PASADENA, Calif.--(BUSINESS WIRE)--#DOE--Tetra Tech, Inc. (NASDAQ: TTEK), a leading provider of high-end consulting and engineering services, announced today that it has been awarded an estimated $108 million, five-year, multiple-award blanket purchase agreement (BPA) to provide environmental support services to the U.S. Department of Energy to address its energy projects and associated potential environmental impacts using science-based technology solutions.

Tetra Tech technical experts will identify and analyze the potential environmental impacts of proposed projects to land, air and water, using applied research, field investigations, advanced analytics, and predictive modeling. Under this BPA, Tetra Tech will apply our Leading with Science® approach to assess floodplain and wetland conditions, analyze greenhouse gas emissions, and prepare stormwater management plans.

“Tetra Tech has worked with the Department of Energy for more than three decades to ensure that federal agencies comprehensively evaluate the potential environmental impacts of their proposed projects,” said Dan Batrack, Tetra Tech Chairman and CEO. “Tetra Tech is pleased to continue to support the Department of Energy’s efforts to promote the most advanced scientific and technological methodologies in evaluating the impacts of their future projects.”

About Tetra Tech

Tetra Tech is a leading provider of high-end consulting and engineering services for projects worldwide. With 21,000 associates working together, Tetra Tech provides clear solutions to complex problems in water, environment, sustainable infrastructure, renewable energy, and international development. We are Leading with Science^® to provide sustainable and resilient solutions for our clients. For more information about Tetra Tech, please visit tetratech.com or follow us on LinkedIn, Twitter, and Facebook.

Any statements made in this release that are not based on historical fact are forward-looking statements. Any forward-looking statements made in this release represent management’s best judgment as to what may occur in the future. However, Tetra Tech’s actual outcome and results are not guaranteed and are subject to certain risks, uncertainties and assumptions ("Future Factors"), and may differ materially from what is expressed. For a description of Future Factors that could cause actual results to differ materially from such forward-looking statements, see the discussion under the section "Risk Factors" included in the Company’s Form 10-K and Form 10-Q filings with the Securities and Exchange Commission.

Jim Wu, Investor Relations
Charlie MacPherson, Media & Public Relations
(626) 470-2844

Third Quarter 2022 Highlights

• Added 21,800 customers in the third quarter of 2022, bringing total customer count to 246,600 as of September 30, 2022;
• Reinforced liquidity through a convertible debt raise, satisfying our projected corporate capital needs given our current growth plans;
• Increased single customer economics as expressed through fully burdened unlevered return;
• Effectively managed our emergency response to support our customers' energy reliability and resilience during recent hurricanes; and
• Expect growth to escalate further in 2023 due to increasing demand for cheaper, more reliable energy services, complemented by the positive impacts of the Inflation Reduction Act.

HOUSTON--(BUSINESS WIRE)--Sunnova Energy International Inc. ("Sunnova") (NYSE: NOVA), one of the leading Energy as a Service (EaaS) providers, today announced financial results for the third quarter ended September 30, 2022.

"In the third quarter, we took action to fortify our liquidity and satisfy our planned 2023 corporate capital needs ahead of schedule through a timely capital raise, putting the company in an excellent financial position with a strong balance sheet," said William J. (John) Berger, founder and Chief Executive Officer of Sunnova. "Our record low customer default and delinquency rates and customer feedback clearly show that consumers do not see us as merely providing financing but providing an essential service to them. Sunnova is optimally positioned to benefit from this strong consumer demand for its energy service, catalyzed by a combination of our focus on service, the Inflation Reduction Act, and the global energy crisis, as homeowners look to avoid rising utility bills that they must pay.

"As extreme weather events continue to wreak havoc, especially in areas on the frontline of climate change like Puerto Rico and Florida, the importance of battery storage performance during grid failure has become even more critical. In fact, customers impacted by Hurricane Fiona averaged 5.3 days of solar plus storage battery backup with many residents remaining dependent on their Sunnova system for more than 10 days. For any customers in need of assistance, Sunnova quickly dispatched service technicians to return their systems to full operation. We continue to offer tried-and-true solutions to climate change realities while providing a better energy service at a better price."

Third Quarter 2022 Results

Revenue increased to $149.4 million, or by $80.5 million, for the three months ended September 30, 2022 compared to the three months ended September 30, 2021. This increase was primarily the result of an increased number of solar energy systems in service and the sale of inventory to our dealers or other parties, which began in April 2022.

Revenue increased to $362.1 million, or by $185.4 million, for the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021. This increase was primarily the result of an increased number of solar energy systems in service, the April 2021 acquisition of SunStreet, and the sale of inventory to our dealers or other parties.

Total operating expense, net increased to $177.1 million, or by $100.0 million for the three months ended September 30, 2022 compared to the three months ended September 30, 2021. This increase was primarily the result of an increased number of solar energy systems in service, greater depreciation expense, an increase in cost of revenue - inventory sales due to the sale of inventory to our dealers or other parties, higher general and administrative expense, and a change in other operating expense (income) primarily due to changes in the fair value of certain financial instruments and contingent consideration.

Total operating expense, net increased to $426.8 million, or by $204.2 million for the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021. This increase was primarily the result of an increased number of solar energy systems in service, the April 2021 acquisition of SunStreet, greater depreciation expense, an increase in cost of revenue - inventory sales due to the sale of inventory to our dealers or other parties, and higher general and administrative expense.

Adjusted Operating Expense increased to $53.7 million, or by $14.9 million, for the three months ended September 30, 2022 compared to the three months ended September 30, 2021. This increase was primarily the result of an increased number of solar energy systems in service and higher general and administrative expense.

Adjusted Operating Expense increased to $150.6 million, or by $50.8 million, for the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021. This increase was primarily the result of an increased number of solar energy systems in service, the April 2021 acquisition of SunStreet, and higher general and administrative expense.

Sunnova incurred a net loss of $29.9 million for the three months ended September 30, 2022 compared to a net loss of $25.9 million for the three months ended September 30, 2021. This higher net loss was primarily the result of higher general and administrative expense and a change in other operating expense (income) primarily due to changes in the fair value of certain financial instruments and contingent consideration. This was partially offset by an increase in interest income of $7.1 million due to our larger customer loan portfolio, and a decrease in interest expense, net of $8.3 million.

Sunnova incurred a net loss of $60.2 million for the nine months ended September 30, 2022 compared to a net loss of $116.3 million for the nine months ended September 30, 2021. This lower net loss was primarily the result of an increase in interest income of $16.2 million primarily due to our larger customer loan portfolio, a decrease in loss on extinguishment of long-term debt, net of $9.8 million primarily due to a make-whole payment related to the early repayment of one of our solar asset-backed notes in June 2021, and a decrease in interest expense, net of $48.5 million. This was partially offset by higher general and administrative expense.

