KELOWNA,
BC, Aug. 10, 2023 /CNW/ - Decisive Dividend
Corporation (TSXV: DE) (the "Company" or "Decisive") today reported
its financial results for the three and six months ended
June 30, 2023.
Highlights of the Company's financial performance in Q2
2023 include the following:
- Consolidated sales increased 32% to $30.7 million in Q2 2023 compared to $23.2 million in Q2 2022.
- The quarterly sales increase brings consolidated sales for the
first half of 2023 to $61.6 million,
an increase of $19.7 million, or 47%,
relative to the first half of 2022.
- Generated a record $5.3 million
in Adjusted EBITDA* in Q2 2023, an increase of 57% relative to Q2
2022.
- Adjusted EBITDA* in the first half of 2023 of $10.2 million represents a 80% increase compared
to the first half of 2022.
- Generated net profit of $1.2
million, or $0.07 per share,
in Q2 2023, an increase of $0.3
million, consistent on a per share basis compared to Q2
2022.
- In the first half of 2023, generated net profit of $3.2 million, or $0.20 per share, an increase of $1.8 million, or $0.09 per share compared to the first half of
2022.
- Per share monthly dividend increased twice in 2023. First in
March to $0.035 from $0.030 previously, and again to $0.040 effective for the August dividend payment.
Represents an aggregate increase of 33% in the annualized
dividend.
- Balance sheet strength and flexibility. Conservative leverage
ratio of 1.5 times debt to Adjusted EBITDA ratio as of June 30, 2023, with $14.0
million available on the revolving term acquisition facility
and $7.3 million available on the
revolving term operating facility.
Selected Financial Highlights:
The following are selected financial highlights of Decisive for
the three and six months ended June 30,
2023. All amounts are expressed in Canadian dollars. The
Company's Unaudited - interim condensed consolidated financial
statements as well as its management's discussion and analysis
("MD&A") are posted on SEDAR and on Decisive's website
(www.decisivedividend.com).
(Stated in thousands
of dollars, except per share amounts)
|
|
For the three months
ended
|
|
For the six months
ended
|
June 30,
|
|
2023
|
|
|
2022
|
|
Change
|
|
|
2023
|
|
|
2022
|
|
Change
|
Sales
|
$
|
30,706
|
|
$
|
23,189
|
|
32 %
|
|
$
|
61,559
|
|
$
|
41,878
|
|
47 %
|
Gross profit
|
|
11,499
|
|
|
7,756
|
|
48 %
|
|
|
22,620
|
|
|
13,954
|
|
62 %
|
Gross profit
%
|
|
37 %
|
|
|
33 %
|
|
|
|
|
37 %
|
|
|
33 %
|
|
|
Adjusted
EBITDA*
|
|
5,266
|
|
|
3,344
|
|
57 %
|
|
|
10,159
|
|
|
5,650
|
|
80 %
|
Per share
basic
|
|
0.31
|
|
|
0.27
|
|
15 %
|
|
|
0.63
|
|
|
0.46
|
|
38 %
|
Profit before
tax
|
|
1,911
|
|
|
1,245
|
|
53 %
|
|
|
4,595
|
|
|
2,060
|
|
123 %
|
Profit
|
|
1,201
|
|
|
884
|
|
36 %
|
|
|
3,167
|
|
|
1,396
|
|
127 %
|
Per share
basic
|
|
0.07
|
|
|
0.07
|
|
0 %
|
|
|
0.20
|
|
|
0.11
|
|
82 %
|
Per share
diluted
|
|
0.06
|
|
|
0.07
|
|
-14 %
|
|
|
0.18
|
|
|
0.11
|
|
64 %
|
Free cash
flow*
|
|
3,080
|
|
|
1,990
|
|
55 %
|
|
|
6,058
|
|
|
3,275
|
|
85 %
|
Per share
basic
|
|
0.18
|
|
|
0.16
|
|
13 %
|
|
|
0.38
|
|
|
0.27
|
|
42 %
|
Free cash flow less
maintenance capital*
|
|
2,729
|
|
|
1,698
|
|
61 %
|
|
|
5,218
|
|
|
2,756
|
|
89 %
|
Per share
basic
|
|
0.16
|
|
|
0.14
|
|
18 %
|
|
|
0.33
|
|
|
0.22
|
|
45 %
|
Dividends
declared
|
|
1,829
|
|
|
1,132
|
|
62 %
|
|
|
3,255
|
|
|
2,044
|
|
59 %
|
Per share
basic
|
|
0.11
|
|
|
0.09
|
|
18 %
|
|
|
0.20
|
|
|
0.17
|
|
22 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the trailing twelve
month period ended June 30,
|
|
2023
|
|
|
2022
|
|
|
Dividend payout
ratio*
|
|
|
|
|
|
|
|
|
|
59 %
|
|
|
86 %
|
|
|
* Adjusted EBITDA, Free Cash Flow,
Free Cash Flow Less Maintenance Capital, and Dividend Payout Ratio
are not recognized financial measures under International Financial
Reporting Standards (IFRS) and therefore may not be comparable to
similar measures presented by other issuers, but are used by
management to assess the performance of the Company and its
segments. A reader should not place undue reliance on any
Non-IFRS financial measures. See "Non-IFRS Financial Measures"
later in this press release for detailed descriptions of these
measures and reconciliations of applicable IFRS measures to
non-IFRS measures.
