Altus Group Limited · TSX:AIF
Altus — Q1 2024 Earnings Presentation
26 slides from Altus's earnings presentation, May 2, 2024
Slide 1: Q1 2024 Earnings Call & Webcast
Q1 2024 Earnings Call & Webcast TSX: AIF | May 2, 2024
Slide 2: Forward-looking information & statements
Forward-looking information & statements Certain information in this presentation may constitute “forward-looking information” within the meaning of applicable securities legislation. All information contained in this presentation, other than statements of current and historical fact, is forward- lo
Slide 3: Financial review
Financial review Pawan Chhabra Chief Financial Officer
Slide 4: Consolidated Q1 2024 performance
Consolidated Q1 2024 performance Q1 2024 Q1 2023 Y/Y CHANGE Revenues $199.5 $190.8 4.3% *CC Profit (Loss) $(0.2) $(2.4) 93.7% REVENUE: Basic EPS Diluted EPS $(0.00) $(0.00) $(0.05) $(0.05) 100.0% 100.0% 4.3% *CC Adjusted EBITDA* $29.8 $26.5 12.9% *CC ADJUSTED EBITDA MARGIN*: Adjusted EBITDA Margin*
Slide 5: Growing revenues & expanding margins at Analytics
Growing revenues & expanding margins at Analytics Q1 2024: C$M $120 30% As reported CC* $100 25% Revenue $99.0M 4.6% 4.5% $80 20% Recurring $91.7M 7.5% 7.5% $60 15% Revenue* $40 10% Adjusted $23.1M 14.2% 14.6% EBITDA $20 5% $0 0% Adjusted Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 EBITDA 23.
Slide 6: Growing Analytics recurring revenue base
Growing Analytics recurring revenue base C$ (M) C$M Recurring Revenue* $100 $93 $92 Q1 2024: $89 $87 $90 $86 $85 $91.7M 7.5% $80 $77 $71 $70 $68 $60 $60 $55 $50 Organic Recurring Revenue* was up 6.4% $50 $43 $41 $43 $43 $40 $40 93% of Analytics revenues were recurring in $30 Q1 2024 vs. 90% in Q1 20
Slide 7: Expanding Analytics margins
Expanding Analytics margins Adjusted EBITDA Margin* Q1 2024: 30% 26.9% 27.3% 23.3% 210 bps 25% 24.5% 24.3% *CC 23.9% 23.8% 23.3% 20% 21.4% 20.7% Plans to deliver 400 – 500 bps of annualized 16.8% margin improvement in 2024, to be driven 15% 16.6% by: 14.0% Revenue growth (even on single-digit %) 1
Slide 8: Steady ARGUS Cloud adoption
Steady ARGUS Cloud adoption Cloud Adoption Rate* 80% 72% 74% 75% 70% 70% 67% 64% 60% 55% 52% 50% 42% 44% 40% 29% 30% 26% 22% 20% 14% 8% 10% 10% 6% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 8 * Non-GAAP a
Slide 9: Adding new bookings at Analytics
Adding new bookings at Analytics C$M C$ (M) New Bookings* $40 $34.2 Q1 2024 NEW BOOKINGS*: total $35 $31.1 total $28.0 $19.7M 7.8% $26.9 $30 total total $26.3 $24.6 total $23.5 total $22.2 $25 $21.3 $22.1 $20.5 total $21.4 total $19.7 total total total total total $20 $15.0 $14.9 $20.8 Q1 2024 RECUR
Slide 10: Steady Property Tax performance
Steady Property Tax performance Q1 2024: C$M $100 50% As reported CC* $90 45% $80 40% Revenue $74.1M 11.2% 10.2% $70 35% $60 30% Adjusted $18.8M 24.9% 24.9% $50 25% EBITDA $40 20% Adjusted $30 15% EBITDA 25.4% 280 bps 300 bps $20 10% Margin* $10 5% $0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 11: Appraisals & Development Advisory performance
Appraisals & Development Advisory performance C$M Q1 2024: $35 25% $30 20% As reported CC* $25 15% Revenue $26.6M 10.4% 9.6% $20 $15 10% Adjusted -$0.1M 104.0% 103.2% EBITDA $10 5% $5 Adjusted 0% EBITDA -0.5% 1050 bps 1040 bps $0 Margin* Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -$5 2020 20
Slide 12: Balance sheet enables continued investment in growth
Balance sheet enables continued investment in growth HE A LT HY B A L A NCE S HE E T CA P I TA L A L L O CAT I O N P RI O RI T I E S $44.3 M CASH POSITION Invest in Altus • Growth investments to drive revenue & earnings growth • Value enhancing strategic & bolt-on Invest in acquisitions $328.6 M BAN
Slide 13: CEO remarks
CEO remarks Jim Hannon Chief Executive Officer
Slide 14: Strongly positioned to lead CRE asset intelligence
