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 fourth quarter
and fiscal year ended June 30, 2022.
“Fiscal year 2022 was a great year for ibex with
record revenues, adjusted EBITDA, EPS, free cash flow and new
client revenue,” said Bob Dechant, CEO of ibex. “Our momentum
continues to build. We have delivered three consecutive quarters of
accelerated revenue growth and our adjusted EBITDA margins
continued to expand over the same period. Revenue generated from
our BPO 2.0 clients won since fiscal year 2016 grew 49% this fiscal
year and represented 69% of total revenue. Our success in winning
new clients and navigating the global pandemic demonstrates our
ability to win across all key verticals and be disruptive as a
leader in the market.”
Dechant continued, “The fourth quarter was a
very strong quarter for ibex with organic revenue growth of 13.6%,
record adjusted EBITDA margin of 15.1% and generating over $25
million in free cash flow. We accomplished these results while at
the same time exiting away from a low-margin legacy client and
strategically transitioning our agents to a new, high growth
HealthTech client. Although we incurred costs associated with the
transition in the quarter, we believe we are in a great position
starting Q1 of FY23 to realize immediate and long term benefits
from this pivot.”
“Looking ahead, we are confident in our ability
to continue to win business as clients look to outsource more in a
turbulent market. We expect to surpass our historical 10% revenue
growth rate with continued margin expansion, as we utilize capacity
created with the roll-off of social distancing in our centers.
Despite challenges in the macro environment, we believe we are well
positioned for a strong first quarter and fiscal year 2023,”
concluded Mr. Dechant.
Fourth Quarter of Fiscal Year 2022
HighlightsBusiness Highlights
- Won 4 new logos in the quarter
across key verticals.
- The FinTech & HealthTech
verticals, where we made strategic investments in early fiscal year
2020, increased significantly to 30.4% of total revenue in the
fourth quarter, compared to 20.6% of total revenue in the prior
year quarter.
- Approximately 10,000 seats of
additional capacity became available as a result of removing social
distancing requirements.
Revenue
- Revenue increased 13.6% to $123.7
million, compared to $108.9 million in the prior year quarter.
- Revenue related to our new clients
won since fiscal year 2016 grew 43% compared to the prior year
quarter and now represents 74% of our quarterly revenue.
Net Income
- Net income increased to $4.9
million, compared to $4.0 million in the prior year quarter. The
increase in net income was primarily driven by stronger operating
results, including a decrease in non-recurring costs, and a
deferred tax benefit recognized in the current quarter, partially
offset by increased depreciation, and a negative impact of fair
value measurement of share warrants.
- Net income margin increased to
4.0%, compared to 3.7% in the prior year quarter.
- Non-GAAP adjusted net income
increased to $7.9 million, compared to $5.8 million in the prior
year quarter (see Exhibit 1 for reconciliation).
- Non-GAAP adjusted net income margin
increased to 6.4%, compared to 5.3% in the prior year quarter (see
Exhibit 1 for reconciliation).
Adjusted EBITDA
- Non-GAAP adjusted EBITDA increased
to $18.7 million, compared to $15.9 million in the prior year
quarter (see Exhibit 2 for reconciliation).
-
Non-GAAP adjusted EBITDA margin increased to 15.1%, compared to
14.6% in the prior year quarter (see Exhibit 2 for
reconciliation).
Earnings Per Share
- IFRS basic and
fully diluted earnings per share increased to $0.27 and $0.26,
respectively, compared to $0.22 and $0.21 in the prior year
quarter.
- Non-GAAP adjusted fully diluted
earnings per share increased to $0.42, compared to $0.31 in the
prior year quarter (see Exhibit 1 for reconciliation).
Cash flow
- Cash flow from operations increased
to $27.8 million, compared to $1.8 million in the prior year
quarter primarily due to improved collections, stronger operating
results, including lower non-recurring expenses, and lower cash
taxes.
- Free cash flow for the fourth
quarter increased to $25.1 million, compared to ($3.2) million in
the prior year quarter.
- DSOs were 55 days in the fourth quarter, down 1 day compared to
prior year, and down 5 days sequentially.
