Dexterra Group, Inc. · TSX:DXT
Dexterra — Q1 2024 Earnings Presentation
17 slides from Dexterra's earnings presentation, May 15, 2024
Slide 1: Q1 2024 Results
Q1 2024 Results Analyst & Investor Call May 15, 2024
Slide 2: Cautionary Statement
Cautionary Statement In this presentation, all amounts are in Canadian dollars, unless otherwise indicated. Any graphs, tables or other information in this presentation demonstrating the historical performance of Dexterra Group Inc. (“Dexterra” or “Dexterra Group”) or of any of its business units co
Slide 3: Bill McFarland speaking script
Bill speaking script: Thanks to everyone for joining and I am pleased to report: • Record EBITDA in Q2 with stronger results in all business units • Management's focus on profitability and execution continues to make a difference and set Dexterra up for future success • On an annualized basis we are
Slide 4: Mark Becker, Chief Executive Officer
Mark Becker Chief Executive Officer 4
Slide 5: Q1 Progress on the 2024 Business Plan
Q1 Progress on the 2024 Business Plan Revenue Trend Q1 Highlights ◦ Strong organic growth ◦ Robust WAFES market activity ◦ US IFM expansion with CMI acquisition ◦ Final stages of the Modular business sale Adjusted EBITDA Trend ◦ Share buy-back program renewed to complete original NCIB 5
Slide 6: Integrated Facilities Management
Integrated Facilities Management A growing Support Services business with an expanding footprint and diversified client base Q1 Trend ◦ Strong organic revenue growth of 11% ◦ New contracts and additional project work ◦ Inflation and labour cost management ◦ Expecting over 6% margins in the back half
Slide 7: Workforce Accommodations, Forestry, Energy Services
Workforce Accommodations, Forestry, Energy Services A strong business with a natural resource foundation Q1 Trend ◦ Mobilization of new major projects in 1H 2024 ◦ Strong high margin camp occupancy and access matting utilization ◦ Robust natural resource and infrastructure market activity ◦ Continue
Slide 8: Discontinued Operations - Modular Solutions
Discontinued Operations - Modular Solutions A manufacturing & services business Q4 2023 ◦ Early Q3 sale close anticipated ◦ Rework on social affordable housing projects 75%-90% complete ◦ Sales activity rebounding ◦ Education, commercial / industrial business strong FY 2023 8
Slide 9: Denise Achonu, Chief Financial Officer
Denise Achonu Chief Financial Officer 9
Slide 10: Financial Position
Financial Position ◦ Strong financial position and liquidity ◦ Sustaining capital 1.0%- 1.5% of revenue for 2024 ◦ Sale proceeds from Modular to reduce debt ◦ FCF conversion approximately 50% of Adjusted EBITDA for 2024 ◦ Original NCIB renewed ◦ Declared Q2 2024 dividend 10
Slide 11: Path Forward
Path Forward IFM ◦ Continued focus on execution and profitability 50%-60% ◦ Finalize Modular sale ◦ Deliver strong profitable organic growth ◦ Accretive M&A opportunities ◦ Maintain a strong balance sheet 11
Slide 12: Question & Answer Period
Question & Answer Period Questions (??) Lo
Slide 13: APPENDIX I - Supporting Charts
APPENDIX I - Supporting Charts 13
Slide 14: Revenue Reconciliation Q1 2023 vs Q1 2024
Appendix I Revenue Reconciliation Q1 2023 vs Q1 2024 14
Slide 15: Adjusted EBITDA Q1 2023 vs Q1 2024
Appendix I Adjusted EBITDA Q1 2023 vs Q1 2024 15
Slide 16: Revenue Reconciliation Q4 2023 to Q1 2024
Appendix I Revenue Reconciliation Q4 2023 to Q1 2024 16
Slide 17: Adjusted EBITDA Q4 2023 to Q1 2024
Appendix I Adjusted EBITDA Q4 2023 to Q1 2024 17