Adjusted EBITDA was $41.3 million for the three months ended September 30, 2022 compared to $25.2 million for the three months ended September 30, 2021. Adjusted EBITDA was $93.5 million for the nine months ended September 30, 2022 compared to $68.1 million for the nine months ended September 30, 2021. These increases were primarily due to customer growth increasing at a rate faster than expenses.

Customer principal (net of amounts recorded in revenue) and interest payments received from solar loans increased to $22.3 million and $15.1 million, respectively, for the three months ended September 30, 2022, or by $8.0 million and $6.2 million, respectively, compared to the three months ended September 30, 2021. Customer principal (net of amounts recorded in revenue) and interest payments received from solar loans increased to $67.5 million and $39.1 million, respectively, for the nine months ended September 30, 2022, or by $25.1 million and $15.2 million, respectively, compared to the nine months ended September 30, 2021. These increases were due to our larger customer loan portfolio.

Liquidity & Capital Resources

As of September 30, 2022, Sunnova had total cash of $540 million, including restricted and unrestricted cash.

2022 Guidance

Sunnova management is reaffirming its guidance for customer additions and Adjusted EBITDA, increasing its guidance for interest payments received from solar loans, and decreasing its guidance for principal payments received from solar loans, net of amounts recorded in revenue.

• Customer additions of between 85,000 and 89,000 reaffirmed;
• Adjusted EBITDA of between $117 million and $137 million reaffirmed;
• Customer interest payments received from solar loans increases from between $45 million and $55 million to between $50 million and $60 million; and
• Customer principal payments received from solar loans, net of amounts recorded in revenue, decreases from between $134 million and $154 million to between $90 million and $100 million.

Non-GAAP Financial Measures

We present our operating results in accordance with accounting principles generally accepted in the U.S. ("GAAP"). We believe certain financial measures, such as Adjusted EBITDA and Adjusted Operating Expense, which are non-GAAP measures, provide users of our financial statements with supplemental information that may be useful in evaluating our business. We use Adjusted EBITDA and Adjusted Operating Expense as performance measures and believe investors and securities analysts also use Adjusted EBITDA and Adjusted Operating Expense in evaluating our performance. While Adjusted EBITDA effectively captures the operating performance of our leases and PPAs, it only reflects the service portion of the operating performance under our loan agreements. Therefore, we separately show customer P&I payments. Adjusted EBITDA is also used by our management for internal planning purposes, including our consolidated operating budget, and by our board of directors in setting performance-based compensation targets. We believe that such non-GAAP measures, when read in conjunction with our operating results presented under GAAP, can be used both to better assess our business from period to period and to better assess our business against other companies in our industry, without regard to financing methods, historical cost basis or capital structure. Our calculation of these non-GAAP financial measures may differ from similarly-titled non-GAAP measures, if any, reported by other companies. In addition, other companies may not publish these or similar measures. Such non-GAAP measures should be considered as a supplement to, and not as a substitute for, financial measures prepared in accordance with GAAP. Sunnova is unable to reconcile projected Adjusted EBITDA and Adjusted Operating Expense to the most comparable financial measures calculated in accordance with GAAP because of fluctuations in interest rates and their impact on our unrealized and realized interest rate hedge gains or losses. Sunnova provides a range for the forecasts of Adjusted EBITDA and Adjusted Operating Expense to allow for the variability in the timing of cash receipts and disbursements, customer utilization of our assets, and the impact on the related reconciling items, many of which interplay with each other. Therefore, the reconciliation of projected Adjusted EBITDA and Adjusted Operating Expense to projected net income (loss) and total operating expense, as the case may be, is not available without unreasonable effort.

Third Quarter 2022 Conference Call Information

Sunnova is hosting a conference call for analysts and investors to discuss its third quarter 2022 results at 8:00 a.m. Eastern Time, on October 27, 2022. The conference call can be accessed live over the phone by dialing 844-200-6205, or for international callers, 929-526-1599. The access code for the live call is 212518.

A replay will be available two hours after the call and can be accessed by dialing 866-813-9403, or for international callers, +44 204-525-0658. The access code for the replay is 493538. The replay will be available until November 3, 2022.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investor Relations section of Sunnova’s website.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Sunnova’s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern Sunnova’s expectations, strategy, priorities, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding our level of growth, customer value propositions, technological developments, service levels, the ability to achieve our 2022 operational and financial targets, and references to Adjusted EBITDA and customer P&I payments from solar loans. Sunnova’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks regarding our ability to forecast our business due to our limited operating history, the effects of the coronavirus pandemic on our business and operations, supply chain uncertainties, results of operations and financial position, our competition, changes in regulations applicable to our business, fluctuations in the solar and home-building markets, availability of capital, our ability to attract and retain dealers and customers and manage our dealer and strategic partner relationships, the ability to successfully integrate the SunStreet acquisition, the ability of Sunnova to implement its plans, forecasts and other expectations with respect to SunStreet's business and realize the expected benefits of the acquisition. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in Sunnova’s filings with the Securities and Exchange Commission, including Sunnova’s annual report on Form 10-K for the year ended December 31, 2021 and subsequent quarterly reports on Form 10-Q. The forward-looking statements in this release are based on information available to Sunnova as of the date hereof, and Sunnova disclaims any obligation to update any forward-looking statements, except as required by law.

About Sunnova

Sunnova Energy International Inc. (NYSE: NOVA) is a leading Energy as a Service (EaaS) provider with customers across the U.S. and its territories. Sunnova's goal is to be the source of clean, affordable and reliable energy with a simple mission: to power energy independence so that home and business owners have the freedom to live life uninterrupted®. For more information, please visit sunnova.com.

Investor Relations:
Rodney McMahan, Vice President Investor Relations
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Media:
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The award underscores Novata’s commitment to leveraging technology and uniting industry experts to enable a more sustainable and inclusive form of capitalism for the private markets

NEW YORK--(BUSINESS WIRE)--Novata, the leading ESG data management platform built for the private markets, today announced it received the Private Equity Wire 2022 U.S. Award for Best ESG Solution Provider. The Private Equity Wire U.S. Awards recognize excellence among private equity fund managers and service providers in the US across a wide range of categories. This award is a testament to Novata’s commitment to empower private markets to achieve a more sustainable and inclusive form of capitalism.

Backed by a unique consortium that includes the Ford Foundation, S&P Global (NYSE: SPGI), Hamilton Lane (NASDAQ: HLNE) and Omidyar Network, and with the support of more than a dozen private equity firms and pension funds, Novata is the leading ESG data management platform built specifically for the private markets. The Novata platform provides:

• a clear starting point for selecting ESG metrics
• painless data collection into a secure database
• insights and analytic tools to inform investment decisions.

Private Equity Wire announced the winners of the Private Equity Wire US Awards 2022, compiled in conjunction with Bloomberg, at an exclusive awards presentation ceremony and industry networking event at The University Club in New York on October 26th. Novata’s Josh Green, Lauren Peat & Suzanne Nemni attended the event to accept the award.

