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  • MIL-OSI USA: 10.29.2024 Sen. Cruz, Rep. Roy Demand Answers from Biden-Harris Administration on Growing Presence of Tren de Aragua Gang in Texas, U.S.

    US Senate News:

    Source: United States Senator for Texas Ted Cruz
    WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas), member of the Senate Judiciary Committee, and Rep. Chip Roy (R-Texas-21) sent a letter to Department of Homeland Security Secretary Alejandro Mayorkas demanding answers about the growing presence of the violent Venezuelan gang Tren de Argua (TdA) in Texas and across America.
    In the letter, the Texas lawmakers wrote, “Alleged TdA affiliates have committed heinous crimes against Americans. The two Venezuelan illegal aliens charged with raping and murdering 12-year-old Jocelyn Nungaray before tossing her dismembered body into a Houston bayou, both of whom were released under your tenure after they unlawfully crossed into Texas earlier this year, are believed to have ties to TdA. Further, on October 4, 2024, authorities announced the arrest of three additional Venezuelan illegal aliens in Northwest Dallas in September for their alleged involvement in a robbery of a woman who was tied-up and told that her fingers would be cut off if she did not comply during the crime.
    “Additionally, TdA has subjected illegal aliens smuggled into the U.S. to sex trafficking. The South American ring is forcing illegal alien women into prostitution in eight states, including Texas, to pay off their smuggling debts, rendering them vulnerable to all forms of abuse.
    …
    “Our law enforcement community and the Texans they serve deserve answers on the scope of infiltration of TCOs under this administration”
    Read the full letter here or below:
    Dear Secretary Mayorkas:
    The Biden-Harris administration has imported Venezuelan illegal aliens at an alarming rate, allowing criminals – including the gang Tren de Aragua (TdA) – to gain a foothold in Texas and communities throughout the United States. Texans and the American people deserve better.
    The massive increase in crime committed by Venezuelan illegal aliens is a direct result of this administration’s purposeful policies. Since October 2022, 117,000 Venezuelans have been paroled into the U.S. via the fraud-ridden Cuba, Haiti, Nicaragua, and Venezuela (CHNV) program. Further, since January 2021, nearly 750,000 Venezuelans have been encountered at the southern border– many of whom have been released into the U.S. interior.
    As you know, on October 5, 2024, law enforcement executed “Operation Aurora,” a sting targeted at TdA members occupying a San Antonio apartment complex that had been forcefully taken over by the violent gang, similar to the situation recently seen in Aurora, Colorado. Authorities arrested 19 Venezuelan illegal aliens , four of whom are confirmed TdA members, after receiving numerous complaints of TdA seizing vacant apartment units for drug-related crimes and human trafficking, and threats to apartment employees. One of the arrested suspects was reportedly a TdA gang leader. Moreover, 15 of the 19 detained individuals had immigration detainers placed on them by Homeland Security Investigations (HSI) for likely for removal from the U.S.
    Thankfully, the raid concluded without incident. The task force, comprised of law enforcement officials from the San Antonio Police Department (SAPD), the Texas Department of Public Safety (DPS), the Federal Bureau of Investigation, Border Patrol, and HSI, should be commended for their efforts. While the apprehension of TdA members and other foreign criminals is a welcome development, this dangerous incident, and similar incidents, may have been avoided if DHS took appropriate action to secure the border and stop the mass release of illegal aliens into our communities.
    Indeed, this is not the first incident involving TdA in Texas. On September 26, 2024, reports revealed DPS arrested over 20 suspected TdA members at an El Paso hotel for human smuggling, prostitution, and narcotics possession, among other crimes. On September 19, 2024, HSI and SAPD reportedly arrested two individuals linked to TdA for their involvement in a firearms smuggling operation. In March 2024, more than 100 suspected TdA members were arrested for their involvement in charging at National Guardsmen and DPS troopers at the El Paso border in March 2024.
    Alleged TdA affiliates have committed heinous crimes against Americans. The two Venezuelan illegal aliens charged with raping and murdering 12-year-old Jocelyn Nungaray before tossing her dismembered body into a Houston bayou, both of whom were released under your tenure after they unlawfully crossed into Texas earlier this year, are believed to have ties to TdA. Further, on October 4, 2024, authorities announced the arrest of three additional Venezuelan illegal aliens in Northwest Dallas in September for their alleged involvement in a robbery of a woman who was tied-up and told that her fingers would be cut off if she did not comply during the crime.
    Additionally, TdA has subjected illegal aliens smuggled into the U.S. to sex trafficking. The South American ring is forcing illegal alien women into prostitution in eight states, including Texas, to pay off their smuggling debts, rendering them vulnerable to all forms of abuse.
    TdA members have also demonstrated brazen indifference to public safety officials. On July 30, 2024, Border Patrol issued a bulletin warning that TdA gave the “green light” to its over 1,000 members to fire on and attack law enforcement. In response to the gang’s proliferation and threat to the public, the state of Texas has heightened its security measures amid the federal government’s failure to secure the border from foreign crime syndicates.
    Our law enforcement community and the Texans they serve deserve answers on the scope of infiltration of TCOs under this administration. As such, we request you respond to the following questions by October 31, 2024:
    Please provide a full accounting of the number of Venezuelans released into the country via CHNV, other forms of parole, release after apprehension at the border, or otherwise, including:
    The last known whereabouts of each Venezuelan, broken down by state.
    The number of Venezuelans released into the United States without identification documents and their last known whereabouts, broken down by state.
    The number of released Venezuelans that have committed a crime in the United States, and their last known whereabouts, broken down by state.
    The number of released Venezuelans with known or suspected gang affiliations and their last known whereabouts, broken down by state.
    The number of released Venezuelans that are known or suspected members of TdA.
    The number of Venezuelans paroled into the United States that have since been removed, and the reason for their removal.
    The number of Venezuelans released from the southern border that received a Notice to Appear.
    The number of Venezuelans released from the southern border that received a Notice to Report.
    How many criminal aliens has DHS arrested in the United States as of January 2021? Please include the following information:
    Date of arrest, location of arrest, date of the alien crossing the border, date of release from the border, gang affiliation (if applicable), criminal charges received, previous criminal history, country of origin, and current status (is the alien detained at an ICE facility, on the non-detained docket, or was removed from the U.S.).
    How many of these criminal aliens have charges and/or convictions for human trafficking, child exploitation, or forced labor at the federal or local level?
    Of all criminal aliens arrested in Texas, how many have a detainer placed by ICE?
    What future operations does DHS and/or ICE plan to conduct to mitigate TdA’s presence in Texas?
    What other transnational criminal organizations are present in Texas that DHS has detected?
    What policies or action has DHS implemented to recruit the cooperation of sanctuary jurisdictions in Texas that limit or refuse to cooperate with federal immigration detainers and/or authorities?
    Sincerely,
    /X/

    MIL OSI USA News –

  • MIL-OSI USA: 10.30.2024 ICYMI: Cruz, Scott Op-Ed in Wall Street Journal: ‘What Four Years of Biden-Harris Cost You’

    US Senate News:

    Source: United States Senator for Texas Ted Cruz
    WASHINGTON, D.C. – U.S. Sens. Ted Cruz (R-Texas) and Rick Scott (R-Fla.) wrote in a recent Wall Street Journal op-ed that the past four years of runaway inflation has strained the ability of countless American families to make ends meet. In the piece the senators lay out the ways that the “bundled” effect of runaway inflation means families could be struggling for decades to get back to their pre-Biden-Harris economic stability.
    In the piece, the senators wrote, “The past four years, runaway inflation has made it increasingly difficult for families to make ends meet. Since the Biden-Harris administration took office, consumer prices in U.S. cities have risen 26% faster than private-sector wages. Paychecks now buy less than they did in January 2021. During the four years Donald Trump was in office, inflation-adjusted private-sector wages rose by 8.1%. That means real private-sector wages today are effectively 11.8% lower than they would have been if the Trump-era economy had continued for another four years.”
    The op-ed ran in the Wall Street Journal and can be read here or below.
    The kitchen table is where the American dream is built. Every month, families gather there to pay their bills and plan for the future. In a good economy, a couple can buy a home, purchase a car once every decade and help their kids pay for college.
    But in the past four years, runaway inflation has made it increasingly difficult for families to make ends meet. Since the Biden-Harris administration took office, consumer prices in U.S. cities have risen 26% faster than private-sector wages. Paychecks now buy less than they did in January 2021. During the four years Donald Trump was in office, inflation-adjusted private-sector wages rose by 8.1%. That means real private-sector wages today are effectively 11.8% lower than they would have been if the Trump-era economy had continued for another four years.
    Yet the inflation rate greatly understates the “bundling” effect of higher prices. A new car today costs $47,870 versus $40,857 in January 2021. And the total annual cost to operate that car has soared.
    The interest rate on an average new car today is more than 8%, compared with about 5% in January 2021, increasing the cost of a 60-month loan by $726 a year. The average annual auto insurance policy cost $1,567 in 2021. By the end of 2024, it’s expected to hit $2,469. A year’s worth of gasoline that cost $995 in 2021 now runs $1,281. A family in 2021 paid on average $11,579 to own a new car and cover its associated costs for the year; today, doing so costs $15,337 a year. The car price rose 17% but its total annual costs—financing, insurance, and gasoline—rose 32%.
    Home ownership is where families have suffered from the Biden-Harris inflation the most. The average home cost $303,900 in January 2021. In August, the cost hit $416,700. But with mortgage rates recently at 6.44% versus 2.77% in January 2021, the total cost of buying and financing a home has more than doubled—from $14,928 to $31,404 a year. Homeowner’s insurance that cost $1,966 annually in 2021 costs $2,499 today. The average annual electric bill was $1,464 in 2021. Today it is $1,868. The average annual natural-gas utility bill was $761 in 2021 but now is $965. The cost of owning and living in a home rose from $19,119 a year in 2021 to $36,736 today. The annual cost of owning a new car and home, then, is 70%, or $21,375, higher than it was four years ago. Do we really want four more years of these policies?
    That $21,375 exceeds the annual in-state tuition for any public university in Florida or Texas. Given S&P 500 performance, that money annually invested over four years could provide more than $550,000 for retirement in 20 years.
    Families are still burdened by the Biden-Harris inflation. A decade of good economic policy is likely needed to overcome the failures of the current administration. America needs to restrain spending, enforce work requirements in welfare, stop illegal immigration, reduce regulatory burdens and let working families keep more of their income to build their dreams at kitchen tables across America.

    MIL OSI USA News –

  • MIL-OSI USA: Cassidy Discusses Infrastructure in Acadia Parish, Tours Catholic Charities in Lafayette

    US Senate News:

    Source: United States Senator for Louisiana Bill Cassidy
    LAFAYETTE – Yesterday, U.S. Senator Bill Cassidy, M.D. (R-LA) spoke before the Rotary Clubs of Crowley and Rayne, and hosted a rural community funding summit in Rayne, to highlight the opportunities available for communities in Acadia Parish to benefit from his Infrastructure Investment and Jobs Act (IIJA).
    “Part of my goal in writing the Bipartisan Infrastructure Bill was to help growing communities in Acadiana prevent flooding, improve highways, fix water and sewage problems, and connect their towns to high-speed broadband,” said Dr. Cassidy. “Working in partnership with mayors and police jurors, we help get them the resources to meet these needs and keep making Acadiana a place where our children want to stay.”
    Since the IIJA was passed in August of 2021, millions of dollars have been spent on projects that benefit residents of Acadia Parish, including over $54.8 million for slab repair in the I-10: Jeff Dav PI-I-49 project. Additionally this year, over $349,000 was awarded to install landslide perimeter fencing and access gates at the Le Gros Memorial Airport in Crowley, and over $928,000 was granted for flood mitigation elevations in the parish. Surrounding parishes have also received money to make improvements to their infrastructure.
    Cassidy has visited Acadiana multiple times, including in July to Acadia Parish to meet with mayors from Crowley, Duson, Elton, Estherwood, Kaplan, Lake Arthur, Maurice, Rayne, Vinton, and Welsh. At both the Rotary meeting and the rural community funding summit, he was welcomed by local leaders.
    “We appreciate Senator Cassidy visiting us today and speaking to the Crowley and Rayne Rotary Clubs, along with the Crowley Lions Club and others,” said Ms. Katie Chiasson, member of the Crowley City Council and board member for the Rotary Club of Crowley. “It was good to get updates from him on infrastructure, insurance and other important issues.”
    “I appreciate Senator Cassidy bringing representatives of federal and state agencies to our region to discuss how mayors, police jurors and city council members can access the funds from his infrastructure bill,” said Mr. Chuck Robichaux, mayor of Rayne. “Our constituents want better roads, cleaner water and more jobs in our communities. We also want to make sure that the benefits of high-speed broadband come to Acadiana. I appreciate Senator Cassidy’s leadership on these topics and look forward to working with him in the future.” Robichaux co-sponsored the rural community funding summit with the Louisiana Municipal Association, the Louisiana Housing Corporation and LITACorp.
    Later, Cassidy toured Catholic Charities of Acadiana in Lafayette, including visiting their regional disaster warehouse where they store supplies that victims of floods and hurricanes need to survive. Cassidy also visited their St. John Street Campus, where he learned about their efforts to provide accommodations for the homeless and find permanent housing for homeless veterans.
    “Catholic Charities in Lafayette helps the homeless and the addicted while fulfilling the mission of Christ to care for the less fortunate,” said Dr. Cassidy.
    Cassidy himself has taken steps to support those who volunteer in their communities. In September, he introduced bipartisan legislation to reauthorize and strengthen AmeriCorps programs, which provide national service opportunities to more than 200,000 Americans every year in thousands of communities around the country. He has also previously introduced bipartisan legislation to provide medical professionals with a limited, but consistent, level of legal protection while volunteering during federally-declared disasters. Before being elected to Congress, Cassidy himself co-founded the Greater Baton Rouge Community Clinic and converted an abandoned K-Mart building into an emergency health care facility in the wake of Hurricane Katrina.
    Cassidy was led on a tour of Catholic Charities’ facilities by their CEO, Ms. Kim Boudreaux.
    “We are grateful to have had the opportunity to offer Senator Cassidy a firsthand look at the programs we provide at Catholic Charities of Acadiana,” said Ms. Boudreaux. “Every day, our organization works to address the urgent needs of our neighbors in Acadiana who are experiencing homelessness, hunger, poverty, and situational crisis. Additionally, we offer critical support to survivors of natural disasters, helping them rebuild and restore their lives. Senator Cassidy’s visit underscores the importance of these critical services, and we hope it will inspire continued collaboration and support as we work together to bring healing, stability and hope to the most vulnerable members of our community.”

    MIL OSI USA News –

  • MIL-OSI United Nations: Experts of the Committee against Torture Commend Kuwait on Positive Measures to Prevent Torture, Raise Questions on the Independence of the Judiciary and the Death Penalty

    Source: United Nations – Geneva

    The Committee against Torture today concluded its consideration of the fourth periodic report of Kuwait, with Committee Experts commending the State on positive measures introduced to combat torture, while raising questions on the independence of the judiciary and the application of the death penalty. 

    Peter Vedel Kessing, Committee Expert and Rapporteur, commended Kuwait for all the positive measures taken, including new laws and regulations to prevent torture.

    Abdul Razzaq Rawan, Committee Expert and Rapporteur for Kuwait, asked if the State party could inform the Committee of any legislative amendments or developments aimed at establishing the judiciary as an authority that was independent of the executive authority, and granting it the full authority to manage the affairs of judges and supervise the preparation of relevant regulations? What measures had been taken to implement the constitutional principle guaranteeing the independence of the judiciary and to implement the requirements of article 163?

    Mr. Vedel Kessing said the number of death sentences and executions carried out had reportedly increased, particularly since 2022.  How many persons had been sentenced to death over the last five years and how many of those persons had been executed?  Was it correct that a person could be sentenced to death for crimes not involving intentional killing, for example drug-related crimes? Allegedly, the abolition of the death penalty would be incompatible with Islamic Sharia, which was the main source of all Kuwaiti domestic legislation, including criminal law.  Would this also apply to a moratorium for the execution of death sentences?   

    The delegation said judges needed to be fully competent and qualified in the field of law or Sharia and did not have the right to exercise political activities. Judges could not be removed from their posts unless disciplinary measures were issued against them.  If judges were related to the accused by four degrees, they were required to recuse themselves from proceedings.  The Ministry of Justice could not get involved in daily cases or the running of the judiciary.  The judiciary was fully independent; there was no involvement from the executive or the parliament in the judiciary.

    The delegation said the death penalty was one of last instance, the maximum penalty issued in the Criminal Code of Kuwait.  It was only enacted for the most serious crimes and was not in contradiction with Islamic Sharia.  At any stage of proceedings, the accused murderer could appeal, or ask for a lighter or reduced sentence, rather than the death penalty.  From 2022 to 2024, there were 80 penalties reduced from the death penalty to a lighter sentence, with people even being released in some cases. In the case of a woman who was pregnant, the death penalty could not be carried out until the child was born. Minors could not be subjected to the death penalty.

    Introducing the report, Naser Alhayen, Permanent Representative of Kuwait to the United Nations Office at Geneva and head of the delegation, said the accession of Kuwait to the Convention against Torture in 1996 was a pioneering step towards promoting rights and preserving freedoms.  Since the submission of the fourth periodic report, Kuwait had taken steps to strengthen the legislative framework related to combatting torture.  These efforts were represented in the issuance of decree-law no. 93 of 2024, which clearly stipulated the definition and prohibition of torture.  The new law tightened the penalties imposed on perpetrators of torture crimes, and strictly criminalised any act of discrimination or ill treatment.

    In closing remarks, Claude Heller, Committee Chairperson, thanked the delegation for the dialogue which had been very constructive.  The Committee aimed to contribute to the improvement of human rights in all States.

    Mr. Alhayen, in concluding remarks, thanked the Committee for the dialogue.  Kuwait was fully committed to the implementation of all international standards and human rights and would continue the constructive dialogue with the Committee and the international community. 

    The delegation of Kuwait consisted of representatives from the Ministry of Foreign Affairs; the Ministry of Justice; the Ministry of Interior; the Ministry of Defense; the Ministry of Social Affairs; the Ministry of Information; the Ministry of Health; the Ministry of Education; the Central System for the Remedy of Situations of Illegal Residents; the Public Authority of Manpower; and the Permanent Mission of Kuwait to the United Nations Office at Geneva.

    The Committee will issue concluding observations on the report of Kuwait at the end of its eighty-first session on 22 November. Those and other documents relating to the Committee’s work, including reports submitted by States parties, will be available on the session’s webpage.  Summaries of the public meetings of the Committee can be found here, and webcasts of the public meetings can be found here.

    The Committee will next meet in public on Thursday, 31 October at 3 p.m. to conclude its consideration of the third periodic report of Namibia (CAT/C/NAM/3).

    Report

    The Committee has before it the fourth periodic report of Kuwait (CAT/C/KWT/4).

    Presentation of Report

    NASER ALHAYEN, Permanent Representative of Kuwait to the United Nations Office at Geneva and head of the delegation, said the accession of Kuwait to the Convention against Torture in 1996 was a pioneering step towards promoting rights and preserving freedoms.  Since the submission of the fourth periodic report, Kuwait had taken steps to strengthen the legislative framework related to combatting torture. These efforts were represented in the issuance of decree-law no. 93 of 2024, which clearly stipulated the definition and prohibition of torture.  The new law tightened the penalties imposed on perpetrators of torture crimes, and strictly criminalised any act of discrimination or ill treatment.  This decree was a milestone in the State’s efforts to strengthen the rule of law and protect human rights, and it imposed severe penalties of up to life imprisonment for certain crimes.  A decree had also been adopted which redefined measures for receiving complaints relating to human rights.

    Kuwaiti legislation included comprehensive protection for women and criminalisation of all forms of violence against them.  The protection from domestic violence law no. 160 of 2020 was issued, which established shelters for victims of domestic violence, and the possibility of reporting violence.  A child protection centre was also established.  The Supreme Council for Family Affairs was working on establishing the third centre for protection from domestic violence and the rehabilitation of survivors.  Law no. 21 of 2015 guaranteed the rights of the child, prohibiting children from deliberately being subjected to any physical or psychological abuse and punishing those who violated these provisions. 

    Specialised enforcement departments had been established to implement family court rulings and settle family disputes.  Social security and insurance were provided to persons with disabilities.  Monthly financial allocations were provided, in addition to a cash allowance for hiring a domestic worker or a driver to meet their daily needs.  During the first half of 2024, the number of residents in social care homes reached 518 people, including 362 citizens and 165 non-citizens. These homes provided integrated rehabilitation and training programmes focused on reintegration.

    The protection of the rights of contracted workers was a top priority for Kuwait, and this was highlighted in law no. 68 of 2015 on the protection of the rights of contracted workers.  Since the adoption of the law, the situation of domestic workers had improved substantially, as strict laws had been imposed to prevent the exploitation of these workers and ensure them full legal protection.  Inspection campaigns were conducted periodically on domestic labour recruitment offices and agencies to ensure that they applied the law; these campaigns issued fines in the event procedures were not followed. 

    Law no. 91 of 2013 aimed to criminalise all forms of human trafficking and provide legal protection for victims.  The National Committee to Combat Trafficking in Persons was established, as well as a specialised prosecutor to investigate these cases.  There had been a significant decrease in the number of trafficking crimes committed from 82 cases in 2020 to nine cases in 2023. A special system had been established for the early identification of victims by training workers at border crossings and hospitals to detect signs of exploitation.  Victims were then transferred to care centres where they received medical, psychological and legal support. 

    Kuwait had adopted an approach that achieved more security for detainees by subjecting all prisons to the supervision of the judicial authority, represented by the Public Prosecution, which was an independent authority.  The current system guaranteed every detainee the right to access a lawyer from the first moment of detention, and ensured that all detainees obtained their legal rights, and were granted an independent medical examination. 

    Mechanisms had been developed which allowed detainees or their families to submit confidential complaints for immediate investigation, with any official found to be involved in ill treatment held accountable.  Advanced training programmes for police officers and prison staff had been developed in cooperation with the Office of the High Commissioner for Human Rights, with a special focus on practical aspects related to dealing with detainees.  Mr. Alhayen concluded by emphasising Kuwait’s full commitment to human rights and to cooperation with the international community. 

    Questions by Committee Experts

    ABDUL RAZZAQ RAWAN, Committee Expert and Rapporteur for Kuwait, congratulated Kuwait for the desire expressed with regards to continued cooperation and dialogue with the Committee.  The Committee congratulated Kuwait on announcing a number of important initiatives and legislation.  The Committee also congratulated the State party on the fact that half the delegation were women, and that the delegation represented multiple sectors, reflecting the importance of the Convention. 

    The Committee congratulated Kuwait for the work of the National Standing Committee on follow-up and communications that prepared the report, while asking for further clarification around the work of this body.  What was the number of organizations which attended consultations for preparing the report, and how did these consultations impact the report? Could the State party elaborate further on the place of the Convention within the national legal system, in particular article 70 of the Kuwaiti Constitution?  What was the impact of this jurisprudence in the country?  To what extent was there an application of the provisions of the Convention by law enforcement officers? 

    Decree-law no. 93 of 2024 amended some provisions of the Kuwaiti Penal Code, with a new article which stipulated that the punishment of a public official who caused physical or psychological harm to a person, or induced him to confess to committing a crime, would face imprisonment for a period not exceeding five years and a fine not exceeding 5,000 dinars.  Penalties for torture should be proportionate to the acts committed and the damage resulting from them.  Torture leading to death was a crime that should be treated as more severe than murder, and should have its own punishment to distinguish it from ordinary murder.  Could the State party comment on this? 

    Could the State party also comment regarding article 37 of the Code of Criminal Procedure, which allowed the use of “any means” during investigations to obtain evidence, provided that it was not contrary to public morals or infringed on the rights and freedoms of individuals?  What procedural safeguards prevented coercion to remove confessions during interrogations and pretrial detention?  What legal texts and legislative measures ensured the exclusion of torture from national legislation on amnesty and immunities?  What was being done to fill this gap at the legislative level and in practice?  The Convention obliged States parties to prevent and prohibit torture in all circumstances, including a state of emergency, war or any other exceptional circumstance.  What were the State’s planned future actions to implement this commitment?

    The Committee was satisfied with the provisions of paragraph 126 of the national report, in particular the requirements of articles 158 and 159 concerning the prohibition of coercion or inducement of the accused to make statements and the invalidity of a confession obtained under duress or torture.  Could current examples be provided of judicial decisions invalidating confessions of accused persons as a result of torture? 

    The Committee had questions regarding the right of detainees to challenge the lawfulness or necessity of their detention.  What actions had been taken to establish safeguards currently, or in the future, as well as the measures taken to enforce respect for them by law enforcement officials?  What measures had been taken with regard to the control of records in all places of deprivation of liberty?  Was there a centralised national information register that included all the data of the records in the detention centres in the country?

    The Committee had expressed concern that judges were appointed by the Supreme Judiciary Council. There was also concern about the independence of foreign judges due to a lack of career security.  Could the State party inform the Committee of any legislative amendments or developments aimed at establishing the judiciary as an authority that was independent of the executive authority, and granting it the full authority to manage the affairs of judges and supervise the preparation of relevant regulations?  This included the conditions for managing the judiciary, appointing judges, tracking their careers, including their dismissal and promotion, and the conditions for appointing foreign judges to ensure their job security.  What measures had been taken to implement the constitutional principle guaranteeing the independence of the judiciary and to implement the requirements of article 163?

    The Committee had previously recommended that the State party adopt a legislative and institutional framework that incorporated international standards on asylum.  Was this on the legislative agenda?  While noting the decisions reported in the report whereby the daily fines imposed in many cases had been abolished, what measures had been taken to give effect to the Committee’s previous recommendation to amend the laws imposing such fines?  What was the nature of cooperation with the Office of the United Nations High Commissioner for Refugees, and could any statistics be provided?   

    What measures were taken during the period under review to ensure that no person was returned to a country where they were in danger of being subjected to torture or ill treatment?  Were those concerned with expulsion, return or extradition informed that they were entitled to seek asylum and appeal against deportation decisions?  What legal and practical safeguards existed to ensure the right of persons for whom deportation orders had been issued, to have their cases reviewed by a competent judicial body?  How many cases of return, extradition and expulsion had been carried out by the State party during the reporting period in exchange for diplomatic assurances?

    Did Kuwaiti law and jurisprudence allow for universal jurisdiction, which was the following and prosecution of crimes of torture, so as to establish jurisdiction in all cases and to ensure that perpetrators did not go unpunished?  If the State received a request for extradition from a State where Kuwait had no extradition agreement or treaty, what were the legislative and administrative measures needed to ensure that the Convention could be invoked as a legal basis for extradition?  Had the State ever refused a request by another State for the extradition of an individual suspected of the crime of torture?  Had it initiated any criminal proceedings against that individual as a result?  If so, could information on the status and results of these proceedings be provided?

    Could the delegation provide the Committee with information on any specialised programmes aimed at raising awareness of law enforcement officials, including security and prison personnel, and the measures adopted by the State party to prevent torture?  Had any programmes been adopted and implemented to train police cadets and officers in non-coercive investigative techniques?  Could information be provided on the assessment, review and updating of interrogation rules for persons who had been subjected to any form of arrest, detention or imprisonment?  What did the State of Kuwait intend to do to fulfil the obligation of monitoring practices related to interrogation, methods of detention, and treatment of persons arrested?

    The Committee would appreciate receiving information on the cases in which the legal provisions on the protection of witnesses and medical professionals documenting acts of torture and ill treatment had applied, in particular cases where these provisions had not been respected and action that had been taken against persons who had violated these legal requirements?  Taking into account the legal amendments on torture, did Kuwait intend to accompany these amendments by allocating legal provisions related to the protection of victims, witnesses and medical experts in criminal law? 

    Article 14 of the Convention obligated States parties to provide a legislative framework for the right of victims to effective remedy and adequate compensation.  What measures would be taken to give effect to this commitment through the adoption of legislation and institutional requirements? What measures of reparation and compensation, including court-ordered rehabilitation methods, had been made available to victims of torture and ill treatment or their families since the consideration of the previous periodic report?  Were programmes being implemented to provide reparation to victims of torture and ill treatment, including health and psychological rehabilitation?

    PETER VEDEL KESSING, Committee Expert and Rapporteur, asked what progress had been made to establish a fully independent National Human Rights Institution in line with the Paris Principles?  Did the Government agree with reports that some law enforcement officers still engaged in abuse and ill treatment during arrest or interrogation? How many complaints of torture and ill treatment had been received over the last three years and what was the outcome of these complaints?

    Were the three institutions which could investigate allegations of torture – the Office of the Public Prosecution, the General Directorate for Oversights and Inspection in the Ministry of Interior, and the National Bureau for Human Rights – completely independent from the Government as required under the Convention?  Would the State party consider establishing a fully independent institution that could investigate violations of the Convention in an effective and impartial way?  How many complaints had the Bureau received over alleged torture and ill treatment over the last three years?  What was the outcome of these cases? 

    Overcrowding in prisons continued to be a significant problem, particularly in the central prison. The prison population was reported to be at an occupancy rate of 126 per cent in 2023.  What efforts that had been taken to improve the living conditions in prisons?  Was the Government considering additional efforts since the problem with overcrowding had not been solved?  What progress had been made on the building of the new prison? 

    A law reportedly allowed the use of shackling of hands and feet for up to a month and the deprivation of certain types of food for a week as disciplinary punishment.  How many detainees had been shackled over the last three years?  What kind of offence warranted this punishment?  How many detainees had been deprived of food over the last three years? 

     

    How could a prisoner make a complaint over ill treatment in the prison?  How many complaints of ill treatment had been received over the last three years and what was the outcome of these cases?  Was it correct that some officers only received a decrease in their salaries as a penalty for having subjected detainees to torture and other forms of ill treatment?  How many visits had the International Committee of the Red Cross undertaken to places of detention from 2019 and onwards?  How many announced and unannounced visits had the National Bureau for Human Rights carried out to places of detention over the last three years? How had Kuwait followed-up and implemented the recommendations from the independent institutions visiting places of detention in Kuwait?

    The number of death sentences and executions carried out had reportedly increased, particularly since 2022.  How many persons had been sentenced to death over the last five years and how many of those persons had been executed?  Was it correct that a person could be sentenced to death for crimes not involving intentional killing, for example drug-related crimes?  Allegedly, the abolition of the death penalty would be incompatible with Islamic Sharia, which was the main source of all Kuwaiti domestic legislation, including criminal law.  Did this also apply to a moratorium for the execution of death sentences?   

    The delegation had provided important information on steps taken to improve the protection of foreign workers, including reviewing the laws, improving working conditions, and criminalising trafficking, which were positive steps.  However, it was reported that there was a high death rate among migrant workers who carried out dangerous work, particularly in construction sites.  How many migrant workers had died in Kuwait over the last three years?  What measures were taken to protect migrant workers from ill treatment and exploitation?  Why was a domestic worker not allowed to freely resign and change workplace?  Why did they need the consent of or authorisation from the employer to change workplace?

    The Committee appreciated the steps taken by Kuwait to counter domestic and sexual violence. Could marital rape be punished in Kuwait?  Were there concrete court cases where martial rape had been punished as a criminal offence? What was the outcome of the court cases involving violence against women?  In how many cases were the accused persons convicted for a crime and what were the sentences?  Was the Government considering a ban on corporal punishment in all settings? 

    There had been reported concerns that Bidoon citizens were being denied access to education, health care and employment, and faced mass arrests, torture and abuse when trying to exercise their right to freedom of peaceful assembly.  Did the Government accept the criticism and recommendations from the United Nations Human Rights Committee and from other sources, and was it willing to improve conditions for the Bidoons?

    A Committee Expert said prolonged solitary confinement was proven to undermine the standards outlined in the Convention.  Under what circumstances was incommunicado detention authorised?  Would the State party consider abolishing incommunicado detention? 