Strongly positioned to lead CRE asset intelligence • Transforming Altus to lead CRE intelligence through new, innovative advanced analytics capabilities for portfolio performance insights • Altus’ Intelligence as a Service model (which combines data, advanced analytics & advisory) is highly differen
Slide 15: Question period
Question period For additional inquiries please email IR@altusgroup.com
Slide 16: Appendix
rN AltusGroup APPENDIX
Slide 17: Business segment contribution
Business segment contribution Revenue C$M Analytics Property Tax Appraisals & Development Advisory $900 $773M C O N S O L I D AT E D F Y 2 0 2 3 : $800 $735M $700 $625M 117 $773M 121 $562M $600 $526M 114 $430M $467M 263 $500 $398M 111 113 268 $400 107 103 260 96 $300 177 213 245 Revenue* 2.2% y/y 15
Slide 18: 2024 business outlook
2024 business outlook FY 2024 business outlook: • 8 – 12% Recurring Revenue* growth (excluding REVS**) ANALYTICS • 400 – 500 bps of Adjusted EBITDA margin* expansion • Low-to-mid single digit revenue growth PROPERTY TAX • 50 – 200 bps Adjusted EBITDA margin* expansion • Low single digit revenue grow
Slide 19: Resilient business model provides stability
Resilient business model provides stability APAC, 4% Appraisals & Development Advisory 13% Trusted by the largest CRE leaders Diversified EMEA, 20% Canada, 27% Equity Debt Valuers & Banks revenue base Property Tax Analytics 50% Investors Investors Appraisers 37% Q1 2024 U.S., 49% Developers Corporat
Slide 20: Reportable segment performance
Reportable segment performance Revenues Quarter ended March 31 In thousands of dollars 2024 2023 % Change CC* % Change Analytics 98,996 94,644 4.6% 4.5% Property Tax 74,125 66,684 11.2% 10.2% Appraisals and Development Advisory 26,622 29,712 (10.4%) (9.6%) Intercompany eliminations (200) (216) (7.4%
Slide 21: Selected financial information
Selected financial information Selected Financial Information Quarter ended March 31 In thousands of dollars, except for per share amounts 2024 2023 Revenues $ 199,543 $ 190,824 Canada 27% 31% U.S. 49% 44% EMEA 20% 21% Asia Pacific 4% 4% Adjusted EBITDA* $ 29,752 $ 26,528 Adjusted EBITDA margin* 14.
Slide 22: Reconciliation of Profit (Loss) to Adjusted EBITDA and Adjusted Earnings
Reconciliation of Profit (Loss) to Adjusted EBITDA and Adjusted Earnings Quarter ended December 31 In thousands of dollars, except for per share amounts 2024 2023 (1) Management uses the non-GAAP occupancy costs calculated on a similar basis prior to the adoption of IFRS 16 when analyzing Profit (lo
Slide 23: Debt, leverage & liquidity
Debt, leverage & liquidity Funded debt to EBITDA Net debt to Adjusted Liquidity as at March 31, 2024: Quarter end Cash position Total bank debt ratio** EBITDA ratio* Q1 2024 $44.3 M $328.6 M 2.15x 2.06x Cash $44.3 M Q4 2023 $41.9 M $308.6 M 2.06x 1.98x Bank Credit Facilities Available $221.4 M Q3 20
Slide 24: Summary of consolidated quarterly results
Summary of consolidated quarterly results 2024 2023 2022 In thousands of dollars, except for Mar 31 Fiscal 2023 Dec 31 Sep 30 Jun 30 Mar 31 Fiscal 2022 Dec 31 Sep 30 Jun 30 per share amounts Results of Operations Revenues $ 199,543 $ 772,843 $ 191,574 $ 185,232 $ 205,213 $ 190,824 $ 735,451 $ 183,76
Slide 25: Non-GAAP and other measures definitions
Non-GAAP and other measures definitions Altus Group uses certain non-GAAP financial measures, non-GAAP ratios, total of segments measures, capital management measures, and supplementary and other financial measures as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disc
Slide 26: Non-GAAP and other measures definitions
Non-GAAP and other measures definitions Net debt to Adjusted EBITDA leverage ratio: Altus Group uses Net debt to Adjusted EBITDA leverage ratio as a measure of its ability to service debt and other long-term obligations. How it’s calculated: Net debt (total borrowings less cash and cash equivalents,