TORONTO, July 19,
2024 /CNW/ - Dye & Durham Limited (TSX: DND)
("Dye & Durham" or the "Company"), today
announced its preliminary unaudited financial results1
for the three-month period ended June 30,
2024 ("Q4 FY2024").
"As expected, the business fundamentals remained very strong
throughout the fourth quarter" said Matthew
Proud, CEO of Dye & Durham. "Our strategic transition to
a SaaS model is proving effective, enabling us to grow at scale and
capture market opportunities more efficiently. This shift has
significantly bolstered our financial performance, validating our
go-to-market strategy."
"Looking ahead, we are optimistic about our future prospects.
Early results from the current quarter further reinforce our
confidence in the underlying financial performance and cash
generation capabilities, which allow us to continue to drive
towards a leverage ratio of below four times net debt to adjusted
EBITDA. We remain excited about the potential growth and value
creation for our shareholders."
Fourth Quarter Fiscal 2024 Highlights(1):
- Revenue for Q4 FY2024 is expected to be approximately
$120 million.
- Total revenue growth for Q4 FY2024 is expected to be
approximately 15%, of which 8% is expected to be
organic(2)(3).
- Leveraged Free Cash Flow(2)(4) for Q4 FY2024, is
expected to be approximately $28
million.
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1.
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These figures are
preliminary and are inherently uncertain due to a number of
factors, and remain subject to review by the Company's management,
audit committee and board of directors and the completion of
regular financial closing and review procedures and audit
procedures for Q4 FY2024 and fiscal 2024. The preliminary unaudited
figures disclosed herein should not be viewed as a substitute for
audited financial statements prepared in accordance with generally
accepted accounting principles. Additional adjustments to the
preliminary unaudited figures presented above may be identified,
and final results for the relevant fiscal periods may differ
materially from these preliminary unaudited figures and will not be
finalized until after the Company completes its normal year-end
accounting procedures, including execution of internal controls
over financial reporting. These preliminary unaudited figures
are intended to provide information about management's current
expectations regarding certain aspects of Dye & Durham's
financial performance. Reliance on the information presented herein
may not be appropriate for other purposes.
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|
2.
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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 Organic Revenue
and Leveraged Free Cash Flow, 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.
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3.
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Revenue Growth is
calculated by the total revenue in the current quarter period
divided by the total revenue in the prior quarter (excluding TM
Group). 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 from June 30, 2024 and discontinued
businesses) divided by the total revenue in the prior quarter
period (excluding TM Group, pre-acquisition quarterly revenue and
discontinued businesses). As disclosed below, Organic Revenue,
which is a non-IFRS measure, is used as a component in Organic
Revenue Growth Rate. Below is a reconciliation of Organic Revenue
to Revenue.
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Estimated Q4 FY2024
(thousands)
|
|
Revenue
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120,000
|
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TM Group
Pre-Divestiture
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--
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Pre-Acquisition
Reporting Results
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(8,400)
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Discontinued
Businesses
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--
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Organic
Revenue
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111,600
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Organic Revenue
Growth Rate
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8 %
|
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4.
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Leveraged Free Cash
Flow is a new non-IFRS measure used by the Company and is
defined as net cash provided by operating activities less additions
to intangible assets and property (including capitalized software)
less net interest paid and payments under lease arrangements. The
Company believes Leveraged Free Cash Flow is a fundamental measure
for investors to evaluate cash generated by the Company after
accounting for the Company's obligations, including interest
payments, capital expenses and lease obligations. Below is a
reconciliation of Leveraged Free Cash Flow against its most
directly comparable IFRS financial measure, being net cash provided
by operating activities, for Q4 FY2024 (estimated) and its
comparative period. Below is a reconciliation of Net cash provided
by operating activities to Leveraged Free Cash flow.
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Q4 FY2023
(thousands)
|
Estimated Q4 FY2024
(thousands)
|
|
Net cash provided by
operating activities
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43,784
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48,000 to
52,000
|
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Additions to
intangible assets
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(9,207)
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Purchases of
property and equipment
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(433)
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(1,500)
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Net interest
paid
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(29,001)
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(17,000)
|
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Payments for lease
obligations
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(1,249)
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(1,500)
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Total
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3,894
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28,000 to
32,000
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Dye & Durham will hold a conference call to discuss its Q4
FY2024 audited results and will communicate this date in the near
future. The call will be hosted by Matt
Proud, Chief Executive Officer, and Frank Di Liso, Chief Financial Officer, followed
by a question-and-answer period. Dye & Durham will report its
audited financial results after market close and prior to the call
that same day.
