Altus Group Limited · TSX:AIF
Altus — Q2 2024 Earnings Presentation
25 slides from Altus's earnings presentation, Aug 8, 2024
Slide 1: Q2 2024 Earnings Call & Webcast
Q2 2024 Earnings Call & Webcast TSX: AIF | August 8, 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 Q2 2024 performance
Consolidated Q2 2024 performance Q2 2024 Q2 2023 Y/Y CHANGE REVENUE: Revenues $206.7 $205.2 0.6% *CC Profit (Loss) $2.3 $11.9 80.7% Analytics Property Tax Basic EPS $0.05 $0.26 80.8% Appraisals & Development Advisory Diluted EPS $0.05 $0.26 80.8% Adjusted EBITDA* $36.8 $44.7 19.2% *CC ADJUSTED EBITD
Slide 5: Analytics: growing revenues & expanding margins
Analytics: growing revenues & expanding margins Q2 2024: C$M $120 30% As reported CC* $100 25% Revenue $102.8M 3.0% 1.4% $80 20% Recurring $60 $95.2M 7.2% 5.5% 15% Revenue* $40 10% Adjusted $26.8M 12.9% 10.3% EBITDA $20 5% $0 0% Adjusted Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 EBITDA 26.1% 230 bps 210 bps 202
Slide 6: Analytics: resilient & growing recurring revenue base
Analytics: resilient & growing recurring revenue base C$ (M) C$M Recurring Revenue* $100 $95 $93 $92 Q2 2024: $89 $87 $90 $86 $85 $95.2M 5.5% $80 $77 $71 $70 $68 $60 $60 $55 $50 Organic Recurring Revenue* was up 4.0% $50 $43 $41 $43 $43 $40 $40 93% of Analytics revenues were recurring in Q2 2024 vs.
Slide 7: Analytics: expanding margins
Analytics: expanding margins Q2 2024: Adjusted EBITDA Margin* 30% 26.9% 27.3% 26.1% 210 bps 25% 26.1% *CC 24.5% 24.3% YTD 2024: 23.9% 23.8% 23.3% 20% 21.4% 210 bps 20.7% 16.8% 24.7% 15% 16.6% *CC 14.0% 10% Plans to deliver 400 – 500 bps of annualized margin improvement in 2024, to be driven by: 410
Slide 8: Property Tax: steady performance
Property Tax: steady performance C$M Q2 2024: $100 50% 50% $90 45% 45% As reported CC* $80 40% 40% $70 35% Revenue $76.3M 1.6% 0.0% 35% $60 30% 30% $50 25% Adjusted 20% $18.8M 33.3% 34.4% $40 20% EBITDA $30 15% 15% 10% Adjusted $20 10% EBITDA 24.7% 1290 bps 1290 bps $10 5% 5% Margin* $0 0% 0% Q1 Q2
Slide 9: Appraisals & Development Advisory: navigating macro conditions
Appraisals & Development Advisory: navigating macro conditions C$M Q2 2024: $35 20% 18% $30 16% As reported CC* $25 14% Revenue $27.8M 8.9% 8.9% $20 12% 10% $15 Adjusted 8% $2.4M 27.0% 27.1% EBITDA $10 6% $5 4% Adjusted 2% EBITDA 8.8% 210 bps 220 bps $0 Margin* Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 202
Slide 10: 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 $49.5 M CASH POSITION Firepower to invest in growth $306.4 M BANK DEBT $293.1 M TOTAL LIQUIDITY* AS AT JUNE 30, 2024 2.11x FUNDED DEBT TO EBITDA RATIO** ~$600 M NET PROCEEDS FROM PLANNED PROPERTY TAX DIVESTITURE***
Slide 11: CEO remarks
CEO remarks Jim Hannon Chief Executive Officer
Slide 12: Analytics: steady ARGUS Cloud adoption
Analytics: steady ARGUS Cloud adoption Cloud Adoption Rate* 90% 80% 74% 75% 76% 70% 72% 70% 67% 64% 60% 55% 52% 50% 42% 44% 40% 29% 30% 26% 22% 20% 14% 8% 10% 10% 6% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 20
Slide 13: Analytics: adding new bookings
Analytics: adding new bookings C$M C$ (M) New Bookings* $40 $34.2 Q2 2024 NEW BOOKINGS*: total $35 $31.1 total $28.0 $19.6M 21.9% $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 $19.6 total total total total total total $20 $15.0 $14.9 $20.8 Q2
Slide 14: 2024 business outlook
2024 business outlook • Withdrawing guidance for the Property Tax segment post signing of definitive agreement to divest the business • Refining 2024 business outlook at the mid-year mark to reflect current market expectations of a slower than originally anticipated market recovery in the second hal
Slide 15: Question period
Question period For additional inquiries please email IR@altusgroup.com
Slide 16: Appendix
rN AltusGroup APPENDIX
Slide 17: Business segment contribution
Business segment contribution Revenue C$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 151
Slide 18: Resilient business model provides stability
Resilient business model provides stability APAC, 4% Appraisals & Development Advisory 13% Trusted by the largest CRE leaders Diversified EMEA, 21% Canada, 25% Equity Debt Valuers & Banks revenue base Property Tax Analytics 50% Investors Investors Appraisers 37% Q2 2024 U.S., 50% Developers Corporat
Slide 19: Reportable segment performance
Reportable segment performance Revenues Three months ended June 30, Six months ended June 30, % CC* % % CC* % In thousands of dollars 2024 2023 2024 2023 Change Change Change Change Analytics 102,754 99,740 3.0% 1.4% 201,750 194,385 3.8% 2.9% Property Tax 76,316 75,121 1.6% 0.0% 150,441 141,805 6.1%
Slide 20: Selected financial information
Selected financial information Selected Financial Information Three months ended June 30, Six months ended June 30, In thousands of dollars, except for per share 2024 2023 2024 2023 amounts Revenues $ 206,705 $ 205,213 $ 406,248 $ 396,037 Canada 25% 24% 26% 28% U.S. 50% 50% 50% 47% EMEA 21% 22% 20%
Slide 21: Reconciliation of Profit (Loss) to Adjusted EBITDA and Adjusted Earnings
Reconciliation of Profit (Loss) to Adjusted EBITDA and Adjusted Earnings Three months ended June 30 Six months ended June 30, (1) Management uses the non-GAAP occupancy costs calculated on In thousands of dollars, except for per share amounts 2024 2023 2024 2023 a similar basis prior to the adoption
Slide 22: Debt, leverage & liquidity
Debt, leverage & liquidity Funded debt to EBITDA Net debt to Adjusted Liquidity as at June 30, 2024: Quarter end Cash position Total bank debt ratio** EBITDA ratio* Q2 2024 $49.5 M $306.4 M 2.11x 1.97x Cash $49.5 M Q1 2024 $44.3 M $328.6 M 2.15x 2.06x Bank Credit Facilities Available $243.6 M Q4 202
Slide 23: Summary of consolidated quarterly results
Summary of consolidated quarterly results 2024 2023 2022 In thousands of dollars, except Jun 30 Mar 31 Fiscal 2023 Dec 31 Sep 30 Jun 30 Mar 31 Fiscal 2022 Dec 31 Sep 30 Jun 30 for per share amounts Results of Operations Revenues $ 206,705 $ 199,543 $ 772,843 $ 191,574 $ 185,232 $ 205,213 $ 190,824 $
Slide 24: 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 25: 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,