Year: 2024

• $120-125 million Q2 FY2025 guidance range for revenue versus $110 million in Q2 FY2024
• 6-10% expected Organic Revenue Growth^1,3 rate in Q2 FY2025 versus 2.8% in Q2 FY2024
• Results are trending for the Company’s best quarterly revenue¹ performance ever – clear proof that management’s value creation plan is working

TORONTO, Nov. 28, 2024 /CNW/ – Dye & Durham Limited (“Dye & Durham” or the “Company“) DND today provided second quarter fiscal 2025 (“Q2 FY2025“) guidance, forecasting its best quarter to date.

Based on the continued success of the Company’s organic growth initiatives, management is pleased to provide Q2 FY2025 revenue guidance of $120-125 million. Management also expects to report an Organic Revenue Growth Rate³ of 6-10% for Q2 FY2025.

“Dye & Durham is delivering on its commitment to investors and generating impressive and record-setting results. The management team’s strategy has worked to transition our revenue model to a more predictable contracted revenue, and to capitalize on organic growth opportunities such as cross-selling,” said Matthew Proud, CEO of Dye & Durham.

“While the events of the past few quarters have imposed an unnecessary distraction on our business, our team has remained focused on executing against our Value Creation Plan, which can be seen in the $50 million annual revenue growth we have delivered on. Our financial profile underscores the strength of our strategy and the quality of our board of directors and management team,” continued Mr. Proud.

Investor Briefing Event

The Company will also host an Investor Briefing event (the “Briefing“) on the afternoon of December 10, 2024, to provide shareholders with an update on the Company’s progress and strategic execution of its recently published ‘Value Creation Plan’. The Briefing will also include a question and answer session. Investors are invited to attend in person or access the Briefing from the Events section on the Investors page of its website.

Details on the Value Creation Plan, which is focused on continuing to drive driving sustainable long-term value for all stakeholders, can be found in the Investors section of the Company’s website and on SEDAR+ under the Company’s profile at www.sedarplus.ca.

About Dye & Durham Limited

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, and Australia.

Additional information can be found at www.dyedurham.com.

Non-IFRS Measures

This press release makes reference to Organic Revenue Growth Rate, which is a non-IFRS measure. This is not a recognized measure under IFRS, does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other companies.

Rather, this measure is 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 “Organic Revenue Growth Rate” (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.

Organic Revenue Growth Rate

“Organic Revenue Growth Rate” means total revenue in the current quarter period (excluding the pre-acquisition quarterly revenue of those acquisitions executed in the last twelve month period and discontinued businesses) (“Organic Revenue“) divided by the total revenue in the prior quarter period (excluding TM Group, pre-acquisition quarterly revenue and discontinued businesses). Organic Revenue, which is a non-IFRS measure, is used as a component in Organic Revenue Growth Rate. Below is a reconciliation of the Company’s Q2 FY2025 Organic Growth Rate.

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 expected Q2 FY2025 revenue and Organic Revenue Growth Rate. 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 guidance, 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, including its expected Q2 FY2025 revenue and Organic Revenue Growth Rate, performance, prospects, the markets in which we operate, or about any future intention with regard to its business, acquisition strategies and debt reduction strategy 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) the Company’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, (viii) the industries the Company operates in will continue to grow consistent with past experience, (ix) exchange rates being approximately consistent with current levels, * the seasonal trends in real estate transaction volume will continue as expected, (xi) the Company’s expectations for increases to the average rate per user on its platforms, contractual revenues, and incremental earnings from its latest asset-based acquisition will be met, (xii) the Company being able to effectively upsell and cross-sell between practice management and data insights & due diligence customers, (xiii) the Company’s expectations regarding its debt reduction strategy will be met, and (xiv) those assumptions described under the heading “Caution Regarding Forward-Looking Information” in the Company’s most recent Management’s Discussion and Analysis.

