Technology

ATRenew Inc. Reports Unaudited Third Quarter 2024 Financial Results

Published

4 hours ago

November 20, 2024

SHANGHAI, Nov. 20, 2024 /PRNewswire/ — ATRenew Inc. (“ATRenew” or the “Company”) (NYSE: RERE), a leading technology-driven pre-owned consumer electronics transactions and services platform in China, today announced its unaudited financial results for the three months ended September 30, 2024.

Third Quarter 2024 Highlights

Total net revenues grew by 24.4% to RMB4,051.2 million (US$577.3 million) from RMB3,256.8 million in the third quarter of 2023.Income from operations was RMB24.9 million (US$3.5 million), compared to a loss from operations of RMB28.1 million in the third quarter of 2023. Adjusted income from operations (non-GAAP)[1] was RMB104.0 million (US$14.8 million), compared to RMB73.8 million in the third quarter of 2023.Number of consumer products transacted[2] was 9.1 million compared to 8.2 million in the third quarter of 2023.

Mr. Kerry Xuefeng Chen, Founder, Chairman, and Chief Executive Officer of ATRenew, commented, “We are delighted to report that our total net revenues reached RMB4.05 billion in the third quarter of 2024, representing a robust year-over-year growth of 24.4%. We are particularly encouraged by the widespread adoption of our consumer electronics trade-in services, which provide consumers with a seamless experience and competitive pricing. Our AHS stores maintain their industry-leading position, serving as the preferred destination for users to recycle reusable consumer products and purchase quality-assured, value-for-money pre-owned electronic devices.”

Mr. Rex Chen, Chief Financial Officer of ATRenew, added, “The third quarter marked another milestone in our path to enhanced profitability, as we achieved positive GAAP income from operations and our non-GAAP income from operations exceeded RMB100 million for the first time. These results reflect our successful initiatives to optimize operating expenses and the diminishing impact of amortization expenses from historical acquisitions. We also demonstrated our commitment to shareholder returns by repurchasing over US$12 million of our shares during the quarter. Looking ahead, we remain focused on driving operational efficiency and delivering sustainable value to our users and shareholders.”

[1]. See “Reconciliations of GAAP and Non-GAAP Results” for more information.

[2]. “Number of consumer products transacted” represents the number of consumer products distributed to merchants and consumers through transactions on the Company’s PJT Marketplace, Paipai Marketplace and other channels the Company operates in a given period, prior to returns and cancellations, excluding the number of consumer products collected through AHS Recycle; a single consumer product may be counted more than once according to the number of times it is transacted on PJT Marketplace, Paipai Marketplace and other channels the Company operates through the distribution process to end consumer.

Third Quarter 2024 Financial Results

REVENUE

Total net revenues increased by 24.4% to RMB4,051.2 million (US$577.3 million) from RMB3,256.8 million in the same period of 2023.

Net product revenues increased by 25.6% to RMB3,672.2 million (US$523.3 million) from RMB2,924.0 million in the same period of 2023. The increase was primarily attributable to an increase in the sales of pre-owned consumer electronics both through the Company’s online and offline channels.Net service revenues increased by 13.9% to RMB379.0 million (US$54.0 million), compared to RMB332.8 million in the same period of 2023. This increase was primarily due to an increase in the service revenue generated from PJT Marketplace and multi-category recycling business.

OPERATING COSTS AND EXPENSES

Operating costs and expenses were RMB4,028.1 million (US$574.0 million), compared to RMB3,307.5 million in the same period of 2023, representing an increase of 21.8%.

Merchandise costs were RMB3,242.8 million (US$462.1 million), compared to RMB2,611.0 million in the same period of 2023, representing an increase of 24.2%. This was primarily due to the growth in product sales.Fulfillment expenses were RMB347.3 million (US$49.5 million), compared to RMB287.7 million in the same period of 2023, representing an increase of 20.7%. The increase was primarily due to (i) an increase in personnel costs and logistics expenses as the Company conducted more recycling and transaction activities compared with the same period of 2023, and (ii) an increase in operation center related expenses as the Company expanded its store networks in the third quarter of 2024.Selling and marketing expenses were RMB315.3 million (US$44.9 million), compared to RMB299.5 million in the same period of 2023, representing an increase of 5.3%. The increase was primarily due to (i) an increase in advertising expenses and promotional campaign related expenses, and (ii) an increase in share-based compensation expenses. The increase was partially offset by a decrease in amortization of intangible assets and deferred cost resulting from assets and business acquisitions as the maturity of some intangible assets and deferred cost in the third quarter of 2023.General and administrative expenses were RMB69.3 million (US$9.9 million), compared to RMB69.8 million in the same period of 2023, representing a decrease of 0.7%, primarily due to a decrease in share-based compensation expenses. The decrease was partially offset by an increase in other personnel cost.Technology and content expenses were RMB53.4 million (US$7.6 million), compared to RMB39.4 million in the same period of 2023, representing an increase of 35.5%. The increase was primarily due to an increase in personnel costs in connection with the ongoing maintenance of the Company’s operation centers and system.

INCOME (LOSS) FROM OPERATIONS

Income from operations was RMB24.9 million (US$3.5 million), compared to a loss from operations of RMB28.1 million in the same period of 2023.

Adjusted income from operations (non-GAAP) was RMB104.0 million (US$14.8 million), compared to RMB73.8 million in the same period of 2023.

NET INCOME (LOSS)

Net income was RMB17.9 million (US$2.6 million), compared to a net loss of RMB44.2 million in the same period of 2023.

Adjusted net income (non-GAAP) was RMB90.1 million (US$12.8 million), compared to RMB47.6 million in the same period of 2023.

BASIC AND DILUTED NET INCOME PER ORDINARY SHARE

Basic and diluted net income per ordinary share were RMB0.11 (US$0.02), compared to basic and diluted net loss of RMB0.27 in the same period of 2023.

Adjusted basic and diluted net income per ordinary share (non-GAAP) were RMB0.56 (US$0.08) and RMB0.55 (US$0.08), compared to RMB0.30 and RMB0.29 in the same period of 2023.

CASH AND CASH EQUIVALENTS, RESTRICTED CASH, SHORT-TERM INVESTMENTS AND FUNDS RECEIVABLE FROM THIRD PARTY PAYMENT SERVICE PROVIDERS

Cash and cash equivalents, restricted cash, short-term investments and funds receivable from third party payment service providers were RMB2,350.5 million (US$334.9 million) as of September 30, 2024, as compared to RMB2,854.4 million as of December 31, 2023.

