IBEX Limited (“ibex”), a leading global provider of outsourced
CX solutions, today announced financial results for three and nine
months ended March 31, 2021.
“I am pleased with our strong third quarter
results, coming off an exceptional second quarter - delivering
solid revenue of $108.8 million, strong cash flow, and record
adjusted EBITDA margin of 15.3%, up 70 basis points from the prior
year period,” said Bob Dechant, Chief Executive Officer of ibex.
“These results reflect the value that our end-to-end customer
engagement solutions bring to clients, as our BPO 2.0 solution and
customer experience is a key competitive differentiator and driver
of accelerating growth.”
Dechant continued, “Our business strategy and
ability to be laser-focused on execution has allowed us to continue
to win customers, evidenced by our signing of 10 new customers,
most of which are marquee logos in the New Economy, digitally
transforming Blue Chip and strategic verticals. Looking ahead, we
have a strong pipeline of business that we believe will position us
for a strong fiscal year 2022.”“I would like to recognize our
global base of talented employees who were able to adjust to
ever-changing market conditions and thank them for their
extraordinary level of professionalism and commitment to our
business,” concluded Dechant.
Financial Highlights:
Revenue
- Revenue increased 7.6% to $108.8
million, compared to $101.1 million in the prior year quarter.
Net Income
- Net loss was $0.2 million, compared
to net income of $4.5 million in the prior year quarter.
- Non-GAAP adjusted net income
increased to $6.0 million, compared to $4.7 million in the prior
year quarter (see Exhibit 1 for reconciliation).
- Net margin was (0.2)%, compared to
4.4% in the prior year quarter.
- On a Non-GAAP basis, adjusted net
income margin increased to 5.5%, compared to 4.6% in the prior year
quarter (see Exhibit 1 for reconciliation).
Adjusted EBITDA
- Non-GAAP adjusted EBITDA, increased
to $16.7 million, compared to $14.8 million in the prior year
quarter (see Exhibit 2 for reconciliation).
- Non-GAAP adjusted EBITDA margin
increased to a record 15.3%, compared to 14.7% in the prior year
quarter.
Earnings Per Share
- IFRS basic and fully diluted loss
per share was $0.01 compared to IFRS basic and fully diluted
earnings per share of $0.00 in the prior year quarter.*
- Non-GAAP pro forma fully diluted
adjusted earnings per share increased to $0.32, compared to $0.25
in the prior year quarter (see Exhibit 1 for reconciliation).
* IFRS fully diluted earnings per share for the
three and nine months ended March 31, 2020 does not reflect the
recapitalization that occurred in connection with ibex’s August 7,
2020 initial public offering.
Balance Sheet
-
Strong cash position of $62.6 million compared to $21.9 million at
June 30, 2020.
-
Non-GAAP net debt decreased to $48.7 million, compared to $84.1
million as of June 30, 2020 (see Exhibit 4 below).
Business Highlights:
- Won 10 new customer logos, primarily New Economy companies in
the FinTech, healthcare and utilities verticals
- Legacy top three client concentration decreased to 34.1% from
43.6% in the prior year quarter
- Added 800 seats in Jamaica and 560 seats in the
Philippines
- New Economy revenue increased by 6.3% compared to the prior
year quarter, and when adjusted for one client that was adversely
impacted by the pandemic, New Economy revenue increased by 21.9%
compared to the prior year quarter
- Non-voice revenue increased by 10.2% compared to the prior year
quarter, and when adjusted for one client that was adversely
impacted by the pandemic, non-voice revenue increased by 31.8%
compared to the prior year quarter
Fiscal Year 2021 Business Outlook
We are reaffirming our fiscal year 2021 revenue
and adjusted EBITDA guidance provided last quarter. We expect
revenue of between $445 million and $448 million and adjusted
EBITDA of between $62.0 million and $63.5 million.
Conference Call and Webcast Information
IBEX Limited will host a conference call and
live webcast to discuss its third quarter of fiscal year 2021
financial results at 4:30 p.m. Eastern Time today, May 18, 2021. To
access the conference call, dial (833) 614-1408 for the U.S. or
Canada, or for international callers (914) 987-7129 and provide
conference ID 2595966. The webcast will be available live on the
Investors section of ibex's website
at: https://investors.ibex.co/.
