Market Newsdesk

July 27, 2023 7:10 am

First American Financial Reports Second Quarter 2023 Results

First American Financial Reports Second Quarter 2023 Results

SANTA ANA, Calif.–(BUSINESS WIRE)–
First American Financial Corporation (NYSE: FAF), a premier provider of title, settlement and risk solutions for real estate transactions and the leader in the digital transformation of its industry, today announced financial results for the second quarter ended June 30, 2023.

Current Quarter Highlights

Earnings per diluted share of $1.33, or $1.35 per share on an adjusted basis
Total revenue of $1.6 billion, down 20 percent compared with last year
- Title Insurance and Services segment total revenues of $1.5 billion, down 25 percent
Title Insurance and Services segment investment income of $142 million, up 105 percent compared with last year
Title Insurance and Services segment pretax margin of 12.1 percent, or 12.6 percent on an adjusted basis
Commercial revenues of $178 million, up 20 percent sequentially, but down 39 percent compared with last year
Home Warranty segment pretax margin of 13.4 percent
Entered into a new $900 million senior credit facility
Debt-to-capital ratio of 29.2 percent, or 22.5 percent excluding secured financings payable of $586 million
Cash flow from operations of $269 million, compared with $191 million last year
Repurchased 273,000 shares for a total of $15 million at an average price of $56.04
In July, named one of the 100 Best Workplaces for Innovators for 2023 by Fast Company

Selected Financial Information

($ in millions, except per share data)


	Three Months Ended
	June 30,
	2023		2022
Total revenue	$	1,646.9	$	2,062.5
Income before taxes	$	178.1	$	141.4

Net income	$	138.5	$	108.8
Net income per diluted share	$	1.33	$	1.01

Adjusted net income	$	140.9	$	220.6
Adjusted net income per diluted share	$	1.35	$	2.04

Total revenue for the second quarter of 2023 was $1.6 billion, down 20 percent compared with the second quarter of 2022. Net income in the current quarter was $139 million, or $1.33 per diluted share, compared with net income of $109 million, or $1.01 per diluted share, in the second quarter of 2022. Adjusted net income in the current quarter was $141 million, or $1.35 per diluted share, compared with $221 million, or $2.04 per diluted share, in the second quarter of last year.

“We posted good results in the second quarter given the continuing market headwinds,” said Ken DeGiorgio, chief executive officer at First American Financial Corporation. “A seasonal uplift in our business, strong growth in net investment income and a continued focus on expense management enabled us to deliver a pretax title margin of 12.1 percent, or 12.6 percent on an adjusted basis.

“Our residential purchase business continues to be pressured by affordability issues, primarily due to high mortgage rates, along with low inventory that has kept home prices elevated. The purchase market, however, appears to have stabilized, albeit at trough levels. There is still a high degree of uncertainty concerning the commercial market outlook, however, we remain optimistic that transaction activity and revenue will improve in the second half of the year, which is consistent with normal seasonal patterns. Despite these challenging conditions, our financial discipline and strong balance sheet allow us to continue to invest in strategic initiatives for the long-term benefit of the company, as well as return capital to shareholders.

“I am proud that First American has been selected, as one of just a hundred companies, to Fast Company’s Best Workplaces for Innovators for 2023. This accomplishment is a testament to our ongoing commitment to innovation and is a tribute to our people who, in addition to delivering best-in-class customer service, enable us to lead the digital transformation of our industry.”

Title Insurance and Services

($ in millions, except average revenue per order)

	Three Months Ended
	June 30,
	2023			2022
Total revenues	$	1,530.7		$	2,053.8

Income before taxes	$	185.7		$	240.7
Pretax margin		12.1	%		11.7	%
Adjusted pretax margin		12.6	%		14.4	%

Title open orders⁽¹⁾		174,600			257,200
Title closed orders⁽¹⁾		128,300			205,000

U.S. Commercial
Total revenues	$	177.9		$	289.5
Open orders		25,700			35,600
Closed orders		15,300			22,000
Average revenue per order	$	11,600		$	13,200
⁽¹⁾ U.S. direct title insurance orders only.

Total revenues for the Title Insurance and Services segment during the second quarter were $1.5 billion, down 25 percent compared with the same quarter of 2022. Direct premiums and escrow fees declined 35 percent compared with the second quarter of 2022, driven by a 37 percent decline in the number of direct title orders closed that was partly offset by a 3 percent increase in the average revenue per order closed. The average revenue per direct title order increased to $3,640, primarily attributable to a shift in the mix to higher premium commercial transactions from lower premium refinance transactions. The shift in the mix to commercial transactions was partly offset by a 12 percent decline in the average revenue per order for commercial transactions. Agent premiums, which are recorded on approximately a one-quarter lag relative to direct premiums, declined 33 percent in the current quarter as compared with last year.

Information and other revenues were $244 million during the quarter, down $63 million, or 20 percent, compared with last year. This decline was the result of lower transaction levels across several business units, including the company’s data and property information products, and post-close and document generation services.

Investment income was $142 million in the second quarter, up $73 million, or 105 percent, compared with the same quarter last year. The increase was primarily due to rising interest rates, which drove higher interest income from the company’s cash and investment portfolio, escrow balances and tax-deferred property exchange balances. The impact of higher interest rates was partly offset by lower average balances, primarily in the company’s escrow and tax-deferred exchange balances. Net investment gains totaled $3 million in the current quarter, compared with net investment losses of $53 million in the second quarter of 2022. Net investment gains and losses in both periods were primarily due to the change in the fair value of marketable equity securities.

Personnel costs were $485 million in the second quarter, down $128 million, or 21 percent, compared with the same quarter of 2022. The decline in personnel costs was primarily due to lower incentive compensation as a result of the decline in revenue and profitability, and salary and employee benefit expense, driven by lower headcount. Overtime, temporary labor and severance expense also declined in the current quarter.

Other operating expenses were $243 million in the second quarter, a decrease of $72 million, or 23 percent, compared with the second quarter of 2022. The decrease was primarily attributable to lower production expense across several business units due to lower transaction volumes, and reduced discretionary expense.

The provision for policy losses and other claims was $40 million in the second quarter, or 3.5 percent of title premiums and escrow fees, down from the 4.0 percent loss provision rate in the prior year.

Depreciation and amortization expense was $45 million in the second quarter, up $5 million, or 11 percent, compared with the same period last year, due to higher amortization of software.

Pretax income for the Title Insurance and Services segment was $186 million in the second quarter, compared with $241 million in the second quarter of 2022. Pretax margin was 12.1 percent in the current quarter, compared with 11.7 percent last year. Adjusted pretax margin was 12.6 percent in the current period, compared with 14.4 percent last year.

Home Warranty

($ in millions)

	Three Months Ended
	June 30,
	2023			2022
Total revenues	$	106.5		$	102.4

Income before taxes	$	14.3		$	8.9
Pretax margin		13.4	%		8.7	%
Adjusted pretax margin		12.9	%		11.8	%

Total revenues for the Home Warranty segment were $106 million in the second quarter, up 4 percent, compared with the second quarter of 2022. The segment posted pretax income of $14 million this quarter, compared with $9 million last year. The claim loss rate was 49.2 percent in the second quarter, compared with 52.5 percent last year, primarily due to lower claim frequency, partly offset by higher claim severity. Home Warranty’s pretax margin was 13.4 percent this quarter, compared with 8.7 percent last year. Adjusted pretax margin was 12.9 percent this quarter, compared with 11.8 percent last year.

Corporate

Net investment income was $7 million this quarter, compared with a loss of $18 million in the second quarter of 2022, primarily attributable to changes in the value of investments associated with the company’s deferred compensation program. These amounts were largely offset by personnel expense reflecting returns on the plan participants’ investments.

Net investment gains were $3 million this quarter, compared with losses of $77 million last year, due to changes in the fair value of the company’s venture portfolio.

Overall, the Corporate segment posted a pretax loss of $22 million in the second quarter.

Teleconference/Webcast

First American’s second quarter 2023 results will be discussed in more detail on Thursday, July 27, 2023, at 11 a.m. EDT, via teleconference. The toll-free dial-in number is +1-877-407-8293. Callers from outside the United States may dial +1-201-689-8349.

The live audio webcast of the call will be available on First American’s website at www.firstam.com/investor. An audio replay of the conference call will be available through August 10, 2023, by dialing +1-201-612-7415 and using the conference ID 13739630. An audio archive of the call will also be available on First American’s investor website.

About First American

First American Financial Corporation (NYSE: FAF) is a premier provider of title, settlement and risk solutions for real estate transactions. With its combination of financial strength and stability built over more than 130 years, innovative proprietary technologies, and unmatched data assets, the company is leading the digital transformation of its industry. First American also provides data products to the title industry and other third parties; valuation products and services; mortgage subservicing; home warranty

products; banking, trust and wealth management services; and other related products and services. With total revenue of $7.6 billion in 2022, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2023, First American was named one of the 100 Best Companies to Work For by Great Place to Work^® and Fortune Magazine for the eighth consecutive year and was named one of the 100 Best Workplaces for Innovators by Fast Company. More information about the company can be found at www.firstam.com.

Website Disclosure

First American posts information of interest to investors at www.firstam.com/investor. This includes opened and closed title insurance order counts for its U.S. direct title insurance operations, which are posted approximately 10 to 12 days after the end of each month.

Forward-Looking Statements

Certain statements made in this press release and the related management commentary contain, and responses to investor questions may 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. These forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and may contain the words “believe,” “anticipate,” “expect,” “intend,” “plan,” “predict,” “estimate,” “project,” “will be,” “will continue,” “will likely result,” or other similar words and phrases or future or conditional verbs such as “will,” “may,” “might,” “should,” “would,” or “could.” These forward-looking statements include, without limitation, statements regarding future operations, performance, financial condition, prospects, plans and strategies. These forward-looking statements are based on current expectations and assumptions that may prove to be incorrect. Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include, without limitation: interest rate fluctuations; changes in conditions of the real estate markets; volatility in the capital markets; unfavorable economic conditions; impairments in the company’s goodwill or other intangible assets; failures at financial institutions where the company deposits funds; regulatory oversight and changes in applicable laws and government regulations, including privacy and data protection laws; heightened scrutiny by legislators and regulators of the company’s title insurance and services segment and certain other of the company’s businesses; regulation of title insurance rates; limitations on access to public records and other data; climate change, health crises, terrorist attacks, severe weather conditions and other catastrophe events; changes in relationships with large mortgage lenders and government-sponsored enterprises; changes in measures of the strength of the company’s title insurance underwriters, including ratings and statutory capital and surplus; losses in the company’s investment portfolio or venture investment portfolio; material variance between actual and expected claims experience; defalcations, increased claims or other costs and expenses attributable to the company’s use of title agents; any inadequacy in the company’s risk management framework or use of models; systems damage, failures, interruptions, cyberattacks and intrusions, or unauthorized data disclosures; innovation efforts of the company and other industry participants and any related market disruption; errors and fraud involving the transfer of funds; failures to recruit and retain qualified employees; the company’s use of a global workforce; inability of the company’s subsidiaries to pay dividends or repay funds; inability to realize anticipated synergies or produce returns that justify investment in acquired businesses; changes in the composition of deposits at the company’s federal savings bank subsidiary; claims of infringement or inability to adequately protect the company’s intellectual property; and other factors described in the company’s annual report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission. The forward-looking statements speak only as of the date they are made. The company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Use of Non-GAAP Financial Measures

This news release and related management commentary contain certain financial measures that are not presented in accordance with generally accepted accounting principles (GAAP), including an adjusted debt to capitalization ratio, personnel and other operating expense ratios, success ratios, net operating revenues; and adjusted revenues, adjusted pretax income, adjusted pretax margins, adjusted net income, and adjusted earnings per share, for the company, its title insurance and services segment and its home warranty segment. The company is presenting these non-GAAP financial measures because they provide the company’s management and investors with additional insight into the financial leverage, operational efficiency and performance of the company relative to earlier periods and relative to the company’s competitors. The company does not intend for these non-GAAP financial measures to be a substitute for any GAAP financial information. In this news release, these non-GAAP financial measures have been presented with, and reconciled to, the most directly comparable GAAP financial measures. Investors should use these non-GAAP financial measures only in conjunction with the comparable GAAP financial measures.

First American Financial Corporation
Summary of Consolidated Financial Results and Selected Information
(in millions, except per share amounts and title orders, unaudited)


	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2023			2022		2023			2022
Total revenues	$	1,646.9		$	2,062.5	$	3,093.0		$	4,096.2

Income before income taxes	$	178.1		$	141.4	$	237.7		$	271.2
Income tax expense		41.7			31.2		55.3			62.9
Net income		136.4			110.2		182.4			208.3
Less: Net (loss) income attributable to noncontrolling interests		(2.1	)		1.4		(2.0	)		1.6
Net income attributable to the Company	$	138.5		$	108.8	$	184.4		$	206.7

Net income per share attributable to stockholders:
Basic	$	1.33		$	1.01	$	1.77		$	1.89
Diluted	$	1.33		$	1.01	$	1.76		$	1.89

Cash dividends declared per share	$	0.52		$	0.51	$	1.04		$	1.02

Weighted average common shares outstanding:
Basic		104.3			107.9		104.4			109.1
Diluted		104.5			108.1		104.6			109.4

Selected Title Insurance Segment Information
Title orders opened⁽¹⁾		174,600			257,200		347,200			536,200
Title orders closed⁽¹⁾		128,300			205,000		234,900			410,100
Paid title claims	$	34.9		$	59.0	$	77.6		$	98.0

(1) U.S. direct title insurance orders only.

First American Financial Corporation
Selected Consolidated Balance Sheet Information
(in millions, unaudited)


	June 30,		December 31,
	2023		2022
Cash and cash equivalents	$	2,245.9	$	1,223.5
Investments		8,377.5		8,987.2
Goodwill and other intangible assets, net		1,976.7		1,992.0
Total assets		15,730.9		14,955.3
Reserve for claim losses		1,322.2		1,325.3
Notes and contracts payable		1,393.3		1,645.8
Total stockholders’ equity	$	4,772.4	$	4,664.8

First American Financial Corporation
Segment Information
(in millions, unaudited)

Three Months Ended				Title			Home			Corporate
June 30, 2023	Consolidated			Insurance			Warranty			(incl. Elims.)
Revenues
Direct premiums and escrow fees	$	615.3		$	516.8		$	98.5		$	0.0
Agent premiums		624.7			624.7			—			—
Information and other		250.3			244.4			5.9			(0.0	)
Net investment income		150.3			141.9			1.4			7.0
Net investment gains		6.3			2.9			0.7			2.7
		1,646.9			1,530.7			106.5			9.7
Expenses
Personnel costs		514.5			485.0			20.5			9.0
Premiums retained by agents		496.4			496.4			—			—
Other operating expenses		272.5			243.1			20.9			8.5
Provision for policy losses and other claims		89.5			39.9			48.5			1.1
Depreciation and amortization		46.1			44.8			1.1			0.2
Premium taxes		15.5			14.3			1.2			(0.0	)
Interest		34.3			21.5			—			12.8
		1,468.8			1,345.0			92.2			31.6
Income (loss) before income taxes	$	178.1		$	185.7		$	14.3		$	(21.9	)

Three Months Ended				Title			Home			Corporate
June 30, 2022	Consolidated			Insurance			Warranty			(incl. Elims.)
Revenues
Direct premiums and escrow fees	$	896.5		$	792.8		$	102.1		$	1.6
Agent premiums		937.2			937.2			—			—
Information and other		310.1			307.2			2.7			0.2
Net investment income		52.4			69.3			1.2			(18.1	)
Net investment (losses)		(133.7	)		(52.7	)		(3.6	)		(77.4	)
		2,062.5			2,053.8			102.4			(93.7	)
Expenses
Personnel costs		618.3			613.2			19.1			(14.0	)
Premiums retained by agents		748.2			748.2			—			—
Other operating expenses		343.3			315.1			18.6			9.6
Provision for policy losses and other claims		126.5			69.2			53.6			3.7
Depreciation and amortization		41.6			40.3			1.1			0.2
Premium taxes		23.5			22.3			1.1			0.1
Interest		19.7			4.8			—			14.9
		1,921.1			1,813.1			93.5			14.5
Income (loss) before income taxes	$	141.4		$	240.7		$	8.9		$	(108.2	)

