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Category: Transport

  • MIL-OSI: LiveRamp to Present at the Morgan Stanley Technology, Media & Telecom Conference

    Source: GlobeNewswire (MIL-OSI)

    SAN FRANCISCO, Feb. 19, 2025 (GLOBE NEWSWIRE) — LiveRamp® (NYSE: RAMP), the leading data collaboration platform, today announced that its CEO Scott Howe and CFO Lauren Dillard will present at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco on Wednesday, March 5th at 10:00 a.m. PT / 1:00 p.m. ET.

    Links to the live webcast of the presentation and a replay will be available on LiveRamp’s investor relations website.

    About LiveRamp

    LiveRamp is the data collaboration platform of choice for the world’s most innovative companies. A groundbreaking leader in enterprise identity, LiveRamp offers a connected customer view with clarity and context while protecting brand and consumer trust. We offer flexibility to collaborate wherever data lives to support a wide range of data collaboration use cases—within organizations, between brands, and across our global network of premier partners. Global innovators, from iconic consumer brands and tech platforms to retailers, financial services, and healthcare leaders, turn to LiveRamp to deepen customer engagement and loyalty, activate new partnerships, and maximize the value of their first-party data while staying on the forefront of rapidly evolving compliance and privacy requirements. LiveRamp is based in San Francisco, California with offices worldwide. Learn more at LiveRamp.com.

    For more information, contact:

    Drew Borst
    LiveRamp Investor Relations
    Investor.Relations@LiveRamp.com

    The MIL Network –

  • MIL-OSI: iBio to Begin Trading on the Nasdaq Stock Exchange

    Source: GlobeNewswire (MIL-OSI)

    SAN DIEGO, Feb. 19, 2025 (GLOBE NEWSWIRE) — iBio, Inc. (NYSEA:IBIO), an AI-driven innovator of precision antibody therapies, today announced that iBio’s common stock has been approved for listing on the Nasdaq Capital Market and iBio will transfer its stock exchange listing to Nasdaq Capital Market from the NYSE American. The Company expects to begin trading as a Nasdaq-listed company on Mar 4, 2025, and will continue to trade under the symbol “IBIO.” The Company’s common stock will continue to trade on the NYSE American until the market close on Mar 3, 2025.

    Martin Brenner, Ph.D., DVM, iBio’s CEO and Chief Scientific Officer, commented, “We are pleased to announce our listing on the Nasdaq Capital Market and to join a community of leading biotech companies. We believe the move to Nasdaq will improve the visibility of our common stock, enhance trading liquidity in our shares, and provide us with greater exposure to institutional investors.”

    About iBio, Inc.

    iBio (NYSEA: IBIO) is a cutting-edge biotech company leveraging AI and advanced computational biology to develop next-generation biopharmaceuticals for cardiometabolic diseases, obesity, cancer and other hard-to-treat diseases. By combining proprietary 3D modeling with innovative drug discovery platforms, iBio is creating a pipeline of breakthrough antibody treatments to address significant unmet medical needs. Our mission is to transform drug discovery, accelerate development timelines, and unlock new possibilities in precision medicine.  For more information, visit www.ibioinc.com or follow us on LinkedIn.

    FORWARD-LOOKING STATEMENTS

    Certain statements in this press release constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. These forward-looking statements are based upon current estimates and assumptions and include statements regarding the transfer to Nasdaq, anticipated date of commencement of trading on the Nasdaq and continuation of trading on the NYSE American and the move to Nasdaq improving the visibility of the Company’s common stock, enhancing trading liquidity in the shares, and providing the Company with greater exposure to institutional investors. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others, the Company’s ability to derive the anticipated benefits from the move to Nasdaq, the Company’s ability to execute its growth strategy and advance its pipeline of therapeutic antibody candidates for cardiometabolic diseases and oncology; the Company’s ability to obtain regulatory approvals for commercialization of its product candidates, or to comply with ongoing regulatory requirements; regulatory limitations relating to the Company’s ability to promote or commercialize its product candidates for specific indications; acceptance of the Company’s product candidates in the marketplace and the successful development, marketing or sale of products; and whether the Company will incur unforeseen expenses or liabilities or other market factors; and the other factors discussed in the Company’s filings with the SEC including the Company’s Annual Report on Form 10-K for the year ended June 30, 2024 and the Company’s subsequent filings with the SEC on Forms 10-Q and 8-K. The information in this release is provided only as of the date of this release, and the Company undertakes no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.

    Corporate Contact:
    iBio, Inc.
    Investor Relations
    ir@ibioinc.com

    Media Contacts:
    Ignacio Guerrero-Ros, Ph.D., or David Schull
    Russo Partners, LLC
    Ignacio.guerrero-ros@russopartnersllc.com
    David.schull@russopartnersllc.com
    (858) 717-2310 or (646) 942-5604

    The MIL Network –

  • MIL-OSI: Enovix Announces Fourth Quarter and Full Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    FREMONT, Calif., Feb. 19, 2025 (GLOBE NEWSWIRE) — Enovix Corporation (“Enovix”) (Nasdaq: ENVX), a global high-performance battery company, announced today financial results for the fourth quarter and full year 2024, which included the summary below from its President and CEO, Dr. Raj Talluri.

    Fellow Shareholders,

    In the fourth quarter of 2024, we achieved key milestones in manufacturing, technology, and sales, setting the stage for a breakout year in 2025. We are focused on launching our first smartphone battery and converting our IoT pipeline into contracted backlog. Customers across multiple industries are acknowledging the readiness of our manufacturing capabilities, which are coming online at the perfect time to meet strong demand for our high energy-density solutions and diversified supply chain.

    Other recent highlights include:

    • Record Revenue: Fourth quarter revenues were a record $9.7 million, near the high end of our guidance. Full year 2024 revenues were also a record of $23.1 million, up 202%, from $7.6 million in 2023.
    • Smartphone Batteries: We shipped early engineering samples to our lead smartphone OEM, with results confirming that critical safety tests are passing. Additionally, cell dimensions were received in continuation of our agreement. We remain on track for commercial smartphone battery launches in 2025, pending successful completion of customer qualification. Furthermore, a new OEM customer submitted first samples purchase order, expanding our active engagements to 7 of the top 8 smartphone OEMs.
    • XR Batteries: Secured a landmark prepaid purchase order from a global technology leader in Artificial Intelligence (AI) and immersive technologies, reserving dedicated production capacity for next-generation smart eyewear. First samples, featuring our custom cells from Fab2 integrated into packs in our Korea facility, were delivered to the customer earlier this month.
    • Manufacturing Readiness: Fab2 in Malaysia completed Site Acceptance Testing (SAT) for the High-Volume Manufacturing (HVM) line, a key milestone in our journey to scale production. Additionally, we were honored to host several customers at our factory in Malaysia, conducting detailed line tours. And multiple OEMs initiated formal factory audits to support their qualification processes.
    • Products: We successfully completed safety testing of EX-1M and performance results indicate that we are on track to meet targets for energy density, cycle life, and fast charging. And the first EX-2M samples from Fab2 were shipped to customers on schedule.
    • Capitalization: 2024 year-end cash and cash equivalents of $272.9 million and continued operating expense discipline provides optionality for funding additional HVM lines.

    2025 is off to a fast start, fueled by accelerating AI innovation and a shifting landscape that is driving OEMs to diversify their supply chains. As a leader in high-energy-density battery technology with manufacturing facilities in Korea and Malaysia, Enovix is well positioned to capitalize on these industry trends.

    A key strategic decision in 2024 was to invest in the emerging AI-enabled smart eyewear market by developing a battery cell tailored for this market. We believe this investment is now paying off, as our product is expected to launch as this market is gaining momentum. New estimates from IDC project the smart eyewear market will reach multiple tens of millions of units by 2028, driven by recent hardware and software ecosystem advancements, the growing adoption of AI applications, and the expanding use cases across consumer, enterprise and defense markets. A majority of America’s largest tech companies, along with several top-tier Asia-based OEMs, have announced smart eyewear products. However, one major bottleneck remains – no product today delivers resiliency to all-day usage with ever-increasing sensor, communications (WiFi, Bluetooth, cellular, and satellite), and computing demands. This presents a prime opportunity for Enovix. With our high-energy-density battery already developed, HVM ramping up, and many of the market’s key players based in our backyard of Silicon Valley, we believe we are well-positioned to lead in this space.

    In smartphones, the strong tailwinds we identified last quarter continue in 2025. OEMs are increasingly requesting batteries with capacities near 7,000 milliamp-hours to support the growing power demands of next-generation AI applications. Additionally, with smartphone penetration already at saturation levels, market leaders are intensifying their focus on product differentiation – particularly in regions outside the US, where competition is fierce. We believe that our EX-2M and upcoming EX-3M battery solutions align with evolving demands, reinforcing our role as a strategic partner to leading OEMs.

    A new industry trend that has emerged subsequent to our last shareholder letter is supply chain-driven demand, particularly in the defense sector. Soon after the US elections in November, we observed an increase in inbound interest from drone manufacturers and defense suppliers seeking battery solutions that comply with allied country supply chain requirements. As a reminder, a significant portion of our 2024 revenue came from sales of conventional graphite battery products to defense customers. Earlier this month, we secured a purchase order for samples from a new defense customer with over $1 billion in annual sales to the US military, focused on autonomous AI systems. While these developments are still evolving, we are optimistic about the potential upside.

    Business Update

    Manufacturing. We successfully completed our key fourth-quarter objectives on schedule, including SAT for the HVM line and shipping the first EX-2M samples. We also further improved yields across both the Agility and HVM lines, with incremental targets in place throughout the year that we believe will ensure readiness for smartphone mass production in the fourth quarter of 2025. Customer audits are now underway at our Malaysia facility. While preparing Fab2 for mass production remains our primary manufacturing focus in 2025, we are also prioritizing efforts to accelerate custom cell development timelines. Our initial success in the emerging smart eyewear market was made possible because we dedicated resources to making a new variant of EX-1M designed to fit within the confines of the glasses frames. As we scale, our ability to swiftly develop tailored solutions with precision manufacturing and latest chemistries will play a critical role in our success. Additionally, we continue to act in a disciplined manner to select the right customer opportunities to pursue for long-term growth.

    Commercialization. Our business team remains focused on smartphone mass production as the primary commercialization goal for 2025. In October of 2024, we took a major step toward this objective by executing a strategic partnership that outlined key milestones leading up to our entry into the smartphone market by late 2025. This agreement was followed by a purchase order in the fourth quarter of 2024 tied to one of those milestones, and in the first quarter of 2025 we received battery dimensions for a planned 2025 smartphone launch. Additionally, we secured a first purchase order for samples from a new global smartphone manufacturer, expanding our customer engagements to 7 of the top 8 smartphone OEMs.

    In addition to being focused on smartphone business, we are also being highly selective with IoT opportunities, prioritizing segments where our technology and global supply chain have a strong competitive advantage. Among these, smart eyewear emerged as a natural fit, and we are now in the process of developing custom cells for marquee customers. This quarter, we shipped our first samples to customers using our Korea-based packing capability that is now fully integrated with our silicon cell production out of Malaysia. Our first commercial shipments are scheduled to commence mid-year, and we are actively securing additional IoT purchase orders.

    In the EV space, we continue advancing development agreements with two of the world’s largest automotive OEMs. Consistent with our capital-efficient strategy, we remain focused on targeted collaborations that allow us to scale in this vertical while optimizing investment.

    Across these markets, our disciplined approach to commercialization ensures that we are not only securing near-term revenue opportunities but also building a foundation for long-term leadership in high-energy-density battery solutions.

    Products:

    Our battery technology continues to advance across multiple generations, with significant progress in safety and performance validation, customer sampling, and next-generation design. We successfully completed safety testing of EX-1M and performance results indicate that we are on track to meet targets for energy density, cycle life, and fast charging. For EX-2M, we delivered early engineering samples to OEMs across both smartphone and IoT markets and received positive feedback. Additionally, EX-2M has outperformed traditional graphite-based cells in select safety tests such as crush and impact tests. We are now refining our electrochemistry to further enhance performance metrics. Looking ahead, we have officially kicked off the design phase for EX-3M. As we continue refining key performance specifications, we are incorporating feedback from lead OEMs to ensure alignment with their evolving requirements. Our goal is to finalize the EX-3M design in early 2025, paving the way for our next-generation battery technology.

    These advancements reflect our commitment to delivering high-performance, high-energy-density battery solutions across multiple product categories, reinforcing our position as a leader in battery innovation.

    Financials: Revenue was $9.7 million in the fourth quarter of 2024, near the high end of our guidance range and up more than 30 percent year over year. A majority of revenues were from our conventional battery capacity in South Korea which is seeing a positive demand environment from defense customers and benefiting from increased collaboration with our US engineers. Our GAAP cost of revenue was $8.7 million in the fourth quarter of 2024 leading to the Company’s first ever positive gross margin which totaled $1.1 million or 11% of sales.

    Our GAAP operating expenses were $35.6 million in the fourth quarter of 2024 compared to $48.6 million in the third quarter, which reflects some of the expense reductions related to our shift of various functions to lower cost regions such as Malaysia and India. Our non-GAAP operating expenses were $24.3 million in the fourth quarter of 2024, down from $27.2 million in the previous quarter.

    Our GAAP net loss attributable to Enovix was $37.5 million in the fourth quarter of 2024, compared to $22.5 million in the previous quarter. As a reminder our GAAP net loss is impacted quarterly by changes in fair value of common stock warrants, which resulted in a $5.1 million expense in the fourth quarter compared to a $29.9 million benefit in the third quarter of 2024.  

    Adjusted EBITDA in the fourth quarter of 2024 was a loss of $11.7 million compared to an adjusted EBITDA loss of $21.6 million in the previous quarter. The sequential improvement was driven by positive gross margin, lower operating expenses and a $1.0 million increase in depreciation and amortization.

    Earnings per share loss in the fourth quarter of 2024 was $0.20 on a GAAP basis and $0.11 on a non-GAAP basis compared to third quarter earnings per share loss of $0.30 on a GAAP basis and $0.17 on a non-GAAP basis.

    We exited 2024 with $272.9 million of cash and cash equivalents following the receipts of approximately $107 million of net proceeds from an equity offering in the fourth quarter which was partially offset by $16.0 million used in operating activities and capital expenditures of $16.4 million during the quarter.

    A full reconciliation of our GAAP to non-GAAP results is available later in this report.

    Outlook

    For the first quarter of 2025, we expect revenue between $3.5 million and $5.5 million, a GAAP EPS loss of $0.23 to $0.29, an adjusted EBITDA loss of $21.0 million to $27.0 million, and a non-GAAP EPS loss of $0.15 to $0.21.

    Summary

    The top milestones we identified at the beginning of 2024 were achieving SAT for agility and our high-volume manufacturing lines in Malaysia and delivering samples of our leading smartphone batteries, EX-1M and EX-2M, to customers. Not only did we hit these top milestones, we also advanced relationships with market leaders in smartphones, AR/VR, and automotive industries. We believe that these relationships, supported by purchase orders and commercial launch schedules, provide a clear path for us to commence mass production in 2025.

    Conference Call Information

    Enovix will hold a video conference call at 2:00 PM PT / 5:00 PM ET today, February 19, 2025, to discuss the company’s business updates and financial results. To join the call, participants must use the following link to register: https://enovix-q4-2024.open-exchange.net/registration. This link will also be available via the Investor Relations section of the Enovix website at https://ir.enovix.com. An archived version of the call will be available on the Enovix website for one year at https://ir.enovix.com.

    About Enovix

    Enovix is on a mission to deliver high-performance batteries that unlock the full potential of technology products. Everything from IoT, mobile, and computing devices, to the vehicle you drive, needs a better battery. Enovix partners with OEMs worldwide to usher in a new era of user experiences. Our innovative, materials-agnostic approach to building a higher performing battery without compromising safety keeps us flexible and on the cutting-edge of battery technology innovation.

    Enovix is headquartered in Silicon Valley with facilities in India, Korea and Malaysia. For more information visit https://enovix.com and follow us on LinkedIn.

    Non-GAAP Financial Measures

    Non-GAAP operating expenses, EBITDA, Adjusted EBITDA, non-GAAP net loss per share, and other non-GAAP measures are intended as supplemental financial measures of our performance that provide an additional tool for investors to use in evaluating ongoing operating results, trends, and in comparing our financial measures with those of comparable companies.

    However, you should be aware that other companies may calculate similar non-GAAP measures differently. Non-GAAP financial measures have limitations, including that they exclude certain expenses that are required under GAAP, which adjustments reflect the exercise of judgment by management. Reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the tables at the end of this shareholder letter.

    While Enovix provides first quarter 2025 guidance for adjusted EBITDA loss and non-GAAP EPS loss, we are unable to provide without unreasonable effort a GAAP to non-GAAP reconciliation of these projected non-GAAP measures. Such qualitative reconciliation to the corresponding GAAP financial measure cannot be provided without unreasonable effort because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjustments that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to warrant liabilities and stock-based compensation. For the same reasons, we are unable to assess the probable significance of the unavailable information, which could have a material impact on our future GAAP financial results.

    Forward-Looking Statements

    This letter to shareholders contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance and can be identified by words such as anticipate, believe, continue, could, estimate, expect, intend, may, might, plan, possible, potential, predict, project, setting the stage, should, would and similar expressions that convey uncertainty about future events or outcomes. Forward-looking statements in this letter to shareholders include, without limitation, out expected performance and results for the first quarter of 2025; that 2025 will be a breakout year; the timing for completion of customer qualification for and the launch of our first smartphone battery in 2025; our expectations regarding our ability to commence mass production in 2025 and full utilization of the first HVM line in 2026; our expectations regarding, and our ability to respond to, market and customer demand; our expectations regarding the level of customers’ interest in our high energy-density solutions and diversified supply chain, the demand for more energy dense batteries and the suitability of our products to address this demand, and the impact of artificial intelligence (“AI”) features on the foregoing; our ability to develop and deliver a battery cell tailored to the smart eyewear market, including our ability to deliver a battery that delivers a full day of usage on a single charge, and the anticipated benefits of our investments in these products and market; our anticipated commercial shipments of batteries for smart eyewear and other IoT products by mid-year 2025; our ability to convert our IoT pipeline into contracted backlog; projected improvements in our manufacturing and commercialization and R&D activities at Fab2, including the ability of the sales team to support the path to profitability by attracting demand across high-growth markets; our achievement of the milestones under our strategic partnership with a leading smartphone OEM; expectations relating to broader agreements with automative OEMs; our ability to successfully complete safety testing and customer qualification and our ability to and the timing of our entry into the smartphone market in 2025 with high-volume production from our Fab2 facility; our ability to meet our spec targets for energy density, cycle life and fast charging for our EX-1M cells; our ability to develop and commercialize customer and product-specific variants of our products and other tailored solutions for our customers; our expectations regarding EX-1M and EX-2M readiness and production, and predicted EX-3M battery solution production; our ability to meet goals for yield, throughput, energy density, cycle life and fast charging; the readiness of our production and manufacturing capabilities; our expectations with respect to the development and innovation of EX-2M and EX-3M, including our ability to finalize the EX-3M design in Q1 2025; our expectations regarding Fab2 in and its capacity to support multiple customer qualifications; our observations and expectations around supply chain-driven demand including in the defense sector, and interest from specific customer segments including drone manufacturers and military suppliers; the anticipated contributions of our R&D teams to support product innovation; our revenue funnel; our efforts in the portable electronics and EV markets, including the IoT, smartphone, smart eyewear and virtual reality categories; expectations regarding the reservation and use of production capacity and our ability to satisfy production expectations relating to next-generation smart eyewear; our ability to meet milestones and deliver on our objectives and expectations; our ability to fund additional HVM lines; anticipated increases in demand and interest in our products from manufacturers and suppliers seeking battery solutions that comply with allied country supply chain requirements; the implementation and expected success of our business model and growth strategy, including our focus on the addressable market categories in which we believe an improved battery drives a high value to the product and premium pricing for our solutions; our ability to manage our expenses and realize our annual cost savings goals; our ability to capitalize on industry trends, including trends relating to accelerating AI innovation; our ability to manage and achieve the benefits of our restructuring efforts, including continued operating expense discipline to facilitate funding for additional HVM lines at Fab2; and forecasts of our financial and performance metrics.

    Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties, including, without limitation, our ability to improve energy density, cycle life, fast charging, capacity roll off and gassing metrics among our products; our reliance on new and complex manufacturing processes for our operations; our ability to establish sufficient manufacturing operations and improve and optimize manufacturing processes to meet demand, source materials and establish supply relationships, and secure adequate funds to execute on our operational and strategic goals; our reliance on a manufacturing agreement with a Malaysia-based company for many of the facilities, procurement, personnel and financing needs of our operations; our operation in international markets, including our exposure to operational, financial and regulatory risks, as well as risks relating to geopolitical tensions and conflicts, including changes in trade policies and regulations; that we may be required to pay costs for components and raw materials that are more expensive than anticipated, including as a result of trade barriers, trade sanctions, export restrictions, tariffs, embargoes or shortages and other general economic and political conditions, which could delay the introduction of our products and negatively impact our business; our ability to adequately control the costs associated with our operations and the components necessary to build our lithium-ion battery cells; our lengthy sales cycles; the safety hazards associated with our batteries and the manufacturing process; a concentration of customers in the military market and our dependence on these customer accounts; certain unfavorable terms in our commercial agreements that may limit our ability to market our products; our ability to develop, market and sell our batteries, expectations relating to the performance of our batteries, and market acceptance of our products; our ability to accurately estimate the future supply and demand of our batteries, which could result in a variety of inefficiencies in our business; changes in consumer preferences or demands; changes in industry standards; the impact of technological development and competition; and global economic conditions, including tariffs, inflationary and supply chain pressures, and political, social, and economic instability, including as a result of armed conflict, war or threat of war, or trade and other international disputes that could disrupt supply or delivery of, or demand for, our products.

    For additional information on these risks and uncertainties and other potential factors that could cause actual results to differ from the results predicted, please refer to our filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our annual report on Form 10-K and quarterly reports on Form 10-Q and other documents that we have filed, or will file, with the SEC. Any forward-looking statements in this letter to shareholders speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    For media and investor inquiries, please contact:

    Enovix Corporation
    Robert Lahey
    Email: ir@enovix.com

     
    Enovix Corporation
    Condensed Consolidated Balance Sheets
    (Unaudited) (In Thousands, Except Share and per Share Amounts)
     
      December 29, 2024   December 31, 2023
    Assets      
    Current assets:      
    Cash and cash equivalents $ 272,869     $ 233,121  
    Short-term investments   —       73,694  
    Accounts receivable, net   4,566       909  
    Notes receivable, net   4       1,514  
    Inventory   7,664       8,737  
    Prepaid expenses and other current assets   9,903       5,202  
    Total current assets   295,006       323,177  
    Property and equipment, net   167,947       166,471  
    Customer relationship intangibles and other intangibles, net   36,394       42,168  
    Operating lease, right-of-use assets   13,479       15,290  
    Goodwill   12,217       12,098  
    Other assets, non-current   2,126       5,100  
    Total assets $ 527,169     $ 564,304  
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable $ 9,492     $ 21,251  
    Accrued expenses   19,843       13,976  
    Accrued compensation   8,228       10,731  
    Short-term debt   9,452       5,917  
    Deferred revenue   3,650       6,708  
    Other liabilities   3,036       2,435  
    Total current liabilities   53,701       61,018  
    Long-term debt, net   169,820       169,099  
    Warrant liability   28,380       42,900  
    Operating lease liabilities, non-current   13,293       15,594  
    Deferred revenue, non-current   3,774       3,774  
    Deferred tax liability   8,784       10,803  
    Other liabilities, non-current   14       13  
    Total liabilities   277,766       303,201  
    Commitments and Contingencies      
    Stockholders’ equity:      
    Common stock, $0.0001 par value; authorized shares of 1,000,000,000; issued and outstanding shares of 190,559,335 and 167,392,315 as of December 29, 2024 and December 31, 2023, respectively   19       17  
    Preferred stock, $0.0001 par value; authorized shares of 10,000,000; no shares issued or outstanding as of December 29, 2024 and December 31, 2023, respectively   —       —  
    Additional paid-in-capital   1,067,951       857,037  
    Accumulated other comprehensive loss   (143 )     (62 )
    Accumulated deficit   (821,086 )     (598,845 )
    Total Enovix’s stockholders’ equity   246,741       258,147  
    Non-controlling interest   2,662       2,956  
    Total equity   249,403       261,103  
    Total liabilities and equity $ 527,169     $ 564,304  
     
    Enovix Corporation
    Condensed Consolidated Statements of Operations
    (Unaudited)
    (In Thousands, Except Share and per Share Amounts)
     
      Quarters Ended   Fiscal Years Ended
      December 29,
    2024    		   December 31,
    2023    		   December 29,
    2024    		   December 31,
    2023
    Revenue $ 9,717     $ 7,381     $ 23,074     $ 7,644  
    Cost of revenue   8,665       19,769       25,119       63,061  
    Gross margin   1,052       (12,388 )     (2,045 )     (55,417 )
    Operating expenses:              
    Research and development   22,433       34,582       124,506       88,392  
    Selling, general and administrative   13,135       17,807       74,311       79,014  
    Impairment of equipment   —       —       —       4,411  
    Restructuring cost   —       —       41,807       3,021  
    Total operating expenses   35,568       52,389       240,624       174,838  
    Loss from operations   (34,516 )     (64,777 )     (242,669 )     (230,255 )
    Other income (expense):              
    Change in fair value of common stock warrants   (5,115 )     2,040       12,244       6,180  
    Interest income   2,587       4,128       12,332       14,070  
    Interest expense   (1,719 )     (1,629 )     (6,787 )     (4,456 )
    Other income (loss), net   2,463       (433 )     954       (304 )
    Total other income (loss), net   (1,784 )     4,106       18,743       15,490  
    Loss before income tax expense (benefit)   (36,300 )     (60,671 )     (223,926 )     (214,765 )
    Income tax expense (benefit)   1,152       (633 )     (1,392 )     (633 )
    Net loss   (37,452 )     (60,038 )     (222,534 )     (214,132 )
    Net gain (loss) attributable to non-controlling interests   13       (61 )     (293 )     (61 )
    Net loss attributable to Enovix $ (37,465 )   $ (59,977 )   $ (222,241 )   $ (214,071 )
                   
    Net loss per share attributable to Enovix shareholders, basic $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.35 )
    Weighted average number of common shares outstanding, basic   184,971,942       165,708,522       175,038,107       159,065,697  
    Net loss per share attributable to Enovix shareholders, diluted $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.38 )
    Weighted average number of common shares outstanding, diluted   184,971,942       165,708,522       175,038,107       159,575,555  
     
    Enovix Corporation
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)
     
    (In Thousands) Fiscal Years
        2024       2023  
    Cash flows used in operating activities:      
    Net loss $ (222,534 )   $ (214,132 )
    Adjustments to reconcile net loss to net cash used in operating activities      
    Depreciation, accretion and amortization   44,961       34,009  
    Stock-based compensation   58,837       69,452  
    Changes in fair value of common stock warrants   (12,244 )     (6,180 )
    Impairment and loss on disposals of long-lived assets   38,258       4,411  
    Others   448       703  
    Changes in operating assets and liabilities:      
    Accounts and notes receivables   (2,465 )     (370 )
    Inventory   1,073       4,509  
    Prepaid expenses and other assets   (2,211 )     (626 )
    Accounts payable   (7,970 )     6,096  
    Accrued expenses and compensation   3,016       1,977  
    Deferred revenue   (3,058 )     (3,860 )
    Deferred tax liability   (2,697 )     (813 )
    Other liabilities   (2,047 )     188  
    Net cash used in operating activities   (108,633 )     (104,636 )
    Cash flows from investing activities:      
    Purchase of property and equipment   (76,188 )     (61,795 )
    Routejade acquisition, net of cash and restricted cash acquired   —       (9,968 )
    Purchases of investments   (31,812 )     (138,343 )
    Maturities of investments   106,621       67,150  
    Net cash used in investing activities   (1,379 )     (142,956 )
    Cash flows from financing activities:      
    Proceeds from issuance of common stocks, net of issuance costs   107,192       —  
    Proceeds from issuance of Convertible Senior Notes and loans   4,572       172,500  
    Repayment of debt   (209 )     (69 )
    Payments of debt issuance costs   —       (5,917 )
    Purchase of Capped Calls   —       (17,250 )
    Payroll tax payments for shares withheld upon vesting of RSUs   (7,079 )     (3,931 )
    Proceeds from the exercise of stock options and issuance of common stock under ATM, net of issuance costs   44,771       11,928  
    Proceeds from issuance of common stock under employee stock purchase plan   1,506       2,350  
    Repurchase of unvested restricted common stock   (4 )     (26 )
    Net cash provided by financing activities   150,749       159,585  
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   (1,169 )     154  
    Change in cash, cash equivalents, and restricted cash   39,568       (87,853 )
    Cash and cash equivalents and restricted cash, beginning of period   235,123       322,976  
    Cash and cash equivalents, and restricted cash, end of period $ 274,691     $ 235,123  
           

    Net Loss Attributable to Enovix to Adjusted EBITDA Reconciliation

    While we prepare our consolidated financial statements in accordance with GAAP, we also utilize and present certain financial measures that are not based on GAAP. We refer to these financial measures as “non-GAAP” financial measures. In addition to our financial results determined in accordance with GAAP, we believe that EBITDA and Adjusted EBITDA are useful measures in evaluating its financial and operational performance distinct and apart from financing costs, certain non-cash expenses and non-operational expenses.

    These non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP. We endeavor to compensate for the limitation of the non-GAAP financial measures presented by also providing the most directly comparable GAAP measures.

    We use non-GAAP financial information to evaluate our ongoing operations and for internal planning, budgeting and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors in assessing its operating performance and comparing its performance with competitors and other comparable companies. You should review the reconciliations below but not rely on any single financial measure to evaluate our business.

    “EBITDA” is defined as earnings (net loss) attributable to Enovix adjusted for interest expense, income tax benefit, depreciation and amortization expense. “Adjusted EBITDA” includes additional adjustments to EBITDA such as stock-based compensation expense, change in fair value of common stock warrants, inventory step-up, impairment of equipment and other special items as determined by management which it does not believe to be indicative of its underlying business trends.

