- Revenue up 17% to $110
million, taking into consideration the TM Group
divestiture
- Annual Contracted Revenue of $203
million1, or 49% of total revenue as of
December 31, 2023
- ARR was $112 million, or 27%
of total revenue1,2 nearly doubling from the prior
year
TORONTO, Feb. 13,
2024 /CNW/ - Dye & Durham Limited ("Dye &
Durham" or the "Company") (TSX: DND), one of the world's
largest providers of cloud-based legal practice management
software, today announced its financial results for the three and
six months ended December 31,
2023.
"We continued to build momentum this quarter, with double-digit
revenue growth supported by our strong and growing base of Annual
Contracted Revenue," said Dye & Durham CEO, Matthew Proud. "We have made significant
progress on our business performance plan and further enhanced our
capital structure. As a result of our exciting new product
launches, the success of our refreshed go-to-market strategy and
our disciplined approach to managing cost, we are strongly
positioned to grow organic revenue while continuing to reduce our
leverage ratio to less than four times total net debt to Adjusted
EBITDA."
Contracted Revenue
The Company has two sources of contracted revenue:
- Annual Recurring Revenue (ARR) which includes revenues from
subscriptions and revenue from minimum spend contracts. ARR was
$112 million of total
revenue1,2 which was 27% of total revenue as of
December 31, 2023. This is nearly
doubling the 16% at the same point in the prior year.
- Other Contracted Revenue includes revenue from contracted
overages and other service agreements. As of December 31, 2023, this amounted to $93 million.
In total, the Company's Annual Contracted Revenue was
$203 million1, or 49% of
total revenue as of December 31,
2023.
Second Quarter Fiscal 2024
Highlights
- Revenue of $110.2 million, up 17%
from the same period in the prior year taking into consideration
the divestiture of TM Group ("TMG") on August 3, 2023. The comparative period revenue in
fiscal 2023 included an additional $12.5
million of revenue from TMG. Revenue grew 3%, including the
impact of TMG in the comparative period.
- Net loss for the current quarter was $34.8 million, remaining relatively stable
compared to the equivalent period in the prior year.
- Adjusted EBITDA3 of $60.0
million, an increase of $2.4
million, or 4%, from the same period in the prior year,
despite the loss of contributed Adjusted EBITDA from the TM Group
in the prior year.
Quarterly Dividend
On February 13, 2024, the Board of
Directors declared a quarterly dividend of $0.01875 per share to shareholders of record on
February 21, 2024, payable on or
about February 28, 2024.
Conference Call
Notification
The Company will hold a conference call to discuss its business
later today, Tuesday, February 13,
2024, at 8:00 a.m. ET hosted
by senior management. A question-and-answer session will follow the
corporate update.
DATE: Tuesday, February 13,
2024
TIME: 8:00 a.m. ET
RAPIDCONNECT: To instantly join the conference call by phone,
please use the following URL to easily register and be connected
into the conference call automatically:
https://emportal.ink/3tUWLSF
TRADITIONAL DIAL-IN NUMBER: (416) 764-8659 or (888) 664-6392
REFERENCE NUMBER: 57043673
TAPED REPLAY: (416) 764-8677 or (888) 390-0541
REPLAY CODE: 043673#
This call is being webcast and can be accessed by going to:
https://app.webinar.net/J9qlmkZWoXP
- As of December 31, 2023 on a run
rate basis.
- Excluding TMG revenues.
- Represents a non-IFRS measure. These measures are not
recognized measures under IFRS, do not have a standardized meaning
prescribed by IFRS and are therefore unlikely to be comparable to
similar measures presented by other companies. For the relevant
definition, see the "Non-IFRS Financial Measures" section of this
press release. Management believes non-IFRS measures, including
EBITDA and Adjusted EBITDA, provide supplementary information to
IFRS measures used in assessing the performance of the business by
providing further understanding of the Company's results of
operations from management's perspective. Please see "Cautionary
Note Regarding Non-IFRS Measures", and "Select Information and
Reconciliation of Non-IFRS Measures in the Company's most recent
Management's Discussion and Analysis, which is available on the
Company's profile on SEDAR+ at www.sedarplus.ca, for further
details on certain non-IFRS measures, including the relevant
reconciliations of Adjusted EBITDA to its most directly comparable
IFRS measure, which information is incorporated by reference
herein.