Fiscal Year 2022 HighlightsBusiness
Highlights
- Won 23 new clients, primarily in
the HealthTech, Retail & E-Commerce, Travel, Transportation
& Logistics, and Technology verticals.
- We continued to improve our client
diversification, including increases in the HealthTech and FinTech
and Retail and E-Commerce verticals.
- Added over 3,400 seats in high
margin nearshore and offshore locations.
Revenue
- Revenue increased 11.2% to $493.6
million, compared to $443.7 million in the prior year.
- Revenue growth was primarily driven
by strength in our HealthTech, Retail & E-Commerce, Travel and
Transportation & Logistics verticals.
- The Telecom vertical now represents
18.1% of our annual revenue, compared to 29.3% in the prior year,
as we continue diversifying our client base.
Net Income
- Net income increased to $23.0
million, compared to $2.8 million in the prior year. The
improvement was primarily due to the positive impact of the fair
value adjustment on share warrants, decreases in non-recurring
costs and share-based payments expense, and a deferred tax benefit,
partially offset by higher depreciation related to our capacity
expansion over the last two years.
- Net income margin increased to
4.7%, compared to 0.6% in the prior year.
- Non-GAAP adjusted net income
increased to $24.6 million, compared to $23.6 million in the prior
year (see Exhibit 1 for reconciliation).
- Non-GAAP adjusted net income margin
was 5.0%, compared to 5.3% in the prior year (see Exhibit 1 for
reconciliation).
Adjusted EBITDA
- Non-GAAP adjusted EBITDA increased
to $66.8 million, compared to $66.2 million in the prior year (see
Exhibit 2 for reconciliation).
- Non-GAAP adjusted EBITDA margin was
13.5%, compared to 14.9% in the prior year (see Exhibit 2 for
reconciliation).
Earnings Per Share
- Fully diluted earnings per share increased to $1.23, compared
to $0.15 in the prior year.
- Non-GAAP fully diluted adjusted earnings per share increased to
$1.32, compared to $1.28 in the prior year (see Exhibit 1 for
reconciliation).
Cash flow and balance sheet
- Cash flow from operations increased to $50.1 million, compared
to $25.9 million in the prior year. The increase was primarily
driven by improvements in operating results and working capital,
along with lower non-recurring expenses and cash taxes paid in
fiscal year 2022.
- Capex was $25.9 million compared to $20.8 million in the prior
year.
- Full year free cash flow increased to $24.2 million, compared
to $5.1 million in the prior year.
- Cash and cash equivalents were $48.8 million and availability
on our revolving credit facilities was $50.5 million as of June 30,
2022, compared to cash and cash equivalents of $57.8 million and
availability on our revolving credit facilities of $33.6 million as
of June 30, 2021.
- Total borrowings were $15.0 million as of June 30, 2022,
compared to total borrowings of $28.5 million as of June 30,
2021.
First Quarter and Fiscal Year 2023 Business
Outlook
- First quarter 2023 organic revenue of $124 million to $127
million with midpoint growth of 15.6% versus the prior year
quarter.
- First quarter 2023 adjusted EBITDA of $16.5 million to $18.5
million with midpoint margin of 13.9%.
- Fiscal year 2023 organic revenue between $545 million and $555
million with midpoint growth of 11.4% versus fiscal year 2022.
- Fiscal year adjusted EBITDA of $77 million to $79 million with
midpoint margin of 14.2%.
- Fiscal year 2023 capex of $18 million to $22 million.
“While we have not given quarterly guidance in the past, we are
choosing to provide guidance on a one-off basis for the first
quarter of fiscal year 2023 due to the volatility that exists in
today’s markets,” said CFO Karl Gabel.
Conference Call and Webcast Information
IBEX Limited will host a conference call and
live webcast to discuss its fourth quarter and full fiscal year
2022 financial results at 4:30 p.m. eastern time today, September
22, 2022. The conference e-call may be accessed by registering
here.