Q2 2023 Highlights:
- Consolidated sales increased 32% to $30.7 million compared to $23.2 million in Q2 2022.
- Consolidated gross profit increased 48% to $11.5 million from $7.8 million in Q2 2022.
- Consolidated gross profit percentages increased to 37% from 33%
in Q2 2022.
- Consolidated Adjusted EBITDA* increased to $5.3 million, up 57% relative to Q2
2022.
- In the finished product segment, the two businesses acquired
since Q2 2022, ACR and Capital I, each contributed meaningfully to
the overall 37% increase in segment sales in the
quarter. Traditional seasonality more than offset pricing
increases for Blaze King and overall sales decreased 5% relative to
Q2 2022. Slimline sales decreased 25% compared to Q2 2022, and
Marketing Impact sales were consistent with Q2 2022.
- In the component manufacturing segment, newly acquired
businesses Micon and Procore contributed to the overall 26%
increase in segment sales in the quarter. Additionally, Unicast
sales increased 9%, Hawk sales were consistent with lower seasonal
volumes, and Northside sales
increased 31% compared to Q2 2022. Margin enhancing activities led
to increased gross profit percentages in the quarter for the
segment, driving the above noted consolidated gross profit
percentage increase as well.
- Consolidated net profit in the quarter was $1.2 million, or $0.07 per share, compared to $0.9 million, or $0.07 per share, in Q2 2022.
- Consolidated free cash flow* increased to $3.1 million, up 55% relative to Q2 2022.
2023 Year-to-Date Highlights:
- Consolidated sales increased 47% to $61.6 million, compared to $41.9 million in the first half of 2022.
- Consolidated gross profit increased 62% to $22.6 million from $14.0
million in the first half of 2022.
- Consolidated gross profit percentages increased to 37% from 33%
in the first half of 2022, which was driven primarily by
margin enhancing activities in the component manufacturing
segment.
- Consolidated Adjusted EBITDA* increased to $10.2 million, up 80% relative to the first half
of 2022, driven by the above noted increases in sales and gross
profit.
- The five businesses acquired from the beginning of 2022 to the
end of June 2023, contributed
meaningfully to the increased first half consolidated sales.
- Despite seasonality negatively impacting sales for Blaze King
and Hawk during Q2 2023 and lower year-over-year Slimline sales, on
an aggregate basis, the five businesses owned prior to 2022
experienced organic revenue growth of 13% in the first half of
2023, which highlights the benefit of diversification in the
portfolio.
- Sales in the finished product segment increased by $13.0 million, or 58%, relative to the first half
of 2022.
- Sales for the component manufacturing segment increased by
$6.7 million, or 34%, relative to the
first half of 2022.
- Consolidated net profit was $3.2 million, or $0.20 per share, an increase of $1.8 million, or $0.09 per share compared to the first half of
2022.
- Consolidated free cash flow* increased to $6.1 million, up 84% relative to the first
half of 2022.