First American Financial Corporation
Segment Information
(in millions, unaudited)

Six Months Ended				Title			Home			Corporate
June 30, 2023	Consolidated			Insurance			Warranty			(incl. Elims.)
Revenues
Direct premiums and escrow fees	$	1,117.5		$	922.4		$	195.1		$	0.0
Agent premiums		1,215.1			1,215.1			—			—
Information and other		477.2			465.9			11.4			(0.1	)
Net investment income		284.3			266.5			2.8			15.0
Net investment (losses) gains		(1.1	)		9.4			0.9			(11.4	)
		3,093.0			2,879.3			210.2			3.5
Expenses
Personnel costs		1,002.1			943.8			39.7			18.6
Premiums retained by agents		965.4			965.4			—			—
Other operating expenses		531.0			467.2			41.5			22.3
Provision for policy losses and other claims		171.8			74.8			94.2			2.8
Depreciation and amortization		91.6			89.0			2.4			0.2
Premium taxes		30.0			27.8			2.2			(0.0	)
Interest		63.4			37.4			—			26.0
		2,855.3			2,605.4			180.0			69.9
Income (loss) before income taxes	$	237.7		$	273.9		$	30.2		$	(66.4	)

Six Months Ended				Title			Home			Corporate
June 30, 2022	Consolidated			Insurance			Warranty			(incl. Elims.)
Revenues
Direct premiums and escrow fees	$	1,670.7		$	1,458.7		$	203.2		$	8.8
Agent premiums		1,885.0			1,885.0			—			—
Information and other		618.2			608.4			5.5			4.3
Net investment income		98.6			122.0			2.2			(25.6	)
Net investment losses		(176.3	)		(23.0	)		(5.1	)		(148.2	)
		4,096.2			4,051.1			205.8			(160.7	)
Expenses
Personnel costs		1,220.0			1,196.3			39.3			(15.6	)
Premiums retained by agents		1,506.0			1,506.0			—			—
Other operating expenses		680.7			620.4			36.6			23.7
Provision for policy losses and other claims		248.9			133.7			100.5			14.7
Depreciation and amortization		82.6			80.0			2.4			0.2
Premium taxes		47.4			45.2			2.2			(0.0	)
Interest		39.4			9.3			—			30.1
		3,825.0			3,590.9			181.0			53.1
Income (loss) before income taxes	$	271.2		$	460.2		$	24.8		$	(213.8	)

First American Financial Corporation
Reconciliation of Non-GAAP Financial Measures
(in millions, except margin and per share amounts, unaudited)
Consolidated

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022

Total revenues	$	1,646.9		$	2,062.5		$	3,093.0		$	4,096.2
Non-GAAP adjustments:
Less: Net investment gains (losses)		6.3			(133.7	)		(1.1	)		(176.3	)
Adjusted total revenues	$	1,640.6		$	2,196.2		$	3,094.1		$	4,272.5

Pretax income	$	178.1		$	141.4		$	237.7		$	271.2
Non-GAAP adjustments:
Less: Net investment gains (losses)		6.3			(133.7	)		(1.1	)		(176.3	)
Plus: Purchase-related intangible amortization		9.4			9.8			19.3			21.0
Adjusted pretax income	$	181.2		$	284.9		$	258.1		$	468.5

Pretax margin		10.8	%		6.9	%		7.7	%		6.6	%
Non-GAAP adjustments:
Less: Net investment gains (losses)		0.3	%		(5.6	)%		(0.0	)%		(3.9	)%
Plus: Purchase-related intangible amortization		0.5	%		0.5	%		0.6	%		0.5	%
Adjusted pretax margin		11.0	%		13.0	%		8.3	%		11.0	%

Net income	$	138.5		$	108.8		$	184.4		$	206.7
Non-GAAP adjustments, net of tax:
Less: Net investment gains (losses)		4.8			(104.2	)		(0.8	)		(135.4	)
Plus: Purchase-related intangible amortization		7.2			7.6			14.8			16.1
Adjusted net income	$	140.9		$	220.6		$	200.0		$	358.2

Earnings per diluted share (EPS)	$	1.33		$	1.01		$	1.76		$	1.89
Non-GAAP adjustments, net of tax:
Less: Net investment gains (losses)		0.05			(0.96	)		(0.01	)		(1.24	)
Plus: Purchase-related intangible amortization		0.07			0.07			0.14			0.15
Adjusted EPS	$	1.35		$	2.04		$	1.91		$	3.28

Purchase-related intangible amortization includes amortization of noncompete agreements, customer relationships, and trademarks acquired in business combinations.

Totals may not sum due to rounding.

First American Financial Corporation
Reconciliation of Non-GAAP Financial Measures
(in millions except margin, unaudited)
By Segment

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Title Insurance and Services Segment
Total revenues	$	1,530.7		$	2,053.8		$	2,879.3		$	4,051.1
Non-GAAP adjustments:
Less: Net investment gains (losses)		2.9			(52.7	)		9.4			(23.0	)
Adjusted total revenues	$	1,527.8		$	2,106.5		$	2,869.9		$	4,074.1

Pretax income	$	185.7		$	240.7		$	273.9		$	460.2
Non-GAAP adjustments:
Less: Net investment gains (losses)		2.9			(52.7	)		9.4			(23.0	)
Plus: Purchase-related intangible amortization		9.3			9.7			19.2			20.9
Adjusted pretax income	$	192.1		$	303.1		$	283.7		$	504.1

Pretax margin		12.1	%		11.7	%		9.5	%		11.4	%
Non-GAAP adjustments:
Less: Net investment gains (losses)		0.1	%		(2.2	)%		0.3	%		(0.5	)%
Plus: Purchase-related intangible amortization		0.6	%		0.5	%		0.7	%		0.5	%
Adjusted pretax margin		12.6	%		14.4	%		9.9	%		12.4	%

Home Warranty Segment
Total revenues	$	106.5		$	102.4		$	210.2		$	205.8
Non-GAAP adjustments:
Less: Net investment gains (losses)		0.7			(3.6	)		0.9			(5.1	)
Adjusted total revenues	$	105.8		$	106.0		$	209.3		$	210.9

Pretax income	$	14.3		$	8.9		$	30.2		$	24.8
Non-GAAP adjustments:
Less: Net investment gains (losses)		0.7			(3.6	)		0.9			(5.1	)
Adjusted pretax income	$	13.6		$	12.5		$	29.3		$	29.9

Pretax margin		13.4	%		8.7	%		14.4	%		12.1	%
Non-GAAP adjustments:
Less: Net investment gains (losses)		0.5	%		(3.1	)%		0.4	%		(2.1	)%
Adjusted pretax margin		12.9	%		11.8	%		14.0	%		14.2	%

Purchase-related intangible amortization includes amortization of noncompete agreements, customer relationships, and trademarks acquired in business combinations.

Totals may not sum due to rounding.

First American Financial Corporation
Expense and Success Ratio Reconciliation
Title Insurance and Services Segment
($ in millions, unaudited)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Total revenues	$	1,530.7		$	2,053.8		$	2,879.3		$	4,051.1
Less: Net investment gains (losses)		2.9			(52.7	)		9.4			(23.0	)
Net investment income		141.9			69.3			266.5			122.0
Premiums retained by agents		496.4			748.2			965.4			1,506.0
Net operating revenues	$	889.5		$	1,289.0		$	1,638.0		$	2,446.1


Personnel and other operating expenses	$	728.1		$	928.3		$	1,411.0		$	1,816.7
Ratio (% net operating revenues)		81.9	%		72.0	%		86.1	%		74.3	%
Ratio (% total revenues)		47.6	%		45.2	%		49.0	%		44.8	%


Change in net operating revenues	$	(399.5	)				$	(808.1	)
Change in personnel and other operating expenses		(200.2	)					(405.7	)
Success Ratio⁽¹⁾		50	%					50	%

(1) Change in personnel and other operating expenses divided by change in net operating revenues.

First American Financial Corporation
Supplemental Direct Title Insurance Order Information⁽¹⁾
(unaudited)


	Q223			Q123			Q422			Q322			Q222
Open Orders per Day
Purchase		1,584			1,459			1,168			1,685			2,094
Refinance		355			349			363			517			663
Refinance as % of residential orders		18	%		19	%		24	%		23	%		24	%
Commercial		402			412			391			482			557
Default and other		387			564			546			538			705
Total open orders per day		2,728			2,784			2,469			3,222			4,019

Closed Orders per Day
Purchase		1,171			936			1,081			1,371			1,667
Refinance		279			248			337			463			648
Refinance as % of residential orders		19	%		21	%		24	%		25	%		28	%
Commercial		239			241			293			322			343
Default and other		315			294			310			351			546
Total closed orders per day		2,005			1,719			2,021			2,508			3,203

Average Revenue per Order (ARPO)⁽²⁾
Purchase	$	3,472		$	3,302		$	3,292		$	3,365		$	3,441
Refinance		1,258			1,283			1,245			1,228			1,321
Commercial		11,614			9,926			13,780			12,614			13,195
Default and other		314			315			332			329			309

Total ARPO	$	3,640		$	3,428		$	4,020		$	3,734		$	3,523

Business Days		64			62			62			64			64

(1) U.S. operations only.

(2) Average revenue per order (ARPO) defined as direct premiums and escrow fees divided by closed title orders.

Totals may not sum due to rounding.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230727575545/en/

Media Contact:

Marcus Ginnaty

Corporate Communications

First American Financial Corporation

714-250-3298

Investor Contact:

Craig Barberio

Investor Relations

First American Financial Corporation

714-250-5214

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Construction & Property Finance Public Relations/Investor Relations Banking Communications Professional Services Other Construction & Property Residential Building & Real Estate

MEDIA:

Logo

July 27, 2023 7:08 am

TechnipFMC Announces Second Quarter 2023 Results

TechnipFMC Announces Second Quarter 2023 Results

Subsea orders of $4.1 billion; record inbound for both iEPCI™ and Subsea 2.0™
Outlook for Subsea orders revised higher; full-year expected to reach $9 billion
Total Company backlog increased 25% sequentially to $13.3 billion
Cash flow from operations of $156 million; free cash flow of $103 million
Initiated quarterly dividend; repurchase authorization increased to $800 million
Commitment to distribute more than 60% of annual free cash flow through at least 2025

NEWCASTLE & HOUSTON–(BUSINESS WIRE)–
TechnipFMC plc (NYSE: FTI) (the “Company” or “TechnipFMC”) today reported second quarter 2023 results.

Summary Financial Results from Continuing Operations Reconciliation of U.S. GAAP to non-GAAP financial measures are provided in financial schedules.

	Three Months Ended			Change
(In millions, except per share amounts)	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Sequential	Year-over- Year
Revenue	$1,972.2	$1,717.4	$1,717.2	14.8%	14.8%
Income (loss)	$(87.2)	$0.4	$2.1	n/m	n/m
Income (loss) margin	(4.4%)	0.0%	0.1%	n/m	n/m
Diluted earnings (loss) per share	$(0.20)	$0.00	$0.00	n/m	n/m

Adjusted EBITDA	$205.9	$157.5	$186.5	30.7%	10.4%
Adjusted EBITDA margin	10.4%	9.2%	10.9%	120 bps	(50 bps)
Adjusted income	$44.0	$1.0	$8.4	n/m	423.8%
Adjusted diluted earnings per share	$0.10	$0.00	$0.02	n/m	400.0%

Inbound orders	$4,447.3	$2,858.9	$2,201.7	55.6%	102.0%
Backlog	$13,278.6	$10,607.4	$9,039.4	25.2%	46.9%
n/m – not meaningful

Total Company revenue in the second quarter was $1,972.2 million. Loss from continuing operations attributable to TechnipFMC was $87.2 million. These results included after-tax charges and credits totaling $131.2 million of expense, or $0.30 per share, which included the following (Exhibit 6):

An incremental non-recurring legal settlement charge related to the previously disclosed final resolution of all outstanding matters with the French national prosecutor’s office of $126.5 million; and
Restructuring and other charges of $4.7 million.

Adjusted income from continuing operations was $44 million, or $0.10 per diluted share (Exhibit 6).

Adjusted EBITDA, which excludes pre-tax charges and credits, was $205.9 million; adjusted EBITDA margin was 10.4 percent (Exhibit 8).

Included in total Company results was a foreign exchange loss of $48.3 million, or $45.2 million after-tax. When excluding the after-tax impact of foreign exchange of $45.2 million, loss from continuing operations was $42 million. Adjusted EBITDA, excluding foreign exchange, was $254.2 million (Exhibit 8).

Shareholder Distribution Update

On July 26, 2023, the Company announced that its Board of Directors (the “Board”) authorized and declared a quarterly cash dividend of $0.05 per share. The Company intends to pay dividends on a quarterly basis, and this dividend represents $0.20 per share on an annualized basis.

The Board also authorized additional share repurchase of up to $400 million. Together with the existing program, the Company’s total share repurchase authorization was increased to $800 million, of which $200 million has been completed to date. The remaining authorization to repurchase up to $600 million represents more than seven percent of the Company’s outstanding shares at yesterday’s closing price.

Doug Pferdehirt, Chair and CEO of TechnipFMC, stated, “Our second quarter results reflect both strong operational performance and continued delivery on our financial commitments. Total Company revenue for the quarter was $2 billion, with adjusted EBITDA of $254 million when excluding foreign exchange. Both Subsea and Surface Technologies delivered sequential improvement in adjusted EBITDA margin, including a 420 basis point increase in Subsea to 14.4%, the highest quarterly margin since 2018.”

Pferdehirt continued, “Subsea inbound orders of $4.1 billion were exceptionally strong in the period, driving sequential growth of 29% in segment backlog to $12.1 billion. Subsea orders included six integrated projects, including the direct award of our largest iEPCI™ to date, a contract from Equinor for the BM-C-33 development in Brazil. Year-to-date, iEPCI™ has accounted for more than 50% of our order intake. We continue to expect iEPCI™ to achieve its highest ever inbound in 2023, enabled by a record level of iFEED™ activity that often converts to direct award.”

“We continue to drive further adoption of our Subsea 2.0™ platform, with more clients recognizing the benefits of our configure-to-order product portfolio. In the quarter, we signed a 20-year frame agreement with Chevron, and we were awarded projects by Equinor and ExxonMobil that will utilize this unique technology.”

Pferdehirt added, “Subsea inbound for the first half of the year totaled $6.7 billion, giving us confidence to raise our full year outlook. We now expect orders to reach $9 billion in 2023. We anticipate 70% of these orders will come from a combination of iEPCI™, Subsea Services and all other direct awards, highlighting the quality of our inbound.”

“The market backdrop remains very strong. The FEED pipeline continues to expand, with more projects in advanced stages moving towards final investment decision. Our Subsea Opportunities List, which highlights projects available over the next 24 months, remains robust. Longer-term visibility is also improving, with clients securing capacity for projects that extend to 2030. These are among the many tangible signs that support our view that this will be an extended market cycle.”

Pferdehirt continued, “Demonstrating our continued commitment to maximize shareholder value, we have initiated a quarterly dividend and doubled the size of our existing share repurchase authorization to $800 million. These actions build upon the $200 million of shares we repurchased over the last 12 months.”

“We also announced a new commitment to return more than 60% of our annual free cash flow to shareholders through at least 2025. This is supported by our confidence in achieving sustainable improvement in our financial performance and the strength of our long-term outlook. We intend to distribute a material portion of the improved returns to shareholders, and at the same time further strengthen our balance sheet.”

Pferdehirt concluded, “We have strategically placed ourselves in a very differentiated position. More than 90 percent of our total Company orders and revenue are generated outside the North America land market. We are fundamentally changing the way we operate our business to ensure that we create greater value for all stakeholders. This is clearly being recognized by the market, with the quarter representing the highest level of inbound activity for both iEPCI™ and Subsea 2.0™ in our Company’s history. We look forward to sharing future milestones with you as we continue our more ambitious journey ahead.”

Operational and Financial Highlights

Subsea

Financial Highlights Reconciliation of U.S. GAAP to non-GAAP financial measures are provided in financial schedules.

