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Category: Vehicles

  • MIL-OSI Security: Mesa Man Indicted for Torching Tesla Property

    Source: United States Attorneys General 1

    Today, a federal grand jury in Phoenix returned a five-count indictment against Ian William Moses, 35, of Mesa, Arizona for Maliciously Damaging Property and Vehicles in Interstate Commerce by Means of Fire.

    The charging documents filed in the case allege that Moses was at the Tesla dealership in Mesa shortly before 2 a.m. on Monday, April 28, wearing a dark hooded sweatshirt, tan ballcap, grey pants, black boots, and a black mask. He also carried a red plastic gas can and a black backpack. While in the Tesla parking lot, Moses was captured on video as he placed fire starter logs next to the dealership building. Moses then poured gasoline onto the starter logs, the building, and three Tesla vehicles. At around 1:38 a.m., Moses ignited the starter logs, causing a fire that destroyed a silver Tesla Cybertruck. Video shows Moses leaving the dealership on a dark colored bicycle shortly thereafter.

    Mesa police officers arrested Moses approximately a quarter mile from the Tesla dealership at around 3 a.m., still dressed in the same clothes as he was seen wearing at the scene. After his arrest, officers found a hand drawn map of the area in Moses’ pocket, which included a box with the letter “T” marking the dealership’s location.

    “If you engage in domestic terrorism, this Department of Justice will find you, follow the facts, and prosecute you to the fullest extent of the law,” said Attorney General Pamela Bondi. “No negotiating.”

    “ATF’s Special Agents and forensic investigators, working with the FBI and local partners, quickly recovered and analyzed critical evidence following this deliberate attack,” said ATF Acting Director Dan Driscoll. “This attack poses a serious threat to public safety and the ATF remains committed to aggressively pursuing anyone who endangers our communities through violence or destruction.”

    “There is nothing American about burning down someone else’s business because you disagree with them politically,” said U.S. Attorney Timothy Courchaine for the District of Arizona. “These ongoing attacks against Tesla are not protests, they are acts of violence that have no place in Arizona or anywhere else. If someone targets Tesla with violence, they will be found and confronted with the full force of the law.”

    “I would like to recognize the dedicated work of the Mesa Police and Mesa Fire Departments on this case,” stated ATF Special Agent in Charge Brendan Iber. “Cooperation with our law enforcement partners acts as a multiplier in our efforts to remove violent criminals from the streets and make our communities safer. The professionalism and extensive investigative knowledge of the police and fire investigators within our arson taskforce cannot be overstated.”

    “My office will be engaged in this investigation, and I’m pleased to be able to share our expertise,” said Maricopa County Attorney Rachel Mitchell. “We have a high level of success in prosecuting these types of crimes. My office stands ready to assist our federal law enforcement partners in the prosecution of this individual.”

    “I would like to recognize the outstanding efforts of the Superstition District Patrol officers who played a crucial role in this investigation. Their swift action in identifying and monitoring the suspicious van parked near the dealership was critical to the success of this operation. I am truly grateful for their diligent police work,” said Mesa Police Chief Ken Cost. “Special thanks also go to the Mesa Police specialty units and the partnering agencies involved. Your collaboration was instrumental in bringing this suspect to justice and enhancing the safety of our community.”

    Each count of conviction for Malicious Damage to Property in Interstate Commerce carries a minimum penalty of five years and up to a maximum penalty of 20 years in prison and a fine of $250,000.

    The investigation in this case is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, Mesa Police Department, and the Maricopa County Attorney’s Office. Assistant U.S. Attorney Raymond K. Woo, District of Arizona, Phoenix, is handling the prosecution.

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

    MIL Security OSI –

    May 1, 2025

  • MIL-OSI Security: Security News: Mesa Man Indicted for Torching Tesla Property

    Source: United States Department of Justice 2

    Today, a federal grand jury in Phoenix returned a five-count indictment against Ian William Moses, 35, of Mesa, Arizona for Maliciously Damaging Property and Vehicles in Interstate Commerce by Means of Fire.

    The charging documents filed in the case allege that Moses was at the Tesla dealership in Mesa shortly before 2 a.m. on Monday, April 28, wearing a dark hooded sweatshirt, tan ballcap, grey pants, black boots, and a black mask. He also carried a red plastic gas can and a black backpack. While in the Tesla parking lot, Moses was captured on video as he placed fire starter logs next to the dealership building. Moses then poured gasoline onto the starter logs, the building, and three Tesla vehicles. At around 1:38 a.m., Moses ignited the starter logs, causing a fire that destroyed a silver Tesla Cybertruck. Video shows Moses leaving the dealership on a dark colored bicycle shortly thereafter.

    Mesa police officers arrested Moses approximately a quarter mile from the Tesla dealership at around 3 a.m., still dressed in the same clothes as he was seen wearing at the scene. After his arrest, officers found a hand drawn map of the area in Moses’ pocket, which included a box with the letter “T” marking the dealership’s location.

    “If you engage in domestic terrorism, this Department of Justice will find you, follow the facts, and prosecute you to the fullest extent of the law,” said Attorney General Pamela Bondi. “No negotiating.”

    “ATF’s Special Agents and forensic investigators, working with the FBI and local partners, quickly recovered and analyzed critical evidence following this deliberate attack,” said ATF Acting Director Dan Driscoll. “This attack poses a serious threat to public safety and the ATF remains committed to aggressively pursuing anyone who endangers our communities through violence or destruction.”

    “There is nothing American about burning down someone else’s business because you disagree with them politically,” said U.S. Attorney Timothy Courchaine for the District of Arizona. “These ongoing attacks against Tesla are not protests, they are acts of violence that have no place in Arizona or anywhere else. If someone targets Tesla with violence, they will be found and confronted with the full force of the law.”

    “I would like to recognize the dedicated work of the Mesa Police and Mesa Fire Departments on this case,” stated ATF Special Agent in Charge Brendan Iber. “Cooperation with our law enforcement partners acts as a multiplier in our efforts to remove violent criminals from the streets and make our communities safer. The professionalism and extensive investigative knowledge of the police and fire investigators within our arson taskforce cannot be overstated.”

    “My office will be engaged in this investigation, and I’m pleased to be able to share our expertise,” said Maricopa County Attorney Rachel Mitchell. “We have a high level of success in prosecuting these types of crimes. My office stands ready to assist our federal law enforcement partners in the prosecution of this individual.”

    “I would like to recognize the outstanding efforts of the Superstition District Patrol officers who played a crucial role in this investigation. Their swift action in identifying and monitoring the suspicious van parked near the dealership was critical to the success of this operation. I am truly grateful for their diligent police work,” said Mesa Police Chief Ken Cost. “Special thanks also go to the Mesa Police specialty units and the partnering agencies involved. Your collaboration was instrumental in bringing this suspect to justice and enhancing the safety of our community.”

    Each count of conviction for Malicious Damage to Property in Interstate Commerce carries a minimum penalty of five years and up to a maximum penalty of 20 years in prison and a fine of $250,000.

    The investigation in this case is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, Mesa Police Department, and the Maricopa County Attorney’s Office. Assistant U.S. Attorney Raymond K. Woo, District of Arizona, Phoenix, is handling the prosecution.

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

    MIL Security OSI –

    May 1, 2025

  • MIL-OSI Security: Man Charged with Smuggling Protected Parakeets Inside the Boots he was Wearing

    Source: Office of United States Attorneys

    SAN DIEGO – Naim Lajud Libien was arrested and charged with smuggling 12 protected Orange Fronted Parakeets into the U.S. stuffed inside the boots he was wearing and inside a seat compartment in his car. At least two of the birds died, and a third appeared to have a broken neck.

    Lajud Libien, a citizen of Mexico, attempted to cross the border in his vehicle after presenting a Border Crossing Card at the Otay Mesa Port of Entry on April 29 at 3:10 p.m. He was diverted to secondary inspection. Once he stepped outside of his 2017 Jeep Grand Cherokee, the Customs and Border Protection officer noticed bulges around his ankles. For safety reasons, the officer conducted a pat down and discovered what appeared to be birds wrapped in nylon stockings concealed inside the boots.

    A CBP Agricultural Specialist responded to the security office and removed six birds from the defendant’s boots – three in the right, three in the left, all tied at the feet and wrapped in panty hose. The birds were later identified by a U.S. Fish and Wildlife Service inspector as Orange Fronted Parakeets (Eupsittula canicularis). The birds were placed in a bird cage with food and water until they could be cared for by Veterinary Services. Some of the birds appeared to have injuries on their feet where they were tied.

    “Smuggling at the border takes many forms, but the tragic impact on animals forced into such perilous conditions is deeply troubling,” said U.S. Attorney Adam Gordon. “We are committed to holding accountable those who endanger wildlife and public health through these reckless and inhumane smuggling practices.”

    Lajud Libien was taken into custody on April 29, 2025.  On April 30, 2025, CBP personnel could hear birds crying from his impounded vehicle. CBP officers and a U.S. Fish and Wildlife Inspector began a dismantling the car in search of the birds. Six more orange parakeets were found inside the seat cushion of the passenger seat of the vehicle. The birds were wrapped in panty hose and bound. Two of the birds were dead when they were discovered. One of the birds appears to have a broken neck. Three of the birds were still alive; however, in poor health.

    Orange Fronted Parakeets (Eupsittula canicularis) are native to Western Mexico and Costa Rica. The Orange Fronted Parakeet is protected and has been listed on Appendix II of the Convention on International Trade in Endangered Species (CITES) since 2005. Libien’s concealment of the parakeets would have resulted in their entering the United States without any quarantine period or process.

    To import many types of wildlife, the wildlife must be subject to quarantine before it can be introduced into the United States. Many animals have diseases that can be transferred to humans (zoonotic diseases) or other animals that can have disastrous health effects to human or animal populations. For example, birds can carry and spread Avian influenza (bird flu), psittacosis, and histoplasmos. Bird flu is highly contagious and can cause flu like symptoms, respiratory illness, pneumonia and death in humans and other birds including the United States poultry farms. There are many other diseases that can be transmitted from different animals and have disastrous effects, that is why it is necessary to quarantine animals entering the United States to limit and safeguard against this potential disease transmission.

    This case is being prosecuted by Assistant U.S. Attorney Emily Allen and and Elizabet Brown.

    DEFENDANT                                               Case Number 25-mj-02213                                     

    Naim Lajud Libien                                         Age: 54                       Mexico

    SUMMARY OF CHARGES

    Importation Contrary to Law – 18 U.S.C. § 545

    Maximum penalty: Twenty years in custody, $250,000 fine

    INVESTIGATING AGENCIES

    U.S. Fish and Wildlife Service – Office of Law Enforcement

    Homeland Security Investigations

    * The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

    MIL Security OSI –

    May 1, 2025

  • MIL-OSI USA: House Passes Rep. John James’ Resolution to Overturn Biden’s California Clean Trucks Rule, Protecting American Truckers and Consumers

    Source: United States House of Representatives – Congressman John James (Michigan 10th District)

    WASHINGTON, D.C. – Today, the U.S. House of Representatives passed a resolution led by Representative John James (MI-10) utilizing the Congressional Review Act (CRA) to overturn the Biden Administration’s approval of California’s Advanced Clean Trucks rule. This Biden era waiver would allow California to ram its comply-or-die “zero-emission truck” rule down the throat of America– essentially killing Michigan’s trucking industry. It would mandate truck makers to only sell zero-emission trucks which would increase vehicle prices for consumers, increase costs and manufacturing complexities for automakers, and convolute the regulatory environment.

    James’ legislation would nullify an overreaching and impractical mandate that threatens American consumers, small businesses, and the nation’s supply chain. The Advanced Clean Trucks rule, if left unchecked, would force costly transitions to electric trucks, driving up prices for goods and disproportionately burdening working families and truckers across the country. 

    “Michigan is not afraid of the future, but we demand to be a part of it. The Biden Administration left behind comply-or-die Green New Deal mandates that threaten to crush our trucking industry and drive-up costs for hardworking Americans,” said Congressman James. “I know — my family has a trucking company. Republicans are working hard to implement President Trump’s America First agenda, and the first step is repealing the rules and waivers that fueled Bideninflation.”

    “The passage of these resolutions is a victory for Americans who will not be forced into purchasing costly EVs because of California’s unworkable mandates,” said Chairmen Brett Guthrie and Morgan Griffith. “If not repealed, the California waivers would lead to higher prices for both new and used vehicles, increase our reliance on China, and strain our electric grid. The passage of these three resolutions will help to protect Americans from some of the worst policies of the Biden-Harris Administration. Thank you to Vice Chairman Joyce, Congressman Obernolte, and Congressman James for your work to ensure that families and businesses can continue choosing the vehicles they need.” 

    “This is not the United States of California. California should never be given the keys to set policies that impact our interstate supply chains. The trucking industry is grateful to our Congressional leaders who are removing Sacramento from the driver’s seat and restoring common sense to our nation’s environmental policies. ” Said Chris Spear, American Trucking Associations President & CEO.

    “The Truck Renting and Leasing Association (TRALA) is urging Congress to adopt the House resolutions this week authored by Congressman John James and his colleagues that would reverse the Biden EPA waivers that allows California to impose electric vehicle (EV) sales mandates,” said Jake Jacoby, Truck Renting and Leasing Association (TRALA) President & CEO. “TRALA wishes to thank Congressman James in his leadership on this critical issue and it asks the…Senate to follow suit and pass the CRAs immediately.”

    “America’s small business truck dealers want to sell trucks that their customers want to buy, and those trucks must be affordable and fit their customers’ needs,” said the National Automobile Dealers Association (NADA). “A one-size-fits-all ZEV mandate that restricts then bans the sale of diesel trucks would reduce customer choice without an affordable replacement and could have unintended consequences for the supply chain and the economy.”

    This bill is a part of a broader package introduced by the House Energy and Commerce Committee, which included two additional CRA’s:

    • H.J. Res. 88, introduced by Congressman John Joyce (PA-13), would reverse the EPA’s decision to approve a waiver granted to California allowing the State to ban the sale of gas-powered vehicles by 2035.
    • H.R. Res. 89, introduced by Congressman Jay Obernolte (CA-23), would put an end to the EPA’s decision to allow California to implement its most recent nitrogen oxide (NOx) engine emission standards, which create burdensome and unworkable standards for heavy-duty on-road engines.

    The California Clean Truck CRA builds on James’ efforts to push back on the Biden Administration’s burdensome regulations. In 2024, he successfully introduced a CRA to block Biden Administration rules on electric vehicle mandates for light- and medium-duty vehicles, as well as the National Labor Relations Board’s joint employer rule. His latest effort has garnered support from industry leaders, including the American Trucking Associations and the Owner-Operator Independent Drivers Association, who have praised the move to safeguard truckers and the broader economy. 

    Rep. James’ CRA to nullify the Clean Trucks rule passed the House with 231 bipartisan votes. This is James’ second legislative item to pass the House this week. 

    Click here to view the CRA text. 

    ###

    MIL OSI USA News –

    May 1, 2025

  • MIL-OSI China: China passes new law in major push to bolster private sector

    Source: People’s Republic of China – State Council News

    BEIJING, April 30 — China’s national lawmakers on Wednesday voted to adopt the country’s first fundamental law dedicated to promoting the private sector, underscoring support for a key part of the world’s second-largest economy.

    After over a year of legislative process, the private sector promotion law, passed at a session of the Standing Committee of the National People’s Congress, will take effect on May 20, 2025.

    The law stipulates that the promotion of the sustainable, healthy and high-quality development of the private economy is a significant and long-term policy of China.

    From ensuring fair market access and financing support to enhancing services and protection of original innovation, the 78-article law cements efforts to encourage, support and guide the growth of the private sector.

    The law will provide a clearer and more solid legal guarantee for the private sector, said Li Shuguang, a professor at China University of Political Science and Law.

    This marks China’s latest step in strengthening the sector — recognized by the law as a key component of the socialist market economy — amid efforts to tackle economic headwinds both at home and abroad.

    Officials and analysts view the formation and adoption of the law as “highly timely and absolutely essential,” given the private sector’s significant role in the economy.

    Boosting the private sector should feature prominently on the country’s economic policy agenda: Whether it is to stimulate domestic demand, expand the domestic market, or boost production and improve the quality of supply, private businesses will be a key participant and contributor, according to Anbound, an independent think tank in China.

    Private enterprises have long been a key driving force behind China’s economic growth, contributing more than 60 percent of GDP and 80 percent of urban employment. By the end of March 2025, the country’s more-than-57-million registered private enterprises made up over 92 percent of all businesses in China.

    From electric vehicle maker BYD to artificial intelligence innovator DeepSeek and robotics pioneer Unitree Robotics, private enterprises have also become key players in China’s push for innovation-driven growth.

    Yet, industry insiders note that challenges remain — domestically, private businesses may face financing constraints and invisible market access barriers in some sectors; while abroad, they must navigate increasing impact from external shocks.

    The law will transform policy support into legal guarantees, giving entrepreneurs greater reassurance and motivation to keep moving forward, said Qi Xiangdong, chairman of cybersecurity firm Qi-Anxin and vice chairman of the All-China Federation of Industry and Commerce.

    “The rule of law is the best business environment,” Qi said.

    In February, the country held a high-level symposium on private enterprises, which was widely viewed as a strong signal to boost the confidence and growth of the private sector.

    A month later, at the “two sessions”, the country reiterated support for private enterprises, vowing to take effective moves to stimulate the vitality of all market entities.

    To support the private sector, China has established a special bureau under the National Development and Reform Commission (NDRC) dedicated to serving the sector’s development. Multiple provincial-level regions, including Guangdong, Shanxi, Qinghai and Zhejiang, have all set up such bureaus.

    Efforts to level the playing field are also underway. Last week, the NDRC unveiled the new version of the market access negative list, which specifies fields that are off-limits to both domestic and overseas business entities, reducing the number of items on the list from 117 to 106.

    Nan Yi, chairman of Wontai Group, said the law will support private firms’ entry into sectors such as infrastructure and energy, and provide a strong guarantee for their continuous investment in research and development.

    “The enactment of this law will inject strong impetus into the sound development of the private economy,” Nan said.

    MIL OSI China News –

    May 1, 2025

  • MIL-OSI Security: DHS Reveals Second Domestic Abuse Filing Filed by Kilmar Abrego Garcia’s Ex-Wife

    Source: US Department of Homeland Security

    So-called “Maryland Dad’s” Track Record of Violence 

    WASHINGTON – On Wednesday April 30, the Department of Homeland Security (DHS) revealed that the ex-wife of Kilmar Abrego Garcia — the so-called “Maryland Dad”—filed a petition for protection against him in 2020.  

    “The facts are clear: Kilmar Abrego Garcia is a violent illegal alien who abuses women and children. He had no business being in our country and we are proud to have deported this violent thug,” Assistant Secretary Tricia McLaughlin said in a statement. “We have now found two petitions for protection against him, in addition to the fact that he entered the country illegally and is a confirmed member of MS-13. Our country is safer with him gone.” 

    According to the petition filed by Jennifer Vasquez on August 3, 2020, in the District Court of Maryland for Prince George’s County, Garcia verbally abused her, kicked her, slapped her, shoved her, mentally abused her kids, locking them in their bedroom while they cried, and detained Vasquez against her will. In November 2019, Vasquez alleges that Garcia grabbed her by the hair while in a vehicle. In December 2019, she states Garcia grabbed her from her hair in the car and dragged her out of the vehicle–abandoning her in the street. In January 2020, Vasquez claims Garcia broke her son’s tablet and broke doors in their house. In March 2020, she alleges that Garcia pushed her against the wall while breaking phones and TVs. 

    This newly released petition was filed in 2020, prior to the petition Vasquez filed against Garcia 2021. In that filing, Vasquez claimed he bruised, punched, and scratched her while ripping off her shirt. 

    DHS has previously revealed that Garcia was involved in a suspected human trafficking incident, is an MS-13 gang member, and had been accused of domestic abuse on at least one other occasion. Still, the media continues to call him a victim while ignoring the real victims: the women he battered, the children he terrorized, and the communities he endangered. 

    The Aug. 2020 protection order petition can be found here.

    MIL Security OSI –

    May 1, 2025

  • MIL-OSI Security: Reuters “Reporting” Fails to Mention that the Biden Administration Released Two Tren de Aragua Gang Members into American Communities

    Source: US Department of Homeland Security

    WASHINGTON – The mainstream media’s latest attempt at a criminal gang sob story includes a self-admitted member of Tren de Aragua. The real story here is that the previous administration was releasing gang members into American communities. 

    Jeferson Daniel Escalona Hernandez, a 19-year-old self-admitted Tren de Aragua gang member from Venezuela, illegally entered the United States on March 27, 2024. The previous administration released this gang member into our country. He was arrested for felony evading arrest with a vehicle and put in a Denton County jail. An immigration judge ordered Escalona removed from the U.S. on April 11, 2025, and he remains in ICE custody at the Bluebonnet Detention Center in Anson, Texas, pending his removal from the U.S.   

    Diover Millan Leon, a 24-year-old Venezuelan and documented member of Tren de Aragua, illegally entered the U.S. on an unknown date and at an unknown location. The U.S. Border Patrol arrested Millan on May 3, 2023, near Brownsville, Texas, and he was processed as a notice to appear and released on his own recognizance. ICE officers arrested Millan in Lawrenceville, Georgia on March 12, 2025. ICE transferred Millan from the Stewart Detention Center in Lumpkin, Georgia, to the Bluebonnet Detention Center in Anson, Texas, April 15, where he remains pending disposition of his immigration proceedings. 

    Statement Attributable to Assistant Secretary Tricia McLaughlin:   

    “This is more irresponsible, lazy reporting by Reuters. Why do they continue to peddle the sob stories of these gang members but ignore their American victims?  

    Tren De Aragua is one of the most violent and ruthless terrorist gangs on planet earth. They rape, maim, and murder for sport. The previous administration released these gang members into our communities. President Trump and Secretary Noem have ended catch and release and will not allow criminal gangs to terrorize American citizens.” 

    MIL Security OSI –

    May 1, 2025

  • MIL-OSI United Kingdom: Scotland’s most remote towns and villages get huge broadband upgrade as UK government vows to end digital exclusion plight

    Source: United Kingdom – Executive Government & Departments 2

    Press release

    Scotland’s most remote towns and villages get huge broadband upgrade as UK government vows to end digital exclusion plight

    Around 65,000 Scottish homes and businesses, including many in some of the most isolated areas of the United Kingdom, will receive access to fast, reliable broadband.

    Broadband upgrade for Scotland’s remote locations.

    • Around 65,000 homes and businesses in Scotland to gain access to lightning-fast broadband for the first time, helping to break down barriers to opportunity and kickstart economic growth under the Government’s Plan for Change

    • UK Government signs largest ever contract worth £157 million to bring gigabit-capable internet to the Highlands, Outer Hebrides, and hard-to-reach areas across most of Scotland

    • Rollout to help break down barriers to opportunity for those struggling to get online and boost local economic growth under the Government’s Plan for Change

    Around 65,000 Scottish homes and businesses, including many in some of the most isolated areas of the United Kingdom, will receive access to fast, reliable broadband as government helps break down barriers to opportunity and boost economic growth under the Plan for Change. 

    Digitally isolated communities across Scotland, where using the web can be almost impossible due to outdated infrastructure, will be able to work, bank, shop and study online without buffering, thanks to gigabit-capable broadband funded by the UK government.

    Several remote islands off Scotland’s west coast will benefit, including thousands of premises across the Outer Hebrides – a chain of over 100 islands where currently just seven per cent of premises can access gigabit broadband, among the lowest in the UK – as well as the isles of Skye, Islay and Tiree.   

    Rural parts of the Highlands will also be covered by this boost, such as Applecross, an extremely remote peninsula, and Durness, the most north-westerly village on the UK mainland.  

    The £157 million contract with Openreach is the largest ever under Project Gigabit. It will power up efforts to tackle digital exclusion across the entire UK – delivering the Prime Minister’s Plan for Change, from boosting local economic growth through giving businesses the vital tools they need, to improving access to public services like virtual NHS appointments.

    Telecoms Minister Chris Bryant said:

    Digital exclusion for people living and working in hard-to-reach areas across Scotland can be a huge obstacle to living a better and healthier life. Elderly and vulnerable people could miss out on the best treatment options in North Ayrshire, while budding entrepreneurs could be held back from their dream of running a successful business in Moray.  

    With our recent Digital Inclusion Action Plan, we have pledged to take everyone along with us in the digital revolution so that we don’t entrench existing inequalities as technological progress races ahead.  

    This huge UK Government investment is a commitment to using technology to make lives in Scotland better as well as turbocharging local economies to deliver on our growth mission under the government’s Plan for Change.

    Openreach Deputy CEO, Katie Milligan, said:

    Full fibre is the UK’s most reliable broadband technology, and more than half of Scotland’s homes can already order it thanks to Openreach. But we believe everyone deserves access to fast, reliable connections, so we’re proud to be helping extend access to communities that would otherwise be left behind. Our new network’s a catalyst for growth and jobs, with experts predicting it’ll bring a £4.4 billion boost to the Scottish economy and a raft of social and environmental benefits. We’re confident we’ll reach as many as 30 million UK premises by 2030, assuming the right economic conditions exist.

    Yvonne Boles, Senior Site Manager of Tayside Reserves at RSPB Scotland, said:

    We fell between a few gaps in local network improvements, but now we have gigabit capable fibre to the RSPB Loch Leven visitor centre, which has been a game changer for us.

    The old internet was constantly going down or being very slow, which impacted our ability to work in the office as well as taking card payments in both the shop and the café.

    We wasted so much time on the phone to IT trying to fix things for us. It’s been such a relief and a benefit to have reliable, powerful internet.

    The deal was struck under an £800 million agreement with Openreach announced last August as part of wider plans to end the plight of digital exclusion across rural Britain, with work already underway to connect over 227,000 premises in hard-to-reach parts of Wales and England as part of the agreement. The agreement is funded by the UK government who will work alongside the Scottish Government and Openreach to deliver the coverage.

    The contract will support significant work already being carried out through the Scottish Government’s R100 programme. It also builds on another Project Gigabit contract in Scotland, awarded in February through a partnership with the Scottish Government, for up to 11,000 premises in the Borders and Midlothian. More contracts are also expected to be signed later this year for Orkney, Shetland and across the east of Scotland.   

    Scottish Government Business Minister Richard Lochhead said:

    This new contract brings even more investment to Scotland and we are committed to working with the UK Government and Openreach to drive efficiencies across both the R100 and Project Gigabit programmes and maximise gigabit coverage.

    Through the Digital Scotland Superfast Broadband (DSSB) programme and our ongoing efforts with R100, over one million faster broadband connections have been delivered across Scotland through public investment – developing infrastructure, knowledge and experience that will be essential in ensuring the success of Project Gigabit in Scotland.

    Scottish Secretary Ian Murray said:

    This £157 million UK Government investment is a game changer for tens of thousands of homes and businesses in the most remote areas of Scotland. Rolling out lightning-fast broadband will equip and inspire local businesses to thrive, enable families to access vital services, and build resilient communities. Our Plan for Change recognises that rural communities are the backbone of our nation and economic growth must reach every corner of Scotland, ensuring that opportunity isn’t determined by postcode but by potential.

    Project Gigabit targets places too difficult or expensive for providers to reach in their commercial build and would otherwise be left behind with older digital infrastructure. The world-class networks being built across the UK is laying the foundations needed to kickstart economic growth, creating and supporting thousands of high-skilled jobs, empowering industries of all kinds to innovate and increase productivity by taking up digital technology.  

    It’s also crucial to the government’s mission to break down barriers to opportunity, ensuring people can access vital services now and in the future, no matter where they are, from government services like Universal Credit and HMRC to online courses for those looking to improve their job prospects through new skills to helping pensioners combat loneliness by catching up with loved ones over higher quality video calls.

    DSIT media enquiries

    Email press@dsit.gov.uk

    Monday to Friday, 8:30am to 6pm 020 7215 3000

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    Updates to this page

    Published 1 May 2025

    MIL OSI United Kingdom –

    May 1, 2025

  • MIL-OSI Security: Man Sentenced for Trafficking Over 94,000 Fentanyl Pills Following Conviction in Fatal Albuquerque Shooting

    Source: Office of United States Attorneys

    ALBUQUERQUE – Nathen Richard Garley, recently convicted of a deadly gang-related shooting that claimed the life of an 11-year-old boy, has now been sentenced to 20 years in prison for trafficking over 94,000 fentanyl pills in a case that underscores the deadly impact of drug and violent crime in New Mexico.

    There is no parole in the federal system.

    According to court documents, on September 13, 2023, Garley, 22, was stopped by law enforcement as a passenger in a vehicle near mile marker 85 in Cibola County, New Mexico, during a return trip from Phoenix, Arizona. A search of the vehicle, prompted by the odor of marijuana and Garley’s admission to recent use, led officers to discover a glass jar of marijuana on Garley and a duffel bag in the trunk containing approximately 10.97 kilograms of fentanyl pills-estimated to be over 94,000 pills in total.

    Gray duffel bag and fentanyl

    Fentanyl on scale

    Garley admitted to possessing the duffel bag and acknowledged his addiction to prescription pills. Further investigation revealed evidence on Garley’s cell phone indicating his involvement in drug distribution. Testing confirmed the pills contained fentanyl, a synthetic opioid responsible for a significant rise in overdose deaths nationwide.

    This federal drug arrest came just one week after Garley was involved in a tragic shooting in Albuquerque. On September 6, 2023, Garley, along with accomplices, opened fire on a vehicle they mistakenly believed was driven by a rival gang member. The attack killed 11-year-old Froylan Villegas and left his cousin paralyzed as the family was leaving an Isotopes baseball game. Authorities later linked Garley to the shooting, and he was convicted of first-degree murder and multiple other felonies related to the incident.

    Following the shooting, Garley fled to Arizona, abandoning the vehicle used in the crime and evading authorities by staying at various Airbnbs and hotels. During this period, he searched for news articles about the murder, demonstrating awareness of the tragedy, yet continued his criminal activities by arranging to transport the massive fentanyl load back to New Mexico.

    Garley selfie taken in Arizona

    Garley selfie taken in Arizona

    Garley is scheduled for sentencing in New Mexico District Court on May 21, 2025, for the murder and related charges.

    Upon his release from prison, Garley will be subject to five years of supervised release.

    U.S. Attorney Ryan Ellison and Jason T. Stevens, Acting Special Agent in Charge of Homeland Security Investigations (HSI) El Paso, made the announcement today.

    Homeland Security Investigations investigated this case with assistance from the Albuquerque Police Department and New Mexico State Police. This case is being prosecuted by Assistant United States Attorney Timothy Trembley. 

    MIL Security OSI –

    May 1, 2025

  • MIL-OSI Security: Woman Sentenced to 41 Months for Alien Smuggling Event that Left a 71-Year-Old Cyclist Critically Injured

    Source: Office of United States Attorneys

    SAN DIEGO – Elizabeth Ugarte Rios of Vista was sentenced in federal court today to 41 months in prison for striking and critically injuring a 71-year-old cyclist while transporting undocumented immigrants in her vehicle.

    According to court documents, on August 4, 2024, Rios drove to Otay Lakes County Park with her minor daughter as a passenger and picked up a group of undocumented aliens who had earlier scaled a fence at the U.S.-Mexico border.

