Record revenue of
Revenue grew 14% year-over-year to
Gross Profit of
Adjusted EBITDA2 of
Adjusted Free Cash Flow2 of
(All figures in US dollars, unless otherwise indicated)
1 Please refer to "Selected Unreviewed and Unaudited Pro-Forma Consolidated Financial Information" section of this press release |
/NOT FOR DISTRIBUTION TO US WIRE SERVICES OR FOR DISSEMINATION IN
"We are thrilled with our financial performance for the most recent quarter, which included strong growth in revenue and Adjusted EBITDA. Additionally, we were able to close a meaningful acquisition which adds momentum to the upcoming quarter, demonstrating our ability to execute our growth strategy and acquire companies at an accretive price with a balance of cash, vendor take back debt, and stock, in the face of challenging public market conditions. We remain confident in our platform's ability to deliver ongoing revenue and EBITDA growth, along with strong positive cash flow generation, as we continue to evaluate acquisition opportunities that are strategic and accretive," said
Financial Highlights for the three months ended
- Record Revenue of
$25.5 million , a 23% increase from the three months endedJune 30, 2022 , and a 148% increase year-over-year - Pro-Forma Consolidated1 Revenue of
$36.9 million , an 8% increase from the three months endedJune 30, 2022 , and a 14% increase year-over-year - Gross Profit of
$11.3 million , a 7% increase from the three months endedJune 30, 2022 , and a 143% increase year-over-year - Adjusted EBITDA2 of
$3.0 million , compared to$2.8 million for the three months endedJune 30, 2022 , and an increase of 142% year-over-year - Adjusted Free Cash Flow2 of
$2.5 million , compared to$2.1 million for the three months endedJune 30, 2022 , and an increase of 101% year-over-year - Net loss of
$1.9 million ($(0.01) per basic and diluted share) - Cash and total debt as at
September 30, 2022 were$8.9 million and$53.7 million , respectively, compared to$10.4 million and$25.0 million as atJune 30, 2022 ; total debt as atSeptember 30, 2022 consists of$40.0 million of senior lender debt and$13.1 million of convertible debentures
1 Please refer to "Selected Unreviewed and Unaudited Pro-Forma Consolidated Financial Information" section of this press release |
Significant developments for the three months ended
- On
September 8, 2022 , the Company acquired 100% of the membership interests ofUbiquity Agency LLC ("Ubiquity"), an omnichannel marketing network and technology platform, for an aggregate purchase price of approximately$44.3 million . - On
September 8, 2022 , the Company amended its senior credit facility with the Bank of Montreal to fully exercise the accordion option to increase the non-revolving term facility by$15 million to$40 million in order to fund the acquisition of Ubiquity. After the amendment, the facility is comprised of a$40 million non-revolving term facility and an unamended$8 million revolving facility. All other material terms of the facility remain unchanged.
Voluntary Withdrawal of Base Shelf Prospectus
Selected Unreviewed and Unaudited Pro-Forma Consolidated Financial Information
Pro Forma Consolidated Revenue provided above is presented as if: 1) 2810735
The unreviewed and unaudited Pro Forma Consolidated Revenue provided above (the "Pro Forma Revenue") is derived from the Revenue figures presented in
Non-IFRS Measures
The Company prepares its financial statements in accordance with International Financial Reporting Standards ("IFRS"). However, the Company considers certain non-IFRS financial measures as useful additional information to assess its financial performance. These measures, which it believes are widely used by investors, securities analysts and other interested parties to evaluate its performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures include "Adjusted EBITDA" and "Adjusted Free Cash Flow".
Adjusted EBITDA and Adjusted Free Cash Flow
Consolidated adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is a non-IFRS measure of financial performance. Company management defines Adjusted EBITDA as IFRS Net income (loss) adding back finance costs, income taxes, depreciation amortization, gain/loss on disposal of assets and extinguishment of loans, fair value gain/loss on financial liabilities and contingent consideration, and excludes discontinued operations and the effects of significant items of income and expenditure which may have an impact on the quality of earnings, such as impairments where the impairment is the result of an isolated, non-recurring event. It also excludes the effects of equity-settled share-based payments, foreign exchange gains/losses, changes in deferred revenues, changes in deferred cost of sales, and other extraordinary one-time expenses. See reconciliation of Adjusted EBITDA under "Adjusted EBITDA" below.
Company management defines "Adjusted Free Cash Flow" as Adjusted EBITDA less capital expenditures, such as acquisition of property and equipment and additions to intangibles, and income taxes paid during the period.
The presentation of these non-IFRS financial measures are not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with IFRS and may be different from non-IFRS financial measures used by other companies.
Management believes Adjusted EBITDA and Adjusted Free Cash Flow are useful financial metrics to assess its operating performance on a cash basis before the impact of non-cash and extraordinary one-time items.
The following table presents the Company's calculation of Adjusted EBITDA and Adjusted Free Cash Flow for each period:
| For the three months ended | |||||
2022 | 2022 | 2021 | ||||
Net loss | $ (1,886) | $ (1,443) | $ (46) | |||
Add: | ||||||
Finance costs | 688 | 673 | 506 | |||
Income tax expense (recovery) | 282 | (356) | (53) | |||
Depreciation and amortization | 3,070 | 2,396 | 1,035 | |||
Fair value adjustment - contingent consideration | — | — | — | |||
Fair value loss (gain) on financial liabilities | (33) | (5) | (313) | |||
Gain on disposal of property and equipment | — | — | — | |||
Loss on extinguishment of loan | — | 1,217 | — | |||
Share-based compensation expense | 353 | 131 | — | |||
Change in deferred revenue of in-app purchases | 268 | (62) | — | |||
Change in deferred cost of sales | (56) | (100) | — | |||
Extraordinary one-time expenses | 245 | 469 | — | |||
Foreign exchange loss (gain) | 39 | (110) | 108 | |||
Non-recurring income | — | — | (11) | |||
Adjusted EBITDA | $ 2,970 | $ 2,810 | $ 1,226 | |||
Less: | ||||||
Acquisition of property and equipment | (21) | (13) | (6) | |||
Additions to intangible assets | (466) | (202) | — | |||
Taxes paid | (27) | (510) | — | |||
Adjusted Free Cash Flow | $ 2,456 | $ 2,085 | $ 1,220 |
Financial Statements and MD&A
About
Additional information about the Company is available at www.sedar.com.
Neither the
Cautionary Statement Regarding Forward-Looking Information
Certain information in this news release constitutes forward-looking statements and forward-looking information under applicable Canadian securities legislation (collectively, "forward-looking information"). Forward-looking information include, but are not limited to, statements with respect to and the business, financials and operations of the Company. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events. Forward looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements and future events to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the public documents of the Company available at www.sedar.com. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Investors are cautioned undue reliance should not be placed on any such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
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