Technology
TriNet Announces Fourth Quarter, Fiscal Year 2023 Results, and Dividend Initiation
Published
7 months agoon
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2% Growth in Total Revenues to $1.2 billion for the Fourth Quarter of 2023
1% Growth in Total Revenues to $4.9 billion for Fiscal Year 2023
68% Growth in Earnings per Share and 44% Growth in Adjusted Earnings per Share for the Fourth Quarter of 2023
17% Growth in Earnings per Share and 10% Growth in Adjusted Earnings per Share for Fiscal Year 2023
Initiating Inaugural Quarterly Dividend
DUBLIN, Calif., Feb. 15, 2024 /PRNewswire/ — TriNet Group, Inc. (NYSE: TNET), a leading provider of comprehensive and flexible human capital management (HCM) solutions for small and medium-size businesses (SMBs), today announced financial results for the fourth quarter ended December 31, 2023. The fourth quarter highlights below include non-GAAP financial measures which are reconciled later in this release.
Fourth quarter highlights include:
Total revenues increased 2% to $1.2 billion compared to the same period last year.Professional service revenues were flat at $189 million compared to the same period last year.Net income was $67 million, or $1.31 per diluted share, compared to net income of $49 million, or $0.78 per diluted share, in the same period last year.Adjusted Net Income was $82 million, or $1.60 per diluted share, compared to Adjusted Net Income of $71 million, or $1.11 per diluted share, in the same period last year.Adjusted EBITDA was $140 million, representing an Adjusted EBITDA Margin of 11.2%, compared to Adjusted EBITDA of $111 million, representing an Adjusted EBITDA Margin of 9.0% in the same period last year.Average Worksite Employees (WSEs) decreased 3% as compared to the same period last year and increased 1% as compared to the previous quarter, to approximately 338,000.HRIS Cloud Services Revenues decreased 14% to $12 million compared to the same period last year.Average HRIS Users decreased 14% as compared to the same period last year, to approximately 204,000.
Full year highlights include:
Total revenues increased 1% to $4.9 billion as compared to 2022.Professional service revenues were approximately flat at $756 million as compared to 2022.Net income was $375 million or $6.56 per diluted share, compared to net income of $355 million or $5.61 per diluted share, in 2022.Adjusted Net income was $446 million or $7.81 per diluted share, compared to net income of $448 million or $7.07 per diluted share, in 2022.Adjusted EBITDA was $697 million, representing an Adjusted EBITDA Margin of 14.2%, compared to Adjusted EBITDA of $688 million, representing an Adjusted EBITDA Margin of 14.1% in 2022.Average Worksite Employees (WSEs) decreased by 5% compared to 2022, to approximately 331,000.HRIS Cloud Services Revenues increased 16% to $52 million compared to 2022.Average HRIS Users decreased 13% compared to 2022, to approximately 215,000.
Dividend:
TriNet announces quarterly dividend of $0.25 per share.Ex-Dividend Date March 29, 2024, Dividend Record Date April 1, 2024, Dividend Payment Date April 22, 2024.
Leadership Change (for more information, please visit investor.trinet.com):
Burton M. Goldfield announced his intent to retire today concluding a successful 15-year career as President & CEO of TriNet. He will continue as a special advisor to the company through March 31, 2025.
“Throughout 2023 in what proved to be a challenging economic environment, TriNet focused its execution on the areas within our control,” said Burton M. Goldfield, TriNet’s President and CEO. “Through our investment in sales, we accelerated our new sales in the fourth quarter, and we just completed our best January ever. We benefited from strong customer retention as we kept our customers at the center of everything we do. Finally, we launched our inaugural dividend completing an extraordinary year of capital allocation.”
He continued, “As just announced, I am retiring and transitioning the leadership of TriNet to Mike Simonds, and I have every confidence in Mike to keep moving the company forward. I am very proud of what we created during my more than 15 years as President and CEO of TriNet. My goal was to create an enduring company, and I believe that TriNet’s best days are still ahead.”
“On behalf of the board, I would like to thank Burton for his incredible leadership,” said TriNet Chairman, David Hodgson. “We are thrilled to have Mike join TriNet as President and CEO. We have confidence that he is the right person to lead TriNet as it continues its growth.”
“I know I speak for all TriNet colleagues when I thank Burton for his integral role in building TriNet into what it has become today,” said Kelly Tuminelli, TriNet’s Chief Financial Officer. “TriNet executed extraordinarily well throughout 2023 managing expenses prudently while investing in sales and service and executing against our capital plan which has culminated in our announced inaugural dividend. We look forward to our continued strong execution in 2024, ensuring we are there for our customers, colleagues, and stockholders.”
Dividend Announcement
On February 12, 2024, TriNet’s Board of Director’s approved a dividend of $0.25 per share. TriNet’s stock will have an Ex-Dividend Date of March 29, 2024, a Dividend Record Date of April 1, 2024, and a Dividend Payment Date of April 22, 2024.
First Quarter and Full-Year 2024 Guidance
In addition to announcing our fourth quarter 2023 results, we provide our first quarter and full-year 2024 guidance. Non-GAAP financial measures are reconciled later in this release. Percentages reflect the increase or (decrease) from the prior year quarter and prior year end.
Q1 2024
Full Year 2024
Low
High
Low
High
Total Revenues
— %
3 %
(1) %
4 %
Professional Service Revenues
2 %
8 %
1 %
5 %
Insurance Cost Ratio
86.5 %
82.5 %
88.5 %
86.5 %
Diluted net income per share of common stock
$ 1.82
$ 2.54
$ 4.57
$ 6.08
Adjusted Net Income per share – diluted
$ 2.10
$ 2.85
$ 5.80
$ 7.35
Annual Report on Form 10-K
We anticipate filing our Annual Report on Form 10-K (“Form 10-K”) for the year ended December 31, 2023 with the U.S. Securities and Exchange Commission (SEC) and making it available at http://www.trinet.com today, February 15, 2024. This press release should be read in conjunction with the Form 10-K and the related Notes to Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in the Form 10-K.