Business Outlook

For the fourth quarter of 2024, the Company currently expects its total revenues to be between RMB4,740.0 million and RMB4,840.0 million, representing an increase of 22.4% to 24.9% year-over-year. This forecast only reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.

Recent Development

On August 29, 2024, ATRenew announced an improvement in its Environmental, Social and Governance (ESG) score as assessed by S&P Global’s Corporate Sustainability Assessment in 2024, placing it in the 93rd percentile among its global RTS retailing industry peers. This is primarily attributable to ATRenew’s commitment to ESG, particularly greater transparency in its climate strategy, human capital management, and business ethics.

During the third quarter of 2024, ATRenew repurchased a total of approximately 4.9 million ADSs for approximately US$12.1 million under its current share repurchase program which authorizes the Company to repurchase up to US$50 million worth of its shares (including ADSs) through June 27, 2025. As of September 30, 2024, the Company had repurchased a total of approximately 8.2 million ADSs for approximately US$20.1 million under this share repurchase program.

Conference Call Information

The Company’s management will hold a conference call on Wednesday, November 20, 2024 at 07:00 A.M. Eastern Time (or 08:00 P.M. Beijing Time on the same day) to discuss the financial results. Listeners may access the call by dialing the following numbers:

International:

1-412-317-6061

United States Toll Free:

1-888-317-6003

Mainland China Toll Free:

4001-206115

Hong Kong Toll Free:

800-963976

Access Code:

3668505

The replay will be accessible through November 27, 2024 by dialing the following numbers:

International:

1-412-317-0088

United States Toll Free:

1-877-344-7529

Access Code:

3972162

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at ir.atrenew.com.

About ATRenew Inc.

Headquartered in Shanghai, ATRenew Inc. operates a leading technology-driven pre-owned consumer electronics transactions and services platform in China under the brand ATRenew. Since its inception in 2011, ATRenew has been on a mission to give a second life to all idle goods, addressing the environmental impact of pre-owned consumer electronics by facilitating recycling and trade-in services, and distributing the devices to prolong their lifecycle. ATRenew’s open platform integrates C2B, B2B, and B2C capabilities to empower its online and offline services. Through its end-to-end coverage of the entire value chain and its proprietary inspection, grading, and pricing technologies, ATRenew sets the standard for China’s pre-owned consumer electronics industry. ATRenew is a participant in the United Nations Global Compact, and adheres to its principles-based approach to responsible business.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.0176 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2024.

Use of Non-GAAP Financial Measures

The Company also uses certain non-GAAP financial measures in evaluating its business. For example, the Company uses adjusted income from operations, adjusted net income and adjusted net income per ordinary share as supplemental measures to review and assess its financial and operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation, or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. Adjusted income from operations is loss from operations excluding the share-based compensation expenses and amortization of intangible assets and deferred cost resulting from assets and business acquisitions. Adjusted net income is net loss excluding the share-based compensation expenses and amortization of intangible assets and deferred cost resulting from assets and business acquisitions and tax effects of amortization of intangible assets and deferred cost resulting from assets and business acquisitions. Adjusted net income per ordinary share is adjusted net income attributable to ordinary shareholders divided by weighted average number of shares used in calculating net loss per ordinary share.

The Company presents non-GAAP financial measures because they are used by the Company’s management to evaluate the Company’s financial and operating performance and formulate business plans. The Company believes that adjusted income from operations and adjusted net income help identify underlying trends in the Company’s business that could otherwise be distorted by the effect of certain expenses that are included in loss from operations and net loss. The Company also believes that the use of non-GAAP financial measures facilitates investors’ assessment of the Company’s operating performance. The Company believes that adjusted income from operations and adjusted net income provide useful information about the Company’s operating results, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP financial measures is that they do not reflect all items of income and expense that affect the Company’s operations. The share-based compensation expenses, amortization of intangible assets and deferred cost resulting from assets and business acquisitions and tax effects of amortization of intangible assets and deferred cost resulting from assets and business acquisitions have been and may continue to be incurred in the Company’s business and is not reflected in the presentation of non-GAAP financial measures. Further, the non-GAAP measures may differ from the non-GAAP measures used by other companies, including peer companies, potentially limiting the comparability of their financial results to the Company’s. In light of the foregoing limitations, the non-GAAP financial measures for the period should not be considered in isolation from or as an alternative to income from operations, net income, and net income attributable to ordinary shareholders per share, or other financial measures prepared in accordance with U.S. GAAP.

The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measures, which should be considered when evaluating the Company’s performance. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, “Reconciliations of GAAP and Non-GAAP Results.”

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Among other things, quotations in this announcement, contain forward-looking statements. ATRenew may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about ATRenew’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: ATRenew’s strategies; ATRenew’s future business development, financial condition and results of operations; ATRenew’s ability to maintain its relationship with major strategic investors; its ability to facilitate pre-owned consumer electronics transactions and provide relevant services; its ability to maintain and enhance the recognition and reputation of its brand; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in ATRenew’s filings with the SEC. All information provided in this press release is as of the date of this press release, and ATRenew does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact

In China:
ATRenew Inc.
Investor Relations
Email: ir@atrenew.com

In the United States:
ICR LLC.
Email: atrenew@icrinc.com
Tel: +1-212-537-0461

ATRENEW INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share and per share and otherwise noted)

As of December 31,

As of September 30,

2023

2024

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

1,978,696

1,347,338

191,994

Restricted cash

210,000

132,000

18,810

Short-term investments

410,547

630,123

89,792

Amount due from related parties, net

89,592

218,771

31,175

Inventories

1,017,155

678,026

96,618

Funds receivable from third party payment service
providers

253,107

241,047

34,349

Prepayments and other receivables, net

567,622

754,617

107,532

Total current assets

4,526,719

4,001,922

570,270

Non-current assets:

Long-term investments

467,095

558,221

79,546

Property and equipment, net

148,223

159,236

22,691

Intangible assets, net

270,631

100,496

14,321

Other non-current assets

80,411

149,115

21,249

Total non-current assets

966,360

967,068

137,807

TOTAL ASSETS

5,493,079

4,968,990

708,077

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Short-term borrowings

349,931

307,291

43,789

Accounts payable

532,293

105,314

15,007

Contract liabilities

119,715

81,571

11,624

Accrued expenses and other current liabilities

465,123

478,145

68,135

Accrued payroll and welfare

146,371

148,945

21,224

Amount due to related parties

78,032

116,255

16,566

Total current liabilities

1,691,465

1,237,521

176,345

Non-current liabilities:

