Fiscal 2022 Highlighted by Four Acquisitions
and Significantly Enhanced Scale of the Business
TORONTO, May 1, 2023
/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 fourth quarter and year ended
December 31, 2022. The Company's
consolidated financial statements and accompanying notes for the
years ended December 31, 2022 and
2021 are available under Pluribus' profile on SEDAR
(www.sedar.com). 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).
"The improvement in both revenue and Adjusted EBITDA for the
fiscal year reflects the full year impact of the five acquisitions
completed in 2021 and partial contribution from the acquisitions
completed in 2022. As well as progress made in the integration
process and alignment of costs to revenue in the back half of the
year," said Richard Adair, CEO of
Pluribus Technologies. "Our focus in 2023 will be to expand revenue
through continued cross selling, developing channel partnerships
and finding new markets and new verticals for the product and
services offered by our business units. We continue to maintain a
strong pipeline of acquisition targets but intend to be selective
in how we deploy capital to ensure both our ability to maximize the
value associated with any new transaction, while also preserving
capital during these challenging macroeconomic conditions."
Selected Financial and Business Highlights for the Fourth
Quarter and 2022 Fiscal Year
- Revenue for the three and 12 months ended December 31, 2022 increased by 47% and 105% to
$10.1 million and $38.1 million, respectively, reflecting the four
acquisitions completed during 2022, and their full contribution in
the fourth quarter.
- Adjusted EBITDA1 for the three and 12 months ended
December 31, 2022 were $1.6 million and $5.6
million, respectively, compared to of $1.8 million and $2.8
million in the comparative periods. The increase in Adjusted
EBITDA reflects the contribution from the four acquisitions closed
during 2022, net of higher corporate and public company costs.
- Net income for the three months ended December 31, 2022 was $0.6
million and a loss of $8.8
million in the twelve-month period, compared to a loss of
$12.9 million and $21.0 million in the comparative periods. The
decrease in net loss for the quarter is primarily driven by higher
Adjusted EBITDA and lower transaction costs as compared to the
comparative periods.
- Cash on hand on December 31, 2022
was $5.3 million compared with
$1.7 million on December 31, 2021. As of December 31, 2022 the Company has not drawn upon
its $3.0M revolving line of
credit.
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
|
|
Twelve
Months
|
For the period ended
December 31,
|
2022
|
2021
|
Var
|
Var
|
|
2022
|
2021
|
Var
|
Var
|
$
|
$
|
$
|
%
|
|
$
|
$
|
$
|
%
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
10,063
|
6,837
|
3,226
|
47 %
|
|
38,120
|
18,557
|
19,563
|
105 %
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
6,309
|
4,427
|
1,882
|
43 %
|
|
24,370
|
11,965
|
12,405
|
104 %
|
Operating
Expenses
|
4,756
|
2,662
|
2,094
|
79 %
|
|
18,754
|
9,162
|
9,592
|
105 %
|
Non-Operational
Expenses
|
2,032
|
15,323
|
(13,291)
|
-87 %
|
|
16,114
|
24,543
|
(8,429)
|
-34 %
|
Net Loss
|
637
|
(12,882)
|
13,519
|
N/A
|
|
(8,807)
|
(20,992)
|
12,185
|
58 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
1,553
|
1,765
|
(212)
|
-12 %
|
|
5,616
|
2,803
|
2,813
|
100 %
|
Adjusted EBITDA
%
|
15.4 %
|
25.8 %
|
|
-10.4 %
|
|
14.7 %
|
15.1 %
|
|
-0.4 %
|
Outlook
Pluribus is currently focused on four verticals: eLearning,
eCommerce, Health Tech and Digital Enablement. We continue to focus
on acquisition targets that are owner operated, less than
$10 million in revenue and have
normalized EBITDA margins of 20-30%. The pipeline of acquisition
opportunities remains robust, as owner-operators continue to look
for succession options for their businesses. Pluribus is seeking
EBITDA-accretive acquisitions to scale up our existing vertical
business units, expand into new ones on an opportunistic basis, as
well as grow revenue and further expand our product offering.