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. Such risks and uncertainties include, but are not limited to: 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; the Company 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 the factors discussed under “Risk Factors” in 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 on the Company’s profile on SEDAR+ at www.sedarplus.ca.

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

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Delivers sustained top and bottom-line growth

Q3 2024 Highlights

• Revenues of $28.4 million, up 24.3% from $22.9 million in Q3 2023
• Gross profit up 122% to $4.6 million
• Net income up 847.1% to $1.5 million (EPS of $0.03)¹
• Solid liquidity with $15.7 million available at quarter end, including a cash balance of $3.7 million ($0.07 per share) and another $12.0 million under Imaflex’s revolving line of credit
• Generated free cash flow² of $4.2 million

MONTRÉAL, Nov. 28, 2024 /CNW/ – Imaflex Inc. (“Imaflex” or the “Corporation”) IFX reports consolidated financial results for the third quarter (Q3) ended September 30, 2024 and provides a business update.  All amounts are in Canadian dollars.  

“We continued to deliver solid year-over-year results in the third quarter, reflecting the strength of our dedicated team and expanding capabilities,” said Mr. Yazedjian, Imaflex’s new President and Chief Executive Officer.  “As we look ahead, we are confident in our ability to build on this momentum and deliver sustainable growth.”  As usual, third quarter performance was impacted by Québec’s annual construction holiday, which results in temporary plant closures across the province, including Imaflex’s Montréal and Victoriaville plants.

Consolidated Financial Highlights (unaudited) 

Financial Review: Quarter Ended September 30

Revenues

Revenues were $28.4 million for the third quarter of 2024, up 24.3% from $22.9 million in 2023.  Growth was driven by heightened volumes, stronger sales of higher margin offerings and favourable movements in foreign exchange.   

For the first nine months of 2024, revenues increased 19.9% to $84.7 million, driven by the same factors outlined for the quarter.     

Gross Profit 

Gross profit came in at $4.6 million (16.2% of sales) for the current quarter, up significantly from $2.1 million (9.1% of sales) in 2023.  For 2024 year-to-date, the gross profit was $14.9 million (17.6% of sales), versus $8.6 million (12.2% of sales) in 2023. 

Despite a competitive pricing environment, the Corporation’s performance in 2024 has been bolstered by higher sales volumes, product mix, operational efficiencies, and ongoing cost controls.

Operating Expenses

Selling and Administrative expenses were $2.6 million (9.2% of sales) in the current quarter, versus $2.1 million (9.1% of sales) in 2023.  The year-over-year increase was largely due to increased administrative expenses, including higher provisions for the Corporation’s profit participation plan resulting from the heightened profitability.  For 2024 year-to-date, expenses totalled $7.0 million (8.3% of sales), compared to $6.4 million (9.0% of sales) in 2023.  The selling expense ratio for both the current quarter and year-to-date benefited from the higher sales base in 2024.

Imaflex recorded other losses of $0.3 million for the current quarter, versus gains of $0.4 million in the same period last year, resulting in a $0.7 million unfavourable year-over-year variance.  For 2024 year-to-date, the Company recorded gains of $0.5 million versus losses of $31 thousand in 2023, yielding a $0.5 million favourable variance.  Other gains and losses were primarily driven by foreign exchange movements.

A majority of the Corporation’s foreign exchange gains and losses are non-cash impacting and largely relate to intercompany balances for which Imaflex can control the time of settlement.  

Net Income and EBITDA  

Net income grew to $1.5 million in the current quarter, increasing $1.3 million or 847.1%, over 2023.  For the year-to-date, net income grew to $6.8 million, up 345.3% from $1.5 million in 2023.   The heightened profitability in 2024 was driven by the higher gross profit. 

EBITDA was $3.0 million (10.5% of sales) for the current quarter, up 104.7% from $1.5 million (6.4% of sales) in 2023.  On a constant currency basis, EBITDA came in at $3.3 million (11.7% of sales), up 196.5% over the
$1.1 million (4.9% of sales) achieved in the third quarter of 2023.

