in early 2025.
    • Free Cash Flow: $106 million of Free Cash Flow supporting return of capital commitments.

    Duvernay Energy Corporation (“DEC”) Third Quarter Highlights

    • Production: ~4,100 boe/d (77% Liquids) supported by production from two new pads placed on production in the spring. Results continue to support management’s type curve expectations with restricted IP180s/well averaging ~840 boe/d (82% Liquids) on the 2-well 100% working interest (“WI”) pad and IP120s/well averaging ~835 boe/d (85% Liquids) on the 3-well 30% WI pad.
    • Cash Flow: Adjusted Funds Flow of $14 million with an Operating Netback of $44.20/boe.
    • Capital Program: $6 million focused on commencing a 3-well 100% WI pad at 04-18-64-16W5 which spud in early September. The first two wells have been cased with lateral lengths averaging ~4,000 meters per well. The pad is expected to be completed in 2025. The 2024 capital program forecast is ~$75 million, fully funded within cash flow and cash on hand in DEC.

    Corporate Consolidated Strategy

    • Value Creation: The Company’s Thermal Oil division provides a differentiated liquids weighted growth platform supported by financial resiliency to execute on return of capital initiatives. Athabasca’s subsidiary company, Duvernay Energy Corporation, is designed to enhance value for Athabasca’s shareholders by providing a clear path for self-funded production and cash flow growth in the Kaybob Duvernay resource play. Athabasca (Thermal Oil) and Duvernay Energy have independent strategies and capital allocation frameworks.
    • Consolidated Free Cash Flow Growth: Athabasca’s capital allocation framework is designed to unlock shareholder value by prioritizing multi‐year cash flow per share growth. In 2024, Athabasca forecasts Corporate Consolidated Adjusted Funds Flow of ~$555 million or ~$1 per share, representing ~100% per share growth over 2022 when the Company sanctioned growth to 28,000 bbl/d at Leismer. The Company’s outlook targets ~20% net Adjusted Funds Flow per share compound annual growth rate during the three-year time to 20272.

    Athabasca (Thermal Oil) Strategy

    • Large Resource Base: Athabasca’s top-tier assets underpin a strong Free Cash Flow outlook with low sustaining capital requirements. The long life, low decline asset base includes ~1.2 billion barrels of Proved plus Probable reserves and ~1 billion barrels of Contingent Resource.
    • Strong Financial Position: Prudent balance sheet management is a core tenet of Athabasca’s strategy. During the quarter, Athabasca issued $200 million 6.75% senior unsecured notes due in 2029 and redeemed US$157 million 9.75% senior secured second lien notes due in 2026. The Company proactively refinanced its debt on attractive terms and maintains strategic flexibility with a Net Cash position.
    • Capital Efficient Leismer Expansions: As previously announced, the Company has sanctioned expansion plans at Leismer for growth to 40,000 bbl/d. This will be completed utilizing a progressive build strategy that adds incremental production in the coming years with the full capacity to be achieved in 2028. The capital for this project is estimated at $300 million for a capital efficiency of ~$25,000/bbl/d. The Company can maintain 40,000 bbl/d for approximately fifty years (Proved plus Probable Reserves).
    • Sustaining Hangingstone: Steaming on two new sustaining well pairs will occur later this year with first production expected in early 2025. These wells will support base production with the objective of ensuring Hangingstone continues to deliver meaningful cash flow contributions to the Company and maintaining competitive netbacks ($48.39/bbl Q3 2024 Operating Netback).
    • Corner – Future Optionality: The Company’s Corner asset is a large de-risked oil sands asset adjacent to Leismer with 351 million barrels of Proved plus Probable reserves and 520 million barrels Contingent Resource (Best Estimate Unrisked). There are over 300 delineation wells and ~80% seismic coverage, with reservoir qualities similar or better than Leismer. The asset has a 40,000 bbl/d regulatory approval for development with the existing pipeline corridor passing through the Corner lease. The Company has updated its development plans and is finalizing facility cost estimates. Athabasca intends to explore external funding options and does not plan to fund an expansion utilizing existing cash flow or balance sheet resources.
    • Exposure to Improving Heavy Oil Pricing: With the start-up of the Trans Mountain pipeline expansion (590,000 bbl/d) in early May, spare pipeline capacity is driving tighter and less volatile WCS heavy differentials. Regional liquids pricing benchmarks have also been supported by a depreciating Canadian currency relative to the United States. Every US$5/bbl WCS change impacts Athabasca (Thermal Oil) Adjusted Funds Flow by ~$85 million annually.
    • Significant Multi-Year Free Cash Flow: Inclusive of the progressive growth at Leismer, Athabasca (Thermal Oil) expects to generate in excess of $1 billion of Free Cash Flow at US$70 WTI1 during the timeframe of 2024-27. Free Cash Flow will continue to support the Company’s return of capital initiatives.
    • Thermal Oil Royalty Advantage: Athabasca has significant unrecovered capital balances on its Thermal Oil Assets that ensure a low Crown royalty framework (~6%1). Leismer is forecasted to remain pre-payout until late 20271 and Hangingstone is forecasted to remain pre-payout beyond 20301.
    • Tax Free Horizon Advantage: Athabasca (Thermal Oil) has $2.4 billion of valuable tax pools and does not forecast paying cash taxes this decade.