Operating lease liabilities, non-current

22,495

80,366

11,452

Deferred tax liabilities

67,658

42,099

5,999

Total non-current liabilities

90,153

122,465

17,451

TOTAL LIABILITIES

1,781,618

1,359,986

193,796

TOTAL SHAREHOLDERS’ EQUITY

3,711,461

3,609,004

514,281

TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY

5,493,079

4,968,990

708,077

ATRENEW INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)

(Amounts in thousands, except share and per share and otherwise noted)

Three months ended September 30,

Nine months ended September 30,

2023

2024

2023

2024

RMB

US$

RMB

US$

Net revenues

Net product revenues

2,923,970

3,672,239

523,290

8,135,824

10,383,813

1,479,682

Net service revenues

332,787

378,999

54,007

956,386

1,095,264

156,074

Operating (expenses) income (1)(2)

Merchandise costs

(2,611,018)

(3,242,843)

(462,101)

(7,188,902)

(9,181,300)

(1,308,325)

Fulfillment expenses

(287,704)

(347,270)

(49,486)

(822,913)

(985,325)

(140,408)

Selling and marketing expenses

(299,491)

(315,293)

(44,929)

(933,835)

(990,607)

(141,160)

General and administrative expenses

(69,826)

(69,302)

(9,875)

(203,794)

(215,671)

(30,733)

Technology and content expenses

(39,430)

(53,396)

(7,609)

(131,905)

(153,391)

(21,858)

Other operating income, net

22,640

1,751

250

32,512

23,082

3,289

Income (loss) from operations

(28,072)

24,885

3,547

(156,627)

(24,135)

(3,439)

Interest expense

(2,186)

(3,615)

(515)

(5,498)

(12,332)

(1,757)

Interest income

11,083

8,686

1,238

24,658

20,611

2,937

Other (loss) income, net

(4,428)

(6,719)

(41,305)

(5,886)

Income (loss) before income taxes and share
of loss in equity method investments

(23,603)

30,003

4,277

(144,186)

(57,161)

(8,145)

Income tax benefits

10,047

5,949

848

33,607

24,536

3,496

Share of loss in equity method investments

(30,632)

(18,069)

(2,575)

(48,449)

(53,028)

(7,556)

Net income (loss)

(44,188)

17,883

2,550

(159,028)

(85,653)

(12,205)

Net income (loss) per ordinary share:

Basic

(0.27)

0.11

0.02

(0.99)

(0.53)

(0.08)

Diluted

(0.27)

0.11

0.02

(0.99)

(0.53)

(0.08)

Weighted average number of shares used in
calculating net income (loss) per ordinary
share

Basic

161,338,983

161,405,774

161,393,190

162,011,110

Diluted

161,338,983

164,258,720

161,393,190

162,011,110

Net income (loss)

(44,188)

17,883

2,550

(159,028)

(85,653)

(12,205)

Foreign currency translation adjustments

(5,676)

(7,093)

(1,011)

15,897

(7,183)

(1,024)

Total comprehensive income (loss)

(49,864)

10,790

1,539

(143,131)

(92,836)

(13,229)

ATRENEW INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS) (CONTINUED)

(Amounts in thousands, except share and per share and otherwise noted)

Three months ended September 30,

Nine months ended September 30,

2023

2024

2023

2024

RMB

US$

RMB

US$

(1) Includes share-based compensation
expenses as follows:

Fulfillment expenses

(5,362)

(3,021)

(430)

(17,910)

(15,992)

(2,279)

Selling and marketing expenses

(5,165)

(12,220)

(1,741)

(13,266)

(56,792)

(8,093)

General and administrative expenses

(19,239)

(13,854)

(1,974)

(56,182)

(45,924)

(6,544)

Technology and content expenses

(5,218)

(3,657)

(521)

(15,649)

(13,611)

(1,940)

(2) Includes amortization of intangible assets
and deferred cost resulting from assets and
business acquisitions as follows:

Selling and marketing expenses

(66,412)

(46,263)

(6,592)

(222,337)

(169,154)

(24,104)

Technology and content expenses

(482)

(130)

(19)

(1,446)

(981)

(140)

Reconciliations of GAAP and Non-GAAP Results

(Amounts in thousands, except share and per share and otherwise noted)

Three months ended September 30,

Nine months ended September 30,

2023

2024

2023

2024

RMB

US$

RMB

US$

Income (loss) from operations

(28,072)

24,885

3,547

(156,627)

(24,135)

(3,439)

Add:

Share-based compensation
expenses

34,984

32,752

4,666

103,007

132,319

18,856

Amortization of intangible assets
and deferred cost resulting from
assets and business acquisitions

66,894

46,393

6,611

223,783

170,135

24,244

Adjusted income from operations
(non-GAAP)

73,806

104,030

14,824

170,163

278,319

39,661

Net income (loss)

(44,188)

17,883

2,550

(159,028)

(85,653)

(12,205)

Add:

Share-based compensation
expenses

34,984

32,752

4,666

103,007

132,319

18,856

Amortization of intangible assets
and deferred cost resulting from
assets and business acquisitions

66,894

46,393

6,611

223,783

170,135

24,244

Less:

Tax effects of amortization of
intangible assets and deferred cost
resulting from assets and business
acquisitions

(10,047)

(6,972)

(994)

(33,607)

(25,559)

(3,642)

Adjusted net income (non-
GAAP)

47,643

90,056

12,833

134,155

191,242

27,253

Adjusted net income per
ordinary share (non-GAAP):

Basic

0.30

0.56

0.08

0.83

1.18

0.17

Diluted

0.29

0.55

0.08

0.80

1.16

0.17

Weighted average number of
shares used in calculating net
income per ordinary share

Basic

161,338,983

161,405,774

161,393,190

162,011,110

Diluted

166,112,358

164,258,720

167,609,332

165,040,389

View original content:https://www.prnewswire.com/news-releases/atrenew-inc-reports-unaudited-third-quarter-2024-financial-results-302311061.html

SOURCE ATRenew Inc.

Technology

Garmin’s revolutionary Runway Occupancy Awareness technology honored with prestigious Laureate Award

Published

8 minutes ago

November 20, 2024

For 67 years, Aviation Week Network’s annual Laureate Awards have recognized extraordinary innovations and achievements in the aviation industry

OLATHE, Kan., Nov. 20, 2024 /PRNewswire/ — Garmin (NYSE: GRMN) today announced that its Runway Occupancy Awareness (ROA) technology received a Laureate Award in the Business Aviation category from Aviation Week Network. Utilizing the Surface Indications and Alert (SURF-IA) technology and ADS-B traffic monitoring, ROA is the first certified solution designed to help pilots navigate complex airports and avoid potential runway incursions caused by nearby airborne aircraft, aircraft on the ground and ground vehicles. This year’s Laureate Awards Ceremony will take place on March 6, 2025, in Washington, D.C.

