IBEX Limited (“ibex”), a leading global provider in business
process outsourcing and end-to-end customer engagement technology
solutions, today announced financial results for its third fiscal
quarter ended March 31, 2022.
“We delivered a strong third quarter with record
year-over-year organic revenue growth of 19%, which accelerated
from an impressive 13% revenue growth in Q2. Our growth was driven
by integrated omnichannel solutions across both new and existing
clients,” said Bob Dechant, CEO of ibex. “Over the last two years,
revenue has grown at a combined 28% over the prior year
period.”
Dechant continued, “Our business has reached an
inflection point, and we are very excited about our trajectory.
Revenue from new customers won since FY16 grew by an impressive 60%
on a year-over-year basis, which represents our strategic shift
into the digital-first marketplace, and now represents 70% of total
company revenue, up from 52% a year ago. Our FinTech and HealthTech
business grew by over 100% over the prior year and now represents
25% of total revenues. Expanding into these verticals will insulate
the business from the impact of seasonality seen with some of our
other verticals and lead to further stability of the revenue base.
These growth drivers significantly outpace the downward pressure
from our legacy business.
Our adjusted EBITDA margin improved sequentially
this quarter and continues to experience short-term pressure as we
ramp new clients and programs into our newly expanded capacity. We
expect a meaningful mid-term margin improvement with the steady
state impact of our continued onboarding of new programs,
especially as we place these programs into additional capacity made
available with the removal of social distancing requirements in our
delivery markets.
Looking forward to FY23 and beyond, we expect to
sustain our revenue trajectory firmly in excess of 10% per annum.
This revenue growth is driven primarily by the continued success of
our profitable new logo engine that, over the last several years,
has delivered an annualized growth rate between 40% and 60% and is
now 70% of our overall business. This growth has offset the decline
of our legacy 3 clients, primarily in the telecommunications &
legacy technology industry, whose revenues have been declining on
average by around 30% on an annualized basis and now make up only
19% of our revenue base. We do expect the trajectory among these
legacy clients to continue as a result of organic demand decline
and a strategic decision that allowed us to replace our lowest
margin business within this client group with a new higher margin
HealthTech client. As a result, we expect revenues from this legacy
set of clients to have a less pronounced effect on our
business.”
Third Quarter of Fiscal Year 2022
Highlights
Business Highlights
- Won seven new significant clients
in the quarter and nineteen in the fiscal year-to-date.
- Wins highlight the continued
success in the HealthTech and digital first space. We had two key
wins in HealthTech, one with a top job website company, as well as
a leading collaborative graphics design company.
- The wins are in all our key
geographies, including the Philippines, Nearshore, and the US, and
are a catalyst for double-digit growth in all these regions.
-
Client diversification continued to improve with less than 56% of
total revenue from our top 10 clients, down from 69% in the prior
year quarter and top 25 clients to 84% from 90% of total
revenue.
Revenue
- Revenue increased 18.6% to $129.1
million, compared to $108.8 million in the prior year quarter.
- Revenue related to our new clients
won since FY16 grew 60% compared to the prior year quarter and now
represents 70% of our quarterly revenue and up from 52% in the
prior year quarter.
- Revenue growth was driven by
strength in our FinTech, HealthTech, Retail & Ecommerce, and
Travel, Transportation & Logistics verticals, partially offset
by continuing decreases in our Telecommunications verticals.
- FinTech and HealthTech (our two
strategic investment verticals since FY20) increased 101% from the
prior year quarter and now represent 24.6% of our business.
- Legacy 3 clients now represent 19%
of revenue, compared to 34.1% in the prior year quarter and are
expected to have less of an impact on our overall results going
forward.
Net Income
- Net income increased to $6.6
million, compared to $(0.2) million in the prior year quarter. The
increase in net income was primarily driven by stronger operating
results and tax benefits recognized in the current quarter.
- Net income margin increased to
5.1%, compared to (0.2)% in the prior year quarter.
