IBEX Limited (“ibex”), a leading global provider in business
process outsourcing (BPO) and end-to-end customer engagement
technology solutions, today announced financial results for the
fourth quarter and fiscal year ended June 30, 2021.
“I am so proud of what ibex has accomplished in
fiscal year 2021” said Bob Dechant, CEO of ibex. “We
completed a record year with revenues of $443.7 million,
approximately 10 percent organic growth, and adjusted EBITDA of
$66.2 million, a 20 percent increase, despite an incredibly
challenging COVID environment.”
Dechant continued, “In fiscal year 2016, we
pivoted our business away from a commoditized voice-only business
and shifted focus to the digital-first marketplace where we can
fully leverage our differentiated capabilities. As a result of this
shift, these new customers now represent $230 million, or 52%, of
our current revenues, and have grown at a 5-year CAGR of 84% with
an equally impressive 40% increase this past year. I am proud to
announce that we have also retained 100% of our top 20 clients for
the fiscal year, extending this achievement to four consecutive
years which is further evidence of continued client
confidence.”
“Additionally, to support our growth we added
over 3,300 new seats – a 34% increase – to our high-margin
nearshore and offshore footprint. With the business we won
from new and existing clients in fiscal year 2021, we also
established a revenue backlog of another 3,200 seats that are
expected to launch in the first half of fiscal year 2022 to service
this demand, which will bring our total footprint to over 21,000.
More importantly, we are delivering these record margins while our
regions are currently at 50% usable capacity due to social
distancing restrictions in place; we estimate that this existing
footprint would afford us additional revenue potential of $200
million annually in a pre-Pandemic operating environment.”
“Our balance sheet transformation is almost
complete with a growing cash balance. With a high-performance,
customer-first business model, the wind at our back, and high ROI
opportunities in front of us, we’re positioned well for flexible
and highly attractive capital allocation and superior compounded
shareholder returns.”
Fiscal Year 2021 Financial Highlights
Revenue
- Revenue increased 9.5% to $443.7
million, compared to $405.1 million in the prior year.
Net Income / (loss)
- Net income was $2.8 million, compared to net income of $7.8
million in the prior year.
- Net income margin decreased to 0.6%, compared to 1.9% in the
prior year.
- Non-GAAP adjusted net income increased to $23.6 million,
compared to $17.0 million in the prior year (see Exhibit 1 for
reconciliation).
- Non-GAAP adjusted net income margin increased to 5.3%, compared
to 4.2% in the prior year (see Exhibit 1 for reconciliation).
Adjusted EBITDA
- Non-GAAP adjusted EBITDA increased to $66.2 million, compared
to $55.2 million in the prior year (see Exhibit 2 for
reconciliation).
- Non-GAAP adjusted EBITDA margin increased to 14.9%, compared to
13.6% in the prior year (see Exhibit 2 for reconciliation).
Earnings Per Share
- IFRS basic and fully diluted earnings per share was $0.16 and
$0.15, compared to IFRS basic and fully diluted earnings per share
of $0.00 in the prior year.*
- Non-GAAP pro forma fully diluted adjusted earnings per share
increased to $1.28, compared to $0.93 in the prior year (see
Exhibit 1 for reconciliation).
Fourth Quarter 2021 Financial Highlights
Revenue
- Revenue increased 7.9% to $108.9
million, compared to $100.9 million in the prior year quarter.
Net Income / (loss)
- Net income was $4.0 million,
compared to net loss of $3.8 million in the prior year
quarter.
- Net income / (loss) margin
increased to 3.7%, compared to (3.8)% in the prior year
quarter.
- Non-GAAP adjusted net income
increased to $5.8 million, compared to $3.1 million in the prior
year quarter (see Exhibit 1 for reconciliation).
- Non-GAAP adjusted net income margin
increased to 5.3%, compared to 3.0% in the prior year quarter (see
Exhibit 1 for reconciliation).
Adjusted EBITDA
- Non-GAAP adjusted EBITDA, increased
to $15.9 million, compared to $13.9 million in the prior year
quarter (see Exhibit 2 for reconciliation).