    Below is a reconciliation of net loss attributable to Enovix on a GAAP basis to the non-GAAP EBITDA and Adjusted EBITDA financial measures for the periods presented below (in thousands):

      Quarters Ended   Fiscal Years Ended
      December 29,
    2024    		   December 31,
    2023    		   December 29,
    2024    		   December 31,
    2023
    Net loss attributable to Enovix $ (37,465 )   $ (59,977 )   $ (222,241 )   $ (214,071 )
    Interest expense   1,719       1,629       6,787       4,456  
    Income tax expense (benefit)   1,152       (633 )     (1,392 )     (633 )
    Depreciation and amortization   7,544       24,009       44,961       34,009  
    EBITDA   (27,050 )     (34,972 )     (171,885 )     (176,239 )
    Stock-based compensation expense (1)   10,207       11,620       57,621       69,093  
    Change in fair value of common stock warrants   5,115       (2,040 )     (12,244 )     (6,180 )
    Inventory step-up   —       2,206       1,907       2,206  
    Impairment of equipment   —       —       —       4,411  
    Restructuring cost (1)   —       —       41,807       3,021  
    Acquisition cost   —       158       —       1,273  
    Adjusted EBITDA $ (11,728 )   $ (23,028 )   $ (82,794 )   $ (102,415 )

    ________________________
    (1)    $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 29, 2024. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 31, 2023.


    Free Cash Flow Reconciliation

    We define “Free Cash Flow” as (i) net cash from operating activities less (ii) capital expenditures, net of proceeds from disposals of property and equipment, all of which are derived from our Consolidated Statements of Cash Flow. The presentation of non-GAAP Free Cash Flow is not intended as an alternative measure of cash flows from operations, as determined in accordance with GAAP. We believe that this financial measure is useful to investors because it provides investors to view our performance using the same tool that we use to gauge our progress in achieving our goals and it is an indication of cash flow that may be available to fund investments in future growth initiatives. Below is a reconciliation of net cash used in operating activities to the Free Cash Flow financial measures for the periods presented below (in thousands):

      Fiscal Years
        2024       2023  
    Net cash used in operating activities $ (108,633 )   $ (104,636 )
    Capital expenditures   (76,188 )     (61,795 )
    Free Cash Flow $ (184,821 )   $ (166,431 )

    Other Non-GAAP Financial Measures Reconciliation
    (In Thousands, Except Share and per Share Amounts)

        Quarters Ended   Fiscal Years Ended
        December 29,
    2024    		   December 31,
    2023    		   December 29,
    2024    		   December 31,
    2023
    Revenue   $ 9,717     $ 7,381     $ 23,074     $ 7,644  
                     
    GAAP cost of revenue   $ 8,665     $ 19,769     $ 25,119     $ 63,061  
    Stock-based compensation expense     (124 )     (459 )     (320 )     (5,460 )
    Inventory step-up     —       (2,206 )     (1,907 )     (2,206 )
    Non-GAAP cost of revenue   $ 8,541     $ 17,104     $ 22,892     $ 55,395  
                     
    GAAP gross margin   $ 1,052     $ (12,388 )   $ (2,045 )   $ (55,417 )
    Stock-based compensation expense     124       459       320       5,460  
    Inventory step-up     —       2,206       1,907       2,206  
    Non-GAAP gross margin   $ 1,176     $ (9,723 )   $ 182     $ (47,751 )
                     
    GAAP research and development (R&D) expense   $ 22,433     $ 34,582     $ 124,506     $ 88,392  
    Stock-based compensation expense     (5,082 )     (5,337 )     (24,853 )     (27,409 )
    Amortization of intangible assets     (416 )     (277 )     (1,664 )     (277 )
    Non-GAAP R&D expense   $ 16,935     $ 28,968     $ 97,989     $ 60,706  
                     
    GAAP selling, general and administrative (SG&A) expense   $ 13,135     $ 17,807     $ 74,311     $ 79,014  
    Stock-based compensation expense     (5,001 )     (5,824 )     (32,448 )     (36,224 )
    Amortization of intangible assets     (773 )     (536 )     (3,077 )     (536 )
    Acquisition cost     —       (158 )     —       (1,273 )
    Non-GAAP SG&A expense   $ 7,361     $ 11,289     $ 38,786     $ 40,981  
                     
    GAAP operating expenses   $ 35,568     $ 52,389     $ 240,624     $ 174,838  
    Stock-based compensation expense included in R&D expense     (5,082 )     (5,337 )     (24,853 )     (27,409 )
    Stock-based compensation expense included in SG&A expense     (5,001 )     (5,824 )     (32,448 )     (36,224 )
    Amortization of intangible assets     (1,189 )     (813 )     (4,741 )     (813 )
    Impairment of equipment     —       —       —       (4,411 )
    Restructuring cost (1)     —       —       (41,807 )     (3,021 )
    Acquisition cost     —       (158 )     —       (1,273 )
    Non-GAAP operating expenses   $ 24,296     $ 40,257     $ 136,775     $ 101,687  

    ________________________
    (1)    $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 29, 2024. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 31, 2023.

        Quarters Ended   Fiscal Years Ended
        December 29,
    2024    		   December 31,
    2023    		   December 29,
    2024    		   December 31,
    2023
    GAAP loss from operations   $ (34,516 )   $ (64,777 )   $ (242,669 )   $ (230,255 )
    Stock-based compensation expense (1)     10,207       11,620       57,621       69,093  
    Amortization of intangible assets     1,189       813       4,741       813  
    Inventory step-up     —       2,206       1,907       2,206  
    Impairment of equipment     —       —       —       4,411  
    Restructuring cost (1)     —       —       41,807       3,021  
    Acquisition cost     —       158       —       1,273  
    Non-GAAP loss from operations   $ (23,120 )   $ (49,980 )   $ (136,593 )   $ (149,438 )
                     
    GAAP net loss attributable to Enovix   $ (37,465 )   $ (59,977 )   $ (222,241 )   $ (214,071 )
    Stock-based compensation expense (1)     10,207       11,620       57,621       69,093  
    Change in fair value of common stock warrants     5,115       (2,040 )     (12,244 )     (6,180 )
    Inventory step-up     —       2,206       1,907       2,206  
    Amortization of intangible assets     1,189       813       4,741       813  
    Impairment of equipment     —       —       —       4,411  
    Restructuring cost (1)     —       —       41,807       3,021  
    Acquisition cost     —       158       —       1,273  
    Non-GAAP net loss attributable to Enovix shareholders   $ (20,954 )   $ (47,220 )   $ (128,409 )   $ (139,434 )
                     
    GAAP net loss per share attributable to Enovix, basic   $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.35 )
    GAAP weighted average number of common shares outstanding, basic     184,971,942       165,708,522       175,038,107       159,065,697  
                     
    GAAP net loss per share attributable to Enovix, diluted   $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.38 )
    GAAP weighted average number of common shares outstanding, diluted     184,971,942       165,708,522       175,038,107       159,575,555  
                     
    Non-GAAP net loss per share attributable to Enovix, basic   $ (0.11 )   $ (0.28 )   $ (0.73 )   $ (0.88 )
    GAAP weighted average number of common shares outstanding, basic     184,971,942       165,708,522       175,038,107       159,065,697  
                     
    Non-GAAP net loss per share attributable to Enovix, diluted   $ (0.11 )   $ (0.28 )   $ (0.73 )   $ (0.87 )
    GAAP weighted average number of common shares outstanding, diluted     184,971,942       165,708,522       175,038,107       159,575,555  

    ________________________
    (1)    $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 29, 2024. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 31, 2023.

    The MIL Network –

  • MIL-OSI: Stronghold Urges Stockholders to Follow the “FOR” Recommendation of ISS and Glass Lewis and Support the Pending Merger With Bitfarms at the Upcoming Special Meeting

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Feb. 19, 2025 (GLOBE NEWSWIRE) — Stronghold Digital Mining, Inc. (NASDAQ: SDIG) (“Stronghold”, the “Company”, or “we”) today announced that the world’s leading independent proxy advisory firms, Institutional Shareholder Services (“ISS”) and Glass Lewis & Co. (“Glass Lewis”), have each recommended that Stronghold stockholders vote “FOR” the pending merger (the “Merger”) between Stronghold and Bitfarms Ltd. (NASDAQ/TSX: BITF) at the upcoming special meeting of the Company’s stockholders on February 27, 2025.

    In its report dated February 14, 2025, ISS stated, “[T]he company’s sale process was thorough, cost savings are expected as a result of the transaction, and the share form of consideration will allow SDIG shareholders to participate in the upside potential of a larger entity. On balance, support for the transaction is warranted.”1 In its report dated February 12, 2025, Glass Lewis also recommended support for the Merger.

    Gregory Beard, Chief Executive Officer, President and Chairman of Stronghold said, “We are pleased both leading proxy advisory firms support our Board’s unanimous recommendation that shareholders vote “FOR” the pending merger at the upcoming special meeting.”

    With the special meeting fast approaching on February 27, 2025, Stronghold would like to remind stockholders that their vote is very important regardless of the number of shares they own and urge all stockholders to vote by one of the methods described in the proxy statement before 11:59 p.m. Eastern Time on February 26, 2025.

    Additional information on the Merger, including links to the joint prospectus/proxy statement, can be found at sec.gov. Stockholders who have questions about the joint prospectus/proxy statement or about voting their shares should contact Stronghold’s proxy solicitor, MacKenzie Partners, Inc., toll-free at 1-800-322-2885 or via email at proxy@mackenziepartners.com.

    About Stronghold Digital Mining, Inc.

    Stronghold is a vertically integrated Bitcoin mining company with an emphasis on environmentally beneficial operations. Stronghold houses its miners at its wholly owned and operated Scrubgrass and Panther Creek plants, both of which are low-cost, environmentally beneficial coal refuse power generation facilities in Pennsylvania.

    Forward-Looking Statements

    This communication contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, forward-looking statements often address future business and financial events, conditions, expectations, plans or ambitions, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions, and variations or negatives of these words, but not all forward-looking statements include such words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the consummation of the proposed transaction and the anticipated benefits thereof. All such forward-looking statements are based upon current plans, estimates, expectations and ambitions that are subject to risks, uncertainties and assumptions, many of which are beyond the control of Bitfarms Ltd. (“Bitfarms”) and Stronghold, that could cause actual results to differ materially from those expressed in such forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: the risk that the Merger may not be completed on the anticipated terms in a timely manner or at all, which may adversely affect Stronghold’s business and the price of its Class A common stock, par value $0.0001 per share; the failure to satisfy any of the conditions to the consummation of the acquisition of Stronghold by Bitfarms (the “Merger”), including obtaining required stockholder and regulatory approvals; pending or potential litigation relating to the Merger that has been or could be instituted against Stronghold, Bitfarms or their respective directors or officers, including the effects of any outcomes related thereto; the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger agreement, including in circumstances requiring Stronghold to pay a termination fee; the effect of the announcement or pendency of the Merger on Stronghold’s business relationships, operating results and business generally; the risk that the Merger disrupts Stronghold’s current plans and operations; Stronghold’s ability to retain and hire key personnel and maintain relationships with key business partners and customers, and others with whom it does business, in light of the Merger; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the Merger; risks related to diverting management’s attention from Stronghold’s ongoing business operations; certain restrictions during the pendency of the Merger that may impact Stronghold’s ability to pursue certain business opportunities or strategic transactions; the possibility that the Merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; those risks described in Section 4.19 of Bitfarms’ Annual Information Form for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) as Exhibit 99.1 to Bitfarms’ Annual Report on Form 40-F, as amended in Amendment No. 1 to the Form 40-F, filed with the SEC on December 9, 2024 (the “Amended 40-F”) Section 19 of Bitfarms’ restated Management’s Discussion and Analysis for the year ended December 31, 2023, filed with the SEC as Exhibit 99.3 to the Amended 40-F, Section 19 of Bitfarms’ restated Management’s Discussion and Analysis for the three and nine months ended September 30, 2024, filed with the SEC on December 9, 2024, as Exhibit 99.2 to Bitfarms’ Current Report on Form 6-K/A; those risks described in Item 1A of Stronghold’s Annual Report on Form 10-K, filed with the SEC on March 8, 2024, Item 1A of Stronghold’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024, filed with the SEC on May 8, 2024, Item 1A of Stronghold’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024, filed with the SEC on August 14, 2024, Item 1A of Stronghold’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024, filed with the SEC on November 13, 2024, as amended pursuant to Form 10-Q/A, filed with the SEC on December 13, 2024, and subsequent reports on Forms 10-Q and 8-K; and those risks that are described in the registration statement on Form F-4 (File No. 333-282657) filed by Bitfarms with the SEC (the “registration statement”), which includes a proxy statement of Stronghold that also constitutes a prospectus of Bitfarms (the “proxy statement/prospectus”).

    These risks, as well as other risks associated with the proposed transaction, are more fully discussed in the proxy statement/prospectus included in the registration statement on Form F-4 filed with the SEC in connection with the proposed transaction. While the list of factors presented here and the list of factors to be presented in the registration statement on Form F-4 are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. We caution you not to place undue reliance on any of these forward-looking statements as they are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of new markets or market segments in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this communication. Neither Bitfarms nor Stronghold assumes any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. Neither future distribution of this communication nor the continued availability of this communication in archive form on Bitfarms’ or Stronghold’s website should be deemed to constitute an update or re-affirmation of these statements as of any future date.

    Additional Information about the Merger and Where to Find It

    This communication relates to a proposed merger between Stronghold and Bitfarms. In connection with the proposed merger, Bitfarms has filed the registration statement with the SEC. The registration statement was declared effective on January 28, 2025, and Stronghold mailed the proxy statement/prospectus to its stockholders on or about January 29, 2025. This communication is not a substitute for the registration statement, the proxy statement/prospectus or any other relevant documents Bitfarms and Stronghold has filed or will file with the SEC. Investors are urged to read the proxy statement/prospectus (including all amendments and supplements thereto) and other relevant documents filed with the SEC carefully and in their entirety if and when they become available because they contain important information about the proposed merger and related matters.

    Investors may obtain free copies of the registration statement, the proxy statement/prospectus and other relevant documents filed by Bitfarms and Stronghold with the SEC, when they become available, through the website maintained by the SEC at www.sec.gov. Copies of the documents may also be obtained for free from Bitfarms by contacting Bitfarms’ Investor Relations Department at investors@bitfarms.com and from Stronghold by contacting Stronghold’s Investor Relations Department at SDIG@gateway-grp.com.

    No Offer or Solicitation

    This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to buy, sell or solicit any securities or any proxy, vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be deemed to be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

    Investor Contact:
    Matt Glover
    Gateway Group, Inc.
    SDIG@gateway-grp.com
    1-949-574-3860
    Media Contact:
    contact@strongholddigitalmining.com

    ___________________________
    1 Permission to use quotes was neither sought nor obtained.

    The MIL Network –

  • MIL-OSI: TeraWulf Schedules Conference Call for Fourth Quarter and Year End 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    EASTON, Md., Feb. 19, 2025 (GLOBE NEWSWIRE) — TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), a leading owner and operator of vertically integrated, next-generation digital infrastructure powered by predominantly zero-carbon energy, today announced that it will hold its earnings conference call and webcast for the fourth quarter ended December 31, 2024 on Friday, February 28, 2025 at 8:00 a.m. Eastern Time.

    A press release detailing these results will be issued prior to the call on the same day.

    Conference Call Information

    To participate in this event, please log on or dial in approximately 5 minutes before the beginning of the call.

    Date: February 28, 2025
    Time: 8:00 a.m. ET
    Access ID: 13751951
    Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1709303&tp_key=90f2b11735 
    Dial in: 1-877-407-0789 or 1-201-689-8562 
    Call me™: https://callme.viavid.com/viavid/?callme=true&passcode=13748140&h=true&info=company&r=true&B=6

    Participants can use the dial-in numbers listed above or click the Call me™ link for instant telephone access to the event. The Call me™ link will be available 15 minutes prior to the scheduled start time.

    Replay Information

    Dial-In: (844) 512-2921 or (412) 317-6671
    Replay Expiration: Friday, March 14, 2025 at 11:59 PM ET
    Access ID: 13751951

    About TeraWulf

    TeraWulf develops, owns, and operates environmentally sustainable, next-generation data center infrastructure in the United States, specifically designed for Bitcoin mining and high-performance computing. Led by a team of seasoned energy entrepreneurs, the Company owns and operates the Lake Mariner facility situated on the expansive site of a now retired coal plant in Western New York. Currently, TeraWulf generates revenue primarily through Bitcoin mining, leveraging predominantly zero-carbon energy sources, including nuclear and hydroelectric power. Committed to environmental, social, and governance (ESG) principles that align with its business objectives, TeraWulf aims to deliver industry-leading economics in mining and data center operations at an industrial scale.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements include statements concerning anticipated future events and expectations that are not historical facts. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements. In addition, forward-looking statements are typically identified by words such as “plan,” “believe,” “goal,” “target,” “aim,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions, although the absence of these words or expressions does not mean that a statement is not forward-looking. Forward-looking statements are based on the current expectations and beliefs of TeraWulf’s management and are inherently subject to a number of factors, risks, uncertainties and assumptions and their potential effects. There can be no assurance that future developments will be those that have been anticipated. Actual results may vary materially from those expressed or implied by forward-looking statements based on a number of factors, risks, uncertainties and assumptions, including, among others: (1) conditions in the cryptocurrency mining industry, including fluctuation in the market pricing of bitcoin and other cryptocurrencies, and the economics of cryptocurrency mining, including as to variables or factors affecting the cost, efficiency and profitability of cryptocurrency mining; (2) competition among the various providers of cryptocurrency mining services; (3) changes in applicable laws, regulations and/or permits affecting TeraWulf’s operations or the industries in which it operates, including regulation regarding power generation, cryptocurrency usage and/or cryptocurrency mining, and/or regulation regarding safety, health, environmental and other matters, which could require significant expenditures; (4) the ability to implement certain business objectives and to timely and cost-effectively execute integrated projects; (5) failure to obtain adequate financing on a timely basis and/or on acceptable terms with regard to growth strategies or operations; (6) loss of public confidence in bitcoin or other cryptocurrencies and the potential for cryptocurrency market manipulation; (7) adverse geopolitical or economic conditions, including a high inflationary environment; (8) the potential of cybercrime, money-laundering, malware infections and phishing and/or loss and interference as a result of equipment malfunction or break-down, physical disaster, data security breach, computer malfunction or sabotage (and the costs associated with any of the foregoing); (9) the availability, delivery schedule and cost of equipment necessary to maintain and grow the business and operations of TeraWulf, including mining equipment and infrastructure equipment meeting the technical or other specifications required to achieve its growth strategy; (10) employment workforce factors, including the loss of key employees; (11) litigation relating to TeraWulf and/or its business; and (12) other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Potential investors, stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. TeraWulf does not assume any obligation to publicly update any forward-looking statement after it was made, whether as a result of new information, future events or otherwise, except as required by law or regulation. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s filings with the SEC, which are available at www.sec.gov.

    Investors:
    Investors@terawulf.com

    Media:
    media@terawulf.com

    The MIL Network –

  • MIL-OSI: Tenaris Announces 2024 Fourth Quarter and Annual Results

    Source: GlobeNewswire (MIL-OSI)

    The financial and operational information contained in this press release is based on audited consolidated financial statements presented in U.S. dollars and prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard Board and adopted by the European Union, or IFRS. Additionally, this press release includes non-IFRS alternative performance measures i.e., EBITDA, Free Cash Flow, Net cash / debt and Operating working capital days. See exhibit I for more details on these alternative performance measures.

    LUXEMBOURG, Feb. 19, 2025 (GLOBE NEWSWIRE) — Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) today announced its results for the fourth quarter and year ended December 31, 2024 in comparison with its results for the fourth quarter and year ended December 31, 2023.

    Summary of 2024 Fourth Quarter Results

    (Comparison with third quarter of 2024 and fourth quarter of 2023)

      4Q 2024 3Q 2024 4Q 2023
    Net sales ($ million) 2,845 2,915 (2%) 3,415 (17%)
    Operating income ($ million) 558 537 4% 819 (32%)
    Net income ($ million) 519 459 13% 1,146 (55%)
    Shareholders’ net income ($ million) 516 448 15% 1,129 (54%)
    Earnings per ADS ($) 0.94 0.81 16% 1.92 (51%)
    Earnings per share ($) 0.47 0.40 16% 0.96 (51%)
    EBITDA* ($ million) 726 688 6% 975 (26%)
    EBITDA margin (% of net sales) 25.5% 23.6%   28.6%  
               

    *EBITDA in fourth quarter of 2024 includes a $67 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas. If this charge was not included EBITDA would have amounted to $659 million, or 23.2% of sales

    Net sales in the fourth quarter were more resilient than expected as we were able to reduce inventories and advance some shipments in the Middle East and Turkey, despite lower demand in Mexico, Argentina and Saudi Arabia. Our EBITDA declined 4% on a comparable basis with the margin supported by a favorable product mix which offset the effect of residual price declines in North America. Net income increased due to the partial reversal of the provision made in the second quarter for the ongoing litigation related to the acquisition of a participation in Usiminas jointly with our associate company, Ternium.

    During the quarter, our free cash flow amounted to $310 million and, after spending $299 million on dividends and $454 million on share buybacks, our net cash position declined to $3.6 billion at December 31, 2024.

    Summary of 2024 Annual Results

      12M 2024 12M 2023 Increase/(Decrease)
    Net sales ($ million) 12,524 14,869 (16%)
    Operating income ($ million) 2,419 4,316 (44%)
    Net income ($ million) 2,077 3,958 (48%)
    Shareholders’ net income ($ million) 2,036 3,918 (48%)
    Earnings per ADS ($) 3.61 6.65 (46%)
    Earnings per share ($) 1.81 3.32 (45%)
    EBITDA* ($ million) 3,052 4,865 (37%)
    EBITDA margin (% of net sales) 24.4% 32.7%  
           

    *EBITDA in 12M 2024 includes a $107 million loss from the provision for the ongoing litigation related to the acquisition of a participation in Usiminas. If this charge was not included EBITDA would have amounted to $3,159 million, or 25.2% of sales.

    Our sales in 2024 amounted to $12.5 billion with a decrease of 16% compared to 2023, primarily reflecting a decline in market prices for our tubular products used in onshore drilling applications in the Americas, lower drilling activity in Mexico and Colombia, lower shipments for pipeline projects in Argentina and lower sales of mechanical pipes in Europe. On the other hand, sales in the Middle East reached a record level as Saudi Aramco replenished OCTG stocks and increased gas drilling activity. EBITDA and margins also declined to $3.1 billion, being further affected by a $107 million loss from a provision for the ongoing litigation related to the acquisition of a participation in Usiminas. Net income amounted to $2.1 billion, or 17% of net sales, and was affected by a reduction of $43 million from our participation in Ternium related to the same case.

    Cash flow provided by operating activities amounted to $2.9 billion during 2024. This was used to fund capital expenditures of $694 million, with the remainder distributed to shareholders through dividend payments of $758 million and share buybacks for $1,440 million in the year. We maintained a net cash position of $3.6 billion at the end of December 2024.

    Change of Chief Financial Officer

    Effective as of May 2, 2025, Mr. Carlos Gomez Alzaga will assume the position of Chief Financial Officer, replacing Ms. Alicia Mondolo, who will retire from this role.

    Mr. Gomez Alzaga, who has more than 20 years of experience in Administration and Finance at Tenaris, previously served as Regional CFO for Mexico and Central America, and Economic and Financial Planning Director, among other positions, and currently holds the position of Regional CFO for Argentina and South America.

    Ms. Mondolo will continue to serve as senior advisor to our Chairman and CEO.

    Paolo Rocca and the Board of Tenaris would like to express their gratitude and appreciation for Alicia´s contribution as CFO of Tenaris and her 41 years of service within the Techint Group.

    Market Background and Outlook

    Oil prices remain relatively stable (as they have done over the past two years) with OPEC+ maintaining their voluntary production cuts in the face of limited global demand growth. European and US natural gas prices have, however, risen as relatively cold winter weather and the cutoff of Russian supply have led to a rapid drawdown in inventories.

    These prices and the continuing balance between oil and gas demand and supply should continue to support overall investment in oil and gas drilling activity, as well as OCTG demand, at current levels, albeit with some regional nuances.

    In North America, consolidation among major operators and drilling efficiencies led to a drop in US drilling activity last year, which has now stabilized, while OCTG consumption per rig has been increasing. In Latin America, drilling activity is increasing in Argentina, as investment in pipeline and LNG infrastructure investment for the Vaca Muerta shale moves forward, while, in Mexico, it has been affected by financial constraints on Pemex. In the Middle East, some reduction in oil drilling has taken place in Saudi Arabia while gas drilling has risen, and, in Abu Dhabi, oil drilling is increasing.

    OCTG reference prices in North America, which fell steadily for two years until the second half of 2024, have so far recovered by 9% from their August low and could rise further following the US government’s announced reset of Section 232 tariffs on all imports of steel products without exception.

    In this environment, we expect our sales and EBITDA (excluding extraordinary effects) in the first quarter to be in line with the previous one before rising moderately in the second quarter. Beyond that, likely changes in US tariffs and their possible ramifications on trade flows will introduce a new dynamic with a high level of uncertainty for costs and prices to our results.

    Annual Dividend Proposal

    Upon approval of the Company´s annual accounts in April 2025, the board of directors intends to propose, for approval of the annual general shareholders’ meeting to be held on May 6, 2025, the payment of a dividend per share of $0.83 (in an aggregate amount of approximately $0.9 billion), which would include the interim dividend per share of $0.27 (approximately $0.3 billion) paid in November 2024. If the annual dividend is approved by the shareholders, a dividend of $0.56 per share ($1.12 per ADS), or approximately $0.6 billion, will be paid according to the following timetable:

    • Payment date: May 21, 2025
    • Record date: May 20, 2025
    • Ex-dividend for securities listed in Europe and Mexico: May 19, 2025
    • Ex-dividend for securities listed in the United States: May 20, 2025

    Analysis of 2024 Fourth Quarter Results

    Tubes

    The following table indicates, for our Tubes business segment, sales volumes of seamless and welded pipes for the periods indicated below:

    Tubes Sales volume (thousand metric tons) 4Q 2024 3Q 2024
    		 4Q 2023
    Seamless 748 746 0% 760 (2%)
    Welded 164 191 (14%) 246 (33%)
    Total 913 937 (3%) 1,006 (9%)
               

    The following table indicates, for our Tubes business segment, net sales by geographic region, operating income and operating income as a percentage of net sales for the periods indicated below:

    Tubes 4Q 2024 3Q 2024 4Q 2023
    (Net sales – $ million)          
    North America 1,131 1,273 (11%) 1,501 (25%)
    South America 595 484 23% 590 1%
    Europe 341 280 22% 302 13%
    Asia Pacific, Middle East and Africa 629 754 (17%) 805 (22%)
    Total net sales ($ million) 2,695 2,790 (3%) 3,198 (16%)
    Services performed on third party tubes ($ million) 93 97 (4%) 34 176%
    Operating income ($ million) 533 527 1% 780 (32%)
    Operating margin (% of sales) 19.8% 18.9%   24.4%  
               

    Net sales of tubular products and services decreased 3% sequentially and 16% year on year. Sequentially volumes sold decreased 3% while average selling prices decreased less than 1% as a favorable product mix offset price declines in North America. Sequentially, in North America sales declined due to lower prices throughout the region and lower activity in Mexico. In South America sales increased as higher sales in Brazil with shipments to the Raia pipeline and a recovery of OCTG offset lower sales for pipelines and the industrial market in Argentina. In Europe sales increased due to shipments to the Sakarya offshore line pipe project and higher sales of OCTG in Turkey. In Asia Pacific, Middle East and Africa sales declined due to lower sales in Saudi Arabia upon completion of inventory replenishment program and lower activity, partially offset by an increase in sales to the UAE.

    Operating results from tubular products and services amounted to a gain of $533 million in the fourth quarter of 2024 compared to a gain of $527 million in the previous quarter and a gain of $780 million in the fourth quarter of 2023. This quarter’s operating income includes a $67 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas. Excluding this gain Tubes operating income would have amounted to $467 million (17.3% of sales) in the fourth quarter, a 12% sequential reduction following the decline in sales and margins. Margins declined due to the decline in prices and a more costly product mix.

    Others

    The following table indicates, for our Others business segment, net sales, operating income and operating income as a percentage of net sales for the periods indicated below:

    Others 4Q 2024 3Q 2024 4Q 2023
    Net sales ($ million) 150 125 20% 217 (31%)
    Operating income ($ million) 25 10 156% 39 (36%)
    Operating margin (% of sales) 16.8% 7.9%   18.1%  
               

    Net sales of other products and services increased 20% sequentially and decreased 31% year on year. Sequentially, sales increased mainly due to higher sales of oil services in Argentina and coiled tubing.

    Selling, general and administrative expenses, or SG&A, amounted to $446 million, or 15.7% of net sales, in the fourth quarter of 2024, compared to $454 million, 15.6% in the previous quarter and $471 million, 13.8% in the fourth quarter of 2023. Sequentially, the decline in SG&A is mainly due to lower shipment costs due to a reduction in volumes shipped.

    Other operating results amounted to a net gain of $81 million in the fourth quarter of 2024, compared to a gain of $11 million in the previous quarter and a $5 million loss in the fourth quarter of 2023. The fourth quarter of 2024 includes a $67 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas.

    Financial results amounted to a gain of $48 million in the fourth quarter of 2024, compared to a gain of $48 million in the previous quarter and a gain of $93 million in the fourth quarter of 2023. Financial result of the quarter is mainly attributable to a $42 million net finance income from the net return of our portfolio investments.

    Equity in earnings of non-consolidated companies generated a gain of $35 million in the fourth quarter of 2024, compared to a gain of $8 million in the previous quarter and a gain of $57 million in the fourth quarter of 2023. These results are mainly derived from our participation in Ternium (NYSE:TX). During the fourth quarter of 2024 the result from Ternium´s investment includes a $43 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas.

    Income tax charge amounted to $123 million in the fourth quarter of 2024, compared to $134 million in the previous quarter and $177 million in the fourth quarter of 2023.

    Cash Flow and Liquidity of 2024 Fourth Quarter

    Net cash generated by operating activities during the fourth quarter of 2024 was $492 million, compared to $552 million in the previous quarter and $0.8 billion in the fourth quarter of 2023. During the fourth quarter of 2024 cash generated by operating activities includes a net working capital increase of $37 million.

    With capital expenditures of $182 million, our free cash flow amounted to $310 million during the quarter. Following a dividend payment of $299 million and share buybacks of $454 million in the quarter, our net cash position amounted to $3.6 billion at December 31, 2024.

