Dirtt Environmental Solutions Ltd · TSX:DRT
Dirtt Environmental Solutions — Q4 2024 Earnings Presentation
20 slides from Dirtt Environmental Solutions's earnings presentation, Feb 27, 2025
Slide 1: Fourth Quarter 2024 Investor Deck – Supplement to Earnings Call
FOURTH QUARTER 2024 INVESTOR DECK – SUPPLEMENT TO EARNINGS CALL 2025 02 27 © DIRTT ALL RIGHTS RESE RVED 26/02/2025 FOURTH QUARTE R 2024 1
Slide 2: Advisory: Cautionary Statement Regarding Forward-Looking Statements
ADVISORY CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS and impair our ability to make investments in the business; turnover of our key “Risk Factors” in our Form 10-K for the year ended December 31, 2024 filed with executives and difficulties in recruiting or retaining key employees; ou
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES NOTE REGARDING USE OF NON-GAAP FINANCIAL MEASURES patents, net interest income on cash deposits, interest expense on outstanding Our consolidated financial statements are prepared in accordance with debt and debt facilities, tax expense and related party expense are exclu
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS © DIRTT ALL RIGHTS RESE RVED
Slide 5: Key Q4 Financial Highlights
KEY Q4 FINANCIAL HIGHLIGHTS • Revenue of $48.9 million in the fourth quarter of 2024, up 13% compared to the third quarter of 2024 and a decrease of 4% from the prior year period. • Gross profit was $17.5 million or 35.9% of revenue in the fourth quarter of 2024 compared to $16.8 million or 38.8% in
Slide 6: Gross Profit Margin + Adjusted Gross Profit Margin
F INA NCI A L RESULTS GROSS PROFIT MARGIN + ADJUSTED GROSS PROFIT MARGIN1 45% Fourth Quarter 2024 40.7% Highlights: 40% 39.5% 39.4% 39.2% 37.9% 38.8% 36.2% 36.9% 38.8% • Adjusted Gross Profit Margin 37.8% 35.8% 35% 37.3% 36.9% decreased 70 basis points over 35.9% 35.9% 32.0% 34.4% prior year quarter
Slide 7: Operating Expenses Breakdown
F INA NCI A L RESULTS OPERATING EXPENSES BREAKDOWN $8,000 Q4 2023 Q4 2024 Fourth Quarter 2024 $6,933 $7,000 Recurring Operating $6,000 $5,773 $5,652 Expense Summary: $5,112 $5,000 • The decrease in operating $4,000 expenses was primarily related to a $2.0 million decrease in salaries $3,000 $2,268 a
Slide 8: EBITDA and Adjusted EBITDA
F INA NCI A L RESULTS EBITDA AND ADJUSTED EBITDA1 Trending EBITDA and Adjusted EBITDA 1 Adjusted EBITDA EBITDA 30% Fourth Quarter 22.6% 2024 Highlights: 20% 13.9% • Seventh consecutive 13.1% 12.7% 13.0% 8.5% quarter of positive 10% 7.7% Adjusted EBITDA(1). 1.4% 7.0% 11.2% • EBITDA in Q4 benefited (2
Slide 9: Q4 2023 to Q4 2024 Net Income After Tax
F INA NCI A L RESULTS Q4 2023 TO Q4 2024 NET INCOME AFTER TAX Increase Decrease Total 5 4.0 4 2.8 3 0.8 0.8 1.2 2 USD millions (1.0) (0.3) 1 1.0 (1.3) 0 -1 -2 Adj EBITDA* Variances Gain on sale of software Interest expense FX and other Q4 '23 Net Income After Tax Impairment charge Depreciation SBC Q
Slide 10: Debt and Equity
F INA NCI A L RESULTS DEBT AND EQUITY COMMON SHARES REPURCHASED Total Debt Trending (SHARES NCIB) (In USD Thousands) $70,000 $65,435 DECEMBER 2024 (58,478) $60,000 $56,108 REPURCHASES $50,000 JANUARY 2025 (109,556) REPURCHASES $40,000 FEBRUARY 2025 (3,983,183) REPURCHASES* $30,000 $22,352 TOTAL REPU
Slide 11: Commercial + Operational Highlights
COMMERCIAL + OPERATIONAL HIGHLIGHTS © DIRTT ALL RIGHTS RESE RVED
Slide 12: Key Commercial + Operational Highlights
KEY COMMERCIAL + OPERATIONAL HIGHLIGHTS “DIRTT operates in a segment of the construction industry with an approximately $40 billion-dollar addressable market. Our opportunity continues to expand as we see more adoption of offsite construction methods.” — Benjamin Urban, CEO Revenue Diversification S
Slide 13: Key Commercial + Operational Highlights Continued
COMMERCI A L RESULTS KEY COMMERCIAL + OPERATIONAL HIGHLIGHTS CONTINUED Technology Products + Innovation Operations • Ended 2024 with an annual average on-time in- • Optimized ICE Manager to improve • The COVE (low-acuity solution for full (OTIF) delivery performance of 99.1%, interface emergency dep
Slide 14: Operational Efficiencies
O P E R A T I O N 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% 99.2% 20 97.7% 99.2% 18.7 98.3% $600K 18 $451,190 97.1% 95% $
Slide 15: Twelve-Month Pipeline
TWELVE-MONTH PIPELINE (IN USD MILLIONS) $300 $283 $278 $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 Q4 2024 © DIRTT ALL RIGHTS RESE RVED PRE SENTAT ION TIT LE: 15
Slide 16: Supplementary
SUPPLEMENTARY © DIRTT ALL RIGHTS RESE RVED
Slide 17: Liquidity + Additional Financial Highlights
F INA NCI A L RESULTS LIQUIDITY + ADDITIONAL FINANCIAL HIGHLIGHTS ( $ thousands) December 31, 2024 December 31, 2023 Cash and cash equivalents 29,288 24,744 • Total liquidity of $39.3 million at December Restricted cash 243 355 31, 2024 ($29.3 million of cash and Trade and accrued receivables, net 1
Slide 18: Summary of Consolidated Financial Results
F INA NCI A L RESULTS SUMMARY OF CONSOLIDATED FINANCIAL RESULTS For the period ended December 31 Three months Twelve months ( $ thousands, except per share amounts) 2024 2023 % Change 2024 2023 % Change Revenue 48,890 50,933 (4%) 174,313 181,931 (4%) Gross profit 17,539 19,238 (9%) 64,375 59,542 8%
Slide 19: Non-GAAP Financial Measures
F INA NCI A L RESULTS NON-GAAP FINANCIAL MEASURES For the period ended December 31 Three months Twelve months The following tables present a reconciliation for the three ( $ thousands, except per share amounts) 2024 2023 2024 2023 and twelve months ended December 31, 2024 and Net income ( loss) afte
Slide 20: © DIRTT ALL RIGHTS RESE RVED
© DIRTT ALL RIGHTS RESE RVED
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