- Non-GAAP adjusted EBITDA margin
increased to 14.6%, compared to 13.8% in the prior year quarter
(see Exhibit 2 for reconciliation).
Earnings Per Share
- IFRS basic and fully diluted earnings per share was $0.22 and
$0.21, 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 $0.31, compared to $0.16 in the prior year quarter
(see Exhibit 1 for reconciliation).
* IFRS fully diluted earnings per share for the
three and twelve months ended June 30, 2020 does not reflect the
recapitalization that occurred in connection with ibex’s August 7,
2020 initial public offering.
Balance Sheet
-
As of June 30, 2021, the Company had cash and cash equivalents of
$57.8 million, total borrowings of $28.5 million, and lease
liabilities of $84.0 million, compared to cash and cash equivalents
of $21.9 million, total borrowings of $31.3 million, and lease
liabilities of $74.7 million as of June 30, 2020.
Fiscal Year 2021 Business
Highlights
- Won 23 new clients, primarily
Digital First companies in the Retail and E-Commerce, FinTech, and
HealthTech verticals.
- Legacy top three client
concentration decreased to 34.2% of revenue from 43.7% in the prior
year, and exited the year at 28.2% in the fourth quarter.
- Added over 3,300 seats in high
margin nearshore and offshore locations.
- Invested in our employees through
$12.8 million of cost incurred, of which $8.3 million is considered
non-recurring, as part of our employee COVID health and safety
program, which includes private employee transportation, vaccine
procurement, and COVID testing, as well as deep site cleaning. The
investment in the program resulted in:
- 100% of IBEX’s sites globally have
remained operational throughout the pandemic with 100% of health
audits passed.
- High vaccination rate across our
regions including 95% and 70% employee vaccination rate in Pakistan
and the Philippines, respectively.
Fiscal Year 2022 Business Outlook
- Fiscal Year 2022 organic revenue growth of 7% to 9%. Revenue
growth will accelerate beginning in the second quarter as we
onboard new capacity in Q1.
- Adjusted EBITDA of $69.0 million to $71.0 million.
- Capex of $30.0 million to $35.0 million. We expect to return to
significantly lower, normalized capex spend when social distancing
restrictions subside.
Conference Call and Webcast
Information IBEX Limited will host a conference call
and live webcast to discuss its fourth quarter and full fiscal year
2021 financial results at 4:30 p.m. Eastern Time today, September
14, 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 5259104. 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 September 14, 2021, until 7:30 p.m. Eastern Time on
September 21, 2021, by dialing (855) 859-2056 for the U.S. or
Canada, or for international callers, (404) 537-3406 and entering
passcode 5259104. 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 prepared in accordance with
International Financial Reporting Standards (“IFRS”) as issued by
the International Accounting Standards Board (“IASB”) applicable to
financial statements for interim periods and full fiscal years, as
applicable, this announcement does not contain sufficient
information to constitute an interim financial report as defined in
International Accounting Standards 34, “Interim Financial
Reporting” or a financial statement as defined by International
Accounting Standards 1 “Presentation of Financial Statements.” The
financial information in this press release has not been audited.
Our independent registered public accounting firm, BDO LLP, has not
audited, reviewed, compiled, or performed any procedures with
respect to our results for the fourth quarters presented
herein.
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.
