Technology

So-Young Reports Unaudited Third Quarter 2024 Financial Results

Published

4 hours ago

November 20, 2024

BEIJING, Nov. 20, 2024 /PRNewswire/ — So-Young International Inc. (Nasdaq: SY) (“So-Young” or the “Company”), the largest and most vibrant social community in China for consumers, professionals and service providers in the medical aesthetics industry, today announced its unaudited financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 Financial Highlights

Total revenues were RMB371.8 million (US$53.0 million[1]), compared with RMB385.3 million in the corresponding period of 2023, exceeding the high end of guidance.Net income attributable to So-Young International Inc. was RMB20.3 million (US$2.9 million), compared with net income attributable to So-Young International Inc. of RMB18.3 million in the same period of 2023.Non-GAAP net income attributable to So-Young International Inc.[2] was RMB22.2 million (US$3.2 million), compared with non-GAAP net income attributable to So-Young International Inc. of RMB9.5 million in the same period of 2023.

Third Quarter 2024 Operational Highlights

Average mobile MAUs were 1.4 million, compared with 3.1 million in the third quarter of 2023.Number of medical service providers subscribing to information services on So-Young’s platform was 1,322, compared with 1,397 in the third quarter of 2023.Total number of purchasing users through reservation services was 114.9 thousand and the aggregate value of medical aesthetic treatment transactions facilitated by So-Young’s platform was RMB346.0 million.

Mr. Xing Jin, Co-Founder and Chief Executive Officer of So-Young, said, “Our third quarter performance beat the high end of our guidance once again, highlighting the resilience of our business. Sales of medical products and maintenance services grew by 18.7% year-over-year, becoming a key growth driver contributing to a year-over-year increase in net income. This underscores the effectiveness of our strategy to stay at the forefront of industry trends by deepening the synergies from our vertical integration and continuously diversifying our offerings. Our clinic network has experienced significant growth. The number of stores has grown to 16 by the end of this quarter, extending our presence into additional major cities. All stores are situated in central business districts, enhancing our market coverage and competitive position. To further scale our offline presence, we are accelerating the deployment of this proven standardized model in other cities nationwide and are exploring franchising opportunities to engage with a wider audience. The reputational strength of our brand and our deep understanding of evolving consumer behavior uniquely position us to develop products that resonate with consumer needs. Sales momentum remains robust, driven by both our well-established products and exciting new launches in collaboration with our supply chain partners. Looking ahead, we are committed to seizing opportunities across the entire medical aesthetics value chain while deepening the integration of our three core businesses to maximize operational efficiency, customer satisfaction, and sustainable growth.”

Mr. Hui Zhao, Chief Financial Officer of So-Young, added, “Our third-quarter results reflect our ability to strategically adapt to changing market dynamics. Through disciplined cost management and targeted growth initiatives, we are carefully navigating this challenging market environment while building a solid foundation for future expansion. Encouragingly, our net income and non-GAAP net income attributable to So-Young International Inc. improved significantly, with year-over-year growth rates exceeding 8.9% and 133.1% respectively. Looking ahead, we will leverage our expanding network of clinics and meticulously curated product offerings to address the growing demand for high-quality solutions and services. By maintaining operational efficiency and scalability, we are well-positioned to continue leading the medical aesthetics sector, delivering sustainable growth and long-term value for our shareholders.”

[1] This press release contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) solely for the convenience of the reader. Unless otherwise specified, all translations of Renminbi amounts into U.S. dollar amounts in this press release are made at RMB7.0176 to US$1.00, which was the U.S. dollars middle rate announced by the Board of Governors of the Federal Reserve System of the United States on September 30, 2024.

[2] Non-GAAP net income attributable to So-Young International Inc. is defined as net income attributable to So-Young International Inc. excluding share-based compensation expenses attributable to So-Young International Inc. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.

Third Quarter 2024 Financial Results

Revenues

Total revenues were RMB371.8 million (US$53.0 million), a decrease of 3.5% from RMB385.3 million in the same period of 2023. The decrease was primarily due to a decrease in the number of medical service providers subscribing to information services on So-Young’s platform.