About Dye & Durham
Dye & Durham Limited provides premier practice management
solutions empowering legal professionals every day, delivers vital
data insights to support critical corporate transactions and
enables the essential payments infrastructure trusted by government
and financial institutions. The company has operations in
Canada, the United Kingdom, Ireland, Australia and South
Africa.
Additional information can be found at www.dyedurham.com.
Non-IFRS Measures
This press release makes reference to certain non-IFRS measures.
These measures are not recognized measures under IFRS, do not have
a standardized meaning prescribed by IFRS and are therefore
unlikely to be comparable to similar measures presented by other
companies.
Rather, these measures are provided as additional information to
complement those IFRS measures by providing further understanding
of the Company's results of operations from management's
perspective and to discuss Dye & Durham's financial outlook.
The Company's definitions of non-IFRS measures may not be the same
as the definitions for such measures used by other companies in
their reporting. Non-IFRS measures have limitations as analytical
tools. Accordingly, these measures should not be considered in
isolation nor as a substitute for analysis of Dye & Durham's
financial information reported under IFRS. The Company uses
non-IFRS measures, including "EBITDA", and "Adjusted
EBITDA", (each as defined below), to provide investors with
supplemental measures of its operating performance and to eliminate
items that have less bearing on operating performance or operating
conditions and thus highlight trends in its core business that may
not otherwise be apparent when relying solely on IFRS financial
measures. The Company's management also uses non-IFRS financial
measures in order to facilitate operating performance comparisons
from period to period. The Company believes that securities
analysts, investors, and other interested parties frequently use
non-IFRS financial measures in the evaluation of issues.
Please see "Cautionary Note Regarding Non-IFRS Measures" and
"Select Information and Reconciliation of Non-IFRS Measures" in the
Company's most recent Management's Discussion and Analysis, which
is available on the Company's profile on SEDAR+ at
www.sedarplus.ca, for further details on certain non-IFRS measures,
including relevant reconciliations of each non-IFRS measure to its
most directly comparable IFRS measure, which information is
incorporated by reference herein.
EBITDA
EBITDA means net income (loss) before amortization and
depreciation expenses, finance and interest costs including change
in fair value of Company's convertible debentures, loss on
settlement of loans and borrowings, realized loss on derivatives,
gains or losses from re-financing transactions and provision for
income taxes.
Adjusted EBITDA
Adjusted EBITDA adjusts EBITDA for stock-based compensation
expense, loss on disposal of assets held for sale, specific
transaction-related expenses related to acquisition, listing and
reorganization related expenses, integration and operational
restructuring costs. Operational restructuring costs are incurred
as a direct or indirect result of acquisition activities.
Operational restructuring costs include the full period impact of
cost synergies related to the reduction of employees for
acquisitions.
Forward-looking
Statements
This press release may contain forward-looking information and
forward-looking statements within the meaning of applicable
securities laws, which reflects the Company's current expectations
regarding future events, including with respect to the Company's
financial outlook and business strategy, including its debt
reduction strategy and business performance plan. In some cases,
but not necessarily in all cases, forward-looking statements can be
identified by the use of forward looking terminology such as
"plans", "targets", "expects" or "does not expect", "is expected",
"an opportunity exists", "is positioned", "estimates", "intends",
"assumes", "anticipates" or "does not anticipate" or "believes", or
variations of such words and phrases or state that certain actions,
events or results "may", "could", "would", "might", "will" or "will
be taken", "occur" or "be achieved". In addition, any statements
that refer to expectations, projections or other characterizations
of future events or circumstances contain forward-looking
statements. Forward-looking statements are not historical facts,
nor guarantees or assurances of future performance but instead
represent management's current beliefs, expectations, estimates and
projections regarding future events and operating performance.