Earnings Conference Call and Audio Webcast
TriNet will host a conference call at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its fourth quarter results for 2023 and provide first quarter and full-year financial guidance for 2024. TriNet encourages participants to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. To pre-register, go to: https://dpregister.com/sreg/10185965/fb77e71f5d. For those who would like to join the call but have not pre-registered, they can do so by dialing +1 (412) 317-5426 and requesting the “TriNet Conference Call.” The live webcast of the conference call can be accessed on the Investor Relations section of TriNet’s website at https://investor.trinet.com. Participants can pre-register for the webcast by going to: https://events.q4inc.com/attendee/789681153. A replay of the webcast will be available on this website for approximately one year. A telephonic replay will be available for one week following the conference call at +1 (412) 317-0088 conference ID: 4058379.
About TriNet
TriNet provides small and medium-size businesses (SMBs) with full-service industry-specific HR solutions, providing both professional employer organization (PEO) and human resources information system (HRIS) services. TriNet offers access to human capital expertise, benefits, risk mitigation, compliance, payroll, and R&D tax credit services, all enabled by industry-leading technology. TriNet’s suite of products also includes services and software-based solutions to help streamline workflows by connecting HR, benefits, employee engagement, payroll and time & attendance. Rooted in more than 30 years of supporting entrepreneurs and adapting to the ever-changing modern workplace, TriNet empowers SMBs to focus on what matters most – growing their business and enabling their people For more information, please visit TriNet.com or follow us on Facebook, LinkedIn and Instagram.
Use of Non-GAAP Financial Measures
Reconciliations of non-GAAP financial measures to TriNet’s financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section titled “Non-GAAP Financial Measures.”
Forward-Looking Statements
This press release contains, and statements made during the above referenced conference call will contain, statements that are not historical in nature, are predictive in nature, or that depend upon or refer to future events or conditions or otherwise contain forward-looking statements within the meaning of Section 21 of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including, among other things, TriNet’s expectations and assumptions regarding: TriNet’s financial guidance for the fourth quarter and full-year 2023 and the underlying assumptions; TriNet’s future financial performance and long-term growth; the continued value to customers and stockholders of TriNet’s product offerings; our ability to continue to grow new client sales, client tenure and improve retention, including through product and technological innovation; and the ability of our solutions to meet all client needs throughout their business cycle. Forward-looking statements are often identified by the use of words such as, but not limited to, “ability,” “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “guidance,” “impact,” “intend,” “may,” “plan,” “predict,” “project,” “seek,” “should,” “strategy,” “target,” “value,” “will,” “would” and similar expressions or variations intended to identify forward-looking statements. These statements are not guarantees of future performance but are based on management’s expectations as of the date hereof and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from our current expectations and any past or future results, performance or achievements expressed or implied by the forward-looking statements. Investors are cautioned not to place undue reliance upon any forward-looking statements.
Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include: our ability to manage unexpected changes in workers’ compensation and health insurance claims and costs by worksite employees; our ability to mitigate the unique business risks we face as a co-employer; the effects of volatility in the financial and economic environment on the businesses that make up our client base; loss of clients for reasons beyond our control and the short-term contracts we typically use with our clients; the impact of regional or industry-specific economic and health factors on our operations; the impact of failures or limitations in the business systems and service centers we rely upon; the impact of discontinuing our discretionary credits on our business and client loyalty and retention; changes in our insurance coverage or our relationships with key insurance carriers; our ability to improve our services and technology to satisfy client and regulatory expectations; our ability to effectively integrate businesses we have acquired or may acquire in the future; our ability to effectively manage and improve our operational effectiveness and resiliency; our ability to attract and retain qualified personnel; the effects of increased competition and our ability to compete effectively; the impact on our business of cyber-attacks, breaches, disclosures and other data-related incidents; our ability to protect against and remediate cyber-attacks, breaches, disclosures and other data-related incidents, whether intentional or inadvertent and whether attributable to us or our service providers; our ability to comply with constantly evolving data privacy and security laws; our ability to manage changes in, uncertainty regarding, or adverse application of the complex laws and regulations that govern our business; changing laws and regulations governing health insurance and employee benefits; our ability to be recognized as an employer of worksite employees and for our benefits plans to satisfy all requirements under federal and state regulations; changes in the laws and regulations that govern what it means to be an employer, employee or independent contractor; the impact of new and changing laws regarding remote work; our ability to comply with the licensing requirements that govern our HCM solutions; the outcome of existing and future legal and tax proceedings; fluctuation in our results of operations and stock price due to factors outside of our control; our ability to comply with the restrictions of our credit facility and meet our debt obligations; and the impact of concentrated ownership in our stock by Atairos and other large stockholders. Any of these factors could cause our actual results to differ materially from our anticipated results.
Further information on risks that could affect TriNet’s results is included in our filings with the SEC, including under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on our investor relations website at http://investor.trinet.com and on the SEC website at www.sec.gov. Copies of these filings are also available by contacting TriNet Corporation’s Investor Relations Department at (510) 875-7201. Except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements in this press release, and any forward-looking statements in this press release speak only as of the date of this press release. In addition, we do not assume any obligation, and do not intend, to update any of our forward-looking statements, except as required by law.