For the service provider categories, the short-listed firms were based on a widespread survey of more than 400 GPs and other key industry participants. Voting for the winners was then conducted through an extensive online poll of the Private Equity Wire readership over a period of several weeks.

“As we see increasing interest from our customers in implementing ESG programs that are effective, measurable and built for coming regulations, the value of data has never been greater,” said Josh Green, Novata’s Chief Operating Officer and Co-Founder. “This honor is additional validation that Novata’s approach to ESG can play a pivotal role in helping private equity funds comprehensively manage risk.”

Aside from Novata’s data software platform, the firm was also recognized for its commitment to uniting industry experts and thought leaders through their independent ESG Advisory Council that was established in 2022. The Novata ESG Advisory Council underscores the company’s operating principles of collaboration, working across sectors, and partnering with key subject matter experts to empower private companies and their investors to address critical ESG challenges.

“We are honored to be recognized as the Best ESG Solution Provider for the private equity industry,” said Lauren Peat, Novata’s Chief Revenue Officer. “At Novata, we are committed to solving our customers’ data challenges in order to move ESG forward in the private markets. This award is a testament to the positive ecosystem impact we are driving.”

Since Novata’s platform launch in April, Novata has also welcomed a range of private equity and credit firms to the General Partner Advisory Committee (GPAC) and has experienced significant global demand for its ESG data management platform.

To learn more about Novata and its ESG data management platform, please visit www.novata.com.

About Novata

Novata is a public benefit corporation created to enable the private markets to achieve a more sustainable and inclusive form of capitalism. Novata helps GPs and private companies navigate the complex ESG landscape more easily by providing a unique technology platform that simplifies the process of selecting relevant metrics, clear and simple guidance for painless data collection, a cutting-edge secure contributory database to store data, and unique tools for analysis and seamless reporting to key stakeholders, including limited partners and regulators. Novata was formed as a partnership of the Ford Foundation, S&P Global, Hamilton Lane and Omidyar Network and is majority-controlled by mission-driven organizations and its employees. For more information, please visit https://www.novata.com/.

Follow Novata on LinkedIn.

Media Inquiries:
Katie Stueber
Novata
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SAN JOSE, Calif.--(BUSINESS WIRE)--QuantumScape Corporation (NYSE: QS), a leader in the development of next-generation solid-state lithium-metal batteries, today announced its business and financial results for the third quarter of 2022, which ended September 30.

The company posted a letter to shareholders on its Investor Relations website, ir.quantumscape.com, that details third-quarter financial results and provides a business update.

QuantumScape will host a live webcast today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time), accessible via its IR Events page. Jagdeep Singh, co-founder and chief executive officer, and Kevin Hettrich, chief financial officer, will participate on the call.

An archive of the webcast will be available shortly after the call for 12 months.

About QuantumScape Corporation

QuantumScape is on a mission to transform energy storage with solid-state lithium-metal battery technology. The company’s next-generation batteries are designed to enable greater energy density, faster charging and enhanced safety to support the transition away from legacy energy sources toward a lower carbon future. For more information, visit www.quantumscape.com.

For Investors
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Most customers unaware of energy-draining appliances and electronics that add dollars to their electric bills

CHICAGO--(BUSINESS WIRE)--Energy vampires are real and may be draining electricity from your home or business. This Halloween, ComEd encourages customers to put a stake in energy vampires by taking a few, simple steps that can save both money and energy.

Vampire energy, also known as standby energy, is the electricity drawn from outlets when equipment is turned off but still plugged in. Some electronics, including cell phones, computers, printers and game consoles, continue to draw electricity when they are plugged in and turned off; in fact, according to the U.S. Department of Energy, vampire energy can account for up to 10 percent of a home’s energy use.

“Starting this Halloween, stop letting appliances with clocks and timers be a drain on your electric bill,” said Melissa Washington, ComEd's chief customer officer and senior vice president of customer operations. “These devices masquerade as energy vampires that can trick you into using more electricity. This year, bite-back against energy vampires by treating yourself to these simple, energy-saving tips.”

• Use a power strip with an on/off switch to completely power down electronics at home.
• Unplug chargers to mobile phones, e-readers and other electronics once these devices are fully charged.
• When planning to be away from home for an extended amount of time, unplug all non-essential devices such as televisions and other electronics.
• Look for the ENERGY STAR^® label on home appliances, electronics and other products. ENERGY STAR-certified products meet strict energy-efficiency guidelines set by the U.S. Environmental Protection Agency and U.S. Department of Energy.

These energy-saving tips come courtesy of the award-winning ComEd Energy Efficiency Program, which is funded in compliance with state law. It is one of the largest programs in the nation offering residents, businesses and the public sector ways to control energy costs, including services and incentives that help them cut back on energy use to reduce energy bills and help the environment.

In addition to saving customers more than $7 billion on their energy bills since 2008, the energy efficiency program has helped customers save nearly 65 million megawatt-hours of electricity, which is enough energy to power more than 7.4 million ComEd customers' homes for one year.

To take advantage of the program, ComEd offers free home energy assessments that assess the interior of a home or unit to find ways to lower energy costs. Since 2014, nearly 130,000 homeowners and renters across northern Illinois have saved a total of approximately $17.5 million on their energy bills through home assessments, based on 2021 rates.

For information on all the ways ComEd helps customers save money and energy, visit ComEd.com/HomeSavings for residential customers and ComEd.com/BizSavings for business customers.

ComEd is a unit of Chicago-based Exelon Corporation (NASDAQ: EXC), a Fortune 200 energy company with approximately 10 million electricity and natural gas customers – the largest number of customers in the U.S. ComEd powers the lives of more than 4 million customers across northern Illinois, or 70 percent of the state’s population. For more information visit ComEd.com and connect with the company on Facebook, Twitter, Instagram and YouTube.

ComEd Media Relations
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• Subsea inbound of $1.4 billion supports full-year outlook for orders to approach $7 billion
• Surface Technologies inbound of $449 million driven by Middle East; book-to-bill of 1.4
• Cash provided by operating activities of $212 million; free cash flow of $181 million
• Repurchased $50 million of ordinary shares following $400 million authorization in July

NEWCASTLE & HOUSTON--(BUSINESS WIRE)--TechnipFMC plc (NYSE: FTI) (the “Company” or “TechnipFMC”) today reported third quarter 2022 results.

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

n/m - not meaningful

Total Company revenue in the third quarter was $1,733 million. Income from continuing operations attributable to TechnipFMC was $5 million, or $0.01 per diluted share. These results included after-tax charges and credits totaling $7.7 million of expense, or $0.02 per share, which included the following (Exhibit 6):

• Impairment and other charges of $3.6 million; and
• Restructuring and other charges of $4.1 million.

Adjusted income from continuing operations was $12.7 million, or $0.03 per diluted share (Exhibit 6).

Adjusted EBITDA excludes pre-tax charges and credits. Adjusted EBITDA in the period also included a foreign exchange loss of $14.5 million. When excluding the foreign exchange loss, adjusted EBITDA was $200.1 million.