    Responses by the Delegation 

    The delegation said the National Standing Committee on follow-up and communications was established in 2019.  This Committee was delegated to respond to reports regarding the human rights situation in Kuwait and was assigned with preparing periodic reports presented to international bodies, and coordinating with non-governmental organizations working in the field of human rights.  The Committee was operational and was present in the meeting.  Its staff received the necessary training to support its mandate. This Committee had been in contact and coordinated with the Office of the High Commissioner for Human Rights. 

    The promulgation of the 1996 law approving the adoption of the Convention meant that this instrument was part of the national legal framework in Kuwait.  A judge could invoke the Convention in the issuance of verdicts.  There was no need for another process or procedure for the Convention to be part of national legislation.  A new text in the legislation included a penalty for using torture to extract a confession.  A new law punished every official who had acquiesced to a request of torture. 

    Any official or service provider who inflicted physical or mental harm against a person or their family members, or forced them to provide statements thereof, could be found guilty of torture.  The punishment was a sentence of not more than five years and not less than 5,000 dinars. There was also a criminalisation of discrimination in connection with torture.  If torture led to death, then a person was charged with the crime of a deliberate murder.  The sentence was then death, and there was no harsher punishment. 

    The Public Prosecutor conducted investigations and interrogations into charges of torture. Defendants could deny such charges. Everything took place under the supervision of the courts.  A defendant could adhere to the invalidity of such a confession.  If a confession was obtained under torture, then it was dismissed by the court.  The court resorted to many principles related to the invalidity of confessions extracted under torture.  In a case when a police officer had forced a defendant to provide a confession, the defendant was acquitted.  Acquittal was premised on the examination of evidence in the case. 

    If a detainee requested a medical evacuation, medical care was provided under the supervision of the police.  Anyone sentenced to imprisonment had their names recorded in an electronic system which was supervised by multiple agencies.  If their detention period exceeded the terms stipulated in the law, there was a notification, and those in charge were held accountable. 

    Judicial safeguards were in place, including that the individual had the right to know the reason for their arrest.  If the individual could not appoint a lawyer, the State had the right to appoint a lawyer for them.  All questioning should be done by specialist bodies, and it was up to the judge to release the person or keep them in detention.  Detainees could appeal at any stage of the judgement.  Questioning could only be conducted by trained, specialised staff, not just the police.  The accused individual had the right to request an examination to ensure there were no injuries, which needed to be included in the investigation report. The arrested individual had the possibility of appointing somebody to witness this. 

    Judges needed to be fully competent and qualified in the field of law or Sharia and did not have the right to exercise political activities.  Judges could not be removed from their posts unless disciplinary measures were issued against them.  If judges were related to the accused by four degrees, they were required to recuse themselves from proceedings.  The Ministry of Justice could not get involved in daily cases or the running of the judiciary.  They could recommend the appointment of judges when necessary.  Kuwait had chosen to ensure a separation of powers.  The judiciary was fully independent; there was no involvement from the executive or the parliament in the judiciary. 

    Currently, there were no persons subject to a decision of exile or expulsion.  If such a decision was taken, it was implemented in cooperation with the United Nations High Commissioner for Refugees, allowing the affected persons to be supported.  All foreign individuals could not be exonerated from fines imposed upon them. Any individual who had received fines was obliged to pay them before being deported.  In cases where people were unable to pay the fines, they could pay them subsequently in cooperation with third parties. 

    Responses by the Delegation

    The delegation said the definition of the crime of torture was challenging, as there was a need to define what behaviours constituted torture.  For example, if an individual was compelled to disclose information under duress, this could equate to torture, even if they were not subject to physical constraint.  One did not have to be the perpetrator of torture to be covered by the acts under the law; individuals could be sanctioned as a standby witness.  Any physical act of torture was a crime and the Kuwaiti legislator had established as a minimum threshold, a three-year imprisonment.  If the acts committed had long-term impacts and were severe, the sanctions would be increased.  Pre-mediated crimes could be punished by life imprisonment or the death penalty.  The crime of torture was an absolute crime, and mitigating circumstances could not be used to downplay or excuse acts of torture. 

    Awareness campaigns had been rolled out on national radio and television stations to make the public aware of the serious nature of the act of torture.  Social media networks had published advertisements and short awareness-raising videos and clips.  The campaign aimed to ensure that violence was not seen as mainstream or normal, whether in schools or in the family.  All channels were used to repeat this point.  A robust checking system was in place to monitor campaigns and check results.  Steps were taken to ensure unjustified violence was never promoted or mainstreamed, and to crack down on misinformation which could foster unrest and discrimination.  Producers who violated requirements were held accountable.  There were rare cases where scenes of violence had been broadcast, for example during the COVID-19 pandemic.  These were immediately followed up on and assessed, and action was taken to hold those responsible to account. 

    Initiatives had been conducted to be conducive to awareness raising in schools, to ensure victims of violence could have access to support.  All measures were taken to support the psychological wellbeing of women. Around 60 clinics provided women victims of violence with psychological support.  Specialised non-governmental organizations worked with victims of domestic violence and conducted training for self-defence.  Each State had rules for interrogation and treating any person who was under arrest, in such a way to ensure there were no acts of torture involved.  There first needed to be a medical observation of the entire body of the arrested person prior to interrogation, and they were then given the opportunity to meet with a lawyer.  If the arrested person did not speak Arabic, they would receive the support of an interpreter. 

    In the cases of detention, the detainee was entitled to all communication tools, access to a lawyer, and the ability to communicate with their family members to inform about their whereabouts.  All cases involving compensation for acts of torture were actioned through a special administration.  From 2020 to 2023, there were only nine torture complaints.  Torture was not considered a phenomenon or a scourge in Kuwait. 

    The National Bureau for Human Rights conducted training and developed content to disseminate a general culture about human rights, and also contributed to building programmes on human rights training in schools.  The protection and promotion of human rights was promoted through a website, social media networks, and awareness raising campaigns.  This year, the Bureau participated in a conference on local and regional initiatives for human rights.  The Bureau supported rehabilitation and penitentiary centres and could conduct visits to places of detention, women’s shelters, and other institutions without any clearance needed.  Investigations against the police were conducted in the event of complaints.  If it was found that these complaints were legitimate, sanctions were imposed, including the loss of salary or job. 

    Twenty-one memorandums of understanding had been signed with other countries to govern the issue of domestic workers.  Kuwait heeded its commitments under the International Labour Organization conventions.  A hotline was provided to all workers, enabling them to file complaints at any time.  One hundred and fifty-three inspection campaigns had been conducted in July.  Seven violations against domestic workers had been recorded in 2024. 

    Any domestic worker could request a change of employment without requiring the approval of their previous employer.  An awareness campaign which targeted domestic workers was being rolled out, focused on raising awareness for current and prospective domestic workers about their rights, as well as promoting the hotlines and contact points they might need.  

    Being held incommunicado in isolation cells could only be imposed in specific circumstances, for example if the person was self-harming while in detention.  The death penalty was one of last instance, the maximum penalty issued in the Criminal Code of Kuwait.  It was only enacted for the most serious crimes and was not in contradiction with Islamic Sharia.  At any stage of proceedings, the accused murderer could appeal, or ask for a lighter or reduced sentence, rather than the death penalty.  From 2022 to 2024, there were 80 penalties reduced from the death penalty to a lighter sentence, with people even being released in some cases. In the case of a woman who was pregnant, the death penalty could not be carried out until the child was born. Minors could not be subjected to the death penalty. 

    The crime of rape was defined with the non-presence of consent.  Consent was a constant, including in a marriage.  If consent had not been given, this was recognised as being a rape and was defined as a rape in the Criminal Code.  If marital rape occurred, this was criminalised and the perpetrator was punished. This relied on the woman registering a complaint of rape.  The existing legislation in Kuwait did meet the requisite standards.  The sanctions and punishments were commensurate with the degree of harm suffered. 

    Crimes of sexual violence had multiplied, including rape and non-consensual sexual relationships with minors.  Some of the sentences handed down for these cases were life imprisonment, with the minimum sentences being 15 years in certain circumstances.  This highlighted that the justice system was working as it should in Kuwait, with perpetrators being duly sanctioned. 

    The State did not currently intend to lift its reservations to the Convention, as doing this would pose a risk to the State’s sovereignty.  Any detainee who had health concerns where their lives were at risk were assessed by doctors, and in some cases could be provided with a conditional release. 

    The Government was continuing its tireless efforts to address the issue of stateless persons.  An action plan had been adopted which served as a roadmap. There were 10,260 stateless persons in Kuwait who were currently in the regularisation process.  People undergoing this process received long-term resident permits and received medical insurance cards.

    Kuwait guaranteed the right to freedom of expression and peaceful assembly.  The country had signed 15 extradition agreements, which were bilateral agreements between Kuwait and third parties.  In the event no treaty was in place, Kuwait referred to the principle of reciprocity.

    Laws and regulations punished terrorist acts and crimes, money laundering, and the financing of terrorism. Kuwait had a specialised department on combatting terrorism, money laundering and terrorism financing. Twenty-eight terrorist cases had been registered over the past four years.  Thirty-five inmates currently were being held in prison for being associated with a group which presented a threat to the nation. 

    Kuwait had rehabilitation and mental health follow-up programmes for persons in institutions, which allowed these persons to avoid relapse.  Therapy sessions were conducted, in which persons were evaluated at the psycho-social level and evaluated from a general risk perspective before they were discharged. A social and family integration programme was in place for persons with disabilities.  Allowances were provided for personal assistants and drivers. Five hundred and eighteen persons were in social care institutions.  These included persons with severe psychological and motor disabilities. 

    Questions by Committee Experts

    ABDUL RAZZAQ RAWAN, Committee Expert and Rapporteur for Kuwait, said torture was a serious and grave crime within international human rights law.  Therefore, it was absurd that there were no provisions thereon, and the Committee insisted on this.  Mr. Rawan commended the provisions in the civic law of Kuwait, which provided for reparations.  Could the delegation explain in detail the course of the reforms undertaken by Kuwait? Were there any special education programmes to support the Convention among law enforcement officers? 

    All countries were recommended to provide training in the provisions of the Istanbul Protocol.  Did Kuwait provide such training?  Was there a law which governed the use of forensic medicine in Kuwait?  The Convention considered mechanisms monitoring deprivation of liberty as an effective means to combat torture.  It was hoped that Kuwait would ratify the Optional Protocol to the Convention. Regarding fundamental legal safeguards, it was vital for family members to be notified of one’s place of detention.  Could clarifications be provided on whether this was complied with?   

    PETER VEDEL KESSING, Committee Expert and Rapporteur, commended Kuwait for all the positive measures taken, including new laws and regulations to prevent torture.  It was understood that the State was willing to tighten the penalty for torture to more than five years, which was commensurate with the gravity of the crime.  This was commendable.  What was to process from here on?  When could it be hoped that there would be changes?  Would the Government apply for international accreditation for the National Bureau for Human Rights?  Was it common to have video or audio recordings of police interrogations?  If there were allegations against a police officer, who would investigate that complaint? 

    Could a domestic worker easily terminate a contract with a month’s notice, or were they always required to supply a reason?  It was encouraging to learn that Kuwait was considering a ban on the use of shackles. Could the State be more specific on the timeline?  Had the new prison been built to tackle the issue of overcrowding?  Could updated statistics be provided on deaths in custody? Had deaths in custody been investigated? What measures were being taken to prevent these kinds of deaths? 

    Responses by the Delegation

    The delegation said sovereignty was a sensitive issue, all the more so when international texts and treaties departed from national legislation.  The State of Kuwait was firmly resolved to prosecute and punish any act of torture, irrespective of the perpetrator of that act.  The law on protection from corporal punishment 2020 expressly prohibited any act of violence against a child.  A unit was set up which responded to complaints of ill treatment against children, including corporal punishment.  Immediate investigations were launched into allegations of abuse in schools.  Any report of abuse needed to be followed up on immediately. 

    The Office of the Prosecutor was mandated to prosecute crimes brought before it, including torture.  Once the Office was seized with a case of torture, an effective streamlined system ensured a rapid investigation into the reported case of torture.  The Public Prosecutor’s Office was also an independent, oversight body which enacted measures to ensure oversight of places of deprivation of liberty.  Since 2009, it had the right to carry out visits to verify the conditions of places of deprivation of liberty.  The visits were also used to ensure that there were not acts tantamount to torture, ill treatment or abuse being carried out. 

    If an act of torture had led to a loss of life, the sentence would be toughened up to the death penalty.  If a doctor believed a patient in hospital ran the risk of being tortured, they would report it to the police unit in the hospital which would take legal measures against the perpetrator. 

    Around 53,000 domestic workers had changed careers to jobs in the public sector.  When a suspect or defendant was under interrogation, they were informed of their rights.  Twenty-two cases of detention without grounds between 2020 and 2024 had been referred to the competent judicial authorities, who referred the cases to the competent courts. A decree regulated the suspension of a police officer, following reports of excessive use of force. 

    A study was being conducted to amend the article in regard to the use of discipline of inmates.  It was hoped that this amendment would see the light of day, and the article would then be in line with the Mandela and Bangkok Rules. Remand in custody was limited by law and could not be extended.  The provision of a hotline was a safeguard, which was open to Kuwaitis or non-Kuwaitis to lodge any abuse of their rights, including complaints against police officers. Kuwait would recommend that the National Bureau for Human Rights seek accreditation under the Global Alliance of National Human Rights Institutions.

    Question by a Committee Expert

    ABDUL RAZZAQ RAWAN, Committee Expert and Rapporteur for Kuwait, said the judiciary had a fundamental role in preventing torture and implementing the provisions of the Convention. It was hoped the State would take into account shortcomings which could impact the work of the judges and judiciary into account. 

    Responses by the Delegation

    The delegation said the judicial authority in Kuwait was fully independent of the executive and legislative authority; these were separate powers.  In practice, there was no interference whatsoever.  Rules might imply an interference, but in practice, this was not the reality.  The Kuwaiti judiciary and the Office of the Prosecutor General were fully independent from a technical standpoint. 

    Closing Remarks

    CLAUDE HELLER, Committee Chairperson, thanked the delegation for the dialogue which had been very constructive.  The Convention was respectful of sovereignty.  The Committee aimed to contribute to the improvement of human rights in all States. 

    NASER ALHAYEN, Permanent Representative of Kuwait to the United Nations Office at Geneva and head of the delegation, thanked the Committee for the dialogue.  Kuwait was fully committed to the implementation of all international standards and human rights and would continue the constructive dialogue with the Committee and the international community. 

     

    Produced by the United Nations Information Service in Geneva for use of the media; 
    not an official record. English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

     

    CAT24.019E

    MIL OSI United Nations News –

  • MIL-OSI USA: Carney, Carper, Coons, Blunt Rochester Announce Over $127 Million in Federal Funding to Decarbonize Port Wilmington

    Source: United States House of Representatives – Representative Lisa Blunt Rochester (DE-AL)

    WILMINGTON, Del. – Today, Delaware Governor John Carney, U.S. Senators Tom Carper and Chris Coons and U.S. Representative Lisa Blunt Rochester (all D-Del.) announced $127.5 million for Port Wilmington as part of the U.S. Environmental Protection Agency’s (EPA) Clean Ports Program, a $3 billion investment by the Biden-Harris Administration in zero-emission port equipment and infrastructure.

    The Clean Ports Program was created by the historic Inflation Reduction Act (IRA) that Senators Carper, Coons, and Representative Blunt Rochester championed in Congress. As Chairman of the Senate Committee on the Environment and Public Works, Senator Carper was the primary author of the final environmental provisions in the IRA, including the Clean Ports Program at EPA. Senator Coons was a key negotiator of the Bipartisan Infrastructure Law and the Inflation Reduction Act, and as a member of the Senate Appropriations Committee, he has long fought to ensure critical infrastructure programs have the necessary resources to fund projects up and down our state, including at Port Wilmington. Representative Blunt Rochester’s legislation, H.R. 862, the Climate Action Planning for Ports Act, served as the framework for the Clean Ports program in the House version of the IRA.

    “The Port has been a critical part of Delaware’s economy for decades,” said Governor Carney. “The investment announced today will ensure the Port continues to support good jobs and enhance environmental safety for years to come.”

    “Our ports are vital to Delaware’s economic well-being, but for too long, pollution from diesel emissions have disproportionately impacted the vulnerable communities closest to them,” said Senator Carper, Chair of the Environment and Public Works Committee. “Port electrification is one solution that will clean up the air that nearby communities breathe while also addressing the climate crisis and creating new jobs. This is why I fought for the final Clean Ports Program in the Inflation Reduction Act. Investing in clean ports will put Delaware – and our nation – on the path to a brighter future with healthier communities, cleaner air, and a stronger economy.”

    “Investing in our infrastructure strengthens our national security and builds a stronger economy where everyone can thrive,” said U.S. Senator Chris Coons. “As Delaware’s member of the Appropriations Committee, I’m proud to have secured this funding for the Port Wilmington that will support good-paying, union jobs for First State workers. As we increase economic growth and competitiveness through investments in Delaware’s infrastructure, we should look for more investments like this one that advance climate resilience, reduce inflation, and further equip Delaware to meet the needs of the 21st century.”

    “The resiliency of Port Wilmington is crucial to the strength of our economy, our workers, and our supply chains,” said Rep. Blunt Rochester, member of the House Energy and Commerce Committee. “I’m proud to have delivered this significant investment in Port Wilmington through the Inflation Reduction Act’s Clean Ports Program, which is based on my Climate Action Planning for Ports Act. The goal of my bill was to reduce carbon emissions to improve public health and lower the environmental impact of our ports. Today’s investment meets that goal with urgency and equity, while advancing the Port’s clean energy future and benefiting our environmental justice communities.”

    “It’s one thing to talk about environmental justice, it’s another thing to do something about it,” said Delaware Secretary of State and Chairman of Diamond State Port Corporation, Jeffrey Bullock. “For years, people have been talking about the importance of cleaning up our ports and using “green” technology to better protect our workers and the people living in surrounding communities, but the money has never been available. This grant is going to make a huge difference by giving the existing port of Wilmington, and the new facility we are building the resources needed to improve environmental safety and make Delaware’s ports better for everyone living in our state.”

    “Our nation’s ports are critical to creating opportunity here in America, offering good-paying jobs, moving goods, and powering our economy,” said EPA Administrator Michael S. Regan. “Today’s historic $3 billion investment builds on President Biden’s vision of growing our economy while ensuring America leads in globally competitive solutions in the future. Delivering cleaner technologies and resources to U.S. ports will slash harmful air and climate pollution while protecting people who work in and live nearby ports communities.”

    The Clean Ports Program, established by the Inflation Reduction Act, is designed to help ports across the country transition to fully zero-emissions operations. The program consists of two competitions: the Climate and Air Quality Planning Competition and the Zero-Emission Technology Deployment Competition. Port Wilmington is an awardee for the latter, which will allow it to attain electric cargo handling equipment and charging infrastructure. EPA’s Clean Ports Program advances President Biden’s Justice40 Initiative, which aims to deliver 40 percent of the overall benefits of certain federal investments to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. Disadvantaged communities will benefit from cleaner air and access to high quality jobs that will be created to operate zero emissions technologies at ports.

    ###

    MIL OSI USA News –

  • MIL-OSI USA: Tips for a Healthy and Safe Halloween

    Source: US State of Rhode Island

    The Rhode Island Department of Health (RIDOH) is reminding Rhode Islanders about Halloween safety precautions.

    Halloween street smarts

    Talk with kids about the risks of distracted walking. This includes texting, talking on or looking at a phone, and listening to music.

    Always accompany young children on their trick-or-treating rounds. Research shows that evenings from 6 p.m. to 9 p.m. are the riskiest times of day for child pedestrians.

    If your older children are trick-or-treating without you, plan and review a route that is acceptable to you. Agree on a specific time when they should return home.

    Older children should travel in groups and create a “buddy system.”

    Cross the street as a group at crosswalks.

    Stay on well-lit streets and always use the sidewalk. If no sidewalk is available, walk at the far edge of the roadway facing traffic.

    Caution kids to never enter a home or a car for a treat.

    Costume safety tips

    Plan costumes that are bright and reflective. Consider adding reflective tape or striping to costumes and trick-or-treat bags for greater visibility.

    Look for “flame resistant” on the costume labels. Wigs and accessories should also clearly indicate this.

    Hats should fit properly to prevent them from sliding over eyes and blocking vision.

    Consider non-toxic makeup and decorative hats as safer alternatives to masks.

    Do not use decorative contact lenses without an eye exam and a prescription from an eye care professional.

    Healthy Halloween tips

    Consider offering non-edible goodies to trick-or-treaters (such as spider rings, vampire fangs, pencils, or bubbles). Halloween is one of the trickiest days of the year for children with food allergies.

    Wait until children are home to sort and check treats before eating them.

    Enjoy sweets in moderation.

    Driving

    Drive slowly in residential neighborhoods.

    Watch for trick-or-treaters at intersections, medians, and on curbs.

    Watch for trick-or-treaters darting from between parked cars.

    Enter and exit driveways carefully.

    If a teen driver is in your household, consider not allowing that person to drive after dark on Halloween. If you have a teen driver who will be driving, talk about precautions and set specific rules.

    Continue to take measures to prevent mosquito bites

    This has been a higher-than-average risk year for mosquito-borne diseases, including Eastern Equine Encephalitis (EEE), in Southeastern New England. Due to seasonably low mosquito populations, the risk of mosquito-borne disease has significantly decreased. However, mosquito biting can still occur during unusually warm weather, with Southeastern New England experiencing warm temperatures late this week, including on Halloween. Mosquitoes become less active at temperatures below 58 degrees and become largely inactive when temperatures fall below 50 degrees. Until the entire state experiences a true hard frost (defined as three consecutive hours below 32 degrees) which kills adult mosquitoes, the risk of mosquito-borne disease remains. For that reason, Rhode Islanders who will be outdoors on Halloween should continue to take mosquito bite prevention measures. These prevention measures are most important at sundown (and sunrise).

    Wear long-sleeved shirts and long pants.

    Use EPA-approved bug spray with at least 20% DEET. Alternatively, people can use a bug spray with one of the following active ingredients: Picaridin, IR3535, oil of lemon eucalyptus (OLE), para-menthane-diol (PMD), or 2-undecanone. People should not use bug spray with DEET on infants under two months of age.

    Put mosquito netting over baby carriages.

    Visit www.health.ri.gov/mosquito for additional mosquito prevention tips.

    MIL OSI USA News –

  • MIL-Evening Report: What are Veblen and Giffen goods?

    Source: The Conversation (Au and NZ) – By María Yanotti, Lecturer of Economics and Finance Tasmanian School of Business & Economics, University of Tasmania

    photo-lime/Shutterstock

    This article is part of The Conversation’s “Business Basics” series where we ask experts to discuss key concepts in business, economics and finance.

    In economics, goods and services can be classified in different ways. You might be surprised to realise you already knew this, even without knowing their classification names.

    Most goods and services are what we call normal goods. Normal goods are those that you purchase more of as your income increases.

    For example, you might put healthier and more nutritious food in your trolley, buy more shoes and clothes, or spend more on outings at restaurants and events.

    Normal goods still abide to what’s called the law of demand, which might feel like common sense: as the price of something goes up, the quantity of or frequency with which it is demanded will fall.

    But there are some categories that violate our intuitions around supply and demand. And they do so for very different reasons. Meet Veblen and Giffen goods, the products that “break the rules”.



    Read more:
    What’s inflation – and how exactly do we measure it?

    Needs and wants

    Normal goods can be further divided into two types: necessity goods and luxury goods.

    Most groceries are an example of necessity goods.
    No Revisions/Unsplash

    Broadly speaking, necessity goods are all those things we require for everyday life – food, housing, electricity and so on.

    Luxury goods, on the other hand, are the those things we don’t necessarily need but are nice to have. Luxury houses, fancier cars, more expensive clothes and so on.

    We become more able to afford luxury goods as we earn more. But as a result, they are also the first things we tend to cut when our income tightens.

    For most of these products, something called the “law of demand” applies. That is, if their price increases, people buy less of them than they did before. Demand for them shrinks.

    However, some types of good defy this “natural” principle.

    Symbols of status and wealth

    The first type are Veblen goods, named after American economist Thorstein Veblen. Sometimes they’re also called “snob” goods.

    When these goods go up in price, demand for them actually increases.

    Clear examples of Veblen goods are some forms of art, high-end designer clothes, exclusive cars and watches. The more expensive the good is, the more exclusive it is, and the more the consumers (who are attracted to it) want to purchase it.

    It all centres on signalling status. Being seen to be able to purchase them can indicate someone has exquisite taste, or lots of money to spend.

    Most times, Veblen goods are an example of what economists call “positional” goods. These are goods that are valued according to how they are distributed among people, and who exactly has them.

    The satisfaction of purchasing a Veblen good comes from the sense of having it and being able to show it off, not necessarily from how useful it is.

    The value of Veblen goods is driven by their artificial scarcity – they’re deliberately hard for people to acquire.
    Andrea Natali/Unsplash

    Inferior goods

    On the opposite side of normal goods are inferior goods. As our income increases, we tend to consume less of these goods.

    Think, for example, of two-minute noodles or the bus service.

    As your income increases, you may be able to afford more nutritious and healthier food and stop consuming cheaper food. You may be able to purchase a car or a bike and stop using public transport.

    But within inferior goods, one rare kind offers another exception to the law of demand – Giffen goods.

    Why does a rise in price cause demand to go up? Because for people on limited incomes, this limits their ability to buy substitutes.

    Take examples such as wheat, rice, potatoes, or bread. If the price of any of these goes up, a consumer on low income may have less to spend on higher quality goods like meat and fresh vegetables, increasing their demand for the inferior good.



    Read more:
    What is competition, and why is it so important for prices?

    María Yanotti receives funding from AHURI. She is affiliated with the Economic Society of Australia, and the Women in Economics Network.

    – ref. What are Veblen and Giffen goods? – https://theconversation.com/what-are-veblen-and-giffen-goods-241799

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: How do children learn good manners?

    Source: The Conversation (Au and NZ) – By Sophia Waters, Senior Lecturer in Writing, University of New England

    Pexels/Anna Shvets

    Ensuring kids have manners is a perennial preoccupation for parents and caregivers.

    How, then, do you teach good manners to children?

    Modelling good manners around the home and in your own interaction with others is obviously crucial.

    But there’s a clear uniting theme when it comes to manners in Australia: in Australian English, good manners centre on honouring personal autonomy, egalitarianism and not appearing to tell people what to do.

    Which manners matter most in Australia?

    Some of the most important manners in Australian English are behavioural edicts that focus on particular speech acts: greeting, requesting, thanking and apologising.

    These speech acts have a set of words associated with them:

    • hello
    • hi
    • may I please…?
    • could I please…?
    • thank you
    • ta
    • sorry
    • excuse me.

    Good manners make people feel comfortable in social situations by adding predictability and reassurance.

    They can act as signposts in interactions. Anglo cultures place a lot of weight on egalitarianism, personal autonomy and ensuring we don’t tell people what to do.

    If you want to get someone to do something for you – pass you a pen, for example – you frame the request as a question to signal that you’re not telling them what to do.

    You’ll also add one of the main characters in Anglo politeness: the magic word, “please”.

    This framing recognises you don’t expect or demand compliance. You’re acknowledging the other person as an autonomous individual who can do what they want.

    If the person does the thing you’ve asked, the next step is to say “thank you” to recognise the other person’s autonomy. You’re acknowledging they didn’t have to help just because you asked.

    ‘Say ta!’
    DGLimages/Shutterstock

    The heavy hitters

    The words “please” and “thank you” are such heavy hitters in Australian English good manners, they’re two of the words that language learners and migrants learn first.

    They can help soften the impact of your words. Think, for example, of the difference between “no” and “no, thank you”.

    Of course, there are times when “no” is a full sentence. But what if someone offered you a cup of tea and you replied “no” without its concomitant “thank you” to soften your rejection and acknowledge this offer didn’t have to be made? Don’t be surprised if they think you sound a bit rude.

    The other big players in Australian English good manners are “sorry” and “excuse me”. Much like in British English, the Australian “sorry” means many things.

    These can preface an intrusion on someone’s personal space, like before squeezing past someone in the cinema, or on someone’s speaking turn.

    Interrupting or talking over someone else is often heavily frowned on in Australian English because it is often interpreted as disregarding what the other person has to say.

    But in some cultures, such as French, this conversational style is actively encouraged. And some languages and cultures have different conventions around what good manners look like around strangers versus with family.

    Good manners involve saying certain words in predictable contexts.

    But knowing what these are and when to use them demonstrates a deeper cultural awareness of what behaviours are valued.

    Talking over someone else is often heavily frowned on in Australian English.
    MDV Edwards/Shutterstock

    How do children learn manners?

    As part of my research, I’ve analysed parenting forum posts about “good manners”. Some believe good manners should be effortless; one parent said:

    Good manners shouldn’t be something that a child has to think about […] teach them correctly at home from day one, manners become an integral part of the way they view things.

    Another forum user posited good modelling was the key, saying:

    the parent has to lead by example, rather than forcing a child to say one or the other.

    One study, which involved analysis of more than 20 hours of videorecorded family dinner interactions collected in Italy, found mealtimes are also sites where parents control their children’s conduct “through the micro-politics of good manners.”

    By participating in mealtime interactions, children witness and have the chance to acquire the specific cultural principles governing bodily conduct at the table, such as ‘sitting properly’, ‘eating with cutlery’, and ‘chewing with mouth closed’.

    Yet, they are also socialised to a foundational principle of human sociality: one’s own behavior must be self-monitored according to the perspective of the generalised Other.

    In Australian English, that means regulating your behaviour to make sure you don’t do something that could be seen as “rude”. As I argued in a 2012 paper:

    While child socialisation in Anglo culture involves heavy discouragement of rudeness, French does not have a direct equivalent feature […] French children are taught ça ne se fait pas, ‘that is not done’. Where the French proscribe the behaviours outright, the Anglos […] appeal to the image one has of oneself in interpersonal interactions.

    In Anglo English, the penalties for breaches could be other people’s disapproval and hurting their feelings.

    Good manners form part of the bedrock for human sociality.
    Shutterstock

    Why are good manners important?

    Good manners affect our interactions with others and help us build positive relationships.

    Fourteenth century English bishop and educator, William of Wykeham, declared that “manners maketh the man”.

    John Hopkins University Professor Pier Forni called them a “precious life-improvement tool.”

    The “Good Manners” chart, based on a set of rules devised by the Children’s National guild of Courtesy in UK primary schools in 1889, was issued to Queensland primary schools until the 1960s.

    It tells kids to remember the golden rule to “always do to others as you would wish them to do to you if you were in their place.”

    Good manners form part of the bedrock for human sociality. Childhood is when we give kids foundational training on interacting with others and help them learn how to be a culturally competent member of a society.

    Sophia Waters 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. How do children learn good manners? – https://theconversation.com/how-do-children-learn-good-manners-237133

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: State of the Climate 2024: Australia is enduring harsher fire seasons, more ocean heatwaves and sea-level rise

    Source: The Conversation (Au and NZ) – By Neil Sims, Senior Research Scientist, CSIRO

    ArliftAtoz2205, Shutterstock

    Worldwide, greenhouse gas emissions are still increasing, and temperatures are rising across land and sea.

    But what is climate change doing to Australia, the driest inhabited continent? The latest CSIRO and Bureau of Meteorology State of the Climate Report report highlights that Australia’s climate is continuing to warm.

    Extreme fire weather is increasing. Sea levels are rising. Marine heatwaves are becoming more intense and frequent. And oceans are getting more acidic. All of these come with serious consequences for Australia’s environment and communities.

    Australia’s land is already 1.5°C hotter

    On land, Australia has warmed by an average of 1.51°C since 1910. Our oceans have heated up by 1.08°C on average since 1900.

    This doesn’t mean we’ve breached the Paris Agreement goal of holding climate change to 1.5°C or less, because this goal is based on the long-term average of both land and ocean temperatures. But Australia’s land and seas are now at record levels of heat.

    Globally, 2023 was the hottest year on record – so far. But Australia’s warmest recorded year was 2019.