    The crash occurred minutes later on Wueste Road, a two-lane highway in Chula Vista. According to the government’s sentencing memo, the defendant was travelling at 67 mph – almost twice the posted speed limit – when she swerved across the double-yellow line to pass another vehicle. A uniformed Border Patrol agent was following in an unmarked vehicle.

    Rios hit the brakes four seconds before the collision, striking the cyclist at a speed of approximately 30 miles per hour. One witness said the cyclist flew approximately 10 feet in the air and landed on the side of the road.

    The cyclist, Robert Hilborn, attended today’s sentencing hearing with his wife, Sharon, and two adult sons. Sharon Hilborn read statements on behalf of the family. She said her husband was hospitalized for 68 days and suffered several strokes. He was on a ventilator for many days and suffered lacerations to his head, neck, and stomach plus orthopedic injuries and deep lacerations to his legs.

    Sharon Hilborn told the court her husband used to ride his bike 80-100 miles per week, and being fit and active was a major source of his joy. Their lives are now dominated by going to medical appointments and therapy sessions. Members in the court gallery were audibly crying as Sharon Hilborn spoke about how her family has been impacted by this event.

    This case is being prosecuted by Assistant U.S. Attorney Eric Chiang.

    DEFENDANT                                               Case Number 24cr01772-RBM                               

    Elizabeth Ugarte Rios                                     Age: 38                                   Vista, CA

    SUMMARY OF CHARGES

    Transportation of Certain Aliens During and in Relation to Which the Person Causes Serious Bodily Injury to, or Places in Jeopardy the Life of, Any Person – Title 8, U.S.C., Section 1324(a)(1)(A)(ii) and (a)(1)(B)(iii)

    Maximum penalty: Twenty years in prison and $250,000 fine

    INVESTIGATING AGENCY

    United States Border Patrol

    MIL Security OSI –

    May 1, 2025

  • MIL-OSI Security: Jury Finds Former Border Patrol Agent Guilty of Corruption

    Source: Office of United States Attorneys

    TUCSON, Ariz. – On Friday, April 25, 2025, a jury found former Border Patrol Agent Jorge J. Jimenez, 54, of Rio Rico, guilty of Conspiracy to Commit Honest Services Wire Fraud. The guilty verdict followed a 10-day trial before U.S. District Judge Rosemary Marquez. A conviction for this crime carries a maximum penalty of 20 years in prison, a fine of $250,000, and not more than three years supervised release. Sentencing is scheduled for July 9, 2025. 

    “Securing the southern border requires an effective law enforcement force, held to the highest standard of integrity,” said U.S. Attorney Timothy Courchaine. “Mr. Jimenez forgot his oath and put his community in danger for his own gain.” 

    According to court documents and evidence presented at trial, Jimenez was employed as a United States Border Patrol Agent since 2010. Between July and October 2024, Jimenez was stationed at the Interstate 19 (I-19) Border Patrol Checkpoint where he worked the primary lanes performing inspections. 

    At trial, the government showed that between June 2024 and October 2024, Jimenez conspired with at least two individuals in Mexico to allow “load” vehicles to pass through his assigned checkpoint lane without inspection. The individuals in Mexico handled arrangements and the receipt of payment while Jimenez provided information about activities at the checkpoint and let the “load” vehicles pass through his lane. In exchange for his help, Jimenez expected to receive half of the $40,000 that the conspirators were paid for getting five “load” vehicles through the checkpoint.   

    The Department of Homeland Security Office of Inspector General, Customs and Border Protection’s Office of Professional Responsibility, and the FBI conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution. 

    CASE NUMBER: 24-CR-08599-TUC-RM 
    RELEASE NUMBER: 2025-067_Jimenez 

    Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news. 

    MIL Security OSI –

    May 1, 2025

  • MIL-OSI: Westport Announces Lock-Up Agreements in Support of the Light-Duty Divestment Transaction

    Source: GlobeNewswire (MIL-OSI)

    VANCOUVER, British Columbia, April 30, 2025 (GLOBE NEWSWIRE) — Westport Fuel Systems Inc. (“Westport” or the “Company”) (TSX:WPRT / Nasdaq:WPRT), has entered into lock-up agreements with certain of its shareholders, executives and board members representing an aggregate of approximately 2.0 million shares, or 11.4% of the currently issued and outstanding shares, to vote in favour of the special resolution approving the sale of Westport Fuel Systems Italia S.r.l. (the “Lock-Up Agreements”).

    “These Lock-Up Agreements are a significant vote of confidence in Westport’s strategic direction and growth potential.  I am thankful to our key shareholders and our Board, for their continued support as we execute our plans to reduce the complexity of Westport’s business and move forward focusing on providing affordable solutions for hard to decarbonize segments of the heavy-duty truck and industrial application, supported by a strengthened balance sheet,” said Dan Sceli, Chief Executive Officer, Westport Fuel Systems.”

    Recap of the Transaction

    On March 31, 2025 Westport announced it had entered into a binding agreement (the “Agreement”) to sell its interest in Westport Fuel Systems Italia S.r.l., which includes the Light-Duty segment, including the light-duty OEM, delayed OEM, and independent aftermarket businesses, to a wholly-owned investment vehicle of Heliaca Investments Coöperatief U.A. (“Heliaca Investments”), a Netherlands based investment firm supported by Ramphastos Investments Management B.V. a prominent Dutch venture capital and private equity firm (the “Transaction”).

    The Transaction provides for a base purchase price of $73.1 million (€67.7 million), subject to certain adjustments, and potential earnouts of up to an estimated $6.5 million (€6.0 million) if certain conditions are achieved, in accordance with the terms of the Agreement.

    Under the terms of the Agreement, Heliaca Investments through its subsidiary will acquire Westport’s Light-Duty segment, including its related assets and customer contracts. The Transaction is subject to shareholder approval and other customary closing conditions and is expected to close in late Q2 of 2025.

    The proceeds from the proposed Transaction are expected to enable Westport to significantly improve its financial stability, while also supporting key growth initiatives focused on providing solutions for hard-to-decarbonize mobility and industrial applications. Following closing, Westport intends to align its cost structure to be more reflective of a smaller, more efficient organization, while also seeking further opportunities for efficiency gains.

    About Westport Fuel Systems

    At Westport Fuel Systems, we are driving innovation to power a cleaner tomorrow. We are a leading supplier of advanced fuel delivery components and systems for clean, low-carbon fuels such as natural gas, renewable natural gas, propane, and hydrogen to the global transportation industry. Our technology delivers the performance and fuel efficiency required by transportation applications and the environmental benefits that address climate change and urban air quality challenges. Headquartered in Vancouver, Canada, with operations in Europe, Asia, North America, and South America, we serve our customers in approximately 70 countries with leading global transportation brands. At Westport Fuel Systems, we think ahead. For more information, visit www.wfsinc.com.

    Cautionary Note Regarding Forward-Looking Statements

    This press release contains forward-looking statements, including statements regarding the closing of, and timing for closing of, the Transaction, shareholder approval of the Transaction, the anticipated benefits of the Transaction, including potential earn-out payments, the ability to strengthen our balance sheet and align our cost structure, the ability to capitalize on growth initiatives, the ability to transition to a smaller, more efficient organization and our expectations regarding the future success of our business. Other forward-looking statements included in the release include those relating to Westport’s future strategic plans, business opportunities and use of the Transaction proceeds. These statements are neither promises nor guarantees but involve known and unknown risks and uncertainties and are based on both the views of management and assumptions that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activities, performance, or achievements expressed in or implied by these forward-looking statements. These risks, uncertainties, and assumptions include those related to completion and satisfaction of all conditions to closing of the Transaction set out in the Agreement, governmental policies, regulation and approval, the achievement of the performance criteria required for the earn out described above, purchase price adjustments contained in the Agreement, the demand our products, as well as other risk factors and assumptions that may affect our actual results, performance, or achievements, as discussed in our most recent Annual Information Form and other filings with securities regulators. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they were made. We disclaim any obligation to publicly update or revise such statements to reflect any change in our expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in these forward-looking statements except as required by National Instrument 51-102. The contents of any website referenced in this press release are not incorporated by reference herein.

    Investor Inquiries:
    Investor Relations
    T: +1 604-718-2046
    E: invest@wfsinc.com

    The MIL Network –

    May 1, 2025

  • MIL-OSI USA: In Senate Floor Speech, Senator Murray Calls Out Trump’s Staggeringly Lawless and Inhumane Immigration Policy

    US Senate News:

    Source: United States Senator for Washington State Patty Murray

    60 Minutes: U.S. sent 238 migrants to Salvadoran mega-prison; documents indicate most have no apparent criminal records

    ***WATCH: Senator Murray’s remarks on the Senate Floor***

    Washington, D.C. – Today U.S. Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee, took to the Senate floor to deliver a speech on President Trump’s lawless immigration policy. Senator Murray highlighted the absence of any semblance of due process for—in many cases—legal residents with no criminal record being detained and deported—and even sent to a prison in El Salvador with no outside contact and no end date. She also discussed how Trump’s crackdown has caused confusion for international students, fear among farmworkers, and led to U.S. citizens being detained, having their homes raided, and even to some U.S. citizens who are children being deported with their parents.

    Emphasizing the complete lack of transparency from the Trump administration on why the people sent to El Salvador are being detained and what is being done to bring them home, Senator Murray demanded more information from the Trump administration about its recent actions—from the full details of the secret agreement with El Salvador, to the names of all the individuals sent to El Salvador, their current status, what sort of evidence and process has been afforded them, and what sort of contact they can make with lawyers and family. She also pressed for a good faith effort to follow Supreme Court orders, to return everyone wrongly sent to El Salvador, and to establish lines of communication for individuals to speak with their lawyers and families.

    “I heard from one of my Republican colleagues say last week ‘I don’t see any pattern here.’ Well, I ask him now—I ask everyone now—to pay attention to the full picture. Because of course you won’t see the pattern if you just look at one case and you ignore the many, many others,” said Senator Murray. “There is the case of Andry Hernandez Romero, he’s a barber who came here legally, he has no criminal record. There is the case of Arturo Suárez Trejo, he’s a musician, he came here legally, he has no criminal record. There is the case of Merwil Gutiérrez, who—you guessed it—came here legally, no criminal record. In fact, he was apparently grabbed by mistake. One officer reportedly said ‘No, he’s not the one,’ and another said, ‘Take him anyway.’ Trump sent them all to a maximum-security prison in El Salvador—with no trial. Disappeared. They have no contact with their lawyer. No contact with family. We do not know if they are alive, and they don’t know if anyone is even advocating for them. How hopeless that must feel. How dark. So, is that enough of a pattern for my Republican colleagues? Do you still need more?”

    Senator Murray has championed comprehensive and humane immigration reform throughout her Senate career, repeatedly pushing for legislative solutions that would offer a fair pathway to citizenship for the more than 11 million undocumented immigrants living in America, including Dreamers, farmworkers, and those with Temporary Protected Status. During Trump’s first administration, Senator Murray helped lead the charge in pushing back against Trump’s appalling treatment of migrant children and families at the southern border— cosponsoring the Fair Day in Court for Kids Act, which would require unaccompanied children and vulnerable individuals to be provided with legal assistance during immigration court proceedings, the Stop Cruelty to Migrant Children Act to end family separations at the border, and legislation to prevent the separation of families at sensitive locations such as schools, religious institutions, and hospitals, among many other efforts.

    Senator Murray’s remarks, as delivered, are below, and video is HERE:

    “Thank you, M. President.

    “Over the past month we have seen a wave of righteous outrage across the country in response to President Trump’s completely lawless move to disappear hundreds of people to a notorious mega-prison in El Salvador, without even the barest semblance of due process.

    “And as I join my colleagues in calling for the Trump Administration to abide by the Supreme Court ruling, and facilitate the release of Kilmar Abrego Garcia—a man they said, in court, was sent to El Salvador by mistake—I have to emphasize, his case is one of many where Trump has completely shredded our norms and laws. In addition to Garcia, Trump sent off some two hundred people—including innocent people who were in our country legally—to a foreign prison without any due process whatsoever.

    “And they did it all on the basis of some arrangement negotiated in secret and paid for with millions of taxpayer dollars. What we do know, is that many of these people were sent there without any criminal conviction—the Administration actually admitted that! In their own court filing the Trump Administration acknowledged that many of these people have no criminal records in the U.S. And yet, all of these people have now been imprisoned in a foreign country with no end date in sight—unconstitutional doesn’t even begin to cover that.

    “There are so many questions, basic questions, about this that we all should be demanding answers to. At the barest, smallest, slimmest minimum, and I mean as a starting point, the Administration must release more details about this secret agreement where it is paying El Salvador with our taxpayer dollars to imprison people without a trial. Details like: who all is being imprisoned, how long is El Salvador holding these people with  Trump’s orders, how many people is El Salvador going to imprison under this agreement, what outside contact is possible for those people, and how do we learn their status and condition—are they alive, are they healthy? What are those details?

    “Most of these details we do have are from reporting—and news reports say the deal was only for El Salvador to take convicted criminals—so why did Trump send people with no criminal record? And importantly: where in the world is this money coming from? Does anyone here remember voting to pass a single dollar in appropriations to fund a torture prison in El Salvador? Because I sure don’t! And last I checked Congress has the power of the purse.

    “You know what else we don’t know? We still don’t know the names of everyone they did this to. Think about that. We don’t even have their names! That information should be released immediately. Today. Because there are families who still have no confirmation where their loved ones are, and the only list we have right now was not even released by the Administration! It was reported by the press.

    “Some families only learned their son was gone, their husband was gone, their father was gone, through photos of them being marched into a torture prison. This is the first, last, and only update we have on just about all of those people. We don’t know if they are alive. We don’t know if they are being treated decently. We don’t even know if they have been moved. Even their lawyers can’t reach them.

    “Here’s what we do know: there are many names on the El Salvador list of people who were here legally, who had no criminal record. That seems to be getting lost in the debate for some of my Republican colleagues. This is not about any one case, or any one person, it is about a lawless system for the President to deny due process. And when you cut out due process, you put innocent people in harm’s way.

    “I heard from one of my Republican colleagues say last week ‘I don’t see any pattern here.’ Well, I ask him now—I ask everyone now—to pay attention to the full picture. Because of course you won’t see the pattern if you just look at one case and you ignore the many, many others.

    “There is the case of Andry Hernandez Romero, he’s a barber who came here legally, he has no criminal record.

    “There is the case of Arturo Suárez Trejo, he’s a musician, he came here legally, he has no criminal record.

    “There is the case of Merwil Gutiérrez, who—you guessed it—came here legally, no criminal record. In fact, he was apparently grabbed by mistake. One officer reportedly said ‘No, he’s not the one,’ and another said, ‘Take him anyway.’

    “Trump sent them all to a maximum-security prison in El Salvador—with no trial. Disappeared. They have no contact with their lawyer. No contact with family. We do not know if they are alive, and they don’t know if anyone is even advocating for them. How hopeless that must feel. How dark. 

    “So, is that enough of a pattern for my Republican colleagues? Do you still need more?

    “Because there’s also Jerce Reyes Barrios, he’s a soccer player, he came here legally. Again—no criminal record.

    “There’s Gustavo Aguilera, a food delivery driver. Legally here. No criminal record.

    “Or Anyelo Sarabia. Here legally. No criminal record.

    “I mean, how many more before my colleagues can actually admit this is a pattern? How many people have to be disappeared with no due process before it becomes a problem? Because for me—one is too many. And the pattern isn’t even over yet. Trump was reportedly ready to disappear even more people to El Salvador—before the Supreme Court put its foot down. In this latest round, the Trump Administration was preparing to disappear a man who came here legally, had no record, except traffic violations!

    “Another was a young man accused of being a gang member because of a photo with a toy water gun. That is the level of so-called ‘evidence’ that gets you locked away in a foreign torture prison under President Trump. And I will keep saying it Mr. President, most of the people they disappeared have no criminal records, and many were even here legally. They came here for a better life, and Trump disappeared them based on nothing more than tattoos that say ‘mom’ and ‘dad,’ or that they celebrate soccer teams, or a daughter’s birth, or autism awareness.

    “And Mr. President, I realize, I keep hammering home that—many of these people are not criminals—and many of these people came here legally. But I do want to remind my colleagues, this question is not whether someone who was vanished to El Salvador without a trace is good or bad, the question is whether everyone in this country—including American citizens—have the rights they were promised in our Constitution.

    “At the end of the day, this is not about who these people are, it is about who we are—whether we are a country of due process, or not. A country of laws, or not.

    “Trump has said where he stands. He literally said ‘We don’t have time’ to give them due process. If the Trump Administration think’s someone is a criminal, if they are really bad and dangerous, prove it in court. Prove it! Just simply prove it! It shouldn’t be hard. That is how this works. Everyone in this country understands that.

    “You can’t just say ‘criminals don’t get due process’—when due process is how you determine who is a criminal in the first place! I mean, in the case of one person they sent to El Salvador, not only did the government’s file against him show no criminal record, it also got his name wrong several times, and used two different identification numbers! Those are pretty major errors to make when you are locking someone away. The kind of errors that due process helps to avoid.

    “That’s not some theory—we are seeing that happen in another case right now. There is a couple that Trump is saying are part of a gang, but instead of just disappearing them with no trial to speak of, the Administration was forced to prove it, to prove it in court. And you know what happened? The government failed. The judge found the government’s claims, ‘completely and wholly unsubstantiated’ and ordered the couple to be released.

    “That just goes to show, if we ignore our laws, if we tear down the guardrails that saved that couple, it’s not criminals who pay the price, it is innocent people. Because due process protects them too! Due process allows us to confirm whether people are lawfully present. Due process lets us confirm whether Trump is about to send them to a foreign prison. Due process lets us confirm whether people are guilty—instead of going off how they look, or what tattoo they have.

    “And at the end of the day, due process means they get an actual determination of guilt or innocence, instead of getting disappeared with a question mark. But no one here was told they are facing ‘X’ years in a foreign prison.

    “There is no end date in El Salvador! Because there was no sentence! Because there was no trial! There was just Trump, ignoring our laws, ignoring our courts, and sending people to gulags to rot, to die, to never be heard from again. How can anyone ignore that outrageous breach of our laws—of our values!

    “And M. President—as a co-equal branch of this government, I want to impress upon my colleagues: It is not just due process that is getting trampled here, it is basic checks and balances. Trump is imprisoning these people under the Alien Enemies Act. He is using a war power. We are not at war! Everyone here should know that. After all, Congress, we, have to vote to declare war. I remember every war vote we have taken in my time here in Congress—and I can tell you—there has never been a vote on this so-called war Trump declared all on his own.

    “As if that weren’t enough, earlier this month the National Intelligence Council, the National Intelligence Council, determined that Venezuela is not directing an ‘invasion’ by gangs. That directly undercuts what Trump claimed when he announced his illegal end run around Congress. Here’s a simple question for everyone, there is no invasion, there is no war, so why is Trump invoking a wartime authority?

    “But add on top of that—that Trump has reached some secret, multi-million-dollar deal to pay El Salvador to imprison these people without a trial. I’m Vice Chair of the Appropriations Committee—I can tell you, we did not include a single cent—not one penny!—for running torture prisons in El Salvador in our last funding bill.

    “Congress has the power of the purse, but Trump is picking our pockets to fund his own personal gulag. And by the way, while we talk about checks and balances, let’s not forget how the Trump Administration is arresting judges, his allies and advisors are attacking judges publicly and calling to impeach those who disagree with him, and of course, Trump is blatantly ignoring the courts. And worse than that, the White House is in open defiance of the Supreme Court.

    “The Supreme Court wrote the Administration must facilitate Mr. Garcia’s release. The White House wrote that he is never coming back.

    “The Supreme Court wrote people being targeted under the Alien Enemies Act must have a reasonable opportunity to file for habeas corpus. The Trump Administration said, ‘no—we will give them 12 hours.’

    “Foreign policy is not an end run around the courts or the constitution. The President cannot just be given unilateral authority to cut completely unethical deals with foreign nations. What happens when a President negotiates in secret to have his political rivals detained abroad? Is that allowed? Can he argue the courts can’t require him to call such a deal off? Or maybe he just denies it and says any agreements are state secrets? Does that work?

    “If President Trump said he would pay El Salvador $6 million to assassinate his rivals—I think we would all agree that is blatantly unconstitutional. And if the court said he had to facilitate a reversal of that deal, and he said ‘well.. it’s a sovereign nation… I can’t stop them from assassinating anyone,’—I think we all would have a huge problem with that. So, do we want to say that is wrong now—or are we going to have to wait until he tries it?

    “What are we waiting for? We cannot just all stand by silent as the President pries open a pandora’s box that is all together unprecedented—and that poses a direct threat to our Republic. And let’s cut through this BS where Trump and El Salvador are both trying to pretend there is no way to facilitate the return of people sent there wrongly.

    “Cause here’s the thing: El Salvador has already sent back people that Trump tried to disappear. El Salvador immediately sent back a Nicaraguan individual. And they sent back women—yeah, Trump tried to disappear women to their all-male torture prison in El Salvador. If anyone wants to try and pretend this was some careful vetting process, pleaseexplain that to me. So it’s not like El Salvador can’t send people back—they have already done that.

    “The Administration should be making clear—one: that these people were wrongly sent, and two: that, as with others wrongly sent, they need to be returned. Though, I want to keep in mind of course, that ‘wrongly sent’ is still an enormous understatement. The reality is these people were completely denied due process. The reality is President Trump is not just disappearing these people to El Salvador, he is disappearing our most basic constitutional rights, and he is doing it in plain sight.

    “Not just in El Salvador either! Right here, in America, his immigration crackdown is upturning lives, and overturning some of our most basic values, like freedom of speech. We have people who are here legally—who are being detained and threatened with deportation. Not for any crime, not for any violence, but for speech, for protest, for things as simple and fundamental as writing an op-ed the Administration disagreed with.

    “In America, the land of the free and the land of free speech, is dissent the bar for deportation now? Is that what this country has come to? What next? How far does Trump’s new standard apply? Can you get deported for saying we shouldn’t invade Canada? Can you get detained for an op-ed saying Greenland is not going to be a state? Are you going to have legal status revoked for admitting Biden won the 2020 election?

    “Because that may seem outrageous—but it also seems perfectly in line with Trump’s new policy which amounts to—disagree with the President and your rights are gone. That is fundamentally un-American.

    “And beyond people who are being targeted for protest, there are thousands of students in this country, that Trump is trying to push out over minor issues; fishing citations, jay walking, speeding tickets, even charges that were dismissed. So far, some 1,800 foreign students are having their visa revoked with little to no explanation, to say nothing of due process.

    “That includes students in Washington state, my homes state, at the UW, at Gonzaga, at Shoreline Community College—where I once worked—my alma mater WSU, and more! It’s not clear whether these students have done anything wrong, and it’s not clear in some cases—what exactly they are supposed to do next. Because when the Administration can’t revoke visas—it has been trying to remove students’ records—something courts have already ruled against.

    “One of the judges really put it best. And I want to read this and quote it to you. This is a judge. ‘I’ve got two experienced immigration lawyers on behalf of a client who is months away from graduation, who has done nothing wrong, who has been terminated from a system that you all keep telling me has no effect on his immigration status, although that clearly is BS. And now, his two very experienced lawyers can’t even tell him whether or not he’s here legally, because the court can’t tell him whether or not he’s here legally, because the government’s counsel can’t tell him if he’s here legally.’

    “M. President, the point seems to be, if we can’t deport you, we can scare and confuse you. And to add even more confusion, DOJ announced they were reversing course on some of this, only to then say they are still working on a plan to push out all these students. And by the way, we are only still scratching the surface of just how inhumane Trump’s immigration crackdown has become.

    “Trump is slashing funds to ensure 26,000 migrant kids have legal assistance—meaning more four-year-olds are being marched in front of immigration judges, expected to make their own legal case with a plushy toy. Trump is also trying to mass cancel protected status for people who came here who were fleeing harsh conditions and dictators. Trump is sending Christian refugees and women back to live under the Taliban—where they will face near certain persecution. Trump is sending ICE officials to elementary schools, where they have tried to gain access by lying about having permission from parents to speak with their kids.

    “ICE officials are arresting people with maximum violence and lawlessness—showing up without a judicial warrant, since the Trump Administration says it is fine to storm into someone’s house without one, showing up in masks, grabbing people off the streets without any badge or identification to distinguish them from a kidnapper, whisking people away in unmarked cars, and even smashing in windshields.

    “M. President, back in my home state of Washington—I have heard from folks who saw that firsthand. Last month, ICE aggressively detained Lelo, a farmworker in my state—and it appears he may have even been targeted because of his advocacy for better working conditions for his fellow farmworkers. They are still denying him bond—despite no criminal charges. I spoke with his wife last week—who watched in horror as they arrested her husband shortly after he dropped her off at work. She told me through tears about how officers broke his window and pushed him against the car. And how, Lelo wants to be free so he can take care of his brothers and sisters and work so they can study. He wants to continue doing his work in the community and with the union. And they are working right now to try and get bond—something I strongly support. This is not someone M. President, with a dangerous record—it is someone with a record of hard work, and of trying to make his community better.

    “Skagit County is known for its agricultural industry—and that industry doesn’t survive without the immigrant farmworkers who help power that local economy. Period.

    “More than that, we are talking about many families who have been here for decades. They are part of our community—they’re not just the people who feed this country. These people work hard, they follow the law. They should not be terrorized as if they were violent criminals. Last week, I met with farmworkers there who told me there have been days they have been afraid to go to work, because an unmarked vehicle was seen in their neighborhood. They are absolutely terrified of being grabbed off the street by ICE and locked up with no semblance of due process, regardless of their legal status.

    “And this situation is not unique to Skagit County or even to my state. It’s happening across the country. Let’s not forget, Trump is trying to deport a cancer researcher to Russia where she fears retaliation for protesting the war in Ukraine. Sending her away would both put her in danger and completely upend groundbreaking cancer research—her colleagues say her role is irreplaceable.

    “But it’s not just cancer research, Trump also deported a little girl, a U.S. citizen, who was on her way to get cancer treatment! She was with her mother, an undocumented immigrant—who was forced to choose between being separated from her 10-year-old daughter or being sent away together. What an unthinkable choice to force on a mother. What an unthinkable thing to do to a child, a citizen, a citizen who is fighting cancer.

    “And Trump has done that twice. That’s right twice, he has deported a mother—along with a kid who is fighting cancer—a kid who is an American citizen. And he is doing that without giving these parents any meaningful time to talk to a lawyer, or a spouse, to figure out what is best for their child. We know that because Trump deported another U.S. citizen last week—that’s right another one. Trump deported a two-year-old, an American citizen. They refused to tell this kids’ father where his wife and kid were being held. They refused to let him talk to his wife for more than a minute. They even forced him to hang up the phone when he tried to give his wife their lawyer’s number. And then, as the judge put it, they seem to have ‘deported a U.S. citizen with no meaningful process.’

    “And now we are hearing about a family in Oklahoma—U.S. citizens who recently moved in who had their home raided by ICE. A mom and her daughters—forced out of their house, in the rain, in underwear. ICE agents seized phones, laptops, even their full life savings—and didn’t leave so much as a number they could call to get their stuff back. That happened to U.S. citizens, who did nothing but move into a new house.

    “These horror stories underscore something important—Trump’s cruel war on immigrants is hurting American citizens too. U.S. citizens are having their spouses ripped away, even servicemembers are seeing their families targeted. They are having their parents ripped away. They are having their lives turned upside down.

    “And—let’s not forget—U.S. citizens are even being detained by this administration. We have several instances now—where American citizens have been caught up in Trump’s immigration crackdown. American citizens have been detained and wrongly locked up—even after someone showed them their birth certificates. Even for days! And let’s keep in mind—if you are a citizen who is mistakenly detained, and you are being denied due process, and you can’t reach someone to show your birth certificate, how are you supposed to get released? What if you are put on the next plane to El Salvador before you get the chance to set the record straight? And let’s not pretend that’s far-fetched.

    “Not when citizens havealready been mistakenly detained. Not when the government hasalready admitted it sent some people to El Salvador by mistake. Now when Trump has already disappeared some people who were here legally, and many people who had no criminal record—with no due process. And not when Trump hasalreadysaid he wants to send U.S. citizens to El Salvador prisons. He was caught on mic telling the President of El Salvador he needs to build more jails, telling him the ‘homegrowns’ are next. What happens when you get sent there, and you can’t contact a lawyer? These are serious questions—what happens? Because if there is nothing we can do for the people there now, what precedent does that set for the people that are sent there next?

    “M. President—I’ve been speaking for a while now and I’ve posed a lot of questions, and I hope my colleagues think about this carefully. So, I am going to wrap it up, but I will end now with just one more.

    “Where will Republicans draw the line? Because we are well past the bounds of law—and we are well past the bounds of basic humanity. So, I hope more of my colleagues will join me in saying enough is enough. And in demanding transparency, accountability, and justice from the Trump Administration. That starts with some very basic things.

    “First—accurate, up-to-date information on the names of people who are being detained in, and deported from, ICE facilities across the country—including by the way, the Northwest ICE Detention Center in Tacoma, so that their loved ones and community members can at least know where they are!

    “And we need a clear list of every person who was disappeared to El Salvador, along with what evidence—if any—the government has. As well as the full terms of whatever agreement the Trump administration has negotiated with El Salvador’s dictator.

    “But it doesn’t stop there. We need to see clear, good faith efforts to abide by court orders, and to bring back everyone wrongfully, unjustly sent to a foreign prison. We need to have lines of communication so these people can talk to their lawyers, or talk to their loved ones, and let us know if they are okay.

    “And we need due process—with evidence, with judges, and a meaningful opportunity for people to present a defense. Let’s be clear we are not saying everyone is innocent. We are saying no more than what the constitution says, no more than what the courts have said time and again: Everyone, in the United States of America, gets due process.

    “Thank you.”

    MIL OSI USA News –

    May 1, 2025

  • MIL-OSI Security: New Britain Man Sentenced to 7 Years in Federal Prison for Trafficking Cocaine While on Supervised Release

    Source: Office of United States Attorneys

    Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that AKEEM MANOO, 34, of New Britain, was sentenced today by U.S. District Judge Vernon D. Oliver in Hartford to 84 months of imprisonment, followed by four years of supervised release, for possessing with intent to distribute cocaine, and for committing the offense while on supervised release from a prior federal conviction.

    According to court documents and statements made in court, on March 26, 2016, Manoo was sentenced in New Haven federal court to 120 months of imprisonment and five years of supervised release for his participation in a gang-related narcotics trafficking conspiracy.  He was released from federal prison in November 2022.  On May 11, 2023, Manoo was arrested after Hartford Police stopped his vehicle and found him in possession of nearly a half-kilogram of cocaine.

    Manoo pleaded guilty on October 30, 2024.

    Judge Oliver sentenced Manoo to 68 months of imprisonment for the cocaine distribution offense, and an additional 16 months of imprisonment for violating the conditions of his supervised release.

    This investigation was conducted by the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department.  The case was prosecuted by Assistant U.S. Attorney Brendan J. Keefe.