Information services and other revenues were RMB263.0 million (US$37.5 million), a decrease of 8.0% from RMB285.9 million in the same period of 2023. The decrease was primarily due to a decrease in the number of medical service providers subscribing to information services on So-Young’s platform.Reservation services revenues were RMB19.6 million (US$2.8 million), a decrease of 18.9% from RMB24.1 million in the same period of 2023. The decrease was primarily due to a decrease in consumer spending through our platform.Sales of medical products and maintenance services were RMB89.3 million (US$12.7 million), an increase of 18.7% from RMB75.2 million in the same period of 2023, primarily due to an increase in the order volumes for cosmetic products and medical equipment.

Cost of Revenues

Cost of revenues was RMB142.2 million (US$20.3 million), a decrease of 0.3% from RMB142.6 million in the third quarter of 2023. The decrease was primarily due to a decrease in the cost of services associated with the information services. Cost of revenues included share-based compensation expenses of RMB0.1 million (US$0.0 million), compared with the share-based compensation expenses of RMB0.4 million in the corresponding period of 2023.

Cost of services and others were RMB98.6 million (US$14.1 million), a decrease of 4.7% from RMB103.5 million in the third quarter of 2023. The decrease was primarily due to a decrease in the cost of services associated with the information services.Cost of medical products sold and maintenance services were RMB43.5 million (US$6.2 million), an increase of 11.3% from RMB39.1 million in the third quarter of 2023. The increase was primarily due to an increase in costs associated with the sales of cosmetic products.

Operating Expenses

Total operating expenses were RMB225.0 million (US$32.1 million), a decrease of 8.1% from RMB244.7 million in the third quarter of 2023.

Sales and marketing expenses were RMB114.9 million (US$16.4 million), a decrease of 20.1% from RMB143.8 million in the third quarter of 2023. The decrease was mainly due to a decrease in expenses associated with branding and user acquisition activities. Sales and marketing expenses included share-based compensation expenses of RMB0.2 million (US$0.0 million), compared with RMB0.5 million in the corresponding period of 2023.General and administrative expenses were RMB69.9 million (US$10.0 million), an increase of 39.1% from RMB50.2 million in the third quarter of 2023. The increase was primarily due to an increase in share-based compensation expenses. General and administrative expenses included share-based compensation expenses of RMB1.3 million (US$0.2 million), compared with a reversal of share-based compensation expenses of RMB11.2 million in the corresponding period of 2023.Research and development expenses were RMB40.2 million (US$5.7 million), a decrease of 20.6% from RMB50.6 million in the third quarter of 2023. The decrease was primarily attributable to improvements in staff efficiency. Research and development expenses included share-based compensation expenses of RMB0.3 million (US$0.0 million), compared with RMB1.5 million in the corresponding period of 2023.

Income Tax (Expenses)/Benefits

Income tax expenses were RMB2.1 million (US$0.3 million), compared with income tax benefits of RMB2.2 million in the same period of 2023.

Net Income Attributable to So-Young International Inc.

Net income attributable to So-Young International Inc. was RMB20.3 million (US$2.9 million), compared with a net income attributable to So-Young International Inc. of RMB18.3 million in the third quarter of 2023.

Non-GAAP Net Income Attributable to So-Young International Inc.

Non-GAAP net income attributable to So-Young International Inc., which excludes the impact of share-based compensation expenses attributable to So-Young International Inc., was RMB22.2 million (US$3.2 million), compared with RMB9.5 million non-GAAP net income attributable to So-Young International Inc. in the same period of 2023.

Basic and Diluted Earnings per ADS

Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB0.20 (US$0.03) and RMB0.20 (US$0.03), respectively, compared with basic and diluted earnings per ADS attributable to ordinary shareholders of RMB0.18 and RMB0.18, respectively, in the same period of 2023.