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: Daniel Bellehsen,
Executive Vice President, Investor Relations & Corporate
Development, ibex, Dan.Bellehsen@ibex.co
IBEX LimitedUnaudited
Consolidated Statements of Financial Position
|
|
|
|
|
|
|
|
|
June 30, |
|
June 30, |
US$ in
thousands |
|
2021 |
|
|
2020 |
|
Assets |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
57,842 |
|
|
$ |
21,870 |
|
Trade and other receivables |
|
|
81,104 |
|
|
|
62,579 |
|
Due from related parties |
|
|
1,755 |
|
|
|
1,587 |
|
Warrant asset |
|
|
673 |
|
|
|
- |
|
Total current
assets |
|
$ |
141,374 |
|
|
$ |
86,036 |
|
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
Property and equipment |
|
$ |
106,703 |
|
|
$ |
84,588 |
|
Goodwill |
|
|
11,832 |
|
|
|
11,832 |
|
Other intangible assets |
|
|
3,209 |
|
|
|
2,781 |
|
Warrant asset |
|
|
1,420 |
|
|
|
2,611 |
|
Investment in joint venture |
|
|
258 |
|
|
|
331 |
|
Deferred tax asset |
|
|
4,252 |
|
|
|
2,223 |
|
Other assets |
|
|
5,239 |
|
|
|
4,834 |
|
Total non-current
assets |
|
$ |
132,913 |
|
|
$ |
109,200 |
|
Total
assets |
|
$ |
274,287 |
|
|
$ |
195,236 |
|
|
|
|
|
|
|
|
Liabilities and
equity |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Trade and other payables |
|
$ |
54,863 |
|
|
$ |
53,213 |
|
Deferred revenue |
|
|
4,077 |
|
|
|
3,470 |
|
Lease liabilities |
|
|
12,121 |
|
|
|
12,668 |
|
Borrowings |
|
|
26,716 |
|
|
|
27,476 |
|
Due to related parties |
|
|
4,275 |
|
|
|
5,739 |
|
Income tax payables |
|
|
3,663 |
|
|
|
3,087 |
|
Total current
liabilities |
|
$ |
105,715 |
|
|
$ |
105,653 |
|
|
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
|
Deferred revenue |
|
$ |
3,010 |
|
|
$ |
434 |
|
Lease liabilities |
|
|
71,878 |
|
|
|
62,044 |
|
Borrowings |
|
|
1,801 |
|
|
|
3,782 |
|
Deferred tax liability |
|
|
86 |
|
|
|
117 |
|
Other non-current liabilities |
|
|
11,138 |
|
|
|
7,058 |
|
Total non-current
liabilities |
|
$ |
87,913 |
|
|
$ |
73,435 |
|
Total
liabilities |
|
$ |
193,628 |
|
|
$ |
179,088 |
|
|
|
|
|
|
|
|
Equity attributable to owners of the parent |
|
|
|
|
|
|
Share capital |
|
$ |
2 |
|
|
$ |
12 |
|
Additional paid-in capital |
|
|
158,157 |
|
|
|
96,207 |
|
Other reserves |
|
|
33,180 |
|
|
|
29,456 |
|
Accumulated deficit |
|
|
(110,680 |
) |
|
|
(109,527 |
) |
Total
equity |
|
$ |
80,659 |
|
|
$ |
16,148 |
|
Total equity and
liabilities |
|
$ |
274,287 |
|
|
$ |
195,236 |
|
|
|
|
|
|
|
|
IBEX LimitedUnaudited
Consolidated Statements of Profit or Loss and
Other Comprehensive Income / (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Year ended June 30, |
US$ in
thousands, except share and per share amounts |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenue |
|
$ |
108,878 |
|
|
$ |
100,880 |
|
|
$ |
443,662 |
|
|
$ |
405,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related costs |
|
$ |
73,189 |
|
|
$ |
69,009 |
|
|
|
296,799 |
|
|