    MIL Security OSI –

    May 1, 2025

  • MIL-OSI: Scuderia Ferrari and HP Fuse Technology and Design with Special Livery for Miami Grand Prix

    Source: GlobeNewswire (MIL-OSI)

    News Highlights:

    • Scuderia Ferrari and HP collaborate to co-engineer livery wrapping technologies pushing the boundaries of design possibilities in the near future
    • Debut of special edition livery for Miami GP to mark the first year of title partnership
    • With the latest-generation HP technology, Ferrari is building the working environment of the future in Maranello and at the track

    MIAMI, Fla., April 30, 2025 (GLOBE NEWSWIRE) — Scuderia Ferrari and HP Inc. (NYSE: HPQ) today revealed a special co-designed livery, ahead of the Miami Grand Prix, marking the first year of their title partnership. Unveiled this afternoon in downtown Miami by the Scuderia Ferrari HP drivers and Team Principal, Fred Vasseur, the cutting-edge livery is a result of deep collaboration between the two companies, pushing the boundaries of visual design and performance.

    The livery combines the Ferrari red with HP’s signature white and electric blue, applied using new, co-engineered technologies that will pave the way for even more striking designs in the future.

    Co-Engineering for Performance

    As part of a series of ongoing joint projects between HP and Scuderia Ferrari engineers, the Miami livery development stands out as a clear example of innovation in action. Engineering teams from both Ferrari in Maranello and HP in Barcelona worked hand in hand and experimented with technologies and materials to achieve the final result.

    Innovative techniques were used to produce the film that covers part of the SF-25. These represent a significant step forward over the technology used last year, creating a car wrap that is up to 14% lighter and up to 17% thinner, with increased thermal resistance1. The film is PVC-free, fully recyclable, and applied using HP’s latest generation of latex technology.

    Formula 1 is constantly evolving, and both companies will continue to refine wrap technologies together — making them even more efficient, enabling bolder aesthetics and design innovation while reducing the time required to apply the film.

    Miami GP Special Livery

    The special livery design for this weekend reflects the evolution of this partnership and the shared effort behind it. For the first time in the Scuderia’s history, the livery on Charles Leclerc’s and Lewis Hamilton’s SF-25s features asymmetric graphic elements. Touches of HP’s signature electric blue appear on the front and rear wings, although Ferrari red is still the dominant color. The wheels are painted white, creating a clean, modern look that embodies the team’s innovative vision.

    This livery is not just a styling exercise, it is a tangible celebration of shared ambition – two companies, two visions, united by technology and creativity, working together to push the boundaries of what is possible.

    Building the Working Environment of the Future

    The collaboration is also transforming how Ferrari works at the track and in Maranello, with the installation of hundreds of HP laptops, monitors, powerful workstations, and printers in the factory and in the team’s mobile offices at the Formula 1 World Championship events. Thanks to this latest generation of high-performance and user-friendly technology, business efficiency, productivity, and collaboration have also been enhanced.

    This ongoing partnership between HP and Ferrari exemplifies how technology can enhance work experiences, promoting greater fulfillment and productivity, while HP’s continued technology integration at Ferrari creates a positive working environment for employees to thrive.

    In the Fan Zone and on Track

    In addition to the special livery reveal, a variety of activities will take place in the HP Experience area at the Wynwood Marketplace, showcasing how HP technology is supporting Scuderia Ferrari, and how it can empower workers and companies around the world to achieve greater work fulfillment. Starting tomorrow, fans heading to the racetrack will also notice that the drivers’ race suits and helmets have been designed to match the special livery created for the Miami race.

    “Our collaboration with Ferrari is a testament to how HP is pushing the boundaries of what’s possible,” said Enrique Lores, President and CEO, HP Inc. “Together, we are harnessing technology, performance, and innovation to create and co-engineer exceptional experiences on and off the track. As HP continues to deliver cutting-edge solutions to define the Future of Work, we are setting new standards for collaboration and innovation.”

    Benedetto Vigna, CEO Ferrari commented: “It all started one year ago at the Miami Grand Prix and since then, we’ve seen how deeply aligned our two companies are when it comes to the importance of people to boosting innovation, striving for excellence, and pushing boundaries.

    “This Grand Prix will mark the return to the place where the collaboration between our two companies began, with a celebration of this journey featuring a bold new asymmetric livery. It is an expression of our shared belief in the power of design, technology, and performance to drive meaningful change.

    “Beyond the racetrack, this partnership has also allowed us to elevate how we work every day. Thanks to HP’s cutting-edge devices and technologies, we’ve been able to enhance the efficiency, connectivity, and flexibility of our workspaces, providing every member of our team with the best possible environment in which to perform at their highest level. It’s a symbol of how far we’ve come together, and a glimpse of the road ahead. We’re proud to continue this collaboration with HP as we look to a very promising future.”

    About Scuderia Ferrari HP

    Scuderia Ferrari is the most successful team in Formula 1 history, having competed in every season since the championship’s inception in 1950. With over 1,100 Grand Prix entries, the team has scored nearly 250 victories, 16 Constructors’ Championships, and 15 Drivers’ Championships. Legendary names such as Michael Schumacher, Niki Lauda, and Alberto Ascari have all contributed to Scuderia Ferrari’s rich and storied legacy. Headquartered in Maranello, Italy, Scuderia Ferrari HP is synonymous with engineering excellence, relentless innovation, and an unwavering passion for motorsport. Its red cars have become a global symbol of performance and prestige — a reflection of the team’s enduring influence both on and off the track.

    About HP

    HP Inc. is a global technology leader and creator of solutions that enable people to bring their ideas to life and connect to the things that matter most. Operating in more than 170 countries, HP delivers a wide range of innovative and sustainable devices, services and subscriptions for personal computing, printing, 3D printing, hybrid work, gaming, and more. For more information, please visit http://www.hp.com.

    Media Contacts

    MediaRelations@hp.com 
    hp.com/go/newsroom  

    1 Based on proprietary data and testing from Ferrari and HP and when compared with 2024. Results current as of April 30, 2025.

    The MIL Network –

    May 1, 2025

  • MIL-Evening Report: Feuding mob families, mind control and a murder at the White House: what to watch in May

    Source: The Conversation (Au and NZ) – By Alexa Scarlata, Lecturer, Digital Communication, RMIT University

    Disney+/Prime/Netflix/Paramount+/The Conversation

    It’s May! Where did the year go? It must be all the amazing TV we’re watching that’s making the time whiz by. This month’s lineup of expert picks is packed with standout shows across all genres.

    Whether you’re in the mood for laugh-out-loud comedies, powerful historical fiction, or sci-fi that will leave your brain rattling for days, there’s something binge-worthy waiting for you.

    MobLand

    Paramount+

    Lately, I’ve found myself counting down the days each week for a new episode of MobLand to drop on Paramount+ on Sunday afternoon. The crime series is executive produced (and the first two episodes directed) by Guy Ritchie, and stars Tom Hardy, Pierce Brosnan and Helen Mirren – along with a heavyweight supporting cast – in a story about two rival mob families in London.

    When tensions escalate after a night out, Hardy’s “fixer” character, Harry, works to keep the peace between the Harrigans and the Stevensons – be it with a quiet word or brutal force.

    MobLand is as twisty, gruesome and fun as we’ve come to expect from Ritchie’s popular gangster titles. But while others have been regularly criticised for their lack or limited portrayal of female characters, MobLand benefits from the scheming and swearing of the inimitable Helen Mirren as matriarch Maeve Harrigan, and the quiet fury of Joanne Froggatt as Harry’s wife, Jan, as she tries to force the enforcer into marriage counselling.

    The series has been a huge success for Paramount+ in Australia – becoming the largest launch in the platform’s history. And while some may find the weekly episode drop frustrating, for me it adds to the suspense.

    – Alexa Scarlata

    The Residence

    Netflix

    Faced with Donald Trump, show makers turn to alternative visions of leadership. The latest: a gay president, who is only a bit of a player, in a ridiculously entertaining picture of a crime within the White House.

    At a US state dinner for visiting Australian Prime Minister Stephen Roos (Julian McMahon), the dead body of the chief usher is discovered, and the world’s greatest detective, Cordelia Cupp (Uzo Aduba), is called in. Not only is Cupp an avid bird-watcher, she is also an Agatha Christie devotee who likes to assemble all her suspects for a prolonged denouement.

    The Residence is full of oblique references to current US politics. One former senator, Al Franken, plays a fictional senator named Aaron Filkins. And Tripp Morgan (Jason Lee), US President Perry Morgan’s odious brother, has several real-life precursors.

    The series is also a guide to the White House itself, complete with the sort of lavish detail we’d expect from Shondaland productions. And it’s nice to see Netflix acknowledging Australians. Even if they couldn’t persuade Hugh Jackman to actually show up, there’s plenty of other home-grown talent – including cameos by Kylie Minogue.

    – Dennis Altman

    Last One Laughing UK

    Prime Video

    Last One Laughing is a battle royale for stand-ups. Ten comedians, one room, surrounded by cameras. Laugh once and they’re warned. Laugh again, and they’re out. Last comic left wins.

    An international TV phenomenon in 29 countries, the latest season is from the United Kingdom, hosted by Jimmy Carr and featuring comedians like Bob Mortimer, Sara Pascoe and Joe Lycett.

    Comedy takes time, but laughter can take less than a moment. Richard Ayoade nearly catches out two players when, asked what his childhood hobbies were, he replies: “I don’t know. I cried a lot?”

    Last One Laughing doubles our laughs. We watch the actual joke, we get it, we laugh. And then we see comedians desperately trying not to laugh – but we know that they get the joke too! And so we get an unexpected second look at the joke.

    Last One Laughing helps us understand why we laugh at our own jokes, why we can’t always explain what’s funny, and why gags don’t need words. We’re watching professional comedians get the joke (as we do!) without laughing (as we expect?) but we know that it’s all OK. And, however briefly, we glimpse the world anew.

    – Fergus Edwards



    Read more:
    We’re hardwired to laugh – this is why watching comedians try to be the ‘Last One Laughing’ is so funny

    Dying for Sex

    Disney+

    Based on a popular podcast by Molly Kochan and Nicki Boyer, Dying for Sex is a funny, raunchy, heartfelt exploration of pleasure and death.

    When Molly (Michelle Williams) finds out her cancer is back and this time it is terminal, she seeks out sexual desire and satisfaction in unusual places, making profound discoveries along the way.

    The show is rated R for good reason: the depiction of sexual acts is graphic, but not exploitative or voyeuristic. Rather it embraces the messiness of having a body that is dying but seeking joy.

    While Molly’s sexual adventures feature heavily (and explicitly), the heart of the show is Molly’s friendship with Nicki (Jenny Slate), which feels achingly real. Molly and Nicki are long-term friends, as such they adore and encourage each other’s idiosyncrasies and perceived flaws.

    Williams is luminous and well-matched with Slate, who brings a levity and longing to caring for her best friend and supporting her new goals. Despite its relatively short runtime of just eight 30 minute episodes, we are treated to nuanced renderings of Molly’s complex relationships with her mother (Sissy Spacek), husband (Jay Duplass) and neighbour (Rob Delaney).

    Dying for Sex is infuriating and heartbreaking, as well as absurdly funny – kinda like death.

    – Jessica Ford

    Black Mirror, season seven

    Netflix

    The seventh season of Black Mirror is an ominous return to the dark world of modern technology. This season comprises six new episodes, two of which are sequels to episodes from previous seasons.

    Common People is a powerful opening to the season, starring two of the most famous actors to appear throughout. Amanda (Rashida Jones) and Mike (Chris O’Dowd) are an ordinary suburban couple struck by tragedy in the form of a serious medical emergency – a narrative turn that is compounded by an unexpected departure from Jones and O’Dowd’s comedic reputations. The collapse of their life reaches greater and greater depths, before culminating in a horrifying final scene.

    The other five episodes of the season are not as dismal. USS Callister: Into Infinity, in particular, provides some resolution that the earlier episode USS Callister had not. Plaything, the sequel to the interactive film Bandersnatch, echoes USS Callister’s interest in video gaming, but takes its invasion of human life to an even more powerful conclusion. Bête Noire similarly toys with the idea of mind control.

    Hotel Reverie and Eulogy are quieter episodes, and not as overtly critical of technological advance as the others. Both are very moving, and like Common People, are interested in the lengths one might go to for the people they love.

    Black Mirror’s seventh season is both a warning and a guide for how to be human – and how not to.

    – Jessica Gildersleeve

    The Wheel of Time, season three

    Prime Video

    The Wheel of Time is Prime’s most recent entry into the increasingly popular epic fantasy genre. Despite a lacklustre first two seasons, season three finally rewards fans for their patience.

    Adapted from Robert Jordan’s sprawling 14-book series, the new season begins full throttle with a violent battle between the all-female One Power-wielding Aes Sedai. While some episodes lag due to overly complicated exposition and agonising character development (just embrace the wolf already, Perrin), for the most part showrunner Rafe Judkins maintains the propulsive momentum established in the spectacular opening.

    Episode four, The Road to the Spear, is a standout sure to please die-hard Jordan fans and new audiences alike. Cinematic in scope, the episode faithfully recounts Rand (Josha Stradowski) and Moiraine’s (Rosamund Pike) journey to Rhuidean in the Aiel Waste where Rand is confirmed as the Dragon Reborn.

    Pike continues to provide much-needed gravitas as the steely Moiraine and Stradowski is a revelation. It doesn’t hurt that the episode makes good use of its deliciously vampy leather-clad villain Lanfear (Natasha O’Keeffe).

    No doubt references to Jordan’s expansive lore might continue to baffle some viewers. However, the sumptuous costumes, increasingly assured performances and modernised relationships suggest the series has finally found its footing.

    Long may The Wheel of Time continue to turn.

    – Rachel Williamson

    The Narrow Road to the Deep North

    Prime Video

    The Narrow Road to the Deep North stands as some of the most visceral and moving television produced in Australia in recent memory, marking a new accessibility and confidence to director Justin Kurzel.

    Dorrigo Evans (Jacob Elordi/Ciarán Hinds) is a doctor sent to World War II. Captured during the Battle of Java he is taken as a prisoner of war (POW), where he is forced to lead his Australian soldiers on the building of the Burma-Thailand Railway.

    Rather than an executor of violence, he is a pacifist and victim. Ultimately he has to make peace with his own trauma and guilt of survival when many around him perished – some of whom he knowingly sent to their inevitable death to ensure his own survival.

    Faithfully adapted from Richard Flanagan’s novel in a screenplay by Shaun Grant, this production effectively creates interchanging timelines (seamlessly edited by Alexandre de Francesch) including prewar, war and postwar, and then flashes forward to Dorrigo in his mid-70s.

    Structurally immaculate, The Narrow Road to the Deep North is not defined by its brutal torture of the POWs or comradeship of the starving soldiers (though they are powerful to watch). Instead, it points us towards the quieter visions of characters having to sit alone with their distorted memories.

    Contemporary television is rarely this good.

    – Stephen Gaunson



    Read more:
    Contemporary television is rarely as good as The Narrow Road to the Deep North

    Andor, season two

    Disney+

    Andor returns for a second season, as we follow the early days of the Rebel Alliance leading up to events in Rogue One.

    One year after the events of season one, we open with Cassian (Diego Luna) impersonating an Imperial test pilot so he can steal a prototype Imperial ship. After stealing the ship, he must navigate a ragtag brigade whose infighting becomes violent.

    Elsewhere on planet Mina-Rau, Bix (Adria Arjona) and other undocumented farm workers await Cassian’s arrival with the ship. Over on Chandrila, Imperial Senator Mon (Genevieve O’Reilly) navigates the diplomacy of her daughter’s wedding while continuing to discreetly support the rebellion.

    The most chilling scenes in the opening episodes are perhaps those that show Imperial supervisor Dedra Meero (Denise Gough) attend a top-secret meeting where they strategise how best to cleanse the population of Gorman so they can mine a rare mineral.

    As film academic Daniel Golding notes in an article about how Andor takes on the era of Trump 2.0, showrunner Tony Gilroy takes inspiration from several real world revolutionary events. Given Russia’s invasion of Ukraine, Israel’s assault on Gaza and Trump’s increasing authoritarianism, it will be interesting to see how the revolution in this season continues to reflect real-world precarity.

    I recommend refreshing your memory of season one before diving in, as the new season’s complexity relies on considerable assumed knowledge.

    – Stuart Richards

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

    – ref. Feuding mob families, mind control and a murder at the White House: what to watch in May – https://theconversation.com/feuding-mob-families-mind-control-and-a-murder-at-the-white-house-what-to-watch-in-may-255222

    MIL OSI Analysis – EveningReport.nz –

    May 1, 2025

  • MIL-OSI Security: Eight-time illegal reentry felon imprisoned for unlawfully reentering U.S. again

    Source: Office of United States Attorneys

    HOUSTON – A 30-year-old Mexican citizen with a felony criminal history has been sentenced for illegally reentering the United States after eight previous removals, announced U.S. Attorney Nicholas J. Ganjei.

    Julio Cesar Corona-Corona pleaded guilty Oct. 7, 2024.

    U.S. District Judge Yvonne Ho has now ordered Corona-Corona to serve 37 months in federal prison. Not a U.S. citizen, he is expected to again face removal proceedings following his imprisonment.

    At the hearing, the court heard how Corona-Corona was arrested in 2022 for smuggling aliens after he fled from police in a vehicle carrying eight others, creating dangerous conditions for the vehicle occupants as well as the community. In handing down the sentence, Judge Ho noted Corona-Corona’s motivation to come to the United States, be it for work or family residing here – is not unique. The court added that, despite prior court warnings not to do so, Corona-Corona was determined to unlawfully reenter the United States, as evidenced by his repeated encounters with immigration authorities. Corona-Corona also received a three-year-term of supervised released to commence after completion of his prison sentence as an added deterrent to unlawful reentry into the United States. 

    Corona-Corona has felony convictions for illegal reentry as well as human smuggling. He was first removed from the United States Jan. 25, 2014, and returned illegally eight times between 2014 and April 2020. In fact, authorities had removed him six times alone between 2017-2018.

    Corona-Corona will remain in custody pending transfer to a Federal Bureau of Prisons facility to be determined in the near future.

    “What those outside our country need to understand is that despite what they may have heard in the past, our immigration laws are being strictly enforced,” said Ganjei. “If somebody breaks our laws by sneaking across the border, they are going to be prosecuted, jailed, and then deported. The sooner that message spreads, the better it will be for everyone.”

    Immigration and Customs Enforcement – Homeland Security Investigations conducted the investigation with the assistance of Houston Police Department. Assistant U.S. Attorney Carrie Wirsing prosecuted the case.

    This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.

    MIL Security OSI –

    May 1, 2025

  • MIL-OSI: Element Reports Solid First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Amounts in US$ unless otherwise noted

    • Solid Q1 2025 performance in uncertain market conditions reflects the strength of the Company’s business model and financial and operational resilience
    • Net revenues grew 5% year-over-year driven by growth across all categories despite an unfavourable foreign currency translation impact of $17 million and Q1 2024 services revenue benefitting from $7 million in certain items (as previously disclosed)
    • Q1 2025 adjusted operating expense2,3 growth moderated to 5% year-over-year
    • Excluding the $7 million in services revenue noted above, net revenue grew 8% year-over-year, and adjusted operating margin expanded 125 basis points with positive operating leverage of 290 basis points
    • On an adjusted basis3, diluted EPS of $0.28 in Q1 2025 represented a 8% year-over-year increase, diluted free cash flow per share of $0.36 grew 9%, and the Company generated a return of equity of 16.7%; up from 15.4% in Q1 2024
    • The Company is effectively navigating the challenges posed by global trade tensions to support its clients and business
    • Client order volume remains resilient, with global order backlog rising to $2 billion in Q1 2025
    • Repurchased 2.2 million common shares under its normal course issuer bid in Q1 2025 for total consideration of approximately $40 million

    TORONTO, April 30, 2025 (GLOBE NEWSWIRE) — Element Fleet Management Corp. (TSX:EFN) (“Element” or the “Company”), the largest publicly traded, pure-play automotive fleet manager in the world, today announced financial and operating results for the three months ended March 31, 2025. The following table presents Element’s selected financial results.

               
      Q1 20251 Q4 20241 Q1 20241 QoQ YoY
    In US$ millions, except percentages and per share amount       % %
    Selected results – as reported          
    Net revenue 275.7   270.9   262.5   2%   5%  
    Pre-tax income 136.5   121.4   123.0   12%   11%  
    Pre-tax income margin 49.5 % 44.8 %   46.9 %   470 bps 260 bps
    Earnings per share (EPS) [diluted]         0.25   0.23   0.23   9%   9%  
    Adjusted results1,2,3          
    Adjusted net revenue1,3 275.7   270.9   262.5   2%   5%  
    Adjusted operating income (AOI)3 150.8   143.3   143.6   5%   5%  
    Adjusted operating margin3 54.7 % 52.9 %   54.7 %   180 bps — bps
    Adjusted EPS3 [diluted]         0.28   0.27   0.26   4%   8%  
    Other highlights:          
    Adjusted free cash flow per share3(FCF/sh) – diluted 0.36   0.30   0.33   20%   9%  
    Originations 1,509   1,498   1,542   1%   (2)%  
    Vehicles under management 1.514   1.517   1.490   —%   2%  
    Adjusted ROE3 16.7 % 15.4 %   15.4 %   130 bps   130 bps  
    1. Q1 2024 services revenue benefitted from $7 million in certain items, as previously disclosed.
    2. Q1 2024 also includes $2 million in strategic project costs (nil in Q4 2024) attributable to the Company’s leasing initiative in Ireland. These strategic costs were completed in Q3 2024 and, in aggregate, were $2 million below planned investment as previously communicated.
    3. Adjusted results are non-GAAP or supplemental financial measures, which do not have any standard meaning prescribed by GAAP under IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. For further information, please see the “IFRS to Non-GAAP Reconciliations” section in this earnings release. The Company uses “Adjusted Results” because it believes that they provide useful information to investors regarding its performance and results of operations.
       

    “Our solid Q1 results highlight the financial stability and operational resilience of our business,” said Laura Dottori-Attanasio, Chief Executive Officer of Element. “This has enabled us to effectively manage potential disruptions from global trade tensions while staying committed to our clients’ success. By leveraging our deep industry expertise, we remain focused on guiding clients through market uncertainties and continuing to support them in achieving their strategic objectives.”

    Dottori-Attanasio continued, “Strong client demand, combined with our business’ proven ability to adapt and self-correct, enables us to consistently deliver value for shareholders across dynamic market environments. At the same time, we continue to innovate, digitize, and evolve to sustain long-term success and lead the way in defining the future of mobility. We are also encouraged by the moderation in expense growth — a trend we expect to continue through 2025 and will help to generate adjusted operating margin expansion in line with our 2025 guidance.”

    Net revenue growth

    Element grew Q1 2025 net revenue 5% over Q1 2024 (“year-over-year”) to $276 million, with increases delivered across all categories. As previously disclosed, Q1 2024 net revenue benefitted from $7 million in services revenue from certain items. Excluding these items, net revenue grew 8% compared to Q1 2024. Additionally, the impact of foreign exchange translation was material year-over-year, particularly the Mexican Peso and Australian dollar, which depreciated against the U.S. dollar by approximately 20% and 5%, respectively, reducing net revenue by $17 million.

    Q1 2025 net revenue increased $5 million or 2% from Q4 2024 (“quarter-over-quarter”) led largely by higher net financing revenue, higher syndication revenue and higher Gains on Sale (“GOS”) due to seasonal factors. This was partly offset by lower services revenue, which benefitted from certain timing-related factors in Q4 2024.

    Service revenue

    Element’s largely unlevered services revenue is an important driver of the Company’s growth and the key pillar of its capital-light business model, which has improved the return on equity profile.

    Q1 2025 services revenue increased 4% year-over-year to $152 million driven primarily by higher penetration and utilization rates of our service offerings from new and existing clients. As previously disclosed, Q1 2024 services revenue benefitted from $7 million in certain items. Excluding this amount, services revenue grew by 9% year-over-year. Partly offsetting this increase was the impact of foreign currency exchange translation, which reduced services revenue by $6 million.

    Q1 2025 services revenue decreased 6% quarter-over-quarter from a record Q4 2024, which benefitted from certain timing-related factors referenced above under ‘Net revenue growth’.

    Net financing revenue

    Q1 2025 net financing revenue grew $4 million or 4% year-over-year, primarily due to strong growth in financing income driven by both pricing and funding initiatives. Partly offsetting this was higher funding costs associated with financing the redemptions of our preferred shares (previously recorded below the AOI line) and the impact of incremental debt due to the acquisition of Autofleet. The year-over-year decrease in GOS resulted from unfavourable foreign currency translation, as on an underlying basis higher vehicle volume more than offset used vehicle price normalization. The aggregate impact of foreign currency exchange translation reduced net financing revenue by $11 million year-over-year.

    Q1 2025 net financing revenue increased $8 million or 8% from Q4 2024. This quarter-over-quarter increase was materially led by higher yield on assets, higher GOS relative to a seasonally weaker fourth quarter, and lower funding costs.

    Syndication volume

    The Company syndicated $574 million of assets in Q1 2025, an increase of $101 million or 21% year-over-year. Q1 2025 syndicated assets decreased $461 million or 45% quarter-over-quarter largely as a result of the bulk sale of a Canadian lease portfolio to Blackstone in December 2024 in the amount of $346 million (CAD$474 million).

    In Q1 2025, the Company made the strategic decision to delay the syndication of certain assets to the second half of 2025 pending the outcome of proposed U.S. tax legislation changes. Overall, the demand for Element’s assets remains strong and this postponement underscores a targeted approach to capital management.

    Q1 2025 syndication revenue increased $3 million or 41% year-over-year largely attributable to higher net yields and higher syndicated volume. This higher net yield largely reflects the Company’s syndication mix and a more favourable interest rate environment, which more than offset the scheduled reduction in bonus depreciation in 2025, which reduces net yields.

    Q1 2025 syndication increased $6 million or 95% quarter-over-quarter largely due to higher net yields from syndication mix, which compared favourably to Q4 2024 net yields that were negatively impacted by the setup costs associated with the bulk sale of the Canadian lease portfolio.

    Adjusted operating expenses

    Q1 2025 adjusted operating expenses of $125 million were $6 million or 5% higher year-over-year. largely due to higher general and administrative expenses related to business development, higher professional fees and Autofleet operating expenses of $3 million in Q1 2025. Excluding Autofleet, adjusted operating expenses increased by 2%, compared to Q1 2024. The impact of foreign currency exchange translation was a $4 million tailwind.

    Adjusted operating expenses decreased by $3 million or 2% quarter-over-quarter, largely due to lower general and administrative expenses.

    We expect operating expense growth to continue to moderate for the remainder of 2025 as the benefits of our investments made in 2024 begin to materialize.

    Adjusted operating income and adjusted operating margins

    Q1 2025 AOI was $151 million, an increase of $7 million or 5% year-over-year notwithstanding foreign currency translation impacts. Excluding the $7 million in certain service revenue items in Q1 2024, AOI grew 11% year-over-year. The impact on AOI resulting from unfavourable foreign exchange movements was $13 million on a year-over-year basis.

    Q1 2025 AOI increased $8 million or 5% quarter-over-quarter due to the favourable combination of higher revenue and reduced expenses.

    Q1 2025 adjusted operating margin was 54.7%, unchanged year-over-year. Excluding the impact of the $7 million in certain service revenue items in Q1 2024, operating margin expanded 125 basis points.

    Originations

    Element originated $1.5 billion of assets in Q1 2025, which is a $33 million or 2% decrease year-over-year reflecting foreign exchange translation headwinds impacting our Mexico and Australia and New Zealand originations, partially offset by increased volumes in the U.S. and Canada.

    Q1 2025 originations increased $11 million or 1% quarter-over-quarter led largely by higher originations in the U.S. and Canada.

    Order volumes have increased significantly over the past two quarters amid rising global trade tensions. The Company continues to expect this client order momentum, bolstered by improvements made through our U.S. & Canada Leasing strategic initiative based in Ireland, to drive solid origination volumes in the coming quarters.

    The table below sets out the geographic distribution of Element’s originations for 2025 and 2024:

    (in US$000’s for stated values) March 31, 2025 March 31, 2024
      $ % $ %
    United States and Canada 1,195,391 79.23 % 1,182,987 76.72 %
    Mexico 214,752 14.23 % 259,143 16.81 %
    Australia and New Zealand 98,726 6.54 % 99,753 6.47 %
    Total 1,508,869 100.00 % 1,541,883 100.00 %
             

    Adjusted free cash flow per share and returns to shareholders

    On an adjusted basis, Element generated $0.36 of diluted adjusted free cash flow (“FCF”) per share in Q1 2025; up 9% year-over-year. Q1 2025 diluted adjusted FCF per share was 20% higher quarter-over-quarter.

    During Q1 2025, Element returned $77 million of cash to shareholders through common share dividends ($37 million) and common share repurchases ($40 million).

    Common dividend and share repurchases

    On April 30, 2025, the Board of Directors (the “Board”) authorized and declared a quarterly cash dividend of CAD$0.13 per common share of Element for the second quarter of 2025. The dividend will be payable on July 15, 2025 to shareholders of record as at the close of business on June 30, 2025.

    The Company’s common dividends are designated to be eligible dividends for purposes of section 89(1) of the Income Tax Act (Canada).

    In furtherance of the Company’s return of capital plan, Element renewed its normal course issuer bid (the “NCIB”) for its common shares. Under the NCIB, the Company has approval from the TSX to purchase up to 40,386,699 common shares during the period from November 20, 2024, to November 19, 2025. The Company intends to be more active under its NCIB in 2025. The actual number of the Company’s common shares, if any, that may be purchased under the NCIB, and the timing of any such purchases, will be determined by the Company, subject to applicable terms and limitations of the NCIB (including any automatic share purchase plan adopted in connection therewith). There cannot be any assurance as to how many common shares, if any, will ultimately be purchased pursuant to the NCIB. Any subsequent renewals of the NCIB will be in the discretion of the Company and subject to further TSX approval.

    During Q1 2025, the Company purchased 2,178,000 Common Shares for cancellation under its NCIB at a volume weighted average price of CAD$28.55. The Company has remained active on the NCIB during April 2025, and have repurchased approximately 561,000 shares for total consideration of approximately $11 million.

    Element applies trade date accounting in determining the date on which the share repurchase is reflected in the consolidated financial statements. Trade date accounting is the date on which the Company commits itself to purchase the shares.

    Debt-to-capital leverage ratio

    Commencing Q4 2024, the Company changed its banking covenants from tangible leverage ratio (“TLR”) to debt-to-capital, which the Company believes is a more meaningful measure of its leverage. At March 31, 2025, the Company’s debt-to-capital ratio was 74.9% (March 31, 2024 73.2%). The Company targets a range between 73% to 77%.

    The Company remains committed to maintaining a strong investment grade balance sheet.

    Conference call and webcast

    A conference call to discuss these results will be held on Thursday, May 1, 2025 at 8:00 a.m. Eastern Time.

    The conference call and webcast can be accessed as follows:

    A taped recording of the conference call may be accessed through June 1, 2025 by dialing 1-855-669-9658 (Canada/U.S. Toll Free) or 1-412-317-0088 (International Toll) and entering the access code 2285919.