    Analysis of 2024 Annual Results

    The following table shows our net sales by business segment for the periods indicated below:

    Net sales ($ million) 12M 2024
    		 12M 2023
    		 Increase/(Decrease)
    Tubes 11,907 95% 14,185 95% (16%)
    Others 617 5% 684 5% (10%)
    Total 12,524   14,869   (16%)
               

    Tubes

    The following table indicates, for our Tubes business segment, sales volumes of seamless and welded pipes for the periods indicated below:

    Tubes Sales volume (thousand metric tons) 12M 2024 12M 2023 Increase/(Decrease)
    Seamless 3,077 3,189 (4%)
    Welded 852 953 (11%)
    Total 3,928 4,141 (5%)
           

    The following table indicates, for our Tubes business segment, net sales by geographic region, operating income and operating income as a percentage of net sales for the periods indicated below:

    Tubes 12M 2024 12M 2023 Increase/(Decrease)
    (Net sales – $ million)      
    North America 5,432 7,572 (28%)
    South America 2,294 3,067 (25%)
    Europe 1,143 1,055 8%
    Asia Pacific, Middle East and Africa 3,038 2,491 22%
    Total net sales ($ million) 11,907 14,185 (16%)
    Services performed on third party tubes ($ million) 484 165 193%
    Operating income ($ million) 2,305 4,183 (45%)
    Operating margin (% of sales) 19.4% 29.5%  
           

    Net sales of tubular products and services decreased 16% to $11,907 million in 2024, compared to $14,185 million in 2023 due to a 5% decrease in volumes and a 12% decrease in average selling prices, primarily reflecting a decline in market prices for our tubular products used in onshore drilling applications in the Americas, lower drilling activity in Mexico and Colombia, lower shipments for pipeline projects in Argentina and lower sales of mechanical pipes in Europe. On the other hand, sales in the Middle East reached a record level as Saudi Aramco replenished OCTG stocks and increased gas drilling activity.

    Operating results from tubular products and services amounted to a gain of $2,305 million in 2024 compared to a gain of $4,183 million in 2023. The decline in operating results is mainly due to the decline in average selling prices and the corresponding impact on sales and margins. Additionally, in 2024 our Tubes operating income includes a charge of $107 million from the provision for the ongoing litigation related to the acquisition of a participation in Usiminas, included in other operating expenses.

    Others

    The following table indicates, for our Others business segment, net sales, operating income and operating income as a percentage of net sales for the periods indicated below:

    Others 12M 2024 12M 2023 Increase/(Decrease)
    Net sales ($ million) 617 684 (10%)
    Operating income ($ million) 113 133 (15%)
    Operating margin (% of sales) 18.4% 19.5%  
           

    Net sales of other products and services decreased 10% to $617 million in 2024, compared to $684 million in 2023.

    Operating results from other products and services amounted to a gain of $113 million in 2024, compared to a gain of $133 million in 2023.

    Selling, general and administrative expenses, or SG&A, amounted to $1,905 million in 2024, representing 15.2% of sales, and $1,919 million in 2023, representing 12.9% of sales. SG&A expenses increased as a percentage of sales due to the 16% decline in revenues, mainly due to lower Tubes average selling prices and an increase of fixed costs.

    Other operating results amounted to a loss of $65 million in 2024, compared to a gain of $36 million in 2023. In 2024 we recorded a $107 million loss from provision for the ongoing litigation related to the acquisition of a participation in Usiminas. In 2023 other operating income includes a non-recurring gain of $33 million corresponding to the transfer of the awards related to the Company’s Venezuelan nationalized assets.

    Financial results amounted to a gain of $129 million in 2024, compared to a gain of $221 million in 2023. While net finance income increased due to a higher net financial position, net foreign exchange results decreased significantly in respect to the previous year.

    Equity in earnings of non-consolidated companies generated a gain of $9 million in 2024, compared to a gain of $95 million in 2023. These results were mainly derived from our equity investment in Ternium (NYSE:TX) and in 2024 were negatively affected by a $43 million loss from the provision for the ongoing litigation related to the acquisition of a participation in Usiminas on our Ternium investment.

    Income tax amounted to a charge of $480 million in 2024, compared to $675 million in 2023. The lower income tax charge mainly reflects the reduction in results at several subsidiaries.

    Cash Flow and Liquidity of 2024

    Net cash provided by operating activities in 2024 amounted to $2.9 billion (including a reduction in working capital of $287 million), compared to cash provided by operations of $4.4 billion (including a reduction in working capital of $182 million) in 2023.

    Capital expenditures amounted to $694 million in 2024, compared to $619 million in 2023. Free cash flow amounted to $2.2 billion in 2024, compared to $3.8 billion in 2023.

    Following dividend payments of $758 million and share buybacks of $1.4 billion during 2024, our net cash position amounted to $3.6 billion at December 31, 2024.

    Conference call

    Tenaris will hold a conference call to discuss the above reported results, on February 20, 2025, at 08:00 a.m. (Eastern Time). Following a brief summary, the conference call will be opened to questions.

    To listen to the conference please join through one of the following options:
    ir.tenaris.com/events-and-presentations or
    https://edge.media-server.com/mmc/p/p836i5mj 

    If you wish to participate in the Q&A session please register at the following link:

    https://register.vevent.com/register/BIb7ae4609ff564d95a338d90813a3c8cc 

    Please connect 10 minutes before the scheduled start time.

    A replay of the conference call will also be available on our webpage at: ir.tenaris.com/events-and-presentations

    Some of the statements contained in this press release are “forward-looking statements”. Forward-looking statements are based on management’s current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to future oil and gas prices and their impact on investment programs by oil and gas companies.

    Consolidated Income Statement

    (all amounts in thousands of U.S. dollars) Three-month period ended
    December 31,    		 Twelve-month period ended
    December 31,
      2024 2023 2024 2023
             
    Net sales 2,845,226 3,414,930 12,523,934 14,868,860
    Cost of sales (1,922,263) (2,120,591) (8,135,489) (8,668,915)
    Gross profit 922,963 1,294,339 4,388,445 6,199,945
    Selling, general and administrative expenses (445,988) (470,542) (1,904,828) (1,919,307)
    Other operating income 18,483 1,468 60,650 53,043
    Other operating expenses 62,919 (6,302) (125,418) (17,273)
    Operating income 558,377 818,963 2,418,849 4,316,408
    Finance income 51,331 63,621 242,319 213,474
    Finance cost (8,928) (19,759) (61,212) (106,862)
    Other financial results 5,777 49,249 (52,051) 114,365
    Income before equity in earnings of non-consolidated companies and income tax 606,557 912,074 2,547,905 4,537,385
    Equity in earnings of non-consolidated companies 35,283 56,859 8,548 95,404
    Income before income tax 641,840 968,933 2,556,453 4,632,789
    Income tax (122,709) 176,848 (479,680) (674,956)
    Income for the period 519,131 1,145,781 2,076,773 3,957,833
             
    Attributable to:        
    Shareholders’ equity 516,213 1,129,098 2,036,445 3,918,065
    Non-controlling interests 2,918 16,683 40,328 39,768
      519,131 1,145,781 2,076,773 3,957,833
             

    Consolidated Statement of Financial Position

    (all amounts in thousands of U.S. dollars) At December 31, 2024   At December 31, 2023
             
    ASSETS          
    Non-current assets          
    Property, plant and equipment, net 6,121,471     6,078,179  
    Intangible assets, net 1,357,749     1,377,110  
    Right-of-use assets, net 148,868     132,138  
    Investments in non-consolidated companies 1,543,657     1,608,804  
    Other investments 1,005,300     405,631  
    Deferred tax assets 831,298     789,615  
    Receivables, net 205,602 11,213,945   185,959 10,577,436
    Current assets          
    Inventories, net 3,709,942     3,921,097  
    Receivables and prepayments, net 179,614     181,368  
    Current tax assets 332,621     256,401  
    Contract assets 50,757     47,451  
    Trade receivables, net 1,907,507     2,480,889  
    Derivative financial instruments 7,484     9,801  
    Other investments 2,372,999     1,969,631  
    Cash and cash equivalents 675,256 9,236,180   1,637,821 10,504,459
    Total assets   20,450,125     21,081,895
    EQUITY          
    Shareholders’ equity   16,593,257     16,842,972
    Non-controlling interests   220,578     187,465
    Total equity   16,813,835     17,030,437
    LIABILITIES          
    Non-current liabilities          
    Borrowings 11,399     48,304  
    Lease liabilities 100,436     96,598  
    Derivative financial instruments –     255  
    Deferred tax liabilities 503,941     631,605  
    Other liabilities 301,751     271,268  
    Provisions 82,106 999,633   101,453 1,149,483
    Current liabilities          
    Borrowings 425,999     535,133  
    Lease liabilities 44,490     37,835  
    Derivative financial instruments 8,300     10,895  
    Current tax liabilities 366,292     488,277  
    Other liabilities 585,775     422,645  
    Provisions 119,344     35,959  
    Customer advances 206,196     263,664  
    Trade payables 880,261 2,636,657   1,107,567 2,901,975
    Total liabilities   3,636,290     4,051,458
    Total equity and liabilities   20,450,125     21,081,895
               

    Consolidated Statement of Cash Flows

      Three-month period ended
    December 31,    		 Twelve-month period ended
    December 31,
    (all amounts in thousands of U.S. dollars) 2024 2023 2024 2023
             
    Cash flows from operating activities        
    Income for the period 519,131 1,145,781 2,076,773 3,957,833
    Adjustments for:        
    Depreciation and amortization 167,781 156,347 632,854 548,510
    Bargain purchase gain – – (2,211) (3,162)
    Income tax accruals less payments (160) (277,559) (222,510) (143,391)
    Equity in earnings of non-consolidated companies (35,283) (56,859) (8,548) (95,404)
    Interest accruals less payments, net 7,246 (8,554) (1,067) (53,480)
    Provision for the ongoing litigation related to the acquisition of participation in Usiminas (87,975) – 89,371 –
    Changes in provisions (19,808) (651) (25,155) 21,284
    Reclassification of currency translation adjustment reserve – (878) – (878)
    Changes in working capital (36,604) (65,697) 286,917 182,428
    Others, including net foreign exchange differences (22,100) (56,195) 39,794 (18,667)
    Net cash provided by operating activities 492,228 835,735 2,866,218 4,395,073
             
    Cash flows from investing activities        
    Capital expenditures (181,870) (166,820) (693,956) (619,445)
    Changes in advance to suppliers of property, plant and equipment 5,092 834 (10,391) 1,736
    Acquisition of subsidiaries, net of cash acquired – (161,238) 31,446 (265,657)
    Other investments at fair value – (1,126) – (1,126)
    Additions to associated companies – – – (22,661)
    Loan to joint ventures (1,414) (1,092) (5,551) (3,754)
    Proceeds from disposal of property, plant and equipment and intangible assets 9,646 3,858 28,963 12,881
    Dividends received from non-consolidated companies 20,674 25,268 73,810 68,781
    Changes in investments in securities 458,407 740,153 (821,478) (1,857,272)
    Net cash provided by (used in) investing activities 310,535 439,837 (1,397,157) (2,686,517)
             
    Cash flows from financing activities        
    Dividends paid (299,230) (235,128) (757,786) (636,511)
    Dividends paid to non-controlling interest in subsidiaries – – (5,862) (18,967)
    Changes in non-controlling interests 28 – 1,143 3,772
    Acquisition of treasury shares (454,462) (213,739) (1,439,589) (213,739)
    Payments of lease liabilities (17,248) (15,524) (68,574) (51,492)
    Proceeds from borrowings 344,222 365,455 1,870,666 1,723,677
    Repayments of borrowings (382,656) (406,774) (1,999,427) (1,931,747)
    Net cash used in financing activities (809,346) (505,711) (2,399,429) (1,125,007)
             
    (Decrease) increase in cash and cash equivalents (6,583) 769,861 (930,368) 583,549
             
    Movement in cash and cash equivalents        
    At the beginning of the year 681,306 864,012 1,616,597 1,091,433
    Effect of exchange rate changes (13,925) (17,276) (25,431) (58,385)
    (Decrease) increase in cash and cash equivalents (6,583) 769,861 (930,368) 583,549
    At December 31, 660,798 1,616,597 660,798 1,616,597
             

    Exhibit I – Alternative performance measures

    Alternative performance measures should be considered in addition to, not as substitute for or superior to, other measures of financial performance prepared in accordance with IFRS.

    EBITDA, Earnings before interest, tax, depreciation and amortization.

    EBITDA provides an analysis of the operating results excluding depreciation and amortization and impairments, as they are recurring non-cash variables which can vary substantially from company to company depending on accounting policies and the accounting value of the assets. EBITDA is an approximation to pre-tax operating cash flow and reflects cash generation before working capital variation. EBITDA is widely used by investors when evaluating businesses (multiples valuation), as well as by rating agencies and creditors to evaluate the level of debt, comparing EBITDA with net debt.

    EBITDA is calculated in the following manner:

    EBITDA = Net income for the period + Income tax charges +/- Equity in Earnings (losses) of non-consolidated companies +/- Financial results + Depreciation and amortization +/- Impairment charges/(reversals).

    EBITDA is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) Three-month period ended
    December 31,    		 Twelve-month period ended
    December 31,
      2024 2023 2024 2023
    Income for the period 519,131 1,145,781 2,076,773 3,957,833
    Income tax charge / (credit) 122,709 (176,848) 479,680 674,956
    Equity in earnings of non-consolidated companies (35,283) (56,859) (8,548) (95,404)
    Financial results (48,180) (93,111) (129,056) (220,977)
    Depreciation and amortization 167,781 156,347 632,854 548,510
    EBITDA 726,158 975,310 3,051,703 4,864,918
             

    Free Cash Flow

    Free cash flow is a measure of financial performance, calculated as operating cash flow less capital expenditures. FCF represents the cash that a company is able to generate after spending the money required to maintain or expand its asset base.

    Free cash flow is calculated in the following manner:

    Free cash flow = Net cash (used in) provided by operating activities – Capital expenditures.

    Free cash flow is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) Three-month period ended
    December 31,    		 Twelve-month period ended
    December 31,
      2024 2023 2024 2023
    Net cash provided by operating activities 492,228 835,735 2,866,218 4,395,073
    Capital expenditures (181,870) (166,820) (693,956) (619,445)
    Free cash flow 310,358 668,915 2,172,262 3,775,628
             

    Net Cash / (Debt)

    This is the net balance of cash and cash equivalents, other current investments and fixed income investments held to maturity less total borrowings. It provides a summary of the financial solvency and liquidity of the company. Net cash / (debt) is widely used by investors and rating agencies and creditors to assess the company’s leverage, financial strength, flexibility and risks.

    Net cash/ debt is calculated in the following manner:

    Net cash = Cash and cash equivalents + Other investments (Current and Non-Current)+/- Derivatives hedging borrowings and investments – Borrowings (Current and Non-Current).

    Net cash/debt is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) At December 31,
      2024 2023
    Cash and cash equivalents 675,256 1,637,821
    Other current investments 2,372,999 1,969,631
    Non-current investments 998,251 398,220
    Current borrowings (425,999) (535,133)
    Non-current borrowings (11,399) (48,304)
    Net cash / (debt) 3,609,108 3,422,235
         

    Operating working capital days

    Operating working capital is the difference between the main operating components of current assets and current liabilities. Operating working capital is a measure of a company’s operational efficiency, and short-term financial health.

    Operating working capital days is calculated in the following manner:

    Operating working capital days = [(Inventories + Trade receivables – Trade payables – Customer advances) / Annualized quarterly sales ] x 365.

    Operating working capital days is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) Three-month period ended December 31,
      2024 2023
    Inventories 3,709,942 3,921,097
    Trade receivables 1,907,507 2,480,889
    Customer advances (206,196) (263,664)
    Trade payables (880,261) (1,107,567)
    Operating working capital 4,530,992 5,030,755
    Annualized quarterly sales 11,380,904 13,659,720
    Operating working capital 145 134
         

    Giovanni Sardagna        
    Tenaris
    1-888-300-5432
    www.tenaris.com

    The MIL Network –

  • MIL-OSI: Ansys Announces Q4 and FY 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    / Q4 2024 Results

    • Revenue of $882.2 million
    • GAAP diluted earnings per share of $3.21 and non-GAAP diluted earnings per share of $4.44
    • GAAP operating profit margin of 40.3% and non-GAAP operating profit margin of 53.3%
    • Operating cash flows of $258.0 million and unlevered operating cash flows of $266.8 million
    • Annual contract value (ACV) of $1,094.6 million

    /FY 2024 Results

    • Revenue of $2,544.8 million
    • GAAP diluted earnings per share of $6.55 and non-GAAP diluted earnings per share of $10.91
    • GAAP operating profit margin of 28.2% and non-GAAP operating profit margin of 45.7%
    • Operating cash flows of $795.7 million and unlevered operating cash flows of $834.6 million
    • ACV of $2,563.0 million
    • Deferred revenue and backlog of $1,718.3 million on December 31, 2024

    PITTSBURGH, Feb. 19, 2025 (GLOBE NEWSWIRE) — ANSYS, Inc. (NASDAQ: ANSS), today reported fourth quarter 2024 revenue of $882.2 million, an increase of 10% in reported currency, or 11% in constant currency, when compared to the fourth quarter of 2023. For FY 2024, revenue growth was 12% in reported currency, or 13% in constant currency, when compared to FY 2023. For the fourth quarter of 2024, the Company reported diluted earnings per share of $3.21 and $4.44 on a GAAP and non-GAAP basis, respectively, compared to $3.14 and $3.94 on a GAAP and non-GAAP basis, respectively, for the fourth quarter of 2023. For FY 2024, the Company reported diluted earnings per share of $6.55 and $10.91 on a GAAP and non-GAAP basis, respectively, compared to $5.73 and $8.80 on a GAAP and non-GAAP basis, respectively, for FY 2023. Additionally, the Company reported fourth quarter and FY 2024 ACV growth of 15% and 11% in reported currency, respectively, or 16% and 13% in constant currency, respectively, when compared to the fourth quarter and FY 2023. Fourth quarter 2024 ACV of $1.1 billion contributed 43% of the full year 2024 ACV while Q1, Q2 and Q3 each contributed 16%, 20% and 21%, respectively. The Company expects double-digit FY 2025 ACV growth.

    As previously announced, on January 15, 2024, Ansys entered into a definitive agreement with Synopsys, Inc. (“Synopsys”) under which Synopsys will acquire Ansys. As previously announced by Synopsys, Ansys and Synopsys have received conditional clearance from the European Commission. The U.K. Competition and Markets Authority provisionally accepted our remedies towards a transaction approval in Phase 1. The State Administration for Market Regulation of the People’s Republic of China has officially accepted our filing, and its review of the proposed transaction is in process. We continue to work with the regulators in other relevant jurisdictions to conclude their reviews. The transaction is anticipated to close in the first half of 2025, subject to the receipt of required regulatory approvals and other customary closing conditions. As previously announced, in light of the pending transaction with Synopsys, Ansys has suspended quarterly earnings conference calls and no longer provides quarterly or annual guidance.

    The non-GAAP financial results highlighted represent non-GAAP financial measures. Reconciliations of these measures to the comparable GAAP measures can be found later in this release.
     

    / Summary of Financial Results

    Ansys’ fourth quarter and fiscal year (FY) 2024 and 2023 financial results are presented below. The 2024 and 2023 non-GAAP results exclude the income statement effects of stock-based compensation, excess payroll taxes related to stock-based compensation, amortization of acquired intangible assets, expenses related to business combinations and adjustments for the income tax effect of the excluded items.

    Our results are as follows:

      GAAP
    (in thousands, except per share data and percentages) Q4 QTD
    2024    		   Q4 QTD
    2023    		   % Change   FY
    2024    		   FY
    2023    		   % Change
    Revenue $ 882,174     $ 805,108     9.6 %   $ 2,544,809     $ 2,269,949     12.1 %
    Net income $ 282,688     $ 274,762     2.9 %   $ 575,692     $ 500,412     15.0 %
    Diluted earnings per share $ 3.21     $ 3.14     2.2 %   $ 6.55     $ 5.73     14.3 %
    Gross margin   91.8 %     91.3 %         89.0 %     88.0 %    
    Operating profit margin   40.3 %     41.4 %         28.2 %     27.6 %    
    Effective tax rate   21.3 %     15.4 %         19.8 %     15.5 %    
                                           
      Non-GAAP
    (in thousands, except per share data and percentages) Q4 QTD
    2024    		   Q4 QTD
    2023    		   % Change   FY
    2024    		   FY
    2023    		   % Change
    Net income $ 391,044     $ 345,317     13.2 %   $ 959,252     $ 769,308     24.7 %
    Diluted earnings per share $ 4.44     $ 3.94     12.7 %   $ 10.91     $ 8.80     24.0 %
    Gross margin   94.6 %     94.3 %         93.1 %     92.2 %    
    Operating profit margin   53.3 %     53.0 %         45.7 %     42.6 %    
    Effective tax rate   17.5 %     17.5 %         17.5 %     17.5 %    
                                           
      Other Metrics
    (in thousands, except percentages) Q4 QTD
    2024    		   Q4 QTD
    2023    		   % Change   FY
    2024    		   FY
    2023    		   % Change
    ACV $   1,094,552   $   955,161   14.6 %   $ 2,563,029   $ 2,300,466   11.4 %
    Operating cash flows $   257,973   $   232,722   10.9 %   $    795,740   $    717,122   11.0 %
    Unlevered operating cash flows $   266,777   $   242,848   9.9 %   $    834,582   $    755,129   10.5 %
                                       

    / Key Long-Term Metrics

    The Company’s long-term outlook covering the years 2022 through 2025 provided at the 2022 Investor Update has been suspended given the pending transaction with Synopsys. Below is a summary of key metrics covering the years 2022 through 2024.

    • Consistent double-digit ACV growth with a 2022 through 2024 CAGR of 12.3% at actual exchange rates and 13.0% at 2022 exchange rates.
    • Unlevered operating cash flows grew faster than ACV with a 2022 through 2024 CAGR of 13.5%.
    • With FY 2024 unlevered operating cash flows of $834.6 million, cumulative 3-year unlevered operating cash flows (FY 2022 to 2024) are $2.2 billion.
    • Note: 2024 unlevered operating cash flows includes $28.2 million of cash outflows primarily associated with the pending transaction with Synopsys.
    Supplemental Financial Information

    / Annual Contract Value

    (in thousands, except percentages) Q4 QTD
    2024    		   Q4 QTD 2024 in Constant Currency   Q4 QTD
    2023    		   % Change   % Change in
    Constant Currency
    ACV $    1,094,552   $      1,110,711   $        955,161   14.6 %   16.3 %
                       
    (in thousands, except percentages) FY
    2024    		   FY 2024 in
    Constant Currency    		   FY
    2023    		   % Change   % Change in
    Constant Currency
    ACV $    2,563,029   $      2,593,819   $    2,300,466   11.4 %   12.8 %
                                 

    *Subscription lease ACV includes the bundled arrangement of time-based licenses with related maintenance.
    **Perpetual and service ACV includes perpetual licenses, with related maintenance, and services.

    Recurring ACV includes both subscription lease ACV and all maintenance ACV (including maintenance from perpetual licenses). It excludes perpetual license ACV and service ACV.

      

    / Revenue

    (in thousands, except percentages) Q4 QTD
    2024    		   Q4 QTD 2024 in Constant Currency   Q4 QTD
    2023    		   % Change   % Change in
    Constant Currency
    Revenue $        882,174   $         893,996   $        805,108   9.6 %   11.0 %
                       
    (in thousands, except percentages) FY
    2024    		   FY 2024 in
    Constant Currency    		   FY
    2023    		   % Change   % Change in
    Constant Currency
    Revenue $    2,544,809   $     2,570,207   $    2,269,949   12.1 %   13.2 %
                                 
    REVENUE BY LICENSE TYPE
                           
    (in thousands, except percentages) Q4 QTD
    2024    		   % of Total   Q4 QTD
    2023    		   % of Total   % Change   % Change in Constant Currency
    Subscription Lease $        441,120   50.0 %   $        399,556   49.6 %   10.4 %   12.1 %
    Perpetual            102,295   11.6 %              102,721   12.8 %   (0.4)%   1.7 %
    Maintenance1            319,381   36.2 %              283,130   35.2 %   12.8 %   13.8 %
    Service              19,378   2.2 %                19,701   2.4 %   (1.6)%   (1.2)%
    Total $        882,174       $        805,108       9.6 %   11.0 %
                           
                           
    (in thousands, except percentages) FY
    2024    		   % of Total   FY
    2023    		   % of Total   % Change   % Change in Constant Currency
    Subscription Lease $        948,831   37.3 %   $        786,050   34.6 %   20.7 %   22.1 %
    Perpetual            315,085   12.4 %              302,698   13.3 %   4.1 %   5.1 %
    Maintenance1         1,209,217   47.5 %           1,103,523   48.6 %   9.6 %   10.6 %
    Service              71,676   2.8 %                77,678   3.4 %   (7.7)%   (7.4)%
    Total $    2,544,809       $    2,269,949       12.1 %   13.2 %
                                   

    1Maintenance revenue is inclusive of both maintenance associated with perpetual licenses and the maintenance component of subscription leases.

    REVENUE BY GEOGRAPHY
                           
    (in thousands, except percentages) Q4 QTD
    2024    		   % of Total   Q4 QTD
    2023    		   % of Total   % Change   % Change in Constant Currency
    Americas $        457,752   51.9 %   $        410,681   51.0 %   11.5 %   11.5 %
                           
    Germany              98,527   11.2 %                81,828   10.2 %   20.4 %   24.2 %
    Other EMEA            170,541   19.3 %              155,023   19.3 %   10.0 %   12.2 %
    EMEA            269,068   30.5 %              236,851   29.4 %   13.6 %   16.3 %
                           
    Japan              52,294   5.9 %                61,243   7.6 %   (14.6)%   (11.1)%
    Other Asia-Pacific            103,060   11.7 %                96,333   12.0 %   7.0 %   10.1 %
    Asia-Pacific            155,354   17.6 %              157,576   19.6 %   (1.4)%   1.8 %
                           
    Total $        882,174       $        805,108       9.6 %   11.0 %
                           
                           
    (in thousands, except percentages) FY
    2024    		   % of Total   FY
    2023    		   % of Total   % Change   % Change in Constant Currency
    Americas $    1,297,367   51.0 %   $    1,106,242   48.7 %   17.3 %   17.3 %
                           
    Germany            209,714   8.2 %              199,068   8.8 %   5.3 %   6.6 %
    Other EMEA            445,791   17.5 %              406,719   17.9 %   9.6 %   9.8 %
    EMEA            655,505   25.8 %              605,787   26.7 %   8.2 %   8.8 %
                           
    Japan            184,547   7.3 %              203,013   8.9 %   (9.1)%   (2.1)%
    Other Asia-Pacific            407,390   16.0 %              354,907   15.6 %   14.8 %   16.9 %
    Asia-Pacific            591,937   23.3 %              557,920   24.6 %   6.1 %   10.0 %
                           
    Total $    2,544,809       $    2,269,949       12.1 %   13.2 %
                                   
    REVENUE BY CHANNEL
                   
      Q4 QTD
    2024    		   Q4 QTD
    2023    		   FY
    2024    		   FY
    2023
    Direct revenue, as a percentage of total revenue 79.7 %   74.5 %   75.2 %   73.9 %
    Indirect revenue, as a percentage of total revenue 20.3 %   25.5 %   24.8 %   26.1 %
                           

    / Deferred Revenue and Backlog

    (in thousands) December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Current Deferred Revenue $            504,527   $            427,188   $            457,514   $            349,668
    Current Backlog                524,617                  475,604                  439,879                  424,547
    Total Current Deferred Revenue and Backlog            1,029,144                  902,792                  897,393                  774,215
                   
    Long-Term Deferred Revenue                  31,778                    24,150                    22,240                    20,765
    Long-Term Backlog                657,345                  536,855                  552,951                  410,697
    Total Long-Term Deferred Revenue and Backlog                689,123                  561,005                  575,191                  431,462
                   
    Total Deferred Revenue and Backlog $        1,718,267   $        1,463,797   $        1,472,584   $        1,205,677
                           

    / Currency

    The fourth quarter and FY 2024 revenue, operating income, ACV and deferred revenue and backlog, as compared to the fourth quarter and FY 2023, were impacted by fluctuations in the exchange rates of foreign currencies against the U.S. Dollar. The currency fluctuation impacts on revenue, GAAP and non-GAAP operating income, ACV, and deferred revenue and backlog based on 2023 exchange rates are reflected in the tables below. Amounts in brackets indicate an adverse impact from currency fluctuations.

    (in thousands) Q4 QTD
    2024    		   FY
    2024
    Revenue $       (11,822 )   $       (25,398 )
    GAAP operating income $          (9,057 )   $       (19,588 )
    Non-GAAP operating income $          (9,076 )   $       (19,335 )
    ACV $       (16,159 )   $       (30,790 )
    Deferred revenue and backlog $       (38,306 )   $       (40,993 )
                   

    The most meaningful currency impacts are typically attributable to U.S. Dollar exchange rate changes against the Euro and Japanese Yen. Historical exchange rates are reflected in the charts below.