    Why the difference? Between 2020 and early 2023, three consecutive La Niña events have kept Australia wetter and cooler than during most of the past decade, leading to fewer heat extremes than in 2019. Even so, these years were still warmer than most years before 2000.

    As Australia keeps warming, extreme heat events will become more frequent and more extreme. Extreme heatwaves cause more deaths in Australia than any other natural hazard , peaking at 830 heat-related deaths during Australia’s hottest year in 2019.

    More heat waves, longer fire seasons

    Australia is notoriously fire prone. But fires differ hugely, from low-intensity grassfires through to enormous bushfires that consume forests. When extreme fire weather arrives – hot, dry and windy – small fires can turn large very quickly.

    Extreme fire weather is more frequent and more intense than in previous decades. Hotter conditions dry out grass and leaf litter, producing more fuel for fire. This has led to larger and more frequent forest fires, especially in the southeast of Australia over the past 30 years. Dangerous fire weather will be more common in the future, and the fire seasons will continue to lengthen.

    In extreme fire years such as the Black Summer of 2019-20, when large areas of Australia’s east coast burned, carbon dioxide emissions from bushfires and prescribed burns can actually outweigh Australia’s total emissions that year. However, these emissions are offset in large part when trees and shrubs regrow.

    Drier in the south, wetter in the north

    Climate change is driving a major divergence in where rain falls in Australia.

    In northern Australia, average wet-season rainfall is now about 20% higher than 30 years ago.

    But in southwestern Australia, rainfall in the cooler, growing-season months has declined 16%, and in the southeast by 9% in recent decades.

    More rain in these regions now falls in heavy, short-lived rainfall events.

    These changes are also reflected in our rivers, with significantly lower flows for about one third of the gauges in the south. Australia-wide, only 4% of our river gauges are measuring increased flows, and almost all of these are in the north.

    Flows are declining in most rivers in Australia’s south due in part to reduced rainfall, while most rivers in the north are seeing increased flows linked to higher rainfall. This map shows trends in annual median streamflow from available river gauge data in the 1970−2023 period.
    CSIRO/Bureau of Meteorology, CC BY-NC-ND

    Hotter oceans, rising seas

    Almost all (90%) of the extra heat trapped by greenhouse gases has gone into the oceans. Oceans are getting rapidly hotter. This matters because ocean heat strongly influences weather patterns in Australia.

    Australia’s oceans are warming faster than the global average. But the oceans off south-east Australia and the Tasman Sea are a particular hotspot and are now warming at twice the global average.

    As the seas warm, they expand. This thermal expansion is one of the main contributors to rising sea levels. Around Australia, sea levels have risen 22 centimetres since 1900 – with half of that since 1970.

    More emissions equals more heat

    Avoiding the worst damage from climate change is conceptually simple and unequivocal: rapidly reduce greenhouse gases in the atmosphere will help Australia meet its net zero 2050 target.

    Tasmania’s northwest tip has some of the cleanest air in the world, which is why it was chosen to host the Kennaook/Cape Grim Baseline Air Pollution Station. For 48 years, this station has been recording concentrations of greenhouse gases. The picture it captures is stark.

    Carbon dioxide (CO₂) concentrations are now about 51% higher than pre-industrial levels, while concentrations of methane and nitrous oxide, both strong greenhouse gases, continue to increase. Their rate of atmospheric accumulation has rapidly increased in recent years even as some regions and some sources have begun to see emissions slow or even decline, such as reduced CO₂ emissions from land clearing, globally and in Australia.

    Global CO₂ emissions from fossil fuel use have been increasing since the beginning of the Industrial Revolution, and increased by 1.1% from 2022 to 2023, reaching the highest annual level ever recorded.

    The warming has led to an increase in the frequency of extreme heat events over land and in the oceans.
    Leah-Anne Thompson, Shutterstock

    Australia’s carbon contribution

    This year, the State of the Climate report for the first time quantifies Australia’s major human and natural carbon sources and sinks and how they contribute to global CO₂ levels.

    It shows the average annual carbon content embedded in Australia’s fossil fuel exports between 2010 and 2019 (1,055 megatonnes) was more than double the average annual national carbon emissions over the same period (455 Mt). However, the emissions of these carbon exports are accounted in the countries where the fossil fuels are used.

    It also demonstrates the importance of maintaining the integrity of our natural land ecosystems. Ecosystems are Australia’s most important carbon sinks, but their effectiveness as sinks depends on factors including the future evolution of the climate and how it will affect rainfall and wildfire regimes.

    Australia’s Carbon Budget 2010-2019. A product of the National Environmental Science Program – Climate Systems Hub; and a contribution to the Global Carbon Project – Regional Carbon Cycle Assessment and Processes-2.
    Source: NESP-2

    What lies ahead for Australia?

    Australia’s warming is expected to continue, which will lead to more extreme heat events, lower rainfall in some regions, and longer droughts.

    We can expect to see more intense rainfall events, even in regions where average rainfall falls or stays the same.

    Sudden intense rains make flooding more likely, especially in urban areas where concrete and tarmac prevent the ground from soaking up excess water and in low-lying coastal areas where rising sea levels amplify damage from other climate hazards.

    Climate change is already here. Through multiple lines of data and evidence, we have tracked what it is doing to make Australia hotter, more prone to floods and fires, and cutting river flows in the south where most of us live.

    If warming continues, these trends will get worse over time. Understanding these changes and the impacts to Australia will help manage climate risk, now and in the decades to come.

    Blair Trewin, Senior Research Scientist at the Bureau of Meteorology, contributed to this article

    Pep Canadell receives funding from the National Environmental Science Program – Climate Systems Hub

    Neil Sims 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. State of the Climate 2024: Australia is enduring harsher fire seasons, more ocean heatwaves and sea-level rise – https://theconversation.com/state-of-the-climate-2024-australia-is-enduring-harsher-fire-seasons-more-ocean-heatwaves-and-sea-level-rise-242191

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Earth’s climate will keep changing long after humanity hits net-zero emissions. Our research shows why

    Source: The Conversation (Au and NZ) – By Andrew King, Senior Lecturer in Climate Science, The University of Melbourne

    Shutterstock

    The world is striving to reach net-zero emissions as we try to ward off dangerous global warming. But will getting to net-zero actually avert climate instability, as many assume?

    Our new study examined that question. Alarmingly, we found reaching net-zero in the next few decades will not bring an immediate end to the global heating problem. Earth’s climate will change for many centuries to come.

    And this continuing climate change will not be evenly spread. Australia would keep warming more than almost any other land area. For example if net-zero emissions are reached by 2060, the Australian city of Melbourne is still predicted to warm by 1°C after that point.

    But that’s not to say the world shouldn’t push to reach net-zero emissions as quickly as possible. The sooner we get there, the less damaging change the planet will experience in the long run.

    New research examines if climate change will stop once the world reaches net-zero emissions.
    Shutterstock

    Reaching net-zero is vital

    Global greenhouse gas emissions hit record highs in 2023. At the same time, Earth experienced its hottest year.

    Analysis suggests emissions may peak in the next couple of years then start to fall. But as long as emissions remain substantial, the planet will keep warming.

    Most of the world’s nations, including Australia, have signed up to the Paris climate agreement. The deal aims to keep global warming well below 2°C, and requires major emitters to reach net-zero as soon as possible. Australia, along with many other nations, is aiming to reach the goal by 2050.

    Getting to net-zero essentially means nations must reduce human-caused greenhouse gas emissions as much as possible, and compensate for remaining emissions by removing greenhouse gases from the atmosphere elsewhere. Methods for doing this include planting additional vegetation to draw down and store carbon, or using technology to suck carbon out of the air.

    Getting to net-zero is widely considered the point at which global warming will stop. But is that assumption correct? And does it mean warming would stop everywhere across the planet? Our research sought to find out.

    Centuries of change

    Computer models simulating Earth’s climate under different scenarios are an important tool for climate scientists. Our research used a model known as the Australian Community Climate and Earth System Simulator.

    Such models are like lab experiments for climate scientists to test ideas. Models are fed with information about greenhouse gas emissions. They then use equations to predict how those emissions would affect the movement of air and the ocean, and the transfer of carbon and heat, across Earth over time.

    We wanted to see what would happen once the world hit net-zero carbon dioxide at various points in time, and maintained it for 1,000 years.

    We ran seven simulations from different start points in the 21st century, at five-year increments from 2030 to 2060. These staggered simulations allowed us to measure the effect of various delays in reaching net-zero.

    We found Earth’s climate would continue to evolve under all simulations, even if net-zero emissions was maintained for 1,000 years. But importantly, the later net-zero is reached, the larger the climate changes Earth would experience.

    Warming oceans and melting ice

    Earth’s average temperature across land and sea is the main indicator of climate change. So we looked at that first.

    We found this temperature would continue to rise slowly under net-zero emissions – albeit at a much slower rate than we see today. Most warming would take place on the ocean surface; average temperature on land would only change a little.

    We also looked at temperatures below the ocean surface. There, the ocean would warm strongly even under net-zero emissions – and this continues for many centuries. This is because seawater absorbs a lot of energy before warming up, which means some ocean warming is inevitable even after emissions fall.

    Over the last few decades of high greenhouse gas emissions, sea ice extent fell in the Arctic – and more recently, around Antarctica. Under net-zero emissions, we anticipate Arctic sea ice extent would stabilise but not recover.

    In contrast, Antarctic sea ice extent is projected to fall under net-zero emissions for many centuries. This is associated with continued slow warming of the Southern Ocean around Antarctica.

    Importantly, we found long-term impacts on the climate worsen the later we reach net-zero emissions. Even just a five-year delay would affect on the projected climate 1,000 years later.

    Delaying net-zero by five years results in a higher global average surface temperature, a much warmer ocean and reduced sea ice extent for many centuries.

    Australia’s evolving climate

    The effect on the climate of reaching net-zero emissions differs across the world.

    For example, Australia is close to the Southern Ocean, which is projected to continue warming for many centuries even under net-zero emissions. This warming to Australia’s south means even under a net-zero emissions pathway, we expect the continent to continue to warm more than almost all other land areas on Earth.

    For example, the models predict Melbourne would experience 1°C of warming over centuries if net-zero was reached in 2060.

    Spell out GMST (global mean surface temperature?) in chart? Is listed as global average in caption??

    Net-zero would also lead to changes in rainfall in Australia. Winter rainfall across the continent would increase – a trend in contrast to drying currently underway in parts of Australia, particularly in the southwest and southeast.

    Knowns and unknowns

    There is much more to discover about how the climate might behave under net-zero.

    But our analysis provides some clues about what climate changes to expect if humanity struggles to achieve large-scale “net-negative” emissions – that is, removing carbon from the atmosphere at a greater rate than it is emitted.

    Experiments with more models will help improve scientists’ understanding of climate change beyond net-zero emissions. These simulations may include scenarios in which carbon removal methods are so successful, Earth actually cools and some climate changes are reversed.

    Despite the unknowns, one thing is very clear: there is a pressing need to push for net-zero emissions as fast as possible.

    Andrew King receives funding from the ARC Centre of Excellence for 21st Century Weather and the National Environmental Science Program.

    Tilo Ziehn receives funding from the ARC Centre of Excellence for 21st Century Weather and the National Environmental Science Program.

    – ref. Earth’s climate will keep changing long after humanity hits net-zero emissions. Our research shows why – https://theconversation.com/earths-climate-will-keep-changing-long-after-humanity-hits-net-zero-emissions-our-research-shows-why-241692

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: 215 million hectares of forest – an area bigger than Mexico – could grow back by itself, if we can just leave it alone

    Source: The Conversation (Au and NZ) – By Brooke Williams, Research Fellow, School of Biology & Environmental Science, Queensland University of Technology

    Gustavo Frazao/Shutterstock

    About 215 million hectares of land – an area bigger than Mexico – could be reforested naturally and without costly manual planting, our new research shows.

    This would allow us to offset around 23.4 gigatonnes of global carbon emissions over the next three decades. That’s about 50 years worth of Australia’s carbon emissions (assuming 2023 emission rates continue).

    Extensive and effective forest restoration is crucial to mitigating climate change and conserving biodiversity.

    It’s vital we find cost-effective ways to get and keep more trees in the ground. One way to do this is just to let forests grow back by themselves. However, this isn’t possible in all deforested lands, as certain environmental conditions are needed for this approach to work.

    Our research identified land where this approach had strong potential.

    Allowing forests to grow back naturally in deforested areas, such as this degraded land in Brazil, could be more cost-effective than manual reforestation projects.
    Author provided

    The benefits of natural regeneration

    Globally, 65% of original tropical forest extent has been lost to make way for human development such as agriculture, roads, and urbanisation. Deforestation has contributed to climate change and biodiversity loss.

    We’ve also lost a worrying amount of what researchers call “ecosystem services”, meaning the benefits people derive from nature, such as clean water.

    Forest restoration is an important strategy for reversing the damage.

    Our paper, published in the journal Nature, looked at where natural regeneration is likely to be successful due to the surrounding environmental conditions.

    Natural regeneration is important because it is sometimes better than manual tree planting, which includes the costs of saplings, manual labour, fertilisation and maintenance.

    Using manual techniques in degraded landscapes can be expensive. It can also be less effective in terms of native biodiversity recovery and keeping water systems functioning well.

    Natural regeneration is a less costly alternative. That means allowing forests to grow back on their own or with carefully planned human intervention.

    For example, natural reforestation may cost between $US12 and $3,880 per hectare. By contrast, active regeneration methods in the tropics would cost between $105 and $25,830 per hectare.

    Natural regeneration restoration methods often have better long-term success and biodiversity outcomes than full manual tree-planting.

    Studies have found that biodiversity “success” – meaning richer biodiversity and more species – can be up to 56% higher when natural regeneration approaches were used (rather than manual planting projects).

    It’s vital we find cost-effective ways to get and keep more trees in the ground.
    Richard Whitcombe/Shutterstock

    Where might natural reforestation projects succeed?

    Until now, it’s not always been clear how to predict areas where natural regeneration is most likely to occur. That’s made it hard to do large-scale natural regeneration projects.

    Our research addresses this gap. We identified the best areas to roll out natural approaches in the tropics.

    We focused on tropical forested regions because they are particularly important.

    Their biodiversity is unparalleled and they provide vast economic, cultural, and recreational services to people.

    They also grow much faster than other forest types, and many large tropical forests have already been cleared and degraded.

    Factors that make a forest likely to regenerate naturally include:

    • the amount of surrounding forest
    • distance to existing forest and
    • soil organic carbon content

    This suggests areas with higher levels of landscape degradation and intensive land uses would be less likely to regenerate naturally.

    We found suitable environmental conditions for natural regeneration occur across:

    • 98 million hectares in the Neotropics (which includes many areas in South and Central America)

    • 90 million hectares in the Indomalayan tropics (which includes many areas in Southeast Asia, Malaysia, and India)

    • 25.5 million hectares in the continent of Africa

    Up to 52% of this natural regeneration could occur in just five countries: Brazil, Indonesia, China, Mexico, and Colombia.

    This suggests these countries would be excellent candidates for large scale natural regeneration projects.

    We also found that 29 other countries have at least one million hectares each that could be naturally reforested.

    We identified 400,000 hectares of deforested lands with potential for natural forest regeneration in the Australian tropics.

    Fixing forests will also improve biodiversity.
    Martin Prochazkacz/Shutterstock

    The world has committed to fixing forests

    The world has committed to ambitious forest restoration targets in order to substantially increase the area of forest ecosystems by 2050.

    These commitments include the Bonn Challenge, which aims to restore 350 million hectares by 2030.

    Another is Target 2 of the recently adopted Global Biodiversity Framework, which calls for 30% of the area of degraded ecosystems to be restored by 2030.

    Achieving these targets, especially for nations with emerging economies, will not be possible using active restoration techniques alone. This due to cost and feasibility constraints.

    To assist with this global task, we have made our dataset publicly available and free to use.

    Local communities at the centre

    Encouraging natural regeneration remains a major challenge, particularly on privately held and communally managed land because it can mean reduced land available for other uses.

    Providing local people with training and support to grow, harvest and market products sourced from naturally regenerating forests is also crucial. This could help keep young naturally regenerating forests standing and growing.

    This income could supplement or replace payments landowners and local people currently receive to look after land and prevent it from being deforested. Payment-based approaches are not always sustainable in the long term.

    Currently, many forests are controlled and managed by central or national governments. Giving local and Indigenous communities control over their forests would help encourage restoration that meets local needs.

    However, this requires appropriate technical support and monitoring.

    Importantly, our analysis does not define where restoration activities should or should not occur. We only show where natural forest regeneration is possible or more likely to succeed.

    We echo calls to ensure restoration occurs as equitably as possible, and foregrounds the needs of local people.

    Forest restoration should be as equitable as possible, and foreground the needs of local people.
    WNDR Worlds/Shutterstock

    Let’s give it a chance

    Natural forest regeneration presents an opportunity to restore vast areas of forest cheaply and effectively. It can help mitigate the effects of climate change and help countries meet their emissions reduction targets.

    Other benefits include conserving biodiversity, regulating water resources, reducing erosion, and making ecosystems more resilient.

    Recognising the massive regeneration capacity of tropical forests is key.

    It’s also crucial it occurs alongside protecting intact forests, and reducing deforestation.

    Robin Chazdon is the global co-director of the Assisted Natural Regeneration Alliance. She is a senior fellow with the World Resources Institute’s Global Restoration Initiative.

    Brooke Williams 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. 215 million hectares of forest – an area bigger than Mexico – could grow back by itself, if we can just leave it alone – https://theconversation.com/215-million-hectares-of-forest-an-area-bigger-than-mexico-could-grow-back-by-itself-if-we-can-just-leave-it-alone-236696

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: The UN warns famine is likely in Gaza. What do malnutrition and hunger do to the body?

    Source: The Conversation (Au and NZ) – By Clare Dix, Lecturer In Nutrition & Dietetics, University of the Sunshine Coast

    Anas-Mohammed/Shutterstock

    The risk of famine looms in Gaza. International monitors warn more than 90% of the population face acute food insecurity, meaning their inability to eat enough food puts them in immediate danger of starvation. The number experiencing “catastrophic” hunger is set to double in the coming months.

    Israel has been accused of deliberately blocking humanitarian aid, including food. In September, deliveries of food and aid to Gaza fell to their lowest in seven months after Israel introduced new customs rules.



    Read more:
    Gaza: weaponisation of food has been used in conflicts for centuries – but it hasn’t always resulted in victory

    The World Health Organization has repeatedly warned about the consequences of hunger and food insecurity in the region, including the impact on rising infection rates and increased child mortality.

    The scale of this humanitarian crisis could be overwhelming, as extreme hunger threatens to engulf an entire population – nearly half of which are children.

    What does hunger mean for people’s health – especially children – at the individual level? And will survivors be able to recover from the damage?

    Who is most at risk?

    Food shortages mean people not only eat less overall but can miss out on essential nutrients.

    This can lead to severe acute malnutrition. In children, this means measurable negative effects on bodily functions and growth, including weight and muscle loss.

    Some people will experience the effects of starvation more rapidly. Those most at risk have low stores of energy and protein, and/or higher nutritional needs for growth and development. They include the elderly, infants, children, and women who are pregnant or breastfeeding.

    Childhood nutrition is critical

    From a nutritional viewpoint, the first 1,000 days of life are a critical window for growth and development.

    During this time, the microbiome (the bacteria that live in our digestive system) develops and is influenced by external factors such as diet, and exposure to microbes and pollutants, which shape how the body and immune system function.

    Severe acute malnutrition has several short-term impacts. Malnourished children have reduced immunity, meaning they are less able to fight infections – such as E.coli – partly due to changes to their microbiome. This makes them more vulnerable to contaminated food and water.

    Bacterial infection is a leading cause of death for children with severe acute malnutrition.

    Israel has destroyed around two-thirds of Gaza’s water systems, according to UNICEF, forcing children to drink unsafe water and increasing their exposure to sewage and waterborne diseases.



    Read more:
    Polio in Gaza: what does this mean for the region and the world?

    Long-term impacts of malnutrition

    The effects of malnutrition and starvation during childhood continue into adulthood. Those who survive have a higher risk of developing chronic diseases, including diabetes, high blood pressure and metabolic syndrome (a cluster of conditions that can increase your risk for heart disease and stroke).

    Damage to the gut lining can also cause long-term inflammation. This may make it harder to absorb nutrients, increase the risk of bacterial imbalances, and stop the pancreas and liver working properly.

    Muscle loss and changes in electrolytes can also impact the heart, increasing the risk of arrhythmia (irregular heartbeat).

    What about the brain?

    Malnutrition can harm brain development in children. It can reduce brain size and slow growth, potentially impairing function and memory.

    Impacts on how the brain develops could affect cognition, behaviour and reduce academic achievement.

    More research is needed to understand how malnutrition during childhood affects mental health. But studies suggest it may be linked to personality disorders, attention deficits, lower self-esteem and reduced quality of life.

    For children in Gaza, these harms will likely be compounded by trauma and displacement.

    Impact during pregnancy

    Malnutrition can also affect the health of unborn babies. Famine and food shortages in Gaza mean pregnant women are not getting enough folate, iron, vitamin B12 and iodine. These nutrients are crucial to ensure their baby’s healthy delivery and reduce long-term health impacts.

    Nutritional deficiencies for the mother during pregnancy can increase the baby’s risk of clinical obesity, type 2 diabetes and metabolic syndrome.

    Although less well-studied, there is also evidence a father’s diet, health, sperm quantity and quality can have similar health impacts on their offspring.

    How is severe acute malnutrition treated?

    Severely malnourished people need nutritional rehabilitation. This involves slowly increasing nutrient intake – by around 25% above normal requirements – and eating high-quality, protein-rich foods, essential fatty acids, vitamins and minerals.

    During the initial treatment phase children may need to be hospitalised. One concern is refeeding syndrome, a condition where sudden availability of glucose can cause rapid changes in electrolytes. In extreme cases, this can cause heart failure. Researchers are also investigating how to restore the microbiome of malnourished children.

    But access to adequate treatment is not assured, given the widespread damage to Gaza’s hospital system.

    Unfortunately successful treatment doesn’t guarantee survival. Lasting impacts of severe acute malnutrition are linked to high rates of disease and early death, even after treatment. Studies suggest up to 10.4% of children successfully treated in hospitals do not survive 12 months after they’re discharged.

    The devastating social and food conditions in Gaza are unimaginable to those of us living in other parts of the world. With no end in sight, the impact of food insecurity and lack of humanitarian aid can only lead to an escalation of the rates of malnutrition and diseases in those most vulnerable.

    The long-term consequences for Palestinians will be felt for generations to come.

    Clare Dix has received funding from the Australian Department of Health and Aged Care.

    Helen Truby receives funding from the Commonwealth Department of Health and Ageing, the MRFF, the NHMRC and various philanthropic agencies.

    – ref. The UN warns famine is likely in Gaza. What do malnutrition and hunger do to the body? – https://theconversation.com/the-un-warns-famine-is-likely-in-gaza-what-do-malnutrition-and-hunger-do-to-the-body-241682

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: How light can shift your mood and mental health

    Source: The Conversation (Au and NZ) – By Jacob Crouse, Research Fellow in Youth Mental Health, Brain and Mind Centre, University of Sydney

    llaszlo/Shutterstock

    This is the next article in our ‘Light and health’ series, where we look at how light affects our physical and mental health in sometimes surprising ways. Read other articles in the series.

    It’s spring and you’ve probably noticed a change in when the Sun rises and sets. But have you also noticed a change in your mood?

    We’ve known for a while that light plays a role in our wellbeing. Many of us tend to feel more positive when spring returns.

    But for others, big changes in light, such as at the start of spring, can be tough. And for many, bright light at night can be a problem. Here’s what’s going on.

    An ancient rhythm of light and mood

    In an earlier article in our series, we learned that light shining on the back of the eye sends “timing signals” to the brain and the master clock of the circadian system. This clock coordinates our daily (circadian) rhythms.

    “Clock genes” also regulate circadian rhythms. These genes control the timing of when many other genes turn on and off during the 24-hour, light-dark cycle.

    But how is this all linked with our mood and mental health?

    Circadian rhythms can be disrupted. This can happen if there are problems with how the body clock develops or functions, or if someone is routinely exposed to bright light at night.

    When circadian disruption happens, it increases the risk of certain mental disorders. These include bipolar disorder and atypical depression (a type of depression when someone is extra sleepy and has problems with their energy and metabolism).

    Light on the brain

    Light may also affect circuits in the brain that control mood, as animal studies show.

    There’s evidence this happens in humans. A brain-imaging study showed exposure to bright light in the daytime while inside the scanner changed the activity of a brain region involved in mood and alertness.

    Another brain-imaging study found a link between daily exposure to sunlight and how the neurotransmitter (or chemical messenger) serotonin binds to receptors in the brain. We see alterations in serotonin binding in several mental disorders, including depression.

    Our mood can lift in sunlight for a number of reasons, related to our genes, brain and hormones.
    New Africa/Shutterstock

    What happens when the seasons change?

    Light can also affect mood and mental health as the seasons change. During autumn and winter, symptoms such as low mood and fatigue can develop. But often, once spring and summer come round, these symptoms go away. This is called “seasonality” or, when severe, “seasonal affective disorder”.

    What is less well known is that for other people, the change to spring and summer (when there is more light) can also come with a change in mood and mental health. Some people experience increases in energy and the drive to be active. This is positive for some but can be seriously destabilising for others. This too is an example of seasonality.

    Most people aren’t very seasonal. But for those who are, seasonality has a genetic component. Relatives of people with seasonal affective disorder are more likely to also experience seasonality.

    Seasonality is also more common in conditions such as bipolar disorder. For many people with such conditions, the shift into shorter day-lengths during winter can trigger a depressive episode.

    Counterintuitively, the longer day-lengths in spring and summer can also destabilise people with bipolar disorder into an “activated” state where energy and activity are in overdrive, and symptoms are harder to manage. So, seasonality can be serious.

    Alexis Hutcheon, who experiences seasonality and helped write this article, told us:

    […] the season change is like preparing for battle – I never know what’s coming, and I rarely come out unscathed. I’ve experienced both hypomanic and depressive episodes triggered by the season change, but regardless of whether I’m on the ‘up’ or the ‘down’, the one constant is that I can’t sleep. To manage, I try to stick to a strict routine, tweak medication, maximise my exposure to light, and always stay tuned in to those subtle shifts in mood. It’s a time of heightened awareness and trying to stay one step ahead.

    So what’s going on in the brain?

    One explanation for what’s going on in the brain when mental health fluctuates with the change in seasons relates to the neurotransmitters serotonin and dopamine.

    Serotonin helps regulate mood and is the target of many antidepressants. There is some evidence of seasonal changes in serotonin levels, potentially being lower in winter.

    Dopamine is a neurotransmitter involved in reward, motivation and movement, and is also a target of some antidepressants. Levels of dopamine may also change with the seasons.

    But the neuroscience of seasonality is a developing area and more research is needed to know what’s going on in the brain.

    How about bright light at night?

    We know exposure to bright light at night (for instance, if someone is up all night) can disturb someone’s circadian rhythms.

    This type of circadian rhythm disturbance is associated with higher rates of symptoms including self-harm, depressive and anxiety symptoms, and lower wellbeing. It is also associated with higher rates of mental disorders, such as major depression, bipolar disorder, psychotic disorders and post-traumatic stress disorder (or PTSD).

    Why is this? Bright light at night confuses and destabilises the body clock. It disrupts the rhythmic regulation of mood, cognition, appetite, metabolism and many other mental processes.

    But people differ hugely in their sensitivity to light. While still a hypothesis, people who are most sensitive to light may be the most vulnerable to body clock disturbances caused by bright light at night, which then leads to a higher risk of mental health problems.

    Bright light at night disrupts your body clock, putting you at greater risk of mental health issues.
    Ollyy/Shutterstock

    Where to from here?

    Learning about light will help people better manage their mental health conditions.

    By encouraging people to better align their lives to the light-dark cycle (to stabilise their body clock) we may also help prevent conditions such as depression and bipolar disorder emerging in the first place.

    Healthy light behaviours – avoiding light at night and seeking light during the day – are good for everyone. But they might be especially helpful for people at risk of mental health problems. These include people with a family history of mental health problems or people who are night owls (late sleepers and late risers), who are more at risk of body clock disturbances.

    Alexis Hutcheon has lived experience of a mental health condition and helped write this article.

    If this article has raised issues for you, or if you’re concerned about someone you know, call Lifeline on 13 11 14.

    Jacob Crouse receives funding from Wellcome Trust and National Health and Medical Research Council.

    Professor Hickie is a Professor of Psychiatry and the Co-Director of Health and Policy, Brain and
    Mind Centre, University of Sydney. He has led major public health and health service development
    in Australia, particularly focusing on early intervention for young people with depression, suicidal
    thoughts and behaviours and complex mood disorders. He is active in the development through
    codesign, implementation and continuous evaluation of new health information and personal
    monitoring technologies to drive highly-personalised and measurement-based care. He holds a 3.2%
    equity share in Innowell Pty Ltd that is focused on digital transformation of mental health services.

    Emiliana Tonini 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. How light can shift your mood and mental health – https://theconversation.com/how-light-can-shift-your-mood-and-mental-health-231282

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Collisions between planes and birds follow seasonal patterns and overlap with breeding and migration – new research

    Source: The Conversation (Au and NZ) – By Tirth Vaishnav, PhD Candidate in Ecology and Biodiversity, Te Herenga Waka — Victoria University of Wellington

    Getty Images

    Bird strikes with aircraft pose a serious threat to human safety. The problem dates back to the early days of aviation, with the first death of a pilot recorded in 1912 when an aircraft crashed into the sea after striking a gull.

    Since then, 795 lives have been lost to collisions between aircraft and birds, not to mention the countless bird fatalities.

    As aircraft get faster, quieter, larger and more numerous, the risk of serious accidents increases accordingly. Every year, the aviation industry incurs damages worth billions of dollars.

    To mitigate this problem, airports around the world implement wildlife hazard management, including dispersing flocks away from the runway, tracking local bird movements and managing potential food sources such as landfills and farms near the aerodrome.

    In our recent study, we zoomed out from the local airport and examined seasonal and hemispheric trends in bird strikes.

    We found they peak in late summer and autumn in both hemispheres, but the annual distribution differs between the northern and southern hemispheres. Seasonal trends in bird strikes were seemingly influenced by avian breeding and migration patterns.

    Airports deploy noise barriers and reflective walls to keep birds away from the runway.
    Getty Images

    Seasonal patterns

    To assess seasonal patterns in bird strikes, we gathered information for individual airports from existing literature and online sources. Our dataset includes 122 airports in 16 countries and five continents.

    For each hemisphere, we determined the time of year with the overall highest number of bird strikes and the spread of strikes through the year.

    We found that bird strikes peaked in late August in the northern hemisphere and in early April in the southern hemisphere. Strikes were relatively more seasonal in the north, while they had a greater annual spread in the south.

    For instance, strikes in New York or Oslo in the northern hemisphere were considerably higher in August compared to other times of the year, while in Wellington or Durban in the southern hemisphere, strikes occurred more consistently throughout the year.

    Birds strikes are more seasonal in the northern hemisphere and more distributed across the year in the southern hemisphere.
    Author provided, CC BY-SA

    Bird strikes peaked in the autumn season in each hemisphere. Autumn is generally when young birds fledge and take to the skies. There may be two explanations for why bird strikes are higher during this time of year.

    1. For young birds, avoiding foreign objects in the flight path may be a learned behaviour. This would result in juveniles being struck at a higher rate.

    2. The greater number of birds in the air during autumn due to the influx of fledglings may result in more strikes, with adults and juveniles being struck at random.

    Links to bird migration

    Seasonal peaks in bird strikes were more pronounced in the north compared to the south. Approximately 80% of the southern hemisphere’s surface is water and the solar energy absorbed by the oceans leads to a more stable thermal regime.

    Conversely, the surface of the northern hemisphere is mostly land, leading to greater fluctuations in temperature. Birds migrate in response to these environmental factors and this influences global avian distributions and abundances.