    Duvernay Energy Strategy

    • Accelerating Value: DEC is an operated, private subsidiary of Athabasca (owned 70% by Athabasca and 30% by Cenovus Energy). DEC accelerates value realization for Athabasca’s shareholders by providing a clear path for self-funded production and cash flow growth without compromising Athabasca’s capacity to fund its Thermal Oil assets or its return of capital strategy.
    • Kaybob Duvernay Focused: Exposure to ~200,000 gross acres in the liquids rich and oil windows with ~500 gross future well locations, including ~46,000 gross acres with 100% working interest.
    • Self-Funded Growth: Current activity is being funded within cash flow and cash on hand. The 2024 program includes drilling and completions of a two-well 100% WI pad and a three-well 30% WI pad along with the spudding an additional multi-well pad in September 2024. The Company has self-funded growth potential to in excess of ~20,000 boe/d (75% Liquids) by the late 2020s1.

    Footnote: Refer to the “Reader Advisory” section within this news release for additional information on Non‐GAAP Financial Measures (e.g. Adjusted Funds Flow, Free Cash Flow, Sustaining Capital, Net Cash, Liquidity) and production disclosure.

    1Pricing Assumptions: realized prices January – October and flat pricing of US$70 WTI, US$12.50 WCS heavy differential, C$2 AECO, and 0.73 C$/US$ FX for the balance of 2024. 2025-27 US$70 WTI, US$12.50 WCS heavy differential, C$3.00 AECO, and 0.75 C$/US$ FX.
    2The Company’s illustrative multi-year outlook assumes a 10% annual share buyback program at an implied share price of 4.5x EV/Debt Adjusted Cash flow in 2025 and beyond.

    Financial and Operational Highlights

      Three months ended
    September 30,    		   Nine months ended
    September 30,    		  
    ($ Thousands, unless otherwise noted) 2024     2023     2024     2023    
    CORPORATE CONSOLIDATED(1)                
    Petroleum and natural gas production (boe/d)(2)   38,909       36,176       36,675       34,950    
    Petroleum, natural gas and midstream sales $ 376,781     $ 379,241     $ 1,089,635     $ 952,596    
    Operating Income(2) $ 180,184     $ 168,410     $ 465,070     $ 320,063    
    Operating Income Net of Realized Hedging(2)(3) $ 175,755     $ 164,643     $ 460,511     $ 289,645    
    Operating Netback ($/boe)(2) $ 49.12     $ 50.84     $ 46.36     $ 33.27    
    Operating Netback Net of Realized Hedging ($/boe)(2)(3) $ 47.91     $ 49.70     $ 45.91     $ 30.11    
    Capital expenditures $ 50,634     $ 33,286     $ 175,098     $ 101,080    
    Cash flow from operating activities $ 187,143     $ 134,879     $ 398,864     $ 202,330    
    per share – basic $ 0.35     $ 0.23     $ 0.72     $ 0.34    
    Adjusted Funds Flow(2) $ 163,680     $ 141,138     $ 417,198     $ 213,406    
    per share – basic $ 0.30     $ 0.24     $ 0.75     $ 0.36    
    ATHABASCA (THERMAL OIL)                
    Bitumen production (bbl/d)(2)   34,853       31,691       33,390       29,972    
    Petroleum, natural gas and midstream sales $ 372,634     $ 360,761     $ 1,072,954     $ 895,167    
    Operating Income(2) $ 163,694     $ 155,415     $ 425,837     $ 278,533    
    Operating Netback ($/bbl)(2) $ 49.68     $ 53.59     $ 46.64     $ 33.72    
    Capital expenditures $ 44,431     $ 34,439     $ 120,634     $ 89,604    
    Adjusted Funds Flow(2) $ 150,088         $ 383,214        
    Free Cash Flow(2) $ 105,657         $ 262,580        
    DUVERNAY ENERGY(1)                
    Petroleum and natural gas production (boe/d)(2)   4,056       4,485       3,285       4,978    
    Percentage Liquids (%)(2) 77 %   55 %   77 %   56 %  
    Petroleum, natural gas and midstream sales $ 24,728     $ 24,508     $ 63,015     $ 78,403    
    Operating Income(2) $ 16,490     $ 12,995     $ 39,233     $ 41,530    
    Operating Netback ($/boe)(2) $ 44.20     $ 31.50     $ 43.59     $ 30.56    
    Capital expenditures $ 6,203     $ (1,153 )   $ 54,464     $ 11,476    
    Adjusted Funds Flow(2) $ 13,592         $ 33,984        
    Free Cash Flow(2) $ 7,389         $ (20,480 )      
    NET INCOME AND COMPREHENSIVE INCOME                
    Net income and comprehensive income(4) $ 68,722     $ (79,212 )   $ 203,407     $ (78,726 )  
    per share – basic(4) $ 0.13     $ (0.14 )   $ 0.37     $ (0.13 )  
    per share – diluted(4) $ 0.12     $ (0.14 )   $ 0.36     $ (0.13 )  
    COMMON SHARES OUTSTANDING                
    Weighted average shares outstanding – basic   540,884,257       581,917,255       555,035,218       586,906,810    
    Weighted average shares outstanding – diluted   550,712,443       581,917,255       559,203,568       586,906,810    
          September 30   December 31  
    As at ($ Thousands)     2024   2023  
    LIQUIDITY AND BALANCE SHEET            
    Cash and cash equivalents     $ 334,851   $ 343,309  
    Available credit facilities(5)     $ 121,316   $ 85,488  
    Face value of term debt(6)     $ 200,000   $ 207,648  