Cash and Cash Equivalents, Restricted Cash and Term Deposits, Term Deposits and Short-Term Investments

As of September 30, 2024, cash and cash equivalents, restricted cash and term deposits, term deposits and short-term investments were RMB1,252.6 million (US$178.5 million), compared with RMB1,341.6 million as of December 31, 2023.

Business Outlook

For the fourth quarter of 2024, So-Young expects total revenues to be between RMB350.0 million (US$49.9 million) and RMB370.0 million (US$52.7 million), representing a 10.4% to 5.3% decrease from the same period in 2023. The above outlook is based on the current market conditions and reflects the Company’s preliminary estimates of market and operating conditions, as well as customer demand, which are all subject to change.

Non-GAAP Financial Measures

To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP income/(loss) from operations and non-GAAP net income attributable to So-Young International Inc. by excluding share-based compensation expenses from income/(loss) from operations and net income attributable to So-Young International Inc., respectively. The Company believes these non-GAAP financial measures are important to help investors understand the Company’s operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess the Company’s core operating results, as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses have been and will continue to be incurred in the future. All these are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of the Company’s results. The Company compensates for these limitations by providing the relevant disclosure of its share-based compensation expenses in the reconciliations to the most directly comparable GAAP financial measures, which should be considered when evaluating the Company’s performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release.

Conference Call Information

So-Young’s management will hold an earnings conference call on Wednesday, November 20, 2024, at 7:00 AM U.S. Eastern Time (8:00 PM on the same day, Beijing/Hong Kong Time). Dial-in details for the earnings conference call are as follows:

International:

+1-412-902-4272

Mainland China:

4001-201203

US:

+1-888-346-8982

Hong Kong:

+852-301-84992

Passcode:

So-Young International Inc.

A telephone replay will be available two hours after the conclusion of the conference call through 23:59 U.S. Eastern Time, November 27, 2024. The dial-in details are:

International:

+1-412-317-0088

US:

+1-877-344-7529

Passcode:

2642052

Additionally, a live and archived webcast of this conference call will be available at http://ir.soyoung.com.

About So-Young International Inc.

So-Young International Inc. (Nasdaq: SY) is the largest and most vibrant social community in China for consumers, professionals and service providers in the medical aesthetics industry. The Company presents users with reliable information through offering high quality and trustworthy content together with a multitude of social functions on its platform, as well as by curating medical aesthetic service providers that are carefully selected and vetted. Leveraging So-Young’s strong brand image, extensive audience reach, trust from its users, highly engaging social community and data insights, the Company is well-positioned to expand both along the medical aesthetic industry value chain and into the massive, fast-growing consumption healthcare service market.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under 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,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the Financial Guidance and quotations from management in this announcement, as well as So-Young’s strategic and operational plans, contain forward-looking statements. So-Young may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, 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 but not limited to statements about So-Young’s beliefs 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: So-Young’s strategies; So-Young’s future business development, financial condition and results of operations; So-Young’s ability to retain and increase the number of users and medical service providers, and expand its service offerings; competition in the online medical aesthetic service industry; changes in So-Young’s revenues, costs or expenditures; Chinese governmental policies and regulations relating to the online medical aesthetic service industry, 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 the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and So-Young undertakes no duty to update such information, except as required under applicable law.

For more information, please contact:

So-Young

Investor Relations
Ms. Mona Qiao
Phone: +86-10-8790-2012
E-mail: ir@soyoung.com

Christensen

In China
Ms. Dee Wang
Phone: +86-10-5900-1548
E-mail: dee.wang@christensencomms.com

In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com

SO-YOUNG INTERNATIONAL INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except for share and per share data)

As of

December 31,

September 30,

2023

2024

RMB

US$

Assets

Current assets:

Cash and cash equivalents

426,119

467,407

66,605

Restricted cash and term deposits

14,695

104,198

14,848

Trade receivables

57,219

106,943

15,239

Inventories

118,924

145,601

20,748

Receivables from online payment platforms

23,158

31,666

4,512

Amounts due from related parties

9,212

10,466

1,491

Term deposits and short-term investments

900,823

681,035

97,047

Prepayment and other current assets

171,774

221,227

31,525

Total current assets

1,721,924

1,768,543

252,015

Non-current assets:

