Dye & Durham Ltd. · TSX:DND
Dye & Durham — Q3 FY2023 Earnings Presentation
17 slides from Dye & Durham's earnings presentation, May 10, 2023
Slide 1: Q3 FY2023 Quarterly Results Presentation
Q3 FY2023 QUARTERLY RESULTS PRESENTATION May 10, 2023 When being certain is everything dyedurham.com dyedurham.com
Slide 2: Disclaimer
ibdroot\projects\IBD-NY\driveins2022\902367_1\Presentations\05. Lender Presentation\DND Private LP - November 2022_v26.pptx DISCLAIMER This presentation has been prepared for informational purposes only. These materials are not, and in no circumstances are they to be construed as, a prospectus, an o
Slide 3: Disclaimer (Cont'd)
ibdroot\projects\IBD-NY\driveins2022\902367_1\Presentations\05. Lender Presentation\DND Private LP - November 2022_v26.pptx DISCLAIMER (CONT’D) Although the Company bases these forward-looking statements on assumptions that it believes are reasonable when made, the Company cautions investors that fo
Slide 4: Q3 FY2023 Business Highlights
ibdroot\projects\IBD-NY\driveins2022\902367_1\Presentations\05. Lender Presentation\DND Private LP - November 2022_v26.pptx Q3 FY2023 BUSINESS HIGHLIGHTS Practice Management Software $461 mm $253 mm D&D’s market-leading practice management software lets legal professionals LTM Mar-23 LTM Mar-23 exec
Slide 5: Full Suite of Market Leading Legal Software
ibdroot\projects\IBD-NY\driveins2022\902367_1\Presentations\05. Lender Presentation\DND Private LP - November 2022_v26.pptx FULL SUITE OF MARKET LEADING LEGAL SOFTWARE Dye & Durham is one of the world’s largest providers of mission-critical software that law firms rely on every day to efficiently an
Slide 6: Leading Among Public Software Companies, Lagging Valuation
LEADING AMONG PUBLIC SOFTWARE COMPANIES, LAGGING VALUATION When viewed relative to all publicly traded North American software companies with Adj. EBITDA1 of greater than $200 million, Dye & Durham’s valuation multiple ranks 45 out of 52 companies, despite being top quartile on revenue growth + Adj.
Slide 7: Q4 FY2023 Guidance
Q4 FY2023 GUIDANCE Dye & Durham is forecasting ~$115 – $120 mm in revenue for Q4 FY2023, with anticipated Adj. EBITDA1 of ~$65 mm – $70 mm2 Adj. EBITDA1 $65 mm - $70 mm April May / June May / June May / June May / June Q4 FY23 Business Days (Canada) 18 44 44 44 44 62 Note: All figures in CAD unless
Slide 8: Significant Share Price Discount
SIGNIFICANT SHARE PRICE DISCOUNT D&D is currently trading at a significant discount to its peers, based on FY2024 consensus EBITDA estimates2,3. Illustratively, at the peer median of 19.2x EV / FY2024 EBITDA1,2,3, D&D would trade at $71.54 per share D&D Share Price $100.24 Implies a ~359% uplift to
Slide 9: Cost Reduction Initiative
COST REDUCTION INITIATIVE Dye & Durham's most recent cost reduction initiative has resulted in savings that exceeded internal targets, positioning the business strongly for future growth Annualized Cost Savings Breakdown ($ 000’s) Q3 Q3 Annualized 2023 Operating expenses 1 48,033 192,132 Less: Impac
Slide 10: Historical Growth in Annual Recurring Contractual Revenue
HISTORICAL GROWTH IN ANNUAL RECURRING CONTRACTUAL REVENUE Growth in annual recurring contractual revenue is a result of D&D’s successful practice management subscription sales initiative and strategic M&A Annual Recurring Contractual Revenue % of Annual Recurring Contractual Revenue 2% 4% 7% 10% 13%
Slide 11: Strategic Plan
STRATEGIC PLAN Dye & Durham’s vision is to be the to be the world’s most trusted provider of mission-critical software for legal, regulatory and business professionals Strategic Theme Objective • Achieve annual 20-25% Adj. EBITDA1 growth Deliver strong and sustainable results • Create more predictab
Slide 12: Strong Track Record of Executing and Integrating Acquisitions
ibdroot\projects\IBD-NY\driveins2022\902367_1\Presentations\05. Lender Presentation\DND Private LP - November 2022_v26.pptx STRONG TRACK RECORD OF EXECUTING AND INTEGRATING ACQUISITIONS Since our IPO in July 2020, D&D has deployed a total of ~$1.8 billion on acquisitions across Canada, UK, Ireland,
Slide 13: Quarterly Financial Performance
QUARTERLY FINANCIAL PERFORMANCE Dye & Durham continues to effectively navigate the current high interest rate environment, delivering stable financial performance against significant macroeconomic headwinds Revenue ($ mm) Adjusted EBITDA1 ($ mm) 129.7 Adj. EBITDA EBITDA Margin % 122.9 120.2 $115 - $
Slide 14: Annual Financial Performance
ANNUAL FINANCIAL PERFORMANCE Dye & Durham has scaled significantly over the last many years, with a revenue CAGR of 69% from FY2018 to FY2023 forecasts1 Revenue ($ mm) Adjusted EBITDA2 ($ mm) 474.8 Adj. EBITDA Adj. EBITDA Margin % $446 - $451 59% 60% 56% 56% 56% 54% - 55% 267.0 $243 - $248 208.9 116
Slide 15: Capacity for Growth
CAPACITY FOR GROWTH Dye & Durham’s strong and stable revenue profile and sticky customer base mean the business is well-equipped to generate strong returns to support future growth Leverage Ratio ($ mm) FY2024 Unlevered Free Cash Flow to Adj. EBITDA2,4,5,6,7 As of March 31, 2023 Dye & Durham ranks i
Slide 16: Appendix
APPENDIX When being certain is everything Strictly private and confidential for discussion purposes only / 16
Slide 17: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Net Income to Adjusted EBITDA (C$ 000’s) Three months ended March 31, Nine months ended March 31, 2023 2022 2023 2022 Income for the period $(35,147) $(7,026) $(81,464) $11,096 Amortization and depreciation $37,088 $36,204 $114,477 $94,078 Finance costs, net $40,279 $1