About Dye & Durham
Dye & Durham Limited provides premier practice management
solutions empowering legal professionals every day, delivers vital
data insights to support critical corporate transactions and
enables the essential payments infrastructure trusted by government
and financial institutions. The company has operations in
Canada, the United Kingdom, Ireland, Australia and South
Africa.
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 Dye & Durham's financial outlook.
The Company's definitions of non-IFRS measures may not be the same
as the definitions for such measures used by other companies in
their reporting. Non-IFRS measures have limitations as analytical
tools. Accordingly, these measures should not be considered in
isolation nor as a substitute for analysis of Dye & Durham's
financial information reported under IFRS. The Company uses
non-IFRS measures, including "Organic Revenue", and "Leveraged Free
Cash Flow" (each as defined herein), to provide investors with
supplemental measures of its operating performance and to eliminate
items that have less bearing on operating performance or operating
conditions and thus highlight trends in its core business that may
not otherwise be apparent when relying solely on IFRS financial
measures. The Company's management also uses non-IFRS financial
measures in order to facilitate operating performance comparisons
from period to period. The Company believes that securities
analysts, investors, and other interested parties frequently use
non-IFRS financial measures in the evaluation of issues.
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 Company's
preliminary unaudited Q4 FY2024 financial results, financial
outlook and business strategy, and its debt reduction strategy. 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 Dye & Durham's
expectations of performance, prospects, the markets in which we
operate, or about any future intention with regard to its business,
acquisition strategies and debt reduction strategy are
forward-looking information. The foregoing demonstrates Dye &
Durham's objectives, which are not forecasts or estimates of its
financial position, but are based on the implementation of its
strategic goals, growth prospectus, and growth initiatives. The
forward-looking information is based on management's opinions,
estimates and assumptions, including, but not limited to: (i) Dye
& Durham's results of operations continuing as expected, (ii)
the Company continuing to effectively execute against its key
strategic growth priorities, (iii) the Company continuing to retain
and grow its existing customer base and market share, (iv) the
Company being able to take advantage of future prospects and
opportunities, and realize on synergies, including with respect of
acquisitions, (v) there being no changes in legislative or
regulatory matters that negatively impact the Company's business,
(vi) current tax laws remaining in effect and not being materially
changed, (vii) economic conditions remaining relatively stable
throughout the period, (vii) the industries Dye & Durham
operates in continuing to grow consistent with past experience,
(ix) the seasonal trends in real estate transaction volume
continuing as expected, * the Company's expectations regarding its
debt reduction strategy being met and (xi) those assumptions
described under the heading "Caution Regarding Forward-Looking
Information" in the Company's most recent Management's Discussion
and Analysis. While these opinions, estimates and assumptions are
considered by Dye & Durham to be appropriate and reasonable in
the circumstances as of the date of this press release, they are
subject to known and unknown risks, uncertainties, assumptions and
other factors that may cause the actual results, levels of
activity, performance, or achievements to be materially different
from those expressed or implied by such forward-looking
information.
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 Dye & Durham may not be able to accurately
predict its rate of growth and profitability; risks related to
economic and political uncertainty; income tax related risks; and
those risk factors discussed in greater detail under the "Risk
Factors" section of the Company's most recent annual information
form and under the heading "Risks and Uncertainties" in the
Company's most recent Management's Discussion and Analysis, which
are available under Dye & Durham's profile on SEDAR+ at
www.sedarplus.ca. Many of these risks are beyond the
Company's control.
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 Dye & Durham's expectations as of the date specified
herein, and are subject to change after such date. However, the
Company disclaims any intention or obligation or undertaking to
update or revise any forward-looking information or to publicly
announce the results of any revisions to any of those statements,
whether as a result of new information, future events or otherwise,
except as required under applicable securities laws. Comparisons of
results for current and any prior periods are not intended to
express any future trends or indications of future performance,
unless specifically expressed as such, and should only be viewed as
historical data.
All of the forward-looking information contained in this press
release is expressly qualified by the foregoing cautionary
statements.
SOURCE Dye & Durham Limited