An audio replay of the call will also be
available to investors beginning at approximately 7:30 p.m. Eastern
Time on May 18, 2021, until 7:30 p.m. Eastern Time on May 25, 2021,
by dialing (855) 859-2056 for the U.S. or Canada, or for
international callers, (404) 537-3406 and entering passcode
2595966. In addition, an archived webcast will be available on the
Investors section of ibex's website
at: https://investors.ibex.co/.
Financial Information
While the financial information included in this
press release has been determined in accordance with International
Financial Reporting Standards (“IFRS”) as issued by the
International Accounting Standards Board (“IASB”) applicable to
interim periods, this announcement does not contain sufficient
information to constitute an interim financial report as defined in
International Accounting Standards 34, “Interim Financial
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 depict the true performance of
the business by encompassing only relevant and controllable 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 and have limitations
as analytical tools and should not be considered in isolation or as
a substitute for analysis of our operating results as reported
under IFRS as issued by the IASB. Non-GAAP financial measures and
ratios are not measurements of our performance, financial condition
or liquidity under IFRS as issued by the IASB 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 IFRS as issued by the IASB or
any other generally accepted accounting principles.
We have made adjustments to the definitions of
certain non-GAAP measures in the third quarter of fiscal year 2021.
The definitions of adjusted net income and adjusted EBITDA have
been modified to exclude the effect of the amortization of warrant
asset, and gains / (losses) on disposal of fixed assets and lease
terminations, and include other income, as applicable. The
definition of free cash flow has been modified to exclude financed
capital expenditures and right-of-use lease payments. We may modify
these definitions in the future if new situations arise that the
Company believes warrant modification. We believe these updated
definitions better reflect the Company’s operating metrics as well
as industry standards.
ibex is not providing a quantitative
reconciliation of forward-looking non-GAAP adjusted EBITDA to the
most directly comparable IFRS 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, fair value
adjustments, and share-based compensation expense. These items are
uncertain, depend on various factors, and could have a material
impact on IFRS reported results for the guidance period.
About ibex
ibex 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 Statements
In 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:
developments relating to COVID-19; our ability to attract new
business and retain key clients; our ability to enter into
multi-year contracts with our clients at appropriate rates; the
potential for our clients or potential clients to consolidate; our
clients deciding to enter into or further expand their insourcing
activities; our ability to operate as an integrated company under
the ibex brand; our ability to manage portions of our business that
have long sales cycles and long implementation cycles that require
significant resources and working capital; our ability to manage
our international operations, particularly in Pakistan and the
Philippines and increasingly in Jamaica and Nicaragua; our ability
to comply with applicable laws and regulations, including those
regarding privacy, data protection and information security; our
ability to manage the inelasticity of our labor costs relative to
short-term movements in client demand; our ability to realize the
anticipated strategic and financial benefits of our relationship
with Amazon; our ability to recruit, engage, motivate, manage and
retain our global workforce; our ability to anticipate, develop and
implement information technology solutions that keep pace with
evolving industry standards and changing client demands; our
ability to maintain and enhance our reputation and brand; and other
factors discussed under the heading “Risk Factors” in our annual
report on Form 20-F filed with the U.S. Securities and Exchange
Commission on October 23, 2020 and any other risk factors we
include in subsequent reports on Form 6-K. 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.