Operationally, we generally expect to grow these acquisitions
profitably following the completion of the integration of the
business and the subsequent roll out of our sales and business
development plans, which typically takes twelve months. In 2023,
Pluribus expects its mix of growth to be more heavily weighted
towards organic growth in comparison to previous years, given that
the pace of M&A will be subject to access of capital via the
public markets. Pluribus is investing in a select number of growth
initiatives in its key business units (TLN, EdTech, eCommerce),
which, leverage broader portfolio capabilities with a phased
financial investment approach based on success milestones.
Conference Call Details
Pluribus' management team will host a conference call to discuss
its fiscal 2022 fourth quarter financial results on Tuesday, May 2, 2023.
Date: Tuesday, May 2, 2023
Time: 8:30 am EDT
To join the conference call without operator assistance, you
may register and enter your phone number at https://bit.ly/3JyZfvd
to receive an instant automated call back.
Dial-In Numbers: (416) 764-8650 or (888)
664-6383
Conference ID: 08682840
Webcast: Available on the Events & Presentations
page of the Company's investor website
Replay: (416) 764-8677 or (888) 390-0541 (playback
code: 682840#) – available until midnight (EDT) on May 9, 2023
About Pluribus Technologies Corp.
Pluribus is a
technology company that is a value-based acquirer 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. For more information, please
visit: https://www.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 and year ended December 31,
2022.
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Twelve
Months
|
For the period ended
December 31,
|
2022
|
2021
|
Var
|
Var
|
|
2022
|
2021
|
Var
|
Var
|
|
$
|
$
|
$
|
%
|
|
$
|
$
|
$
|
%
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue
|
10,063
|
6,837
|
3,226
|
47 %
|
|
38,120
|
18,557
|
19,563
|
105 %
|
|
|
|
|
|
|
|
|
|
|
Net loss for the
year
|
637
|
(12,882)
|
13,519
|
N/A
|
|
(8,807)
|
(20,992)
|
12,185
|
58 %
|
|
|
|
|
|
|
|
|
|
|
Acquisition
costs
|
725
|
1,204
|
(479)
|
-40 %
|
|
4,650
|
2,777
|
1,873
|
67 %
|
Transition
costs
|
—
|
10,624
|
(10,624)
|
N/A
|
|
1,665
|
11,844
|
(10,179)
|
-86 %
|
Amortization and
depreciation
|
1,161
|
701
|
460
|
66 %
|
|
5,153
|
2,295
|
2,858
|
125 %
|
Share-based
compensation
|
288
|
5
|
283
|
N/A
|
|
2,004
|
34
|
1,970
|
N/A
|
Loss from change of
fair value of financial liabilities
|
—
|
1,931
|
(1,931)
|
N/A
|
|
9
|
6,269
|
(6,260)
|
N/A
|
Loss (gain) on
revaluation of contingent consideration
|
(213)
|
104
|
(317)
|
N/A
|
|
(213)
|
73
|
(286)
|
N/A
|
Finance expense,
net
|
749
|
383
|
366
|
96 %
|
|
2,379
|
914
|
1,465
|
160 %
|
Foreign exchange
loss (gain)
|
(678)
|
371
|
(1,049)
|
N/A
|
|
467
|
337
|
130
|
39 %
|
Income tax
expense
|
(1,116)
|
(676)
|
(440)
|
65 %
|
|
(1,691)
|
(748)
|
(943)
|
126 %
|
|
|
|
|
|
|
|
|
|
|
Total
Adjustments
|
916
|
14,647
|
(13,731)
|
-94 %
|
|
14,423
|
23,795
|
(9,372)
|
-39 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
1,553
|
1,765
|
(212)
|
-12 %
|
|
5,616
|
2,803
|
2,813
|
100 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
%
|
15.4 %
|
25.8 %
|
|
-10.4 %
|
|
14.7 %
|
15.1 %
|
|
-0.4 %
|
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
and pace of future acquisitions, the Company 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 and the Company's ability to grow its portfolio companies
into significant organizations. 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 a rapid pace of
growth; the Company's ability to raise sufficient financing to
continue the pace of its acquisition strategy; the Company's
ability to maintain its rapid pace of growth. 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
SOURCE Pluribus Technologies Corp.