    (1) Corporate Consolidated and Duvernay Energy reflect gross production and financial metrics before taking into consideration Athabasca’s 70% equity interest in Duvernay Energy.
    (2) Refer to the “Reader Advisory” section within this News Release for additional information on Non-GAAP Financial Measures and production disclosure.
    (3) Includes realized commodity risk management loss of $4.4 million and $4.6 million for the three and nine months ended September 30, 2024 (three and nine months ended September 30, 2023 – loss of $3.8 million and $30.4 million).
    (4) Net income (loss) and comprehensive income (loss) per share amounts are based on net income (loss) and comprehensive income (loss) attributable to shareholders of the Parent Company. In the calculation of diluted net income (loss) per share for the three months ended September 30, 2024 net income (loss) was reduced by $2.6 million to account for the impact to net income (loss) had the outstanding warrants been converted to equity.
    (5) Includes available credit under Athabasca’s and Duvernay Energy’s Credit Facilities and Athabasca’s Unsecured Letter of Credit Facility.
    (6) The face value of the term debt at December 31, 2023 was US$157.0 million translated into Canadian dollars at the December 31, 2023 exchange rate of US$1.00 = C$1.3226.

    Operations Update

    Athabasca (Thermal Oil)

    Production for the third quarter of 2024 averaged 34,853 bbl/d. The Thermal Oil division generated Operating Income of $164 million (Operating Netbacks – $50.05/bbl at the Leismer and $48.39/bbl at Hangingstone) during the period with capital expenditures of $44 million, primarily related to drilling and completions, and progressing future growth initiatives at Leismer.

    Leismer

    Leismer produced a record 27,485 bbl/d during the quarter following the completion of the facility expansion. The Company is continuing with progressive growth to increase Leismer production to 40,000 bbl/d (regulatory approved capacity) over the next three years. These capital projects are flexible and highly economic (~$25,000/bbl/d capital efficiency) and will maximize value creation when executed alongside the Company’s return of capital initiatives. Activity over the next three years will include drilling ~20 well pairs (sustaining and growth wells), expanding steam capacity to ~130,000 bbl/d and adding oil processing capacity at the central processing facility. The project will benefit from installing opportunistically pre-purchased steam generators which reduce the timelines and costs for the project.

    Activity in H2 2024 includes drilling four sustaining well pairs at Pad L10 and six extended redrills on Pad L1, with production expected in early 2025.

    Hangingstone

    Production during the quarter averaged 7,368 bbl/d. Non-condensable gas co-injection continues to assist in pressure support, reduced energy usage and an improved SOR averaging ~3.4x year to date. During the quarter the Company rig released two ~1,400 meter well pairs with first steam planned for later this year and production in early 2025. Well design with extended reach laterals is expected to drive project capital efficiencies of ~$15,000/bbl/d and will leverage off available plant and infrastructure capacity. These sustaining well pairs will support base production with the objective of ensuring Hangingstone continues to deliver meaningful cash flow contributions to the Company and maintaining competitive netbacks.

    Duvernay Energy

    Production for the third quarter of 2024 averaged 4,056 boe/d (77% Liquids). Duvernay Energy generated Operating Income of $16 million (Operating Netback – $44.20/boe) during the period.

    Duvernay Energy brought its two-well 100% working interest pad at 03-18-64-17W5 on production in late April. The pad generated an average restricted 180-day rate of ~840 boe/d per well (82% liquids). A three well pad (30% working interest) at 02-03-65-20W5 was brought on production in late May, with an approximate 120-day rate of ~835 boe/d per well (85% liquids). Both pads are performing in-line with management’s expectations and are exhibiting strong extended results with high liquids content. The Company spud a three-well 100% working interest pad at 4-18-64-16W5 in September. Two wells have been cased on this pad with average laterals of ~4,000 meters per well. The operated pad of wells is expected to be completed in 2025.

    About Athabasca Oil Corporation

    Athabasca Oil Corporation is a Canadian energy company with a focused strategy on the development of thermal and light oil assets. Situated in Alberta’s Western Canadian Sedimentary Basin, the Company has amassed a significant land base of extensive, high quality resources. Athabasca’s light oil assets are held in a private subsidiary (Duvernay Energy Corporation) in which Athabasca owns a 70% equity interest. Athabasca’s common shares trade on the TSX under the symbol “ATH”. For more information, visit www.atha.com.

