Business
Dexterra Announces Results for Q3 2022 and Declares Dividend
Highlights Revenue of $259.8 million for Q3 2022 which increased $57.0 million, or 28%, co...
About this update from Dexterra Group, Inc.
[{"type":"text","content":"Dexterra Announces Results for Q3 2022 and Declares DividendHighlightsRevenue of $259.8 million for Q3 2022 which increased $57.0 million, or 28%, compared with Q3 2021 and $25.9 million or 11% compared to Q2 2022. The increase of revenue in Q3 2022 is primarily attributed to the continued growth in IFM and WAFES. This includes additional revenue of $25.2 million generated through the acquisitions of Dana Hospitality and the assets of Tricom Group (collectively the \"Q1 IFM Acquisitions\") compared to Q3 2021 as well as an increase in WAFES revenue due to increased activity levels and successful rebids on contracts;Dexterra Group Inc.'s (\"Dexterra\" or the \"Corporation\") Adjusted EBITDA for Q3 2022 was $20.1 million compared to $13.6 million in Q2 2022 and $22.4 million in Q3 2021. The Q3 2022 results primarily reflect the $3.9 million improvement in Modular results compared to Q2 2022 and increased WAFES activity levels. The EBITDA decrease in Q3 2022 compared to Q3 2021 is primarily related to lower Modular results of $1.9 million. The results also reflect the impact of inflation on all business units which is being actively managed;Consolidated net earnings of $5.2 million for Q3 2022 compared to consolidated net earnings of $7.8 million in Q3 2021. The consolidated net earnings for the nine months ended September 30, 2022 were $6.6 million compared to consolidated net earnings of $20.5 million in 2021. The decrease is mainly attributable to the lower Modular results and the inclusion of $9.1 million in Canada Emergency Wage Subsidy (\"CEWS\") for the nine-month period ended September 30, 2021;Net debt decreased to $111.6 million at Q3 2022 compared to $128.7 million at Q2 2022. For the three months ended September 30, 2022, Free Cash Flow was $23.6 million. The Corporation expects its Free Cash Flow conversion to EBITDA to exceed 50% for fiscal 2022; andDexterra declared a dividend for Q4 2022 of $0.0875 per share for shareholders of record at December 31, 2022, to be paid January 16, 2023. This news release contains certain measures and ratios, such as Adjusted EBITDA, Adjusted EBITDA as a % of revenue, Adjusted EBITDA excluding CEWS as a % of revenue, Free Cash Flow and Backlog, that do not have any standardized meaning as prescribed by GAAP and, therefore, are considered non-GAAP measures that do not have a prescribed ...