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Sapiens Reports Second Quarter 2024 Financial Results

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ROCHELLE PARK, N.J., Aug. 1, 2024 /PRNewswire/ — Sapiens International Corporation, (NASDAQ: SPNS) (TASE: SPNS), a leading global provider of software solutions for the insurance industry, today announced its financial results for the second quarter ended June 30, 2024.

 

Summary Results for Second Quarter 2024 (USD in millions, except per share data)

GAAP

Non-GAAP

Q2 2024

Q2 2023

% Change

Q2 2024

Q2 2023

% Change

Revenue

$136.8

$128.3

6.6 %

$136.8

$128.4

6.6 %

Gross Profit

$60.1

$54.7

10.0 %

$62.5

$58.0

7.7 %

Gross Margin

43.9 %

42.6 %

 130 bps

45.7 %

45.2 %

50 bps

Operating Income

$21.9

$19.6

11.5 %

$24.8

$23.4

6.1 %

Operating Margin

16.0 %

15.3 %

 70 bps

18.2 %

18.2 %

0 bps

Net Income (*)

$18.6

$15.4

20.9 %

$21.0

$18.6

13.1 %

Diluted EPS

$0.33

$0.28

17.9 %

$0.37

$0.33

12.1 %

(*) Attributable to Sapiens’ shareholders

 

Roni Al-Dor, President and CEO of Sapiens, stated, “We are pleased to report that revenue reached $137 million this quarter, reflecting a 6.6% increase over the same period last year. This quarter non-GAAP demonstrated our strong execution capabilities, particularly with robust growth in North America and Europe. This quarter’s non-GAAP operating profit totaled $25 million, representing 18.2% of total revenue. Additionally, net income this quarter grew by 13%, and EPS per diluted share was $0.37 this quarter of 2024, up 12.1% from the second quarter of 2023″.

“We reiterate our 2024 guidance for non-GAAP revenues in a range of $550 million to $555 million and for non-GAAP operating margin in a range of 18.1%-18.5%,” concluded Mr. Al-Dor.

Quarterly Results Conference Call

Management will host a conference call and webcast on August 1, 2024, at 9:30 a.m. Eastern Time (4:30 p.m. in Israel) to review and discuss Sapiens’ results. Please call the following numbers (at least 10 minutes before the scheduled time) to participate:

North America (toll-free): 1-888-642-5032
International: 972-3-9180644
UK: 0-800-917-5108

The live webcast of the call can be viewed on Sapiens’ website at: https://veidan.activetrail.biz/sapiensq2-2024. A replay of the call will be available one business day following the completion of the event at the same link for 90 days.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: non-GAAP revenue, ARR, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income attributed to Sapiens shareholders, non-GAAP basic and diluted earnings per share, Adjusted EBITDA and Adjusted Free Cash-Flow.

Sapiens believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Sapiens’ financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analyses, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. These measures are used in financial reports prepared for management and in quarterly financial reports presented to the Company’s board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: Valuation adjustment on acquired deferred revenue, amortization of capitalized software development and other intangible assets, capitalization of software development, stock-based compensation, compensation related to acquisition and acquisition-related costs, restructuring and cost reduction costs, and tax adjustments related to non-GAAP adjustments.

Management of the Company does not consider these non-GAAP measures in isolation, or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations, as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures.

To compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. Sapiens urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables of this release.

The Company defines Annual Recurring Revenue (“ARR”) as the annualized value of our revenue from customer subscriptions, term licenses, maintenance, application maintenance, and cloud solutions, which may not be the same as the timing and amount of revenue recognized. The ARR run rate is equal to the product of (i) the sum of these revenues in our most recently completed fiscal quarter, multiplied by (ii) four.

 The Company defines Adjusted EBITDA as net profit, adjusted to eliminate valuation adjustment on acquired deferred revenue, stock-based compensation expense, depreciation and amortization, capitalization of software development costs, compensation expenses related to acquisition and acquisition-related costs, restructuring and cost reduction costs, financial expense (income), provision for income taxes and other income (expenses). These amounts are often excluded by other companies as well, in order to help investors understand the operational performance of their business.