|
276,255 |
|
Share-based
payments |
|
$ |
517 |
|
|
$ |
478 |
|
|
|
4,521 |
|
|
|
359 |
|
Reseller commission and lead
expenses |
|
$ |
2,973 |
|
|
$ |
3,724 |
|
|
|
13,749 |
|
|
|
17,328 |
|
Depreciation and
amortization |
|
$ |
7,517 |
|
|
$ |
6,012 |
|
|
|
28,197 |
|
|
|
24,472 |
|
Fair value measurement of
share warrants |
|
$ |
(446 |
) |
|
$ |
2,506 |
|
|
|
9,732 |
|
|
|
3,138 |
|
Other operating costs |
|
$ |
19,154 |
|
|
$ |
19,885 |
|
|
|
76,865 |
|
|
|
64,070 |
|
Income / (loss) from
operations |
|
$ |
5,974 |
|
|
$ |
(734 |
) |
|
$ |
13,799 |
|
|
$ |
19,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance expenses |
|
$ |
(2,111 |
) |
|
$ |
(2,238 |
) |
|
|
(9,034 |
) |
|
|
(9,428 |
) |
Income / (loss) before
taxation |
|
$ |
3,863 |
|
|
$ |
(2,972 |
) |
|
$ |
4,765 |
|
|
$ |
10,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit /
(expense) |
|
$ |
164 |
|
|
$ |
(833 |
) |
|
|
(1,918 |
) |
|
|
(2,315 |
) |
Net income /
(loss) |
|
$ |
4,027 |
|
|
$ |
(3,805 |
) |
|
$ |
2,847 |
|
|
$ |
7,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income / (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
Item that will not be
subsequently reclassified to profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial loss on retirement
benefits |
|
$ |
(26 |
) |
|
$ |
(184 |
) |
|
$ |
(26 |
) |
|
$ |
(184 |
) |
Items that will be
subsequently reclassified to profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustment |
|
$ |
(108 |
) |
|
$ |
(211 |
) |
|
$ |
(122 |
) |
|
$ |
(248 |
) |
Cash flow hedge - changes in
fair value |
|
$ |
44 |
|
|
$ |
(518 |
) |
|
|
202 |
|
|
|
(518 |
) |
|
|
$ |
(90 |
) |
|
$ |
(913 |
) |
|
$ |
54 |
|
|
$ |
(950 |
) |
Total comprehensive
income / (loss) |
|
$ |
3,937 |
|
|
$ |
(4,718 |
) |
|
$ |
2,901 |
|
|
$ |
6,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to the ordinary equity holders of the
parent |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.22 |
|
|
$ |
- |
|
|
$ |
0.16 |
|
|
$ |
- |
|
Diluted |
|
$ |
0.21 |
|
|
$ |
- |
|
|
$ |
0.15 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
18,172,372 |
|
|
|
1,176,370 |
|
|
|
17,649,446 |
|
|
|
1,176,370 |
|
Diluted |
|
|
18,874,132 |
|
|
|
12,936,962 |
|
|
|
18,384,921 |
|
|
|
12,936,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IBEX LimitedUnaudited
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Year ended June 30, |
US$ in
thousands |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Income / (loss) before taxation |
|
$ |
3,863 |
|
|
$ |
(2,972 |
) |
|
$ |
4,765 |
|
|
$ |
10,085 |
|
Adjustments to reconcile income before taxation to net cash
provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
7,517 |
|
|
|
6,012 |
|
|
|
28,197 |
|
|
|
24,472 |
|
Amortization of warrant asset |
|
|
(160 |
) |
|
|
154 |
|
|
|
517 |
|
|
|
705 |
|
Foreign currency translation (gain) / loss |
|
|
(31 |
) |
|
|
(444 |
) |
|
|
198 |
|
|