	Three Months Ended			Change
(In millions)	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Sequential	Year-over- Year
Revenue	$1,618.4	$1,387.6	$1,414.6	16.6%	14.4%
Operating profit	$153.4	$66.8	$97.1	129.6%	58.0%
Operating profit margin	9.5%	4.8%	6.9%	470 bps	260 bps
Adjusted EBITDA	$233.8	$141.9	$176.0	64.8%	32.8%
Adjusted EBITDA margin	14.4%	10.2%	12.4%	420 bps	200 bps

Inbound orders	$4,114.5	$2,536.5	$1,928.0	62.2%	113.4%
Backlog^1,2,3	$12,088.5	$9,395.3	$7,926.3	28.7%	52.5%

Estimated Consolidated Backlog Scheduling (In millions)	Jun. 30, 2023
2023 (6 months)	$2,353
2024	$4,272
2025 and beyond	$5,464
Total	$12,089
¹ Backlog as of June 30, 2023 was increased by a foreign exchange impact of $189 million.
²Backlog does not capture all revenue potential for Subsea Services.
³Backlog as of June 30, 2023 does not include total Company non-consolidated backlog of $350 million.

Subsea reported second quarter revenue of $1,618.4 million, an increase of 16.6 percent from the first quarter. The sequential revenue improvement was largely driven by increased project activity in South America, the North Sea, and the Gulf of Mexico. Services revenue also increased due to seasonal improvement, including higher installation and intervention activity.

Subsea reported an operating profit of $153.4 million, an increase of 129.6 percent from the first quarter. Sequential operating results increased primarily due to higher revenue, improved margins in backlog, and increased installation and services activity.

Subsea reported adjusted EBITDA of $233.8 million. Adjusted EBITDA increased by 64.8 percent when compared to the first quarter, benefiting from the same factors that drove operating profit. Adjusted EBITDA margin increased 420 basis points to 14.4 percent.

Subsea inbound orders were $4.1 billion for the quarter. Book-to-bill was 2.5x. The following awards were announced and included in the period:

ExxonMobil Uaru Project (Guyana)

Large* contract by ExxonMobil Corporation affiliate, Esso Exploration and Production Guyana Limited, to supply the subsea production system for the Uaru project. TechnipFMC will provide project management, engineering, and manufacturing to deliver the overall subsea production system. The award covers 44 subsea trees and associated tooling, as well as 12 manifolds and associated controls and tie-in equipment. This is ExxonMobil Guyana’s first project utilizing the Subsea 2.0™ system, which leverages the Company’s configure-to-order model to deliver on an accelerated schedule.

*A “large” contract is between $500 million and $1 billion.

Equinor BM-C-33 iEPCI™ Project (Brazil)

Major* integrated Engineering, Procurement, Construction, and Installation (iEPCI™) project by Equinor Energy do Brasil Ltda., a subsidiary of Equinor ASA (Equinor). The award follows the conclusion of an integrated Front End Engineering and Design (iFEED™) study of the BM-C-33 field offshore Brazil. The field is in water depths up to approximately 2,900 meters. The contract covers the entire subsea system, including Subsea 2.0™ tree systems, manifolds, jumpers, risers and flowlines, umbilicals, pipeline end terminations, subsea distribution and topside control equipment, and installation. TechnipFMC will also be responsible for life-of-field services.

*A “major” contract is more than $1 billion.

Equinor Riserless Light Well Intervention Contract (Norway)

Significant* contract by Equinor to provide riserless light well intervention (RLWI) services on the Norwegian Continental Shelf. The two-year contract runs from 2024 to 2025, with options to extend for each of the three subsequent years. TechnipFMC will provide production enhancement, production data, and pre-plug-and-abandonment services to Equinor using the RLWI method. RLWI enables well interventions from a monohull vessel, eliminating the need for a riser and the rig required to connect the riser to the subsea well. Instead, remotely operated Well Control Systems are used to facilitate operations on the seabed. This reduces cost and complexity, increases efficiency, and accelerates the timeframe for increased production.

*A “significant” contract is between $75 million and $250 million.

Shell Dover iEPCI™ Development (Gulf of Mexico)

Significant* integrated Engineering, Procurement, Construction, and Installation (iEPCI™) contract by Shell plc for its Dover development in the Gulf of Mexico. TechnipFMC will supply the subsea tree systems in addition to the engineering, procurement, construction and installation of the umbilical, riser, and flowline systems. The Dover development will tie back to the Appomattox platform, where TechnipFMC previously supplied and installed the subsea production systems.

*A “significant” contract is between $75 million and $250 million.

Woodside Julimar Phase 3 Development (Australia)

Significant* contract by Woodside Energy** to engineer, procure, construct, and install flexible pipes and umbilicals for the Julimar Phase 3 development, offshore Western Australia. The Company will tie back four subsea gas wells in the Carnarvon Basin to the existing Julimar subsea infrastructure producing to the Wheatstone platform, using high pressure, high temperature (HPHT) flexible pipe and steel tube umbilicals.

*A “significant” contract is between $75 million and $250 million.

**Woodside Energy Julimar Pty Ltd (Woodside Energy) is operator on behalf of the Julimar joint venture participants. The participants are Woodside Energy (65%) and KUFPEC Australia (Julimar) Pty Ltd (35%).

Azule Energy Block 18 Infills Development (Angola)

Significant* contract by Azule Energy to supply subsea production systems for the Block 18 Infills development, offshore Angola. It is TechnipFMC’s first subsea production systems contract with Azule Energy, and follows the announcement of a flexible pipe supply contract for Azule’s Agogo Integrated West Hub Development. The existing field layout will be reconfigured to accommodate new equipment that will continue to support Azule’s production increase plan. TechnipFMC will design and manufacture subsea trees, a manifold, subsea distribution equipment, and topside controls, as well as jumpers, flowlines and umbilicals.

*A “significant” contract is between $75 million and $250 million.

OMV Berling Gas iEPCI™ Development (Norway)

Significant* integrated Engineering, Procurement, Construction, and Installation (iEPCI™) contract by OMV (Norge) AS for its Berling gas development project. It will be OMV’s first iEPCI™ project in Norway as operator. TechnipFMC will design and install the subsea production systems, controls, pipelines, and umbilicals for the development on the Norwegian Continental Shelf. The award follows a six-month integrated Front End Engineering and Design (iFEED™) study, which optimized the field layout and improved the project’s economics by confirming the suitability of thermally insulated pipe-in-pipe technology for the flowline used in this tieback.

*A “significant” contract is between $75 million and $250 million.

Additionally, we secured the following frame agreement in the period:

Chevron 20-Year Subsea 2.0™ Frame Agreement (Australia)

TechnipFMC signed a 20-year framework agreement with Chevron Australia Pty Ltd, under which TechnipFMC may provide Subsea 2.0™ configure-to-order subsea production systems for gas field developments off Australia’s northwest coast. The agreement covers the supply of wellheads, tree systems, manifolds, controls, flexible jumpers, and flying leads. Deliveries under this framework agreement will utilize TechnipFMC’s worldwide expertise and knowledge base, with the production systems manufactured at the Company’s dedicated Subsea 2.0™ facility in Nusajaya, Malaysia.

Surface Technologies

Financial Highlights Reconciliation of U.S. GAAP to non-GAAP financial measures are provided in financial schedules.

	Three Months Ended			Change
(In millions)	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Sequential	Year-over- Year
Revenue	$353.8	$329.8	$302.6	7.3%	16.9%
Operating profit	$25.7	$22.4	$10.0	14.7%	157.0%
Operating profit margin	7.3%	6.8%	3.3%	50 bps	400 bps
Adjusted EBITDA	$46.9	$40.3	$32.4	16.4%	44.8%
Adjusted EBITDA margin	13.3%	12.2%	10.7%	110 bps	260 bps

Inbound orders	$332.8	$322.4	$273.7	3.2%	21.6%
Backlog	$1,190.1	$1,212.1	$1,113.1	(1.8%)	6.9%

Surface Technologies reported second quarter revenue of $353.8 million, an increase of 7.3 percent from the first quarter. The sequential revenue improvement was driven primarily by higher activity in the Middle East and North America.

Surface Technologies reported operating profit of $25.7 million, an increase of 14.7 percent versus the first quarter. Sequential operating results increased primarily due to higher revenue and improved operational performance. Results in the period were negatively impacted by $3.9 million of higher restructuring and other charges.

Surface Technologies reported adjusted EBITDA of $46.9 million. Adjusted EBITDA increased by 16.4 percent when compared to the first quarter. Results increased largely due to higher revenue and improved operational performance. Adjusted EBITDA margin increased 110 basis points to 13.3 percent.

Inbound orders for the quarter were $332.8 million, a sequential increase of 3.2 percent. Backlog ended the period at $1,190.1 million.

Corporate and Other Items (three months ended, June 30, 2023)

Corporate expense was $153.5 million. Excluding a non-recurring legal settlement charge totaling $126.5 million, corporate expense was $27 million.

The non-recurring legal settlement charge in the period was related to the resolution of all outstanding matters with the French national prosecutor’s office. As previously disclosed, TechnipFMC is responsible for $195 million (€179.5 million) of the legal settlement. The charge represented an increase to the existing provision to reflect the value of the total liability.

Foreign exchange loss was $48.3 million, primarily due to the significant depreciation of the Angolan Kwanza in the period.

Net interest expense was $30.3 million.

The provision for income taxes was $43.3 million.

Total depreciation and amortization was $97 million.

Cash provided by operating activities from continuing operations was $156.2 million. Capital expenditures were $52.8 million. Free cash flow from continuing operations was $103.4 million (Exhibit 11).

The Company ended the period with cash and cash equivalents of $585.2 million; net debt was $844 million (Exhibit 10).

During the quarter, the Company repurchased 3.6 million of its ordinary shares for total consideration of $50 million. For the six months ended June 30, 2023, the Company repurchased 6.9 million shares for total consideration of $100 million.

2023 Full-Year Financial Guidance¹

The Company’s full-year guidance for 2023 can be found in the table below. No updates were made to the previous guidance that was issued on February 23, 2023.

2023 Guidance (As of February 23, 2023)

Subsea			Surface Technologies
Revenue in a range of $5.9 – 6.3 billion			Revenue in a range of $1.3 – 1.45 billion

Adjusted EBITDA margin in a range of 12.5 – 13.5%			Adjusted EBITDA margin in a range of 12 – 14%

TechnipFMC
Corporate expense, net $100 – 110 million
(includes depreciation and amortization of ~$5 million; excludes charges and credits)

Net interest expense $100 – 110 million

Tax provision, as reported $155 – 165 million

Capital expenditures approximately $250 million

Free cash flow² $225 – 375 million

_______________________________

¹Our guidance measures of adjusted EBITDA, adjusted EBITDA margin, free cash flow, and adjusted corporate expense, net are non-GAAP financial measures. We are unable to provide a reconciliation to comparable GAAP financial measures on a forward-looking basis without unreasonable effort because of the unpredictability of the individual components of the most directly comparable GAAP financial measure and the variability of items excluded from each such measure. Such information may have a significant, and potentially unpredictable, impact on our future financial results.

²Free cash flow is calculated as cash flow from operations less capital expenditures.

Teleconference

The Company will host a teleconference on Thursday, July 27, 2023 to discuss the second quarter 2023 financial results. The call will begin at 1:30 p.m. London time (8:30 a.m. New York time). Webcast access and an accompanying presentation can be found at www.TechnipFMC.com.

An archived audio replay will be available after the event at the same website address. In the event of a disruption of service or technical difficulty during the call, information will be posted on our website.

About TechnipFMC

TechnipFMC is a leading technology provider to the traditional and new energy industries; delivering fully integrated projects, products, and services.

With our proprietary technologies and comprehensive solutions, we are transforming our clients’ project economics, helping them unlock new possibilities to develop energy resources while reducing carbon intensity and supporting their energy transition ambitions.

Organized in two business segments — Subsea and Surface Technologies — we will continue to advance the industry with our pioneering integrated ecosystems (such as iEPCI™, iFEED™ and iComplete™), technology leadership and digital innovation.

Each of our approximately 20,000 employees is driven by a commitment to our clients’ success, and a culture of strong execution, purposeful innovation, and challenging industry conventions.

TechnipFMC uses its website as a channel of distribution of material company information. To learn more about how we are driving change in the industry, go to www.TechnipFMC.com and follow us on Twitter @TechnipFMC.

This communication contains “forward-looking statements” as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements usually relate to future events, market growth and recovery, growth of our new energies business and anticipated revenues, earnings, cash flows, our expectation on shareholder distributions through cash dividend and stock repurchases, or other aspects of our operations or operating results. Forward-looking statements are often identified by words such as “commit,” “guidance,” “confident,” “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” “may,” “will,” “likely,” “predicated,” “estimate,” “outlook” and similar expressions, including the negative thereof. The absence of these words, however, does not mean that the statements are not forward-looking. These forward-looking statements are based on our current expectations, beliefs, and assumptions concerning future developments and business conditions and their potential effect on us. While management believes these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All of our forward-looking statements involve risks and uncertainties (some of which are significant or beyond our control) and assumptions that could cause future results to differ materially from our historical experience and our present expectations or projections, including unpredictable trends in the demand for and price of crude oil and natural gas; competition and unanticipated changes relating to competitive factors in our industry, including ongoing industry consolidation; the COVID-19 pandemic and any resurgence thereof; our inability to develop, implement and protect new technologies and services and intellectual property related thereto, including new technologies and services for our New Energy business; the cumulative loss of major contracts, customers or alliances and unfavorable credit and commercial terms of certain contracts; disruptions in the political, regulatory, economic and social conditions of the countries in which we conduct business; the refusal of DTC to act as depository agency for our shares; the impact of our existing and future indebtedness and the restrictions on our operations by terms of the agreements governing our existing indebtedness; the risks caused by our acquisition and divestiture activities; additional costs or risks from increasing scrutiny and expectations regarding ESG matters; uncertainties related to our investments in New Energy business; the risks caused by fixed-price contracts; our failure to timely deliver our backlog; our reliance on subcontractors, suppliers and our joint venture partners; a failure or breach of our IT infrastructure or that of our subcontractors, suppliers or joint venture partners, including as a result of cyber-attacks; risks of pirates endangering our maritime employees and assets; any delays and cost overruns of new capital asset construction projects for vessels and manufacturing facilities; potential liabilities inherent in the industries in which we operate or have operated; our failure to comply with existing and future laws and regulations, including those related to environmental protection, climate change, health and safety, labor and employment, import/export controls, currency exchange, bribery and corruption, taxation, privacy, data protection and data security; the additional restrictions on dividend payouts or share repurchases as an English public limited company; uninsured claims and litigation against us; tax laws, treaties and regulations and any unfavorable findings by relevant tax authorities; potential departure of our key managers and employees; adverse seasonal and weather conditions and unfavorable currency exchange rates; risk in connection with our defined benefit pension plan commitments; and our inability to obtain sufficient bonding capacity for certain contracts, and other risks as discussed in Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and our other reports subsequently filed with the Securities and Exchange Commission.

We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law.