The Company uses Adjusted EBITDA as a measurement of its operating performance, because it assists in comparing the operating performance on a consistent basis by removing the impact of certain non-cash and non-operating items. Adjusted EBITDA reflects an additional way of viewing aspects of the operations that the Company believes, when viewed with the GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting its business. The Company uses Adjusted Free Cash-Flow as a measurement of its operating performance, and reconciles cash-flow from operating activities to Adjusted Free Cash-Flow, while reducing the amounts for capitalization of software development costs and capital expenditures. The Company adds back cash payments made for former acquisitions in respect of future performance targets and retention criteria as determined upon acquisition date of the respective acquired company, which were included in the cash-flow from operating activities. We believe that Adjusted Free Cash-Flow is useful in evaluating our business, because Adjusted Free Cash-Flow reflects the cash surplus available to fund the expansion of our business.

About Sapiens

Sapiens International Corporation (NASDAQ and TASE: SPNS) empowers the financial sector, with a focus on insurance, to transform and become digital, innovative, and agile. With more than 40 years of industry expertise, Sapiens’ cloud-based SaaS insurance platform offers pre-integrated, low-code capabilities across core, data and digital domains to accelerate our customers’ digital transformation. Serving over 600 customers in more than  30 countries, Sapiens offers insurers across property and casualty, workers’ compensation, and life insurance markets the most comprehensive set of solutions, from core to complementary, including Reinsurance, Financial & Compliance, Data & Analytics, Digital, and Decision Management. For more information visit www.sapiens.com or follow us on LinkedIn.

Investor and Media Contact
Yaffa Cohen-Ifrah
Chief Marketing Officer and Head of Investor Relations, Sapiens
Yaffa.cohen-ifrah@sapiens.com 
+1 917-533-4782

Investor Contacts

Brett Maas
Managing Partner, Hayden IR
+1 646-536-7331
Brett.Maas@HaydenIR.com

Kimberly Rogers
Managing Director, Hayden IR
+1 541-904-5075
kim@HaydenIR.com 

Forward Looking Statements

Certain matters discussed in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, and are based on our beliefs, assumptions and expectations, as well as information currently available to us. Such forward-looking statements may be identified by the use of the words “anticipate,” “believe,” “estimate,” “expect,” “may,” “will,” “plan” and similar expressions. Such statements reflect our current views with respect to future events and are subject to certain risks and uncertainties. There are important factors that could cause our actual results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: the degree of our success in our plans to leverage our global footprint to grow our sales; the degree of our success in integrating the companies that we have acquired through the implementation of our M&A growth strategy; the lengthy development cycles for our solutions, which may frustrate our ability to realize revenues and/or profits from our potential new solutions; our lengthy and complex sales cycles, which do not always result in the realization of revenues; the degree of our success in retaining our existing customers or competing effectively for greater market share; difficulties in successfully planning and managing changes in the size of our operations; the frequency of the long-term, large, complex projects that we perform that involve complex estimates of project costs and profit margins, which sometimes change mid-stream; the challenges and potential liability that heightened privacy laws and regulations pose to our business; occasional disputes with clients, which may adversely impact our results of operations and our reputation; various intellectual property issues related to our business; potential unanticipated product vulnerabilities or cybersecurity breaches of our or our customers’ systems; risks related to the insurance industry in which our clients operate; risks associated with our global sales and operations, such as changes in regulatory requirements, wide-spread viruses and epidemics like the recent novel coronavirus pandemic, which adversely affected our results of operations, or fluctuations in currency exchange rates; and risks related to our principal location in Israel and our status as a Cayman Islands company. While we believe such forward-looking statements are based on reasonable assumptions, should one or more of the underlying assumptions prove incorrect, or these risks or uncertainties materialize, our actual results may differ materially from those expressed or implied by the forward-looking statements. Please read the risks discussed under the heading “Risk Factors” in our most recent Annual Report on Form 20-F, which we filled with the SEC on March 31, 2022, in order to review conditions that we believe could cause actual results to differ materially from those contemplated by the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason, to conform these statements to actual results or to changes in our expectations.