    IFRS to Non-GAAP Reconciliations, Non-GAAP Measures and Supplemental Information

    The Company’s audited consolidated financial statements have been prepared in accordance with IFRS as issued by the IASB and the accounting policies we adopted in accordance with IFRS. These audited consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary to present fairly our financial position as at March 31, 2025 and March 31, 2024, the results of operations, comprehensive income and cash flows for the three- and 12-month periods-ended March 31, 2025 and March 31, 2024.

    Non-GAAP and IFRS key annualized operating ratios and per share information of the operations of the Company:

        As at and for the three-month
    period ended
    (in US$000’s except ratios and per share amounts or unless otherwise noted)   March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024
             
    Key annualized operating ratios        
             
    Leverage ratios        
    Financial leverage ratio P/(P+R)   74.9 %   74.1 %   73.2 %
    Average financial leverage ratio Q/(Q+V)   75.4 %   75.0 %   73.8 %
             
    Other key operating ratios        
    Allowance for credit losses as a % of total finance receivables before allowance F/E   0.09 %   0.08 %   0.08 %
    Adjusted operating income on average net earning assets B/J   7.92 %   7.31 %   7.34 %
    Adjusted operating income on average tangible total equity of Element D/(V-L)   42.23 %   39.34 %   32.37 %
             
    Per share information        
    Number of shares outstanding W   402,350     404,502     388,926  
    Weighted average number of shares outstanding [basic] X   403,502     404,578     389,161  
    Weighted average number of shares outstanding [diluted] Y   403,686     404,726     404,118  
    Cumulative preferred share dividends during the period Z   —     —     2,919  
    Other effects of dilution on an adjusted operating income basis AA $ —     —   $ 1,222  
    Net income per share [basic] (A-Z)/X $ 0.25   $ 0.23   $ 0.23  
    Net income per share [diluted]   $ 0.25   $ 0.23   $ 0.23  
             
    Adjusted EPS [basic] (D1)/X $ 0.28   $ 0.27   $ 0.27  
    Adjusted EPS [diluted] (D1+AA)/Y $ 0.28   $ 0.27   $ 0.26  
                         

    Management also uses a variety of both IFRS and non-GAAP and Supplemental Measures, and non-GAAP ratios to monitor and assess their operating performance. The Company uses these non-GAAP and Supplemental Financial Measures because they believe that they may provide useful information to investors regarding their performance and results of operations.

    The following table provides a reconciliation of certain IFRS to non-GAAP measures related to the operations of the Company and other supplemental information.

      For the three-month period ended
    (in US$000’s except per share amounts or unless otherwise noted) March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024
    Reported results US$ US$ US$
    Services income, net   152,482     161,461     147,053  
    Net financing revenue   111,556     103,453     107,178  
    Syndication revenue, net   11,633     5,976     8,226  
    Net revenue   275,671     270,890     262,457  
    Operating expenses   135,007     141,234     132,499  
    Operating income   140,664     129,656     129,958  
    Operating margin   51.0 %   47.9 %   49.5 %
    Total expenses   139,200     149,463     139,478  
    Income before income taxes   136,471     121,427     122,979  
    Net income   102,250     92,057     93,817  
    EPS [basic] $ 0.25   $ 0.23   $ 0.23  
    EPS [diluted] $ 0.25   $ 0.23   $ 0.23  
    Adjusting items      
    Impact of adjusting items on operating expenses:      
    Strategic initiatives costs – Salaries, wages, and benefits   —     —     485  
    Strategic initiatives costs – General and administrative expenses   —     —     1,640  
    Share-based compensation   10,183     13,687     10,731  
    Amortization of convertible debenture discount   —     —     793  
    Total impact of adjusting items on operating expenses   10,183     13,687     13,649  
    Total pre-tax impact of adjusting items   10,183     13,687     13,649  
    Total after-tax impact of adjusting items   7,612     10,265     10,305  
    Total impact of adjusting items on EPS [basic]   0.02     0.03     0.03  
    Total impact of adjusting items on EPS [diluted]   0.02     0.03     0.03  
                       
      For the three-month period ended
    (in US$000’s except per share amounts or unless otherwise noted) March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024
    Adjusted results US$ US$ US$
    Adjusted net revenue   275,671     270,890     262,457  
    Adjusted operating expenses   124,824     127,547     118,850  
    Adjusted operating income   150,847     143,343     143,607  
    Adjusted operating margin   54.7 %   52.9 %   54.7 %
    Provision for income taxes   34,221     29,370     29,162  
    Adjustments:      
    Pre-tax income   3,750     5,481     5,390  
    Foreign tax rate differential and other   118     985     632  
    Provision for taxes applicable to adjusted results   38,089     35,836     35,184  
    Adjusted net income   112,758     107,507     108,423  
    Adjusted EPS [basic] $ 0.28   $ 0.27   $ 0.27  
    Adjusted EPS [diluted] $ 0.28   $ 0.27   $ 0.26  
                       

    The following table summarizes key statement of financial position amounts for the periods presented.

    Selected statement of financial position amounts   For the three-month period ended
    (in US$000’s unless otherwise noted)   March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024
        US$ US$ US$
    Total Finance receivables, before allowance for credit losses E 7,699,109   7,576,386   7,478,974  
    Allowance for credit losses F 7,137   6,168   5,794  
    Net investment in finance receivable G 5,148,688   4,968,294   5,349,038  
    Equipment under operating leases H 2,428,013   2,435,430   2,685,015  
    Net earning assets I=G+H 7,576,701   7,403,724   8,034,053  
    Average net earning assets J 7,618,350   7,848,023   7,825,155  
    Goodwill and intangible assets K 1,660,009   1,672,701   1,587,465  
    Average goodwill and intangible assets L 1,663,050   1,675,336   1,588,981  
    Borrowings M 9,045,885   8,463,789   9,021,567  
    Unsecured convertible debentures N —   —   126,108  
    Less: continuing involvement liability O (136,932 ) (132,683 ) (87,199 )
    Total debt P=M+N-O 8,908,953   8,331,106   9,060,476  
    Cash and restricted funds P1 780,531   408,621   1,031,951  
    Total net debt P2 = P-P1 8,128,422   7,922,485   8,028,525  
    Average debt Q 8,363,864   8,313,527   8,239,147  
    Total shareholders’ equity R 2,720,616   2,774,315   2,944,588  
    Preferred shares S —   —   181,077  
    Common shareholders’ equity T=R-S 2,720,616   2,774,315   2,763,511  
    Average common shareholders’ equity U 2,730,985   2,768,504   2,747,716  
    Average total shareholders’ equity V 2,730,985   2,768,504   2,928,793  
                   

    Throughout this press release, management uses the following terms and ratios which do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures presented by other organizations. Non-GAAP measures are reported in addition to, and should not be considered alternatives to, measures of performance according to IFRS.

    Adjusted operating expenses

    Adjusted operating expenses are equal to salaries, wages and benefits, general and administrative expenses, and depreciation and amortization less adjusting items impacting operating expenses. The following table reconciles the Company’s reported expenses to adjusted operating expenses.

      For the three-month period ended
    (in US$000’s except per share amounts or unless otherwise noted) March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024
      US$ US$   US$  
    Reported Expenses 139,200   149,463   139,478  
    Less:          
    Amortization of intangible assets from acquisitions 7,799   7,819   6,979  
    Loss (gain) on investments (3,606 ) 410   —  
    Operating expenses 135,007   141,234   132,499  
    Less:          
    Amortization of convertible debenture discount —   —   793  
    Share-based compensation 10,183   13,687   10,731  
    Strategic initiatives costs – Salaries, wages and benefits —   —   485  
    Strategic initiatives costs – General and administrative expenses —   —   1,640  
    Total adjustments 10,183   13,687   13,649  
    Adjusted operating expenses 124,824   127,547   118,850  
                 

    Adjusted operating income or Pre-tax adjusted operating income

    Adjusted operating income reflects net income or loss for the period adjusted for the amortization of debenture discount, share-based compensation, amortization of intangible assets from acquisitions, provision for or recovery of income taxes, loss or income on investments, and adjusting items from the table below.

    The following tables reconciles income before taxes to adjusted operating income.

      For the three-month period ended
    (in US$000’s except per share amounts or unless otherwise noted) March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024
      US$ US$   US$  
    Income before income taxes 136,471   121,427   122,979  
    Adjustments:          
    Amortization of convertible debenture discount —   —   793  
    Share-based compensation 10,183   13,687   10,731  
    Amortization of intangible assets from acquisition 7,799   7,819   6,979  
    Loss (gain) on investments (3,606 ) 410   —  
    Adjusting Items:          
    Strategic initiatives costs – Salaries, wages and benefits —   —   485  
    Strategic initiatives costs – General and administrative expenses —   —   1,640  
    Total pre-tax impact of adjusting items —   —   2,125  
    Adjusted operating income 150,847   143,343   143,607  
                 

    Adjusted operating margin

    Adjusted operating margin is the adjusted operating income before taxes for the period divided by the net revenue for the period.

    After-tax adjusted operating income

    After-tax adjusted operating income reflects the adjusted operating income after the application of the Company’s effective tax rates.

    Adjusted net income

    Adjusted net income reflects reported net income less the after-tax impacts of adjusting items. The following table reconciles reported net income to adjusted net income.

      For the three-month period ended
    (in US$000’s except per share amounts or unless otherwise noted) March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024
      US$ US$ US$
    Net income 102,250   92,057   93,817  
    Amortization of convertible debenture discount —   —   793  
    Share-based compensation 10,183   13,687   10,731  
    Amortization of intangible assets from acquisition 7,799   7,819   6,979  
    Loss (gain) on investments (3,606 ) 410   —  
    Strategic initiatives costs – Salaries, wages and benefits —   —   485  
    Strategic initiatives costs – General and administrative expenses —   —   1,640  
    Provision for income taxes 34,221   29,370   29,162  
    Provision for taxes applicable to adjusted results (38,089 ) (35,836 ) (35,184 )
    Adjusted net income 112,758   107,507   108,423  
                 

    After-tax adjusted operating income attributable to common shareholders

    After-tax adjusted operating income attributable to common shareholders is computed as after-tax adjusted operating income less the cumulative preferred share dividends for the period.

    About Element Fleet Management
    Element Fleet Management (TSX: EFN) is the largest publicly traded pure-play automotive fleet manager in the world. As a Purpose-driven company, we provide a full range of sustainable and intelligent mobility solutions to optimize and enhance fleet performance for our clients across North America, Australia, and New Zealand. Our services address every aspect of our clients’ fleet requirements, from vehicle acquisition, maintenance, route optimization, risk management, and remarketing, to advising on decarbonization efforts, integration of electric vehicles and managing the complexity of gradual fleet electrification. Clients benefit from Element’s expertise as one of the largest fleet solutions providers in its markets, offering economies of scale and insight used to reduce operating costs and enhance efficiency and performance. At Element, we maximize our clients’ fleet so they can focus on growing their business. For more information, please visit: https://www.elementfleet.com

    This press release includes forward-looking statements regarding Element and its business. Such statements are based on management’s current expectations and views of future events. In some cases the forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “plan”, “anticipate”, “intend”, “potential”, “estimate”, “believe” or the negative of these terms, or other similar expressions intended to identify forward-looking statements, including, among others, statements regarding Element’s financial performance, enhancements to clients’ service experience and service levels; expectations regarding client and revenue retention trends; management of operating expenses; increases in efficiency; Element’s ability to achieve its sustainability objectives; Element achieving its digital platform ambitions; the Autofleet acquisition enabling the Company to scale its business more quickly, achieve operational efficiencies, increase client and shareholder value and unlock new revenues streams; EV strategy and capabilities; global EV adoption rates; dividend policy and the payment of future dividends; the costs and benefits of strategic initiatives; creation of value for all stakeholders; expectations regarding syndication; growth prospects and expected revenue growth; level of workforce engagement; improvements to magnitude and quality of earnings; executive hiring and retention; focus and discipline in investing; balance sheet management and plans and expectations with respect to leverage ratios; and Element’s proposed share purchases, including the number of common shares to be repurchased, the timing thereof and TSX acceptance of the NCIB and any renewal thereof. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause Element’s actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Such risks and uncertainties include those regarding the fleet management and finance industries, economic factors, regulatory landscape and many other factors beyond the control of Element. A discussion of the material risks and assumptions associated with this outlook can be found in Element’s annual MD&A, and Annual Information Form for the year ended December 31, 2023, each of which has been filed on SEDAR+ and can be accessed at www.sedarplus.ca. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Element undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

    The MIL Network –

    May 1, 2025

  • MIL-OSI: Midland States Bancorp, Inc. Announces Preliminary 2025 First Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    EFFINGHAM, Ill., April 30, 2025 (GLOBE NEWSWIRE) — Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) reported preliminary results for the first quarter of 2025. As previously disclosed, the Company is completing its evaluation, subject to review by its independent registered public accounting firm, of the accounting and financial reporting of third-party lending and servicing arrangements, including the collection and analysis of third-party documentation, not material to tangible equity. This process is ongoing and must be completed for the Company to file its Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”), which is expected to include restated financial statements for the applicable periods.

    While the Company works diligently to complete this process, the Company is providing preliminary results for the first quarter of 2025. These results reflect the updated accounting methodology for the remaining third party lending and servicing arrangements. The Company’s actual results may differ materially from these preliminary financial results. The Company is also completing an evaluation of whether there is an impairment to its goodwill, including obtaining valuation information from third parties. An impairment, if determined to exist, would not affect the tangible equity or the regulatory capital ratios of the Company. This preliminary financial data has been prepared by and is the responsibility of the Company. The Company’s independent auditor has not reviewed or audited these preliminary financial results. The results should be considered preliminary and are subject to adjustment based on the results of the process, the restatement and other developments that may arise between now and the time the Company’s 2024 audited consolidated financial statements are issued.

    As a result of the delays in the filing of the 2024 Annual Report, certain subsequent events have been evaluated and will be recorded in the Company’s audited financial statements for the year ended December 31, 2024. The Company will continue to evaluate subsequent events that occur prior to the date the financial statements for the year ended December 31, 2024 are available to be issued.

    Preliminary 2025 First Quarter Results

    • Net income available to common shareholders of $12.6 million, or $0.57 per diluted share, for the first quarter of 2025
    • Pre-tax, pre-provision earnings of $27.0 million, or $1.12 per diluted share, for the first quarter of 2025

    Discussion of Outlook; President & Chief Executive Officer, Jeffrey G. Ludwig:

    “We are working diligently to resolve the delay in our audited financials, although we want to emphasize that we do not expect a material impact to first quarter tangible equity or regulatory capital levels, and that our unaudited preliminary first quarter results already reflect the previously disclosed accounting methodology changes, for a small third party guaranteed loan portfolio.

    “Improving credit quality remains a strategic priority, and during the first quarter we had no significant new substandard or nonperforming loans identified, with two-thirds of net charge-offs in the quarter taking place within third party programs that were fully reimbursed. The previously disclosed sale of $330 million of GreenSky loans in April 2025, plus tighter underwriting standards in our equipment finance portfolio are expected to significantly reduce exposure to higher-risk portfolios over the balance of 2025.

    “Our underlying profitability trends were favorable in the first quarter, with a strong net interest margin of 3.48%, solid loan growth in the Community Bank, and continued contribution from our wealth management revenue platform. We continue to expect stronger profitability over the balance of 2025 with growing capital ratios.”

    Key Points for First Quarter and Outlook

    Continued Credit Clean-up; Tightened Credit Standards

    • The Company closed its sale of participation interests of consumer loans originated through the GreenSky program. The sale included approximately $330 million, or 89%, of the Company’s GreenSky portfolio. The remaining portfolio will be retained by the Company under a new servicing agreement.
    • Substandard accruing loans and nonperforming loans decreased slightly to $75.7 million and $140.0 million at March 31, 2025, respectively. No significant new substandard or nonperforming loans were identified during the quarter.
    • Net charge-offs were $16.9 million for the quarter, including $11.1 million of fully reimbursed charge-offs related to our third party lending programs. Net charge-offs in our equipment finance portfolio were approximately $4.5 million as we continue to see credit issues primarily in the trucking industry.
    • Provision for credit losses on loans was $8.3 million for the first quarter of 2025, primarily as a result of continued trends in the equipment finance portfolio.
    • Allowance for credit losses on loans was $90.5 million, or 1.80% of total loans.

    The table below summarizes certain information regarding the Company’s loan portfolio asset quality as of March 31, 2025.

    (in thousands)   As of and for the
    Three Months Ended
    March 31, 2025
    Asset Quality    
    Loans 30-89 days past due   $ 43,522  
    Nonperforming loans     140,020  
    Nonperforming assets     146,080  
    Substandard accruing loans     75,668  
    Net charge-offs     16,878  
    Loans 30-89 days past due to total loans     0.87 %
    Nonperforming loans to total loans     2.79 %
    Nonperforming assets to total assets     1.96 %
    Allowance for credit losses to total loans     1.80 %
    Allowance for credit losses to nonperforming loans     64.60 %
    Net charge-offs to average loans     1.35 %
             

    Solid Growth Trends in Community Bank & Wealth Management

    • Total loans at March 31, 2025 were $5.02 billion, a decrease of $149.5 million from December 31, 2024. Key changes in the loan portfolio were as follows:
      • Loans originated by our Community Bank increased $56.8 million, or 1.8%, from December 31, 2024, pipelines remain strong
      • We continue to pursue an intentional decrease in our Specialty Finance loan portfolio, as we tighten credit standards. Balances in this loan portfolio decreased $159.3 million during the quarter.
      • Equipment finance portfolio balances declined $44.9 million during the quarter as we continue to reduce the overall balances in this unit and tighten underwriting standards.
    • Total deposits were $5.94 billion at March 31, 2025, a decrease of $260.8 million from December 31, 2024. The decline in deposits reflects the following:
      • Noninterest-bearing deposits increased $35.1 million in the quarter.
      • Retail deposits increased by $96.8 million through a growth and marketing strategy implemented late in the first quarter of 2025, along with higher average deposits held by retail customers.
      • Brokered deposits, including both money market and time deposits decreased by $115.4 million.
      • Sweep accounts included in interest bearing checking decreased by $115.4 million, of which $80 million was related to normal first quarter distributions for one large depositor with the remainder due to seasonal adjustments.
      • Servicing deposits decreased by $53.9 million.
    • Wealth Management revenue totaled $7.4 million in the first quarter of 2025. Assets under administration were $4.10 billion at March 31, 2025. The Company added six new sales positions in the first quarter of 2025 and continues to experience strong pipelines.

    Net Interest Margin

    • Net interest margin was 3.48%, and we saw a continued decline in the cost of funding. Rate cuts enacted by the Federal Reserve Bank in late 2024 continue to result in a lower cost of deposits for the Company, which fell to 2.29% in the first quarter of 2025.

    The following table summarizes certain factors affecting the Company’s net interest margin for the first quarter of 2025.

        For the Three Months Ended
    (dollars in thousands)   March 31, 2025
    Interest-earning assets   Average Balance   Interest & Fees   Yield/Rate
    Cash and cash equivalents   $ 68,671   $ 718   4.24 %
    Investment securities(1)     1,311,887     15,517   4.80  
    Loans(1)(2)     5,057,394     78,014   6.26  
    Loans held for sale     326,348     4,563   5.67  
    Nonmarketable equity securities     35,614     647   7.37  
    Total interest-earning assets     6,799,914     99,459   5.93  
    Noninterest-earning assets     687,870        
    Total assets   $ 7,487,784        
                 
    Interest-Bearing Liabilities            
    Interest-bearing deposits   $ 5,074,007   $ 34,615   2.77 %
    Short-term borrowings     73,767     700   3.85  
    FHLB advances & other borrowings     299,578     3,163   4.28  
    Subordinated debt     77,752     1,387   7.23  
    Trust preferred debentures     51,283     1,200   9.49  
    Total interest-bearing liabilities     5,576,387     41,065   2.99  
    Noninterest-bearing deposits     1,052,181        
    Other noninterest-bearing liabilities     124,638        
    Shareholders’ equity     734,578        
    Total liabilities and shareholder’s equity   $ 7,487,784        
                 
    Net Interest Margin       $ 58,394   3.48 %
                 
    Cost of Deposits           2.29 %
    (1) Interest income and average rates for tax-exempt loans and investment securities are presented on a tax-equivalent basis, assuming a federal income tax rate of 21%. Tax-equivalent adjustments totaled $0.2 million for the three months ended March 31, 2025.
    (2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
       

    Trends in Noninterest Income and Expense

    • Noninterest income was $17.8 million for the first quarter of 2025 and included a loss on limited partnership investments of $0.6 million and credit enhancement losses of $0.6 million, offset by income from death benefits on life insurance policies of $0.3 million.
    • As of the date of this earnings release, the Company expects noninterest income of approximately $17.0 million to $17.5 million in the near term quarters after consideration of credit enhancement income or losses.
    • Noninterest expense was $48.9 million for the first quarter of 2025 and was impacted by an additional $1.4 million in severance expense and $0.7 million in professional fees. The Company continues to experience higher levels of legal fees and other expenses related to loan collections.
    • As of the date of this earnings release, the Company expects the near term operating expense run rate to be approximately $48.0 million to $49.0 million.

    First Quarter 2025 Financial Highlights and Key Performance Indicators (KPIs):

        As of and for the
    Three Months Ended
    March 31, 2025
    Return on average assets     0.80 %
    Pre-tax, pre-provision return on average assets(1)     1.46 %
    Net interest margin     3.48 %
    Efficiency ratio (1)     64.24 %
    Noninterest expense to average assets     2.65 %
    Net charge-offs to average loans     1.35 %
    Tangible book value per share at period end (1)   $ 21.43  
    Diluted earnings per common share   $ 0.57  
    Common shares outstanding at period end     21,503,036  
    (1) Non-GAAP financial measures. Refer to page 10 for a reconciliation to the comparable GAAP financial measures.
       

    Capital

    At March 31, 2025, Midland States Bank and the Company exceeded all regulatory capital requirements under Basel III, and Midland States Bank met the qualifications to be a ‘‘well-capitalized’’ financial institution, as summarized in the following table:

      As of March 31, 2025
      Midland States Bank   Midland States
    Bancorp, Inc.    		   Minimum Regulatory Requirements (2)
    Total capital to risk-weighted assets 13.10%   13.77%   10.50%
    Tier 1 capital to risk-weighted assets 11.84%   11.43%   8.50%
    Common equity Tier 1 capital to risk-weighted assets 11.84%   8.60%   7.00%
    Tier 1 leverage ratio 9.90%   9.55%   4.00%
    Tangible common equity to tangible assets (1) N/A   6.32%   N/A
    (1) A non-GAAP financial measure. Refer to page 10 for a reconciliation to the comparable GAAP financial measure.
    (2) Includes the capital conservation buffer of 2.5%, as applicable.
       

    About Midland States Bancorp, Inc.

    Midland States Bancorp, Inc. is a community-based financial holding company headquartered in Effingham, Illinois, and is the sole shareholder of Midland States Bank. As of March 31, 2025, the Company had total assets of approximately $7.46 billion, and its Wealth Management Group had assets under administration of approximately $4.10 billion. The Company provides a full range of commercial and consumer banking products and services and business equipment financing, merchant credit card services, trust and investment management, insurance and financial planning services. For additional information, visit https://www.midlandsb.com/ or https://www.linkedin.com/company/midland-states-bank. 

    Non-GAAP Financial Measures

    Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP.

    These non-GAAP financial measures include “Pre-tax, pre-provision earnings,” “Pre-tax, pre-provision diluted earnings per share,” “Pre-tax, pre-provision return on average assets,” “Efficiency ratio,” “Tangible common equity to tangible assets,” and “Tangible book value per share.” The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s funding profile and profitability. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, the measures in this press release may not be comparable to other similarly titled measures as presented by other companies.

    Forward-Looking Statements

    Readers should note that in addition to the historical information contained herein, this press release includes “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company’s plans, objectives, future performance, goals and future earnings levels, including currently anticipated levels of noninterest income and operating expenses. These statements are subject to many risks and uncertainties, including the expected timing and results of the Company’s audit for the year ended December 31, 2024, and the Company’s ongoing evaluation of whether there is an impairment to its goodwill; the fact that the completion and filing of the 2024 Annual Report has taken, and may continue to take, longer than expected; changes in interest rates and other general economic, business and political conditions; the impact of federal trade policy, inflation, increased deposit volatility and potential regulatory developments; changes in the financial markets; changes in business plans as circumstances warrant; changes to U.S. tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “will,” “propose,” “may,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “continue,” or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

    CONTACTS:
    Jeffrey G. Ludwig, President and CEO, at jludwig@midlandsb.com or (217) 342-7321
    Eric T. Lemke, Chief Financial Officer, at elemke@midlandsb.com or (217) 342-7321

    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited)
         
    (dollars in thousands)   As of March 31, 2025
    Assets    
    Cash and cash equivalents   $ 102,006  
    Investment securities     1,368,405  
    Loans     5,018,053  
    Allowance for credit losses on loans     (90,458 )
    Total loans, net     4,927,595  
    Loans held for sale     287,821  
    Premises and equipment, net     86,719  
    Other real estate owned     4,669  
    Loan servicing rights, at lower of cost or fair value     17,278  
    Goodwill     161,904  
    Other intangible assets, net     11,189  
    Company-owned life insurance     212,336  
    Credit enhancement asset     5,614  
    Other assets     272,217  
    Total assets   $ 7,457,753  
         
    Liabilities and Shareholders’ Equity    
    Noninterest-bearing demand deposits   $ 1,090,707  
    Interest-bearing deposits     4,845,727  
    Total deposits     5,936,434  
    Short-term borrowings     40,224  
    FHLB advances and other borrowings     498,000  
    Subordinated debt     77,754  
    Trust preferred debentures     51,358  
    Other liabilities     109,599  
    Total liabilities     6,713,369  
    Total shareholders’ equity     744,384  
    Total liabilities and shareholders’ equity   $ 7,457,753  
             
    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
         
    (in thousands, except per share data)   For the Three Months
    Ended     March 31, 2025
    Net interest income:    
    Interest income   $ 99,251  
    Interest expense     41,065  
    Net interest income     58,186  
    Provision for credit losses on loans     8,250  
    Net interest income after provision for credit losses     49,936  
    Noninterest income:    
    Wealth management revenue     7,350  
    Service charges on deposit accounts     3,305  
    Interchange revenue     3,151  
    Residential mortgage banking revenue     676  
    Income on company-owned life insurance     2,334  
    Credit enhancement (loss) income     (578 )
    Other income     1,525  
    Total noninterest income     17,763  
    Noninterest expense:    
    Salaries and employee benefits     26,416  
    Occupancy and equipment     4,498  
    Data processing     6,919  
    Professional services     2,741  
    Amortization of intangible assets     911  
    FDIC insurance     1,463  
    Other expense     5,977  
    Total noninterest expense     48,925  
    Income before income taxes     18,774  
    Income tax expense     3,975  
    Net income     14,799  
    Preferred stock dividends     2,228  
    Net income available to common shareholders   $ 12,571  
         
    Basic earnings per common share   $ 0.57  
    Diluted earnings per common share   $ 0.57  
             
    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited)(continued)
         
    (in thousands)   As of March 31, 2025
    Loan Portfolio Mix    
    Commercial loans   $ 869,009
    Equipment finance loans     390,276
    Equipment finance leases     373,168
    Total commercial loans and leases     1,632,453
    Commercial real estate     2,592,325
    Construction and land development     264,966
    Residential real estate     373,095
    Consumer     155,214
    Total loans   $ 5,018,053
         
    Loan Portfolio Segment    
    Regions    
    Eastern   $ 897,792
    Northern     747,028
    Southern     711,787
    St. Louis     902,743
    Total Community Bank     3,259,350
    Specialty finance     865,401
    Equipment finance     763,444
    Non-core consumer and other(1)     129,858
    Total loans   $ 5,018,053
         
    Deposit Portfolio Mix    
    Noninterest-bearing demand   $ 1,090,707
    Interest-bearing:    
    Checking     2,161,282
    Money market     1,154,403
    Savings     522,663
    Time     818,732
    Brokered time     188,647
    Total deposits   $ 5,936,434
         
    Deposit Portfolio by Channel    
    Retail   $ 2,846,494
    Commercial     1,074,837
    Public Funds     490,374
    Wealth & Trust     301,251
    Servicing     842,567
    Brokered Deposits     358,063
    Other     22,848
    Total deposits   $ 5,936,434
    (1) Non-core consumer loans refers to consumer loan portfolios originated through third parties.
       
    MIDLAND STATES BANCORP, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)
         
    Pre-Tax, Pre-Provision Earnings Reconciliation
         
        For the Three Months
    Ended March 31, 2025
    Income before income taxes   $ 18,774  
    Provision for credit losses     8,250  
    Pre-tax, pre-provision earnings   $ 27,024  
    Pre-tax, pre-provision earnings per diluted share   $ 1.12  
    Pre-tax, pre-provision return on average assets     1.46 %
         
    Efficiency Ratio Reconciliation
         
    (dollars in thousands)   For the Three Months
    Ended     March 31, 2025
    Noninterest expense – GAAP   $ 48,925  
         
    Net interest income – GAAP   $ 58,186  
    Effect of tax-exempt income     208  
    Adjusted net interest income     58,394  
         
    Noninterest income – GAAP     17,763  
         
    Adjusted total revenue   $ 76,157  
         
    Efficiency ratio     64.24 %
             
    Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share
         
    (dollars in thousands, except per share data)   As of March 31, 2025
    Shareholders’ Equity to Tangible Common Equity
    Total shareholders’ equity—GAAP   $ 744,384  
    Adjustments:    
    Preferred Stock     (110,548 )
    Goodwill     (161,904 )
    Other intangible assets, net     (11,189 )
    Tangible common equity     460,743  
         
    Total Assets to Tangible Assets:    
    Total assets—GAAP   $ 7,457,753  
    Adjustments:    
    Goodwill     (161,904 )
    Other intangible assets, net     (11,189 )
    Tangible assets   $ 7,284,660  
         
    Common Shares Outstanding     21,503,036  
         
    Tangible Common Equity to Tangible Assets     6.32 %
    Tangible Book Value Per Share   $ 21.43  

    The MIL Network –

    May 1, 2025

  • MIL-OSI Security: Tigerton Man Sentenced for Shotgun Assault on a Postal Carrier

    Source: Office of United States Attorneys

    Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on April 30, 2025, Benjamin L. Joos (age 44) of Tigerton, Wisconsin, was sentenced to 18 months in federal prison for firing a shotgun at a U.S. Postal Carrier while she was on duty, injuring her and damaging her vehicle.

    According to court records, the victim was delivering mail at approximately 3:00 p.m. on September 24, 2024, when she heard her passenger side window shatter and felt pain in her arms. She observed Joos holding a shotgun which was pointed at her. Joos was yelling “get away from my box” and “leave my mail alone.” The victim quickly left the area and notified law enforcement. By his own admission, Joos had consumed “4 to 5 whisky and cokes” prior to the incident. Hours later his blood alcohol level was determined to be 0.178 g/100ml, more than twice the legal limit for a presumption of intoxication.

    At the sentencing hearing, Senior U.S. District Court Judge William C. Griesbach noted Joos’s lack of criminal record, strong community engagement, and a positive work history. However, Judge Griesbach determined that the serious nature of the offense and the profound effect his actions had on the victim required a prison term. Following his 18-month prison sentence, Joos will serve 3 years on supervised release. He was also ordered to pay over $10,000 in restitution to the victim.