Exhibit 1

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data)

	(Unaudited)
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
		2023			2023			2022			2023			2022

Revenue	$	1,972.2		$	1,717.4		$	1,717.2		$	3,689.6		$	3,273.0
Costs and expenses		1,813.7			1,666.4			1,640.2			3,480.1			3,185.6
		158.5			51.0			77.0			209.5			87.4

Other income (expense), net		(181.2	)		12.9			7.3			(168.3	)		53.5
Income from investment in Technip Energies		—			—			0.8			—			(27.7	)

Income (loss) before net interest expense and income taxes		(22.7	)		63.9			85.1			41.2			113.2
Net interest expense		(30.3	)		(18.7	)		(27.7	)		(49.0	)		(61.6	)
Loss on early extinguishment of debt		—			—			(29.8	)		—			(29.8	)

Income (loss) before income taxes		(53.0	)		45.2			27.6			(7.8	)		21.8
Provision for income taxes		43.3			37.4			19.8			80.7			48.3

Income (loss) from continuing operations		(96.3	)		7.8			7.8			(88.5	)		(26.5	)
(Income) loss from continuing operations attributable to non-controlling interests		9.1			(7.4	)		(5.7	)		1.7			(13.7	)
Income (loss) from continuing operations attributable to TechnipFMC plc		(87.2	)		0.4			2.1			(86.8	)		(40.2	)

Loss from discontinued operations		—			—			—			—			(19.4	)
Net income (loss) attributable to TechnipFMC plc	$	(87.2	)	$	0.4		$	2.1		$	(86.8	)	$	(59.6	)

Earnings (loss) per share from continuing operations
Basic and diluted	$	(0.20	)	$	0.00		$	0.00		$	(0.20	)	$	(0.09	)

Earnings (loss) per share from discontinued operations
Basic and diluted	$	0.00		$	0.00		$	0.00		$	0.00		$	(0.04	)

Earnings (loss) per share attributable to TechnipFMC plc
Basic and diluted	$	(0.20	)	$	0.00		$	0.00		$	(0.20	)	$	(0.13	)

Weighted average shares outstanding:
Basic		440.1			442.1			452.2			441.1			451.6
Diluted		440.1			455.0			456.8			441.1			451.6


Exhibit 2

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES BUSINESS SEGMENT DATA (In millions)

	(Unaudited)
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
		2023			2023			2022			2023			2022
Segment revenue
Subsea	$	1,618.4		$	1,387.6		$	1,414.6		$	3,006.0		$	2,703.7
Surface Technologies		353.8			329.8			302.6			683.6			569.3
Total segment revenue	$	1,972.2		$	1,717.4		$	1,717.2		$	3,689.6		$	3,273.0

Segment operating profit
Subsea	$	153.4		$	66.8		$	97.1		$	220.2		$	151.1
Surface Technologies		25.7			22.4			10.0			48.1			13.7
Total segment operating profit		179.1			89.2			107.1			268.3			164.8

Corporate items
Corporate expense⁽¹⁾	$	(153.5	)	$	(27.4	)	$	(22.0	)	$	(180.9	)	$	(51.5	)
Net interest expense		(30.3	)		(18.7	)		(57.5	)		(49.0	)		(91.4	)
Income (loss) from investment in Technip Energies		—			—			0.8			—			(27.7	)
Foreign exchange gains (losses)		(48.3	)		2.1			(0.8	)		(46.2	)		27.6
Total corporate items		(232.1	)		(44.0	)		(79.5	)		(276.1	)		(143.0	)

Income (loss) before income taxes⁽²⁾	$	(53.0	)	$	45.2		$	27.6		$	(7.8	)	$	21.8

(1)	Corporate expense primarily includes the non-recurring legal settlement charges, corporate staff expenses, share-based compensation expenses, and other employee benefits.
(2)	Includes amounts attributable to non-controlling interests.

Exhibit 3

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES BUSINESS SEGMENT DATA (In millions, unaudited)

	Three Months Ended						Six Months Ended
Inbound Orders⁽¹⁾	June 30,		March 31,		June 30,		June 30,
	2023		2023		2022		2023		2022

Subsea	$	4,114.5	$	2,536.5	$	1,928.0	$	6,651.0	$	3,821.6
Surface Technologies		332.8		322.4		273.7		655.2		565.0
Total inbound orders	$	4,447.3	$	2,858.9	$	2,201.7	$	7,306.2	$	4,386.6

Order Backlog⁽²⁾	June 30, 2023		March 31, 2023		June 30, 2022

Subsea	$	12,088.5	$	9,395.3	$	7,926.3
Surface Technologies		1,190.1		1,212.1		1,113.1
Total order backlog	$	13,278.6	$	10,607.4	$	9,039.4

(1)	Inbound orders represent the estimated sales value of confirmed customer orders received during the reporting period.
(2)	Order backlog is calculated as the estimated sales value of unfilled, confirmed customer orders at the reporting date.

Exhibit 4

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In millions)

	(Unaudited)
	June 30, 2023		December 31, 2022

Cash and cash equivalents	$	585.2	$	1,057.1
Trade receivables, net		1,206.2		966.5
Contract assets, net		1,266.5		981.6
Inventories, net		1,158.2		1,039.7
Other current assets		1,026.0		943.8
Total current assets		5,242.1		4,988.7

Property, plant and equipment, net		2,350.5		2,354.9
Intangible assets, net		673.9		716.0
Other assets		1,366.4		1,384.7
Total assets	$	9,632.9	$	9,444.3

Short-term debt and current portion of long-term debt	$	429.5	$	367.3
Accounts payable, trade		1,516.5		1,282.8
Contract liabilities		1,219.0		1,156.4
Other current liabilities		1,273.0		1,367.8
Total current liabilities		4,438.0		4,174.3

Long-term debt, less current portion		999.7		999.3
Other liabilities		1,064.0		994.0
TechnipFMC plc stockholders’ equity		3,099.6		3,240.2
Non-controlling interests		31.6		36.5
Total liabilities and equity	$	9,632.9	$	9,444.3

Exhibit 5

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions, unaudited)

(In millions)	Three Months Ended June 30,			Six Months Ended June 30,
(In millions)	2023			2023			2022
Cash provided (required) by operating activities
Net (loss)	$	(96.3	)	$	(88.5	)	$	(45.9	)
Net loss from discontinued operations		—			—			19.4
Adjustments to reconcile income (loss) from continuing operations to cash provided (required) by operating activities
Depreciation and amortization		97.0			190.0			189.9
Loss from investment in Technip Energies		—			—			27.7
Income from equity affiliates, net of dividends received		(1.2	)		(15.4	)		(9.3	)
Loss on early extinguishment of debt		—			—			29.8
Other non-cash items, net		(6.1	)		11.9			46.5
Working capital⁽¹⁾		198.0			(286.8	)		(686.2	)
Other non-current assets and liabilities, net		(35.2	)		(41.2	)		1.8
Cash provided (required) by operating activities		156.2			(230.0	)		(426.3	)

Cash provided (required) by investing activities
Capital expenditures		(52.8	)		(110.1	)		(63.4	)
Proceeds from sale of investment in Technip Energies		—			—			288.5
Other investing activities for ER		26.2			30.7			4.4
Cash provided (required) by investing activities		(26.6	)		(79.4	)		229.5

Cash required by financing activities
Net decrease in short-term debt		(16.9	)		(26.1	)		(173.5	)
Cash settlement for derivative hedging debt		(17.2	)		(30.1	)		—
Net change in revolving credit facility		50.0			50.0			170.0
Repayments of long-term debt		—			—			(451.7	)
Share repurchases		(50.0	)		(100.0	)		—
Other financing activities		(20.2	)		(35.6	)		(5.5	)
Cash required by financing activities		(54.3	)		(141.8	)		(460.7	)
Effect of changes in foreign exchange rates on cash and cash equivalents		(12.4	)		(20.7	)		15.0
Change in cash and cash equivalents		62.9			(471.9	)		(642.5	)
Cash and cash equivalents, beginning of period		522.3			1,057.1			1,327.4
Cash and cash equivalents, end of period	$	585.2		$	585.2		$	684.9

(1)	Working capital includes receivables, payables, inventories and other current assets and liabilities.

Exhibit 6

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited)

In addition to financial results determined in accordance with U.S. generally accepted accounting principles (GAAP), the second quarter 2023 Earnings Release also includes non-GAAP financial measures (as defined in Item 10 of Regulation S-K of the Securities Exchange Act of 1934, as amended) and describes performance on a year-over-year or sequential basis. Income (loss) from continuing operations attributable to TechnipFMC plc, excluding charges and credits, as well as measures derived from it (including Diluted EPS, excluding charges and credits; Income before net interest expense and taxes, excluding charges and credits (“Adjusted Operating profit”); Depreciation and amortization, excluding charges and credits; Earnings before net interest expense, income taxes, depreciation and amortization, excluding charges and credits (“Adjusted EBITDA”); and Adjusted EBITDA, excluding foreign exchange gains or losses, net; Adjusted EBITDA margin; Adjusted EBITDA margin, excluding foreign exchange, net; Corporate expense, excluding charges and credits; Foreign exchange, net and other, excluding charges and credits; and net debt) are non-GAAP financial measures. Management believes that the exclusion of charges and credits from these financial measures enables investors and management to more effectively evaluate TechnipFMC’s operations and consolidated results of operations period-over-period, and to identify operating trends that could otherwise be masked or misleading to both investors and management by the excluded items. These measures are also used by management as performance measures in determining certain incentive compensation. The foregoing non-GAAP financial measures should be considered by investors in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. The following is a reconciliation of the most comparable financial measures under GAAP to the non-GAAP financial measures.

	Three Months Ended
	June 30, 2023
	Income (loss) from continuing operations attributable to TechnipFMC plc			Loss attributable to non-controlling interests from continuing operations			Provision for income taxes		Net interest expense and loss on early extinguishment of debt		Income (loss) before net interest expense and income taxes (Operating profit)			Depreciation and amortization		Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA)
TechnipFMC plc, as reported	$	(87.2	)	$	(9.1	)	$	43.3	$	30.3	$	(22.7	)	$	97.0	$	74.3

Charges and (credits):
Restructuring and other charges		4.7			—			0.4		—		5.1			—		5.1
Non-recurring legal settlement charges		126.5			—			—		—		126.5			—		126.5
Adjusted financial measures	$	44.0		$	(9.1	)	$	43.7	$	30.3	$	108.9		$	97.0	$	205.9

Diluted loss per share from continuing operations attributable to TechnipFMC plc, as reported	$	(0.20	)
Adjusted diluted earnings per share from continuing operations attributable to TechnipFMC plc	$	0.10

	Three Months Ended
	March 31, 2023
	Income from continuing operations attributable to TechnipFMC plc		Income attributable to non-controlling interests from continuing operations		Provision for income taxes		Net interest expense		Income before net interest expense and income taxes (Operating profit)		Depreciation and amortization		Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA)
TechnipFMC plc, as reported	$	0.4	$	7.4	$	37.4	$	18.7	$	63.9	$	93.0	$	156.9

Charges and (credits):
Restructuring and other charges		0.6		—		—		—		0.6		—		0.6
Adjusted financial measures	$	1.0	$	7.4	$	37.4	$	18.7	$	64.5	$	93.0	$	157.5

Diluted earnings (loss) per share from continuing operations attributable to TechnipFMC plc, as reported	$	0.00
Adjusted diluted earnings (loss) per share from continuing operations attributable to TechnipFMC plc	$	0.00

Exhibit 6

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited)

	Three Months Ended
	June 30, 2022
	Income from continuing operations attributable to TechnipFMC plc			Income attributable to non-controlling interests from continuing operations		Provision for income taxes		Net interest expense and loss on early extinguishment of debt		Income before net interest expense and income taxes (Operating profit)			Depreciation and amortization		Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA)
TechnipFMC plc, as reported	$	2.1		$	5.7	$	19.8	$	57.5	$	85.1		$	94.0	$	179.1

Charges and (credits):
Restructuring and other charges		7.1			—		1.1		—		8.2			—		8.2
Income from investment in Technip Energies		(0.8	)		—		—		—		(0.8	)		—		(0.8	)
Adjusted financial measures	$	8.4		$	5.7	$	20.9	$	57.5	$	92.5		$	94.0	$	186.5

Diluted earnings per share from continuing operations attributable to TechnipFMC plc, as reported	$	0.00
Adjusted diluted earnings per share from continuing operations attributable to TechnipFMC plc	$	0.02

Exhibit 7

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited)

In addition to financial results determined in accordance with U.S. generally accepted accounting principles (GAAP), the second quarter 2023 Earnings Release also includes non-GAAP financial measures (as defined in Item 10 of Regulation S-K of the Securities Exchange Act of 1934, as amended) and describes performance on a year-over-year or sequential basis. Income (loss) from continuing operations attributable to TechnipFMC plc, excluding charges and credits, as well as measures derived from it (including diluted income (loss) per share from continuing operations attributable to TechnipFMC plc, excluding charges and credits); Income before net interest expense and taxes, excluding charges and credits (Adjusted Operating profit); Depreciation and amortization, excluding charges and credits; Earnings before net interest expense, income taxes, depreciation and amortization, excluding charges and credits (Adjusted EBITDA and Adjusted EBITDA, excluding foreign exchange, net); Adjusted EBITDA margin; Adjusted EBITDA margin, excluding foreign exchange, net; Corporate expense, excluding charges and credits; Foreign exchange, net and other, excluding charges and credits; and net debt, or cash are non-GAAP financial measures. Management believes that the exclusion of charges and credits from these financial measures enables investors and management to more effectively evaluate TechnipFMC’s operations and consolidated results of operations period-over-period, and to identify operating trends that could otherwise be masked or misleading to both investors and management by the excluded items. These measures are also used by management as performance measures in determining certain incentive compensation. The foregoing non-GAAP financial measures should be considered by investors in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. The following is a reconciliation of the most comparable financial measures under GAAP to the non-GAAP financial measures.

	Six Months Ended
	June 30, 2023
	Income (loss) from continuing operations attributable to TechnipFMC plc			Loss attributable to non-controlling interests from continuing operations			Provision for income taxes		Net interest expense		Income before net interest expense and income taxes (Operating profit)		Depreciation and amortization		Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA)
TechnipFMC plc, as reported	$	(86.8	)	$	(1.7	)	$	80.7	$	49.0	$	41.2	$	190.0	$	231.2

Charges and (credits):
Restructuring and other charges		5.3			—			0.4		—		5.7		—		5.7
Non-recurring legal settlement charges		126.5			—			—				126.5		—		126.5
Adjusted financial measures	$	45.0		$	(1.7	)	$	81.1	$	49.0	$	173.4	$	190.0	$	363.4

Diluted loss per share from continuing operations attributable to TechnipFMC plc, as reported	$	(0.20	)
Adjusted diluted earnings per share from continuing operations attributable to TechnipFMC plc	$	0.10

Exhibit 7

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited)

	Six Months Ended
	June 30, 2022
	Loss from continuing operations attributable to TechnipFMC plc			Income attributable to non-controlling interests from continuing operations		Provision for income taxes		Net interest expense and loss on early extinguishment of debt		Income before net interest expense and income taxes (Operating profit)		Depreciation and amortization		Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA)
TechnipFMC plc, as reported	$	(40.2	)	$	13.7	$	48.3	$	91.4	$	113.2	$	189.9	$	303.1

Charges and (credits):
Impairment and other charges		1.1			—		—		—		1.1		—		1.1
Restructuring and other charges		6.8			—		1.3		—		8.1		—		8.1
Loss from Investment in Technip Energies		27.7			—		—		—		27.7		—		27.7
Adjusted financial measures	$	(4.6	)	$	13.7	$	49.6	$	91.4	$	150.1	$	189.9	$	340.0

Diluted loss per share from continuing operations attributable to TechnipFMC plc, as reported	$	(0.09	)
Adjusted diluted loss per share from continuing operations attributable to TechnipFMC plc	$	(0.01	)

Exhibit 8

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited)

	Three Months Ended
	June 30, 2023
	Subsea			Surface Technologies			Corporate Expense			Foreign Exchange, net and Other			Total
Revenue	$	1,618.4		$	353.8		$	—		$	—		$	1,972.2

Operating profit (loss), as reported (pre-tax)	$	153.4		$	25.7		$	(153.5	)	$	(48.3	)	$	(22.7	)

Charges and (credits):
Restructuring and other charges		0.5			4.6			—			—			5.1
Non-recurring legal settlement charges		—			—			126.5			—			126.5
Subtotal		0.5			4.6			126.5			—			131.6

Adjusted Operating profit (loss)		153.9			30.3			(27.0	)		(48.3	)		108.9

Depreciation and amortization		79.9			16.6			0.5			—			97.0

Adjusted EBITDA	$	233.8		$	46.9		$	(26.5	)	$	(48.3	)	$	205.9

Foreign exchange, net		0.0			0.0			0.0			48.3			48.3

Adjusted EBITDA, excluding foreign exchange, net	$	233.8		$	46.9		$	(26.5	)	$	—		$	254.2

Operating profit margin, as reported		9.5	%		7.3	%								-1.2	%

Adjusted Operating profit margin		9.5	%		8.6	%								5.5	%

Adjusted EBITDA margin		14.4	%		13.3	%								10.4	%

Adjusted EBITDA margin, excluding foreign exchange, net		14.4	%		13.3	%								12.9	%

Exhibit 8

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited)

	Three Months Ended
	March 31, 2023
	Subsea			Surface Technologies			Corporate Expense			Foreign Exchange, net and Other			Total
Revenue	$	1,387.6		$	329.8		$	—		$	—		$	1,717.4