 

 

SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES            

CONDENSED CONSOLIDATED STATEMENT OF INCOME         
U.S. dollars in thousands (except per share amounts)  

  Three months ended

  Six months ended

 June 30,

 June 30,

2024

2023

2024

2023

 (unaudited)

 (unaudited)

 (unaudited)

 (unaudited)

 Revenue

136,800

128,299

271,049

253,020

 Cost of revenue

76,696

73,635

153,385

145,327

 Gross profit

60,104

54,664

117,664

107,693

 Operating expenses:

 Research and development, net

16,809

15,746

33,330

31,363

 Selling, marketing, general and administrative

21,412

19,297

41,929

37,816

 Total operating expenses

38,221

35,043

75,259

69,179

 Operating income

21,883

19,621

42,405

38,514

Financial and other expenses (income), net

(1,109)

562

(2,201)

1,759

 Taxes on income

4,375

3,587

8,488

6,917

 Net income

18,617

15,472

36,118

29,838

 Attributable to non-controlling interest

–

69

141

239

 Net income attributable to Sapiens’ shareholders

18,617

15,403

35,977

29,599

 Basic earnings per share

0.33

0.28

0.65

0.54

 Diluted earnings per share

0.33

0.28

0.64

0.53

Weighted average number of shares outstanding used to
compute basic earnings per share (in thousands)

55,797

55,196

55,771

55,176

Weighted average number of shares outstanding used to
compute diluted earnings per share (in thousands)

56,163

55,582

56,072

55,576

 

 

SAPIENS INTERNATIONAL CORPORATION N.V. AND SUBSIDIARIES 

RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands (except per share amounts)  

Three months ended

Six months ended

June 30,

June 30,

2024

2023

2024

2023

(unaudited)

(unaudited)

(unaudited)

(unaudited)

GAAP revenue

136,800

128,299

271,049

253,020

Valuation adjustment on acquired deferred revenue

–

55

–

110

Non-GAAP revenue

136,800

128,354

271,049

253,130

GAAP gross profit

60,104

54,664

117,664

107,693

Revenue adjustment

–

55

–

110

Amortization of capitalized software

1,569

1,425

3,114

2,856

Amortization of other intangible assets

808

1,848

2,587

3,696

Non-GAAP gross profit

62,481

57,992

123,365

114,355

GAAP operating income

21,883

19,621

42,405

38,514

Gross profit adjustments

2,377

3,328

5,701

6,662

Capitalization of software development

(1,823)

(1,679)

(3,540)

(3,337)

Amortization of other intangible assets

1,223

1,084

2,456

2,160

Stock-based compensation

811

1,059

1,583

1,922

Acquisition-related costs *)

365

4

494

10

Non-GAAP operating income

24,836

23,417

49,099

45,931

  GAAP net income attributable to Sapiens’ shareholders

18,617

15,403

35,977

29,599

  Operating income adjustments

2,953

3,796

6,694

7,417

  Taxes on income

(529)

(589)

(1,209)

(1,153)

  Non-GAAP net income attributable to Sapiens’ shareholders

21,041

18,610

41,462

35,863

 (*) Acquisition-related costs pertain to charges on behalf of M&A agreements related to future performance targets and retention criteria, as well as completed or prospective third-party services, such as tax, accounting and legal rendered..

 

 

Adjusted EBITDA Calculation
U.S. dollars in thousands

Three months ended

Six months ended

 June 30,

 June 30,

2024

2023

2024

2023

GAAP operating profit

21,883

19,621

42,405

38,514

Non-GAAP adjustments:

Valuation adjustment on acquired deferred revenue

–

55

–

110

Amortization of capitalized software

1,569

1,425

3,114

2,856

Amortization of other intangible assets

2,031

2,932

5,043

5,856

Capitalization of software development

(1,823)

(1,679)

(3,540)

(3,337)

Stock-based compensation

811

1,059

1,583

1,922

Compensation related to acquisition and acquisition-related costs

365

4

494

10

Non-GAAP operating profit

24,836

23,417

49,099

45,931

Depreciation

1,095

976

2,192

2,031

Adjusted EBITDA

25,931

24,393

51,291

47,962

 