Live and archived webcasts can be accessed
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 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: Michael Darwal,
EVP, Deputy CFO, Investor Relations, ibex,
michael.darwal@ibex.coMedia Contact: Daniel
Burris, Senior Director PR and Communication, ibex,
daniel.burris@ibex.co
IBEX LimitedUnaudited
Consolidated Statements of Financial Position
|
|
|
|
|
|
|
June 30, |
|
June 30, |
US$ in
thousands |
2022 |
|
2021 |
|
|
Assets |
|
|
|
|
|
Current
assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
48,831 |
|
|
$ |
57,842 |
|
Trade and other receivables |
|
93,430 |
|
|
|
81,104 |
|
Due from related parties |
|
108 |
|
|
|
1,755 |
|
Warrant asset |
|
908 |
|
|
|
673 |
|
Total current
assets |
$ |
143,277 |
|
|
$ |
141,374 |
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
Property and equipment |
$ |
38,987 |
|
|
$ |
30,828 |
|
Right of use assets |
|
77,642 |
|
|
|
75,875 |
|
Goodwill |
|
11,832 |
|
|
|
11,832 |
|
Other intangible assets |
|
3,027 |
|
|
|
3,209 |
|
Warrant asset |
|
935 |
|
|
|
1,420 |
|
Investment in joint venture |
|
382 |
|
|
|
258 |
|
Deferred tax asset |
|
9,465 |
|
|
|
4,252 |
|
Other assets |
|
4,590 |
|
|
|
5,239 |
|
Total non-current
assets |
$ |
146,860 |
|
|
$ |
132,913 |
|
Total
assets |
$ |
290,137 |
|
|
$ |
274,287 |
|
|
|
|
|
|
|
Liabilities and
equity |
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Trade and other payables |
$ |
59,813 |
|
|
$ |
54,863 |
|
Deferred revenue |
|
8,600 |
|
|
|
4,077 |
|
Lease liabilities |
|
13,705 |
|
|
|
12,121 |
|
Borrowings |
|
14,689 |
|
|
|
26,716 |
|
Due to related parties |
|
2,595 |
|
|
|
4,275 |
|
Income tax payables |
|
2,965 |
|
|
|
3,663 |
|
Total current
liabilities |
$ |
102,367 |
|
|
$ |
105,715 |
|
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
Deferred revenue |
$ |
3,993 |
|
|
$ |
3,010 |
|
Lease liabilities |
|
76,004 |
|
|
|
71,878 |
|
Borrowings |
|
338 |
|
|
|
1,801 |
|
Deferred tax liability |
|
- |
|
|
|
86 |
|
Other non-current liabilities |
|
7,146 |
|
|
|
11,138 |
|
Total non-current
liabilities |
$ |
87,481 |
|
|
$ |
87,913 |
|
Total
liabilities |
$ |
189,848 |
|
|
$ |
193,628 |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Share capital |
$ |
2 |
|
|
$ |
2 |
|
Additional paid-in capital |
|
154,786 |
|
|
|
158,157 |
|
Other reserves |
|
33,191 |
|
|
|
33,180 |
|
Accumulated deficit |
|
(87,690 |
) |
|
|
(110,680 |
) |
Total
equity |
$ |
100,289 |
|
|
$ |
80,659 |
|
Total liabilities and
equity |
$ |
290,137 |
|
|
$ |
274,287 |
|
|
|
|
|
|
|
IBEX LimitedUnaudited
Consolidated Statements of Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Year ended June 30, |
US$ in
thousands, except share and per share amounts |
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenue |
$ |
123,707 |
|
|
$ |
108,878 |
|
|
$ |
493,572 |
|
|
$ |
443,662 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related costs |
|
85,428 |
|
|
|
73,189 |
|
|
|
342,139 |
|
|
|
296,799 |
|
