Market Newsdesk

February 5, 2025 4:33 pm

Great Elm Group Reports Fiscal 2025 Second Quarter Financial Results

Company to Host Conference Call at 8:30 a.m. ET on February 6, 2025

PALM BEACH GARDENS, Fla., Feb. 05, 2025 (GLOBE NEWSWIRE) — Great Elm Group, Inc. (“we,” “our,” “GEG,” “Great Elm,” or “the Company”), (NASDAQ: GEG), an alternative asset manager, today announced financial results for its fiscal second quarter ended December 31, 2024.

Fiscal Second Quarter 2025 and Recent Highlights

Great Elm Capital Corp. (NASDAQ: GECC) raised an additional $13.2 million of equity at NAV in December 2024, through the issuance of approximately 1.1 million shares of GECC common stock to Summit Grove Partners (“SGP”).
On February 4, 2025, the Company acquired the assets of Greenfield CRE, a leading construction management company and longstanding partner of Monomoy.
- In connection with the acquisition, Great Elm formed Monomoy Construction Services, LLC (“MCS”) and combined Greenfield with Monomoy BTS Construction Management to launch an integrated, full-service construction business.
- MCS will be dedicated to serving Great Elm’s various real estate verticals, as well as expanding its existing third-party consulting business.
GEG’s fee-paying assets under management (“FPAUM”) and assets under management (“AUM”) totaled approximately $538 million and $751 million, respectively.
- FPAUM and AUM growth of 17% and 14%, respectively, compared to the prior-year period.
Total revenue for the second quarter grew 24% to $3.5 million, compared to $2.8 million for the prior-year period.
- Growth in revenue was primarily driven by increased revenue from Monomoy BTS, Corporation and increased GECC management fees, due to growth in FPAUM.
- Great Elm collected incentive fees from GECC totaling $0.5 million for the three months ended December 31, 2024.
Net income from continuing operations for the second quarter was $1.4 million, compared to a net loss from continuing operations of ($0.2) million in the prior-year period.
Adjusted EBITDA for the second quarter was $1.0 million, compared to $0.6 million in the prior-year period.
Through February 4, 2025, Great Elm has repurchased approximately 4.1 million shares for $7.4 million, at an average price of $1.83 per share, through its share repurchase program.
- Book value per share was $2.30 as of December 31, 2024, excluding Consolidated Funds.
As of December 31, 2024, GEG had approximately $44 million of cash on its balance sheet to support growth initiatives across its alternative asset management platform.

Management Commentary

Jason Reese, Chief Executive Officer of the Company, stated, “We delivered a solid fiscal second quarter 2025, continuing our positive momentum by expanding our assets under management, growing revenue across our credit and real estate businesses and generating strong returns on our investments. Our BDC closed another successful capital raise at NAV, increased its first quarter dividend to 37 cents per share and announced a special dividend in December of 5 cents per share. Additionally, the Great Elm Credit Income Fund (“GECIF”) continued to perform very well, closing December with net inception-to-date returns of approximately 13.9%.¹ GECIF’s established track record leaves us well-positioned to attract further capital to scale our investment management platform.”

“In Real Estate, we were thrilled to announce the acquisition of Greenfield CRE into our newly formed Monomoy Construction Services business. We expect this transaction to enhance our construction management expertise, expand our scope of services, and fortify our overall real estate value proposition to our investors and tenants. Our long-standing relationship with Greenfield will allow us to quickly benefit from the launch of our fully integrated, full-service real estate platform. Importantly, we maintained our commitment to the GEG share repurchase program, continuing to buy back shares at an attractive discount to book value. Looking ahead, we remain focused on executing on our strategic priorities: growing our core credit and real estate businesses, pursuing compelling investment opportunities across our platform and leveraging our strong balance sheet to maximize shareholder value.”

GEG Managed Vehicle Highlights

GECC demonstrated continued strong performance, raised meaningful capital and increased its quarterly base distribution.
- GECC raised $13.2 million of equity at Net Asset Value (“NAV”) through the issuance of approximately 1.1 million shares of GECC common stock to SGP.
- GEG demonstrated its commitment to growing its credit platform through a $3.3 million investment in SGP.
- GECC announced a 5.7% increase on its quarterly base distribution to $0.37 per share for the first quarter of 2025 (compared to the prior $0.35 per share) and paid a special cash distribution of $0.05 per share in January 2025.
Monomoy BTS and Monomoy REIT continued to execute on their strategic priorities.
- Monomoy BTS completed construction of its second build-to-suit property in Mississippi and made meaningful progress on its third project in Florida.
- Monomoy REIT closed on three property purchases for approximately $3.8 million and maintains a strong pipeline of transaction opportunities and open requirements from our tenants.
GECIF delivered a strong return on invested capital of approximately 13.9%, net of fees, for the period from its inception through December 31, 2024.¹

Discussion of Financial Results for the Fiscal Second Quarter Ended December 31, 2024

GEG reported total revenue of $3.5 million, up 24% from $2.8 million in the prior-year period.

GEG recorded net income from continuing operations of $1.4 million, compared to a net loss from continuing operations of ($0.2) million in the prior-year period.

GEG recorded Adjusted EBITDA of $1.0 million, compared to $0.6 million in the prior-year period.

Monomoy CRE, LLC Acquisition

On February 4, 2025, Great Elm acquired the assets of Greenfield, a leading construction management company and longstanding partner of MCRE, our real estate investment manager. In connection with the acquisition, Great Elm formed Monomoy Construction Services, LLC and combined the assets of Greenfield with the assets of Monomoy BTS Construction Management to launch an integrated, full-service construction business. With MCS, Monomoy will offer a full-service, in-house suite of project management, procurement, construction management, asset management, market analysis and feasibility services for its industrial real estate tenants.

Stock Repurchase Program

In the fiscal first quarter 2025, GEG’s Board of Directors approved an incremental stock repurchase program under which GEG is authorized to repurchase up to $20 million in the aggregate of its outstanding common stock in the open market. As of February 4, 2025, the Company has repurchased approximately 4.1 million shares for $7.4 million under this program.

Fiscal 2025 Second Quarter Conference Call & Webcast Information

When:		Thursday, February 6, 2025, 8:30 a.m. Eastern Time (ET)

Call:		All interested parties are invited to participate in the conference call by dialing +1 (877) 407-0752; international callers should dial +1 (201) 389-0912. Participants should enter the Conference ID 13746970 if asked.

Webcast:		The conference call will be webcast simultaneously and can be accessed here. A copy of the slide presentation accompanying the conference call, can be found here.

About Great Elm Group, Inc.

Great Elm Group, Inc. (NASDAQ: GEG) is a publicly-traded, alternative asset manager focused on growing a scalable and diversified portfolio of long-duration and permanent capital vehicles across credit, real estate, specialty finance, and other alternative strategies. Great Elm Group, Inc. and its subsidiaries currently manage Great Elm Capital Corp., a publicly-traded business development company, and Monomoy Properties REIT, LLC, an industrial-focused real estate investment trust, in addition to other investments. Great Elm Group, Inc.’s website can be found at www.greatelmgroup.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements in this press release that are “forward-looking” statements, including statements regarding expected growth, profitability, acquisition opportunities and outlook involve risks and uncertainties that may individually or collectively impact the matters described herein. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made and represent Great Elm’s assumptions and expectations in light of currently available information. These statements involve risks, variables and uncertainties, and Great Elm’s actual performance results may differ from those projected, and any such differences may be material. For information on certain factors that could cause actual events or results to differ materially from Great Elm’s expectations, please see Great Elm’s filings with the Securities and Exchange Commission (“SEC”), including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Additional information relating to Great Elm’s financial position and results of operations is also contained in Great Elm’s annual and quarterly reports filed with the SEC and available for download at its website www.greatelmgroup.com or at the SEC website www.sec.gov.

Non-GAAP Financial Measures

The SEC has adopted rules to regulate the use in filings with the SEC, and in public disclosures, of financial measures that are not in accordance with US GAAP, such as adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). Adjusted EBITDA is derived from methodologies other than in accordance with US GAAP. Great Elm believes that Adjusted EBITDA is an important measure for investors to use in evaluating Great Elm’s businesses. In addition, Great Elm’s management reviews Adjusted EBITDA as they evaluate acquisition opportunities.

Adjusted EBITDA has limitations as an analytical tool, and you should not consider it either in isolation from, or as a substitute for, analyzing Great Elm’s results as reported under US GAAP. Non-GAAP financial measures reported by Great Elm may not be comparable to similarly titled amounts reported by other companies.

Included in the financial tables below is a reconciliation of Adjusted EBITDA to the most directly comparable US GAAP financial measure, net income from continuing operations.

Endnotes

¹Assumes invested at inception on November 1, 2023, and remained invested throughout the succeeding fourteen months ended December 31, 2024, with distributions reinvested, net of founder’s class fees and expenses. Performance results should not be regarded as final until audited financial statements are issued covering the period shown. Past performance is no guarantee of future results. This press release does not constitute an offer to sell or a solicitation of an offer to buy interests in any investment vehicle managed by Great Elm or its affiliates. Any such offer or solicitation will only be made pursuant to the applicable offering documents for such investment vehicle.

Media & Investor Contact:

Investor Relations
[email protected]

Great Elm Group, Inc.

Condensed Consolidated Balance Sheets (unaudited)

Dollar amounts in thousands (except per share data)

ASSETS	December 31, 2024			June 30, 2024
Current assets
Cash and cash equivalents	$	44,288		$	48,147
Restricted cash		–			1,571
Receivables from managed funds		3,725			2,259
Investments in marketable securities		–			9,929
Investments, at fair value		49,918			44,585
Prepaid and other current assets		5,275			1,215
Real estate assets, net		6,524			5,769
Assets of Consolidated Funds:
Cash and cash equivalents		2,568			2,371
Investments, at fair value		11,902			11,471
Other assets		223			253
Total current assets		124,423			127,570
Identifiable intangible assets, net		10,510			11,037
Right-of-use assets		1,784			225
Other assets		1,770			1,614
Total assets	$	138,487		$	140,446
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	185		$	317
Payable for securities purchased		19			–
Accrued expenses and other current liabilities		2,817			7,009
Current portion of related party payables		254			634
Current portion of lease liabilities		335			137
Liabilities of Consolidated Funds:
Payable for securities purchased		340			100
Accrued expenses and other liabilities		151			162
Total current liabilities		4,101			8,359
Lease liabilities, net of current portion		1,442			57
Long-term debt (face value $26,945)		26,231			26,090
Related party payables, net of current portion		–			–
Convertible notes (face value $36,380 and $35,494, including $16,578 and $16,174 held by related parties, respectively)		35,838			34,900
Other liabilities		817			845
Total liabilities		68,429			70,251
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.001 par value; 5,000,000 authorized and zero outstanding		–			–
Common stock, $0.001 par value; 350,000,000 shares authorized and 29,519,825 shares issued and 27,150,036 outstanding at December 31, 2024; and 31,875,285 shares issued and 30,494,448 outstanding at June 30, 2024		26			30
Additional paid-in-capital		3,311,447			3,315,638
Accumulated deficit		(3,249,139	)		(3,252,954	)
Total Great Elm Group, Inc. stockholders’ equity		62,334			62,714
Non-controlling interests		7,724			7,481
Total stockholders’ equity		70,058			70,195
Total liabilities and stockholders’ equity	$	138,487		$	140,446

Great Elm Group, Inc.

Condensed Consolidated Statements of Operations (unaudited)

Amounts in thousands (except per share data)

	For the three months ended December 31,						For the six months ended December 31,
	2024			2023			2024			2023
Revenues	$	3,507		$	2,819		$	7,499		$	6,129
Cost of revenues		458			–			1,093			–
Operating costs and expenses:
Investment management expenses		3,431			2,839			6,489			5,601
Depreciation and amortization		284			283			557			566
Selling, general and administrative		1,306			2,393			3,312			4,108
Expenses of Consolidated Funds		5			–			21			–
Total operating costs and expenses		5,026			5,515			10,379			10,275
Operating loss		(1,977	)		(2,696	)		(3,973	)		(4,146	)
Dividends and interest income		1,567			2,072			3,125			4,058
Net realized and unrealized gain		2,428			1,204			6,206			4,488
Net realized and unrealized gain (loss) on investments of Consolidated Funds		(29	)		114			249			114
Interest and other income of Consolidated Funds		395			128			779			128
Interest expense		(1,030	)		(1,061	)		(2,058	)		(2,123	)
(Loss) income before income taxes from continuing operations		1,354			(239	)		4,328			2,519
Income tax benefit (expense)		–			–			–			–
Net (loss) income from continuing operations		1,354			(239	)		4,328			2,519
Discontinued operations:
Net income from discontinued operations		–			–			–			16
Net (loss) income	$	1,354		$	(239	)	$	4,328		$	2,535
Less: net income attributable to non-controlling interest, continuing operations		178			111			513			111
Net (loss) income attributable to Great Elm Group, Inc.	$	1,176		$	(350	)	$	3,815		$	2,424
Net (loss) income attributable to shareholders per share
Basic	$	0.04		$	(0.01	)	$	0.13		$	0.08
Diluted	$	0.04		$	(0.01	)		0.12			0.08
Weighted average shares outstanding
Basic		27,983			29,889			28,531			29,734
Diluted		28,767			29,889			39,793			30,916

Great Elm Group, Inc.

Reconciliation from Net Income (loss) from Continuing Operations to Adjusted EBITDA

Dollar amounts in thousands

	Three months ended December 31,						Six months ended December 31,
(in thousands)	2024			2023			2024			2023
Net income (loss) from continuing operations – GAAP	$	1,354		$	(239	)	$	4,328		$	2,519
Interest expense		1,030			1,061			2,058			2,123
Income tax expense (benefit)		–			–			–			–
Depreciation and amortization		284			283			557			566
Non-cash compensation		755			839			1,872			1,726
(Gain) loss on investments		(2,399	)		(1,318	)		(6,455	)		(4,602	)
Change in contingent consideration		–			18			(6	)		36
Adjusted EBITDA	$	1,024		$	644		$	2,354		$	2,368

February 5, 2025 4:33 pm

Black Hills Corp. Reports 2024 Fourth-Quarter and Full-Year Results and Initiates 2025 Earnings Guidance

Delivered 2024 EPS of $3.91, or 4.3% growth from the midpoint of 2023 earnings guidance
Increasing five-year capital forecast by 10% to $4.7 billion for 2025 through 2029, including $1.0 billion for 2025
Projecting total data center load exceeding one gigawatt from existing customers
Increased quarterly dividend by 4%, extending track record of annual dividend increases to 55 consecutive years
Initiating 2025 earnings guidance range at $4.00 to $4.20 per share

RAPID CITY, S.D., Feb. 05, 2025 (GLOBE NEWSWIRE) — Black Hills Corp. (NYSE: BKH) today announced financial results for the fourth quarter and full year ending Dec. 31, 2024. Operating income, net income available for common stock and earnings per share for the three and twelve months ended Dec. 31, 2024, compared to the three and twelve months ended Dec. 31, 2023, were:

	Three Months Ended Dec. 31,				Twelve Months Ended Dec. 31,
	2024		2023		2024		2023
	(in millions, except per share amounts)
Operating Income	$	163.3	$	136.5	$	503.1	$	472.7
Net income available for common stock	$	98.1	$	79.6	$	273.1	$	262.2
Earnings per share, Diluted	$	1.37	$	1.17	$	3.91	$	3.91

Earnings of $3.91 per share for 2024 benefited from $0.82 per share of new rates, rider recovery, and customer growth. Significant expense management measures offset the impacts of mild weather, unplanned generation outages and higher insurance expense.

“We advanced our regulatory and growth initiatives and delivered strong earnings,” said Linn Evans, president and CEO of Black Hills Corp. “I’m proud of our team’s execution and our relentless commitment to providing safe, reliable, and cost-effective service. We reached constructive settlements for our natural gas rate reviews in Arkansas and Iowa. We also maintained our solid financial position and credit ratings, achieving our long-term capitalization target during the year. On behalf of our customers, we invested approximately $800 million in our electric and gas infrastructure. This included energizing the first phase of our Ready Wyoming transmission expansion, the largest transmission project in our company’s history.

“As we roll forward our five-year plan, I’m confident in our 4% to 6% long-term EPS growth target given our customer-focused capital outlook and growth opportunities. We increased our capital forecast by 10% through 2029 to $4.7 billion. We have a pipeline of data center demand exceeding one gigawatt from existing customers within the next 10 years. Approximately 500 megawatts of that demand is expected to be served by the end of 2029 through our innovative tariff that requires minimal capital. We expect this demand to more than double EPS contribution to greater than 10% by year-end 2029. Additionally, upside potential from data centers and other organic growth in our service territories is expected to drive future transmission and generation investment opportunities above and beyond our current five-year plan,” concluded Evans.

FOURTH-QUARTER AND FULL-YEAR 2024 HIGHLIGHTS AND RECENT UPDATES

Electric Utilities

On Jan. 20, 2025, Wyoming Electric set a new all-time peak load of 318 megawatts for the nineteenth consecutive year, surpassing the previous winter and all-time peak on Jan. 11, 2024, of 314 megawatts. Prior to 2024, the previous winter peak was 301 megawatts in December 2023 and the all-time peak was 312 megawatts in July 2023.
On Dec. 19, Wyoming Electric placed in service the initial phase of its approximately 260-mile, $350-million Ready Wyoming electric transmission expansion project. The first 12-mile transmission line segment and two substations near Cheyenne, Wyoming, were completed and energized, adding approximately $40 million of rate base being recovered through the transmission rider. Construction is on schedule for the two major lines heading northeast and northwest from Cheyenne, with both lines interconnecting with the South Dakota Electric system. The project is being constructed in multiple segments and is expected to be completed and in service by year-end 2025.
During the fourth quarter, Colorado Electric received final approval of its Clean Energy Plan from the Colorado Public Utilities Commission for 350 megawatts of new renewable generation resources. The decision includes a 100-megawatt utility-owned solar project, 50-megawatt utility-owned battery storage project and a 200-megawatt solar power purchase agreement.
During the fourth quarter, South Dakota Electric continued to pursue the addition of 99 megawatts of utility-owned, dispatchable natural gas resources by the second half of 2026. During the first quarter of 2025, the company expects to request a certificate of public convenience and necessity (CPCN) in Wyoming.
On July 11, Wyoming Electric announced its partnership with Meta to provide power for its newest AI data center to be constructed in Cheyenne, Wyoming. The company will serve Meta under its Large Power Contract Service tariff and procure customized energy resources essential to Meta’s operations and sustainability objectives.
On June 14, Colorado Electric filed a rate review request with the Colorado Public Utilities Commission seeking the recovery of significant infrastructure investments in its 3,200-mile electric distribution and 600-mile electric transmission systems. The company expects a final decision on the request from the CPUC in the first quarter or early second quarter of 2025. Timing and implementation of new rates will be subject to a final decision.

Gas Utilities

On Feb. 3, 2025, Kansas Gas filed a rate review request with the Kansas Corporation Commission seeking approval to recover approximately $118 million of system investments and inflationary impacts on expenses to serve customers. The rate review requested $17 million of new annual revenue based on a capital structure of approximately 50% equity and 50% debt and a return on equity of 10.5%. New rates are requested in the second half of 2025.
On Jan. 1, 2025, new final rates were effective for Iowa Gas resulting from an approved settlement agreement for its rate review request filed May 1, 2024. The approved black box settlement provides $15 million of new annual revenue based on a weighted average cost of capital of 7.21%.
On Oct. 1, new rates were effective for Arkansas Gas resulting from an approved settlement agreement for its rate review request filed in December 2023. The settlement provides $25 million of new annual revenue based on a capital structure of 46% equity and 54% debt and a return on equity of 9.85%.
On Feb. 13, new rates were effective for Colorado Gas resulting from an approved settlement agreement for its rate review request filed in May 2023. The settlement provides for $20 million in new annual revenue based on a capital structure of 51% equity and 49% debt and a return on equity of 9.3%.
On Feb. 1, 2024, new rates were effective for Wyoming Gas resulting from an approved settlement agreement for its rate review request filed in May 2023. The settlement provides for $14 million in new annual revenue based on a capital structure of 51% equity and 49% debt and a return on equity of 9.9%. The agreement also provides for a four-year renewal of the company’s integrity investment rider.
On Jan. 31, 2024, Black Hills Energy Renewable Resources, a non-regulated subsidiary of Black Hills Corp., acquired a renewable natural gas (RNG) production facility at a landfill in Dubuque, Iowa. The purchase includes producing biogas wells and rights to production, including the ability to drill additional wells. The acquisition represents the company’s first entry into the production of RNG.