 

Summary of NON-GAAP Financial Information 
U.S. dollars in thousands (except per share amounts)

Q2 2024

Q1 2024

Q4 2023

Q3 2023

Q2 2023

Revenues

136,800

134,249

130,914

130,760

128,354

Gross profit

62,481

60,884

59,370

59,260

57,992

Operating income

24,836

24,263

24,152

24,058

23,417

Adjusted EBITDA

25,931

25,360

25,267

24,777

24,393

Net income to Sapiens’ shareholders

21,041

20,421

20,081

19,080

18,610

Diluted earnings per share

0.37

0.36

0.36

0.34

0.33

 

 

Annual Recurring Revenue (“ARR”)
U.S. dollars in thousands  

Three months ended

June 30,

2024

2023

168,593

150,417

 

 

Non-GAAP Revenues by Geographic Breakdown
U.S. dollars in thousands

Q2 2024

Q1 2024

Q4 2023

Q3 2023

Q2 2023

North America

57,918

55,158

54,882

54,848

52,116

Europe

66,072

68,727

65,239

64,662

62,960

Rest of the World

12,810

10,364

10,793

11,250

13,278

Total

136,800

134,249

130,914

130,760

128,354

 

 

Non-GAAP Revenue breakdown
U.S. dollars in thousands 

Three months ended

Six months ended

June 30,

June 30,

2024

2023

2024

2023

Software products and re-occurring post-production services (*)

98,044

82,559

192,285

164,401

Pre-production implementation services (**)

38,756

45,795

78,764

88,729

Total Revenues

136,800

128,354

271,049

253,130

Three months ended

Six months ended

June 30,

June 30,

2024

2023

2024

2023

Software products and re-occurring post-production services (*)

52,237

42,437

102,577

87,286

Pre-production implementation services (**)

10,244

15,555

20,788

27,069

Total Gross profit

62,481

57,992

123,365

114,355

Three months ended

Six months ended

June 30,

June 30,

2024

2023

2024

2023

Software products and re-occurring post-production services (*)

53.3 %

51.4 %

53.3 %

53.1 %

Pre-production implementation services (**)

26.4 %

34.0 %

26.4 %

30.5 %

Gross Margin

45.7 %

45.2 %

45.5 %

45.2 %

(*) Software products and re-occurring post-production services include
mainly subscription, term license, maintenance, application maintenance, 
cloud solutions and post-production services. This revenue stream is a
mix of recurring and re-occurring in nature.

(**) Pre-production implementation services include mainly implementation
services before go-live, which are one-time in nature.

 

 

 

Adjusted Free Cash-Flow
U.S. dollars in thousands 

Q2 2024

Q1 2024

Q4 2023

Q3 2023

Q2 2023

Cash-flow from operating activities

8,545

18,488

38,646

3,988

14,603

Increase in capitalized software development costs

(1,823)

(1,717)

(1,543)

(1,638)

(1,679)

Capital expenditures

(666)

(466)

(421)

(696)

(775)

Free cash-flow

6,056

16,305

36,682

1,654

12,149

Cash payments attributed to acquisition-related costs(*) (**)

134

751

221

–

–

Adjusted free cash-flow

6,190

17,056

36,903

1,654

12,149

(*) Included in cash-flow from operating activities

(**) Acquisition-related payments pertain to charges on behalf of M&A agreements related to future performance targets and retention criteria, as well as completed or prospective third-party services, such as tax, accounting and legal.

 

 

 

SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET
U.S. dollars in thousands 

June 30,

December 31,

2024

2023

 (unaudited)

 (unaudited)

