First Quarter Highlighted by positive Adjusted
EBITDA benefiting from 2023 restructuring
TORONTO, May 30, 2024
/CNW/ - Pluribus Technologies Corp. (TSXV: PLRB) ("Pluribus"
or the "Company"), a growing acquiror of small, profitable
technology companies, today announced its financial results for the
first quarter ended March 31, 2024.
The Company's consolidated financial statements and accompanying
notes for the quarters ended March 31,
2024 and 2023 are available under Pluribus' profile on
SEDAR+ (www.sedarplus.ca).
All dollar amounts are in thousands of Canadian dollars unless
otherwise noted. Certain metrics, including Adjusted EBITDA, are
non-IFRS measures (see Non-IFRS Measures below).
"We achieved positive Adjusted EBITDA in Q1 2024, driven by a
perpetual license sale in the UK and the benefits from our 2023
cost restructuring," stated Richard
Adair, CEO of Pluribus. "Our current priority is to continue
the strategic review and explore ways to enhance the company's
capital structure. The sale of HealthTech in May was a promising
initial move."
Selected Financial and Business Highlights for the First
Quarter
- On May 10, 2024, the Company
closed the sale of substantially all of the assets, tangible and
intangible, of its wholly-owned subsidiary, TeleMED Diagnostic
Management Inc., and all of the issue and outstanding fully-diluted
shares of its wholly-owned subsidiary, TDM Telehealth Technology
Ltd. (together "HealthTech") (the "Sale
Transaction"). The Sale Transaction closed on May 10, 2024 for an aggregate purchase price of
$5,070, and certain proceeds were
used to pay down Bank debt. The financial results of HealthTech are
excluded from reported figures below, unless otherwise stated as
discontinued operations.
- Revenue for the quarter increased by $810 or 9% from $8,729 in 2023 to $9,539 in 2024. The increase in revenue was
primarily driven by eLearning ($1,120) due to a perpetual license sale at
SkilSure ($1,109), offset by a
decline in eCommerce revenue ($359).
- Adjusted EBITDA1 for the quarter increased by
$1,643, or 241% from $682 in 2023 to $2,325 in 2024 due to the increase in revenue and
lower cost base following the restructuring undertaken by the
Company in 2023.
- The Company incurred a net loss of $1,812 for the quarter ended March 31, 2024 compared to a net loss of
$1,885 for the comparable period in
2023. This is primarily due to the increase in Adjusted EBITDA
($1,643) offset by the increase in
acquisition costs ($585), the loss on
revaluation of contingent consideration ($480), and the increase in income taxes
($362).
- Cash on hand at March 31, 2024
was $1,504 compared with $1,279 on December 31,
2023. The Company signed a forbearance agreement with
National Bank in January 18, 2024.
The agreement was subsequently amended in March 2024, April
2024 and May 2024.
1
Adjusted EBITDA is a non-IFRS measure as described in the Non-IFRS
Measures section of this news release. These measures are not
recognized measures under IFRS, do not have a standardized meaning
under IFRS and are therefore unlikely to be comparable to similar
measures presented by other companies.
|
Results of Operations
(000's)
|
Three
Months
|
For the period ended
March 31,
|
2024
|
2023
|
Var
|
Var
|
|
$
|
$
|
$
|
%
|
|
|
|
|
|
Revenue
|
9,539
|
8,729
|
810
|
9 %
|
|
|
|
|
|
Gross Profit
|
6,763
|
5,420
|
1,343
|
25 %
|
Operating
Expenses
|
4,438
|
4,738
|
(300)
|
-6 %
|
Non-Operational
Expenses
|
3,744
|
2,536
|
854
|
34 %
|
Net Loss from
continuing operations after tax
|
(1,812)
|
(1,885)
|
73
|
-4 %
|
Net Income from
discontinued operations after tax
|
309
|
139
|
170
|
122 %
|
|
|
|
|
|
Adjusted
EBITDA
|
2,325
|
682
|
1,643
|
241 %
|
Adjusted EBITDA
%
|
24.4 %
|
7.8 %
|
|
|
Outlook
The first quarter of 2024 saw the full impact of the 2023
restructuring completed to better align our cost structure to the
Company's current revenue levels.
The Company's Special Committee continues its previously
communicated strategic review to explore alternatives to optimize
its capital structure including reviewing the remaining verticals
to determine which are core and non-core based on their growth
potential and looking at refinancing opportunities.
Management determined that the growth opportunities in the
HealthTech vertical were limited without additional investment and
deemed it to be non-core. Management was able to more than double
EBITDA since the acquisition of HealthTech in December 2019 and was able to achieve an
attractive return on invested capital. The capital tied up in
HealthTech was better redeployed to reduce leverage on the balance
sheet.
Conference Call Details
Pluribus' management team will host a conference call to discuss
its fiscal 2024 first quarter financial results on Friday, May 31, 2024.
Date: Friday, May 31,
2024
Time: 8:30 am EDT
To join the conference call without operator assistance, you
may register and enter your phone number at
https://emportal.ink/3yEGtPJ to receive an instant automated
call back.
Dial-In Numbers: (416) 764-8650 or (888) 664-6383
Webcast: Available on the Events & Presentations
page of the Company's investor website
Replay: (416) 764-8677 or (888) 390-0541 (playback
code: 880387 #) – available until midnight (EDT) on June 7, 2024
About Pluribus Technologies Corp.