Media Contact: Brad Jones, Senior Director, PR
& Communications, ibex, 720.643.8731, brad.jones@ibex.co
IR Contact: Brinlea Johnson, The Blueshirt
Group, 415.269.2645, brinlea@blueshirtgroup.com
IBEX
Limited |
Unaudited
Consolidated Statements of Financial Position |
|
|
|
|
US$ in thousands |
March 31, 2021 |
|
June 30, 2020 |
Assets |
|
|
|
Non-current assets |
|
|
|
Goodwill |
$ |
11,832 |
|
|
$ |
11,832 |
|
Other intangible assets |
|
3,323 |
|
|
|
2,781 |
|
Property and equipment |
|
107,338 |
|
|
|
84,588 |
|
Investment in joint venture |
|
357 |
|
|
|
331 |
|
Deferred tax asset |
|
3,017 |
|
|
|
2,223 |
|
Warrant asset |
|
1,932 |
|
|
|
2,611 |
|
Other assets |
|
6,205 |
|
|
|
4,834 |
|
Total non-current assets |
$ |
134,004 |
|
|
$ |
109,200 |
|
|
|
|
|
Current assets |
|
|
|
Trade and other receivables |
|
75,310 |
|
|
|
62,579 |
|
Due from related parties |
|
1,794 |
|
|
|
1,587 |
|
Cash and cash equivalents |
|
62,552 |
|
|
|
21,870 |
|
Total current assets |
$ |
139,656 |
|
|
$ |
86,036 |
|
Total assets |
$ |
273,660 |
|
|
$ |
195,236 |
|
|
|
|
|
Equity and liabilities |
|
|
|
Equity attributable to owners of the
parent |
|
|
|
Share capital |
$ |
2 |
|
|
$ |
12 |
|
Additional paid-in capital |
|
158,044 |
|
|
|
96,207 |
|
Other reserves |
|
32,683 |
|
|
|
29,456 |
|
Accumulated deficit |
|
(114,707 |
) |
|
|
(109,527 |
) |
Total equity |
$ |
76,022 |
|
|
$ |
16,148 |
|
|
|
|
|
Non-current liabilities |
|
|
|
Deferred revenue |
$ |
2,038 |
|
|
$ |
434 |
|
Lease liabilities |
|
73,030 |
|
|
|
62,044 |
|
Borrowings |
|
3,745 |
|
|
|
3,782 |
|
Deferred tax liability |
|
85 |
|
|
|
117 |
|
Other non-current liabilities |
|
18,834 |
|
|
|
7,058 |
|
Total non-current liabilities |
$ |
97,732 |
|
|
$ |
73,435 |
|
|
|
|
|
Current liabilities |
|
|
|
Trade and other payables |
$ |
51,649 |
|
|
$ |
53,213 |
|
Income tax payables |
|
4,210 |
|
|
|
3,087 |
|
Lease liabilities |
|
11,386 |
|
|
|
12,668 |
|
Borrowings |
|
23,059 |
|
|
|
27,476 |
|
Deferred revenue |
|
5,334 |
|
|
|
3,470 |
|
Due to related parties |
|
4,268 |
|
|
|
5,739 |
|
Total current liabilities |
$ |
99,906 |
|
|
$ |
105,653 |
|
Total liabilities |
$ |
197,638 |
|
|
$ |
179,088 |
|
Total equity and liabilities |
$ |
273,660 |
|
|
$ |
195,236 |
|
IBEX
Limited |
Unaudited
Consolidated Statements of Profit or Loss and Other Comprehensive
Income / (Loss) |
|
|
|
|
|
|
|
Three months ended March 31, |
|
Nine months ended March 31, |
US$ in thousands, except share and per share amounts |
2021 |
2020 |
|
2021 |
2020 |
Revenue |
$ |
108,832 |
|
$ |
101,124 |
|
|
$ |
334,784 |
|
$ |
304,255 |
|
|
|
|
|
|
|
Payroll and
related costs |
|
72,386 |
|
|
68,006 |
|
|
|
223,610 |
|
|
207,246 |
|
Share-based
payments |
|
1,298 |
|
|
(212 |
) |
|
|
4,004 |
|
|
(119 |
) |
Reseller
commission and lead expenses |
|
3,275 |
|
|
4,278 |
|
|
|
10,776 |
|
|
13,604 |
|
Depreciation
and amortization |
|
7,258 |
|
|
6,347 |
|
|
|
20,680 |
|
|
18,460 |
|
Fair value
adjustment |
|
4,433 |
|
|
(250 |
) |
|
|
10,178 |
|
|
632 |
|
Other
operating costs |
|
17,778 |