    This case was investigated by the Shawano County Sheriff’s Office and the U.S. Postal Inspection Service. It was prosecuted by Assistant United States Attorney Daniel R. Humble.

    # #  #

    For Additional Information Contact:

    Public Information Officer

    Kenneth.Gales@usdoj.gov

    414-297-1700

     

    Follow us on Twitter

    MIL Security OSI –

    May 1, 2025

  • MIL-OSI Security: Fort Hall Man Sentenced to 100 Months in Federal Prison for Fentanyl Distribution

    Source: Office of United States Attorneys

    POCATELLO – Creston Dale Kindness, 42, of Fort Hall, was sentenced to 100 months in federal prison for possession with intent to distribute fentanyl, Acting U.S. Attorney Justin Whatcott announced today. 

    According to court records, on January 21, 2024, officers observed Kindness driving at a high rate of speed. A lengthy pursuit followed, and the vehicle stopped when it became stuck in the snow. Officers arrested Kindness and took him to jail. At the jail, a sheriff’s deputy observed Kindness make a video call to a female friend. Kindness told the friend that he threw a bag with her name on it out of the car window during the pursuit. Kindness gave her the location and told her to go get the bag. Officers responded and found the bag. The bag contained a large amount of cash and 350 grams of fentanyl pills.

    Kindness pleaded guilty to possession with intent to distribute fentanyl on June 24, 2024. Chief U.S. District Judge David C. Nye also ordered Kindness to serve five years of supervised release following his prison sentence. 

    Acting U.S. Attorney Whatcott commended the work of the Federal Bureau of Investigation, the Bingham County Sheriff’s Office, the Bingham, Blackfoot, Shelley Investigation Unit, the Bannock County Sheriff’s Office, the Fort Hall Police Department, and the Idaho State Police. Assistant U.S. Attorney Jack Haycock prosecuted the case.

    ###

    MIL Security OSI –

    May 1, 2025

  • MIL-OSI: Medallion Bank Reports 2025 First Quarter Results and Declares Series F Preferred Stock Dividend

    Source: GlobeNewswire (MIL-OSI)

    SALT LAKE CITY, April 30, 2025 (GLOBE NEWSWIRE) — Medallion Bank (Nasdaq: MBNKP, the “Bank”), an FDIC-insured bank providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners, announced today its results for the quarter ended March 31, 2025. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

    2025 First Quarter Highlights

    • Net income of $15.6 million, compared to $14.5 million in the prior year quarter.
    • Net interest income of $52.2 million, compared to $48.2 million in the prior year quarter.
    • Net interest margin of 8.35%, compared to 8.59% in the prior year quarter.
    • Total provision for credit losses was $19.0 million, compared to $17.0 million in the prior year quarter.
    • Annualized net charge-offs were 3.41% of average loans outstanding, compared to 3.38% in the prior year quarter.
    • Annualized return on assets and return on equity were 2.51% and 16.49%, respectively, compared to 2.59% and 16.47%, respectively, for the prior year period.
    • The total loan portfolio grew 6% from March 31, 2024 to $2.2 billion as of March 31, 2025.
    • Total assets were $2.5 billion and the Tier 1 leverage ratio was 16.0% at March 31, 2025.

    Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “Our performance was strong in the first quarter. Our earnings were $15.6 million, which was 8% higher than the prior year quarter and in line with the fourth quarter 2024. Economic uncertainty reduced demand in both recreation and home improvement lending, while strategic partnership volumes grew to $136 million from $124 million in the fourth quarter as those relationships continued to mature. Charge-offs and delinquencies were down from their year-end peaks, but given recent market volatility, and potential tariff and economic changes, we added qualitative factors to our reserve that increased credit loss provisions. Following the end of the quarter, we completed an initial sale of $53 million in recreation loans at a premium to par value. We were pleased with the execution of this sale and continue to monitor the market for potential loan sale opportunities. Overall, we view the quarter as a good mix of conservative origination volume and improving credit performance to start 2025.”

    Recreation Lending Segment

    • Excluding loans held for sale, the Bank’s recreation loan portfolio grew 5% to $1.432 billion as of March 31, 2025, compared to $1.365 billion at March 31, 2024. Loan originations were $86.8 million, compared to $105.8 million in the prior year quarter.
    • Recreation loans were 64% of loans receivable as of March 31, 2025, essentially unchanged from 64% at March 31, 2024.
    • Net interest income was $39.2 million, compared to $35.6 million in the prior year quarter.
    • Delinquencies 30 days or more past due were $68.2 million, or 4.76%, of recreation loans as of March 31, 2025, compared to $55.5 million, or 4.06%, at March 31, 2024.
    • Annualized net charge-offs were 4.67% of average recreation loans outstanding, compared to 4.36% in the prior year quarter.
    • The provision for recreation credit losses was $16.9 million and the allowance for credit losses was 5.00% of the outstanding balance, compared to $17.0 million and 4.40% of the outstanding balance in the prior year quarter.

    Home Improvement Lending Segment

    • The Bank’s home improvement loan portfolio grew 8% to $812.4 million as of March 31, 2025, compared to $752.3 million at March 31, 2024. Loan originations were $48.8 million, compared to $51.6 million in the prior year quarter.
    • Home improvement loans were 36% of loans receivable as of March 31, 2025, compared to 35% at March 31, 2024.
    • Net interest income was $13.3 million, compared to $12.4 million in the prior year quarter.
    • Delinquencies 30 days or more past due were $8.3 million, or 1.02%, of home improvement loans as of March 31, 2025, compared to $6.5 million, or 0.87%, at March 31, 2024.
    • Annualized net charge-offs were 1.55% of average home improvement loans outstanding, compared to 2.12% in the prior year quarter.
    • The provision for home improvement credit losses was $2.8 million and the allowance for credit losses was 2.49% of the outstanding balance, compared to $0.9 million and 2.38% of the outstanding balance in the prior year quarter.

    Series F Preferred Stock Dividend

    On April 24, 2025, the Bank’s Board of Directors declared a quarterly cash dividend of $0.67982 per share on the Bank’s Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, which trades on the Nasdaq Capital Market under the ticker symbol “MBNKP.” The dividend is based on the dividend rate of 10.75761%, as determined by the Bank’s calculation agent, and is payable on July 1, 2025, to holders of record at the close of business on June 16, 2025.

    About Medallion Bank

    Medallion Bank specializes in providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners. The Bank works directly with thousands of dealers, contractors and financial service providers serving their customers throughout the United States. Medallion Bank is a Utah-chartered, FDIC-insured industrial bank headquartered in Salt Lake City and is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

    For more information, visit www.medallionbank.com

    Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, costs, sales (including loan sales), net investment income, earnings, returns and growth. These statements are often, but not always, made through the use of words or phrases such as “remains,” “anticipated,” “continue,” “expect,” “may,” “maintain,” “potential” or the negative versions of these words or other comparable words or phrases of a future or forward-looking nature. These statements may relate to our future earnings, returns, capital levels, sources of funding, growth prospects, asset quality and pursuit and execution of our strategy. Medallion Bank’s actual results may differ significantly from the results discussed in such forward-looking statements. For a description of certain risks to which Medallion Bank is or may be subject, please refer to the factors discussed under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” included in Medallion Bank’s Form 10-K for the year ended December 31, 2024, and in its Quarterly Reports on Form 10-Q, filed with the FDIC. Medallion Bank’s Form 10-K, Form 10-Qs and other FDIC filings are available in the Investor Relations section of Medallion Bank’s website. Medallion Bank’s financial results for any period are not necessarily indicative of Medallion Financial Corp.’s results for the same period.

    Company Contact:
    Investor Relations
    212-328-2176
    InvestorRelations@medallion.com

    MEDALLION BANK
    STATEMENTS OF OPERATIONS
    (UNAUDITED)
      Three Months Ended March 31,
    (In thousands)   2025     2024  
    Interest income      
    Loan interest including fees $ 70,617   $ 61,424  
    Investments   1,217     1,544  
    Total interest income   71,834     62,968  
    Interest expense   19,617     14,753  
    Net interest income   52,217     48,215  
    Provision for credit losses   19,038     17,002  
    Net interest income after provision for credit losses   33,179     31,213  
    Other non-interest income   1,681     602  
    Non-interest expense      
    Salaries and benefits   5,348     4,984  
    Loan servicing   3,154     2,867  
    Collection costs   1,492     1,404  
    Regulatory fees   821     977  
    Professional fees   610     432  
    Information technology   322     267  
    Occupancy and equipment   727     207  
    Other   910     752  
    Total non-interest expense   13,384     11,890  
    Income before income taxes   21,476     19,925  
    Provision for income taxes   5,837     5,445  
    Net income $ 15,639   $ 14,480  
    Less: Preferred stock dividends   1,512     1,512  
    Net income attributable to common shareholder $ 14,127   $ 12,968  
                 
    MEDALLION BANK
    BALANCE SHEETS
               
      (UNAUDITED)       (UNAUDITED)
               
    (In thousands) March 31, 2025   December 31, 2024   March 31, 2024
    Assets          
    Cash and federal funds sold $ 115,108     $ 126,196     $ 136,705  
    Investment securities, available-for-sale   60,424       54,805       53,038  
    Loans held for sale, at the lower of amortized cost or fair value   124,733       128,226       —  
               
    Loan receivables, inclusive of net deferred loan acquisition cost and fees   2,243,991       2,249,614       2,121,180  
    Allowance for credit losses   (91,807 )     (91,638 )     (78,648 )
    Loans, net   2,152,184       2,157,976       2,042,532  
    Loan collateral in process of foreclosure   3,174       3,326       3,263  
    Fixed assets and right-of-use lease assets, net   8,543       9,126       8,417  
    Deferred tax assets   13,860       14,036       12,500  
    Accrued interest receivable   14,339       15,083       13,405  
    Other assets   38,598       40,325       36,656  
    Total assets $ 2,530,963     $ 2,549,099     $ 2,306,516  
    Liabilities and Shareholders’ Equity          
    Liabilities          
    Deposits and other funds borrowed $ 2,087,828     $ 2,125,071     $ 1,899,061  
    Accrued interest payable   4,557       5,586       4,191  
    Income tax payable   23,853       17,951       26,336  
    Other liabilities   22,702       17,204       17,837  
    Due to affiliates   881       910       481  
    Total liabilities   2,139,821       2,166,722       1,947,906  
    Shareholder’s Equity          
    Series E Preferred stock   26,303       26,303       26,303  
    Series F Preferred stock   42,485       42,485       42,485  
    Common stock   1,000       1,000       1,000  
    Additional paid in capital   77,500       77,500       77,500  
    Accumulated other comprehensive loss, net of tax   (3,842 )     (4,480 )     (4,680 )
    Retained earnings   247,696       239,569       216,002  
    Total shareholders’ equity   391,142       382,377       358,610  
    Total liabilities and shareholders’ equity $ 2,530,963     $ 2,549,099     $ 2,306,516  

    The MIL Network –

    May 1, 2025

  • MIL-OSI: Credit Acceptance Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Southfield, Michigan, April 30, 2025 (GLOBE NEWSWIRE) — Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $106.3 million, or $8.66 per diluted share, for the three months ended March 31, 2025. Adjusted net income, a non-GAAP financial measure, for the three months ended March 31, 2025 was $114.8 million, or $9.35 per diluted share. The following table summarizes our financial results:

    (In millions, except per share data)   For the Three Months Ended
        March 31, 2025   December 31, 2024   March 31, 2024
    GAAP net income   $         106.3    $         151.9    $         64.3 
    GAAP net income per diluted share   $         8.66    $         12.26    $         5.08 
                 
    Adjusted net income   $         114.8    $         126.0    $         117.4 
    Adjusted net income per diluted share   $         9.35    $         10.17    $         9.28 

    Our results and achievements for the first quarter of 2025 included the following:

    • A modest decline in forecasted collection rates, which decreased forecasted net cash flows from our loan portfolio by $20.9 million, or 0.2%, and slower forecasted net cash flow timing.
    • An 11.0% increase in the average balance of our loan portfolio from the first quarter of 2024 to $7.9 billion, which is our largest ever.
    • A decline in Consumer Loan assignment unit and dollar volumes of 10.1% and 15.5%, respectively, as compared to the first quarter of 2024.
    • The repurchase of approximately 329,000 shares, or 2.7% of the shares outstanding at the beginning of the quarter.
    • The enrollment of 1,617 new dealers with 10,789 active dealers during the quarter.
    • $68.0 million in dealer holdback and accelerated dealer holdback payments to dealers.
    • Maintained a strong liquidity position, with over $2.2 billion in unrestricted cash and cash equivalents and unused and available revolving lines of credit as of March 31, 2025.
    • Named a Top Workplaces USA award winner for the fifth year in a row, with a #2 ranking among companies of our size.

    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 March 31, 2025, with the aggregated forecasts as of December 31, 2024, 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   March 31, 2025   December 31, 2024   Initial
    Forecast    		   December 31, 2024   Initial
    Forecast
    2016           63.9  %           63.9  %           65.4  %           0.0  %           -1.5  %
    2017           64.8  %           64.7  %           64.0  %           0.1  %           0.8  %
    2018           65.5  %           65.5  %           63.6  %           0.0  %           1.9  %
    2019           67.2  %           67.2  %           64.0  %           0.0  %           3.2  %
    2020           67.9  %           67.7  %           63.4  %           0.2  %           4.5  %
    2021           63.9  %           63.8  %           66.3  %           0.1  %           -2.4  %
    2022           60.0  %           60.2  %           67.5  %           -0.2  %           -7.5  %
    2023           64.3  %           64.3  %           67.5  %           0.0  %           -3.2  %
    2024           66.3  %           66.5  %           67.2  %           -0.2  %           -0.9  %
    2025           66.0  %           —              66.2  %           —              -0.2  %

    (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.

    For the three months ended March 31, 2025, forecasted collection rates improved for Consumer Loans assigned in 2020, declined for Consumer Loans assigned in 2022, 2024, and 2025, and were generally consistent with expectations at the start of the period for all other assignment years presented.

    The changes to our forecast of future net cash flows from our Loan portfolio (forecasted collections less forecasted dealer holdback payments) for each of the last five quarters are shown in the following table:

    (Dollars in millions)   Decrease in Forecasted Net Cash Flows
    Three Months Ended   Total Loans   % Change from Forecast at Beginning of Period
    March 31, 2024   $         (30.8)             -0.3  %
    June 30, 2024             (189.3)             -1.7  %
    September 30, 2024             (62.8)             -0.6  %
    December 31, 2024             (31.1)             -0.3  %
    March 31, 2025             (20.9)             -0.2  %

    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)
    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     26,497     11,961   61   386,126     4,618.4
          2025 (3)     25,188     11,096   60   100,278     1,112.7

    (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 the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.
    (3)   Represents activity for the three months ended March 31, 2025. Information in this table for each of the years prior to 2025 represents activity for all 12 months of that year.

    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 March 31, 2025, 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   March 31, 2025   Initial Forecast   Advance % (1)   March 31, 2025   Initial Forecast   % of Forecast
    Realized (2)
    2016           63.9  %           65.4  %           43.8  %           20.1  %           21.6  %           99.6  %
    2017           64.8  %           64.0  %           43.2  %           21.6  %           20.8  %           99.3  %
    2018           65.5  %           63.6  %           43.5  %           22.0  %           20.1  %           98.8  %
    2019           67.2  %           64.0  %           44.0  %           23.2  %           20.0  %           97.5  %
    2020           67.9  %           63.4  %           43.9  %           24.0  %           19.5  %           93.9  %
    2021           63.9  %           66.3  %           46.0  %           17.9  %           20.3  %           86.3  %
    2022           60.0  %           67.5  %           47.4  %           12.6  %           20.1  %           70.6  %
    2023           64.3  %           67.5  %           46.2  %           18.1  %           21.3  %           49.3  %
    2024           66.3  %           67.2  %           45.1  %           21.2  %           22.1  %           22.9  %
    2025           66.0  %           66.2  %           44.2  %           21.8  %           22.0  %           2.5  %

    (1)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the 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.

    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 March 31, 2025 and the advance rate ranges from 12.6% to 24.0%, 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 spreads with respect to 2021 through 2023 Consumer Loans have 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 2025 Consumer Loans relative to 2024 Consumer Loans as of March 31, 2025 was primarily a result of Consumer Loan performance, as the performance of 2024 Consumer Loans has been lower than our initial estimates by a greater margin than 2025 Consumer Loans.

    The following table compares our forecast of aggregate Consumer Loan collection rates as of March 31, 2025 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   March 31,
    2025    		   Initial
    Forecast    		   Variance   March 31,
    2025    		   Initial
    Forecast    		   Variance
    2016           63.1  %           65.1  %           -2.0  %           66.1  %           66.5  %           -0.4  %
    2017           64.1  %           63.8  %           0.3  %           66.4  %           64.6  %           1.8  %
    2018           64.9  %           63.6  %           1.3  %           66.8  %           63.5  %           3.3  %
    2019           66.9  %           63.9  %           3.0  %           67.9  %           64.2  %           3.7  %
    2020           67.7  %           63.3  %           4.4  %           68.1  %           63.6  %           4.5  %
    2021           63.6  %           66.3  %           -2.7  %           64.4  %           66.3  %           -1.9  %
    2022           59.2  %           67.3  %           -8.1  %           61.9  %           68.0  %           -6.1  %
    2023           63.0  %           66.8  %           -3.8  %           67.7  %           69.4  %           -1.7  %
    2024           65.2  %           66.3  %           -1.1  %           70.6  %           70.7  %           -0.1  %
    2025           64.7  %           64.9  %           -0.2  %           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 March 31, 2025 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 %
    2016           63.1  %           42.1  %           21.0  %           66.1  %           48.6  %           17.5  %
    2017           64.1  %           42.1  %           22.0  %           66.4  %           45.8  %           20.6  %
    2018           64.9  %           42.7  %           22.2  %           66.8  %           45.2  %           21.6  %
    2019           66.9  %           43.1  %           23.8  %           67.9  %           45.6  %           22.3  %
    2020           67.7  %           43.0  %           24.7  %           68.1  %           45.5  %           22.6  %
    2021           63.6  %           45.1  %           18.5  %           64.4  %           47.7  %           16.7  %
    2022           59.2  %           46.4  %           12.8  %           61.9  %           50.1  %           11.8  %
    2023           63.0  %           44.8  %           18.2  %           67.7  %           49.8  %           17.9  %
    2024           65.2  %           44.1  %           21.1  %           70.6  %           48.9  %           21.7  %
    2025           64.7  %           42.8  %           21.9  %           70.5  %           49.1  %           21.4  %

    (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 the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the 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 March 31, 2025 on 2025 dealer loans was 21.9%, as compared to a spread of 21.1% on 2024 dealer loans. The increase was primarily a result of Consumer Loan performance, as the performance of 2024 dealer loans has been lower than our initial estimates by a greater margin than 2025 dealer loans.

    The spread as of March 31, 2025 on 2025 purchased loans was 21.4%, as compared to a spread of 21.7% on 2024 purchased loans. The decrease was primarily a result of a lower initial spread on 2025 purchased loans, due to a higher advance rate.

    Consumer Loan Volume

    The following table summarizes changes in Consumer Loan assignment volume in each of the last five 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, 2024           24.1  %           20.2  %
    June 30, 2024           20.9  %           16.3  %
    September 30, 2024           17.7  %           12.2  %
    December 31, 2024           0.3  %           -4.9  %
    March 31, 2025           -10.1  %           -15.5  %

    (1)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the 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 and (2) the amount of capital available to fund new loans. Our pricing strategy is intended to maximize the amount of economic profit we generate, within the confines of capital constraints.

    Unit and dollar volumes declined 10.1% and 15.5%, respectively, during the first quarter of 2025 as the number of active dealers declined 0.1% and the average unit volume per active dealer declined 9.7%. Dollar volume declined by more than unit volume during the first quarter of 2025 due to a decrease in the average advance paid, resulting from decreases in the average size of Consumer Loans assigned and the average advance rate. Unit volume for the 28-day period ended April 28, 2025 decreased 9.8% compared to the same period in 2024.

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

      For the Three Months Ended March 31,    
      2025   2024   % Change
    Consumer Loan unit volume         100,278            111,488            -10.1  %
    Active dealers (1)         10,789            10,805            -0.1  %
    Average volume per active dealer         9.3            10.3            -9.7  %
               
    Consumer Loan unit volume from dealers active both periods         80,926            93,406            -13.4  %
    Dealers active both periods         7,067            7,067            —   
    Average volume per dealer active both periods         11.5            13.2            -13.4  %
               
    Consumer loan unit volume from dealers not active both periods         19,352            18,082            7.0  %
    Dealers not active both periods         3,722            3,738            -0.4  %
    Average volume per dealer not active both periods         5.2            4.8            8.3  %

    (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 March 31,    
      2025     2024     % Change
    Consumer Loan unit volume from new active dealers         4,229              5,193              -18.6  %
    New active dealers (1)         1,195              1,310              -8.8  %
    Average volume per new active dealer         3.5              4.0              -12.5  %
               
    Attrition (2)         -16.2  %           -16.0  %    

    (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 five quarters:

        Unit Volume   Dollar Volume (1)
    Three Months Ended   Dealer Loans   Purchased Loans   Dealer Loans   Purchased Loans
    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  %
    December 31, 2024           78.7  %           21.3  %           77.7  %           22.3  %
    March 31, 2025           77.0  %           23.0  %           75.1  %           24.9  %

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

    As of March 31, 2025 and December 31, 2024, the net dealer loans receivable balance was 72.7% and 72.3%, respectively, of the total net loans receivable balance.

    Financial Results

    (Dollars in millions, except per share data) For the Three Months Ended March 31,    
        2025     2024   % Change
    GAAP average debt $         6,398.3    $         5,306.8            20.6  %
    GAAP average shareholders’ equity           1,782.0              1,678.5            6.2  %
    Average capital $         8,180.3    $         6,985.3            17.1  %
    GAAP net income $         106.3    $         64.3            65.3  %
    Diluted weighted average shares outstanding   12,279,446      12,646,529            -2.9  %
    GAAP net income per diluted share $         8.66    $         5.08            70.5  %

    The increase in GAAP net income for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily a result of the following:

    • An increase in finance charges of 12.3% ($57.5 million), primarily due to an increase in the average balance of our loan portfolio.
    • A decrease in provision for credit losses of 13.0% ($24.1 million), due to:
      • A decrease in provision for credit losses on forecast changes of $10.9 million, due to a smaller decline in Consumer Loan performance.
      • A decrease in provision for credit losses on new Consumer Loan assignments of $13.2 million, due to a 10.1% decrease in Consumer Loan assignment unit volume and a 3.7% decrease in the average provision per Consumer Loan assignment. The decrease in average provision per new Consumer Loan assignment was primarily due to a decrease in the average advance rate for 2025 Consumer Loans.
    • An increase in operating expenses of 7.5% ($9.4 million), primarily due to an increase in salaries and wages expense of 12.9% ($10.1 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, (ii) stock-based compensation expense, primarily due to equity awards granted to our executive officers and senior leaders, and (iii) fringe benefits, primarily due to higher medical claims.
    • An increase in provision for income taxes of 60.2% ($13.3 million), primarily due to an increase in pre-tax income.
    • An increase in interest expense of 24.0% ($22.2 million), primarily due to an increase in our average outstanding debt balance, primarily due to borrowings used to fund the growth of our loan portfolio and stock repurchases.

    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 months ended March 31, 2025, compared to the same period in 2024, include the following:

    (Dollars in millions, except per share data) For the Three Months Ended March 31,    
        2025       2024     % Change
    Adjusted average capital $         8,882.6      $         7,507.8              18.3  %
    Adjusted net income $         114.8      $         117.4              -2.2  %
    Adjusted interest expense (after-tax) $         88.3      $         71.2              24.0  %
    Adjusted net income plus adjusted interest expense (after-tax) $         203.1      $         188.6              7.7  %
    Adjusted return on capital           9.2  %             10.1  %           -8.9  %
    Cost of capital           7.6  %             7.3  %           4.1  %
    Economic profit $         35.3      $         51.4              -31.3  %
    Diluted weighted average shares outstanding   12,279,446        12,646,529              -2.9  %
    Adjusted net income per diluted share $         9.35      $         9.28              0.8  %
    Economic profit per diluted share $         2.87      $         4.06              -29.3  %

    Economic profit decreased 31.3% for the three months ended March 31, 2025, as compared to the same period in 2024. 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 months ended March 31, 2025, as compared to the same period in 2024:

    (In millions) Year over Year Change in Economic Profit
      For the Three Months Ended March 31, 2025
    Decrease in adjusted return on capital $         (20.0)  
    Increase in cost of capital           (5.5)  
    Increase in adjusted average capital           9.4   
    Decrease in economic profit $         (16.1)  

    The decrease in economic profit for the three months ended March 31, 2025, as compared to the same period in 2024, 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 140 basis points, primarily due to both a decline in forecasted collection rates and slower forecasted net cash flow timing throughout 2024 and the first quarter of 2025. The slower forecasted net cash flow timing was primarily due to lower-than-expected Consumer Loan prepayments, which remain below historical averages.
      • Slower growth in operating expenses increased our adjusted return on capital by 50 basis points as operating expenses grew by 7.5% while adjusted average capital grew by 18.3%.
    • An increase in adjusted average capital of 18.3%, 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
        Mar. 31, 2025   Dec. 31, 2024   Sept. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sept. 30, 2023   Jun. 30, 2023
    Adjusted finance charges as a percentage of adjusted average loans receivable (1)           16.7  %           16.5  %           16.4  %           17.8  %           17.6  %           17.9  %           18.5  %           19.3  %
    Adjusted revenue as a percentage of adjusted average capital (1)           18.0  %           18.4  %           18.2  %           19.6  %           19.8  %           20.2  %           20.7  %           21.2  %
    Operating expenses as a percentage of adjusted average capital (1)           6.1  %           5.6  %           6.2  %           6.2  %           6.7  %           6.3  %           6.3  %           6.9  %
    Adjusted return on capital (1)           9.2  %           9.8  %           9.3  %           10.3  %           10.1  %           10.6  %           11.1  %           11.1  %
    Percentage change in adjusted average capital compared to the same period in the prior year           18.3  %           19.3  %           19.4  %           17.6  %           14.6  %           11.5  %           8.8  %           6.2  %

    (1)   Annualized.

    The decrease in adjusted return on capital for the three months ended March 31, 2025, as compared to the three months ended December 31, 2024, was primarily due to:

    • Faster growth in operating expenses, which decreased adjusted return on capital by 40 basis points, as operating expenses increased by 11.4% while adjusted average capital grew 2.9%. The $13.9 million increase in operating expenses was primarily due to the seasonal impact of the following:
      • An increase in fringe benefits, primarily due to an increase in accrued paid time off.
      • An increase in payroll taxes as a result of both taxes that are subject to income limitations and the taxes on the annual vesting of equity awards during the first quarter of the year.
      • An increase in sales commissions driven by higher unit volume during the first quarter of the year.
    • A decrease in adjusted revenue as a percentage of adjusted average capital, primarily due to adjusted average capital growing faster than adjusted average loans receivable due to an increase in cash and cash equivalents, partially offset by an increase in the yield on our adjusted loan portfolio. The increase in cash and cash equivalents was primarily due to the timing of recently completed debt issuances and a decline in Consumer Loan assignment volume.