Corporate and Other

On Jan. 24, 2025, Black Hills’ board of directors approved a quarterly dividend of $0.676 per share payable on March 1, 2025, to common shareholders of record at the close of business on Feb. 18, 2025. The dividend represents an increase in the quarterly dividend of $0.026 per share, or 4.0%. On an annualized rate, the dividend represents 55 consecutive years of increases, the second-longest track record in the electric and natural gas industry.
During 2024, the company issued a total of 3.3 million shares of new common stock for net proceeds of $182 million.
On May 31, Black Hills amended and restated its revolving credit facility with similar terms as the former facility, maintaining total commitments of $750 million and extending the term through May 31, 2029.
On May 16, Black Hills completed a public debt offering of $450 million, 6.00% senior unsecured notes due Jan. 15, 2035. Proceeds were used for general corporate purposes and, along with available cash or short-term borrowings under the company’s existing facilities, to repay the $600 million notes which were due Aug. 23, 2024.
Black Hills maintained its solid investment-grade credit ratings by rating agencies covering the company.
- On Jan. 17, 2025, Fitch affirmed Black Hills’ long-term issuer rating at BBB+ with a negative outlook. Following the affirmation, the parties jointly withdrew the rating.
- On Jan. 8, 2025, Moody’s Investor Service affirmed Black Hills’ long-term issuer rating at Baa2 with a stable outlook.
- On May 9, 2024, S&P Global Ratings affirmed Black Hills’ issuer credit rating at BBB+ with a stable outlook.

2025 EARNINGS GUIDANCE INITIATED

Black Hills initiates its guidance for 2025 earnings per share available for common stock to be in the range of $4.00 to $4.20, based on the following assumptions:

Normal weather conditions within our utility service territories;
Constructive and timely outcomes of utility regulatory dockets;
Excludes mark-to-market adjustments;
No unplanned outages at our generation facilities;
Compounded annual growth rate of approximately 3.5% for operations and maintenance expense (excludes depreciation and amortization and taxes other than income taxes) off 2023 of $552 million
Equity issuance between $215 million and $235 million; and
An effective tax rate of approximately 13% for the full year.

BLACK HILLS CORPORATION CONSOLIDATED FINANCIAL RESULTS (Minor differences may result due to rounding)
	Three Months Ended Dec. 31,						Twelve Months Ended Dec. 31,
	2024			2023			2024			2023
	(in millions)
Revenue	$	597.1		$	591.7		$	2,127.7		$	2,331.3

Operating expenses:
Fuel, purchased power, and cost of natural gas sold		212.1			233.1			730.3			982.9
Operations and maintenance		136.2			139.5			557.0			552.0
Depreciation and amortization		68.3			65.6			270.1			256.8
Taxes other than income taxes		17.2			17.0			67.2			66.9
Total operating expenses		433.8			455.2			1,624.6			1,858.6

Operating income		163.3			136.5			503.1			472.7

Interest expense, net		(49.7	)		(41.9	)		(181.7	)		(167.9	)
Other income (expense), net		0.1			(1.8	)		(1.4	)		(3.2	)
Income tax (expense)		(12.7	)		(9.6	)		(36.3	)		(25.6	)
Net income		101.0			83.2			283.7			276.0
Net income attributable to non-controlling interest		(2.9	)		(3.6	)		(10.6	)		(13.8	)
Net income available for common stock	$	98.1		$	79.6		$	273.1		$	262.2

Weighted average common shares outstanding (in millions):
Basic		71.4			67.9			69.8			67.0
Diluted		71.6			68.0			69.9			67.1

Earnings per share:
Earnings per share, Basic	$	1.37		$	1.17		$	3.91		$	3.91
Earnings per share, Diluted	$	1.37		$	1.17		$	3.91		$	3.91

CONSOLIDATING INCOME STATEMENTS — FOURTH QUARTER
(Minor differences may result due to rounding)
	Consolidating Income Statement
Three Months Ended Dec. 31, 2024	Electric Utilities		Gas Utilities		Corporate and Other			Total
	(in millions)
Revenue	$	216.3	$	385.2	$	(4.4	)	$	597.1

Fuel, purchased power and cost of natural gas sold		50.7		161.4		–			212.1
Operations and maintenance		62.2		78.0		(4.0	)		136.2
Depreciation and amortization		36.5		31.8		–			68.3
Taxes other than income taxes		10.0		7.2		–			17.2
Operating income	$	56.9	$	106.8	$	(0.4	)	$	163.3

Interest expense, net									(49.7	)
Other income (expense), net									0.1
Income tax benefit (expense)									(12.7	)
Net income									101.0
Net income attributable to non-controlling interest									(2.9	)
Net income available for common stock								$	98.1

	Consolidating Income Statement
Three Months Ended Dec. 31, 2023	Electric Utilities		Gas Utilities		Corporate and Other			Total
	(in millions)
Revenue	$	215.9	$	380.3	$	(4.5	)	$	591.7

Fuel, purchased power and cost of natural gas sold		52.9		180.4		(0.2	)		233.1
Operations and maintenance		59.4		81.9		(1.8	)		139.5
Depreciation and amortization		35.9		29.6		0.1			65.6
Taxes other than income taxes		9.6		7.4		–			17.0
Operating income	$	58.1	$	81.0	$	(2.6	)	$	136.5

Interest expense, net									(41.9	)
Other income (expense), net									(1.8	)
Income tax benefit (expense)									(9.6	)
Net income									83.2
Net income attributable to non-controlling interest									(3.6	)
Net income available for common stock								$	79.6

Three Months Ended Dec. 31, 2024, Compared to the Three Months Ended Dec. 31, 2023

Electric Utilities’ operating income decreased $1.2 million primarily due to higher insurance expense and lower off-system excess energy sales partially offset by new rates and rider recovery;
Gas Utilities’ operating income increased $25.8 million primarily due to new rates and rider recovery driven by the Arkansas Gas, Colorado Gas, Iowa Gas and Wyoming Gas rate reviews and lower employee-related expenses;
Corporate and other operating loss decreased $2.2 million due to lower unallocated outside services expenses;
Net interest expense increased $7.8 million primarily due to lower interest income on lower cash balances and higher interest expense due to higher rates; and
Income tax (expense) increased $3.1 million primarily driven by higher pre-tax income.

CONSOLIDATING INCOME STATEMENTS — YEAR-TO-DATE
(Minor differences may result due to rounding)
	Consolidating Income Statement
Twelve Months Ended Dec. 31, 2024	Electric Utilities		Gas Utilities		Corporate and Other			Total
	(in millions)
Revenue	$	876.1	$	1,269.4	$	(17.8	)	$	2,127.7

Fuel, purchased power and cost of natural gas sold		206.4		524.3		(0.4	)		730.3
Operations and maintenance		252.6		320.7		(16.3	)		557.0
Depreciation and amortization		145.3		124.7		0.1			270.1
Taxes other than income taxes		38.8		28.4		–			67.2
Operating income	$	233.0	$	271.3	$	(1.2	)	$	503.1

Interest expense, net									(181.7	)
Other income (expense), net									(1.4	)
Income tax benefit (expense)									(36.3	)
Net income									283.7
Net income attributable to non-controlling interest									(10.6	)
Net income available for common stock								$	273.1

	Consolidating Income Statement
Twelve Months Ended Dec. 31, 2023	Electric Utilities		Gas Utilities		Corporate and Other			Total
	(in millions)
Revenue	$	865.0	$	1,484.2	$	(17.9	)	$	2,331.3

Fuel, purchased power and cost of natural gas sold		200.1		783.2		(0.4	)		982.9
Operations and maintenance		236.2		328.7		(12.9	)		552.0
Depreciation and amortization		142.6		113.9		0.3			256.8
Taxes other than income taxes		37.3		29.6		–			66.9
Operating income	$	248.8	$	228.8	$	(4.9	)	$	472.7

Interest expense, net									(167.9	)
Other income (expense), net									(3.2	)
Income tax benefit (expense)									(25.6	)
Net income									276.0
Net income attributable to non-controlling interest									(13.8	)
Net income available for common stock								$	262.2

Twelve Months Ended Dec. 31, 2024, Compared to the Twelve Months Ended Dec. 31, 2023

Electric Utilities’ operating income decreased $15.8 million primarily due to unfavorable impacts from unplanned generation outages in 2024, lower off-system excess energy sales, higher insurance expense, and one-time benefits in 2023 from a gain on the sale of Northern Iowa Windpower assets, a gain on sale of land to support data center growth and a recovery from our business interruption insurance. These unfavorable variances were partially offset by new rates and rider recovery and retail customer growth and usage;
Gas Utilities’ operating income increased $42.5 million primarily due to new rates and rider recovery driven by the Colorado Gas, Iowa Gas, Rocky Mountain Natural Gas and Wyoming Gas rate reviews, retail customer growth and usage, favorable mark-to-market on commodity contracts, and lower employee-related expenses partially offset by unfavorable weather and higher depreciation driven by capital expenditures;
Corporate and other operating loss decreased $3.7 million due to lower unallocated operating expenses;
Net interest expense increased $13.8 million primarily due to higher interest rates partially offset by increased interest income and increased allowance for funds used during construction (AFUDC) debt driven by higher construction work-in-progress balances; Other (expense), net decreased $1.8 million primarily due to higher AFUDC equity driven by higher construction work-in-progress balances;
Other (expense), net decreased $1.8 million primarily due to higher AFUDC equity driven by higher construction work-in-progress balances;
Income tax (expense) increased $10.7 million driven by higher pre-tax income and a higher effective tax rate primarily due to an $8.2 million tax benefit in 2023 from a Nebraska income tax rate decrease; and
Net income attributable to non-controlling interest decreased $3.2 million due to lower net income from Colorado IPP primarily driven by unplanned generation outages.

OPERATING STATISTICS

Electric Utilities

	Revenue (in millions)								Quantities Sold (GWh)
	Three Months Ended Dec. 31,				Twelve Months Ended Dec. 31,				Three Months Ended Dec. 31,				Twelve Months Ended Dec. 31,
By customer class	2024		2023		2024		2023		2024		2023		2024		2023
Residential	$	55.5	$	54.7	$	234.8	$	224.5		348.5		347.9		1,471.9		1,438.5
Commercial		63.7		63.8		263.6		254.5		500.8		498.2		2,091.4		2,074.4
Industrial		42.0		42.4		168.9		157.3		526.4		583.2		2,169.8		2,094.8
Municipal		4.3		4.3		17.0		17.5		35.4		34.8		147.1		150.9
Other Retail		3.9		3.0		14.3		12.3		–		–		–		–
Subtotal Retail Revenue – Electric		169.4		168.2		698.6		666.1		1,411.1		1,464.1		5,880.2		5,758.6
Wholesale		5.6		9.6		26.8		34.2		130.3		193.5		589.4		699.7
Market – off-system sales		12.0		13.4		34.8		50.9		258.8		219.4		765.6		737.9
Transmission		13.1		11.2		52.2		47.1		–		–		–		–
Other ^(a)		16.2		13.5		63.7		66.7		–		–		–		–
Total Revenue and Quantities Sold	$	216.3	$	215.9	$	876.1	$	865.0		1,800.2		1,877.0		7,235.2		7,196.2
Other Uses, Losses, or Generation, net ^(b)										152.7		117.9		390.3		463.5
Total Energy										1,952.9		1,994.9		7,625.5		7,659.7

(a) Primarily related to Integrated Generation, inter-segment rent, and non-regulated services to our retail customers under the Service Guard Comfort Plan and Tech Services.
(b) Includes company uses and line losses.

	Revenue (in millions)								Quantities Sold (GWh)
	Three Months Ended Dec. 31,				Twelve Months Ended Dec. 31,				Three Months Ended Dec. 31,				Twelve Months Ended Dec. 31,
By business unit	2024		2023		2024		2023		2024		2023		2024		2023
Colorado Electric	$	68.2	$	68.8	$	276.9	$	285.7		575.9		602.7		2,392.7		2,397.2
South Dakota Electric		79.5		80.5		322.0		321.1		674.2		677.6		2,556.5		2,554.3
Wyoming Electric		57.6		57.2		234.3		212.2		528.3		578.7		2,190.1		2,124.1
Integrated Generation		11.0		9.4		42.9		46.0		21.8		18.0		95.9		120.6
Total Revenue and Quantities Sold	$	216.3	$	215.9	$	876.1	$	865.0		1,800.2		1,877.0		7,235.2		7,196.2

	Three Months Ended Dec. 31,				Twelve Months Ended Dec. 31,
	2024		2023		2024		2023
Degree Days	Actual	Variance from Normal	Actual	Variance from Normal	Actual	Variance from Normal	Actual	Variance from Normal
Heating Degree Days:
Colorado Electric	1,876	(8)%	1,965	(5)%	4,926	(8)%	5,330	1%
South Dakota Electric	2,231	(15)%	2,348	(13)%	6,311	(13)%	6,969	(4)%
Wyoming Electric	2,137	(13)%	2,249	(10)%	6,272	(10)%	6,783	(1)%
Combined ^(a)	2,052	(12)%	2,154	(9)%	5,676	(10)%	6,185	(1)%

Cooling Degree Days:
Colorado Electric	22	210%	6	(10)%	1,269	11%	1,046	(10)%
South Dakota Electric	10	376%	1	(38)%	913	49%	497	(21)%
Wyoming Electric	5	—	—	—	491	7%	329	(30)%
Combined ^(a)	14	265%	3	(15)%	989	20%	713	(15)%

(a) Degree days are calculated based on a weighted average of total customers by state.

	Three Months Ended Dec. 31,		Twelve Months Ended Dec. 31,
Contracted generating facilities Availability ^(a) by fuel type	2024	2023	2024	2023
Coal ^(b)	97.2%	93.8%	89.8%	93.7%
Natural gas and diesel oil ^(b)	85.5%	86.2%	92.9%	92.1%
Wind	87.6%	89.8%	90.6%	92.5%
Total Availability	88.2%	88.9%	91.7%	92.6%

Wind Capacity Factor ^(a)	38.0%	35.8%	36.7%	37.4%

(a) Availability and Wind Capacity Factor are calculated using a weighted average based on capacity of our generating fleet.
(b) 2024 included unplanned outages at Wygen I and Pueblo Airport Generation #4-5.

OPERATING STATISTICS (continued)

Gas Utilities

	Revenue (in millions)								Quantities Sold and Transported (Dth in millions)
	Three Months Ended Dec. 31,				Twelve Months Ended Dec. 31,				Three Months Ended Dec. 31,				Twelve Months Ended Dec. 31,
By customer class	2024		2023		2024		2023		2024		2023		2024		2023
Retail Revenue –
Residential	$	215.4	$	215.1	$	691.9	$	830.3		18.4		19.0		56.7		60.1
Commercial		82.4		83.6		266.3		337.3		9.1		8.9		28.4		29.4
Industrial		5.4		7.0		23.7		33.1		0.9		1.2		6.0		5.7
Other Retail ^(a)		11.8		12.0		40.7		48.1		–		–		–		–
Subtotal Retail Revenue – Gas		315.0		317.7		1,022.6		1,248.8		28.4		29.1		91.1		95.2
Transportation		47.3		45.4		178.2		176.8		42.2		41.6		159.2		159.8
Other ^(b)		22.9		17.2		68.6		58.6		–		–		–		–
Total Revenue and Quantities Sold	$	385.2	$	380.3	$	1,269.4	$	1,484.2		70.6		70.7		250.3		255.0

(a) Includes Black Hills Energy Services revenue under the Choice Gas Program.
(b) Includes inter-segment rent and non-regulated services under the Service Guard Comfort Plan, Tech Services, and HomeServe.

	Revenue (in millions)								Quantities Sold and Transported (Dth in millions)
	Three Months Ended Dec. 31,				Twelve Months Ended Dec. 31,				Three Months Ended Dec. 31,				Twelve Months Ended Dec. 31,
By business unit	2024		2023		2024		2023		2024		2023		2024		2023
Arkansas Gas	$	81.6	$	79.8	$	248.8	$	268.9		8.4		9.1		29.9		30.2
Colorado Gas		87.3		85.8		278.8		313.6		9.7		9.5		31.0		32.8
Iowa Gas		51.9		45.4		162.3		213.6		10.9		10.8		37.3		37.9
Kansas Gas		39.6		37.1		130.4		155.6		8.7		8.1		34.8		35.5
Nebraska Gas		85.6		88.3		304.5		366.1		22.1		22.4		80.3		82.2
Wyoming Gas		39.2		43.9		144.6		166.4		10.8		10.8		37.0		36.4
Total Revenue and Quantities Sold	$	385.2	$	380.3	$	1,269.4	$	1,484.2		70.6		70.7		250.3		255.0

	Three Months Ended Dec. 31,				Twelve Months Ended Dec. 31,
	2024		2023		2024		2023
Heating Degree Days	Actual	Variance from Normal	Actual	Variance from Normal	Actual	Variance from Normal	Actual	Variance from Normal
Arkansas Gas ^(a)	1,073	(24)%	1,253	(14)%	2,998	(20)%	3,197	(17)%
Colorado Gas	2,049	(10)%	1,838	(21)%	5,662	(7)%	5,916	(4)%
Iowa Gas	2,093	(11)%	2,054	(16)%	5,543	(16)%	5,921	(12)%
Kansas Gas ^(a)	1,516	(14)%	1,638	(10)%	4,092	(12)%	4,387	(8)%
Nebraska Gas	1,891	(15)%	1,988	(13)%	5,172	(13)%	5,579	(8)%
Wyoming Gas	2,257	(15)%	2,432	(3)%	6,641	(10)%	7,385	8%
Combined ^(b)	2,015	(12)%	2,080	(11)%	5,517	(11)%	6,006	(4)%

(a) Arkansas Gas and Kansas Gas have weather normalization mechanisms that mitigate the weather impact on gross margins.
(b) The combined heating degree days are calculated based on a weighted average of total customers by state excluding Kansas Gas due to its weather normalization mechanism. Arkansas Gas is partially excluded based on the weather normalization mechanism in effect from November through April.

CONFERENCE CALL AND WEBCAST

Black Hills will host a live conference call and webcast at 11 a.m. EST on Thursday, Feb. 6, 2025, to discuss its financial and operating performance.

To access the live webcast and download a copy of the investor presentation, go to the “Investor Relations” section of the Black Hills website at www.blackhillscorp.com and click on “News and Events” and then “Events & Presentation.” The presentation will be posted on the website before the webcast. Listeners should allow at least five minutes for registering and accessing the presentation. For those unable to listen to the live broadcast, a replay will be available on the company’s website.

To ask a question during the live broadcast, users can access dial-in information and a personal identification number by registering for the event at https://register.vevent.com/register/BI8f4c7bc439534ef89a7c45967b67c281.

A listen-only webcast player and presentation slides can be accessed live at https://edge.media-server.com/mmc/p/hq33dood with a replay of the event available for up to one year.

ABOUT BLACK HILLS CORP.