|
|
14,914 |
|
|
|
57,711 |
|
|
44,185 |
|
Income from operations |
$ |
2,404 |
|
$ |
8,041 |
|
|
$ |
7,825 |
|
$ |
20,247 |
|
|
|
|
|
|
|
Finance
expenses |
$ |
(2,310 |
) |
$ |
(2,376 |
) |
|
|
(6,923 |
) |
|
(7,190 |
) |
Income before taxation |
$ |
94 |
|
$ |
5,665 |
|
|
$ |
902 |
|
$ |
13,057 |
|
|
|
|
|
|
|
Income tax
expense |
$ |
(339 |
) |
$ |
(1,183 |
) |
|
|
(2,082 |
) |
|
(1,482 |
) |
Net
(loss) / income |
$ |
(245 |
) |
$ |
4,482 |
|
|
$ |
(1,180 |
) |
$ |
11,575 |
|
|
|
|
|
|
|
Other comprehensive income / (loss) |
|
|
|
|
|
|
|
|
|
|
|
Items that
will be subsequently reclassified to profit or loss |
|
|
|
|
|
Foreign
currency translation adjustment |
$ |
99 |
|
$ |
(5 |
) |
|
$ |
(14 |
) |
$ |
(37 |
) |
Cash flow
hedge - changes in fair value |
$ |
73 |
|
$ |
- |
|
|
|
158 |
|
|
- |
|
|
$ |
172 |
|
$ |
(5 |
) |
|
$ |
144 |
|
$ |
(37 |
) |
Total comprehensive (loss) / income |
$ |
(73 |
) |
$ |
4,477 |
|
|
$ |
(1,036 |
) |
$ |
11,538 |
|
|
|
|
|
|
|
Loss
per share attributable to the ordinary equity holders of the
parent |
|
|
|
|
|
Basic |
$ |
(0.01 |
) |
$ |
- |
|
|
$ |
(0.07 |
) |
$ |
- |
|
Diluted |
$ |
(0.01 |
) |
$ |
- |
|
|
$ |
(0.07 |
) |
$ |
- |
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
Basic |
|
18,083,182 |
|
|
1,138,140 |
|
|
|
17,475,469 |
|
|
1,138,140 |
|
Diluted |
|
18,083,182 |
|
|
12,822,570 |
|
|
|
17,475,469 |
|
|
12,822,570 |
|
|
|
|
|
|
|
IBEX
Limited |
Unaudited
Consolidated Statements of Cash Flows |
|
|
|
|
|
|
|
|
|
Three months ended March 31, |
|
Nine months ended March 31, |
US$ in thousands |
2021 |
|
2020 |
|
2021 |
|
2020 |
CASH
FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
Income before taxation |
$ |
94 |
|
|
$ |
5,665 |
|
|
$ |
902 |
|
|
$ |
13,057 |
|
Adjustments to reconcile income before taxation to net cash
provided by operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
7,258 |
|
|
|
6,347 |
|
|
|
20,680 |
|
|
|
18,460 |
|
Amortization of warrant asset |
|
229 |
|
|
|
16 |
|
|
|
677 |
|
|
|
551 |
|
Gain on disposal of fixed assets |
|
- |
|
|
|
(89 |
) |
|
|
- |
|
|
|
(73 |
) |
Gain on lease terminations |
|
(852 |
) |
|
|
- |
|
|
|
(1,044 |
) |
|
|
- |
|
Foreign currency translation loss / (gain) |
|
26 |
|
|
|
(110 |
) |
|
|
229 |
|
|
|
249 |
|
Fair value adjustment |
|
4,433 |
|
|
|
(250 |
) |
|
|
10,178 |
|
|
|
632 |
|
Phantom expense |
|
659 |
|
|
|
(224 |
) |
|
|
913 |
|
|
|
(196 |
) |
Share-based payments |
|
639 |
|
|
|
12 |
|
|
|
3,091 |
|
|
|
77 |
|
Provision for retirement benefit expense |
|
50 |
|
|
|
- |
|
|
|
194 |
|
|
|
134 |
|
Allowance of expected credit losses |
|
(116 |
) |
|
|
4 |
|
|
|
336 |
|
|
|
101 |
|
Share of profit from investment in joint venture |
|
(174 |
) |
|
|
(75 |
) |
|
|
(400 |
) |
|
|
(414 |
) |
Finance costs |
|
2,310 |
|
|
|
2,376 |
|
|
|
6,923 |
|
|
|
7,190 |
|
Decrease / (increase) in trade and other receivables |
|
626 |
|
|
|
4,957 |
|
|
|
(10,358 |
) |
|
|
8,154 |
|
Increase in prepayments and other assets |
|
(673 |
) |
|
|
(864 |
) |
|
|
(1,370 |
) |
|
|
(1,400 |
) |