Jeff Schellenberg, Chief
Executive Officer of Decisive, noted:
"Q2 marks the eighth straight quarter where Decisive has had
record-setting Adjusted EBITDA. From a value creation
perspective, our per share Adjusted EBITDA and Free Cash Flow were
very strong, growing by 15% and 19% on a year-over-year basis even
while we saw the return of higher degrees of seasonality in the
business and some productivity and demand challenges in our
business. The diversified nature of the portfolio of
businesses where demand and operational efficiency improvements in
different businesses support the overall enhanced performance of
the business, even in the face of some challenges, is very
encouraging to see. The gross margin expansion from 33% in Q2
2022 to 37% in Q2 2023, is further evidence of the steps made to
drive profitability in our subsidiaries, which we continue
to view as a key driver of our future growth with a focus on
continuing to invest in our portfolio businesses to support
increase profitability growth while acquiring new portfolio
businesses that positively contribute to overall profitability as
well.
The performance we saw from the three new businesses we added
in April 2023 (Micon Industries,
Procore International Radiators and Capital I) is extremely
positive, as is the step we have taken to hire Brian McDonald as the General Manager of Micon
Industries and Procore International Radiators, which addresses the
leadership transition steps that needed to be taken in those
businesses. Further, we are thrilled with the deal we were able to
complete early in Q3 2023, with the acquisition of Innovative
Heating Technologies. This transaction significantly enhances our
cash flow generating capability, profitability and diversification
while opening the door to several potential synergies with existing
businesses. We expect that this transaction will each be
immediately accretive to our shareholders. In completing this
acquisition, our pro forma Adjusted EBITDA for the trailing
twelve months ended June 30, 2023 is
over $30 million (See "Information
Relating to Acquisitions" later in this press release), which is
66% higher than our reported Adjusted EBITDA and 35% higher than
our reported Adjusted EBITDA per share.
With the completion of this acquisition, we have completed
six acquisitions in fifteen months, more than doubling the number
of businesses in our portfolio in that span. The most recent
transaction was funded through our upsized acquisition
facility and the proceeds of the warrant exercise by Waratah
Capital Advisors, keeping us in-line with our 50/50 debt and equity
acquisition funding target. Further, our pipeline of acquisition
opportunities remains strong, even after completing these six
transactions and we are committed to continue pursuing
opportunities to support the many legacy-minded exiting business
owners who lack a succession plan and are looking for new owner for
their business that will preserve and build on the legacy they have
created.
Finally, we were very pleased to have announced an
increase in the dividend at the end of Q2, on the back of our
ongoing operating results and demand outlook for our subsidiaries.
The monthly dividend was increased to $0.04 per common share effective August 2023, up from the $0.035 per share per month which was set in
April 2023, supported by the strong
free cash flow per share generated by our
subsidiaries."
Outlook:
Decisive remains focused on continuing to drive performance in
line with its overall strategic objectives including:
- Executing on the growth strategy with the acquisition of six
businesses in a 15-month span.
- Building a strong and growing acquisition prospect
pipeline.
- Assembling a diversified portfolio of high quality, high gross
margin product manufacturing businesses to support profitability
growth even through periods of seasonality or lower demand in any
individual business.
- Optimizing operations, with an emphasis on enhancing
margins.
- Increasing production capacity and improving operational
efficiency, with an aggregate $1.8
million of growth capital expenditures* on manufacturing
equipment made over the last 24 months and utilization of
third-party manufacturing partners.
- Providing sustainable and growing dividends to shareholders,
with two increases of the monthly dividend in 2023, representing an
aggregate increase of 33% in the annualized dividend from
$0.36 per share to $0.48 per share.
- Maintaining balance sheet flexibility with conservative
leverage ratios and ample availability on the Company's revolving
term operating and acquisition facilities.
- Bolstering Decisive's resilience through a variety of economic
conditions by aligning the business with supportive shareholders
and lenders, and further diversifying the portfolio via acquisition
and organic growth.
Conference Call
Decisive will host a conference call for interested parties on
Friday, August 11, 2023, at
8:00am Pacific Time (11:00am Eastern Time) to discuss the Company's Q2
2023 results. The call will be hosted by Jeff Schellenberg, Decisive's Chief Executive
Officer and Rick Torriero, Chief
Financial Officer.