Specifically, statements regarding Dye & Durham's
expectations of future results, performance, prospects, the markets
in which we operate, or about any future intention with regard to
its business, acquisition strategies, debt reduction strategy and
business performance plan are forward-looking information. The
foregoing demonstrates Dye & Durham's objectives, which are not
forecasts or estimates of its financial position, but are based on
the implementation of its strategic goals, growth prospectus, and
growth initiatives. The forward-looking information is based on
management's opinions, estimates and assumptions, including, but
not limited to: (i) Dye & Durham's results of operations will
continue as expected, (ii) the Company will continue to effectively
execute against its key strategic growth priorities, (iii) the
Company will continue to retain and grow its existing customer base
and market share, (iv) the Company will be able to take advantage
of future prospects and opportunities, and realize on synergies,
including with respect of acquisitions, (v) there will be no
changes in legislative or regulatory matters that negatively impact
the Company's business, (vi) current tax laws will remain in effect
and will not be materially changed, (vii) economic conditions will
remain relatively stable throughout the period, (vii) the
industries Dye & Durham operates in will continue to grow
consistent with past experience, (ix) the seasonal trends in real
estate transaction volume will continue as expected, * the
Company's expectations its debt reduction strategy will be met and
(xi) those assumptions described under the heading "Caution
Regarding Forward-Looking Information" in the Company's
Management's Discussion and Analysis for the second quarter ended
December 31, 2023. While these
opinions, estimates and assumptions are considered by Dye &
Durham to be appropriate and reasonable in the circumstances as of
the date of this press release, they are subject to known and
unknown risks, uncertainties, assumptions and other factors that
may cause the actual results, levels of activity, performance, or
achievements to be materially different from those expressed or
implied by such forward-looking information.
The forward looking information is subject to significant risks
including, without limitation: that the Company will be unable to
effectively execute against its key strategic growth priorities,
including in respect of acquisitions; the Company will be unable to
continue to retain and grow its existing customer base and market
share; risks related to the Company's business and financial
position; that Dye & Durham may not be able to accurately
predict its rate of growth and profitability; risks related to
economic and political uncertainty; income tax related risks; and
those risk factors discussed in greater detail under the "Risk
Factors" section of the Company's most recent annual information
form and under the heading "Risks and Uncertainties" in the
Company's most recent Management's Discussion and Analysis, which
are available under Dye & Durham's profile on SEDAR+ at
www.sedarplus.ca. Many of these risks are beyond the
Company's control.
If any of these risks or uncertainties materialize, or if the
opinions, estimates or assumptions underlying the forward-looking
information prove incorrect, actual results or future events might
vary materially from those anticipated in the forward-looking
information. Although the Company has attempted to identify
important risk factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other risk factors not presently known to the Company
or that the Company presently believes are not material that could
also cause actual results or future events to differ materially
from those expressed in such forward-looking information.
Although the Company bases these forward-looking statements on
assumptions that it believes are reasonable when made, the Company
cautions investors that forward-looking statements are not
guarantees of future performance and that its actual results of
operations, financial condition and liquidity and the development
of the industry in which it operates may differ materially from
those made in or suggested by the forward-looking statements
contained in this press release. In addition, even if the Company's
results of operations, financial condition and liquidity and the
development of the industry in which it operates are consistent
with the forward-looking statements contained in this press
release, those results of developments may not be indicative of
results or developments in subsequent periods.
There can be no assurance that such information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information. No
forward-looking statement is a guarantee of future results.
Accordingly, you should not place undue reliance on forward-looking
information, which speaks only as of the date made. The
forward-looking information contained in this press release
represents Dye & Durham's expectations as of the date specified
herein, and are subject to change after such date. However, the
Company disclaims any intention or obligation or undertaking to
update or revise any forward-looking information or to publicly
announce the results of any revisions to any of those statements,
whether as a result of new information, future events or otherwise,
except as required under applicable securities laws. Comparisons of
results for current and any prior periods are not intended to
express any future trends or indications of future performance,
unless specifically expressed as such, and should only be viewed as
historical data.
All of the forward-looking information contained in this press
release is expressly qualified by the foregoing cautionary
statements.
SOURCE Dye & Durham Limited