Increase / (decrease) in trade and other payables and other
liabilities |
|
1,991 |
|
|
|
(1,103 |
) |
|
|
3,043 |
|
|
|
(4,921 |
) |
Cash generated from operations |
|
16,500 |
|
|
|
16,662 |
|
|
|
33,994 |
|
|
|
41,601 |
|
Interest paid |
|
(2,310 |
) |
|
|
(2,376 |
) |
|
|
(6,923 |
) |
|
|
(7,190 |
) |
Income taxes paid |
|
(297 |
) |
|
|
5 |
|
|
|
(2,952 |
) |
|
|
(758 |
) |
Net cash inflow from operating activities |
$ |
13,893 |
|
|
$ |
14,291 |
|
|
$ |
24,119 |
|
|
$ |
33,653 |
|
|
|
|
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
Purchase of property and equipment |
$ |
(5,892 |
) |
|
$ |
(1,780 |
) |
|
$ |
(14,597 |
) |
|
$ |
(4,019 |
) |
Purchase of other intangible assets |
|
(407 |
) |
|
|
(320 |
) |
|
|
(1,274 |
) |
|
|
(485 |
) |
Capital repayment from joint venture |
|
146 |
|
|
|
114 |
|
|
|
373 |
|
|
|
309 |
|
Net
cash outflow from investing activities |
$ |
(6,153 |
) |
|
$ |
(1,986 |
) |
|
$ |
(15,498 |
) |
|
$ |
(4,195 |
) |
|
|
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
Proceeds from line of credit |
$ |
24,684 |
|
|
$ |
29,314 |
|
|
$ |
91,259 |
|
|
$ |
107,525 |
|
Repayments of line of credit |
|
(38,104 |
) |
|
|
(36,467 |
) |
|
|
(93,400 |
) |
|
|
(117,485 |
) |
Proceeds from borrowings |
|
- |
|
|
|
- |
|
|
|
1,714 |
|
|
|
1,000 |
|
Repayment of borrowings |
|
(3,496 |
) |
|
|
(1,417 |
) |
|
|
(9,323 |
) |
|
|
(4,806 |
) |
Payment of related party loan |
|
- |
|
|
|
- |
|
|
|
(1,614 |
) |
|
|
- |
|
Net proceeds from initial public offering |
|
- |
|
|
|
- |
|
|
|
63,107 |
|
|
|
- |
|
Exercise of options |
|
28 |
|
|
|
- |
|
|
|
28 |
|
|
|
- |
|
Payment of listing related cost |
|
- |
|
|
|
- |
|
|
|
(1,052 |
) |
|
|
- |
|
Principal payments on lease obligations |
|
(3,014 |
) |
|
|
(2,790 |
) |
|
|
(14,644 |
) |
|
|
(8,935 |
) |
Dividends paid |
|
- |
|
|
|
- |
|
|
|
(4,000 |
) |
|
|
(121 |
) |
Net
cash (outflow) / inflow from financing activities |
$ |
(19,902 |
) |
|
$ |
(11,360 |
) |
|
$ |
32,075 |
|
|
$ |
(22,822 |
) |
Effects of exchange rate difference on cash and cash
equivalents |
|
99 |
|
|
|
(5 |
) |
|
|
(14 |
) |
|
|
(38 |
) |
Net (decrease) / increase in cash and cash equivalents |
$ |
(12,063 |
) |
|
$ |
940 |
|
|
$ |
40,682 |
|
|
$ |
6,598 |
|
Cash and cash equivalents at beginning of the period |
$ |
74,615 |
|
|
$ |
14,531 |
|
|
$ |
21,870 |
|
|
$ |
8,873 |
|
Cash
and cash equivalents at end of the period |
$ |
62,552 |
|
|
$ |
15,471 |
|
|
$ |
62,552 |
|
|
$ |
15,471 |
|
IBEX
Limited Reconciliation of IFRS Financial
Measures to Non-GAAP Financial Measures
EXHIBIT 1: Adjusted net income and pro
forma adjusted earnings per share – dilutedWe define
“Adjusted net income” as net (loss) / income before the effect of
the following items: non-recurring expenses (including litigation
and settlement expenses, costs related to COVID-19, and expenses
related to our initial public offering), amortization of warrant
asset, gain or loss on disposal of fixed assets or lease
terminations, fair value adjustment related to the Amazon warrant,