|
(195 |
) |
Fair value measurement of share warrants |
|
|
(446 |
) |
|
|
2,506 |
|
|
|
9,732 |
|
|
|
3,138 |
|
Phantom stock expense |
|
|
(62 |
) |
|
|
166 |
|
|
|
851 |
|
|
|
(31 |
) |
Share-based payments |
|
|
579 |
|
|
|
312 |
|
|
|
3,670 |
|
|
|
390 |
|
Allowance for expected credit losses |
|
|
(45 |
) |
|
|
123 |
|
|
|
291 |
|
|
|
224 |
|
Share of profit from investment in joint venture |
|
|
(177 |
) |
|
|
(119 |
) |
|
|
(577 |
) |
|
|
(533 |
) |
Loss / (gain) on disposal of fixed assets |
|
|
- |
|
|
|
63 |
|
|
|
- |
|
|
|
(10 |
) |
Loss / (gain) on lease terminations |
|
|
121 |
|
|
|
- |
|
|
|
(923 |
) |
|
|
- |
|
Provision for defined benefit scheme |
|
|
34 |
|
|
|
(13 |
) |
|
|
228 |
|
|
|
121 |
|
Impairment of intangibles |
|
|
- |
|
|
|
777 |
|
|
|
- |
|
|
|
777 |
|
Finance expenses |
|
|
2,111 |
|
|
|
2,239 |
|
|
|
9,034 |
|
|
|
9,429 |
|
(Increase) / Decrease in trade and other receivables |
|
|
(2,969 |
) |
|
|
888 |
|
|
|
(13,327 |
) |
|
|
9,042 |
|
Decrease / (Increase) in prepayments and other assets |
|
|
965 |
|
|
|
(35 |
) |
|
|
(405 |
) |
|
|
(1,435 |
) |
(Decrease) / Increase in trade and other payables and other
liabilities |
|
|
(4,698 |
) |
|
|
12,027 |
|
|
|
(1,655 |
) |
|
|
7,106 |
|
Cash inflow from operations |
|
|
6,602 |
|
|
|
21,684 |
|
|
|
40,596 |
|
|
|
63,285 |
|
Interest paid |
|
|
(2,111 |
) |
|
|
(2,239 |
) |
|
|
(9,034 |
) |
|
|
(9,429 |
) |
Income taxes paid |
|
|
(2,713 |
) |
|
|
(1,379 |
) |
|
|
(5,665 |
) |
|
|
(2,137 |
) |
Net cash inflow from operating activities |
|
$ |
1,778 |
|
|
$ |
18,066 |
|
|
$ |
25,897 |
|
|
$ |
51,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
$ |
(4,763 |
) |
|
$ |
(264 |
) |
|
$ |
(19,360 |
) |
|
$ |
(4,283 |
) |
Purchase of other intangible assets |
|
|
(189 |
) |
|
|
(497 |
) |
|
|
(1,463 |
) |
|
|
(982 |
) |
Dividend received from joint venture |
|
|
277 |
|
|
|
121 |
|
|
|
650 |
|
|
|
430 |
|
Net cash outflow from
investing activities |
|
$ |
(4,675 |
) |
|
$ |
(640 |
) |
|
$ |
(20,173 |
) |
|
$ |
(4,835 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from line of credit |
|
$ |
24,767 |
|
|
$ |
20,042 |
|
|
$ |
116,026 |
|
|
$ |
127,567 |
|
Repayments of line of credit |
|
|
(21,789 |
) |
|
|
(24,633 |
) |
|
|
(115,189 |
) |
|
|
(142,118 |
) |
Proceeds from borrowings |
|
|
- |
|
|
|
- |
|
|
|
1,714 |
|
|
|
1,000 |
|
Repayment of borrowings |
|
|
(1,757 |
) |
|
|
(3,227 |
) |
|
|
(11,080 |
) |
|
|
(8,033 |
) |
Payment of related party loans |
|
|
- |
|
|
|
- |
|
|
|
(1,614 |
) |
|
|
- |
|
Net proceeds from initial public offering |
|
|
- |
|
|
|
- |
|
|
|
63,107 |
|
|
|
- |
|
Payment of listing related cost |
|
|
(22 |
) |
|
|
- |
|
|
|
(1,074 |
) |
|
|
- |
|
Exercise of options |
|
|
- |
|
|
|
- |
|
|
|
28 |
|
|
|
- |
|
Principal payments on lease obligations |
|
|
(2,845 |
) |
|
|
(3,227 |
) |
|
|
(17,489 |
) |
|
|
(12,162 |
) |
Dividend distribution |
|
|