    The intensity of migration is, therefore, much stronger in the northern hemisphere compared to the southern hemisphere, where local bird abundances are more stable seasonally.

    Our findings bridge a gap between aviation safety and macroecology. Airport authorities can use this information in several ways.

    • Wildlife officers can optimise their bird strike mitigation efforts by allocating more resources in the autumn months, particularly in northern regions.

    • Management plans for “problem” species such as gulls are often adapted from existing plans for similar species at other airports. Information on patterns in bird strikes may help in customising these plans to local bird behaviour.

    • Bird strikes are a global issue, so better standardisation in reporting bird strike statistics could improve our ability to analyse them at a global scale.

    Finally, with climate change altering the seasonal timing of cyclical events, such as avian breeding seasons and migration patterns, it may be crucial to forecast the impact of these changes on the seasonal trends in bird strikes.

    To some degree, bird strikes may be inevitable. But with the cooperation of aviation authorities, scientists and policy makers, we may be able to minimise their frequency and intensity.

    Tirth Vaishnav 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. Collisions between planes and birds follow seasonal patterns and overlap with breeding and migration – new research – https://theconversation.com/collisions-between-planes-and-birds-follow-seasonal-patterns-and-overlap-with-breeding-and-migration-new-research-241238

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: Rep. Norcross Presents $750,000 in Community Project Funding for the Redevelopment of John Lucas House in Gibbsboro

    Source: United States House of Representatives – Congressman Donald Norcross (1st District of New Jersey)

    CHERRY HILL, NJ – Today, Rep. Donald Norcross (D-NJ) presented $750,000 in Community Project Funding (CPF) to the Borough of Gibbsboro to redevelop the John Lucas House into a community event space.  

    The funding was secured through the Fiscal Year 2024 government funding package and will be used to assist in lead paint remediation, construct kitchen and restroom facilities, and repair structural deficiencies at the John Lucas House. The Borough envisions the house as the center for activities on Silver Lake and will be used to host public and private events.

    “Community Project Funding grants invest in our communities and support economic development, job creation, and critical projects that improve the quality of life,” Rep. Norcross said. “Bringing neighbors together for events is important for fostering a sense of community, and it’s an honor to have secured this funding to make this new event space a reality.”  

    “The FY2024 Congressional designated spending for the transformation of the former home of John Lucas into an events venue at Silver Lake in Gibbsboro complements the redevelopment of the former Paint Works Corporate Center into a destination with townhomes, walking trails, restaurants and office space,” said?Mayor Ed Campbell. “Gibbsboro is forever grateful to Congressman Norcross for his continued support for this important project and for his persistent dedication to seeing the three superfund sites in Gibbsboro fully remediated and the Borough’s effort toward economic redevelopment.” 

    Rep. Norcross recently secured 14 CPF awards totaling $13,565,031 for projects throughout New Jersey’s First Congressional District to support economic development, create jobs, and respond to the most pressing needs of the community. More information on the 14 projects can be found here. 

    Since the creation of CPFs in 2021, Rep. Norcross has secured $28.8 million in awards for local projects throughout South Jersey. CPF awards secured by Rep. Norcross range from road and transportation projects and affordable housing upgrades to improving health care and education accessibility.  

     

    ### 

    MIL OSI USA News –

  • MIL-OSI New Zealand: Sudan – Over 2.8 million children under five forced from their home across Sudan – Save the Children

    Source: Save the Children

    More than 2.8 million babies, toddlers and preschoolers are now displaced across Sudan, said Save the Children, with new figures released by the IOM showing the world’s largest displacement crisis is rapidly deteriorating for children.
    About 11 million people in Sudan – or 30% of the population – have been forced from their homes, including those displaced before and since the most recent conflict escalated in April 2023. The numbers have risen by 200,000 in the last month alone, with more than 45,000 people displaced in Al Jazirah state including 27,000 children in the past seven days [1].
    New figures reveal over half of the 11 million displaced – or 5.8 million – are children under 18, and over one quarter – or 2.8 million – are children aged under five [2]. These small children are uniquely vulnerable, and while displaced many will miss out on early childhood essentials – including vaccinations, clean water, healthcare, nutritious food, and shelter from extreme heat and cold.
    While about half of these children are now living in host communities, the remaining half are living in desperate conditions, with 18% in displacement camps, 16% in informal settlements or out in the open, and 9% in cramped schools or other public buildings. Many of these children are sharing their space with adults they don’t know, and have limited or no access to water and sanitation.
    Girls are particularly at risk, with over 3.2 million of the displaced children girls under 18, who face particular threats of sexual violence, rape, or early or forced marriage.
    Red Sea state in the country’s east has the highest proportion of displaced children, with children making up 60% of all displaced people, followed by Central Darfur with 57%. More than a third of those children and families now displaced in Sudan are from the capital Khartoum, which has witnessed some of the fiercest fighting of the conflict, followed by South Darfur (19%) and North Darfur (15%).
    Mohamed Abdiladif, Interim Country Director for Save the Children in Sudan, said:
    “Babies, toddlers, preschoolers – millions of the world’s most vulnerable people are currently living in some of the world’s worst conditions. The world has a duty of care for children and we are failing them.
    “When people are forced to flee their homes due to violence, it’s usually the women and. children who go first – and we often see displacement camps filled with children. But the number of children displaced in Sudan – and in particular, their young age and vulnerability – is staggering.
    “The situation in Sudan is spiralling out of control and every day more and more lives are put at risk with killings, violence and displacement. This has become one of the world’s most devastating humanitarian crisis but the world is not taking notice.
    “In the past week alone at least 10 children have been killed , including children as young as 10, and at least 43 children injured in Al Jazirah state. The UN has reported girls as young as 13 subjected to rape and sexual assault. We have also heard reports of children being detained, the widespread destruction of homes, and massive displacement, with families walking for days to reach safety.
    “We are urgently calling on the international community to take meaningful and urgent political action to address this crisis, for an immediate ceasefire and progress towards a lasting peace agreement.”
    Save the Children has worked in Sudan since 1983 and is currently supporting children and their families across Sudan providing health, nutrition, education, child protection and food security and livelihoods support. Save the Children is also supporting refugees from Sudan in Egypt and South Sudan.
    Notes
    [1] On 28 October, UNICEF reported more than 9,000 households, including over 45,000 people, were forced from their homes in Tamboul and its surrounding villages between 20 and 27 October 2024. A calculation of a household includes 2 adults and 3 children, thus 27,000 children displaced.
    [2] Figures from Sudan Mobility Update 29 October 2024 https://dtm.iom.int/reports/dtm-sudan-mobility-update-10

    MIL OSI New Zealand News –

  • MIL-OSI Security: FBI Chicago, Illinois Attorney General’s Office Seeking Information about Multiple Suspects in Jewelry Store Armed Robberies in Bridgeview

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    Douglas S. DePodesta, special agent in charge of the Chicago Division of the FBI, and Kwame Raoul, attorney general for the State of Illinois, are seeking information about four masked suspects involved in armed robberies taking place at four jewelry stores across three states between July 13, 2023, and September 14, 2024. Authorities are urging anyone with information to contact the FBI.

    The robberies in question have taken place at jewelry stores in Bridgeview, Illinois, as well as in Michigan and Missouri. According to law enforcement, suspects alternately carried an AR-style rifle, handgun, and hammer, and wore costume face masks. The FBI on October 30 released surveillance video footage of robberies that took place at stores in Bridgeview, Illinois, and Dearborn, Michigan. The video and images of the costume masks are available at fbi.gov/wanted/seeking-information.

    “The perpetrators of these crimes showed a blatant disregard for public safety and the rule of law during the commission of these brazen robberies,” DePodesta said. “Their actions will haunt these victims for a lifetime, and we’re asking for the public’s help to bring them to justice before someone is killed. We encourage the public to take a good look at the images we’ve released today and contact us with tips before these violent individuals strike again.”

    JEWELRY STORE ROBBERIES

    Unknown Suspects Bridgeview, Illinois; Dearborn, Michigan; and Winchester, Missouri  July 13, 2023; January 9, 2024; August 7, 2024; and September 14, 2024

    MIL Security OSI –

  • MIL-OSI Submissions: Research – Great Place To Work® Releases Study On Workplace Well-being With Johns Hopkins University

    Source: Great Place To Work®

    Great Place To Work® Releases Study On Workplace Well-being With Johns Hopkins University In Critical Areas Of Mental And Emotional Support, Teamwork, Psychological Safety And Finance Stability

    Singapore, 30 October 2024 – Great Place To Work® Singapore marked its 10th anniversary at its Best Workplaces in Singapore 2024 event with the release of the Great is Possible: Charting a Decade of Progress in Singapore Workplaces (2015-2024) insights report. The report highlights the transformation of Singapore’s workplaces over the past decade, with a special focus on well-being and mental health. This year’s event also introduced the new Legends category, honouring organisations that have consistently made the Best Workplaces list for five or more consecutive years.

    Held at The Ritz-Carlton, the milestone celebration was graced by Deputy Prime Minister Heng Swee Keat and attended by close to 420 guests, including business leaders and employees from Great Place To Work Certified companies.

    Michael C. Bush, Chief Executive Officer of Great Place To Work®, giving his keynote address at the 10th Anniversary of Best Workplaces in Singapore / Great Place to Work® Singapore.

    A Decade of Change in Singapore’s Workplaces

    Over the past ten years, Great Place To Work has led the way in understanding what makes workplaces thrive in Singapore. Great Place To Work Singapore has administered over 400,000 surveys across nearly 1,000 workplaces from more than 440,000 employees since its establishment in 2015.

    In conjunction with its 10th anniversary, Great Place To Work Singapore unveiled the Great is Possible: Charting a Decade of Progress in Singapore Workplaces (2015-2024) insights report, which provides a comprehensive analysis of data collected from 2015 to 2024. The report, based on input from approximately 440,000 employees in the Trust Index Employee Survey, examines the evolving trends and shifts in workplace culture, leadership, and employee well-being. Key findings include:

    • Leadership integrity and psychological safety remain pivotal in fostering positive employee experiences
    • Concerns about fairness in compensation and bridging experience gaps across different organisational levels
    • Employee trust and satisfaction have been on the rise at Best Workplaces for the past ten years, evidenced by a steady increase in overall Trust Index scores

    Spotlight on Employee Well-Being and Burnout

    In response to the rising focus on employee burnout and mental health, Great Place To Work also conducted a study on workplace well-being over the past five years in Singapore. Produced in collaboration with Johns Hopkins University’s Human Capital Development Lab, Well-Being At Work: Fostering a Healthy Work Climate For All examines well-being trends from 2019 to 2024, identifying key factors that influence workplace well-being in Singapore. It draws on data from Great Place To Work’s proprietary Trust Index survey, which included insights from over 200 organisations and 40,000 respondents in the critical areas of mental and emotional support, teamwork, psychological safety, and financial stability.

    The results revealed significant variations in well-being across several dimensions:

    Age and Gender
    • Women and younger employees reported lower well-being levels
    • However, the gender gap narrows among younger generations, suggesting future workforces may experience fewer gender-based disparities.

    Management Levels
    • Senior management reported higher well-being scores, attributed to a sense of purpose, personal growth, and financial stability.

    Impact of COVID-19
    • The pandemic initially boosted employee well-being as organisations prioritised care for their teams.
    • A decline in overall well-being levels was observed as businesses returned to traditional work environments.

    Importance of Connections
    • Strong connections and personal support play a crucial role in fostering a positive work climate.
    • There are strong correlations between teamwork, psychological safety, and overall well-being.

    Notably, Best Workplaces lead the way in well-being, consistently demonstrating higher employee well-being scores. Many of these companies achieve this through certified mental well-being ambassadors and comprehensive health and wellness programs. However, the success of such initiatives depends on employee perceptions influenced by organisational culture and values, highlighting the need for solutions that align with management practices and HR processes, rather than merely addressing issues superficially.

    “Over the past decade, Great Place To Work has witnessed the evolving needs of Singapore’s workplaces. Our reports highlight the growing importance of leadership integrity, psychological safety, and employee well-being. Despite the challenges of the past few years, leading organisations have shown that prioritising inclusion and investing in their people is essential for creating thriving work environments. We hope our findings will inspire more organisations to create high-trust, high-performing workplace cultures where everyone can thrive,” shared Ms Evelyn Kwek, Managing Director of Great Place To Work ASEAN and ANZ.

    Looking Ahead: “Great is Possible”

    This year’s milestone event embraced the theme “Great is Possible,” acknowledging the resilience and innovation of organisations in the face of an ever-changing business climate. A highlight of the 10th anniversary celebration was the introduction of the new Legends category to recognise exceptional companies with an impressive record—having been placed on the Best Workplaces in Singapore List for at least five consecutive years. These Legends stand as models of excellence in what Great looks like in the ever-evolving landscape of the modern workplace.

    The inaugural Legends list includes:
    • Cisco (5 Years)
    • DHL Express (Singapore) Pte Ltd (8 Years)
    • HP (5 Years)
    • Micron Technology (6 Years)
    • Salesforce (10 Years)
    • World Wide Technology (5 Years)

    CEO Michael C. Bush delivered a keynote address on how businesses can transform into great workplaces by prioritising trust, inclusion, and employee value. He emphasised the necessity of achieving greatness for both the present and future of work, and urged leaders to take actionable steps to create environments where all employees can thrive and drive outstanding business outcomes.

    Managing Director of Great Place To Work ASEAN and ANZ, Ms Evelyn Kwek said, “As we celebrate 10 years of the Best Workplaces list in Singapore, we are proud to honour our Legends. They have set the standard for what it means to be a truly Great Workplace, and their success shows what organisations can achieve when they put their people first. We hope our list-makers continue to inspire more organisations to reach for Great.”

    About Great Place To Work®

    As the global authority on workplace culture, Great Place To Work brings 30 years of ground-breaking research and data to help every place become a great place to work for all. Their proprietary platform and For AllTM Model helps companies evaluate the experience of every employee, with exemplary workplaces becoming Great Place To Work Certified or receiving recognition on a coveted Best Workplaces List. Follow Great Place To Work® on LinkedIn, Facebook, and Instagram or visit greatplacetowork.com.sg to learn more.

    About Great Place To Work® Certification

    Great Place To Work Certification is the most definitive “employer-of-choice” recognition that companies aspire to achieve. It is the only recognition based entirely on what employees report about their workplace experience – specifically, how consistently they experience a high-trust workplace. Great Place To Work Certification is recognised worldwide by employees and employers alike and is the global benchmark for identifying and recognising outstanding employee experience. Every year, more than 10,000 companies across 97 countries apply to earn Great Place To Work Certification.

    MIL OSI – Submitted News –

  • MIL-OSI Video: Department of State Daily Press Briefing – October 30, 2024

    Source: United States of America – Department of State (video statements)

    Spokesperson Matthew Miller leads the Department Press Briefing, at the Department of State, on October 30, 2024.

    ———-
    Under the leadership of the President and Secretary of State, the U.S. Department of State leads America’s foreign policy through diplomacy, advocacy, and assistance by advancing the interests of the American people, their safety and economic prosperity. On behalf of the American people we promote and demonstrate democratic values and advance a free, peaceful, and prosperous world.

    The Secretary of State, appointed by the President with the advice and consent of the Senate, is the President’s chief foreign affairs adviser. The Secretary carries out the President’s foreign policies through the State Department, which includes the Foreign Service, Civil Service and U.S. Agency for International Development.

    Get updates from the U.S. Department of State at www.state.gov and on social media!
    Facebook: https://www.facebook.com/statedept
    Twitter: https://twitter.com/StateDept
    Instagram: https://www.instagram.com/statedept
    Flickr: https://flickr.com/photos/statephotos/

    Subscribe to the State Department Blog: https://www.state.gov/blogs
    Watch on-demand State Department videos: https://video.state.gov/
    Subscribe to The Week at State e-newsletter: http://ow.ly/diiN30ro7Cw

    State Department website: https://www.state.gov/
    Careers website: https://careers.state.gov/
    White House website: https://www.whitehouse.gov/

    #StateDepartment #DepartmentofState #Diplomacy

    https://www.youtube.com/watch?v=EMLOey2yWOA

    MIL OSI Video –

  • MIL-OSI USA: Magaziner, HealthSource RI Kick Off 2025 Open Enrollment for Rhode Island’s State-Based Health Insurance Marketplace

    Source: United States House of Representatives – Representative Seth Magaziner (RI-02)

    November 1 is the first date to enroll.

    CRANSTON, R.I. — U.S. Representative Seth Magaziner (RI-02) joined HealthSource RI (HSRI) Director Lindsay Lang today at Comprehensive Community Action Program (CCAP)’s Family Health Services of Cranston to kick off the annual Open Enrollment period for the state’s health exchange, beginning Friday, November 1 and running through January 31. New customers can purchase plans, and existing customers can change their plan selections during this time without needing a qualifying life event.

    HSRI has served nearly 161,000 Rhode Islanders since its inception in 2013, roughly mirroring the proportion of 1 in 7 Americans, or about 50 million individuals, served by state and federal exchanges nationwide. HSRI’s role in connecting Rhode Islanders to coverage has been booming in recent months, with enrollment swelling to an all-time high of more than 46,000 in its individual and family plan offerings, and an additional 8,200 lives covered through its small employers arm serving local businesses and nonprofits with access to small group plans. Recent findings of its Health Information Survey put Rhode Island’s uninsured rate at a remarkably low 2.2%, among the best in the nation.

    “Every Rhode Islander deserves access to affordable, high-quality healthcare,” said Rep. Seth Magaziner. “The Affordable Care Act has expanded health coverage for tens of thousands of people in our state, and I will continue fighting to protect this lifesaving law from those who seek to repeal it.”

    As the only place Rhode Islanders can receive financial help to pay for their health coverage, HSRI plays a vital role in connecting customers to quality coverage. Currently, 6 out of 7 HSRI customers receive financial assistance, and nearly a third of customers pay less than $10 per month for their health coverage. For 2025, customers can choose from an array of 20 health plans and seven dental plans, all provided by well-known insurance carriers, when shopping through the marketplace. Cost-comparison tools on the HealthSource RI website and an abundance of phone, web-based and in-person support options make it convenient to get help when reviewing plans.

    “HealthSource RI is proud to serve an important role in connecting so many Rhode Islanders to quality coverage,” said HSRI Director Lindsay Lang. “Having the coverage you need for preventive care, or treatment when you or your loved one are sick, is a vital stabilizing tool for families and individuals, across all walks of life. With more than a decade of experience as a trusted guide, HSRI is here to help ensure our fellow Rhode Islanders have that peace of mind.”

    Along with Magaziner and Lang, Joanne McGunagle, President & CEO of CCAP, whose trained navigators assist community members at numerous locations statewide in the application process for coverage through both HealthSource RI and Medicaid, spoke to the importance of high-quality health coverage for patients in order to seek preventative health care and maintain healthier communities.

    “As the major provider of health care in the City of Cranston, we know how vitally important it is for our patients to have access to affordable health insurance. CCAP is proud to have our Navigators working directly with patients to assist with enrollment in health insurance, in collaboration with RIHCA and HealthsourceRI. HealthSource RI provides expert staff to assist them in selecting a plan that makes sense for them and their families. With diminishing availability of medical providers, having health insurance gives them a step up and more options to receive care.  We are grateful to Congressman Magaziner for championing this most valued service for the most vulnerable,” said Joanne McGunagle, President & CEO of CCAP.

    Individuals and families can learn about various types of assistance, compare costs, and enroll in, change or renew their health and dental coverage at HealthSourceRI.com/OE, or call 1-855-840-HSRI (4774).

    MIL OSI USA News –

  • MIL-OSI USA: Rep. Huffman, Richardson Bay Regional Agency Celebrate Launch of New Eelgrass Protection Zone

    Source: United States House of Representatives – Congressman Jared Huffman Representing the 2nd District of California

    Initiative will protect critical environmental component of Richardson Bay

    October 30, 2024

    Sausalito, CA— U.S. Representative Jared Huffman (D-CA-02) along with the Richardson Bay Regional Agency (RBRA) and federal, state, and local partners today celebrated the launch of a new Eelgrass Protection Zone, an area of the water off-limits to anchoring that will help restore and protect a critical ecological component of the Bay.

    “This is such an important day for the environment of Richardson Bay and the entire San Francisco Bay area,” said Representative Jared Huffman. “Eelgrass acts as the foundation for so much of what we love about the bay — from supporting herring runs and thousands of migratory birds, to helping ward off the impacts of climate change. By taking these measures now, RBRA is protecting Richardson Bay’s amazing natural resources for generations to come, and I’m glad we could help support this work with funding from the Biden-Harris administration.”

    Eelgrass is a critical component of a healthy and vibrant Richardson Bay. It supports fisheries, reduces erosion, sequesters carbon and is a crucial ecological resource for harbor porpoises, seals, and sea lions. However, when anchors, chains, and other ground tackle scrape along the Bay bottom, they essentially act as a lawn mower for all living plants. This creates “crop circles” or barren areas where no eelgrass can grow.

    To combat those impacts and to provide an opportunity for eelgrass to recover, after an extensive public process, the RBRA established an Eelgrass Protection Zone (EPZ) in Richardson Bay where no anchoring is allowed. While a few vessels remain in the EPZ, all boats will eventually be removed from the area. Today, the RBRA celebrated the implementation of the EPZ with new signage and markings dictating the exact parameters of the off-limits area.

    “We’ve been able to reduce the number of vessels in the Eelgrass Protection Zone by working in a productive, supportive manner with boat owners.,” said RBRA Board Chair Jim Lynch. “From finding housing for people transitioning off the anchorage to buying back vessels people could no longer manage, we’ve worked tirelessly to find solutions to the challenge of protecting our environment while being mindful of housing needs, and the historic conditions on the Bay.”

    In 2022, there were more than 100 vessels in the Eelgrass Protection Zone. Through various efforts, the RBRA has reduced that number to just 20 as of October 23.

    Last year, the RBRA and its partners at Audubon California and San Francisco State University secured a $2.8 million federal grant from the US Environmental Protection Agency to support eelgrass restoration and protection efforts. This builds on years of investment by the National Oceanic and Atmospheric Administration, the California Ocean Protection Council, and others in improving environmental conditions in the bay through targeted restoration, marine debris removal, wildlife monitoring, and outreach.

    The EPA grant is aimed at restoring at least 15 acres of eelgrass over four years through an innovative public-private partnership centered around the EPZ. The funding was made possible by the progress RBRA and its partners have made in securing the eelgrass bed from future damage, and will support RBRA’s recently-adopted 10-year Restoration and Adaptive Management Plan for Eelgrass in Richardson Bay.

    “Initiatives like the Eelgrass Protection Zone are essential to support a healthy San Francisco Bay,” said U.S. EPA Pacific Southwest Regional Administrator Martha Guzman. “The Richardson Bay Regional Agency and its partners have established themselves as protectors of eelgrass habitat through this detailed plan that can ensure an expansion of eelgrass acres over time.”

    “This is a landmark moment for the Richardson Bay community,” said Wade Crowfoot, Secretary of the California Natural Resources Agency. “Initiatives like the Eelgrass Protection Zone play a vital role in achieving California’s goal of conserving 30 percent of our lands and coastal waters by 2030. The eelgrass habitat is essential to the rich biodiversity that makes Richardson Bay unique, and putting this plan into action will safeguard these invaluable natural resources.”

    In 2021, the RBRA entered into an agreement with the San Francisco Bay Conservation and Development Commission (BCDC), stipulating that all vessels and floating homes be removed from the anchorage by October 26, 2026, except those abiding by 72-hour time restrictions.

    The agreement with BCDC was driven in large part by the need to protect the eelgrass ecosystem of Richardson Bay. Along with supporting key fisheries, tens of thousands of migratory waterbirds rely on Richardson Bay for feeding and resting during migration along the Pacific Flyway.

    To incentivize vessels to move off the Richardson Bay anchorage, the RBRA created a housing voucher program last year, allowing boaters previously living on the water to move into safe, secure housing on land. The RBRA manages the program in collaboration with the Marin Housing Authority, Marin Health and Human Services, and Episcopal Community Services.

    Additionally, the RBRA manages a vessel buyback program, which offers eligible participants money based on the length of their boat ($150 per foot) if they turn their vessel into the RBRA for proper disposal.

    “We are proud of all that we have accomplished on Richardson Bay to create a safe, supportive and accessible environment for all,” said Marin County Supervisor Stephanie Moulton-Peters, who also sits on the RBRA Board. “We know that there is still work to be done, but if we keep working together collaboratively with our community, we can help achieve everyone’s goals.”

     ###

    MIL OSI USA News –

  • MIL-OSI USA: Hoyer Joins President Biden, Team Maryland to Celebrate $147 Million Clean Energy Investment in the Port of Baltimore

    Source: United States House of Representatives – Congressman Steny H Hoyer (MD-05)

    WASHINGTON, DC – Congressman Steny H. Hoyer (MD-05) joined President Joseph R. Biden, Governor Wes Moore, U.S. Senators Ben Cardin and Chris Van Hollen (all D-MD), Congressman Kweisi Mfume, Congressman John Sarbanes, Congressman Dutch Ruppersberger (all D-MD), Maryland Department of Transportation Secretary Paul Wiedefeld, and Maryland Port Administration Executive Director Jonathan Daniels at the Port of Baltimore to celebrate more than $147 million in federal funding to create good-paying, clean jobs and to expedite decarbonization and electrification efforts at the Port. The U.S. Environmental Protection Agency awarded the funding to the Port of Baltimore through its Clean Ports Program, created under the Biden-Harris Administration’s Inflation Reduction Act.

    “The Biden-Harris Administration’s Investing in America agenda continues to leave no community behind and promote clean air and water in communities that have long borne the brunt of pollution,” said Congressman Steny Hoyer. “Thanks to the Inflation Reduction Act that I brought to the House Floor as Majority Leader last Congress, the Port of Baltimore is getting the tools it needs to upgrade its equipment, improve electric charging infrastructure, and fight the climate crisis in a way that benefits Marylanders across the state. As Chair of the Regional Leadership Council, I appreciate Administrator Regan and the Biden-Harris Administration’s partnership as we continue to ensure the historic investments Democrats passed last Congress reach every community in America. We must continue to work together to strengthen the Port of Baltimore and ensure environmental justice for all Marylanders.”

    The Port of Baltimore generates about 20,300 direct jobs, with more than 273,000 jobs overall linked to port activities. The funding will enable the Maryland Port Administration and its private partners to purchase 213 pieces of new zero-emission vehicles, equipment, and charging infrastructure that will replace old, inefficient, and polluting diesel combustion engines. The funding will also pay for capacity upgrades to the port’s electrical grid, which will help significantly reduce greenhouse gas emissions with an estimated 35% decrease in carbon dioxide equivalency compared to 2020 levels. 

    “In Maryland, we aren’t going to choose between building a competitive state and a sustainable one -— we will do both at the same time,” said Gov. Moore. “In partnership with the Biden-Harris Administration, we are investing in the Port of Baltimore and electrifying the way to a greener, cleaner, and healthier future with a strong economy and good-paying jobs.” 

    “The Port of Baltimore is a vital economic engine for the state and a leader among the nation’s ports. As we work to improve the port, it is essential that we build for the future. The projects supported by the Clean Ports Program will help reduce emissions, improve air quality in the Baltimore region and create more clean energy jobs,” said U.S. Senator Ben Cardin. “The Biden-Harris Administration’s bold investments in modernizing our infrastructure are driving our economy forward while enabling us to take on climate change in a meaningful way.” 

    “We fought to pass the Inflation Reduction Act to create good-paying jobs in our communities while tackling the climate crisis head-on, and today’s announcement shows these investments are being put to work,” said U.S. Senator Chris Van Hollen. “This new federal funding will support the Port of Baltimore’s transition to electric infrastructure as part of its plans to reduce emissions – both bolstering the port’s growth and improving air quality for nearby communities. These efforts will help strengthen Baltimore’s economy and create more local jobs for Marylanders.” 

    “The tremendous projects selected for these federal funding awards will improve air quality and combat climate change by dramatically diminishing the Port of Baltimore’s greenhouse gas and toxic pollutant emissions via installation of zero-emission cargo handling equipment and trucks, while also bolstering the Maryland Port Administration’s overall emissions reduction strategy. These extraordinary federal investments into our port are consistent with our collective duty to preserve the planet – while also continuing to uplift the Port of Baltimore’s workforce and surrounding communities in the transition to a zero-emissions facility,” said Congressman Kweisi Mfume. “As exemplified by this compelling announcement, the historic Inflation Reduction Act continues to tackle the climate crisis with fierce urgency right here in Baltimore.”

    “The Port of Baltimore is a critical hub for Maryland and our nation as a whole, supporting good-paying jobs, driving economic growth and keeping goods and resources moving. This investment will improve the health of our region’s environment and provide cleaner air for port workers and nearby communities – all while ensuring that the Port remains a thriving center of commerce for generations to come,” said Congressman John Sarbanes. “I appreciate the Biden-Harris Administration for its continued partnership to enhance clean energy and improve infrastructure in Maryland, and for its tireless efforts to advance environmental justice and create a greener, more sustainable future across the country.”

    “This critical investment into the Port of Baltimore will not only keep us globally competitive, but will help mitigate pollution driving climate change,” said Congressman Dutch Ruppersberger. “The Port of Baltimore has always been at the forefront of efficiency and productivity and now we are leading the nation environmentally. I am proud to have supported this funding request and thank the Biden Administration for this strategic and responsible use of tax dollars.”

    Federal grant funding will also support community engagement with neighborhoods such as Turner Station, Brooklyn, and Curtis Bay.  

    “These improvements will provide an immediate impact to the people who live and work around the Port of Baltimore and who have borne the brunt of transportation-related health impacts,” said Maryland Department of Transportation Secretary Paul Wiedefeld. “Thanks to the EPA’s grants, the Port of Baltimore and its partners are accelerating their collective efforts to support Maryland’s climate goals of reaching net zero by 2045.” 

    Today’s announcement builds on the Biden Administration’s championship of the Port of Baltimore and the State of Maryland’s infrastructure needs, which includes the recent $30.9 million Infrastructure for Rebuilding America award for Dundalk Marine Terminal Reconstruction of Berth 11 and the $7.5 million award for Curtis Creek Drawbridge Rehabilitation and Resiliency projects. The projects directly advance the federal government and State of Maryland’s partnership to recover and rebuild after the DALI struck the Francis Scott Key Bridge.

    “The Maryland Port Administration is committed to integrating our overall mission of increasing cargo and generating jobs through the Port of Baltimore with forward-looking environmental and sustainability solutions,” said Maryland Port Administration Executive Director Jonathan Daniels. “Our customers and port partners are driven to change the way they do business to reduce greenhouse gas emissions, decarbonize, increase electrification throughout our marine terminals, and, most importantly, positively impact our near-port environmental justice communities.”

    To learn more about the clean port project and its benefits, read the Port of Baltimore’s grant proposal.

    MIL OSI USA News –

  • MIL-OSI New Zealand: Fatal crash, Dairy Flat

    Source: New Zealand Police (National News)

    One person has died following a motorcycle crash in Dairy Flat last night.

    A Police unit noticed a motorbike travelling at excess speed along Wilks Road at around 9.30pm.

    The Police unit turned around to conduct a traffic stop but was unable to locate the motorcyclist.

    A short time later Police were notified of a motorbike crash on Wilks Road.

    Emergency services quickly responded but the rider died at the scene.

    Enquiries into the circumstances of the crash are ongoing.

    ENDS

    MIL OSI New Zealand News –

  • MIL-OSI USA: 56th Security Consultative Meeting Joint Communique

    Source: United States Department of Defense

    1. The 56th United States (U.S.)-Republic of Korea (ROK) Security Consultative Meeting (SCM) was held in Washington, D.C., on October 30, 2024. U.S. Secretary of Defense Lloyd J. Austin III and ROK Minister of National Defense Kim Yong Hyun led their respective delegations, which included senior defense and foreign affairs officials. On October 17, 2024, the U.S. Chairman of the Joint Chiefs of Staff, General Charles Q. Brown Jr., and ROK Chairman of the Joint Chiefs of Staff, Admiral Kim Myung-soo, presided over the 49th ROK-U.S. Military Committee Meeting (MCM).