“We are honored to be recognized by Aviation Week Network with this prestigious Laureate Award for Runway Occupancy Awareness. Garmin’s commitment to innovation and safety is the driving force to continually create revolutionary technologies like ROA that can reduce the risk of runway incursions and help provide confidence for pilots navigating busy and complex airports.” –Carl Wolf, Garmin Vice President Aviation Sales, Marketing & Programs

ROA technology analyzes aircraft GPS and ADS-B traffic information relevant to the airport’s runways and taxiways to assess and alert the crew of a possible runway incursion or collision. ROA provides visual crew-alerting system (CAS) caution and warning annunciations on the pilot’s primary flight display (PFD) and highlights the runway yellow or red, depending on the level of threat, using Garmin’s Synthetic Vision Technology (SVT™). It also provides similar caution and warning annunciations on the SafeTaxi® map displayed simultaneously on the multifunction window.

Both visual and aural alerts are provided to the flight crew based on the potential hazard, ranging from no immediate collision hazard to a warning level alert where a collision risk could occur within 15 seconds. Indications and alerts to the flight crew include: any traffic landing, taking off, stopped, or taxiing on the aircraft’s runway; traffic on approach to the aircraft’s runway or runway that crosses the aircraft’s runway; as well as any traffic on the runway at which the aircraft is holding.

The initial FAA certification was received by Textron Aviation on the G1000® NXi-equipped Cessna Caravan, followed by Garmin’s certification for ROA in their G5000® STC covering the Cessna Citation Excel, XLS, XLS+ and XLS Gen2. ROA is initially available on select Garmin Integrated Flight Decks ranging from G1000 NXi to G5000 equipped aircraft serving the broad general and business aviation markets. To learn more about Garmin’s award-winning ROA technology, visit Garmin.com/Aviation.

Garmin products and services have revolutionized flight and become essential to the lives of pilots and aircraft owners and operators around the world. A leading provider of solutions to general aviation, business aviation, rotorcraft, advanced air mobility, government and defense, and commercial air carrier customers, Garmin believes every day is an opportunity to innovate. Recipient of the prestigious Robert J. Collier Trophy for Garmin Autoland, Garmin developed the world’s first certified autonomous system that activates during an emergency to control and land an aircraft without human intervention. Visit the Garmin Newsroom, email our media team, connect with @garminaviation on social, or follow our blog.

About Garmin International, Inc. Garmin International, Inc. is a subsidiary of Garmin Ltd. (NYSE: GRMN). Garmin Ltd. is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. Garmin, SafeTaxi, G1000 and G5000 are registered trademarks and SVT is a trademark of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.

Notice on Forward-Looking Statements:
This release includes forward-looking statements regarding Garmin Ltd. and its business. Such statements are based on management’s current expectations. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors listed in the Annual Report on Form 10-K for the year ended December 30, 2023, filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of such Form 10-K is available at https://www.garmin.com/en-US/company/investors/earnings/. No forward-looking statement can be guaranteed. Forward-looking statements speak only as of the date on which they are made and Garmin undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Media Contact:
Mikayla Minnick
913-397-8200
media.relations@garmin.com

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SOURCE Garmin International, Inc.

Technology

ZIM Reports Financial Results for the Third Quarter of 2024; Raises Full Year 2024 Guidance

Published

8 minutes ago

November 20, 2024

Reported Revenues of $2.77 Billion, Net Income of $1.13 Billion, Adjusted EBITDA1 of $1.53 Billion and Adjusted EBIT of $1.24 Billion2; Achieved Adjusted EBITDA and Adjusted EBIT Margins of 55% and 45%, Respectively

Achieved 12% Volume Growth YOY with Record Carried Volume of 970 Thousand TEUs in Q3 2024

Increased Full Year 2024 Guidance to Adjusted EBITDA of $3.3 Billion to $3.6 Billion and Adjusted EBIT of $2.15 Billion to $2.45 Billion3

Declared Increased Dividend of ~$440 million, Comprised of a Regular Dividend of ~$340 Million, or 30% of Q3 Net Income, Plus Special Dividend of ~$100 Million; Per Share Distribution: $3.65 Per Share, Reflecting Regular Dividend of $2.81 Per Share Plus Special Dividend of $0.84 Per Share

HAIFA, Israel, Nov. 20, 2024 /PRNewswire/ — ZIM Integrated Shipping Services Ltd. (NYSE: ZIM), (“ZIM” or the “Company”) a global container liner shipping company, announced today its consolidated results for the three and nine months ended September 30, 2024.

Third Quarter 2024 Highlights

Net income for the third quarter was $1.13 billion (compared to a net loss of $2.27 billion in the third quarter of 20234), or diluted earnings per share of $9.345 (compared to diluted loss per share of $18.90 in the third quarter of 2023).Adjusted EBITDA1 for the third quarter was $1.53 billion, a year-over-year increase of 626%.Operating income (EBIT) for the third quarter was $1.23 billion, compared to operating loss of $2.28 billion in the third quarter of 2023.Adjusted EBIT1 for the third quarter was $1.24 billion, compared to Adjusted EBIT loss of $213 million in the third quarter of 2023.Total revenues for the third quarter were $2.77 billion, a year-over-year increase of 117%.Carried volume in the third quarter was 970 thousand TEUs, a year-over-year growth of 12%.Average freight rate per TEU in the third quarter was $2,480, a year-over-year increase of 118%.Net debt1 of $2.70 billion as of September 30, 2024, compared to $2.31 billion as of December 31, 2023; net leverage ratio1 of 0.9x as of September 30, 2024, compared to 2.2x as of December 31, 2023.

Eli Glickman, ZIM President & CEO, stated, “ZIM delivered strong third quarter results, as we again achieved record carried volumes contributing to our outstanding financial performance. We are pleased to share our success with our shareholders and declare a special dividend of ~$100 million on top of the regular 30% of quarterly net income dividend payout of ~$340 million, for a total dividend of ~$440 million, or $3.65 per share. Our growing earnings power is reflective of a strong rate environment, but also a testament to our diligent execution, upscaling our capacity and enhancing our cost structure. We’ve continued to see incremental benefits from our strategic investment in our operated capacity as new larger, more modern, cost-effective vessels join our fleet.”