Contacts:
Investors:
Media:
Alex Bauer
Renee Brotherton / Josh Gross
TriNet
TriNet
(510) 875-7201
(408) 646-5103
Key Financial and Operating Metrics
We regularly review certain key financial and operating metrics to evaluate growth trends, measure our performance and make strategic decisions. These key financial and operating metrics may change over time. Our key financial and operating metrics for the periods presented were as follows:
Three Months Ended December 31,
Year Ended December 31,
(in millions, except per share and Operating Metrics data)
2023
2022
% Change
2023
2022
% Change
Income Statement Data:
Total revenues
$ 1,245
$ 1,226
2
%
$ 4,922
$ 4,885
1
%
Operating income
86
56
54
469
499
(6)
Net income
67
49
37
375
355
6
Diluted net income per share of common stock
1.31
0.78
68
6.56
5.61
17
Non-GAAP measures (1):
Adjusted EBITDA
140
111
26
697
688
1
Adjusted Net income
82
71
15
446
448
—
Operating Metrics:
Insurance Cost Ratio
87 %
88 %
(1)
%
84 %
84 %
—
%
Average WSEs (2)
337,924
347,671
(3)
331,423
348,543
(5)
Total WSEs at period end (2)
347,542
348,652
—
347,542
348,652
—
Average HRIS Users (3)
204,006
238,865
(15)
215,295
248,496
(13)
(1)
Refer to Non-GAAP measures definitions and reconciliations from GAAP measures under the heading “Non-GAAP Financial Measures”.
(2)
Total WSEs includes approximately 12,000 incremental WSEs for December 31, 2023 and Average WSEs includes approximately 4,000 incremental WSEs for the fourth quarter of 2023 (1,000 for the full year 2023) that were charged a platform user access fee. Additionally, Total WSEs includes approximately 4,500 incremental WSEs for December 31, 2023 and Average WSEs includes approximately 4,800 for the fourth quarter of 2023 (1,500 for the full year 2023) additional service recipients. These were identified as a result of our ongoing effort to ensure that our billing practices best match the expectations of our customers. Please refer to Item 7 under Management Discussion & Analysis in our 2023 10-K.
(3)
For the year ended September 30, 2022, reflects HRIS Users from February 15, 2022, the date on which we acquired Zenefits, to the end of the period.
(in millions)
December 31,
2023
December 31,
2022
%
Change
Balance Sheet Data:
Working capital
115
338
(66)
%
Total assets
3,693
3,443
7
Debt
1,093
496
120
Total stockholders’ equity
78
775
(90)
Year Ended December 31,
(in millions)
2023
2022
% Change
Cash Flow Data:
Net cash provided by operating activities
$ 545
$ 562
(3)
%
Net cash used in investing activities
(70)
(226)
(69)
Net cash used in financing activities
(546)
(536)
2
Non-GAAP measure (1):
Corporate Operating Cash Flows
$ 539
$ 497
8
(1)
Refer to Non-GAAP measures definitions and reconciliations from GAAP measures under the heading “Non-GAAP Financial Measures”.
TRINET GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
(in millions except per share data)
2023
2022
2023
2022
Professional service revenues
$ 189
$ 189
$ 756
$ 754
Insurance service revenues
1,056
1,037
4,166
4,131
Total revenues
1,245
1,226
4,922
4,885
Insurance costs
919
916
3,513
3,463
Cost of providing services
77
78
307
303
Sales and marketing
71
63
285
242
General and administrative
57
76
211
241
Systems development and programming
16
19
65
73
Depreciation and amortization of intangible assets
19
18
72
64
Total costs and operating expenses
1,159
1,170
4,453
4,386
Operating income
86
56
469
499
Other income (expense):
Interest expense, bank fees and other
(16)
(5)
(40)
(39)
Interest income
16
14
72
22
Income before provision for income taxes
86
65
501
482
Income taxes
19
16
126
127
Net income
$ 67
$ 49
$ 375
$ 355
Other comprehensive income (loss), net of income taxes
6
—
3
(4)
Comprehensive income
$ 73
$ 49
$ 378
$ 351
Net income per share:
Basic
$ 1.33
$ 0.79
$ 6.61
$ 5.66
Diluted
$ 1.31
$ 0.78
$ 6.56
$ 5.61
Weighted average shares:
Basic
51
62
57
63
Diluted
51
62
57
64
TRINET GROUP, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
December 31,
December 31,
(in millions, except share and per share data)
2023
2022
ASSETS
Current assets:
Cash and cash equivalents
$ 287
$ 354
Investments
65
76
Restricted cash, cash equivalents and investments
1,269
1,263
Accounts receivable, net
18
19
Unbilled revenue, net
447
375
Prepaid expenses, net
67
71
Other payroll assets
381
122
Other current assets
44
46
Total current assets
2,578
2,326
Restricted cash, cash equivalents and investments, noncurrent
158
153
Investments, noncurrent
143
151
Property and equipment, net
17
24
Operating lease right-of-use asset
24
31
Goodwill
462
462
Software and other intangible assets, net
172
163
Other assets
139
133
Total assets
$ 3,693
$ 3,443
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and other current liabilities
$ 87
$ 98
Revolving credit agreement borrowings
109
—
Client deposits and other client liabilities
65
106
Accrued wages
515
437
Accrued health insurance costs, net
175
174
Accrued workers’ compensation costs, net
50
54
Payroll tax liabilities and other payroll withholdings
1,438
1,087
Operating lease liabilities
14
15
Insurance premiums and other payables
10
17
Total current liabilities
2,463
1,988
Long-term debt, noncurrent
984
496
Accrued workers’ compensation costs, noncurrent, net
120
128
Deferred taxes
13
8
Operating lease liabilities, noncurrent
30
41
Other non current liabilities
5
7
Total liabilities
3,615
2,668
Stockholders’ equity:
Preferred stock
—
—
Common stock and additional paid-in capital
976
899
Accumulated deficit
(896)
(119)
Accumulated other comprehensive loss
(2)
(5)
Total stockholders’ equity
78
775
Total liabilities & stockholders’ equity
$ 3,693
$ 3,443
TRINET GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Year Ended December 31,
(in millions)
2023
2022
2021
Operating activities
Net income
$ 375
$ 355
338
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangible assets