    For more information, please contact:

    Reader Advisory:

    This News Release contains forward-looking information that involves various risks, uncertainties and other factors. All information other than statements of historical fact is forward-looking information. The use of any of the words “anticipate”, “plan”, “project”, “continue”, “maintain”, “may”, “estimate”, “expect”, “will”, “target”, “forecast”, “could”, “intend”, “potential”, “guidance”, “outlook” and similar expressions suggesting future outcome are intended to identify forward-looking information. The forward-looking information is not historical fact, but rather is based on the Company’s current plans, objectives, goals, strategies, estimates, assumptions and projections about the Company’s industry, business and future operating and financial results. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. No assurance can be given that these expectations will prove to be correct and such forward-looking information included in this News Release should not be unduly relied upon. This information speaks only as of the date of this News Release. In particular, this News Release contains forward-looking information pertaining to, but not limited to, the following: our strategic plans; the allocation of future capital; timing and quantum for shareholder returns including share buybacks; the terms of our NCIB program; our drilling plans and capital efficiencies; production growth to expected production rates and estimated sustaining capital amounts; timing of Leismer’s and Hangingstone’s pre-payout royalty status; applicability of tax pools and the timing of tax payments; expected operating results at Hangingstone; Adjusted Funds Flow and Free Cash Flow in 2024 and 2025 to 2027; type well economic metrics; number of drilling locations; forecasted daily production and the composition of production; our outlook in respect of the Company’s business environment, including in respect of the Trans Mountain pipeline expansion and heavy oil pricing; and other matters.

    In addition, information and statements in this News Release relating to “Reserves” and “Resources” are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated, and that the reserves and resources described can be profitably produced in the future. With respect to forward-looking information contained in this News Release, assumptions have been made regarding, among other things: commodity prices; the regulatory framework governing royalties, taxes and environmental matters in the jurisdictions in which the Company conducts and will conduct business and the effects that such regulatory framework will have on the Company, including on the Company’s financial condition and results of operations; the Company’s financial and operational flexibility; the Company’s financial sustainability; Athabasca’s cash flow break-even commodity price; the Company’s ability to obtain qualified staff and equipment in a timely and cost-efficient manner; the applicability of technologies for the recovery and production of the Company’s reserves and resources; future capital expenditures to be made by the Company; future sources of funding for the Company’s capital programs; the Company’s future debt levels; future production levels; the Company’s ability to obtain financing and/or enter into joint venture arrangements, on acceptable terms; operating costs; compliance of counterparties with the terms of contractual arrangements; impact of increasing competition globally; collection risk of outstanding accounts receivable from third parties; geological and engineering estimates in respect of the Company’s reserves and resources; recoverability of reserves and resources; the geography of the areas in which the Company is conducting exploration and development activities and the quality of its assets. Certain other assumptions related to the Company’s Reserves and Resources are contained in the report of McDaniel & Associates Consultants Ltd. (“McDaniel”) evaluating Athabasca’s Proved Reserves, Probable Reserves and Contingent Resources as at December 31, 2023 (which is respectively referred to herein as the “McDaniel Report”).

    Actual results could differ materially from those anticipated in this forward-looking information as a result of the risk factors set forth in the Company’s Annual Information Form (“AIF”) dated February 29, 2024 available on SEDAR at www.sedarplus.ca, including, but not limited to: weakness in the oil and gas industry; exploration, development and production risks; prices, markets and marketing; market conditions; climate change and carbon pricing risk; statutes and regulations regarding the environment including deceptive marketing provisions; regulatory environment and changes in applicable law; gathering and processing facilities, pipeline systems and rail; reputation and public perception of the oil and gas sector; environment, social and governance goals; political uncertainty; state of capital markets; ability to finance capital requirements; access to capital and insurance; abandonment and reclamation costs; changing demand for oil and natural gas products; anticipated benefits of acquisitions and dispositions; royalty regimes; foreign exchange rates and interest rates; reserves; hedging; operational dependence; operating costs; project risks; supply chain disruption; financial assurances; diluent supply; third party credit risk; indigenous claims; reliance on key personnel and operators; income tax; cybersecurity; advanced technologies; hydraulic fracturing; liability management; seasonality and weather conditions; unexpected events; internal controls; limitations and insurance; litigation; natural gas overlying bitumen resources; competition; chain of title and expiration of licenses and leases; breaches of confidentiality; new industry related activities or new geographical areas; water use restrictions and/or limited access to water; relationship with Duvernay Energy Corporation; management estimates and assumptions; third-party claims; conflicts of interest; inflation and cost management; credit ratings; growth management; impact of pandemics; ability of investors resident in the United States to enforce civil remedies in Canada; and risks related to our debt and securities. All subsequent forward-looking information, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.

    Also included in this News Release are estimates of Athabasca’s 2024 outlook which are based on the various assumptions as to production levels, commodity prices, currency exchange rates and other assumptions disclosed in this News Release. To the extent any such estimate constitutes a financial outlook, it was approved by management and the Board of Directors of Athabasca and is included to provide readers with an understanding of the Company’s outlook. Management does not have firm commitments for all of the costs, expenditures, prices or other financial assumptions used to prepare the financial outlook or assurance that such operating results will be achieved and, accordingly, the complete financial effects of all of those costs, expenditures, prices and operating results are not objectively determinable. The actual results of operations of the Company and the resulting financial results may vary from the amounts set forth herein, and such variations may be material. The outlook and forward-looking information contained in this New Release was made as of the date of this News release and the Company disclaims any intention or obligations to update or revise such outlook and/or forward-looking information, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law.