Long-term investments

261,016

287,507

40,969

Intangible assets

145,253

131,641

18,759

Goodwill

540,693

77,048

Property and equipment, net

116,782

154,572

22,026

Deferred tax assets

78,034

81,057

11,551

Operating lease right-of-use assets

118,408

159,179

22,683

Other non-current assets

232,455

180,628

25,739

Total non-current assets

1,492,641

1,535,277

218,775

Total assets

3,214,565

3,303,820

470,790

Liabilities

Current liabilities:

Short-term borrowings

29,825

89,559

12,762

Taxes payable

56,894

53,639

7,643

Contract liabilities

103,374

94,747

13,501

Salary and welfare payables

86,290

84,927

12,102

Amounts due to related parties

388

146

Accrued expenses and other current liabilities

233,913

244,721

34,873

Operating lease liabilities-current

29,739

40,398

5,757

Total current liabilities

540,423

608,137

86,659

Non-current liabilities:

Operating lease liabilities-non current

86,210

124,915

17,800

Deferred tax liabilities

25,082

20,780

2,961

Other non-current liabilities

1,536

1,607

229

Total non-current liabilities

112,828

147,302

20,990

Total liabilities

653,251

755,439

107,649

SO-YOUNG INTERNATIONAL INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)

(Amounts in thousands, except for share and per share data)

Shareholders’ equity:

Treasury stock

(358,453)

(369,907)

(52,711)

Class A ordinary shares (US$0.0005 par value; 750,000,000
shares authorized as of December 31, 2023 and September
30, 2024; 73,688,044 and 63,422,436 shares issued and
outstanding as of December 31, 2023, 77,634,580 and
66,170,882 shares issued and outstanding as of September
30, 2024, respectively)

238

252

Class B ordinary shares (US$ 0.0005 par value; 20,000,000
shares authorized as of December 31, 2023 and September
30, 2024; 12,000,000 shares issued and outstanding as of
December 31, 2023 and September 30, 2024)

Additional paid-in capital

3,080,433

3,067,567

437,125

Statutory reserves

33,855

4,824

Accumulated deficit

(330,166)

(312,117)

(44,476)

Accumulated other comprehensive income

18,185

8,858

1,262

Total So-Young International Inc. shareholders’ equity

2,444,129

2,428,545

346,065

Non-controlling interests

117,185

119,836

17,076

Total shareholders’ equity

2,561,314

2,548,381

363,141

Total liabilities and shareholders’ equity

3,214,565

3,303,820

470,790

SO-YOUNG INTERNATIONAL INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except for share and per share data)

For the Three Months Ended

For the Nine Months Ended

September
30, 2023

September
30, 2024

September
30, 2023

September
30, 2024

RMB

US$

RMB

US$

Revenues:

Information services and others

285,937

262,988

37,475

795,100

750,952

107,010

Reservation services

24,140

19,567

2,788

80,724

64,987

9,261

Sales of medical products and maintenance services

75,217

89,270

12,721

231,639

281,548

40,120

Total revenues

385,294

371,825

52,984

1,107,463

1,097,487

156,391

Cost of revenues:

Cost of services and others

(103,484)

(98,620)

(14,053)

(291,503)

(274,695)

(39,144)

Cost of medical products sold and maintenance services

(39,119)

(43,548)

(6,206)

(115,199)

(139,839)

(19,927)

Total cost of revenues

(142,603)

(142,168)

(20,259)

(406,702)

(414,534)

(59,071)

Gross profit

242,691

229,657

32,725

700,761

682,953

97,320

Operating expenses:

Sales and marketing expenses

(143,844)

(114,884)

(16,371)

(394,276)

(360,448)

(51,363)

General and administrative expenses

(50,242)

(69,901)

(9,961)

(204,097)

(225,653)

(32,155)

Research and development expenses

(50,597)

(40,188)

(5,727)

(158,531)

(122,277)

(17,424)

Total operating expenses

(244,683)