Doug Pferdehirt, Chair and CEO of TechnipFMC, stated, “Third quarter results reflect continued momentum in financial performance. Total Company revenue of $1.7 billion was a solid achievement given the currency headwind experienced during the period. Adjusted EBITDA was $200 million with a margin of 11.5% when excluding foreign exchange loss. Subsea and Surface Technologies both achieved sequential improvement in adjusted EBITDA margin in the period.”

Pferdehirt added, “In Subsea, inbound was $1.4 billion, with year-to-date orders now totaling $5.2 billion, exceeding the level achieved in all of last year. Our Subsea Opportunities list remains at a record level. This strong project pipeline and the active dialogue with our large and expanded customer base give us continued confidence that our full-year Subsea orders will approach $7 billion, up as much as 40 percent versus the prior year. Extending the outlook into 2023, we believe orders over the next five quarters will be at least $9 billion.”

“In Surface Technologies, inbound increased sequentially by approximately 65% to $449 million, representing a book-to-bill of 1.4. The strong order activity benefited from the acceleration of orders from Aramco, which was a significant achievement in the period. A large portion of these awards will result in revenue in future periods, providing us with increased visibility for continued growth in our international revenue in 2023.”

Pferdehirt continued, “We continue to see the potential for strong growth in EBITDA, cash flow and financial returns, as evidenced by our stated objective to achieve more than $1 billion of Subsea EBITDA by 2025. Further demonstrating our confidence in this outlook, we announced a new $400 million share buyback program in July, which we quickly put into action with the repurchase of $50 million of our ordinary shares in the third quarter.”

Pferdehirt concluded, “The next leg of growth in oil and gas will be fueled by offshore and the Middle East. The bold steps we took more than five years ago to create TechnipFMC have resulted in a pure-play technology company that is uniquely levered to both of these markets. Our portfolio of innovative products, solutions and disruptive commercial models has further strengthened our leadership position, and we are now taking full advantage of the market growth that lies ahead.”

Operational and Financial Highlights

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

Subsea reported third quarter revenue of $1,415 million, flat sequentially versus the second quarter. Higher project installation activity in Brazil and Guyana was offset by the negative impact of foreign exchange.

Subsea reported an operating profit of $105 million. Sequentially, operating profit benefited primarily from the higher installation activity and improved margins in backlog.

Subsea reported adjusted EBITDA of $183.8 million. Adjusted EBITDA increased by 4.4 percent when compared to the second quarter. The factors impacting operating profit also drove the sequential increase in adjusted EBITDA. Adjusted EBITDA margin improved 60 basis points to 13 percent.

Subsea inbound orders were $1,400.8 million for the quarter. Book-to-bill was 1.0. The following awards were included in the period:

• TotalEnergies Lapa North East Project (Brazil)
  Significant* engineering, procurement, construction, and installation (EPCI) contract by TotalEnergies for its Lapa North East field in the pre-salt Santos Basin offshore Brazil. TechnipFMC will reconfigure and install umbilicals and flexible pipe in a new configuration that will further secure the production of the field.
  *A “significant” contract ranges between $75 million and $250 million.

• Shell Jackdaw Project (United Kingdom)
  Significant* EPCI contract by Shell plc for the Jackdaw development, located in the United Kingdom North Sea. The contract covers pipelay for a 30 kilometer tieback from the new Jackdaw platform to Shell’s Shearwater platform, as well as an associated riser, spoolpieces, subsea structures, and umbilicals. The tieback will use pipe-in-pipe technology, which is designed for high pressure, high temperature use.
  *A “significant” contract ranges between $75 million and $250 million.

The following award was announced in the period, but not included in third quarter inbound orders:

• ExxonMobil Gas to Energy Project (Guyana)
  Significant* contract by ExxonMobil affiliate, Esso Exploration and Production Guyana Limited, for the Gas to Energy Project in Guyana. Subject to final project sanction, TechnipFMC will provide engineering, procurement, construction, and installation of subsea risers and pipelines. The project will connect the production from Liza Destiny and Unity back to shore, delivering associated gas from the field to a gas-fired power plant that will supply electricity to the community. TechnipFMC currently employs more than 85 Guyanese and expects to continue to hire and train additional local staff in support of this award.
  *A “significant” contract ranges between $75 million and $250 million; the full contract award will not be included in inbound orders until the project receives final investment decision and government approvals.

Partnership and Alliance Highlights

• TechnipFMC and Halliburton Technology Alliance
  TechnipFMC and Halliburton renewed their Technology Alliance after the successful completion of an initial 5-year alliance agreement. The alliance accelerates the development and commercialization of new technologies that deliver integrated production solutions that span subsea and subsurface applications. This includes fiber optic sensing, all-electric subsea field development, riserless well intervention systems and carbon capture and storage solutions and includes the award-winning Odassea™ fiber optic sensing solution for reservoir monitoring and production diagnostics.

Financial Highlights

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

Surface Technologies reported third quarter revenue of $318 million, an increase of 5.1 percent from the second quarter. Revenue growth was strongest outside North America, with particular strength in the Middle East.

Surface Technologies reported operating profit of $19 million. Operating profit increased sequentially primarily due to higher international activity, including the progressive ramp in Middle East volume, and timing of associated costs.

Surface Technologies reported adjusted EBITDA of $40.8 million. Adjusted EBITDA increased by 25.9 percent when compared to the second quarter. The factors impacting operating profit also drove the sequential increase in adjusted EBITDA. Adjusted EBITDA margin increased by 210 basis points to 12.8 percent.

Inbound orders for the quarter were $449.2 million, an increase of 64.1 percent sequentially. Book-to-bill in the period was 1.4. The strong order activity benefited from the acceleration of orders from Aramco, a large portion of which will be consumed in future periods. Backlog ended the period at $1,237.8 million.

Corporate and Other Items (three months ended, September 30, 2022)

Corporate expense was $25.2 million.

Foreign exchange loss was $14.5 million.

Net interest expense was $30.9 million.

The provision for income taxes was $42.7 million.

Total depreciation and amortization was $94.5 million.

Cash provided by operating activities from continuing operations was $212 million. Capital expenditures were $30.9 million. Free cash flow from continuing operations was $181.1 million (Exhibit 11).

The Company ended the period with cash and cash equivalents of $711.5 million; net debt was $655.3 million (Exhibit 10).

Share repurchase

On July 27, 2022, the Board of Directors authorized a new share repurchase program under which the Company may repurchase up to $400 million of its ordinary shares. The program represented 14 percent of the Company's outstanding ordinary shares at the time of announcement.

During the quarter, the Company repurchased 5.8 million of its ordinary shares for total consideration of $50.1 million.

2022 Full-Year Financial Guidance¹

The Company’s full-year guidance for 2022 can be found in the table below. Updates to the guidance are as follows:

• Capital expenditures of approximately $180 million, which decreased from the previous guidance of approximately $230 million.

