IBEX Limited (“ibex”), a leading provider in global business
process outsourcing and end-to-end customer engagement technology
solutions, today announced financial results for its second fiscal
quarter ended December 31, 2023.
“We delivered against a number of our key
objectives in the second quarter, highlighted by the eight new
client wins in the quarter, totaling twelve in the first half of
the fiscal year versus seven in the prior year period,” commented
Bob Dechant, CEO of ibex. “That being said, softness in volumes
with several of our clients have put recent pressure on our top and
bottom line and our second quarter reflected that. To ensure that
we resume our historical growth leadership position, we have been
making strategic investments in our building blocks for our next
stage of growth over the last 12 months including expansion of our
sales organization and enhancing our AI capabilities. We are now
seeing momentum build in terms of size, speed and quality of our
pipeline and wins. Clients are now looking for BPO partners who can
not only deliver great contact center solutions, but also rapidly
deploy disruptive AI-based solutions for them. Our recent wins and
strength of our pipeline highlight our ability to win on both
fronts and positions us for growth as we move forward,” added
Dechant.
Second Quarter 2024 Key
Highlights
- Eight new client relationships won
across HealthTech, FinTech, Retail & E-Commerce and new
emerging Technology companies, totaling twelve for the year to date
compared to seven in the prior year period.
GAAP Financials:
- Second quarter revenue of $132.6
million declined 4.8% from the prior year quarter.
- Net income was $6.1 million
compared to $9.3 million in the prior year quarter. Net income
margin was 4.6% compared to 6.7% in the prior year quarter.
- Diluted earnings per share were
$0.33 compared to $0.49 in the prior year quarter.
Non-GAAP Financial Measures:
- Adjusted net income was $8.0
million compared to $12.2 million in the prior year quarter.
- Adjusted earnings per share were
$0.44 compared to $0.65 in the prior year quarter.
- Adjusted EBITDA was $14.3 million
compared to $19.4 million in the prior year quarter. Adjusted
EBITDA margin was 10.8% compared to 13.9% in the prior year
quarter.
Other Metrics:
- $2.3 million adverse impact
realized year over year to revenue and EBITDA associated with the
deferral of revenue for new logo and client ramps.
- Repurchased 488,803 shares at a
total cost of $8.4 million in the second quarter, and a total of
740,346 shares through January 31, 2024 at a total cost of $12.5
million fiscal year to date.
Second Quarter
Financial PerformanceRevenue
- Revenue was $132.6 million,
compared to $139.3 million in the prior year quarter, a decrease of
4.8%. Revenues were impacted by lower volumes in certain verticals
and the year over year shift of delivery from onshore to offshore
regions.
- $2.3 million adverse impact to
revenue compared to the prior year quarter associated with the
deferral of training revenue for new logo and client ramps.
- Growth in our strategic HealthTech
and Retail & E-Commerce verticals partly offset the
above-mentioned revenue declines in our FinTech and
Telecommunications verticals.
Net Income and Earnings Per Share
- Net income was $6.1 million
compared to $9.3 million in the prior year quarter. Diluted
earnings per share were $0.33 compared to $0.49 in the prior year
quarter. The decreases were primarily driven by the adverse impact
of the $2.3 million deferred training revenue, as well as strategic
investments made for the business in technology and sales &
marketing, resulting in lower income from operations.
- Net income margin was 4.6% compared
to 6.7% in the prior year quarter.
- Non-GAAP adjusted net income was
$8.0 million compared to $12.2 million in the prior year quarter.
Non-GAAP adjusted diluted earnings per share were $0.44 compared to
$0.65 in the prior year quarter (see Exhibit 1 for reconciliation).
The decrease per share was primarily attributable to the impact of
deferred training revenue and the noted strategic investments in
growth.
Adjusted EBITDA
- Adjusted EBITDA was $14.3 million
compared to $19.4 million in the prior year quarter (see Exhibit 2
for reconciliation), driven by the aforementioned factors related
to deferred training revenue and strategic investments.
- Adjusted EBITDA margin was 10.8%
compared to 13.9% in the prior year quarter, the decline for which
is attributable to the two key factors noted above (see Exhibit 2
for reconciliation).
