Altus Group Limited · TSX:AIF
Altus — Q3 2024 Earnings Presentation
25 slides from Altus's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Earnings Call & Webcast
Q3 2024 Earnings Call & Webcast TSX: AIF | November 7, 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 results
Consolidated results In Q3 2024 the results from Property Tax have been classified as Discontinued Operations. Accordingly, all amounts except for Free Cash Flow and net cash related to operating activities represent results from Continuing Operations. Q3 2024 REVENUE: Q3 2024 Q3 2023 Y/Y CHANGE Rev
Slide 5: Analytics results
Analytics results Steady revenue growth & margin expansion Q3 2024: C$M $120 35% As reported CC* $100 30% Revenue $101.8M 6.8% 4.7% 25% $80 20% Recurring $95.4M 9.1% 7.0% $60 Revenue* 15% $40 Adjusted 10% $30.8M 32.1% 28.5% EBITDA $20 5% Adjusted $0 0% EBITDA 30.3% 580 bps 560 bps Q1 Q2 Q3 Q4 Q1 Q2
Slide 6: Analytics Recurring Revenue
Analytics Recurring Revenue* Resilient & growing recurring revenue base C$ (M) C$M Q3 2024: $120 $100 $86 $85 $89 $87 $93 $92 $95 $95 $95.4M 7.0% $80 $77 $68 $71 • Organic Recurring Revenue* was up 5.3% $60 $60 $55 • 94% of Analytics revenues were recurring $50 $43 $43 vs. 92% in the prior year $40
Slide 7: Analytics Adjusted EBITDA margin
Analytics Adjusted EBITDA margin* Steady margin expansion Q3 2024: 35% 30.3% 560 bps 30% *CC 30.3% YTD 2024: 26.9% 27.3% 25% 26.1% 20% 23.9% 20.7% 21.4% 23.8% 24.5% 24.3% 23.3% 26.6% 320 bps *CC 16.6% 16.8% 15% 14.0% Plans to deliver 400 – 500 bps of annualized 10% margin improvement in 2024, to be
Slide 8: Appraisals & Development Advisory results
Appraisals & Development Advisory results Navigating macro conditions & enhancing profitability C$M $35 20% Q3 2024: 18% $30 16% $25 As reported CC* 14% $20 12% Revenue $26.8M 8.5% 9.3% 10% $15 8% Adjusted $10 6% $3.2M 7.5% 4.7% EBITDA $5 4% 2% Adjusted $0 EBITDA 11.9% 180 bps 160 bps Q1 Q2 Q3 Q4 Q1
Slide 9: Balance sheet
Balance sheet Firepower to invest in growth $39.6M CASH POSITION $283.5M TOTAL LIQUIDITY* AS AT SEPTEMBER 30, 2024 $306.1M BANK DEBT ~$600M NET PROCEEDS FROM PLANNED PROPERTY TAX DIVESTITURE*** 2.07x FUNDED DEBT TO EBITDA RATIO** * Non-GAAP and other financial measure | All Balance Sheet figures are
Slide 10: CEO remarks
CEO remarks Jim Hannon Chief Executive Officer
Slide 11: Analytics New Bookings
Analytics New Bookings* Focusing on adding recurring new bookings C$M C$ (M) $40 $34.2 Q3 2024 NEW BOOKINGS*: total $35 $31.1 total $28.0 $21.3M 5.2% $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 $21.3 total total total total $19.7 $19.6 total total
Slide 12: Cloud Adoption Rate
Cloud Adoption Rate* Successful transition to subscription revenue 90% 79% 80% 76% 72% 74% 75% 70% 70% 67% 64% 60% 55% 52% 50% 42% 44% 40% 29% 30% 26% 22% 20% 14% 8% 10% 10% 6% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 202
Slide 13: Introducing ARGUS Intelligence
Introducing ARGUS Intelligence New product built to drive CRE performance, powered by the Altus Intelligence Platform ARGUS INTELLIGENCE … delivers asset, portfolio, and benchmark management for performance optimization C O R E C A PA B I L I T I E S : What’s new? • Asset Manager functionality Add
Slide 14: Question period