- Non-GAAP adjusted net income
increased to $10.7 million, compared to $6.0 million in the prior
year quarter (see Exhibit 1 for reconciliation).
- Non-GAAP adjusted net income margin
increased to 8.3%, compared to 5.5% in the prior year quarter (see
Exhibit 1 for reconciliation).
Adjusted EBITDA
- Non-GAAP adjusted EBITDA increased
to $18.8 million, compared to $16.7 million in the prior year
quarter (see Exhibit 2 for reconciliation).
- Non-GAAP adjusted
EBITDA margin decreased to 14.6%, compared to 15.3% in the prior
year quarter (see Exhibit 2 for reconciliation).
-
Non-GAAP adjusted EBITDA margin decreased primarily due to an
increase in agent training costs associated with ramping our
business, investment in overhead to support our growth, and the
opening of our Honduras center.
Earnings Per Share
- IFRS basic and
fully diluted earnings per share increased to $0.36 and $0.35,
respectively, compared to $(0.01) and $(0.01) in the prior year
quarter.
- Non-GAAP adjusted fully diluted
earnings per share increased to $0.57, compared to $0.32 in the
prior year quarter (see Exhibit 1 for reconciliation).
Cash Flow and Balance Sheet
-
Cash flow from operations was $12.0 million, compared to $13.9
million in the prior year quarter.
-
Capex was $6.1 million compared to $6.3 million in the prior year
quarter.
-
Cash and cash equivalents were $41.5 million, total borrowings were
$27.4 million, and lease liabilities were $90.6 million as of March
31, 2022, compared to cash and cash equivalents of $57.8 million,
total borrowings of $28.5 million, and lease liabilities of $84.0
million as of June 30, 2021.
Fiscal Year 2022 Business Outlook
We are reaffirming our revenue, adjusted EBITDA
and capex guidance for our fiscal year 2022.
Share Repurchase Authorization
In the second quarter, the company’s board of
directors authorized the repurchase of up to $20 million of the
company’s common shares. As of May 13, the company has repurchased
$3.2 million of its common shares at an average price of $14.87 per
share.
Conference Call and Webcast Information
IBEX Limited will host a conference call and
live webcast to discuss its third quarter of fiscal year 2022
financial results at 4:30 p.m. Eastern Time today, May 18, 2022. 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 8088444. 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, 2022, until 7:30 p.m. Eastern Time on May 25, 2022,
by dialing (855) 859-2056 for the U.S. or Canada, or for
international callers, (404) 537-3406 and entering passcode
8088444. In addition, an archived webcast will be available on the
Investors section of ibex’s website
at: https://investors.ibex.co/.
Financial Information
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 provide a more accurate depiction
of the 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 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, Nicaragua, and Honduras;
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 14, 2021 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.