Cash Flow and Balance Sheet
- Net cash provided by operating
activities decreased to $(1.6) million compared to $5.3 million in
the prior year quarter.
- Capital expenditures were $2.9
million compared to $7.9 million in the prior year quarter.
- Free cash flow decreased to $(4.5)
million, compared to $(2.7) million in the prior year quarter (see
Exhibit 3 for reconciliation).
- Cash and cash equivalents was $49.0
million as of December 31, 2023, compared to cash and cash
equivalents of $57.4 million as of June 30, 2023. The decline in
cash is attributable to the share repurchase program.
- Net cash position was $48.0 million
as of December 31, 2023, compared to $56.4 million as of June
30, 2023 (see Exhibit 4 for reconciliation).
“We believe in our overall business fundamentals
and the differentiated value proposition we bring to our clients.
However, softness in several of our client volumes has resulted in
lower revenues,” said Taylor Greenwald, CFO of ibex. “We expect
this volume trajectory to continue for the near term, and,
therefore, expect third quarter revenues to trend similarly as the
first two quarters on a year over year basis. As our new client
ramps reach scale in the fourth quarter, we anticipate an
inflection towards growth. We remain confident our strategy of
driving growth in our higher margin offshore regions, accelerated
by new client wins, and realizing cost savings through optimizing
our site footprint will drive improvement in adjusted EBITDA
margins for the second half of our fiscal year and in the years
ahead.”
“As a result we are updating our Full Year
guidance as follows: On a full year basis we expect revenues to be
between $505 and $510 million and adjusted EBITDA margin in the
range of 12-13%.”
Fiscal Year 2024 Guidance
- Fiscal year 2024 revenue between $505 to $510 million.
- Adjusted EBITDA margin of
approximately 12-13%.
- Capital expenditures of $15 to $20
million.
Conference Call and Webcast
InformationIBEX Limited will host a conference call and
live webcast to discuss its second quarter of fiscal year 2024
financial results at 4:30 p.m. Eastern Time today, February 8,
2024. We will also post to this section of our website the earning
slides, which will accompany our conference call and live webcast,
and encourage you to review the information that we make available
on our website.
Live and archived webcasts can be accessed
at: https://investors.ibex.co/.
Financial InformationThis
announcement does not contain sufficient information to constitute
an interim financial report as defined in Financial Accounting
Standards ASC 270, “Interim Reporting.” The financial information
in this press release has not been audited.
Non-GAAP Financial Measures
We present non-GAAP financial measures because
we believe that they and other similar measures are widely used by
certain investors, securities analysts and other interested parties
as supplemental measures of performance and liquidity. We also use
these measures internally to establish forecasts, budgets and
operational goals to manage and monitor our business, as well as
evaluate our underlying historical performance, as we believe that
these non-GAAP financial measures provide a more helpful depiction
of our performance of the business by encompassing only relevant
and manageable events, enabling us to evaluate and plan more
effectively for the future. The non-GAAP financial measures may not
be comparable to other similarly titled measures of other
companies, have limitations as analytical tools, and should not be
considered in isolation or as a substitute for analysis of our
operating results as reported in accordance with accounting
principles generally accepted in the United States (“U.S. GAAP”).
Non-GAAP financial measures and ratios are not measurements of our
performance, financial condition or liquidity under U.S. GAAP and
should not be considered as alternatives to operating profit or net
income / (loss) or as alternatives to cash flow from operating,
investing or financing activities for the period, or any other
performance measures, derived in accordance with U.S. GAAP.
ibex is not providing a quantitative
reconciliation of forward-looking non-GAAP adjusted EBITDA margin
to the most directly comparable GAAP measure because it is unable
to predict with reasonable certainty the ultimate outcome of
certain significant items without unreasonable effort. These items
include, but are not limited to, non-recurring expenses, foreign
currency gains or losses, and share-based compensation expense.
These items are uncertain, depend on various factors, and could
have a material impact on GAAP reported results for the guidance
period.
About ibexibex helps the
world’s preeminent brands more effectively engage their customers
with services ranging from customer support, technical support,
inbound/outbound sales, business intelligence and analytics,
digital demand generation, and CX surveys and feedback
analytics.