Details for those who wish to participate in this conference
call are as follows:
Conference Call Details:
on Friday, August 11, 2023, at
8:00am Pacific Time / 11:00am Eastern Time
(please call 10 minutes ahead of time)
Participant Information:
Dial in number – Canada /
United States (toll free):
1-800-319-4610
Dial in number – International: +1-604-638-5340
Replay Information (replay available until September 8, 2023):
Replay number – Canada /
United States (toll free):
1-800-319-6413
Replay number – International: +1-604-638-9010
Replay access code 0307
About Decisive Dividend Corporation
Decisive Dividend Corporation is an acquisition-oriented
company, focused on opportunities in manufacturing. The Company's
purpose is to be the sought-out choice for exiting legacy-minded
business owners, while supporting the long-term success of the
businesses acquired, and through that, creating sustainable and
growing shareholder returns. The Company uses a disciplined
acquisition strategy to identify already profitable,
well-established, high quality manufacturing companies that have a
sustainable competitive advantage, a focus on non-discretionary
products, steady cash flows, growth potential and established,
strong leadership.
For more information on Decisive, or to sign up for email
notifications of Company press releases, please visit
www.decisivedividend.com.
Cautionary Statements
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Information Relating to Acquisitions
This press release contains certain information (including
historical financial information) relating to acquisitions
completed by Decisive in the last twelve months as well as
pre-acquisition historical financial information relating to the
acquired businesses. The pre-acquisition historical financial
information relating to the acquired businesses has not been
audited and is based upon information provided to Decisive by the
acquired businesses, and their respective management and previous
shareholders.
The table below sets forth the pro forma combined financial
information of Decisive and the applicable pre-acquisition periods
for the acquisitions completed in the last twelve months:
(Stated in thousands
of dollars, except per share amounts)
|
|
|
|
|
|
Add
|
|
|
|
|
|
|
|
|
|
pre-acquisition
|
|
|
|
|
|
|
|
|
|
|
|
periods for
|
|
|
|
|
|
|
|
|
|
|
|
acquired
|
|
|
|
|
|
|
|
|
Decisive(1)
|
businesses(2)
|
|
|
Pro forma
|
For the trailing twelve
month period ended June 30, 2023
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(unaudited)
|
Sales
|
|
|
|
$
|
118,270
|
|
$
|
37,839
|
|
$
|
156,109
|
Gross profit
|
|
|
|
|
41,521
|
|
|
18,006
|
|
|
59,527
|
Gross profit
%
|
|
|
|
|
35 %
|
|
|
48 %
|
|
|
38 %
|
Profit
|
|
|
|
|
5,855
|
|
|
9,074
|
|
|
14,929
|
Per share
basic
|
|
|
|
|
0.39
|
|
|
|
|
|
0.82
|
Adjusted
EBITDA*
|
|
|
|
|
18,177
|
|
|
12,018
|
|
|
30,195
|
Per share
basic
|
|
|
|
|
1.22
|
|
|
|
|
|
1.65
|
(1)
|
Based on Decisive's
unaudited financial information reported for the twelve-months
ended June 30, 2023.
|
(2)
|
Based on ACR Heat
Products Limited's unaudited financial information for the
pre-acquisition period from July 1, 2022 to October 2, 2022,
combined with the unaudited financial information for the
pre-acquisition period from July 1, 2022 to April 4, 2023 for each
of Capital I Industries Inc., Micon Industries Ltd., and Procore
International Radiators Ltd., and the unaudited financial
information of Innovative Heating Technologies Inc. for the period
from July 1, 2022 to June 30, 2023.
|
Non-IFRS Financial Measures
In this press release, reference is made to "Adjusted
EBITDA", "Free Cash Flow", "Growth Capital Expenditures",
"Maintenance Capital Expenditures" and "Dividend Payout Ratio",
which are not recognized financial measures under IFRS, but are
believed to be meaningful in the assessment of the Company's
performance as defined below.
"Adjusted EBITDA" is defined as earnings before
finance costs, income taxes, depreciation, amortization, foreign
exchange gains or losses, other non-cash items such as gains or
losses recognized on the fair value of contingent consideration
items, asset impairment, share-based compensation, and
restructuring costs, and other non-operating items such as
acquisition costs.
