First Quarter Highlighted by Continued Track
Record of Delivering Positive Adjusted EBITDA
TORONTO, May 29, 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
first quarter ended March 31, 2023.
The Company's consolidated financial statements and accompanying
notes for the years ended March 31,
2023 and 2022 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).
"Despite a recessionary environment in which customers have
deferred some project rollouts into the second half of 2023, we
delivered another quarter of positive Adjusted EBITDA in Q1," said
Richard Adair, CEO of Pluribus
Technologies. "Our focus in 2023 is 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 prioritize preserving cash and ensuring we
meet our debt service obligations during these challenging
macroeconomic conditions."
Selected Financial and Business Highlights for the Fourth
Quarter
- Revenue for the three ended March 31,
2023 increased by 13% to $9.3
million compared to $8.2
million in the prior year, reflecting the two acquisitions
(Tortal Training and Rowanwood) completed during 2022 after the
comparable period.
- Adjusted EBITDA1 for the three ended March 31, 2023 was $0.9
million, compared to $1.1
million in the comparative period. The decrease in Adjusted
EBITDA reflects the lower contribution of Adjusted EBITDA from the
eLearning business unit, partially offset by higher Adjusted EBITDA
from the rest of the Company's business units.
- Net loss for the three months ended March 31, 2023 was $1.8
million, a decrease of $2.8
million, compared to a loss of $4.6
million for the comparable period. The decrease in net loss
for the quarter is primarily driven by lower transaction and
acquisition costs as compared to the comparative periods.
- Cash on hand on March 31, 2023
was $6.4 million compared with
$5.3 million on December 31, 2022. As of March 31, 2023 the Company has not drawn upon its
$3.0M revolving line of credit.
Results of Operations
(000's)
|
Three
Months
|
For the period ended
March 31,
|
2023
|
2022
|
Var
|
Var
|
$
|
$
|
$
|
%
|
|
|
|
|
|
Revenue
|
9,256
|
8,158
|
1,098
|
13 %
|
|
|
|
|
|
Gross Profit
|
5,789
|
5,357
|
432
|
8 %
|
Operating
Expenses
|
4,872
|
4,268
|
604
|
14 %
|
Non-Operational
Expenses
|
2,606
|
5,826
|
(3,220)
|
-55 %
|
Net Loss
|
(1,746)
|
(4,620)
|
2,874
|
62 %
|
|
|
|
|
|
Adjusted
EBITDA
|
917
|
1,089
|
(172)
|
-16 %
|
Adjusted EBITDA
%
|
9.9 %
|
13.3 %
|
|
-3.4 %
|
Outlook
In the current macro environment, while we prioritize conserving
cash and meeting our debt service obligations, we are focussed on
optimizing the profitability of our acquired businesses. In the
eLearning and eCommerce verticals, we are making phased
strategic investments to support growth through channel
partnerships, new markets and new verticals.
We have a robust M&A pipeline made up of patient
owner-operators who are looking for liquidity. We maintain these
relationships until an acquisition can occur through strategic
partnerships to cross-sell our products and services into our
respective clients.
We intend to selectively deploy capital on EBITDA-accretive
acquisitions in our key verticals when there is a strategic fit
with the business unit. This can include providing access to
products that fill gaps in current customer offerings and/or enable
us to access new customer bases, market segments, verticals or
geographies.
Conference Call Details
Pluribus' management team will host a conference call to discuss
its fiscal 2023 first quarter financial results on Tuesday, May 30, 2023.
Date: Tuesday, May 30, 2023
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/438B1yB to receive an instant automated
call back.
Dial-In Numbers: (416) 764-8650 or (888)
664-6383
Conference ID: 31676127
Webcast: Available on the Events & Presentations
page of the Company's investor website
Replay: (416) 764-8677 or (888) 390-0541 (playback
code: 676127#) available until midnight (EDT) on June 6, 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 ended March 31,
2023.
|
|
Three
Months
|
|
For the period ended
March 31,
|
2023
|
2022
|
Var
|
Var
|
|
$
|
$
|
$
|
%
|
|
|
|
|
|
Total
Revenue
|
9,256
|
8,158
|
1,098
|
13 %
|
|
|
|
|
|
Net loss for the
year
|
(1,746)
|
(4,620)
|
2,874
|
62 %
|
|
|
|
|
|
Acquisition
costs
|
490
|
1,598
|
(1,108)
|
-69 %
|
Transition
costs
|
—
|
1,713
|
(1,713)
|
N/A
|
Amortization and
depreciation
|
1,397
|
1,199
|
198
|
17 %
|
Share-based
compensation
|
156
|
796
|
(640)
|
-80 %
|
Loss from change of
fair value of financial liabilities
|
—
|
9
|
(9)
|
N/A
|
Loss (gain) on
revaluation of contingent consideration
|
—
|
—
|
—
|
N/A
|
Finance expense,
net
|
725
|
335
|
390
|
116 %
|
Foreign exchange
loss (gain)
|
(162)
|
176
|
(338)
|
N/A
|
Income tax
expense
|
57
|
(117)
|
174
|
-149 %
|
|
|
|
|
|
Total
Adjustments
|
2,663
|
5,709
|
(3,046)
|
-53 %
|
|
|
|
|
|
Adjusted
EBITDA
|
917
|
1,089
|
(172)
|
-16 %
|
|
|
|
|
|
Adjusted EBITDA
%
|
9.9 %
|
13.3 %
|
|
-3.4 %
|
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.