Operating profit (loss), as reported (pre-tax)	$	66.8		$	22.4		$	(27.4	)	$	2.1		$	63.9

Charges and (credits):
Restructuring and other charges		(0.1	)		0.7			—			—			0.6
Subtotal		(0.1	)		0.7			—			—			0.6

Adjusted Operating profit (loss)		66.7			23.1			(27.4	)		2.1			64.5

Depreciation and amortization		75.2			17.2			0.6			—			93.0

Adjusted EBITDA	$	141.9		$	40.3		$	(26.8	)	$	2.1		$	157.5

Foreign exchange, net		—			—			—			(2.1	)		(2.1	)

Adjusted EBITDA, excluding foreign exchange, net	$	141.9		$	40.3		$	(26.8	)	$	—		$	155.4

Operating profit margin, as reported		4.8	%		6.8	%								3.7	%

Adjusted Operating profit margin		4.8	%		7.0	%								3.8	%

Adjusted EBITDA margin		10.2	%		12.2	%								9.2	%

Adjusted EBITDA margin, excluding foreign exchange, net		10.2	%		12.2	%								9.0	%

Exhibit 8

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited)

	Three Months Ended
	June 30, 2022
	Subsea			Surface Technologies			Corporate Expense			Foreign Exchange, net			Total
Revenue	$	1,414.6		$	302.6		$	—		$	—		$	1,717.2

Operating profit (loss), as reported (pre-tax)	$	97.1		$	10.0		$	(22.0	)	$	—		$	85.1

Charges and (credits):
Restructuring and other charges		2.6			5.4			0.2			—			8.2
Income from investment in Technip Energies		—			—			—			(0.8	)		(0.8	)
Subtotal		2.6			5.4			0.2			(0.8	)		7.4

Adjusted Operating profit (loss)		99.7			15.4			(21.8	)		(0.8	)		92.5

Depreciation and amortization		76.3			17.0			0.7			—			94.0

Adjusted EBITDA	$	176.0		$	32.4		$	(21.1	)	$	(0.8	)	$	186.5

Foreign exchange, net		—			—			—			0.8			0.8

Adjusted EBITDA, excluding foreign exchange, net	$	176.0		$	32.4		$	(21.1	)	$	—		$	187.3

Operating profit margin, as reported		6.9	%		3.3	%								5.0	%

Adjusted Operating profit margin		7.0	%		5.1	%								5.4	%

Adjusted EBITDA margin		12.4	%		10.7	%								10.9	%

Adjusted EBITDA margin, excluding foreign exchange, net		12.4	%		10.7	%								10.9	%

Exhibit 9

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited)

	Six Months Ended
	June 30, 2023
	Subsea			Surface Technologies			Corporate Expense			Foreign Exchange, net and Other			Total
Revenue	$	3,006.0		$	683.6		$	—		$	—		$	3,689.6

Operating profit (loss), as reported (pre-tax)	$	220.2		$	48.1		$	(180.9	)	$	(46.2	)	$	41.2

Charges and (credits):
Restructuring and other charges		0.4			5.3			—			—			5.7
Non-recurring legal settlement charges		—			—			126.5			—			126.5
Subtotal		0.4			5.3			126.5			—			132.2

Adjusted operating profit (loss)		220.6			53.4			(54.4	)		(46.2	)		173.4

Depreciation and amortization		155.1			33.8			1.1			—			190.0

Adjusted EBITDA	$	375.7		$	87.2		$	(53.3	)	$	(46.2	)	$	363.4

Foreign exchange, net		—			—			—			46.2			46.2

Adjusted EBITDA, excluding foreign exchange, net	$	375.7		$	87.2		$	(53.3	)	$	—		$	409.6

Operating profit margin, as reported		7.3	%		7.0	%								1.1	%

Adjusted operating profit margin		7.3	%		7.8	%								4.7	%

Adjusted EBITDA margin		12.5	%		12.8	%								9.8	%

Adjusted EBITDA margin, excluding foreign exchange, net		12.5	%		12.8	%								11.1	%

Exhibit 9

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited)

	Six Months Ended
	June 30, 2022
	Subsea			Surface Technologies			Corporate Expense			Foreign Exchange, net and Other			Total
Revenue	$	2,703.7		$	569.3		$	—		$	—		$	3,273.0

Operating loss, as reported (pre-tax)	$	151.1		$	13.7		$	(51.5	)	$	(0.1	)	$	113.2

Charges and (credits):
Impairment and other charges		—			1.1			—			—			1.1
Restructuring and other charges		(0.8	)		5.9			3.0			—			8.1
Loss from investment in Technip Energies		—			—			—			27.7			27.7
Subtotal		(0.8	)		7.0			3.0			27.7			36.9

Adjusted operating profit (loss)		150.3			20.7			(48.5	)		27.6			150.1

Depreciation and amortization		154.7			33.7			1.5			—			189.9

Adjusted EBITDA	$	305.0		$	54.4		$	(47.0	)	$	27.6		$	340.0

Foreign exchange, net		—			—			—			(27.6	)		(27.6	)

Adjusted EBITDA, excluding foreign exchange, net	$	305.0		$	54.4		$	(47.0	)	$	—		$	312.4

Operating profit margin, as reported		5.6	%		2.4	%								3.5	%

Adjusted operating profit margin		5.6	%		3.6	%								4.6	%

Adjusted EBITDA margin		11.3	%		9.6	%								10.4	%

Adjusted EBITDA margin, excluding foreign exchange, net		11.3	%		9.6	%								9.5	%

Exhibit 10

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited)

	June 30,			March 31,			June 30,
		2023			2023			2022
Cash and cash equivalents	$	585.2		$	522.3		$	684.9
Short-term debt and current portion of long-term debt		(429.5	)		(385.0	)		(104.0	)
Long-term debt, less current portion		(999.7	)		(1,005.7	)		(1,370.7	)
Net debt	$	(844.0	)	$	(868.4	)	$	(789.8	)

Net (debt) cash is a non-GAAP financial measure reflecting cash and cash equivalents, net of debt. Management uses this non-GAAP financial measure to evaluate our capital structure and financial leverage. We believe net debt, or net cash, is a meaningful financial measure that may assist investors in understanding our financial condition and recognizing underlying trends in our capital structure. Net (debt) cash should not be considered an alternative to, or more meaningful than, cash and cash equivalents as determined in accordance with U.S. GAAP or as an indicator of our operating performance or liquidity.

Exhibit 11

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited)

	Three Months Ended June 30,			Six Months Ended June 30,
		2023			2023			2022
Cash provided (required) by operating activities from continuing operations	$	156.2		$	(230.0	)	$	(426.3	)
Capital expenditures		(52.8	)		(110.1	)		(63.4	)
Free cash flow (deficit) from continuing operations	$	103.4		$	(340.1	)	$	(489.7	)

Free cash flow (deficit) from continuing operations, is a non-GAAP financial measure and is defined as cash provided (required) by operating activities less capital expenditures. Management uses this non-GAAP financial measure to evaluate our financial condition. We believe from continuing operations, free cash flow (deficit) from continuing operations is a meaningful financial measure that may assist investors in understanding our financial condition and results of operations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230727175090/en/

Investor relations

Matt Seinsheimer

Senior Vice President, Investor Relations and Corporate Development

Tel: +1 281 260 3665

Email: Matt Seinsheimer

James Davis

Director, Investor Relations

Tel: +1 281 260 3665

Email: James Davis

Media relations

Catie Tuley

Director, Public Relations

Tel: +1 281 591 5405

Email: Catie Tuley

David Willis

Senior Manager, Public Relations

Tel: +44 7841 492988

Email: David Willis

KEYWORDS: Texas Europe United States United Kingdom North America

INDUSTRY KEYWORDS: Maritime Engineering Transport Oil/Gas Manufacturing Energy Other Natural Resources Mining/Minerals Natural Resources

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July 27, 2023 7:07 am

MarineMax Reports Fiscal 2023 Third Quarter Results

MarineMax Reports Fiscal 2023 Third Quarter Results

~ Posts Record Revenue and Strong Margins on Continued Execution of Growth Strategy ~

~ Updates Fiscal 2023 Guidance ~

~ Q3 Earnings Conference Call at 10:00 a.m. ET Today ~

CLEARWATER, Fla.–(BUSINESS WIRE)–
MarineMax, Inc. (NYSE: HZO), the world’s largest recreational boat, yacht, and superyacht services company, today announced results for its fiscal third quarter ended June 30, 2023.

Fiscal 2023 Third Quarter Highlights

Record revenue of $721.8 million
Strong gross margin of 33.8%
Net income of $44.4 million, or diluted EPS of $1.98; Adjusted diluted EPS of $2.07
Adjusted EBITDA of $83.5 million
IGY Marinas contributes to Company growth
Completes acquisition of C&C Boat Works

CEO & President Commentary

“Our Team outperformed our expectations in the third quarter, highlighted by record revenue, solid earnings, and strong cash flows. Robust consumer demand and enthusiasm for boating, particularly in the premium segment, fueled new and used boat revenue and resulted in a modest increase in same-store sales in the quarter,” stated MarineMax Chief Executive Officer and President Brett McGill. “We continue to execute on our strategy to structurally enhance our margin profile through premium products, services and experiences that enable customers to enjoy the boating lifestyle. While the marine industry is seeing a return to seasonality that led to incrementally more aggressive retail pricing during the quarter, our margins remained healthy, strengthened by the more profitable business lines in our integrated marine portfolio, as well as strategic acquisitions such as IGY Marinas.

“The addition of IGY Marinas is significantly enhancing our worldwide reach while creating opportunities for synergies with our other superyacht services offerings,” Mr. McGill continued. “Capitalizing on our strong balance sheet, in the quarter we also added C&C Boat Works of Minnesota to the MarineMax family. With C&C’s significant storage capabilities, combined with our nearby existing operations, we are better able to serve the vibrant Minnesota boating community.”

Fiscal 2023 Third Quarter Results

Revenue in the fiscal 2023 third quarter increased to a record $721.8 million from $688.5 million in the comparable period last year. The 4.8% top-line growth was driven primarily by the acquisition of IGY Marinas, which the Company acquired in October 2022, increased manufacturing revenue and stronger new and used boat revenue. Same-store sales increased slightly in the third quarter compared with a decline of 5% a year ago. IGY Marinas and boat manufacturing revenue are not included in the same-store sales comparison.

Gross profit increased 3.1% to $243.8 million from $236.5 million in the prior-year period. Gross profit margin of 33.8% decreased 50 basis points from 34.3% in the fiscal 2022 third quarter, primarily due to revenue mix.

Selling, general, and administrative expenses totaled $169.2 million, or 23.4% of revenue, in the third quarter compared with $141.2 million, or 20.5% of revenue, for the same period last year, primarily reflecting the addition of IGY Marinas.

Interest expense increased to $14.8 million in the third quarter from $1.0 million in the prior-year period, reflecting higher interest rates as well as the increase in long-term debt associated with the IGY Marinas acquisition and greater inventory.

Net income in the third quarter was $44.4 million, or $1.98 per diluted share, compared with net income of $70.2 million, or $3.17 per diluted share, in the same period last year.

Adjusted net income¹ in the third quarter was $46.5 million, or $2.07 per diluted share, compared with $71.5 million, or $3.23 per diluted share, in the prior-year period. Adjusted EBITDA¹ for the quarter ended June 30, 2023 was $83.5 million, compared with $105.5 million for the same period last year.

Fiscal 2023 Guidance

Based on results to date, current business conditions, retail trends and other factors, the Company is narrowing its fiscal year 2023 guidance for Adjusted earnings² to a range of $5.10 to $5.50 per diluted share, compared with a prior range of $4.90 to $5.50 per diluted share. The Company also is narrowing its fiscal year 2023 guidance for Adjusted EBITDA² to a range of $225 million to $245 million, compared with a prior range of $220 million to $245 million. These expectations do not consider, or give effect for, among other things, material acquisitions that may be completed by the Company during fiscal 2023 or other unforeseen events, including changes in global economic conditions.

Conference Call Information

MarineMax will discuss its fiscal 2023 third quarter results and outlook on a conference call starting at 10:00 a.m. ET today. The conference call can be accessed via the “Investors” section of the Company’s website: www.marinemax.com, or by dialing 877-407-0789 (U.S. and Canada) or 201-689-8562 (International). An online replay will be available within one hour of the conclusion of the call and will be archived on the website for one year.

About MarineMax

As the world’s largest lifestyle retailer of recreational boats and yachts, as well as yacht concierge and superyacht services, MarineMax (NYSE: HZO) is United by Water. We have 130 locations worldwide, including 78 dealerships and 59 marinas. Our integrated business includes IGY Marinas, which operates luxury marinas in yachting and sport fishing destinations around the world; Fraser Yachts Group and Northrop & Johnson, leading superyacht brokerage and luxury yacht services companies; Cruisers Yachts, one of the world’s premier manufacturers of premium sport yachts and motor yachts; and Intrepid Powerboats, a premier manufacturer of powerboats. To enhance and simplify the customer experience, we provide financing and insurance services as well as leading digital technology products that connect boaters to a network of preferred marinas, dealers, and marine professionals through Boatyard and Boatzon. In addition, we operate MarineMax Vacations in Tortola, British Virgin Islands, which offers our charter vacation guests the luxury boating adventures of a lifetime. Land comprises 29% of the earth’s surface. We’re focused on the other 71%. Learn more at www.marinemax.com.

Forward-Looking Statement

Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include our strategy to structurally enhance our margin profile and our fiscal 2023 guidance. These statements are based on current expectations, forecasts, risks, uncertainties, and assumptions that may cause actual results to differ materially from expectations as of the date of this release. These risks, assumptions, and uncertainties include the Company’s abilities to reduce inventory, manage expenses and accomplish its goals and strategies, the quality of the new product offerings from the Company’s manufacturing partners, the performance and integration of the recently-acquired businesses, general economic conditions, as well as those within the Company’s industry, the liquidity and strength of our bank group partners, the level of consumer spending, and numerous other factors identified in the Company’s Form 10-K for the fiscal year ended September 30, 2022 and other filings with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

^{_________________

1} This is a non-GAAP measure. See below for an explanation and quantitative reconciliation of each non-GAAP financial measure.

² See “Non-GAAP Financial Measures” below for a discussion of why reconciliations of forward-looking Adjusted earnings and Adjusted EBITDA are not available without unreasonable effort.