IR Contact: Daniel Bellehsen,
Executive Vice President, Investor Relations & Corporate
Development, ibex, Dan.Bellehsen@ibex.co
IBEX LimitedUnaudited
Consolidated Statements of Financial Position
|
|
|
|
|
|
|
March 31, |
|
June 30, |
US$ in
thousands |
2022 |
|
2021 |
|
|
Assets |
|
|
|
|
|
Current
assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
41,450 |
|
|
$ |
57,842 |
|
Trade and other receivables |
|
104,324 |
|
|
|
81,104 |
|
Due from related parties |
|
1,133 |
|
|
|
1,755 |
|
Warrant asset |
|
862 |
|
|
|
673 |
|
Total current
assets |
$ |
147,769 |
|
|
$ |
141,374 |
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
Property and equipment |
$ |
41,423 |
|
|
$ |
30,828 |
|
Right of use assets |
|
78,961 |
|
|
|
75,875 |
|
Goodwill |
|
11,832 |
|
|
|
11,832 |
|
Other intangible assets |
|
3,244 |
|
|
|
3,209 |
|
Warrant asset |
|
1,069 |
|
|
|
1,420 |
|
Investment in joint venture |
|
250 |
|
|
|
258 |
|
Deferred tax asset |
|
6,809 |
|
|
|
4,252 |
|
Other assets |
|
5,018 |
|
|
|
5,239 |
|
Total non-current
assets |
$ |
148,606 |
|
|
$ |
132,913 |
|
Total
assets |
$ |
296,375 |
|
|
$ |
274,287 |
|
|
|
|
|
|
|
Liabilities and
equity |
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Trade and other payables |
$ |
55,252 |
|
|
$ |
54,863 |
|
Deferred revenue |
|
8,678 |
|
|
|
4,077 |
|
Lease liabilities |
|
14,799 |
|
|
|
12,121 |
|
Borrowings |
|
26,797 |
|
|
|
26,716 |
|
Due to related parties |
|
3,863 |
|
|
|
4,275 |
|
Income tax payables |
|
2,129 |
|
|
|
3,663 |
|
Total current
liabilities |
$ |
111,518 |
|
|
$ |
105,715 |
|
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
Deferred revenue |
$ |
4,738 |
|
|
$ |
3,010 |
|
Lease liabilities |
|
75,762 |
|
|
|
71,878 |
|
Borrowings |
|
589 |
|
|
|
1,801 |
|
Deferred tax liability |
|
86 |
|
|
|
86 |
|
Other non-current liabilities |
|
6,827 |
|
|
|
11,138 |
|
Total non-current
liabilities |
$ |
88,002 |
|
|
$ |
87,913 |
|
Total
liabilities |
$ |
199,520 |
|
|
$ |
193,628 |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Share capital |
$ |
2 |
|
|
$ |
2 |
|
Additional paid-in capital |
|
155,831 |
|
|
|
158,157 |
|
Other reserves |
|
33,625 |
|
|
|
33,180 |
|
Accumulated deficit |
|
(92,603 |
) |
|
|
(110,680 |
) |
Total
equity |
$ |
96,855 |
|
|
$ |
80,659 |
|
Total liabilities and
equity |
$ |
296,375 |
|
|
$ |
274,287 |
|
|
|
|
|
|
|
IBEX LimitedUnaudited
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 |
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenue |
$ |
129,108 |
|
|
$ |
108,832 |
|
|
$ |
369,865 |
|
|
$ |
334,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related costs |
|
88,783 |
|
|
|
72,386 |
|
|
|
256,711 |
|
|
|
223,610 |
|
Share-based payments |
|
798 |
|
|
|
1,298 |
|
|
|
1,302 |
|
|
|
4,004 |
|
Reseller commission and lead
expenses |
|
3,143 |
|
|
|
3,275 |
|
|
|
9,824 |
|
|
|
10,776 |
|
Depreciation and
amortization |
|
8,555 |
|
|
|
7,258 |
|
|
|
24,867 |
|
|
|
20,680 |
|
Fair value measurement of
share warrants |
|
3,379 |