Share-based payments |
|
549 |
|
|
|
517 |
|
|
|
1,851 |
|
|
|
4,521 |
|
Reseller commission and lead
expenses |
|
3,084 |
|
|
|
2,973 |
|
|
|
12,908 |
|
|
|
13,749 |
|
Depreciation and
amortization |
|
9,312 |
|
|
|
7,517 |
|
|
|
34,179 |
|
|
|
28,197 |
|
Fair value measurement of
share warrants |
|
1,298 |
|
|
|
(446 |
) |
|
|
(2,310 |
) |
|
|
9,732 |
|
Other operating costs |
|
17,955 |
|
|
|
19,154 |
|
|
|
75,005 |
|
|
|
76,865 |
|
Income from
operations |
$ |
6,081 |
|
|
$ |
5,974 |
|
|
$ |
29,800 |
|
|
$ |
13,799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance expenses |
$ |
(2,202 |
) |
|
$ |
(2,111 |
) |
|
|
(8,797 |
) |
|
|
(9,034 |
) |
Income before
taxation |
$ |
3,879 |
|
|
$ |
3,863 |
|
|
$ |
21,003 |
|
|
$ |
4,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit /
(expense) |
$ |
1,034 |
|
|
$ |
164 |
|
|
|
1,987 |
|
|
|
(1,918 |
) |
Net
income |
$ |
4,913 |
|
|
$ |
4,027 |
|
|
$ |
22,990 |
|
|
$ |
2,847 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not be
subsequently reclassified to profit or loss |
|
|
|
|
|
|
|
|
|
|
|
Actuarial loss on retirement
benefits |
$ |
287 |
|
|
$ |
(26 |
) |
|
$ |
287 |
|
|
$ |
(26 |
) |
Items that will be
subsequently reclassified to profit or loss |
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustment |
$ |
(890 |
) |
|
$ |
(108 |
) |
|
$ |
(1,771 |
) |
|
$ |
(122 |
) |
Cash flow hedges - changes in
fair value |
|
(202 |
) |
|
|
44 |
|
|
|
(323 |
) |
|
|
202 |
|
|
$ |
(805 |
) |
|
$ |
(90 |
) |
|
$ |
(1,807 |
) |
|
$ |
54 |
|
Total comprehensive
income |
$ |
4,108 |
|
|
$ |
3,937 |
|
|
$ |
21,183 |
|
|
$ |
2,901 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.27 |
|
|
$ |
0.22 |
|
|
$ |
1.26 |
|
|
$ |
0.16 |
|
Diluted |
$ |
0.26 |
|
|
$ |
0.21 |
|
|
$ |
1.23 |
|
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
18,147,541 |
|
|
|
18,172,372 |
|
|
|
18,232,399 |
|
|
|
17,649,446 |
|
Diluted |
|
18,555,133 |
|
|
|
18,874,132 |
|
|
|
18,701,068 |
|
|
|
18,384,921 |
|
IBEX LimitedUnaudited
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Year ended June 30, |
US$ in
thousands |
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Income before taxation |
$ |
3,879 |
|
|
$ |
3,863 |
|
|
$ |
21,003 |
|
|
$ |
4,765 |
|
Adjustments to reconcile income before taxation to net cash
provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
9,312 |
|
|
|
7,517 |
|
|
|
34,179 |
|
|
|
28,197 |
|
Amortization of warrant asset |
|
88 |
|
|
|
(160 |
) |
|
|
250 |
|
|
|
517 |
|
Foreign currency translation (gain) / loss |
|
(16 |
) |
|
|
(31 |
) |
|
|
(40 |
) |
|
|
198 |
|
Fair value measurement of share warrants |
|
1,298 |
|
|
|
(446 |
) |
|
|
(2,310 |
) |
|
|
9,732 |
|
Share-based payments |
|
549 |
|
|
|
517 |
|
|
|
1,851 |
|
|
|
4,521 |
|
Allowance of expected credit losses |
|
(63 |
) |
|
|
(45 |
) |
|
|
(761 |
) |
|
|
291 |
|
Share of profit from investment in joint venture |
|
(472 |
) |
|
|
(177 |
) |
|
|
(1,151 |
) |
|
|
(577 |
) |
(Gain) / loss on lease terminations |