    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
        Mar. 31, 2025   Dec. 31, 2024   Sept. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sept. 30, 2023   Jun. 30, 2023
    Adjusted net income                                
    GAAP net income (loss)   $         106.3      $         151.9      $         78.8      $         (47.1)     $         64.3      $         93.6      $         70.8      $         22.2   
    Floating yield adjustment (after-tax)             (118.9)               (116.8)               (115.1)               (96.1)               (92.4)               (83.9)               (76.4)               (73.9)  
    GAAP provision for credit losses (after-tax)             124.6                95.0                142.2                246.9                143.2                126.1                142.1                192.9   
    Loss on sale of building (after-tax) (1)             —                —                —                18.3                —                —                —                —          
    Senior notes adjustment (after-tax)             —                —                —                —                —                (2.6)               (0.5)               (0.6)  
    Income tax adjustment (2)             2.8                (4.1)               3.2                4.4                2.3                (4.1)               3.5                (0.6)  
    Adjusted net income   $         114.8      $         126.0      $         109.1      $         126.4      $         117.4      $         129.1      $         139.5      $         140.0   
                                     
    Adjusted net income per diluted share (3)   $         9.35      $         10.17      $         8.79      $         10.29      $         9.28      $         10.06      $         10.70      $         10.69   
    Diluted weighted average shares outstanding     12,279,446        12,388,072        12,415,143        12,282,174        12,646,529        12,837,181        13,039,638        13,099,961   
                                     
    Adjusted revenue                                
    GAAP total revenue   $         571.1      $         565.9      $         550.3      $         538.2      $         508.0      $         491.6      $         478.6      $         477.9   
    Floating yield adjustment             (154.5)               (151.8)               (149.4)               (124.8)               (120.0)               (108.9)               (99.3)               (96.1)  
    GAAP provision for claims             (16.1)               (17.7)               (18.5)               (20.3)               (17.0)               (16.6)               (16.5)               (19.7)  
    Adjusted revenue   $         400.5      $         396.4      $         382.4      $         393.1      $         371.0      $         366.1      $         362.8      $         362.1   
                                     
    Adjusted average capital                                
    GAAP average debt   $         6,398.3      $         6,202.5      $         6,071.1      $         5,818.2      $         5,306.8      $         4,986.3      $         4,831.4      $         4,730.3   
    Deferred debt issuance adjustment             —                —                —                —                —                20.9                24.5                24.0   
    Senior notes debt adjustment             —                —                —                —                —                2.8                3.4                3.4   
    Adjusted average debt             6,398.3                6,202.5                6,071.1                5,818.2                5,306.8                5,010.0                4,859.3                4,757.7   
    GAAP average shareholders’ equity             1,782.0                1,712.3                1,594.2                1,623.5                1,678.5                1,734.3                1,731.3                1,752.6   
    Senior notes equity adjustment             —                —                —                —                —                2.0                2.9                3.4   
    Income tax adjustment (4)             (118.5)               (118.5)               (118.5)               (118.5)               (118.5)               (118.5)               (118.5)               (118.5)  
    Floating yield adjustment             820.8                837.0                840.8                710.1                641.0                606.5                548.9                433.9   
    Adjusted average equity             2,484.3                2,430.8                2,316.5                2,215.1                2,201.0                2,224.3                2,164.6                2,071.4   
    Adjusted average capital   $         8,882.6      $         8,633.3      $         8,387.6      $         8,033.3      $         7,507.8      $         7,234.3      $         7,023.9      $         6,829.1   
    Adjusted revenue as a percentage of adjusted average capital (5)             18.0  %             18.4  %             18.2  %             19.6  %             19.8  %             20.2  %             20.7  %             21.2  %
                                     
    Adjusted loans receivable                                
    GAAP loans receivable, net   $         7,978.2      $         7,850.3      $         7,781.5      $         7,547.7      $         7,345.6      $         6,955.3      $         6,780.5      $         6,610.3   
    Floating yield adjustment             1,079.8                1,072.4                1,100.8                1,065.6                869.7                803.8                748.9                663.7   
    Adjusted loans receivable   $         9,058.0      $         8,922.7      $         8,882.3      $         8,613.3      $         8,215.3      $         7,759.1      $         7,529.4      $         7,274.0   
                                     
    Adjusted loan yield                                
    GAAP finance charges   $         526.7      $         518.2      $         507.6      $         497.7      $         469.2      $         451.6      $         441.7      $         441.0   
    Floating yield adjustment             (154.5)               (151.8)               (149.4)               (124.8)               (120.0)               (108.9)               (99.3)               (96.1)  
    Adjusted finance charges   $         372.2      $         366.4      $         358.2      $         372.9      $         349.2      $         342.7      $         342.4      $         344.9   
                                     
    GAAP average loans receivable, net   $         7,882.4      $         7,831.4      $         7,690.9      $         7,499.2      $         7,101.3      $         6,867.8      $         6,690.8      $         6,596.6   
    Average floating yield adjustment             1,048.9                1,071.4                1,072.2                903.2                819.7                775.6                701.0                552.8   
    Adjusted average loans receivable   $         8,931.3      $         8,902.8      $         8,763.1      $         8,402.4      $         7,921.0      $         7,643.4      $         7,391.8      $         7,149.4   
    Adjusted finance charges as a percentage of adjusted average loans receivable (5)             16.7  %             16.5  %             16.4  %             17.8  %             17.6  %             17.9  %             18.5  %             19.3  %

    (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
        Mar. 31, 2025   Dec. 31, 2024   Sept. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sept. 30, 2023   Jun. 30, 2023
    Adjusted interest expense (after-tax)                                
    GAAP interest expense   $         114.7      $         111.3      $         111.2      $         104.5      $         92.5      $         78.8      $         70.5      $         62.8   
    Senior notes adjustment             —                 —                —                —                —                3.5                0.7                0.7   
    Adjusted interest expense (pre-tax)             114.7                111.3                111.2                104.5                92.5                82.3                71.2                63.5   
    Adjustment to record tax effect (1)             (26.4)               (25.6)               (25.6)               (24.0)               (21.3)               (18.9)               (16.4)               (14.6)  
    Adjusted interest expense (after-tax)   $         88.3      $         85.7      $         85.6      $         80.5      $         71.2      $         63.4      $         54.8      $         48.9   
                                     
    Adjusted return on capital (2)                                
    Adjusted net income   $         114.8      $         126.0      $         109.1      $         126.4      $         117.4      $         129.1      $         139.5      $         140.0   
    Adjusted interest expense (after-tax)             88.3                85.7                85.6                80.5                71.2                63.4                54.8                48.9   
    Adjusted net income plus adjusted interest expense (after-tax)   $         203.1      $         211.7      $         194.7      $         206.9      $         188.6      $         192.5      $         194.3      $         188.9   
                                     
    Reconciliation of GAAP return on equity to adjusted return on capital (5)                                
    GAAP return on equity (3)             23.9  %             35.5  %             19.8  %             -11.6  %             15.3  %             21.6  %             16.4  %             5.1  %
    Non-GAAP adjustments             -14.7  %             -25.7  %             -10.5  %             21.9  %             -5.2  %             -11.0  %             -5.3  %             6.0  %
    Adjusted return on capital (2)             9.2  %             9.8  %             9.3  %             10.3  %             10.1  %             10.6  %             11.1  %             11.1  %
                                     
    Economic profit                                
    Adjusted return on capital             9.2  %             9.8  %             9.3  %             10.3  %             10.1  %             10.6  %             11.1  %             11.1  %
    Cost of capital (4) (5)             7.6  %             7.4  %             7.3  %             7.5  %             7.3  %             7.6  %             7.1  %             6.7  %
    Adjusted return on capital in excess of cost of capital             1.6  %             2.4  %             2.0  %             2.8  %             2.8  %             3.0  %             4.0  %             4.4  %
    Adjusted average capital   $         8,882.6      $         8,633.3      $         8,387.6      $         8,033.3      $         7,507.8      $         7,234.3      $         7,023.9      $         6,829.1   
        Economic profit   $         35.3      $         51.3      $         41.4      $         56.2      $         51.4      $         55.9      $         69.1      $         74.1   
                                     
    Reconciliation of GAAP net income (loss) to economic profit                                
    GAAP net income (loss)   $         106.3      $         151.9      $         78.8      $         (47.1)     $         64.3      $         93.6      $         70.8      $         22.2   
    Non-GAAP adjustments             8.5                (25.9)               30.3                173.5                53.1                35.5                68.7                117.8   
    Adjusted net income             114.8                126.0                109.1                126.4                117.4                129.1                139.5                140.0   
    Adjusted interest expense (after-tax)             88.3                85.7                85.6                80.5                71.2                63.4                54.8                48.9   
    Adjusted net income plus adjusted interest expense (after-tax)             203.1                211.7                194.7                206.9                188.6                192.5                194.3                188.9   
    Less: cost of capital             167.8                160.4                153.3                150.7                137.2                136.6                125.2                114.8   
    Economic profit   $         35.3      $         51.3      $         41.4      $         56.2      $         51.4      $         55.9      $         69.1      $         74.1   
                                     
    Economic profit per diluted share (6)   $         2.87      $         4.14      $         3.33      $         4.58      $         4.06      $         4.35      $         5.30      $         5.66   
    Operating expenses as a percentage of adjusted average capital (5)             6.1  %             5.6  %             6.2  %             6.2  %             6.7  %             6.3  %             6.3  %             6.9  %
    Percentage change in adjusted average capital compared to the same period in the prior year             18.3  %             19.3  %             19.4  %             17.6  %             14.6  %             11.5  %             8.8  %             6.2  %

    (1)   Adjustment to record taxes at our estimated long-term effective income tax rate of 23%. 
    (2)   Adjusted return on capital is defined as adjusted net income plus adjusted interest expense (after-tax) divided by adjusted average capital.
    (3)   Calculated by dividing GAAP net income (loss) by GAAP average shareholders’ equity.
    (4)   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
        Mar. 31, 2025   Dec. 31, 2024   Sept. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sept. 30, 2023   Jun. 30, 2023
    Average 30-year Treasury rate           4.7  %           4.4  %           4.3  %           4.6  %           4.3  %           4.7  %           4.2  %           3.8  %
    Pre-tax average cost of debt (5)           7.2  %           7.2  %           7.3  %           7.2  %           7.0  %           6.3  %           5.9  %           5.3  %

    (5)   Annualized.
    (6)   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 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 provides 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 adjustments in connection with (i) the issuance by us in December 2023 of our 9.250% senior notes due 2028 and the related retirement of the 2024 senior notes or (ii) the issuance by us in February 2025 of our 6.625% senior notes due 2030 and the related retirement of the 2026 senior notes, because the adjustments 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, 2024, filed with the Securities and Exchange Commission (the “SEC”) on February 12, 2025, and Item 1A in Part II of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025, filed with the SEC on April 30, 2025, 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 our proprietary business information or confidential consumer and team member personal information could subject us to liability, decrease our profitability, and damage our reputation.
    • The development and use of artificial intelligence presents risks and challenges that may adversely impact our business.

    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 or future events or otherwise, except as required by applicable law.

    Webcast Details

    We will host a webcast on April 30, 2025 at 5:00 p.m. Eastern Time to discuss our first 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/BI27a0a72b8917474a9a1c5c1f1a465ad7, 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 March 31,
        2025     2024
    Revenue:      
    Finance charges $         526.7   $         469.2
    Premiums earned           23.5             21.9
    Other income           20.9             16.9
    Total revenue           571.1             508.0
    Costs and expenses:      
    Salaries and wages           88.6             78.5
    General and administrative           22.1             23.7
    Sales and marketing           24.8             23.9
    Total operating expenses           135.5             126.1
           
    Provision for credit losses on forecast changes           76.3             87.2
    Provision for credit losses on new Consumer Loan assignments           85.6             98.8
    Total provision for credit losses           161.9             186.0
           
    Interest           114.7             92.5
    Provision for claims           16.1             17.0
    Loss on extinguishment of debt           1.2             —  
    Total costs and expenses           429.4             421.6
    Income before provision for income taxes           141.7             86.4
    Provision for income taxes           35.4             22.1
    Net income $         106.3   $         64.3
           
    Net income per share:      
    Basic $         8.79   $         5.15
    Diluted $         8.66   $         5.08
           
    Weighted average shares outstanding:      
    Basic           12,091,027             12,481,139
    Diluted           12,279,446             12,646,529

    CREDIT ACCEPTANCE CORPORATION
    CONSOLIDATED BALANCE SHEETS
    (UNAUDITED)

    (Dollars in millions, except per share data) As of
      March 31, 2025   December 31, 2024
    ASSETS:      
    Cash and cash equivalents $         528.8      $         343.7   
    Restricted cash and cash equivalents           591.8                501.3   
    Restricted securities available for sale           109.0                106.4   
           
    Loans receivable           11,476.7                11,289.1   
    Allowance for credit losses           (3,498.5)               (3,438.8)  
    Loans receivable, net           7,978.2                7,850.3   
           
    Property and equipment, net           13.7                14.7   
    Income taxes receivable           6.4                4.2   
    Other assets           30.1                34.0   
    Total assets $         9,258.0      $         8,854.6   
           
    LIABILITIES AND SHAREHOLDERS’ EQUITY:      
    Liabilities:      
    Accounts payable and accrued liabilities $         377.0      $         315.8   
    Revolving secured lines of credit           1.4                0.1   
    Secured financing           5,618.0                5,361.5   
    Senior notes           1,085.8                991.3   
    Deferred income taxes, net           320.9                319.1   
    Income taxes payable           144.0                117.2   
    Total liabilities           7,547.1                7,105.0   
           
    Shareholders’ Equity:      
    Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued           —                —   
    Common stock, $.01 par value, 80,000,000 shares authorized, 11,747,851 and 12,048,151 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively           0.1                0.1   
    Paid-in capital           351.7                335.1   
    Retained earnings           1,358.5                1,414.7   
    Accumulated other comprehensive income (loss)           0.6                (0.3)  
    Total shareholders’ equity           1,710.9                1,749.6   
    Total liabilities and shareholders’ equity $         9,258.0      $         8,854.6   

    The MIL Network –

    May 1, 2025

  • MIL-OSI: Enovix Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    FREMONT, Calif., April 30, 2025 (GLOBE NEWSWIRE) — Enovix Corporation (“Enovix”) (Nasdaq: ENVX), a global high-performance battery company, announced today financial results for the first quarter 2025, which included the summary below from its President and CEO, Dr. Raj Talluri.

    Fellow Shareholders,

    In the first quarter of 2025, Enovix advanced across critical milestones with our lead smartphone customer, keeping us on track for a customer product launch later this year. We also strengthened our leadership team, expanded our manufacturing footprint through a strategic acquisition in South Korea, and accelerated progress towards mass production readiness at Fab2 in Malaysia.

    Recent Highlights

    • Revenue Growth: Preliminary and unaudited first quarter revenue was $5.1 million, exceeding the midpoint of our guidance range. We also secured bookings on defense orders which support growth into the second half of 2025.
    • Smartphone Batteries: Began development of cells with the exact dimensions of the planned commercial product this year; first qualification deliveries are scheduled in Q2.
    • XR Batteries: Delivered a significantly larger quantity of XR battery samples to our lead customer for extended testing and system-level integration. These packs, assembled in our South Korea facility using custom cells from Fab2, will support the customer’s ongoing evaluation ahead of product qualification.
    • Manufacturing Readiness: Fab2 in Malaysia achieved ISO 9001:2015 certification with zero major or minor findings. Additionally, we concluded the first customer audits of both Fab2 in Malaysia and our South Korea facility.
    • Leadership Team: Appointed Ryan Benton as chief financial officer and promoted Samira Naraghi to chief business officer.
    • South Korea Acquisition: Acquired SolarEdge assets, including coating equipment that supports capacity expansion at Fab2 and adds production capacity for South Korean defense programs, reinforcing our presence in a key strategic market.
    • Capitalization: Ended Q1 with $248 million in cash, cash equivalents, and marketable securities (preliminary and unaudited), driven by disciplined expense management ahead of mass production in Malaysia, and positive contribution from defense sales.

    The north star for Enovix is commercialization of our breakthrough battery architecture, beginning with the launch of our first smartphone battery – an important step towards scaling the business to profitability. In parallel, like many global companies, we are actively monitoring changes in the global trade environment for any potential impacts to our operations and customers. At this time, we do not anticipate a material change in risk to our near-term outlook, as most of our planned sales are concentrated within Asia.

    We also see opportunities in the evolving global trade landscape. In April 2025, we acquired a second facility in South Korea for $10 million. The asset purchase from SolarEdge includes equipment for additional coating capacity at Fab2, as well as expanded production for Korean defense programs, reinforcing our presence in a key strategic market. The facility that we acquired from SolarEdge also offers significant room for expansion, which could provide strategic value as global supply chains continue to rapidly evolve.

    Our South Korea operations also help us with increased visibility on cutting-edge battery technology in conventional architectures. In 2024, we were among the battery manufacturers that deployed a technique called silicon doping where small amounts of silicon are added to graphite anodes which increases battery capacity. Based on our first-hand experience and feedback from our smartphone customers, we believe that our competition will be capped from achieving meaningful ED enhancements using this technique, within their current architecture, due to swelling and other trade-offs. Our internal benchmarking analysis of premium smartphone batteries launched in 2024 indicates that Enovix’s unique architecture with 100% active silicon will hold a material lead in ED, and we expect it will grow considerably with future generations.

    We are focused on the smartphone industry not only because we believe it offers the largest and fastest profitability outlook, but also because the technical requirements are so demanding that addressing this market opens opportunities in others. Smart eyewear emerged as an example in Q1 when we delivered our first customer samples. This quarter, we are accelerating our expansion in the handheld computer and scanner segment, where we’ve been engaged with a market leader in retail and logistics for several quarters, and our samples have passed initial testing. Recent tariff developments have further strengthened our position in this segment, prompting increased urgency and deeper collaboration.

    Business Update

    Manufacturing. Key accomplishments in the first quarter included securing ISO 9001:2015 certification, driving targeted yield improvements, and continuing to build cumulative production volume. We see a clear path to execute against our manufacturing roadmap. We localized the supply chain which led to a reduction of our custom cell tooling and switchover time by over 40%. This enhanced flexibility improves our per zone capacity as we scale toward additional lines. During this ramp process, we’ve maintained open engagement with customers and partners who visit the facility, as well as one OEM concluding their audit.

    Commercialization. The business team met our top objectives for the quarter – passing another milestone for our lead smartphone customer agreement, finalizing the chemistry, obtaining the precise smartphone cell dimensions, and commencing development of the final samples to be used in the qualification process this summer.  

    We continue to be actively engaged with other smartphone OEMs to ensure a rapid ramp once we are established in the market. Progress continues with our two marquee smart glasses customers, one of which received their unique battery samples this quarter, aligned with their product development schedules.

    In the electric vehicle space, we achieved key milestones that significantly improved the likelihood of expanding our commercial agreement with one of our two OEM partners later this year. Our partners remain highly committed to electrification. We also noted a major charge time improvement announced by a leading battery supplier in Asia, which we view as a strong validation of our cooling architecture – designed for scalable production and industry-leading performance, particularly in charge time and energy density.

    Products. Our internal benchmarking confirms that we are well-positioned to maintain technology leadership for the foreseeable future. The initial products slated for launch are built on our EX-1M technology node, with customer-specific customizations. While premium-category smartphones batteries improved energy density through silicon doping in 2024, we advanced our own electrochemistry with EX-2M – a foundational step that we believe will solidify our leadership position through 2026.

    To further extend this lead, we finalized the design specification of EX-3M, which incorporates a significant architectural enhancement projected to deliver more than a 30% capacity advantage compared to premium solutions available today. We anticipate a similar performance leap with the development of EX-4M.

    Q1 2025 Financial Highlights (Preliminary and Unaudited)

    Revenue was $5.1 million in the first quarter of 2025, near the high end of our guidance range and roughly flat year over year. As expected, revenue declined from $9.7 million in the fourth quarter of 2024 due to the seasonal buying cycle of South Korean defense customers who typically procure a majority of orders in the second half of the calendar year – a trend we expect to repeat in 2025. Our GAAP cost of revenue was $4.8 million, resulting in our second consecutive quarter of positive gross margin.

    GAAP operating expenses were $42.8 million in the first quarter of 2025, compared to $35.6 million in the fourth quarter of 2024 and $68.3 million in the first quarter of 2024, reflecting the impact of cost reduction initiatives implemented over the past year. Non-GAAP operating expenses were $29.7 million, up from $24.3 million in the previous quarter, reflecting preparation for mass production in Malaysia later this year, higher R&D depreciation from recent equipment additions, and increased SG&A expenses. Non-GAAP operating expenses for the first quarter of 2025, down significantly from $54.4 million in the first quarter of 2024, primarily reflecting the benefits of cost reduction initiatives implemented over the past year.

    GAAP net loss attributable to Enovix was $23.5 million in the first quarter of 2025, compared to $37.5 million in the previous quarter. As a reminder, GAAP net loss is impacted quarterly by changes in the fair value of common stock warrants, which resulted in a $15.8 million gain in the first quarter of 2025 compared to a $5.1 million expense in the fourth quarter of 2024.  

    Adjusted EBITDA loss was $22.2 million in the first quarter of 2025, compared to a loss of $14.3 million in the previous quarter. The sequential change was driven primarily by increased operating expenses, including the impact of additional hiring at sites in Asia.

    GAAP net loss per share attributable to Enovix was $0.12 and non-GAAP net loss per share attributable to Enovix was $0.15, compared to $0.20 on a GAAP basis and $0.11 on a non-GAAP basis in the fourth quarter of 2024.

    We exited the first quarter of 2025 with $248.2 million in cash, cash equivalents, and marketable securities, down from $272.9 million in the prior quarter primarily due to $16.9 million used in operating activities and $6.3 million in capital expenditures.

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

    Q2 2025 Financial Outlook

    Looking ahead, based upon current business trends and conditions, we expect for the second quarter of 2025:

    • Revenue in the range of $4.5 million to $6.5 million (Q1 2025: $5.1 million)
    • Non-GAAP operating loss1 in the range of $31 million to $37 million (Q1 2025: $29.4 million)
    • Adjusted EBITDA loss1 in the range of $23 million to $29 million (Q1 2025: $22.2 million)
    • Non-GAAP net loss1per share attributable to Enovix in the range of $0.15 to $0.21 (Q1 2025: $0.15)

    1 We are not presenting a quantitative reconciliation to the GAAP equivalents for non-GAAP operating loss, adjusted EBITDA loss and non-GAAP net loss per share attributable to Enovix, in reliance on the unreasonable efforts exception under Item 10(e)(1)(i)(B) of Regulation S-K. Further information is provided below under the heading “Non-GAAP Financial Measures.”

    Summary

    Enovix delivered strong operational progress during the first quarter of 2025, progressing Fab2 to an advanced stage of readiness for mass production. With product qualification activities underway with marquee customers, we are positioned to drive volume production, achieve key commercialization milestones, and build the foundation for expanded production scale in 2026. Our focus remains on disciplined execution as we transition to high-volume manufacturing and capitalize on the significant growth opportunities ahead.

    Conference Call Information

    Enovix will hold a video conference call at 2:00 PM PT / 5:00 PM ET today, April 30, 2025, to discuss the company’s business updates and financial results. To join the call, participants must use the following link to register: https://enovix-q1-2025.open-exchange.net/registration This link will also be available via the Investor Relations section of the Enovix website at https://ir.enovix.com. An archived version of the call will be available on the Enovix website for one year at https://ir.enovix.com.

    About Enovix

    Enovix is on a mission to deliver high-performance batteries that unlock the full potential of technology products. Everything from IoT, mobile, and computing devices, to vehicles and headsets, needs a better battery. The company has developed an innovative, materials-agnostic approach to building a higher performing battery without compromising safety, and it partners with OEMs worldwide to usher in a new era of user experiences.

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

    Non-GAAP Financial Measures

    This shareholder letter includes the use of non-GAAP financial measures, which are intended to provide supplemental information regarding our performance. These non-GAAP measures include non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development expense, non-GAAP selling, general and administrative expense, non-GAAP operating expenses, non-GAAP operating income (loss), EBITDA, adjusted EBITDA, non-GAAP net income (loss) attributable to Enovix shareholders, non-GAAP earnings (loss) per share, free cash flow, and other non-GAAP measures.

    We use these non-GAAP measures to supplement our financial reporting and to evaluate ongoing operations and results, facilitate internal planning and forecasting, and assess performance against prior periods, industry peers, and the broader market. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles (GAAP) and should not be considered as an alternative to GAAP results. Industry peers and other companies may calculate similar non-GAAP measures differently. Non-GAAP financial measures have limitations, including but not limited to, that they exclude certain expenses that are required under GAAP, which adjustments reflect the exercise of judgment by management. We believe that these non-GAAP measures, when considered together with the GAAP results, provide investors with an additional understanding of our operating performance. Reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the tables at the end of this shareholder letter.

    While Enovix provides second quarter 2025 guidance for non-GAAP operating loss, adjusted EBITDA loss and non-GAAP net loss per share attributable to Enovix, we are unable to provide without unreasonable effort a GAAP to non-GAAP reconciliation of these projected non-GAAP measures, and we have not provided a quantitative reconciliation in reliance on the unreasonable efforts exception under Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliation to the corresponding GAAP financial measure cannot be provided without unreasonable effort because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjustments that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to change in fair value of common stock, stock-based compensation and related tax effects, acquisition-related costs, and restructuring costs. As a result, we are unable to assess the probable significance of the unavailable information, which could have a material impact on our future GAAP financial results.

    Forward-Looking Statements

    This letter to shareholders contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to future events or our future financial or operating performance and are identified by words such as anticipate, believe, could, estimate, expect, intend, may, might, plan, possible, potential, predict, project, should, will, would and similar expressions.

    Forward-looking statements in this letter to shareholders include, but are not limited to, statements regarding: (a) our future operating results, financial position, growth opportunities and guidance, and our anticipation that changes in the global trade environment do not pose a material risk to our outlook; (b) our commercialization plans, strategy and product development roadmap, including the readiness, performance, timing, and customer qualification of EX-1M, EX-2M, EX-3M, EX-4M, and other battery nodes; (c) our manufacturing strategy, including scale-up and operational readiness, including at Fab2 in Malaysia, our assets and facility expansion in South Korea and the anticipated benefits of the SolarEdge asset purchase, and our ability to enhance per-zone capacity and reduce switching time between configurations; (d) our internal benchmarking of energy density and competitive positioning, including our ability to maintain and expand a performance lead over other silicon-doped or conventional battery architectures, and our beliefs about our competitors’ inability to achieve further energy density enhancements using these techniques due to swelling; (e) customer interest, qualification activities, and expected adoption of our products across smartphone, smart eyewear, AI-powered devices, XR, handheld computing, defense, drone, IoT, and EV segments; (f) our ability to enter into or expand commercial agreements, including strategic partnerships, design wins, production contracts, and potential expansion of agreements with automotive OEMs; (g) the strategic value and potential for expansion of our acquired South Korea facility, and its role in supporting defense programs and Fab2 capacity; (h) the impact of seasonal purchasing patterns, including defense procurement cycles; (i) the impacts of tariffs, trade policies, and regional market developments on our business strategy and demand outlook; (j) anticipated trends, risks, and opportunities across our addressable markets and the broader economic environment, including interest rates, inflation, currency fluctuations, and global supply chain evolution; (k) the timing and ability to raise additional capital through equity, debt, or other instruments to support operations, growth initiatives, or capital expenditures; (l) the impact of AI feature adoption on demand for energy-dense batteries; (m) the timing and expected success of achieving technical milestones, including audits by OEMs, production ramp-up readiness, and securing purchase orders; and (n) our exposure to and management of global trade risks.

    It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Accordingly, you should not rely on any of the forward-looking statements. For additional information on these risks and uncertainties and other potential factors that could cause actual results to differ from the results predicted, please refer to our filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our annual report on Form 10-K and quarterly reports on Form 10-Q and other documents that we have filed, or will file, with the SEC. These documents are available in the SEC Filings section of the Investor Relations page at https://ir.enovix.com and at www.sec.gov.

    The financial results presented herein are preliminary and based on information known by management as of the date of this press release; final financial results will be included in the Company’s quarterly report on Form 10-Q for the fiscal quarter ended March 30, 2025. Any forward-looking statements in this letter to shareholders speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    Investor Contact:
    Enovix Corporation
    Robert Lahey
    Email: ir@enovix.com   

    Media Contact:
    Bateman Agency for Enovix
    Kaelyn Attridge
    Email: enovix@bateman.agency

    Enovix Corporation
    Condensed Consolidated Balance Sheets
    (Unaudited) (In Thousands, Except Share and per Share Amounts)
           
      March 30,
    2025    		   December 29,
    2024
    Assets      
    Current assets:      
    Cash and cash equivalents $ 189,874     $ 272,869  
    Short-term investments   58,281       —  
    Accounts receivable, net   2,897       4,566  
    Notes receivable, net   1,255       4  
    Inventory   10,483       7,664  
    Prepaid expenses and other current assets   7,382       9,903  
    Total current assets   270,172       295,006  
    Property and equipment, net   165,775       167,947  
    Customer relationship intangibles and other intangibles, net   35,205       36,394  
    Operating lease, right-of-use assets   12,921       13,479  
    Goodwill   12,217       12,217  
    Other assets, non-current   2,755       2,126  
    Total assets $ 499,045     $ 527,169  
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable $ 20,610     $ 9,492  
    Accrued expenses   8,540       19,843  
    Accrued compensation   6,481       8,228  
    Short-term debt   10,367       9,452  
    Deferred revenue   6,630       3,650  
    Other liabilities   5,161       3,036  
    Total current liabilities   57,789       53,701  
    Long-term debt, net   169,185       169,820  
    Warrant liability   12,584       28,380  
    Operating lease liabilities, non-current   12,638       13,293  
    Deferred revenue, non-current   300       3,774  
    Deferred tax liability   8,751       8,784  
    Other liabilities, non-current   14       14  
    Total liabilities   261,261       277,766  
    Commitments and Contingencies      
    Stockholders’ equity:      
    Common stock, $0.0001 par value; authorized shares of 1,000,000,000; issued and outstanding shares of 191,715,117 and 190,559,335 as of March 30, 2025 and December 29, 2024, respectively   19       19  
    Additional paid-in-capital   1,079,904       1,067,951  
    Accumulated other comprehensive loss   (184 )     (143 )
    Accumulated deficit   (844,596 )     (821,086 )
    Total Enovix stockholders’ equity   235,143       246,741  
    Non-controlling interest   2,641       2,662  
    Total equity   237,784       249,403  
    Total liabilities and equity $ 499,045     $ 527,169  
                   
    Enovix Corporation
    Condensed Consolidated Statements of Operations
    (Unaudited) (In Thousands, Except Share and per Share Amounts)
       
      Fiscal Quarters Ended
      March 30, 2025   March 31, 2024
    Revenue $ 5,098     $ 5,272  
    Cost of revenue   4,837       7,072  
    Gross profit   261       (1,800 )
    Operating expenses:      
    Research and development   25,929       48,788  
    Selling, general and administrative   16,892       19,548  
    Total operating expenses   42,821       68,336  
    Loss from operations   (42,560 )     (70,136 )
    Other income (expense):      
    Change in fair value of common stock warrants   15,796       21,120  
    Interest income   2,434       3,560  
    Interest expense   (1,716 )     (1,659 )
    Other income, net   2,353       466  
    Total other income, net   18,867       23,487  
    Loss before income tax benefit   (23,693 )     (46,649 )
    Income tax benefit   (162 )     (152 )
    Net loss   (23,531 )     (46,497 )
    Net loss attributable to non-controlling interests   (21 )     (129 )
    Net loss attributable to Enovix $ (23,510 )   $ (46,368 )
           
    Net loss per share attributable to Enovix shareholders, basic and diluted $ (0.12 )   $ (0.28 )
    Weighted average number of common shares outstanding, basic and diluted   191,304,975       168,144,918  
                   
    Enovix Corporation
    Condensed Consolidated Statements of Cash Flows
    (Unaudited) (In Thousands)
       
      Fiscal Quarters Ended
      March 30, 2025   March 31, 2024
    Cash flows used in operating activities:      
    Net loss $ (23,531 )   $ (46,497 )
    Adjustments to reconcile net loss to net cash used in operating activities      
    Depreciation, accretion and amortization   8,448       24,974  
    Stock-based compensation   12,014       12,760  
    Changes in fair value of common stock warrants   (15,796 )     (21,120 )
    Others   479       173  
    Changes in operating assets and liabilities:      
    Accounts and notes receivables   430       505  
    Inventory   (2,826 )     2,202  
    Prepaid expenses and other assets   2,440       (1,809 )
    Accounts payable   4,420       (7,281 )
    Accrued expenses and compensation   (4,167 )     2,845  
    Deferred revenue   (457 )     (1,402 )
    Deferred tax liability   (33 )     (222 )
    Other liabilities   1,672       (172 )
    Net cash used in operating activities   (16,907 )     (35,044 )
    Cash flows from investing activities:      
    Purchase of property and equipment   (6,272 )     (15,088 )
    Payment of acquisition costs   (16 )     —  
    Purchases of investments   (58,083 )     (17,066 )
    Maturities of investments   —       51,260  
    Net cash provided by (used in) investing activities   (64,371 )     19,106  
    Cash flows from financing activities:      
    Proceeds from issuance of Convertible Senior Notes and loans   —       1,800  
    Payments of transaction costs related to common stock issuance   (512 )     —  
    Payroll tax payments for shares withheld upon vesting of RSUs   (1,761 )     (2,222 )
    Proceeds from the exercise of stock options and issuance of common stock under ATM, net of issuance costs   782       5,852  
    Net cash provided by (used in) financing activities   (1,491 )     5,430  
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   (228 )     (541 )
    Change in cash, cash equivalents, and restricted cash   (82,997 )     (11,049 )
    Cash and cash equivalents and restricted cash, beginning of period   274,691       235,123  
    Cash and cash equivalents, and restricted cash, end of period $ 191,694     $ 224,074  
           

    EBITDA and Adjusted EBITDA Reconciliation

    Below we provide a reconciliation of GAAP net loss attributable to Enovix to EBITDA and adjusted EBITDA for the periods presented (preliminary and unaudited) (in thousands).

    We define EBITDA as net loss attributable to Enovix adjusted for interest expense, interest income, income tax benefit, and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA further adjusted for stock-based compensation expense, change in fair value of common stock warrants, inventory step-up, import duty forgiveness, impairment of equipment and other special items not indicative of our core operating performance, as determined by management.

    These non-GAAP measures may differ from similarly titled measures used by other companies.

      Fiscal Quarters Ended
      March 30, 2025   March 31, 2024
    Net loss attributable to Enovix $ (23,510 )   $ (46,368 )
    Interest income, net   (718 )     (1,901 )
    Income tax benefit   (162 )     (152 )
    Depreciation and amortization   8,448       24,974  
    EBITDA   (15,942 )     (23,447 )
    Stock-based compensation expense   12,014       12,760  
    Change in fair value of common stock warrants   (15,796 )     (21,120 )
    Inventory step-up   —       1,907  
    Import duty forgiveness   (2,431 )     —  
    Adjusted EBITDA $ (22,155 )   $ (29,900 )
                   

    Reconciliation of Operating Loss to Non-GAAP Operating Loss and Adjusted EBITDA

    Additionally, below is a reconciliation of GAAP operating loss to non-GAAP operating loss and adjusted EBITDA for the periods presented (preliminary and unaudited) (in thousands).