|
|
|
4,433 |
|
|
|
(3,608 |
) |
|
|
10,178 |
|
Other operating costs |
|
18,563 |
|
|
|
17,778 |
|
|
|
57,050 |
|
|
|
57,711 |
|
Income from
operations |
$ |
5,887 |
|
|
$ |
2,404 |
|
|
$ |
23,719 |
|
|
$ |
7,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance expenses |
$ |
(2,175 |
) |
|
$ |
(2,310 |
) |
|
|
(6,595 |
) |
|
|
(6,923 |
) |
Income before
taxation |
$ |
3,712 |
|
|
$ |
94 |
|
|
$ |
17,124 |
|
|
$ |
902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit /
(expense) |
$ |
2,886 |
|
|
$ |
(339 |
) |
|
|
953 |
|
|
|
(2,082 |
) |
Net income /
(loss) |
$ |
6,598 |
|
|
$ |
(245 |
) |
|
$ |
18,077 |
|
|
$ |
(1,180 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income / (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will be
subsequently reclassified to profit or loss |
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustment |
$ |
(279 |
) |
|
$ |
99 |
|
|
$ |
(881 |
) |
|
$ |
(14 |
) |
Cash flow hedges - changes in
fair value |
|
161 |
|
|
|
73 |
|
|
|
(121 |
) |
|
|
158 |
|
|
$ |
(118 |
) |
|
$ |
172 |
|
|
$ |
(1,002 |
) |
|
$ |
144 |
|
Total comprehensive
income / (loss) |
$ |
6,480 |
|
|
$ |
(73 |
) |
|
$ |
17,075 |
|
|
$ |
(1,036 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings / (loss) per
share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.36 |
|
|
$ |
(0.01 |
) |
|
$ |
0.99 |
|
|
$ |
(0.07 |
) |
Diluted |
$ |
0.35 |
|
|
$ |
(0.01 |
) |
|
$ |
0.96 |
|
|
$ |
(0.07 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
18,250,632 |
|
|
|
18,083,182 |
|
|
|
18,263,976 |
|
|
|
17,475,469 |
|
Diluted |
|
18,685,848 |
|
|
|
18,083,182 |
|
|
|
18,822,680 |
|
|
|
17,475,469 |
|
IBEX LimitedUnaudited
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, |
|
Nine months ended March 31, |
US$ in
thousands |
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Income before taxation |
$ |
3,712 |
|
|
$ |
94 |
|
|
$ |
17,124 |
|
|
$ |
902 |
|
Adjustments to reconcile income before taxation to net cash
provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
8,555 |
|
|
|
7,258 |
|
|
|
24,867 |
|
|
|
20,680 |
|
Amortization of warrant asset |
|
219 |
|
|
|
229 |
|
|
|
162 |
|
|
|
677 |
|
Foreign currency translation loss / (gain) |
|
(18 |
) |
|
|
26 |
|
|
|
(24 |
) |
|
|
229 |
|
Fair value measurement of share warrants |
|
3,379 |
|
|
|
4,433 |
|
|
|
(3,608 |
) |
|
|
10,178 |
|
Share-based payments |
|
798 |
|
|
|
1,298 |
|
|
|
1,302 |
|
|
|
4,004 |
|
Allowance of expected credit losses |
|
(374 |
) |
|
|
(116 |
) |
|
|
(698 |
) |
|
|
336 |
|
Share of profit from investment in joint venture |
|
(243 |
) |
|
|
(174 |
) |
|
|
(679 |
) |
|
|
(400 |
) |
Gain on lease terminations |
|
(70 |
) |
|
|
(852 |
) |
|
|
(77 |
) |
|
|
(1,044 |
) |
Provision for defined benefit scheme |
|
41 |
|
|
|
50 |
|
|
|
119 |
|
|
|
194 |
|
Finance expenses |
|
2,175 |
|
|
|
2,310 |
|
|
|
6,595 |
|
|
|
6,923 |
|
Decrease / (increase) in trade and other receivables |
|
691 |
|
|
|
626 |
|
|
|
(21,258 |
) |
|
|
(10,358 |
) |