|
(73 |
) |
|
|
121 |
|
|
|
(150 |
) |
|
|
(923 |
) |
Provision for defined benefit scheme |
|
159 |
|
|
|
34 |
|
|
|
278 |
|
|
|
228 |
|
Finance expenses |
|
2,202 |
|
|
|
2,111 |
|
|
|
8,797 |
|
|
|
9,034 |
|
Decrease / (increase) in trade and other receivables |
|
12,035 |
|
|
|
(2,969 |
) |
|
|
(9,223 |
) |
|
|
(13,327 |
) |
Decrease / (increase) in prepayments and other assets |
|
598 |
|
|
|
965 |
|
|
|
820 |
|
|
|
(405 |
) |
(Decrease) / increase in trade and other payables and other
liabilities |
|
1,391 |
|
|
|
(4,698 |
) |
|
|
7,588 |
|
|
|
(1,655 |
) |
Cash inflow from operations |
|
30,887 |
|
|
|
6,602 |
|
|
|
61,131 |
|
|
|
40,596 |
|
Interest paid |
|
(2,247 |
) |
|
|
(2,111 |
) |
|
|
(8,842 |
) |
|
|
(9,034 |
) |
Income taxes paid |
|
(791 |
) |
|
|
(2,713 |
) |
|
|
(2,160 |
) |
|
|
(5,665 |
) |
Net cash inflow from operating activities |
$ |
27,849 |
|
|
$ |
1,778 |
|
|
$ |
50,129 |
|
|
$ |
25,897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment |
$ |
(2,505 |
) |
|
$ |
(4,763 |
) |
|
$ |
(24,649 |
) |
|
$ |
(19,360 |
) |
Purchase of other intangible assets |
|
(202 |
) |
|
|
(189 |
) |
|
|
(1,270 |
) |
|
|
(1,463 |
) |
Dividend received from joint venture |
|
340 |
|
|
|
277 |
|
|
|
1,027 |
|
|
|
650 |
|
Net cash outflow from
investing activities |
$ |
(2,367 |
) |
|
$ |
(4,675 |
) |
|
$ |
(24,892 |
) |
|
$ |
(20,173 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from line of credit |
$ |
12,900 |
|
|
$ |
24,767 |
|
|
$ |
88,117 |
|
|
$ |
116,026 |
|
Repayments of line of credit |
|
(24,500 |
) |
|
|
(21,789 |
) |
|
|
(99,227 |
) |
|
|
(115,189 |
) |
Proceeds from borrowings |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,714 |
|
Repayment of borrowings |
|
(1,409 |
) |
|
|
(1,757 |
) |
|
|
(6,834 |
) |
|
|
(11,080 |
) |
Payment of related party loans |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,614 |
) |
Net proceeds from initial public offering |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
63,107 |
|
Payment of listing related costs |
|
- |
|
|
|
(22 |
) |
|
|
- |
|
|
|
(1,074 |
) |
Exercise of options |
|
18 |
|
|
|
- |
|
|
|
35 |
|
|
|
28 |
|
Proceeds from lease obligations |
|
- |
|
|
|
- |
|
|
|
1,417 |
|
|
|
- |
|
Principal payments on lease obligations |
|
(3,524 |
) |
|
|
(2,845 |
) |
|
|
(13,379 |
) |
|
|
(17,489 |
) |
Dividend distribution |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,000 |
) |
Purchase of treasury shares |
|
(1,104 |
) |
|
|
- |
|
|
|
(3,406 |
) |
|
|
- |
|
Net cash (outflow) /
inflow from financing activities |
$ |
(17,619 |
) |
|
$ |
(1,646 |
) |
|
$ |
(33,277 |
) |
|
$ |
30,429 |
|
Effects of exchange rate difference on cash and cash
equivalents |
|
(482 |
) |
|
|
(167 |
) |
|
|
(971 |
) |
|
|
(181 |
) |
Net increase / (decrease) in cash and cash equivalents |
$ |
7,381 |
|
|
$ |
(4,710 |
) |
|
$ |
(9,011 |
) |
|
$ |
35,972 |
|
Cash and cash equivalents at beginning of the period |
$ |
41,450 |
|
|
$ |
62,552 |
|
|
$ |
57,842 |