All segment guidance assumes no further material degradation from COVID-19-related impacts. Guidance is based on continuing operations and thus excludes the impact of Technip Energies, which is reported as discontinued operations.

Teleconference

The Company will host a teleconference on Thursday, October 27, 2022 to discuss the third quarter 2022 financial results. The call will begin at 1 p.m. London time (8 a.m. New York time). Webcast access and an accompanying presentation can be found at www.TechnipFMC.com.

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

Beginning with the Company’s fourth quarter 2022 financial results, the earnings release and teleconference will occur on the same day.

About TechnipFMC

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

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

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

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

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

This communication contains “forward-looking statements” as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements usually relate to future events and anticipated revenues, earnings, cash flows, or other aspects of our operations or operating results. Forward-looking statements are often identified by words such as “guidance,” “confident,” “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” “may,” “will,” “likely,” “predicated,” “estimate,” “outlook” and similar expressions, including the negative thereof. The absence of these words, however, does not mean that the statements are not forward-looking. These forward-looking statements are based on our current expectations, beliefs, and assumptions concerning future developments and business conditions and their potential effect on us. While management believes these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All of our forward-looking statements involve risks and uncertainties (some of which are significant or beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections, including unpredictable trends in the demand for and price of crude oil and natural gas; competition and unanticipated changes relating to competitive factors in our industry, including ongoing industry consolidation; the COVID-19 pandemic and its impact on the demand for our products and services; our inability to develop, implement and protect new technologies and services; the cumulative loss of major contracts, customers or alliances; disruptions in the political, regulatory, economic and social conditions of the countries in which we conduct business; the refusal of DTC and Euroclear to act as depository and clearing agencies for our shares; the United Kingdom’s withdrawal from the European Union; the impact of our existing and future indebtedness and the restrictions on our operations by terms of the agreements governing our existing indebtedness; the risks caused by our acquisition and divestiture activities; the risks caused by fixed-price contracts; any delays and cost overruns of new capital asset construction projects for vessels and manufacturing facilities; our failure to deliver our backlog; our reliance on subcontractors, suppliers and our joint venture partners; a failure or breach of our IT infrastructure or that of our subcontractors, suppliers or joint venture partners, including as a result of cyber-attacks; the risks of pirates endangering our maritime employees and assets; potential liabilities inherent in the industries in which we operate or have operated; our failure to comply with numerous laws and regulations, including those related to environmental protection, health and safety, labor and employment, import/export controls, currency exchange, bribery and corruption, taxation, privacy, data protection and data security; the additional restrictions on dividend payouts or share repurchases as an English public limited company; uninsured claims and litigation against us, including intellectual property litigation; tax laws, treaties and regulations and any unfavorable findings by relevant tax authorities; the uncertainties related to the anticipated benefits or our future liabilities in connection with the spin-off of Technip Energies; any negative changes in Technip Energies’ results of operations, cash flows and financial position, which impact the value of our remaining investment therein; potential departure of our key managers and employees; adverse seasonal and weather conditions and unfavorable currency exchange rate and risk in connection with our defined benefit pension plan commitments and other risks as discussed in Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and Part II, Item 1A, “Risk Factors” of our subsequently filed Quarterly Reports on Form 10-Q.

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

Investor relations
Matt Seinsheimer
Senior Vice President, Investor Relations and Corporate Development
Tel: +1 281 260 3665
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James Davis
Senior Manager, Investor Relations
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Media relations
Nicola Cameron
Vice President, Corporate Communications
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Catie Tuley
Director, Public Relations
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Online resource customizes list of financial-assistance and energy-efficiency offerings for eligible customers

CHICAGO--(BUSINESS WIRE)--To support Spanish-speaking customers in identifying the bill-assistance and energy-management support they may need, ComEd has made its Smart Assistance Manager (SAM) available in Spanish.

SAM is an online self-service tool that helps families and individuals more easily access financial-assistance and energy-savings options that are available to them, based on their household information such as energy usage and billing history. Customers who create an online account with ComEd through the “My Account” tool can log in while using SAM to get a list of eligible programs more tailored to their needs.

“ComEd remains committed to enabling all customers access their account information anywhere and on their own time – especially the assistance they need to keep the lights on at their homes and businesses,” said Melissa Washington, ComEd's chief customer officer and senior vice president of customer operations. “Offering our SAM tool in Spanish helps to remove the language barrier that will help our Spanish-speaking customers access information in the language with which they are most comfortable.”

SAM matches customers with the payment-assistance programs they may be eligible for – including deferred-payment arrangements and financial-assistance options like Low Income Home Energy Assistance Program (LIHEAP) – then provides guidance and links to apply. SAM also provides ways to control energy costs through energy-efficiency offerings, including free home energy assessments and discounts on energy-saving products.

Customers interested in accessing this free tool can visit es.ComEd.com/SAM.

Assistance Options Available through SAM

• Financial-assistance programs like the Low-Income Home Energy Assistance Program (LIHEAP) and ComEd’s Supplemental Arrearage Reduction Program (SARP), which is available to ComEd residential customers who qualified to receive energy-assistance benefits from LIHEAP.
• A flexible deferred payment arrangement of up to 12 months for eligible residential customers with a past-due balance. Make a down payment on the amount owed, and the balance is paid through installments in addition to your regular monthly bill.
• Budget billing, which provides a predictable monthly payment based on your electricity usage from the last 12 months.
• Flexible payment options like extensions on a customer’s due date by 21 calendar days.
• High-usage alerts, which enable customers to receive alerts when their usage is trending higher than normal to help manage overall energy use, and energy-management tips to help customers manage energy use to save money now and on future energy bills.
• Energy-efficiency offerings, including services and incentives designed for income-eligible residential customers, that can help reduce energy use now and in the long term.

To further support eligible, low-income residential customers struggling to pay their electric bills, ComEd no longer assesses late-payment fees or deposits. The energy company also no longer assesses additional fees for any customers when they use a credit card, debit card, or electronic check when paying their ComEd bills month to month. And, to offer more convenience, all customers can pay their ComEd bill with PayPal. More information on each of these options is available at ComEd.com/Pay.

ComEd is a unit of Chicago-based Exelon Corporation (NASDAQ: EXC), a Fortune 200 energy company with approximately 10 million electricity and natural gas customers – the largest number of customers in the U.S. ComEd powers the lives of more than 4 million customers across northern Illinois, or 70 percent of the state’s population. For more information visit es.ComEd.com and connect with the company on Facebook, Twitter, Instagram and YouTube.

ComEd Media Relations
312-394-3500

HOUSTON--(BUSINESS WIRE)--$PSX--Phillips 66 (NYSE: PSX) executive management will provide an update on the company’s strategic initiatives at its investor day. The meeting will take place at 8:30 a.m. EST on Nov. 9, 2022, in New York.

A live webcast of the meeting will be available. To access the webcast, go to the “Events and Presentations" section of the Phillips 66 Investors site, phillips66.com/investors. A replay of the webcast will be archived in “Events and Presentations” approximately two hours after the event, and a transcript will be available at a later date.