Decrease / (increase) in prepayments and other assets |
|
421 |
|
|
|
(673 |
) |
|
|
222 |
|
|
|
(1,370 |
) |
Increase / (decrease) in trade and other payables and other
liabilities |
|
(4,635 |
) |
|
|
1,991 |
|
|
|
6,197 |
|
|
|
3,043 |
|
Cash inflow from operations |
|
14,651 |
|
|
|
16,500 |
|
|
|
30,244 |
|
|
|
33,994 |
|
Interest paid |
|
(2,175 |
) |
|
|
(2,310 |
) |
|
|
(6,595 |
) |
|
|
(6,923 |
) |
Income taxes paid |
|
(481 |
) |
|
|
(297 |
) |
|
|
(1,369 |
) |
|
|
(2,952 |
) |
Net cash inflow from operating activities |
$ |
11,995 |
|
|
$ |
13,893 |
|
|
$ |
22,280 |
|
|
$ |
24,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment |
$ |
(5,879 |
) |
|
$ |
(5,892 |
) |
|
$ |
(22,144 |
) |
|
$ |
(14,597 |
) |
Purchase of other intangible assets |
|
(192 |
) |
|
|
(407 |
) |
|
|
(1,068 |
) |
|
|
(1,274 |
) |
Dividend received from joint venture |
|
254 |
|
|
|
146 |
|
|
|
687 |
|
|
|
373 |
|
Net cash outflow from
investing activities |
$ |
(5,817 |
) |
|
$ |
(6,153 |
) |
|
$ |
(22,525 |
) |
|
$ |
(15,498 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from line of credit |
$ |
15,085 |
|
|
$ |
24,684 |
|
|
$ |
75,217 |
|
|
$ |
91,259 |
|
Repayments of line of credit |
|
(25,500 |
) |
|
|
(38,104 |
) |
|
|
(74,727 |
) |
|
|
(93,400 |
) |
Proceeds from borrowings |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,714 |
|
Repayment of borrowings |
|
(1,583 |
) |
|
|
(3,496 |
) |
|
|
(5,425 |
) |
|
|
(9,323 |
) |
Payment of related party loans |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,614 |
) |
Net proceeds from initial public offering |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
63,107 |
|
Payment of listing related costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,052 |
) |
Exercise of options |
|
17 |
|
|
|
28 |
|
|
|
17 |
|
|
|
28 |
|
Proceeds from lease obligations |
|
1,417 |
|
|
|
- |
|
|
|
1,417 |
|
|
|
- |
|
Principal payments on lease obligations |
|
(3,308 |
) |
|
|
(3,014 |
) |
|
|
(9,855 |
) |
|
|
(14,644 |
) |
Dividend distribution |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,000 |
) |
Purchase of treasury shares |
|
(2,266 |
) |
|
|
- |
|
|
|
(2,302 |
) |
|
|
- |
|
Net cash inflow /
(outflow) from financing activities |
$ |
(16,138 |
) |
|
$ |
(19,902 |
) |
|
$ |
(15,658 |
) |
|
$ |
32,075 |
|
Effects of exchange rate difference on cash and cash
equivalents |
|
(121 |
) |
|
|
99 |
|
|
|
(489 |
) |
|
|
(14 |
) |
Net (decrease) / increase in cash and cash equivalents |
$ |
(10,081 |
) |
|
$ |
(12,063 |
) |
|
$ |
(16,392 |
) |
|
$ |
40,682 |
|
Cash and cash equivalents at beginning of the period |
$ |
51,531 |
|
|
$ |
74,615 |
|
|
$ |
57,842 |
|
|
$ |
21,870 |
|
Cash and cash
equivalents at end of the period |
$ |
41,450 |
|
|
$ |
62,552 |
|
|
$ |
41,450 |
|
|
$ |
62,552 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
items |
|
|
|
|
|
|
|
|
|
|
|
New leases |
|
4,566 |
|
|
|
7,871 |
|
|
|
18,972 |
|
|
|
29,401 |
|
Change in accounts payable related to fixed assets |
|
(901 |
) |
|
|
- |
|
|
|
1,156 |
|
|
|
- |
|
IBEX