Black Hills Corp. (NYSE: BKH) is a customer-focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.35 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com, www.blackhillscorp.com/corporateresponsibility and www.blackhillsenergy.com.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. This includes, without limitations, our 2025 earnings guidance and long-term growth target. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, including without limitation, the risk factors described in Item 1A of Part I of our 2023 Annual Report on Form 10-K and other reports that we file with the SEC from time to time, and the following:

The accuracy of our assumptions on which our earnings guidance and long-term growth target is based;
Our ability to obtain adequate cost recovery for our utility operations through regulatory proceedings and favorable rulings on periodic applications to recover costs for capital additions, plant retirements and decommissioning, fuel, transmission, purchased power, and other operating costs and the timing in which new rates would go into effect;
Our ability to complete our capital program in a cost-effective and timely manner;
Our ability to execute on our strategy;
Our ability to successfully execute our financing plans;
The effects of changing interest rates;
Our ability to achieve our greenhouse gas emissions intensity reduction goals;
Board of Directors’ approval of any future quarterly dividends;
The impact of future governmental regulation;
Our ability to overcome the impacts of supply chain disruptions on availability and cost of materials;
The effects of inflation and volatile energy prices;
Our ability to obtain sufficient insurance coverage at reasonable costs and whether such coverage will protect us against significant losses; and
Other factors discussed from time to time in our filings with the SEC.

New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations:
Sal Diaz
Phone	605-399-5079
Email	[email protected]

Media Contact:
24-hour Media Assistance	888-242-3969

February 5, 2025 4:33 pm

Bank of America Announces Full Redemption of Its Series AA Preferred Stock and Related Depositary Shares

PR Newswire

CHARLOTTE, N.C.
, Feb. 5, 2025 /PRNewswire/ — Bank of America Corporation announced today that it will redeem all outstanding shares of its Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series AA (CUSIP No. 060505EP5), liquidation preference $25,000 per share (the “Preferred Stock”), and the corresponding depositary shares each representing a 1/25^th interest in a share of the Preferred Stock (CUSIP No. 060505EN0) (the “Depositary Shares”).

The Depositary Shares will be redeemed simultaneously with the Preferred Stock on the upcoming dividend payment date on March 17, 2025 (the “Redemption Date”), at a redemption price of $1,000 per depositary share. Declared dividends of $30.50 per depositary share in respect of the outstanding Depositary Shares for the full current semi-annual dividend period from, and including, September 17, 2024 to, but excluding, March 17, 2025 will be paid separately on March 17, 2025, to holders of record on March 1, 2025, in the customary manner. Accordingly, the redemption price of $1,000 per depositary share does not include any accrued and unpaid dividends. Dividends on the redeemed Depositary Shares will cease to accrue on the Redemption Date.

The Depositary Shares are held through The Depository Trust Company (“DTC”) and will be redeemed in accordance with the applicable procedures of DTC.

Payment to DTC for the Depositary Shares will be made by Computershare Inc. and Computershare Trust Company, N.A., collectively, as redemption agent. The address for the redemption agent is as follows:

Computershare Trust Company, N.A.
Attn: Corporate Actions
150 Royall St.
Canton, MA 02021

This press release does not constitute a notice of redemption under the certificate of designation governing the Preferred Stock or the deposit agreement governing the Depositary Shares.

Bank of America

Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with 3,700 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 58 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).

Forward-Looking Statements

Certain information contained in this news release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions difficult to predict or beyond our control. You should not place undue reliance on any forward-looking statement and should consider the uncertainties and risks discussed under Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, and in any of our subsequent Securities and Exchange Commission filings. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

Investors May Contact:

Lee McEntire, Bank of America
Phone: 1.980.388.6780
[email protected]

Jonathan G. Blum, Bank of America (Fixed Income)
Phone: 1.212.449.3112
[email protected]

Reporters May Contact:

Jocelyn Seidenfeld, Bank of America
Phone: 1.646.743.3356
[email protected]

View original content to download multimedia:https://www.prnewswire.com/news-releases/bank-of-america-announces-full-redemption-of-its-series-aa-preferred-stock-and-related-depositary-shares-302369053.html

SOURCE Bank of America Corporation

February 5, 2025 4:33 pm

Encompass Health Named One of Fortune’s World’s Most Admired Companies for Fifth Consecutive Year

PR Newswire

BIRMINGHAM, Ala.
, Feb. 5, 2025 /PRNewswire/ — Encompass Health Corp. (NYSE: EHC), the nation’s largest owner and operator of inpatient rehabilitation hospitals, today announced it has been named to Fortune’s World’s Most Admired Companies list for 2025.

“Receiving this prestigious recognition for five consecutive years is a testament to the exceptional care our clinicians provide and the trust we continue to build with our patients, partners and investors,” said Mark Tarr, president and chief executive officer of Encompass Health. “We are committed to achieving the best outcomes for our patients and helping them get back to what matters most following an illness or injury. We look forward to continuing to expand our presence across the country to positively impact more patients and communities.”

Fortune collaborated with Korn Ferry on the corporate reputation survey. The initial list of candidates includes the 1,000 largest U.S. companies ranked by revenue, as well as non-U.S. companies in Fortune’s Global 500 database that have revenues of $10 billion or more. The listing is further narrowed to the highest-revenue companies in each industry, a total of 650 in 30 countries.

To determine the best-regarded companies in 51 industries, Korn Ferry surveyed executives, directors and analysts to rate enterprises in their own industry on nine criteria, from investment value and quality of management and products to social responsibility and ability to attract talent. Companies with a score in the top half of each industry are named among the World’s Most Admired Companies.

About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 166 hospitals in 38 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is ranked as one of Fortune’s World’s Most Admired Companies, Becker’s Hospital Review’s 150 Top Places to Work in Healthcare and Forbes’ Most Trusted Companies in America. For more information, visit encompasshealth.com, or follow us on our newsroom, Twitter, Instagram and Facebook.

Encompass Health Media Contact:

Polly Manuel | 205-970-5912
[email protected]

View original content to download multimedia:https://www.prnewswire.com/news-releases/encompass-health-named-one-of-fortunes-worlds-most-admired-companies-for-fifth-consecutive-year-302369391.html

SOURCE Encompass Health Corp.

February 5, 2025 4:32 pm

Stewart Reports Fourth Quarter and Full Year 2024 Results

PR Newswire

Total revenues of $665.9 million ($664.2 million on an adjusted basis) compared to $582.2 million ($577.4 million on an adjusted basis) in the prior year quarter
Net income of $22.7 million ($31.5 million on an adjusted basis) compared to $8.8 million ($16.6 million on an adjusted basis) in the prior year quarter
Diluted earnings per share of $0.80 ($1.12 on an adjusted basis) compared to prior year quarter diluted EPS of $0.32 ($0.60 on an adjusted basis)
Full year 2024 net income of $73.3 million ($94.4 million on an adjusted basis) compared to 2023 net income of $30.4 million ($66.6 million on an adjusted basis)
Full year 2024 diluted earnings per share of $2.61 ($3.35 on an adjusted basis) compared to $1.11 ($2.42 on an adjusted basis) for 2023

HOUSTON
, Feb. 5, 2025 /PRNewswire/ — Stewart Information Services Corporation (NYSE: STC) today reported net income attributable to Stewart of $22.7 million ($0.80 per diluted share) for the fourth quarter 2024, compared to $8.8 million ($0.32 per diluted share) for the fourth quarter 2023. On an adjusted basis, net income for the fourth quarter 2024 was $31.5 million ($1.12 per diluted share) compared to $16.6 million ($0.60 per diluted share) in the fourth quarter 2023. Pretax income before noncontrolling interests for the fourth quarter 2024 was $35.4 million ($47.3 million on an adjusted basis) compared to $18.8 million ($29.1 million on an adjusted basis) for the fourth quarter 2023.

Fourth quarter 2024 results included $1.7 million of pretax net realized and unrealized gains, primarily related to net gains from fair value changes of equity securities investments and an acquisition liability adjustment, partially offset by losses from a sale of an office and an investment impairment. Fourth quarter 2023 results included $4.8 million of pretax net realized and unrealized gains, primarily driven by net gains from fair value changes of equity securities investments and an acquisition liability adjustment.

“We are pleased with our fourth quarter and full year 2024 results as they demonstrate both our progress and resilience in these continued challenging macro-housing conditions,” commented Fred Eppinger, chief executive officer. “We continue to improve on our operations to win share and fortify our position and look forward to continuing to do so in 2025. We remain focused on our pursuit of growth and margin improvement across all business lines.”

Selected Financial Information
Summary results of operations are as follows (dollars in millions, except per share amounts, pretax margin and adjusted pretax margin, and amounts may not add as presented due to rounding):

	Quarter Ended December 31,		Year Ended December 31,
	2024	2023	2024	2023

Total revenues	665.9	582.2	2,490.4	2,257.3
Pretax income before noncontrolling interests	35.4	18.8	114.3	60.9
Income tax expense	(8.2)	(5.7)	(26.2)	(15.3)
Net income attributable to noncontrolling interests	(4.5)	(4.3)	(14.8)	(15.2)
Net income attributable to Stewart	22.7	8.8	73.3	30.4
Non-GAAP adjustments, after taxes*	8.8	7.8	21.1	36.2
Adjusted net income attributable to Stewart*	31.5	16.6	94.4	66.6
Pretax margin	5.3 %	3.2 %	4.6 %	2.7 %
Adjusted pretax margin*	7.1 %	5.0 %	5.8 %	4.8 %
Net income per diluted Stewart share	0.80	0.32	2.61	1.11
Adjusted net income per diluted Stewart share*	1.12	0.60	3.35	2.42

* Adjusted net income, adjusted pretax margin and adjusted net income per diluted share are non-GAAP measures. See Appendix A for explanation and reconciliation of non-GAAP adjustments.

Title Segment
Summary results of the title segment are as follows (dollars in millions, except pretax margin and adjusted pretax margin):

	Quarter Ended December 31,
	2024	2023	% Change

Operating revenues	562.7	502.9	12 %
Investment income	14.5	13.0	12 %
Net realized and unrealized gains	2.8	5.1	(46 %)
Pretax income	45.2	27.3	65 %
Non-GAAP adjustments to pretax income*	5.3	4.0
Adjusted pretax income*	50.5	31.4	61 %
Pretax margin	7.8 %	5.2 %
Adjusted pretax margin*	8.8 %	6.1 %
* Adjusted pretax income and adjusted pretax margin are non-GAAP financial measures. See Appendix A for explanation and reconciliation of non-GAAP adjustments.

Title segment operating revenues in the fourth quarter 2024 improved $59.8 million, or 12 percent, driven by increased revenues from our direct and agency title operations, while total segment operating expenses increased $41.0 million, or 8 percent, compared to the fourth quarter 2023. Agency retention expenses in the fourth quarter 2024 increased $13.7 million, or 6 percent, consistent with the $16.6 million, or 6 percent, increase in gross agency revenues compared to the prior year quarter.

Total title segment employee costs and other operating expenses for the fourth quarter 2024 increased $27.1 million, or 11 percent, compared to the prior year quarter, primarily due to increased incentive compensation expenses related to higher title revenues, higher outside search expenses resulting from higher commercial revenues, and increased severance expenses, primarily related to an executive retirement announced in September 2024. As a percentage of operating revenues, total segment employee costs and other operating expenses slightly improved to 48.7 percent in the fourth quarter 2024 compared to 49.1 percent in the prior year quarter.

Title loss expense in the fourth quarter 2024 was $20.7 million, which was comparable to the fourth quarter 2023, primarily as a result of our overall favorable claim experience offsetting the incremental title loss expense related to increased title revenues. As a percentage of title revenues, title loss expense was 3.7 percent for the fourth quarter 2024 compared to 4.1 percent in the prior year quarter.

In addition to the net realized and unrealized gains presented above, non-GAAP adjustments to the title segment’s pretax income for the fourth quarters 2024 and 2023 included $8.1 million and $9.1 million, respectively, of total acquisition intangible asset amortization and related expenses, executive severance expenses and office closure costs (refer to Appendix A).

Direct title revenues information is presented below (dollars in millions):

	Quarter Ended December 31,
	2024	2023	% Change

Non-commercial:
Domestic	162.5	153.8	6 %
International	25.9	24.0	8 %
	188.4	177.8	6 %
Commercial:
Domestic	84.1	56.1	50 %
International	11.1	6.5	71 %
	95.2	62.6	52 %
Total direct title revenues	283.6	240.4	18 %

Domestic non-commercial revenues in the fourth quarter 2024 improved by $8.7 million, or 6 percent, primarily due to increased total non-commercial domestic transactions compared to the fourth quarter 2023. Domestic commercial revenues in the fourth quarter 2024 increased by $28.0 million, or 50 percent, primarily due to a higher average transaction size and a 13 percent increase in commercial transactions compared to the prior year quarter. Fourth quarter 2024 average domestic commercial fee per file was $19,600, or 33 percent higher compared to $14,800 from the fourth quarter 2023, while average domestic residential fee per file was $2,900, or 8 percent lower compared to $3,200 from the prior year quarter, primarily due to a lower purchase transaction mix during the fourth quarter 2024.

Real Estate Solutions Segment
Summary results of the real estate solutions segment are as follows (dollars in millions, except pretax margin and adjusted pretax margin):

	Quarter Ended December 31,
	2024	2023	% Change

Operating revenues	87.0	61.4	42 %
Pretax income	0.9	1.4	(34 %)
Non-GAAP adjustments to pretax income*	5.5	6.0
Adjusted pretax income*	6.5	7.4	(13 %)
Pretax margin	1.1 %	2.3 %
Adjusted pretax margin*	7.4 %	12.0 %
* Adjusted pretax income and adjusted pretax margin are non-GAAP financial measures. See Appendix A for an explanation and reconciliation of non-GAAP adjustments.

Fourth quarter 2024 operating revenues increased $25.6 million, or 42 percent, primarily due to increased revenues from our credit information and valuation services operations compared to the fourth quarter 2023. On a combined basis, the segment’s employee costs and other operating expenses increased $26.2 million, or 49 percent, primarily driven by higher vendor prices for credit information services and increased employee count in anticipation of new customers and related revenue. Non-GAAP adjustments to pretax income shown in the schedule above were primarily related to acquisition intangible asset amortization expenses (refer to Appendix A).

Corporate Segment
The segment’s fourth quarter 2024 results included net expenses attributable to corporate operations of $9.7 million, which were comparable to the prior year quarter, and a $1.1 million unrealized loss related to an investment impairment.

Expenses
Consolidated employee costs in the fourth quarter 2024 increased by $21.3 million, or 12 percent, compared to the fourth quarter 2023, primarily driven by higher incentive compensation on overall improved revenues, increased salaries primarily due to higher employee counts in commercial services and real estate solutions, and higher executive severances expenses primarily related to a title segment executive retirement announced in September 2024. As a percentage of total operating revenues, employee costs improved to 30.7 percent in the fourth quarter 2024 compared to 31.6 percent in the prior year quarter.

Consolidated other operating expenses in the fourth quarter 2024 increased $31.9 million, or 25 percent, primarily driven by higher service expenses and outside search fees related to higher revenues from real estate solutions and commercial title operations, respectively, partially offset by lower office closures compared to the fourth quarter 2023. As a percentage of total operating revenues, fourth quarter 2024 total other operating expenses increased to 24.5 percent compared to 22.5 percent in the prior year quarter, primarily due to increased real estate solutions service expenses.

Other
Net cash provided by operations in the fourth quarter 2024 was $68.0 million compared to $39.5 million in the fourth quarter 2023, primarily driven by the higher consolidated net income in the fourth quarter 2024.

Fourth Quarter Earnings Call
Stewart will hold a conference call to discuss the fourth quarter 2024 earnings at 8:30 a.m. Eastern Time on Thursday, February 6, 2025. To participate, dial (800) 343-5172 (USA) or (203) 518-9856 (International) – access code STCQ424. Additionally, participants can listen to the conference call through Stewart’s Investor Relations website at https://investors.stewart.com/news-and-events/events/default.aspx. The conference call replay will be available from 11:00 a.m. Eastern Time on February 6, 2025 until midnight on February 13, 2025 by dialing (800) 753-5479 (USA) or (402) 220-2675 (International).

About Stewart
Stewart (NYSE-STC) is a global real estate services company, offering products and services through our direct operations, network of Stewart Trusted Providers™ and family of companies. From residential and commercial title insurance and closing and settlement services to specialized offerings for the mortgage and real estate industries, we offer the comprehensive service, deep expertise and solutions our customers need for any real estate transaction. At Stewart, we are dedicated to becoming the premier title services company and we are committed to doing so by partnering with our customers to create mutual success. Learn more at stewart.com.

Cautionary statement regarding forward-looking statements. Certain statements in this press release are “forward-looking statements”, including statements related to Stewart’s future business plans and expectations, including our plans to achieve market growth and pretax margin improvements. Forward-looking statements, by their nature, are subject to various risks and uncertainties that could cause our actual results to differ materially. Such risks and uncertainties include the volatility of general economic conditions and adverse changes in the level of real estate activity, as well as a number of other risk and uncertainties discussed in detail in our documents filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2023, and if applicable, as supplemented by any risk factors contained in our Quarterly Reports on Form 10-Q, and our Current Reports on Form 8-K filed subsequently. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2024. We expressly disclaim any obligation to update, amend or clarify any forward-looking statements contained in this press release to reflect events or circumstances that may arise after the date hereof, except as may be required by applicable law.

ST-IR

STEWART INFORMATION SERVICES CORPORATION CONDENSED STATEMENTS OF INCOME (In thousands of dollars, except per share amounts and except where noted)

	Quarter Ended December 31,		Year Ended December 31,
	2024	2023	2024	2023
Revenues:
Title revenues:
Direct operations	283,606	240,432	1,020,380	962,674
Agency operations	279,092	262,513	1,043,173	985,989
Real estate solutions	86,998	61,408	358,559	263,577
Total operating revenues	649,696	564,353	2,422,112	2,212,240
Investment income	14,538	13,021	55,370	45,135
Net realized and unrealized gains (losses)	1,699	4,795	12,937	(34)
	665,933	582,169	2,490,419	2,257,341
Expenses:
Amounts retained by agencies	230,724	217,021	864,807	813,519
Employee costs	199,418	178,084	745,405	712,794
Other operating expenses	159,071	127,171	603,959	507,701
Title losses and related claims	20,656	20,555	80,411	80,282
Depreciation and amortization	15,549	15,600	61,612	62,447
Interest	5,147	4,959	19,914	19,737
	630,565	563,390	2,376,108	2,196,480
Income before taxes and noncontrolling interests	35,368	18,779	114,311	60,861
Income tax expense	(8,156)	(5,675)	(26,155)	(15,263)
Net income	27,212	13,104	88,156	45,598
Less net income attributable to noncontrolling interests	4,471	4,289	14,846	15,159
Net income attributable to Stewart	22,741	8,815	73,310	30,439

Net earnings per diluted share attributable to Stewart	0.80	0.32	2.61	1.11
Diluted average shares outstanding (000)	28,277	27,751	28,129	27,520

Selected financial information:
Net cash provided by operations	67,953	39,464	135,609	83,042
Other comprehensive (loss) income	(19,093)	23,406	(8,182)	16,128

Fourth Quarter Domestic Order Counts:
Opened Orders 2024:	Oct	Nov	Dec	Total	Closed Orders 2024:	Oct	Nov	Dec	Total
Commercial	1,471	1,226	1,586	4,283	Commercial	1,363	1,174	1,766	4,303
Purchase	15,852	12,224	11,323	39,399	Purchase	11,545	10,098	10,662	32,305
Refinancing	7,245	4,782	5,225	17,252	Refinancing	4,990	3,724	3,441	12,155
Other	4,076	2,239	2,090	8,405	Other	4,339	3,937	2,386	10,662
Total	28,644	20,471	20,224	69,339	Total	22,237	18,933	18,255	59,425

Opened Orders 2023:	Oct	Nov	Dec	Total	Closed Orders 2023:	Oct	Nov	Dec	Total
Commercial	1,031	1,335	1,381	3,747	Commercial	1,074	1,264	1,463	3,801
Purchase	16,995	14,076	11,679	42,750	Purchase	12,187	10,595	10,989	33,771
Refinancing	5,165	5,038	5,194	15,397	Refinancing	3,479	3,034	3,045	9,558
Other	1,912	1,506	3,271	6,689	Other	2,000	1,309	1,367	4,676
Total	25,103	21,955	21,525	68,583	Total	18,740	16,202	16,864	51,806

STEWART INFORMATION SERVICES CORPORATION CONDENSED BALANCE SHEETS (In thousands of dollars)