About Phillips 66

Phillips 66 (NYSE: PSX) manufactures, transports and markets products that drive the global economy. The diversified energy company’s portfolio includes Midstream, Chemicals, Refining, and Marketing and Specialties businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn or Twitter.

Jeff Dietert (investors)
832-765-2297
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Shannon Holy (investors)
832-765-2297
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Thaddeus Herrick (media)
855-841-2368
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Tenet Closes $20M Warehouse Facility from Silicon Valley Bank

NEW YORK--(BUSINESS WIRE)--Tenet, the leading EV financing platform, today announced that the company has secured the first-ever Electric Vehicle (EV) only warehouse facility to make EVs more affordable. Tenet has entered into a warehouse financing agreement of up to $20 million with Silicon Valley Bank (SVB) to fund Tenet's EV loans. Tenet has redefined the financing model for EVs, helping consumers connect to ESG capital markets to save hundreds of dollars each month on their EV payments.

It has been estimated that by 2025, 25% of all nationwide car sales will be EVs, with the number increasing to 50% by 2030. This year, California approved the Advanced Clean Cars II rule, building the road to a zero-emission future. The rule states that by 2035, 100% of new cars and light trucks sold in California must be zero-emission vehicles. This sustainable financing facility by SVB empowers Tenet to lead the charge in ESG financing by lowering the cost of ownership for EVs and sustainable home electrification.

“We’re thrilled to work with the Silicon Valley Bank team because this is an industry-first,” said Alex Liegl, co-founder and CEO of Tenet. “Our partnership reinforces Tenet’s mission to become the all-in-one ESG financing platform by building financial technology to combat climate change. They have been great collaborators through this process and can help us scale with the potential to significantly upsize the facility over time. We are ready to tackle the issue of EV affordability from coast to coast together with the SVB team.”

SVB's team of finance investors has a great history working with credit lines and loans for companies across multiple sectors - including the finance industry. Their proven track record and expertise in the sector for providing warehouse facilities will assist Tenet in allowing consumers to purchase or refinance their EV.

“Silicon Valley Bank is committed to supporting the climate technology and sustainability economy. Working with companies like Tenet, who are at the forefront of helping consumers fight climate change, is a top priority for us,” said Nick Christian, Head of Specialty Financing for Silicon Valley Bank. “We are proud to support Tenet ‘s growth as they continue to redefine the financing model for EVs and make the switch to driving electric more affordable.”

To learn more about how to save on purchasing an EV, visit www.tenet.com and follow them on Twitter @tenetenergy and Linkedin.

About Tenet
Tenet is the leading climate financing platform, starting with electric vehicles. Tenet’s electric vehicle financing provides substantial savings by lowering monthly payments that lead to sustainable home electrification. Founded in 2021, Tenet is backed by Human Capital, Giant Ventures, Breyer Capital, Global Founders Capital, Firstminute Capital and additional angel investors. The company’s headquarters are in New York. For more information, visit www.tenet.com.

About Silicon Valley Bank:
Silicon Valley Bank, the bank of the world’s most innovative companies and investors, provides commercial banking services, expertise and insights to the technology, life science and healthcare, private equity, venture capital and premium wine industries. Silicon Valley Bank operates in centers of innovation around the world and is one of SVB’s core businesses with SVB Capital, SVB Private and SVB Securities. With global commercial banking services, Silicon Valley Bank helps address the unique needs of its dynamic, fast-growing, innovative clients. Learn more at svb.com.

Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (SVB) (Nasdaq: SIVB). SVB Financial Group is the holding company for all business units and groups. © 2022 SVB Financial Group. All rights reserved. SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, SVB SECURITIES, SVB PRIVATE, SVB CAPITAL and the chevron device are trademarks of SVB Financial Group, used under license.

Media:
Noe Sacoco
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+1 (408) 340-8130

AUSTIN, Texas--(BUSINESS WIRE)--Hyliion Holdings Corp. (NYSE: HYLN) (“Hyliion,”) a leader in electrified powertrain solutions for Class 8 semi-trucks, today announced it will host a conference call and accompanying webcast at 11:00 a.m. ET / 10:00 a.m. CT on Wednesday, November 9, 2022 to discuss its financial results, the Company's business, and outlook. Hyliion plans to report its third-quarter 2022 financial results after the market close on Tuesday, November 8, 2022.

Hyliion’s Third-Quarter 2022 Results Conference Call

Date: Wednesday, November 9, 2022

Time: 11:00 a.m. ET / 10:00 a.m. CT

Conference Call Online Registration:
https://conferencingportals.com/event/vjUOPPlo

Access the Webcast:
https://events.q4inc.com/attendee/357822431

An archived webcast of the conference call will be accessible on the Investor Relations section of the Hyliion website.

About Hyliion
Hyliion’s mission is to reduce the carbon intensity and greenhouse gas (GHG) emissions of Class 8 commercial trucks by being a leading provider of electrified powertrain solutions. Leveraging advanced software algorithms and data analytics capabilities, Hyliion offers fleets an easy, efficient system to decrease fuel and operating expenses while seamlessly integrating with their existing fleet operations. Headquartered in Austin, Texas, Hyliion designs, develops, and sells electrified powertrain solutions that are designed to be installed on most major Class 8 commercial trucks, with the goal of transforming the commercial transportation industry’s environmental impact at scale. For more information, visit www.hyliion.com.

Ryann Malone
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(833) 495-4466

Sharon Merrill Associates, Inc.
Nicholas Manganaro
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(617) 542-5300

Company to collaborate with Urenco Ltd. and TRISO-X, LLC through UK Department for Business, Energy and Industrial Strategy Funding

LONDON--(BUSINESS WIRE)--Westinghouse Electric Company was awarded a grant from the United Kingdom’s Department for Business, Energy and Industrial Strategy (BEIS) to support development of advanced nuclear fuel.

In collaboration with Urenco Ltd., Westinghouse will complete a Pre-Front End Engineering Design study for a secure and reliable supply of advanced TRi-structural ISOtropic (TRISO) fuels to support a range of potential high-temperature gas-cooled reactor (HTGR) technologies in development. Westinghouse will also receive support on this study from TRISO-X, LLC.

“This award is an important step in creating commercial-scale advanced fuel production in the UK at our Springfields facility for the reactors of tomorrow,” said Patrick Fragman, Westinghouse President and CEO. “We look forward to partnering with Urenco for their global leadership in enrichment, in support of UK energy security and net zero carbon goals. We also welcome the support of TRISO-X and their valuable experience in the fabrication of advanced TRISO fuels.”

Boris Schucht, Urenco CEO, said: “Security of energy supply and realising crucial climate change goals requires the evolution of the nuclear fuel cycle. This includes a focus on producing the next generation of fuels. Urenco is committed to this development and is pleased to be collaborating with the UK nuclear industry and Government to achieve an enhanced service for global utilities and wider benefits for society.”