(224,973)

(32,059)

(756,904)

(708,378)

(100,942)

(Loss)/Income from operations

(1,992)

4,684

666

(56,143)

(25,425)

(3,622)

Other income/(expenses):

Investment income, net

647

510

10,869

3,397

484

Interest income, net

12,130

14,239

2,029

38,023

38,270

5,453

Exchange gains/(losses)

103

465

(1,051)

875

125

Share of losses of equity method investee

(3,822)

(3,873)

(552)

(10,692)

(11,602)

(1,653)

Others, net

9,887

6,915

985

18,474

12,234

1,743

Income/(Loss) before tax

16,953

22,940

3,267

(520)

17,749

2,530

Income tax benefits/(expenses)

2,191

(2,097)

(299)

7,240

3,031

432

Net income

19,144

20,843

2,968

6,720

20,780

2,962

Net income attributable to noncontrolling interests

(839)

(495)

(71)

(2,941)

(2,731)

(389)

Net income attributable to So-Young International Inc.

18,305

20,348

2,897

3,779

18,049

2,573

SO-YOUNG INTERNATIONAL INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)

(Amounts in thousands, except for share and per share data)

For the Three Months Ended

For the Nine Months Ended

September
30, 2023

September
30, 2024

September
30, 2023

September
30, 2024

RMB

US$

RMB

US$

Net earnings per ordinary share

Net earnings per ordinary share attributable to ordinary shareholder – basic

0.24

0.26

0.04

0.05

0.23

0.03

Net earnings per ordinary share attributable to ordinary shareholder – diluted

0.24

0.26

0.04

0.05

0.23

0.03

Net earnings per ADS attributable to ordinary shareholders – basic (13 ADS
represents 10 Class A ordinary shares)

0.18

0.20

0.03

0.04

0.18

0.03

Net earnings per ADS attributable to ordinary shareholders – diluted (13 ADS
represents 10 Class A ordinary shares)

0.18

0.20

0.03

0.04

0.18

0.03

Weighted average number of ordinary shares used in computing earnings/(loss)
per share, basic*

76,842,709

79,493,819

78,001,149

79,544,066

Weighted average number of ordinary shares used in computing earnings/(loss)
per share, diluted*

77,210,781

79,708,518

78,402,636

79,810,666

Share-based compensation expenses included in:

Cost of services and others

(418)

(81)

(12)

(1,635)

(255)

(36)

Sales and marketing expenses

(533)

(183)

(26)

(2,850)

(420)

(60)

General and administrative expenses

11,164

(1,328)

(189)

(10,400)

(27,796)

(3,961)

Research and development expenses

(1,454)

(309)

(44)

(3,636)

(1,969)

(281)

* Both Class A and Class B ordinary shares are included in the calculation of the weighted average number of ordinary shares outstanding, basic and diluted.

SO-YOUNG INTERNATIONAL INC.

Reconciliation of GAAP and Non-GAAP Results

(Amounts in thousands, except for share and per share data)

For the Three Months Ended

For the Nine Months Ended

September
30, 2023

September
30, 2024

September
30, 2023

September
30, 2024

RMB

US$

RMB

US$

GAAP (loss)/income from operations

(1,992)

4,684

666

(56,143)

(25,425)

(3,622)

Add back: Share-based compensation expenses

(8,759)

1,901

271

18,521

30,440

4,338

Non-GAAP (loss)/income from operations

(10,751)

6,585

937

(37,622)

5,015

716

GAAP net income attributable to So-Young International Inc.

18,305

20,348

2,897

3,779

18,049

2,573

Add back: Share-based compensation expenses

(8,759)

1,901

271

18,521

30,440

4,338

Non-GAAP net income attributable to So-Young International Inc.

9,546

22,249

3,168

22,300

48,489

6,911

View original content:https://www.prnewswire.com/news-releases/so-young-reports-unaudited-third-quarter-2024-financial-results-302311180.html

SOURCE So-Young International Inc.

Technology

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

Published

50 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:
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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

50 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

50 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