Question period For additional inquiries please email IR@altusgroup.com
Slide 15: Appendix
rN AltusGroup APPENDIX
Slide 16: 2024 business outlook
2024 business outlook FY 2024 business outlook: YTD results: • 6 – 9% Recurring Revenue* growth 6.7% A N A LY T I C S UNCHANGED • 400 – 500 bps of Adjusted EBITDA margin* expansion 3 2 0 bps APPRAISALS & • High single digit revenue decline (updated from low single digit decline) 9.3% D E V E L O P M
Slide 17: Continuing Operations business segment contribution
Continuing Operations business segment contribution Revenue C$M Analytics Appraisals & Development Advisory $600 $510M $500 $467M 117 $400 $365M 121 $313M $317M $290M $300 $271M 114 $247M Revenue 111 113 107 $200 96 103 393 74% 346 Recurring 251 $100 168 183 202 204 Revenue* 151 $0 2016 2017 2018 20
Slide 18: Resilient business model provides stability
Resilient business model provides stability APAC, 8% Appraisals & Development Advisory 21% Trusted by the largest CRE leaders Stable EMEA, 16% Canada, 20% Equity Debt Valuers & Banks revenue base Investors Investors Appraisers Q3 2024 Analytics Developers Corporates Brokers 79% U.S., 56% ANALYTICS C
Slide 19: Reportable segment performance
Reportable segment performance Revenues Three months ended September 30, Nine months ended September 30, % CC* % % CC* % In thousands of dollars 2024 2023 2024 2023 Change Change Change Change Analytics $ 101,811 $ 95,338 6.8% 4.7% $ 303,561 $ 289,723 4.8% 3.5% Appraisals and Development Advisory 26
Slide 20: Selected financial information
Selected financial information Selected Financial Information Three months ended September 30, Nine months ended September 30, In thousands of dollars, except for per share 2024 2023 2024 2023 amounts Revenues $ 128,419 $ 124,450 $ 384,226 $ 378,682 Canada 20% 23% 21% 23% U.S. 56% 54% 56% 54% EMEA 1
Slide 21: Reconciliation of Profit (Loss) to Adjusted EBITDA and Adjusted Earnings
Reconciliation of Profit (Loss) to Adjusted EBITDA and Adjusted Earnings (1) Comparative figures have been restated to reflect discontinued Three months ended September 30, Nine months ended September 30, operations. In thousands of dollars, except for per share amounts 2024 2023 2024 2023 (2) Manag
Slide 22: Debt, leverage & liquidity
Debt, leverage & liquidity Funded debt to EBITDA Quarter end Cash position Total bank debt ratio** Q3 2024 $39.6 M $306.1 M 2.07x Q2 2024 $49.5 M $306.4 M 2.11x Q1 2024 $44.3 M $328.6 M 2.15x Liquidity as at September 30, 2024: Q4 2023 $41.9 M $308.6 M 2.06x Cash $39.6 M Q3 2023 $44.7 M $314.1 M 2.0
Slide 23: Summary of consolidated quarterly results
Summary of consolidated quarterly results 2024 2023 2022 In thousands of dollars, except for per Sep 30 Jun 30 Mar 31 Fiscal 2023 Dec 31 Sep 30 Jun 30 Mar 31 Fiscal 2022 Dec 31 share amounts Results of Operations Revenues $ 128,419 $ 130,392 $ 125,418 $ 509,734 $ 131,052 $ 124,450 $ 130,092 $ 124,14
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 New Bookings, Organic New Bookings, Recurring New Bookings and Non-Recurring New Bookings: For its Analytics reportable segment, Altus Group uses New Bookings, Organic New Bookings, Recurring New Bookings and Non- Recurring New Bookings as measures to track th