For 2024 year-to-date, EBITDA stood at $12.2 million (14.5% of sales), up 128.6% from $5.4 million (7.6% of sales) in the corresponding prior-year period.  Excluding the impact of foreign exchange, EBITDA grew 114.8% over 2023, coming in at $11.8 million (13.9% of sales), compared to $5.5 million (7.8% of sales) in 2023.

Liquidity and Capital Resources

Net cash flows generated by operating activities, including movements in working capital and taxes, stood at $5.0 million for the current quarter, up from cash inflows of $0.7 million in the same period of 2023.  The $4.3 million improvement was driven by the higher profit in 2024, along with movements in trade & other payables, foreign exchange, and income taxes, partially offset by movements in trade & other receivables and inventories.        

For the first nine months of 2024, cash flows generated by operating activities, including movements in working capital and income taxes, stood at $9.1 million, up from $2.3 million in the prior year.  The $6.8 million increase was primarily driven by the higher profit in 2024, along with movements in income taxes.

As at September 30, 2024 Imaflex continued to maintain a strong financial position with $15.7 million in available liquidity, including $3.7 million of cash (up from $0.7 million at the end of Q2 2024) and a fully undrawn $12.0 million revolving line of credit.    

Working capital stood at $21.9 million at quarter end, up from $14.0 million as of December 31, 2023.  The improvement was driven by heightened cash levels, higher trade and other receivables, along with a reduction in bank indebtedness and long-term debt, partially offset by higher finance lease obligations. 

Equipment Purchase Program – Update

In 2022, Imaflex announced the signing of equipment purchase agreements for three multi-layer extruders and a metallizer. The metallizer and one extruder were fully commissioned in 2023, while the remaining two extruders are now operational and being commissioned. These purchases strengthen Imaflex’s capacity to explore new market opportunities and meet future demand.

ADVASEAL® Update

Imaflex remains focused on securing U.S. Environmental Protection Agency (“EPA”) approval of ADVASEAL®.  As is typical with the EPA’s review process, no decision timeline was provided, although it is taking much longer than the Corporation originally expected. 

Outlook         

“As I step into the President and CEO position, I have made it a priority to meet with employees across the business and engage with some key customers and shareholders,” said Mr. Yazedjian.  “These conversations have provided valuable insights, and I am inspired by the strength of our team and the strategic possibilities ahead.  The positive momentum we have seen for the first nine months of 2024 is a testament to our capabilities.  

While we are mindful of evolving market conditions, we remain confident in our ability to leverage our strong foundation to achieve sustained growth.  Moving forward, we will focus on strengthening our core business, while driving innovation and expansion in key areas.”

Caution Regarding Non-IFRS Financial Measures

The Company’s management uses non-IFRS measures in this press release, namely EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), EBITDA excluding foreign exchange and Free Cash Flow.  

While EBITDA and Free Cash Flow are not standard International Financial Reporting Standards (IFRS) measures, management, analysts, investors and others use them as an indicator of the Company’s financial and operating management and performance.  EBITDA should not be construed as an alternative to net income determined in accordance with IFRS as an indicator of the Company’s performance.  The Company’s method of calculating EBITDA and Free Cash Flow may be different from those used by other companies and accordingly they should not be considered in isolation.

About Imaflex Inc.

Founded in 1994, Imaflex is focused on the development and manufacturing of innovative solutions for the flexible packaging space.  Concurrently, the Corporation develops and manufactures films for the agriculture industry.  The Corporation’s products consist primarily of polyethylene (plastic) film and bags, including metalized plastic film, for the industrial, agricultural and consumer markets.  Headquartered in Montreal, Quebec, Imaflex has manufacturing facilities in Canada and the United States.  The Corporation’s common stock is listed on the TSX Venture Exchange under the ticker symbol IFX.  Additional information is available at www.imaflex.com.