    Oil and Gas Information

    “BOEs” may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

    Initial Production Rates 

    Test Results and Initial Production Rates: The well test results and initial production rates provided herein should be considered to be preliminary, except as otherwise indicated. Test results and initial production rates disclosed herein may not necessarily be indicative of long-term performance or of ultimate recovery.

    Reserves Information

    The McDaniel Report was prepared using the assumptions and methodology guidelines outlined in the COGE Handbook and in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities, effective December 31, 2023. There are numerous uncertainties inherent in estimating quantities of bitumen, light crude oil and medium crude oil, tight oil, conventional natural gas, shale gas and natural gas liquids reserves and the future cash flows attributed to such reserves. The reserve and associated cash flow information set forth above are estimates only. In general, estimates of economically recoverable reserves and the future net cash flows therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, production rates, ultimate reserve recovery, timing and amount of capital expenditures, marketability of oil and natural gas, royalty rates, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary materially. For those reasons, estimates of the economically recoverable reserves attributable to any particular group of properties, classification of such reserves based on risk of recovery and estimates of future net revenues associated with reserves prepared by different engineers, or by the same engineers at different times, may vary. The Company’s actual production, revenues, taxes and development and operating expenditures with respect to its reserves will vary from estimates thereof and such variations could be material. Reserves figures described herein have been rounded to the nearest MMbbl or MMboe. For additional information regarding the consolidated reserves and information concerning the resources of the Company as evaluated by McDaniel in the McDaniel Report, please refer to the Company’s AIF.

    Reserve Values (i.e. Net Asset Value) is calculated using the estimated net present value of all future net revenue from our reserves, before income taxes discounted at 10%, as estimated by McDaniel effective December 31, 2023 and based on average pricing of McDaniel, Sproule and GLJ as of January 1, 2024.

    The 500 gross Duvernay drilling locations referenced include: 37 proved undeveloped locations and 76 probable undeveloped locations for a total of 113 booked locations with the balance being unbooked locations. Proved undeveloped locations and probable undeveloped locations are booked and derived from the Company’s most recent independent reserves evaluation as prepared by McDaniel as of December 31, 2023 and account for drilling locations that have associated proved and/or probable reserves, as applicable. Unbooked locations are internal management estimates. Unbooked locations do not have attributed reserves or resources (including contingent or prospective). Unbooked locations have been identified by management as an estimation of Athabasca’s multi-year drilling activities expected to occur over the next two decades based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that the Company will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which the Company will actually drill wells, including the number and timing thereof is ultimately dependent upon the availability of funding, commodity prices, provincial fiscal and royalty policies, costs, actual drilling results, additional reservoir information that is obtained and other factors.

    Non-GAAP and Other Financial Measures, and Production Disclosure

    The “Corporate Consolidated Adjusted Funds Flow”, “Corporate Consolidated Adjusted Funds Flow per Share”, “Athabasca (Thermal Oil) Adjusted Funds Flow”, “Duvernay Energy Adjusted Funds Flow”, “Corporate Consolidated Free Cash Flow”, “Athabasca (Thermal Oil) Free Cash Flow”, “Duvernay Energy Free Cash Flow”, “Corporate Consolidated Operating Income”, “Corporate Consolidated Operating Income Net of Realized Hedging”, “Athabasca (Thermal Oil) Operating Income”, “Duvernay Energy Operating Income”, “Corporate Consolidated Operating Netback”, “Corporate Consolidated Operating Netback Net of Realized Hedging”, “Athabasca (Thermal Oil) Operating Netback”, “Duvernay Energy Operating Netback” and “Cash Transportation and Marketing Expense” financial measures contained in this News Release do not have standardized meanings which are prescribed by IFRS and they are considered to be non-GAAP financial measures or ratios. These measures may not be comparable to similar measures presented by other issuers and should not be considered in isolation with measures that are prepared in accordance with IFRS. Sustaining Capital, Net Cash and Liquidity are supplementary financial measures. The Leismer and Hangingstone operating results are supplementary financial measures that when aggregated, combine to the Athabasca (Thermal Oil) segment results.

    Adjusted Funds Flow, Adjusted Funds Flow Per Share and Free Cash Flow

    Adjusted Funds Flow and Free Cash Flow are non-GAAP financial measures and are not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS. The Adjusted Funds Flow and Free Cash Flow measures allow management and others to evaluate the Company’s ability to fund its capital programs and meet its ongoing financial obligations using cash flow internally generated from ongoing operating related activities. Adjusted Funds Flow per share is a non-GAAP financial ratio calculated as Adjusted Funds Flow divided by the applicable number of weighted average shares outstanding. Adjusted Funds Flow and Free Cash Flow are calculated as follows:

      Three months ended
    September 30, 2024    		   Three months ended
    September 30, 2023    		  
    ($ Thousands) Athabasca
    (Thermal Oil)    		   Duvernay Energy(1)   Corporate Consolidated(1)   Corporate Consolidated  
    Cash flow from operating activities $ 169,950   $ 17,193   $ 187,143   $ 134,879  
    Changes in non-cash working capital   (20,201 )   (3,401 )   (23,602 )   5,898  
    Settlement of provisions   339     (200 )   139     361  
    ADJUSTED FUNDS FLOW   150,088     13,592     163,680     141,138  
    Capital expenditures   (44,431 )   (6,203 )   (50,634 )   (33,286 )
    FREE CASH FLOW $ 105,657   $ 7,389   $ 113,046   $ 107,852  

    (1) Duvernay Energy and Corporate Consolidated reflect gross financial metrics before taking into consideration Athabasca’s 70% equity interest in Duvernay Energy.