Adjusted EBITDA is a financial performance measure that
management believes is useful for investors to analyze the results
of the Company's operating activities prior to consideration of how
those activities are financed and the impact of non-operating
charges related to planned or completed acquisitions, foreign
exchange, taxation, depreciation, amortization, and impairment
charges.
The most directly comparable financial measure is profit or
loss. Adjusted EBITDA per share is also presented, which is
calculated by dividing Adjusted EBITDA, as defined above, by the
weighted average number of shares outstanding during the
period.
"Free Cash Flow" is defined as cash provided by
operating activities, as defined by IFRS, adjusted for changes in
non-cash working capital, timing considerations between current
income tax expense and income taxes paid, interest payments,
required principal payments on long-term debt and right of use
lease liabilities, and any unusual non-operating one-time items
such as acquisition and restructuring costs (as described
above).
Free Cash Flow is a financial performance
measure used by management to analyze the cash generated from
operations before the impact of changes in working capital items or
other unusual items and after giving effect to expected income
taxes thereon, as well as required interest and principal payments
on long-term debt and right of use lease liabilities.
The most directly comparable financial measure is cash
provided by operating activities. Adjustments made to cash provided
by operating activities in the calculation of Free Cash Flow
include other IFRS measures, including changes in non-cash working
capital, current income tax expense, income taxes paid, interest
paid, and principal payments on long-term debt and right of use
lease liabilities.
Free Cash Flow per share is also presented, which is
calculated by dividing Free Cash Flow, as defined above, by the
weighted average number of shares outstanding during the
period.
"Free Cash Flow Less Maintenance Capital" is defined
as Free Cash Flow, as defined above, less Maintenance Capital
Expenditures, as defined below. Free Cash Flow Less Maintenance
Capital is a financial performance measure used
by management to analyze the cash generated from operations before
the impact of changes in working capital items or other unusual
items and after giving effect to expected income taxes thereon, as
well as required interest and principal payments on long-term debt
and right of use lease liabilities, and capital expenditures
required to sustain the current operations of the Company.
The Company presents Free Cash Flow Less Maintenance Capital
Expenditures per share, which is calculated by dividing Free Cash
Flow Less Maintenance Capital, as defined above, by the weighted
average number of shares outstanding during the period.
"Growth and Maintenance Capital Expenditures"
maintenance capital expenditures are defined as capital
expenditures required to maintain the operations of the Group at
the current level and are net of proceeds from the sale of property
and equipment. Growth capital expenditures are defined as capital
expenditures that are expected to generate incremental cash inflows
and are not considered by management in determining the cash flows
required to sustain the current operations of the Company. While
there are no comparable IFRS measures for Maintenance Capital
Expenditures or Growth Capital Expenditures, the total of
Maintenance Capital Expenditures and Growth Capital Expenditures is
equivalent to the total purchases of property and equipment, net of
proceeds from the sale of property and equipment, on the Company's
statement of cash flows.
"Dividend Payout Ratio" the Company presents a
dividend payout ratio, which is calculated by dividing dividends
declared by the Company by Free Cash Flow Less Maintenance Capital,
as defined above. The Dividend Payout Ratio is a
financial ratio used by management to analyze the
percentage of cash generated from operations, before the impact of
changes in working capital items or other unusual items and after
giving effect to expected income taxes thereon, as well as required
interest and principal payments on long-term debt and right of use
lease liabilities, and capital expenditures required to sustain the
current operations of the Company, returned to shareholders as
dividends. Dividend Payout Ratio is analyzed on a trailing
twelve-month basis in order to reduce the impact of seasonality on
the analysis.
While the above Non-IFRS financial measures are used by
management to assess the historical financial performance of the
Company, readers are cautioned that:
- Non-IFRS financial measures, such as
Adjusted EBITDA, Free Cash Flow, Growth Capital Expenditures,
Maintenance Capital Expenditures and Dividend Payout Ratio,
are not recognized financial measures under
IFRS;
- The Company's method of calculating Non-IFRS financial
measures may differ from that of other corporations or entities and
therefore may not be directly comparable to measures utilized by
other corporations or entities;
- Non-IFRS financial measures should not be viewed as
an alternative to measures that are recognized under IFRS such as
profit or loss or cash provided by operating activities;
and
- A reader should not place undue reliance on any Non-IFRS
financial measures.