|
|
$ |
21,870 |
|
Cash and cash
equivalents at end of the period |
$ |
48,831 |
|
|
$ |
57,842 |
|
|
$ |
48,831 |
|
|
$ |
57,842 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
items |
|
|
|
|
|
|
|
|
|
|
|
New leases |
|
5,100 |
|
|
|
2,389 |
|
|
|
24,072 |
|
|
|
31,790 |
|
Change in accounts payable related to fixed assets |
|
475 |
|
|
|
- |
|
|
|
1,631 |
|
|
|
- |
|
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
before the effect of the following items: non-recurring expenses
(including severance expense, 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 to adjusted net income for the periods
presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
Year ended June 30, |
|
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 |
$ |
4,913 |
|
$ |
0.27 |
|
$ |
4,027 |
|
|
$ |
0.22 |
|
$ |
22,990 |
|
$ |
1.26 |
|
$ |
2,847 |
|
|
$ |
0.16 |
|
Net income
margin |
|
4.0 |
% |
|
|
|
3.7 |
% |
|
|
|
|
4.7 |
% |
|
|
|
0.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-recurring expenses |
|
1,502 |
|
|
0.08 |
|
|
2,364 |
|
|
|
0.13 |
|
|
3,256 |
|
|
0.18 |
|
|
10,203 |
|
|
|
0.58 |
|
Amortization of warrant
asset |
|
88 |
|
|
0.00 |
|
|
(160 |
) |
|
|
(0.01 |
) |
|
250 |
|
|
0.02 |
|
|
517 |
|
|
|
0.03 |
|
Foreign currency translation
loss / (gain) |
|
(16 |
) |
|
(0.00 |
) |
|
(31 |
) |
|
|
(0.00 |
) |
|
(40 |
) |
|
(0.00 |
) |
|
198 |
|
|
|
0.01 |
|
Fair value measurement of
share warrants |
|
1,298 |
|
|
0.07 |
|
|
(446 |
) |
|
|
(0.02 |
) |
|
(2,310 |
) |
|
(0.13 |
) |
|
9,732 |
|
|
|
0.55 |
|
Share-based payments |
|
549 |
|
|
0.03 |
|
|
517 |
|
|
|
0.03 |
|
|
1,851 |
|
|
0.10 |
|
|
4,521 |
|
|
|
0.26 |
|
(Gain) / loss on lease
terminations |
|
(73 |
) |
|
(0.00 |
) |
|
121 |
|
|
|
0.01 |
|
|
(150 |
) |
|
(0.01 |
) |
|
(923 |
) |
|
|
(0.05 |
) |
Total
adjustments |
$ |
3,348 |
|
$ |
0.18 |
|
$ |
2,365 |
|
|
$ |
0.13 |
|
$ |
2,857 |
|
$ |
0.16 |
|
$ |
24,248 |
|
|
$ |
1.37 |
|
Tax impact of
adjustments(a) |
|
(383 |
) |
|
(0.02 |
) |
|
(618 |
) |
|
|
(0.03 |
) |
|
(1,226 |
) |
|
(0.07 |
) |
|
(3,519 |
) |
|
|
(0.20 |
) |
Adjusted net
income |
$ |
7,878 |
|
$ |
0.43 |
|
$ |
5,774 |
|
|
$ |
0.32 |
|
$ |
24,621 |
|
$ |
1.35 |
|
$ |
23,576 |
|
|
$ |
1.34 |
|
Adjusted net income
margin |
|
6.4 |
% |
|
|
|
5.3 |
% |
|
|
|
|
5.0 |
% |
|
|
|
5.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic |
|
18,147,541 |
|
|
0.43 |
|
|
18,172,372 |
|
|
|
0.32 |
|
|
18,232,399 |
|
|
1.35 |
|
|
17,649,446 |
|
|
|
1.34 |
|
Dilutive impact of share-based
compensation and the Amazon warrant |
|
407,592 |
|
|
(0.01 |
) |
|
701,760 |
|
|
|
(0.01 |
) |
|
468,669 |
|
|
(0.03 |
) |
|
735,475 |
|
|
|
(0.06 |
) |
Weighted average shares outstanding - diluted
and adjusted fully diluted earnings per share |
|
18,555,133 |
|
$ |
0.42 |
|
|
18,874,132 |
|
|
$ |
0.31 |
|
|
18,701,068 |
|
$ |
1.32 |
|
|
18,384,921 |
|
|
$ |
1.28 |
|
(a) The tax impact of each
adjustment is calculated using the effective tax rate in the
relevant jurisdictions.