Mr. Glickman added, “Also contributing to our strong Q3 was a decision we made earlier in the year to increase our exposure to spot volumes in the Transpacific trade. A key differentiator for ZIM is our commercial agility and we intend to continue to leverage this strength to capitalize on market opportunities moving forward. Based on results that have exceeded expectations to date and improved outlook for the fourth quarter of 2024, we have increased our full year 2024 guidance and today forecast full year Adjusted EBITDA between $3.3 billion and $3.6 billion and Adjusted EBIT between $2.15 billion and $2.45 billion.”

Mr. Glickman concluded, “We will close out the year with the final delivery of the remaining four out of 46 newbuild containerships that we secured, which include 28 LNG-powered vessels. Entering 2025, we will be operating a fleet that is both well-equipped to meet emissions reduction targets and well suited to the trades in which we operate. Supported by our declining unit costs, we believe ZIM is well positioned to deliver profitable growth over the long term.”

Summary of Key Financial and Operational Results

Q3-24

Q3-23

9M-24

9M-23

Carried volume (K-TEUs)………………………….

970

867

2,768

2,496

Average freight rate ($/TEU)………………………

2,480

1,139

1,889

1,235

Total revenues ($ in millions)……………………..

2,765

1,273

6,260

3,957

Operating income (loss) (EBIT) ($ in millions)

1,235

(2,276)

1,870

(2,457)

Profit (loss) before income tax ($ in millions).

1,133

(2,342)

1,604

(2,678)

Net income (loss) ($ in millions)………………….

1,126

(2,270)

1,591

(2,541)

Adjusted EBITDA1 ($ in millions)………………..

1,531

211

2,725

859

Adjusted EBIT1 ($ in millions)…………………….

1,236

(213)

1,891

(373)

Net income (loss) margin (%)…………………….

(178)

(64)

Adjusted EBITDA margin (%)…………………….

Adjusted EBIT margin (%)…………………………

(17)

(9)

Diluted earnings (loss) per share ($)…………..

9.34

(18.90)

13.17

(21.19)

Net cash generated from operating activities
($ in millions)…………………………………………..

1,498

338

2,600

858

Free cash flow1 ($ in millions)……………………

1,454

328

2,470

791

SEP-30-24

DEC-31-23

Net debt1 ($ in millions)…………………………….

2,698

2,309

Financial and Operating Results for the Third Quarter Ended September 30, 2024

Total revenues were $2.77 billion for the third quarter of 2024, compared to $1.27 billion for the third quarter of 2023, mainly driven by the increase in freight rates as well as carried volume.

ZIM carried 970 thousand TEUs in the third quarter of 2024, compared to 867 thousand TEUs in the third quarter of 2023. The average freight rate per TEU was $2,480 for the third quarter of 2024, compared to $1,139 for the third quarter of 2023.

Operating income (EBIT) for the third quarter of 2024 was $1.23 billion, compared to operating loss of $2.28 billion for the third quarter of 2023. The increase was primarily driven by the impairment loss recorded in the third quarter of 2023 and the above-mentioned increase in revenues.

Net income for the third quarter of 2024 was $1.13 billion, compared to net loss of $2.27 billion for the third quarter of 2023, also mainly driven by the above-mentioned impairment loss recorded in the third quarter of 2023 and the increase in revenues.

Adjusted EBITDA for the third quarter of 2024 was $1.53 billion, compared to $211 million for the third quarter of 2023. Adjusted EBIT was $1.24 billion for the third quarter of 2024, compared to Adjusted EBIT loss of $213 million for the third quarter of 2023. Adjusted EBITDA and Adjusted EBIT margins for the third quarter of 2024 were 55% and 45%, respectively. This compares to 17% and -17% for the third quarter of 2023, respectively.

Net cash generated from operating activities was $1.50 billion for the third quarter of 2024, compared to $338 million for the third quarter of 2023.

Financial and Operating Results for the Nine Months Ended September 30, 2024

Total revenues were $6.26 billion for the first nine months of 2024, compared to $3.96 billion for the first nine months of 2023, primarily driven by both an increase in freight rates as well as carried volume.

ZIM carried 2,768 thousand TEUs in the first nine months of 2024, compared to 2,496 thousand TEUs in the first nine months of 2023. The average freight rate per TEU was $1,889 for the first nine months of 2024, compared to $1,235 for the first nine months of 2023.

Operating income (EBIT) for the first nine months of 2024 was $1.87 billion, compared to operating loss of $2.46 billion for the first nine months of 2023. The increase was primarily driven by the above-mentioned increase in revenues and the impairment loss recorded in the third quarter of 2023.

Net income for the first nine months of 2024 was $1.59 billion, compared to net loss of $2.54 billion for the first nine months of 2023, also mainly driven by the above-mentioned increase in revenues and impairment loss recorded in the third quarter of 2023.

Adjusted EBITDA was $2.72 billion for the first nine months of 2024, compared to $859 million for the first nine months of 2023. Adjusted EBIT was $1.90 billion for the first nine months of 2024, compared to Adjusted EBIT loss of $373 million for the first nine months of 2023. Adjusted EBITDA and Adjusted EBIT margins for the first nine months of 2024 were 44% and 30%, respectively. This compares to 22% and -9% for the first nine months of 2023.

Net cash generated from operating activities was $2.60 billion for the first nine months of 2024, compared to $858 million for the first nine months of 2023.

Liquidity, Cash Flows and Capital Allocation

ZIM’s total cash position (which includes cash and cash equivalents and investments in bank deposits and other investment instruments) increased by $441 million from $2.69 billion as of December 31, 2023 to $3.13 billion as of September 30, 2024. Capital expenditures totaled $50 million for the third quarter of 2024, compared to $14 million for the third quarter of 2023. Net debt position as of September 30, 2024 was $2.70 billion, compared to $2.31 billion, as of December 31, 2023, an increase of $389 million. ZIM’s net leverage ratio as of September 30, 2024, was 0.9x, compared to 2.2x as of December 31, 2023.

Third Quarter 2024 and Special Dividend

In accordance with the Company’s dividend policy, the Company’s Board of Directors declared a regular cash dividend of approximately $340 million, or $2.81 per ordinary share, reflecting approximately 30% of third quarter 2024 net income. In addition, the Board of Directors declared a special dividend of approximately $100 million, or $0.84 per share, for a total dividend of approximately $440 million or $3.65 per share. The dividend (both regular and special) will be paid on December 9, 2024, to holders of record of ZIM ordinary shares as of December 2, 2024.

All future dividends are subject to the discretion of Company’s Board of Directors and to the restrictions provided by Israeli law.