Cautionary Statement on Forward Looking Information

Certain information included in this press release constitutes “forward-looking” statements within the meaning of Canadian securities laws.  Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the management of the Corporation, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies.  The Corporation cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance, or achievements of Imaflex to be materially different from the Corporation’s estimated future results, performance or achievements expressed or implied by those forward-looking statements and that the forward-looking statements are not guarantees of future performance.  These statements are also based on certain factors and assumptions. For more details on these estimates, risks, assumptions and factors, see the Corporation’s most recent Management Discussion and Analysis filed on SEDAR+ at www.sedarplus.ca and on the investor section of the Corporation’s website at www.imaflex.com.  The Corporation disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except as expressly required by law.  Readers are cautioned not to put undue reliance on these forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Imaflex Inc.

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/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S./

CALGARY, AB, Nov. 28, 2024 /CNW/ – Source Rock Royalties Ltd. (“Source Rock”) SRR, a pure-play oil and gas royalty company with an established portfolio of oil royalties, announces results for the three and nine month interim periods ended September 30, 2024 (“Q3 2024”).

Q3 2024 Highlights:

• Record quarterly royalty production of 257 boe/d (94% oil and NGLs), an increase of 13% over Q3 2023.
• Quarterly royalty revenue of $1,987,999, a decrease of 2% over Q3 2023.
• Quarterly adjusted EBITDA² of $1,670,376 ($0.037 per share), a decrease of 4% (5% per share) over Q3 2023.
• Quarterly funds from operations² of $1,477,458 ($0.032 per share), a decrease of 5% (6% per share) over Q3 2023.
• Declared $0.0195 per share in dividends, resulting in a payout ratio² of 60%.
• Achieved an operating netback² of $70.65 per boe and a corporate netback² of $62.49.
• Ended Q3 2024 with cash and cash equivalents of $3,865,103 ($0.09 per share).

Nine Months Ended September 30, 2024 Highlights:

• Royalty production of 250 boe/d (95% oil and NGLs), an increase of 22% over 2023.
• Royalty revenue of $5,818,341, an increase of 18% over 2023.
• Adjusted EBITDA² of $5,107,116 ($0.113 per share), an increase of 20% (19% per share) over 2023.
• Funds from operations² of $4,482,413 ($0.099 per share), an increase of 12% (11% per share) over 2023.
• Declared $0.057 per share in dividends, resulting in a payout ratio² of 58%.
• Achieved an operating netback² of $74.26 per boe and a corporate netback² of $65.18.

President’s Message

Source Rock’s portfolio of oil royalties continued to benefit from drilling by various operators in Q3 2024. During the quarter, 11 new horizontal oil wells began producing on our royalty lands, including 7 Clearwater heavy oil wells in Figure Lake, Alberta and 4 Frobisher light oil wells in S.E. Saskatchewan.

Our working capital is increasing as we continue to pursue additional oil-focused royalty acquisitions to compound growth for existing shareholders. Target acquisitions aim to achieve a balance of increasing our existing royalty production and expanding exposure to identifiable upside drill locations on undeveloped lands. Source Rock’s current working capital is approximately $4.5 million ($0.10 per share).

Financial and Operational Results

About Source Rock Royalties Ltd.

Source Rock is a pure-play oil and gas royalty company with an existing, oil focused portfolio of royalty interests concentrated in southeast Saskatchewan, central Alberta and west-central Saskatchewan. Source Rock targets a balanced growth and yield business model, using funds from operations to pursue accretive royalty acquisitions and to pay dividends. By leveraging its niche industry relationships, Source Rock identifies and acquires both existing royalty interests and newly created royalties through collaboration with industry partners. Source Rock’s strategy is premised on maintaining a low-cost corporate structure and achieving a sustainable and scalable business, measured by growing funds from operations per share and maintaining a strong netback on its royalty production.