Forward Looking StatementsIn
addition to historical information, this release contains
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. In some cases, you can
identify forward-looking statements by terminology such as
“believe,” “may,” “will,” “estimate,” “continue,” “anticipate,”
“intend,” “should,” “plan,” “expect,” “predict,” “potential,” or
the negative of these terms or other similar expressions. These
statements include, but are not limited to, statements regarding
our future financial and operating performance, including our
outlook and guidance, and our strategies, priorities and business
plans. Our expectations and beliefs regarding these matters may not
materialize, and actual results in future periods are subject to
risks and uncertainties that could cause actual results to differ
materially from those projected. Factors that could impact our
actual results include: general economic uncertainty in global
markets and unfavorable economic conditions, including inflation,
rising interest rates, recession, foreign exchange fluctuations and
supply-chain issues; geopolitical conditions, including developing
or ongoing conflicts; our ability to attract new business and
retain key clients; our profitability based on our utilization,
pricing and managing costs; the potential for our clients or
potential clients to consolidate; our clients deciding to enter
into or further expand their insourcing activities and current
trends toward outsourcing services may reverse; our ability to
manage our international operations, particularly in the
Philippines, Jamaica, Pakistan and Nicaragua; our ability to
anticipate, develop and implement information technology solutions
that keep pace with evolving industry standards and changing client
demands, including the effective adoption of Artificial
Intelligence into our offerings; our ability to recruit, engage,
motivate, manage and retain our global workforce; our ability to
comply with applicable laws and regulations, including those
regarding privacy, data protection and information security,
employment and anti-corruption; the effect of cyberattacks or
cybersecurity vulnerabilities on our information technology
systems; our ability to realize the anticipated strategic and
financial benefits of our relationship with Amazon; and other
factors discussed in the “Risk Factors” described in our periodic
reports filed with the U.S. Securities and Exchange Commission
(“SEC”), including our annual reports on Form 10-K, quarterly
reports on Form 10-Q, and past filings on Form 20-F, and any other
risk factors we include in subsequent filings with the SEC. Because
of these uncertainties, you should not make any investment
decisions based on our estimates and forward-looking statements.
Except as required by law, we undertake no obligation to publicly
update any forward-looking statements for any reason after the date
of this press release whether as a result of new information,
future events or otherwise.
IR Contact: Michael
Darwal, EVP, Investor Relations, ibex,
michael.darwal@ibex.coMedia
Contact: Daniel Burris, Senior Director PR and
Communication, ibex, daniel.burris@ibex.co
IBEX LIMITED AND SUBSIDIARIESConsolidated