LimitedReconciliation of IFRS Financial Measures
to Non-GAAP Financial Measures
EXHIBIT 1: Adjusted net income and adjusted fully
diluted earnings per share
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 listing costs, as applicable),
amortization of warrant asset, foreign currency translation 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 impact of such adjustments. The following table provides a
reconciliation of net income / (loss) to adjusted net income for
the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, |
Nine months ended March 31, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
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) |
$ |
6,598 |
|
$ |
0.36 |
|
$ |
(245 |
) |
|
$ |
(0.01 |
) |
$ |
18,077 |
|
$ |
0.99 |
|
$ |
(1,180 |
) |
|
$ |
(0.07 |
) |
|
Non-recurring expenses |
|
42 |
|
|
0.00 |
|
|
1,848 |
|
|
|
0.10 |
|
|
1,754 |
|
|
0.10 |
|
|
7,839 |
|
|
|
0.45 |
|
|
Amortization of warrant asset |
|
219 |
|
|
0.01 |
|
|
229 |
|
|
|
0.01 |
|
|
162 |
|
|
0.01 |
|
|
677 |
|
|
|
0.04 |
|
|
Foreign
currency translation (gain) / loss |
|
(18 |
) |
|
(0.00 |
) |
|
44 |
|
|
|
0.00 |
|
|
(24 |
) |
|
(0.00 |
) |
|
247 |
|
|
|
0.01 |
|
|
Fair
value measurement of share warrants |
|
3,379 |
|
|
0.19 |
|
|
4,433 |
|
|
|
0.25 |
|
|
(3,608 |
) |
|
(0.20 |
) |
|
10,178 |
|
|
|
0.58 |
|
|
Share-based payments |
|
798 |
|
|
0.04 |
|
|
1,298 |
|
|
|
0.07 |
|
|
1,302 |
|
|
0.07 |
|
|
4,004 |
|
|
|
0.23 |
|
|
Gain on
lease terminations |
|
(70 |
) |
|
(0.00 |
) |
|
(852 |
) |
|
|
(0.05 |
) |
|
(77 |
) |
|
(0.00 |
) |
|
(1,044 |
) |
|
|
(0.06 |
) |
|
Total adjustments |
$ |
4,350 |
|
$ |
0.24 |
|
$ |
7,000 |
|
|
$ |
0.39 |
|
$ |
(491 |
) |
$ |
(0.03 |
) |
$ |
21,901 |
|
|
$ |
1.25 |
|
|
Tax
impact of adjustments(a) |
|
(248 |
) |
|
(0.01 |
) |
|
(722 |
) |
|
|
(0.04 |
) |
|
(843 |
) |
|
(0.05 |
) |
|
(2,901 |
) |
|
|
(0.17 |
) |
|
Adjusted net income |
$ |
10,700 |
|
$ |
0.59 |
|
$ |
6,033 |
|
|
$ |
0.33 |
|
$ |
16,743 |
|
$ |
0.92 |
|
$ |
17,820 |
|
|
$ |
1.02 |
|
|
Adjusted net income margin |
|
8.3 |
% |
|
|
|
5.5 |
% |
|
|
|
|
4.5 |
% |
|
|
|
5.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic |
|
18,250,632 |
|
|
0.59 |
|
|
18,083,182 |
|
|
|
0.33 |
|
|
18,263,976 |
|
|
0.92 |
|
|
17,475,469 |
|
|
|
1.02 |
|
|
Dilutive
impact of share-based compensation and the Amazon warrant |
|
435,216 |
|
|
(0.02 |
) |
|
737,826 |
|
|
|
(0.01 |
) |
|
558,704 |
|
|
(0.03 |
) |
|
756,977 |
|
|
|
(0.04 |
) |
|
Weighted average shares outstanding -
dilutedand adjusted fully diluted earnings per
share |
|
18,685,848 |
|
$ |
0.57 |
|
|
18,821,008 |
|
(b) |
$ |
0.32 |
|
|
18,822,680 |
|
$ |
0.89 |
|
|
18,232,446 |
|
(b) |
$ |
0.98 |
|
|
(a) The tax impact of each adjustment is
calculated using the effective tax rate in the relevant
jurisdictions.(b) The weighted average shares outstanding – diluted
for the three and nine months ended March 31, 2021 reflect an
additional 737,826 and 756,977 shares, respectively, that are
anti-dilutive on an IFRS basis.