- |
|
|
|
- |
|
|
|
(4,000 |
) |
|
|
(121 |
) |
Net cash (outflow) /
inflow from financing activities |
|
$ |
(1,646 |
) |
|
$ |
(11,045 |
) |
|
$ |
30,429 |
|
|
$ |
(33,867 |
) |
Effects of exchange rate difference on cash and cash
equivalents |
|
|
(167 |
) |
|
|
18 |
|
|
|
(181 |
) |
|
|
(20 |
) |
Net (decrease) / increase in cash and cash equivalents |
|
$ |
(4,710 |
) |
|
$ |
6,399 |
|
|
$ |
35,972 |
|
|
$ |
12,997 |
|
Cash and cash equivalents at beginning of the period |
|
$ |
62,552 |
|
|
$ |
15,471 |
|
|
$ |
21,870 |
|
|
$ |
8,873 |
|
Cash and cash
equivalents at end of the period |
|
$ |
57,842 |
|
|
$ |
21,870 |
|
|
$ |
57,842 |
|
|
$ |
21,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IBEX
LimitedReconciliation of IFRS Financial Measures
to Non-GAAP Financial Measures
EXHIBIT 1: Adjusted net income and pro
forma adjusted earnings per share – diluted We define
“Adjusted net income” as net income / (loss) 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, foreign exchange gains or losses, fair value measurement of
share warrants, share-based payments, gain or loss on disposal of
fixed assets and/or lease terminations, and impairment of
intangibles, as applicable, net of the tax effect of such
adjustments. The following table provides a reconciliation of
adjusted net income to our net income / (loss) for the periods
presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Year ended June 30, |
|
|
|
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 income / (loss) |
|
$ |
4,027 |
|
|
$ |
0.22 |
|
|
$ |
(3,805 |
) |
|
$ |
(0.29 |
) |
(d) |
$ |
2,847 |
|
|
$ |
0.16 |
|
|
$ |
7,770 |
|
|
$ |
0.60 |
|
(d) |
Non-recurring expenses |
|
|
2,364 |
|
|
|
0.13 |
|
|
|
5,085 |
|
|
|
0.39 |
|
|
|
10,203 |
|
|
|
0.58 |
|
|
|
6,482 |
|
|
|
0.50 |
|
|
Amortization of warrant
asset |
|
|
(160 |
) |
|
|
(0.01 |
) |
|
|
154 |
|
|
|
0.01 |
|
|
|
517 |
|
|
|
0.03 |
|
|
|
705 |
|
|
|
0.05 |
|
|
Foreign currency translation
(gain) / loss |
|
|
(31 |
) |
|
|
(0.00 |
) |
|
|
(444 |
) |
|
|
(0.03 |
) |
|
|
198 |
|
|
|
0.01 |
|
|
|
(195 |
) |
|
|
(0.02 |
) |
|
Fair value measurement of
share warrants |
|
|
(446 |
) |
|
|
(0.02 |
) |
|
|
2,506 |
|
|
|
0.19 |
|
|
|
9,732 |
|
|
|
0.55 |
|
|
|
3,138 |
|
|
|
0.24 |
|
|
Share-based payments^ |
|
|
517 |
|
|
|
0.03 |
|
|
|
478 |
|
|
|
0.04 |
|
|
|
4,521 |
|
|
|
0.26 |
|
|
|
359 |
|
|
|
0.03 |
|
|
Loss / (gain) on disposal of
fixed assets |
|
|
- |
|
|
|
- |
|
|
|
63 |
|
|
|
0.00 |
|
|
|
- |
|
|
|
- |
|
|
|
(10 |
) |
|
|
(0.00 |
) |
|
Loss / (gain) on lease
terminations |
|
|
121 |
|
|
|
0.01 |
|
|
|
- |
|
|
|
- |
|
|
|
(923 |
) |
|
|
(0.05 |
) |
|
|
- |
|
|
|
- |
|
|
Impairment of intangibles |
|
|
- |
|
|
|
- |
|
|
|
777 |
|
|
|
0.06 |
|
|
|
- |
|
|
|
- |
|
|
|
777 |
|
|
|
0.06 |
|
|
Total
adjustments |
|
$ |
2,365 |
|
|
$ |
0.13 |
|
|
$ |
8,619 |
|
|
$ |
0.67 |
|
|
$ |
24,248 |
|
|
$ |
1.37 |
|
|
$ |
11,256 |
|