    2. The Secretary and the Minister reaffirmed that the U.S.-ROK Alliance is the linchpin of peace, stability, and prosperity on the Korean Peninsula and beyond based on our shared values, including freedom, human rights, and the rule of law. The two leaders reviewed progress taken during 2024 to implement the “Defense Vision of the U.S.-ROK Alliance,” including enhancing extended deterrence against the Democratic People’s Republic of Korea (DPRK), modernizing Alliance capabilities based on science and technology cooperation, and strengthening solidarity and regional security cooperation with like-minded partners. They noted that the SCM has played a pivotal role in developing the ROK-U.S. Alliance into a Global Comprehensive Strategic Alliance and would continue maintaining its role as a core consultative mechanism to discuss the future development of the Alliance and provide strategic direction.  The two leaders also provided direction and guidance for continued progress in 2025 through a newly endorsed framework of U.S.-ROK bilateral defense consultative mechanisms that effectively and efficiently support Alliance objectives.  Both concurred that the current U.S.-ROK Alliance is stronger than ever and reaffirmed the two nations’ unwavering mutual commitment to a combined defense posture to defend the ROK as stated in the U.S-ROK Mutual Defense Treaty, and as reflected in the Washington Declaration. The two leaders also resolved to continue to strengthen the Alliances’ deterrence and defense posture against DPRK aggression and promote stability on the Korean Peninsula and throughout the region.

    3. The Secretary and the Minister reviewed the current security environment in and around the Korean Peninsula and discussed cooperative measures between the two nations. The Secretary and Minister expressed grave concern that the DPRK continues to modernize and diversify its nuclear and ballistic missile capabilities.  The two sides condemned the DPRK’s multiple missile launches, including ballistic missiles, its attempted launches of a space launch vehicle, and Russian-DPRK arms trade as clear violations of existing UN Security Council resolutions (UNSCRs).  They noted that these actions present profound security challenges to the international community and pose an increasingly serious threat to peace and stability on the Korean Peninsula and throughout the Indo-Pacific region, as well as in the Euro-Atlantic region.

    4. Secretary Austin reiterated the firm U.S. commitment to provide extended deterrence to the ROK, utilizing the full range of U.S. defense capabilities, including nuclear, conventional, missile defense, and advanced non-nuclear capabilities.  He noted that any nuclear attack by the DPRK against the United States or its Allies and partners is unacceptable and would result in the end of the Kim regime in line with the 2022 U.S. Nuclear Posture Review.  He highlighted the increased frequency and routinization of U.S. strategic asset deployments as committed to by President Biden in the Washington Declaration, and noted that these were tangible evidence of the U.S. commitment to defend the ROK.

    5. The two leaders highly appreciated the work of the Nuclear Consultative Group (NCG) inaugurated following the Washington Declaration.  Both applauded the completion on July 11, 2024, of “United States and Republic of Korea Guidelines for Nuclear Deterrence and Nuclear Operations on the Korean Peninsula,” which represents tremendous progress of the NCG commended and endorsed by President Biden and President Yoon. The two leaders affirmed that the completion of the Guidelines established the foundation for enhancing ROK-U.S. extended deterrence in an integrated manner.  Minister Kim noted that, through such progress, the ROK-U.S. Alliance was elevated to a nuclear-based alliance. The two leaders stressed that the principles and procedures contained in the Guidelines enable Alliance policy and military authorities to maintain an effective nuclear deterrence policy and posture.  The Secretary and Minister also welcomed the successful execution of the ROK-U.S. NCG table-top simulations and table-top exercises to enhance decision-making about nuclear deterrence and operations, and planning for potential nuclear contingencies on the Korean Peninsula.  Both sides affirmed that the full capabilities of the two countries would contribute to the Alliance’s combined deterrence and defense posture, and in this regard the Secretary welcomed the recent establishment of the ROK Strategic Command.  The Secretary and Minister directed the NCG to continue swift progress on NCG workstreams, including security protocols and expansion of information sharing; nuclear consultation processes in crises and contingencies; nuclear and strategic planning; ROK conventional support to U.S. nuclear operations in a contingency through conventional-nuclear integration (CNI); strategic communications; exercises, simulations, training, and investment activities; and risk reduction practices.  They noted that such efforts would be coordinated to strengthen capabilities of the ROK and United States to enhance U.S.-ROK extended deterrence cooperation in an integrated manner, and looked forward to receiving regular updates on NCG progress activities at future SCMs.

    6. The two sides pledged to continue coordinating efforts to deter DPRK’s nuclear threat with the Alliance’s overwhelming strength, while continuing to pursue efforts through sanctions and pressure to dissuade and delay DPRK’s nuclear development.  Both leaders stressed the importance of full implementation of UNSCRs by the entire international community, including the People’s Republic of China (PRC) and Russia, both permanent members of the UN Security Council.  The two leaders urged the international community to prevent and respond to DPRK’s sanctions evasion so that it abandons its illegal nuclear and ballistic missile development.  To this end, they decided to work closely with each other and the international community to combat the DPRK’s illegal and malicious cyber activities, cryptocurrency theft, overseas laborer dispatches, and ship-to-ship transfers.  The Secretary and Minister expressed concern that Russia-DPRK military cooperation, which has been intensified since the signing of a Comprehensive Strategic Partnership Treaty between the two, is deepening regional instability.  The two leaders made clear that military cooperation, including illegal arms trade and high-technology transfers between Russia and the DPRK, constitute a clear violation of UNSCRs, and called on Russia to uphold its commitments.  The two leaders also strongly condemned in the strongest terms with one voice that the military cooperation between Russia and the DPRK has expanded beyond transfers of military supplies to actual deployment of forces, and pledged to closely coordinate with the international community regarding this issue. 

    7. Both leaders reiterated the willingness of their Presidents to pursue dialogue and diplomacy, backed by a robust and credible deterrence and defense posture.  In this regard, Secretary Austin expressed support for the goals of the ROK’s Audacious Initiative and President Yoon’s vision of a free, peaceful, and prosperous unified Korean Peninsula, and welcomed President Yoon’s desire to open a path for serious and sustained diplomacy with the DPRK.  Both sides reaffirmed that they remain open to dialogue with the DPRK without preconditions and pledged to continue close coordination.

    8. The Minister and the Secretary noted concerns that the DPRK’s claims of “two hostile countries,” and activities near the Military Demarcation Line (MDL) could threaten peace and the Armistice on the Korean Peninsula.  The two leaders strongly condemned DPRK’s activities that raise tension on the Korean Peninsula, such as multiple unmanned aerial vehicle (UAV) infiltrations in the past, as well as the recent unilateral detonation of sections of inter-Korean roads and ongoing launches of “filth and trash balloons,” and urged the DPRK to immediately cease such activities.  The Secretary and the Minister concurred that the Armistice Agreement remains in effect as an international norm guaranteeing the stable security order on the Korean Peninsula, and that all parties of the Korean War should abide by it while it remains in force.  Both sides noted that the Northern Limit Line (NLL) has been an effective means of separating military forces and preventing military tension over the past 70 years, and urged the DPRK to respect the NLL.

    9. Secretary Austin and Minister Kim reaffirmed the role of the United Nations Command (UNC) in implementing, managing, and enforcing the Korean Armistice Agreement, deterring DPRK aggression, and coordinating a multinational, united response in case of contingencies on the Korean Peninsula.  They reaffirmed that UNC has successfully contributed to those aims for more than 70 years and continues to carry out its mission with the utmost respect for the sovereignty of ROK, the primary host nation.  Both sides welcomed the successful organization of the second ROK-UNC Member States Defense Ministerial Meeting and expressed their appreciation for UNC Member State contributions.  They welcomed the addition of Germany to UNC, and noted that peace and prosperity in the Indo-Pacific, including the Korean Peninsula, and Euro-Atlantic regions are increasingly connected.  The two leaders are determined to continue seeking the expanded participation in UNC by like-minded countries that share the values of the 1953 Washington Declaration, anchored in the principles of the UN Charter and mandates of relevant UNSCRs. Secretary Austin thanked Minister Kim for the ROK’s efforts to support the UNC’s role to maintain and enforce the Armistice Agreement, and to support the defense of the ROK against DPRK aggression.  In this regard, the Secretary and Minister both highlighted their desire to expand combined exercises, information sharing, and interoperability between the ROK, the Combined Forces Command, and UNC Member States.

    10. The Secretary and the Minister also noted the critical role that U.S. forces in the ROK have played for more than 70 years and reaffirmed that U.S. Forces Korea (USFK) continues to play a decisive role in preventing armed conflict on the Korean Peninsula, and in promoting peace and stability in Northeast Asia.  Secretary Austin reiterated the U.S. commitment to maintain current USFK force levels to defend the ROK. 

    11. The Secretary and Minister also reviewed the work of the various bilateral mechanisms such as the U.S.-Korea Integrated Defense Dialogue (KIDD).  They welcomed efforts to enhance information sharing through the U.S. Shared Early Warning System (SEWS) for strengthening the Alliance’s detection capabilities in response to advancing DPRK missile threats.  They also commended the work of the Counter-Missile Working Group (CMWG) and reviewed “the Joint Study on Alliance Comprehensive Counter-Missile Strategy” aimed at informing recommendations for counter-missile capabilities and posture of ROK and United States.  The Secretary and Minister also discussed concrete efforts to strengthen cooperation in space and cyber to robustly deter and defend against growing threats.  They endorsed efforts by the Space Cooperation Working Group (SCWG) to improve space situational awareness information sharing and interoperability, and acknowledged the need to expand ROK participation in exercises and training that can strengthen Alliance space capability and improve resilience against growing space threats.  In particular, the Secretary also welcomed ROK participation in the Joint Commercial Operations (JCO) cell to leverage space industry and strengthen allied space capabilities.  The Secretary and Minister also pledged to deepen cyber cooperation through the Cyber Cooperation Working Group and improve coordination through cyber defense exercises, such as Cyber Alliance and Cyber Flag.  Overall, both leaders expressed appreciation for the continuing cooperation to ensure the Alliance’s space, cyber, and counter-missile efforts to keep pace with the evolving threats posed by the DPRK.

    12. Noting the importance of science and technology (S&T) cooperation, the Secretary and Minister decided to establish the Defense Science and Technology Executive Committee (DSTEC) at the Vice-Minister-Under Secretary level within this year, to guide and prioritize Alliance defense S&T cooperation.  They noted priority areas for cooperation including autonomy, artificial intelligence, and crewed-uncrewed teaming are particularly vital to ensure the ROK is able to achieve the goals of Defense Innovation 4.0 and modernize Alliance capabilities.  Both leaders also welcomed future S&T cooperation related to quantum technologies, future-generation wireless communication technologies, and directed energy to ensure that S&T advancements enhance the combined capabilities of the Alliance.  This included efforts to identify potential areas of collaboration on AUKUS Pillar II.  The Secretary welcomed the Minister’s proposal to host a Defense Science and Technology conference in 2025, and concurred that the DSTEC should leverage this conference to baseline and prioritize Alliance defense S&T collaboration.

    13. The Secretary and Minister also reviewed efforts to improve the interoperability, interchangeability, and resilience of the U.S. and ROK defense industrial base.  They underscored the need to improve efficient and effective collaboration in the development, acquisition, fielding, logistics, sustainment, and maintenance of defense capabilities, and to ensure that S&T advancements are swiftly and seamlessly transitioned into acquisition and sustainment efforts.  Both leaders welcomed progress under the U.S. Regional Sustainment Framework (RSF) and welcomed ROK participation in a Maintenance, Repair, and Overhaul (MRO) pilot project on Air Force aviation maintenance.  The two leaders noted that this pilot project could lead to more bilateral co-sustainment opportunities, and also expand defense industrial collaboration with like-minded partners in the region in light of the ROK’s key role in the Partnership for Indo-Pacific Industrial Resilience (PIPIR) contact group.  The Secretary and Minister also noted with satisfaction the recent U.S. Navy contract with ROK shipyards to conduct MRO services for U.S. vessels, and underscored the potential to expand such work to improve the resilience of the Alliance’s posture in the Indo-Pacific Region.  The Secretary and Minister also recognized the need to improve reciprocal market access to deepen defense industrial cooperation and enhance supply chain resiliency, and are committed to accelerate cooperation with the goal of signing the Reciprocal Defense Procurement Agreement next year based on guidance from both Presidents.

    14. The Secretary and the Minister received and endorsed the MCM Report to the SCM presented by the U.S. Chairman of the Joint Chiefs of Staff, General Charles Q. Brown.  They welcomed the efforts of General Brown, Admiral Kim, and the MCM to enhance military plans, posture, training, exercises, and efforts to coordinate U.S.-ROK Combined Forces Command (CFC) activities and enhance military strength of the Alliance.  The Secretary and Minister concurred that the Freedom Shield 24 (FS 24) and Ulchi Freedom Shield 24 (UFS 24) exercises, which included realistic threats from the DPRK advancing nuclear, missile, space, and cyber threats, enhanced the Alliance’s crisis management and strengthened deterrence and defense capabilities.  In addition, they assessed that combined field training exercises (FTX), which were more extensive than the past year and conducted in land, maritime and air domains, enhanced interoperability and combined operations execution capabilities.  Based on such outcomes, both leaders decided to continue strengthening combined exercises and training in line with the rapidly changing security environment of the Korean Peninsula, and further decided that future combined exercises should include appropriate and realistic scenarios including responses to DPRK nuclear use.  The Secretary and the Minister also emphasized that ensuring consistent training opportunities for USFK is critical to maintaining a strong combined defense posture.  Secretary Austin noted the efforts of ROK Ministry of National Defense (MND) to improve the training conditions for U.S. and ROK forces and stressed the importance of maintaining close cooperation between USFK and MND for the joint use of ROK facilities and airspace for training. 

    15. Given the growth and diversification of the DPRK’s chemical, biological, radiological, and nuclear (CBRN) weapons and delivery systems, both leaders assessed efforts and works to ensure execution of Alliance missions under a CBRN-challenged environment.  In particular, they welcomed progress by the Countering Weapons of Mass Destruction Committee (CWMDC), including the expansion of information sharing required for nuclear elimination operations consistent with the Nuclear Weapons Non-proliferation Treaty (NPT), and the strengthening of cooperation to prevent proliferation of WMD in the Indo-Pacific region. Both leaders welcomed continued multinational counter-proliferation activities in the region amidst advancements of DPRK nuclear and missile program and intensification of arms trade between Russia and the DPRK following the Comprehensive Strategic Partnership Treaty.  Secretary Austin expressed appreciation for ROK contributions to various global security efforts such as Proliferation Security Initiative (PSI), and the Minister and the Secretary concurred on the importance of maintaining cooperative efforts to enforce relevant counter-proliferation UNSCRs.

    16. The Secretary and Minister also reviewed the progress and works to fulfill the Conditions-based Wartime Operational Control (OPCON) Transition Plan (COTP).  Both leaders reaffirmed that the conditions stated in the bilaterally approved COTP must be met before wartime OPCON is transitioned in a stable and systematic manner.  They received the results of the annual U.S.-ROK bilateral evaluation on the capabilities and systems for conditions #1 and #2 based on the bilaterally-approved assessment criteria and standards.  Both leaders affirmed that there was a significant progress of this year’s bilateral evaluation on readiness posture and capabilities, and pledged to continue close consultations between the ROK and the United States. for the establishment of the Future-CFC.  The Secretary and the Minister also reaffirmed that Future-CFC Full Operational Capability (FOC) Certification would be pursued when the results of the bilateral evaluation on the capabilities and systems of conditions #1 and #2 meet the mutually approved levels.  Regarding condition #3, the Secretary and the Minister decided to remain in close consultation for the assessment of the security environment.  Both sides pledged to support continued evaluation and progress in wartime OPCON transition implementation through annual MCMs and SCMs, and affirmed that the wartime OPCON transition would strengthen ROK and Alliance capabilities and the combined defense posture. 

    17. The Secretary and the Minister reviewed the regional security environment, and plans to expand U.S.-ROK security cooperation throughout the Indo-Pacific region to support maintaining a free and open Indo-Pacific that is connected, prosperous, secure, and resilient.  They also reaffirmed support for Association of Southeast Asian Nation (ASEAN) centrality and the ASEAN-led regional architecture as well as regional efforts of the Pacific Islands Forum.  In particular, the two leaders noted the importance of enhancing cooperation during the implementation of both the ROK and U.S. respective strategies for the Indo-Pacific region.  To this end, the Secretary and the Minister endorsed the “Regional Cooperation Framework for U.S.-ROK Alliance Contributions to Security in the Indo-Pacific,” and discussed priorities areas and partners to better respond to the complex regional and global security situation.  After reviewing the work of the ROK-U.S. Regional Cooperation Working Group (RCWG), both leaders reaffirmed their commitment to strengthen defense cooperation with ASEAN members and work together with the Pacific Island Countries to contribute to regional security.  The Secretary and the Minister also acknowledged the importance of preserving peace and stability in the Taiwan Strait as reflected in the April 2023 “Joint Statement in Commemoration of the 70th Anniversary of the Alliance between the United States of America and the Republic of Korea.”  

    18. The Secretary and the Minister reflected on the remarkable progress made during 2024 to fulfill the historic understandings at the Camp David Summit.  They welcomed the Memorandum of Cooperation on the Trilateral Security Cooperation Framework (TSCF), signed by the Ministers and the Secretary of the United States, ROK, and Japan in July, along with enhanced sharing of missile warning information and efforts to systematically conduct trilateral exercises, including the first execution of the multi-domain trilateral exercise FREEDOM EDGE.  The Secretary and the Minister reaffirmed their commitment to continuing to promote and expand trilateral security cooperation including senior-level policy consultations, trilateral exercises, information sharing, and defense exchange cooperation.

    19. The two sides also took the opportunity to reaffirm that expediting the relocation and return of U.S. military bases in the ROK is in the interests of both countries, and decided to work closely to ensure the timely return of the bases in accordance with the Status of Forces Agreement (SOFA) and related agreements.  The two leaders noted the significance of the complete construction of Yongsan Park, and pledged to expedite the remaining return of Yongsan Garrison.  The Minister and the Secretary also reaffirmed their mutual commitment to discuss the return of other U.S. military bases through regular consultations through SOFA channels to reach mutually acceptable outcomes in the future.

    20. Secretary Austin expressed his gratitude that the ROK is contributing toward ensuring a stable environment for U.S. Forces Korea.  The Secretary and Minister also welcomed the recent conclusion of consultations related to a 12th Special Measures Agreement (SMA), and concurred that it would greatly contribute to the strengthening of the U.S.-ROK combined defense posture.

    21. Secretary Austin and Minister Kim affirmed that the discussions during the 56th SCM and the 49th MCM contributed to strengthening the U.S.-ROK Alliance with a vision toward the further development of a truly global alliance.  The two leaders commended the U.S. and ROK military and civilian personnel that worked to strengthen the bond of the Alliance, and expressed appreciation for their shared commitment and sacrifice.  Both sides expect to hold the 57th SCM and 50th MCM in Seoul at a mutually convenient time in 2025.

    MIL OSI USA News –

  • MIL-OSI Australia: Albanese Government invests $100 million in pedestrian and cycleways

    Source: Australian Ministers for Regional Development

    Pedestrians and cyclists across the country will have safer and better connected travel options thanks to the Albanese Government’s $100 million Active Transport Fund, which opens for applications today. 

    The fund contributes to three long-term aims of our Government: improving road safety, encouraging Australians to live heather lives, and offering better options for Australians to contribute to our net zero vision. 

    The Active Transport Fund will contribute up to $5 million per project to construct new or upgrade existing bicycle and walking paths, and is open to all state and territory governments and Local Government Authorities. 

    We’ve heard Australians calls for more sustainable and lower cost travel options to get to school, work and local services. We also know that Australians want safer and more accessible pathways to better connect communities.

    We’re answering those calls, developing this fund to enable states, territories and local governments to deliver projects that will support liveable and healthy communities. 

    Applications will be assessed on merit basis and must meet at least one of the focus areas of the program: improving road safety for cyclists and pedestrians, reducing transport emissions, and supporting active and liveable communities. Applications close on 13 January 2025. 

    I encourage individuals to get involved and speak to their local or state government about pedestrian or cycle paths they’d like to see, and I encourage any interested state, territory or local governments to apply. 

    I look forward to announcing the successful projects in future, and building more liveable, connected communities for all Australians.

    For more information, including the funding guidelines, visit infrastructure.gov.au/atf. 

    MIL OSI News –

  • MIL-OSI Australia: Housing boost for Victoria

    Source: Australian Ministers for Regional Development

    The Albanese Government is unlocking more homes in Victoria through funding the critical infrastructure that allows housing to be built more quickly.

    The Australian Government is providing more than $248 million to fast-track 3,781 dwellings across the State through the $1.5 billion Housing Support Program.

    Funding will be used on enabling infrastructure works across the state such as roads, sewage and water, as well as supporting access to social housing and increasing housing supply. 

    $4.5 million is being provided to deliver a signalised intersection and left turn lane access from Burwood Highway, Knoxfield. This will pave the way for around 400 new dwellings and increase access to the area.

    More than $88 million is being made available for social housing and enabling infrastructure across regional Victoria. At least 10 per cent of funding is directed towards First Nations’ housing outcomes, consistent with the Victorian Government’s commitment under the Big Housing Build.

    The Housing Support programs provides funding that increases housing supply by funding the infrastructure and amenities needed for new housing development, as well as improvements in building planning capability.

    It’s part of the Albanese Government’s $32 billion Homes for Australia Plan to meet the ambitious national target of building 1.2 million new, well-located homes over the next 5 years.

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

    “We have a $32 billion plan which is already building more homes, helping people buy homes, massively increasing rent assistance, and getting more social and affordable homes into the system.

    “We are turbocharging works to get housing sites ready more quickly so the building can begin to get people into their new homes sooner.

    “Together with the Victorian Government we’re delivering new homes close to jobs, schools, transport.”

    Quote attributable to Victorian Minister for Planning Sonia Kilkenny:

    “After a decade of neglect from the former Liberal National government, we welcome having a partner in Canberra that’s serious about delivering more infrastructure and more homes in Victoria.”

    Quote attributable to Victorian Minister for Housing Harriet Shing:

    “Our partnership with the Federal Government is an essential part of delivering more and better homes for Victorians through the first round of the Housing Support Program. We know that there is more to do all over Australia to address the housing shortage, and we are determined to use Commonwealth funding to ensure that all Victorians have access to safe, secure, and modern homes that they are proud to call their own.”

    MIL OSI News –

  • MIL-OSI: FormFactor, Inc. Reports 2024 Third Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    Record Quarterly Revenue, Profitability at the Top End of the Outlook Range;
    Sees Reduced Demand for Foundry and Logic in Q4, Partially Offset by Continued Strength in DRAM

    LIVERMORE, Calif., Oct. 30, 2024 (GLOBE NEWSWIRE) — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the third quarter of fiscal 2024 ended September 28, 2024. Quarterly revenues were $207.9 million, a company record and an increase of 5.3% compared to $197.5 million in the second quarter of fiscal 2024, and an increase of 21.2% from $171.6 million in the third quarter of fiscal 2023.

    • Record revenue in the third quarter exceeded outlook range and non-GAAP EPS was at the top end of the range.
    • Strong DDR5 demand produced third consecutive record-setting quarter of DRAM probe-card revenue.
    • FormFactor’s diversification strategy enabled participation in expanding investments in generative AI and data center applications.

    “We are proud to have posted our all-time revenue record in the third quarter,” said Mike Slessor, CEO of FormFactor, Inc. “This performance was driven by continued strength in our DRAM probe-card business, layered on top of moderate growth in our Foundry & Logic and Systems businesses.”

    Third Quarter and Fiscal 2024 Highlights

    On a GAAP basis, net income for the third quarter of fiscal 2024 was $18.7 million, or $0.24 per fully-diluted share, compared to net income for the second quarter of fiscal 2024 of $19.4 million, or $0.25 per fully-diluted share, and net income for the third quarter of fiscal 2023 of $4.4 million, or $0.06 per fully-diluted share. Gross margin for the third quarter of 2024 was 40.7%, compared with 44.0% in the second quarter of 2024, and 40.4% in the third quarter of 2023.

    On a non-GAAP basis, net income for the third quarter of fiscal 2024 was $27.2 million, or $0.35 per fully-diluted share, compared to net income for the second quarter of fiscal 2024 of $27.3 million, or $0.35 per fully-diluted share, and net income for the third quarter of fiscal 2023 of $17.3 million, or $0.22 per fully-diluted share. On a non-GAAP basis, gross margin for the third quarter of 2024 was 42.2%, compared with 45.3% in the second quarter of 2024, and 41.9% in the third quarter of 2023.

    A reconciliation of GAAP to non-GAAP measures is provided in the schedules included below.

    GAAP net cash provided by operating activities for the third quarter of fiscal 2024 was $26.7 million, compared to $21.9 million for the second quarter of fiscal 2024, and $20.6 million for the third quarter of fiscal 2023. Free cash flow for the third quarter of fiscal 2024 was $20.0 million, compared to free cash flow for the second quarter of fiscal 2024 of $14.2 million, and free cash flow for the third quarter of 2023 of $16.9 million. A reconciliation of net cash provided by operating activities to non-GAAP free cash flow is provided in the schedules included below.

    Outlook

    Dr. Slessor added, “We continue to experience record levels of DRAM probe card demand, with contributions from both DDR5 and High Bandwidth Memory applications. This, combined with slightly higher Systems Segment revenue, is helping to partially offset the forecasted reduction in Foundry & Logic probe-card demand.”

    For the fourth quarter ending December 28, 2024, FormFactor is providing the following outlook*:

      GAAP   Reconciling Items**   Non-GAAP
    Revenue $190 million +/- $5 million   —   $190 million +/- $5 million
    Gross Margin 40% +/- 1.5%   $3 million   41% +/- 1.5%
    Net income per diluted share $0.16 +/- $0.04   $0.13   $0.29 +/- $0.04
    *This outlook assumes consistent foreign currency rates.
    **Reconciling items are stock-based compensation, amortization of intangible assets and fixed asset fair value adjustments due to acquisitions, and restructuring charges, net of applicable income tax impacts.
       

    We posted our revenue breakdown by geographic region, by market segment and with customers with greater than 10% of total revenue on the Investor Relations section of our website at www.formfactor.com. We will conduct a conference call at 1:25 p.m. PT, or 4:25 p.m. ET, today.

    The public is invited to listen to a live webcast of FormFactor’s conference call on the Investor Relations section of our website at www.formfactor.com. A telephone replay of the conference call will be available approximately two hours after the conclusion of the call. The replay will be available on the Investor Relations section of our website, www.formfactor.com.

    Use of Non-GAAP Financial Information:

    To supplement our condensed consolidated financial results prepared under generally accepted accounting principles, or GAAP, we disclose certain non-GAAP measures of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow, that are adjusted from the nearest GAAP financial measure to exclude certain costs, expenses, gains and losses. Reconciliations of the adjustments to GAAP results for the three and nine months ended September 28, 2024, and for outlook provided before, as well as for the comparable periods of fiscal 2023, are provided below, and on the Investor Relations section of our website at www.formfactor.com. Information regarding the ways in which management uses non-GAAP financial information to evaluate its business, management’s reasons for using this non-GAAP financial information, and limitations associated with the use of non-GAAP financial information, is included under “About our Non-GAAP Financial Measures” following the tables below.

    About FormFactor:

    FormFactor, Inc. (NASDAQ: FORM), is a leading provider of essential test and measurement technologies along the full semiconductor product life cycle – from characterization, modeling, reliability, and design de-bug, to qualification and production test. Semiconductor companies rely upon FormFactor’s products and services to accelerate profitability by optimizing device performance and advancing yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America. For more information, visit the Company’s website at www.formfactor.com.

    Forward-looking Statements:

    This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the federal securities laws, including with respect to the Company’s future financial and operating results, and the Company’s plans, strategies and objectives for future operations. These statements are based on management’s current expectations and beliefs as of the date of this release, and are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding future financial and operating results, including under the heading “Outlook” above, customer demand, conditions in the semiconductor industry, and other statements regarding the Company’s business. Forward-looking statements may contain words such as “may,” “might,” “will,” “expect,” “plan,” “anticipate,” “forecast,” and “continue,” the negative or plural of these words and similar expressions, and include the assumptions that underlie such statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in demand for the Company’s products; customer-specific demand; market opportunity; anticipated industry trends; the availability, benefits, and speed of customer acceptance or implementation of new products and technologies; manufacturing, processing, and design capacity, goals, expansion, volumes, and progress; difficulties or delays in research and development; industry seasonality; risks to the Company’s realization of benefits from acquisitions, investments in capacity and investments in new electronic data systems and information technology; reliance on customers or third parties (including suppliers); changes in macro-economic environments; events affecting global and regional economic and market conditions and stability such as military conflicts, political volatility, infectious diseases and pandemics, and similar factors, operating separately or in combination; and other factors, including those set forth in the Company’s most current annual report on Form 10-K, quarterly reports on Form 10-Q and other filings by the Company with the U.S. Securities and Exchange Commission. In addition, there are varying barriers to international trade, including restrictive trade and export regulations such as the US-China restrictions, dynamic tariffs, trade disputes between the U.S. and other countries, and national security developments or tensions, that may substantially restrict or condition our sales to or in certain countries, increase the cost of doing business internationally, and disrupt our supply chain. No assurances can be given that any of the events anticipated by the forward-looking statements within this press release will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Unless required by law, the Company is under no obligation (and expressly disclaims any such obligation) to update or revise its forward-looking statements whether as a result of new information, future events, or otherwise.