72
64
54
Amortization of deferred costs
40
38
31
Amortization of ROU asset, lease modification, impairment, and abandonment
9
25
12
Stock based compensation
59
62
50
Accretion of discount rate on lease liabilities
2
2
2
Provision for doubtful accounts
3
2
—
Deferred income taxes
5
(22)
(9)
Losses from disposition of assets
1
6
—
Losses and impairment on investments
1
18
—
Changes in operating assets and liabilities:
Accounts receivable, net
(2)
—
3
Unbilled revenue, net
(72)
(51)
(78)
Prepaid expenses, net
4
(2)
(5)
Other payroll assets
(259)
(72)
10
Accounts payable and other current liabilities
(8)
(13)
33
Client deposits and other client liabilities
(40)
9
(37)
Accrued wages
77
65
60
Accrued health insurance costs, net
1
—
2
Accrued workers’ compensation costs, net
(12)
(8)
(7)
Payroll taxes payable and other payroll withholdings
351
158
(166)
Operating lease liabilities
(17)
(17)
(13)
Other assets
(38)
(55)
(60)
Other liabilities
(7)
(2)
(2)
Net cash provided by operating activities
545
562
218
Investing activities
Purchases of marketable securities
(276)
(410)
(444)
Proceeds from sale and maturity of marketable securities
286
469
349
Acquisitions of property and equipment and projects in process
(75)
(56)
(40)
Acquisitions of subsidiaries, net of cash acquired
—
(229)
—
Other Investments
(5)
—
—
Net cash used in investing activities
(70)
(226)
(135)
Financing activities
Repurchase of common stock
(1,122)
(523)
(94)
Proceeds from issuance of common stock
15
11
11
Payment of long-term financing costs and debt issuance costs
(9)
—
(9)
Proceeds from issuance of 2031 Notes
400
—
—
Proceeds from issuance of 2029 Notes
—
—
500
Repayment of borrowings
—
—
(370)
Proceeds from revolving credit agreement borrowings
695
—
—
Repayment of borrowings under revolving credit agreement
(495)
—
—
Awards effectively repurchased for required employee withholding taxes
(30)
(24)
(26)
Net cash provided by (used in) financing activities
(546)
(536)
12
Effect of exchange rate changes on cash and cash equivalents
—
(1)
—
Net increase (decrease) in cash and cash equivalents, unrestricted and restricted
(71)
(201)
95
Cash and cash equivalents, unrestricted and restricted:
Beginning of period
1,537
1,738
1,643
End of period
$ 1,466
$ 1,537
$ 1,738
Supplemental disclosures of cash flow information
Interest paid
$ 25
$ 18
12
Income taxes paid, net
114
128
129
Supplemental schedule of noncash investing and financing activities
Payable for purchase of property and equipment
$ 4
$ 6
3
Acquisitions of subsidiaries paid in stock
$ —
$ 17
—
Non-GAAP Financial Measures
In addition to the selected financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP), we monitor other non-GAAP financial measures that we use to manage our business, to make planning decisions, to allocate resources and to use as performance measures in our executive compensation plan. These key financial measures provide an additional view of our operational performance over the long term and provide information that we use to maintain and grow our business.
The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation from, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.
Non-GAAP Measure
Definition
How We Use The Measure
Adjusted EBITDA
• Net income, excluding the effects of:
– income tax provision,
– interest expense, bank fees and other,
– depreciation,
– amortization of intangible assets,
– stock based compensation expense,
– amortization of cloud computing
arrangements, and
– transaction and integration costs.
• Provides period-to-period comparisons on a
consistent basis and an understanding as to
how our management evaluates the
effectiveness of our business strategies by
excluding certain non-recurring costs, which
include transaction and integration costs, as
well as certain non-cash charges such as
depreciation and amortization, and stock-
based compensation and certain impairment
charges recognized based on the estimated
fair values. We believe these charges are
either not directly resulting from our core
operations or not indicative of our ongoing
operations.
• Enhances comparisons to prior periods
and, accordingly, facilitates the development
of future projections and earnings growth
prospects.
• Provides a measure, among others, used
in the determination of incentive compensation
for management.
• We also sometimes refer to Adjusted EBITDA
margin, which is the ratio of Adjusted EBITDA
to total revenues.
Adjusted Net Income
• Net income, excluding the effects of:
– effective income tax rate (1),
– stock based compensation,
– amortization of intangible assets, net,
– non-cash interest expense (2),
– transaction and integration costs, and
– the income tax effect (at our effective tax
rate (1) of these pre-tax adjustments.
• Provides information to our stockholders and
board of directors to understand how our
management evaluates our business, to monitor
and evaluate our operating results, and analyze
profitability of our ongoing operations and trends
on a consistent basis by excluding certain non-
cash charges.
Corporate Operating Cash Flows
• Net cash provided by (used in) operating
activities, excluding the effects of:
– Assets associated with WSEs (accounts
receivable, unbilled revenue, prepaid
expenses, other payroll assets and other
current assets) and
– Liabilities associated with WSEs (client
deposits and other client liabilities, accrued
wages, payroll tax liabilities and other payroll
withholdings, accrued health insurance
costs, accrued workers’ compensation costs,
insurance premiums and other payables, and
other current liabilities).
• Provides information that our stockholders and
management can use to evaluate our cash flows
from operations independent of the current assets
and liabilities associated with our WSEs.