|
$ |
0.87 |
|
|
Tax impact of
adjustments(a) |
|
|
(618 |
) |
|
|
(0.03 |
) |
|
|
(1,739 |
) |
|
|
(0.13 |
) |
|
|
(3,519 |
) |
|
|
(0.20 |
) |
|
|
(1,977 |
) |
|
|
(0.15 |
) |
|
Adjusted net income
and adjusted earnings per share |
|
$ |
5,774 |
|
|
$ |
0.32 |
|
|
$ |
3,075 |
|
|
$ |
0.24 |
|
|
$ |
23,576 |
|
|
$ |
1.34 |
|
|
$ |
17,049 |
|
|
$ |
1.32 |
|
|
Adjusted net income
margin |
|
|
5.3 |
% |
|
|
|
|
|
3.0 |
% |
|
|
|
|
|
5.3 |
% |
|
|
|
|
|
4.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - diluted |
|
|
18,172,372 |
|
|
$ |
0.32 |
|
|
|
12,936,962 |
|
|
$ |
0.24 |
|
|
|
17,649,446 |
|
|
$ |
1.34 |
|
|
|
12,936,962 |
|
|
$ |
1.32 |
|
|
Dilutive impact of shares
issued on August 7, 2020(b) |
|
|
- |
|
|
$ |
- |
|
|
|
3,571,429 |
|
|
$ |
(0.04 |
) |
|
|
- |
|
|
$ |
- |
|
|
|
3,199,609 |
|
|
$ |
(0.23 |
) |
|
Dilutive impact of preferred
share conversion on August 7, 2020(b) |
|
|
- |
|
|
$ |
- |
|
|
|
1,785,565 |
|
|
$ |
(0.02 |
) |
|
|
- |
|
|
$ |
- |
|
|
|
1,785,565 |
|
|
$ |
(0.13 |
) |
|
Dilutive impact of share-based
compensation and the Amazon warrant(b) |
|
|
701,760 |
|
|
$ |
(0.01 |
) |
|
|
580,176 |
|
|
$ |
(0.01 |
) |
|
|
735,475 |
|
|
$ |
(0.05 |
) |
|
|
462,785 |
|
|
$ |
(0.03 |
) |
|
Pro forma adjusted
weighted average shares outstanding - diluted and pro forma
adjusted earnings per share -
diluted(c) |
|
|
18,874,132 |
|
|
$ |
0.31 |
|
|
|
18,874,132 |
|
|
$ |
0.16 |
|
|
|
18,384,921 |
|
|
$ |
1.28 |
|
|
|
18,384,921 |
|
|
$ |
0.93 |
|
|
^ Includes phantom stock
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 3,199,609 weighted average shares
outstanding for the three and twelve months ended June 30, 2021,
respectively, as a result of our initial public offering completed
on August 7, 2020, (ii) an incremental 1,785,565 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
18,874,132 and 18,384,921 shares, the pro forma adjusted weighted
average shares outstanding – diluted for the three and twelve
months ended June 30, 2021, respectively, to calculate pro forma
adjusted earnings per share – diluted for the three and twelve
months ended June 30, 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
EBITDA We define “EBITDA” as net income / (loss)
before the effect of the following items: finance expenses, income
tax (benefit) / expense, 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, foreign exchange gains or losses, fair value
measurement of share warrants, share-based payments, gain or loss
on disposal of fixed assets and/or lease terminations, and
impairment of intangibles, as applicable.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Year ended June 30, |
US$ in
thousands, unaudited |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net income / (loss) |
|
$ |
4,027 |
|
|
$ |
(3,805 |
) |
|
$ |
2,847 |
|
|
$ |
7,770 |
|
Finance expenses |
|
$ |
2,111 |
|
|
$ |
2,238 |
|
|
|
9,034 |
|
|
|
9,428 |
|