Balance Sheets(Unaudited)(in
thousands) |
|
|
December 31,2023 |
|
June 30,2023 |
Assets |
|
|
|
Current
assets |
|
|
|
Cash and cash equivalents |
$ |
49,016 |
|
|
$ |
57,429 |
|
Accounts receivable, net |
|
104,747 |
|
|
|
86,364 |
|
Prepaid expenses |
|
5,278 |
|
|
|
6,616 |
|
Due from related parties |
|
129 |
|
|
|
43 |
|
Tax advances and receivables |
|
8,367 |
|
|
|
5,965 |
|
Other current assets |
|
1,956 |
|
|
|
2,190 |
|
Total current
assets |
|
169,493 |
|
|
|
158,607 |
|
|
|
|
|
Non-current
assets |
|
|
|
Property and equipment, net |
|
35,950 |
|
|
|
41,151 |
|
Operating lease assets |
|
69,190 |
|
|
|
70,919 |
|
Goodwill |
|
11,832 |
|
|
|
11,832 |
|
Deferred tax asset, net |
|
4,289 |
|
|
|
4,585 |
|
Other non-current assets |
|
7,420 |
|
|
|
6,230 |
|
Total non-current
assets |
|
128,681 |
|
|
|
134,717 |
|
Total
assets |
$ |
298,174 |
|
|
$ |
293,324 |
|
|
|
|
|
Liabilities and
stockholders' equity |
|
|
|
Current
liabilities |
|
|
|
Accounts payable and accrued liabilities |
$ |
17,934 |
|
|
$ |
18,705 |
|
Accrued payroll and employee-related liabilities |
|
32,387 |
|
|
|
29,360 |
|
Current deferred revenue |
|
6,463 |
|
|
|
6,413 |
|
Current operating lease liabilities |
|
13,608 |
|
|
|
13,036 |
|
Current maturities of long-term debt |
|
441 |
|
|
|
413 |
|
Due to related parties |
|
54 |
|
|
|
2,314 |
|
Income taxes payable |
|
3,346 |
|
|
|
3,020 |
|
Total current
liabilities |
|
74,233 |
|
|
|
73,261 |
|
|
|
|
|
Non-current
liabilities |
|
|
|
Non-current deferred revenue |
|
1,634 |
|
|
|
1,383 |
|
Non-current operating lease liabilities |
|
62,406 |
|
|
|
64,854 |
|
Long-term debt |
|
560 |
|
|
|
600 |
|
Other non-current liabilities |
|
3,228 |
|
|
|
3,262 |
|
Total non-current
liabilities |
|
67,828 |
|
|
|
70,099 |
|
Total
liabilities |
|
142,061 |
|
|
|
143,360 |
|
|
|
|
|
Stockholders'
equity |
|
|
|
Common stock |
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
207,638 |
|
|
|
204,734 |
|
Treasury stock |
|
(14,116 |
) |
|
|
(3,682 |
) |
Accumulated other comprehensive loss |
|
(6,133 |
) |
|
|
(6,312 |
) |
Accumulated deficit |
|
(31,278 |
) |
|
|
(44,778 |
) |
Total stockholders'
equity |
|
156,113 |
|
|
|
149,964 |
|
Total liabilities and
stockholders' equity |
$ |
298,174 |
|
|
$ |
293,324 |
|
|
IBEX LIMITED AND SUBSIDIARIESConsolidated
Statements of Comprehensive
Income(Unaudited)(in thousands, except
per share data) |
|
|
Three Months EndedDecember 31, |
|
Six Months EndedDecember 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
$ |
132,634 |
|
|
$ |
139,325 |
|
|
$ |
257,243 |
|
|
$ |
267,130 |
|
|
|
|
|
|
|
|
|
Cost of services (exclusive of
depreciation and amortization presented separately below) |
|
95,884 |
|
|
|
99,790 |
|
|
|
184,080 |
|
|
|
195,943 |
|
Selling, general and
administrative |
|
24,857 |
|
|
|
23,502 |
|
|
|
47,897 |
|
|
|
42,807 |
|
Depreciation and
amortization |
|
4,946 |
|
|
|
4,582 |
|
|
|
9,988 |
|
|
|
9,259 |
|
Total operating expenses |
|
125,687 |
|
|
|
127,874 |
|
|
|
241,965 |
|
|
|
248,009 |
|
|
|
|
|
|
|
|
|
Income from
operations |
|
6,947 |
|
|
|
11,451 |
|
|
|
15,278 |
|
|
|
19,121 |
|
|
|
|
|
|
|
|
|
Interest income |
|
512 |
|
|
|