	December 31, 2024	December 31, 2023
Assets:
Cash and cash equivalents	216,298	233,365
Short-term investments	41,199	39,023
Investments in debt and equity securities, at fair value	669,098	679,936
Receivables – premiums from agencies	36,753	38,676
Receivables – other	111,735	93,811
Allowance for uncollectible amounts	(7,725)	(7,583)
Property and equipment, net	87,613	82,335
Operating lease assets, net	102,210	115,879
Title plants	74,862	73,359
Goodwill	1,084,139	1,072,129
Intangible assets, net of amortization	173,075	193,196
Deferred tax assets	4,827	3,776
Other assets	136,061	84,959
	2,730,145	2,702,861
Liabilities:
Notes payable	445,841	445,290
Accounts payable and accrued liabilities	214,580	190,054
Operating lease liabilities	118,835	135,654
Estimated title losses	511,534	528,269
Deferred tax liabilities	28,266	25,045
	1,319,056	1,324,312
Stockholders’ equity:
Common Stock and additional paid-in capital	358,721	338,451
Retained earnings	1,089,484	1,070,841
Accumulated other comprehensive loss	(43,397)	(35,215)
Treasury stock	(2,666)	(2,666)
Stockholders’ equity attributable to Stewart	1,402,142	1,371,411
Noncontrolling interests	8,947	7,138
Total stockholders’ equity	1,411,089	1,378,549
	2,730,145	2,702,861

Number of shares outstanding (000)	27,764	27,370
Book value per share	50.50	50.11

STEWART INFORMATION SERVICES CORPORATION SEGMENT INFORMATION (In thousands of dollars)

Quarter Ended:	December 31, 2024				December 31, 2023
	Title	Real Estate Solutions	Corporate	Total	Title	Real Estate Solutions	Corporate	Total
Revenues:
Operating revenues	562,698	86,998	–	649,696	502,945	61,408	–	564,353
Investment income	14,511	27	–	14,538	12,996	25	–	13,021
Net realized and unrealized gains (losses)	2,760	–	(1,061)	1,699	5,094	(3)	(296)	4,795
	579,969	87,025	(1,061)	665,933	521,035	61,430	(296)	582,169
Expenses:
Amounts retained by agencies	230,724	–	–	230,724	217,021	–	–	217,021
Employee costs	181,436	14,667	3,315	199,418	163,142	11,987	2,955	178,084
Other operating expenses	92,580	65,124	1,367	159,071	83,777	41,587	1,807	127,171
Title losses and related claims	20,656	–	–	20,656	20,555	–	–	20,555
Depreciation and amortization	8,921	6,301	327	15,549	8,819	6,401	380	15,600
Interest	420	1	4,726	5,147	378	48	4,533	4,959
	534,737	86,093	9,735	630,565	493,692	60,023	9,675	563,390
Income (loss) before taxes	45,232	932	(10,796)	35,368	27,343	1,407	(9,971)	18,779


Year Ended:	December 31, 2024				December 31, 2023
	Title	Real Estate Solutions	Corporate	Total	Title	Real Estate Solutions	Corporate	Total
Revenues:
Operating revenues	2,063,553	358,559	–	2,422,112	1,948,663	263,577	–	2,212,240
Investment income	55,256	114	–	55,370	45,028	107	–	45,135
Net realized and unrealized gains (losses)	14,146	–	(1,209)	12,937	3,437	(3)	(3,468)	(34)
	2,132,955	358,673	(1,209)	2,490,419	1,997,128	263,681	(3,468)	2,257,341
Expenses:
Amounts retained by agencies	864,807	–	–	864,807	813,519	–	–	813,519
Employee costs	677,378	54,572	13,455	745,405	648,832	49,320	14,642	712,794
Other operating expenses	339,950	258,827	5,182	603,959	320,529	179,640	7,532	507,701
Title losses and related claims	80,411	–	–	80,411	80,282	–	–	80,282
Depreciation and amortization	35,047	25,104	1,461	61,612	35,000	25,802	1,645	62,447
Interest	1,584	9	18,321	19,914	1,442	239	18,056	19,737
	1,999,177	338,512	38,419	2,376,108	1,899,604	255,001	41,875	2,196,480
Income (loss) before taxes	133,778	20,161	(39,628)	114,311	97,524	8,680	(45,343)	60,861

Appendix A

Non-GAAP Adjustments

Management uses a variety of financial and operational measurements other than its financial statements prepared in accordance with United States Generally Accepted Accounting Principles (GAAP) to analyze its performance. These include: (1) adjusted revenues, which are reported revenues adjusted for net realized and unrealized gains and losses and (2) adjusted pretax income and adjusted net income, which are reported pretax income and reported net income after earnings from noncontrolling interests, respectively, adjusted for net realized and unrealized gains and losses, acquisition intangible asset amortization and other expenses (acquisition-related), office closure costs, executive severance expenses, and other nonrecurring expenses. Adjusted diluted earnings per share (adjusted diluted EPS) is calculated using adjusted net income divided by the diluted average weighted outstanding shares. Adjusted pretax margin is calculated using adjusted pretax income divided by adjusted total revenues. Management views these measures as important performance measures of core profitability for its operations and as key components of its internal financial reporting. Management believes investors benefit from having access to the same financial measures that management uses.

Below are reconciliations of the non-GAAP financial measures used by management to the most directly comparable GAAP measures for the quarter and year ended December 31, 2024 and 2023 (dollars in millions, except shares, per share amounts and pretax margins, and amounts may not add as presented due to rounding).

	Quarter Ended December 31,			Year Ended December,
	2024	2023	% Chg	2024	2023	% Chg

Total revenues	665.9	582.2	14 %	2,490.4	2,257.3	10 %
Non-GAAP revenue adjustments:
Net realized and unrealized gains	(1.7)	(4.8)		(12.9)	–
Adjusted total revenues	664.2	577.4	15 %	2,477.5	2,257.3	10 %

Details of net realized and unrealized gains:
Unrealized gains on equity securities fair value	1.4	3.7		12.6	2.1
Gains (losses) on acquisition liability adjustments	2.4	0.9		2.4	(2.3)
Sale of offices	(0.8)	(0.1)		(0.8)	(0.1)
Impairment of investments and other assets	(1.1)	(0.2)		(1.2)	(0.2)
Other items, net	(0.3)	0.6		0.1	0.5
Total net realized and unrealized gains	1.7	4.8		12.9	–

Pretax income	35.4	18.8	88 %	114.3	60.9	88 %
Non-GAAP pretax adjustments:
Net realized and unrealized gains	(1.7)	(4.8)		(12.9)	–
Acquisition intangible asset amortization and other expenses	8.5	8.7		33.6	36.0
Office closure costs	1.2	5.5		3.1	7.3
Executive severance expenses	3.9	0.9		4.6	3.1
State sales tax assessment expense	–	–		–	1.2
Adjusted pretax income	47.3	29.1	63 %	142.8	108.5	32 %
GAAP pretax margin	5.3 %	3.2 %		4.6 %	2.7 %
Adjusted pretax margin	7.1 %	5.0 %		5.8 %	4.8 %

	Quarter Ended December 31,			Year Ended December 31,
	2024	2023	% Chg	2024	2023	% Chg

Net income attributable to Stewart	22.7	8.8	158 %	73.3	30.4	141 %
Non-GAAP pretax adjustments:
Net realized and unrealized gains	(1.7)	(4.8)		(12.9)	–
Acquisition intangible asset amortization and other expenses	8.5	8.7		33.6	36.0
Office closure costs	1.2	5.5		3.1	7.3
Executive severance expenses	3.9	0.9		4.6	3.1
State sales tax assessment expense	–	–		–	1.2
Net tax effects of non-GAAP adjustments	(3.1)	(2.5)		(7.4)	(11.4)
Non-GAAP adjustments, after taxes	8.8	7.8		21.1	36.2
Adjusted net income attributable to Stewart	31.5	16.6	90 %	94.4	66.6	42 %

Diluted average shares outstanding (000)	28,277	27,751		28,129	27,520
GAAP net income per share	0.80	0.32		2.61	1.11
Adjusted net income per share	1.12	0.60		3.35	2.42

	Quarter Ended December 31,			Year Ended December 31,
	2024	2023	% Chg	2024	2023	% Chg
Title Segment:
Total revenues	580.0	521.0	11 %	2,133.0	1,997.1	7 %
Net realized and unrealized gains	(2.8)	(5.1)		(14.1)	(3.4)
Adjusted total revenues	577.2	515.9	12 %	2,118.8	1,993.7	6 %
Pretax income	45.2	27.3	65 %	133.8	97.5	37 %
Non-GAAP revenue adjustments:
Net realized and unrealized gains	(2.8)	(5.1)		(14.1)	(3.4)
Acquisition intangible asset amortization and other expenses	3.0	2.9		11.5	12.3
Office closure costs	1.2	5.5		3.1	7.3
Executive severance expenses	3.9	0.7		4.6	2.3
Adjusted pretax income	50.5	31.4	61 %	138.9	116.0	20 %
GAAP pretax margin	7.8 %	5.2 %		6.3 %	4.9 %
Adjusted pretax margin	8.8 %	6.1 %		6.6 %	5.8 %

Real Estate Solutions Segment:
Total revenues	87.0	61.4	42 %	358.7	263.7	36 %
Pretax income	0.9	1.4	(34 %)	20.2	8.7	132 %
Non-GAAP revenue adjustments:
Acquisition intangible asset amortization	5.5	5.8		22.2	23.7
Executive severance expenses	–	0.2		–	0.3
State sales tax assessment expense	–	–		–	1.2
Adjusted pretax income	6.5	7.4	(13 %)	42.3	33.8	25 %
GAAP pretax margin	1.1 %	2.3 %		5.6 %	3.3 %
Adjusted pretax margin	7.4 %	12.0 %		11.8 %	12.8 %

View original content to download multimedia:https://www.prnewswire.com/news-releases/stewart-reports-fourth-quarter-and-full-year-2024-results-302369339.html

SOURCE Stewart Information Services Corporation

February 5, 2025 4:32 pm

KIRKLAND’S FINALIZES $25 MILLION INVESTMENT FROM BEYOND, INC. PROVIDING LIQUIDITY AND STRENGTHENING STRATEGIC PARTNERSHIP

PR Newswire

Receives Strong Shareholder Support in Favor of Proposal Related to Beyond Transaction at Special Meeting

NASHVILLE, Tenn.
, Feb. 5, 2025 /PRNewswire/ — Kirkland’s, Inc. (Nasdaq: KIRK) (“Kirkland’s” or the “Company”), a specialty retailer of home décor and furnishings, announced that the Company’s shareholders, in accordance with applicable Nasdaq Listing Rules at a Special Meeting of the Shareholders concluded on February 5, 2025 (the “Special Meeting”), have approved the issuances of shares of common stock pursuant to the Term Loan Credit Agreement and Subscription Agreement previously entered into with Beyond, Inc. (NYSE: BYON) (“Beyond”) on October 21, 2024. Following the Special Meeting in which the Company obtained the requisite shareholder approvals, with 97% of votes cast in favor of the proposal, Beyond completed both an $8 million equity purchase under the Subscription Agreement and the mandatory conversion of an $8.5 million convertible term loan under the Term Loan Credit Agreement. With the completion of this transaction, Beyond has now provided Kirkland’s with a total of $25 million of capital and now owns approximately 40% of Kirkland’s outstanding shares of common stock.

Amy Sullivan, CEO of Kirkland’s, commented, “Today marks a pivotal moment for Kirkland’s, as the completion of this transaction and ongoing value of our strategic partnership with Beyond begin to unlock new drivers of transformation following our efforts over the past year focused on revitalizing the Kirkland’s brand. I am immensely proud of the team and the significant improvements we continue to make through our strategic initiatives of reengaging our core customer, refocusing our product assortment and strengthening our omni-channel capabilities. As we look ahead, together with the Beyond team we will continue to leverage Kirkland’s core strengths including our Merchandising, Store Operations and Supply Chain expertise and infrastructure to build a cohesive omni-channel strategy for Beyond’s portfolio of iconic brands. Plans are underway for our first Bed Bath & Beyond store opening later this year, and we look forward to continuing to explore opportunities to maximize the value of our partnership. We enter fiscal 2025 with additional capital, new opportunities for growth and an intense focus on aggressively addressing underperforming assets and delivering improved profitability.”

“Our investment and the overwhelming shareholder support reinforces the value we see in Kirkland’s and its management team. Through this strategic partnership we are committed to leveraging the strengths of each company to drive long-term sustainable growth as we work together to build the omni-channel strategy across our family of brands,” said Marcus Lemonis, Executive Chairman of Beyond.

About Kirkland’s, Inc.

Kirkland’s, Inc. is a specialty retailer of home décor and furnishings in the United States, currently operating 317 stores in 35 states as well as an e-commerce website, www.kirklands.com, under the Kirkland’s Home brand. The Company provides its customers an engaging shopping experience characterized by a curated, affordable selection of home décor and furnishings along with inspirational design ideas. This combination of quality and stylish merchandise, value pricing and a stimulating in-store and online environment provides the Company’s customers with a unique brand experience. More information can be found at www.kirklands.com.

Cautionary Statement Regarding Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “aim,” “believe,” “can,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “forecast,” “plan,” “possible,” “intend,” “target,” or the negative of these words or other similar expressions that concern the Company’s expectations, strategy, priorities, plans, or intentions. Such forward-looking statements involve known and unknown risks and uncertainties, many of which are outside of the Company’s control, which may cause the Company’s actual results to differ materially from forecasted results. Forward-looking statements in this communication include, but are not limited to, the effect of the transactions entered into with Beyond (the “Transactions”) on the Company’s business relationships, operating results and business generally; unexpected costs, charges or expenses resulting from the Transactions; potential litigation relating to the Transactions that could be instituted against Beyond, the Company or their affiliates’ respective directors, managers or officers, including the effects of any outcomes related thereto; continued availability of capital and financing; the ability to obtain the various synergies envisioned between the Company and Beyond; the ability of the Company to successfully open Bed Bath & Beyond stores; the ability of each company to successfully market their products to the other company’s customers and to implement its plans, forecasts and other expectations with respect to its business after the completion of the Transactions and realize additional opportunities for growth and innovation; risks associated with the Company’s liquidity including cash flows from operations and the amount of borrowings under the secured revolving credit facility; the Company’s ability to successfully implement cost savings and other strategic initiatives intended to improve operating results and liquidity positions; the Company’s actual and anticipated progress towards its short-term and long-term objectives including its brand strategy; the risk that natural disasters, pandemic outbreaks, global political events, war and terrorism could impact the Company’s revenues, inventory and supply chain; the continuing consumer impact of inflation and countermeasures, including high interest rates, the effectiveness of the Company’s marketing campaigns; risks related to changes in U.S. policy related to imported merchandise, particularly with regard to the impact of tariffs on goods imported from China and strategies undertaken to mitigate such impact; the Company’s ability to retain its senior management team; volatility in the price of the Company’s common stock; the competitive environment in the home décor industry in general and in the Company’s specific market areas; inflation, fluctuations in cost and availability of inventory, increased transportation costs and potential interruptions in supply chain, distribution systems and delivery network, including the Company’s e-commerce systems and channels; the ability to control employment and other operating costs, availability of suitable retail locations and other growth opportunities; disruptions in information technology systems including the potential for security breaches of the Company’s information, or our customers’ information, seasonal fluctuations in consumer spending, and economic conditions in general and other risks detailed in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the Company’s Annual Report on Form 10-K filed with the SEC on March 29, 2024 and subsequent filings. All information provided in this communication is as of the date hereof, and the Company undertakes no duty to update this information unless required by law. Any changes in assumptions or factors on which such statements are based could produce materially different results. These forward-looking statements should not be relied upon as representing the Company’s assessment as of any date subsequent to the date of this communication.

Contact:

Kirkland’s Home

Mike Madden

1-615-872-4800

ICR

Caitlin Churchill

[email protected]

1-203-682-8200

View original content to download multimedia:https://www.prnewswire.com/news-releases/kirklands-finalizes-25-million-investment-from-beyond-inc-providing-liquidity-and-strengthening-strategic-partnership-302369343.html

SOURCE Kirkland’s, Inc.

February 5, 2025 4:32 pm

Heritage Announces Fourth Quarter and Full Year 2024 Earnings Dates

PR Newswire

TAMPA, Fla.
, Feb. 5, 2025 /PRNewswire/ — Heritage Insurance Holdings, Inc. (NYSE: HRTG) (“Heritage” or the “Company”), a super-regional property and casualty insurance holding company, will announce its fourth quarter and full year 2024 financial results after the market closes on Tuesday, March 11, 2025, followed by a 9:00 am ET conference call and webcast on Wednesday, March 12, 2025.

Conference Call Details:
Participant Dial-in: 1-888-346-3095
International Dial-in: 1-412-902-4258
Telephone participants should ask to be joined into the Heritage Insurance Holdings Fourth Quarter 2024 Earnings Call.

Webcast:
A live audio webcast of the earnings call will be available in the investors section of the company’s website. The call will be archived and available for replay.

Financial information, including material announcements about Heritage, is routinely posted on investors.heritagepci.com.

About Heritage
Heritage Insurance Holdings, Inc. is a super-regional property and casualty insurance holding company. Through its insurance subsidiaries and a large network of experienced agents, the Company writes approximately $1.4 billion of gross personal and commercial residential premium across its multi-state footprint covering the northeast, southeast, Hawaii and California excess and surplus lines. As a catastrophe focused property insurer, our personnel have devoted efforts to policyholders impacted by wildfires, hurricanes, winter storms, and severe convective storms.

Investor Contacts:

Kirk Lusk

Chief Financial Officer
[email protected]
[email protected]

View original content to download multimedia:https://www.prnewswire.com/news-releases/heritage-announces-fourth-quarter-and-full-year-2024-earnings-dates-302369304.html

SOURCE Heritage Insurance Holdings, Inc.

February 5, 2025 4:32 pm

MAA REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS

PR Newswire

GERMANTOWN, Tenn.
, Feb. 5, 2025 /PRNewswire/ — Mid-America Apartment Communities, Inc., or MAA (NYSE: MAA), today announced operating results for the three months ended December 31, 2024.

Fourth Quarter 2024 Operating Results	Three months ended December 31,				Year ended December 31,
	2024		2023		2024		2023
Earnings per common share – diluted	$	1.42	$	1.37	$	4.49	$	4.71

Funds from operations (FFO) per Share – diluted	$	2.21	$	2.53	$	8.77	$	9.39

Core FFO per Share – diluted	$	2.23	$	2.32	$	8.88	$	9.17

A reconciliation of Net income available for MAA common shareholders to FFO and Core FFO, and discussion of the components of FFO and Core FFO, can be found later in this release. FFO per Share – diluted and Core FFO per Share – diluted include diluted common shares and units.

Eric Bolton, Chairman and Chief Executive Officer, said, “We are encouraged by the performance trends captured in the fourth quarter and the early signs of improvement in pricing trends as the record level of new supply deliveries has now peaked. Calendar year 2025 will be a transition year for revenue performance as the decline in new supply deliveries will provide for increasingly tighter market conditions and resulting rent growth. As we reprice leases over the busy spring and summer leasing season, the compounding impact in overall revenue performance will become increasingly evident late this year and into 2026. Same Store Portfolio blended lease pricing, on a sequential basis from the seasonally strong third quarter to the typically slower fourth quarter, improved 140 basis points as compared to the same sequential trend of the prior year. Capturing this improvement in year-over-year pricing trends, despite the record level of new supply deliveries over the past year, we believe speaks to the continued strong demand for apartment housing across our portfolio. Further, it puts MAA in a solid position to capture recovery in rental pricing as we head into 2025 with the delivery of new supply poised to meaningfully decline.”