• Enhances comparisons to prior periods and,
accordingly, used as a liquidity measure to manage
liquidity between corporate and WSE related
activities, and to help determine and plan our cash
flow and capital strategies.
(1)
Non-GAAP effective tax rate is 25.6% for the fourth quarter and full year of 2023 and 25.5% for the fourth quarter and full year of 2022, which excludes the income tax impact from stock-based compensation, changes in uncertain tax positions, and nonrecurring benefits or expenses from federal legislative changes.
(2)
Non-cash interest expense represents amortization and write-off of our debt issuance costs and loss on a terminated derivative.
Reconciliation of GAAP to Non-GAAP Measures
The table below presents a reconciliation of net income to Adjusted EBITDA:
Three Months Ended
December 31,
Year Ended
December 31,
(in millions)
2023
2022
2023
2022
Net income
$ 67
$ 49
$ 375
$ 355
Provision for income taxes
19
16
126
127
Stock based compensation
16
16
59
62
Interest expense, bank fees and other (1)
16
5
40
39
Depreciation and amortization of intangible assets
19
18
72
64
Amortization of cloud computing arrangements
1
1
8
4
Transaction and integration costs
2
6
17
37
Adjusted EBITDA
$ 140
$ 111
$ 697
$ 688
Adjusted EBITDA Margin
11.2 %
9.0 %
14.2 %
14.1 %
(1)
2022 Interest expense, bank fees and other includes $17M of realized investments losses on sales and impairments related to AFS securities.
The table below presents a reconciliation of net income to Adjusted Net Income and Adjusted Net Income per share – diluted:
Three Months Ended
December 31,
Year Ended
December 31,
(in millions, except per share data)
2023
2022
2023
2022
Net income
$ 67
$ 49
$ 375
$ 355
Effective income tax rate adjustment
(3)
—
(2)
5
Stock based compensation
16
16
59
62
Amortization of intangible assets
5
5
20
18
Non-cash interest expense
1
—
2
1
Transaction and integration costs
2
6
17
37
Income tax impact of pre-tax adjustments
(6)
(6)
(25)
(30)
Adjusted Net Income
$ 82
$ 71
$ 446
$ 448
GAAP weighted average shares of common stock – diluted
51
62
57
64
Adjusted Net Income per share – diluted
$ 1.60
$ 1.11
$ 7.81
$ 7.07
The table below presents a reconciliation of net cash provided by operating activities to Corporate Operating Cash flows:
Year Ended
December 31,
(in millions)
2023
2022
Net cash provided by operating activities
$ 545
$ 562
Less: Change in WSE related other current assets
(329)
(149)
Less: Change in WSE related liabilities
335
214
Net cash used in operating activities – WSE
$ 6
$ 65
Net cash provided by operating activities – Corporate
$ 539
$ 497
Reconciliation of GAAP to Non-GAAP Measures for the first quarter and full-year 2024 guidance.
Low and high percentages represent increases (decreases) from the same periods in the previous year.
The table below presents a reconciliation of net income to Adjusted Net Income and Adjusted Net Income per share – diluted:
Q1 2023
Q1 2024 Guidance
FY 2023
Year 2024 Guidance
(in millions, except per share data)
Actual
Low
High
Actual
Low
High
Net income
$ 131
(29) %
(1) %
$ 375
(38) %
(17) %
Effective income tax rate adjustment
3
(108)
(77)
(2)
98
1
Stock based compensation
11
39
39
59
17
17
Amortization of intangible assets
6
(13)
(13)
20
(5)
(5)
Non-cash interest expense
—
(25)
(25)
2
(39)
(39)
Transaction and integration costs
5
(100)
(100)
17
(100)
(100)
Income tax impact of pre-tax adjustments
(6)
(6)
(6)
(25)
(9)
(9)
Adjusted Net Income
$ 150
(28) %
(3) %
$ 446
(34) %
(16) %
GAAP weighted average shares of common stock – diluted
60
57
Adjusted Net Income per share – diluted
$ 2.49
$ 2.10
$ 2.85
$ 7.81
$ 5.80
$ 7.35
View original content to download multimedia:https://www.prnewswire.com/news-releases/trinet-announces-fourth-quarter-fiscal-year-2023-results-and-dividend-initiation-302063461.html
SOURCE TriNet Group, Inc.
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Disparities Narrowing Among Patients Undergoing Blood Stem Cell Transplant, Roswell Park Study Reveals
Published
53 mins agoon
September 20, 2024By
Historically, some patients with blood cancers have been less likely than others to receive stem cell transplant, also known as bone marrow transplant. Theresa Hahn, PhD, of Roswell Park is lead author of a new study showing that older adults and Black patients are much less likely than people from other groups to receive a blood stem cell transplant.
BUFFALO, N.Y., Sept. 20, 2024 /PRNewswire-PRWeb/ —
Study led by Dr. Theresa Hahn published in JAMA Network OpenNumber of transplants for blood cancers rose from 2009 to 2018Research team analyzed trends in transplant utilization for that period
Every year, more than 22,000 patients in the U.S. undergo a potentially lifesaving blood stem cell transplant — often called a “bone marrow transplant” — for the treatment of hematologic diseases. But historically, some patients with blood cancers have been less likely than others to receive the treatment. Theresa Hahn, PhD, of Roswell Park Comprehensive Cancer Center is lead author of a new study in the journal JAMA Network Open showing that while progress has been made in reducing those disparities, older adults and Black patients are much less likely than people from other groups to receive a blood stem cell transplant.
The research team analyzed data provided by the Center for International Blood and Marrow Transplant Research (CIBMTR) for 136,280 patients who underwent hematopoietic cell transplant (HCT) in the U.S. between 2009 and 1018, comparing those numbers with the incidence of six blood cancers (acute myeloid and lymphoblastic leukemia, multiple myeloma, Hodgkin and non-Hodgkin lymphoma and myelodysplastic syndrome) in various age, race and ethnic groups the U.S. as reported by the National Cancer Institute’s Surveillance Epidemiology and End Results (SEER) Program.