138 |
|
|
|
1,098 |
|
|
|
186 |
|
Interest expense |
|
(111 |
) |
|
|
(300 |
) |
|
|
(215 |
) |
|
|
(448 |
) |
Income before income
taxes |
|
7,348 |
|
|
|
11,289 |
|
|
|
16,161 |
|
|
|
18,859 |
|
|
|
|
|
|
|
|
|
Provision for income tax
expense |
|
(1,273 |
) |
|
|
(2,019 |
) |
|
|
(2,661 |
) |
|
|
(3,066 |
) |
Net
income |
$ |
6,075 |
|
|
$ |
9,270 |
|
|
$ |
13,500 |
|
|
$ |
15,793 |
|
|
|
|
|
|
|
|
|
Other comprehensive
income / (loss) |
|
|
|
|
|
|
|
Foreign currency translation adjustments |
$ |
679 |
|
|
$ |
554 |
|
|
$ |
(22 |
) |
|
$ |
(1,123 |
) |
Unrealized gain on cash flow hedging instruments, net of tax |
|
395 |
|
|
|
814 |
|
|
|
201 |
|
|
|
553 |
|
Total other comprehensive gain
/ (loss) |
|
1,074 |
|
|
|
1,368 |
|
|
|
179 |
|
|
|
(570 |
) |
Total comprehensive
income |
$ |
7,149 |
|
|
$ |
10,638 |
|
|
$ |
13,679 |
|
|
$ |
15,223 |
|
|
|
|
|
|
|
|
|
Net income per
share |
|
|
|
|
|
|
|
Basic |
$ |
0.34 |
|
|
$ |
0.51 |
|
|
$ |
0.75 |
|
|
$ |
0.87 |
|
Diluted |
$ |
0.33 |
|
|
$ |
0.49 |
|
|
$ |
0.72 |
|
|
$ |
0.84 |
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding |
|
|
|
|
|
|
|
Basic |
|
17,885 |
|
|
|
18,149 |
|
|
|
18,084 |
|
|
|
18,154 |
|
Diluted |
|
18,440 |
|
|
|
18,860 |
|
|
|
18,667 |
|
|
|
18,759 |
|
|
IBEX LIMITED AND SUBSIDIARIESConsolidated
Statements of Cash Flows(Unaudited)(in
thousands) |
|
|
Three Months EndedDecember
31, |
|
Six Months EndedDecember 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
Net income |
$ |
6,075 |
|
|
$ |
9,270 |
|
|
$ |
13,500 |
|
|
$ |
15,793 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
4,946 |
|
|
|
4,582 |
|
|
|
9,988 |
|
|
|
9,259 |
|
Noncash lease expense |
|
3,297 |
|
|
|
3,719 |
|
|
|
6,522 |
|
|
|
7,273 |
|
Warrant contra revenue |
|
307 |
|
|
|
310 |
|
|
|
594 |
|
|
|
596 |
|
Deferred income tax |
|
52 |
|
|
|
1,214 |
|
|
|
296 |
|
|
|
1,506 |
|
Share-based compensation expense |
|
1,427 |
|
|
|
1,533 |
|
|
|
2,275 |
|
|
|
2,655 |
|
Allowance of expected credit losses |
|
(5 |
) |
|
|
115 |
|
|
|
6 |
|
|
|
117 |
|
Change in assets and liabilities: |
|
|
|
|
|
|
|
Increase in accounts receivable |
|
(14,544 |
) |
|
|
(11,381 |
) |
|
|
(18,336 |
) |
|
|
(18,272 |
) |
(Increase) / decrease in prepaid expenses and other current
assets |
|
(936 |
) |
|
|
3,366 |
|
|
|
(2,192 |
) |
|
|
3,223 |
|
Increase / (decrease) in accounts payable and accrued
liabilities |
|
338 |
|
|
|
(2,151 |
) |
|
|
544 |
|
|
|
(1,282 |
) |
Increase / (decrease) in deferred revenue |
|
673 |
|
|
|
(1,640 |
) |
|
|
301 |
|
|
|
(2,905 |
) |
Decrease in operating lease liabilities |
|
(3,267 |
) |
|
|
(3,644 |
) |
|
|
(6,451 |
) |
|
|
(7,108 |
) |
Net cash / (outflow) inflow from operating
activities |
|
(1,637 |
) |
|
|
5,293 |
|
|
|
7,047 |
|
|
|
10,855 |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
Purchase of property and equipment |
|
(2,892 |
) |
|
|
(7,948 |
) |
|
|
(4,944 |
) |
|
|
(11,506 |
) |
Net cash outflow from investing activities |
|
(2,892 |
) |
|
|
(7,948 |
) |
|
|
(4,944 |
) |
|
|
(11,506 |
) |
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
Proceeds from line of credit |
|
59 |
|
|
|
29,959 |
|
|
|
96 |
|
|
|
39,314 |
|
Repayments of line of credit |
