Business
Dexterra Group Announces Results for Q1 2022 and Declares Dividend
Highlights Revenue of $224.0 million for Q1 2022 increased $68.6 million, or 44%, compare...
About this update from Dexterra Group, Inc.
[{"type":"text","content":"Dexterra Group Announces Results for Q1 2022 and Declares DividendHighlightsRevenue of $224.0 million for Q1 2022 increased $68.6 million, or 44%, compared with Q1 2021 and $22.4 million compared to Q4 2021. The FCPI Dana Investments Inc. (\"Dana\") and Tricom Group (\"Tricom\") acquisitions in the quarter accounted for $25.2 million of the increase with the remainder primarily due to strong WAFES results related to high resource sector activity levels and new clients wins in 2021;Dexterra Group Inc.'s (\"Dexterra Group\" or the \"Corporation\") Adjusted EBITDA for Q1 2022 was $17.0 million compared to $18.1 million in Q4 2021 which included an unusual one-time contract renegotiation fee of $1.8 million for WAFES. The strong IFM and WAFES results were offset by delays in rapid affordable housing projects, inflationary pressures, and start-up costs for a new product line in the Modular business;Net earnings were $1.1 million for Q1 2022 compared to consolidated net earnings of $4.5 million in Q1 2021. The Q1 2022 results included a provision for costs of $2.1 million associated with pre-acquisition Horizon North Logistics Inc. contract disputes and related remediation work;Debt increased in Q1 2022 to $130.7 million at March 31, 2022. Approximately $50 million of the increase is due to the acquisitions; The Free Cash Flow deficit of $11.7 million in Q1 2021 included a significant increase in trade receivables of $28.4 million, excluding the Dana acquisition, which related to higher sales and timing of client payments. The increase in trade receivables was temporary as days sales outstanding were significantly reduced in April. The Corporation expects its conversion of EBITDA to free cash flow to exceed 50% for fiscal 2022; andThe Corporation declared a dividend for Q2 2022 of $0.0875 per share for shareholders of record at June 30, 2022, to be paid on July 15, 2022. This news release contains certain measures and ratios, such as Adjusted EBITDA, 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 meaning under IFRS. The method of calculating these measures may differ from other entities and accordingly, may not be comparable to measures used by other entities. See...