Highlights

During the fourth quarter of 2024, MAA’s Same Store Portfolio captured strong Average Physical Occupancy of 95.6%. During the fourth quarter of 2024, MAA’s Same Store Portfolio revenue decreased 0.2%, as compared to the same period in the prior year, with Average Effective Rent per Unit down 0.5%, partially offset by a 1.8% increase in other property revenues.
During the fourth quarter of 2024, MAA’s Same Store Portfolio property operating expense increased by 3.4% and MAA’s Same Store Portfolio Net Operating Income (NOI) decreased by 2.1%, in each case as compared to the same period in the prior year.
As of December 31, 2024, resident turnover remained historically low at 42.0% on a trailing twelve month basis with a record low level of move-outs associated with buying single family-homes.
During the fourth quarter of 2024, MAA acquired a newly built 386-unit multifamily community located in Dallas, Texas.
During the fourth quarter of 2024, MAA closed on the disposition of a 216-unit multifamily community located in Charlotte, North Carolina and a 272-unit multifamily community located in Richmond, Virginia for combined net proceeds of approximately $85 million, resulting in combined gain on the sale of depreciable real estate assets of approximately $55 million.
As of December 31, 2024, MAA had seven communities under development, representing 2,312 units once complete, with a projected total cost of $851.5 million and an estimated $374.3 million remaining to be funded. During the fourth quarter of 2024, MAA completed the development of MAA Milepost 35 located in Denver, Colorado and started construction on a 219-unit phase II multifamily expansion at the property. During the fourth quarter of 2024, MAA also completed the development of Novel Val Vista, located in the Phoenix, Arizona market.
As of December 31, 2024, MAA had four recently completed development communities and four recently acquired communities in lease-up. Two communities are expected to stabilize in the first quarter of 2025, one in the second quarter of 2025, four in the third quarter of 2025 and one in the second quarter of 2026.
In December 2024, MAA’s operating partnership, Mid-America Apartments, L.P. (referred to as MAALP or the Operating Partnership), issued $350.0 million of 10-year unsecured senior notes at a coupon of 4.950% and an issue price of 99.170%.
MAA’s balance sheet remains strong with a Net Debt/Adjusted EBITDAre ratio of 4.0x and $1.0 billion of combined cash and available capacity under MAALP’s unsecured revolving credit facility as of December 31, 2024.

Same Store Portfolio Operating Results
To ensure comparable reporting with prior periods, the Same Store Portfolio includes properties that were owned by MAA and stabilized at the beginning of the previous year. Same Store Portfolio results for the three and twelve months ended December 31, 2024 as compared to the same periods in the prior year are summarized below:

	Three months ended December 31, 2024 vs. 2023				Twelve months ended December 31, 2024 vs. 2023
	Revenues	Expenses	NOI	Average Effective Rent per Unit	Revenues	Expenses	NOI	Average Effective Rent per Unit
Same Store Operating Growth	-0.2 %	3.4 %	-2.1 %	-0.5 %	0.5 %	3.9 %	-1.4 %	0.3 %

A reconciliation of Net income available for MAA common shareholders to NOI, including Same Store NOI, and discussion of the components of NOI, can be found later in this release.

Same Store Portfolio operating statistics for the three and twelve months ended December 31, 2024 are summarized below:

	Three months ended December 31, 2024			Twelve months ended December 31, 2024			December 31, 2024
	Average Effective Rent per Unit		Average Physical Occupancy	Average Effective Rent per Unit		Average Physical Occupancy	Resident Turnover
Same Store Operating Statistics	$	1,684	95.6 %	$	1,688	95.5 %	42.0 %

Same Store Portfolio lease pricing for new leases that were effective during the fourth quarter of 2024 declined 8.0%, while Same Store Portfolio lease pricing for renewing leases that were effective during the fourth quarter of 2024 increased 4.2%, producing a decrease of 2.0% for both new and renewing lease pricing on a blended basis in the fourth quarter of 2024 as compared to the prior lease.

Same Store Portfolio lease pricing for both new and renewing leases effective during the year ended December 31, 2024, on a blended basis, declined 0.5% as compared to the prior lease, driven by a 5.9% decrease for leases to new move-in residents, partially offset by a 4.4% increase for renewing leases.

Brad Hill, President and Chief Investment Officer, said, “We remain focused on optimizing our portfolio to deliver enhanced performance throughout 2025 and beyond as the demand and supply dynamics continue to improve. In the fourth quarter, our average physical occupancy was 10 basis points better than the same period in 2023 and we finished the year with exposure, which represents all current vacant units plus all notices to vacate over the next 60 days, 60 basis points better than the prior year. We are encouraged by other positive trends as well. As of January 31, 2025, our exposure improved by 70 basis points compared to the prior year. Similarly, through the month of January, we observed better than normal seasonal blended pricing trends, with a few additional markets showing positive lease-over-lease rates. While the performance from our existing portfolio is gaining momentum, we are increasing our investments in several initiatives that will enhance efficiencies and deliver stronger future earnings growth. Additionally, as our lease-up properties reach stabilization, we expect a growing earnings contribution from this component of our portfolio as new deliveries decrease within our markets.”

Acquisition and Disposition Activity
In October 2024, MAA acquired a 386-unit multifamily community located in Dallas, Texas for approximately $106 million. In December 2024, MAA acquired a 3-acre land parcel in the Raleigh, North Carolina market for approximately $5 million for future development.

In October 2024, MAA closed on the disposition of a 216-unit multifamily community located in Charlotte, North Carolina for net proceeds of approximately $38 million. In December 2024, MAA also closed on the disposition of a 272-unit multifamily community located in Richmond, Virginia for net proceeds of approximately $47 million.

Development and Lease-up Activity
A summary of MAA’s development communities under construction as of the end of the fourth quarter of 2024 is set forth below (dollars in thousands):

Units as of

Development Costs as of

Expected Project

Total

December 31, 2024

Completions By Year

Development

Expected

Costs

Expected

Projects ⁽¹⁾

Total

Delivered

Leased

Total

to Date

Remaining

2025

2026

2027

2,312

851,500

477,181

374,319

⁽¹⁾	One of the development projects is currently leasing.

During the fourth quarter of 2024, MAA funded approximately $64 million of costs for current and planned projects, including predevelopment activities.

During the fourth quarter of 2024, MAA completed the development of MAA Milepost 35 located in Denver, Colorado and started construction on a 219-unit phase II multifamily expansion at the property. The phase II development is expected to deliver its first units in the second quarter of 2026, to be completed in the fourth quarter of 2026 and to reach stabilization in the fourth quarter of 2027 at a total cost of approximately $78 million. During the fourth quarter of 2024, MAA also completed the development of Novel Val Vista, located in the Phoenix, Arizona market

A summary of the total units, physical occupancy and cost of MAA’s lease-up communities as of the end of the fourth quarter of 2024 is set forth below (dollars in thousands):

Total

As of December 31, 2024

Lease-Up

Total

Physical

Costs

Projects ⁽¹⁾

Units

Occupancy

to Date

2,763

69.7

766,090

⁽¹⁾	Two of the lease-up projects are expected to stabilize in the first quarter of 2025, one in the second quarter of 2025, four in the third quarter of 2025 and one in the second quarter of 2026.

Property Redevelopment and Repositioning Activity
A summary of MAA’s interior redevelopment program as of the end of the fourth quarter of 2024 is set forth below:

As of December 31, 2024

Units

Average Cost

Increase in Average

Completed

per Unit

Effective Rent per Unit

YTD

Redevelopment

5,665

6,219

106

As of December 31, 2024, MAA had completed installation of Smart Home technology (unit entry locks, mobile control of lights and thermostat and leak monitoring) in over 96,000 units across its apartment community portfolio providing an increase in Average Effective Rent per Unit of approximately $25 per month since the initiative began during the first quarter of 2019.

During the fourth quarter of 2024, MAA continued its property repositioning program to upgrade and reposition the amenity and common areas at select apartment communities for higher and above market rent growth after projects are completed and units are fully repriced. For the year ended December 31, 2024, MAA spent $4.8 million on this program.

Capital Expenditures
A summary of MAA’s capital expenditures and Funds Available for Distribution (FAD) for the three and twelve months ended December 31, 2024 and 2023 is set forth below (dollars in millions, except per Share data):

	Three months ended December 31,				Year ended December 31,
	2024		2023		2024		2023
Core FFO attributable to common shareholders and unitholders	$	267.4	$	277.8	$	1,065.0	$	1,098.1
Recurring capital expenditures		(23.4)		(26.4)		(112.2)		(111.7)
Core adjusted FFO (Core AFFO) attributable to common shareholders and unitholders		244.0		251.4		952.8		986.4
Redevelopment, revenue enhancing, commercial and other capital expenditures		(61.5)		(52.1)		(207.3)		(208.4)
FAD attributable to common shareholders and unitholders	$	182.5	$	199.3	$	745.5	$	778.0

Core FFO per Share – diluted	$	2.23	$	2.32	$	8.88	$	9.17
Core AFFO per Share – diluted	$	2.03	$	2.10	$	7.94	$	8.24

A reconciliation of Net income available for MAA common shareholders to FFO, Core FFO, Core AFFO and FAD, and discussion of the components of FFO, Core FFO, Core AFFO and FAD, can be found later in this release.

Balance Sheet and Financing Activities
As of December 31, 2024, MAA had $1.0 billion of combined cash and available capacity under MAALP’s unsecured revolving credit facility.

Dividends and distributions paid on shares of common stock and noncontrolling interests during the fourth quarter of 2024 were $176.3 million, as compared to $167.8 million for the same period in the prior year.

In December 2024, MAALP publicly issued $350.0 million of unsecured notes due March 2035 with a coupon rate of 4.950% per annum and at an issue price of 99.170%. Interest is payable semi-annually in arrears on March 1 and September 1 of each year, commencing September 1, 2025. The proceeds from the sale of the notes were used to repay borrowings on MAALP’s commercial paper program. The notes have an effective interest rate of 5.053%.

Balance sheet highlights as of December 31, 2024 are summarized below (dollars in billions):

Total debt to adjusted total assets ⁽¹⁾	Net Debt/Adjusted EBITDAre⁽²⁾	Total debt outstanding		Average effective interest rate	Fixed rate debt as a % of total debt	Total debt average years to maturity
29.0 %	4.0x	$	5.0	3.8 %	95.0 %		7.3

⁽¹⁾	As defined in the covenants for the bonds issued by MAALP.
⁽²⁾	Adjusted EBITDAre is calculated for the trailing twelve month period ended December 31, 2024.

A reconciliation of Unsecured notes payable and Secured notes payable to Net Debt and a reconciliation of Net income to Adjusted EBITDAre, along with discussion of the components of Net Debt and Adjusted EBITDAre, can be found later in this release.

Corporate Sustainability
As of December 31, 2024, MAA’s corporate initiatives have led to significant progress in key sustainability performance areas. After achieving its original 2018 baseline targets in 2023, MAA re-established its 2028 targets in 2024 to further improve the reduction in energy use intensity (EUI) and reduction in GHG emissions intensity (GEI). Through December 31, 2023, MAA achieved a 29% reduction in EUI and a 36% reduction in GEI from its 2018 baseline, with the aim to reduce EUI and GEI by 35% and 45% by 2028, respectively. Additionally, as of December 31, 2024, MAA completed its initiative to retrofit common area light fixtures in its portfolio to LED lighting to maximize energy efficiency and MAA had 51 green-certified communities, representing over 15% of its portfolio.

MAA has several community engagement efforts underway and continues to report its progress through its 5^th annual Corporate Sustainability Report, published in October 2024, CDP disclosure, and GRESB assessment, the latter of which MAA has now improved year over year since its first submission in 2020 to a score of 80. MAA believes its initiatives related to solar panel and building automation systems, together with an expansion of its smart irrigation initiative, continue an integrated pathway for sustainability, enhance its resiliency, and create a positive impact for MAA’s residents, associates, and investors.

124th Consecutive Quarterly Common Dividend Declared
MAA declared its 124th consecutive quarterly common dividend, which was paid on January 31, 2025 to holders of record on January 15, 2025. The current annual dividend rate is $6.06 per common share. The timing and amount of future dividends will depend on actual cash flows from operations, MAA’s financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986 and other factors as MAA’s Board of Directors deems relevant. MAA’s Board of Directors may modify the dividend policy from time to time.

2025 Earnings and Same Store Portfolio Guidance
MAA is providing initial 2025 guidance for Earnings per diluted common share, Core FFO per diluted Share, Core AFFO per diluted Share and Same Store Portfolio performance. MAA expects to update its 2025 Earnings per diluted common share, Core FFO per diluted Share and Core AFFO per diluted Share guidance on a quarterly basis.

FFO, Core FFO and Core AFFO are non-GAAP financial measures. Acquisition and disposition activity materially affects depreciation and capital gains or losses, which combined, generally represent the majority of the difference between Net income available for common shareholders and FFO. As discussed in the definitions of non-GAAP financial measures found later in this release, MAA’s definition of FFO is in accordance with the National Association of Real Estate Investment Trusts’, or NAREIT’s, definition, and Core FFO represents FFO as adjusted for items that are not considered part of MAA’s core business operations. MAA believes that Core FFO is helpful in understanding operating performance in that Core FFO excludes not only depreciation expense of real estate assets and certain other non-routine items, but it also excludes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.

2025 Guidance	Full Year 2025
Earnings:	Range	Midpoint
Earnings per common share – diluted	$5.51 to $5.83	$5.67
Core FFO per Share – diluted	$8.61 to $8.93	$8.77
Core AFFO per Share – diluted	$7.63 to $7.95	$7.79

MAA Same Store Portfolio:
Property revenue growth	-0.35% to 1.15%	0.40 %
Property operating expense growth	2.45% to 3.95%	3.20 %
NOI growth	-2.15% to -0.15%	-1.15 %

The projected difference between Core FFO per diluted Share for the full year of 2024 to the midpoint of MAA’s guidance for the full year of 2025 is summarized below:

	Core FFO per diluted Share
2024 per diluted Share reported results	$	8.88
Same Store NOI		(0.13)
Development, Lease-up and Other Non-Same Store NOI		0.20
2024 Storm-related clean-up costs included in Non-Same Store NOI		0.07
Total overhead		(0.05)
Interest expense ⁽¹⁾		(0.18)
2025 forecasted acquisitions and dispositions		(0.02)
2025 per diluted Share guidance midpoint	$	8.77


⁽¹⁾	The projected year-over-year change in Interest expense is primarily driven by higher interest expense as a result of incremental borrowings related to our acquisition activities in 2024, development activities and debt refinancing.

MAA expects Core FFO for the first quarter of 2025 to be in the range of $2.08 to $2.24 per diluted Share, or $2.16 per diluted Share at the midpoint. The projected difference between Core FFO per diluted Share for the fourth quarter of 2024 to the midpoint of MAA’s guidance for the first quarter of 2025 is summarized below:

	Core FFO per diluted Share
Q4 2024 per diluted Share reported results	$	2.23
Same Store NOI ⁽¹⁾		(0.01)
Development, Lease-up and Other Non-Same Store NOI		0.01
2024 Storm-related clean-up costs included in Non-Same Store NOI		0.02
Total overhead		(0.06)
Interest expense		(0.02)
Other non-operating income (expense)		(0.01)
Q1 2025 per diluted Share guidance midpoint	$	2.16


⁽¹⁾	The sequential quarter-over-quarter change is calculated with projected Same Store Portfolio NOI for the first quarter of 2025 compared to Same Store NOI from the fourth quarter of 2024, which is recast for the 2025 Same Store Portfolio as provided in the Supplemental Data to this release.

MAA does not forecast Earnings per diluted common share on a quarterly basis as MAA generally cannot predict the timing of forecasted acquisition and disposition activity within a particular quarter (rather than during the course of the full year). Additional details and guidance items are provided in the Supplemental Data to this release.

Supplemental Material and Conference Call
Supplemental Data to this release can be found on the “For Investors” page of the MAA website at www.maac.com. MAA will host a conference call to further discuss fourth quarter results on February 6, 2025, at 9:00 AM Central Time. The conference call-in number is (800) 715-9871. You may also join the live webcast of the conference call by accessing the “For Investors” page of the MAA website at www.maac.com. MAA’s filings with the Securities and Exchange Commission (SEC) are filed under the registrant names of Mid-America Apartment Communities, Inc. and Mid-America Apartments, L.P.

About MAA
MAA, an S&P 500 company, is a real estate investment trust (REIT) focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities primarily in the Southeast, Southwest and Mid-Atlantic regions of the United States. As of December 31, 2024, MAA had ownership interest in 104,587 apartment units, including communities currently in development, across 16 states and the District of Columbia. For further details, please visit the MAA website at www.maac.com or contact Investor Relations at [email protected], or via mail at MAA, 6815 Poplar Ave., Suite 500, Germantown, TN 38138, Attn: Investor Relations.

Forward-Looking Statements
Sections of this release contain 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, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Such forward-looking statements include, without limitation, statements regarding expected operating performance and results, property stabilizations, property acquisition and disposition activity, joint venture activity, development and renovation activity and other capital expenditures, and capital raising and financing activity, as well as lease pricing, revenue and expense growth, occupancy, interest rate and other economic expectations. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “forecasts,” “projects,” “assumes,” “will,” “may,” “could,” “should,” “budget,” “target,” “outlook,” “proforma,” “opportunity,” “guidance” and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, as described below, which may cause our actual results, performance or achievements to be materially different from the results of operations, financial conditions or plans expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore such forward-looking statements included in this release may not prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved.

The following factors, among others, could cause our actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking statements:

inability to generate sufficient cash flows due to unfavorable economic and market conditions, changes in supply and/or demand, competition, uninsured losses, changes in tax and housing laws, or other factors;
exposure to risks inherent in investments in a single industry and sector;
adverse changes in real estate markets, including, but not limited to, the extent of future demand for multifamily units in our significant markets, barriers of entry into new markets which we may seek to enter in the future, limitations on our ability to increase or collect rental rates, competition, our ability to identify and consummate attractive acquisitions or development projects on favorable terms, our ability to consummate any planned dispositions in a timely manner on acceptable terms, and our ability to reinvest sale proceeds in a manner that generates favorable returns;
failure of development communities to be completed within budget and on a timely basis, if at all, to lease-up as anticipated or to achieve anticipated results;
unexpected capital needs;
material changes in operating costs, including real estate taxes, utilities and insurance costs, due to inflation and other factors;
inability to obtain appropriate insurance coverage at reasonable rates, or at all, losses due to uninsured risks, deductibles and self-insured retentions, or losses from catastrophes in excess of coverage limits;
ability to obtain financing at favorable rates, if at all, or refinance existing debt as it matures;
level and volatility of interest or capitalization rates or capital market conditions;
the effect of any rating agency actions on the cost and availability of new debt financing;
the impact of adverse developments affecting the U.S. or global banking industry, including bank failures and liquidity concerns, which could cause continued or worsening economic and market volatility, and regulatory responses thereto;
significant change in the mortgage financing market or other factors that would cause single-family housing or other alternative housing options, either as an owned or rental product, to become a more significant competitive product;
ability to continue to satisfy complex rules in order to maintain our status as a REIT for federal income tax purposes, the ability of MAALP to satisfy the rules to maintain its status as a partnership for federal income tax purposes, the ability of our taxable REIT subsidiaries to maintain their status as such for federal income tax purposes, and our ability and the ability of our subsidiaries to operate effectively within the limitations imposed by these rules;
inability to attract and retain qualified personnel;
cyber liability or potential liability for breaches of our or our service providers’ information technology systems, or business operations disruptions;
potential liability for environmental contamination;
changes in the legal requirements we are subject to, or the imposition of new legal requirements, that adversely affect our operations;
extreme weather and natural disasters;
disease outbreaks and other public health events and measures that are taken by federal, state, and local governmental authorities in response to such outbreaks and events;
impact of climate change on our properties or operations;
legal proceedings or class action lawsuits;
impact of reputational harm caused by negative press or social media postings of our actions or policies, whether or not warranted;
compliance costs associated with numerous federal, state and local laws and regulations; and
other risks identified in this release and in reports we file with the SEC or in other documents that we publicly disseminate.

New factors may also emerge from time to time that could have a material adverse effect on our business. Except as required by law, we undertake no obligation to publicly update or revise forward-looking statements contained in this release to reflect events, circumstances or changes in expectations after the date of this release.