share-based payments, foreign exchange gains or losses, and
impairment losses, as applicable, net of the tax effect of such
adjustments. The following table provides a reconciliation of
Adjusted net income to our net (loss) / income for the periods
presented:
|
Three months
ended March 31, |
|
Nine months
ended March 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
US$ in thousands, except share and per share amounts,
unaudited |
Amount |
Per Share |
|
Amount |
Per Share |
|
Amount |
Per Share |
|
Amount |
Per Share |
|
Net (loss) / income |
$ |
(245 |
) |
$ |
(0.01 |
) |
|
$ |
4,482 |
|
$ |
0.35 |
|
(d) |
$ |
(1,180 |
) |
$ |
(0.07 |
) |
|
$ |
11,575 |
|
$ |
0.90 |
|
(d) |
Non-recurring expenses |
|
1,848 |
|
|
0.10 |
|
|
|
801 |
|
|
0.06 |
|
|
|
7,839 |
|
|
0.45 |
|
|
|
1,397 |
|
|
0.11 |
|
|
Amortization
of warrant asset |
|
229 |
|
|
0.01 |
|
|
|
16 |
|
|
0.00 |
|
|
|
677 |
|
|
0.04 |
|
|
|
551 |
|
|
0.04 |
|
|
Gain on
disposal of fixed assets |
|
- |
|
|
- |
|
|
|
(89 |
) |
|
(0.01 |
) |
|
|
- |
|
|
- |
|
|
|
(73 |
) |
|
(0.01 |
) |
|
Gain on
lease terminations |
|
(852 |
) |
|
(0.05 |
) |
|
|
- |
|
|
- |
|
|
|
(1,044 |
) |
|
(0.06 |
) |
|
|
- |
|
|
- |
|
|
Fair value
adjustment |
|
4,433 |
|
|
0.25 |
|
|
|
(250 |
) |
|
(0.02 |
) |
|
|
10,178 |
|
|
0.58 |
|
|
|
632 |
|
|
0.05 |
|
|
Share-based
payments |
|
1,298 |
|
|
0.07 |
|
|
|
(212 |
) |
|
(0.02 |
) |
|
|
4,004 |
|
|
0.23 |
|
|
|
(119 |
) |
|
(0.01 |
) |
|
Foreign
exchange losses |
|
44 |
|
|
0.00 |
|
|
|
164 |
|
|
0.01 |
|
|
|
247 |
|
|
0.01 |
|
|
|
523 |
|
|
0.04 |
|
|
Total adjustments |
$ |
7,000 |
|
$ |
0.39 |
|
|
$ |
430 |
|
$ |
0.03 |
|
|
$ |
21,901 |
|
$ |
1.25 |
|
|
$ |
2,911 |
|
$ |
0.23 |
|
|
Tax impact
of adjustments(a) |
|
(722 |
) |
|
(0.04 |
) |
|
|
(243 |
) |
|
(0.02 |
) |
|
|
(2,901 |
) |
|
(0.17 |
) |
|
|
(289 |
) |
|
(0.02 |
) |
|
Adjusted net income and adjusted earnings per
share |
$ |
6,033 |
|
$ |
0.33 |
|
|
$ |
4,669 |
|
$ |
0.36 |
|
|
$ |
17,820 |
|
$ |
1.02 |
|
|
$ |
14,197 |
|
$ |
1.11 |
|
|
Adjusted net income margin |
|
5.5 |
% |
|
|
|
4.6 |
% |
|
|
|
5.3 |
% |
|
|
|
4.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - diluted |
|
18,083,182 |
|
$ |
0.33 |
|
|
|
12,822,570 |
|
$ |
0.36 |
|
|
|
17,475,469 |
|
$ |
1.02 |
|
|
|
12,822,570 |
|
$ |
1.11 |
|
|
Dilutive
impact of shares issued on August 7, 2020(b) |
|
- |
|
$ |
- |
|
|
|
3,571,429 |
|
$ |
(0.07 |
) |
|
|
- |
|
$ |
- |
|
|
|
3,076,121 |
|
$ |
(0.19 |
) |
|
Dilutive
impact of preferred share conversion on August 7, 2020(b) |
|
- |
|
$ |
- |
|
|
|
1,785,565 |
|
$ |
(0.03 |
) |
|
|
- |
|
$ |
- |
|
|
|
1,785,565 |
|
$ |
(0.11 |
) |
|
Dilutive
impact of share-based compensation and the Amazon warrant(b) |
|
737,826 |
|
$ |
(0.01 |
) |
|
|
641,444 |
|
$ |
(0.01 |
) |
|
|
756,977 |
|
$ |
(0.04 |
) |
|
|
548,190 |
|
$ |
(0.03 |
) |
|
Pro
forma adjusted weighted average shares outstanding - diluted and
pro forma adjusted earnings per share -
diluted(c) |
|
18,821,008 |
|
$ |
0.32 |
|
|
|
18,821,008 |
|
$ |
0.25 |
|
|
|
18,232,446 |
|
$ |
0.98 |
|
|
|
18,232,446 |
|
$ |