      Nine months ended
    September 30, 2024    		   Nine months ended
    September 30, 2023    		  
    ($ Thousands) Athabasca
    (Thermal Oil)    		   Duvernay Energy(1)   Corporate Consolidated(1)   Corporate Consolidated  
    Cash flow from operating activities $ 367,018   $ 31,846   $ 398,864   $ 202,330  
    Changes in non-cash working capital   14,560     2,134     16,694     22,498  
    Settlement of provisions   1,636     4     1,640     1,155  
    Long-term deposit   —     —     —     (12,577 )
    ADJUSTED FUNDS FLOW   383,214     33,984     417,198     213,406  
    Capital expenditures   (120,634 )   (54,464 )   (175,098 )   (101,080 )
    FREE CASH FLOW $ 262,580   $ (20,480 ) $ 242,100   $ 112,326  

    (1) Duvernay Energy and Corporate Consolidated reflect gross financial metrics before taking into consideration Athabasca’s 70% equity interest in Duvernay Energy.

    Duvernay Energy Operating Income and Operating Netback

    The non-GAAP measure Duvernay Energy Operating Income in this News Release is calculated by subtracting the Duvernay Energy royalties, operating expenses and transportation & marketing expenses from petroleum and natural gas sales which is the most directly comparable GAAP measure. The Duvernay Energy Operating Netback per boe is a non-GAAP financial ratio calculated by dividing the Duvernay Energy Operating Income by the Duvernay Energy production. The Duvernay Energy Operating Income and the Duvernay Energy Operating Netback measures allow management and others to evaluate the production results from the Company’s Duvernay Energy assets.

    The Duvernay Energy Operating Income is calculated using the Duvernay Energy Segments GAAP results, as follows:

      Three months ended
    September 30,    		   Nine months ended
    September 30,    		  
    ($ Thousands, unless otherwise noted) 2024   2023   2024   2023  
    Petroleum and natural gas sales $ 24,728   $ 24,508   $ 63,015   $ 78,403  
    Royalties   (2,470 )   (3,510 )   (8,282 )   (10,403 )
    Operating expenses   (4,684 )   (5,964 )   (12,387 )   (19,988 )
    Transportation and marketing   (1,084 )   (2,039 )   (3,113 )   (6,482 )
    DUVERNAY ENERGY OPERATING INCOME $ 16,490   $ 12,995   $ 39,233   $ 41,530  


    Athabasca (Thermal Oil) Operating Income and Operating Netback

    The non-GAAP measure Athabasca (Thermal Oil) Operating Income in this News Release is calculated by subtracting the Athabasca (Thermal Oil) segments cost of diluent blending, royalties, operating expenses and cash transportation & marketing expenses from heavy oil (blended bitumen) and midstream sales which is the most directly comparable GAAP measure. The Athabasca (Thermal Oil) Operating Netback per bbl is a non-GAAP financial ratio calculated by dividing the respective projects Operating Income by its respective bitumen sales volumes. The Athabasca (Thermal Oil) Operating Income and the Athabasca (Thermal Oil) Operating Netback measures allow management and others to evaluate the production results from the Athabasca (Thermal Oil) assets. The Athabasca (Thermal Oil) Operating Income is calculated using the Athabasca (Thermal Oil) Segments GAAP results, as follows:

      Three months ended
    September 30,    		   Nine months ended
    September 30,    		  
    ($ Thousands) 2024   2023   2024   2023  
    Heavy oil (blended bitumen) and midstream sales $ 372,634   $ 360,761   $ 1,072,954   $ 895,167  
    Cost of diluent   (129,965 )   (117,418 )   (411,991 )   (380,781 )
    Total bitumen and midstream sales   242,669     243,343     660,963     514,386  
    Royalties   (22,291 )   (27,613 )   (62,651 )   (45,170 )
    Operating expenses – non-energy   (24,903 )   (19,521 )   (72,445 )   (63,349 )
    Operating expenses – energy   (9,994 )   (20,572 )   (38,187 )   (64,118 )
    Transportation and marketing(1)   (21,787 )   (20,222 )   (61,843 )   (63,216 )
    ATHABASCA (THERMAL OIL) OPERATING INCOME $ 163,694   $ 155,415   $ 425,837   $ 278,533  

    (1) Transportation and marketing excludes non-cash costs of $0.6 million and $1.7 million for the three and nine months ended September 30, 2024 (three and nine months ended September 30, 2023 – $0.6 million and $1.7 million).