    These non-GAAP measures may differ from similarly titled measures used by other companies.

      Fiscal Quarters Ended
      March 30, 2025   March 31, 2024
           
    GAAP Operating Loss $ (42,560 )   $ (70,136 )
    Stock-based compensation expense   12,014       12,760  
    Amortization of intangible assets   1,190       1,172  
    Inventory step-up   —       1,907  
    Non-GAAP Operating Loss   (29,356 )     (54,297 )
    Depreciation and amortization (excluding amortization of intangible assets)   7,258       23,802  
    Other income (loss), net (excluding import duty forgiveness)   (78 )     466  
    Net loss attributable to non-controlling interest   21       129  
    Adjusted EBITDA $ (22,155 )   $ (29,900 )
                   

    Free Cash Flow Reconciliation

    We define Free Cash Flow as net cash used in operating activities less capital expenditures, net of proceeds from disposals of property and equipment, each as reported in our consolidated statements of cash flows. Free Cash Flow is a non-GAAP financial measure and should not be considered an alternative to cash flows from operating activities as determined in accordance with GAAP.

    We believe Free Cash Flow is a useful measure for investors because it provides insight into the cash generated or used by our operations after funding capital expenditures, and it helps assess our ability to pursue strategic growth initiatives. We use Free Cash Flow internally to evaluate performance, support decision-making, and measure our progress toward profitability and cash flow breakeven.

    This non-GAAP measure may differ from similarly titled measures used by other companies.

    Below is a reconciliation of net cash used in operating activities to the Free Cash Flow financial measure for the periods presented (preliminary and unaudited) (in thousands):

      Fiscal Quarters Ended
      March 30, 2025   March 31, 2024
    Net cash used in operating activities $         (16,907 )   $         (35,044 )
    Capital expenditures           (6,272 )             (15,088 )
    Free Cash Flow $         (23,179 )   $         (50,132 )
                   

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

    These non-GAAP measures may differ from similarly titled measures used by other companies.

      Fiscal Quarters Ended
      March 30, 2025   March 31, 2024
    Revenue $ 5,098     $ 5,272  
           
    GAAP cost of revenue $ 4,837     $ 7,072  
    Stock-based compensation expense   (121 )     —  
    Inventory step-up   —       (1,907 )
    Non-GAAP cost of revenue $ 4,716     $ 5,165  
           
    GAAP gross profit $ 261     $ (1,800 )
    Stock-based compensation expense   121       —  
    Inventory step-up   —       1,907  
    Non-GAAP gross profit $ 382     $ 107  
           
    GAAP research and development (R&D) expense $ 25,929     $ 48,788  
    Stock-based compensation expense   (6,355 )     (6,554 )
    Amortization of intangible assets   (416 )     (416 )
    Non-GAAP R&D expense $ 19,158     $ 41,818  
           
    GAAP selling, general and administrative (SG&A) expense $ 16,892     $ 19,548  
    Stock-based compensation expense   (5,538 )     (6,206 )
    Amortization of intangible assets   (774 )     (756 )
    Non-GAAP SG&A expense $ 10,580     $ 12,586  
           
    GAAP operating expenses $ 42,821     $ 68,336  
    Stock-based compensation expense included in R&D expense   (6,355 )     (6,554 )
    Stock-based compensation expense included in SG&A expense   (5,538 )     (6,206 )
    Amortization of intangible assets   (1,190 )     (1,172 )
    Non-GAAP operating expenses $ 29,738     $ 54,404  
           
        Fiscal Quarters Ended
        March 30, 2025   March 31, 2024
    GAAP loss from operations   $ (42,560 )   $ (70,136 )
    Stock-based compensation expense     12,014       12,760  
    Amortization of intangible assets     1,190       1,172  
    Inventory step-up     —       1,907  
    Non-GAAP loss from operations   $ (29,356 )   $ (54,297 )
             
    GAAP net loss attributable to Enovix   $ (23,510 )   $ (46,368 )
    Stock-based compensation expense     12,014       12,760  
    Change in fair value of common stock warrants     (15,796 )     (21,120 )
    Amortization of intangible assets     1,190       1,172  
    Inventory step-up     —       1,907  
    Import duty forgiveness     (2,431 )     —  
    Non-GAAP net loss attributable to Enovix shareholders   $ (28,533 )   $ (51,649 )
             
    GAAP net loss per share attributable to Enovix, basic and diluted   $ (0.12 )   $ (0.28 )
    GAAP weighted average number of common shares outstanding, basic and diluted     191,304,975       168,144,918  
             
    Non-GAAP net loss per share attributable to Enovix, basic and diluted   $ (0.15 )   $ (0.31 )
    GAAP weighted average number of common shares outstanding, basic and diluted     191,304,975       168,144,918  
                     
        Fiscal Quarter Ended
        December 29,
    2024
    GAAP net loss attributable to Enovix   $         (37,465 )
    Stock-based compensation expense     10,207  
    Change in fair value of common stock warrants     5,115  
    Amortization of intangible assets     1,189  
    Non-GAAP net loss attributable to Enovix shareholders   $ (20,954 )
         
    GAAP net loss per share attributable to Enovix, basic and diluted   $ (0.20 )
    GAAP weighted average number of common shares outstanding, basic and diluted     184,971,942  
         
    Non-GAAP net loss per share attributable to Enovix, basic and diluted   $ (0.11 )
    GAAP weighted average number of common shares outstanding, basic and diluted     184,971,942  

    The MIL Network –

    May 1, 2025

  • MIL-OSI Security: Three Charged with Trafficking Narcotics in the Naugatuck Valley

    Source: Office of United States Attorneys

    Marc H. Silverman, Acting United States Attorney for the District of Connecticut, Anish Shukla, Acting Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, Stephen P. Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury in Hartford returned a 10-count indictment today charging KEYSHON ZIMMERMAN, also known as “AJ,” “Ace,” and “Slick,” 39, of Stratford; ROBERT SMITH, also known as “Mookie,” 43, of Ansonia; and MAHOGANY PETTWAY-STOKES, 45, of Ansonia with offenses related to the trafficking of fentanyl and cocaine in the Naugatuck Valley.

    As alleged in court documents and statements made in court, an investigation by the FBI New Haven Transnational Organized Crime Task Force and the DEA New Haven District Office (NHDO) Task Force determined that Zimmerman and Smith were distributing fentanyl, cocaine, and prescription opioids in Connecticut’s Lower Naugatuck Valley.  Zimmerman and Smith shared a phone used to coordinate drug transactions.  Zimmerman typically used the phone in the morning and early afternoon and Smith used the phone in the late afternoon into the evening. Between July 2024 and April 2025, investigators made multiple controlled purchase of narcotics from Zimmerman, Smith, and Pettway-Stokes.

    Zimmerman, Smith, and Pettway-Stokes were arrested on April 23, 2025.  It is alleged that as investigators entered Zimmerman’s residence on Main Street in Stratford, they located Zimmerman in a bathroom attempting to flush fentanyl in a toilet.  In association with the arrests, a search of Zimmerman’s residence revealed a large quantity of unpackaged fentanyl and cocaine, drug processing and packaging materials, and approximately $21,000 in cash.  Searches of two cars parked in Stratford and Ansonia used by Zimmerman revealed additional quantities of fentanyl and cocaine, narcotic pills, a .40 caliber semi-automatic pistol with an obliterated serial number, and a 9mm caliber semi-automatic pistol with an extended magazine.  A search of a residence shared by Smith and Pettway-Stokes on Wakelee Avenue in Ansonia revealed two handguns, and a search of an apartment on Olivia Street in Derby revealed narcotics processing and packaging materials, including a kilogram press.

    The indictment charges Zimmerman, Smith, and Pettway-Stokes with one count of conspiracy to distribute, and to possess with intent to distribute, fentanyl and cocaine.  As to this charge, based on the type and quantity of drug attributed to each defendant, Zimmerman faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and Smith and Pettway-Stokes each faces a maximum term of imprisonment of 20 years.

    The indictment also charges Zimmerman, Smith, and Pettway-Stokes with multiple substantive counts related to the possession and distribution of controlled substances.  Zimmerman is also charged with two counts of possession of a firearm in furtherance of a drug trafficking crime, an offense that carries a mandatory consecutive term of imprisonment of at least five years on each count.

    Zimmerman and Smith are currently detained and Pettway-Stokes is released on a $75,000 bond.

    Acting U.S. Attorney Silverman stressed that an indictment is not evidence of guilt.  Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

    This matter is being investigated by the FBI New Haven Transnational Organized Crime Task Force and the DEA New Haven District Office (NHDO) Task Force.  The FBI Task Force includes participants from the Connecticut State Police and the North Haven, New Haven, East Haven, Milford, and Brookfield Police Departments, and the DEA Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Waterbury, East Haven, Branford, West Haven, Ansonia, Meriden, Naugatuck, and Shelton Police Departments.  The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.

    This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.  Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and Project Safe Neighborhood (PSN).

    MIL Security OSI –

    May 1, 2025

  • MIL-OSI Security: Dominican National Sentenced to Three Years in prison for Fentanyl Trafficking Charges

    Source: Office of United States Attorneys

    BOSTON – A Dominican national, residing in Chelsea, Mass., was sentenced yesterday in federal court in Boston for fentanyl trafficking.

    Junior Baez Sanchez, 32, was sentenced by U.S. District Court Judge Patti B. Saris to three years in prison. Baez Sanchez is subject to deportation upon completion of the imposed sentence. In January 2025, Baez Sanchez pleaded guilty to two counts of distributing fentanyl and one count of failing to appear for court.  

    Baez Sanchez distributed more than 40 grams of fentanyl in Chelsea on June 2, 2020 and in Malden on July 15, 2020. In March 2021, Baez Sanchez was indicted by a federal grand jury and was scheduled for trial in October 2022. Baez Sanchez failed to appear for court as required on Oct. 4, 2022—less than two weeks before trial—and the Court issued a warrant for his arrest. Approximately two years later, on Sept. 24, 2024, Baez Sanchez was arrested on the warrant after law enforcement stopped a vehicle driven by Baez Sanchez. At the time of his arrest, Baez Sanchez had 12 clear bags of fentanyl in his pocket.

    United States Attorney Leah B. Foley and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division made the announcement today. Special assistance was provided by the Chelsea Police Department. Assistant U.S. Attorney Charles Dell’Anno of the Criminal Division prosecuted the case.
     

    MIL Security OSI –

    May 1, 2025

  • MIL-OSI Russia: Denis Manturov visited the Military Innovation Technopolis “Era”

    Translation. Region: Russian Federal

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    First Deputy Prime Minister Denis Manturov visited the Military Innovation Technopolis (VIT) “Era”, where he familiarized himself with innovative equipment samples and held a strategic session.

    The event was attended by members of the Military-Industrial Commission Board, representatives of the General Staff of the Armed Forces of the Russian Federation, central military command bodies, defense industry enterprises and research organizations.

    The main topic of the strategic session was the issue of increasing the effectiveness of combating unmanned aerial vehicles and FPV drones of the enemy at the tactical level. The First Deputy Prime Minister noted that drones allow Russian troops to solve a wide range of tasks. At the same time, the enemy is also actively using the advantages of UAVs.

    “Under these conditions, we need to respond quickly and implement an approach similar to solving the problem of counter-battery warfare. On this topic, a pilot combat testing of advanced systems and complexes was organized in the SVO zone. Representatives of the industry worked directly in the combat units. As a result, a positive result was obtained, and now the Directorate of Missile Troops and Artillery is replicating the developed technical solutions. A similar procedure is needed for counter-UAV means. It is important to form sets of means for detecting, guiding, controlling, suppressing and destroying drones and FPV drones. Moreover, they must work in a single circuit, according to a single plan and concept,” Denis Manturov emphasized.

    The meeting also considered promising examples of the nomenclature and tactics of using enemy unmanned aerial vehicles during the conduct of the SVO. Based on the identified principles of application, requirements were developed for industry representatives to improve the efficiency of UAV detection and destruction tools.

    As part of the event, leading enterprises of the military-industrial complex presented modern and promising models of drone detectors, electronic jamming systems, portable devices for suppressing UAV control channels, portable electronic warfare systems, and much more.

    The session participants discussed the accumulated experience of using air defense systems, as well as the possibilities for increasing the effectiveness of suppressing unmanned aerial vehicles during combat operations.

    An exhibition of new models and technologies developed by representatives of innovative scientific and technological centers and innovative development funds of Russia was opened for the participants of the strategic session.

    In particular, automated systems for identifying, guiding and controlling UAVs were presented to intercept and destroy enemy drones without the involvement of an operator.

    The manufacturers also presented an updated system of drone detectors with the ability to intercept video channels and control channels of unmanned aerial vehicles with the function of recording and analyzing frequencies used by enemy UAVs to increase the efficiency of electronic warfare systems.

    In addition, the participants of the strategic session were shown specialized systems controlled remotely. Such installations use artificial intelligence technologies that allow detecting, classifying targets and tracking them until their complete destruction without operator intervention.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

    May 1, 2025

  • MIL-OSI Economics: Press Briefing Transcript: Staff Level Agreement on the Fourth Review of the Sri Lanka’s Reform Program Supported by the IMF’s Extended Fund Facility Arrangement

    Source: International Monetary Fund

    April 29, 2025

    PARTICIPANTS: 

    EVAN PAPAGEORGIOU, Mission Chief for Sri Lanka, IMF

    PAVIS DEVAHASADIN, Communications Officer, IMF

    MARTHA TESFAYE WOLDEMICHAEL, Resident Representative in Sri Lanka, IMF

    *  *  *  *  * 

    DEVAHASADIN: I welcome you to the press conference on Sri Lanka, the Staff-Level Agreement of the Fourth Review of the economic program support by the EFF.  Today we have here Mr. Evan Papageorgiou, IMF Mission Chief for Sri Lanka.  He’s joined by Martha Woldemichael, IMF Representative in Sri Lanka. 

    Again, this is on the record.  The transcript will be available later.  We have a lot of people here, so we’re just going to start with Mr. Evan giving the brief remarks and then we move on to the Q&A session.  All right, Evan, over to you on the remarks.

    PAPAGEORGIOU: Yeah, thank you. Thank you, Pavis. Thank you also to Martha for being here.  And hello, everybody.  Good evening to those of you in Sri Lanka and good morning to the few folks here in Washington.  I thank you all for being here today.  I would have preferred to be with you in Colombo, but unfortunately this is not feasible this time.  We will have to talk through a screen. 

    By way of short introduction, as you heard, my name is Evan Papageorgiou.  I am the new Mission Chief for Sri Lanka for the IMF.  And some of you may know already that there has been a change in Mission Chief with this review, which is part of a routine rotation of people in the team.  I look forward to seeing some of you again.  I already had a chance to meet you a few weeks ago, or otherwise to meeting you all next time we’re in the country.  We had the opportunity to be in the country.  I led a team of economists visiting Colombo earlier this month, where we had productive discussions with the authorities.  These discussions continued here last week here in Washington, D.C., on the occasion of our Spring Meetings. 

    Okay.  So, as you may be aware, we have reached a staff-level agreement with Sri Lankan authorities on key economic policies, marking an important milestone toward concluding the Fourth Review of Sri Lanka’s reform program supported by the IMF’s Extended Fund Facility. 

    The staff-level agreement is contingent on two conditions.  First, the implementation of prior actions relating to restoring electricity cost-recovery pricing and ensuring proper function of the automatic electricity price adjustment mechanism.  And second, the usual completion of financing assurances review by multilateral and bilateral partners.  After successful implementation of these conditions and approval from the IMF Executive Board, Sri Lanka will unlock approximately USD $344 million in financing.  This funding will be crucial as the country navigates the recovery from economic challenges. 

    We are now halfway through the four-year EFF program, and I’m very pleased to stand before you today to share significant development regarding Sri Lanka’s economic journey.  The performance of the reform program has remained strong overall.  Economic growth is on the rebound.  We are seeing advancements in revenue mobilization, reserve accumulation is proceeding, and structural reforms continue, and some of them are well underway. 

    Very important to note also that debt restructuring is nearly complete and the government’s commitment to program objectives remains steadfast, and we got new assurances of this as recently as last week.  However, we must also acknowledge the significant downside risks posed by global trade policy uncertainty.  Should these risks materialize, we are prepared to work collaboratively with the authorities to assess their impact and formulate appropriate policy responses within the framework of the IMF-supported program.

    The country’s achievements under the ambitious reform agenda have been commendable.  The rebound in growth, for example, 5 percent year-on-year real growth in 2024, is a testament to the country’s resilience and determination and remarkable turnaround.  Furthermore, there has been significant improvement in the revenue performance, with revenue to the GDP climbing to 13.5 percent in 2024 from 8.2 percent in 2022.  Gross official reserves have also risen to $6.5 billion in end of March 2025, given the very good and strong FX purchases by the Central Bank of Sri Lanka.

    Now, as we move forward, it is essential that the government continues to prioritize sustained revenue mobilization efforts and prudent budget execution.  These measures are vital in preserving and continuing to build fiscal space and ensuring that there is room to respond to any shocks that may arise.  To that end, restoring cost-recovery electricity pricing is essential to minimize fiscal risks and enable appropriate electricity infrastructure and investments. 

    The tax exemption framework should be well designed to reduce fiscal costs and corruption risks while at the same time enabling necessary growth for the country.  Reforms to boost tax compliance are important to deliver revenue gains without resorting to additional tax measures. 

    We also recognize the critical responsibility of the government to protect the most vulnerable members of society during these uncertain times.  Improving the targeting adequacy of social safety nets will be a priority as they strive to provide support where it’s needed the most. 

    In conclusion, the sustained commitment of the government to the program objectives is commendable.  It ensures continuity and puts Sri Lanka on a path to continuing success and strong recovery.  We are determined to continue working with the authorities to safeguard their hard-won gains and pave the way forward towards robust and inclusive growth.  Thank you for your attention.  Martha and I look forward to your questions.  Thank you.  Pavis, back to you. 

    DEVAHASADIN: Thank you, Evan. We now move on to the Q&A section. But before we begin, I would like to say that for those who just joined, this session is being recorded.  Therefore, the transcript will be posted later, and otherwise we move on to the Q&A, and I just want to remind you to keep your questions short because we have a full house so we can give opportunity to other participants as well and stay on topic.  We can also follow up with you afterwards.  But please be mindful that we are discussing the SLA – the Fourth Review, today. 

    May I call — actually I saw your hand was up earlier, and then you put it down.  May I call you for the first question from Economy Next?

    QUESTIONER: Thank you.  Yes, my question is there has been some delay on the restructuring.  How concerned is the IMF on SOE restructuring?

    DEVAHASADIN: On the restructuring, debt restructuring, right?

    QUESTIONER: SOE.

    DEVAHASADIN: SOE.

    QUESTIONER: state-owned enterprise, yeah. 

    DEVAHASADIN: Okay. Anyone else on state-owned enterprise? And you can also just jump in.  I see some hands up, but I’m not sure if those participants are talking about — would like to talk about SOE, but otherwise we want to take questions on SOE first. 

    QUESTIONER: If I may add on the SOEs?  Just to add to that, specifically about Sri Lankan Airlines.  How concerned are you about Sri Lankan Airlines?  Because this is something that has been discussed for several years with a lot of other people as well as with the IMF.  Thank you. 

    DEVAHASADIN: Okay. Thank you so much.

    PAPAGEORGIOU: Yes, thank you. These are good questions. So let me start in general to make some points. 

    So under the program there has been, in general, commitment by the government from the beginning of the program until now to strengthen the governance of SOEs, to get to the bottom of their outstanding debt and resolving legacy debt that they — that’s out there — and implementing those that’s relevant to implementing cost recovery pricing to ensure that they remain financially viable.  These are all very important conditions because they will reduce fiscal risks to the government, to the states, and avoid that they become a burden for public finances, ultimately taxpayers, and all Sri Lankans. 

    So, within those commitments, it’s important to highlight a few that, under the program, these include also containing risks from the guarantees issued to SOEs.  For example, the EFF program includes indicative targets, which are setting ceilings on total and foreign currency treasury guarantees for SOEs.  Another condition is to refrain from new FX borrowing by non-financial state-owned enterprises that already have limited FX revenue so that we don’t introduce more wrong-way risk into these entities.  And also, another one, obviously very important one, is making SOEs more transparent.  You may be aware that we have been advocating and mandating to publishing audited financial statements for the 52 largest SOEs in a timely manner, and that will help bring more light and greater scrutiny. 

    It is also important to ensure that consumers of services of these SOEs receive the best value for the price they pay.  And obviously, that relates to a wider range of SOEs, including also the electricity and the fuel sector.  And this is the same thing as you would expect from a private company.  In other words, you would want SOEs run in the most efficient manner purely on commercial basis and ensuring that they are dependable and, of course, that they are free of corruption.  That is greater big disclosure, good disclosure to that extent. 

    There was a question on Sri Lankan Airlines.  So, we understand that the authorities are underway in preparing a medium-term strategic plan to restore Sri Lankan Airlines’ operational viability and to resolve its legacy debt.  We know that the current budget, the 2025 budget, has set aside 20 billion rupees to pay off some of the debt of the airline.  And we are also aware that Sri Lankan Airlines has also hired a financial advisor to restructure its international bond.  So, these are all steps in the right direction.  But we think these need to pick up pace and take up a little bit faster pace so we can have a good resolution of all these outstanding issues.  So, in general with SOEs, we think there is a way forward, and we want to see more progress there. 

    Thank you.  That was a good question.  Pavis, back to you. 

    DEVAHASADIN: Thank you, Evan. We have hands up.

    QUESTIONER: Thank you, Pavis, and thank you, Evan, for your presentation.  From News 1st here.  The conditions of the Fourth Review include implementing fire actions related to electricity cost-recovery pricing and ensuring that the automatic electricity price adjustment mechanism functions properly.  In your meetings with the government, do you see this realizing anytime soon?  Because according to the statement that was released earlier, it says that this condition is yet to be met.  Thank you. 

    PAPAGEORGIOU: Thank you. Thank you, I don’t know if — should we take another question? Maybe related to electricity to bunch them up a little bit? 

    DEVAHASADIN: Yep. Anyone else on electricity just come in please.

    QUESTIONER: What we expected the timeline to complete the required by actions such as electricity pricing and financing assurance for Board approval?

    QUESTIONER: I have also question on electricity.  Now, the current problem seems to have been coming from, because of a price cut by the regulator, which the utility didn’t ask for.  So, is there any attempt to give technical assistance or something so that the way the regulator calculates the profits or how they deal with the price proposal of the utility is improved so that this kind of thing doesn’t happen again?

    PAPAGEORGIOU: Thank you for the question. Let me first say that the issue of electricity is one where both the government and us see eye to eye, and there’s strong commitment in seeing these reforms take place because, as you know very well, electricity and dependability of electricity and the high price of electricity have been an issue for a very long time in Sri Lanka. So, government is committed to seeing, to taking the reforms and owning those reforms and making significant progress. 

    So yes, during the review mission discussions that we had in Colombo earlier in April, earlier this month, and here in Washington last week, we discussed many issues.  Our assessment is as early as back in February, when we went to the Board for our Third Review, our assessment of the time, and still is the same, is that the continuous structural benchmark on electricity cost recovery pricing is still not met.  And that means that the price of the tariff – it does not match, does not create enough of an ability for the utility, for the CEB, to be able to meet its costs, the generation costs, and transmission and distribution. 

    In addition to that, the automatic tariff adjustment mechanism based on the bulk supply transaction account, the BSTA, has not operated as we envisaged.  And the April tariff revision that was meant to take place in the second quarter of this year was not implemented.  So as a result of that, given the criticality of electricity cost recovery and under the program, we have proposed, IMF has proposed, the introduction of prior actions relating to restoring electricity cost-recovery pricing and ensuring proper function of the automatic electricity price adjustment mechanism, the BSTA, that I mentioned a few moments ago. 

    The implementation of these prior actions is an important milestone as a requisite, if you will, for the completion of the Fourth Review.  And in terms of the timing; there was a question — of course, we defer to the authorities and to the regulator, the PUCSL, on the exact timing for implementing these actions, these prior actions. But we urge them to do so as soon as possible so that the utility company, CEB, is not incurring financial losses on a forward-looking basis.  In other words, we should avoid, the authorities should avoid, a situation where debt is building up at the CEB, so that the utility company does not become again a significant contingent liability to the government and a burden to the taxpayer. so, it doesn’t become a fiscal drought. 

    I think this is well understood by the authorities.  It has been explained time and time again.  It’s a core pillar of the program that once it is resolved and properly held, it will help fiscal sustainability, and it will make electricity price generation more dependable.  And down the road this will allow for more stability, for more investment, and for the necessary steps to see electricity prices coming down. 

    Hopefully that answers your question, but I’m happy to follow up on anything else.  Thank you.  Pavis, back to you. 

    DEVAHASADIN: Thank you, Evan.

    QUESTIONER: I don’t think my question about whether you consider technical assistance to the regulator was answered.  I also have another question if you can answer. 

    PAPAGEORGIOU: Sure, sure. So yeah, thank you. There’s no technical assistance at the moment in terms of the electricity price generation or any other issues related to this.  In general, the energy policy and the policy for the energy sector, we think the pillars are — there should be a cost reflective energy pricing which is a building block of the program, and we think that within that there should be a greater stability, but it will allow for more reforms. 

    So now we know we understand that there are some proposed amendments to the Electricity Act that are underway, and these are expected to reflect the authority’s strategy to reform the electricity sector.  We understand also there is an intention to have unbundling of generation of transmission and distribution of power.  We obviously take note that there has been action and proposals for greater investment, including also for solar energy projects.  Again, we’re not advising exactly on these issues, but we look forward to seeing more. 

    Now, of course, on the strategy that should be supported by the key stakeholders.  I know that other multilateral, several development partners such as the World Bank and ADB are closely involved on electricity, and they are providing technical assistance to Sri Lanka. 

    So I think that goes to your point. Did you have another question as well? 

    QUESTIONER: Yes.  Regarding the — can you give us any idea about the timing of the review that might take place?  And also, when you said, policy responses that may be needed to meet the tariff problem, what kind of things were you thinking on?  Is it likely to jeopardize the targets and were you planning to give any waivers or what kind of policy responses?

    PAPAGEORGIOU: When you say tariffs do you mean not electricity tariffs, you mean export tariffs, right?

    QUESTIONER: No, no, sorry.  You said because of the tariff shock, from possible tariffs from the U.S. 

    PAPAGEORGIOU: Yes, that’s right.

    DEVAHASADIN: U.S. tariffs.

    QUESTIONER: Yeah.  So then that Sri Lanka might have to do some policy responses.  What kind of policy responses were you thinking?  And also, it jeopardizes the targets in the IMF performance criteria, will they be kind of given waivers? 

    PAPAGEORGIOU: Thank you.

    DEVAHASADIN: Before you begin, I would like to read this question. How do you see the impact U.S. labor tariff on Sri Lanka’s ability to secure and sustain the SLA with global partners?

    PAPAGEORGIOU: Yeah, great. Thank you; these are good questions. In terms of the timing, obviously things are still underway.  This is only a staff-level agreement, which means we have agreed on principle on many things of the underlying Fourth Review and conditions of the prior actions that I mentioned a few minutes ago.  I think there’s good momentum from the authorities’ and everybody else’s point of view in completing the review.  That takes a little while because we understand a lot of these issues are still being discussed and there is more work to be done, both from the authority side and from our side as well.  It’s a long process, as you probably know, in terms of us consulting and redrawing our numbers and our assumptions and having a great confidence in the direction of policy reforms and of the outlook and everything else.  I would say that it will take a little while, maybe a couple more months at least, in terms of finalizing the review.  So hopefully in two months’ time or so, by, let’s say, June, we should be able to have some more news for you on this front. 

    Now, on the issue of U.S. tariffs and how does it affect the country?  Obviously, as I mentioned, trade policy uncertainty is one of the issues that we have discussed quite extensively with the authorities on what could that mean for Sri Lanka’s economy and economic performance.  We know that, obviously, the authorities are committed to achieving program objectives and to see how the targets are being met.  They have also committed to addressing any sort of underperformance or deviation for program targets with remedial measures.  So, we think that we take this commitment very seriously, and we note their strong impetus for delivering on those. 

    Obviously, the global trade policy uncertainties, as I mentioned, is a significant risk.  All I can say at this point is that if these risks materialize, we will work with the authorities to assess the impact of those shocks, and we will support the country in formulating specific policy responses within the contours of the existing IMF program.  We have very frequent discussions with the authorities.  We were discussing, we were talking to them as recently as last Friday, as a few days ago.  We continue talking to them on a daily basis.  Martha talks to them on a constant basis.  And we continue conducting weekly monitoring meetings with the entire team, both here in Colombo as well, so that we can ensure that program performance remains on track. 

    This is all I can say for the moment, but it is very important to note also that the Sri Lankan authorities, the Sri Lankan government, have made great progress in establishing greater connection with bilateral trade partners, including the United States.  And we encourage more action and greater discussion in ensuring that there is a good outcome from these discussions and that the trade policy uncertainty gets resolved and there’s greater certainty. 

    DEVAHASADIN: Thank you. I just got the five minutes remaining warning. I would like to open the floor to anyone who hasn’t asked any questions.  Please feel free to jump in.  Otherwise, I’ll go back to the hand.  Anyone else who hasn’t asked any question?  Well, all right, I see one hand up.

    DEVAHASADIN: Thank you. We’ll come back to you.

    QUESTIONER: Thank you.  I just have a question.  It’s kind of a follow-up to Evan’s previous answer.  You talked about a very limited response that you can give talking about trade policy and the impact of the U.S. tariffs.  But you did say that Sri Lanka had expressed a sort of a commitment to work and work towards the targets it has agreed with the IMF.  But in the most recent weeks post those tariff announcements, targets, as much as you said that they have expressed a willingness to work within the framework – I think you said, within the contours of the agreement – has Sri Lanka expressed concerns about reaching those targets, particularly because these tariffs are believed broadly to have a potential impact on its export earnings?  Obviously, it’s foreign currency earnings and things like that.  So how much of a concern have you heard from the Sri Lankan authorities?  And what is the sort of leeway or the kind of flexibility that Sri Lanka would have within the agreement with the IMF?  I’m sure you have this with a lot of sort of your agreements, but, yeah, where Sri Lanka is concerned, how do you see it?  Thank you. 

    PAPAGEORGIOU: Thank you. That’s a good question. It follows through a little bit from my previous answer, as you said.  I don’t know, given that we don’t have much time, let me go ahead and answer this and maybe we can give five more minutes, Pavis, to other people to ask questions as well. 

    DEVAHASADIN: Sounds good.

    PAPAGEORGIOU: So, first of all, every review, now we’re on the Fourth Review, of the program is an opportunity to assess the economic developments, to review program targets, and to determine the reform agenda and the reform measures that the authorities plan for the period ahead. It just happened that in this review we have a significant trade policy shock. So, in these discussions, we’ve had an understanding of what are the concerns and what is the kind of shock.  And by the way, this is something that we also, as Fund staff, are trying to implement, to understand, to comprehend, and to put into our outlook. 