The team found that during that period, the use of HCT increased for the treatment of most blood cancers — and rose among all age, race and ethnic groups.
The researchers also discovered that in the most recent years analyzed, from 2017-2018:
The rate of HCT utilization for blood cancers rose among Hispanic and younger patients to equal the rate of non-Hispanic white patients.Non-Hispanic Black patients had a lower rate of HCT for all six diseases studied.Pediatric, adolescent and young adult patients had a higher rate than adult patients of allogeneic HCT, which involves receiving cells from a healthy donor.
“This study shows that while progress has been made to reduce disparities among racial and ethnic groups, there’s a need to improve hematopoietic cell transplant utilization rates in older adults and in Black patients of all ages,” says Dr. Hahn, Professor of Oncology in the Department of Cancer Prevention and Control at Roswell Park and the study’s first author.
The research team also include Dr. Hahn’s Roswell Park colleague Megan Herr, PhD, and collaborators from the Medical College of Wisconsin, Milwaukee; the CIBMTR; and the Mayo Clinic.
From the world’s first chemotherapy research to the PSA prostate cancer biomarker, Roswell Park Comprehensive Cancer Center generates innovations that shape how cancer is detected, treated and prevented worldwide. Driven to eliminate cancer’s grip on humanity, the Roswell Park team of 4,000 makes compassionate, patient-centered cancer care and services accessible across New York State and beyond. Founded in 1898, Roswell Park was among the first three cancer centers nationwide to become a National Cancer Institute-designated comprehensive cancer center and is the only one to hold this designation in Upstate New York. To learn more about Roswell Park Comprehensive Cancer Center and the Roswell Park Care Network, visit http://www.roswellpark.org, call 1-800-ROSWELL (1-800-767-9355) or email ASKRoswell@RoswellPark.org.
Media Contact
Julia Telford, Roswell Park Comprehensive Cancer Center, 716-845-4919, julia.telford@roswellpark.org, roswellpark.org
View original content to download multimedia:https://www.prweb.com/releases/disparities-narrowing-among-patients-undergoing-blood-stem-cell-transplant-roswell-park-study-reveals-302254312.html
SOURCE Roswell Park Comprehensive Cancer Center
Technology
IFIC Monthly Investment Fund Statistics – August 2024
Published
53 mins agoon
September 20, 2024By
Mutual fund and exchange-traded fund (ETF) assets and sales
TORONTO, Sept. 20, 2024 /CNW/ – The Investment Funds Institute of Canada (IFIC) today announced investment fund net sales and net assets for August 2024.
Mutual fund assets totalled $2.145 trillion at the end of August, up by $7.7 billion or 0.4 per cent since July. Mutual fund net sales were $2.4 billion in August.
ETF assets totalled $464.0 billion at the end of August, up by $5.9 billion or 1.3 per cent since July. ETF net sales were $4.3 billion in August.
August insights
Mutual fund net sales were positive for the second consecutive month.Year to date, mutual funds experienced inflows of $3.6 billion, compared to outflows of $23.2 billion over the same period last year.Money market funds experienced the largest single month of outflows since November 2021, largely the result of outflows from high-interest saving account funds.Year to date, ETFs experienced inflows of $41.6 billion, which is 82 per cent higher than inflows over the same period last year.
Mutual fund net sales/net redemptions ($ millions)*
Asset class
Aug 2024
Jul 2024
Aug 2023
YTD 2024
YTD 2023
Long-term funds
Balanced
(1,383)
(1,025)
(4,750)
(21,271)
(31,002)
Equity
1,093
2,088
(2,152)
1,212
(13,584)
Bond
2,538
3,307
(427)
16,339
8,591
Specialty
547
800
366
5,157
2,642
Total long-term funds
2,795
5,169
(6,963)
1,436
(33,353)
Total money market funds
(420)
31
1,302
2,194
10,142
Total
2,375
5,200
(5,661)
3,630
(23,211)
Mutual fund net assets ($ billions)*
Asset class
Aug 2024
Jul 2024
Aug 2023
Dec 2023
Long-term funds
Balanced
964.3
962.9
893.6
904.3
Equity
823.5
821.3
701.3
714.4
Bond
268.7
264.7
234.5
242.3
Specialty
34.1
33.7
25.8
27.0
Total long-term funds
2,090.6
2,082.6
1,855.2
1,888.0
Total money market funds
54.4
54.8
45.7
50.7
Total
2,145.0
2,137.4
1,900.9
1,938.7
*
See below for important information about this data.
ETF net sales/net redemptions ($ millions)*
Asset class
Aug 2024
Jul 2024
Aug 2023
YTD 2024
YTD 2023
Long-term funds
Balanced
464
558
140
3,305
1,103
Equity
1,748
2,380
330
22,822
6,776
Bond
1,176
1,463
641
13,359
7,085
Specialty
991
254
(280)
1,288
1,047
Total long-term funds
4,378
4,655
832
40,775
16,011
Total money market funds
(94)
310
1,051
863
6,864
Total
4,285
4,965
1,883
41,638
22,875
ETF net assets ($ billions)*
Asset class
Aug 2024
Jul 2024
Aug 2023
Dec 2023
Long-term funds
Balanced
20.2
19.6
13.9
15.1
Equity
290.5
286.6
219.7
232.5
Bond
109.2
107.7
86.3
94.6
Specialty
17.8
17.7
11.7
14.4
Total long-term funds
437.8
431.7
331.6
356.7
Total money market funds
26.3
26.4
23.1
25.3
Total
464.0
458.1
354.7
382.0
*
See below for important information about data.