MarineMax, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)
(Unaudited)

	Three Months Ended					Nine Months Ended
	June 30,					June 30,
	2023			2022		2023		2022
Revenue	$	721,844		$	688,537	$	1,800,111	$	1,771,334
Cost of sales		478,036			452,064		1,168,497		1,162,347
Gross profit		243,808			236,473		631,614		608,987

Selling, general, and administrative expenses		169,227			141,173		465,128		394,702
Income from operations		74,581			95,300		166,486		214,285

Interest expense		14,798			1,008		37,562		2,299
Income before income tax provision		59,783			94,292		128,924		211,986

Income tax provision		15,455			24,113		34,685		52,357
Net income		44,328			70,179		94,239		159,629

Less: Net (loss) income attributable to non-controlling interests		(88	)		—		98		—
Net income attributable to MarineMax, Inc.	$	44,416		$	70,179	$	94,141	$	159,629

Basic net income per common share	$	2.03		$	3.26	$	4.31	$	7.34

Diluted net income per common share	$	1.98		$	3.17	$	4.22	$	7.11

Weighted average number of common shares used in computing net income per common share:

Basic		21,885,400			21,524,315		21,831,350		21,761,811
Diluted		22,427,443			22,173,273		22,321,269		22,455,828

MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)

	June 30,			June 30,
	2023			2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	226,134		$	281,351
Accounts receivable, net		95,018			61,863
Inventories		739,114			374,217
Prepaid expenses and other current assets		24,881			18,566
Total current assets		1,085,147			735,997
Property and equipment, net		521,637			226,647
Operating lease right-of-use assets, net		135,452			100,127
Goodwill		562,277			236,713
Other intangible assets, net		40,968			11,481
Other long-term assets		34,814			9,104
Total assets	$	2,380,295		$	1,320,069
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	47,202		$	56,533
Contract liabilities (customer deposits)		97,785			138,375
Accrued expenses		118,576			97,088
Short-term borrowings		514,023			107,222
Current maturities on long-term debt		32,409			3,028
Current operating lease liabilities		9,967			10,323
Total current liabilities		819,962			412,569
Long-term debt, net of current maturities		399,229			45,834
Noncurrent operating lease liabilities		119,759			92,774
Deferred tax liabilities, net		54,449			17,805
Other long-term liabilities		84,539			8,347
Total liabilities		1,477,938			577,329
SHAREHOLDERS’ EQUITY:
Preferred stock		—			—
Common stock		29			29
Additional paid-in capital		320,383			300,411
Accumulated other comprehensive income (loss)		3,245			(1,351	)
Retained earnings		724,808			592,307
Treasury stock		(148,656	)		(148,656	)
Total shareholders’ equity attributable to MarineMax, Inc.		899,809			742,740
Non-controlling interests		2,548		—
Total shareholders’ equity		902,357			742,740
Total liabilities and shareholders’ equity	$	2,380,295		$	1,320,069

MarineMax, Inc. and Subsidiaries
Segment Financial Information
(Amounts in thousands)
(Unaudited)

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Revenue:
Retail Operations	$	687,168		$	657,930		$	1,707,049		$	1,690,172
Product Manufacturing		51,884			48,802			164,959			129,804
Elimination of intersegment revenue		(17,208	)		(18,195	)		(71,897	)		(48,642	)
Revenue	$	721,844		$	688,537		$	1,800,111		$	1,771,334
Income from operations:
Retail Operations	$	68,050		$	90,655		$	158,514		$	204,124
Product Manufacturing		5,089			5,903			17,834			13,733
Intersegment adjustments		1,442			(1,258	)		(9,862	)		(3,572	)
Income from operations	$	74,581		$	95,300		$	166,486		$	214,285

MarineMax, Inc. and Subsidiaries
Supplemental Financial Information
(Amounts in thousands, except share and per share data)
(Unaudited)

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Net income attributable to MarineMax, Inc.	$	44,416		$	70,179		$	94,141		$	159,629
Acquisition costs (1)		111			939			6,227			1,456
Intangible amortization (2)		1,925			630			5,524			1,769
Change in fair value of contingent consideration (3)		1,211			141			3,441			375
Hurricane expenses (recoveries)		(452	)		—			(644	)		—
Gain on acquisition of equity investment (4)		—			—			(5,129	)		—
Tax adjustments for items noted above (5)		(724	)		(438	)		(2,534	)		(889	)
Adjusted net income attributable to MarineMax, Inc.	$	46,487		$	71,451		$	101,026		$	162,340

Diluted net income per common share	$	1.98		$	3.17		$	4.22		$	7.11
Acquisition costs (1)		—			0.04			0.28			0.06
Intangible amortization (2)		0.09			0.03			0.25			0.08
Change in fair value of contingent consideration (3)		0.05			0.01			0.15			0.02
Hurricane expenses (recoveries)		(0.02	)		—			(0.03	)		—
Gain on acquisition of equity investment (4)		—			—			(0.23	)		—
Tax adjustments for items noted above (5)		(0.03	)		(0.02	)		(0.11	)		(0.04	)
Adjusted diluted net income per common share	$	2.07		$	3.23		$	4.53		$	7.23

(1) Acquisition costs relate to acquisition transaction costs in the period.

(2) Represents amortization expense for acquisition-related intangible assets.

(3) Represents expenses to record contingent consideration liabilities at fair value.

(4) Represents gain on a previously held equity investment upon acquisition of the entire business.

(5) Adjustments for taxes for items are calculated based on the effective tax rate for each respective period presented and the jurisdiction of the adjustment.

	Three Months Ended					Nine Months Ended
	June 30,					June 30,
	2023			2022		2023			2022
Net income attributable to MarineMax, Inc.	$	44,416		$	70,179	$	94,141		$	159,629
Interest expense (excluding floor plan)		7,485			749		20,669			1,374
Income tax provision		15,455			24,113		34,685			52,357
Depreciation and amortization		9,419			4,948		27,391			14,252
Stock-based compensation expense		5,490			3,935		15,703			11,110
Acquisition costs		111			939		6,227			1,456
Gain on acquisition of equity investment		—			—		(5,129	)		—
Change in fair value of contingent consideration		1,211			141		3,441			375
Hurricane expenses (recoveries)		(452	)		—		(644	)		—
Foreign currency		352			508		(2,451	)		549
Adjusted EBITDA	$	83,487		$	105,512	$	194,033		$	241,102

Non-GAAP Financial Measures

This press release, along with the above Supplemental Financial Information table, contains “Adjusted net income,” “Adjusted diluted EPS” and “Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization” (“Adjusted EBITDA”), which are non-GAAP financial measures as defined under applicable securities legislation. In determining these measures, the Company excludes certain items which are otherwise included in determining the comparable GAAP financial measures. The Company believes these non-GAAP financial measures are key performance indicators that improve the period-to-period comparability of the Company’s results and provide investors with more insight into, and an additional tool to understand and assess, the performance of the Company’s ongoing core business operations. Investors and other readers are encouraged to review the related GAAP financial measures and the above reconciliation and should consider these non-GAAP financial measures as a supplement to, and not as a substitute for or as a superior measure to, measures of financial performance prepared in accordance with GAAP.

In addition, we have not reconciled our guidance for fiscal year 2023 Adjusted earnings and Adjusted EBITDA guidance to net income (the corresponding GAAP measure for each), which is not accessible on a forward-looking basis due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to acquisition contingent consideration and acquisition costs. Acquisition contingent consideration and acquisition costs, which are likely to be significant to the calculation of net income, are affected by the integration and post-acquisition performance of our acquirees, which is difficult to predict and subject to change. Accordingly, reconciliations of forward-looking Adjusted earnings and Adjusted EBITDA are not available without unreasonable effort.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230726108590/en/

Investor Contacts:

Mike McLamb

Chief Financial Officer

MarineMax, Inc.

727-531-1700

Scott Solomon or Laura Resag

Sharon Merrill Associates, Inc.

857-383-2409

[email protected]

KEYWORDS: Florida United States North America

INDUSTRY KEYWORDS: Retail Luxury Sports Powerboating Specialty Yachting

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July 27, 2023 7:04 am

Bread Financial™ Announces Approval of $35 Million Share Repurchase Program; Also Declares Quarterly Dividend on Common Stock

Bread Financial™ Announces Approval of $35 Million Share Repurchase Program; Also Declares Quarterly Dividend on Common Stock

COLUMBUS, Ohio–(BUSINESS WIRE)–Bread Financial Holdings, Inc. (NYSE: BFH), a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions, today announced that its Board of Directors has approved a new plan to purchase up to $35 million of shares of the Company’s common stock.

As part of Bread Financial’s continued commitment to its stated capital priorities, the share buyback is designed to offset the impact of dilution associated with issuances of employee restricted stock units.

The board’s authorization permits the Company to make open market share repurchases from time-to-time through December 31, 2023 in compliance with SEC Rule 10b-18 and subject to market conditions and other factors, including legal and regulatory restrictions and required approvals, up to the aggregate amount authorized by the board. The repurchase program does not obligate the Company to acquire any specific number of shares and may be suspended or terminated at any time.

In addition, Bread Financial today announced that its Board of Directors has declared a quarterly cash dividend of $0.21 per share on the Company’s common stock, payable on September 15, 2023 to stockholders of record at the close of business on August 11, 2023.

About Bread Financial^™

Bread Financial ^TM (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive suite of payment solutions that includes private label and co-brand credit cards and Bread Pay™ buy now, pay later products. Bread Financial also offers direct-to-consumer products that give customers more access, choice and freedom through its branded Bread Cashback^TM American Express^® Credit Card and Bread Savings ^TM products.

Headquartered in Columbus, Ohio, Bread Financial is powered by its 7,500+ global associates and is committed to sustainable business practices. To learn more about Bread Financial, visit BreadFinancial.com or follow us on Facebook, LinkedIn, Twitter and Instagram.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, among other things, statements regarding our intended share repurchases and the expected impact on share count dilution. We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are based only on currently available information and our current beliefs, expectations and assumptions, and are subject to a number of risks and uncertainties that are difficult to predict and, in many cases, beyond our control, including risk and uncertainties described in greater detail under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230727028519/en/

Brian Vereb — Investor Relations

[email protected]

Susan Haugen — Investor Relations

[email protected]

Rachel Stultz — Media

[email protected]

KEYWORDS: United States North America Ohio

INDUSTRY KEYWORDS: Technology Payments Finance Fintech Banking Professional Services Digital Cash Management/Digital Assets Software Data Analytics

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July 27, 2023 7:01 am

Northrop Grumman Releases Second Quarter 2023 Financial Results

FALLS CHURCH, Va., July 27, 2023 (GLOBE NEWSWIRE) — Northrop Grumman Corporation (NYSE: NOC) has released its second quarter 2023 financial results. A copy of the earnings release has been furnished in the company’s Form 8-K filing and is also available on the company’s investor relations website at http://investor.northropgrumman.com.

As previously announced, Northrop Grumman will webcast its earnings conference call at 9 a.m. Eastern time today. A live audio broadcast of the conference call will be available on http://investor.northropgrumman.com. To listen to the call, go to the website at least 15 minutes before the call to register, download and install any needed audio software.

Northrop Grumman is a leading global aerospace and defense technology company. Our pioneering solutions equip our customers with the capabilities they need to connect and protect the world, and push the boundaries of human exploration across the universe. Driven by a shared purpose to solve our customers’ toughest problems, our 95,000 employees define possible every day.

Contact:
Vic Beck (Media)
703-280-4456 (office)
[email protected]

Todd Ernst (Investors)
703-280-4535 (office)
[email protected]

July 27, 2023 6:58 am

WEX Venture Capital Seeks to Invest up to $100M to Help Advance EV Fleet Transition

WEX Venture Capital Seeks to Invest up to $100M to Help Advance EV Fleet Transition

Investments will likely target early-stage startups to nurture the next generation of electrification and to align with WEX’s mission to lead the energy transition to EVs

PORTLAND, Maine–(BUSINESS WIRE)–WEX (NYSE: WEX), the global commerce platform that simplifies the business of running a business, today announced that its Board of Directors has authorized a new investment arm of WEX, WEX Venture Capital, to invest up to $100 million through the end of 2025, which will likely be made predominantly in early-stage companies focused on the energy transition, including areas such as fleet electrification, the electric vehicle (EV) charging ecosystem, energy management and optimization, and adjacent technology. WEX Venture Capital has already started to deploy capital, including minority investments in Chargetrip and ev.energy.

“WEX Venture Capital is proof that we do not have to choose between doing what’s right for business and what’s right for the future of mobility,” said Melissa Smith, Chair, Chief Executive Officer, and President, WEX. “From routing and energy management to fuel payment systems, the energy transition will benefit from innovation in fleet management offerings, creating flexibility for our customers to seamlessly charge or fuel at work, home, and en route. WEX Venture Capital’s investments will be aimed at supporting companies focused on the critical back-end infrastructure necessary to achieve widespread commercial EV adoption, while also creating new value for WEX’s global fleet customers navigating the evolving electric mobility ecosystem. This is a crucial moment for WEX and the larger fleet industry, and we’re proud to help lead this transition.”

Already a trusted advisor to fleet mobility customers, including more than 18 million vehicles serviced globally as of Q2 2023, the portfolio companies in which WEX Venture Capital expects to invest will have the potential to benefit from the capital investment as well as the potential commercial opportunities presented by WEX’s fleet mobility customers and partners across the broader and evolving fueling and charging ecosystem.

“In the years to come, the energy transition will transform how we move employees and goods around the economy,” said Jay Dearborn, Chief Strategy Officer, WEX. “WEX Venture Capital positions WEX to not only serve our commercial customers with the innovation we drive from within, but to also participate and help unlock rich innovation that is happening across the ecosystem.”

The new initiative reflects the importance of engaging with outside innovators and companies, which complements WEX’s historical approach to growth through traditional M&A and internal development efforts. WEX Venture Capital diversifies WEX’s long-term strategy by positioning the company to identify new revenue models, provide visibility beyond WEX’s current product roadmap, and participate in the early-stage product innovation ecosystem as many of its fleet mobility customers begin to migrate from internal combustion engine vehicles to EVs and mixed fleets as part of the energy transition.

WEX Venture Capital’s investment thesis is reflected in its recent investments in Chargetrip, a Netherlands-based company focused on range prediction and EV routing for private drivers and commercial fleets, and ev.energy, a UK-based company offering a managed charging software platform for EVs. ev.energy announced its $33 million Series B round of financing today.

“We are thrilled to welcome Chargetrip and ev.energy to the WEX Venture Capital portfolio,” said Carlos Carriedo, Chief Operating Officer, International, WEX. “Chargetrip’s deep expertise in range prediction and routing technology for EV fleets and ev.energy’s managed charging platform are both critical in helping our clients optimize their EV investments. We look forward to collaborating with Chargetrip and ev.energy to help strengthen their first-mover advantage in market awareness, product maturity, and traction as fleets convert to EVs over time.”

“The investment from WEX Venture Capital is a major step towards our goal to be the number one design partner for electrifying fleets. With WEX’s network and fleet software expertise, Chargetrip will be able to access new customers, benefit from WEX leadership’s knowledge, and grow its North American presence,” said Gideon van Dijk, Chief Executive Officer and Co-Founder, Chargetrip.

“WEX Venture Capital is a great partner for ev.energy, giving us access to millions of fleet vehicles across the US and Europe. I’m excited about working with WEX to help fleet managers save thousands and reduce carbon emissions through the vehicle-grid integration of fleet EVs,” said Nick Woolley, Chief Executive Officer and Co-Founder, ev.energy.

WEX Venture Capital is launched as the growth of EV adoption reaches an inflection point. Given its leading position in the fuel payments industry, serving over 600,000 fleet customers worldwide, WEX Venture Capital enables WEX to play a meaningful role in the greater electric mobility ecosystem by assisting a variety of new stakeholders, from energy suppliers to charge point operators, OEMs, charging locations, and energy markets, among others as they streamline the future of charging and payments.

For more information about WEX Venture Capital, please visit https://vc.wexinc.com.

About WEX

WEX (NYSE: WEX) is the global commerce platform that simplifies the business of running a business. WEX has created a powerful ecosystem that offers seamlessly embedded, personalized solutions for its customers around the world. Through its rich data and specialized expertise in simplifying benefits, reimagining mobility and paying and getting paid, WEX aims to make it easy for companies to overcome complexity and reach their full potential. For more information, please visit www.wexinc.com.

About WEX Venture Capital

WEX Venture Capital is the venture capital arm of WEX (NYSE: WEX) with an authorization of $100 million in capital focused on identifying and helping advance next-generation technology and companies focused on the energy transition. Investment areas of focus include fleet electrification, the electric vehicle (EV) charging ecosystem, energy management and optimization, and adjacent technology. WEX Venture Capital offers portfolio companies the potential to benefit from the breadth of WEX’s global fleet business and expertise, while guiding WEX fleet customers as they navigate the expected global EV transition. For more information, please visit https://vc.wexinc.com.

About Chargetrip

Chargetrip is an API-based SaaS company that enables fleet electrification and e-mobility application development with EV routing and range prediction technology. Its platform routes about 15% of Europe’s EV drivers and is trusted by top EV charging, vehicle rental, and energy utility companies globally. In addition to WEX Venture Capital, Chargetrip is backed by world-class investors HSBC Asset Management, Riverstone, Blue Bear Capital, Vindeggen, and Axel Springer Porsche. Learn more at https://chargetrip.com.

About ev.energy

ev.energy is a Certified B Corporation® with a mission to make EV charging greener, cheaper, and smarter for utilities and their customers. Its end-to-end software platform wirelessly connects to a range of electric vehicles and chargers to intelligently manage EV charging while working with utilities to put cash back in customers’ wallets for charging at grid-friendly times. With a global base of utility, vehicle OEM and EVSE partners, ev.energy manages more than 100,000 EVs on its platform each day. Learn more at https://ev.energy/business.