|
(59 |
) |
|
|
(32,300 |
) |
|
|
(148 |
) |
|
|
(46,300 |
) |
Repayment of debt |
|
— |
|
|
|
(838 |
) |
|
|
— |
|
|
|
(3,524 |
) |
Proceeds from the exercise of options |
|
6 |
|
|
|
1,188 |
|
|
|
11 |
|
|
|
1,209 |
|
Principal payments on finance leases |
|
(116 |
) |
|
|
(186 |
) |
|
|
(204 |
) |
|
|
(266 |
) |
Purchase of treasury shares |
|
(8,442 |
) |
|
|
— |
|
|
|
(10,274 |
) |
|
|
(276 |
) |
Net cash outflow from financing activities |
|
(8,552 |
) |
|
|
(2,177 |
) |
|
|
(10,519 |
) |
|
|
(9,843 |
) |
Effects of exchange rate difference on cash and cash
equivalents |
|
68 |
|
|
|
63 |
|
|
|
3 |
|
|
|
(255 |
) |
Net decrease in cash and cash equivalents |
|
(13,013 |
) |
|
|
(4,769 |
) |
|
|
(8,413 |
) |
|
|
(10,749 |
) |
Cash and cash equivalents, beginning |
|
62,029 |
|
|
|
42,851 |
|
|
|
57,429 |
|
|
|
48,831 |
|
Cash and cash
equivalents, ending |
$ |
49,016 |
|
|
$ |
38,082 |
|
|
$ |
49,016 |
|
|
$ |
38,082 |
|
IBEX LIMITED AND
SUBSIDIARIESReconciliation of GAAP Financial
Measures to Non-GAAP Financial Measures
EXHIBIT 1: Adjusted net income and
adjusted earnings per shareWe define adjusted net income
as net income before the effect of the following items:
non-recurring expenses (including legal and settlement costs),
warrant contra revenue, foreign currency gains or losses, and
share-based compensation expense, net of the tax impact of such
adjustments. We define adjusted earnings per share as adjusted
net income divided by weighted average diluted shares outstanding.
The following table provides a reconciliation of net income to
adjusted net income and diluted earnings per share to adjusted
earnings per share for the periods presented:
($000s, except per share
amounts) |
Three Months EndedDecember
31, |
|
Six Months EndedDecember 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net
income |
$ |
6,075 |
|
|
$ |
9,270 |
|
|
$ |
13,500 |
|
|
$ |
15,793 |
|
Net income
margin |
|
4.6 |
% |
|
|
6.7 |
% |
|
|
5.2 |
% |
|
|
5.9 |
% |
|
|
|
|
|
|
|
|
Non-recurring expenses |
|
— |
|
|
|
792 |
|
|
|
— |
|
|
|
792 |
|
Warrant contra revenue |
|
307 |
|
|
|
310 |
|
|
|
594 |
|
|
|
596 |
|
Foreign currency losses /
(gains) |
|
697 |
|
|
|
752 |
|
|
|
(100 |
) |
|
|
(97 |
) |
Share-based compensation
expense |
|
1,427 |
|
|
|
1,533 |
|
|
|
2,275 |
|
|
|
2,655 |
|
Total
adjustments |
$ |
2,431 |
|
|
$ |
3,387 |
|
|
$ |
2,769 |
|
|
$ |
3,946 |
|
Tax impact of
adjustments1 |
|
(482 |
) |
|
|
(425 |
) |
|
|
(671 |
) |
|
|
(710 |
) |
Adjusted net
income |
$ |
8,024 |
|
|
$ |
12,232 |
|
|
$ |
15,598 |
|
|
$ |
19,029 |
|
Adjusted net income
margin |
|
6.0 |
% |
|
|
8.8 |
% |
|
|
6.1 |
% |
|
|
7.1 |
% |
|
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
0.33 |
|
|
$ |
0.49 |
|
|
$ |
0.72 |
|
|
$ |
0.84 |
|
Per share impact of
adjustments to net income |
|
0.11 |
|
|
|
0.16 |
|
|
|
0.12 |
|
|
|
0.17 |
|
Adjusted earnings per
share |
$ |
0.44 |
|
|
$ |
0.65 |
|
|
$ |
0.84 |
|
|
$ |
1.01 |
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding |
|
18,440 |
|
|
|
18,860 |
|
|
|
18,667 |
|
|
|
18,759 |
|
________________________1The tax impact of each
adjustment is calculated using the effective tax rate in the
relevant jurisdictions.