      Period-End Exchange Rates
    As of EUR/USD   USD/JPY
    December 31, 2024                    1.04                       157
    December 31, 2023                    1.10                       141
    December 31, 2022                    1.07                       131
           
      Average Exchange Rates
    Three Months Ended EUR/USD   USD/JPY
    December 31, 2024                    1.07                       153
    December 31, 2023                    1.08                       148
           
      Average Exchange Rates
    Twelve Months Ended EUR/USD   USD/JPY
    December 31, 2024                    1.08                       151
    December 31, 2023                    1.08                       140
           

    / GAAP Financial Statements

    ANSYS, INC. AND SUBSIDIARIES
    Condensed Consolidated Balance Sheets
    (Unaudited)
    (in thousands) December 31, 2024   December 31, 2023
    ASSETS:      
    Cash & short-term investments $                      1,497,517   $                          860,390
    Accounts receivable, net                          1,022,850                                864,526
    Goodwill                          3,778,128                             3,805,874
    Other intangibles, net                              716,244                                835,417
    Other assets                          1,036,692                                956,668
    Total assets $                      8,051,431   $                      7,322,875
    LIABILITIES & STOCKHOLDERS’ EQUITY:      
    Current deferred revenue $                          504,527   $                          457,514
    Long-term debt                              754,208                                753,891
    Other liabilities                              706,256                                721,106
    Stockholders’ equity                          6,086,440                             5,390,364
    Total liabilities & stockholders’ equity $                      8,051,431   $                      7,322,875
               
    ANSYS, INC. AND SUBSIDIARIES
    Condensed Consolidated Statements of Income
    (Unaudited)
      Three Months Ended   Twelve Months Ended
    (in thousands, except per share data) December 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Revenue:              
    Software licenses $                   543,415     $                   502,277     $               1,263,916     $           1,088,748  
    Maintenance and service                       338,759                           302,831                        1,280,893                   1,181,201  
    Total revenue                       882,174                           805,108                        2,544,809                   2,269,949  
    Cost of sales:              
    Software licenses                         12,947                             10,909                             45,367                         40,004  
    Amortization                         21,801                             20,586                             88,560                         80,990  
    Maintenance and service                         37,940                             38,554                           145,892                       150,304  
    Total cost of sales                         72,688                             70,049                           279,819                       271,298  
    Gross profit                       809,486                           735,059                        2,264,990                   1,998,651  
    Operating expenses:              
    Selling, general and administrative                       314,009                           269,857                           995,340                       855,135  
    Research and development                       134,259                           126,288                           528,014                       494,869  
    Amortization                            5,623                                5,914                             23,748                         22,512  
    Total operating expenses                       453,891                           402,059                        1,547,102                   1,372,516  
    Operating income                       355,595                           333,000                           717,888                       626,135  
    Interest income                         14,636                                7,199                             51,131                         19,588  
    Interest expense                        (10,924 )                          (12,551 )                          (47,849 )                     (47,145 )
    Other expense, net                               (14 )                            (2,876 )                            (3,132 )                       (6,440 )
    Income before income tax provision                       359,293                           324,772                           718,038                       592,138  
    Income tax provision                         76,605                             50,010                           142,346                         91,726  
    Net income $                   282,688     $                   274,762     $                   575,692     $              500,412  
    Earnings per share – basic:              
    Earnings per share $                          3.23     $                          3.16     $                          6.59     $                     5.76  
    Weighted average shares                         87,455                             86,888                             87,313                         86,833  
    Earnings per share – diluted:              
    Earnings per share $                          3.21     $                          3.14     $                          6.55     $                     5.73  
    Weighted average shares                         88,137                             87,541                             87,895                         87,386  
                                   

    / Glossary of Terms

    Annual Contract Value (ACV): ACV is a key performance metric and is useful to investors in assessing the strength and trajectory of our business. ACV is a supplemental metric to help evaluate the annual performance of the business. Over the life of the contract, ACV equals the total value realized from a customer. ACV is not impacted by the timing of license revenue recognition. ACV is used by management in financial and operational decision-making and in setting sales targets used for compensation. ACV is not a replacement for, and should be viewed independently of, GAAP revenue and deferred revenue as ACV is a performance metric and is not intended to be combined with any of these items. There is no GAAP measure comparable to ACV. ACV is composed of the following:

    • the annualized value of maintenance and subscription lease contracts with start dates or anniversary dates during the period, plus
    • the value of perpetual license contracts with start dates during the period, plus
    • the annualized value of fixed-term services contracts with start dates or anniversary dates during the period, plus
    • the value of work performed during the period on fixed-deliverable services contracts.

    When we refer to the anniversary dates in the definition of ACV above, we are referencing the date of the beginning of the next twelve-month period in a contractually committed multi-year contract. If a contract is three years in duration, with a start date of July 1, 2024, the anniversary dates would be July 1, 2025 and July 1, 2026. We label these anniversary dates as they are contractually committed. While this contract would be up for renewal on July 1, 2027, our ACV performance metric does not assume any contract renewals.

    Example 1: For purposes of calculating ACV, a $100,000 subscription lease contract or a $100,000 maintenance contract with a term of July 1, 2024 – June 30, 2025, would each contribute $100,000 to ACV for fiscal year 2024 with no contribution to ACV for fiscal year 2025.

    Example 2: For purposes of calculating ACV, a $300,000 subscription lease contract or a $300,000 maintenance contract with a term of July 1, 2024 – June 30, 2027, would each contribute $100,000 to ACV in each of fiscal years 2024, 2025 and 2026. There would be no contribution to ACV for fiscal year 2027 as each period captures the full annual value upon the anniversary date.

    Example 3: A perpetual license valued at $200,000 with a contract start date of March 1, 2024 would contribute $200,000 to ACV in fiscal year 2024.

    Backlog: Deferred revenue associated with installment billings for periods beyond the current quarterly billing cycle and committed contracts with start dates beyond the end of the current period.

    Deferred Revenue: Billings made or payments received in advance of revenue recognition.

    Subscription Lease or Time-Based License: A license of a stated product of our software that is granted to a customer for use over a specified time period, which can be months or years in length. In addition to the use of the software, the customer is provided with access to maintenance (unspecified version upgrades and technical support) without additional charge. The revenue related to these contracts is recognized ratably over the contract period for the maintenance portion and up front for the license portion.

    Perpetual / Paid-Up License: A license of a stated product and version of our software that is granted to a customer for use in perpetuity. The revenue related to this type of license is recognized up front.

    Maintenance: A contract, typically one year in duration, that is purchased by the owner of a perpetual license and that provides access to unspecified version upgrades and technical support during the duration of the contract. The revenue from these contracts is recognized ratably over the contract period.

    / Reconciliations of GAAP to Non-GAAP Measures (Unaudited)

      Three Months Ended
      December 31, 2024
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $      809,486   91.8 %   $      355,595   40.3 %   $    282,688     $        3.21  
    Stock-based compensation expense               3,635   0.4 %              73,016   8.2 %             73,016                 0.83  
    Excess payroll taxes related to stock-based awards                     39   — %                1,272   0.2 %               1,272                 0.01  
    Amortization of intangible assets from acquisitions             21,801   2.4 %              27,424   3.1 %             27,424                 0.31  
    Expenses related to business combinations                     —   — %              12,988   1.5 %             12,988                 0.15  
    Adjustment for income tax effect                     —   — %                      —   — %             (6,344 )             (0.07 )
    Total non-GAAP $      834,961   94.6 %   $      470,295   53.3 %   $    391,044     $        4.44  
                                           

    1 Diluted weighted average shares were 88,137.

      Three Months Ended
      December 31, 2023
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $      735,059   91.3 %   $     333,000   41.4 %   $    274,762     $        3.14  
    Stock-based compensation expense               3,413   0.4 %              63,358   7.9 %             63,358                 0.73  
    Excess payroll taxes related to stock-based awards                       4   — %                   271   — %                  271                    —  
    Amortization of intangible assets from acquisitions             20,586   2.6 %              26,500   3.3 %             26,500                 0.30  
    Expenses related to business combinations                     —   — %                3,664   0.4 %               3,664                 0.04  
    Adjustment for income tax effect                     —   — %                      —   — %           (23,238 )             (0.27 )
    Total non-GAAP $      759,062   94.3 %   $     426,793   53.0 %   $    345,317     $        3.94  
                                           

    1 Diluted weighted average shares were 87,541.

      Twelve Months Ended
      December 31, 2024
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $   2,264,990   89.0 %   $     717,888   28.2 %   $    575,692     $        6.55  
    Stock-based compensation expense             14,313   0.6 %           270,900   10.7 %           270,900                 3.08  
    Excess payroll taxes related to stock-based awards                  506   — %                8,643   0.3 %               8,643                 0.10  
    Amortization of intangible assets from acquisitions             88,560   3.5 %           112,308   4.4 %           112,308                 1.28  
    Expenses related to business combinations                     —   — %             52,841   2.1 %             52,841                 0.60  
    Adjustment for income tax effect                     —   — %                      —   — %           (61,132 )             (0.70 )
    Total non-GAAP $   2,368,369   93.1 %   $ 1,162,580   45.7 %   $    959,252     $      10.91  
                                           

    1 Diluted weighted average shares were 87,895.

      Twelve Months Ended
      December 31, 2023
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $   1,998,651   88.0 %   $     626,135   27.6 %   $    500,412     $        5.73  
    Stock-based compensation expense             13,337   0.6 %           221,891   9.9 %           221,891                 2.54  
    Excess payroll taxes related to stock-based awards                  307   0.1 %                5,541   0.2 %               5,541                 0.06  
    Amortization of intangible assets from acquisitions             80,990   3.5 %           103,502   4.5 %           103,502                 1.18  
    Expenses related to business combinations                     —   — %                9,422   0.4 %               9,422                 0.11  
    Adjustment for income tax effect                     —   — %                      —   — %           (71,460 )             (0.82 )
    Total non-GAAP $   2,093,285   92.2 %   $     966,491   42.6 %   $    769,308     $        8.80  
                                           

    1 Diluted weighted average shares were 87,386.

      Three Months Ended   Twelve Months Ended
    (in thousands) December 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023    		   December 31,
    2022
    Net cash provided by operating activities $            257,973     $            232,722     $            795,740     $            717,122     $            631,003  
    Cash paid for interest                  10,671                      12,274                      47,081                      46,069                      20,844  
    Tax benefit                   (1,867 )                     (2,148 )                     (8,239 )                     (8,062 )                     (3,752 )
    Unlevered operating cash flows $            266,777     $            242,848     $            834,582     $            755,129     $            648,095  
                                           

    / Use of Non-GAAP Measures

    We provide non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income, non-GAAP diluted earnings per share and unlevered operating cash flows as supplemental measures to GAAP regarding our operational performance. These financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. A detailed explanation of each of the adjustments to these financial measures is described below. This press release also contains a reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure, as applicable.

    We use non-GAAP financial measures (a) to evaluate our historical and prospective financial performance as well as our performance relative to our competitors, (b) to set internal sales targets and spending budgets, (c) to allocate resources, (d) to measure operational profitability and the accuracy of forecasting, (e) to assess financial discipline over operational expenditures and (f) as an important factor in determining variable compensation for management and employees. In addition, many financial analysts that follow us focus on and publish both historical results and future projections based on non-GAAP financial measures. We believe that it is in the best interest of our investors to provide this information to analysts so that they accurately report the non-GAAP financial information. Moreover, investors have historically requested, and we have historically reported, these non-GAAP financial measures as a means of providing consistent and comparable information with past reports of financial results.

    While we believe that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, are not reported by all our competitors and may not be directly comparable to similarly titled measures of our competitors due to potential differences in the exact method of calculation. We compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.

    The adjustments to these non-GAAP financial measures, and the basis for such adjustments, are outlined below:

    Amortization of intangible assets from acquisitions. We incur amortization of intangible assets, included in our GAAP presentation of amortization expense, related to various acquisitions we have made. We exclude these expenses for the purpose of calculating non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance because these costs are fixed at the time of an acquisition, are then amortized over a period of several years after the acquisition and generally cannot be changed or influenced by us after the acquisition. Accordingly, we do not consider these expenses for purposes of evaluating our performance during the applicable time period after the acquisition, and we exclude such expenses when making decisions to allocate resources. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the effectiveness of the methodology and information used by us in our financial and operational decision-making, and (b) compare our past reports of financial results as we have historically reported these non-GAAP financial measures.

    Stock-based compensation expense. We incur expense related to stock-based compensation included in our GAAP presentation of cost of maintenance and service; research and development expense; and selling, general and administrative expense. We also incur excess payroll tax expense related to stock-based compensation, which is an additional non-GAAP adjustment. Although stock-based compensation is an expense and viewed as a form of compensation, we exclude these expenses for the purpose of calculating non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance. Specifically, we exclude stock-based compensation during our annual budgeting process and our quarterly and annual assessments of our performance. The annual budgeting process is the primary mechanism whereby we allocate resources to various initiatives and operational requirements. Additionally, the annual review by our Board of Directors during which it compares our historical business model and profitability to the planned business model and profitability for the forthcoming year excludes the impact of stock-based compensation. In evaluating the performance of our senior management and department managers, charges related to stock-based compensation are excluded from expenditure and profitability results. In fact, we record stock-based compensation expense into a stand-alone cost center for which no single operational manager is responsible or accountable. In this way, we can review, on a period-to-period basis, each manager’s performance and assess financial discipline over operational expenditures without the effect of stock-based compensation. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate our operating results and the effectiveness of the methodology used by us to review our operating results, and (b) review historical comparability in our financial reporting as well as comparability with competitors’ operating results.

    Expenses related to business combinations. We incur expenses for professional services rendered in connection with acquisitions and divestitures, which are included in our GAAP presentation of selling, general and administrative expense. We also incur other expenses directly related to business combinations, including compensation expenses and concurrent restructuring activities, such as employee severances and other exit costs. These costs are included in our GAAP presentation of selling, general and administrative and research and development expenses. We exclude these acquisition-related expenses for the purpose of calculating non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance, as we generally would not have otherwise incurred these expenses in the periods presented as a part of our operations. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate our operating results and the effectiveness of the methodology used by us to review our operating results, and (b) review historical comparability in our financial reporting as well as comparability with competitors’ operating results.

    Non-GAAP tax provision. We utilize a normalized non-GAAP annual effective tax rate (AETR) to calculate non-GAAP measures. This methodology provides better consistency across interim reporting periods by eliminating the effects of non-recurring items and aligning the non-GAAP tax rate with our expected geographic earnings mix. To project this rate, we analyzed our historic and projected non-GAAP earnings mix by geography along with other factors such as our current tax structure, recurring tax credits and incentives, and expected tax positions. On an annual basis we re-evaluate and update this rate for significant items that may materially affect our projections.

    Unlevered operating cash flows. We make cash payments for the interest incurred in connection with our debt financing which are included in our GAAP presentation of operating cash flows. We exclude this cash paid for interest, net of the associated tax benefit, for the purpose of calculating unlevered operating cash flows. Unlevered operating cash flow is a supplemental non-GAAP measure that we use to evaluate our core operating business. We believe this measure is useful to investors and management because it provides a measure of our cash generated through operating activities independent of the capital structure of the business.

    Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

    We have provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures as listed below:

    GAAP Reporting Measure Non-GAAP Reporting Measure
    Gross Profit Non-GAAP Gross Profit
    Gross Profit Margin Non-GAAP Gross Profit Margin
    Operating Income Non-GAAP Operating Income
    Operating Profit Margin Non-GAAP Operating Profit Margin
    Net Income Non-GAAP Net Income
    Diluted Earnings Per Share Non-GAAP Diluted Earnings Per Share
    Operating Cash Flows Unlevered Operating Cash Flows
       

    Constant currency. In addition to the non-GAAP financial measures detailed above, we use constant currency results for financial and operational decision-making and as a means to evaluate period-to-period comparisons by excluding the effects of foreign currency fluctuations on the reported results. To present this information, the 2024 period results for entities whose functional currency is a currency other than the U.S. Dollar were converted to U.S. Dollars at rates that were in effect for the 2023 comparable period, rather than the actual exchange rates in effect for 2024. Constant currency growth rates are calculated by adjusting the 2024 period reported amounts by the 2024 currency fluctuation impacts and comparing the adjusted amounts to the 2023 comparable period reported amounts. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the effectiveness of the methodology and information used by us in our financial and operational decision-making, and (b) compare our reported results to our past reports of financial results without the effects of foreign currency fluctuations.

    / About Ansys

    Our Mission: Powering Innovation that Drives Human Advancement™

    When visionary companies need to know how their world-changing ideas will perform, they close the gap between design and reality with Ansys simulation. For more than 50 years, Ansys software has enabled innovators across industries to push boundaries by using the predictive power of simulation. From sustainable transportation to advanced semiconductors, from satellite systems to life-saving medical devices, the next great leaps in human advancement will be powered by Ansys.

    / Forward-Looking Information

    This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements are statements that provide current expectations or forecasts of future events based on certain assumptions. Forward-looking statements are subject to risks, uncertainties, and factors relating to our business which could cause our actual results to differ materially from the expectations expressed in or implied by such forward-looking statements.

    Forward-looking statements use words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “outlook,” “plan,” “predict,” “project,” “should,” “target,” or other words of similar meaning. Forward-looking statements include those about market opportunity, including our total addressable market, the proposed transaction with Synopsys, including the expected date of closing and the potential benefits thereof, and other aspects of future operations. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

    The risks associated with the following, among others, could cause actual results to differ materially from those described in any forward-looking statements:

    • our ability to complete the proposed transaction with Synopsys on anticipated terms and timing, including completing the associated divestiture of our PowerArtist RTL business and obtaining regulatory approvals, and other conditions related to the completion of the transaction with Synopsys;
       
    • the realization of the anticipated benefits of the proposed transaction with Synopsys, including potential disruptions to our and Synopsys’ businesses and commercial relationships with others resulting from the announcement, pendency, or completion of the proposed transaction and uncertainty as to the long-term value of Synopsys’ common stock;
       
    • restrictions on our operations during the pendency of the proposed transaction with Synopsys that could impact our ability to pursue certain business opportunities or strategic transactions, including tuck-in M&A;
       
    • adverse conditions in the macroeconomic environment, including inflation, recessionary conditions and volatility in equity and foreign exchange markets;
       
    • political, economic and regulatory uncertainties in the countries and regions in which we operate;
       
    • impacts from tariffs, trade sanctions, export controls or other trade barriers, including export control restrictions and licensing requirements for exports to China;
       
    • impacts resulting from the conflict between Israel and Hamas and other countries and groups in the Middle East, including impacts from changes to diplomatic relations and trade policy between the United States and other countries resulting from the conflict;
       
    • impacts from changes to diplomatic relations and trade policy between the United States and Russia or between the United States and other countries that may support Russia or take similar actions due to the conflict between Russia and Ukraine;
       
    • constrained credit and liquidity due to disruptions in the global economy and financial markets, which may limit or delay availability of credit under our existing or new credit facilities, or which may limit our ability to obtain credit or financing on acceptable terms or at all;
       
    • our ability to timely recruit and retain key personnel in a highly competitive labor market, including potential financial impacts of wage inflation and potential impacts due to the proposed transaction with Synopsys;
       
    • our ability to protect our proprietary technology; cybersecurity threats or other security breaches, including in relation to breaches occurring through our products and an increased level of our activity that is occurring from remote global off-site locations; and disclosure or misuse of employee or customer data whether as a result of a cybersecurity incident or otherwise;
       
    • volatility in our revenue due to the timing, duration and value of multi-year subscription lease contracts; and our reliance on high renewal rates for annual subscription lease and maintenance contracts;
       
    • declines in our customers’ businesses resulting in adverse changes in procurement patterns; disruptions in accounts receivable and cash flow due to customers’ liquidity challenges and commercial deterioration; uncertainties regarding demand for our products and services in the future and our customers’ acceptance of new products; delays or declines in anticipated sales due to reduced or altered sales and marketing interactions with customers; and potential variations in our sales forecast compared to actual sales;
       
    • our ability and our channel partners’ ability to comply with laws and regulations in relevant jurisdictions; and the outcome of contingencies, including legal proceedings, government or regulatory investigations and tax audit cases;
       
    • uncertainty regarding income tax estimates in the jurisdictions in which we operate; and the effect of changes in tax laws and regulations in the jurisdictions in which we operate;
       
    • the quality of our products, including the strength of features, functionality and integrated multiphysics capabilities; our ability to develop and market new products to address the industry’s rapidly changing technology, including the use of artificial intelligence and machine learning in our products as well as the products of our competitors; failures or errors in our products and services; and increased pricing pressure as a result of the competitive environment in which we operate;
       
    • investments in complementary companies, products, services and technologies; our ability to complete and successfully integrate our acquisitions and realize the financial and business benefits of such transactions; and the impact indebtedness incurred in connection with any acquisition could have on our operations;
       
    • investments in global sales and marketing organizations and global business infrastructure, and dependence on our channel partners for the distribution of our products;
       
    • current and potential future impacts of any global health crisis, natural disaster or catastrophe; the actions taken to address these events by our customers, our suppliers, and regulatory authorities; the resulting effects on our business, the global economy and our consolidated financial statements; and other public health and safety risks and related government actions or mandates;
       
    • operational disruptions generally or specifically in connection with transitions to and from remote work environments; and the failure of our technological infrastructure or those of the service providers upon whom we rely including for infrastructure and cloud services;
       
    • our intention to repatriate previously taxed earnings and to reinvest all other earnings of our non-U.S. subsidiaries;
       
    • plans for future capital spending; the extent of corporate benefits from such spending including with respect to customer relationship management; and higher than anticipated costs for research and development or a slowdown in our research and development activities;
       
    • our ability to execute on our strategies related to environmental, social, and governance matters, and meet evolving and varied expectations, including as a result of evolving regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs and the availability of requisite financing, and changes in carbon markets; and
       
    • other risks and uncertainties described in our reports filed from time to time with the Securities and Exchange Commission (the SEC).  

    Ansys and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.

    Visit https://investors.ansys.com for more information.

    ANSS-F

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    This press release was published by a CLEAR® Verified individual.

    The MIL Network –

  • MIL-OSI: Vital Energy Reports Fourth-Quarter and Full-Year 2024 Financial and Operating Results

    Source: GlobeNewswire (MIL-OSI)

    Reports record total and oil production for 4Q-24 and FY-24

    Updates development inventory to >11 years of oil-weighted locations

    TULSA, OK, Feb. 19, 2025 (GLOBE NEWSWIRE) — Vital Energy, Inc. (NYSE: VTLE) (“Vital Energy” or the “Company”) today reported fourth-quarter and full-year 2024 financial and operating results and provided its 2025 outlook. Supplemental slides have been posted to the Company’s website and can be found at www.vitalenergy.com. A conference call to discuss results is planned for 7:30 a.m. CT, Thursday, February 20, 2025. A webcast will be available on the Company’s website.

    Fourth-Quarter 2024 Highlights

    • Successfully integrated Point Energy assets; acquired production exceeding expectations and operating cost reductions in-line with expectations
    • Reported a net loss of $359.4 million, Adjusted Net Income1 of $86.5 million and cash flows from operating activities of $257.2 million
    • Generated Consolidated EBITDAX1 of $383.5 million and Adjusted Free Cash Flow1 of $110.8 million
    • Produced Company-record 147.8 thousand barrels of oil equivalent per day (“MBOE/d”) and oil production of 69.8 thousand barrels of oil per day (“MBO/d”)
    • Reported lease operating expense (“LOE”) of $8.89 per BOE, below guidance of $9.35 per BOE
    • Reported capital investments of $226.1 million, excluding non-budgeted acquisitions and leasehold expenditures

    Full-Year 2024 Highlights

    • Increased oil-weighted inventory to ~925 locations, ~400 of which breakeven below $50 per barrel WTI
    • Issued an aggregate $1 billion of senior unsecured notes due 2032 at 7.875% and utilized the proceeds to repurchase higher coupon notes, resulting in annualized interest expense savings of $11 million
    • Reported a net loss of $173.5 million, Adjusted Net Income1 of $270.0 million and cash flows from operating activities of $1.0 billion
    • Generated Consolidated EBITDAX1 of $1.3 billion and Adjusted Free Cash Flow1 of $232.8 million
    • Reported year-end 2024 proved reserves of 455.3 million BOE, an increase of 12% versus prior year

    1Non-GAAP financial measure; please see supplemental reconciliations of GAAP to non-GAAP financial measures at the end of this release. 

    “We strengthened our business in 2024 through enhanced scale, optimized assets and a lengthened runway of high-quality inventory,” said Jason Pigott, President and Chief Executive Officer. “We successfully integrated our largest ever asset purchase in the Delaware Basin and early results positively impacted our operating and financial performance. Vital Energy continues to show that our talented people can capture important synergies from acquisitions while expanding inventory.”

    “In 2025, our primary goals are reducing costs, maximizing Adjusted Free Cash Flow generation, absolute debt reduction, and extending and enhancing our existing inventory,” continued Pigott. “Our inventory provides us with ample high-return development opportunities and a strong outlook for Adjusted Free Cash Flow generation. Recent operational achievements, like horseshoe wells, are creating new efficiencies and allowing us to develop highly productive, stranded leasehold. We will continue to focus on optimizing our asset base to achieve our cash flow and debt repayment targets.”

    Fourth-Quarter 2024 Financial and Operations Summary
    Financial Results. The Company reported a net loss of $359.4 million, or $(9.59) per diluted share, which included a non-cash pre-tax impairment loss on oil and gas properties of $481.3 million, and Adjusted Net Income of $86.5 million, or $2.30 per adjusted diluted share. Cash flows from operating activities were $257.2 million and Consolidated EBITDAX was $383.5 million.

    Production. Vital Energy’s total and oil production exceeded the high end of guidance, averaging 147,819 BOE/d and 69,827 BO/d, respectively. Volumes were driven by better-than-expected production from the Point Energy assets.

    Capital Investments. Total capital investments, excluding non-budgeted acquisitions and leasehold expenditures, were $226 million, including approximately $17 million of additional drilling and completions investments related to increased working interest and carried interest and $5 million from acceleration of activity into the fourth quarter.

    Investments included $190 million for drilling and completions, $22 million in infrastructure investments, $8 million in other capitalized costs and $6 million in land, exploration and data-related costs.

    Operating Expenses. LOE during the period was $8.89 per BOE, below guidance of $9.35 per BOE, as the Company integrated its Point Energy assets. Lower expenses were primarily related to reduced workover activity on the Point Energy assets during integration.

    General and Administrative Expenses. General and administrative expenses totaled $1.95 per BOE for fourth-quarter 2024, in line with guidance. General and administrative expenses, excluding long-term incentive plan (“LTIP”) and transaction expenses were $1.71 per BOE. Cash LTIP expenses were $0.02 per BOE and reflected the decrease in Vital Energy’s common stock price during the third quarter. Non-cash LTIP expenses were $0.22 per BOE.

    Liquidity. At December 31, 2024, the Company had $880 million drawn on its $1.5 billion senior secured credit facility and cash and cash equivalents of $40 million.

    2025 Outlook

    Vital Energy’s 2025 development plan is designed to maximize cash flow to facilitate debt repayment, supported by its robust hedge position. In comparison to the Company’s earlier projections, the finalized 2025 outlook has lower capital investment levels and slightly lower oil production. In 2025, the Company expects to generate approximately $330 million of Adjusted Free Cash Flow at $70 per barrel WTI.

    Capital Investments. Vital Energy plans to invest $825 – $925 million in 2025, excluding non-budgeted acquisitions and leasehold expenditures. Efficiencies and lower costs are driving capital investments approximately 3% lower than earlier projections while expecting to complete approximately the same net lateral feet as in 2024.

    Production. The Company expects total production of 134.0 – 140.0 MBOE/d and oil production of 62.5 – 66.5 MBO/d. Production is approximately 3% lower than earlier projections. The shortfall is related to operational delays and the underperformance of a seven-well development package in Upton County.

    Operating Expenses. The Company has made significant progress reducing operating expenses through integration of its Point Energy assets. Some workover expense was deferred from fourth-quarter 2024 into the first quarter of 2025. Average LOE for the two quarters is expected to be around $9.20 per BOE, putting the Company on pace to achieve LOE below $9.00 per BOE by the end of 2025.

    Oil-Weighted Inventory

    The Company has continued to extend and enhance its inventory of high-return development locations. At year-end 2024, Vital Energy had approximately 925 locations with an average breakeven WTI oil price of around $50 WTI. Approximately 400 of these locations breakeven below $50 per barrel WTI. Additionally, there are an additional approximately 250 locations that can be added to inventory pending successful delineation.

    2024 Proved Reserves

    Vital Energy’s total proved reserves at year-end 2024 were 455.3 MMBOE (40% oil, 70% developed). The standardized measure of discounted net cash flows was $4.22 billion and the PV-10 value was $4.51 billion utilizing SEC benchmark pricing of $75.48 per barrel WTI for oil ($76.76 per barrel average realized price) and $2.13 per MMBtu Henry Hub for natural gas ($0.85 per Mcf average realized price).

    First-Quarter 2025 Guidance

    The table below reflects the Company’s guidance for production and capital investments.

        1Q-25E
    Total production (MBOE/d)           135.0 – 141.0
    Oil production (MBO/d)           62.0 – 66.0
    Capital investments, excluding non-budgeted acquisitions ($ MM)           $230 – $260
         

    The table below reflects the Company’s guidance for select revenue and expense items.

        1Q-25E
    Average sales price realizations (excluding derivatives):    
    Oil (% of WTI)           101%
    NGL (% of WTI)           26%
    Natural gas (% of Henry Hub)           50%
         
    Net settlements received (paid) for matured commodity derivatives ($ MM):    
    Oil           $14
    NGL           ($2)
    Natural gas           $0
         
    Selected average costs & expenses:    
    Lease operating expenses ($ MM)           $115 – $120
    Production and ad valorem taxes (% of oil, NGL and natural gas sales revenues)           6.30%
    Oil transportation and marketing expenses ($ MM)           $11.5 – $12.5
    Gas gathering, processing and transportation expenses ($ MM)           $7.0 – $8.0
    General and administrative expenses (excluding LTIP and transaction expenses, $ MM)           $21.5 – $23.0
    General and administrative expenses (LTIP cash, $ MM)           $0.5 – $0.6
    General and administrative expenses (LTIP non-cash, $ MM)           $3.0 – $3.5
    Depletion, depreciation and amortization ($ MM)           $180 – $190
         

    Conference Call Details

    Vital Energy plans to host a conference call at 7:30 a.m. CT on Thursday, February 20, 2025, to discuss its fourth-quarter and full-year 2024 financial and operating results and its 2025 outlook. Supplemental slides will be posted to the Company’s website. Interested parties are invited to listen to the call via the Company’s website at www.vitalenergy.com, under the tab for “Investor Relations | News & Presentations | Upcoming Events.”

    About Vital Energy

    Vital Energy, Inc. is an independent energy company with headquarters in Tulsa, Oklahoma. Vital Energy’s business strategy is focused on the acquisition, exploration and development of oil and natural gas properties in the Permian Basin of West Texas.

    Additional information about Vital Energy may be found on its website at www.vitalenergy.com.