0.78 |
|
|
(a) The tax impact of each adjustment is
calculated using the effective tax rate in the relevant
jurisdiction.(b) Represents the dilutive impact of (i) an
incremental 3,571,429 and 3,076,121 weighted average shares
outstanding for the three and nine months ended March 31, 2021,
respectively, as a result of our initial public offering completed
on August 7, 2020, (ii) an incremental 1,785,565 weighted average
shares outstanding due to the conversion of preferred shares to
common shares in connection with our initial public offering on
August 7, 2020 and (iii) incremental weighted average shares
outstanding resulting from vesting of awards under share-based
compensation plans and vesting of the Amazon warrant, using the
treasury stock method (as applicable) during the periods
presented.(c) We provide “pro forma adjusted earnings per share –
diluted” to illustrate the impact on the calculation of adjusted
earnings per share of taking into account the dilutive impact of
the shares issued in our initial public offering on August 7, 2020,
the dilutive impact of the preferred share conversion on August 7,
2020, and the dilutive impact related to vesting of awards under
share-based compensation plans and the Amazon warrant on the
calculation of weighted average shares outstanding – diluted,
resulting in pro forma adjusted weighted average shares outstanding
– diluted. We have used 18,821,008 and 18,232,446 shares, the pro
forma adjusted weighted average shares outstanding – diluted for
the three and nine months ended March 31, 2021, respectively, to
calculate pro forma adjusted earnings per share – diluted for the
three and nine months ended March 31, 2020. We believe that pro
forma adjusted earnings per share – diluted is useful information
for investors because it enhances comparability between the current
period and prior periods. This non-GAAP measure will be
recalculated each reporting period based on the pro forma adjusted
weighted average shares outstanding – diluted for the latest
reporting periods. Therefore, pro forma adjusted earnings per share
– diluted in future periods may differ from pro forma adjusted
earnings per share – diluted presented in prior periods. Pro forma
adjusted earnings per share – diluted may not be comparable to
other similarly titled measures of other companies, has limitations
as an analytical tool and should not be considered in isolation or
as a substitute for analysis of our operating results as reported
under IFRS as issued by the IASB.(d) See Note 20 to our audited
consolidated financial statements included in our annual report on
Form 20-F filed with the U.S. Securities and Exchange Commission on
October 23, 2020 for additional information regarding the
calculation of basic and diluted earnings / (loss) per share
attributable to equity holders of the parent and weighted average
shares outstanding – basic and diluted. For the periods noted, the
amount represents net income divided by the weighted average shares
outstanding – diluted for the period presented.