 ASSETS

 CURRENT ASSETS

Cash and cash equivalents

122,646

126,716

Short-term bank deposit

63,800

75,400

Trade receivables, net and unbilled receivables

102,101

90,273

Other receivables and prepaid expenses

20,258

22,514

Total current assets

308,805

314,903

 LONG-TERM ASSETS

Property and equipment, net

12,065

12,661

Severance pay fund

3,360

3,605

Goodwill and intangible assets, net

307,231

317,352

Operating lease right-of-use assets

20,505

23,557

Other long-term assets

15,571

17,546

Total long-term assets

358,732

374,721

 TOTAL ASSETS

667,537

689,624

LIABILITIES AND EQUITY

 CURRENT LIABILITIES

Trade payables

11,296

6,291

Current maturities of Series B Debentures

19,796

19,796

Accrued expenses and other liabilities

74,057

77,873

Current maturities of operating lease liabilities

5,705

6,623

Deferred revenue

31,928

38,541

Total current liabilities

142,782

149,124

 LONG-TERM LIABILITIES

Series B Debentures, net of current maturities

19,768

39,543

Deferred tax liabilities

8,517

10,820

Other long-term liabilities

11,469

11,538

Long-term operating lease liabilities

17,816

21,084

Accrued severance pay

7,443

7,568

Total long-term liabilities

65,013

90,553

EQUITY

459,742

449,947

TOTAL LIABILITIES AND EQUITY

667,537

689,624

 

 

SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOW
U.S. dollars in thousands

For the six months ended June 30,

2024

2023

(unaudited)

(unaudited)

Cash flows from operating activities:

Net income

36,118

29,838

Reconciliation of net income to net cash provided by operating activities:

Depreciation and amortization

10,349

10,743

Accretion of discount on Series B Debentures

22

32

Capital (gain) loss from sale of property and equipment

(9)

86

Stock-based compensation related to options issued to employees

1,583

1,922

Net changes in operating assets and liabilities, net of amount acquired:

Decrease (increase) in trade receivables, net and unbilled receivables

(12,723)

2,351

Increase (decrease) in deferred tax liabilities, net

(1,428)

45

Decrease (increase) in other operating assets

3,445

(390)

Increase (decrease) in trade payables

4,446

(1,014)

Decrease in other operating liabilities

(8,354)

(12,572)

Increase (decrease) in deferred revenues

(6,587)

5,284

Increase in accrued severance pay, net

171

466

Net cash provided by operating activities

27,033

36,791

Cash flows from investing activities:

Purchase of property and equipment

(1,146)

(1,439)

Proceeds from (investment in) deposits

12,136

(70,002)

Proceeds from sale of property and equipment

14

30

Payments for business acquisitions, net of cash acquired

(375)

–

Capitalized software development costs

(3,540)

(3,337)

Acquisition of intellectual property

–

(177)

Net cash provided by (used in) investing activities

7,089

(74,925)

Cash flows from financing activities:

Proceeds from employee stock options exercised

98

–

Distribution of dividend

(15,635)

(13,796)

Repayment of Series B Debenture

(19,796)

(19,796)

Acquisition of non-controlling interest

(4,131)

–

Dividend to non-controlling interest

–

(47)

Net cash used in financing activities

(39,464)

(33,639)

Effect of exchange rate changes on cash and cash equivalents

1,272

905

Decrease in cash and cash equivalents

(4,070)

(70,868)

Cash and cash equivalents at the beginning of period

126,716

160,285

Cash and cash equivalents at the end of period

122,646

89,417

Debentures Covenants

As of June 30, 2024, Sapiens was in compliance with all of its financial covenants under the indenture for the Series B Debentures, based on having achieved the following in its consolidated financial results:

Covenant 1 

Target shareholders’ equity (excluding non-controlling interest): above $120 million.Actual shareholders’ equity (excluding non-controlling interest) equal to $459.7 million.

Covenant 2

Target ratio of net financial indebtedness to net capitalization (in each case, as defined under the indenture for the Company’s Series B Debentures) below 65%.Actual ratio of net financial indebtedness to net capitalization equal to (46.79)%.

Covenant 3

Target ratio of net financial indebtedness to EBITDA (accumulated calculation for the four last quarters) is below 5.5.Actual ratio of net financial indebtedness to EBITDA (accumulated calculation for the four last quarters) is equal to (1.45).

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AtkinsRéalis Announces Private Offering of $400 Million of Unsecured Debentures

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MONTREAL, Nov. 9, 2026 /CNW/ — AtkinsRéalis Group Inc. (TSX: ATRL), a world-class engineering services and nuclear company with offices around the world, announced today that it has priced an offering of $400 million aggregate principal amount of 4.062% Series 11 unsecured debentures due November 12, 2029 (the “Debentures”).