Set forth below are reconciliations of Non-IFRS financial
measures to their most relevant IFRS measures.
Adjusted EBITDA
(Stated in thousands
of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the six months
ended
|
June 30,
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the
period
|
$
|
1,201
|
|
$
|
884
|
|
$
|
3,167
|
|
$
|
1,396
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
Financing
costs
|
|
881
|
|
|
657
|
|
|
1,636
|
|
|
1,112
|
Income tax
expense
|
|
710
|
|
|
361
|
|
|
1,428
|
|
|
664
|
Amortization and
depreciation
|
|
1,771
|
|
|
1,140
|
|
|
3,091
|
|
|
2,016
|
Acquisition and
restructuring costs
|
|
578
|
|
|
578
|
|
|
602
|
|
|
578
|
Share-based
compensation expense
|
|
115
|
|
|
28
|
|
|
354
|
|
|
98
|
Foreign exchange losses
(gains)
|
|
18
|
|
|
(291)
|
|
|
(24)
|
|
|
(197)
|
Interest and other
income
|
|
(8)
|
|
|
(4)
|
|
|
(26)
|
|
|
(8)
|
Gain on sale of
equipment
|
|
-
|
|
|
(9)
|
|
|
(69)
|
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
5,266
|
|
|
3,344
|
|
|
10,159
|
|
|
5,650
|
(Stated in thousands
of dollars, except per share amounts)
|
|
|
|
|
|
Add
|
|
|
|
|
|
|
|
|
|
pre-acquisition
|
|
|
|
|
|
|
|
|
|
|
|
periods for
|
|
|
|
|
|
|
|
|
|
|
|
acquired
|
|
|
|
|
|
|
|
|
Decisive(1)
|
businesses(2)
|
|
|
Pro forma
|
For the trailing twelve
month period ended June 30, 2023
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
|
|
|
|
$
|
5,855
|
|
$
|
9,074
|
|
$
|
14,929
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
Financing
costs
|
|
|
|
|
3,048
|
|
|
89
|
|
|
3,137
|
Income tax
expense
|
|
|
|
|
2,367
|
|
|
2,993
|
|
|
5,360
|
Amortization and
depreciation
|
|
|
|
|
5,958
|
|
|
344
|
|
|
6,302
|
Acquisition and
restructuring costs
|
|
|
|
|
1,104
|
|
|
-
|
|
|
1,104
|
Inventory fair value
adjustments and write downs
|
|
|
|
|
22
|
|
|
-
|
|
|
22
|
Share-based
compensation expense
|
|
|
|
|
399
|
|
|
-
|
|
|
399
|
Foreign exchange losses
(gains)
|
|
|
|
|
(446)
|
|
|
(438)
|
|
|
(884)
|
Interest and other
income
|
|
|
|
|
(38)
|
|
|
(44)
|
|
|
(82)
|
Gain on sale of
equipment
|
|
|
|
|
(92)
|
|
|
-
|
|
|
(92)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
18,177
|
|
|
12,018
|
|
|
30,195
|
Free Cash Flow and Free Cash Flow Less Maintenance
Capital
(Stated in thousands
of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the six months
ended
|
June 30,
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Cash provided by
operating activities
|
$
|
6,995
|
|
$
|
1,494
|
|
$
|
6,964
|
|
$
|
1,290
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
Changes in non-cash
working capital
|
|
(2,311)
|
|
|
1,327
|
|
|
1,286
|
|
|
2,799
|
Income taxes
paid
|
|
11
|
|
|
(51)
|
|
|
1,333
|
|
|
991
|
Current income tax
expense
|
|
(929)
|
|
|
(439)
|
|
|
(1,836)
|
|
|
(763)
|
Acquisition and
restructuring costs
|
|
578
|
|
|
578
|
|
|
602
|
|
|
578
|
Interest
paid
|
|
(836)
|
|
|
(614)
|
|
|
(1,547)
|
|
|
(1,028)
|
Lease
payments
|
|
(373)
|
|
|
(305)
|
|
|
(689)
|
|
|
(592)
|
Required principal
repayments on debt
|
|
(55)
|
|
|
-
|
|
|
(55)
|
|
|
-
|
Free cash
flow
|
$
|
3,080
|
|
$
|
1,990
|
|
|
6,058
|
|
|
3,275
|
Maintenance capital
expenditures
|
|
(351)
|
|
|
(292)
|
|
|
(840)
|
|
|
(519)
|
Free cash flow less
maintenance capital
|
|
2,729
|
|
|
1,698
|
|
|
5,218
|
|
|
2,756
|
Dividend Payout Ratio
(Stated in thousands
of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
For the trailing twelve
month period ended June 30,
|
|
|
|
|
|
2023
|
|
|
2022
|
Cash provided by
operating activities
|
|
|
|
|
|
|
$
|
14,097
|
|
$
|
2,165
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