FINANCIAL HIGHLIGHTS

Dollars in thousands, except per share data	Three months ended December 31,						Year ended December 31,
	2024			2023			2024			2023
Rental and other property revenues	$	549,832		$	542,247		$	2,191,015		$	2,148,468

Net income available for MAA common shareholders	$	165,724		$	159,554		$	523,855		$	549,118

Total NOI ⁽¹⁾	$	344,899		$	350,465		$	1,370,923		$	1,380,327

Earnings per common share: ⁽²⁾
Basic	$	1.42		$	1.37		$	4.49		$	4.71
Diluted	$	1.42		$	1.37		$	4.49		$	4.71

Funds from operations per Share – diluted: ⁽²⁾
FFO ⁽¹⁾	$	2.21		$	2.53		$	8.77		$	9.39
Core FFO ⁽¹⁾	$	2.23		$	2.32		$	8.88		$	9.17
Core AFFO ⁽¹⁾	$	2.03		$	2.10		$	7.94		$	8.24

Dividends declared per common share	$	1.5150		$	1.4700		$	5.9250		$	5.6700

Dividends/Core FFO (diluted) payout ratio		67.9	%		63.4	%		66.7	%		61.8	%
Dividends/Core AFFO (diluted) payout ratio		74.6	%		70.0	%		74.6	%		68.8	%

Consolidated interest expense	$	44,192		$	38,579		$	168,544		$	149,234
Mark-to-market debt adjustment		—			—			—			25
Debt discount and debt issuance cost amortization		(1,464)			(1,287)			(6,033)			(5,849)
Capitalized interest		5,247			3,311			17,435			12,376
Total interest incurred	$	47,975		$	40,603		$	179,946		$	155,786

Amortization of principal on notes payable	$	—		$	—		$	—		$	854


⁽¹⁾	A reconciliation of the following items and discussion of their respective components can be found later in this release: (i) Net income available for MAA common shareholders to NOI; and (ii) Net income available for MAA common shareholders to FFO, Core FFO and Core AFFO.
⁽²⁾	See the “Share and Unit Data” section for additional information.


Dollars in thousands, except share price	December 31, 2024		December 31, 2023
Gross Assets ⁽¹⁾	$	17,170,171	$	16,349,193
Gross Real Estate Assets ⁽¹⁾	$	16,924,002	$	16,089,909
Total debt	$	4,980,957	$	4,540,225
Common shares and units outstanding		119,958,973		119,838,096
Share price	$	154.57	$	134.46
Book equity value	$	6,147,664	$	6,299,122
Market equity value	$	18,542,058	$	16,113,430
Net Debt/Adjusted EBITDAre⁽²⁾	4.0x		3.6x


⁽¹⁾	A reconciliation of Total assets to Gross Assets and Real estate assets, net, to Gross Real Estate Assets, along with discussion of their components, can be found later in this release.
⁽²⁾	Adjusted EBITDAre is calculated for the trailing twelve month period for each date presented. A reconciliation of the following items and discussion of their respective components can be found later in this release: (i) Unsecured notes payable and Secured notes payable to Net Debt; and (ii) Net income to EBITDA, EBITDAre and Adjusted EBITDAre.

CONSOLIDATED STATEMENTS OF OPERATIONS

Dollars in thousands, except per share data (Unaudited)	Three months ended December 31,				Year ended December 31,
	2024		2023		2024		2023
Revenues:
Rental and other property revenues	$	549,832	$	542,247	$	2,191,015	$	2,148,468
Expenses:
Operating expenses, excluding real estate taxes and insurance		123,848		113,672		502,735		461,540
Real estate taxes and insurance		81,085		78,110		317,357		306,601
Depreciation and amortization		150,852		140,888		585,616		565,063
Total property operating expenses		355,785		332,670		1,405,708		1,333,204
Property management expenses		17,579		17,467		72,040		67,784
General and administrative expenses		14,072		15,249		56,516		58,578
Interest expense		44,192		38,579		168,544		149,234
(Gain) loss on sale of depreciable real estate assets		(55,028)		1		(55,003)		62
Gain on sale of non-depreciable real estate assets		—		—		—		(54)
Other non-operating expense (income)		949		(27,219)		(1,655)		(31,185)
Income before income tax expense		172,283		165,500		544,865		570,845
Income tax expense		(1,755)		(1,148)		(5,240)		(4,744)
Income from continuing operations before real estate joint venture activity		170,528		164,352		539,625		566,101
Income from real estate joint venture		546		516		1,951		1,730
Net income		171,074		164,868		541,576		567,831
Net income attributable to noncontrolling interests		4,428		4,392		14,033		15,025
Net income available for shareholders		166,646		160,476		527,543		552,806
Dividends to MAA Series I preferred shareholders		922		922		3,688		3,688
Net income available for MAA common shareholders	$	165,724	$	159,554	$	523,855	$	549,118

Earnings per common share – basic:
Net income available for common shareholders	$	1.42	$	1.37	$	4.49	$	4.71

Earnings per common share – diluted:
Net income available for common shareholders	$	1.42	$	1.37	$	4.49	$	4.71

SHARE AND UNIT DATA

Shares and units in thousands	Three months ended December 31,				Year ended December 31,
	2024		2023		2024		2023
Net Income Shares ⁽¹⁾
Weighted average common shares – basic		116,828		116,646		116,776		116,521
Effect of dilutive securities		64		87		—		124
Weighted average common shares – diluted		116,892		116,733		116,776		116,645
Funds From Operations Shares And Units
Weighted average common shares and units – basic		119,904		119,791		119,875		119,674
Weighted average common shares and units – diluted		119,958		119,837		119,929		119,722
Period End Shares And Units
Common shares at December 31,		116,883		116,694		116,883		116,694
Operating Partnership units at December 31,		3,076		3,144		3,076		3,144
Total common shares and units at December 31,		119,959		119,838		119,959		119,838


⁽¹⁾	For additional information on the calculation of diluted common shares and earnings per common share, please refer to the Notes to the Consolidated Financial Statements in MAA’s Annual Report on Form 10-K for the annual period ended December 31, 2024, expected to be filed with the SEC on or about February 7, 2025.

CONSOLIDATED BALANCE SHEETS

Dollars in thousands (Unaudited)
	December 31, 2024		December 31, 2023
Assets
Real estate assets:
Land	$	2,096,912	$	2,031,403
Buildings and improvements and other		14,160,799		13,515,949
Development and capital improvements in progress		470,282		385,405
		16,727,993		15,932,757
Less: Accumulated depreciation		(5,327,584)		(4,864,690)
		11,400,409		11,068,067
Undeveloped land		73,359		73,861
Investment in real estate joint venture		41,650		41,977
Real estate assets, net		11,515,418		11,183,905

Cash and cash equivalents		43,018		41,314
Restricted cash		13,743		13,777
Other assets		232,426		245,507
Assets held for sale		7,764		—
Total assets	$	11,812,369	$	11,484,503

Liabilities and equity
Liabilities:
Unsecured notes payable	$	4,620,690	$	4,180,084
Secured notes payable		360,267		360,141
Accrued expenses and other liabilities		683,748		645,156
Total liabilities		5,664,705		5,185,381

Redeemable common stock		22,230		19,167

Shareholders’ equity:
Preferred stock		9		9
Common stock		1,166		1,168
Additional paid-in capital		7,417,453		7,399,921
Accumulated distributions in excess of net income		(1,469,557)		(1,298,263)
Accumulated other comprehensive loss		(6,940)		(8,764)
Total MAA shareholders’ equity		5,942,131		6,094,071
Noncontrolling interests – Operating Partnership units		155,409		163,128
Total shareholders’ equity		6,097,540		6,257,199
Noncontrolling interests – consolidated real estate entities		27,894		22,756
Total equity		6,125,434		6,279,955
Total liabilities and equity	$	11,812,369	$	11,484,503

RECONCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO FFO, CORE FFO, CORE AFFO AND FAD

Amounts in thousands, except per share and unit data	Three months ended December 31,				Year ended December 31,
	2024		2023		2024		2023
Net income available for MAA common shareholders	$	165,724	$	159,554	$	523,855	$	549,118
Depreciation and amortization of real estate assets		149,457		139,437		579,927		558,969
(Gain) loss on sale of depreciable real estate assets		(55,028)		1		(55,003)		62
MAA’s share of depreciation and amortization of real estate assets of real estate joint venture		162		159		628		615
Gain on consolidation of third-party development ⁽¹⁾		(206)		—		(11,239)		—
Net income attributable to noncontrolling interests		4,428		4,392		14,033		15,025
FFO attributable to common shareholders and unitholders		264,537		303,543		1,052,201		1,123,789
Loss (gain) on embedded derivative in preferred shares ⁽¹⁾		4,300		(20,391)		18,751		(18,528)
Gain on sale of non-depreciable real estate assets		—		—		—		(54)
Gain on investments, net of tax ⁽¹⁾⁽²⁾		(3,205)		(2,928)		(6,078)		(3,531)
Casualty related charges (recoveries), net ⁽¹⁾		338		392		(9,326)		980
Gain on debt extinguishment ⁽¹⁾		—		—		—		(57)
Legal costs, settlements and (recoveries), net ⁽¹⁾⁽³⁾		1,437		(2,854)		9,437		(4,454)
Mark-to-market debt adjustment ⁽⁴⁾		—		—		—		(25)
Core FFO attributable to common shareholders and unitholders		267,407		277,762		1,064,985		1,098,120
Recurring capital expenditures		(23,418)		(26,318)		(112,228)		(111,685)
Core AFFO attributable to common shareholders and unitholders		243,989		251,444		952,757		986,435
Redevelopment capital expenditures		(17,903)		(20,735)		(51,670)		(98,177)
Revenue enhancing capital expenditures		(15,394)		(20,455)		(75,960)		(71,623)
Commercial capital expenditures		(3,542)		(2,382)		(7,823)		(6,922)
Other capital expenditures		(24,662)		(8,563)		(71,820)		(31,672)
FAD attributable to common shareholders and unitholders	$	182,488	$	199,309	$	745,484	$	778,041

Dividends and distributions paid	$	176,336	$	167,768	$	705,160	$	669,388

Weighted average common shares – diluted		116,892		116,733		116,776		116,645
FFO weighted average common shares and units – diluted		119,958		119,837		119,929		119,722

Earnings per common share – diluted:
Net income available for common shareholders	$	1.42	$	1.37	$	4.49	$	4.71

FFO per Share – diluted	$	2.21	$	2.53	$	8.77	$	9.39
Core FFO per Share – diluted	$	2.23	$	2.32	$	8.88	$	9.17
Core AFFO per Share – diluted	$	2.03	$	2.10	$	7.94	$	8.24


⁽¹⁾	Included in Other non-operating expense (income) in the Consolidated Statements of Operations.
⁽²⁾	For the three months ended December 31, 2024 and 2023, gain on investments is presented net of tax expense of $0.9 million and $0.8 million, respectively. For the twelve months ended December 31, 2024 and 2023, gain on investments is presented net of tax expense of $1.7 million and $0.9 million, respectively.
⁽³⁾	During the twelve months ended December 31, 2024, in accordance with its accounting policies, MAA recognized $8.0 million of accrued legal defense costs that are expected to be incurred through July 2027.
⁽⁴⁾	Included in Interest expense in the Consolidated Statements of Operations.

RECONCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO NET OPERATING INCOME

Dollars in thousands	Three Months Ended				Year Ended
	December 31, 2024		December 31, 2023		December 31, 2024		December 31, 2023

Net income available for MAA common shareholders	$	165,724	$	159,554	$	523,855	$	549,118
Depreciation and amortization		150,852		140,888		585,616		565,063
Property management expenses		17,579		17,467		72,040		67,784
General and administrative expenses		14,072		15,249		56,516		58,578
Interest expense		44,192		38,579		168,544		149,234
(Gain) loss on sale of depreciable real estate assets		(55,028)		1		(55,003)		62
Gain on sale of non-depreciable real estate assets		—		—		—		(54)
Other non-operating expense (income)		949		(27,219)		(1,655)		(31,185)
Income tax expense		1,755		1,148		5,240		4,744
Income from real estate joint venture		(546)		(516)		(1,951)		(1,730)
Net income attributable to noncontrolling interests		4,428		4,392		14,033		15,025
Dividends to MAA Series I preferred shareholders		922		922		3,688		3,688
Total NOI	$	344,899	$	350,465	$	1,370,923	$	1,380,327

Same Store NOI	$	331,047	$	338,297	$	1,321,177	$	1,339,810
Non-Same Store and Other NOI		13,852		12,168		49,746		40,517
Total NOI	$	344,899	$	350,465	$	1,370,923	$	1,380,327

RECONCILIATION OF NET INCOME TO EBITDA, EBITDAre AND ADJUSTED EBITDAre

Dollars in thousands	Three Months Ended				Year Ended
	December 31, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Net income	$	171,074	$	164,868	$	541,576	$	567,831
Depreciation and amortization		150,852		140,888		585,616		565,063
Interest expense		44,192		38,579		168,544		149,234
Income tax expense (benefit)		1,755		1,148		5,240		4,744
EBITDA		367,873		345,483		1,300,976		1,286,872
(Gain) loss on sale of depreciable real estate assets		(55,028)		1		(55,003)		62
Gain on consolidation of third-party development ⁽¹⁾		(206)		—		(11,239)		—
Adjustments to reflect MAA’s share of EBITDAre of unconsolidated affiliates		345		339		1,363		1,350
EBITDAre		312,984		345,823		1,236,097		1,288,284
Loss (gain) on embedded derivative in preferred shares ⁽¹⁾		4,300		(20,391)		18,751		(18,528)
Gain on sale of non-depreciable real estate assets		—		—		—		(54)
Gain on investments ⁽¹⁾		(4,143)		(3,704)		(7,809)		(4,449)
Casualty related charges (recoveries), net ⁽¹⁾		338		392		(9,326)		980
Gain on debt extinguishment ⁽¹⁾		—		—		—		(57)
Legal costs, settlements and (recoveries), net ⁽¹⁾⁽²⁾		1,437		(2,854)		9,437		(4,454)
Adjusted EBITDAre	$	314,916	$	319,266	$	1,247,150	$	1,261,722


⁽¹⁾	Included in Other non-operating expense (income) in the Consolidated Statements of Operations.
⁽²⁾	During the twelve months ended December 31, 2024, in accordance with its accounting policies, MAA recognized $8.0 million, of accrued legal defense costs that are expected to be incurred through July 2027.

RECONCILIATION OF UNSECURED NOTES PAYABLE AND SECURED NOTES PAYABLE TO NET DEBT

Dollars in thousands
	December 31, 2024		December 31, 2023
Unsecured notes payable	$	4,620,690	$	4,180,084
Secured notes payable		360,267		360,141
Total debt		4,980,957		4,540,225
Cash and cash equivalents		(43,018)		(41,314)
Net Debt	$	4,937,939	$	4,498,911

RECONCILIATION OF TOTAL ASSETS TO GROSS ASSETS

Dollars in thousands
	December 31, 2024		December 31, 2023
Total assets	$	11,812,369	$	11,484,503
Accumulated depreciation		5,327,584		4,864,690
Accumulated depreciation for Assets held for sale ⁽¹⁾		30,218		—
Gross Assets	$	17,170,171	$	16,349,193


⁽¹⁾	Included in Assets held for sale in the Consolidated Balance Sheets.

RECONCILIATION OF REAL ESTATE ASSETS, NET TO GROSS REAL ESTATE ASSETS

Dollars in thousands
	December 31, 2024		December 31, 2023
Real estate assets, net	$	11,515,418	$	11,183,905
Accumulated depreciation		5,327,584		4,864,690
Assets held for sale, net		7,764		—
Accumulated depreciation for Assets held for sale ⁽¹⁾		30,218		—
Cash and cash equivalents		43,018		41,314
Gross Real Estate Assets	$	16,924,002	$	16,089,909


⁽¹⁾	Included in Assets held for sale in the Consolidated Balance Sheets.

NON-GAAP FINANCIAL MEASURES

Adjusted EBITDAre

For purposes of calculations in this release, Adjusted Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or Adjusted EBITDAre, represents EBITDAre further adjusted for items that are not considered part of MAA’s core operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares, gain or loss on sale of non-depreciable assets, gain or loss on investments, casualty related charges (recoveries), net, gain or loss on debt extinguishment and legal costs, settlements and (recoveries), net. As an owner and operator of real estate, MAA considers Adjusted EBITDAre to be an important measure of performance from core operations because Adjusted EBITDAre excludes various income and expense items that are not indicative of operating performance. MAA’s computation of Adjusted EBITDAre may differ from the methodology utilized by other companies to calculate Adjusted EBITDAre. Adjusted EBITDAre should not be considered as an alternative to Net income as an indicator of operating performance.

Core Adjusted Funds from Operations (Core AFFO)

Core AFFO is composed of Core FFO less recurring capital expenditures. Because net income attributable to noncontrolling interests is added back, Core AFFO, when used in this release, represents Core AFFO attributable to common shareholders and unitholders. Core AFFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers Core AFFO to be an important measure of performance from operations because Core AFFO measures the ability to control revenues, expenses and recurring capital expenditures.

Core Funds from Operations (Core FFO)

Core FFO represents FFO as adjusted for items that are not considered part of MAA’s core business operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares; gain or loss on sale of non-depreciable assets; gain or loss on investments, net of tax; casualty related charges (recoveries), net; gain or loss on debt extinguishment; legal costs, settlements and (recoveries), net, and mark-to-market debt adjustments. Because net income attributable to noncontrolling interests is added back, Core FFO, when used in this release, represents Core FFO attributable to common shareholders and unitholders. While MAA’s definition of Core FFO may be similar to others in the industry, MAA’s methodology for calculating Core FFO may differ from that utilized by other REITs and, accordingly, may not be comparable to such other REITs. Core FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that Core FFO is helpful in understanding its core operating performance between periods in that it removes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.

EBITDA

For purposes of calculations in this release, Earnings Before Interest, Income Taxes, Depreciation and Amortization, or EBITDA, is composed of net income plus depreciation and amortization, interest expense, and income taxes. As an owner and operator of real estate, MAA considers EBITDA to be an important measure of performance from core operations because EBITDA excludes various expense items that are not indicative of operating performance. EBITDA should not be considered as an alternative to Net income as an indicator of operating performance.

EBITDAre

For purposes of calculations in this release, Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or EBITDAre, is composed of EBITDA further adjusted for the gain or loss on sale of depreciable assets, gain on consolidation of third-party development and adjustments to reflect MAA’s share of EBITDAre of an unconsolidated affiliate. As an owner and operator of real estate, MAA considers EBITDAre to be an important measure of performance from core operations because EBITDAre excludes various expense items that are not indicative of operating performance. While MAA’s definition of EBITDAre is in accordance with NAREIT’s definition, it may differ from the methodology utilized by other companies to calculate EBITDAre. EBITDAre should not be considered as an alternative to Net income as an indicator of operating performance.

Funds Available for Distribution (FAD)

FAD is composed of Core FFO less total capital expenditures, excluding development spending, property acquisitions, capital expenditures relating to significant casualty losses that management expects to be reimbursed by insurance proceeds and corporate related capital expenditures. Because net income attributable to noncontrolling interests is added back, FAD, when used in this release, represents FAD attributable to common shareholders and unitholders. FAD should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers FAD to be an important measure of performance from core operations because FAD measures the ability to control revenues, expenses and capital expenditures.

Funds From Operations (FFO)

FFO represents net income available for MAA common shareholders (calculated in accordance with GAAP) excluding gain or loss on disposition of operating properties, asset impairment and gain on consolidation of third-party development, plus depreciation and amortization of real estate assets, net income attributable to noncontrolling interests and adjustments for joint ventures. Because net income attributable to noncontrolling interests is added back, FFO, when used in this release, represents FFO attributable to common shareholders and unitholders. While MAA’s definition of FFO is in accordance with NAREIT’s definition, it may differ from the methodology for calculating FFO utilized by other companies and, accordingly, may not be comparable to such other companies. FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that FFO is helpful in understanding operating performance in that FFO excludes depreciation and amortization of real estate assets. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.

