- Revenue up 16% to
~$107 million year-over-year, taking into consideration theTM Group divestiture - Adjusted EBITDA of
~$60 million $185 million Substantial Issuer Bid to repurchase all remaining 3.75% convertible senior unsecured debentures dueMarch 1, 2026
"Our business continued its strong performance this quarter with a focus on predictable revenue streams, evident in the steady growth of our annual recurring revenue, now standing at 30% of revenue," said
Third Quarter Fiscal 2024 Highlights
- Revenue was up 3% including the impact of
TM Group ("TMG") compared to the equivalent period in the prior year. $125.5 million of Annual Recurring Revenue1, or 30% of total revenue2, representing an 85% increase year over year.- Organic revenue growth rate of 4.1% year over year for the quarter ended
March 31, 2024 4. - Net loss for the third quarter was
$39.7 million , an increase of$4.6 million or 13% compared to the equivalent period in the prior year. - Adjusted EBITDA3 was
$59.8 million , an increase of$3.7 million or 7%, from the equivalent period in the prior year, despite the loss of contributed Adjusted EBITDA3 from TMG in the prior year. - Net debt reduction of
$102 million as atMarch 31, 2024 , as compared toJune 30, 2023 . - The Company continues to work towards reducing its net debt to adjusted EBITDA to below four times.
Substantial Issuer Bid
On
The Offer would pay down up to
The Offer will not be conditional upon any minimum number of Debentures being tendered. The Offer will, however, be subject to other conditions and the Company will reserve the right, subject to applicable laws, to withdraw or amend the Offer, if, at any time prior to the payment of deposited Debentures, certain events occur.
If debentureholders representing at least 90% of the outstanding principal amount of the Debentures tender their Debentures to and accept the Offer, the Company may exercise its rights pursuant to Article 12 of the trust indenture governing the Debentures dated
The formal offer to purchase and issuer bid circular, letter of transmittal and notice of guaranteed delivery (collectively, the "Offer Documents") containing the terms and conditions of the Offer and instructions for tendering Debentures will be filed with the applicable securities regulators and mailed to registered debentureholders. The Offer Documents will be available under the Company's SEDAR+ profile at www.sedarplus.ca.
Neither the Company nor its board of directors makes any recommendation to debentureholders as to whether to tender or refrain from tendering any or all of their Debentures to the Offer. This press release is neither an offer to purchase nor a solicitation of an offer to sell any Debentures. The solicitation and the offer to purchase Debentures by the Company is being made only pursuant to the Offer Documents. Debentureholders of the Company are urged to read the Offer Documents carefully and to consult with their own financial, tax and legal advisors prior to making any decision with respect to the Offer.
Quarterly Dividend
On
Conference Call Notification
The Company will hold a conference call to discuss its business later today,
DATE:
TIME:
RAPIDCONNECT: To instantly join the conference call by phone, please use the following URL to easily register and be connected into the conference call automatically: https://emportal.ink/3xWFgmF
TRADITIONAL DIAL-IN NUMBER: (416) 764-8659 or (888) 664-6392
REFERENCE NUMBER: 84458967
TAPED REPLAY: (416) 764-8677 or (888) 390-0541
REPLAY CODE: 458967#
This call is being webcast and can be accessed by going to: https://app.webinar.net/j1nwyYLERZO
- As of
March 31, 2024 . - Excluding TM Group revenues and other non-billing adjustments
- Represents a non-IFRS measure. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. For the relevant definition, see the "Non-IFRS Financial Measures" section of this press release. Management believes non-IFRS measures, including EBITDA, Adjusted EBITDA, and Organic Revenue, provide supplementary information to IFRS measures used in assessing the performance of the business by providing further understanding of the Company's results of operations from management's perspective. Please see "Cautionary Note Regarding Non-IFRS Measures", and "Select Information and Reconciliation of Non-IFRS Measures in the Company's most recent Management's Discussion and Analysis, which is available on the Company's profile on SEDAR+ at www.sedarplus.ca, for further details on certain non-IFRS measures, including the relevant reconciliations of Adjusted EBITDA to its most directly comparable IFRS measure, which information is incorporated by reference herein. Please see the "Non-IFRS Financial Measures" section of this press release for a reconciliation of Organic Revenue to Revenue.
- Organic Revenue Growth Rate
Organic Revenue Growth Rate is calculated by the total revenue in the current quarter period (excluding the pre-acquisition quarterly revenue of those acquisitions executed in the last twelve months period fromMarch 31, 2024 and discontinued businesses) divided by the total revenue in the prior quarter period (excluding discontinued businesses). Below is a reconciliation of Organic Revenue to Revenue.
Q3 FY2024 | Q3 FY2023 | |
Revenue | 107.3 | 104.1 |
TM Group Pre-Divestiture | - | (13.0) |
Pre-Acquisition Reporting Results | (13.2) | |
Discontinued Businesses | - | (0.8) |
Organic Revenue | 94.1 | 90.3 |
Organic Revenue Growth Rate | 4.1 % |
About
Additional information can be found at www.dyedurham.com.
Non-IFRS Measures
This press release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies.
Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective and to discuss
Please see "Cautionary Note Regarding Non-IFRS Measures" and "Select Information and Reconciliation of Non-IFRS Measures" in the Company's most recent Management's Discussion and Analysis, which is available on the Company's profile on SEDAR+ at www.sedarplus.ca, for further details on certain non-IFRS measures, including relevant reconciliations of each non-IFRS measure to its most directly comparable IFRS measure, which information is incorporated by reference herein.
EBITDA
EBITDA means net income (loss) before amortization and depreciation expenses, finance and interest costs including change in fair value of the Company's convertible debentures, loss on settlement of loans and borrowings, realized loss on derivatives, gains or losses from re-financing transactions and provision for income taxes.
Adjusted EBITDA
Adjusted EBITDA adjusts EBITDA for stock-based compensation expense, loss on disposal of assets held for sale, specific transaction-related expenses related to acquisitions, listing and reorganization related expenses, integration and operational restructuring costs. Operational restructuring costs are incurred as a direct or indirect result of acquisition activities. Operational restructuring costs include the full period impact of cost synergies related to the reduction of employees for acquisitions.
Forward-looking Statements
This press release may contain forward-looking information and forward-looking statements within the meaning of applicable securities laws, which reflects the Company's current expectations regarding future events, including with respect to the timing and completion of the Offer, the intentions of the Company's directors and officers and debentureholders with respect to tendering to the Offer, and the Company's financial outlook and business strategy, including its debt reduction strategy and products and services. In some cases, but not necessarily in all cases, forward-looking statements can be identified by the use of forward looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking statements. Forward-looking statements are not historical facts, nor guarantees or assurances of future performance but instead represent management's current beliefs, expectations, estimates and projections regarding future events and operating performance.
Specifically, statements regarding
The forward looking information is subject to significant risks including, without limitation: that the Company will be unable to effectively execute against its key strategic growth priorities, including in respect of acquisitions; the Company will be unable to continue to retain and grow its existing customer base and market share; risks related to the Company's business and financial position; that
If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information.
Although the Company bases these forward-looking statements on assumptions that it believes are reasonable when made, the Company cautions investors that forward-looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which it operates may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if the Company's results of operations, financial condition and liquidity and the development of the industry in which it operates are consistent with the forward-looking statements contained in this press release, those results of developments may not be indicative of results or developments in subsequent periods.
There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents
All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.
SOURCE
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