    So obviously, the 44 percent tariff on Sri Lanka that was announced on April 2nd would have a significant impact, and the authorities understand this very well.  The impact obviously will be on the apparel and rubber industries.  Obviously, as you know very well, these account for a very large share of the country’s exports to the United States.  I believe it’s almost three-quarters, or over 70 percent.  And also, the real sector implications of these are very important because these two sectors, apparel and rubber, employ a lot of workers, in Sri Lanka. Just the apparel industry alone is over 300,000 workers or 320,000 workers.  So, the 90-day pause that was announced has allowed the authorities to engage constructively with the United States.  And we take, take very positive note on this. 

    Now, within, in general, as I mentioned, the global trade policy uncertainty for any small open economy and definitely for Sri Lanka poses significant downside risks.  For these discussions, we understand, obviously, the issues that arise and how they should be baked into the program.  If there is any substantial risk that may pan out either on the back of tariffs or some other disruption, we will work with the authorities to incorporate them to assess their impact and put them into policy responses. 

    At this point, it will be a little premature of me to talk about specific issues, but we’ve had a lot of discussions, and we think that the authorities are doing the best they can to address these issues.  It’s important to also mention that here that any time is a good time for implementing more reforms for discussing greater options towards having more trade policy responses.  And we believe that Sri Lanka should continue exploring also additional ways in making its exports more marketable and appealing to a wider range of counterparts. 

    DEVAHASADIN: Thank you, Evan. I’ll give the final question. We are running out of time, but I think we have enough time for one last question.

    QUESTIONER: Thank you.  It’s about the tax revenues.  According to the 2025 budget, much of the tax revenue is expected from vehicle imports, and we have — from the dealers that of the vehicles have been imported in the last two months, about 75 percent have been sold.  Of course, even though 25 percent may not have been sold, still the government has got revenue for those because they have been cleared through customs. That is no issue, but it would probably have implications for future demand.  So, the market is sort of not as vibrant, as there doesn’t seem to be a huge pent-up demand.  How concerned are you that this one single item in the budget, which is sort of going to underpin tax revenue, may not materialize this year?  Thank you.  Thank you.

    PAPAGEORGIOU: So obviously the authorities have made significant progress on creating greater opportunities for revenue and for collecting more. You may very well know that the situation was far worse in terms of tax revenue, as I mentioned in my earlier remarks, as early as couple of years ago. So obviously there is definitely progress. On this year’s discussion,

    I think there is a lot of the progress; has been a positive one.  There has been greater progress towards ensuring more revenue that could be collected from a range of measures.  You mentioned very accurately that the lifting of the import ban on motor vehicles is a very, very important. I would say the primary measure underpinning the revenue package.  We saw that, also in the budget, it is expected to yield 1.2 percent of GDP in 2025.  And that’s about 80 percent of the 1.5 percent of GDP in all tax revenue.  So obviously, as you mentioned, this is very important to get right and to continue with the momentum. 

    We note from the latest data that we have monitoring and we’re getting is that there is actually a good momentum on those motor vehicle imports.  So as my latest data — I was trying to find them — from what I remember, there has been quite a lot of good increase in the letters of credit.  I believe it’s around USD $350 million that were open.  These are letters of credit that are attached to importing vehicles.  So, we think that the associated revenue that will be incurred from those imports is starting to come on pace, and that’s a very important and encouraging sign.  So, we look forward to seeing more. 

    Of course, I mentioned a moment ago as well that if there are signs that — that there is underperformance of revenues or if there is a revenue shortfall, we have discussed with the authorities, and they are committed to implementing contingency revenue measures, and this will go a long way in ensuring fiscal sustainability and greater revenue.  Thank you. 

    DEVAHASADIN: Thank you, Evan. Unfortunately, we’re at time. Before we close, Evan, do you have any parting words? 

    PAPAGEORGIOU: No, I thank you very much. I thank you all for being here. I look forward to continuing to engage with you, and Martha and I know that we have a great relationship with all of you and a frequent interaction.  We are happy to continue taking your questions.  We now are moving forward completing the Fourth Review in the next couple of months, so we will certainly communicate more as we get towards that goal.  We will also try to have another similar discussion and press conference at the end of that review if all goes well.  Let me just mention again that we are fully committed in supporting the economy and the Sri Lankan authorities, both in the current issues that they are facing and just more broadly on formulating the appropriate policy responses and the necessary form.  Thank you all very much for being here.  I wish I was in Colombo, but I look forward to seeing you again in the next few months.  Thank you. 

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Pavis Devahasadin

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

    @IMFSpokesperson

    MIL OSI Economics –

    May 1, 2025

  • MIL-OSI Russia: Press Briefing Transcript: Staff Level Agreement on the Fourth Review of the Sri Lanka’s Reform Program Supported by the IMF’s Extended Fund Facility Arrangement

    Source: IMF – News in Russian

    April 29, 2025

    PARTICIPANTS: 

    EVAN PAPAGEORGIOU, Mission Chief for Sri Lanka, IMF

    PAVIS DEVAHASADIN, Communications Officer, IMF

    MARTHA TESFAYE WOLDEMICHAEL, Resident Representative in Sri Lanka, IMF

    *  *  *  *  * 

    DEVAHASADIN: I welcome you to the press conference on Sri Lanka, the Staff-Level Agreement of the Fourth Review of the economic program support by the EFF.  Today we have here Mr. Evan Papageorgiou, IMF Mission Chief for Sri Lanka.  He’s joined by Martha Woldemichael, IMF Representative in Sri Lanka. 

    Again, this is on the record.  The transcript will be available later.  We have a lot of people here, so we’re just going to start with Mr. Evan giving the brief remarks and then we move on to the Q&A session.  All right, Evan, over to you on the remarks.

    PAPAGEORGIOU: Yeah, thank you. Thank you, Pavis. Thank you also to Martha for being here.  And hello, everybody.  Good evening to those of you in Sri Lanka and good morning to the few folks here in Washington.  I thank you all for being here today.  I would have preferred to be with you in Colombo, but unfortunately this is not feasible this time.  We will have to talk through a screen. 

    By way of short introduction, as you heard, my name is Evan Papageorgiou.  I am the new Mission Chief for Sri Lanka for the IMF.  And some of you may know already that there has been a change in Mission Chief with this review, which is part of a routine rotation of people in the team.  I look forward to seeing some of you again.  I already had a chance to meet you a few weeks ago, or otherwise to meeting you all next time we’re in the country.  We had the opportunity to be in the country.  I led a team of economists visiting Colombo earlier this month, where we had productive discussions with the authorities.  These discussions continued here last week here in Washington, D.C., on the occasion of our Spring Meetings. 

    Okay.  So, as you may be aware, we have reached a staff-level agreement with Sri Lankan authorities on key economic policies, marking an important milestone toward concluding the Fourth Review of Sri Lanka’s reform program supported by the IMF’s Extended Fund Facility. 

    The staff-level agreement is contingent on two conditions.  First, the implementation of prior actions relating to restoring electricity cost-recovery pricing and ensuring proper function of the automatic electricity price adjustment mechanism.  And second, the usual completion of financing assurances review by multilateral and bilateral partners.  After successful implementation of these conditions and approval from the IMF Executive Board, Sri Lanka will unlock approximately USD $344 million in financing.  This funding will be crucial as the country navigates the recovery from economic challenges. 

    We are now halfway through the four-year EFF program, and I’m very pleased to stand before you today to share significant development regarding Sri Lanka’s economic journey.  The performance of the reform program has remained strong overall.  Economic growth is on the rebound.  We are seeing advancements in revenue mobilization, reserve accumulation is proceeding, and structural reforms continue, and some of them are well underway. 

    Very important to note also that debt restructuring is nearly complete and the government’s commitment to program objectives remains steadfast, and we got new assurances of this as recently as last week.  However, we must also acknowledge the significant downside risks posed by global trade policy uncertainty.  Should these risks materialize, we are prepared to work collaboratively with the authorities to assess their impact and formulate appropriate policy responses within the framework of the IMF-supported program.

    The country’s achievements under the ambitious reform agenda have been commendable.  The rebound in growth, for example, 5 percent year-on-year real growth in 2024, is a testament to the country’s resilience and determination and remarkable turnaround.  Furthermore, there has been significant improvement in the revenue performance, with revenue to the GDP climbing to 13.5 percent in 2024 from 8.2 percent in 2022.  Gross official reserves have also risen to $6.5 billion in end of March 2025, given the very good and strong FX purchases by the Central Bank of Sri Lanka.

    Now, as we move forward, it is essential that the government continues to prioritize sustained revenue mobilization efforts and prudent budget execution.  These measures are vital in preserving and continuing to build fiscal space and ensuring that there is room to respond to any shocks that may arise.  To that end, restoring cost-recovery electricity pricing is essential to minimize fiscal risks and enable appropriate electricity infrastructure and investments. 

    The tax exemption framework should be well designed to reduce fiscal costs and corruption risks while at the same time enabling necessary growth for the country.  Reforms to boost tax compliance are important to deliver revenue gains without resorting to additional tax measures. 

    We also recognize the critical responsibility of the government to protect the most vulnerable members of society during these uncertain times.  Improving the targeting adequacy of social safety nets will be a priority as they strive to provide support where it’s needed the most. 

    In conclusion, the sustained commitment of the government to the program objectives is commendable.  It ensures continuity and puts Sri Lanka on a path to continuing success and strong recovery.  We are determined to continue working with the authorities to safeguard their hard-won gains and pave the way forward towards robust and inclusive growth.  Thank you for your attention.  Martha and I look forward to your questions.  Thank you.  Pavis, back to you. 

    DEVAHASADIN: Thank you, Evan. We now move on to the Q&A section. But before we begin, I would like to say that for those who just joined, this session is being recorded.  Therefore, the transcript will be posted later, and otherwise we move on to the Q&A, and I just want to remind you to keep your questions short because we have a full house so we can give opportunity to other participants as well and stay on topic.  We can also follow up with you afterwards.  But please be mindful that we are discussing the SLA – the Fourth Review, today. 

    May I call — actually I saw your hand was up earlier, and then you put it down.  May I call you for the first question from Economy Next?

    QUESTIONER: Thank you.  Yes, my question is there has been some delay on the restructuring.  How concerned is the IMF on SOE restructuring?

    DEVAHASADIN: On the restructuring, debt restructuring, right?

    QUESTIONER: SOE.

    DEVAHASADIN: SOE.

    QUESTIONER: state-owned enterprise, yeah. 

    DEVAHASADIN: Okay. Anyone else on state-owned enterprise? And you can also just jump in.  I see some hands up, but I’m not sure if those participants are talking about — would like to talk about SOE, but otherwise we want to take questions on SOE first. 

    QUESTIONER: If I may add on the SOEs?  Just to add to that, specifically about Sri Lankan Airlines.  How concerned are you about Sri Lankan Airlines?  Because this is something that has been discussed for several years with a lot of other people as well as with the IMF.  Thank you. 

    DEVAHASADIN: Okay. Thank you so much.

    PAPAGEORGIOU: Yes, thank you. These are good questions. So let me start in general to make some points. 

    So under the program there has been, in general, commitment by the government from the beginning of the program until now to strengthen the governance of SOEs, to get to the bottom of their outstanding debt and resolving legacy debt that they — that’s out there — and implementing those that’s relevant to implementing cost recovery pricing to ensure that they remain financially viable.  These are all very important conditions because they will reduce fiscal risks to the government, to the states, and avoid that they become a burden for public finances, ultimately taxpayers, and all Sri Lankans. 

    So, within those commitments, it’s important to highlight a few that, under the program, these include also containing risks from the guarantees issued to SOEs.  For example, the EFF program includes indicative targets, which are setting ceilings on total and foreign currency treasury guarantees for SOEs.  Another condition is to refrain from new FX borrowing by non-financial state-owned enterprises that already have limited FX revenue so that we don’t introduce more wrong-way risk into these entities.  And also, another one, obviously very important one, is making SOEs more transparent.  You may be aware that we have been advocating and mandating to publishing audited financial statements for the 52 largest SOEs in a timely manner, and that will help bring more light and greater scrutiny. 

    It is also important to ensure that consumers of services of these SOEs receive the best value for the price they pay.  And obviously, that relates to a wider range of SOEs, including also the electricity and the fuel sector.  And this is the same thing as you would expect from a private company.  In other words, you would want SOEs run in the most efficient manner purely on commercial basis and ensuring that they are dependable and, of course, that they are free of corruption.  That is greater big disclosure, good disclosure to that extent. 

    There was a question on Sri Lankan Airlines.  So, we understand that the authorities are underway in preparing a medium-term strategic plan to restore Sri Lankan Airlines’ operational viability and to resolve its legacy debt.  We know that the current budget, the 2025 budget, has set aside 20 billion rupees to pay off some of the debt of the airline.  And we are also aware that Sri Lankan Airlines has also hired a financial advisor to restructure its international bond.  So, these are all steps in the right direction.  But we think these need to pick up pace and take up a little bit faster pace so we can have a good resolution of all these outstanding issues.  So, in general with SOEs, we think there is a way forward, and we want to see more progress there. 

    Thank you.  That was a good question.  Pavis, back to you. 

    DEVAHASADIN: Thank you, Evan. We have hands up.

    QUESTIONER: Thank you, Pavis, and thank you, Evan, for your presentation.  From News 1st here.  The conditions of the Fourth Review include implementing fire actions related to electricity cost-recovery pricing and ensuring that the automatic electricity price adjustment mechanism functions properly.  In your meetings with the government, do you see this realizing anytime soon?  Because according to the statement that was released earlier, it says that this condition is yet to be met.  Thank you. 

    PAPAGEORGIOU: Thank you. Thank you, I don’t know if — should we take another question? Maybe related to electricity to bunch them up a little bit? 

    DEVAHASADIN: Yep. Anyone else on electricity just come in please.

    QUESTIONER: What we expected the timeline to complete the required by actions such as electricity pricing and financing assurance for Board approval?

    QUESTIONER: I have also question on electricity.  Now, the current problem seems to have been coming from, because of a price cut by the regulator, which the utility didn’t ask for.  So, is there any attempt to give technical assistance or something so that the way the regulator calculates the profits or how they deal with the price proposal of the utility is improved so that this kind of thing doesn’t happen again?

    PAPAGEORGIOU: Thank you for the question. Let me first say that the issue of electricity is one where both the government and us see eye to eye, and there’s strong commitment in seeing these reforms take place because, as you know very well, electricity and dependability of electricity and the high price of electricity have been an issue for a very long time in Sri Lanka. So, government is committed to seeing, to taking the reforms and owning those reforms and making significant progress. 

    So yes, during the review mission discussions that we had in Colombo earlier in April, earlier this month, and here in Washington last week, we discussed many issues.  Our assessment is as early as back in February, when we went to the Board for our Third Review, our assessment of the time, and still is the same, is that the continuous structural benchmark on electricity cost recovery pricing is still not met.  And that means that the price of the tariff – it does not match, does not create enough of an ability for the utility, for the CEB, to be able to meet its costs, the generation costs, and transmission and distribution. 

    In addition to that, the automatic tariff adjustment mechanism based on the bulk supply transaction account, the BSTA, has not operated as we envisaged.  And the April tariff revision that was meant to take place in the second quarter of this year was not implemented.  So as a result of that, given the criticality of electricity cost recovery and under the program, we have proposed, IMF has proposed, the introduction of prior actions relating to restoring electricity cost-recovery pricing and ensuring proper function of the automatic electricity price adjustment mechanism, the BSTA, that I mentioned a few moments ago. 

    The implementation of these prior actions is an important milestone as a requisite, if you will, for the completion of the Fourth Review.  And in terms of the timing; there was a question — of course, we defer to the authorities and to the regulator, the PUCSL, on the exact timing for implementing these actions, these prior actions. But we urge them to do so as soon as possible so that the utility company, CEB, is not incurring financial losses on a forward-looking basis.  In other words, we should avoid, the authorities should avoid, a situation where debt is building up at the CEB, so that the utility company does not become again a significant contingent liability to the government and a burden to the taxpayer. so, it doesn’t become a fiscal drought. 

    I think this is well understood by the authorities.  It has been explained time and time again.  It’s a core pillar of the program that once it is resolved and properly held, it will help fiscal sustainability, and it will make electricity price generation more dependable.  And down the road this will allow for more stability, for more investment, and for the necessary steps to see electricity prices coming down. 

    Hopefully that answers your question, but I’m happy to follow up on anything else.  Thank you.  Pavis, back to you. 

    DEVAHASADIN: Thank you, Evan.

    QUESTIONER: I don’t think my question about whether you consider technical assistance to the regulator was answered.  I also have another question if you can answer. 

    PAPAGEORGIOU: Sure, sure. So yeah, thank you. There’s no technical assistance at the moment in terms of the electricity price generation or any other issues related to this.  In general, the energy policy and the policy for the energy sector, we think the pillars are — there should be a cost reflective energy pricing which is a building block of the program, and we think that within that there should be a greater stability, but it will allow for more reforms. 

    So now we know we understand that there are some proposed amendments to the Electricity Act that are underway, and these are expected to reflect the authority’s strategy to reform the electricity sector.  We understand also there is an intention to have unbundling of generation of transmission and distribution of power.  We obviously take note that there has been action and proposals for greater investment, including also for solar energy projects.  Again, we’re not advising exactly on these issues, but we look forward to seeing more. 

    Now, of course, on the strategy that should be supported by the key stakeholders.  I know that other multilateral, several development partners such as the World Bank and ADB are closely involved on electricity, and they are providing technical assistance to Sri Lanka. 

    So I think that goes to your point. Did you have another question as well? 

    QUESTIONER: Yes.  Regarding the — can you give us any idea about the timing of the review that might take place?  And also, when you said, policy responses that may be needed to meet the tariff problem, what kind of things were you thinking on?  Is it likely to jeopardize the targets and were you planning to give any waivers or what kind of policy responses?

    PAPAGEORGIOU: When you say tariffs do you mean not electricity tariffs, you mean export tariffs, right?

    QUESTIONER: No, no, sorry.  You said because of the tariff shock, from possible tariffs from the U.S. 

    PAPAGEORGIOU: Yes, that’s right.

    DEVAHASADIN: U.S. tariffs.

    QUESTIONER: Yeah.  So then that Sri Lanka might have to do some policy responses.  What kind of policy responses were you thinking?  And also, it jeopardizes the targets in the IMF performance criteria, will they be kind of given waivers? 

    PAPAGEORGIOU: Thank you.

    DEVAHASADIN: Before you begin, I would like to read this question. How do you see the impact U.S. labor tariff on Sri Lanka’s ability to secure and sustain the SLA with global partners?

    PAPAGEORGIOU: Yeah, great. Thank you; these are good questions. In terms of the timing, obviously things are still underway.  This is only a staff-level agreement, which means we have agreed on principle on many things of the underlying Fourth Review and conditions of the prior actions that I mentioned a few minutes ago.  I think there’s good momentum from the authorities’ and everybody else’s point of view in completing the review.  That takes a little while because we understand a lot of these issues are still being discussed and there is more work to be done, both from the authority side and from our side as well.  It’s a long process, as you probably know, in terms of us consulting and redrawing our numbers and our assumptions and having a great confidence in the direction of policy reforms and of the outlook and everything else.  I would say that it will take a little while, maybe a couple more months at least, in terms of finalizing the review.  So hopefully in two months’ time or so, by, let’s say, June, we should be able to have some more news for you on this front. 

    Now, on the issue of U.S. tariffs and how does it affect the country?  Obviously, as I mentioned, trade policy uncertainty is one of the issues that we have discussed quite extensively with the authorities on what could that mean for Sri Lanka’s economy and economic performance.  We know that, obviously, the authorities are committed to achieving program objectives and to see how the targets are being met.  They have also committed to addressing any sort of underperformance or deviation for program targets with remedial measures.  So, we think that we take this commitment very seriously, and we note their strong impetus for delivering on those. 

    Obviously, the global trade policy uncertainties, as I mentioned, is a significant risk.  All I can say at this point is that if these risks materialize, we will work with the authorities to assess the impact of those shocks, and we will support the country in formulating specific policy responses within the contours of the existing IMF program.  We have very frequent discussions with the authorities.  We were discussing, we were talking to them as recently as last Friday, as a few days ago.  We continue talking to them on a daily basis.  Martha talks to them on a constant basis.  And we continue conducting weekly monitoring meetings with the entire team, both here in Colombo as well, so that we can ensure that program performance remains on track. 

    This is all I can say for the moment, but it is very important to note also that the Sri Lankan authorities, the Sri Lankan government, have made great progress in establishing greater connection with bilateral trade partners, including the United States.  And we encourage more action and greater discussion in ensuring that there is a good outcome from these discussions and that the trade policy uncertainty gets resolved and there’s greater certainty. 

    DEVAHASADIN: Thank you. I just got the five minutes remaining warning. I would like to open the floor to anyone who hasn’t asked any questions.  Please feel free to jump in.  Otherwise, I’ll go back to the hand.  Anyone else who hasn’t asked any question?  Well, all right, I see one hand up.

    DEVAHASADIN: Thank you. We’ll come back to you.

    QUESTIONER: Thank you.  I just have a question.  It’s kind of a follow-up to Evan’s previous answer.  You talked about a very limited response that you can give talking about trade policy and the impact of the U.S. tariffs.  But you did say that Sri Lanka had expressed a sort of a commitment to work and work towards the targets it has agreed with the IMF.  But in the most recent weeks post those tariff announcements, targets, as much as you said that they have expressed a willingness to work within the framework – I think you said, within the contours of the agreement – has Sri Lanka expressed concerns about reaching those targets, particularly because these tariffs are believed broadly to have a potential impact on its export earnings?  Obviously, it’s foreign currency earnings and things like that.  So how much of a concern have you heard from the Sri Lankan authorities?  And what is the sort of leeway or the kind of flexibility that Sri Lanka would have within the agreement with the IMF?  I’m sure you have this with a lot of sort of your agreements, but, yeah, where Sri Lanka is concerned, how do you see it?  Thank you. 

    PAPAGEORGIOU: Thank you. That’s a good question. It follows through a little bit from my previous answer, as you said.  I don’t know, given that we don’t have much time, let me go ahead and answer this and maybe we can give five more minutes, Pavis, to other people to ask questions as well. 

    DEVAHASADIN: Sounds good.

    PAPAGEORGIOU: So, first of all, every review, now we’re on the Fourth Review, of the program is an opportunity to assess the economic developments, to review program targets, and to determine the reform agenda and the reform measures that the authorities plan for the period ahead. It just happened that in this review we have a significant trade policy shock. So, in these discussions, we’ve had an understanding of what are the concerns and what is the kind of shock.  And by the way, this is something that we also, as Fund staff, are trying to implement, to understand, to comprehend, and to put into our outlook. 

    So obviously, the 44 percent tariff on Sri Lanka that was announced on April 2nd would have a significant impact, and the authorities understand this very well.  The impact obviously will be on the apparel and rubber industries.  Obviously, as you know very well, these account for a very large share of the country’s exports to the United States.  I believe it’s almost three-quarters, or over 70 percent.  And also, the real sector implications of these are very important because these two sectors, apparel and rubber, employ a lot of workers, in Sri Lanka. Just the apparel industry alone is over 300,000 workers or 320,000 workers.  So, the 90-day pause that was announced has allowed the authorities to engage constructively with the United States.  And we take, take very positive note on this. 

    Now, within, in general, as I mentioned, the global trade policy uncertainty for any small open economy and definitely for Sri Lanka poses significant downside risks.  For these discussions, we understand, obviously, the issues that arise and how they should be baked into the program.  If there is any substantial risk that may pan out either on the back of tariffs or some other disruption, we will work with the authorities to incorporate them to assess their impact and put them into policy responses. 

    At this point, it will be a little premature of me to talk about specific issues, but we’ve had a lot of discussions, and we think that the authorities are doing the best they can to address these issues.  It’s important to also mention that here that any time is a good time for implementing more reforms for discussing greater options towards having more trade policy responses.  And we believe that Sri Lanka should continue exploring also additional ways in making its exports more marketable and appealing to a wider range of counterparts. 

    DEVAHASADIN: Thank you, Evan. I’ll give the final question. We are running out of time, but I think we have enough time for one last question.

    QUESTIONER: Thank you.  It’s about the tax revenues.  According to the 2025 budget, much of the tax revenue is expected from vehicle imports, and we have — from the dealers that of the vehicles have been imported in the last two months, about 75 percent have been sold.  Of course, even though 25 percent may not have been sold, still the government has got revenue for those because they have been cleared through customs. That is no issue, but it would probably have implications for future demand.  So, the market is sort of not as vibrant, as there doesn’t seem to be a huge pent-up demand.  How concerned are you that this one single item in the budget, which is sort of going to underpin tax revenue, may not materialize this year?  Thank you.  Thank you.

    PAPAGEORGIOU: So obviously the authorities have made significant progress on creating greater opportunities for revenue and for collecting more. You may very well know that the situation was far worse in terms of tax revenue, as I mentioned in my earlier remarks, as early as couple of years ago. So obviously there is definitely progress. On this year’s discussion,

    I think there is a lot of the progress; has been a positive one.  There has been greater progress towards ensuring more revenue that could be collected from a range of measures.  You mentioned very accurately that the lifting of the import ban on motor vehicles is a very, very important. I would say the primary measure underpinning the revenue package.  We saw that, also in the budget, it is expected to yield 1.2 percent of GDP in 2025.  And that’s about 80 percent of the 1.5 percent of GDP in all tax revenue.  So obviously, as you mentioned, this is very important to get right and to continue with the momentum. 

    We note from the latest data that we have monitoring and we’re getting is that there is actually a good momentum on those motor vehicle imports.  So as my latest data — I was trying to find them — from what I remember, there has been quite a lot of good increase in the letters of credit.  I believe it’s around USD $350 million that were open.  These are letters of credit that are attached to importing vehicles.  So, we think that the associated revenue that will be incurred from those imports is starting to come on pace, and that’s a very important and encouraging sign.  So, we look forward to seeing more. 

    Of course, I mentioned a moment ago as well that if there are signs that — that there is underperformance of revenues or if there is a revenue shortfall, we have discussed with the authorities, and they are committed to implementing contingency revenue measures, and this will go a long way in ensuring fiscal sustainability and greater revenue.  Thank you. 

    DEVAHASADIN: Thank you, Evan. Unfortunately, we’re at time. Before we close, Evan, do you have any parting words? 

    PAPAGEORGIOU: No, I thank you very much. I thank you all for being here. I look forward to continuing to engage with you, and Martha and I know that we have a great relationship with all of you and a frequent interaction.  We are happy to continue taking your questions.  We now are moving forward completing the Fourth Review in the next couple of months, so we will certainly communicate more as we get towards that goal.  We will also try to have another similar discussion and press conference at the end of that review if all goes well.  Let me just mention again that we are fully committed in supporting the economy and the Sri Lankan authorities, both in the current issues that they are facing and just more broadly on formulating the appropriate policy responses and the necessary form.  Thank you all very much for being here.  I wish I was in Colombo, but I look forward to seeing you again in the next few months.  Thank you. 

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Pavis Devahasadin

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2025/04/30/tr-042925-press-briefing-sla-4th-rev-sri-lankas-reform-program-supported-by-eff-arrangement

    MIL OSI

    MIL OSI Russia News –

    May 1, 2025

  • MIL-OSI USA: Governor Kehoe Orders Capitol Dome Lighted Blue in Honor of Fallen Law Enforcement Officers

    Source: US State of Missouri

    APRIL 30, 2025

    Jefferson City — In honor of Missouri’s fallen law enforcement officers, Governor Mike Kehoe ordered the Missouri State Capitol dome and Missouri Law Enforcement Memorial to shine blue beginning at sunset on Friday, May 2, 2025, until sunrise on Sunday, May 4, 2025.

    “The Missouri Capitol dome will shine blue this weekend as we honor and remember the law enforcement officers who made the ultimate sacrifice,” Governor Kehoe said. “It takes great courage, strength, and commitment for law enforcement officers to put on their uniform each day knowing that their duty requires them to run toward the dangers that others flee. We have a responsibility to honor the fallen and ensure they are never forgotten.”

    The annual ceremonies honoring fallen Missouri law enforcement officers will be held at the Missouri Law Enforcement Memorial on the north side of the State Capitol. The 2025 Candlelight Vigil will be held on Friday, May 2, and the Memorial Service will take place on Saturday, May 3.

    The names of four law enforcement officers who died in the line of duty during 2024 have been added to the memorial’s Wall of Honor in advance of this year’s ceremonies, as well as two  historical officer deaths for which the line of duty circumstances have recently been confirmed through research. The Wall of Honor now includes 752 fallen officers.

    Line-of-Duty Deaths

    • Cody R. Allen – On Feb. 29, 2024, Independence Police Department Officer Cody Allen was shot and killed while responding to the shooting of Jackson County Civil Process Server Drexel Mack, who had been serving an eviction notice.
    • Stephen A. Singer – Early on the morning of April 8, 2024, Lake Lafayette Police Department Chief Steven Singer died in his home as a result of a heart attack. The evening before, he had pursued several suspects who were trespassing with utility task vehicles (UTV) near the dam at Lake Lafayette.
    • Phylicia Carson – On Aug. 31, 2024, Osage Beach Police Department Officer Phylicia Carson was killed in a vehicle crash while responding to assist another officer involved in a vehicle pursuit.
    • David Lee III – On Sept. 22, 2024, St. Louis Metropolitan Police Department Officer David Lee III was struck by a vehicle and killed while assisting at the scene of a motor vehicle crash on eastbound I-70. Officer Lee was setting out flares when a speeding drunk driver lost control of his vehicle and struck him.
    • Noah Bowles – On Feb. 8, 1904, Lewistown Marshal Noah Bowles was attempting to arrest a man for public intoxication on a railway platform in Lewistown. The suspect, who had allegedly been harassing passengers on a recently arrived train, fatally shot Marshal Bowles with a revolver.
    • George D. Hooper – On March 17, 1918, Webb City Police Department Chief George Hooper was shot and killed in an exchange of gunfire. He had approached a gunman who had been firing a handgun and pursuing a woman on foot near railroad tracks. The gunman shot Chief Hooper, who returned fire. A deputy sheriff shot and killed the gunman.

    The families of the fallen and representatives of law enforcement agencies from across Missouri will participate in the ceremonies.

    Friday May 2, 2025

    Candlelight vigil honoring Missouri law enforcement officers who died in the line of duty

    When: 8:00 p.m.

    Where: Law Enforcement Memorial at the Missouri State Capitol, located on North Capitol Drive

    Media: Open

    Saturday, May 3, 2025

    Governor Kehoe and Attorney General Bailey to deliver remarks at memorial service honoring Missouri law enforcement officers who died in the line of duty

    When: 10:00 a.m.

    Where: Law Enforcement Memorial at the Missouri State Capitol, located on North Capitol Drive

    Media: Open (Saturday’s service will be livestreamed on the Missouri Department of Public Safety Facebook page)

    Photos of the Capitol lighted blue will be available on Governor Kehoe’s Flickr Page.

    ###

     

    MIL OSI USA News –

    May 1, 2025
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