    Corporate Consolidated Operating Income and Corporate Consolidated Operating Income Net of Realized Hedging and Operating Netbacks

    The non-GAAP measures of Corporate Consolidated Operating Income including or excluding realized hedging in this News Release are calculated by adding or subtracting realized gains (losses) on commodity risk management contracts (as applicable), royalties, the cost of diluent blending, operating expenses and cash transportation & marketing expenses from petroleum, natural gas and midstream sales which is the most directly comparable GAAP measure. The Corporate Consolidated Operating Netbacks including or excluding realized hedging per boe are non-GAAP ratios calculated by dividing Corporate Consolidated Operating Income including or excluding hedging by the total sales volumes and are presented on a per boe basis. The Corporate Consolidated Operating Income and Corporate Consolidated Operating Netbacks including or excluding realized hedging measures allow management and others to evaluate the production results from the Company’s Duvernay Energy and Athabasca (Thermal Oil) assets combined together including the impact of realized commodity risk management gains or losses (as applicable).

      Three months ended
    September 30,    		   Nine months ended
    September 30,    		  
    ($ Thousands) 2024   2023   2024   2023  
    Petroleum, natural gas and midstream sales(1) $ 397,362   $ 385,269   $ 1,135,969   $ 973,570  
    Royalties   (24,761 )   (31,123 )   (70,933 )   (55,573 )
    Cost of diluent(1)   (129,965 )   (117,418 )   (411,991 )   (380,781 )
    Operating expenses   (39,581 )   (46,057 )   (123,019 )   (147,455 )
    Transportation and marketing(2)   (22,871 )   (22,261 )   (64,956 )   (69,698 )
    Operating Income   180,184     168,410     465,070     320,063  
    Realized loss on commodity risk mgmt. contracts   (4,429 )   (3,767 )   (4,559 )   (30,418 )
    OPERATING INCOME NET OF REALIZED HEDGING $ 175,755   $ 164,643   $ 460,511   $ 289,645  

    (1) Non-GAAP measure includes intercompany NGLs (i.e. condensate) sold by the Duvernay Energy segment to the Athabasca (Thermal Oil) segment for use as diluent that is eliminated on consolidation.
    (2) Transportation and marketing excludes non-cash costs of $0.6 million and $1.7 million for the three and nine months ended September 30, 2024 (three and nine months ended September 30, 2023 – $0.6 million and $1.7 million).

    Cash Transportation and Marketing Expense

    The Cash Transportation and Marketing Expense financial measures contained in this News Release are calculated by subtracting the non-cash transportation and marketing expense as reported in the Consolidated Statement of Cash Flows from the transportation and marketing expense as reported in the Consolidated Statement of Income (Loss) and are considered to be non-GAAP financial measures.

    Sustaining Capital

    Sustaining Capital is managements’ assumption of the required capital to maintain the Company’s production base.

    Net Cash

    Net Cash is defined as the face value of term debt, plus accounts payable and accrued liabilities, plus current portion of provisions and other liabilities plus income tax payable less current assets, excluding risk management contracts.

    Liquidity

    Liquidity is defined as cash and cash equivalents plus available credit capacity.

    Production volumes details

      Three months ended
    September 30,    		   Nine months ended
    September 30,
    Production 2024   2023   2024   2023
    Duvernay Energy:                      
    Oil(1) bbl/d 2,688     1,398     2,235     1,461
    Condensate NGLs bbl/d —     581     —     705
    Oil and condensate NGLs bbl/d 2,688     1,979     2,235     2,166
    Other NGLs bbl/d 447     528     298     615
    Natural gas(2) mcf/d 5,526     11,869     4,511     13,181
    Total Duvernay Energy boe/d 4,056     4,485     3,285     4,978
    Total Thermal Oil bitumen bbl/d 34,853     31,691     33,390     29,972
    Total Company production boe/d 38,909     36,176     36,675     34,950

    (1) Comprised of 99% or greater of tight oil, with the remaining being light and medium crude oil.
    (2) Comprised of 99% or greater of shale gas, with the remaining being conventional natural gas.

    This News Release also makes reference to Athabasca’s forecasted average daily Thermal Oil production of 33,000 – 34,000 bbl/d for 2024. Athabasca expects that 100% of that production will be comprised of bitumen. Duvernay Energy’s forecasted total average daily production of ~3,000 boe/d for 2024 is expected to be comprised of approximately 67% tight oil, 23% shale gas and 10% NGLs.

    Liquids is defined as bitumen, light crude oil, medium crude oil and natural gas liquids.

    Footnote: Refer to the “Reader Advisory” section within this news release for additional information on Non‐GAAP Financial Measures (e.g. Adjusted Funds Flow, Free Cash Flow, Sustaining Capital, Net Cash, Liquidity) and production disclosure.

    1 Pricing Assumptions: realized prices January – October and flat pricing of US$70 WTI, US$12.50 WCS heavy differential, C$2 AECO, and 0.73 C$/US$ FX for the balance of 2024. 2025-27 US$70 WTI, US$12.50 WCS heavy differential, C$3.00 AECO, and 0.75 C$/US$ FX.
    2 The Company’s illustrative multi-year outlook assumes a 10% annual share buyback program at an implied share price of 4.5x EV/Debt Adjusted Cash flow in 2025 and beyond.