Pete Pappano, TRISO-X President, said: “The deployment of next generation TRISO fuel manufacturing in Springfields is an important step toward the UK’s decarbonization and energy independence goals. TRISO-X is pleased to bring our state-of-the-art process knowledge to support this grant.”

The work will occur at Westinghouse’s Springfields Fuels Ltd. facility in Preston, Lancashire, which is home to world-class nuclear fuel manufacturing expertise in the UK. Fuel produced at Springfields has supported reactors locally and globally for more than 70 years.

Westinghouse Electric Company is shaping the future of carbon-free energy by providing safe, innovative nuclear technologies to utilities globally. Westinghouse supplied the world’s first commercial pressurized water reactor in 1957 and the company’s technology is the basis for nearly one-half of the world's operating nuclear plants. Over 135 years of innovation makes Westinghouse the preferred partner for advanced technologies covering the complete nuclear energy life cycle. For more information, visit www.westinghousenuclear.com and follow us on Facebook, LinkedIn and Twitter.

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SAN RAMON, Calif.--(BUSINESS WIRE)--The Board of Directors of Chevron Corporation (NYSE: CVX) today declared a quarterly dividend of one dollar and forty-two cents ($1.42) per share, payable December 12, 2022, to all holders of common stock as shown on the transfer records of the Corporation at the close of business November 18, 2022.

Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to achieving a more prosperous and sustainable world. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We are focused on lowering the carbon intensity in our operations and growing lower carbon businesses along with our traditional business lines. More information about Chevron is available at www.chevron.com.

Randy Stuart -- +1 832-854-3844

SAN JOSE, Calif.--(BUSINESS WIRE)--#circulareconomy--Yesterday, John Shegerian, Chairman and CEO of ERI, the nation’s largest fully integrated IT and electronics asset disposition provider, was a featured speaker on an opening day panel about what to do with solar panels when they have reached their useful “end-of-life.” The panel helped kick off events at the VERGE22 annual conference at the San Jose Convention Center.

Shegerian was an invited contributor to the panel discussion titled “The End of Life of Solar Panels” alongside Janette Freeman of FabTech Solar Solutions and Eddie Inamdar of the E-Waste & Solar Recycling Center. The discussion was moderated by StopWaste Program Manager Ben Cooper. During the presentation, Shegerian shared insights on the aging out of the previous generation of solar panels and how circular economy strategies to keep decommissioned panels out of landfills are the only viable solution to the issue.

Produced by GreenBiz, VERGE is the leading climate tech event accelerating solutions to the most pressing challenges of our time. It attracts thousands of leaders — from business, government, solution providers and startups — working together to address the climate crisis across six strategic areas: clean energy, sustainable transportation, carbon removal, regenerative food systems, net-zero buildings and the startup ecosystem.

“It was a great honor and privilege to be on stage with my esteemed colleagues at VERGE22 this year,” said Shegerian. “Our friends at GreenBiz produce vitally important impact events, providing decision makers, investors and policymakers with critical thought leadership and an opportunity for experts to share what they know and discuss vital best practices. Communication and education are vital if we are to problem-solve and work together to create solutions that protect our planet. The responsible recycling of solar panels is a critical part of that discussion. We’re grateful to GreenBiz and the organizers of VERGE22 for including such impactful dialogue at this timely event.”

ERI is the largest fully integrated IT and electronics asset disposition provider and cybersecurity-focused hardware destruction company in the United States. ERI is certified at the highest level by all leading environmental and data security oversight organizations to de-manufacture, recycle, and refurbish every type of electronic device in an environmentally responsible manner. It is the first and only company in its industry to achieve SOC 2 certification for security and data protection. ERI has the capacity to process more than a billion pounds of electronic waste annually at its eight certified locations, serving every zip code in the United States. ERI’s mission is to protect people, the planet and privacy. For more information about e-waste recycling and ERI, call 1-800-ERI-DIRECT or visit https://eridirect.com.

Paul Williams, 310/569-0023, This email address is being protected from spambots. You need JavaScript enabled to view it.

ALEXANDRIA, Va.--(BUSINESS WIRE)--VSE Corporation (NASDAQ: VSEC, "VSE", or the "Company"), a leading provider of aftermarket distribution and maintenance, repair and overhaul ("MRO") services for land, sea and air transportation assets for government and commercial markets, today announced results for the third quarter 2022.

THIRD QUARTER 2022 RESULTS

(As compared to the Third Quarter 2021)

• Total Revenues of $242.5 million increased 21%

• GAAP Net Income of $9.4 million decreased 4%

• GAAP EPS (Diluted) of $0.73 decreased 3%

• Adjusted EBITDA of $24.0 million increased 12%

• Adjusted Net Income of $9.8 million remained flat

• Adjusted EPS (Diluted) of $0.76 remained flat

MANAGEMENT COMMENTARY

“VSE delivered a strong quarter with growth in revenue, profitability and free cash flow; as our teams continue to successfully execute our long-term business transformation strategy,” stated John Cuomo, President and CEO of VSE Corporation. “All three business segments reported year-over-year revenue growth, with the Aviation and Fleet segments recording their highest year-to-date revenue in company history,” continued Cuomo.

“Our Aviation segment reported revenue increases of 40% and an adjusted EBITDA increase of 86% or 326 basis points in the third quarter. Strong margins drove the quarter, along with revenue increases supported by growth in both MRO and distribution across all customer market segments. In addition to a strong quarter of financial results and program execution, we announced significant new business that expands our geographic presence and leverage our proven distribution and product line management capabilities. These include four new exclusive distribution agreements valued at approximately $350 million,” continued Cuomo.

“In the Fleet segment, commercial revenue increased by 23% on a year-over-year basis, representing approximately 40% of total Fleet segment revenue for the third consecutive quarter. To meet growing commercial demand and drive our revenue diversification strategy, we announced a new distribution facility outside of Memphis, Tennessee which will be dedicated to supporting commercial and e-commerce fulfillment customers,” continued Cuomo.

“Through the first nine months of 2022, we’ve won significant new business, accelerated our long-term business transformation strategy, and generated strong year-over-year organic growth in revenue, net income, and EBITDA. I’m proud of the VSE team, the strong customer and supplier focused implementation of new programs, and the many recent new business awards,” concluded Cuomo.

“Disciplined balance sheet management remains a key area of focus for our team,” stated Stephen Griffin, CFO of VSE Corporation. “VSE generated strong free cash flow of $11.3 million in the third quarter, in line with our previously communicated expectations. In October, we amended the existing loan agreement with our commercial banking syndicate and extended the term to 2025. This amendment supports the flexibility to grow revenue through organic and inorganic investments, including the recent new business announcements. We expect strong cash flow to continue following these new investments, which will further our goal of driving sustainable, long-term revenue.”

