Business
Dexterra Group Inc. Announces Results for Q4 and Year Ended December 31, 2023
Toronto, Ontario--(Newsfile Corp. - March 7, 2024) - Dexterra Group Inc. (TSX: DXT) Highlight...
About this update from Dexterra Group, Inc.
[{"type":"text","content":"Dexterra Group Inc. Announces Results for Q4 and Year Ended December 31, 2023Toronto, Ontario--(Newsfile Corp. - March 7, 2024) - Dexterra Group Inc. (TSX: DXT)HighlightsThe Corporation generated strong results for the 2023 year with consolidated revenue of $1.1 billion, an increase of 15.0% or $145.7 million compared to $971.5 million in the prior year. The increase in revenue was due to continued growth in IFM and WAFES including the positive impact of the unprecedented wildfire activity in 2023. The Corporation generated consolidated revenue of $270.5 million for Q4 2023 which increased $16.6 million, or 6.6%, compared to Q4 2022. This was mainly driven by the mobilization of new wins in IFM, and robust workforce accommodations activity in WAFES despite the normal holiday season slowdown period. These increases were partially offset by lower modular revenue related to delays in completing certain social affordable housing projects due to manufacturing quality, subcontractor challenges and remediation work;Adjusted EBITDA for 2023 was $100.6 million which is a record for the Corporation and an increase in Adjusted EBITDA of $35.9 million or 55% compared to the prior year. This was driven primarily by higher business activity in WAFES as well as significantly improved profitability in IFM due to new sales growth and operational improvements. Adjusted EBITDA for Q4 2023 was $12.6 million and $14.0 million in Q4 2022. Increased profitability in the WAFES and IFM business units for Q4 2023 as compared to Q4 2022 was offset by an EBITDA loss of $10.9 million in the Modular business including a provision of $5.7 million to cover 2024 rework and remediation related to manufacturing quality and third-party design and subcontractor issues;The Board and Management recently completed a strategic review of the Modular business and are currently in discussions with a potential buyer for the sale of the business unit. We believe our decision to pursue a sale of the Modular business will be a positive for our Modular employees, customers and shareholders and will allow the Corporation to simplify its business and deploy capital in areas of the business with stronger returns;Consolidated net earnings were $26.8 million for 2023 compared to $3.7 million in 2022 and included non-recurring items of $6.5 million (2022 - $12.1 million). Earnings p...