    Forward-Looking Statements
    This press release and any oral statements made regarding the contents of this release, including in the conference call referenced herein, contain forward-looking statements as defined under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, that address activities that Vital Energy assumes, plans, expects, believes, intends, projects, indicates, enables, transforms, estimates or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. The forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events. Such statements are not guarantees of future performance and involve risks, assumptions and uncertainties. General risks relating to Vital Energy include, but are not limited to, continuing and worsening inflationary pressures and associated changes in monetary policy that may cause costs to rise; changes in domestic and global production, supply and demand for commodities, including as a result of actions by the Organization of Petroleum Exporting Countries and other producing countries (“OPEC+”) and the Russian-Ukrainian or Israeli-Hamas military conflicts, the decline in prices of oil, natural gas liquids and natural gas and the related impact to financial statements as a result of asset impairments and revisions to reserve estimates, reduced demand due to shifting market perception towards the oil and gas industry; competition in the oil and gas industry; the ability of the Company to execute its strategies, including its ability to successfully identify and consummate strategic acquisitions at purchase prices that are accretive to its financial results and to successfully integrate acquired businesses, assets and properties and its ability to successfully execute on its strategy to enhance well productivity, including by drilling long-lateral horseshoe wells, pipeline transportation and storage constraints in the Permian Basin, the effects and duration of the outbreak of disease, and any related government policies and actions, long-term performance of wells, drilling and operating risks, the possibility of production curtailment, the impact of new laws and regulations, including those regarding the use of hydraulic fracturing, and under the Inflation Reduction Act (the “IRA”), including those related to climate change, the impact of legislation or regulatory initiatives intended to address induced seismicity on our ability to conduct our operations; uncertainties in estimating reserves and production results; hedging activities, tariffs on steel, the impacts of severe weather, including the freezing of wells and pipelines in the Permian Basin due to cold weather, technological innovations and scientific developments, physical and transition risks associated with climate change, to ESG and sustainability-related matters, risks related to our public statements with respect to such matters that may be subject to heightened scrutiny from public and governmental authorities related to the risk of potential “greenwashing,” i.e., misleading information or false claims overstating potential sustainability-related benefits, risks regarding potentially conflicting anti-ESG initiatives from certain U.S. state or other governments, possible impacts of litigation and regulations, the impact of the Company’s transactions, if any, with its securities from time to time, the impact of new environmental, health and safety requirements applicable to the Company’s business activities, the possibility of the elimination of federal income tax deductions for oil and gas exploration and development and imposition of any additional taxes under the IRA or otherwise, and other factors, including those and other risks described in its Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”), subsequent Quarterly Reports on Form 10-Q and those set forth from time to time in other filings with the Securities and Exchange Commission (“SEC”). These documents are available through Vital Energy’s website at www.vitalenergy.com under the tab “Investor Relations” or through the SEC’s Electronic Data Gathering and Analysis Retrieval System at www.sec.gov. Any of these factors could cause Vital Energy’s actual results and plans to differ materially from those in the forward-looking statements. Therefore, Vital Energy can give no assurance that its future results will be as estimated. Any forward-looking statement speaks only as of the date on which such statement is made. Vital Energy does not intend to, and disclaims any obligation to, correct, update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

    This press release and any accompanying disclosures include financial measures that are not in accordance with generally accepted accounting principles (“GAAP”), such as Adjusted Free Cash Flow, Adjusted Net Income, Net Debt and Consolidated EBITDAX. While management believes that such measures are useful for investors, they should not be used as a replacement for financial measures that are in accordance with GAAP. For a reconciliation of such non-GAAP financial measures to the nearest comparable measure in accordance with GAAP, please see the supplemental financial information at the end of this press release.

    Unless otherwise specified, references to “average sales price” refer to average sales price excluding the effects of the Company’s derivative transactions.

    All amounts, dollars and percentages presented in this press release are rounded and therefore approximate.

    Vital Energy, Inc.
    Selected operating data

        Three months ended December 31,   Year ended December 31,
          2024     2023       2024     2023
        (unaudited)   (unaudited)
    Sales volumes:                
    Oil (MBbl)             6,424     4,881       22,585     16,894
    NGL (MBbl)              3,703     2,808       13,270     9,128
    Natural gas (MMcf)             20,836     16,644       78,794     55,404
    Oil equivalent (MBOE)(1)             13,599     10,465       48,987     35,256
    Average daily oil equivalent sales volumes (BOE/d)(1)             147,819     113,747       133,845     96,591
    Average daily oil sales volumes (Bbl/d)(1)             69,827     53,070       61,708     46,284
    Average sales prices(1):                
    Oil ($/Bbl)(2)           $ 70.80   $ 79.37     $ 76.55   $ 78.64
    NGL ($/Bbl)(2)           $ 16.75   $ 14.14     $ 14.38   $ 15.00
    Natural gas ($/Mcf)(2)           $ 0.59   $ 0.90     $ 0.20   $ 1.14
    Average sales price ($/BOE)(2)           $ 38.92   $ 42.26     $ 39.51   $ 43.36
    Oil, with commodity derivatives ($/Bbl)(3)           $ 76.08   $ 77.73     $ 76.56   $ 76.99
    NGL, with commodity derivatives ($/Bbl)(3)           $ 16.75   $ 14.14     $ 14.29   $ 15.00
    Natural gas, with commodity derivatives ($/Mcf)(3)           $ 1.25   $ 1.18     $ 0.95   $ 1.34
    Average sales price, with commodity derivatives ($/BOE)(3)           $ 42.42   $ 41.94     $ 40.70   $ 42.87
    Selected average costs and expenses per BOE sold(1):                
    Lease operating expenses           $ 8.89   $ 8.33     $ 9.15   $ 7.41
    Production and ad valorem taxes             2.43     2.27       2.41     2.64
    Oil transportation and marketing expenses             0.76     0.85       0.92     1.17
    Gas gathering, processing and transportation expenses             0.42     0.16       0.36     0.06
    General and administrative (excluding LTIP and transaction expenses)             1.71     2.12       1.75     2.26
    Total selected operating expenses           $ 14.21   $ 13.73     $ 14.59   $ 13.54
    General and administrative (LTIP):                
    LTIP cash           $ 0.02   $ (0.09 )   $ 0.05   $ 0.11
    LTIP non-cash           $ 0.22   $ 0.22     $ 0.27   $ 0.28
    General and administrative (transaction expenses)           $ —   $ 0.79     $ 0.01   $ 0.32
    Depletion, depreciation and amortization           $ 15.77   $ 14.58     $ 15.15   $ 13.14

    _______________________________________________________________________________

    (1) The numbers presented are calculated based on actual amounts and may not recalculate using the rounded numbers presented in the table above.
    (2) Price reflects the average of actual sales prices received when control passes to the purchaser/customer adjusted for quality, certain transportation fees, geographical differentials, marketing bonuses or deductions and other factors affecting the price received at the delivery point.
    (3) Price reflects the after-effects of the Company’s commodity derivative transactions on its average sales prices. The Company’s calculation of such after-effects includes settlements of matured commodity derivatives during the respective periods.
       

    Vital Energy, Inc.
    Consolidated balance sheets

    (in thousands, except share data)   December 31, 2024   December 31, 2023
        (unaudited)
    Assets        
    Current assets:        
    Cash and cash equivalents           $ 40,179     $ 14,061  
    Accounts receivable, net             299,698       238,773  
    Derivatives             101,474       99,336  
    Other current assets             25,205       18,749  
    Total current assets             466,556       370,919  
    Property and equipment:        
    Oil and natural gas properties, full cost method:        
    Evaluated properties             13,587,040       11,799,155  
    Unevaluated properties not being depleted             242,792       195,457  
    Less: accumulated depletion and impairment             (8,966,200 )     (7,764,697 )
    Oil and natural gas properties, net             4,863,632       4,229,915  
    Midstream and other fixed assets, net             134,265       130,293  
    Property and equipment, net             4,997,897       4,360,208  
    Derivatives             34,564       51,071  
    Operating lease right-of-use assets             104,329       144,900  
    Deferred income taxes             239,685       188,836  
    Other noncurrent assets, net             35,915       33,647  
    Total assets           $ 5,878,946     $ 5,149,581  
    Liabilities and stockholders’ equity        
    Current liabilities:        
    Accounts payable and accrued liabilities           $ 185,115     $ 159,892  
    Accrued capital expenditures             95,593       91,937  
    Undistributed revenue and royalties             187,563       194,307  
    Operating lease liabilities             73,143       70,651  
    Other current liabilities             59,725       78,802  
    Total current liabilities             601,139       595,589  
    Long-term debt, net             2,454,242       1,609,424  
    Derivatives             5,814       —  
    Asset retirement obligations             82,941       81,680  
    Operating lease liabilities             26,733       71,343  
    Other noncurrent liabilities             7,506       6,288  
    Total liabilities             3,178,375       2,364,324  
    Commitments and contingencies        
    Stockholders’ equity:        
    Preferred stock, $0.01 par value, 50,000,000 shares authorized, and zero and 595,104 issued and outstanding as of December 31, 2024 and 2023, respectively             —       6  
    Common stock, $0.01 par value, 80,000,000 shares authorized, and 38,144,248 and 35,413,551 issued and outstanding as of December 31, 2024 and December 31, 2023, respectively             381       354  
    Additional paid-in capital             3,823,241       3,733,775  
    Accumulated deficit             (1,123,051 )     (948,878 )
    Total stockholders’ equity             2,700,571       2,785,257  
    Total liabilities and stockholders’ equity           $ 5,878,946     $ 5,149,581  
                     

    Vital Energy, Inc.
    Consolidated statements of operations

        Three months ended December 31,   Year ended December 31,
    (in thousands, except per share data)     2024       2023       2024       2023  
        (unaudited)   (unaudited)
    Revenues:                
    Oil sales           $ 454,852     $ 387,536     $ 1,728,971     $ 1,328,518  
    NGL sales             62,023       39,705       190,775       136,901  
    Natural gas sales             12,394       14,954       15,544       63,214  
    Sales of purchased oil             3,759       121       12,745       14,313  
    Other operating revenues             1,342       2,205       4,279       4,658  
    Total revenues             534,370       444,521       1,952,314       1,547,604  
    Costs and expenses:                
    Lease operating expenses             120,922       87,190       448,078       261,129  
    Production and ad valorem taxes             33,010       23,726       117,947       93,224  
    Oil transportation and marketing expenses             10,366       8,893       44,843       41,284  
    Gas gathering, processing and transportation expenses             5,759       1,642       17,825       2,013  
    Costs of purchased oil             3,912       209       13,243       15,065  
    General and administrative             26,644       31,766       101,578       104,819  
    Organizational restructuring expenses             795       1,654       795       1,654  
    Depletion, depreciation and amortization             214,498       152,626       741,966       463,244  
    Impairment expense             481,305       —       481,305       —  
    Other operating expenses, net             3,434       1,685       8,799       6,223  
    Total costs and expenses             900,645       309,391       1,976,379       988,655  
    Gain on disposal of assets, net             508       132       1,513       672  
    Operating income (loss)             (365,767 )     135,262       (22,552 )     559,621  
    Non-operating income (expense):                
    Gain (loss) on derivatives, net             (43,924 )     229,105       38,140       96,230  
    Interest expense             (53,564 )     (50,431 )     (177,794 )     (149,819 )
    Loss on extinguishment of debt, net             —       (4,039 )     (66,115 )     (4,039 )
    Other income, net             1,139       6,051       7,060       9,748  
    Total non-operating income (expense), net             (96,349 )     180,686       (198,709 )     (47,880 )
    Income (loss) before income taxes             (462,116 )     315,948       (221,261 )     511,741  
    Income tax benefit (expense)             102,724       (34,514 )     47,740       183,337  
    Net income (loss)              (359,392 )     281,434       (173,521 )     695,078  
    Preferred stock dividends             —       (449 )     (652 )     (449 )
    Net income (loss) available to common stockholders           $ (359,392 )   $ 280,985     $ (174,173 )   $ 694,629  
    Net income (loss) per common share:                
    Basic           $ (9.59 )   $ 10.04     $ (4.74 )   $ 34.30  
    Diluted           $ (9.59 )   $ 9.44     $ (4.74 )   $ 33.44  
    Weighted-average common shares outstanding:                
    Basic             37,477       27,991       36,725       20,254  
    Diluted             37,477       29,813       36,725       20,783  
                                     

    Vital Energy, Inc.
    Consolidated statements of cash flows

        Three months ended December 31,   Year ended December 31,
    (in thousands)     2024       2023       2024       2023  
        (unaudited)   (unaudited)
    Cash flows from operating activities:                
    Net income (loss)           $ (359,392 )   $ 281,434     $ (173,521 )   $ 695,078  
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:                
    Share-settled equity-based compensation, net             3,398       2,592       14,646       10,994  
    Depletion, depreciation and amortization             214,498       152,626       741,966       463,244  
    Impairment expense             481,305       —       481,305       —  
    Mark-to-market on derivatives:                
    (Gain) loss on derivatives, net             43,924       (229,105 )     (38,140 )     (96,230 )
    Settlements received (paid) for matured derivatives, net             47,571       (3,328 )     58,322       (17,648 )
    Loss on extinguishment of debt, net             —       4,039       66,115       4,039  
    Deferred income tax (benefit) expense             (102,474 )     31,089       (50,196 )     (189,060 )
    Other, net             8,055       5,672       27,663       13,983  
    Changes in operating assets and liabilities:                
    Accounts receivable, net             (74,978 )     (38,935 )     (61,163 )     (77,742 )
    Other current assets             1,211       6,835       (6,456 )     (2,754 )
    Other noncurrent assets, net             (315 )     (782 )     (1,151 )     484  
    Accounts payable and accrued liabilities             34,084       48,520       12,803       52,763  
    Undistributed revenue and royalties             (10,169 )     (32,106 )     (29,762 )     (31,907 )
    Other current liabilities             (23,572 )     7,190       (25,004 )     (5,656 )
    Other noncurrent liabilities             (5,972 )     (2,007 )     (17,097 )     (6,632 )
      Net cash provided by operating activities             257,174       233,734       1,000,330       812,956  
    Cash flows from investing activities:                
    Acquisitions of oil and natural gas properties, net             (19,686 )     (309,379 )     (850,911 )     (849,508 )
    Capital expenditures:                
    Oil and natural gas properties             (231,158 )     (162,351 )     (864,437 )     (617,397 )
    Midstream and other fixed assets             (6,711 )     (3,329 )     (23,341 )     (14,021 )
    Proceeds from dispositions of capital assets, net of selling costs             133       60       2,874       2,403  
    Other investing activities             —       311       (1,776 )     2,393  
      Net cash used in investing activities             (257,422 )     (474,688 )     (1,737,591 )     (1,476,130 )
    Cash flows from financing activities:                
    Borrowings on Senior Secured Credit Facility             310,000       135,000       1,750,000       765,000  
    Payments on Senior Secured Credit Facility             (290,000 )     —       (1,005,000 )     (700,000 )
    Issuance of senior unsecured notes             —       —       1,001,500       897,710  
    Extinguishment of debt             —       (457,792 )     (952,214 )     (457,792 )
    Proceeds from issuance of common stock, net of offering costs             —       220       —       161,223  
    Stock exchanged for tax withholding             (36 )     (21 )     (3,569 )     (3,077 )
    Payments for debt issuance costs             (340 )     (10,680 )     (22,078 )     (27,011 )
    Other, net             (1,389 )     (1,407 )     (5,260 )     (3,253 )
    Net cash provided by (used in) financing activities             18,235       (334,680 )     763,379       632,800  
    Net increase (decrease) in cash and cash equivalents             17,987       (575,634 )     26,118       (30,374 )
    Cash and cash equivalents, beginning of period             22,192       589,695       14,061       44,435  
    Cash and cash equivalents, end of period           $ 40,179     $ 14,061     $ 40,179     $ 14,061  
                                     

    Vital Energy, Inc.
    Supplemental reconciliations of GAAP to non-GAAP financial measures

    Non-GAAP financial measures

    The non-GAAP financial measures of Adjusted Free Cash Flow, Adjusted Net Income, Consolidated EBITDAX, Net Debt and Net Debt to Consolidated EBITDAX, as defined by the Company, may not be comparable to similarly titled measures used by other companies. Furthermore, these non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP measures of liquidity or financial performance, but rather should be considered in conjunction with GAAP measures, such as net income or loss, operating income or loss or cash flows from operating activities.

    Adjusted Free Cash Flow

    Adjusted Free Cash Flow is a non-GAAP financial measure that the Company defines as net cash provided by operating activities (GAAP) before net changes in operating assets and liabilities and transaction expenses related to non-budgeted acquisitions, less capital investments, excluding non-budgeted acquisition costs. Management believes Adjusted Free Cash Flow is useful to management and investors in evaluating operating trends in its business that are affected by production, commodity prices, operating costs and other related factors. There are significant limitations to the use of Adjusted Free Cash Flow as a measure of performance, including the lack of comparability due to the different methods of calculating Adjusted Free Cash Flow reported by different companies.

    The following table presents a reconciliation of net cash provided by operating activities (GAAP) to Adjusted Free Cash Flow (non-GAAP) for the periods presented:

        Three months ended December 31,   Year ended December 31,
    (in thousands)     2024       2023       2024       2023  
        (unaudited)   (unaudited)
    Net cash provided by operating activities           $ 257,174     $ 233,734     $ 1,000,330     $ 812,956  
    Less:                
    Net changes in operating assets and liabilities             (79,711 )     (11,285 )     (127,830 )     (71,444 )
    General and administrative (transaction expenses)             19       (8,221 )     (548 )     (11,341 )
    Cash flows from operating activities before net changes in operating assets and liabilities and transaction expenses related to non-budgeted acquisitions              336,866       253,240       1,128,708       895,741  
    Less capital investments, excluding non-budgeted acquisition costs:                
    Oil and natural gas properties(1)(2)             221,033       179,696       873,637       663,025  
    Midstream and other fixed assets(1)             5,043       4,511       22,276       15,601  
    Total capital investments, excluding non-budgeted acquisition costs              226,076       184,207       895,913       678,626  
    Adjusted Free Cash Flow (non-GAAP)            $ 110,790     $ 69,033     $ 232,795     $ 217,115  

    _______________________________________________________________________________

    (1) Includes capitalized share-settled equity-based compensation and asset retirement costs.
    (2) For the three months and year ended December 31, 2024, capital investments for oil and natural gas properties, excluding non-budgeted acquisition costs, includes $16.8 million of additional drilling and completions investments related to increased working interest and carried interest.
       

    Adjusted Net Income

    Adjusted Net Income is a non-GAAP financial measure that the Company defines as net income or loss (GAAP) plus adjustments for mark-to-market on derivatives, premiums paid or received for commodity derivatives that matured during the period, organizational restructuring expenses, impairment expense, gains or losses on disposal of assets, income taxes, other non-recurring income and expenses and adjusted income tax expense. Management believes Adjusted Net Income helps investors in the oil and natural gas industry to measure and compare the Company’s performance to other oil and natural gas companies by excluding from the calculation items that can vary significantly from company to company depending upon accounting methods, the book value of assets and other non-operational factors.

    The following table presents a reconciliation of net income (loss) (GAAP) to Adjusted Net Income (non-GAAP) for the periods presented:

        Three months ended December 31,   Year ended December 31,
    (in thousands, except per share data)     2024       2023       2024       2023  
        (unaudited)   (unaudited)
    Net income (loss)            $ (359,392 )   $ 281,434     $ (173,521 )   $ 695,078  
    Plus:                
    Mark-to-market on derivatives:                
    (Gain) loss on derivatives, net             43,924       (229,105 )     (38,140 )     (96,230 )
    Settlements received (paid) for matured derivatives, net             47,571       (3,328 )     58,322       (17,068 )
    Settlements received for contingent consideration             —       311       —       1,813  
    Organizational restructuring expenses             795       1,654       795       1,654  
    Impairment expense             481,305       —       481,305       —  
    Gain on disposal of assets, net             (508 )     (132 )     (1,513 )     (672 )
    Loss on extinguishment of debt, net             —       4,039       66,115       4,039  
    Income tax (benefit) expense             (102,724 )     34,514       (47,740 )     (183,337 )
    General and administrative (transaction expenses)             (19 )     8,221       548       11,341  
    Adjusted income before adjusted income tax expense             110,952       97,608       346,171       416,618  
    Adjusted income tax expense(1)             (24,410 )     (21,474 )     (76,158 )     (91,656 )
    Adjusted Net Income (non-GAAP)           $ 86,542     $ 76,134     $ 270,013     $ 324,962  
    Net income (loss) per common share:                
    Basic           $ (9.59 )   $ 10.04     $ (4.74 )   $ 34.30  
    Diluted           $ (9.59 )   $ 9.44     $ (4.74 )   $ 33.44  
    Adjusted Net Income per common share:                
    Basic           $ 2.31     $ 2.72     $ 7.35     $ 16.04  
    Diluted           $ 2.31     $ 2.55     $ 7.35     $ 15.64  
    Adjusted diluted           $ 2.30     $ 2.55     $ 7.21     $ 15.64  
    Weighted-average common shares outstanding:                
    Basic             37,477       27,991       36,725       20,254  
    Diluted             37,477       29,813       36,725       20,783  
    Adjusted diluted             37,670       29,813       37,445       20,783  

    _______________________________________________________________________________

    (1) Adjusted income tax expense is calculated by applying a statutory tax rate of 22% for each of the periods ended December 31, 2024 and 2023.
       

    Consolidated EBITDAX

    Consolidated EBITDAX is a non-GAAP financial measure defined in the Company’s Senior Secured Credit Facility as net income or loss (GAAP) plus adjustments for share-settled equity-based compensation, depletion, depreciation and amortization, impairment expense, organizational restructuring expenses, gains or losses on disposal of assets, mark-to-market on derivatives, accretion expense, interest expense, income taxes and other non-recurring income and expenses. Consolidated EBITDAX provides no information regarding a company’s capital structure, borrowings, interest costs, capital expenditures, working capital movement or tax position. Consolidated EBITDAX does not represent funds available for future discretionary use because it excludes funds required for debt service, capital expenditures, working capital, income taxes, franchise taxes and other commitments and obligations. However, management believes Consolidated EBITDAX is useful to an investor because this measure:

    • is used by investors in the oil and natural gas industry to measure a company’s operating performance without regard to items that can vary substantially from company to company depending upon accounting methods, the book value of assets, capital structure and the method by which assets were acquired, among other factors;
    • helps investors to more meaningfully evaluate and compare the results of the Company’s operations from period to period by removing the effect of the Company’s capital structure from the Company’s operating structure; and
    • is used by management for various purposes, including (i) as a measure of operating performance, (ii) as a measure of compliance under the Senior Secured Credit Facility, (iii) in presentations to the board of directors and (iv) as a basis for strategic planning and forecasting.

    There are significant limitations to the use of Consolidated EBITDAX as a measure of performance, including the inability to analyze the effect of certain recurring and non-recurring items that materially affect the Company’s net income or loss and the lack of comparability of results of operations to different companies due to the different methods of calculating Consolidated EBITDAX, or similarly titled measures, reported by different companies. The Company is subject to financial covenants under the Senior Secured Credit Facility, one of which establishes a maximum permitted ratio of Net Debt, as defined in the Senior Secured Credit Facility, to Consolidated EBITDAX. See Note 7 in the 2024 Annual Report, to be filed with the SEC, for additional discussion of the financial covenants under the Senior Secured Credit Facility. Additional information on Consolidated EBITDAX can be found in the Company’s Eleventh Amendment to the Senior Secured Credit Facility, as filed with the SEC on September 13, 2023.

    The following table presents a reconciliation of net income (loss) (GAAP) to Consolidated EBITDAX (non-GAAP) for the periods presented:

        Three months ended December 31,   Year ended December 31,
    (in thousands)     2024       2023       2024       2023  
        (unaudited)   (unaudited)
    Net income (loss)            $ (359,392 )   $ 281,434     $ (173,521 )   $ 695,078  
    Plus:                
    Share-settled equity-based compensation, net             3,398       2,592       14,646       10,994  
    Depletion, depreciation and amortization             214,498       152,626       741,966       463,244  
    Impairment expense             481,305       —       481,305       —  
    Organizational restructuring expenses             795       1,654       795       1,654  
    Gain on disposal of assets, net             (508 )     (132 )     (1,513 )     (672 )
    Mark-to-market on derivatives:                
    (Gain) loss on derivatives, net             43,924       (229,105 )     (38,140 )     (96,230 )
    Settlements received (paid) for matured derivatives, net             47,571       (3,328 )     58,322       (17,068 )
    Settlements received for contingent consideration             —       311       —       1,813  
    Accretion expense             1,107       988       4,209       3,703  
    Interest expense             53,564       50,431       177,794       149,819  
    Loss extinguishment of debt, net             —       4,039       66,115       4,039  
    Income tax (benefit) expense             (102,724 )     34,514       (47,740 )     (183,337 )
    General and administrative (transaction expenses)             (19 )     8,221       548       11,341  
    Consolidated EBITDAX (non-GAAP)           $ 383,519     $ 304,245     $ 1,284,786     $ 1,044,378  
                                     

    The following table presents a reconciliation of net cash provided by operating activities (GAAP) to Consolidated EBITDAX (non-GAAP) for the periods presented:

        Three months ended December 31,   Year ended December 31,
    (in thousands)     2024       2023       2024       2023  
        (unaudited)   (unaudited)
    Net cash provided by operating activities           $ 257,174     $ 233,734     $ 1,000,330     $ 812,956  
    Plus:                
    Interest expense             53,564       50,431       177,794       149,819  
    Organizational restructuring expenses             795       1,654       795       1,654  
    Current income tax (benefit) expense             (250 )     3,425       2,456       5,723  
    Net changes in operating assets and liabilities             79,711       11,285       127,830       71,444  
    General and administrative (transaction expenses)             (19 )     8,221       548       11,341  
    Settlements received for contingent consideration             —       311       —       1,813  
    Other, net             (7,456 )     (4,816 )     (24,967 )     (10,372 )
    Consolidated EBITDAX (non-GAAP)           $ 383,519     $ 304,245     $ 1,284,786     $ 1,044,378  
                                     

    Net Debt

    Net Debt is a non-GAAP financial measure defined in the Company’s Senior Secured Credit Facility as the face value of long-term debt plus any outstanding letters of credit, less cash and cash equivalents, where cash and cash equivalents are capped at $100 million when there are borrowings on the Senior Secured Credit Facility. Management believes Net Debt is useful to management and investors in determining the Company’s leverage position since the Company has the ability, and may decide, to use a portion of its cash and cash equivalents to reduce debt.

    Net Debt to Consolidated EBITDAX

    Net Debt to Consolidated EBITDAX is a non-GAAP financial measure defined in the Company’s Senior Secured Credit Facility as Net Debt divided by Consolidated EBITDAX for the previous four quarters, which requires various treatment of asset transaction impacts. Net Debt to Consolidated EBITDAX is used by the Company’s management for various purposes, including as a measure of operating performance, in presentations to its board of directors and as a basis for strategic planning and forecasting.

    PV-10

    PV-10 is a non-GAAP financial measure that is derived from the standardized measure of discounted future net cash flows, which is the most directly comparable GAAP financial measure. PV-10 is a computation of the standardized measure of discounted future net cash flows on a pre-tax basis. PV-10 is equal to the standardized measure of discounted future net cash flows at the applicable date, before deducting future income taxes, discounted at 10 percent. Management believes that the presentation of PV-10 is relevant and useful to investors because it presents the discounted future net cash flows attributable to the Company’s estimated proved reserves prior to taking into account future corporate income taxes, and it is a useful measure for evaluating the relative monetary significance of the Company’s proved oil, NGL and natural gas assets. Further, investors may utilize the measure as a basis for comparison of the relative size and value of proved reserves to other companies. The Company uses this measure when assessing the potential return on investment related to proved oil, NGL and natural gas assets. However, PV-10 is not a substitute for the standardized measure of discounted future net cash flows. The PV-10 measure and the standardized measure of discounted future net cash flows do not purport to present the fair value of the Company’s oil, NGL and natural gas reserves of the property.

    (in millions)   December 31, 2024
        (unaudited)
    Standardized measure of discounted future net cash flows           $ 4,215  
    Less: present value of future income taxes discounted at 10%             (295 )
    PV-10 (non-GAAP)           $ 4,510  

    Investor Contact:
    Ron Hagood
    918.858.5504
    ir@vitalenergy.com

    The MIL Network –

  • MIL-OSI Global: The success of the Delta Flight 4819 rescue effort highlights the need for co-ordinated responses

    Source: The Conversation – Canada – By Jack L. Rozdilsky, Associate Professor of Disaster and Emergency Management, York University, Canada

    The day after the Delta Flight 4819 crash on Feb. 17 at Toronto Pearson International Airport, the damaged aircraft remained on the runway as the crash investigation ramped up.

    Whether it was due to luck, skill, heroism or aircraft design, the evacuation of passengers took place quickly and everyone aboard the ill-fated flight were able to exit the plane and make it on to the tarmac.

    Post-accident investigations will provide more details about what contributed to the accident, and the strengths and weaknesses of the emergency response. But one point is already obvious: the positive outcome speaks to the importance of the institutions and expertise that keep our aviation system safe overall.

    The response

    The response to Delta Flight 4819 air crash was an example of just how important inter-agency collaboration is in emergency response.

    Within minutes of the crash, not only were the airport’s firefighters on the scene to douse any flames and assist with the rescue of passengers, but other agencies were already providing aid. Mississauga Fire and Emergency Services sent six vehicles to the airport as part of the mutual aid effort.

    The news conference following the accident involving Delta Flight 4819 at Toronto Pearson Airport.

    Ornge, Ontario’s air ambulance system, also sent multiple units to the scene to help transport injured passengers to hospitals, aiding Peel Region paramedics who were also triaging passengers.

    Multiple agencies collaborated to save lives. This collaboration in emergency response isn’t developed on the fly, but instead follows a highly choreographed and practised set of plans.

    Both the airport and partner agencies maintain air crash emergency response plans that lay out the details of how help will be requested, where aid will arrive and how to scale up the response as needed.

    Preparation facilitates response

    A primary reason the air crash response worked so well was preparation. An important component of preparation at airports is regularly testing response plans and operations with specialized full-scale mock disaster exercises.

    In these exercises, airport response personnel work through scenarios that simulate emergencies. Real emergency equipment is tested, volunteer victims participate in search-and-rescue scenarios and theatrical make-up is even used to simulate injuries.

    These exercises serve multiple purposes, including increasing familiarity with the plan for responders and creating real challenges that will help to find any potential weaknesses in the plan before a real event.

    Practice saves lives

    Another less desirable way responses can be improved is for an actual disaster to happen. Actual air crash disasters force plans to be activated, require response actions to be taken, and — ideally — foster adaptive learning through hard-won experience.

    According to data from the Aviation Safety Network, there have been 23 aircraft accidents at or near Pearson Airport since 1939. As a testament to safety at Pearson, no casualties occurred in 18 of those 23 accidents.