Gross Assets

Gross Assets represents Total assets plus Accumulated depreciation and Accumulated depreciation for Assets held for sale. MAA believes that Gross Assets can be used as a helpful tool in evaluating its balance sheet positions. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.

NON-GAAP FINANCIAL MEASURES (Continued)

Gross Real Estate Assets

Gross Real Estate Assets represents Real estate assets, net plus Accumulated depreciation, Assets held for sale, net, Accumulated depreciation for Assets held for sale, Cash and cash equivalents and 1031(b) exchange proceeds included in Restricted cash. MAA believes that Gross Real Estate Assets can be used as a helpful tool in evaluating its balance sheet positions. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.

Net Debt

Net Debt represents Unsecured notes payable and Secured notes payable less Cash and cash equivalents and 1031(b) exchange proceeds included in Restricted cash. MAA believes Net Debt is a helpful tool in evaluating its debt position.

Net Operating Income (NOI)

Net Operating Income represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties held during the period, regardless of their status as held for sale. NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.

Non-Same Store and Other NOI

Non-Same Store and Other NOI represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties classified within the Non-Same Store and Other Portfolio during the period. Non-Same Store and Other NOI includes storm-related expenses related to severe weather events, including hurricanes and winter storms. Non-Same Store and Other NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes Non-Same Store and Other NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.

Same Store NOI

Same Store NOI represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties classified within the Same Store Portfolio during the period. Same Store NOI excludes storm-related expenses related to severe weather events, including hurricanes and winter storms. Same Store NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes Same Store NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.

OTHER KEY DEFINITIONS

Average Effective Rent per Unit

Average Effective Rent per Unit represents the average of gross rent amounts after the effect of leasing concessions for occupied units plus prevalent market rates asked for unoccupied units, divided by the total number of units. Leasing concessions represent discounts to the current market rate. MAA believes average effective rent is a helpful measurement in evaluating average pricing. It does not represent actual rental revenue collected per unit.

Average Physical Occupancy

Average Physical Occupancy represents the average of the daily physical occupancy for an applicable period.

Development Communities

Communities remain identified as development until certificates of occupancy are obtained for all units under development. Once all units are delivered and available for occupancy, the community moves into the Lease-up Communities portfolio.

Lease-up Communities

New acquisitions acquired during lease-up and newly developed communities remain in the Lease-up Communities portfolio until stabilized. Communities are considered stabilized when achieving 90% average physical occupancy for 90 days.

Non-Same Store and Other Portfolio

Non-Same Store and Other Portfolio includes recently acquired communities, communities in development or lease-up, communities that have been disposed of or identified for disposition, communities that have experienced a significant casualty loss, stabilized communities that do not meet the requirements defined by the Same Store Portfolio, retail properties and commercial properties.

Resident Turnover

Resident turnover represents resident move outs excluding transfers within the Same Store Portfolio as a percentage of expiring leases on a trailing twelve month basis as of the end of the reported quarter.

Same Store Portfolio

MAA reviews its Same Store Portfolio at the beginning of each calendar year, or as significant transactions or events warrant. Communities are generally added into the Same Store Portfolio if they were owned and stabilized at the beginning of the previous year. Communities are considered stabilized when achieving 90% average physical occupancy for 90 days. Communities that have been approved by MAA’s Board of Directors for disposition are excluded from the Same Store Portfolio. Communities that have experienced a significant casualty loss are also excluded from the Same Store Portfolio.

View original content to download multimedia:https://www.prnewswire.com/news-releases/maa-reports-fourth-quarter-and-full-year-2024-results-302369392.html

SOURCE MAA

February 5, 2025 4:32 pm

Titan International, Inc. to Announce Fourth Quarter 2024 Financial Results on February 26

PR Newswire

CHICAGO
, Feb. 5, 2025 /PRNewswire/ — Titan International, Inc. will release its fourth quarter 2024 financial results after the close of the market on Wednesday, February 26, 2025 to be followed by a teleconference and webcast on Thursday, February 27, 2025 at 9:00 a.m. Eastern Time.

The real-time, listen-only webcast can be accessed using the following link https://events.q4inc.com/attendee/950721247 on our website at www.titan-intl.com within the “Investor Relations” page under the “News & Events” menu (https://ir.titan-intl.com/news-and-events/events/default.aspx). Listeners should access the website at least 10 minutes prior to the live event.

In order to participate in the real-time teleconference, with live audio Q&A, participants should use one of the following dial in numbers:

United States (Toll-Free): 1 833 470 1428
All Other Locations: https://www.netroadshow.com/conferencing/global-numbers?confId=56511
Participants Access Code: 639748

A webcast replay of the teleconference will be available on our website (https://ir.titan-intl.com/news-and-events/events/default.aspx) soon after the live event.

About Titan
: Titan International, Inc. (NYSE: TWI) is a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products. Headquartered in West Chicago, Illinois, the company globally produces a broad range of products to meet the specifications of original equipment manufacturers (OEMs) and aftermarket customers in the agricultural, earthmoving/construction, and consumer markets. For more information, visit www.titan-intl.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/titan-international-inc-to-announce-fourth-quarter-2024-financial-results-on-february-26-302369019.html

SOURCE Titan International, Inc.

February 5, 2025 4:32 pm

Equitable Holdings Reports Full Year and Fourth Quarter 2024 Results

Equitable Holdings Reports Full Year and Fourth Quarter 2024 Results

Robust growth momentum with record full year net inflows of $7.1 billion in Retirement¹, $4.0 billion in Wealth Management and active net inflows of $4.3 billion in Asset Management
Full year Net income of $1.3 billion, or $3.78 per share; fourth quarter Net income of $899 million, or $2.76 per share
Non-GAAP operating earnings² of $2.0 billion, or $5.93 per share for the full year and $522 million, or $1.57 per share, for the fourth quarter 2024. Adjusting for notable items³, Non-GAAP operating earnings of $2.1 billion, or $6.18 per share, for the full year and $549 million, or $1.65 per share, for the fourth quarter 2024
Cash generation of $1.5 billion in 2024, expected to increase to $1.6-1.7 billion in 2025⁴
Returned $1.3 billion to shareholders this year, including $335 million in the fourth quarter, for a payout ratio of 66%, in-line with 60-70% target

NEW YORK–(BUSINESS WIRE)–
Equitable Holdings, Inc. (“Equitable Holdings”, “Holdings”, or the “Company”) (NYSE: EQH) today announced financial results for the full year and fourth quarter ended December 31, 2024.

“2024 highlighted the building growth momentum for Equitable Holdings and we remain on track to deliver on each of our 2027 financial targets. Full year Non-GAAP operating earnings per share of $5.93 increased 29% from 2023 and was up 20% excluding notable items, above our 12-15% target. Equitable’s integrated business model positions us well to benefit from the tremendous growth in the US retirement market and the need for advice-driven solutions. Our Retirement businesses reported record net inflows of $7.1 billion for the full year, including $1.6 billion in the fourth quarter. In Wealth Management, we had $4.0 billion of advisory net inflows for the year and advisor productivity increased 10% year-over-year. Despite challenging industry dynamics, our asset management business, AllianceBernstein, delivered $4.3 billion of active net inflows in 2024. Strong sales and net inflows helped drive steady growth in both spread- and fee-based earnings, contributing to a 15% increase in annual cash generation to $1.5 billion. This enabled us to return $1.3 billion of capital to shareholders in the year, delivering on our 60-70% payout ratio guidance,” said Mark Pearson, President and Chief Executive Officer.

Mr. Pearson concluded, “Looking forward, we expect our strong momentum to continue in 2025. We forecast Non-GAAP operating EPS growth to be consistent with our 12-15% target and project cash generation to increase to $1.6-1.7 billion, supported by organic growth across our Retirement, Asset Management, and Wealth Management businesses and continued execution against our strategic initiatives.”

Consolidated Results

Fourth Quarter

Full Year

(in millions, except per share amounts or unless otherwise noted)

2024

2023

2024

2023

Total Assets Under Management/Administration (“AUM/A”, in billions)

1,019

930

1,019

930

Net income (loss) attributable to Holdings

899

(698

)

1,307

1,302

Net income (loss) attributable to Holdings per common share

2.76

(2.15

)

3.78

3.48

Non-GAAP operating earnings

522

476

2,007

1,694

Non-GAAP operating earnings per common share (“EPS”)

1.57

1.33

5.93

4.59

As of December 31, 2024, total AUM/A was $1.0 trillion, a year-over-year increase of 10%, driven by positive net inflows and higher markets over the prior twelve months.

On a full year basis, Net income attributable to Holdings was $1.3 billion in 2024, flat compared to 2023.

Full year Non-GAAP operating earnings were $2.0 billion in 2024 versus $1.7 billion in 2023. Adjusting for notable items of $79 million, 2024 Non-GAAP operating earnings were $2.1 billion or $6.18 per share.

Net income (loss) attributable to Holdings for the fourth quarter of 2024 was $899 million compared to $(698) million in the fourth quarter of 2023.

Non-GAAP operating earnings in the fourth quarter of 2024 was $522 million compared to $476 million in the fourth quarter of 2023. Adjusting for notable items⁵ of $27 million, fourth quarter 2024 Non-GAAP operating earnings was $549 million or $1.65 per share.

As of December 31, 2024, book value per common share including accumulated other comprehensive income (“AOCI”) was $0.25. Book value per common share excluding AOCI was $28.36.

Business Highlights

Full year 2024 business segment highlights:
- Individual Retirement (“IR”) reported full year net inflows of $7.2 billion, and first year premiums were up 30% over the prior year, with growth across all products.
- Group Retirement (“GR”) reported full year net outflows of $104 million. Tax-exempt net inflows of $77 million and institutional premiums of $692 million were more than offset by outflows in the corporate channel and other run-off products.
- Asset Management (AllianceBernstein or “AB”)⁶ reported full year net outflows of $2.2 billion with lower-fee passive net outflows partially offset by active net inflows of $4.3 billion.
- Protection Solutions (“PS”) reported $3.2 billion of full year gross written premiums with accumulation-oriented VUL first year premiums up 9% and Employee Benefits first year premiums up 15% over the prior year.
- Wealth Management (“WM”) reported full year advisory net inflows of $4.0 billion, with total assets under administration reaching $100.6 billion.
- Legacy (“L”) had $2.8 billion of full year net outflows and continues to run-off at $2-$3 billion annually.
Capital management program:
- The Company returned $1.3 billion to shareholders in 2024, including $335 million in the fourth quarter. This was consistent with our payout ratio target of 60-70% of Non-GAAP operating earnings.
- The Company continues to benefit from a diverse business mix, with $1.5 billion of cash flows to the Holding company for the year, in line with the 2024 guidance.
- The Company reported cash and liquid assets of $1.8 billion at Holdings⁷ as of quarter end, which remains above the $500 million minimum target. The combined NAIC RBC ratio was approximately 425% at year end, above the Company’s target of 375-400%.
Delivering shareholder value:
- The Company has deployed $12 billion of its $20 billion capital commitment to AB. This supports growth in AB’s Private Markets business, which currently has $70 billion in assets under management.
- Through year end 2024, the Company has achieved $100 million of its targeted $150 million of run-rate expense savings by 2027. It has also achieved $80 million of the targeted $110 million of incremental investment income from the general account by 2027.

Business Segment Results

Individual Retirement

(in millions, unless otherwise noted)	Q4 2024		Q4 2023
Account value (in billions)	$	110.5	$	92.0
Segment net flows (in billions)		1.7		1.5
Operating earnings (loss)		240		213

Account value increased by 20%, driven by positive market performance and net inflows over the prior twelve months.
Net inflows of $1.7 billion in the quarter were higher versus the prior year quarter, and first year premiums of $4.9 billion increased by 27%.
Operating earnings of $240 million, were up over the prior year quarter primarily due to higher net interest margin and fee-based revenue, partially offset by higher commissions.
Operating earnings adjusted for notable items⁸ increased from $222 million in the prior year quarter to $244 million. Notable items of $4 million in the current period reflects lower net investment income from alternatives.

Group Retirement

(in millions, unless otherwise noted)	Q4 2024			Q4 2023
Account value (in billions)	$	40.7		$	36.5
Segment net flows		(134	)		(135	)
Operating earnings (loss)		132			98

Account value increased by 11%, primarily due to market performance over the prior twelve months.
Net outflows were $134 million in the fourth quarter, with $55 million of tax-exempt net inflows, offset by net outflows in corporate and other run-off products. Institutional inflows totaled $108 million in the quarter.
Operating earnings increased from $98 million in the prior year quarter to $132 million, primarily due to higher net interest margin and higher fee-based revenue.
Operating earnings adjusted for notable items⁸ increased from $109 million in the prior year quarter to $137 million. Notable items were $5 million in the quarter reflecting lower net investment income from alternatives.

Asset Management

(in millions, unless otherwise noted)	Q4 2024			Q4 2023
Total AUM (in billions)	$	792.2		$	725.2
Segment net flows (in billions)		(4.8	)		(1.8	)
Operating earnings (loss)		161			114

AUM increased by 9% due to market performance over the prior twelve months.
Net outflows of $4.8 billion in the quarter as net outflows of $6.2 billion in the Institutional channel were partially offset by net inflows of $1.1 billion in Retail and $0.3 billion in Private Wealth.
Operating earnings increased from $114 million in the prior year quarter to $161 million, primarily due to higher base fees on higher average AUM and higher performance fees, partially offset by increased expenses.

Protection Solutions

(in millions)	Q4 2024		Q4 2023
Gross written premiums	$	829	$	821
Annualized premiums		102		102
Operating earnings (loss)		32		28

Gross written premiums increased by 1% year-over-year, driven by growth in Employee Benefits.
Operating earnings increased from $28 million in the prior year quarter to $32 million, with higher net investment income partially offset by higher net mortality.
Operating earnings adjusted for notable items⁹ decreased from $68 million in the prior year quarter to $43 million. Notable items of $11 million this period reflect lower net investment income from alternatives.

Wealth Management

(in millions, unless otherwise noted)	Q4 2024		Q4 2023
Total AUA (in billions)	$	100.6	$	87.0
Advisory Net Flows (in billions)		0.8		0.5
Operating earnings (loss)		47		45

AUA increased by 16% due to market performance and net inflows over the last twelve months.
Advisory net inflows of $776 million in the quarter, supported by a 10% year-over-year increase in advisor productivity.
Operating earnings increased from $45 million in the prior year quarter to $47 million, primarily due to higher advisory and distribution fees, which were partially offset by higher commissions and distribution-related payments.

Legacy

(in millions)	Q4 2024			Q4 2023
Account value (in billions)	$	21.4		$	21.8
Net Flows		(787	)		(648	)
Operating earnings (loss)		38			31

Account value decreased by 2% versus the prior year period as positive market performance was offset by outflows as the block runs off.
Net outflows of $787 million were in line with expectations as this business continues to run-off at $2 billion to $3 billion annually.
Operating earnings increased from $31 million in the prior year quarter to $38 million, primarily due to higher fee-based revenue.
Operating earnings adjusted for notable items¹⁰ increased from $28 million in the prior year quarter to $39 million. Notable items of $1 million in the current period reflects lower net investment income.

Corporate and Other (“C&O”)

The operating loss of $128 million in the fourth quarter increased from an operating loss of $53 million in the prior year quarter. After adjusting for notable items¹⁰, the operating loss increased from $93 million in the prior year quarter to $122 million.

Exhibit 1: Notable Items

Notable items represent the impact on results from our annual actuarial assumption review, approximate impacts attributable to significant variances from the Company’s expectations, and other items that the Company believes may not be indicative of future performance. The Company chooses to highlight the impact of these items and give Non-GAAP measures less notable items to provide a better understanding of our results of operations in a given period. Certain figures may not sum due to rounding.

Impact of notable items by segment and Corporate & Other:

	Three Months Ended December 31,					Year Ended December 31,
(in millions)	2024			2023			2024			2023
Non-GAAP Operating Earnings	$	522	$	476		$	2,007		$	1,694
Post-tax Adjustments related to notable items:
Individual Retirement		4		9			16			22
Group Retirement		5		11			17			24
Asset Management		—		(14	)		(9	)		(23	)
Protection Solutions		11		40			43			211
Wealth Management		—		—			—			—
Legacy		1		(3	)		2			(2	)
Corporate & Other		6		(40	)		13			(31	)
Notable items subtotal		27		3			82			201
Impact of Actuarial Assumption Update		—		—			(3	)		(12	)
Non-GAAP Operating Earnings, less Notable Items	$	549	$	479		$	2,086		$	1,883

Impact of notable items by item category:

	Three Months Ended December 31,				Year Ended December 31,
(in millions)	2024		2023			2024			2023
Non-GAAP Operating Earnings	$	522	$	476	$	2,007		$	1,694
Pre-tax adjustments related to Notable Items:
Model Updates/True-Up Adjustments		—		14		6			(2	)
Mortality		—		—		—			151
Expenses		—		—		(1	)		—
Net Investment Income		31		9		88			117
Subtotal		31		23		93			266
Post-tax impact of Notable Items		27		3		82			201
Impact of Actuarial Assumption Update		—		—		(3	)		(12	)
Non-GAAP Operating Earnings, less Notable Items	$	549	$	479	$	2,086		$	1,883

Earnings Conference Call

Equitable Holdings will host a conference call at 10 a.m. ET on February 6, 2025 to discuss its full year and fourth quarter 2024 results. The conference call webcast, along with additional earnings materials, will be accessible on the company’s investor relations website at ir.equitableholdings.com. Please log on to the webcast at least 15 minutes prior to the call to download and install any necessary software.

To register for the conference call, please use the following link:

EQH Full Year and Fourth Quarter 2024 Earnings Call

After registering, you will receive an email confirmation including dial in details and a unique conference call code for entry. Registration is open through the live call. To ensure you are connected for the full call we suggest registering a day in advance or at minimum 10 minutes before the start of the call.

A webcast replay will be made available on the Equitable Holdings Investor Relations website at ir.equitableholdings.com.

About Equitable Holdings

Equitable Holdings, Inc. (NYSE: EQH) is a leading financial services holding company comprised of complementary and well-established businesses, Equitable, AllianceBernstein and Equitable Advisors. Equitable Holdings has $1 trillion in assets under management and administration (as of 12/31/2024) and more than 5 million client relationships globally. Founded in 1859, Equitable provides retirement and protection strategies to individuals, families and small businesses. AllianceBernstein is a global investment management firm that offers diversified investment services to institutional investors, individuals and private wealth clients. Equitable Advisors, LLC (Equitable Financial Advisors in MI and TN) has 4,600 duly registered and licensed financial professionals that provide financial planning, wealth management, retirement planning, protection and risk management services to clients across the country.

Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “forecasts,” “intends,” “seeks,” “aims,” “plans,” “assumes,” “estimates,” “projects,” “should,” “would,” “could,” “may,” “will,” “shall” or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Equitable Holdings, Inc. (“Holdings”) and its consolidated subsidiaries. These forward-looking statements include, but are not limited to, statements regarding projections, estimates, forecasts and other financial and performance metrics and projections of market expectations. “We,” “us” and “our” refer to Holdings and its consolidated subsidiaries, unless the context refers only to Holdings as a corporate entity. There can be no assurance that future developments affecting Holdings will be those anticipated by management. Forward-looking statements include, without limitation, all matters that are not historical facts.