EXHIBIT 2: EBITDA and Adjusted
EBITDAWe define “EBITDA” as net income before the effect
of the following items: finance expenses (including finance expense
related to right-of-use lease liabilities), income tax (benefit) /
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 severance expense, 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 to adjusted
EBITDA for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Year ended June 30, |
US$ in
thousands, unaudited |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net income |
|
$ |
4,913 |
|
|
$ |
4,027 |
|
|
$ |
22,990 |
|
|
$ |
2,847 |
|
Net income
margin |
|
|
4.0 |
% |
|
|
3.7 |
% |
|
|
4.7 |
% |
|
|
0.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance expenses |
|
|
2,202 |
|
|
|
2,111 |
|
|
|
8,797 |
|
|
|
9,034 |
|
Income tax (benefit) /
expense |
|
|
(1,034 |
) |
|
|
(164 |
) |
|
|
(1,987 |
) |
|
|
1,918 |
|
Depreciation and
amortization |
|
|
9,312 |
|
|
|
7,517 |
|
|
|
34,179 |
|
|
|
28,197 |
|
EBITDA |
|
$ |
15,393 |
|
|
$ |
13,491 |
|
|
$ |
63,979 |
|
|
$ |
41,996 |
|
Non-recurring expenses |
|
|
1,502 |
|
|
|
2,364 |
|
|
|
3,256 |
|
|
|
10,203 |
|
Amortization of warrant
asset |
|
|
88 |
|
|
|
(160 |
) |
|
|
250 |
|
|
|
517 |
|
Foreign currency translation
loss / (gain) |
|
|
(16 |
) |
|
|
(31 |
) |
|
|
(40 |
) |
|
|
198 |
|
Fair value measurement of
share warrants |
|
|
1,298 |
|
|
|
(446 |
) |
|
|
(2,310 |
) |
|
|
9,732 |
|
Share-based payments |
|
|
549 |
|
|
|
517 |
|
|
|
1,851 |
|
|
|
4,521 |
|
(Gain) / loss on lease
terminations |
|
|
(73 |
) |
|
|
121 |
|
|
|
(150 |
) |
|
|
(923 |
) |
Adjusted
EBITDA |
|
$ |
18,741 |
|
|
$ |
15,856 |
|
|
|
66,836 |
|
|
|
66,244 |
|
Adjusted EBITDA margin |
|
|
15.1 |
% |
|
|
14.6 |
% |
|
|
13.5 |
% |
|
|
14.9 |
% |
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 |
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
27,849 |
|
$ |
1,778 |
|
|
$ |
50,129 |
|
$ |
25,897 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Cash capital expenditures |
|
2,707 |
|
|
4,952 |
|
|
|
25,919 |
|
|
20,823 |
Free cash
flow(1) |
$ |
25,142 |
|
$ |
(3,174 |
) |
|
$ |
24,210 |
|
$ |
5,074 |
(1) Excluded from free cash
flow are the principal portion of right-of-use lease payments of
$3,524 and $2,720 for the quarter ended and $13,254 and $10,783 for
the years ended June 30, 2022 and 2021, respectively. We believe it
is useful to consider these payments when analyzing free cash flow
as these amounts directly relate to revenue generating assets used
in operations.
EXHIBIT 4: Net debtWe define
“net debt” as total debt less cash and cash equivalents.
|
|
|
|
|
|
|
|
June 30, |
|
|
June 30, |
US$ in
thousands, unaudited |
|
2022 |
|
|
2021 |
Borrowings |
|
|
|
|
|
Current |
$ |
14,689 |
|
$ |
26,716 |
Non-current |
|
338 |
|
|
1,801 |
|
$ |
15,027 |
|
$ |
28,517 |
Leases |
|
|
|
|
|
Current |
$ |
13,705 |
|
$ |
12,121 |
Non-current |
|
76,004 |
|
|
71,878 |
|
$ |
89,709 |
|
$ |
83,999 |
Total debt |
$ |
104,736 |
|
$ |
112,516 |
Cash and cash equivalents |
|
48,831 |
|
|
57,842 |
Net debt |
$ |
55,905 |
|
$ |
54,674 |
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