    One past significant Pearson crash with no casualties is especially relevant to revisit now. In August 2005, Air France Flight 358 rolled off the runway during landing and caught fire.

    All 309 people on board evacuated and survived. An organizational analysis of the 2005 accident highlighted that the crash investigation report “praised the seamless tracking of events and communication between the parties involved” in response.

    Twenty years later, and Pearson CEO Deborah Flint said the crew, airport emergency workers and first responders mounted a “textbook response” to the Delta incident.

    An investigation begins

    While the immediate response may have been over fairly quickly after passengers were successfully evacuated, the mutual aid and collaboration between agencies will continue in the months ahead.

    The Transportation Safety Board (TSB) has already launched an investigation into the incident. The cockpit voice and flight data recorders have been retrieved from the wreckage, a key aspect in what will be a slow and methodical investigation.

    The integrity of the investigation depends on strong institutions and trust in experts. In the context of air crashes, lessons learned from these investigations are critical to improving airline procedures for maintaining safety, creating better regulation to avoid accidents in the first place and ensuring emergency systems are well prepared.

    Safety in aviation

    According to the most recent TSB data, the 2023 overall air transportation accident rate of 2.8 per 100,000 aircraft movements is among the lowest recorded by the federal agency since it began measuring in 2004.

    Within the first 24 hours after the Delta crash, a pivot from the emergency response phase to the investigation phase took place.

    It’s far too early to speculate on what the ultimate cause of the accident may have been. While learning about what contributed to the crash of Delta Flight 4819 is important, we can also seek comfort in the fact that air travel in Canada continues to be a safe activity for passengers.

    Jack L. Rozdilsky receives support for research communication and public scholarship from York University. He also has received research support from the Canadian Institutes of Health Research.


    – ref. The success of the Delta Flight 4819 rescue effort highlights the need for co-ordinated responses – https://theconversation.com/the-success-of-the-delta-flight-4819-rescue-effort-highlights-the-need-for-co-ordinated-responses-250211

    MIL OSI – Global Reports –

  • MIL-OSI USA: Welch on Trump’s Cuts to Medicaid: “The number one agenda item for him is cutting taxes for billionaires, the families be damned.”

    US Senate News:

    Source: United States Senator Peter Welch (D-Vermont)
    Senate Republicans’ proposed budget would slash Medicare, Medicaid, and the Affordable Care Act funding, rip away health care and raise costs for millions
    WASHINGTON, D.C. — Today, U.S. Senator Peter Welch (D-Vt.) a member of the Senate Finance Committee, and U.S. Senator Tammy Baldwin (D-Wis.) hosted a press conference on Capitol Hill to slam President Trump and Republicans’ cruel and chaotic budget which would raise health care costs for millions of Americans and slash Medicaid in order to give tax handouts to the ultra-wealthy. TheSenators highlighted how drastic cuts to Medicaid and the Affordable Care Act (ACA) included in Republicans’ budget blueprint would kick tens of millions of people off of their health coverage, decimate state budgets, cut payments to health care providers, and increase costs for the more than 100 million people across the country who rely on these programs.  
    “When I talk to Vermonters, their heads are spinning. There’s no stable ground underneath them, and they wonder what he’s up to…the number one agenda item for Trump is cutting taxes for billionaires, the families be damned,” said Senator Welch. “We are here to say no. We are going to fight every way that we can to stop this travesty from occurring.” 
    Watch a livestream and view photos from the press conference below: 
    Read Senator Welch’s remarks as delivered here. 
    Sens. Welch and Baldwin were joined by Senators Catherine Cortez Masto (D-Nev.), Reverend Raphael Warnock (D-Ga.), Maggie Hassan (D-N.H.), Patty Murray (D-Wash.), and Senate Finance Committee Ranking Member Ron Wyden (D-Ore.). 

    MIL OSI USA News –

  • MIL-OSI USA: Senator Collins’ Statement on Acadia National Park Hiring Freeze

    US Senate News:

    Source: United States Senator for Maine Susan Collins
    Published: February 19, 2025

    Washington, D.C. – U.S. Senator Susan Collins issued the following statement regarding the recently announced hiring freeze at Acadia National Park:
    “In response to conversations with officials from Friends of Acadia and the National Parks Conservation Association, I discussed with Secretary of the Interior Doug Burgum the problems that the Department’s hiring freeze creates for Acadia because the Park would not be able to hire the seasonal employees required to collect entrance fees and perform other essential tasks such as maintaining trails and providing first responder services to visitors.
    “Secretary Burgum has informed me that he has now secured an exception to the hiring freeze that will allow seasonal hiring to proceed.  I am continuing to work with the Secretary on the remaining problems caused by the sweeping hiring freeze and the elimination of probationary workers.”

    MIL OSI USA News –

  • MIL-OSI USA: Sens. Moran, Hoeven, Shaheen, Bennet Reintroduce Legislation to Provide Educational Benefits for Air National Guard

    US Senate News:

    Source: United States Senator for Kansas – Jerry Moran
    WASHINGTON – U.S. Senators Jerry Moran (R-Kan.), John Hoeven (R-N.D.), Jeanne Shaheen (D-N.H.) and Michael Bennet (D-Colo.) reintroduced legislation to establish a permanent federal tuition assistance (FTA) program benefitting Air National Guard members. The Air Guard Standardizing Tuition Assistance to Unify the Services (STATUS) Act requires the Secretary of the Air Force to provide tuition assistance to drill-status members of the Air National Guard, consistent with the program available to the Army National Guard. The legislation is supported by the National Guard Association of the United States (NGAUS).
    “The men and women in the Air National Guard work alongside their active-duty counterparts to protect our nation and serve our communities,” said Sen. Moran. “Providing the same educational benefits to the Air National Guard that the Army National Guard receives will help increase recruitment rates and make certain our servicemembers have access to the benefits they deserve.”
    “Our Air Guard members deserve to receive the same benefits as their counterparts, both in the reserve and active duty components of the military,” said Sen. Hoeven. “Our legislation makes the Air Guard FTA pilot program that we first worked to establish in 2020 permanent and available to drill-status Guard members across the country. Doing so will ensure the Air Guard, like the Happy Hooligans in Fargo, can continue to recruit the best and brightest members to support the increasingly high-tech missions they take on in defense of our nation.”
    “Ensuring that the brave women and men serving in the Air National Guard have access to educational opportunities will not only help our recruitment and retention, but will also enhance our overall military preparedness and provide service members the benefits they deserve,” said Sen. Shaheen. “Passing our bipartisan legislation will make tuition more affordable for the Air National Guard and bring their educational benefits in line with the other service branches. Let’s get this done.”
    “Colorado is home to over 1,500 Air National Guardsmen whose dedication and sacrifice helps keep our state and country safe,” said Sen. Bennet. “Our bipartisan bill will help attract, develop, and retain members of the Air National Guard and ensure servicemembers nationwide have the educational benefits they deserve.”
    “We must take care of the servicemembers who take care of our nation. One way to show our gratitude is to invest in their future through federal tuition assistance,” said retired Maj. Gen. Francis M. McGinn, President of NGAUS. “We must equally provide for our Soldiers and our Airmen. This bill corrects a long-standing gap in National Guard benefits and will empower our Airmen to reach new heights in knowledge and skill. We thank Senators Hoeven and Shaheen for their efforts and continued support of the National Guard.”

    MIL OSI USA News –

  • MIL-OSI USA: Attorney General Alan Wilson calls for action against counterfeit weight loss drug makersRead More

    Source: US State of South Carolina

    (COLUMBIA, S.C.) – South Carolina Attorney General Alan Wilson today led a 37-state and territory bipartisan coalition requesting that the Food and Drug Administration take swift action against bad actors who are endangering consumers with counterfeit forms of the weight loss and diabetes drugs Mounjaro, Zepbound, Ozempic, and Wegovy (GLP-1 drugs).

    “The popularity of these drugs is growing at a rate that exceeds production by licensed manufacturers and has opened the door for copycat products from countries like China and India to flow through the U.S. supply chain that are seriously harming consumers,” said Attorney General Wilson.

    The letter states that “online retailers are illegally selling the active ingredients of GLP-1 drugs directly to consumers, without a prescription. These retailers claim that the active ingredients they sell are ’for research purposes only’ or ’not for human consumption’.[1] In reality, these companies advertise directly to consumers on social media, claiming that their products are an easier and more affordable way to obtain GLP-1 drugs.[2] Much like with counterfeit versions, these active ingredients come from unregulated, undisclosed sources and pose risks of contamination and inclusion of foreign substances.[3]”

    Attorney General Wilson also recently sent out a consumer alert warning consumers to be cautious when purchasing compounded Tirzepatide and Semaglutide, specifically in unapproved forms such as pills (only available via Rybelsus), sublingual drops, lozenges, or films taken under the tongue, topical skin patches, and nasal sprays.

    Attorney General Wilson said, “Protecting consumers is of utmost priority to me and the lengths that these counterfeiters are going to take advantage of consumers and endanger their health must be stopped.”

    The letter declares that the Food and Drug Administration has the expertise and resources to stop the bad conduct and deceptive practices by counterfeit drug manufacturers and that they should increase enforcement actions against compounding pharmacies illegally participating in this market. It also encourages the FDA to partner with state pharmacy boards to ensure compounded GLP-1 drugs are produced safely and in sanitary environments. 

    South Carolina co-led this bipartisan letter with Colorado, Illinois, and Tennessee and was joined by Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Georgia, Hawaii, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Utah, Vermont, Virgin Islands, Virginia, West Virginia, and Wisconsin.

    You can read the full letter here.

    You can read the consumer alert here.

    [1]  See Jordyn Belcourt et al., Bypassing Prescribers and Pharmacists: Online Purchasing of Semaglutide and Tirzepatide “For Research Purposes,” Annals of Pharmacotherapy, p.1 (2024).

    [2] See https://www.wsj.com/health/healthcare/ozempic-mounjaro-no-prescription-websites-726b3928

    [3] https://www.nbcnews.com/health/health-news/ozempic-underworld-black-market-obesity-drugs-rcna174680

    MIL OSI USA News –

  • MIL-OSI USA: New Ambassadors Program Begins in Alaska with Projects Exploring Three Food Systems

    Source: US Geological Survey

    New Ambassadors Program Begins in Alaska with Projects Exploring Three Food Systems

    Projects from the first cohort of Alaska CASC Ambassadors recently launched, supporting food security in Alaska through research on invasive European green crabs, food systems on Kodiak Island, and mariculture policy. 

    The Alaska Climate Adaptation Science Center (CASC) launched its inaugural Ambassadors Program, funding three one-year projects focused on food security in Alaska. Each project addresses critical environmental challenges related to food security – including invasive species education, mapping local food systems, and mariculture policy.  

    1. Invasive Species Education. In Ketchikan, researchers are working to increase public awareness of the invasive European green crab – a threat to native species and habitats. First discovered in Alaska in 2022, efforts to control the spread of European green crabs have gained momentum. However, the invasive green crab is easily confused with a native green crab, leading to potential accidental harm to the native species. To help people distinguish the species, researchers will develop educational materials and lead in-person classes. For instance, the invasive species can be identified by three raised bumps between the eyes, which the native green crabs lack. By improving identification skills, the researchers aim to prevent accidental harm to native crabs and support future management efforts.  

    2. Local Food Systems. On Kodiak Island, a Food System Vulnerability Assessment is underway to evaluate challenges and opportunities in the region’s food supply. Researchers and community partners are gathering input from local growers and harvesters and are considering both wild food harvests and cultivated foods. The researchers will use climate projections from the Scenarios Network for Arctic Planning’s Garden Helper Tool, which models and visualizes future temperature and precipitation patterns to help growers in the region. Other findings from the assessment can help guide climate adaptation strategies that support local food production. 

    3. Mariculture Policy. In Southeast Alaska, researchers are examining how state and federal laws, such as harvest limits and seasonal restrictions, impact Tribal fisheries including salmon, hooligan, and clams. Researchers are exploring ways to include Indigenous Knowledge into marine regulations, ensuring that traditional harvesting practices and community needs are represented in decision-making. By fostering dialogue between policymakers and Tribal leaders, the project aims to strengthen trust, improve resource management, and support sustainable fisheries for future generations.  

    MIL OSI USA News –

  • MIL-OSI Security: New Orleans Man Guilty of Commodity Exchange Act Violation

    Source: Office of United States Attorneys

    NEW ORLEANS, LA – Acting U.S. Attorney Michael M. Simpson announced today that MICHAEL BRIAN DEPETRILLO, (“DEPETRILLO”), age 43, from New Orleans, pled guilty on February 18, 2025 to violating the Commodity Exchange Act, in violation of Title 7, United States Code, Section 13(a). DEPETRILLO faces up to ten (10) years imprisonment, up to three (3) years of supervised release, up to a $1,000,000.00 fine, plus the amount of any proceeds, and a mandatory $100 special assessment fee.

    According to court documents, DEPETRILLO was not properly registered as a Commodity Pool Operator (“CPO”) or an Associated Person (“AP”) of a CPO with the United States Commodity Futures Trading Commission (“CFTC”). DEPETRILLO, through various companies including, Meteor, LLC; NOLA FX Capital Management, LLC; ELC Enterprise Solutions, LLC; and Argosapolis, LLC, acted as a CPO and AP of a CPO and embezzled client funds in violation of federal law.     DEPETRILLO, while acting as an AP of unregistered CPOs, represented to victim investors that their funds would be pooled and invested in the NOLA FX FUND, that, in turn, would be used to trade foreign currency pairs on a leveraged, margined, or financed basis (“retail forex”).

    DEPETRILLO told investors that pooling their funds would be beneficial to them.  DEPETRILLO further represented, to certain investors, that either METEOR or NOLA FX CAPITAL managed the NOLA FX FUND.  In at least one representation, however, DEPETRILLO identified “NOLA FX Capital,” not the NOLA FX FUND, as the pooled investment vehicle.  DEPETRILLO lured investors by claiming he was investing their funds by trading in the foreign currency exchange, gold futures options, stocks, and cryptocurrency.  Instead of trading as promised, DEPETRILLO misappropriated pool funds.  DEPETRILLO then used these misappropriated pool funds to pay approximately $3,700,000 in “returns” to prior investors; approximately $575,000 on his own personal investments; approximately $425,000 on rent; approximately $200,000 on private air travel; and approximately $300,000 on online gambling, among other personal expenses.  To conceal DEPETRILLO’s misappropriation, he created and issued fictitious account statements in the names NOLA FX FUND and NOLA FX CAPITAL.  The fictitious account statements purported to show that: (1) DEPETRILLO had traded forex using pool participant funds, and (2) the NOLA FX FUND and NOLA FX CAPITAL had achieved significant trading returns for pool participants because of his profitable forex trading.  In fact, DEPETRILLO never deposited pool participant funds into trading accounts belonging to NOLA FX FUND or NOLA FX CAPITAL, and he never achieved the trading returns represented on the false account statements.  DEPETRILLO also did not set up the forex pool in the manner required by the regulations, did not receive pool participant funds in the name of the forex pool, and commingled pool participant funds with his own funds.  DEPETRILLO took in approximately $9.2 million in investor funds from approximately 55 victim investors during a seven-year period.

    Sentencing in this matter is scheduled for May 25, 2025, before United States District Judge Jay C. Zainey.

    The case is being investigated by the Federal Bureau of Investigation (“FBI”).  The FBI is seeking information that may help identify potential victims of DEPETRILLO’s fraudulent scheme.  FBI encourages the public to report any information to http://fbi.gov/depetrillovictims.

    The prosecution of this case is being handled by Assistant United States Attorneys Kathryn McHugh of the Financial Crimes Unit and Brian M. Klebba, Chief of the Financial Crimes Unit.

    MIL Security OSI –

  • MIL-OSI Africa: Community engagement in the fight against cholera in Angola: Mr Celestino Mbambali – “The Lifesaver”

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

    BRAZZAVILLE, Congo (Republic of the), February 19, 2025/APO Group/ —

    For more than twenty-five years of volunteering in his community, 55-year-old Celestino Mbambali has witnessed countless health emergencies, including cholera outbreaks. A qualified nurse by profession, he was always concerned about the lack of a health center in his neighborhood and, driven by his commitment to his neighbors, decided to take action. In the improvised space he built next to his house, he assists his neighbors on a daily basis, ensuring that they have access to first aid without having to travel long distances.

    In front of the modest sheet metal structure he built with his own hands, Celestino says: “Here, neighbors are family. Taking care of my community is a duty and a pleasure. From malaria cases to diarrheal diseases, I’m always available to help.”

    A resident of the Ngueto Maka neighborhood, in the municipality of Cabiri, Icolo e Bengo province, Celestino has become a health reference for his neighbors and is affectionately referred to as the “life saver” of his neighborhood. When he heard about the cholera outbreak on the radio, Celestino began a tireless door-to-door awareness campaign with his patients, warning them about the importance of drinking treated water, hand hygiene and safe food handling. With 512 cases and 19 deaths recorded by February 17 in his province, Celestino has become an essential partner in epidemiological surveillance, promptly reporting suspected cases to the health authorities.

    “So far, I’ve assisted 16 suspected cases of cholera, 10 of which have been confirmed. Thanks to the support of the health authorities, all the patients have had prompt access to treatment and have returned home alive.”

    The efforts of Celestino and other community volunteers have been essential at a critical time for Angola, which is facing a cholera outbreak in ten provinces, with a total of 4,235 cases and 150 deaths. “With his quick action and proximity to the community, we’ve managed to greatly reduce the risk of cholera deaths. Whenever he notifies us of a suspected case, we immediately send the ambulance to ensure the patient is brought for the necessary treatment. Collaboration with community volunteers has been essential in saving lives, especially in places that are further away from health facilities.’’ Says Dr. Santos, Municipal Health Director of Catete.

    The fight against cholera is not an individual one, and Celestino also has the support of community development agents (ADECOs) who reinforce social mobilization. With the support of The World Health Organization (WHO), as part of the response to the outbreak, door-to-door awareness-raising activities, educational sessions and the distribution of information materials on the prevention of the disease have been promoted throughout the country, reinforcing families’ awareness of safe hygiene and sanitation practices.

    The WHO has played a key role in responding to the cholera outbreak in Angola, collaborating closely with the Ministry of Health (MINSA), Ministry of Water and Energy and the Provincial Health Office to contain the spread of the disease. ‘‘With a community-based approach, WHO has facilitated the implementation of the National Cholera Response Plan, mobilizing human and material resources to the affected provinces and reinforcing epidemiological monitoring, which is essential for containing the outbreak.’’ says Dr Zabulon Yoti, WHO Representative in Angola.

    In addition, community mobilizers have been trained in effective communication strategies on hygiene, sanitation and early case detection. Thanks to this coordination, rapid responses have enabled suspected cases to be identified, referred to and treated quickly. 

    Celestino Mbambali’s story demonstrates the impact an individual can have on protecting their community, but it also highlights the importance of the coordinated response between local authorities, international organizations and civil society. With collective work, solidarity and awareness, it is possible to save lives and defeat cholera.

    “I’m relieved to know that we have life saver in our neighborhood. When I started having symptoms, I was quickly helped by Mr. Celestino and transferred to the hospital. After two difficult weeks, I was finally able to return home, healthy and grateful for everything they did for me.’’ Fernando Alberto, one of the patients who successfully recovered, says with emotion.

    In the context of this public health emergency, the Ministry of Health, with the support of the WHO, the United Nations Children’s Fund (UNICEF) and the World Bank, carried out a reactive vaccination campaign from 3 to 7 February 2025 to immunize around 930,000 people aged one year and above in the provinces most affected by cholera, namely Luanda, Bengo and Icolo e Bengo. The oral cholera vaccine is being used to compliment other preventive measures including improving access to safe water, addressing sanitation and hygiene gaps.

    MIL OSI Africa –

  • MIL-OSI Security: 14 members of Bandidos motorcycle gang indicted for offenses including racketeering, assault and murder

    Source: Office of United States Attorneys

    HOUSTON – A 22-count indictment has been unsealed in the Southern District of Texas (SDTX) following an operation targeting multiple members of an allegedly violent, transnational motorcycle gang in the Houston metropolitan area.

    Current and former members of the Bandidos Outlaw Motorcycle Gang and Mascareros Motorcycle Club are charged for their alleged roles in a criminal enterprise engaged in violent criminal activity in and around Houston. The Mascareros is a support club of the Bandidos.

    Several of those are expected to make their initial appearance before U.S. Magistrate Judge Dena Hanovice Palermo at 2 p.m. Feb. 20.

    A federal grand jury returned an indictment Feb. 11 against 14 members and associates of the Bandidos outlaw motorcycle gang accusing them of various crimes, to include engaging in a conspiracy to commit racketeering activity and committing violent crimes in furtherance of the gang such as murder, attempted murder and assault. The indictment alleges the Bandidos are a self-identified “outlaw” motorcycle organization with a membership of approximately 1,500 to 2,000 in the United States and an additional 1,000 to 1,500 members internationally, including in Mexico.

    “Ensuring the safety of the public is SDTX’s paramount concern,” said U.S. Attorney Nicholas J. Ganjei. “The indictment here not only alleges shocking crimes of violence, but also alleges that these offenses were committed openly and wantonly, where any innocent member of the public could have been hurt or killed.” 

    “Today’s indictment is an important step in eliminating the Bandidos Outlaw Motorcycle Gang,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “The Bandidos declare war on rivals—and they wage that war on our streets. Criminal behavior like this has no place in America, and the Department of Justice is fully committed to bringing peace back to our communities.”

    The indictment alleges that beginning in 2019, a violent turf war erupted between the Bandidos and B*EAST, a rival outlaw motorcycle gang in the Houston area. As part of this turf war, Bandidos national leadership allegedly put out a “smash on site” order to commit physical assaults, including murder, against B*EAST members. The turf war has resulted in gunfire exchanged on public roadways and in public establishments with innocent civilians present, according to the charges.

    John M. Pfeffer aka Big John, 32, Darvi Hinojosa aka 10 Round, 35, Bradley Rickenbacker aka Dolla Bill, 37, all of Katy; Michael H. Dunphy aka Money Mike, 57, Cleveland; Christopher Sanchez aka Monster, 40, Tomball; and Brandon K. Hantz aka Loco and Gun Drop, 33, Crosby; are charged with conspiracy to commit racketeering activity. Pfeffer, Dunphy, Hinojosa, Rickenbacker and Sanchez are further charged with multiple counts of assault in aid of racketeering. Pfeffer, Hinojosa, Rickenbacker and Sanchez are also charged with using a firearm during and in relation to a crime of violence, while Sanchez faces charges of being a felon in possession of a firearm. Hantz is also charged with arson.

    Pfeffer, Hinojosa, Rickenbacker and Sanchez each face up to life in prison if convicted, while Dunphy and Hantz each face up to 20 years on each of their counts upon conviction.

    The indictment also charges David Vargas aka Brake Check and First Time, 33, Houston, with murder in aid of racketeering; using a firearm during and in relation to a crime of violence resulting in death; attempted murder in aid of racketeering; and using, carrying, brandishing, discharging and possessing a firearm during and in relation to the attempted murders. All those charges relate to the killing of a rival and the shooting of two others. Murder in aid of racketeering carries a mandatory life sentence or the death penalty, if convicted.

    Further, Pfeffer and Rickenbacker are also charged with assault in aid of racketeering and using a firearm during and in relation to a crime of violence  along with Marky Baker aka Pinche Guero and Guero, 40, Ronnie McCabe aka Meathead, 56, and Jeremy Cox aka JD, 37, all of Houston; Roy Gomez aka Repo, 50, Richmond; and Marcel Lett, 56, Pearland. These charges are in relation to an alleged assault and robbery that resulted in the death of a rival. If convicted, they face up to life in prison.

    Hinojosa is also charged along with John Sblendorio aka Tech9, 54, Houston, with conspiracy to commit murder in aid of racketeering, attempted murder in aid of racketeering, assault in aid of racketeering and using a firearm during and in relation to a crime of violence in connection with the shooting of a rival gang member. Hinojosa is also charged with conspiracy to distribute cocaine and three counts of possession with intent to distribute cocaine. Sblendorio and Hinojosa each face up to life in prison, if convicted.

    In addition, Sean G. Christison, aka Skinman, 30, Katy, is charged with possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime. He faces a maximum penalty of life imprisonment. 

    The FBI, Texas Board of Criminal Justice – Office of Inspector General, Texas Department of Public Safety and Montgomery County Sheriff’s Office conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation with the assistance of Harris County Sheriff’s Office; Houston and Pasadena Police Departments; Texas Alcoholic Beverage Commission; LaMarque and Katy Police Departments; U.S. Marshals Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Cypress-Fairbanks Independent School District Police Department. 

    OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.

    This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

    Assistant U.S. Attorneys Byron H. Black and Kelly Zenón-Matos of the Southern District of Texas are prosecuting the case in partnership with Trial Attorneys Grace H. Bowen and Christopher Taylor of the Department of Justice’s Criminal Division – Violent Crime and Racketeering Section.

    An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

    MIL Security OSI –

  • MIL-OSI Security: Detroit Man Sentenced To Over Four Years in Federal Prison For Participating In Multi-State Pandemic Unemployment Insurance Fraud Scheme

    Source: Office of United States Attorneys

    DETROIT – A man from Detroit, Michigan was sentenced today for his role in a multi-state, million-dollar unemployment insurance fraud scheme aimed at defrauding the U.S. government and the states of Michigan, Pennsylvania, and Maryland, of funds earmarked for unemployment assistance during the COVID-19 pandemic, announced Acting United States Attorney Julie A. Beck.

    Joining in the announcement were Special Agent in Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Special Agent in Charge Charles Miller, Internal Revenue Service-Criminal Investigation, and Megan Howell, Acting Special Agent in Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

    Tracey Dotson, 49, was sentenced to 51 months in prison and ordered to pay more than $900,000 in restitution in the sentence handed down by United States District Judge Matthew F. Leitman.

    According to court records, Dotson and a co-defendant conspired to, and did, defraud the federal government and the states of Michigan, Pennsylvania, and Maryland of roughly $1 million in funds intended to support individuals who had lost their jobs during the COVID-19 pandemic. The pair committed their crimes through the use of interstate wires and the unauthorized possession and use of social security numbers and other means of identification belonging to other individuals.

    Dotson pleaded guilty to wire fraud and conspiracy to commit wire fraud in April 2024. Dotson and his co-defendant, using stolen personal identification, filed hundreds of false unemployment claims with state unemployment insurance agencies in Michigan, Pennsylvania, and Maryland in the names of other individuals without their knowledge or consent.   The defendants then received hundreds of Bank of America prepaid debit cards in the names of those individuals loaded with roughly $1 million in Pandemic Unemployment Assistance funds at addresses in Michigan and Pennsylvania. Dotson, his co-defendant, and their accomplices then successfully unloaded more than $930,000 from the cards via cash withdrawals and purchases that included high-end jewelry, designer fashion accessories by Gucci and Louis Vuitton, drugs, at least one vehicle, and at least one firearm.

    “Taxpayer unemployment assistance funds diverted to the pockets of criminals during the pandemic resulted in fewer resources that were available for those genuinely in need at that challenging time,” said Acting U.S. Attorney Julie Beck. “Our office is steadfast in its commitment to bringing those to justice who used a global health crisis as a means to illegally line their own pockets at the expense of taxpayers. “

    “This sentence underscores the FBI’s commitment to investigating complex financial crimes,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “We will not tolerate the greed and selfish conduct demonstrated by those who chose to defraud the unemployment insurance system, especially when we faced an unprecedented global pandemic. The FBI and our federal partners remain steadfast in holding criminals accountable and protecting government assistance programs. The pandemic may be in our rearview mirrors, but our investigations continue to move forward in the name of justice.”

    “Individuals who commit such blatant unemployment insurance fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law,” said Charles Miller, Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation.  “Tracey Dotson and his co-conspirator took advantage of a program intended to help those in need get through a devastating global pandemic, exposed personal identity information of many, and caused immeasurable hardship to innocent victims. IRS Criminal Investigation remains committed to the pursuit of pandemic fraud and identity theft, together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”

    “Tracey Dotson and his co-conspirator defrauded multiple state workforce agencies by using stolen identities to obtain unemployment insurance (UI) benefits. As a result, he stole vital taxpayer resources intended for unemployed American workers in dire need of UI benefits. Today’s sentencing affirms the Office of Inspector General’s commitment to work with our law enforcement partners to investigate and bring to justice those who exploit this critical benefit program,” said Megan Howell, Acting Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.

    This case was prosecuted by Assistant United States Attorneys Carl D. Gilmer-Hill and Jessica A. Nathan. The investigation was conducted jointly by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, and Department of Labor, Office of Inspector General.

    MIL Security OSI –

  • MIL-OSI Security: Financial TV News Analyst-Turned-Fugitive Agrees to Plead Guilty to Federal Charge for Conning Investors Out of Millions of Dollars

    Source: Office of United States Attorneys

    LOS ANGELES – A former San Gabriel Valley resident – who was a frequent guest on financial television news programs then became a fugitive from justice after being accused of scamming investors – has agreed to plead guilty to defrauding his victims out of at least $2.7 million, the Justice Department announced today.

    James Arthur McDonald Jr., 53, formerly of Arcadia, has agreed to plead guilty to one count of securities fraud, a felony that carries a statutory maximum sentence of 20 years in federal prison.

    McDonald has been in federal custody since June 2024, when he was arrested in a residence in Port Orchard, Washington, after being a fugitive since November 2021, when he failed to appear before the United States Securities and Exchange Commission (SEC) to testify after allegations arose that he had defrauded investors. 

    According to his plea agreement, at McDonald’s Washington state hideout, law enforcement found, among other things, a fake Washington, D.C., driver’s license bearing McDonald’s photograph and the name “Brian Thomas.”

    McDonald was the CEO and chief investment officer of two companies headquartered in Los Angeles: Hercules Investments LLC and Index Strategy Advisors Inc. (ISA). He frequently appeared as an analyst on the CNBC financial television news network.

    In late 2020, McDonald lost tens of millions of dollars of Hercules client money after adopting a risky short position that effectively bet against the health of the United States economy in the aftermath of the U.S. presidential election. McDonald projected that the COVID-19 pandemic and the election would result in major selloffs that would cause the stock market to drop. When the market decline didn’t occur, Hercules clients lost between $30 million and $40 million. By December 2020, Hercules clients were complaining to company employees about the losses in their accounts, according to court documents.