Forward-Looking Statements

This news release includes forward-looking statements and forward-looking information within the meaning of Canadian securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “is expected”, “expects”, “scheduled”, “intends”, “contemplates”, “anticipates”, “believes”, “proposes” or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements in this news release include statements regarding Source Rock’s dividend strategy and the amount and timing of future dividends (and the sustainability thereof), the potential for future drilling on Source Rock’s royalty lands, expectations regarding commodity prices, Source Rock’s growth strategy and expectations with respect to future royalty acquisition and partnership opportunities, and the ability to complete such acquisitions and establish such partnerships. Such statements and information are based on the current expectations of Source Rock’s management and are based on assumptions and subject to risks and uncertainties. Although Source Rock’s management believes that the assumptions underlying these statements and information are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this news release may not occur by certain dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting Source Rock. Although Source Rock has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement or information can be guaranteed. Except as required by applicable securities laws, forward-looking statements and information speak only as of the date on which they are made and Source Rock undertakes no obligation to publicly update or revise any forward-looking statement or information, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures & Ratios

This news release uses the terms “funds from operations” and “Adjusted EBITDA” which are non-GAAP financial measures and the terms “payout ratio”, “operating netback” and “corporate netback” which are non-GAAP ratios. These financial measures and ratios do not have a standardized prescribed meaning under GAAP and these measures and ratios may not be comparable with the calculation of similar measures disclosed by other entities.

“Adjusted EBITDA” (earnings before interest, taxes, depreciation and amortization) is used by management to analyze the Corporation’s profitability based on the Corporation’s principal business activities prior to how these activities are financed, how assets are depreciated, amortized and impaired, and how the results are taxed. Additionally, amounts are removed relating to share-based compensation expense, the sale of assets, fair value adjustments on financial assets and liabilities, other non-cash items and certain non-standard expenses, as the Corporation does not deem these to relate to the performance of its principal business. Adjusted EBITDA is not intended to represent net profit (or loss) as calculated in accordance with GAAP.

The most directly comparable GAAP financial measure to funds from operations is cash flow from operating activities. “Funds from operations” is defined as cash flow from operating activities before the change in non-cash working capital. Source Rock believes the timing of collection, payment or incurrence of these non-cash items involves a high degree of discretion and as such may not be useful for evaluating Source Rock’s operating performance. Source Rock considers funds from operations to be a key measure of operating performance as it demonstrates Source Rock’s ability to generate funds to fund operations, acquisition opportunities, dividend payments and debt repayments, if applicable. Funds from operations should not be construed as an alternative to income or cash flow from operating activities determined in accordance with GAAP as an indication of Source Rock’s performance.

“Corporate netback” is calculated as funds from operations divided by cumulative production volumes for the period. Corporate netback is used by Source Rock to better analyze the financial performance of its royalties against prior periods and to assess the cost efficiency of its overall corporate platform as it relates to production volumes. There is no standardized meaning for “corporate netback” and this metric as used by Source Rock may not be comparable with the calculation of similar metrics disclosed by other entities, and therefore should not be used to make comparisons.

“Operating netback” represents the cash margin for products sold. Operating netback is calculated as revenue minus cash administrative expenses divided by cumulative production volumes for the period. Operating netback is used by Source Rock to assess the cash generating and operating performance of its royalties against prior periods and to assess the costs efficiency of its operating platform as it relates to production volumes. There is no standardized meaning for “operating netback” and this metric as used by Source Rock may not be comparable with the calculation of similar metrics disclosed by other entities, and therefore should not be used to make comparisons.

“Payout ratio” is calculated as the aggregate of cash dividends declared in a period divided by funds from operations realized in such period. Source Rock considers payout ratio to be a key measure to assess Source Rock’s ability to fund operations, acquisition opportunities, dividend payments, cash taxes and debt repayments, if applicable.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.

SOURCE Source Rock Royalties Ltd.