STRATEGIC UPDATE

During the third quarter, VSE continued to effectively execute its business transformation roadmap, with a focus on developing a leading aftermarket parts distribution and MRO services platform that addresses underserved, high-growth market segments. This value creation strategy is driven by a focus on new business and sustainable recurring revenue channels, growth in adjusted EBITDA, and optimization of legacy programs.

New Business and Long-Term, Sustainable Revenue Channels:

• In October 2022, the Aviation segment announced an expansion of the existing Pratt & Whitney Canada distribution agreement to now include the Asia Pacific region. Under the terms of this new expanded agreement, VSE Aviation will provide engine spare parts and engine accessory exchange support to Business & General Aviation (B&GA) engine operators, customers, and maintenance providers throughout the Asia Pacific region. This 15-year agreement expands the Company’s international reach and builds upon the success of recent program execution excellence.

• During the quarter, the Aviation segment secured a new 2-year agreement to distribute over 200,000 spare parts supporting Embraer business jets, including Phenom, Praetor, Legacy, and Lineage airframes. This new agreement builds on the VSE brand of supporting airframe OEMs with aftermarket support for both in-production and late-in-life stages in the B&GA market.

• The Fleet segment revenue diversification strategy continued to progress in the quarter with commercial revenue growth of 23% year-over-year. Year-to-date commercial revenue represented 39% of total segment revenue.

• To support continued e-commerce and e-commerce fulfillment growth, the Fleet segment announced plans to open a new distribution warehouse and e-commerce fulfillment center of excellence in the greater Memphis, Tennessee area. This new, state-of-the-art, 425,000 square foot facility will double the company’s existing warehouse footprint. The facility is scheduled to begin servicing customers in the first quarter of 2023, with on-hand stock of more than 175,000 SKUs once fully operational.

• The Federal & Defense segment secured $5 million in new bookings with the new VSE Distribution and Logistics capability and delivered a book to bill of 2.6x in the third quarter 2022. This new capability and revenue opportunity remains a growth channel for the segment.

Growing Adjusted EBITDA:

• Aviation segment adjusted EBITDA grew to $13.6 million in the third quarter, an increase of 86% versus the prior-year period, with segment EBITDA margin expansion of +326 bps year-over-year. The successful implementation of recently awarded distribution programs and increased MRO activity drove profitability improvements.

• Fleet segment adjusted EBITDA grew to $8.7 million, up 13% year-over-year. Steady contributions from USPS revenue combined with strong commercial growth contributed to adjusted EBITDA growth. Growing total segment adjusted EBITDA remains a critical component of Fleet segment strategy.

Optimizing Legacy Programs:

• The Aviation segment secured multiple multi-year contract renewals supporting sustained revenue while expanding VSE's scope and improving cross-selling opportunities. In October 2022, VSE Aviation entered into two exclusive distribution agreements with an established OEM partner to distribute inertial reference systems globally and fuselage mounted antenna (FMA) systems in Europe, Middle East, Africa and India (EMEAI). The expanded agreements will generate revenue opportunities as both new and existing business jet customers leverage the full breadth of the Company’s combined distribution and repair capabilities.

• Fleet segment USPS revenue grew to $39.1 million, up 7% in the third quarter versus the prior-year period. For the past 33 years, the Fleet segment has been, and continues to be, an essential part of USPS maintenance operations in support of its complex supply chain, servicing all vehicle types in the 230,000+ unit USPS fleet.

• Federal & Defense segment revenue increased in the quarter supported by the Naval Sea Systems Command (NAVSEA) program, which increased 82% year-over-year in the third quarter, primarily resulting from Foreign Military Sales (FMS) support. Activity on our FMS Program increased over the past year, driven by work to transfer a naval frigate to Bahrain. Additionally, in August 2022, the Federal & Defense segment was awarded an $86 million ceiling addition to the existing NAVSEA bridge contract in support of FMS requirements for the Egyptian Navy, supporting follow on technical services through 2024.

SEGMENT RESULTS

Aviation segment revenue increased 40% year-over-year to a record $102.6 million in the third quarter 2022. The year-over-year revenue improvement was attributable to share gains within the B&GA market and continued commercial aftermarket recovery, aligned with global revenue passenger kilometers. Aviation distribution and repair revenue increased 35% and 55%, respectively, in the third quarter versus the prior-year period. The Aviation segment reported operating income of $10.0 million in the third quarter, compared to $3.7 million in the same period of 2021. Segment adjusted EBITDA increased by 86% in the third quarter to $13.6 million, versus $7.3 million in the prior-year period. Adjusted EBITDA margins were 13.2%, an increase of 326 basis points versus the prior-year period, driven by execution of new program awards and continued end-market recovery.

Fleet segment revenue increased 7% year-over-year to $64.8 million in the third quarter 2022. Revenues from commercial customers increased 23% on a year-over-year basis, driven by growth in commercial fleet demand and e-commerce fulfillment sales. Commercial revenue represented more than 39% of total Fleet segment revenue in the period for the third consecutive quarter. Segment adjusted EBITDA increased 13% year-over-year to $8.7 million, while adjusted EBITDA margin was 13.5%, an increase of 64 basis points versus the prior-year period.

Federal & Defense segment revenue increased 12% year-over-year to $75.1 million in the third quarter 2022, driven by growth in the Foreign Military Sales (FMS) program with the U.S. Navy along with a steady increase in Defense Logistics Agency (DLA) distribution services. The Federal & Defense segment reported operating income of $1.9 million in the third quarter 2022. Segment adjusted EBITDA declined 57% year-over-year to $2.8 million in the period, given a higher mix of cost-plus contracts. Funded backlog increased 8% year-to-date to $199 million, while bookings increased 7% on a year-to-date basis.

FINANCIAL RESOURCES AND LIQUIDITY

As of September 30, 2022, the Company had $99 million in cash and unused commitment availability under its $350 million revolving credit facility maturing in 2024. As of September 30, 2022, VSE had total net debt outstanding of $298 million and $86.9 million of trailing-twelve months adjusted EBITDA.

In October 2022, the Company entered into an amendment to its loan agreement which, among other things, extended the maturity dates with respect to the revolving credit facility and term loan facility to October 2025, transitioned its index to Secured Overnight Financing Rate (SOFR) term rates, and lowered the applicable base margins with modified Total Funded Debt to EBITDA Ratio requirements.

THIRD QUARTER RESULTS

THIRD QUARTER SEGMENT RESULTS

The following is a summary of revenues and operating income (loss) for the three and nine months ended September 30, 2022 and September 30, 2021:

The Company reported $4.7 million and $7.4 million of total capital expenditures for three and nine months ended September 30, 2022.

NON-GAAP MEASURES

In addition to the financial measures prepared in accordance with generally accepted accounting principles ("GAAP"), this earnings release also contains Non-GAAP financial measures. These measures provide useful information to investors, and a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these Non-GAAP measures is included in the supplemental schedules attached.

NON-GAAP FINANCIAL INFORMATION

Reconciliation of Adjusted Net Income and Adjusted EPS to Net Income