Pluribus is a technology company that is a value-based acquirer
and operator of small, profitable business-to-business technology
companies in a range of verticals and industries. Pluribus provides
its acquisitions access to experienced sales and marketing
resources, strategic partnership opportunities, a diverse portfolio
of customers in different geographical markets and enabling
technologies to create new revenue streams and provide the
opportunity for these companies to grow in their respective
markets. When market conditions are conducive to raising capital at
reasonable costs, Pluribus focuses on rapidly acquiring and
integrating new acquisitions to accelerate growth. When the
environment does not support this, Pluribus focuses on implementing
strategies to maximize organic growth and increase cashflow from
operations in its existing portfolio companies. For more
information, please visit: pluribustechnologies.com
Non-IFRS Measures
The Company uses non-IFRS measures to assess its operating
performance. Securities regulations require that companies caution
readers that earnings and other measures adjusted to a basis other
than IFRS do not have standardized meanings and are unlikely to be
comparable to similar measures used by other companies.
Accordingly, they should not be considered in isolation. The
Company uses Adjusted EBITDA as a measure of operating performance.
Management uses Adjusted EBITDA to evaluate operating performance
as it excludes amortization of software and intangibles (which is
an accounting allocation of the cost of software and intangible
assets arising on acquisition), any impact of finance and tax
related activities, asset depreciation, foreign exchange gains and
losses, other income, restructuring and transition costs primarily
related to acquisitions and other one-time non-recurring
transactions.
Reconciliation of Non-IFRS Measures
The Company uses the non-IFRS measure Adjusted EBITDA to
evaluate performance. The following table presents the
reconciliation from net income (loss) to Adjusted EBITDA for the
three months ended March 31,
2024.
|
Three
Months
|
For the period ended
March 31,
|
2024
|
2023
|
Var
|
Var
|
|
$
|
$
|
$
|
%
|
|
|
|
|
|
Total
Revenue
|
9,539
|
8,729
|
810
|
9 %
|
|
|
|
|
|
Net income (loss) for
the period
|
(1,812)
|
(1,885)
|
73
|
-4 %
|
|
|
|
|
|
Acquisition
costs
|
1,075
|
490
|
585
|
119 %
|
Amortization and
depreciation
|
1,244
|
1,335
|
(91)
|
-7 %
|
Share-based
compensation
|
36
|
156
|
(120)
|
-77 %
|
Loss on revaluation
of contingent consideration
|
480
|
—
|
480
|
n/a
|
Finance expense,
net
|
857
|
726
|
131
|
18 %
|
Foreign exchange
loss (gain)
|
52
|
(171)
|
223
|
-130 %
|
Income tax
expense
|
393
|
31
|
362
|
1168 %
|
|
|
|
|
|
Total
Adjustments
|
4,137
|
2,567
|
1,570
|
61 %
|
|
|
|
|
|
Adjusted
EBITDA
|
2,325
|
682
|
1,643
|
241 %
|
|
|
|
|
|
Adjusted EBITDA
%
|
24.4 %
|
7.8 %
|
|
|
Forward-Looking Information
Certain information in this press release constitutes
forward-looking statements under applicable securities laws. Any
statements that are contained in this news release that are not
statements of historical fact may be deemed to be forward-looking
statements. Forward-looking information in this press release
includes, but is not limited to, statements with respect to the
business plans of the Company, including the successful completion
of future acquisitions, management's expectation on the growth,
profitability and performance of its current and future
acquisitions, the Company's ability to continue acquiring
business-to-business technology companies at reasonable prices, the
Company's ability to grow its portfolio companies into significant
organizations, the benefits from the sale of HealthTech and the
Company's ability to achieve a positive transaction pursuant to its
strategic review process. Forward-looking statements are often
identified by terms such as "may", "should", "anticipate",
"expect", "potential", "believe", "intend" or negatives of these
terms and similar expressions.
Forward-looking statements are based on certain assumptions,
including the Company's ability to complete acquisitions on
favourable terms; the Company's ability to manage a complex
portfolio of companies effectively; the Company's
ability to scale its management team to support its growth; the
Company's ability to raise sufficient financing to continue its
acquisition strategy; the Company's ability to achieve positive
results pursuant to its strategic review process. Other assumptions
include industry trends, the availability of growth opportunities,
and general business, economic, competitive, political, regulatory
and social uncertainties will not prevent the Company from
conducting its business. While the Company considers these
assumptions to be reasonable based on information currently
available, they are inherently subject to significant business,
economic and competitive uncertainties and contingencies and they
may prove to be incorrect. Forward-looking information speaks only
to such assumptions as of the date of this release.
Forward-looking statements also necessarily involve known and
unknown risks, including without limitation, risks associated with
general economic conditions, including the COVID-19 pandemic,
adverse industry events, marketing costs, loss of markets, future
legislative and regulatory developments, the inability to access
sufficient capital on favourable terms, the Company's limited
operating history; ability to complete favourable acquisitions; the
technology industry in Canada and
internationally, income tax and regulatory matters, the ability of
the Company to execute its business strategies, including the
ability manage a complex portfolio of companies effectively,
competition, currency and interest rate fluctuations, and other
risks.
Readers are cautioned that the foregoing is not exhaustive.
Readers are further cautioned not to place undue reliance on
forward-looking statements as there can be no assurance that the
plans, intentions or expectations upon which they are placed will
occur. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ from those anticipated.
Forward-looking statements are not guarantees of future
performance. The purpose of forward-looking information is to
provide the reader with a description of management's expectations,
and such forward-looking information may not be appropriate for any
other purpose. Except as required by law, the Company disclaims any
obligation to update or revise any forward-looking statements,
whether as a result of new information, events or otherwise.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this press
release.
Contact:
Richard Adair
Chief Executive Officer
Pluribus Technologies Corp.
1 (800) 851-9383
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SOURCE Pluribus Technologies Corp.