    In early 2021, McDonald solicited millions of dollars’ worth of funds from investors in the form of a purported capital raise for Hercules but misrepresented how the funds would be used and failed to disclose the massive losses Hercules previously sustained. As part of the capital raise, McDonald obtained $675,000 in investment funds from one victim group on March 9, 2021. He misappropriated most of those funds in various ways, including spending $174,610 at a Porsche dealership and transferring $109,512 to the landlord of a home McDonald was renting in Arcadia.

    McDonald also defrauded clients of ISA, his other firm, using less than half of the approximately $3.6 million he raised for trading purposes. Instead, McDonald frequently commingled ISA client funds with funds from his personal bank account, which he used to purchase luxury cars and to pay rent on his home, personal credit card charges, and Hercules operating expenses and to make Ponzi-like payments to ISA clients — that is, paying some ISA clients using funds from other clients. 

    In total, McDonald caused losses of between approximately $2,745,892 and approximately $3,025,892, according to his plea agreement.

    The FBI and IRS Criminal Investigation are investigating this matter.

    In September 2022, the SEC filed a civil complaint charging McDonald and Hercules with violations of federal securities law. In April 2024, United States District Judge Percy Anderson found McDonald and Hercules liable and ordered that they pay several million dollars in disgorgement and civil penalties.

    Assistant United States Attorneys Alexander B. Schwab and Nisha Chandran of the Corporate and Securities Fraud Strike Force are prosecuting this case.

    MIL Security OSI –

  • MIL-OSI: “Is mediocrity good enough?” – ZimCal asks Medallion Financial stockholders

    Source: GlobeNewswire (MIL-OSI)

    • 4Q24 Medallion Bank earnings continue disturbing downward trend
    • Consolidated Medallion Financial Corp earnings have not yet been released
    • Due to lower Bank earnings, Medallion Financial may struggle to pay dividends, operating expenses and a possible SEC penalty with existing cash
    • Medallion Financial and Andrew Murstein face a looming SEC settlement
    • Despite predictable down-trending results, executives were paid record compensation in 2023
    • ZimCal believes that Medallion Financial Corp has huge upside with the right governance and leadership
    • ZimCal previously provided MFIN with versions of its “5 Steps to Improvement” plan that anticipated current risks and negative trends and urges management to take decisive, proactive action

    Full analysis with graphs can be accessed here.

    MINNEAPOLIS, Feb. 19, 2025 (GLOBE NEWSWIRE) —

    Medallion Bank (the “Bank”) recently released its 4Q24 earnings. Medallion Financial Corp (“MFIN” or the “Company”) will be releasing consolidated earnings shortly, along with important updates on a possible SEC settlement involving fraud and touting charges against Andrew Murstein, President and Board Member of MFIN, that has cost shareholders an estimated $8 million in legal fees to defend.

    The Bank represents approximately 95%i of MFIN’s consolidated revenues. On almost all metrics, financial performance is down. Frustratingly, MFIN has lagged in areas that ZimCal Asset Management LLC (“ZimCal”, “We”, “Our”) predicted almost 16 months ago.

    ZimCal remains one of MFIN’s largest investors and has been invested for 4 years. Had MFIN and its board listened to us in 2023 and taken proactive steps to mitigate risk, enhance its operations, resolve the SEC complaint and numerous other detailed suggestions ZimCal offered to increase enterprise value, we believe MFIN would be trading at a substantial premium to its current value.  

    Against the backdrop of healthy consumer data, and booming stock and credit markets, we ask MFIN stockholders – are you happy with such glaring underperformance or do you think the Company can do better? Are you satisfied with MFIN’s President being sued by the SEC for alleged fraud and yet earning tens of millions in compensation even as MFIN’s stock is down, and its unadjusted and core returns are at their worst in over 4 yearsii?  

    We will withhold our full analysis until MFIN’s earnings are released, but we note a few key points about the Bank’s earnings – divided into positives and negatives.

    Full analysis with graphs can be accessed here.

    POSITIVES IN 4Q24 MEDALLION BANK EARNINGS

    1. Asset growth is flat
    If this is driven by a reluctance on the Bank’s part to lower underwriting standards simply to increase growth this is positive. Chasing returns by recklessly opening the credit box would be a mistake. If this is driven by constraints on lending because the Bank’s capital ratio of 15.6% is just above the 15% mandatory minimum, then this is problematic. For similar reasons, we support a robust loan origination and sale or securitization strategy to augment interest income, but we think the 1Q25 loan sales are problematic if they are driven by an effort to juice near-term earnings and avoid breaching the Bank’s minimum leverage ratio.

    2. Allowance for credit losses (ACL) has been increased to cover future losses, driven by Recreation ACL
    ACL for Recreation loans specifically increased to 5.00% at 4Q24 from 4.31% at 4Q23. Since 2024, charge-offs have also increased, indicating an effort by the Bank to better recognize the threats of future charge-offs and provision accordingly. We felt that the Bank under-provisioned in the last crisis to artificially boost earnings; we are supportive of their decision to avoid doing so now.

    NEGATIVES IN 4Q24 MEDALLION BANK EARNINGS

    1. Consumer credit quality continues to decline, driven by Recreation
    Recreation loans made up ~65% of total loans at 4Q24. Subprime Recreation was an estimated 35% of Recreation loans or ~$550 million at 4Q24. This borrower demographic will be more stressed by higher for longer rates, inflation and a potentially softening labor market. Despite the Bank’s increased loss allowances, we remain concerned about quarterly consumer charge-offs, which are now at their highest since 2010 and well above the most recent peak in 2019 (Figure 1 below or here). We are concerned that this could get worse. We have beaten our head against the wall for 16 months urging MFIN to proactively mitigate these risks (see letter here from October 2023) but without success.

    2. Net Interest Margin (NIM) continues to be pressured by expensive funding costs
    Quarterly NIM declined to 8.28% at 4Q24 from 8.75% a year ago at 4Q23. This is the lowest quarterly NIM since 2019 when we started tracking this for the Bank. This was mainly driven by higher funding costs and an inability to materially raise loan yields. As predicted, the Bank’s cost of funds (almost entirely CD deposits) continued to trend higher and reached an estimated 3.95% at 4Q24iii. We have noted that a Bank CD portfolio with a 1.8 year weighted average maturity and 36% of CDs maturing in 2024 as of 12/31/23iv, would have rates that would lag benchmark rate increases on the way up (boosting NIM) but would also lag benchmarks on the way down (hurting NIM). We have tracked brokered CD rates through one of the largest platforms since September 2024 and note that while short-term CD (less than 1-year) rates are down, 1, 2 and 5-year CD rates are UP since 09/30/24 and 12/31/24. (See Figure 2 below or here). This shows that NIM pressure will persist.

    3. Earnings have declined YoY despite being boosted by a “noisy” allowance release
    Core net earnings available to common stockholders were $10.3 million in 4Q24 after eliminating $3.9 million in provision reversals and $900,000 in non-core Taxi Medallion recoveries (adjustment to earnings is after taxes). Unadjusted earnings were $14 million. If the Bank were a standalone entity, this would be mediocre but manageable. But when you pile on high holding company expenses and debt service, this is unsustainable. The Bank paid a dividend of $6MM to the holding company in 4Q24 leaving only $4.3MM in core earnings to boost capital levels and fund future loan growth. As we noted in our last earnings commentary, quarterly earnings for MFIN in 2024 are the lowest they have been on an unadjusted and adjusted basis since the last stages of the Taxi Medallion implosion in 2020. Bank ROAA and core ROAA (excluding non-core Taxi Medallion recoveries) we calculated at 2.50% and 1.65% respectively at 4Q24. This core ROAA is dangerously low for a consumer lender and leaves little room for error. Lowered earnings are one of the reasons the Bank’s parent company (MFIN) had to borrow $10 million in 2024 to pay $9.5 million in dividends and share buybacks through 3Q24. The Bank continues to “carry” the weight of its parent, which is reliant on the Bank for upstreamed dividends to fund its expenses and pay its expensive debt.

    We believe that Medallion Bank (and MFIN) have tremendous upside but only with the right Board and leadership. We encourage investors to review www.restoretheshine.com for details on the 2024 proxy contest to replace 2 incumbent directors, where, despite insider ownership that gave MFIN a 44% leadv, ZimCal still earned 22% of stockholder votes with over 1 in 4 stockholders voting against MFIN’s compensation plan. We believe that MFIN’s board of directors (the “Board”) has shown weak governance and is beholden to the Murstein family rather than to all stockholdersvi. We also believe that MFIN’s management team is overpaid and must be improvedvii. We believe that it is ludicrous to pay MFIN’s President $6.5 million or 19% of MFIN’s core earningsviii at FYE23, significantly higher than all but one of MFIN’s self-selected peersix and comparable to the highest paid Wall Street hedge fund managers. Until we see positive changes, we will work to hold MFIN’s Board and management team accountable and believe the potential for the Company is extraordinary.

    Visit www.restoretheshine.com for more information or read our 5 Steps to Improvement.
    ZimCal will issue ongoing press releases with updates and details on its plan to “Restore the Shine” to Medallion Financial Corp.

    About ZimCal Asset Management, LLC
    ZimCal Asset Management is an alternative investment firm focused primarily on niche, illiquid and complex credit investment opportunities.

    ZimCal Asset Management partners with both healthy and distressed borrowers or issuers and provides customized solutions that meet their unique needs and circumstances. Over the last 15 years, the founder of ZimCal Asset Management has developed a specialization investing in FDIC-insured institutions and has partnered with over 120 bank lenders through investments on both sides of the balance sheet.

    ZimCal usually works in collaboration with bank leadership teams if required, but on very rare occasions, must insert itself more forcefully if it believes that leadership is underwhelming and threatens to undermine stakeholder investments. ZimCal prides itself on performing extensive, rigorous financial analysis and research to fully understand the risks of any investment.

    Important Information and Disclaimer
    ZimCal Asset Management, LLC, and its affiliates BIMIZCI Fund, LLC, Warnke Investments LLC and Stephen Hodges (collectively, “ZimCal” or “we”), are, directly or indirectly, owners of securities of Medallion Financial Corp. (the “Company”). ZimCal currently has combined investment exposure of $15,604,000 million to the Company, comprised of $15 million par value of Trust Preferred Securities (backed by the Company’s issued debt), and 76,122 shares of the Company. We are not currently engaged in any solicitation of proxies from stockholders of the Company. ZimCal intends to monitor the performance and corporate governance of the Company, as well as the actions of the Company’s management and board. As ZimCal deems necessary, ZimCal will assert its stockholder rights.

    Except as otherwise set forth herein, the views expressed reflect ZimCal’s opinions and are based on publicly available information with respect to the Company. We recognize that there may be confidential information in the possession of the Company that could lead it or others to disagree with our conclusions. ZimCal reserves the right to change any of its opinions expressed herein at any time as it deems appropriate and disclaims any obligation to notify the market or any other party of any such change, except as required by law. We disclaim any obligation to update the information or opinions contained herein.

    The information herein is being provided merely as information and is not intended to be, nor should it be construed as, an offer to sell or a solicitation of an offer to buy any security.

    Some of the information herein may contain forward-looking statements. All statements contained herein that are not clearly historical in nature or that depend on future events are forward-looking. The words “anticipate,” “believe,” “expect,” “potential,” “could,” “opportunity,” “estimate,” “plan,” and similar expressions are generally intended to identify forward-looking statements. There can be no assurance that any forward-looking statements will prove to be accurate and therefore actual results could differ materially from those set forth in, contemplated by, or underlying these forward-looking statements. In light of the significant uncertainties inherent in forward-looking statements, the inclusion of such information should not be regarded as a representation as to future results or that the objectives and strategic initiatives expressed or implied by such forward-looking statements will be achieved.

    i Source: MFIN 10K/Qs
    ii See www.restoretheshine.com and MFIN 10K/10Qs
    iii Source: Medallion Bank 4Q24 8K. This is based on the Bank’s annual average CD rate of 3.57% at 4Q24.
    iv Source; MFIN 2024 10K
    v Source: MFIN DEF14A. Insider ownership derived from recent disclosures by MFIN. Insiders owned ~7 million shares and total votes cast were 16 million. We have assumed that all insiders voted and voted against ZimCal. See here for full SEC filing on stockholder meeting voting results.
    vi See www.restoretheshine.com for why we believe the Board is not fulfilling its fiduciary responsibilities to stockholders. Also see Section 1 and Section 2 of the plan for further examples.
    vii See www.restoretheshine.com for why we believe Management, specifically Andrew Murstein, is overpaid relative to bank peers, proxy peers and in terms of absolute performance. Also see Section 1 of the plan for further examples.
    viii See www.restoretheshine.com for comparisons to larger, top performing banks and proxy peers selected by MFIN
    ix See viii above.

    The MIL Network –

  • MIL-OSI Global: Canada’s cuts to newcomer English language programs puts communities’ well-being at risk

    Source: The Conversation – Canada – By Natalia Balyasnikova, Assistant Professor of Adult Education, York University, Canada

    The impact of of Immigration Refugees and Citizenship Canada’s 2024-25 department plan, released about a year ago, are only now starting to become clear in cities across Canada.

    Whether it’s colleges in Vancouver, Lethbridge or Toronto, many federally funded English-language training programs are experiencing crushing funding cuts resulting in closures, layoffs and fewer classes available.



    Read more:
    To really narrow digital divides, Canada should consistently fund adult education programs

    At risk is the future of Language Instruction for Newcomers to Canada (LINC) — a federally funded program that has been running since 1992.

    Instead of further cutting funding to LINC, the government should expand the programming in recognition that learning a language is about much more than acquiring a discrete set of skills.

    Importance of language programs

    The LINC program has 60 assessment sites across the country and has served roughly 50,000-60,000 learners per year.

    Language learning programs expecting to receive the most significant cuts will be those focused on building employment skills and preparing learners for higher education.

    Rather than the reducing barriers to newcomers’ employment as promised, the changes will make it more difficult for newcomers to access the language learning programs needed for work and life.

    Immigration is central

    The IRCC states “immigration is central to our future” and that its sustainable development strategy remains committed to addressing the barriers to employment and social belonging that newcomers face.

    While not without critique, LINC classes have an important function beyond helping newcomers acquire language skills.

    Through these programs, newcomers build confidence to be able to advocate for themselves, develop a sense of citizenship, contribute to values of equality, respect and rights and access resources essential for life in Canada. All of these contribute to one’s sense of belonging.

    Addressing connection, community

    There is strong evidence that learning in groups reduces isolation, loneliness and feelings of unbelonging, and increases sense of community and connection for immigrants.

    Research shows that learning activities that have goals beyond developing practical language skills such as drama and poetry are opportunities to build a sense of community, empowerment and belonging to facilitate intercultural dialogue.

    They also contribute to the development of learners’ resilience and leadership.



    Read more:
    Theatre shows how the art of inclusion can help build a better Canada

    A vision for sustainability

    Canada is often portrayed as a tolerant and welcoming country, a stronghold of multiculturalism and multilingualism. Canada has made promises to build a nation that is economically, socially and culturally prosperous.

    To make this promise sustainable, it is essential to continue addressing the complex needs of newcomers, especially by ensuring access to inclusive and quality education throughout their lives.

    IRCC’s choice to cut funding is influenced by a short-term economic model that seems to forget that nearly 20 per cent of Canada’s population are new permanent residents.

    These residents should have access to learning offerings and intercultural socialization opportunities. These would ideally include offerings centred on critical conversations, discussions of shared experiences, visions for life in Canada and building allyships between new immigrants and long-time citizens. Such learning, socialization and relationship-building opportunities could be made accessible through LINC.

    Social stratification concerns

    By reducing funding available for English-language classes, the federal government is denying thousands of people their fundamental right to education. The current budget cuts will inevitably contribute to growing social stratification and increase the challenges faced by the already overwhelmed immigration and educational sectors.

    A recent statement by TESL Ontario, the certification body for educators who teach English as another language in Ontario, urges the Canadian government to consider impacts on language teachers who face precarious employment and low pay, a concern shared by unions across the public sector.

    Language learning programs are foundational to ensuring sustainable settlement in Canada. A truly sustainable development strategy would see the continued funding of English-language programs as essential to ensuring the continued economic and societal well-being of all people living in Canada.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. Canada’s cuts to newcomer English language programs puts communities’ well-being at risk – https://theconversation.com/canadas-cuts-to-newcomer-english-language-programs-puts-communities-well-being-at-risk-249103

    MIL OSI – Global Reports –

  • MIL-Evening Report: Collateral damage: how the war on ‘woke banking’ could backfire on New Zealand

    Source: The Conversation (Au and NZ) – By Martien Lubberink, Associate Professor of Accounting and Capital, Te Herenga Waka — Victoria University of Wellington

    Getty Images

    It would be hard to think of an industry less obviously “woke” than banking, but that’s how coalition partner NZ First has characterised certain practices within the finance sector.

    The party’s tortuously titled Financial Markets (Conduct of Institutions) Amendment (Duty to Provide) Amendment Bill – dubbed the “woke banking” bill – takes aim at efforts to build sustainability concepts into investment practices.

    Known as the “environmental, social and governance (ESG) framework”, such policies are designed to guide how a bank manages risks and opportunities beyond basic profit and loss.

    NZ First’s bill seeks to ensure no New Zealand business can be denied banking services unless the decision is grounded in law. Its proponents argue it will prevent ESG standards from perpetuating “woke ideology” in the banking sector, driven by what they describe as “unelected, globalist, climate radicals”.

    Prime Minister Christopher Luxon has supported the bill’s aims, recently calling it “utterly unacceptable” that petrol stations and mines were being denied banking services due to banks’ commitment to climate change goals.

    Coalition partner ACT similarly called for the end of “banking wokery”. And last week the Finance and Expenditure Committee announced an extension of its inquiry into banking competition to include, among other issues, the “debanking of legitimate sectors”.

    Risk management isn’t ‘woke’

    Much of this is largely politically performative, however. A broader international trend has for, some time now, seen financial institutions increasingly aligning their lending practices with ESG criteria.

    In Europe, for example, data from the European Banking Authority show banks have halved their exposures to mining firms since 2020, reflecting that global shift towards sustainability and risk management.

    This is about more than “woke” agendas and is unlikely to reverse, given current global efforts to decarbonise. Encouraging or forcing banks to invest in carbon-emitting industries introduces financial risk. If those assets lose value, it constitutes irresponsible lending.

    While the current US administration may be embracing fossil fuel industries, consumer and investor demand for sustainable policies is still strong. When banks such as the BNZ prepare for an orderly exit from declining industries, they are simply engaging in risk management.

    Banks also manage regulatory risk. While the current government may enact the bill and force banks to invest in carbon-emitting industries, a future government could reverse that policy. This undermines long-term investment strategies.

    Regulatory uncertainty

    There is also a danger New Zealand is perceived internationally as not being serious about business and investment. In particular, the prime minister’s pressure on bank lending policies cuts across his stated commitment to the Paris Agreement on climate change.

    The resulting regulatory uncertainty is counterproductive: it potentially deters international investors at a time when the government aims to attract foreign investment.

    Ultimately, if bank lending policies lead to poor outcomes, it is ordinary New Zealanders who will likely bear the costs through higher interest rates or even bank failures.

    In its eagerness to boost lending, the government is also encroaching on the Reserve Bank’s territory by directing it to prioritise competition, including reviewing risk weightings and capital thresholds (designed to build buffers against failure) for new entrants to the market.

    But history shows that before the 2007-2009 global financial crisis, similar bank-friendly initiatives – often labelled “principles-based” – led to bad debt accumulation and increased economic vulnerability.

    Institutional failure

    The shift towards what we might call populist banking policies is not confined to New Zealand. Globally, there is a declining political interest in financial stability and prudential regulation.

    For example, agreement on the “Basel III” reforms – developed in response to the global financial crisis and aimed at strengthening the regulation, supervision and risk management of banks – will likely be delayed by the Trump administration.

    This will have ripple effects in Europe, Britain and the rest of the world, signalling a softening of global capital requirements. As Erik Thedéen, chair of the Basel Committee on Banking Supervision, described this:

    Shaving off a few basis points of capital will not unlock a wave of new lending, but it will weaken your resilience. More generally, being well capitalised is a competitive advantage for banks and their shareholders. It ensures they can continue to grow and invest in profitable projects across the financial cycle.

    Politicians need to be very careful when interfering with bank supervision policies in general. They risk undermining the independence of crucial institutions, with real consequences.

    Last year’s Nobel Prize for economics went to Daron Acemoglu, Simon Johnson and James A. Robinson for their “studies of how institutions are formed and affect prosperity”. Their warning is that institutional failure can lead to the failure of nations.

    A resilient banking system

    While New Zealand isn’t in such imminent danger, political leaders need to be aware that populist appeals to certain voter segments can lead to policies that undermine the banking system and economic growth, and disproportionately affect the most vulnerable.

    As Stelios Haji-Ioannou, founder of low-cost airline EasyJet, once remarked: “if you think safety is expensive, try an accident”.

    New Zealand needs to focus on policies that promote long-term financial stability, enhance productivity and sustainable economic growth. Globally, there needs to be a recommitment to prudential regulation to ensure the lessons of the global financial crisis are not forgotten.

    Only by doing so can we build a resilient banking system that serves the interests of all, not just a privileged few.

    Martien Lubberink does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. Collateral damage: how the war on ‘woke banking’ could backfire on New Zealand – https://theconversation.com/collateral-damage-how-the-war-on-woke-banking-could-backfire-on-new-zealand-249930

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Can you afford a private school? Average fees for Year 12 are at least $15,000

    Source: The Conversation (Au and NZ) – By Emma Rowe, Associate Professor in Education, Deakin University

    Monkey Business Images/ Shutterstock

    This week, updated figures once again showed an increasing number of Australian families are choosing to send their children to private schools.

    Just over 63% of Australian students are enrolled in government schools. Almost 20% are in Catholic schools and almost 17% go to independent schools, according to Australian Bureau of Statistics.

    How much is it costing parents?

    While headlines often focus on the most expensive schools, there is a huge range of private schools operating in Australia.

    In our new analysis, which is not peer-reviewed, we looked at private school fees in New South Wales and Victoria (the two most populous states).



    Read more:
    More Australian families are choosing private schools – we need to understand why

    Fees for Year 12

    We looked only at independent schools. The non-government school sector is made up of Catholic and independent schools, but Catholic private schools typically charge lower fees and this can skew the data on the sector.

    The tuition fees we refer to are based on what is publicly available through each school’s website.

    We collected all available data for Year 12 tuition fees in every independent school in NSW and Victoria in 2021 and 2024. We chose to focus on Year 12, as this is typically the most expensive year at school.

    • In NSW, we found fee information for 369 schools (77% of independent schools).

    • In Victoria we found fee information for 138 schools (92% of independent schools).

    Private school fees don’t necessarily include other expenses such as music or sport.
    DGLimages/Shutterstock



    Read more:
    Are public schools really ‘free’? Families can pay hundreds of dollars in voluntary fees

    What is the average tuition fee?

    In 2024, the average tuition fee for a Year 12 student in NSW was A$15,674 and in Victoria it was $20,923.

    This is in keeping with other analyses showing Victoria is the most expensive state for school fees in Australia.

    These figures suggest while many schools are far from the headlines of “$50,000 fees”, many families are still paying substantial amounts for a private education – particularly if they have more than one child.

    However, there were significant variations in tuition fees between schools. In NSW, 12% of schools in our sample charged under $5,000 per year per student. In Victoria, 9% charged less than $5,000.

    One alternative school in NSW charged just $100 per student per year. This is less than parents typically pay out of their own pocket at the average public school.

    This shows us there some cheaper options available, depending on where families live although they are certainly not the majority.

    At the other end of the sample, The Scots College in NSW and Geelong Grammar School in Victoria charged the highest tuition fees in their respective states for 2024. Geelong Grammar charged $49,720 for Year 12; Scots charged $46,920.

    There are other costs

    While we only looked at tuition fees, families might also have to pay levies for infrastructure or technology.

    There are also extra charges for activities such as camps, excursions and incursions, as well as fees for uniforms, school buses, and special subjects such as music and sport.

    For the majority of independent schools, parents are asked to pay to enrol or go on the waiting list. The average application fee in Victoria was $156 and in NSW was $197. These fees widely differed between schools, ranging from zero to $650.

    How much are fees growing?

    Fees keep climbing each year, and media reports tell us some school fees have already increased for 2025.

    Our analysis found in Victoria, tuition fees in independent schools increased by an average of 15% from 2021 to 2024 – roughly 3.75% each year. In NSW, fees increased by 13% from 2021 to 2024, or about 3.25% per year.

    In media coverage, individual schools have blamed fee increases on inflation, “operational costs”, rising staff costs, and a drop in federal funding.

    Will fees keep rising?

    In some OECD countries, if private schools receive government funding, there are conditions placed on what they can charge for tuition.

    This is not the case in Australia, where the system is unregulated and uncapped.

    Unless this policy approach changes, we can expect private schools to keep increasing fees, as long as there are families willing and able to pay them.

    Emma Rowe receives funding from the Australian Research Council.

    Diana Langmead does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. Can you afford a private school? Average fees for Year 12 are at least $15,000 – https://theconversation.com/can-you-afford-a-private-school-average-fees-for-year-12-are-at-least-15-000-248769

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Two in five scientists report harassment and intimidation. Often, the perpetrators are inside the institution

    Source: The Conversation (Au and NZ) – By Robert Hales, Director, Centre for Sustainable Enterprise, Griffith University

    Roman Samborskyi/Shutterstock

    The goal of science is to uncover truths and create new knowledge. But this is not always welcome. Increasingly, scientific findings are being attacked or downplayed. And scientists themselves face intimidation or harassment.

    In our global study of more than 2,000 scientists across six areas of science, two-fifths (41%) of respondents had, as a result of their work, been harassed or intimidated at least once over a five-year period.

    Intimidation efforts included online abuse, physical threats, and threats to budgets or employment. Harassment, while personal, could be meted out by superiors, colleagues or outsiders. Some scientists felt their leaders had thrown them under the bus to protect the institution’s reputation.

    Who’s doing the intimidation? Strikingly, a majority of cases of intimidation and harassment actually came from inside the institution for most fields. That is, it was perpetrated by senior colleagues or managers. But for climate scientists, most intimidation efforts came from outside.

    Intimidation of scientists doesn’t happen in a vacuum. In recent years, there has been a rise in populist leaders who pour scorn on “elites” and evidence. Scientific issues are increasingly politicised. Disinformation is rampant. This atmosphere adds to the pressure faced by scientists, especially those working in politically sensitive areas such as climate science or COVID.

    Harassment and intimidation can silence or isolate scientists.
    Hayk_Shalunts/Shutterstock

    What did we find?

    We used an online database of scientists to find and contact experts publishing in six fields: climate science, medical health, humanities and social science, food and plant science, astronomy, and other STEM areas.

    More than 2,000 responded to our survey on whether they had experienced various types of intimidation or harassment. We asked respondents for more detail on the perpetrators, what triggered the incident, and what effect it had on them.

    Many respondents had a clear view as to what the intimidation or harassment was meant to do. The motivations of perpetrators varied greatly. But the most common reasons were to damage their reputation, to stop them from publishing certain types of research, or to “put me in my place”.

    Specific fields of science were more prone to harassment and intimidation – in particular climate science, and humanities and social science.

    Among those scientists who had been intimidated, climate scientists reported online abuse three times more often than astronomers. Climate science is politically charged, because climate change is clearly linked to pollution from some of the world’s largest industries – oil, gas and coal. Astronomy is not. Half of the climate scientist respondents experiencing intimidation saw the bad behaviour as a way to discourage them from undertaking specific research and speaking about it.

    Researchers from humanities and social sciences faced similar levels of online abuse to climate scientists.

    When it came to personal harassment, there was a clear gender dimension. Among those who reported experiencing harassment, female scientists were more than four times more likely to report “unwelcome or inappropriate behaviour of a sexual nature” than their male counterparts. Women were affected almost twice as much as men by non-sexual forms of personal harassment.

    Our findings follow earlier research finding similar rates of intimidation. For instance, a 2021 survey of 321 scientists working on COVID-19 found 15% had received death threats and 22% received threats of sexual violence.

    Intimidation and harassment are damaging

    The consequences of intimidation are profound and far-reaching. Many scientists told us the experience had caused lasting damage, whether to wellbeing, career prospects or research activities.

    More than 40% of those affected said their career prospects had worsened following incidents of harassment. Just over a third (34%) reported a decline in their desire to work in science. Scientists who experienced intimidation often cut back their collaboration with colleagues (35%), leaving them more isolated.

    Many of our respondents described flow-on effects such as decreased access to funding (35% of respondents) and less public communication from their institution about their work (23%).

    Scientists targeted with multiple types of harassment reported very damaging effects, from difficulty finding their next job to poor mental health.

    Intimidation slows progress

    Intimidation and harassment have a chilling effect on science. This, in turn, could hinder progress on crucial issues such as climate change, public health and technological advancements.

    The disproportionate impact on women and researchers in politically sensitive fields threatens to undermine diversity and inclusivity in science.

    Without targeted interventions, women in science may continue to suffer disproportionate levels of harassment and intimidation. This will have long-term implications for gender diversity in scientific leadership and the direction of research in various fields.

    In the United States, the Trump administration’s withdrawals from the Paris climate agreement and the World Health Organization are likely to further embolden anti-science movements. Many American scientific institutions are engaged in anticipatory obedience of the Trump administration’s demands that diversity and anti-discrimination programs be abolished, or climate change stop being mentioned. Many even go beyond what is explicitly sought.

    Female scientists are targeted in different ways.
    PeopleImages.com – Yuri A/Shutterstock

    What can be done?

    Science and academia is often seen as a bastion of free inquiry and open discussion. One of our most surprising findings was how common intimidation was within scientific institutions.

    The key to beating intimidation is organisational support and clear strategies, not obedience. These include:

    • genuine commitment to institutional policies protecting scientists from both internal and external intimidation

    • formal, well-resourced support systems for researchers facing harassment or pressure (not the HR office)

    • programs to increase public understanding of the scientific process to build trust and resilience to misinformation

    • boosting international collaboration between scientists and policymakers to ensure resilience against country-specific efforts to undermine science

    • educating the public on the importance of scientific independence and of fostering respectful dialogue around contentious topics.

    As populist movements gain traction in many countries, scientists working on controversial issues will face heightened scrutiny – and potentially more intimidation.

    Climate science is likely to remain a particularly contested field. As the damage wrought by climate change becomes more and more apparent, it will get even more contentious.