EXHIBIT 2: EBITDA, adjusted
EBITDA, and adjusted EBITDA marginEBITDA is a non-GAAP
profitability measure that represents net income before the effect
of the following items: interest expense, income tax expense, and
depreciation and amortization. Adjusted EBITDA is a non-GAAP
profitability measure that represents EBITDA before the effect of
the following items: non-recurring expenses (including legal and
settlement costs), interest income, warrant contra revenue, foreign
currency gains or losses, and share-based compensation expense.
Adjusted EBITDA margin is a non-GAAP profitability measure that
represents adjusted EBITDA divided by revenue. The following table
provides a reconciliation of net income and net income margin to
adjusted EBITDA and adjusted EBITDA margin for the periods
presented:
|
Three Months EndedDecember 31, |
|
Six Months EndedDecember 31, |
($000s) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net
income |
$ |
6,075 |
|
|
$ |
9,270 |
|
|
$ |
13,500 |
|
|
$ |
15,793 |
|
Net income
margin |
|
4.6 |
% |
|
|
6.7 |
% |
|
|
5.2 |
% |
|
|
5.9 |
% |
|
|
|
|
|
|
|
|
Interest expense |
|
111 |
|
|
|
300 |
|
|
|
215 |
|
|
|
448 |
|
Income tax expense |
|
1,273 |
|
|
|
2,019 |
|
|
|
2,661 |
|
|
|
3,066 |
|
Depreciation and
amortization |
|
4,946 |
|
|
|
4,582 |
|
|
|
9,988 |
|
|
|
9,259 |
|
EBITDA |
$ |
12,405 |
|
|
$ |
16,171 |
|
|
$ |
26,364 |
|
|
$ |
28,566 |
|
Non-recurring expenses |
|
— |
|
|
|
792 |
|
|
|
— |
|
|
|
792 |
|
Interest income |
|
(512 |
) |
|
|
(138 |
) |
|
|
(1,098 |
) |
|
|
(186 |
) |
Warrant contra revenue |
|
307 |
|
|
|
310 |
|
|
|
594 |
|
|
|
596 |
|
Foreign currency losses /
(gains) |
|
697 |
|
|
|
752 |
|
|
|
(100 |
) |
|
|
(97 |
) |
Share-based compensation
expense |
|
1,427 |
|
|
|
1,533 |
|
|
|
2,275 |
|
|
|
2,655 |
|
Adjusted
EBITDA |
$ |
14,324 |
|
|
$ |
19,420 |
|
|
$ |
28,035 |
|
|
$ |
32,326 |
|
Adjusted EBITDA
margin |
|
10.8 |
% |
|
|
13.9 |
% |
|
|
10.9 |
% |
|
|
12.1 |
% |
EXHIBIT 3: Free cash flowWe define free cash
flow as net cash provided by operating activities less capital
expenditures.
|
Three Months EndedDecember 31, |
|
Six Months EndedDecember 31, |
($000s) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net cash / (used in)
provided by operating activities |
$ |
(1,637 |
) |
|
$ |
5,293 |
|
|
$ |
7,047 |
|
|
$ |
10,855 |
|
Less: capital
expenditures |
|
2,892 |
|
|
|
7,948 |
|
|
|
4,944 |
|
|
|
11,506 |
|
Free cash
flow |
$ |
(4,529 |
) |
|
$ |
(2,655 |
) |
|
$ |
2,103 |
|
|
$ |
(651 |
) |
EXHIBIT 4: Net cashWe define
net cash as total cash and cash equivalents less debt.
|
December 31, |
|
June 30, |
($000s) |
|
2023 |
|
|
|
2023 |
|
Cash and cash equivalents |
$ |
49,016 |
|
|
$ |
57,429 |
|
|
|
|
|
Debt |
|
|
|
Current |
$ |
441 |
|
|
$ |
413 |
|
Non-current |
|
560 |
|
|
|
600 |
|
Total debt |
$ |
1,001 |
|
|
$ |
1,013 |
|
Net cash |
$ |
48,015 |
|
|
$ |
56,416 |
|
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