Use of Non-IFRS Measures in the Company’s 2024 Guidance

A reconciliation of the Company’s non-IFRS financial measures included in its full-year 2024 guidance to corresponding IFRS measures is not available on a forward-looking basis. In particular, the Company has not reconciled its Adjusted EBITDA and Adjusted EBIT because the various reconciling items between such non-IFRS financial measures and the corresponding IFRS measures cannot be determined without unreasonable effort due to the uncertainty regarding, and the potential variability of, the future costs and expenses for which the Company adjusts, the effect of which may be significant, and all of which are difficult to predict and are subject to frequent change.

Updated Full-Year 2024 Guidance

The Company increased its guidance for the full year of 2024 and now expects to generate Adjusted EBITDA between $3.3 billion and $3.6 billion and Adjusted EBIT between $2.15 billion and $2.45 billion. Previously, the Company expected to generate Adjusted EBITDA between $2.6 billion and $3.0 billion and Adjusted EBIT between $1.45 billion and $1.85 billion.

Conference Call Details

Management will host a conference call and webcast (along with a slide presentation) to review the results and provide a corporate update today at 8:00 AM ET.

To access the live conference call by telephone, please dial the following numbers: United States (toll free) +1-800-715-9871 or +1-646-307-1963; Israel +972-3-376-1144 or UK/international +44-20-3481-4247, and reference conference ID: 1972775 or the conference name. The call (and slide presentation) will be available via live webcast through ZIM’s website, located at the following link. Following the conclusion of the call, a replay of the conference call will be available on the Company’s website.

About ZIM

Founded in Israel in 1945, ZIM (NYSE: ZIM) is a leading global container liner shipping company with established operations in more than 90 countries serving approximately 33,000 customers in over 300 ports worldwide. ZIM leverages digital strategies and a commitment to ESG values to provide customers innovative seaborne transportation and logistics services and exceptional customer experience. ZIM’s differentiated global-niche strategy, based on agile fleet management and deployment, covers major trade routes with a focus on select markets where the company holds competitive advantages. Additional information about ZIM is available at www.ZIM.com.

Forward-Looking Statements

The following information contains, or may be deemed to contain forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995). In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about the Company, may include projections of the Company’s future financial results, its anticipated growth strategies and anticipated trends in its business. These statements are only predictions based on the Company’s current expectations and projections about future events or results. There are important factors that could cause the Company’s actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause such differences include, but are not limited to: market changes in freight, bunker, charter and other rates or prices (including as a result of the continued situation in the Red Sea), supply-demand fluctuations in the containerized shipping market, new legislation or regulation affecting the Company’s operations, new competition and changes in the competitive environment, our ability to achieve cost savings or expense reductions, the outcome of legal proceedings to which the Company is a party, global, regional and/or local political instability, including the ongoing war between Israel and Hamas, the increased tension between Israel and Iran and its proxies, in particular the ongoing hostilities between Israel and Hezbollah, inflation rate fluctuations, capital markets fluctuations and other risks and uncertainties detailed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission (SEC), including under the caption “Risk Factors” in its 2023 Annual Report filed with the SEC on March 13, 2024.

Although the Company believes the expectations reflected in the forward-looking statements contained herein are reasonable, it cannot guarantee future results, level of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company assumes no duty to update any of these forward-looking statements after the date hereof to conform its prior statements to actual results or revised expectations, except as otherwise required by law.

The Company prepares its financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).

Use of Non-IFRS Financial Measures

The Company presents non-IFRS measures as additional performance measures as the Company believes that it enables the comparison of operating performance between periods on a consistent basis. These measures should not be considered in isolation, or as a substitute for operating income, any other performance measures, or cash flow data, which were prepared in accordance with Generally Accepted Accounting Principles as measures of profitability or liquidity. Please note that Adjusted EBITDA does not take into account debt service requirements or other commitments, including capital expenditures, and therefore, does not necessarily indicate the amounts that may be available for the Company’s use. In addition, the non-IFRS financial measures presented by the Company may not be comparable to similarly titled measures reported by other companies due to differences in the way these measures are calculated.

Adjusted EBITDA is a non-IFRS financial measure which we define as net income (loss) adjusted to exclude financial expenses (income), net, income taxes, depreciation and amortization in order to reach EBITDA, and further adjusted, as applicable, to exclude impairment of assets, non-cash charter hire expenses, capital gains (losses) beyond the ordinary course of business and expenses related to legal contingencies.

Adjusted EBIT is a non-IFRS financial measure which we define as net income (loss) adjusted to exclude financial expenses (income), net and income taxes, in order to reach our results from operating activities, or EBIT, and further adjusted, as applicable, to exclude impairment of assets, non-cash charter hire expenses, capital gains (losses) beyond the ordinary course of business and expenses related to legal contingencies.

Free cash flow is a non-IFRS financial measure which we define as net cash generated from operating activities minus capital expenditures, net.

Net debt is a non-IFRS financial measure which we define as face value of short- and long-term debt, minus cash and cash equivalents, bank deposits and other investment instruments. We refer to this measure as net cash when cash and cash equivalents, bank deposits and other investment instruments exceed the face value of short- and long-term debt.

Net leverage ratio is a non-IFRS financial measure which we define as net debt (see above) divided by Adjusted EBITDA for the last twelve-month period. When our net debt is less than zero, we report the net leverage ratio as zero.

See the reconciliation of net income to Adjusted EBIT and Adjusted EBITDA and net cash generated from operating activities to free cash flow in the tables provided below.

Investor Relations:

Elana Holzman
ZIM Integrated Shipping Services Ltd.
+972-4-865-2300
holzman.elana@zim.com

Leon Berman
The IGB Group
212-477-8438
lberman@igbir.com

Media:

Avner Shats
ZIM Integrated Shipping Services Ltd.
+972-4-865-2520
media@zim.com

CONSOLIDATED BALANCE SHEET (Unaudited)

(U.S. dollars in millions)