Changes in non-cash
working capital
|
|
|
|
|
|
|
|
1,679
|
|
|
5,871
|
Income taxes
paid
|
|
|
|
|
|
|
|
1,333
|
|
|
862
|
Current income tax
expense
|
|
|
|
|
|
|
|
(2,816)
|
|
|
(1,145)
|
Acquisition and
restructuring costs
|
|
|
|
|
|
|
|
1,103
|
|
|
693
|
Interest
paid
|
|
|
|
|
|
|
|
(2,873)
|
|
|
(1,997)
|
Lease
payments
|
|
|
|
|
|
|
|
(1,323)
|
|
|
(1,119)
|
Required principal
repayments on debt
|
|
|
|
|
|
|
|
(55)
|
|
|
(8)
|
Free cash
flow
|
|
|
|
|
|
|
|
11,145
|
|
|
5,322
|
Maintenance capital
expenditures
|
|
|
|
|
|
|
|
(1,275)
|
|
|
(934)
|
Free cash flow less
maintenance capital
|
|
|
|
|
|
|
|
9,870
|
|
|
4,388
|
Dividends
declared
|
|
|
|
|
|
|
|
5,780
|
|
|
3,791
|
Dividend payout
ratio
|
|
|
|
|
|
|
|
59 %
|
|
|
86 %
|
Forward-Looking
Statements
Certain statements contained in this press release constitute
forward-looking information. These statements relate to future
events or future performance. The use of any of the words "could",
"intend", "expect", "believe", "will", "projected", "estimated" and
similar expressions and statements relating to matters that are not
historical facts are intended to identify forward-looking
information and are based on management's current beliefs,
assumptions and expectations as to the outcome and timing of such
future events. Actual future results may differ materially.
In particular, this press release contains forward-looking
information relating to the future prospects of the Company
and its operating subsidiaries, 2023 demand levels, demand from
customers, potential future acquisitions, and productivity and
efficiency initiatives being explored to enhance margins.
Risk factors that could cause actual results or outcomes to differ
materially from the results expressed or implied by forward-looking
information include, among other things: general economic
conditions; pandemics; competition; government regulation;
environmental regulation; access to capital; market trends and
innovation; climate risk; general uninsured losses; risk related to
acquisitions; dependence on customers, distributors and strategic
relationships; supply and cost of raw materials and purchased
parts; operational performance and growth; implementation of the
growth strategy; product liability and warranty claims; litigation;
reliance on technology, intellectual property, and information
systems; availability of future financing; interest rates and debt
financing; income tax matters; foreign exchange; dividends; trading
volatility of common shares; dilution risk; reliance on management
and key personnel; employee and labour relations; and conflicts of
interest, all as more particularly described in the most recent
annual MD&A of the Company available on the Company's profile
at www.sedar.com. There can be no assurance as to the future
financial performance of the Company or that the board of directors
of the Company will declare or pay any dividends in the
future or, if dividends are declared and paid, there can be no
assurance as to the frequency or amount of such
dividends. The Company cautions the reader that the
risk factors referenced above are not exhaustive. The
forward-looking information contained in this release is made as of
the date hereof and the Company is not obligated to update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Because of the risks, uncertainties and
assumptions contained herein, investors should not place undue
reliance on forward-looking information. The foregoing statements
expressly qualify any forward-looking information contained
herein.
SOURCE Decisive Dividend Corporation