    FORMFACTOR, INC. 
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (In thousands, except per share amounts)
    (Unaudited)

      Three Months Ended   Nine Months Ended
      September 28,
    2024    		   June 29,
    2024    		   September 30,
    2023    		   September 28,
    2024    		   September 30,
    2023
    Revenues $ 207,917     $ 197,474     $ 171,575     $ 574,116     $ 494,939  
    Cost of revenues   123,212       110,574       102,290       339,773       304,293  
    Gross profit   84,705       86,900       69,285       234,343       190,646  
    Operating expenses:                  
    Research and development   31,243       31,564       31,014       91,434       87,599  
    Selling, general and administrative   35,607       37,874       35,564       106,560       101,561  
    Total operating expenses   66,850       69,438       66,578       197,994       189,160  
    Gain on sale of business   —       310       —       20,581       —  
    Operating income   17,855       17,772       2,707       56,930       1,486  
    Interest income, net   3,650       3,415       1,662       10,221       4,420  
    Other income (expense), net   (558 )     360       788       322       1,261  
    Income before income taxes   20,947       21,547       5,157       67,473       7,167  
    Provision for income taxes   2,211       2,155       786       7,564       626  
    Net income $ 18,736     $ 19,392     $ 4,371     $ 59,909     $ 6,541  
    Net income per share:                  
    Basic $ 0.24     $ 0.25     $ 0.06     $ 0.77     $ 0.08  
    Diluted $ 0.24     $ 0.25     $ 0.06     $ 0.76     $ 0.08  
    Weighted-average number of shares used in per share calculations:                
    Basic   77,406       77,235       77,571       77,364       77,265  
    Diluted   78,439       78,717       78,412       78,495       77,860  
    FORMFACTOR, INC.
    NON-GAAP FINANCIAL MEASURE RECONCILIATIONS
    (In thousands, except per share amounts)
    (Unaudited)
     
      Three Months Ended   Nine Months Ended
      September 28,
    2024    		   June 29,
    2024    		   September 30,
    2023    		   September 28,
    2024    		   September 30,
    2023
    GAAP Gross Profit $ 84,705     $ 86,900     $ 69,285     $ 234,343     $ 190,646  
    Adjustments:                  
    Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions, and other   530       584       1,118       1,661       3,580  
    Stock-based compensation   1,934       1,932       1,376       5,794       4,801  
    Restructuring charges   524       —       —       607       357  
    Non-GAAP Gross Profit $ 87,693     $ 89,416     $ 71,779     $ 242,405     $ 199,384  
                       
    GAAP Gross Margin   40.7 %     44.0 %     40.4 %     40.8 %     38.5 %
    Adjustments:                  
    Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions, and other   0.3 %     0.3 %     0.7 %     0.3 %     0.7 %
    Stock-based compensation   0.9 %     1.0 %     0.8 %     1.0 %     1.0 %
    Restructuring charges   0.3 %     — %     — %     0.1 %     0.1 %
    Non-GAAP Gross Margin   42.2 %     45.3 %     41.9 %     42.2 %     40.3 %
                       
    GAAP operating expenses $ 66,850     $ 69,438     $ 66,578     $ 197,994     $ 189,160  
    Adjustments:                  
    Amortization of intangibles and other   (240 )     (240 )     (466 )     (720 )     (3,563 )
    Stock-based compensation   (7,002 )     (8,277 )     (9,463 )     (23,756 )     (24,532 )
    Restructuring charges   (249 )     —       —       (249 )     (1,183 )
    Costs related to sale of business   (13 )     (43 )     (2,139 )     (702 )     (2,139 )
    Non-GAAP operating expenses $ 59,346     $ 60,878     $ 54,510     $ 172,567     $ 157,743  
                       
    GAAP operating income $ 17,855     $ 17,772     $ 2,707     $ 56,930     $ 1,486  
    Adjustments:                  
    Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions, and other   770       824       1,584       2,381       7,143  
    Stock-based compensation   8,936       10,209       10,839       29,550       29,333  
    Restructuring charges   773       —       —       856       1,540  
    Gain on sale of business and related costs   13       (267 )     2,139       (19,879 )     2,139  
    Non-GAAP operating income $ 28,347     $ 28,538     $ 17,269     $ 69,838     $ 41,641  
    FORMFACTOR, INC. 
    NON-GAAP FINANCIAL MEASURE RECONCILIATIONS
    (In thousands, except per share amounts)
    (Unaudited)
     
      Three Months Ended   Nine Months Ended
      September 28,
    2024    		   June 29,
    2024    		   September 30,
    2023    		   September 28,
    2024    		   September 30,
    2023
    GAAP net income $ 18,736     $ 19,392     $ 4,371     $ 59,909     $ 6,541  
    Adjustments:                  
    Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions, and other   770       824       1,584       2,381       7,143  
    Stock-based compensation   8,936       10,209       10,839       29,550       29,333  
    Restructuring charges   773       —       —       856       1,540  
    Gain on sale of business and related costs   13       (267 )     2,139       (19,879 )     2,139  
    Income tax effect of non-GAAP adjustments   (2,002 )     (2,835 )     (1,617 )     (3,924 )     (5,650 )
    Non-GAAP net income $ 27,226     $ 27,323     $ 17,316     $ 68,893     $ 41,046  
                       
    GAAP net income per share:                  
    Basic $ 0.24     $ 0.25     $ 0.06     $ 0.77     $ 0.08  
    Diluted $ 0.24     $ 0.25     $ 0.06     $ 0.76     $ 0.08  
                       
    Non-GAAP net income per share:                  
    Basic $ 0.35     $ 0.35     $ 0.22     $ 0.89     $ 0.53  
    Diluted $ 0.35     $ 0.35     $ 0.22     $ 0.88     $ 0.53  
    FORMFACTOR, INC. 
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)
     
      Nine Months Ended
      September 28,
    2024    		   September 30,
    2023
    Cash flows from operating activities:      
    Net income $ 59,909     $ 6,541  
    Selected adjustments to reconcile net income to net cash provided by operating activities:      
    Depreciation   22,197       22,880  
    Amortization   1,920       6,043  
    Stock-based compensation expense   29,550       29,333  
    Provision for excess and obsolete inventories   10,052       12,566  
    Gain on sale of business   (20,581 )     —  
    Other activity impacting operating cash flows   (21,426 )     (22,011 )
    Net cash provided by operating activities   81,621       55,352  
    Cash flows from investing activities:      
    Acquisition of property, plant and equipment   (30,773 )     (46,094 )
    Proceeds from sale of business   21,585       —  
    Purchases of marketable securities, net   (15,464 )     (3,900 )
    Purchase of promissory note receivable   (1,500 )     —  
    Net cash used in investing activities   (26,152 )     (49,994 )
    Cash flows from financing activities:      
    Purchase of common stock through stock repurchase program   (37,211 )     —  
    Proceeds from issuances of common stock   9,748       8,822  
    Principal repayments on term loans   (803 )     (781 )
    Tax withholdings related to net share settlements of equity awards   (17,990 )     (9,349 )
    Net cash used financing activities   (46,256 )     (1,308 )
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   3       (3,324 )
    Net increase in cash, cash equivalents and restricted cash   9,216       726  
    Cash, cash equivalents and restricted cash, beginning of period   181,273       112,982  
    Cash, cash equivalents and restricted cash, end of period $ 190,489     $ 113,708  
    FORMFACTOR, INC. 
    RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW
    (In thousands)
    (Unaudited)
     
      Three Months Ended   Nine Months Ended
      September 28,
    2024    		   June 29,
    2024    		   September 30,
    2023    		   September 28,
    2024    		   September 30,
    2023
    Net cash provided by operating activities $ 26,731     $ 21,878     $ 20,571     $ 81,621     $ 55,352  
    Adjustments:                  
    Sale of business related payments in working capital   2,134       630       2,139       2,811       2,139  
    Cash paid for interest   97       101       105       298       317  
    Capital expenditures   (8,939 )     (8,398 )     (5,917 )     (30,773 )     (46,094 )
    Free cash flow $ 20,023     $ 14,211     $ 16,898     $ 53,957     $ 11,714  
    FORMFACTOR, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (Unaudited) 
     
      September 28,
    2024    		   June 29,
    2024    		   December 30,
    2023
    ASSETS          
    Current assets:          
    Cash and cash equivalents $ 184,506     $ 195,914     $ 177,812  
    Marketable securities   169,961       161,710       150,507  
    Accounts receivable, net of allowance for credit losses   116,866       113,277       102,957  
    Inventories, net   105,374       114,814       111,685  
    Restricted cash   3,773       5,939       1,152  
    Prepaid expenses and other current assets   34,302       28,964       29,667  
    Total current assets   614,782       620,618       573,780  
    Restricted cash   2,210       2,098       2,309  
    Operating lease, right-of-use-assets   25,034       26,650       30,519  
    Property, plant and equipment, net of accumulated depreciation   204,108       204,102       204,399  
    Goodwill   200,137       199,548       201,090  
    Intangibles, net   11,017       11,657       12,938  
    Deferred tax assets   92,826       88,841       78,964  
    Other assets   3,669       2,751       2,795  
    Total assets $ 1,153,783     $ 1,156,265     $ 1,106,794  
               
    LIABILITIES AND STOCKHOLDERS’ EQUITY          
    Current liabilities:          
    Accounts payable $ 52,086     $ 62,235     $ 63,857  
    Accrued liabilities   46,508       49,523       41,037  
    Current portion of term loan, net of unamortized issuance costs   1,098       1,090       1,075  
    Deferred revenue   20,972       17,953       16,704  
    Operating lease liabilities   8,512       8,240       8,422  
    Total current liabilities   129,176       139,041       131,095  
    Term loan, less current portion, net of unamortized issuance costs   12,488       12,765       13,314  
    Long-term operating lease liabilities   19,731       21,441       25,334  
    Deferred grant   18,000       18,000       18,000  
    Other liabilities   19,378       17,102       10,247  
    Total liabilities   198,773       208,349       197,990  
               
    Stockholders’ equity:          
    Common stock   77       77       77  
    Additional paid-in capital   845,466       863,283       861,448  
    Accumulated other comprehensive loss   (1,773 )     (7,948 )     (4,052 )
    Accumulated income   111,240       92,504       51,331  
    Total stockholders’ equity   955,010       947,916       908,804  
    Total liabilities and stockholders’ equity $ 1,153,783     $ 1,156,265     $ 1,106,794  
     

    About our Non-GAAP Financial Measures:

    We believe that the presentation of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow provides supplemental information that is important to understanding financial and business trends and other factors relating to our financial condition and results of operations. Non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income are among the primary indicators used by management as a basis for planning and forecasting future periods, and by management and our board of directors to determine whether our operating performance has met certain targets and thresholds. Management uses non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income when evaluating operating performance because it believes that the exclusion of the items indicated herein, for which the amounts or timing may vary significantly depending upon our activities and other factors, facilitates comparability of our operating performance from period to period. We use free cash flow to conduct and evaluate our business as an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows. Many investors also prefer to track free cash flow, as opposed to only GAAP earnings. Free cash flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures, and therefore it is important to view free cash flow as a complement to our entire consolidated statements of cash flows. We have chosen to provide this non-GAAP information to investors so they can analyze our operating results closer to the way that management does, and use this information in their assessment of our business and the valuation of our Company. We compute non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income, by adjusting GAAP net income, GAAP net income per basic and diluted share, GAAP gross profit, GAAP gross margin, GAAP operating expenses, and GAAP operating income to remove the impact of certain items and the tax effect, if applicable, of those adjustments. These non-GAAP measures are not in accordance with, or an alternative to, GAAP, and may be materially different from other non-GAAP measures, including similarly titled non-GAAP measures used by other companies. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income, net income per basic and diluted share, gross profit, gross margin, operating expenses, or operating income in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results. We may expect to continue to incur expenses of a nature similar to the non-GAAP adjustments described above, and exclusion of these items from our non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income should not be construed as an inference that these costs are unusual, infrequent or non-recurring. For more information on the non-GAAP adjustments, please see the table captioned “Non-GAAP Financial Measure Reconciliations” and “Reconciliation of Cash Provided by Operating Activities to non-GAAP Free Cash Flow” included in this press release.

    Source: FormFactor, Inc.
    FORM-F

    Investor Contact:
    Stan Finkelstein
    Investor Relations
    (925) 290-4321
    ir@formfactor.com

    The MIL Network –

  • MIL-OSI: Enovix Announces Proposed Public Offering of Common Stock

    Source: GlobeNewswire (MIL-OSI)

    FREMONT, Calif., Oct. 30, 2024 (GLOBE NEWSWIRE) — Enovix Corporation (“Enovix”) (NASDAQ: ENVX), a global high-performance battery company, today announced that it has commenced an underwritten public offering of $100.0 million of shares of its common stock, subject to market and other conditions. In connection with the offering, Enovix expects to grant the underwriter a 30-day option to purchase up to an additional $15.0 million of the shares of common stock offered in the public offering. There can be no assurances as to whether or when the offering may be completed, or as to the actual size or terms of the offering. All of the shares of common stock in the offering will be sold by Enovix.

    Cantor Fitzgerald & Co. is acting as sole book-running manager for the offering.

    Enovix intends to use the net proceeds from this offering, together with its existing cash, cash equivalents and short-term investments, for general corporate purposes, and for working capital and capital expenses to achieve high-volume manufacturing at its high-volume production facility “Fab2” in Penang, Malaysia.

    The securities described above are being offered by Enovix pursuant to a shelf registration statement on Form S-3, including a base prospectus, that was filed on August 9, 2023 and declared effective by the U.S. Securities and Exchange Commission (“SEC”) on August 18, 2023. The offering is being made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website located at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering, when available, may also be obtained from Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, or by email at prospectus@cantor.com.

    This press release is neither an offer to sell nor a solicitation of an offer to buy any of these securities nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification thereof under the securities laws of any such state or jurisdiction.

    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.

    Forward-Looking Statements
    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, statements regarding Enovix’s anticipated public offering. The words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “achieve”, “intend,” “believe,” “expect,” “estimate,” “seek,” “predict,” “future,” “project,” “potential,” “continue,” “target” and similar words or expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

    Any forward-looking statements in this press release, such as the intended offering terms, are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, uncertainties related to market conditions, the completion of the public offering on the anticipated terms or at all and Enovix’s intention to grant the underwriter an option to purchase additional shares. These and other risks and uncertainties are described in greater detail in the section entitled “Risk Factors” in Enovix’s Annual Report on Form 10-K for the year ended December 31, 2023, and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024. In addition, any forward-looking statements contained in this press release represent the Enovix’s views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date. Enovix explicitly disclaims any obligation to update any forward-looking statements. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.

    For investor and media inquiries, please contact:

    Enovix Corporation
    Robert Lahey
    Email: ir@enovix.com

    The MIL Network –

  • MIL-OSI: Credit Acceptance Announces Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Southfield, Michigan, Oct. 30, 2024 (GLOBE NEWSWIRE) — Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $78.8 million, or $6.35 per diluted share, for the three months ended September 30, 2024 compared to consolidated net income of $70.8 million, or $5.43 per diluted share, for the same period in 2023. Adjusted net income, a non-GAAP financial measure, for the three months ended September 30, 2024 was $109.1 million, or $8.79 per diluted share, compared to $139.5 million, or $10.70 per diluted share, for the same period in 2023. The following table summarizes our financial results:

    (In millions, except per share data)   For the Three Months Ended   For the Nine Months Ended
        September 30, 2024   June 30, 2024   September 30, 2023     September 30, 2024     September 30, 2023
    GAAP net income (loss)   $         78.8    $         (47.1)     $         70.8    $         96.0    $         192.5 
    GAAP net income (loss) per diluted share   $         6.35    $         (3.83)     $         5.43    $         7.68    $         14.73 
                         
    Adjusted net income (1)   $         109.1    $         126.4      $         139.5    $         352.9    $         406.5 
    Adjusted net income per diluted share (1)   $         8.79    $         10.29      $         10.70    $         28.25    $         31.10 

    (1)   Represents a non-GAAP financial measure.

    Our results for the third quarter of 2024 in comparison to the third quarter of 2023 included:

    • A similar decline in forecasted collection rates
      A decline in forecasted collection rates decreased forecasted net cash flows from our loan portfolio by $62.8 million, or 0.6%, compared to a decrease in forecasted collection rates during the third quarter of 2023 that decreased forecasted net cash flows from our loan portfolio by $69.4 million, or 0.7%.
    • A decrease in forecasted profitability for Consumer Loans assigned in 2021 through 2024
      Forecasted profitability was lower than our estimates at September 30, 2023, due to both a decline in forecasted collection rates and slower forecasted net cash flow timing since the third quarter of 2023. The slower forecasted net cash flow timing was primarily a result of a decrease in Consumer Loan prepayments, which remain at below-average levels.
    • Growth in Consumer Loan assignment volume and the average balance of our loan portfolio
      Unit and dollar volumes grew 17.7% and 12.2%, respectively, as compared to the third quarter of 2023. The average balance of our loan portfolio, which is our largest-ever, increased 14.9% and 18.6% on a GAAP and adjusted basis, respectively, as compared to the third quarter of 2023.
    • An increase in the initial spread on Consumer Loan assignments
      The initial spread increased to 21.9% compared to 21.4% on Consumer Loans assigned in the third quarter of 2023.
    • An increase in our average cost of debt
      Our average cost of debt increased from 5.8% to 7.3%, primarily a result of higher interest rates on recently completed or extended secured financings and recently issued senior notes and the repayment of older secured financings and senior notes with lower interest rates.
    • A decrease in common shares outstanding due to stock repurchases
      Since the third quarter of 2023, we have repurchased approximately 566,000 shares, or 4.5% of the shares outstanding as of September 30, 2023. There were no stock repurchases during the third quarter of 2024.

    Our results for the third quarter of 2024 in comparison to the second quarter of 2024 included:

    • A smaller decline in forecasted collection rates
      A decline in forecasted collection rates decreased forecasted net cash flows from our loan portfolio by $62.8 million, or 0.6%, compared to a decrease in forecasted collection rates during the second quarter of 2024 that decreased forecasted net cash flows from our loan portfolio by $189.3 million, or 1.7%. The $189.3 million decrease in forecasted net cash flows for the second quarter of 2024 was composed of an ordinary decrease in forecasted net cash flows of $42.1 million, or 0.3%, and an adjustment applied to our forecasting methodology, which upon implementation, reduced forecasted net cash flows by $147.2 million, or 1.4%.
    • A decrease in forecasted profitability for Consumer Loans assigned in 2021 through 2024
      Forecasted profitability was lower than our estimates at June 30, 2024, due to both the decline in forecasted collection rates and the slower forecasted net cash flow timing during the third quarter of 2024 discussed above.
    • Growth in the average balance of our loan portfolio
      The average balance of our loan portfolio, which is our largest-ever, increased 2.6% and 4.3% on a GAAP and adjusted basis, respectively, as compared to the second quarter of 2024.
    • Loss on sale of building
      We recognized a $23.7 million loss during the second quarter of 2024 related to the sale of one of our two office buildings, which we have excluded from our adjusted results. The building was sold to reduce excess office space and eliminate the associated annual operating costs of approximately $2.1 million.

    Consumer Loan Metrics

    Dealers assign retail installment contracts (referred to as “Consumer Loans”) to Credit Acceptance. At the time a Consumer Loan is submitted to us for assignment, we forecast future expected cash flows from the Consumer Loan. Based on the amount and timing of these forecasts and expected expense levels, an advance or one-time purchase payment is made to the related dealer at a price designed to maximize economic profit, a non-GAAP financial measure that considers our return on capital, our cost of capital, and the amount of capital invested. 

    We use a statistical model to estimate the expected collection rate for each Consumer Loan at the time of assignment. We continue to evaluate the expected collection rate for each Consumer Loan subsequent to assignment. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. By comparing our current expected collection rate for each Consumer Loan with the rate we projected at the time of assignment, we are able to assess the accuracy of our initial forecast. The following table compares our aggregated forecast of Consumer Loan collection rates as of September 30, 2024, with the aggregated forecasts as of June 30, 2024, as of December 31, 2023, and at the time of assignment, segmented by year of assignment:

        Forecasted Collection Percentage as of (1)   Current Forecast Variance from
     Consumer Loan Assignment Year   September 30, 2024   June 30, 2024   December 31, 2023   Initial
    Forecast    		   June 30, 2024   December 31, 2023   Initial
    Forecast
    2015           65.3  %           65.3  %           65.2  %           67.7  %           0.0  %           0.1  %           -2.4  %
    2016           63.9  %           63.9  %           63.8  %           65.4  %           0.0  %           0.1  %           -1.5  %
    2017           64.7  %           64.7  %           64.7  %           64.0  %           0.0  %           0.0  %           0.7  %
    2018           65.5  %           65.5  %           65.5  %           63.6  %           0.0  %           0.0  %           1.9  %
    2019           67.2  %           67.1  %           66.9  %           64.0  %           0.1  %           0.3  %           3.2  %
    2020           67.6  %           67.7  %           67.6  %           63.4  %           -0.1  %           0.0  %           4.2  %
    2021           63.8  %           64.1  %           64.5  %           66.3  %           -0.3  %           -0.7  %           -2.5  %
    2022           60.6  %           61.1  %           62.7  %           67.5  %           -0.5  %           -2.1  %           -6.9  %
    2023           64.3  %           64.5  %           67.4  %           67.5  %           -0.2  %           -3.1  %           -3.2  %
         2024 (2)           66.6  %           66.6  %           —              67.3  %           0.0  %           —              -0.7  %

    (1)   Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates.
    (2)   The forecasted collection rate for 2024 Consumer Loans as of September 30, 2024 includes both Consumer Loans that were in our portfolio as of June 30, 2024 and Consumer Loans assigned during the most recent quarter. The following table provides forecasted collection rates for each of these segments:

        Forecasted Collection Percentage as of   Current Forecast Variance from
    2024 Consumer Loan Assignment Period   September 30, 2024   June 30, 2024   Initial
    Forecast    		   June 30, 2024   Initial
    Forecast
    January 1, 2024 through June 30, 2024           66.4  %           66.6  %           67.2  %           -0.2  %           -0.8  %
    July 1, 2024 through September 30, 2024           67.0  %           —              67.3  %           —              -0.3  %

    Consumer Loans assigned in 2018 through 2020 have yielded forecasted collection results significantly better than our initial estimates, while Consumer Loans assigned in 2015, 2016, and 2021 through 2023 have yielded forecasted collection results significantly worse than our initial estimates. For all other assignment years presented, actual results have been close to our initial estimates. For the three months ended September 30, 2024, forecasted collection rates declined for Consumer Loans assigned in 2021 through 2024 and were generally consistent with expectations at the start of the period for all other assignment years presented. For the nine months ended September 30, 2024, forecasted collection rates improved for Consumer Loans assigned in 2019, declined for Consumer Loans assigned in 2021 through 2024, and were generally consistent with expectations at the start of the period for all other assignment years presented.

    The changes in forecasted collection rates for the three and nine months ended September 30, 2024 and 2023 impacted forecasted net cash flows (forecasted collections less forecasted dealer holdback payments) as follows:

    (Dollars in millions)   For the Three Months Ended September 30,   For the Nine Months Ended September 30,
    Decrease in Forecasted Net Cash Flows     2024       2023       2024       2023  
    Dealer loans   $         (43.6)     $         (40.3)     $         (173.0)     $         (89.3)  
    Purchased loans             (19.2)               (29.1)               (109.9)               (60.0)  
    Total   $         (62.8)     $         (69.4)     $         (282.9)     $         (149.3)  
    % change from forecast at beginning of period             -0.6  %             -0.7  %             -2.8  %             -1.7  %

    During the second quarter of 2024, we applied an adjustment to our methodology for forecasting the amount of future net cash flows from our loan portfolio, which reduced the forecasted collection rates for Consumer Loans assigned in 2022 through 2024. Consumer Loans assigned in 2022 had continued to underperform our expectations for several quarters. More recently, Consumer Loans assigned in 2023 had also begun exhibiting similar trends of underperformance, although not as severe as Consumer Loans assigned in 2022. During the second quarter of 2024, we determined that we had sufficient Consumer Loan performance experience to estimate the magnitude by which we expected Consumer Loans assigned in 2022 through 2024 would likely underperform our historical collection rates on Consumer Loans with similar characteristics. Accordingly, we applied an adjustment to Consumer Loans assigned in 2022 through 2024 to reduce forecasted collection rates to what we believed the ultimate collection rates would be based on these trends. Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses. The implementation of this forecast adjustment during the second quarter of 2024 reduced forecasted net cash flows by $147.2 million, or 1.4%, and increased provision for credit losses by $127.5 million.

    During the second quarter of 2023, we adjusted our methodology for forecasting the amount and timing of future net cash flows from our loan portfolio through the utilization of more recent Consumer Loan performance and Consumer Loan prepayment data. We had experienced a decrease in Consumer Loan prepayments to below-average levels and as a result, slowed our forecasted net cash flow timing. Historically, Consumer Loan prepayments have been lower in periods with less availability of consumer credit. Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses. The implementation of the adjustment to our forecasting methodology during the second quarter of 2023 reduced forecasted net cash flows by $44.5 million, or 0.5%, and increased provision for credit losses by $71.3 million.

    We have experienced increased levels of uncertainty associated with our estimate of the amount and timing of future net cash flows from our loan portfolio since the beginning of 2020, with realized collections underperforming our expectations during the early stages of the COVID-19 pandemic, outperforming our expectations following the distribution of federal stimulus payments and enhanced unemployment benefits, and underperforming our expectations during the current economic environment. For the period from January 1, 2020 through September 30, 2024, the cumulative change to our forecast of future net cash flows from our loan portfolio has been a decrease of $269.1 million, or 3.0%, as shown in the following table:

    (Dollars in millions)   Increase (Decrease) in Forecasted Net Cash Flows
    Three Months Ended   Total Loans   % Change from Forecast at Beginning of Period
    March 31, 2020   $         (206.5)             -2.3  %
    June 30, 2020             24.4              0.3  %
    September 30, 2020             138.5              1.5  %
    December 31, 2020             (2.7)             0.0  %
    March 31, 2021             107.4              1.1  %
    June 30, 2021             104.5              1.1  %
    September 30, 2021             82.3              0.9  %
    December 31, 2021             31.9              0.3  %
    March 31, 2022             110.2              1.2  %
    June 30, 2022             (43.4)             -0.5  %
    September 30, 2022             (85.4)             -0.9  %
    December 31, 2022             (41.1)             -0.5  %
    March 31, 2023             9.4              0.1  %
    June 30, 2023             (89.3)             -0.9  %
    September 30, 2023             (69.4)             -0.7  %
    December 31, 2023             (57.0)             -0.6  %
    March 31, 2024             (30.8)             -0.3  %
    June 30, 2024             (189.3)             -1.7  %
    September 30, 2024             (62.8)             -0.6  %
    Total   $         (269.1)             -3.0  %

    The following table presents information on Consumer Loan assignments for each of the last 10 years:

         Average   Total Assignment Volume
     Consumer Loan
    Assignment Year    		   Consumer Loan (1)   Advance (2)   Initial Loan Term (in months)   Unit Volume   Dollar Volume (2)
    (in millions)
    2015   $         16,354   $         7,272   50   298,288   $         2,167.0
    2016     18,218     7,976   53   330,710     2,635.5
    2017     20,230     8,746   55   328,507     2,873.1
    2018     22,158     9,635   57   373,329     3,595.8
    2019     23,139     10,174   57   369,805     3,772.2
    2020     24,262     10,656   59   341,967     3,641.2
    2021     25,632     11,790   59   268,730     3,167.8
    2022     27,242     12,924   60   280,467     3,625.3
    2023     27,025     12,475   61   332,499     4,147.8
              2024 (3)(4)     26,564     12,018   61   307,215     3,692.1

    (1)   Represents the repayments that we were contractually owed on Consumer Loans at the time of assignment, which include both principal and interest.
    (2)   Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.
    (3)   Represents activity for the nine months ended September 30, 2024. Information in this table for each of the years prior to 2024 represents activity for all 12 months of that year.
    (4)   The averages for 2024 Consumer Loans include both Consumer Loans that were in our portfolio as of June 30, 2024 and Consumer Loans assigned during the most recent quarter. The following table provides averages for each of these segments:

        Average
    2024 Consumer Loan Assignment Period   Consumer Loan   Advance   Initial Loan Term (in months)
    January 1, 2024 through June 30, 2024   $         26,554   $         12,033           61
    July 1, 2024 through September 30, 2024             26,586             11,985           61

    The profitability of our loans is primarily driven by the amount and timing of the net cash flows we receive from the spread between the forecasted collection rate and the advance rate, less operating expenses and the cost of capital. Forecasting collection rates accurately at loan inception is difficult. With this in mind, we establish advance rates that are intended to allow us to achieve acceptable levels of profitability across our portfolio, even if collection rates are less than we initially forecast.

    The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate), and the percentage of the forecasted collections that had been realized as of September 30, 2024, as well as forecasted collection rates and spreads at the time of assignment. All amounts, unless otherwise noted, are presented as a percentage of the initial balance of the Consumer Loan (principal + interest). The table includes both dealer loans and purchased loans.

        Forecasted Collection % as of       Spread % as of    
     Consumer Loan Assignment Year   September 30, 2024   Initial Forecast   Advance % (1)   September 30, 2024   Initial Forecast   % of Forecast
    Realized (2)
    2015           65.3  %           67.7  %           44.5  %           20.8  %           23.2  %           99.7  %
    2016           63.9  %           65.4  %           43.8  %           20.1  %           21.6  %           99.4  %
    2017           64.7  %           64.0  %           43.2  %           21.5  %           20.8  %           99.1  %
    2018           65.5  %           63.6  %           43.5  %           22.0  %           20.1  %           98.4  %
    2019           67.2  %           64.0  %           44.0  %           23.2  %           20.0  %           96.1  %
    2020           67.6  %           63.4  %           43.9  %           23.7  %           19.5  %           90.8  %
    2021           63.8  %           66.3  %           46.0  %           17.8  %           20.3  %           80.8  %
    2022           60.6  %           67.5  %           47.4  %           13.2  %           20.1  %           61.3  %
    2023           64.3  %           67.5  %           46.2  %           18.1  %           21.3  %           36.8  %
         2024 (3)           66.6  %           67.3  %           45.3  %           21.3  %           22.0  %           10.7  %

    (1)   Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program as a percentage of the initial balance of the Consumer Loans.  Payments of dealer holdback and accelerated dealer holdback are not included.
    (2)   Presented as a percentage of total forecasted collections.
    (3)   The forecasted collection rate, advance rate and spread for 2024 Consumer Loans as of September 30, 2024 include both Consumer Loans that were in our portfolio as of June 30, 2024 and Consumer Loans assigned during the most recent quarter. The following table provides forecasted collection rates, advance rates, and spreads for each of these segments:

        Forecasted Collection % as of       Spread % as of
    2024 Consumer Loan Assignment Period   September 30, 2024   Initial Forecast   Advance %   September 30, 2024   Initial Forecast
    January 1, 2024 through June 30, 2024           66.4  %           67.2  %           45.2  %           21.2  %           22.0  %
    July 1, 2024 through September 30, 2024           67.0  %           67.3  %           45.4  %           21.6  %           21.9  %

    The risk of a material change in our forecasted collection rate declines as the Consumer Loans age. For 2020 and prior Consumer Loan assignments, the risk of a material forecast variance is modest, as we have currently realized in excess of 90% of the expected collections. Conversely, the forecasted collection rates for more recent Consumer Loan assignments are less certain as a significant portion of our forecast has not been realized.

    The spread between the forecasted collection rate as of September 30, 2024 and the advance rate ranges from 13.2% to 23.7%, on an annual basis, for Consumer Loans assigned over the last 10 years. The spreads with respect to 2019 and 2020 Consumer Loans have been positively impacted by Consumer Loan performance, which has exceeded our initial estimates by a greater margin than the other years presented. The spread with respect to 2022 Consumer Loans has been negatively impacted by Consumer Loan performance, which has been lower than our initial estimates by a greater margin than the other years presented. The higher spread for 2024 Consumer Loans relative to 2023 Consumer Loans as of September 30, 2024 was primarily a result of Consumer Loan performance, as the performance of 2023 Consumer Loans has been lower than our initial estimates by a greater margin than 2024 Consumer Loans. Additionally, 2024 Consumer Loans had a higher initial spread, which was primarily due to a decrease in the advance rate.

    The following table compares our forecast of aggregate Consumer Loan collection rates as of September 30, 2024 with the forecasts at the time of assignment, for dealer loans and purchased loans separately:

        Dealer Loans   Purchased Loans
        Forecasted Collection Percentage as of (1)       Forecasted Collection Percentage as of (1)    
     Consumer Loan Assignment Year   September 30,
    2024    		   Initial
    Forecast    		   Variance   September 30,
    2024    		   Initial
    Forecast    		   Variance
    2015           64.6  %           67.5  %           -2.9  %           69.0  %           68.5  %           0.5  %
    2016           63.1  %           65.1  %           -2.0  %           66.1  %           66.5  %           -0.4  %
    2017           64.0  %           63.8  %           0.2  %           66.3  %           64.6  %           1.7  %
    2018           64.9  %           63.6  %           1.3  %           66.8  %           63.5  %           3.3  %
    2019           66.8  %           63.9  %           2.9  %           67.9  %           64.2  %           3.7  %
    2020           67.5  %           63.3  %           4.2  %           67.9  %           63.6  %           4.3  %
    2021           63.5  %           66.3  %           -2.8  %           64.3  %           66.3  %           -2.0  %
    2022           59.8  %           67.3  %           -7.5  %           62.4  %           68.0  %           -5.6  %
    2023           63.1  %           66.8  %           -3.7  %           67.6  %           69.4  %           -1.8  %
    2024           65.5  %           66.3  %           -0.8  %           70.5  %           70.7  %           -0.2  %

    (1)   The forecasted collection rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment. The forecasted collection rates represent the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates.

    The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate) as of September 30, 2024 for dealer loans and purchased loans separately.  All amounts are presented as a percentage of the initial balance of the Consumer Loan (principal + interest).

