Dirtt Environmental Solutions Ltd · TSX:DRT
Dirtt Environmental Solutions — Q3 2024 Earnings Presentation
20 slides from Dirtt Environmental Solutions's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Supplemental Information
THIRD QUARTER 2024 SUPPLEMENTAL INFORMATION 2024 11 07 © DIRTT ALL RIGHTS RESERVED 06/11/2024 PRESENTATION TITLE: 1
Slide 2: Advisory: Cautionary Statement Regarding Forward-Looking Statements
ADVISORY CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Certain statements contained in this presentation (this “presentation”) are “forward-looking statements” within the meaning of “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and Section
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Certain statements contained in this presentation (this “presentation”) are “forward-looking statements” within the meaning of “safe harbor” provisions of the United States Private Securities Litigation Reform Act
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS © DIRTT ALL RIGHTS RESERVED
Slide 5: Key Q3 Financial Highlights
KEY Q3 FINANCIAL HIGHLIGHTS • Revenue of $43.4 million in the third quarter of 2024, up 5% compared to the second quarter of 2024 and a decrease of 12% from the prior year period. • Gross profit decreased to $16.8 million or 38.8% of revenue in the third quarter of 2024 from $17.1 million or 34.4% o
Slide 6: Gross Profit + Adjusted Gross Profit Margin
F I N A N C I A L R E S U LT S GROSS PROFIT + ADJUSTED GROSS PROFIT1 MARGIN 45% Gross Profit Adjusted Gross Profit Third Quarter 2024 Highlights: 40.7% 40% 39.5% 39.4% • Adjusted Gross Profit Margin increased 377 37.9% 36.2% 36.9% 38.8% basis points over prior year quarter as a 37.8% 37.3% result of
Slide 7: Operating Expenses Breakdown
F I N A N C I A L R E S U LT S OPERATING EXPENSES BREAKDOWN Q3 2023 Q3 2024 $7,000 Third Quarter 2024 Operating $6,161 Expense Summary: $6,000 $5,834 $5,183 • The increase in operating expenses was $5,000 $4,669 primarily related to a $1.2 million increase in professional services offset by $0.7 $4,
Slide 8: EBITDA and Adjusted EBITDA
F I N A N C I A L R E S U LT S EBITDA AND ADJUSTED EBITDA1 30% Trending EBITDA and Adjusted EBITDA1 Third Quarter 2024 22.6% Highlights: 20% • Sixth consecutive quarter of 13.1% 12.7% 8.5% positive Adjusted EBITDA(1). 10% 7.7% • EBITDA in Q3 benefited 1.4% 7.0% from gain on debt (2.7)% 4.1% 10.6% 8.
Slide 9: Net Income After Tax
F I N A N C I A L R E S U LT S NET INCOME AFTER TAX $ million *See Non-GAAP Financial Measures © DIRTT ALL RIGHTS RESERVED 9
Slide 10: Commercial + Operational Highlights
COMMERCIAL + OPERATIONAL HIGHLIGHTS © DIRTT ALL RIGHTS RESERVED
Slide 11: Key Commercial + Operational Highlights
KEY COMMERCIAL + OPERATIONAL HIGHLIGHTS “Our key differentiators, including a custom, adaptable product, industry-leading delivery time and sustainability benefits continue to attract end customers seeking a better alternative to traditional construction.” — Benjamin Urban, CEO Q3 Highlights • Clien
Slide 12: Key Commercial + Operational Highlights Continued
C O M M E R C I A L R E S U LT S KEY COMMERCIAL + OPERATIONAL HIGHLIGHTS CONTINUED Products + Innovation Technology Operations • New healthcare product, the COVE, was • Launched ICE Manager and Design Editor • Total recordable incident rate (TRIF) was 0.63, awarded "Most Innovative" and "Architect's
Slide 13: Key Commercial + Operational Highlights Continued
C O M M E R C I A L R E S U LT S KEY COMMERCIAL + OPERATIONAL HIGHLIGHTS CONTINUED Corporate Strategy • DIRTT identified four strategic priorities for the next three years: • Revenue growth • Continued expansion of DIRTT’s proprietary ICE software • Accelerated innovation • Investment in talent • Th
Slide 14: Operational Efficiencies
C O M M E R C I A L R E S U LT S OPERATIONAL EFFICIENCIES Average Inventory per External Deficiencies Shipments On Time in Full $M Revenue (in USD) per $M Revenue (OTIF) 99.7% $588,737 $700K (# of external deficiencies) 100% 98.2% 98.1% 20 97.7% 99.2% 99.2% 18.7 $600K 18 $451,190 97.1% $394,716 16 9
Slide 15: Twelve-Month Pipeline
TWELVE-MONTH PIPELINE (IN USD MILLIONS) $300 $283 $270 $270 $263 $252 $255 $250 $220 $200 $150 $100 $50 $0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 © DIRTT ALL RIGHTS RESERVED PRESENTATION TITLE: 15
Slide 16: Supplementary
SUPPLEMENTARY © DIRTT ALL RIGHTS RESERVED
Slide 17: Liquidity + Additional Financial Highlights
F I N A N C I A L R E S U LT S LIQUIDITY + ADDITIONAL FINANCIAL HIGHLIGHTS ($ thousands) September 30, 2024 December 31, 2023 Liquidity: Cash and cash equivalents 23,626 24,744 • Total liquidity of $34.3 million at September Restricted cash 241 355 30, 2024 ($23.6 million of cash and Trade and accru
Slide 18: Summary of Consolidated Financial Results
F I N A N C I A L R E S U LT S SUMMARY OF CONSOLIDATED FINANCIAL RESULTS For the period ended September 30 Three months Nine months ($ thousands, except per share amounts) 2024 2023 % Change 2024 2023 % Change Revenue 43,375 49,537 (12%) 125,423 130,998 (4%) Gross profit 16,813 17,065 (1%) 46,836 40
Slide 19: Non-GAAP Financial Measures
F I N A N C I A L R E S U LT S NON-GAAP FINANCIAL MEASURES The following tables present a reconciliation for the three and For the period ended September 30 Three months Nine months nine months ended September 30, 2024 and September 30, ($ thousands, except per share amounts) 2024 2023 2024 2023 202
Slide 20: © DIRTT ALL RIGHTS RESERVED
© DIRTT ALL RIGHTS RESERVED
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