Forward-Looking Statements made by WEX

This press release contains forward-looking statements, including statements regarding expectations for future investments. Any statements that are not statements of historical facts may be deemed to be forward-looking statements. When used in this release, the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “seeks,”“will”, and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially, including: WEX’s ability and timing to execute on any such investments and the success of such investments, as well as other risks and uncertainties identified in Item 1A of WEX’s annual report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission on February 28, 2023 and the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, filed with the SEC on April 27, 2023 and any subsequent SEC filings. WEX’s forward-looking statements do not reflect the potential future impact of any alliance, merger, acquisition, disposition or stock repurchases. The forward-looking statements speak only as of the date of this release and undue reliance should not be placed on these statements. WEX disclaims any obligation to update any forward-looking statements as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230726351925/en/

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WEX

Julie Lydon, 415-816-9397

[email protected]

Investor:

WEX

Steve Elder, 207-523-7769

[email protected]

KEYWORDS: Europe United States North America Maine

INDUSTRY KEYWORDS: Alternative Vehicles/Fuels Technology EV/Electric Vehicles Automotive Other Energy Electronic Commerce Software Energy Data Management Fleet Management

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July 27, 2023 6:56 am

Ault Alliance Subsidiary, Sentinum, Inc., Launches Colocation and Hosting Services for AI Ecosystems and Other Businesses with High-Density Power Needs

Ault Alliance Subsidiary, Sentinum, Inc., Launches Colocation and Hosting Services for AI Ecosystems and Other Businesses with High-Density Power Needs

LAS VEGAS–(BUSINESS WIRE)–Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company (“Ault Alliance” or the “Company”) today announced the launch of its tailored colocation and hosting services for the emerging artificial intelligence (“AI”) ecosystems and other industries through Sentinum, Inc., formerly known as BitNile, Inc. (“Sentinum”), one of its wholly owned subsidiaries. Sentinum will offer these services from its Michigan data center (the “Michigan Data Center”) and plans to expand such operations in Montana and Texas. Additional details are available at www.sentinum.ai.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230727958774/en/

Sentinum provides colocation facilities with adjustable space options, enabling cost-effective business growth. Sentinum is committed to providing physically and logically secure operations to its customers through multi-level electronic access, including biometrics and sophisticated surveillance systems. Sentinum’s on-site technical support team is ready to assist its customers, ensuring smooth operations.

Jay Looney, Sentinum’s Chief Operating Officer, commented on the launch, “Although our data center has mainly served Bitcoin mining up until now, we see a substantial demand for hosting and full-service operations in AI and cloud computing sectors. Our vision at Sentinum is clear: We aim to deliver trustworthy, scalable, and safe hosting solutions for AI-centric businesses and others in need of high-density power. As we plan our expansion from Michigan to Montana and Texas, our commitment to unparalleled security and service availability is strong.”

Milton “Todd” Ault, III, the Company’s Executive Chairman added, “We are fortunate to have an accomplished data center expert in Jay, who joined our team earlier this year. I anticipate that Jay will have a tremendous impact on our continued success as we develop the build-out of our data center operations. I’m confident that Jay will focus on strategic and profitable expansion that will lead to our long-term stability and enhanced stockholder value.”

Michigan Data Center

Alliance Cloud Services, LLC (“ACS”), a wholly owned subsidiary of Sentinum, owns and operates the Michigan Data Center, a 617,000 square foot energy-efficient facility, that boasts a power capacity of 28 megawatts (“MW”), 85% of which is green energy. The Michigan Data Center has the ability to scale to 300 MW, which would require additional capital and new power agreements with the existing utility company. ACS intends to undertake this expansion within the foreseeable future, subject to available financing and other conditions.

Montana Data Center

Sentinum’s wholly owned subsidiary, BNI Montana, LLC, has acquired land lease and power agreements to develop operational data centers in Montana, primarily for Bitcoin mining operations. The anticipated initial power capacity is up to 20 MW, for which construction and build-out have just been initiated. We believe the site has the potential to significantly expand, though a load feasibility study would need to be performed to determine the maximum expansion ability, and we would also require additional financial resources in order to increase the capacity.

Texas Data Center

The Company has agreements to operate a data center operation in West Texas. The current substation capacity is 12MW with the ability to scale to 78 MW through additional capital expenditures. We anticipate construction and build-out to begin within the next couple of months.

Leadership

Jay Looney, Sentinum’s Chief Operating Officer, with over 30 years of IT experience emphasizing data center services, is responsible for managing the data centers and associated services across all Ault Alliance companies. He has a global services perspective from time spent with Hewlett Packard and Accenture, was the founder and managing partner of a Texas based colocation/managed services company culminating in a successful exit for its equity holders.

For more information on Ault Alliance and its subsidiaries, Ault Alliance recommends that stockholders, investors, and any other interested parties read Ault Alliance’s public filings and press releases available under the Investor Relations section at www.Ault.com or available at www.sec.gov.

About Ault Alliance, Inc.

Ault Alliance, Inc. is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through its wholly and majority-owned subsidiaries and strategic investments, Ault Alliance owns and operates a data center at which it mines Bitcoin and provides mission-critical products that support a diverse range of industries, including metaverse platform, oil exploration, crane services, defense/aerospace, industrial, automotive, medical/biopharma, consumer electronics, hotel operations and textiles. In addition, Ault Alliance extends credit to select entrepreneurial businesses through a licensed lending subsidiary. Ault Alliance’s headquarters are located at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141; www.Ault.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available at www.sec.gov and on the Company’s website at www.Ault.com.

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[email protected] or 1-888-753-2235

KEYWORDS: Nevada United States North America

INDUSTRY KEYWORDS: Data Management Technology Other Technology Software Networks Internet Hardware

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July 27, 2023 6:54 am

Mobileye Discloses Second Quarter 2023 Results, Updates Guidance and Provides Business Update

Mobileye Discloses Second Quarter 2023 Results, Updates Guidance and Provides Business Update

Revenue decreased 1% year over year to $454 million in the second quarter.

Operating Margin and Adjusted Operating Margin both improved meaningfully versus the first quarter of 2023.

Diluted EPS (GAAP) was $(0.04) and Adjusted Diluted EPS (Non-GAAP) was $0.17 in the second quarter of 2023.

Continued to execute on strategic collaboration with VW Group in the second quarter. Expanded future cloud-enhanced ADAS volumes, announced SuperVision design win with Porsche, and shipped Mobileye Drive self-driving systems to VW Commercial Vehicles to support global testing.

Generated net cash from operating activities of $197 million in the six months ended July 1, 2023. Our balance sheet is strong with $1.1 billion of cash and cash equivalents and zero debt as of July 1, 2023.

JERUSALEM–(BUSINESS WIRE)–
Mobileye Global Inc. (Nasdaq: MBLY) (“Mobileye”) today released its financial results for the three months ended July 1, 2023.

“The business again performed well in Q2. Operating margin improved as compared to the first quarter of 2023 despite relatively consistent revenue and we’re positioned well for the increased revenue growth in the 2nd half of 2023 indicated by our guidance,” said Mobileye President and CEO Prof. Amnon Shashua. “Future business highlights of the quarter included tangible evidence of the depth of our relationship with VW Group and an expansion of meaningful engagements for our advanced portfolio to 9 large OEMs. VW Group’s engagement across our entire product portfolio is quite encouraging as it underlines the scalability and flexibility of Mobileye’s technology platform and is a template we are pursuing with other key customers.”

Second Quarter 2023 Business Highlights

Overall business development pipeline activity remained robust in the quarter. Based on design wins achieved in the first half of 2023 and the current opportunity pipeline, we are on-track for 2023 to match or exceed the record design win activity generated in 2022 on a volume, revenue, and average system price basis¹.

We continued to expand on our Basic ADAS leadership position including a design win with a key customer that extended our relationship through 2035 (including meaningful Cloud-Enhanced ADAS volumes). Additionally, we leveraged our computer vision expertise and massive video database to achieve European certification of the first vision-only solution for use by OEMs to efficiently comply with the European General Safety Regulation (GSR) for Intelligent Speed Assist.

Our first major SuperVision design win beyond Geely Automotive Group was announced by Porsche during Q2 and we see excellent potential for similarly timed launches across other VW Group brands. Additionally, VW of America announced a testing program of Mobileye Drive-equipped VW ID.Buzz vehicles in Austin, Texas after only months of development and integration activity.

Near-term SuperVision launches remain on-track and we expect to have SuperVision equipped on 5 production vehicle models (including 2 models sold outside of China) by the first quarter of 2024 as compared to 1 vehicle model at the beginning of 2023. Additionally, the software roll-out of Navigate-on-Pilot functions for Zeekr vehicles is proceeding well and garnering accolades from key China media influencers, particularly for its assertive, efficient driving style.

Second Quarter 2023 Financial Summary and Key Highlights (Unaudited)

GAAP
U.S. dollars in millions	Q2 2023		Q2 2022		% Y/Y
Revenue	$	454	$	460	(1%)
Gross Profit	$	224	$	229	(2%)
Gross Margin		49%		50%	(44)bps
Operating Income (Loss)	$	(33)	$	10	(434) %
Operating Margin		(7) %		2 %	(953)bps
Net Income (Loss)	$	(28)	$	(7)	(306) %
EPS – Basic	$	(0.04)	$	(0.01)	(278) %
EPS – Diluted	$	(0.04)	$	(0.01)	(278) %

Non-GAAP
U.S. dollars in millions	Q2 2023		Q2 2022		% Y/Y
Revenue	$	454	$	460	(1%)
Adjusted Gross Profit	$	326	$	344	(5%)
Adjusted Gross Margin		72%		75%	(299)bps
Adjusted Operating Income	$	140	$	182	(23) %
Adjusted Operating Margin		31%		40%	(884)bps
Adjusted Net Income	$	135	$	156	(14%)
Adjusted EPS – Basic	$	0.17	$	0.21	(20%)
Adjusted EPS – Diluted	$	0.17	$	0.21	(20%)

Revenue of $454 million decreased 1% compared to the second quarter of 2022. As noted on our prior earnings call, de-stocking of SuperVision units at our main customer was a headwind in the quarter.

Average System Price² was $51.7 in the second quarter of 2023, which is largely flat on a year-over-year basis. Slightly higher core EyeQ prices were offset by slightly lower SuperVision volumes as a percentage of overall revenue.

Gross Margin in the second quarter of 2023 was largely consistent with the prior year period, as the downward impact of the increased cost of our EyeQ® chip (and associated price increase to customers), was mostly offset by lower impact of the cost attributable to amortization of intangible assets as a percentage of revenue.

Adjusted Gross Margin declined by 3 percentage points in the second quarter of 2023 as compared to the prior year period. The decrease was primarily due to the increased cost of our EyeQ® chip which was passed through as a price increase to customers as of the beginning of 2023 on a zero-margin basis.

Operating Margin declined by approximately 9 percentage points in the second quarter of 2023 as compared to the prior year period. The decrease was primarily due to an increase in research and development expenses which resulted in a year-over-year increase in operating expenses as a percentage of revenue.

Adjusted Operating Margin declined by approximately 9 percentage points in the second quarter of 2023 as compared to the prior year period. The decrease was mainly due to an increase in research and development expenses attributable to headcount, as well as lower Adjusted Gross Margin.

Operating cash flow for the six months ended July 1, 2023 was $197 million. This included significant outflows related to re-building our strategic inventory of EyeQ chips which had been significantly reduced during the semiconductor supply chain crisis in 2021 and 2022. Cash used in purchases of property and equipment was $58 million for that same period.

¹Mobileye’s revenue for the periods presented represent estimated volumes based on projections of future production volumes that were provided by our current and prospective OEMs at the time of sourcing the design wins for the models related to those design wins. See the disclaimer under the heading “Forward-Looking Statements” below for important limitations applicable to these estimates.

² Average System Price is calculated as the sum of revenue related to EyeQ® and SuperVision systems, divided by the number of systems shipped.

Updated Financial Guidance for the 2023 Fiscal Year

We are updating our guidance for the 2023 fiscal year we provided on April 27, 2023:

	Updated Guidance Full Year 2023				Previous Guidance Full Year 2023
U.S. dollars in millions	Low		High		Range
Revenue	$	2,065	$	2,114	$2,065 – 2,114
Operating Loss	$	(129)	$	(98)	$ (195) – (166)
Amortization of acquired intangible assets	$	474	$	474	$ 474
Share-based compensation expense	$	255	$	255	$ 269
Adjusted Operating Income	$	600	$	631	$548 – 577

Our updated guidance reflects an improvement in expected Operating Loss (GAAP) and Adjusted Operating Income (Non-GAAP), at the midpoint, of 37% and 9%, respectively. Lower than expected operating expenses, both in Q2 and second half of 2023, are primarily being driven by certain macro factors, higher-than-expected non-recurring engineering (“NRE”) reimbursements, a modest shift in the timing of occupation of the new Jerusalem campus, and ongoing initiatives to improve the efficiency of R&D in certain areas. Our revenue guidance remains consistent with the guidance provided on April 27, 2023 and, at the midpoint, implies 16% growth in the 2nd half of 2023 as compared to the 2nd half of 2022.

This information reflects Mobileye’s expectations for Revenue, Operating Loss and Adjusted Operating Income results for the year ending December 30, 2023. We believe Adjusted Operating Income (a non-GAAP metric) is an appropriate metric as it excludes significant non-cash expenses including: 1) Amortization charges related to intangible assets consisting of developed technology, customer relationships, and brands as a result of Intel’s acquisition of Mobileye in 2017 and the acquisition of Moovit in 2020; and, 2) Share-based compensation expense. These statements represent forward-looking information and may not represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the Forward-Looking Statements section of this release.

Earnings Conference Call Webcast Information

Mobileye will host a conference call today, July 27, 2023, at 8:00am ET (3:00pm IT) to review its results and provide a general business update. The conference call will be accessible live via a webcast on Mobileye’s investor relations site, which can be found at ir.mobileye.com, and a replay of the webcast will be made available shortly after the event’s conclusion.

Non-GAAP Financial Measures

This press release contains Adjusted Gross Profit and Margin, Adjusted Operating Income and Margin, Adjusted Net Income and Adjusted EPS (Earnings Per Share), which are financial measures not presented in accordance with GAAP. We define Adjusted Gross Profit as gross profit presented in accordance with GAAP, excluding amortization of acquisition related intangibles and share-based compensation expense. Adjusted Gross Margin is calculated as Adjusted Gross Profit divided by total revenue. We define Adjusted Operating Income as operating loss presented in accordance with GAAP, adjusted to exclude amortization of acquisition related intangibles, share-based compensation expenses and expenses related to our initial public offering that was completed on October 28, 2022 (the “Mobileye IPO”). Operating margin is calculated as operating loss divided by total revenue, and Adjusted Operating Margin is calculated as Adjusted Operating Income divided by total revenue. We define Adjusted Net Income as net loss presented in accordance with GAAP, adjusted to exclude amortization of acquisition related intangibles, share-based compensation expense, and expenses related to the Mobileye IPO, as well as the related income tax effects. Income tax effects have been calculated using the applicable statutory tax rate for each adjustment taking into consideration the associated valuation allowance impacts. The adjustment for income tax effects consists primarily of the deferred tax impact of the amortization of acquired intangible assets. Adjusted Basic EPS is calculated by dividing Adjusted Net Income for the period by the weighted-average number of common shares outstanding during the period. Adjusted Diluted EPS is calculated by dividing Adjusted Net Income by the weighted-average number of common shares outstanding during the period, while giving effect to all potentially dilutive common shares to the extent they are dilutive.

We use such non-GAAP financial measures to make strategic decisions, establish business plans and forecasts, identify trends affecting our business, and evaluate performance. For example, we use these non-GAAP financial measures to assess our pricing and sourcing strategy, in the preparation of our annual operating budget, and as a measure of our operating performance. We believe that these non-GAAP financial measures, when taken collectively, may be helpful to investors because they allow for greater transparency into what measures our management uses in operating our business and measuring our performance, and enable comparison of financial trends and results between periods where items may vary independent of business performance. The non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure presented in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.

About Mobileye Global Inc.

Mobileye (Nasdaq: MBLY) leads the mobility revolution with its autonomous driving and driver-assistance technologies, harnessing world-renowned expertise in computer vision, artificial intelligence, mapping, and data analysis. Since its founding in 1999, Mobileye has pioneered such groundbreaking technologies as REM™ crowdsourced mapping, True Redundancy™ sensing, and Responsibility Sensitive Safety (RSS). These technologies are driving the ADAS and AV fields towards the future of mobility – enabling self-driving vehicles and mobility solutions, powering industry-leading advanced driver-assistance systems and delivering valuable intelligence to optimize mobility infrastructure. To date, more than 150 million vehicles worldwide have been built with Mobileye technology inside. In 2022 Mobileye listed as an independent company separate from Intel (Nasdaq: INTC), which retains majority ownership. For more information, visit https://www.mobileye.com.