        Dealer Loans   Purchased Loans
     Consumer Loan Assignment Year   Forecasted Collection % (1)   Advance % (1)(2)   Spread %   Forecasted Collection % (1)   Advance % (1)(2)   Spread %
    2015           64.6  %           43.4  %           21.2  %           69.0  %           50.2  %           18.8  %
    2016           63.1  %           42.1  %           21.0  %           66.1  %           48.6  %           17.5  %
    2017           64.0  %           42.1  %           21.9  %           66.3  %           45.8  %           20.5  %
    2018           64.9  %           42.7  %           22.2  %           66.8  %           45.2  %           21.6  %
    2019           66.8  %           43.1  %           23.7  %           67.9  %           45.6  %           22.3  %
    2020           67.5  %           43.0  %           24.5  %           67.9  %           45.5  %           22.4  %
    2021           63.5  %           45.1  %           18.4  %           64.3  %           47.7  %           16.6  %
    2022           59.8  %           46.4  %           13.4  %           62.4  %           50.1  %           12.3  %
    2023           63.1  %           44.8  %           18.3  %           67.6  %           49.8  %           17.8  %
    2024           65.5  %           44.3  %           21.2  %           70.5  %           49.0  %           21.5  %

    (1)   The forecasted collection rates and advance rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment.
    (2)   Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program as a percentage of the initial balance of the Consumer Loans.  Payments of dealer holdback and accelerated dealer holdback are not included.

    Although the advance rate on purchased loans is higher as compared to the advance rate on dealer loans, purchased loans do not require us to pay dealer holdback.

    The spread as of September 30, 2024 on 2024 dealer loans was 21.2%, as compared to a spread of 18.3% on 2023 dealer loans. The increase was due to Consumer Loan performance, as the performance of 2023 dealer loans has been lower than our initial estimates by a greater margin than 2024 dealer loans.

    The spread as of September 30, 2024 on 2024 purchased loans was 21.5%, as compared to a spread of 17.8% on 2023 purchased loans. The increase was primarily a result of a higher initial spread on 2024 purchased loans, due to a higher initial forecast and lower advance rate. Additionally, the performance of 2023 purchased loans has been lower than our initial estimates by a greater margin than 2024 purchased loans.

    Consumer Loan Volume

    The following table summarizes changes in Consumer Loan assignment volume in each of the last seven quarters as compared to the same period in the previous year:

        Year over Year Percent Change
    Three Months Ended   Unit Volume   Dollar Volume (1)
    March 31, 2023           22.8  %           18.6  %
    June 30, 2023           12.8  %           8.3  %
    September 30, 2023           13.0  %           10.5  %
    December 31, 2023           26.7  %           21.3  %
    March 31, 2024           24.1  %           20.2  %
    June 30, 2024           20.9  %           16.3  %
    September 30, 2024           17.7  %           12.2  %

    (1)   Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program.  Payments of dealer holdback and accelerated dealer holdback are not included.

    Consumer Loan assignment volumes depend on a number of factors including (1) the overall demand for our financing programs, (2) the amount of capital available to fund new loans, and (3) our assessment of the volume that our infrastructure can support. Our pricing strategy is intended to maximize the amount of economic profit we generate, within the confines of capital and infrastructure constraints.

    Unit and dollar volumes grew 17.7% and 12.2%, respectively, during the third quarter of 2024 as the number of active dealers grew 8.8% and the average unit volume per active dealer increased 8.4%. Dollar volume increased less than unit volume during the third quarter of 2024 due to a decrease in the average advance paid, due to decreases in the average size of Consumer Loans assigned and the average advance rate. Unit volume for the 28-day period ended October 28, 2024 grew 4.6% compared to the same period in 2023.

    The following table summarizes the changes in Consumer Loan unit volume and active dealers:

      For the Three Months Ended September 30,       For the Nine Months Ended
    September 30,    		    
      2024   2023   % Change   2024   2023   % Change
    Consumer Loan unit volume         95,670           81,299           17.7  %           307,215           253,847           21.0  %
    Active dealers (1)         10,678           9,818           8.8  %           14,326           13,008           10.1  %
    Average volume per active dealer         9.0           8.3           8.4  %           21.4           19.5           9.7  %
                           
    Consumer Loan unit volume from dealers active both periods         74,108           67,930           9.1  %           262,564           228,157           15.1  %
    Dealers active both periods         6,595           6,595           —              9,604           9,604           —   
    Average volume per dealer active both periods         11.2           10.3           9.1  %           27.3           23.8           15.1  %
                           
    Consumer loan unit volume from dealers not active both periods         21,562           13,369           61.3  %           44,651           25,690           73.8  %
    Dealers not active both periods         4,083           3,223           26.7  %           4,722           3,404           38.7  %
    Average volume per dealer not active both periods         5.3           4.1           29.3  %           9.5           7.5           26.7  %

    (1)   Active dealers are dealers who have received funding for at least one Consumer Loan during the period.

    The following table provides additional information on the changes in Consumer Loan unit volume and active dealers: 

      For the Three Months Ended September 30,       For the Nine Months Ended
    September 30,    		    
      2024     2023     % Change   2024     2023     % Change
    Consumer Loan unit volume from new active dealers         3,447             3,926             -12.2  %           29,441             29,005             1.5  %
    New active dealers (1)         1,038             983             5.6  %           3,428             3,095             10.8  %
    Average volume per new active dealer         3.3             4.0             -17.5  %           8.6             9.4             -8.5  %
                           
    Attrition (2)         -16.4  %           -17.2  %               -10.1  %           -8.9  %    

    (1)   New active dealers are dealers who enrolled in our program and have received funding for their first dealer loan or purchased loan from us during the period.
    (2)   Attrition is measured according to the following formula:  decrease in Consumer Loan unit volume from dealers who have received funding for at least one dealer loan or purchased loan during the comparable period of the prior year but did not receive funding for any dealer loans or purchased loans during the current period divided by prior year comparable period Consumer Loan unit volume.

    The following table shows the percentage of Consumer Loans assigned to us as dealer loans and purchased loans for each of the last seven quarters:

        Unit Volume   Dollar Volume (1)
    Three Months Ended   Dealer Loans   Purchased Loans   Dealer Loans   Purchased Loans
    March 31, 2023           72.1  %           27.9  %           68.1  %           31.9  %
    June 30, 2023           72.4  %           27.6  %           68.6  %           31.4  %
    September 30, 2023           74.8  %           25.2  %           71.7  %           28.3  %
    December 31, 2023           77.2  %           22.8  %           75.0  %           25.0  %
    March 31, 2024           78.2  %           21.8  %           76.6  %           23.4  %
    June 30, 2024           78.5  %           21.5  %           77.3  %           22.7  %
    September 30, 2024           79.5  %           20.5  %           78.4  %           21.6  %

    (1)   Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program.  Payments of dealer holdback and accelerated dealer holdback are not included.

    As of September 30, 2024 and December 31, 2023, the net dealer loans receivable balance was 71.6% and 67.7%, respectively, of the total net loans receivable balance.

    Financial Results

    (Dollars in millions, except per share data) For the Three Months Ended September 30,       For the Nine Months Ended September 30,    
        2024     2023   % Change     2024     2023   % Change
    GAAP average debt $         6,071.1   $         4,831.4           25.7  %   $         5,732.1   $         4,718.7           21.5  %
    GAAP average shareholders’ equity           1,594.2             1,731.3           -7.9  %             1,632.1             1,719.1           -5.1  %
    Average capital $         7,665.3   $         6,562.7           16.8  %   $         7,364.2   $         6,437.8           14.4  %
    GAAP net income $         78.8   $         70.8           11.3  %   $         96.0   $         192.5           -50.1  %
    Diluted weighted average shares outstanding   12,415,143     13,039,638           -4.8  %     12,494,011     13,068,998           -4.4  %
    GAAP net income per diluted share $         6.35   $         5.43           16.9  %   $         7.68   $         14.73           -47.9  %

    The increase in GAAP net income for the three months ended September 30, 2024, as compared to the same period in 2023, was primarily a result of the following:

    • An increase in finance charges of 14.9% ($65.9 million), primarily due to an increase in the average balance of our loan portfolio.
    • An increase in premiums earned of 20.7% ($4.3 million), primarily due to growth in the size of our reinsurance portfolio, which resulted from growth in new Consumer Loan assignments and an increase in the average premium written per reinsured vehicle service contract in recent periods.
    • An increase in operating expenses of 17.1% ($18.9 million), primarily due to:
      • An increase in salaries and wages expense of 15.9% ($10.6 million), primarily due to increases in (i) the number of team members as we are investing in our business with the goal of increasing the speed at which we enhance our product for dealers and consumers and (ii) fringe benefits, primarily due to higher medical claims.
      • An increase in general and administrative expenses of 36.2% ($7.7 million), primarily due to an increase in legal expenses.
    • An increase in interest expense of 57.7% ($40.7 million), due to:
      • An increase in our average cost of debt, which increased interest expense by $22.6 million, primarily as a result of higher interest rates on recently completed or extended secured financings and recently issued senior notes and the repayment of older secured financings and senior notes with lower interest rates.
      • An increase in our average outstanding debt balance, which increased interest expense by $18.1 million, primarily due to borrowings used to fund the growth of our loan portfolio and stock repurchases.

    The decrease in GAAP net income for the nine months ended September 30, 2024, as compared to the same period in 2023, was primarily a result of the following:

    • An increase in interest expense of 64.2% ($120.5 million), due to:
      • An increase in our average cost of debt, which increased interest expense by $80.2 million, primarily as a result of higher interest rates on recently completed or extended secured financings and recently issued senior notes and the repayment of older secured financings and senior notes with lower interest rates.
      • An increase in our average outstanding debt balance, which increased interest expense by $40.3 million, primarily due to borrowings used to fund the growth of our loan portfolio and stock repurchases.
    • An increase in provision for credit losses of 20.8% ($118.8 million), primarily due to an increase in provision for credit losses on forecast changes of $111.5 million, due to a greater decline in Consumer Loan performance and slower net cash flow timing during the first nine months of 2024 compared to the first nine months of 2023.

    During the first nine months of 2024, we decreased our estimate of future net cash flows by $282.9 million, or 2.8%, to reflect a decline in forecasted collection rates during the period, and slowed our forecasted net cash flow timing to reflect a decrease in Consumer Loan prepayments, which remain at below-average levels. Historically, Consumer Loan prepayments have been lower in periods with less availability of consumer credit. The $282.9 million decrease in forecasted net cash flows for the first nine months of 2024 was composed of an ordinary decrease in forecasted net cash flows of $135.7 million, or 1.4%, and an adjustment applied to our forecasting methodology during the second quarter of 2024, which upon implementation, reduced forecasted net cash flows by $147.2 million, or 1.4%, and increased our provision for credit losses by $127.5 million.

    During the first nine months of 2023, we decreased our estimate of future net cash flows by $149.3 million, or 1.7%, to reflect a decline in forecasted collection rates during the period and slowed our forecasted net cash flow timing to reflect a decrease in Consumer Loan prepayments. The $149.3 million decrease in forecasted net cash flows for the first nine months of 2023 was composed of an ordinary decrease in forecasted net cash flows of $104.8 million, or 1.2%, and an adjustment to our forecasting methodology during the second quarter of 2023, which upon implementation, decreased our estimate of future net cash flows by $44.5 million, or 0.5%, and increased our provision for credit losses by $71.3 million.

    The following table summarizes each component of provision for credit losses:

    (In millions)   For the Nine Months Ended September 30,    
    Provision for Credit Losses     2024     2023   Change
    Forecast changes   $         430.9   $         319.4   $         111.5
    New Consumer Loan assignments             260.4             253.1             7.3
    Total   $         691.3   $         572.5   $         118.8
    • An increase in operating expenses of 10.2% ($35.1 million), primarily due to:
      • An increase in salaries and wages expense of 8.2% ($17.5 million), primarily due to increases in (i) the number of team members as we are investing in our business with the goal of increasing the speed at which we enhance our product for dealers and consumers and (ii) fringe benefits, primarily due to higher medical claims.
      • An increase in general and administrative expense of 26.9% ($16.1 million), primarily due to increases in legal and technology systems expenses.
    • A loss on sale of building of $23.7 million related to the sale of one of our two office buildings. The building was sold to reduce excess office space and eliminate the associated annual operating costs of approximately $2.1 million.
    • An increase in premiums earned of 22.9% ($13.3 million), primarily due to growth in the size of our reinsurance portfolio, which resulted from growth in new Consumer Loan assignments and an increase in the average premium written per reinsured vehicle service contract in recent periods.
    • A decrease in provision for income taxes of 29.1% ($17.1 million), primarily due to a decrease in pre-tax income.
    • An increase in finance charges of 13.1% ($170.7 million), primarily due to an increase in the average balance of our loan portfolio.

    Adjusted financial results are provided to help shareholders understand our financial performance. The financial data below is non-GAAP, unless labeled otherwise. We use adjusted financial information internally to measure financial performance and to determine certain incentive compensation. We also use economic profit as a framework to evaluate business decisions and strategies, with the objective to maximize economic profit over the long term. In addition, certain debt facilities utilize adjusted financial information for the determination of loan collateral values and to measure financial covenants. The table below shows our results following adjustments to reflect non-GAAP accounting methods. Material adjustments are explained in the table footnotes and the subsequent “Floating Yield Adjustment” and “Senior Notes Adjustment” sections. Measures such as adjusted average capital, adjusted net income, adjusted net income per diluted share, adjusted interest expense (after-tax), adjusted net income plus adjusted interest expense (after-tax), adjusted return on capital, adjusted revenue, operating expenses, adjusted loans receivable, economic profit, and economic profit per diluted share are non-GAAP financial measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP.

    Adjusted financial results for the three and nine months ended September 30, 2024, compared to the same periods in 2023, include the following:

    (Dollars in millions, except per share data) For the Three Months Ended September 30,       For the Nine Months Ended
    September 30,    		    
        2024       2023     % Change     2024       2023     % Change
    Adjusted average capital $         8,387.6      $         7,023.9              19.4  %   $         7,976.2      $         6,801.6              17.3  %
    Adjusted net income $         109.1      $         139.5              -21.8  %   $         352.9      $         406.5              -13.2  %
    Adjusted interest expense (after-tax) $         85.6      $         54.8              56.2  %   $         237.3      $         146.1              62.4  %
    Adjusted net income plus adjusted interest expense (after-tax) $         194.7      $         194.3              0.2  %   $         590.2      $         552.6              6.8  %
    Adjusted return on capital           9.3  %             11.1  %           -16.2  %             9.9  %             10.8  %           -8.3  %
    Cost of capital           7.3  %             7.1  %           2.8  %             7.4  %             6.8  %           8.8  %
    Economic profit $         41.4      $         69.1              -40.1  %   $         149.0      $         204.6              -27.2  %
    Diluted weighted average shares outstanding   12,415,143        13,039,638              -4.8  %     12,494,011        13,068,998              -4.4  %
    Adjusted net income per diluted share $         8.79      $         10.70              -17.9  %   $         28.25      $         31.10              -9.2  %
    Economic profit per diluted share $         3.33      $         5.30              -37.2  %   $         11.93      $         15.66              -23.8  %

    Economic profit decreased 40.1% and 27.2% for the three and nine months ended September 30, 2024, as compared to the same periods in 2023. Economic profit is a function of the return on capital in excess of the cost of capital and the amount of capital invested in the business. The following table summarizes the impact each of these components had on the changes in economic profit for the three and nine months ended September 30, 2024, as compared to the same periods in 2023:

    (In millions) Year over Year Change in Economic Profit
      For the Three Months Ended September 30, 2024   For the Nine Months Ended September 30, 2024
    Decrease in adjusted return on capital $         (37.3)     $         (58.1)  
    Increase in cost of capital           (3.8)               (33.0)  
    Increase in adjusted average capital           13.4                35.5   
    Decrease in economic profit $         (27.7)     $         (55.6)  

    The decrease in economic profit for the three months ended September 30, 2024, as compared to the same period in 2023, was primarily a result of the following:

    • A decrease in our adjusted return on capital of 180 basis points, primarily due to a decrease in the yield used to recognize adjusted finance charges on our loan portfolio, primarily due to both a decline in forecasted collection rates and slower forecasted net cash flow timing since the second quarter of 2023. The slower forecasted net cash flow timing was primarily a result of a decrease in Consumer Loan prepayments, which remain at below-average levels.
    • An increase in adjusted average capital of 19.4%, primarily due to an increase in the average balance of our loan portfolio.

    The decrease in economic profit for the nine months ended September 30, 2024, as compared to the same period in 2023, was primarily a result of the following:

    • A decrease in our adjusted return on capital of 90 basis points, primarily due to:
      • A decrease in the yield used to recognize adjusted finance charges on our loan portfolio decreased our adjusted return on capital by 130 basis points, primarily due to both a decline in forecasted collection rates and slower forecasted net cash flow timing since the first quarter of 2023. The slower forecasted net cash flow timing was primarily a result of a decrease in Consumer Loan prepayments, which remain at below-average levels.
      • Slower growth in operating expenses increased our adjusted return on capital by 30 basis points as operating expenses grew by 10.2% while adjusted average capital grew by 17.3%.
    • An increase in our cost of capital, primarily due to an increase in our cost of debt, primarily as a result of higher interest rates on recently completed or extended secured financings and recently issued senior notes and the repayment of older secured financings and senior notes with lower interest rates.
    • An increase in adjusted average capital of 17.3%, primarily due to an increase in the average balance of our loan portfolio.

    The following table shows adjusted revenue and operating expenses as a percentage of adjusted average capital, the adjusted return on capital, and the percentage change in adjusted average capital for each of the last eight quarters, compared to the same period in the prior year:

        For the Three Months Ended
        Sept. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sept. 30, 2023   Jun. 30, 2023   Mar. 31, 2023   Dec. 31, 2022
    Adjusted revenue as a percentage of adjusted average capital (1)           18.2  %           19.6  %           19.8  %           20.2  %           20.7  %           21.2  %           20.6  %           22.0  %
    Operating expenses as a percentage of adjusted average capital (1)           6.2  %           6.2  %           6.7  %           6.3  %           6.3  %           6.9  %           7.2  %           6.4  %
    Adjusted return on capital (1)           9.3  %           10.3  %           10.1  %           10.6  %           11.1  %           11.1  %           10.3  %           12.0  %
    Percentage change in adjusted average capital compared to the same period in the prior year           19.4  %           17.6  %           14.6  %           11.5  %           8.8  %           6.2  %           1.0  %           -2.4  %

    (1)   Annualized.

    The decrease in adjusted return on capital for the three months ended September 30, 2024, as compared to the three months ended June 30, 2024, was primarily due to a decrease in the yield used to recognize adjusted finance charges on our loan portfolio, primarily due to both a decline in Consumer Loan performance and slower forecasted net cash flow timing in the second and third quarters of 2024, which is being recorded over time as an adjustment to the yield used to recognize adjusted finance charges.

    The following tables provide a reconciliation of non-GAAP measures to GAAP measures.  Certain amounts do not recalculate due to rounding.

    (Dollars in millions, except per share data)   For the Three Months Ended
        Sept. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sept. 30, 2023   Jun. 30, 2023   Mar. 31, 2023   Dec. 31, 2022
    Adjusted net income                                
    GAAP net income (loss)   $         78.8      $         (47.1)     $         64.3      $         93.6      $         70.8      $         22.2      $         99.5      $         127.3   
    Floating yield adjustment (after-tax)             (115.1)               (96.1)               (92.4)               (83.9)               (76.4)               (73.9)               (75.9)               (69.3)  
    GAAP provision for credit losses (after-tax)             142.2                246.9                143.2                126.1                142.1                192.9                 105.8                100.4   
    Loss on sale of building (1)             —                18.3                —                —                —                 —                 —                —   
    Senior notes adjustment (after-tax)             —                —                —                (2.6)               (0.5)               (0.6)               (0.5)               (0.5)  
    Income tax adjustment (2)             3.2                4.4                2.3                (4.1)               3.5                (0.6)               (1.9)               (1.8)  
    Adjusted net income   $         109.1      $         126.4      $         117.4      $         129.1      $         139.5      $         140.0      $         127.0      $         156.1   
                                     
    Adjusted net income per diluted share (3)   $         8.79     $         10.29     $         9.28     $         10.06     $         10.70     $         10.69     $         9.71     $         11.74  
    Diluted weighted average shares outstanding     12,415,143       12,282,174       12,646,529       12,837,181       13,039,638       13,099,961       13,073,316       13,294,506  
                                     
    Adjusted revenue                                
    GAAP total revenue   $         550.3      $         538.2      $         508.0      $         491.6      $         478.6      $         477.9      $         453.8      $         459.0   
    Floating yield adjustment             (149.4)               (124.8)               (120.0)               (108.9)               (99.3)               (96.1)               (98.4)               (90.0)  
    GAAP provision for claims             (18.5)               (20.3)               (17.0)               (16.6)               (16.5)               (19.7)               (17.9)               (12.4)  
    Adjusted revenue   $         382.4      $         393.1      $         371.0      $         366.1      $         362.8      $         362.1      $         337.5      $         356.6   
                                     
    Adjusted average capital                                
    GAAP average debt   $         6,071.1      $         5,818.2      $         5,306.8      $         4,986.3      $         4,831.4      $         4,730.3      $         4,594.7      $         4,591.1   
    Deferred debt issuance adjustment             —                —                —                20.9                24.5                24.0                21.2                21.3   
    Senior notes debt adjustment             —                —                —                2.8                3.4                3.4                3.4                3.4   
    Adjusted average debt             6,071.1                5,818.2                5,306.8                5,010.0                4,859.3                4,757.7                4,619.3                4,615.8   
    GAAP average shareholders’ equity             1,594.2                1,623.5                1,678.5                1,734.3                1,731.3                1,752.6                1,673.3                1,635.2   
    Senior notes equity adjustment             —                —                —                2.0                2.9                3.4                4.0                4.5   
    Income tax adjustment (4)             (118.5)               (118.5)               (118.5)               (118.5)               (118.5)               (118.5)               (118.5)               (118.5)  
    Floating yield adjustment             840.8                710.1                641.0                606.5                548.9                433.9                373.7                353.2   
    Adjusted average equity             2,316.5                2,215.1                2,201.0                2,224.3                2,164.6                2,071.4                1,932.5                1,874.4   
    Adjusted average capital   $         8,387.6      $         8,033.3      $         7,507.8      $         7,234.3      $         7,023.9      $         6,829.1      $         6,551.8      $         6,490.2   
                                     
    Adjusted revenue as a percentage of adjusted average capital (5)             18.2  %             19.6  %             19.8  %             20.2  %             20.7  %             21.2  %             20.6  %             22.0  %
                                     
    Adjusted loans receivable                                
    GAAP loans receivable, net   $         7,781.5      $         7,547.7      $         7,345.6      $         6,955.3      $         6,780.5      $         6,610.3      $         6,500.3      $         6,297.7   
    Floating yield adjustment             1,100.8                1,065.6                869.7                803.8                748.9                663.7                509.2                470.2   
    Adjusted loans receivable   $         8,882.3      $         8,613.3      $         8,215.3      $         7,759.1      $         7,529.4      $         7,274.0      $         7,009.5      $         6,767.9   
                                     
    Adjusted interest expense (after-tax)                                
    GAAP interest expense   $         111.2      $         104.5      $         92.5      $         78.8      $         70.5      $         62.8      $         54.4      $         49.4   
    Senior notes adjustment             —                —                —                 3.5                0.7                0.7                0.7                0.7   
    Adjusted interest expense (pre-tax)             111.2                104.5                92.5                82.3                71.2                63.5                55.1                50.1   
    Adjustment to record tax effect (2)             (25.6)               (24.0)               (21.3)               (18.9)               (16.4)               (14.6)               (12.7)               (11.5)  
    Adjusted interest expense (after-tax)   $         85.6      $         80.5      $         71.2      $         63.4      $         54.8      $         48.9      $         42.4      $         38.6   

    (1)   The sale of one of our two office buildings in June 2024 resulted in a loss on the sale of the asset. As this transaction is both unusual and infrequent in nature, we applied this adjustment to remove the impact of the loss on sale of building from our adjusted net income.
    (2)   Adjustment to record taxes at our estimated long-term effective income tax rate of 23%. 
    (3)   Net income per diluted share is computed independently for each of the quarters presented. Therefore, the sum of quarterly net income per diluted share information may not equal year-to-date net income per diluted share.
    (4)   The enactment of the Tax Cuts and Jobs Act in December 2017 resulted in the reversal of $118.5 million of provision for income taxes to reflect the new federal statutory income tax rate. This adjustment removes the impact of this reversal from adjusted average capital. We believe the income tax adjustment provides a more accurate reflection of the performance of our business as we are recognizing provision for income taxes at the applicable long-term effective tax rate for the period.
    (5)   Annualized.

    (Dollars in millions)   For the Three Months Ended
        Sept. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sept. 30, 2023   Jun. 30, 2023   Mar. 31, 2023   Dec. 31, 2022
    Adjusted return on capital (1)                                
    Adjusted net income   $         109.1      $         126.4      $         117.4      $         129.1      $         139.5      $         140.0      $         127.0      $         156.1   
    Adjusted interest expense (after-tax)             85.6                80.5                71.2                63.4                54.8                48.9                42.4                38.6   
    Adjusted net income plus adjusted interest expense (after-tax)   $         194.7      $         206.9      $         188.6      $         192.5      $         194.3      $         188.9      $         169.4      $         194.7   
                                     
    Reconciliation of GAAP return on equity to adjusted return on capital (4)                                
    GAAP return on equity (2)             19.8  %             -11.6  %             15.3  %             21.6  %             16.4  %             5.1  %             23.8  %             31.1  %
    Non-GAAP adjustments             -10.5  %             21.9  %             -5.2  %             -11.0  %             -5.3  %             6.0  %             -13.5  %             -19.1  %
    Adjusted return on capital (1)             9.3  %             10.3  %             10.1  %             10.6  %             11.1  %             11.1  %             10.3  %             12.0  %
                                     
    Economic profit                                
    Adjusted return on capital             9.3  %             10.3  %             10.1  %             10.6  %             11.1  %             11.1  %             10.3  %             12.0  %
    Cost of capital (3) (4)             7.3  %             7.5  %             7.3  %             7.6  %             7.1  %             6.7  %             6.6  %             6.6  %
    Adjusted return on capital in excess of cost of capital             2.0  %             2.8  %             2.8  %             3.0  %             4.0  %             4.4  %             3.7  %             5.4  %
    Adjusted average capital   $         8,387.6      $         8,033.3      $         7,507.8      $         7,234.3      $         7,023.9      $         6,829.1      $         6,551.8      $         6,490.2   
        Economic profit   $         41.4      $         56.2      $         51.4      $         55.9      $         69.1      $         74.1      $         61.4      $         88.1   
                                     
    Reconciliation of GAAP net income (loss) to economic profit                                
    GAAP net income (loss)   $         78.8      $         (47.1)     $         64.3      $         93.6      $         70.8      $         22.2      $         99.5      $         127.3   
    Non-GAAP adjustments             30.3                173.5                53.1                35.5                68.7                117.8                27.5                28.8   
    Adjusted net income             109.1                126.4                117.4                129.1                139.5                140.0                127.0                156.1   
    Adjusted interest expense (after-tax)             85.6                80.5                71.2                63.4                54.8                48.9                42.4                38.6   
    Adjusted net income plus adjusted interest expense (after-tax)             194.7                206.9                188.6                 192.5                194.3                188.9                169.4                194.7   
    Less: cost of capital             153.3                150.7                137.2                136.6                125.2                114.8                108.0                106.6   
    Economic profit   $         41.4      $         56.2      $         51.4      $         55.9      $         69.1      $         74.1      $         61.4      $         88.1   
                                     
    Economic profit per diluted share (5)   $         3.33      $         4.58      $         4.06      $         4.35      $         5.30      $         5.66      $         4.70      $         6.63   
                                     
    Operating expenses as a percentage of adjusted average capital (4)             6.2  %             6.2  %             6.7  %             6.3  %             6.3  %             6.9  %             7.2  %             6.4  %
                                     
    Percentage change in adjusted average capital compared to the same period in the prior year             19.4  %             17.6  %             14.6  %             11.5  %             8.8  %             6.2  %             1.0  %             -2.4  %

    (1)   Adjusted return on capital is defined as adjusted net income plus adjusted interest expense (after-tax) divided by adjusted average capital.
    (2)   Calculated by dividing GAAP net income (loss) by GAAP average shareholders’ equity.

    (3)   The cost of capital includes both a cost of equity and a cost of debt.  The cost of equity capital is determined based on a formula that considers the risk of the business and the risk associated with our use of debt.  The formula utilized for determining the cost of equity capital is as follows: (the average 30-year Treasury rate + 5%) + [(1 – tax rate) x (the average 30-year Treasury rate + 5% – pre-tax average cost of debt rate) x average debt/(average equity + average debt x tax rate)].  For the periods presented, the average 30-year Treasury rate and the adjusted pre-tax average cost of debt were as follows:

        For the Three Months Ended
        Sept. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sept. 30, 2023   Jun. 30, 2023   Mar. 31, 2023   Dec. 31, 2022
    Average 30-year Treasury rate           4.3  %           4.6  %           4.3  %           4.7  %           4.2  %           3.8  %           3.8  %           4.0  %
    Adjusted pre-tax average cost of debt (4)           7.3  %           7.2  %           7.0  %           6.3  %           5.9  %           5.3  %           4.8  %           4.3  %

    (4)   Annualized.
    (5)   Economic profit per diluted share is computed independently for each of the quarters presented. Therefore, the sum of quarterly economic profit per diluted share information may not equal year-to-date economic profit per diluted share.

    (In millions, except share and per share data)   For the Nine Months Ended September 30,
          2024       2023  
    Adjusted net income        
    GAAP net income   $         96.0      $         192.5   
    Floating yield adjustment (after-tax)             (303.6)               (226.2)  
    GAAP provision for credit losses (after-tax)             532.3                440.8   
    Loss on sale of building (1)             18.3                —   
    Senior notes adjustment (after-tax)             —                (1.6)  
    Income tax adjustment (2)             9.9                1.0   
    Adjusted net income   $         352.9      $         406.5   
             
    Adjusted net income per diluted share   $         28.25     $         31.10  
    Diluted weighted average shares outstanding     12,494,011       13,068,998  
             
    Adjusted average capital        
    GAAP average debt   $         5,732.1      $         4,718.7   
    Deferred debt issuance adjustment             —                23.3   
    Senior notes debt adjustment             —                3.4   
    Adjusted average debt             5,732.1                4,745.4   
    GAAP average shareholders’ equity             1,632.1                1,719.1   
    Senior notes equity adjustment             —                3.4   
    Income tax adjustment (3)             (118.5)               (118.5)  
    Floating yield adjustment             730.5                452.2   
    Adjusted average equity             2,244.1                2,056.2   
    Adjusted average capital   $         7,976.2      $         6,801.6   
             
    Adjusted interest expense (after-tax)        
    GAAP interest expense   $         308.2      $         187.7   
    Senior notes adjustment             —                2.1   
    Adjusted interest expense (pre-tax)             308.2                189.8   
    Adjustment to record tax effect (2)             (70.9)               (43.7)  
    Adjusted interest expense (after-tax)   $         237.3      $         146.1   
             
    Adjusted return on capital (5)        
    Adjusted net income   $         352.9      $         406.5   
    Adjusted interest expense (after-tax)             237.3                146.1   
        Adjusted net income plus adjusted interest expense (after-tax)   $         590.2      $         552.6   
             
    Reconciliation of GAAP return on equity to adjusted return on capital (7)        
    GAAP return on equity (4)             7.8  %             14.9  %
    Non-GAAP adjustments             2.1  %             -4.1  %
    Adjusted return on capital (5)             9.9  %             10.8  %
             
    Economic profit        
    Adjusted return on capital             9.9  %             10.8  %
    Cost of capital (6) (7)             7.4  %             6.8  %
    Adjusted return on capital in excess of cost of capital             2.5  %             4.0  %
    Adjusted average capital   $         7,976.2      $         6,801.6   
        Economic profit   $         149.0      $         204.6   
             
    Reconciliation of GAAP net income to economic profit        
    GAAP net income   $         96.0      $         192.5   
    Non-GAAP adjustments             256.9                214.0   
    Adjusted net income             352.9                406.5   
    Adjusted interest expense (after-tax)             237.3                146.1   
    Adjusted net income plus adjusted interest expense (after-tax)             590.2                552.6   
    Less: cost of capital             441.2                348.0   
    Economic profit   $         149.0      $         204.6   
             
    Economic profit per diluted share (8)   $         11.93      $         15.66   

    (1)   The sale of one of our two office buildings in June 2024 resulted in a loss on the sale of the asset. As this transaction is both unusual and infrequent in nature, we applied this adjustment to remove the impact of the loss on sale of building from our adjusted net income.   
    (2)        Adjustment to record taxes at our estimated long-term effective income tax rate of 23%.
    (3)   The enactment of the Tax Cuts and Jobs Act in December 2017 resulted in the reversal of $118.5 million of provision for income taxes to reflect the new federal statutory income tax rate. This adjustment removes the impact of this reversal from adjusted average capital. We believe the income tax adjustment provides a more accurate reflection of the performance of our business as we are recognizing provision for income taxes at the applicable long-term effective tax rate for the period.
    (4)   Calculated by dividing GAAP net income by GAAP average shareholders’ equity.
    (5)   Adjusted return on capital is defined as adjusted net income plus adjusted interest expense after-tax divided by adjusted average capital.
    (6)   The cost of capital includes both a cost of equity and a cost of debt.  The cost of equity capital is determined based on a formula that considers the risk of the business and the risk associated with our use of debt.  The formula utilized for determining the cost of equity capital is as follows: (the average 30-year Treasury rate + 5%) + [(1 – tax rate) x (the average 30-year Treasury rate + 5% – pre-tax average cost of debt rate) x average debt/(average equity + average debt x tax rate)].  For the periods presented, the average 30-year Treasury rate and the adjusted pre-tax average cost of debt were as follows:

        For the Nine Months Ended September 30,
        2024     2023  
    Average 30-year Treasury rate           4.4  %           3.9  %
    Adjusted pre-tax average cost of debt (7)           7.2  %           5.3  %

    (7)   Annualized
    (8)   Economic profit per diluted share is computed independently for each of the quarters presented. Therefore, the sum of quarterly economic profit per diluted share information may not equal year-to-date economic profit per diluted share.