Income tax (benefit) /
expense |
|
$ |
(164 |
) |
|
$ |
833 |
|
|
|
1,918 |
|
|
|
2,315 |
|
Depreciation and
amortization |
|
$ |
7,517 |
|
|
$ |
6,012 |
|
|
|
28,197 |
|
|
|
24,472 |
|
EBITDA |
|
$ |
13,491 |
|
|
$ |
5,278 |
|
|
$ |
41,996 |
|
|
$ |
43,985 |
|
Non-recurring expenses |
|
$ |
2,364 |
|
|
$ |
5,085 |
|
|
|
10,203 |
|
|
|
6,482 |
|
Amortization of warrant
asset |
|
$ |
(160 |
) |
|
$ |
154 |
|
|
|
517 |
|
|
|
705 |
|
Foreign currency translation
(gain) / loss |
|
$ |
(31 |
) |
|
$ |
(444 |
) |
|
|
198 |
|
|
|
(195 |
) |
Fair value measurement of
share warrants |
|
$ |
(446 |
) |
|
$ |
2,506 |
|
|
|
9,732 |
|
|
|
3,138 |
|
Share-based payments^ |
|
$ |
517 |
|
|
$ |
478 |
|
|
|
4,521 |
|
|
|
359 |
|
Loss / (gain) on disposal of
fixed assets |
|
$ |
- |
|
|
$ |
63 |
|
|
|
- |
|
|
|
(10 |
) |
Loss / (gain) on lease
terminations |
|
$ |
121 |
|
|
$ |
- |
|
|
|
(923 |
) |
|
|
- |
|
Impairment of intangibles |
|
$ |
- |
|
|
$ |
777 |
|
|
|
- |
|
|
|
777 |
|
Adjusted
EBITDA |
|
$ |
15,856 |
|
|
$ |
13,897 |
|
|
$ |
66,244 |
|
|
$ |
55,241 |
|
Adjusted EBITDA
margin |
|
|
14.6 |
% |
|
|
13.8 |
% |
|
|
14.9 |
% |
|
|
13.6 |
% |
^ Includes phantom stock
expense |
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT 3: Free cash flow We define “free
cash flow” as net cash provided by operating activities less cash
capital expenditures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Year ended June 30, |
US$ in
thousands, unaudited |
|
2021 |
|
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
1,778 |
|
|
$ |
18,066 |
|
$ |
25,897 |
|
$ |
51,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash capital expenditures |
|
|
4,952 |
|
|
|
761 |
|
|
20,823 |
|
|
5,265 |
Free cash
flow(1) |
|
$ |
(3,174 |
) |
|
$ |
17,305 |
|
$ |
5,074 |
|
$ |
46,454 |
(1) Excluded from free cash
flow are the principal portion of right-of-use lease payments of
$2,720 and $2,527 for the three months ended June 30, 2021 and
2020, respectively, and $10,783 and $9,146 for the years ended June
30, 2021 and 2020, respectively. We believe it is useful to
consider these payments when analyzing free cash flow as these
amounts directly relate to revenue generating assets used in
operations.
EXHIBIT 4: Net debtWe define
“net debt” as total debt (borrowings and leases) less cash and cash
equivalents.
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
June 30, |
US$ in
thousands, unaudited |
|
|
2021 |
|
|
2020 |
Borrowings |
|
|
|
|
|
|
Non-current |
|
$ |
1,801 |
|
$ |
3,782 |
Current |
|
|
26,716 |
|
|
27,476 |
|
|
$ |
28,517 |
|
$ |
31,258 |
Leases |
|
|
|
|
|
|
Non-current |
|
|
71,878 |
|
|
62,044 |
Current |
|
|
12,121 |
|
|
12,668 |
|
|
$ |
83,999 |
|
$ |
74,712 |
Total debt |
|
$ |
112,516 |
|
$ |
105,970 |
Cash and cash equivalents |
|
|
57,842 |
|
|
21,870 |
Net debt |
|
$ |
54,674 |
|
$ |
84,100 |
|
|
|
|
|
|
|
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