These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: (i) conditions in the financial markets and economy, including the impact of geopolitical conflicts, changes in tariffs and trade barriers, and related economic conditions, equity market declines and volatility, interest rate fluctuations, impacts on our goodwill and changes in liquidity and access to and cost of capital;; (ii) operational factors, including reliance on the payment of dividends to Holdings by its subsidiaries, protection of confidential customer information or proprietary business information, operational failures by us or our service providers, potential strategic transactions, changes in accounting standards, and catastrophic events, such as the outbreak of pandemic diseases; (iii) credit, counterparties and investments, including counterparty default on derivative contracts, failure of financial institutions, defaults by third parties and affiliates and economic downturns, defaults and other events adversely affecting our investments; (iv) our reinsurance and hedging programs; (v) our products, structure and product distribution, including variable annuity guaranteed benefits features within certain of our products, variations in statutory capital requirements, financial strength and claims-paying ratings, state insurance laws limiting the ability of our insurance subsidiaries to pay dividends and key product distribution relationships; (vi) estimates, assumptions and valuations, including risk management policies and procedures, potential inadequacy of reserves and experience differing from pricing expectations, amortization of deferred acquisition costs and financial models; (vii) our Asset Management segment, including fluctuations in assets under management and the industry-wide shift from actively-managed investment services to passive services; (viii) recruitment and retention of key employees and experienced and productive financial professionals; (ix) subjectivity of the determination of the amount of allowances and impairments taken on our investments; (x) legal and regulatory risks, including federal and state legislation affecting financial institutions, insurance regulation and tax reform; (xi) risks related to our common stock and (xii) general risks, including strong industry competition, information systems failing or being compromised and protecting our intellectual property.

Forward-looking statements, including any financial guidance, should be read in conjunction with the other cautionary statements, risks, uncertainties and other factors identified in Holdings’ filings with the Securities and Exchange Commission. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.

Forward-looking Non-GAAP Metrics

The Company has presented forward-looking statements regarding Non-GAAP operating earnings, Non-GAAP operating earnings per share and Adjusted Operating Margin at AB. These non-GAAP financial measures are derived by excluding certain amounts, expenses or income, from the corresponding financial measures determined in accordance with GAAP. The determination of the amounts that are excluded from these non-GAAP financial measures is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period. We are unable to present a quantitative reconciliation of forward-looking adjusted operating earnings per share and payout ratio targeted to non-GAAP operating earnings to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict all of the necessary components of such GAAP measures without unreasonable effort or expense. In addition, we believe such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the Company’s future financial results. These non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among others changes in connection with quarter-end and year-end adjustments. Any variations between the Company’s actual results and preliminary financial data set forth above may be material.

Use of Non-GAAP Financial Measures

In addition to our results presented in accordance with U.S. GAAP, we report Non-GAAP Operating Earnings, Non-GAAP Operating ROE, and Non-GAAP operating common EPS, each of which is a measure that is not determined in accordance with U.S. GAAP. Management principally uses these non-GAAP financial measures in evaluating performance because they present a clearer picture of our operating performance and they allow management to allocate resources. Similarly, management believes that the use of these Non-GAAP financial measures, together with relevant U.S. GAAP measures, provide investors with a better understanding of our results of operations and the underlying profitability drivers and trends of our business. These non-GAAP financial measures are intended to remove from our results of operations the impact of market changes (where there is a mismatch in the valuation of assets and liabilities) as well as certain other expenses which are not part of our underlying profitability drivers or likely to re-occur in the foreseeable future, as such items fluctuate from period-to-period in a manner inconsistent with these drivers. These measures should be considered supplementary to our results that are presented in accordance with U.S. GAAP and should not be viewed as a substitute for the U.S. GAAP measures. Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Consequently, our non-GAAP financial measures may not be comparable to similar measures used by other companies.

We also discuss certain operating measures, including AUM, AUA, AV, Protection Solutions reserves and certain other operating measures, which management believes provide useful information about our businesses and the operational factors underlying our financial performance.

Non-GAAP Operating Earnings

Non-GAAP Operating Earnings is an after-tax Non-GAAP financial measure used to evaluate our financial performance on a consolidated basis that is determined by making certain adjustments to our consolidated after-tax net income attributable to Holdings. The most significant of such adjustments relates to our derivative positions, which protect economic value and statutory capital, and the variable annuity product MRBs. This is a large source of volatility in net income.

Non-GAAP Operating Earnings equals our consolidated after-tax net income attributable to Holdings adjusted to eliminate the impact of the following items:

Items related to variable annuity product features, which include: (i) changes in the fair value of MRB and purchased MRB, including the related attributed fees and claims, offset by derivatives and other securities used to hedge the MRB which result in residual net income volatility as the change in fair value of certain securities is reflected in OCI and due to our statutory capital hedge program; and (ii) market adjustments to deposit asset or liability accounts arising from reinsurance agreements which do not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk;
Investment (gains) losses, which includes credit loss impairments of securities/investments, sales or disposals of securities/investments, realized capital gains/losses and valuation allowances;
Net actuarial (gains) losses, which includes actuarial gains and losses as a result of differences between actual and expected experience on pension plan assets or projected benefit obligation during a given period related to pension, other postretirement benefit obligations, and the one-time impact of the settlement of the defined benefit obligation;
Other adjustments, which primarily include restructuring costs related to severance and separation, lease write-offs related to non-recurring restructuring activities, COVID-19 related impacts, net derivative gains (losses) on certain Non-GMxB derivatives, net investment income from certain items including consolidated VIE investments, seed capital mark-to-market adjustments, unrealized gain/losses and realized capital gains/losses from sales or disposals of select securities, certain legal accruals; a bespoke deal to repurchase UL policies from one entity that had invested in numerous policies purchased in the life settlement market, which disposed of the risk of additional COI litigation by that entity related to those UL policies, impact of the annual actuarial assumption updates attributable to LFPB when the majority of the impact relates to the non-core business; and
Income tax expense (benefit) related to the above items and non-recurring tax items, which includes the effect of uncertain tax positions for a given audit period and changes to the deferred tax valuation allowance.

In the fourth quarter of 2023, the Company updated its operating earnings measure to exclude the impact of realized amounts related to equity classified instruments. The recognition of the realized capital gains and losses from investments in current net investment income is generally considered distortive and not reflective of the ongoing core business activities of the segments. The presentation of operating earnings in prior periods was not revised to reflect this modification. The impact to operating earnings was immaterial for the year ended December 31, 2023.

In the first quarter of 2024, the Company began allocating to its business segments collateral expense resulting from a designated rate to be paid on the collateral held back to counterparties. The new segment allocation methodology for collateral expense is based on the income earned on cash equivalents held in the surplus segments and income earned in portfolios backing collateral expenses, such that the collateral expense would be allocated to the segments up to that amount. Any remaining amount is included within Corporate and Other. This expense was previously recorded in Corporate and Other with no allocation to our business segments in prior reporting periods.

The presentation of operating earnings in prior periods was not revised to reflect this modification, however, the Company estimated that allocating collateral expense to the segments for the twelve months ended December 31, 2023, respectively, would have resulted in a decrease to operating earnings of $4.0 million for Individual Retirement, $7.7 million for Group Retirement, $21.9 million for Protection Solutions, $4.2 million for Legacy, and an increase of $37.8 million for Corporate and Other. The impact to operating earnings for each segment during the quarters of 2023 was not material. Total Company operating earnings were not impacted.

During the third quarter 2024, the Company moved revenues and expenses related to payout annuitizations from the Legacy segment to the Individual Retirement segment. Now all payout annuities will be reported within the Individual Retirement segment as the block is managed on an aggregate basis. Prior periods have been recast to reflect this change.

Because Non-GAAP Operating Earnings excludes the foregoing items that can be distortive or unpredictable, management believes that this measure enhances the understanding of the Company’s underlying drivers of profitability and trends in our business, thereby allowing management to make decisions that will positively impact our business.

We use the prevailing corporate federal income tax rate of 21% while taking into account any non-recurring differences for events recognized differently in our financial statements and federal income tax returns as well as partnership income taxed at lower rates when reconciling Net income (loss) attributable to Holdings to Non-GAAP Operating Earnings.

The table below presents a reconciliation of Net income (loss) attributable to Holdings to Non-GAAP Operating Earnings for the three months and years ended December 31, 2024 and 2023:

	Three Months Ended December 31,						Year Ended December 31,
(in millions)		2024			2023			2024			2023
Net income (loss) attributable to Holdings	$	899		$	(698	)	$	1,307		$	1,302
Adjustments related to:
Variable annuity product features (1)		(530	)		1,191			606			607
Investment (gains) losses		32			159			133			713
Net actuarial (gains) losses related to pension and other postretirement benefit obligations		16			13			60			39
Other adjustments (2) (3) (4) (6)		34			153			93			351
Income tax expense (benefit) related to above adjustments		94			(319	)		(187	)		(359	)
Non-recurring tax items (5)		(23	)		(23	)		(5	)		(959	)
Non-GAAP Operating Earnings	$	522		$	476		$	2,007		$	1,694

_________________________
(1)	Includes the impact of favorable assumption updates of $16 million and $40 million for the year ended December 31, 2024 and 2023, respectively.
(2)	Includes certain gross legal expenses related to the COI litigation of $106 million and $144 million for the year ended December 31, 2024 and 2023, respectively. Includes the impact of annual actuarial assumptions updates related to LFPB of $61 million for the year ended December 31, 2023.
(3)	For the year ended December 31, 2024, includes $82 million of the gain on sale on AB’s Bernstein Research Service attributable to Holdings.
(4)	For the year ended December 31, 2024, includes $78 million contingent payment gain recognized in connection with a fair value remeasurement of the contingent payment liability associated with AB’s acquisition of CarVal in 2022.
(5)	For the year ended December 31, 2024 and 2023, respectively, non-recurring tax items reflect primarily the effect of uncertain tax positions for a given audit period. Include a decrease of the deferred tax valuation allowance of $30 million and $1.0 billion for the three months and year ended December 31, 2023, respectively.
(6)	Includes Non-GMxB related derivative hedge losses (gains) of $(29) million and $6 million for the three months and year ended December 31, 2024, respectively, and $33 million and $34 million for the three months and year ended December 31, 2023, respectively.

Non-GAAP Operating EPS

Non-GAAP Operating Earnings per common share is calculated by dividing Non-GAAP Operating Earnings less preferred stock dividends by diluted common shares outstanding. The table below presents a reconciliation of GAAP EPS to Non-GAAP Operating EPS for the three months and years ended December 31, 2024 and 2023.

	Three Months Ended December 31,						Year Ended December 31,
(per share amounts)		2024			2023			2024			2023
Net income (loss) attributable to Holdings	$	2.84		$	(2.07	)	$	4.02		$	3.70
Less: Preferred stock dividend		0.08			0.08			0.24			0.22
Net Income (loss) available to common shareholders		2.76			(2.15	)		3.78			3.48
Adjustments related to:
Variable annuity product features (1)		(1.67	)		3.53			1.87			1.73
Investment (gains) losses		0.10			0.47			0.41			2.03
Net actuarial (gains) losses related to pension and other postretirement benefit obligations		0.05			0.04			0.18			0.11
Other adjustments (2) (3) (4) (6)		0.10			0.46			0.29			0.99
Income tax expense (benefit) related to above adjustments		0.30			(0.95	)		(0.58	)		(1.02	)
Non-recurring tax items (5)		(0.07	)		(0.07	)		(0.02	)		(2.73	)
Non-GAAP Operating Earnings	$	1.57		$	1.33		$	5.93		$	4.59

______________________
(1)	Includes the impact of favorable assumption updates of $0.05 and $0.11 for the year ended December 31, 2024 and 2023, respectively.
(2)	Includes certain gross legal expenses related to the COI litigation of $0.33 and $0.41 for the year ended December 31, 2024 and 2023, respectively. Includes the impact of annual actuarial assumptions updates related to LFPB of 0.17 for the year ended December 31, 2023.
(3)	For the year ended December 31, 2024, includes $0.25 of the gain on sale on AB’s Bernstein Research Service attributable to Holdings.
(4)	For the year ended December 31, 2024 includes $0.24 contingent payment gain recognized in connection with a fair value remeasurement of the contingent payment liability associated with AB’s acquisition of CarVal in 2022.
(5)	For the year ended December 31, 2024 and 2023, respectively, non-recurring tax items reflect primarily the effect of uncertain tax positions for a given audit period. Include a decrease of the deferred tax valuation allowance of $0.09 and $2.84 per common share for the three months and year ended December 31, 2023, respectively.
(6)	Includes Non-GMxB related derivative hedge losses (gains) of $(0.09) and $0.02 for the three months and year ended December 31, 2024, respectively, and $0.10 and $0.07 for the three months and year ended December 31, 2023, respectively.

Book Value per common share, excluding AOCI

We use the term “book value” to refer to total equity attributable to Holdings’ common shareholders. Book Value per common share, excluding AOCI, is our total equity attributable to Holdings, excluding AOCI and preferred stock, divided by ending common shares outstanding.

	December 31, 2024		December 31, 2023
Book value per common share	$	0.25	$	3.26
Per share impact of AOCI		28.11		23.30
Book Value per common share, excluding AOCI	$	28.36	$	26.56

Other Operating Measures

We also use certain operating measures which management believes provide useful information about our businesses and the operational factors underlying our financial performance.

Account Value (“AV”)

Account value generally equals the aggregate policy account value of our retirement products.

Assets Under Management (“AUM”)

AUM means investment assets that are managed by one of our subsidiaries and includes: (i) assets managed by AB, (ii) the assets in our general account investment portfolio and (iii) the separate account assets of our Individual Retirement, Group Retirement and Protection Solutions businesses. Total AUM reflects exclusions between segments to avoid double counting.

Assets Under Management (“AUA”)

AUA means advisory and brokerage investment assets included in the Company’s Wealth Management segment.

Segment net flows

Net change in segment customer account balances in a period including, but not limited to, gross premiums, surrenders, withdrawals and benefits. It excludes investment performance, interest credited to customer accounts and policy charges.

Consolidated Statements of Income (Loss) (Unaudited)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
	(in millions)
REVENUES
Policy charges and fee income	$	638		$	599		$	2,495		$	2,380
Premiums		292			281			1,162			1,104
Net derivative gains (losses)		(253	)		(1,254	)		(2,551	)		(2,397	)
Net investment income (loss)		1,202			1,223			4,896			4,320
Investment gains (losses), net:
Credit losses on available-for-sale debt securities and loans		(19	)		(75	)		(82	)		(220	)
Other investment gains (losses), net		(13	)		(84	)		(51	)		(493	)
Total investment gains (losses), net		(32	)		(159	)		(133	)		(713	)
Investment management and service fees		1,458			1,241			5,263			4,820
Other income		316			239			1,305			1,014
Total revenues		3,621			2,170			12,437			10,528
BENEFITS AND OTHER DEDUCTIONS
Policyholders’ benefits		689			647			2,696			2,754
Remeasurement of liability for future policy benefits		(3	)		29			6			75
Change in market risk benefits and purchased market risk benefits		(817	)		(35	)		(1,971	)		(1,807	)
Interest credited to policyholders’ account balances		620			563			2,499			2,083
Compensation and benefits		673			586			2,441			2,328
Commissions and distribution-related payments		511			412			1,896			1,590
Interest expense		52			57			226			228
Amortization of deferred policy acquisition costs		186			169			711			641
Other operating costs and expenses		513			559			1,822			1,898
Total benefits and other deductions		2,424			2,987			10,326			9,790
Income (loss) from continuing operations, before income taxes		1,197			(817	)		2,111			738
Income tax (expense) benefit		(182	)		228			(288	)		905
Net income (loss)		1,015			(589	)		1,823			1,643
Less: Net income (loss) attributable to the noncontrolling interest		116			109			516			341
Net income (loss) attributable to Holdings		899			(698	)		1,307			1,302
Less: Preferred stock dividends		26			26			80			80
Net income (loss) available to Holdings’ common shareholders	$	873		$	(724	)	$	1,227		$	1,222

Earnings Per Common Share

	Three Months Ended December 31,					Year Ended December 31,
	2024			2023		2024		2023
	(in millions)
Earnings per common share
Basic	$	2.80	$	(2.15	)	$	3.82	$	3.49
Diluted	$	2.76	$	(2.15	)	$	3.78	$	3.48
Weighted average shares
Weighted average common stock outstanding for basic earnings per common share		312.2		337.2			321.2		350.1
Weighted average common stock outstanding for diluted earnings per common share (1)		316.5		337.2			324.8		351.6

(1)	Due to net loss, for the three months ended December 31, 2023 approximately 2.0 million share awards were excluded from the diluted EPS calculation.

Results of Operations by Segment

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
	(in millions)
Operating earnings (loss) by segment:
Individual Retirement	$	240		$	213		$	953		$	884
Group Retirement		132			98			522			399
Asset Management		161			114			479			411
Protection Solutions		32			28			186			51
Wealth Management		47			45			184			159
Legacy		38			31			131			151
Corporate and Other (1)		(128	)		(53	)		(448	)		(361	)
Non-GAAP Operating Earnings	$	522		$	476		$	2,007		$	1,694

(1)	Includes interest expense and financing fees of $51 million, $56 million, $222 million and $229 million for the three months and year ended December 31, 2024, and 2023, respectively.

Select Balance Sheet Statistics

	December 31, 2024			December 31, 2023
	(in millions)
ASSETS
Total investments and cash and cash equivalents	$	123,411		$	110,412
Separate Accounts assets		134,711			127,251
Total assets		295,866			276,814

LIABILITIES
Long-term debt	$	3,833		$	3,820
Future policy benefits and other policyholders’ liabilities		17,613			17,363
Policyholders’ account balances		110,965			95,673
Total liabilities		292,298			271,656

EQUITY
Preferred stock		1,507			1,562
Accumulated other comprehensive income (loss)		(8,712	)		(7,777	)
Total equity attributable to Holdings	$	1,585		$	2,649
Total equity attributable to Holdings’ common shareholders (ex. AOCI)		8,790			8,864

Assets Under Management (Unaudited)

	December 31, 2024			December 31, 2023
	(in billions)
Assets Under Management
AB AUM	$	792.2		$	725.2
Exclusion for General Account and other Affiliated Accounts (1)		(84.2	)		(75.5	)
Exclusion for Separate Accounts (1)		(47.3	)		(44.0	)
AB third party	$	660.7		$	605.7

Total company AUM
AB third party	$	660.7		$	605.7
General Account and other Affiliated Accounts (2) (4) (5)		123.4			110.4
Separate Accounts (3) (4) (5)		134.7			127.3
Total AUM	$	918.8		$	843.4

_________________________
(1)	Balances were revised from previously filed financial statement supplement
(2)	“General Account and other Affiliated Accounts” refers to assets held in the general accounts of our insurance companies and other assets on which we bear the investment risk.
(3)	As of December 31, 2024 and December 31, 2023, Separate Account is inclusive of $12.3 billion and $12.5 billion & General Account AUM is inclusive of $43 million and $49 million, respectively, Account Value ceded to Venerable.
(4)	As of December 31, 2024 and December 31, 2023, Separate Account is inclusive of $6.9 billion and $6.4 billion & General Account AUM is inclusive of $3.2 billion and $3.6 billion, respectively, Account Value ceded to Global Atlantic.

¹ Retirement includes Individual Retirement and Group Retirement segments.

² This press release includes certain Non-GAAP financial measures. More information on these measures and reconciliations to the most comparable U.S. GAAP measures can be found in the “Use of Non-GAAP Financial Measures” section of this release.

³ Please refer to Exhibit 1 for a detailed reconciliation and definitions related to notable items.

⁴ Cash generation is the cash flow from asset and wealth management subsidiaries, along with capital generated in excess of the target combined NAIC RBC ratio at the insurance subsidiaries; Financial guidance assumes normal market conditions including 6% equity return, 2% dividend yield and interest rates following the forward curve is net dividends and distributions to Equitable Holdings from its subsidiaries.

⁵ Please refer to Exhibit 1 for detailed reconciliation and definitions related to notable items.

⁶ Refers to AllianceBernstein L.P. and AllianceBernstein Holding L.P., collectively.

⁷ Excludes c.$190 million of cash at Holdings which is available to AllianceBernstein through its credit facility with Equitable Holdings.

⁸ Please refer to Exhibit 1 for a detailed reconciliation and definitions related to notable items.

⁹ Please refer to Exhibit 1 for a detailed reconciliation and definitions related to notable items.

¹⁰ Please refer to Exhibit 1 for a detailed reconciliation and definitions related to notable items.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250205957342/en/

Investor Relations

Erik Bass

(212) 314-2476

[email protected]

Media Relations

Laura Yagerman

(212) 314-2010

[email protected]

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Finance Banking Professional Services Asset Management Insurance

MEDIA:

Logo