Offering of Debentures

The Debentures are being offered through a syndicate of agents led by CIBC Capital Markets, Scotiabank and TD Securities, as joint bookrunners, and which also includes BMO Capital Markets, BNP Paribas (Canada) Securities Inc., National Bank of Canada Capital Markets, RBC Capital Markets, Desjardins Capital Markets and BofA Securities. The Debentures will be issued at a price of $1,000 per $1,000 principal amount of Debentures. AtkinsRéalis intends to use the net proceeds of the offering to repay existing indebtedness and for general corporate purposes.

The Debentures will bear interest at a fixed annual rate of 4.062%, payable in equal semi-annual instalments, in arrears, on May 12 and November 12 of each year until maturity, commencing on May 12, 2027.

The Debentures will be direct unsecured obligations of AtkinsRéalis, will rank pari passu with all other unsecured and unsubordinated indebtedness of AtkinsRéalis (including all of its other existing debentures as well as indebtedness under its existing main credit agreement) and will be guaranteed by the same subsidiaries that guarantee AtkinsRéalis’ obligations under its existing main credit agreement and its other outstanding debentures.

The Debentures have been assigned a provisional rating of BBB with a stable trend by DBRS Limited (Morningstar DBRS) and BBB- by Standard & Poor’s.

The Debentures have not been and will not be qualified for sale to the public under applicable securities laws in Canada and, accordingly, any offer and sale of the Debentures in Canada will be made on a basis which is exempt from the prospectus requirements of such securities laws. No securities regulatory authority has either approved or disapproved of the contents of this press release. The Debentures have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration under, or an applicable exemption from the registration requirements of, the U.S. Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer to sell or a solicitation of an offer to buy the Debentures in any jurisdiction where it is unlawful to do so.

About AtkinsRéalis

Created by the integration of long-standing organizations dating back to 1911, AtkinsRéalis is a world-class engineering services and nuclear company dedicated to engineering a better future for our planet and its people. We create sustainable solutions that connect people, data and technology to transform the world’s infrastructure and energy systems. We deploy global capabilities locally to our clients and deliver unique end-to-end services across the whole life cycle of an asset including consulting, advisory & environmental services, intelligent networks & cybersecurity, design & engineering, procurement, project & construction management, operations & maintenance, decommissioning and capital advisory services. The breadth and depth of our capabilities are delivered to clients in strategic sectors such as Engineering Services and Nuclear, as steward of CANDU® nuclear technology. News and information are available at www.atkinsrealis.com or follow us on LinkedIn.  

Forward-Looking Statements
References in this press release, and hereafter, to the “Company”, “AtkinsRéalis”, “we”, “us” and “our” mean, as the context may require, AtkinsRéalis Group Inc. and all or some of its subsidiaries or joint arrangements or associates, or AtkinsRéalis Group Inc. or one or more of its subsidiaries or joint arrangements or associates.

Statements made in this press release, including, but not limited to, statements relating to the offering of the Debentures, or any other future events or developments and other statements that are not historical facts, constitute “forward-looking statements” which can be identified by the use of the conditional or forward-looking terminology such as “aims”, “anticipates”, “assumes”, “believes”, “cost savings”, “estimates”, “expects”, “forecasts”, “goal”, “intends”, “likely”, “may”, “objective”, “outlook”, “plans”, “projects”, “should”, “synergies”, “target”, “vision”, “will”, or the negative thereof or other variations thereon.