IFIC direct survey data (which accounts for approximately 87 per cent of total mutual fund industry assets and approximately 80 per cent of total ETF industry assets) is complemented by estimated data to provide comprehensive industry totals.
IFIC makes every effort to verify the accuracy, currency, and completeness of the information, however, IFIC does not guarantee, warrant, represent or undertake that the information provided is correct, accurate or current.
© The Investment Funds Institute of Canada. No reproduction or republication in whole or in part is permitted without permission.
* Important information about investment fund data
Mutual fund data is adjusted to remove double counting arising from mutual funds that invest in other mutual funds.Starting with January 2022 data, ETF data is adjusted to remove double counting arising from Canadian-listed ETFs that invest in units of other Canadian-listed ETFs. Any references to IFIC ETF assets and sales figures prior to 2022 data should indicate that the data has not been adjusted for ETF of ETF double counting.The balanced funds category includes funds that invest directly in a mix of stocks and bonds or obtain exposure through investing in other funds.Mutual fund data reflects the investment activity of Canadian retail investors.ETF data reflects the investment activity of Canadian retail and institutional investors.
About IFIC
The Investment Funds Institute of Canada is the voice of Canada’s investment funds industry. IFIC brings together 150 organizations, including fund managers, distributors and industry service organizations to foster a strong, stable investment sector where investors can realize their financial goals. By connecting Canada’s savers to Canada’s economy, our industry contributes significantly to Canadian economic growth and job creation. Learn more about IFIC
SOURCE The Investment Funds Institute of Canada
Technology
VINFAST REPORTS UNAUDITED SECOND QUARTER 2024 FINANCIAL RESULTS
Published
53 mins agoon
September 20, 2024By
SINGAPORE, Sept. 20, 2024 /PRNewswire/ — VinFast Auto Ltd. (“VinFast” or the “Company”) (Nasdaq: VFS), a subsidiary of Vingroup JSC, and Vietnam’s only pure-play electric vehicle manufacturer, today announced its unaudited financial results for the second quarter ended June 30, 2024.
VinFast delivered 13,172 EVs in Q2, up by 44% QoQ and 43% YoY, bringing its delivery total for the first half of 2024 to 22,348 vehicles, a 101% increase compared to the same period last year.The Company recorded $357 million in revenue for Q2, up by 33% QoQ and 9% YoY.Vietnam, where momentum is accelerating, will play a key role in driving VinFast’s revenue in the remainder of 2024.
Madam Thuy Le, Chairwoman of VinFast, said: “We remain focused on our mission to contribute to a sustainable future for everyone. Our strategy is unchanged with regards to being a vertically-integrated green mobility solutions company providing high quality and good-value electric vehicles. With the delivery of VF 3 starting in Q3, we have completed the development of all 7 e-SUV models.”
Ms. Lan Anh Nguyen, Chief Financial Officer of VinFast, added: “Q2 of 2024 aligned with our forecasts, driven in large part by the increasing demand for VinFast’s EVs in Vietnam. This growth in our home market has been crucial in advancing our mission to promote EV adoption and green mobility. The momentum we’ve built in Vietnam has laid a solid foundation for our strong position in this key market to continue thriving.”
VinFast EV Deliveries Rose 44% QoQ and Revenue Grew 33% QoQ
During the quarter, VinFast delivered 13,172 vehicles, a 44% increase compared to the previous quarter and a 43% increase year-over-year. This brings total deliveries for the first half of 2024 to 22,348 vehicles, representing a 101% increase compared to the same period last year.
One of the key drivers behind this growth was the increasing adoption of electric vehicles in the Vietnamese market, where VinFast recorded a 108% year-over-year increase in B2C deliveries in Q2.
VinFast reported $357 million in revenue in Q2, up by 9% year-over-year and by 33% quarter-over-quarter.
The Company’s gross loss for Q2 was ($224) million, equivalent to a gross margin of (62.7%). This was primarily due to an impairment charge on Net Residual Value (NRV) of $104 million, compared to $5 million in Q1.
Expanding Global Footprint to Drive Sales
VinFast’s strategic expansion through dealership network has shown progress.
As of August 31, VinFast had 155 showrooms across all markets, of which around 70% were dealerships.
Strengthening Presence in Key Markets
Vietnam
VinFast achieved its highest year-over-year growth for Vietnam in the first half of 2024. The VF 5 model has been instrumental in driving the Company’s strong sales performance, securing the VF 5’s position as a domestic leader in its segment. Additionally, the Company began delivering its highly anticipated VF 3, VinFast’s mini electric SUV, in the third quarter of 2024.
North America
In the second quarter of 2024, VinFast continued to build its foundation in the U.S. by introducing its products and strategies to key dealerships. To bolster brand awareness, VinFast expanded customer outreach through its dealer network and established a Dealer Advisory Council to gain valuable insights. As of the second quarter, VinFast now operates in eight states, California, Connecticut, Florida, Kansas, Kentucky, North Carolina, New York, and Texas, with a combined network of dealer stores and VinFast-owned showrooms.
In Canada, VinFast recorded 15% quarter-over-quarter growth in the second quarter and is seeing this momentum continue in the third quarter, with July and August seeing its highest delivery levels for North America in the past year.
Southeast Asia
VinFast entered the Indonesian market less than six months ago and has since established 15 showrooms across major cities, including Jakarta and Surabaya. VinFast began delivering its first batch of VF e34 electric vehicle during the third quarter of 2024, making Indonesian customers the first globally to receive right-hand drive VinFast EVs. VinFast also broke ground its completely knocked down (CKD) facility in Indonesia.