September 30

December 31

2024

2023

Assets

Vessels

5,301.9

3,222.9

3,758.9

Containers and handling equipment

988.7

788.2

792.9

Other tangible assets

91.1

61.1

85.2

Intangible assets

107.6

93.3

102.0

Investments in associates

26.0

26.8

26.4

Other investments

844.6

1,252.6

908.7

Other receivables

69.9

105.5

97.9

Deferred tax assets

2.5

9.6

2.6

Total non-current assets

7,432.3

5,560.0

5,774.6

Inventories

208.4

156.4

179.3

Trade and other receivables

1,062.5

644.3

596.5

Other investments

766.6

918.6

874.1

Cash and cash equivalents

1,548.7

912.1

921.5

Total current assets

3,586.2

2,631.4

2,571.4

Total assets

11,018.5

8,191.4

8,346.0

Equity

Share capital and reserves

2,041.1

1,980.7

2,017.5

Retained earnings

1,884.8

586.9

437.2

Equity attributable to owners of the Company

3,925.9

2,567.6

2,454.7

Non-controlling interests

4.8

3.8

3.3

Total equity

3,930.7

2,571.4

2,458.0

Liabilities

Lease liabilities

4,284.7

2,952.0

3,244.1

Loans and other liabilities

67.4

79.3

73.6

Employee benefits

43.4

39.4

46.1

Deferred tax liabilities

5.2

13.0

6.1

Total non-current liabilities

4,400.7

3,083.7

3,369.9

Trade and other payables

668.3

554.6

566.4

Provisions

93.0

58.3

60.7

Contract liabilities

433.8

207.3

198.1

Lease liabilities

1,433.6

1,668.0

1,644.7

Loans and other liabilities

58.4

48.1

48.2

Total current liabilities

2,687.1

2,536.3

2,518.1

Total liabilities

7,087.8

5,620.0

5,888.0

Total equity and liabilities

11,018.5

8,191.4

8,346.0

CONSOLIDATED INCOME STATEMENTS (Unaudited)

(U.S. dollars in millions, except per share data)

Nine months
ended September 30

Three months
ended September 30

Year ended
December 31

2024

2023

2024

2023

Income from voyages and related services

6,259.8

3,956.9

2,765.2

1,273.0

5,162.2

Cost of voyages and related services

Operating expenses and cost of services

(3,381.9)

(2,922.0)

(1,167.8)

(1,008.4)

(3,885.1)

Depreciation

(824.9)

(1,212.8)

(292.1)

(417.4)

(1,449.8)

Impairment of assets

(2,034.9)

Gross profit (loss)

2,053.0

(2,212.8)

1,305.3

(2,187.7)

(2,207.6)

Other operating income

32.9

2.5

7.3

0.6

14.4

Other operating expenses

(1.7)

(32.5)

(1.1)

(22.4)

(29.3)

General and administrative expenses

(209.7)

(209.4)

(75.9)

(63.9)

(280.7)

Share of loss of associates

(4.8)

(5.2)

(0.8)

(2.3)

(7.8)

Results from operating activities

1,869.7

(2,457.4)

1,234.8

(2,275.7)

(2,511.0)

Finance income

81.0

117.7

19.8

35.6

142.2

Finance expenses

(346.5)

(338.7)

(121.6)

(101.5)

(446.7)

Net finance expenses

(265.5)

(221.0)

(101.8)

(65.9)

(304.5)

Profit (loss) before income taxes

1,604.2

(2,678.4)

1,133.0

(2,341.6)

(2,815.5)

Income taxes

(13.1)

137.1

(6.8)

71.1

127.6

Profit (loss) for the period

1,591.1

(2,541.3)

1,126.2

(2,270.5)

(2,687.9)

Attributable to:

Owners of the Company

1,586.2

(2,547.2)

1,124.6

(2,272.6)

(2,695.6)

Non-controlling interests

4.9

5.9

1.6

2.1

7.7

Profit (loss) for the period

1,591.1

(2,541.3)

1,126.2

(2,270.5)

(2,687.9)

Earnings (loss) per share (US$)

Basic earnings (loss) per 1 ordinary share

13.18

(21.19)

9.34

(18.90)

(22.42)

Diluted earnings (loss) per 1 ordinary share

13.17

(21.19)

9.34

(18.90)

(22.42)

Weighted average number of shares for earnings
(loss) per share calculation:

Basic

120,340,513

120,194,990

120,372,813

120,219,761

120,213,031

Diluted

120,463,258

120,194,990

120,475,290

120,219,761

120,213,031

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(U.S. dollars in millions)

Nine months ended
September 30

Three months ended
September 30

Year ended
December 31

2024

2023

2024

2023

Cash flows from operating activities

Profit (loss) for the period

1,591.1

(2,541.3)

1,126.2

(2,270.5)

(2,687.9)

Adjustments for:

Depreciation and amortization

833.6

1,232.5

295.0

423.8

1,471.8

Impairment loss

2,063.4

Net finance expenses

265.5

221.0

101.8

65.9

304.5

Share of losses and change in fair value of investees

4.8

4.5

0.8

2.3

6.5

Capital loss (gain), net

(31.7)

3.2

(6.2)

(4.2)

(10.9)

Income taxes

13.1

(137.1)

6.8

(71.1)

(127.6)

Other non-cash items

11.9

14.2

8.9

4.5

18.9

2,688.3

860.4

1,533.3

214.1

1,038.7

Change in inventories

(29.1)

34.3

(20.7)

17.7

11.4

Change in trade and other receivables

(481.3)

237.5

(34.3)

60.6

242.7

Change in trade and other payables including contract liabilities

326.8

(76.7)

(5.0)

19.2

(95.1)

Change in provisions and employee benefits

31.9

7.0

4.6

4.1

15.9

(151.7)

202.1

(55.4)

101.6

174.9

Dividends received from associates

2.4

1.7

1.2

0.2

2.3

Interest received

64.6

113.0

24.8

25.0

133.8

Income taxes received (paid)

(3.2)

(319.4)

(6.4)

(3.3)

(329.7)

Net cash generated from operating activities

2,600.4

857.8

1,497.5

337.6

1,020.0

Cash flows from investing activities

Proceeds from sale of tangible assets, intangible assets and interest
in investees

10.5

21.4

7.3

3.7

27.4

Acquisition and capitalized expenditures of tangible assets,
intangible assets and interest in investees

(141.1)

(75.2)

(50.3)

(13.7)

(115.7)

Proceeds from sale (acquisition) of investment instruments, net

240.8

(609.6)

(74.3)

(26.2)

(138.2)

Loans granted to investees

(5.2)

(3.8)

(2.4)

(2.1)

(5.4)

Change in other receivables

23.3

(4.7)

7.9

9.3

3.2

Change in other investments (mainly deposits), net

(34.4)

2,002.6

(34.4)

19.9

2,005.2

Net cash generated from (used in) investing activities

93.9

1,330.7

(146.2)

(9.1)

1,776.5

Cash flows from financing activities

Repayment of lease liabilities and borrowings

(1,591.2)

(1,214.1)

(474.2)

(352.7)

(1,713.1)