Specific forward-looking statements in this press release include, but are not limited to, statements with respect to the offering of the Debentures and the intended timing and use of proceeds thereof and to the credit ratings assigned to the Debentures. All such forward-looking statements are made pursuant to the “safe-harbour” provisions of applicable Canadian securities laws. The Company cautions that, by their nature, forward-looking statements involve risks and uncertainties, and that its actual actions and/or results could differ materially from those expressed or implied in such forward-looking statements, or could affect the extent to which a particular projection materializes. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of the Company’s current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of the Company’s business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

Forward-looking statements made in this press release are based on a number of assumptions believed by the Company to be reasonable as at the date of this press release. The assumptions are set out throughout the Company’s 2025 annual management’s discussion and analysis (“2025 MD&A”) (particularly in the sections entitled “Critical Accounting Judgements and Key Sources of Estimation Uncertainty” and “How We Analyze and Report Our Results”) filed with the securities regulatory authorities in Canada, available on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.atkinsrealis.com  under the “Investors” section. If these assumptions are inaccurate, the Company’s actual results could differ materially from those expressed or implied in such forward-looking statements. In addition, important risk factors could cause the Company’s assumptions and estimates to be inaccurate and actual results or events to differ materially from those expressed in or implied by these forward-looking statements. Those risks are identified in the 2025 MD&A (particularly in the section entitled “Risks and Uncertainties”) and may be updated from time to time in the Company’s 2026 interim quarterly management’s discussion and analysis.

The forward-looking statements herein reflect the Company’s expectations as at the date of this press release and are subject to change after this date. The Company does not undertake to update publicly or to revise any written or oral forward-looking information or statements, whether as a result of new information, future events or otherwise, unless required by applicable legislation or regulation. The forward-looking information and statements contained herein are expressly qualified in their entirety by this cautionary statement.

For More Information :

Media             

Investors   

Antoine Calendrier           

Denis Jasmin   

Vice President, Global External 

Vice President, Investor Relations   

Communications

514-393-8000, ext. 57553  

media@atkinsrealis.com 

denis.jasmin@atkinsrealis.com 

SOURCE AtkinsRéalis

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Korea Deep Learning Cuts Financial Document Processing Time by 88%, Targets APAC Financial Sector

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VLM-based AI agent demonstrates potential in automating complex financial workflows through joint PoC with South Korea’s Industrial Bank of KoreaKorean AI company advances PoC discussions with nine Japanese financial institutions following projects in Vietnam and Taiwan region

SEOUL, South Korea, Nov. 10, 2026 /PRNewswire/ — Korea Deep Learning (KDL), an enterprise AI agent company, is expanding its presence in the Asia-Pacific financial sector following a successful proof of concept (PoC) with South Korea’s Industrial Bank of Korea (IBK), which demonstrated an 88% reduction in financial document processing time.

The project applied KDL’s VLM-based AI agent, DEEP Agent for Finance, to automate document-intensive procedures for handling voice phishing relief cases. The solution combines document recognition, information extraction and crime-type inference, addressing tasks that traditionally require substantial manual review by financial institution employees.

During the PoC, the system achieved 100% accuracy in printed-text recognition and document classification, while handwriting recognition accuracy exceeded 97%, based on the project’s evaluation criteria. All key performance indicators exceeded their targets using actual business data. The solution was deployed within IBK’s closed network, with employee review retained for cases requiring additional verification.

The results provide a reference case for KDL as it pursues opportunities with financial institutions across Asia. The company has completed a separate PoC with Shinhan Vietnam Finance Company (SVFC), a local subsidiary of Shinhan Card, through the Shinhan Financial Group’s open innovation program. KDL has also supplied AI solutions in overseas markets including Vietnam and Taiwan region.

In Japan, KDL is advancing discussions about potential PoCs with nine financial institutions. It is also engaging with financial institutions across the region in banking, insurance and consumer finance. Some prospective partners have signed non-disclosure agreements and are evaluating the technology using actual business data.

KDL plans to convert ongoing technical evaluations into paid PoCs and supply contracts, while developing local partnerships and sales channels from 2027. The company also aims to extend its solutions beyond banking into insurance and securities, where document processing and information extraction remain important parts of daily operations.

“Financial institutions handling voice phishing relief cases often spend considerable time processing documents before they can focus on supporting customers,” said Ji-hyun Kim, CEO of Korea Deep Learning. “Our project with IBK demonstrates how VLM-based AI agents can reduce that administrative burden. We aim to help financial institutions automate repetitive tasks, improve operational efficiency and allocate more resources to consumer protection.”