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• Tribe achieved record quarterly revenue of $8.33 million in Q3-2024, an increase of 74% from the same period last year, driven by healthy organic growth and the acquisitions of DMS and Meritus Management Group (Meritus).
• Tribe is pleased to report a 93% Year-over-Year improvement in Adjusted EBITDA as a result of increasing revenues in the quarter and the execution of strategic integration and efficiency projects resulting in cost reductions.
• Management provides a strong growth outlook and is on track with its goal of achieving Adjusted EBITDA positive by the end of 2024; and generating positive cash flow from operating activities in 2025.

VANCOUVER, BC, Nov. 28, 2024 /CNW/ – Tribe Property Technologies Inc. TRBE TRPTF (“Tribe” or the “Company“), a leading provider of technology-elevated property management solutions, today announces its financial results for the third quarter ended September 30, 2024. All amounts are stated in Canadian dollars on an as reported basis under IFRS (International Financial Reporting Standards) unless otherwise indicated.

Joseph Nakhla, Chief Executive Officer of Tribe, commented, “We are thrilled with the financial performance of the quarter. The acquisition of DMS and prior to that, Meritus, in combination with our robust organic growth, has propelled Tribe’s annualized revenue run rate to over $32 million and has significantly enhanced the Company’s profitability profile. Furthermore, our cost optimization efforts have delivered material benefits, evidenced by the significant improvement in our Adjusted EBITDA. We remain on track to reach break-even Adjusted EBITDA by year-end and expect to start generating positive cash flow from operating activities in 2025. We are starting to realize the benefits of our national footprint and expanded revenue streams.”

Q3-2024 Financial Highlights:

• Revenue: Tribe achieved record revenue of $8.33 million in Q3-2024, an increase of 74% compared to $4.80 million in Q3-2023. Revenue growth was positively impacted by organic growth and the acquisitions of DMSI and Meritus Group Management Inc.
• Gross profit⁽²⁾: Gross profit was $3.03 million in Q3-2024, an increase of 99% compared to $1.52 million in Q3-2023. Gross profit was favorably impacted by the increase in revenue and cost optimization efforts as a result of executing on strategic integration and efficiency projects in the quarter.
• Gross margin percentage: Tribe achieved Gross margin percentage of 38.8% in Q3-2024, in line with Gross margin percentage of 38.8% in Q3-2023. Gross margin percentage remained stable, supported by revenue growth and cost optimization initiatives.
• Adjusted EBITDA⁽¹⁾: Tribe had an Adjusted EBITDA loss of $0.11 million in Q3-2024, an improvement of 93% compared to an Adjusted EBITDA loss of $1.44 million in Q3-2023. Adjusted EBITDA improvement was driven by higher gross profit and enhanced operational efficiencies.
• Revenue Segmentation: Recurring revenue, which is composed of Tribe’s management service fees across condo, rental, commercial and not for profit housing, was $7.12 million in Q3-2024, an increase of 67%, compared to $4.26 million in Q3-2023. The increase in recurring revenue was due to the onboarding of new customers, as well as the DMS and Meritus acquisitions. Transactional revenue was $1.21 million as compared to $0.53 million in Q3-2023, representing an increase of 128%. This growth was primarily driven by an increase in financial services revenues through banking partnerships and software licensing fees for upcoming real estate development projects; underscoring the Company’s ongoing commitment to identifying new avenues for creating value for stakeholders.

Q3-2024 Business Highlights:

• On July 17, 2024, Tribe launched its Tribe Home app for Android devices and introduced enhancements to its iOS version, improving customer experience and making it easier than ever to manage and live in multi-family residential homes, such as condos and townhouses.
• On August 22, 2024, Tribe announced that it had rebranded and unified all of DMSI’s various service divisions under the name DMS.
• Tribe also announced it had begun the expansion of DMS’ service offerings to Tribe’s current customer base of Strata and Condo Corporations, Investor-Owners and Property Developers, leveraging expanded service offerings across Canada.