VinFast’s innovative battery subscription offer has been a key driver of sales in Indonesia, accounting for nearly 100% of its total sales and orders. This program has also garnered positive feedback in the Philippines, further validating its commitment to making electric vehicles more accessible.
Building on the positive response from dealers in the Philippines, VinFast is eager to introduce additional models to the market in the coming months, further expanding its footprint and product offerings in the region.
Outlook for the Remainder of 2024
VinFast reaffirms its target to deliver approximately 80,000 units in 2024.
Vietnam is expected to play a key role in driving revenue for the remainder of 2024. The growing success of the VF 5 model, along with VinFast’s extensive charging infrastructure, flexible battery subscription program, and strong after-sales services, are expected to reinforce its leadership position in the Vietnamese electric vehicle market.
While international markets continue to face near-term challenges, they remain integral to VinFast’s longer-term growth strategy as the company expands its global brand and distribution network.
VinFast remains committed to its mission of accelerating the global shift to sustainable electric mobility through continuous innovation, product expansion, and market presence./.
Conference Call
The Company’s management will host its second quarter 2024 earnings conference call at 8:00 AM U.S. Eastern Time on September 20, 2024.
Live Webcast: https://edge.media-server.com/mmc/p/urnhoxtg
For additional information, please visit https://vinfastauto.us/investor-relations/
Investor Relations – Email: ir@vinfastauto.com
Media Relations – Email: info@vingroup.com
About VinFast
VinFast (NASDAQ: VFS), a subsidiary of Vingroup JSC, one of Vietnam’s largest conglomerates, is a pure-play electric vehicle (“EV”) manufacturer with the mission of making EVs accessible to everyone. VinFast’s product lineup today includes a wide range of electric SUVs, e-scooters, and e-buses. VinFast is currently embarking on its next growth phase through rapid expansion of its distribution and dealership network globally and increasing its manufacturing capacities with a focus on key markets across North America, Europe and Asia. Learn more at www.vinfastauto.us
Forward-Looking Statements
Forward-looking statements in this announcement, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1955. These statements include statements regarding our future results of operations and financial position, planned products and services, business strategy and plans, objectives of management for future operations of VinFast, market size and growth opportunities, competitive position and technological and market trends and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “goal,” “objective,” “seeks,” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (i) the effect of the consummation of the business combination and the public listing of the Company’s securities on its business relationships, performance, financial condition and business generally, (ii) the risk that the Company’s securities may experience a material price decline and volatility in the price of such securities due to a variety of factors, (iii) the adverse impact of any legal proceedings and regulatory inquiries and investigations on the Company’s business, (iv) the Company’s potential inability to maintain the listing of its securities on Nasdaq, (v) the risk associated with the Company’s limited operating history, (vi) the ability of the Company to achieve profitability, positive cash flows from operating activities and a net working capital surplus, (vii) the ability of the Company to fund its capital requirements through additional debt and equity financing under commercially reasonable terms and the risk of shareholding dilution as a result of additional capital raising, if applicable, (viii) risks associated with being a new entrant in the EV industry, (ix) the risks of the Company’s brand, reputation, public credibility and consumer confidence in its business being harmed by negative publicity, (x) the Company’s ability to successfully introduce and market new products and services, (xi) competition in the automotive industry, (xii) the Company’s ability to adequately control the costs associated with its operations, (xiii) the ability of the Company to obtain components and raw materials according to schedule at acceptable prices, quality and volumes acceptable from its suppliers, (xiv) the Company’s ability to maintain relationships with existing suppliers who are critical and necessary to the output and production of its vehicles and to create relationships with new suppliers, (xv) the Company’s ability to establish manufacturing facilities outside of Vietnam and expand capacity in a timely manner and within budget, (xvi) the risk that the Company’s actual vehicle sales and revenue could differ materially from expected levels based on the number of reservations received, (xvii) the demand for, and consumers’ willingness to adopt, EVs, (xiii) the availability and accessibility of EV charging stations or related infrastructure, (xix) the unavailability, reduction or elimination of government and economic incentives or government policies which are favorable for EV manufacturers and buyers, (xx) failure to maintain an effective system of internal control over financial reporting and to accurately and timely report the Company’s financial condition, results of operations or cash flows, (xxi) battery pack failures in the Company or its competitor’s EVs, (xxii) failure of the Company’s business partners to deliver their services, (xxiii) errors, bugs, vulnerabilities, design defects or other issues related to technology used or involved in the Company’s EVs or operations, (xxiv) the risk that the Company’s research and development efforts may not yield expected results, (xxv) risks associated with autonomous driving technologies, (xxvi) product recalls that the Company may be required to make, (xxvii) the ability of the Company’s controlling shareholder to control and exert significant influence on the Company, (xxiii) the Company’s reliance on financial and other support from Vingroup and its affiliates and the close association between the Company and Vingroup and its affiliates, (xxix) conflicts of interests with or any events impacting the reputation of Vingroup affiliates or unfavorable market conditions or adverse business operations of Vingroup and Vingroup affiliates and (xxx) other risks discussed in our reports filed or furnished to the Securities and Exchange Commission.
All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. You are cautioned not to place undue reliance on any forward-looking statements, which are made only as of the date of this announcement. VinFast does not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If VinFast updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. The inclusion of any statement in this announcement does not constitute an admission by VinFast or any other person that the events or circumstances described in such statement are material. Undue reliance should not be placed upon the forward-looking statements.
View original content to download multimedia:https://www.prnewswire.com/news-releases/vinfast-reports-unaudited-second-quarter-2024-financial-results-302254421.html
SOURCE VinFast
Disparities Narrowing Among Patients Undergoing Blood Stem Cell Transplant, Roswell Park Study Reveals
IFIC Monthly Investment Fund Statistics – August 2024
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