About Korea Deep Learning

Founded in 2019, Korea Deep Learning is an enterprise AI agent company specializing in document intelligence and workflow automation. Its DEEP Agent platform combines DEEP OCR and DEEP Parser technologies to extract and process information from complex documents. The company serves more than 80 companies and public institutions in South Korea.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/korea-deep-learning-cuts-financial-document-processing-time-by-88-targets-apac-financial-sector-302931894.html

SOURCE Korea Deep Learning

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LG Innotek Shines Again in Vehicle Lighting with Third Consecutive CES Innovation Award

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Next-generation vehicle lighting module Nexlide C+ wins CES 2027 Innovation AwardDifferent light patterns appear depending on the viewing angle, even from a single lighting moduleWorld’s first use of optical films in an ultra-slim surface light source module, enabling a thinner design

SEOUL, South Korea, Nov. 9, 2026 /PRNewswire/ — LG Innotek (CEO Moon Hyuksoo, 011070) announced on November 9 that its next-generation vehicle lighting module, Nexlide C+, has received a CES (Consumer Electronics Show) 2027 Innovation Award.

With its Nexlide series, LG Innotek has now received CES Innovation Awards for three consecutive years, from 2025 through 2027. The latest recognition reaffirms the company’s world-class competitiveness in vehicle lighting technology.

Nexlide is LG Innotek’s brand of next-generation flexible vehicle lighting modules, which combine the company’s proprietary optical design with advanced materials technology. Built on surface light source technology, which emits light in a broad and uniform fashion, Nexlide modules are thinner and more compact than conventional vehicle lighting while allowing a wide range of design possibilities. LG Innotek holds more than 700 patents related to surface light source technology.

The key strength of the award-winning Nexlide C+ is that a single lighting module can produce two or more 3D images, known as the 3D Multi-Effect. For example, the same module displays a 3D image with a diagonal pattern when viewed from the left and a vertical pattern when viewed from the right. Because the image changes with the viewing angle, the lighting creates a dynamic visual effect with a sense of depth.

Nexlide C+ can be integrated into various parts of a vehicle, from exterior lighting such as taillights and front grille lights to interior ambient lighting.

An LG Innotek official said, “Vehicle lighting is evolving from a simple signaling function into a key factor that shapes the design competitiveness of an automaker’s brand. Lighting technologies like Nexlide C+ that are capable of creating diverse light patterns will see even wider use.”

Nexlide C+ is also ultra-slim, at just 3 mm (0.12 in) thick or less, allowing it to be installed in tight spaces within a vehicle. LG Innotek is the first in the world to apply Light Turning Film and 3D Micro-Optic Pattern Film to an ultra-slim surface light source module.

The Light Turning Film precisely controls the direction of light to make different images appear at different viewing angles, while the 3D Micro-Optic Pattern Film makes images look three-dimensional even on a flat lighting surface.

The two films are only about 0.16 mm (0.0063 in) and 0.13 mm (0.0051 in) thick, respectively. By incorporating these ultra-thin films into the lighting module, LG Innotek enables a variety of 3D lighting effects in a slim profile. Previously, achieving the same effects required optical components such as plastic lenses and reflectors, and installing multiple components made the lighting unit bulkier.

By using these films to reduce the thickness of the lighting module, Nexlide C+ gives automakers even greater design freedom.

Going forward, LG Innotek will actively promote Nexlide C+ to global automakers and parts suppliers, targeting a 2027 launch.

At CES 2027 in January, LG Innotek will showcase a broad lineup of next-generation vehicle lighting modules, including Nexlide C+, along with key components for various areas of physical AI, such as autonomous driving and robotics.

[Background] LG Innotek previously received a CES 2025 Innovation Award for Nexlide A+, the industry’s first vehicle front lighting module to apply surface light source technology, with 40% less thickness and more than five times the brightness of the previous product. At CES 2026, the company received another Innovation Award for Nexlide Pixel, which reduced the lighting pixel size to among the smallest in the world while improving luminous efficiency by 30% compared with the previous product.

View original content to download multimedia:https://www.prnewswire.com/news-releases/lg-innotek-shines-again-in-vehicle-lighting-with-third-consecutive-ces-innovation-award-302933258.html

SOURCE LG Innotek

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