TSXV: DUG │OTCQX: DSTFF
TORONTO, June 1, 2018 /CNW/ - Distinct Infrastructure
Group Inc. ("Distinct" or the "Company") today released its
financial results for the three-month and twelve-month periods
ended December 31, 2017 along with
its financial statements for the three-month period ending
March 31, 2018.
December 31, 2017
For the twelve-month period ended December 31, 2017 ("FY 2017"), the Company had
revenues of $70.3 million, an
increase of $15.1 million or
approximately 27.4% as compared to the twelve-month period ended
December 31, 2016 ("FY 2016").
Adjusted EBITDA and Adjusted Net Loss for FY 2017 were $0.48 million and ($10.31
million) respectively as compared to Adjusted EBITDA and
Adjusted Net Loss of $3.71 million
and ($3.15 million) in FY 2016.
Revenue Restatement
Due to the implementation of IFRS 15 in 2018, the Company
reviewed its methodology for the application of percentage
completion of projects and the process of identifying revenue for
certain change orders. As a result of this review, the Company
adjusted previously reported revenue for in 2017 and for the year
ended December 31, 2016 and reduced
the work-in-progress by a corresponding amount. The adjustments
resulted in a $4.5 million reduction
of reported revenue for 2016.
The adjustments do not have any impact on the Company's
operations or its cashflows and, more specifically, do not affect
the Company's net cash flows from operating activities nor the
ongoing and future individual projects.
March 31, 2018
For the three months ending March 31,
2018 ("Q1 2018"), the Company reported revenues of
$21.3 million and Adjusted EBITDA of
$1.26 million, an increase of
approximately 71% and 164% respectively as compared to the three
months ended March 31, 2017 ("Q1
2017"). Adjusted Net Loss for Q1 2018 was ($1.07 million) as compared to an Adjusted Net
Loss of ($3.65 million) in Q1
2017.
The Company's growth trajectory continues with strong demand for
incremental services from its blue-chip clients. Q1 2018 is the
first quarter that the Company is including a full quarter's
revenue from its recently acquired subsidiary, Crown Utilities Ltd.
("Crown").
CFO Departure
The Company also announced that, further to its press release of
December 19, 2017, both Manny Bettencourt, the Chief Financial Officer,
and the Company have agreed that Mr. Bettencourt will not be
returning to resume his role as Chief Financial Officer. The
Company would like to thank Mr. Bettencourt for his contributions
to the success of the Company, and wishes him well in his future
endeavors. The Company will be undertaking a comprehensive search
for a permanent Chief Financial Officer.
Overview
"Distinct continues to build on its relationships with its
customers and sees significant positive growth in the number and
volume of projects," said Alex
Agius, Co-CEO, "The Company expects this growth trajectory
to carry on for the foreseeable future."
"In Q1 2018, the Company achieved year-over-year growth despite
some significant challenges." said William
Nurnberger, Interim CFO and VP Corporate Development. "In
the quarter, unusually inclement weather caused nine unbilled
revenue days in Ontario relative
to two unbilled in the Q1 2017 period. Further, we have continued
to see losses in the Alberta
region that have significantly impacted EBITDA negatively. The
Company is continuing its restructuring program in the region,
while still positioning the company to capitalize on future
profitable projects."
"Distinct is well-positioned to further its growth strategy with
strong support from our credit partners and with the acquisition
and integration of Crown Utilities Ltd. currently meeting all
expectations," said Joe Lanni,
Co-CEO, "The Company consistently reviews opportunistic
acquisitions that fit the Company's culture and growth
objectives.
"Taken together, these factors point to a strong and profitable
2018 for Distinct," Mr Lanni said. "We expect EBITDA margins to
recover in 2018 - likely coming-in closer to the margins you've
seen from us historically than to those in the restated 2016 and
2017 results discussed today."
2017 Consolidated Financial Highlights
|
DISTINCT
INFRASTRUCTURE GROUP INC
CONSOLIDATED
INCOME STATEMENT
All Figures In
CAD
|
|
|
|
|
Twelve Months
Ended
December 31,
2017
|
Twelve Months
Ended
December 31,
2016
(Restated)
|
|
|
|
Revenue
|
$70,283,002
|
$55,179,922
|
Expenses
|
$83,945,535
|
$58,327,707
|
Net
Income
|
($13,662,533)
|
($3,147,785)
|
EBITDA
|
$299,943
|
$3,482,425
|
Adjusted
EBITDA
|
$477,403
|
$3,711,435
|
|
|
|
2018 Q1 Consolidated Financial Highlights
|
DISTINCT
INFRASTRUCTURE GROUP INC
CONSOLIDATED
INCOME STATEMENT
All Figures In
CAD
|
|
|
|
|
Three Months
Ended
March 31,
2018
|
Three Months
Ended
March 31, 2017
(Restated)
|
|
|
|
|
|
|
Revenue
|
$21,322,114
|
$12,499,430
|
Expenses
|
$22,392,902
|
$15,138,579
|
Net
Income
|
($1,070,788)
|
($2,639,149)
|
EBITDA
|
$959,108
|
($1,980,723)
|
Adjusted
EBITDA
|
$1,255,323
|
($1,950,814)
|
|
|
|
The financial statements, notes to the financial statements and
Management's Discussion and Analysis for the three month period and
year ended December 31, 2017 and for
the three months ending March 31,
2018 are available on SEDAR at www.sedar.com as well as
DIG's investor relations website at www.diginc.ca.
Conference Call:
Distinct has scheduled a conference call for 11:00 a.m. (E.S.T.) on Monday, June 4, 2018.
Joe Lanni and Alex Agius, Co-CEOs, William Nurnberger, Interim CFO and VP Corporate
Development, and George Parselias,
VP Finance will host the conference call. Participants should dial
1-800-621-4410 at least 10 minutes prior to the conference time.
For those unable to attend the call, a replay will be available
after 1:00 p.m. at 1-800-558-5253 or
416-626-4100 until midnight on June 18,
2018. The reservation number is 21890903.
About Distinct Infrastructure Group:
Distinct Infrastructure Group Inc. is a turnkey solutions firm
providing design, engineering, construction and maintenance
services to telecommunication firms, utilities and government
bodies. Distinct's full service suite of offerings includes
underground construction, aerial construction, inventory
management, and technical services including fibre to the building
and home. The Company's head offices are located in Toronto, Ontario, with additional offices in
Edmonton, Alberta and Winnipeg, Manitoba.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Non-IFRS / GAAP Measures
Note: EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted
EPS are non-GAAP/IFRS figures. "EBITDA" represents net income plus
income tax, finance expense and depreciation. "Adjusted EBITDA"
represents EBITDA plus share-based compensation and one-time costs.
"Adjusted Net Income" represents net income plus one-time finance
expenses. "Adjusted EPS" represents Adjusted Net Income divided by
the average number of common shares outstanding for each period and
Adjusted Net Income divided by the weighted average number of
diluted common shares outstanding.
Forward Looking Statements
This news release contains "forward-looking statements"
within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and applicable Canadian securities
legislation. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as
"plans", "anticipated", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "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" or
"will be taken", "occur" or "be achieved". Inspiration is subject
to significant risks and uncertainties which may cause the actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward looking statements contained in this
release. Inspiration cannot assure investors that actual results
will be consistent with these forward looking statements and
Inspiration assumes no obligation to update or revise the forward
looking statements contained in this release to reflect actual
events or new circumstances.
SOURCE Distinct Infrastructure Group Inc.