EXHIBIT 2: EBITDA and Adjusted
EBITDAWe define “EBITDA” as net income / (loss) before the
effect of the following items: finance expenses (including finance
expense related to right-of-use lease liabilities), income tax
expense, and depreciation and amortization (including depreciation
of right-of-use assets). 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 listing costs, as applicable), amortization of
warrant asset, foreign currency translation 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. The following table
provides a reconciliation of net income / (loss) to adjusted EBITDA
for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, |
|
Nine months ended March 31, |
US$ in
thousands, unaudited |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net income / (loss) |
|
$ |
6,598 |
|
|
$ |
(245 |
) |
|
$ |
18,077 |
|
|
$ |
(1,180 |
) |
Finance expenses |
|
|
2,175 |
|
|
|
2,310 |
|
|
|
6,595 |
|
|
|
6,923 |
|
Income tax expense |
|
|
(2,886 |
) |
|
|
339 |
|
|
|
(953 |
) |
|
|
2,082 |
|
Depreciation and
amortization |
|
|
8,555 |
|
|
|
7,258 |
|
|
|
24,867 |
|
|
|
20,680 |
|
EBITDA |
|
$ |
14,442 |
|
|
$ |
9,662 |
|
|
$ |
48,586 |
|
|
$ |
28,505 |
|
Non-recurring expenses |
|
|
42 |
|
|
|
1,848 |
|
|
|
1,754 |
|
|
|
7,839 |
|
Amortization of warrant
asset |
|
|
219 |
|
|
|
229 |
|
|
|
162 |
|
|
|
677 |
|
Foreign currency translation
(gain) / loss |
|
|
(18 |
) |
|
|
44 |
|
|
|
(24 |
) |
|
|
247 |
|
Fair value measurement of
share warrants |
|
|
3,379 |
|
|
|
4,433 |
|
|
|
(3,608 |
) |
|
|
10,178 |
|
Share-based payments |
|
|
798 |
|
|
|
1,298 |
|
|
|
1,302 |
|
|
|
4,004 |
|
Gain on lease
terminations |
|
|
(70 |
) |
|
|
(852 |
) |
|
|
(77 |
) |
|
|
(1,044 |
) |
Adjusted
EBITDA |
|
$ |
18,792 |
|
|
$ |
16,662 |
|
|
|
48,095 |
|
|
|
50,406 |
|
Adjusted EBITDA margin |
|
|
14.6 |
% |
|
|
15.3 |
% |
|
|
13.0 |
% |
|
|
15.1 |
% |
EXHIBIT 3: Free cash flow
We define “free cash flow” as net cash provided
by operating activities less cash capital expenditures.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, |
|
Nine months ended March 31, |
US$ in
thousands, unaudited |
2022 |
|
2021 |
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
11,995 |
|
$ |
13,893 |
|
$ |
22,280 |
|
|
$ |
24,119 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Cash capital expenditures |
|
6,071 |
|
|
6,299 |
|
|
23,212 |
|
|
|
15,871 |
Free cash
flow(1) |
$ |
5,924 |
|
$ |
7,594 |
|
$ |
(932 |
) |
|
$ |
8,248 |
(1) Excluded from free cash
flow are the principal portion of right-of-use lease payments of
$3,305 and $2,892 for the quarter ended and $9,731 and $8,063 for
the nine months ended March 31, 2022 and 2021, respectively. We
believe it is useful to consider these payments when analyzing free
cash flow as these amounts directly relate to revenue generating
assets used in operations.EXHIBIT 4: Net debtWe
define “net debt” as total debt less cash and cash equivalents.
|
|
|
|
|
|
|
|
March 31, |
|
|
June 30, |
US$ in
thousands, unaudited |
|
2022 |
|
|
2021 |
Borrowings |
|
|
|
|
|
Current |
$ |
26,797 |
|
$ |
26,716 |
Non-current |
|
589 |
|
|
1,801 |
|
$ |
27,386 |
|
$ |
28,517 |
Leases |
|
|
|
|
|
Current |
$ |
14,799 |
|
$ |
12,121 |
Non-current |
|
75,762 |
|
|
71,878 |
|
$ |
90,561 |
|
$ |
83,999 |
Total debt |
$ |
117,947 |
|
$ |
112,516 |
Cash and cash equivalents |
|
41,450 |
|
|
57,842 |
Net debt |
$ |
76,497 |
|
$ |
54,674 |
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