    Over the last few centuries, science has produced breakthroughs in many areas. But the integrity of science is not guaranteed. Harassment and intimidation from both inside and outside institutions has a very real effect on scientists.

    The future of evidence-based decision-making and ability to tackle global challenges depends on fostering an environment where scientists can work free from fear and undue pressure.

    Robert Hale receives funding from the Australian Research Council.

    David Peetz undertook research over many years with occasional financial support from governments from both sides of politics, employers and unions. He has been and is involved in several Australian Research Council-funded projects, including this one.

    Ian Lowe was president of the Australian Conservation Foundation from 2004 to 2014.

    Carolyn Troup and Georgina Murray do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. Two in five scientists report harassment and intimidation. Often, the perpetrators are inside the institution – https://theconversation.com/two-in-five-scientists-report-harassment-and-intimidation-often-the-perpetrators-are-inside-the-institution-248013

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: More people are asking generative AI questions about their health. But the wrong answer can be risky

    Source: The Conversation (Au and NZ) – By Julie Ayre, Post Doctoral Research Fellow, Sydney Health Literacy Lab, University of Sydney

    Shvets Production/Pexels

    More people are turning to generative artificial intelligence (AI) to help them in their daily and professional lives. ChatGPT is one of the most well-known and widely available generative AI tools. It gives tailored, plausible answers to any question for free.

    There is so much potential for generative AI tools to help people learn about their health. But the answers are not always correct. Relying solely on ChatGPT for health advice can be risky and cause unnecessary concern.

    Generative AI is still a relatively new technology, and is constantly changing. Our new study provides the first Australian data about who is using ChatGPT to answer health questions, for what purposes.

    The results can help tell people how to use this new technology for their health, and the new skills needed to use it safely – in other words, to build “AI health literacy”.

    Who uses ChatGPT for health? What do they ask?

    In June 2024 we asked a nationally representative sample of more than 2,000 Australians if they had used ChatGPT to answer health questions.

    One in ten (9.9%) had asked ChatGPT a health question in the first half of 2024.

    On average they reported that they “somewhat” trusted ChatGPT (3.1 out of 5).

    We also found the proportion of people using ChatGPT for health was higher for people who had low health literacy, were born in a non-English speaking country, or spoke another language at home.

    This suggests ChatGPT may be supporting people who find it hard to engage with traditional forms of health information in Australia.

    One in ten Australians asked ChatGPT a health question in the first half of last year.
    Kampus Productions/Pexels

    The most common questions that people asked ChatGPT related to:

    • learning about a health condition (48%)
    • finding out what symptoms mean (37%)
    • asking about actions (36%)
    • or understanding medical terms (35%).

    More than half (61%) had asked at least one question that would usually require clinical advice. We classified these questions as “riskier”. Asking ChatGPT what your symptoms mean can give you a rough idea, but cannot substitute clinical advice.

    People who were born in a non-English speaking country or who spoke another language at home were more likely to ask these types of questions.

    Why does this matter?

    The number of people using generative AI for health information is likely to grow. In our study, 39% of people who had not yet used ChatGPT for health would consider doing so in the next six months.

    The overall number of people using generative AI tools for health information is even higher if we consider other tools such as Google Gemini, Microsoft Copilot, and Meta AI.

    Notably, in our study we saw that people from culturally and linguistically diverse communities may be more likely to use ChatGPT for health information.

    If they were asking ChatGPT to translate health information, this adds another layer of complexity. Generative AI tools are generally less accurate in other languages.

    We need investment in services (whether human or machine) to ensure speaking another language is not a barrier to high quality health information.

    What does ‘AI health literacy’ look like?

    Generative AI is here to stay, presenting both opportunities and risks to people who use it for health information.

    On the one hand, this technology appeals to people who already face significant barriers accessing health care and health information. One of its key benefits is its ability to instantly provide health information that is easy to understand.

    A recent review of studies showed generative AI tools are increasingly capable of answering general health questions using plain language, although they were less accurate for complex health topics.

    This has clear benefits as most health information is written at a level that is too complex for the general population, including during the pandemic.

    On the other hand, people are turning to general-purpose AI tools for health advice. This is riskier for questions that require clinical judgment and a broader understanding of the patient.

    There have already been case studies showing the dangers of using general purpose AI tools to decide whether to go to hospital or not.

    Where else can you go for this information?

    We need to help people think carefully about the kinds of questions they’re asking AI tools, and connect them with appropriate services that can answer these riskier questions.

    Organisations such as HealthDirect provide a national free helpline where you can speak with a registered nurse about whether to go to hospital or see a doctor. HealthDirect also provides an online SymptomChecker tool to help you figure out your next steps.

    While many Australian health agencies are developing AI policies, most are focused on how health services and staff engage with this technology.

    We urgently need to equip our community with AI health literacy skills. This need will grow as more people use AI tools for health, and it will also change as the AI tools evolve.

    Julie Ayre receives funding from the National Health and Medical Research Council (APP2017278). The Health Literacy Editor is a research tool owned by the University of Sydney. It is sublicensed to Health Literacy Solutions PTY Ltd to enable wider public use. Julie Ayre (study author) is a co-director of Health Literacy Solutions PTY Ltd. She takes no personal income from Health Literacy Solutions PTY Ltd or the Health Literacy Editor.

    Kirsten McCaffery receives funding from the National Health and Medical Research Council (APP2016719). The Health Literacy Editor is a research tool owned by the University of Sydney. It is sub-licensed to Health Literacy Solutions PTY Ltd to enable wider public use. Kirsten McCaffery is a co-director of Health Literacy Solutions PTY Ltd. She takes no personal income from Health Literacy Solutions PTY Ltd or the Health Literacy Editor.

    Erin Cvejic does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. More people are asking generative AI questions about their health. But the wrong answer can be risky – https://theconversation.com/more-people-are-asking-generative-ai-questions-about-their-health-but-the-wrong-answer-can-be-risky-249383

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: The prime minister earns $607,000 a year. Why does his top public servant earn more than $1 million?

    Source: The Conversation (Au and NZ) – By Chris Wallace, Professor, School of Politics Economics & Society, Faculty of Business Government & Law, University of Canberra

    Tasmanian Senator Jacqui Lambie represents the lowest-income Australians, with median weekly earnings of $1,208 a week. In the Australian Capital Territory, where the nation’s highest median weekly earners live, including the brains trust of the Australian Public Service, it’s $1,688 a week – 40% higher.

    As a federal politician, Lambie shuttles between these two starkly different earnings worlds and is not happy about the disparity.

    Of course, Lambie herself is on a reasonable wicket. Parliamentarians’ base salaries are $233,660 a year, according to an Instagram post she made this month drawing attention to the issue.

    At a time of considerable financial stress for Australians hit by the combination of inflation, high interest rates and housing shortages, Lambie struck a nerve with her post, which listed a range of public roles drawing big six figure-plus annual salaries.

    In doing so, Lambie underlined the far higher salaries paid to senior public servants compared to the ministers to whom they’re responsible.

    Department of Prime Minister and Cabinet Secretary Glyn Davis earns $1,011,410 a year, 66% more than the man he serves, Prime Minister Anthony Albanese, who earns $607,516.

    Treasury Secretary Steven Kennedy’s salary is more than double that of Treasurer Jim Chalmers, who is paid $438,112. Another three departmental secretaries each earn $960,840.

    Lambie’s Instagram post drew hundreds of comments including:

    How does a public servant earn more than the prime minister? That’s wrong!!

    Politicians get flak about their salaries from belligerent constituents, but also keenly feel the injustice of earning far less than senior public servants.

    Higher pay for higher risk

    The salaries of both politicians and public servants have long and specific histories. Without an income, only the rich could afford to be politicians, so publicly paid allowances and salaries have historically been an important equity and inclusion measure. They remain so today.

    The original framers of the public service component of our Westminster system of government believed that to prevent conflicts of interest that drive corruption, the bureaucracy ought to be staffed by “permanent officers” with job security. In exchange for what, barring wrongdoing, was going to be a lifetime career, public service pay was historically adequate but not extravagant.

    This nexus was broken when, in exchange for higher pay, the Keating government introduced five-year contracts for departmental secretaries in March 1994. Three departmental secretaries refused contracts and continued as “permanent officers”. The rest took the money and the increased employment risk that went with it.

    Two years later, the Keating government lost office and incoming Prime Minister John Howard summarily fired nearly a third of departmental secretaries, fatally eroding the “frank and fearless” tradition of public service advice underpinned by security of employment.

    Compromised advice

    Contract employment for secretaries, who effectively can now be fired at will, not only created pressure for public servants to tell ministers what they wanted to hear, but also untethered their salaries from historical norms. Higher pay reflected that insecurity. The flow-on effect meant other salaries in the senior executive service also floated upwards.

    Contracts for secretaries have also been central to the revolving door that’s developed between the top of the public service and large consulting firms, creating conflicts of interest unknown in the traditional Westminster public service.

    The big four consulting firms are attractive alternative employers for highly paid and insecure departmental secretaries.

    Little wonder, then, that a quasi-privatisation of public service advice through consultancy contracts to those firms occurred, at vast expense to taxpayers – something Finance Minister Katy Gallagher has made strong efforts to reverse.

    Lambie’s push for answers

    Lambie has introduced the Remuneration Tribunal Amendment (There for the Public Service, Not Profit) Bill 2025 to cap senior APS pay at $430,000. It’s a bid to address remuneration which has raced far beyond ministerial salaries, and well beyond reasonable public expectations.

    The Lambie bill has been referred to a Senate committee, which presents an opportunity to evolve debate on the deeper reasons for what has gone awry in the public service and to devise a response that gets to the root of the problem.

    The precarity of contract employment for departmental secretaries, which is used to justify high salaries, is both unnecessary and harmful to the quality of public policy and administration in Australia.

    The intrinsic interest and challenge of working for the nation and the betterment of its citizens has always paid well in terms of a “psychic wage” on top of senior public servants’ actual salaries. If the complaint is that an executive could make much more in the private sector, they’re probably not the right person to work in the public service anyway.

    One reply to Lambie’s Insta post summed up the situation:

    It’s the pollies that made this mess.

    Politicians are the ones who are going to have to clean it up.

    It is neither likely nor plausible that highly paid public service leaders will cut their own salaries in return for an end to the five year contract system for secretaries.

    But that is what a return to good public service governance – and to frank and fearless advice in the national interest – now requires.

    Chris Wallace has received funding from the Australian Research Council.

    – ref. The prime minister earns $607,000 a year. Why does his top public servant earn more than $1 million? – https://theconversation.com/the-prime-minister-earns-607-000-a-year-why-does-his-top-public-servant-earn-more-than-1-million-250045

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Will the government’s online gambling advertising legislation ever eventuate? Don’t bet on it

    Source: The Conversation (Au and NZ) – By David Rowe, Emeritus Professor of Cultural Research, Institute for Culture and Society, Western Sydney University

    Lukas Coch/AAP, Shutterstock, X.com, The Conversation

    As the next federal election came into view before the summer break, concern increased that Labor wouldn’t be honouring its commitment to introduce new restrictions on online (especially sport) gambling advertising during the current parliamentary sitting.

    Those fears were well-founded, despite pressure from many sides and broad bipartisan political support.

    The Greens made a last-ditch attempt to cooperate with the government to pass some reforms in the February 2025 sitting, but were rebuffed.

    Instead, Communications Minister Michelle Rowland blamed the delay on the complexity of advertising reform and the need to continue consultation.

    This is despite a House of Representatives inquiry into the harmful impacts of online gambling, led by the late Labor MP Peta Murphy, concluding in June 2023.

    In the meantime, much less well-researched but wider-ranging legislation banning children under 16 from using social media was introduced and passed in just eight days in November 2024.

    There are both deep historical and immediate political reasons why this legislation has been bogged down.

    A nation of sporting gamblers

    Professional sport in Australia has an inglorious history of promoting unhealthy goods and services, including cigarettes, sugary drinks, fast food, alcohol and gambling.

    Television and, later, online advertisements have been particularly effective vehicles for connecting sport gambling with potential consumers.

    This has prompted widespread objections to the health and social consequences and intrusiveness of gambling advertising.

    There is convincing evidence that Australia’s world-leading per capita expenditure on gambling and the integral role of sport gambling ads cause harm to a considerable number of people, families and communities.

    Such harm includes negative effects on relationships, health, psychological wellbeing, finances, work and study.

    The gamblification of sport

    Although sport comes third among the main areas of gambling in Australia, it is by far the most prominent, especially in homes.



    Read more:
    Pokies? Lotto? Sports betting? Which forms of problem gambling affect Australians the most?

    The so-called gamblification of sport, accelerated by digitisation, normalises the concept of betting odds among children and young people.

    Sport and media’s enthusiasm for gambling money has provoked strong pushback over its negative social consequences, with mounting public pressure for greater controls on gambling advertising.

    A recent poll found about 72% of those surveyed wanted to ban online gambling ads, while another of AFL fans reported 76% supported television and radio ad bans.

    The response of and to the Murphy Report

    The House of Representatives Standing Committee on Social Policy and Legal Affairs was charged with investigating online gambling and its impacts.

    It made 31 recommendations, with rare cross-party support, in its “you win some, you lose more” report (which was not only about sport).

    Contrary to most public debate and media reporting, it did not formally recommend a blanket ban on all gambling advertising. Its terms of reference only covered online gambling.

    But Murphy’s foreword – calling for a “phased, comprehensive ban on all gambling advertising on all media; broadcast and online, that leaves no room for circumvention” – caught the most attention.

    The main recommendation was for a three-year, four-phase ban on all forms of online gambling advertising. Dedicated racing channels and programming were exempted and small community radio broadcasters given extra time to comply.

    After further consultation lasting almost 18 months, it’s clear this calibrated proposal is not favoured by the government.

    Journalists were backgrounded about a watered down law capping ads for gambling at two per hour per TV channel before 10pm, and banning them for an hour either side of a live sport event. A blanket ban would apply only to betting ads on social media and other digital platforms.

    Yet even these more modest reforms did not proceed as anticipated.

    The reason, it has been widely reported, was heavy lobbying by the sport, media and gambling industries.

    High-stakes horse trading

    The privileged access to government gained by these sectional interests has had a powerful impact on gambling legislation.

    The Coalition of Major Professional and Participation Sports has continually resisted tightening regulations on sport sponsorship and gambling ads.

    It claims their reduction or loss would damage the financial viability of its members and their support for grassroots sport.

    However, Australia’s major sports leagues derive significant gambling revenue from direct sources (sponsorship, product fees) and indirectly from the value of media rights.

    The AFL and NRL generated cumulative revenues of $1.06 billion and $701 million respectively in 2023.

    So while sport leagues would have less capacity to monetise their media rights if gambling ads were reduced, it would neither threaten professional sport in general nor seriously jeopardise funding of junior participation.

    Follow the money

    An Australian Communications and Media Authority report discovered capital city free-to-air television featured 1,381 gambling spots per day between May 2022 and April 2023.

    Gambling companies spent $162 million on free-to-air television advertising during this period, not including further investment on subscription platforms.

    As free-to-air commercial TV is already losing advertising income to digital media platforms, restrictions on this lucrative advertiser category would not be as easily absorbed today as the tobacco advertising bans in the 1970s.

    This is why sports and their media and betting partners are fighting so hard against the legislation.

    And all this capital flowing to and through sport, gambling, and media has created the potential to inflict political harm on gambling reforming governments.

    Negotiations behind closed doors can easily break out into public campaigns, akin to the infamous “axe the (carbon) tax” agitation, if powerful organisations are not satisfied.

    Gambling and the young voter

    Sport gambling ads in Australia have especially targeted young men in a jocular larrikin style. But young women are now also being induced to gamble in greater numbers.



    Read more:
    9 out of 10 Australian sports bettors are men. Here’s why that might change

    Those who want curbs on sport gambling advertisements have been cast by some as “wowsers” and “puritans”.

    State intervention in the sport-media-gambling nexus may provoke a backlash that working-class men are under attack for engaging in their favourite pastimes.

    Like the latest reforms to sport TV anti-siphoning laws, new policies are the product of high-stakes horse trading between nervous governments and pressure groups with manifestly variable degrees of influence.

    As in the gambling world, evidence-based policy can confront very uneven odds.

    David Rowe has received funding from the Australian Research Council to support research relating to this article: Struggling for Possession: The Control and Use of Online Media Sport (with Brett Hutchins, DP0877777); ‘A Nation of “Good Sports”? Cultural Citizenship and Sport in Contemporary Australia’ (DP130104502), and ‘Australian Cultural Fields: National and Transnational Dynamics’ (with Tony Bennett et al, DP140101970).

    Hunter Fujak does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. Will the government’s online gambling advertising legislation ever eventuate? Don’t bet on it – https://theconversation.com/will-the-governments-online-gambling-advertising-legislation-ever-eventuate-dont-bet-on-it-238084

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Humans generate 62 million tonnes of e-waste each year. Here’s what happens when it’s recycled

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

    Huguette Roe/Shutterstock

    In 2022, humans generated roughly 62 million tonnes of electronic waste – or e-waste. That’s enough to fill more than 1.5 million garbage trucks. And by 2030, that figure is expected to rise to 82 million tonnes.

    Australia is a huge contributor to this problem. Every year each Australian, on average, generates 20kg of e-waste, compared with the global average of 7kg per person.

    Less than one quarter of the world’s e-waste – which includes desktop computers, laptops, mobile phones, televisions, kitchen appliances, batteries and solar panels – is recycled. That means most of it ends up in landfill, which can result in major accidents. For example, earlier this month, a rubbish truck in Melbourne caught fire after a laptop battery that had been thrown in the garbage bin exploded.

    So what can be done to increase the amount of e-waste that’s recycled? And what actually happens during the e-waste recycling process?

    From breakdown to planned obsolescence

    The growing problem of e-waste is fuelled by both perceived and planned obsolescence.

    Perceived obsolescence happens when we discard functioning products in favour of newer models. For example, we buy the latest iPhone even though our current phone works fine.

    Planned obsolescence is when manufacturers “build in” a use-by date. One way they do this is by not offering software updates, which then renders an existing product incompatible with other, newer devices or presents cybersecurity risks.

    Of course, sometimes existing electronic products simply stop working, which forces us to buy a replacement.

    A multi-step process

    In Australia, the process of recycling e-waste starts with consumers delivering their e-waste to a designated collection centre.

    Some manufacturers offer trade-in programs where people can drop off their old phones and laptops at retail shops and get a small discount on a new product. Some councils also run services for periodic collection and offer drop-off centres for e-waste.

    The collection is followed by sorting and inspection of the discarded items.

    At this stage, the discarded electronic items are sorted based on the type of devices. Some devices can be refurbished and reused if they are still functional.

    Those that cannot be refurbished are dismantled.

    This involves separating the various components, such as circuit boards, batteries and wiring. Hazardous materials such as mercury and lead are removed, before recyclable and valuable materials are recovered. These include plastic and glass, as well as precious metals like gold and silver from the circuit boards.

    After purifying and refining, the recycled materials can be used in new electronics or put to other uses.

    According to the national waste report there are 535 facilities in Australia that accept e-waste. But only 20 facilities reprocess these for further recycling.

    This means much of Australia’s e-waste is exported to China, India and other Asian countries to be recycled.

    Less than one quarter of the world’s e-waste is recycled.
    SibFilm/Shutterstock

    Significant challenges

    There are significant challenges when it comes to recycling e-waste.

    Some are associated with consumer behaviour. For example, unlike kerbside recycling services for paper, glass and cardboard, recycling e-waste generally involves consumers making a special trip to a designated drop-off location. Accessing these locations involves extra effort and can be an inconvenience which deters people from recycling their e-waste.

    Also, compared to container deposit schemes, where people get paid to recycle their glass bottles and cans, there are generally no monetary incentives available for recycling e-waste.

    Concerns about data security also prevent some people from recycling their e-waste. People are often reluctant to recycle their computer, phones and other electronic items as they are worried their data could be stolen during the recycling process, even after they have deleted the files.

    The other set of challenges with recycling e-waste comes from the economic incentives for recycling. Recycling e-waste is complex and costly. The costs involved in recycling can often be higher than the price of raw materials. Hazardous wastes must also be disposed safely, which adds extra costs to the process.

    All of this makes it less attractive for businesses to recycle e-waste.

    The way forward

    Australia’s new circular economy framework is expected to provide a way forward for businesses to address some of these challenges.

    The framework seeks to double the rate at which Australia recovers, recycles and reuses materials by 2035, partly by providing direction and designing policies for businesses that encourage recycling.

    It’s also important for local governments to make it easier for people to recycle their e-waste.

    While it may not be cost effective for councils to have kerbside recycling for e- waste, they could place e-waste collection centres in local areas.

    Councils can also explore offering consumers incentives for e-waste recycling. These incentives can be monetary. But even non-monetary incentives, such as letting people know how their recycled e-waste contributes to addressing the bigger problem, can be a motivation.

    And finally, as consumers, it would help to remember that the best way to contribute to decreasing e-waste is to repair and reuse our existing products.

    Sukhbir Sandhu has received funding from Australian Research Council, European Union, and Green Industries SA.

    – ref. Humans generate 62 million tonnes of e-waste each year. Here’s what happens when it’s recycled – https://theconversation.com/humans-generate-62-million-tonnes-of-e-waste-each-year-heres-what-happens-when-its-recycled-249842

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Carnivorous dinosaurs thrived in Australia 120 million years ago, new fossils show

    Source: The Conversation (Au and NZ) – By Jake Kotevski, PhD Candidate, School of Biological Sciences, Monash University and PhD Candidate, Museums Victoria Research Institute

    The shinbone of a megaraptorid. Nadir Kinani/Museums Victoria

    Between 122 and 108 million years ago, the Australian landmass was much farther south than today. Victoria was positioned within the Antarctic Circle, separated from Tasmania by a vast rift valley rather than open sea.

    This was the Early Cretaceous, and lush forests filled with dinosaurs dominated the landscape. We still find traces of these animals in Victoria’s fossil record.

    Most of the dinosaur fossils found in Victoria belong to small plant-eaters called ornithopods. But there are also a few theropod fossils — a diverse group that includes all known carnivorous dinosaurs, as well as modern birds.

    More than 250 theropod bones have been found in the Victorian Cretaceous. In the palaeontology collections of Museums Victoria, we have now identified five theropod fossils of particular importance. Our work on these bones has been published today in the Journal of Vertebrate Paleontology.

    Artist’s interpretation of the Cretaceous Bass Coast, 121.4 million years ago. From left to right: carcharodontosaur, unenlagiine and megaraptorid.
    Jonathan Metzger for Museums Victoria

    Shinbones and tail bones

    Research over the past decade has revealed striking similarities between Australian and South American dinosaurs. These include megaraptorids with claws shaped like scythes, and small, fleet-footed elasmarian ornithopods. There were also armoured parankylosaurians and colossal sauropods with long necks and small heads.

    These parallels may seem surprising at first, but both continents retained a connection to Antarctica throughout much of the Cretaceous Period.

    Our newly described fossils show that a bunch of different carnivorous dinosaurs seen in South America also thrived in the Cretaceous of southeastern Australia.

    Two shinbones provide the first evidence of carcharodontosaurs (“shark-toothed lizards”) in Australia. A third shinbone provides strong evidence for the presence of unenlagiines, a southern group of dromaeosaurs (“running lizards”).

    A fourth shinbone and two tail vertebrae with their chevrons, which are from a megaraptorid, represent one of Australia’s largest-known carnivorous dinosaurs.

    A first for Australia

    Carcharodontosaurs were apex predators in South America and Africa for much of the mid-Cretaceous. This group of theropods had large skulls, massive teeth and small arms. They were some of the largest predators to ever walk the Earth.

    Despite their success in South America and Africa, carcharodontosaur fossils had never been found in Australia – until now. With the two shinbones, we now have the first evidence of the group on this continent.

    Curiously, these Australian carcharodontosaurs are much smaller than their African and South American cousins, and the bones we have most closely resemble a carcharodontosaur from Thailand.

    One of the Victorian carcharodontosaur shinbones was found on the Otway Coast. The other was found on the Bass Coast, in rocks nearly 10 million years older. This demonstrates these predators were successful in this area for at least 10 million years. It’s a notable find.

    The large-bodied carcharodontosaurs of Africa and South America were seemingly specialised for hunting long-necked sauropods. However, this food source was likely not available to the Victorian polar carcharodontosaurs: sauropod fossils have never been found in Victoria.

    A cliff face at Twin Reefs Bunurong Coastal Reserve, the area where some of the dinosaur fossils were found.
    John Broomfield/Museums Victoria

    The Australian ‘raptors’

    Unenlagiines were lightly built (and likely feathered) predatory dinosaurs, related to Velociraptor of Jurassic Park fame.

    Most unenlagiine fossil remains have been found in South America. Historically, Australia had limited evidence for their presence, as well.

    Our description of a new unenlagiine shinbone from Victoria provides robust evidence for their success in polar Australia during the Early Cretaceous.

    The snouts of unenlagiines were relatively longer, and their arms relatively shorter than those of their dromaeosaur cousins from the Northern Hemisphere. This implies they had a rather different diet. The Victorian unenlagiine presumably ate fish or small land-dwelling animals. One possibility is the small mammals for which the Victorian Cretaceous is perhaps most famous – more than 50 mammal jaws have been found to date, and some are from ancient relatives of platypus and echidna.

    Theropod shin bones from the Bass Coast. From left to right: unenlagiine, carcharodontosaur and megaraptorid.
    Nadir Kinani/Museums Victoria

    The apex predators of Victoria

    Large predatory dinosaurs – on the scale of Tyrannosaurus – are notably absent from the Australian fossil record. Instead, Australian dinosaur populations seem to have been dominated by medium-sized carnivores called megaraptorids.

    Megaraptorid fossils are only known from South America and Australia. The most complete skeletons are from South America, including a relatively large one – roughly nine metres long. Australia’s only reasonably complete megaraptorid is Australovenator wintonensis from Winton, central Queensland.

    The shinbone and tail vertebrae we describe provide evidence for a large megaraptorid in southeast Australia. Despite being almost 30 million years older than the roughly five- to six-metre-long Australovenator, the Bass Coast megaraptorid was at least 5% larger: approaching the size of its South American relatives.

    The large, muscular arms and fingers tipped with fearsome scythe-like claws were presumably the primary weapons of megaraptorids. In contrast to almost every other group of medium-sized carnivorous dinosaurs, megaraptorids had elongated snouts with small teeth.

    The abundance of ornithopods in Victoria presumably made this region more suited to smaller prey specialists like megaraptorids, rather than sauropod-stalking carcharodontosaurs.

    Back row: two megaraptor fossils. Front row: the shinbone of a unenlagiine; two shinbones of carcharodontosaurs; the shinbone of a megaraptor.
    Nadir Kinani/Museums Victoria

    More discoveries yet to come

    We have much to learn about Australia’s Cretaceous dinosaurs. Our study shows how even five isolated and incomplete bones can improve our understanding of our continent’s fossil heritage.

    Carcharodontosaurs might have been the apex predators in South America, but megaraptorids ruled the roost in the land down under.

    The fantastic dinosaur fossil record of Victoria has grown over nearly 40 years thanks to the efforts of Dinosaur Dreaming, an ongoing volunteer palaeontology project, and citizen scientists like Melissa Lowery. Thanks to their efforts, our window into Victoria’s ancient past continues to become ever clearer.

    Jake Kotevski receives funding from an Australian Government Research Training Stipend and Monash University – Museums Victoria scholarship.

    Stephen Poropat received funding from the Winston Churchill Memorial Trust to observe fossil specimens relevant to this paper.

    – ref. Carnivorous dinosaurs thrived in Australia 120 million years ago, new fossils show – https://theconversation.com/carnivorous-dinosaurs-thrived-in-australia-120-million-years-ago-new-fossils-show-242290

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Canada: Premier Returns to Washington in Fight Against Tariffs

    Source: Government of Canada regional news

    Premier Tim Houston will return to Washington, D.C., this week on another important mission to exchange information with business and government representatives in the United States. The Premier will attend the National Governors Association winter meeting, where he will share information on the benefits of continuing current trade relations with the United States.

    “My meetings in Washington last week were productive, and I believe Americans are realizing the negative impact these tariffs would have on both sides of the border,” said Premier Houston. “We can’t take our foot off the gas – we must continue discussions on how this valued partnership has benefited both Canada and the United States. It is my sincere hope and my primary focus to avoid tariffs altogether and continue with a mutually beneficial trade relationship.”

    On February 12, a delegation of 13 premiers met with political and business leaders in Washington to remind them of how both countries significantly benefit from free trade. Premier Houston also continues to have discussions with other premiers and the federal government on efforts to remove interprovincial trade barriers, improve labour mobility and diversify to new markets.

    As part of Budget 2025-26, the Province will work to strengthen Nova Scotia’s self-reliance by investing in critical minerals, wind resources and the seafood sector, in addition to more money to grow the Nova Scotia Loyal program. The Province will also develop a comprehensive trade action plan to facilitate internal trade, enhance productivity and drive critical sectors with input from businesses and industry.

    Quick Facts:

    • Budget 2025-26 includes a $200 million contingency fund to help respond if the United States does impose tariffs that affect Nova Scotians
    • Canada is the top U.S. export destination for more than half of all goods produced in the United States.
    • motor vehicles, machinery, metals and minerals, and agri-food made up more than 50 per cent of U.S. exports to Canada in 2023
    • in 2024, Nova Scotia exports to the U.S. were $4.6 billion and imports were $528.3 million; the top exports were:
      • tires – $1.5 billion
      • fish and seafood – $1.2 billion
      • forest products – $430.4 million
      • agriculture and agri-food products – $278.6 million
      • plastics – $217.3 million
      • electrical machinery and equipment – $159 million
      • motor vehicles and parts – $132.7 million
      • machinery and mechanical appliances – $120.9 million
      • non-metallic mineral mining and quarrying (mostly gravel and gypsum) – $118.7 million
      • articles of iron and steel – $97.6 million
    • mission delegates are Premier Houston; Nicole LaFosse Parker, Chief of Staff and General Counsel; Sean Joudry, Principal Secretary; and Executive Deputy Minister Tracey Taweel

    Additional Resources:

    Budget 2025-26 – Unlocking Our Potential: https://news.novascotia.ca/en/2025/02/18/budget-2025-26-unlocking-our-potential

    Tariff Response survey hotline: https://news.novascotia.ca/en/2025/02/06/tariff-response-survey-hotline

    Council of the Federation newsroom: https://www.canadaspremiers.ca/newsroom/

    MIL OSI Canada News –