    Floating Yield Adjustment

    The net loan income (finance charge revenue less provision for credit losses expense) that we recognize over the life of a loan equals the cash we collect from the underlying Consumer Loan less the cash we pay to the dealer. We believe the economics of our business are best exhibited by recognizing loan revenue on a level-yield basis over the life of the loan based on expected future net cash flows. The purpose of this non-GAAP adjustment is to provide insight into our business by showing this level yield measure of income. Under GAAP, contractual amounts due in excess of the loan receivable balance at the time of assignment will be reflected as interest income, while contractual amounts due that are not expected to be collected are reflected in the provision for credit losses. Our non-GAAP floating yield adjustment recognizes the net effects of contractual interest income and expected credit losses in a single measure of finance charge revenue, consistent with how we manage our business. The floating yield adjustment recognizes revenue on a level-yield basis based upon expected future net cash flows, with any changes in expected future net cash flows, which are recognized immediately under GAAP as provision for credit losses, recognized over the remaining forecast period (up to 120 months after the origination date of the underlying Consumer Loans) for each individual dealer loan and purchased loan. The floating yield adjustment does not accelerate revenue recognition. Rather, it reduces revenue by taking amounts that are reported under GAAP as provision for credit losses and instead treating them as reductions of revenue over time.

    Under the GAAP methodology we employ, which is known as the current expected credit loss model, or CECL, we are required to recognize:

    • a significant provision for credit losses expense at the time of the loan’s assignment to us for contractual net cash flows we do not expect to realize; and
    • finance charge revenue in subsequent periods that is significantly in excess of our expected yield.

    Due to the GAAP treatment of contractual net cash flows we do not expect to realize at the time of loan assignment (i.e. significant expense at the time of loan assignment, which is offset by higher revenue in subsequent periods), we do not believe the GAAP methodology we employ provides sufficient transparency into the economics of our business, including our results of operations, financial condition, and financial leverage. Our floating yield adjustment enables us to provide measures of income that are not impacted by GAAP’s treatment of contractual net cash flows we do not expect to realize at the time of loan assignment. We believe the floating yield adjustment is presented in a manner which reflects both the economic reality of our business and how the business is managed and provides valuable supplemental information to help investors better understand our business, executive compensation, liquidity, and capital resources.

    Senior Notes Adjustment (applied in periods prior to December 31, 2023)

    This non-GAAP adjustment modifies our GAAP financial results to treat the issuance of certain senior notes as a refinancing of certain previously issued senior notes. Our historical adjusted financial information reflects application of the senior notes adjustment as described below in connection with (i) the issuance by us in 2014 of $300.0 million principal amount of 6.125% senior notes due 2021 (the “2021 senior notes”) and the related retirement of our 9.125% senior notes due 2017 (the “2017 senior notes”) and (ii) the issuance by us in 2019 of $400.0 million principal amount of 5.125% senior notes due 2024 (the “2024 senior notes”) and the related retirement of the 2021 senior notes and our 7.375% senior notes due 2023 (the “2023 senior notes”).

    We issued the 2024 senior notes on December 18, 2019. We used a portion of the net proceeds from the 2024 senior notes to repurchase or redeem all of the $300.0 million outstanding principal amount of the 2021 senior notes, of which $148.2 million was repurchased on December 18, 2019 and the remaining $151.8 million was redeemed on January 17, 2020. We used the remaining net proceeds from the 2024 senior notes, together with borrowings under our revolving credit facility, to redeem in full the $250.0 million outstanding principal amount of the 2023 senior notes on March 15, 2020. Under GAAP, the fourth quarter of 2019 included (i) a pre-tax loss on extinguishment of debt of $1.8 million related to the repurchase of 2021 senior notes in the fourth quarter of 2019 and the redemption of the remaining 2021 senior notes in the first quarter of 2020 and (ii) additional interest expense of $0.3 million on $160.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2024 senior notes and repurchase of 2021 senior notes in the fourth quarter of 2019 to the redemption of the remaining 2021 senior notes in the first quarter of 2020. Under GAAP, the first quarter of 2020 included (i) a pre-tax loss on extinguishment of debt of $7.4 million related to the redemption of 2023 senior notes in the first quarter of 2020 and (ii) additional interest expense of $0.4 million on $160.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2024 senior notes and repurchase of 2021 senior notes in the fourth quarter of 2019 to the redemption of the remaining 2021 senior notes in the first quarter of 2020.

    We issued the 2021 senior notes on January 22, 2014. On February 21, 2014, we used the net proceeds from the 2021 senior notes, together with borrowings under our revolving credit facilities, to redeem in full the $350.0 million outstanding principal amount of the 2017 senior notes. Under GAAP, the first quarter of 2014 included (i) a pre-tax loss on extinguishment of debt of $21.8 million related to the redemption of the 2017 senior notes in the first quarter of 2014 and (ii) additional interest expense of $1.4 million on $276.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2021 senior notes to the redemption of the 2017 senior notes.

    Under our non-GAAP approach, the loss on extinguishment of debt and additional interest expense that were recognized for GAAP purposes were in each case deferred as debt issuance costs to be recognized ratably as interest expense over the term of the newly issued notes. In addition, for adjusted average capital purposes, the impact of additional outstanding debt related to the lag from the issuance of the new notes to the redemption of the previously issued notes was in each case deferred to be recognized ratably over the term of the newly issued notes. Upon the issuance of the 2024 senior notes in the fourth quarter of 2019, the outstanding unamortized balances of the non-GAAP adjustments related to the 2021 senior notes were deferred and were being recognized ratably over the term of the 2024 senior notes, until the repurchase and redemption of the 2024 senior notes in December 2023.

    We believe the application of the senior notes adjustment as described above provided a more accurate reflection of the performance of our business, since we were recognizing the costs incurred with these transactions in a manner consistent with how we recognize the costs incurred when we periodically refinance our other debt facilities. We have determined not to apply the senior notes adjustment in connection with the issuance by us in December 2023 of our 9.250% senior notes due 2028 and the related retirement of the 2024 senior notes, because the adjustment would not be material.

    Cautionary Statement Regarding Forward-Looking Information

    We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. Statements in this release that are not historical facts, such as those using terms like “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, and those regarding our future results, plans, and objectives, are “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on February 12, 2024, and other risk factors discussed herein or listed from time to time in our reports filed with the SEC and the following:

    Industry, Operational, and Macroeconomic Risks

    • Our inability to accurately forecast and estimate the amount and timing of future collections could have a material adverse effect on results of operations.
    • Due to competition from traditional financing sources and non-traditional lenders, we may not be able to compete successfully.
    • Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity, and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.
    • Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.
    • We are dependent on our senior management and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.
    • Our reputation is a key asset to our business, and our business may be affected by how we are perceived in the marketplace.
    • An outbreak of contagious disease or other public health emergency could materially and adversely affect our business, financial condition, liquidity, and results of operations.
    • The concentration in several states of automobile dealers who participate in our programs could adversely affect us.
    • Reliance on our outsourced business functions could adversely affect our business.
    • Our ability to hire and retain foreign engineering personnel could be hindered by immigration restrictions.
    • We may be unable to execute our business strategy due to current economic conditions.
    • Natural disasters, climate change, military conflicts, acts of war, terrorist attacks and threats, or the escalation of military activity in response to terrorist attacks or otherwise may negatively affect our business, financial condition, and results of operations.
    • Governmental or market responses to climate change and related environmental issues could have a material adverse effect on our business.
    • A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders have interests which may conflict with the interests of our other security holders.

    Capital and Liquidity Risks

    • We may be unable to continue to access or renew funding sources and obtain capital needed to maintain and grow our business.
    • The terms of our debt limit how we conduct our business.
    • A violation of the terms of our asset-backed secured financings or revolving secured warehouse facilities could have a material adverse impact on our operations.
    • Our substantial debt could negatively impact our business, prevent us from satisfying our debt obligations, and adversely affect our financial condition.
    • We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.
    • Interest rate fluctuations may adversely affect our borrowing costs, profitability, and liquidity.
    • Reduction in our credit rating could increase the cost of our funding from, and restrict our access to, the capital markets and adversely affect our liquidity, financial condition, and results of operations.
    • We may incur substantially more debt and other liabilities. This could exacerbate further the risks associated with our current debt levels.
    • The conditions of the U.S. and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity, and results of operations.

    Technology and Cybersecurity Risks

    • Our dependence on technology could have a material adverse effect on our business.
    • We depend on secure information technology, and a breach of our systems or those of our third-party service providers could result in our experiencing significant financial, legal, and reputational exposure and could materially adversely affect our business, financial condition, and results of operations.
    • Our use of electronic contracts could impact our ability to perfect our ownership or security interest in Consumer Loans.
    • Failure to properly safeguard confidential consumer and team member information could subject us to liability, decrease our profitability, and damage our reputation.

    Legal and Regulatory Risks

    • Litigation we are involved in from time to time may adversely affect our financial condition, results of operations, and cash flows.
    • Changes in tax laws and the resolution of uncertain income tax matters could have a material adverse effect on our results of operations and cash flows from operations.
    • The regulations to which we are or may become subject could result in a material adverse effect on our business.

    Other factors not currently anticipated by management may also materially and adversely affect our business, financial condition, and results of operations. We do not undertake, and expressly disclaim any obligation, to update or alter our statements whether as a result of new information, future events, or otherwise, except as required by applicable law.

    Webcast Details

    We will host a webcast on October 31, 2024 at 8:30 a.m. Eastern Time to discuss our third quarter results. The webcast can be accessed live by visiting the “Investor Relations” section of our website at ir.creditacceptance.com or by telephone as described below. Only persons accessing the webcast by telephone will be able to pose questions to the presenters during the webcast. A replay and transcript of the webcast will be archived in the “Investor Relations” section of our website. 

    To participate in the webcast by telephone, you must pre-register at https://register.vevent.com/register/BIc3f0d088751f49af853a2c2511fe2362, or through the link posted on the “Investor Relations” section of our website at ir.creditacceptance.com. Upon registration you will be provided with the dial-in number and a unique PIN to access the webcast by telephone.

    Description of Credit Acceptance Corporation

    We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.

    Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com.

    CREDIT ACCEPTANCE CORPORATION
    CONSOLIDATED STATEMENTS OF INCOME
    (UNAUDITED)
            

    (Dollars in millions, except per share data) For the Three Months Ended September 30,   For the Nine Months Ended September 30,
        2024     2023     2024     2023
    Revenue:              
    Finance charges $         507.6    $         441.7    $         1,474.5    $         1,303.8 
    Premiums earned           25.1              20.8              71.3              58.0 
    Other income           17.6              16.1              50.7              48.5 
    Total revenue           550.3              478.6              1,596.5              1,410.3 
    Costs and expenses:              
    Salaries and wages           77.3              66.7              231.6              214.1 
    General and administrative           29.0              21.3              75.9              59.8 
    Sales and marketing           23.1              22.5              72.4              70.9 
    Total operating expenses           129.4              110.5              379.9              344.8 
                   
    Provision for credit losses on forecast changes           105.9              106.3              430.9              319.4 
    Provision for credit losses on new Consumer Loan assignments           78.8              78.3              260.4              253.1 
    Total provision for credit losses           184.7              184.6              691.3              572.5 
                   
    Interest           111.2              70.5              308.2              187.7 
    Provision for claims           18.5              16.5              55.8              54.1 
    Loss on sale of building           —              —              23.7              — 
    Total costs and expenses           443.8              382.1              1,458.9              1,159.1 
    Income before provision for income taxes           106.5              96.5              137.6              251.2 
    Provision for income taxes           27.7              25.7              41.6              58.7 
    Net income $         78.8    $         70.8    $         96.0    $         192.5 
                   
    Net income per share:              
    Basic $         6.42    $         5.47    $         7.78    $         14.79 
    Diluted $         6.35    $         5.43    $         7.68    $         14.73 
                   
    Weighted average shares outstanding:              
    Basic           12,274,685              12,933,377              12,345,739              13,013,344 
    Diluted           12,415,143              13,039,638              12,494,011              13,068,998 

    CREDIT ACCEPTANCE CORPORATION
    CONSOLIDATED BALANCE SHEETS
    (UNAUDITED)

    (Dollars in millions, except per share data) As of
      September 30, 2024   December 31, 2023
    ASSETS:      
    Cash and cash equivalents $         159.7      $         13.2   
    Restricted cash and cash equivalents           556.6                457.7   
    Restricted securities available for sale           113.9                93.2   
           
    Loans receivable           11,197.6                10,020.1   
    Allowance for credit losses           (3,416.1)               (3,064.8)  
    Loans receivable, net           7,781.5                6,955.3   
           
    Property and equipment, net           15.2                46.5   
    Income taxes receivable           26.4                4.3   
    Other assets           29.9                40.0   
    Total assets $         8,683.2      $         7,610.2   
           
    LIABILITIES AND SHAREHOLDERS’ EQUITY:      
    Liabilities:      
    Accounts payable and accrued liabilities $         364.4      $         318.8   
    Revolving secured lines of credit           1.0                79.2   
    Secured financing           5,257.1                3,990.9   
    Senior notes           990.8                989.0   
    Mortgage note           —                8.4   
    Deferred income taxes, net           423.2                389.2   
    Income taxes payable           0.2                81.0   
    Total liabilities           7,036.7                5,856.5   
           
    Shareholders’ Equity:      
    Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued           —                —   
    Common stock, $.01 par value, 80,000,000 shares authorized, 12,111,600 and 12,522,397 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively           0.1                0.1   
    Paid-in capital           324.5                279.0   
    Retained earnings           1,321.0                1,475.6   
    Accumulated other comprehensive income (loss)           0.9                (1.0)  
    Total shareholders’ equity           1,646.5                1,753.7   
    Total liabilities and shareholders’ equity $         8,683.2      $         7,610.2   

    The MIL Network –

  • MIL-OSI: Climb Global Solutions Reports Record Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Net Income and Adjusted Net Income up more than 2x to $5.5 Million or $1.19 per Share and $7.1 million or $1.55 per share, respectively; Adjusted EBITDA up 96% to $9.9 Million

    Net Sales up 52% to $119.3 Million, with Adjusted Gross Billings Up 65% to $465.2 Million

    EATONTOWN, N.J., Oct. 30, 2024 (GLOBE NEWSWIRE) — Climb Global Solutions, Inc. (NASDAQ:CLMB) (“Climb”, the “Company”, “we”, or “our”), a value-added global IT channel company providing unique sales and distribution solutions for innovative technology vendors, is reporting results for the third quarter ended September 30, 2024.

    Third Quarter 2024 Summary vs. Same Year-Ago Quarter

    • Net sales increased 52% to $119.3 million.
    • Adjusted gross billings (a non-GAAP financial measure defined below) increased 65% to $465.2 million.
    • Net income increased more than 2x to $5.5 million or $1.19 per diluted share.
    • Adjusted net income (a non-GAAP financial measure defined below) also increased more than 2x to $7.1 million or $1.55 per diluted share.
    • Adjusted EBITDA (a non-GAAP financial measure defined below) increased 96% to $9.9 million.

    Management Commentary

    “Q3 was another period of exceptional growth for Climb as we generated record levels across all key financial metrics, while delivering on our acquisition objectives,” said CEO Dale Foster. “Our strong performance was driven by the execution of our core initiatives and the integration of DSS and DataSolutions into our operating platform. We also generated double-digit organic growth in both the U.S. and Europe as we deepened relationships with existing customers while signing new, innovative vendors to our line card.

    “Looking ahead, we will continue to leverage our global infrastructure to foster organic growth while actively evaluating M&A targets that complement our geographic footprint, expand our service and solution offerings and, most importantly, align with our high-performance culture. We expect to unlock additional synergies from our acquisitions and further improve operating leverage as we execute across our global platform. We believe that these initiatives, coupled with our proven track record of accretive M&A, will enable us to close out 2024 on a strong note and achieve another year of record results.”

    Dividend

    Subsequent to quarter end, on October 28, 2024, Climb’s Board of Directors declared a quarterly dividend of $0.17 per share of its common stock payable on November 15, 2024, to shareholders of record on November 11, 2024.

    Third Quarter 2024 Financial Results

    Net sales in the third quarter of 2024 increased 52% to $119.3 million compared to $78.5 million for the same period in 2023. This reflects organic growth from new and existing vendors, as well as contributions from the Company’s acquisitions of Douglas Stewart Software & Services, LLC (“DSS”) on July 31, 2024 and DataSolutions Holdings Limited (“DataSolutions”) on October 6, 2023. In addition, adjusted gross billings (“AGB”) in the third quarter of 2024 increased 65% to $465.2 million compared to $281.9 million in the year-ago period.

    Gross profit in the third quarter of 2024 increased 70% to $24.3 million compared to $14.3 million for the same period in 2023. The increase was driven by organic growth from new and existing vendors in both North America and Europe, as well as contributions from DSS and DataSolutions.

    Selling, general, and administrative (“SG&A”) expenses in the third quarter of 2024 were $13.9 million compared to $10.1 million in the year-ago period. SG&A from DSS and DataSolutions drove the majority of the increase as well as variable sales compensation attributed to the growth in AGB. SG&A as a percentage of adjusted gross billings decreased to 3.0% for the third quarter of 2024 compared to 3.6% in the year-ago period.

    Net income in the third quarter of 2024 increased more than 2x to $5.5 million or $1.19 per diluted share, compared to $2.4 million or $0.52 per diluted share for the same period in 2023. Net income was impacted by a $1.2 million charge related to a change in fair value of acquisition contingent consideration associated with DataSolutions. Adjusted net income also increased more than 2x to $7.1 million or $1.55 per diluted share, compared to $2.6 million or $0.56 per diluted share for the year-ago period. The Company’s earnings per diluted share in the third quarter of 2024 was negatively impacted by $0.05 in FX compared to the year-ago period.

    Adjusted EBITDA in the third quarter of 2024 increased 96% to $9.9 million compared to $5.1 million for the same period in 2023. The increase was primarily driven by organic growth from both new and existing vendors, as well as contribution from the Company’s acquisitions of DSS and DataSolutions. Effective margin, which is defined as adjusted EBITDA as a percentage of gross profit, increased 500 basis points to 41% compared to 36% for the same period in 2023.

    On September 30, 2024, cash and cash equivalents were $22.1 million compared to $36.3 million on December 31, 2023, while working capital decreased by $12.3 million during this period. The decrease in cash was primarily attributed to the cash paid at closing for the acquisition of DSS, $20.9 million, as well as the timing of receivable collections and payables. Climb had $0.9 million of outstanding debt on September 30, 2024, with no borrowings outstanding under its $50 million revolving credit facility.

    For more information on the non-GAAP financial measures discussed in this press release, please see the section titled, “Non-GAAP Financial Measures,” and the reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures at the end of this press release.

    Conference Call

    The Company will conduct a conference call tomorrow, October 31, 2024, at 8:30 a.m. Eastern time to discuss its results for the third quarter ended September 30, 2024.

    Climb management will host the conference call, followed by a question-and-answer period.

    Date: Thursday, October 31, 2024
    Time: 8:30 a.m. Eastern time
    Toll-free dial-in number: (800) 274-8461
    International dial-in number: (203) 518-9814
    Conference ID: CLIMB
    Webcast: Climb’s Q3 2024 Conference Call

    If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.

    The conference call will also be available for replay on the investor relations section of the Company’s website at www.climbglobalsolutions.com.

    About Climb Global Solutions

    Climb Global Solutions, Inc. (NASDAQ:CLMB) is a value-added global IT distribution and solutions company specializing in emerging and innovative technologies. Climb operates across the US, Canada and Europe through multiple business units, including Climb Channel Solutions, Grey Matter and Climb Global Services. The Company provides IT distribution and solutions for companies in the Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & ALM industries.

    Additional information can be found by visiting www.climbglobalsolutions.com.

    Non-GAAP Financial Measures

    Climb Global Solutions uses non-GAAP financial measures, including adjusted gross billings, adjusted net income and adjusted EBITDA, as supplemental measures of the performance of the Company’s business. Use of these financial measures has limitations, and you should not consider them in isolation or use them as substitutes for analysis of Climb’s financial results under generally accepted accounting principles in the United States of America (“U.S. GAAP”). The attached tables provide definitions of these measures and a reconciliation of each non-GAAP financial measure to the most nearly comparable measure under U.S. GAAP.

    Forward-Looking Statements

    The statements in this release, other than statements of historical fact, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to come within the safe harbor protection provided by those sections. These forward-looking statements are subject to certain risks and uncertainties. Many of the forward-looking statements may be identified by words such as ”look forward,” “believes,” “expects,” “intends,” “anticipates,” “plans,” “estimates,” “projects,” “forecasts,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “under construction,” “in development,” “opportunity,” “target,” “outlook,” “maintain,” “continue,” “goal,” “aim,” “commit,” or similar expressions, or when we discuss our priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations. In this press release, the forward-looking statements relate to, among other things, declaring and reaffirming our strategic goals, future operating results, and the effects and potential benefits of the strategic acquisition on our business. Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include, without limitation, our ability to recognize the anticipated benefits of the acquisitions of Data Solutions Holdings Limited and Douglas Stewart Software & Services, LLC, the continued acceptance of the Company’s distribution channel by vendors and customers, the timely availability and acceptance of new products, product mix, market conditions, competitive pricing pressures, the successful integration of acquisitions, contribution of key vendor relationships and support programs, inflation, as well as factors that affect the software industry in general. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described in the section entitled “Risk Factors” contained in Item 1A. of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and from time to time in the Company’s filings with the Securities and Exchange Commission.

    Company Contact

    Drew Clark
    Chief Financial Officer
    (732) 389-0932
    Drew@ClimbGS.com

    Investor Relations Contact

    Sean Mansouri, CFA or Aaron D’Souza
    Elevate IR
    (720) 330-2829
    CLMB@elevate-ir.com

             
    CLIMB GLOBAL SOLUTIONS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
      (Unaudited)
    (Amounts in thousands, except share and per share amounts)
             
        September 30, 2024   December 31, 2023
             
    ASSETS
             
    Current assets      
      Cash and cash equivalents $ 22,139     $ 36,295  
      Accounts receivable, net of allowance for doubtful accounts of $640 and $709, respectively   247,907       222,269  
      Inventory, net   4,445       3,741  
      Prepaid expenses and other current assets   6,629       6,755  
    Total current assets   281,120       269,060  
             
    Equipment and leasehold improvements, net   12,151       8,850  
    Goodwill   29,628       27,182  
    Other intangibles, net   46,041       26,930  
    Right-of-use assets, net   937       878  
    Accounts receivable long-term, net   752       797  
    Other assets   863       1,077  
    Deferred income tax assets   448       324  
             
    Total assets $ 371,940     $ 335,098  
             
    LIABILITIES AND STOCKHOLDERS’ EQUITY
             
    Current liabilities      
      Accounts payable and accrued expenses $ 273,893     $ 249,648  
      Lease liability, current portion   533       450  
      Term loan, current portion   555       540  
    Total current liabilities   274,981       250,638  
             
      Lease liability, net of current portion   796       879  
      Deferred income tax liabilities   5,671       5,554  
      Term loan, net of current portion   334       752  
      Non-current liabilities   2,490       2,505  
             
    Total liabilities   284,272       260,328  
             
             
    Stockholders’ equity      
      Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares      
      issued, and 4,606,790 and 4,573,448 shares outstanding , respectively   53       53  
      Additional paid-in capital   36,676       34,647  
      Treasury stock, at cost, 677,710 and 711,052 shares, respectively   (12,777 )     (12,623 )
      Retained earnings   62,560       53,215  
      Accumulated other comprehensive income (loss)   1,156       (522 )
    Total stockholders’ equity   87,668       74,770  
    Total liabilities and stockholders’ equity $ 371,940     $ 335,098  
             
    CLIMB GLOBAL SOLUTIONS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
    (Unaudited)
    (Amounts in thousands, except per share data)
                   
      Nine months ended   Three months ended
      September 30,   September 30,
        2024       2023       2024       2023  
                   
    Net Sales $ 303,847     $ 245,229     $ 119,349     $ 78,457  
                   
    Cost of sales, excluding depreciation and amortization expense   244,014       202,053       95,092       64,183  
                   
    Gross profit   59,833       43,176       24,257       14,274  
                   
                   
    Selling, general and administrative expenses   39,433       31,930       13,937       10,122  
    Depreciation & amortization expense   2,933       1,934       1,197       617  
    Acquisition related costs   1,201       277       609       246  
    Total selling, general and administrative expenses   43,567       34,141       15,743       10,985  
                   
    Income from operations   16,266       9,035       8,514       3,289  
                   
    Interest, net   755       760       198       318  
    Foreign currency transaction loss   (688 )     (100 )     (442 )     (140 )
    Change in fair value of acquisition contingent consideration   (1,152 )     –       (1,152 )     –  
    Income before provision for income taxes   15,181       9,695       7,118       3,467  
    Provision for income taxes   3,561       2,618       1,659       1,095  
                   
    Net income $ 11,620     $ 7,077     $ 5,459     $ 2,372  
                   
    Income per common share – Basic $ 2.54     $ 1.57     $ 1.19     $ 0.52  
    Income per common share – Diluted $ 2.54     $ 1.57     $ 1.19     $ 0.52  
                   
    Weighted average common shares outstanding – Basic   4,458       4,392       4,476       4,414  
    Weighted average common shares outstanding – Diluted   4,458       4,392       4,476       4,414  
                   
    Dividends paid per common share $ 0.51     $ 0.51     $ 0.17     $ 0.17  
                   
                   
    Reconciliation of GAAP and Non-GAAP Financial Measures (unaudited)            
    (Amounts in thousands, except per share data)              
                   
    The table below presents net sales reconciled to Adjusted Gross Billings (Non-GAAP) (1):        
                   
      Nine months ended   Three months ended
      September 30, September 30,   September 30,   September 30,
        2024       2023       2024       2023  
    Net sales $ 303,847     $ 245,229     $ 119,349     $ 78,457  
    Costs of sales related to sales where the Company is an agent   876,447       618,110       345,835       203,458  
    Adjusted gross billings (Non-GAAP) $ 1,180,294     $ 863,339     $ 465,184     $ 281,915  
                   

    (1) We define adjusted gross billings as net sales in accordance with US GAAP, adjusted for the cost of sales related to sales where the Company is an agent. We provided a reconciliation of adjusted gross billings to net sales, which is the most directly comparable US GAAP measure. We use adjusted gross billings of product and services as a supplemental measure of our performance to gain insight into the volume of business generated by our business, and to analyze the changes to our accounts receivable and accounts payable. Our use of adjusted gross billings of product and services as analytical tools has limitations, and you should not consider them in isolation or as substitutes for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate adjusted gross billings of product and services or similarly titled measures differently, which may reduce their usefulness as comparative measures.

      The table below presents net income reconciled to adjusted EBITDA (Non-GAAP) (2):
                     
        Nine months ended   Three months ended
        September 30, September 30,   September 30,   September 30,
          2024       2023       2024       2023  
                     
    Net income $ 11,620     $ 7,077     $ 5,459     $ 2,372  
      Provision for income taxes   3,561       2,618       1,659       1,095  
      Depreciation and amortization   2,933       1,934       1,197       617  
      Interest expense   266       94       105       45  
    EBITDA   18,380       11,723       8,420       4,129  
      Share-based compensation   2,810       3,422       904       687  
      Acquisition related costs   1,201       277       609       246  
    Adjusted EBITDA $ 22,391     $ 15,422     $ 9,933     $ 5,062  
                     
                     
        Nine months ended   Three months ended
        September 30, September 30,   September 30,   September 30,
    Components of interest, net   2024       2023       2024       2023  
                     
      Amortization of discount on accounts receivable with extended payment terms $ (23 )   $ (41 )   $ (6 )   $ (12 )
      Interest income   (998 )     (813 )     (297 )     (351 )
      Interest expense   266       94       105       45  
    Interest, net $ (755 )   $ (760 )   $ (198 )   $ (318 )
                     

    (2) We define adjusted EBITDA, as net income, plus provision for income taxes, depreciation, amortization, share-based compensation, interest and acquisition related costs. We define effective margin as adjusted EBITDA as a percentage of gross profit. We provided a reconciliation of adjusted EBITDA to net income, which is the most directly comparable US GAAP measure. We use adjusted EBITDA as a supplemental measure of our performance to gain insight into our businesses profitability when compared to the prior year and our competitors. Adjusted EBITDA is also a component to our financial covenants in our credit facility. Our use of adjusted EBITDA has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate adjusted EBITDA, or similarly titled measures differently, which may reduce their usefulness as comparative measures.

    The table below presents net income reconciled to adjusted net income (Non-GAAP) (3):
                   
      Nine months ended   Three months ended
    September 30, September 30,   September 30,   September 30,
      2024       2023       2024       2023  
                   
    Net income $ 11,620     $ 7,077     $ 5,459     $ 2,372  
    Acquisition related costs, net of income taxes   901       208       457       185  
    One-time CEO stock grant   –       1,796       –       –  
    Change in fair value of acquisition contingent consideration   1,152       –       1,152       –  
    Adjusted net income $ 13,673     $ 9,081     $ 7,068     $ 2,557  
                   
    Adjusted net income per common share – diluted $ 3.00     $ 2.03     $ 1.55     $ 0.56  
                                   

    (3) We define adjusted net income as net income excluding acquisition related costs, net of income taxes, the stock compensation expense recognized for the one-time CEO stock grant, and the change in fair value of acquisition contingent consideration. We provided a reconciliation of adjusted net income to net income, which is the most directly comparable U.S. GAAP measure. We use adjusted net income as a supplemental measure of our performance to gain insight into comparison of our businesses profitability when compared to the prior year. Our use of adjusted net income has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. In addition, other companies, including companies in our industry, might calculate adjusted net income, or similarly titled measures differently, which may reduce their usefulness as comparative measures.

    The MIL Network –