Outlook:

The Company is on track to achieve its key goals for 2024 with accelerating revenue growth, improved profitability and expanding margins. The Company is pleased to report on its key goals for 2024:

• Increase monthly recurring revenue. Organic growth fueled by landing new property management agreements, onboarding more communities onto the Tribe platform, winning new software licensing agreements and increasing digital services revenue.
• Make additional acquisitions. The company expects to continue executing on its aggressive M&A strategy. Tribe closed its transformational acquisition of DMSI in June 2024 and continues to have several additional acquisition targets in its M&A pipeline.
• Improve profitability. The Company expects to continue driving efficiencies in the business resulting in improved gross margins and enhancing Tribe’s EBITDA profile. The completion of key integration milestones for DMS has accelerated the Company’s goal of achieving profitability.
• Continue to innovate. Tribe continued to invest in its proprietary software platform this year, adding functionality to its suite of products in order to maintain its industry leadership position.

The persistent housing shortage across North America remains a key long-term driver of increased construction activity and demand for Tribe’s services. Tribe’s advanced tech-elevated property management solutions continue to be the cornerstone of its success, delivering exceptional value and efficiencies to stakeholders and strengthening the Company’s expansive national footprint.

Third Quarter 2024 Financial Webcast

The Company will hold a conference call and simultaneous webcast to discuss its results on November 28, 2024 at 1:00 pm ET (10:00 am PT). The call will be hosted by Joseph Nakhla, Chief Executive Officer, and Angelo Bartolini, Chief Financial Officer. Please dial-in 10 minutes prior to start of the call.

Webinar Details:

Please connect 5 minutes prior to the conference call to ensure time for any software download that may be required.

Footnotes

Non-IFRS Measures

The following and preceding discussion of financial results includes reference to Gross Profit, Gross Profit Percentage and Adjusted EBITDA, which are all non-IFRS financial measures.

Financial Statements and Management’s Discussion & Analysis

Please see the consolidated financial statements and related Management’s Discussion & Analysis (“MD&A”) for more details. The unaudited consolidated financial statements for the third quarter ended September 30, 2024 and related MD&A have been reviewed and approved by Tribe’s Audit Committee and Board of Directors. Tribe recognizes that most of its investors are now accessing corporate and financial information either through pushed news services, directly from www.tribetech.com or SEDAR. Thus, Tribe has prepared this truncated news release to alert investors to its results and that a more detailed explanation and analysis is readily available in the MD&A. These reports have been filed on SEDAR at www.sedar.com and posted at www.tribetech.com.

“Joseph Nakhla”
Chief Executive Officer
1606-1166 Alberni Street
Vancouver, British Columbia V6E 3Z3
Phone: (604) 343-2601
Email: joseph.nakhla@tribetech.com 

About Tribe Property Technologies

Tribe is a property technology company that is disrupting the traditional property management industry. As a rapidly growing tech-forward property management company, Tribe’s integrated service-technology delivery model serves the needs of a much wider variety of stakeholders than traditional service providers. Tribe seeks to acquire highly accretive targets in the fragmented North American property management industry and transform these businesses through streamlining and digitization of operations. Tribe’s platform decreases customer acquisition costs, increases retention, and allows for the addition of value-added products and services through the platform. Visit tribetech.com for more information.

Cautionary Statement on Forward-Looking Information

This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws regarding the Company and its business. When or if used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward-looking statements or information. Forward-looking statements or information in this news release may relate to statements with respect to the aims and goals of the Company; financial projections; growth plans including future prospective consolidation in the property management sector; future acquisitions by the Company; integration of the acquisition of Meritus Group Management Inc or DMS.; beliefs of the Company with respect to property management and real estate development markets; prospective benefits of the Company’s platform; and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon several assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political, and social risks, contingencies, and uncertainties. Many factors, both known and unknown, could cause results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward- looking statements. The Company does not intend, and do not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules, and regulations.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Tribe Property Technologies Inc.

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