    The MIL Network –

  • MIL-OSI Economics: The Americas Flyways Initiative to begin implementation in January 2025

    Source: CAF Development Bank of Latin America

    After two years of rigorous science-based design, the Americas Flyways Initiative (AFI) is moving into its implementation phase in 2025, aimed at protecting and restoring critical ecosystems through Nature-Based Solutions (NbS) and bird-friendly infrastructure that also benefits people.

    Inspired by the wonderful world of birds and their epic migratory journeys across the hemisphere, which connect landscapes, cultures, and people, the AFI science team has identified a portfolio of crucial sites to ensure the connectivity and conservation of at least 10% of prioritized populations of migratory shorebirds and landbirds in the Americas.

    Birds serve as vital bioindicators of the health of nature. They not only signal the problems we face but also point to solutions: where and how we need to act. Protecting birds means protecting life. For example, 85% of the important bird conservation sites in Colombia coincide with key areas for water regulation and climate change mitigation.

    Currently, AFI has five initial projects, also known as “nest projects,” named for their connection to shelter, development, and well-being:

    1. Improving coastal climate resilience in the Rocuant Andalién Wetland in Chile;
    2. Restoring montane forest landscapes and aquatic ecosystems in the northwestern Andes of Ecuador;
    3. Integrating bird-friendly practices in transmission and distribution power lines reaching the coast of Guayas, Ecuador;
    4. Incorporating bird-friendly architecture and design at the CAF headquarters in Panama City;
    5. Knowledge exchange on best practices at the Iona Wastewater Treatment Plant on Iona Island, British Columbia.

    To guide project developers in designing and implementing proposals that combine conservation and sustainable development, AFI has also released four practical and strategic guides:

    • Guide 1: High biodiversity and carbon-dense ecosystems.
    • Guide 2: Water security: drinking water, sanitation, and access to irrigation.
    • Guide 3: Coastal management.
    • Guide 4: Infrastructure.

    The relevance of AFI is grounded in the premise that conservation without funding is merely conversation. Without agile and sustainable financial resources, effective conservation, protection, and restoration of nature cannot be achieved. Currently, there is a financial gap of between $598 billion and $824 billion annually needed to implement actions addressing the climate crisis and biodiversity loss.

    One of the primary objectives of the sixteenth Conference of the Parties (COP 16) to the Convention on Biological Diversity (CBD), taking place in Cali, is to advance the details and mechanisms for meeting Target 19 of the Global Biodiversity Framework: achieving the annual mobilization of at least $200 billion by 2030. Of this amount, it is expected that at least $30 billion will be directed toward developing countries, which are often more severely affected by climate change impacts and wildlife decline.

    As of the date of this statement, eight governments have pledged $163 million to enable the Global Biodiversity Fund (GBFF) to implement the Kunming-Montreal Biodiversity Framework. While this is a step forward, it remains insufficient given the scale of what is required and the context we face.

    The protection and sustainable use of the services and resources we receive from nature are not solely the responsibility of the naturalist or scientific community. More than half of the world’s economy depends on the benefits provided by nature: clean water and air, fertile soils, food, medicine, raw materials, among others. More than half of the global GDP is moderately or highly dependent on nature and its services. Consequently, this figure is linked to the risks and impacts associated with the destruction of nature.

    Therefore, actions aimed at the conservation, restoration, and sustainable management of ecosystems and their biodiversity are an obligation and responsibility for all sectors, as they form the fundamental basis for our societies to continue existing and thriving. Fortunately, much of the answer to the challenge of channeling financing for biodiversity lies within nature itself.

    “Nature-Based Solutions (NbS) are actions to protect, sustainably manage, and restore natural and modified ecosystems that effectively and adaptively address societal challenges while simultaneously benefiting people and nature” (IUCN, 2016).

    In this context, at COP15 in Montreal, the National Audubon Society, BirdLife International, and the Development Bank of Latin America and the Caribbean (CAF) forged a commitment and the foundations of a strategic, transformative, and visionary alliance that will mobilize investment for nature and the communities that depend on it through a comprehensive financial mechanism.

    AFI is a symbiosis for prosperity that combines cutting-edge applied science and agile financial mechanisms to sustainably manage over 30 marine and terrestrial landscapes by 2050, mobilizing between $3 trillion and $5 trillion.

    Elizabeth Gray, CEO of Audubon, highlighted the importance of the initiative: “We are working together to protect 30 terrestrial and marine landscapes across this vast region. This is essential for promoting nature-based solutions and sustainable development. The Americas is one of the most biodiverse regions in the world, and we have much to do to address both the biodiversity and climate crises.”

    Martin Harper, CEO of BirdLife International, expressed gratitude and recognition to the teams from the three organizations for their hard work in reaching this point: “We are building something very special, something that will unite conservation efforts across the Americas. This initiative is already inspiring similar projects in other major migratory routes worldwide.”

    Sergio Díaz Granados, Executive President of CAF, reminded attendees of the bank’s efforts to become the green bank of the region, including increasing its capital to address the climate emergency: “The loss of biodiversity is one of our most urgent problems. Mitigating it and adapting is not a choice; it is a responsibility we must fulfill. We have been collaborating with institutions like Audubon and BirdLife to bridge conservation gaps in Latin America and the Caribbean.”

    MIL OSI Economics –