Change in short term loans

10.3

(21.0)

10.3

(21.0)

Dividend paid to non-controlling interests

(4.2)

(7.5)

(0.5)

(8.9)

Dividend paid to owners of the Company

(139.6)

(769.2)

(111.9)

(769.2)

Interest paid

(342.2)

(281.5)

(120.6)

(98.8)

(380.7)

Net cash used in financing activities

(2,066.9)

(2,293.3)

(696.9)

(451.5)

(2,892.9)

Net change in cash and cash equivalents

627.4

(104.8)

654.4

(123.0)

(96.4)

Cash and cash equivalents at beginning of the period

921.5

1,022.1

889.8

1,040.3

1,022.1

Effect of exchange rate fluctuation on cash held

(0.2)

(5.2)

4.5

(5.2)

(4.2)

Cash and cash equivalents at the end of the period

1,548.7

912.1

1,548.7

912.1

921.5

RECONCILIATION OF NET INCOME TO ADJUSTED EBIT*

(U.S. dollars in millions)

Nine months ended
September 30

Three months ended
September 30

2024

2023

2024

2023

Net income (loss)

1,591

(2,541)

1,126

(2,270)

Financial expenses, net

266

221

102

Income taxes

(137)

(71)

Operating income (EBIT)

1,870

(2,457)

1,235

(2,276)

Capital loss (gain), beyond the ordinary
course of business

(2)

Impairment of assets

2,063

Expenses related to legal contingencies

Adjusted EBIT

1,891

(373)

1,236

(213)

Adjusted EBIT margin

30 %

(9) %

45 %

(17) %

* The table above may contain slight summation differences due to rounding.

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA*

(U.S. dollars in millions)

Nine months ended
September 30

Three months ended
September 30

2024

2023

2024

2023

Net income (loss)

1,591

(2,541)

1,126

(2,270)

Financial expenses, net

266

221

102

Income taxes

(137)

(71)

Depreciation and amortization

834

1,232

295

424

EBITDA

2,703

(1,225)

1,530

(1,852)

Capital loss (gain), beyond the ordinary
course of business

(2)

Impairment of assets

2,063

Expenses related to legal contingencies

Adjusted EBITDA

2,725

859

1,531

211

Net income (loss) margin

25 %

(64) %

41 %

(178) %

Adjusted EBITDA margin

44 %

22 %

55 %

17 %

* The table above may contain slight summation differences due to rounding.

RECONCILIATION OF NET CASH GENERATED FROM OPERATING ACTIVITIES TO FREE CASH FLOW

(U.S. dollars in millions)

Nine months ended
September 30

Three months ended
September 30

2024

2023

2024

2023

Net cash generated from operating
activities

2,600

858

1,498

338

Capital expenditures, net

(130)

(67)

(44)

(10)

Free cash flow

2,470

791

1,454

328

[1] See disclosure regarding “Use of Non-IFRS Financial Measures.”

[2] Operating income (EBIT) for the third quarter was $1.23 billion. A reconciliation to Adjusted EBIT is provided in the tables below.

[3] The Company does not provide IFRS guidance because it cannot be determined without unreasonable effort. See disclosure regarding “Use of Non-IFRS Measures in the Company’s 2024 Guidance.”

[4] Net loss for the third quarter of 2023 was primarily driven by a non-cash impairment loss of $2.06 billion.

[5] The number of shares used to calculate the diluted earnings per share is 120,475,290. The number of outstanding shares as of September 30, 2024 was 120,389,157.

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SOURCE Zim Integrated Shipping Services Ltd.

Technology

Outlook strong for home services with pros confident in 2025 growth

Published

8 minutes ago

November 20, 2024

New Housecall Pro report highlights industry resilience, trade career appeal, and AI’s role in boosting growth and efficiency.

SAN DIEGO, Nov. 20, 2024 /PRNewswire/ — Housecall Pro, the leading software platform serving more than 180,000 home service professionals, today released findings from its Fall 2024 report. The report, based on a survey of over 400 home services pros, highlights four trends shaping the future of the home services industry: growing business confidence, rising demand for skilled labor, the trades’ appeal as a stable career path, and the expanding adoption of AI.

Pros confident in 2025 growth
According to the survey, 77% of home service professionals expect to grow their businesses in 2025, with 40% expecting to grow by more than 10%. Despite challenges like inflation and rising material costs, professionals remain optimistic, supported by the essential nature of their work and ongoing demand for home services.

“The home services industry has proven its resilience in 2024, navigating economic uncertainty and inflation,” said Roland Ligtenberg, Housecall Pro co-founder and SVP of Innovation. “This strength, paired with increasing demand for skilled trades, provides a solid foundation for continued success.”

Trades offer a stable career path amid ongoing skilled labor shortage
The report underscores the appeal of trade careers as a stable and rewarding alternative to traditional college paths—particularly as the majority of pros surveyed cite finding qualified candidates to be their greatest hiring challenge. With the Bureau of Labor Statistics projecting more than 165,000 annual job openings across the plumbing, electrical and HVAC industries through 2033, the trades are positioned to offer continued long-term job security. Nearly 80% of professionals surveyed believe the trades provide a more stable career path than college, while 86% anticipate rising demand for skilled workers over the next five years.

The report also emphasizes the need for mentorship and training as experienced professionals retire, with 80% of pros saying increasing mentorship, apprenticeships and education are key to solving the skilled labor shortage.

Businesses embracing AI to drive efficiency and growth
The survey also highlights the growing role of AI in the home services industry. Forty-two percent of professionals reported using AI tools in the past year, citing benefits such as increased efficiency, revenue growth, and improved job management. Looking ahead, 44% of respondents believe AI will continue to enhance roles in the trades rather than replace them.

“Skilled workers in the trades are uniquely positioned to adopt AI tools that streamline workflows and improve efficiency, without the fear of job displacement,” said Ligtenberg. “By pairing advanced technology with skilled human expertise, the industry is not only boosting productivity but also attracting the next generation of talent to the trades.”

Access to all the findings are available in the full survey report.

About Housecall Pro
Housecall Pro is a top-rated software platform that empowers home service professionals to save time, grow their businesses, and deliver exceptional service. With tools for scheduling, dispatching, invoicing, and more, Housecall Pro enables professionals to focus on what they do best. Since 2013, Housecall Pro has been committed to championing pros to success through innovative product solutions and a supportive community.
For more information, visit housecallpro.com.

MEDIA CONTACT:

Heather Ripley
Ripley PR
(865) 977-1973
hripley@ripleypr.com

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SOURCE Housecall Pro