EXHIBIT 2: EBITDA and Adjusted
EBITDAWe define “EBITDA” as net (loss) / income before the
effect of the following items: finance expenses, income tax expense
/ (benefit), and depreciation and amortization, as applicable. We
define “Adjusted EBITDA” as EBITDA before the effect of the
following items: non-recurring expenses (including litigation and
settlement expenses, costs related to COVID-19, and expenses
related to our initial public offering), amortization of warrant
asset, gain or loss on disposal of fixed assets or lease
terminations, fair value adjustment related to the Amazon warrant,
share-based payments, foreign exchange gains or losses, and
impairment losses, as applicable.
|
|
|
|
|
Three months ended March 31, |
|
Nine months ended March 31, |
US$ in thousands |
2021 |
2020 |
|
2021 |
2020 |
Net (loss) / income |
$ |
(245 |
) |
$ |
4,482 |
|
|
$ |
(1,180 |
) |
$ |
11,575 |
|
Finance
expense |
|
2,310 |
|
|
2,376 |
|
|
|
6,923 |
|
|
7,190 |
|
Income tax
expense |
|
339 |
|
|
1,183 |
|
|
|
2,082 |
|
|
1,482 |
|
Depreciation
and amortization |
|
7,258 |
|
|
6,347 |
|
|
|
20,680 |
|
|
18,460 |
|
EBITDA |
$ |
9,662 |
|
$ |
14,388 |
|
|
$ |
28,505 |
|
$ |
38,707 |
|
Non-recurring expenses |
|
1,848 |
|
|
801 |
|
|
|
7,839 |
|
|
1,397 |
|
Amortization
of warrant asset |
|
229 |
|
|
16 |
|
|
|
677 |
|
|
551 |
|
Gain on
disposal of fixed assets |
|
- |
|
|
(89 |
) |
|
|
- |
|
|
(73 |
) |
Gain on
lease terminations |
|
(852 |
) |
|
- |
|
|
|
(1,044 |
) |
|
- |
|
Fair value
adjustment |
|
4,433 |
|
|
(250 |
) |
|
|
10,178 |
|
|
632 |
|
Share-based
payments |
|
1,298 |
|
|
(212 |
) |
|
|
4,004 |
|
|
(119 |
) |
Foreign
exchange losses |
|
44 |
|
|
164 |
|
|
|
247 |
|
|
523 |
|
Adjusted EBITDA |
$ |
16,662 |
|
$ |
14,818 |
|
|
$ |
50,406 |
|
$ |
41,618 |
|
Adjusted EBITDA margin |
|
15.3 |
% |
|
14.7 |
% |
|
|
15.1 |
% |
|
13.7 |
% |
EXHIBIT 3: Free cash flowWe
define “free cash flow” as net cash provided by operating
activities less capital expenditures – cash.
|
Three months ended March 31, |
|
Nine months ended March 31, |
US$ in thousands |
2021 |
2020 |
|
2021 |
2020 |
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
13,893 |
|
$ |
14,291 |
|
|
$ |
24,119 |
|
$ |
33,653 |
|
|
|
|
|
|
Less: |
|
|
|
|
|
Capital
expenditures - cash |
|
6,299 |
|
|
2,100 |
|
|
|
15,871 |
|
|
4,504 |
Free
cash flow(1) |
$ |
7,594 |
|
$ |
12,191 |
|
|
$ |
8,248 |
|
$ |
29,149 |
(1) Excluded from free cash
flow are the principal portion of right-of-use lease payments of
$2,892 and $1,892 for the three months ended March 31, 2021 and
2020, respectively, and $8,063 and $6,619 for the nine months ended
March 31, 2021 and 2020, respectively. We believe it is useful to
consider these payments when analyzing free cash flow as these
amounts directly relate to revenue generating assets used in
operations.
EXHIBIT 4: Net debtWe define “net debt” as
total borrowings less cash and cash equivalents.
US$ in thousands |
March 31, 2021 |
|
June 30, 2020 |
Borrowings |
|
|
|
Non-current |
$ |
3,745 |
|
|
$ |
3,782 |
|
Current |
|
23,059 |
|
|
|
27,476 |
|
|
$ |
26,804 |
|
|
$ |
31,258 |
|
Leases |
|
|
|
Non-current |
|
73,030 |
|
|
|
62,044 |
|
Current |
|
11,386 |
|
|
|
12,668 |
|
|
$ |
84,416 |
|
|
$ |
74,712 |
|
Total
Debt |
$ |
111,220 |
|
|
$ |
105,970 |
|
Cash |
|
62,552 |
|
|
|
21,870 |
|
Net
debt |
$ |
48,668 |
|
|
$ |
84,100 |
|
An infographic accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/ee3a1593-660b-48f2-a678-740bcd210914
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