“Mobileye,” the Mobileye logo and Mobileye product names are registered trademarks of Mobileye Global. All other marks are the property of their respective owners.

Forward-Looking Statements

Mobileye’s business outlook, guidance and other statements in this release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including Mobileye’s 2023 full-year guidance, projected future revenue and descriptions of our business plan and strategies. These statements often include words such as “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast,” or the negative of these terms, and other similar expressions, although not all forward-looking statements contain these words. We base these forward-looking statements or projections, including Mobileye’s full-year guidance, on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances and at such time. You should understand that these statements are not guarantees of performance or results. The forward-looking statements and projections are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements or projections. Although we believe that these forward-looking statements and projections are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those expressed in the forward-looking statements and projections.

Important factors that may materially affect such forward-looking statements and projections include the following: future business, social and environmental performance, goals and measures; our anticipated growth prospects and trends in markets and industries relevant to our business; business and investment plans; expectations about our ability to maintain or enhance our leadership position in the markets in which we participate; future consumer demand and behavior; future products and technology, and the expected availability and benefits of such products and technology; development of regulatory frameworks for current and future technology; projected cost and pricing trends; future production capacity and product supply; potential future benefits and competitive advantages associated with our technologies and architecture and the data we have accumulated; the future purchase, use and availability of products, components and services supplied by third parties, including third-party IP and manufacturing services; uncertain events or assumptions, including statements relating to our estimated vehicle production and market opportunity, potential production volumes associated with design wins and other characterizations of future events or circumstances; future responses to and effects of the COVID-19 pandemic; availability, uses, sufficiency and cost of capital and capital resources, including expected returns to stockholders such as dividends, and the expected timing of future dividends; tax- and accounting-related expectations.

The estimates included herein are based on projections of future production volumes that were provided by our current and prospective OEMs at the time of sourcing the design wins for the models related to those design wins. For the purpose of these estimates, we estimated sales prices based on our management’s estimates for the applicable product bundles and periods. Achieving design wins is not a guarantee of revenue, and our sales may not correlate with the achievement of additional design wins. Moreover, our pricing estimates are made at the time of a request for quotation by an OEM (in the case of estimates related to contracted customers), so that worsening market or other conditions between the time of a request for quotation and an order for our solutions may require us to sell our solutions for a lower price than we initial expected. These estimates may deviate from actual production volumes and sale prices (which may be higher or lower than the estimates) and the amounts included for prospective but uncontracted production volumes may never be achieved. Accordingly, these estimations are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements or projections.

Detailed information regarding these and other factors that could affect Mobileye’s business and results is included in Mobileye’s SEC filings, including the company’s Annual Report on Form 10-K for the year ended December 31, 2022, particularly in the section entitled “Item 1A. Risk Factors”. Copies of these filings may be obtained by visiting our Investor Relations website at ir.mobileye.com or the SEC’s website at www.sec.gov.

Second Quarter 2023 Financial Results

Mobileye Global Inc.

Condensed Consolidated Statements of Operations (unaudited)

	Three Months Ended				Six Months Ended
U.S. dollars in millions, except share and per share amounts	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Revenue	$	454	$	460	$	912	$	854
Cost of revenue		230		231		481		449
Gross profit		224		229		431		405
Research and development, net		211		179		446		359
Sales and marketing		29		29		62		64
General and administrative		17		11		37		18
Total operating expenses		257		219		545		441
Operating income (loss)		(33)		10		(114)		(36)
Interest income with related party		—		3		—		4
Interest expense with related party		—		(9)		—		(9)
Other financial income (expense), net		15		4		23		5
Income (loss) before income taxes		(18)		8		(91)		(36)
Benefit (provision) for income taxes		(10)		(15)		(16)		(31)
Net income (loss)	$	(28)	$	(7)	$	(107)	$	(67)

Earnings (loss) per share:
Basic and diluted	$	(0.04)	$	(0.01)	$	(0.13)	$	(0.09)
Weighted-average number of shares used in computation of earnings (loss) per share (in millions):
Basic and diluted		805		750		803		750

Mobileye Global Inc.

Condensed Consolidated Balance sheets (unaudited)

U.S. dollars in millions	July 1, 2023		December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	1,142	$	1,024
Trade accounts receivable, net		240		269
Inventories		263		113
Other current assets		72		110
Total current assets		1,717		1,516
Non-current assets:
Property and equipment, net		422		384
Intangible assets, net		2,276		2,527
Goodwill		10,895		10,895
Other long-term assets		120		119
Total non-current assets		13,713		13,925
TOTAL ASSETS	$	15,430	$	15,441
Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses	$	208	$	189
Employee related accrued expenses		87		88
Related party payable		54		73
Other current liabilities		32		34
Total current liabilities		381		384
Non-current liabilities:
Long-term employee benefits		55		56
Deferred tax liabilities		152		162
Other long-term liabilities		42		45
Total non-current liabilities		249		263
TOTAL LIABILITIES	$	630	$	647
TOTAL EQUITY		14,800		14,794
TOTAL LIABILITIES AND EQUITY	$	15,430	$	15,441

Mobileye Global Inc.

Condensed Consolidated Cash Flows (unaudited)

	Six Months Ended
U.S. dollars in millions	July 1, 2023		July 2, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(107)	$	(67)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation of property and equipment		15		10
Share-based compensation		127		76
Amortization of intangible assets		251		282
Exchange rate differences on cash and cash equivalents		5		3
Deferred income taxes		(10)		2
Interest on Dividend Note to related party, net		—		9
Interest with related party, net		16		27
Other		—		(3)
Changes in operating assets and liabilities:
Decrease (increase) in trade accounts receivable		29		(59)
Decrease (increase) in other current assets		21		29
Decrease (increase) in inventories		(150)		(1)
Increase (decrease) in accounts payable, accrued expenses and related party payable		3		(5)
Increase (decrease) in employee-related accrued expenses and long term benefits		(2)		(81)
Increase (decrease) in other current liabilities		(2)		(3)
Decrease (increase) in other long term assets		1		17
Increase (decrease) in long-term liabilities		—		(3)
Net cash provided by operating activities		197		233
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment		(58)		(53)
Repayment of loan due from related party		—		733
Issuance of loan to related party		—		(336)
Net cash provided by (used in) investing activities		(58)		344
CASH FLOWS FROM FINANCING ACTIVITIES
Net transfers from Parent		—		121
Dividend paid		—		(336)
Share-based compensation recharge		(12)		(186)
Deferred offering costs		—		(14)
Net cash provided by (used in) financing activities		(12)		(415)
Effect of foreign exchange rate changes on cash and cash equivalents		(5)		(3)
Increase in cash, cash equivalents and restricted cash		122		159
Balance of cash, cash equivalents and restricted cash, at beginning of year		1,035		625
Balance of cash, cash equivalents and restricted cash, at end of period	$	1,157	$	784

Mobileye Global Inc.

Reconciliation of GAAP Gross Profit and Margin to Non-GAAP Adjusted Gross Profit and Margin³ (unaudited)

	Three Months Ended						Six Months Ended
U.S. dollars in millions	July 1, 2023			July 2, 2022			July 1, 2023			July 2, 2022
	Amount		% of Revenue	Amount		% of Revenue	Amount		% of Revenue	Amount		% of Revenue
Gross Profit	$	224	49 %	$	229	50 %	$	431	47 %	$	405	47 %
Add: Amortization of acquired intangible assets		101	22 %		115	25 %		217	24 %		240	28 %
Add: Share-based compensation expense		1	— %		—	— %		2	— %		—	— %
Adjusted Gross Profit	$	326	72 %	$	344	75 %	$	650	71 %	$	645	76 %

³Adjusted gross margin is calculated as adjusted gross profit as a percentage of revenue

Mobileye Global Inc.

Reconciliation of GAAP Operating Income (loss) and Margin to Non-GAAP Adjusted Operating Income and Margin⁴ (unaudited)

	Three Months Ended						Six Months Ended
U.S. dollars in millions	July 1, 2023			July 2, 2022			July 1, 2023			July 2, 2022
	Amount		% of Revenue	Amount		% of Revenue	Amount		% of Revenue	Amount		% of Revenue
Operating Income (Loss)	$	(33)	(7%)	$	10	2%	$	(114)	(13%)	$	(36)	(4%)
Add: Amortization of acquired intangible assets		118	26%		133	29%		251	28%		282	33%
Add: Share-based compensation expense		55	12%		36	8%		127	14%		76	9%
Add: Expenses related to the IPO		—	—%		3	1%		—	—%		3	—%
Adjusted Operating Income	$	140	31%	$	182	40%	$	264	29%	$	325	38%

⁴Adjusted operating margin is calculated as adjusted operating income as a percentage of revenue

Mobileye Global Inc.

Reconciliation of GAAP Net Income (loss) to Non-GAAP Adjusted Net Income (unaudited)

	Three Months Ended						Six Months Ended
U.S. dollars in millions	July 1, 2023			July 2, 2022			July 1, 2023			July 2, 2022
	Amount		% of Revenue	Amount		% of Revenue	Amount		% of Revenue	Amount		% of Revenue
Net Income (Loss)	$	(28)	(6%)	$	(7)	(2%)	$	(107)	(12%)	$	(67)	(8%)
Add: Amortization of acquired intangible assets		118	26%		133	29%		251	28%		282	33%
Add: Share-based compensation expense		55	12%		36	8%		127	14%		76	9%
Add: Expenses related to the Mobileye IPO		—	—%		3	1%		—	—%		3	—%
Less: Income tax effects		(10)	(2%)		(9)	(2%)		(21)	(2%)		(18)	(2%)
Adjusted Net Income	$	135	30%	$	156	34%	$	250	27%	$	276	32%

Supplemental Information – Average System Price (unaudited)

	Q2 2022		Q3 2022		Q4 2022		Q1 2023		Q2 2023
EyeQ and SuperVision revenue (U.S. dollars in millions)	$	441	$	432	$	543	$	438	$	430
Number of systems shipped (in millions)		8.5		8.2		9.7		8.1		8.3
Average system price (U.S. dollars)	$	52.0	$	53.0	$	56.2	$	53.9	$	51.7

View source version on businesswire.com: https://www.businesswire.com/news/home/20230727174747/en/

Dan Galves

Investor Relations

[email protected]

Justin Hyde

Media Relations

[email protected]

KEYWORDS: Israel Middle East

INDUSTRY KEYWORDS: Automotive Manufacturing Automotive Technology Manufacturing Other Energy Other Technology Autonomous Driving/Vehicles Other Manufacturing Artificial Intelligence Alternative Energy Energy

MEDIA:

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July 27, 2023 6:52 am

InfuSystem to Report Second Quarter 2023 Financial Results on August 3, 2023

InfuSystem to Report Second Quarter 2023 Financial Results on August 3, 2023

Investor Conference Call to be held 9:00 a.m. Eastern Time

ROCHESTER HILLS, Mich.–(BUSINESS WIRE)–
InfuSystem Holdings, Inc. (NYSE American: INFU) (“InfuSystem” or the “Company”), a leading national health care service provider, facilitating outpatient care for durable medical equipment manufacturers and health care providers, announced today it will issue second quarter 2023 financial results on Thursday, August 3, 2023, before the market opens.

The Company will also conduct a conference call for all interested parties on Thursday, August 3, 2023 at 9:00 a.m. Eastern Time to discuss its financial results.

To participate in this call, please dial (833) 366-1127 or (412) 902-6773, or listen via a live webcast, which is available in the Investors section of the Company’s website at https://ir.infusystem.com/. A replay of the call will be available by visiting https://ir.infusystem.com/ for the next 90 days or by calling (877) 344-7529 or (412) 317-0088, replay access code 9921883 through Thursday, August 10, 2023.

About InfuSystem Holdings, Inc.

InfuSystem Holdings, Inc. (NYSE American: INFU), is a leading national health care service provider, facilitating outpatient care for durable medical equipment manufacturers and health care providers. INFU services are provided under a two-platform model. The lead platform is Patient Services (formerly Integrated Therapy Services (“ITS”)), providing the last-mile solution for clinic-to-home healthcare where the continuing treatment involves complex durable medical equipment and services. The Patient Services segment is comprised of Oncology, Pain Management, Wound Therapy and Lymphedema businesses. The second platform, Device Solutions (formerly Durable Medical Equipment Services (“DME Services”)), supports the Patient Services platform and leverages strong service orientation to win incremental business from its direct payer clients. The Device Solutions segment is comprised of direct payer rentals, pump and consumable sales, and biomedical services and repair. Headquartered in Rochester Hills, Michigan, the Company delivers local, field-based customer support and also operates Centers of Excellence in Michigan, Kansas, California, Massachusetts, Texas and Ontario, Canada.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230727613947/en/

Joe Dorame, Joe Diaz & Robert Blum

Lytham Partners, LLC

602-889-9700

KEYWORDS: Michigan United States North America

INDUSTRY KEYWORDS: Other Professional Services Practice Management Medical Supplies General Health Health Medical Devices Professional Services Other Health

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July 27, 2023 6:45 am

Annexon Biosciences Strengthens Leadership Team with Appointment of Jamie Dananberg, M.D., as Chief Medical Officer

BRISBANE, Calif., July 27, 2023 (GLOBE NEWSWIRE) — Annexon, Inc. (“Annexon”) (Nasdaq: ANNX), a clinical-stage biopharmaceutical company developing a new class of complement-based medicines for patients with classical complement-mediated autoimmune, neurodegenerative and ophthalmic disorders, today announced the appointment of Jamie Dananberg, M.D., as chief medical officer.

“We are delighted to join forces with Jamie during this exciting time for Annexon. He will add significant translational and development expertise to our platform approach that has demonstrated robust functional benefit across several disorders and is well positioned to shift the treatment paradigm for complement-mediated diseases,” said Douglas Love, president and chief executive officer of Annexon.

“I am impressed with the data demonstrated to date by Annexon’s upstream complement approach which has the potential to benefit millions of patients impacted with classical complement-mediated disorders,” said Dr. Dananberg. “With data supporting proof of concept across multiple diseases, several advanced-stage programs at key inflection points, additional data readouts on the horizon, and an outstanding collection of experienced drug developers, it’s an exciting time to join the organization and build upon the tremendous work accomplished to date.”

Dr. Dananberg joins Annexon with more than 20 years of drug development experience across a variety of therapeutic areas in the pharmaceutical and biotechnology industries. Most recently, he served as the chief medical officer for UNITY Biotechnology, where as one of its earliest employees, he built the medical and broader development organization. Prior to UNITY, Dr. Dananberg served as executive vice president at Takeda Pharmaceuticals in several roles including head, cardiovascular and metabolism therapeutic area, and as the head of both the therapeutic areas group and experimental/translational medicine. Before joining Takeda, he spent 16 years at Eli Lilly & Co. where he brought more than 100 programs from discovery to development, leading and supporting efforts through all phases, including the launches of multiple commercial products. Before joining Lilly, he practiced medicine in endocrinology and metabolism and ran a basic science laboratory at the University of Michigan. Dr. Dananberg received his B.S. and M.D. degrees from Tufts University.

About Annexon

Annexon (Nasdaq: ANNX) is a clinical-stage biopharmaceutical company seeking to bring game-changing medicines to patients with classical complement-mediated diseases of the body, brain and eye. The classical complement pathway within the immune system, when overactivated, drives inflammation in a host of autoimmune, neurodegenerative and ophthalmic diseases. Annexon is advancing a new class of complement medicines targeting the early classical cascade and all downstream pathway components that contribute to disease, while selectively preserving the beneficial immune functions of other complement pathways. Annexon is rigorously developing a pipeline of diversified product candidates across multiple mid- to late-stage clinical trials, with clinical data anticipated throughout 2023 and beyond.

Contacts:

Investors:
Chelcie Lister
THRUST Strategic Communications
[email protected]

Media:
Sheryl Seapy
Real Chemistry
949-903-4750
[email protected]