20 slides from Dirtt Environmental Solutions's earnings presentation, Aug 8, 2024
Slide 1: Second Quarter 2024 Supplemental Information
SECOND QUARTER 2024 SUPPLEMENTAL INFORMATION 2024 08 08 © DIRTT ALL RIGHTS RESE RVED 1
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
ADVISORY CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Certain statements contained in this presentation (this “presentation”) are “forward-looking statements” within the meaning of “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and Section
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Our interim consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These GAAP financial statements include non-cash charges and other charges and benefits that we believe are unu
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS © DIRTT ALL RIGHTS RESE RVED
Slide 5: Key Q2 Financial Highlights
KEY Q2 FINANCIAL HIGHLIGHTS • Revenue of $41.2 million in the second quarter of 2024, up 1% compared to the first quarter of 2024 and a decrease of 8% from the prior year period. • Gross profit increased to $15.4 million or 37.3% of revenue in the second quarter of 2024 from $14.6 million or 32.5% o
Slide 6: Gross Profit and Adjusted Gross Profit Margin
F INA NCI A L RESULTS GROSS PROFIT AND ADJUSTED GROSS PROFIT1 MARGIN 45.0% Second Quarter 2024 Highlights: 40.0% 39.5% 39.4% 37.9% 36.2% 36.9% • Adjusted Gross Profit Margin increased 320 37.8% 37.3% 35.0% basis points over prior year quarter as a result 35.9% 32.0% 34.4% of improved material optimi
Slide 7: Operating Expenses Breakdown
F INA NCI A L RESULTS OPERATING EXPENSES BREAKDOWN Q2 2023 $7,000 Q2 2024 $6,626 Second Quarter 2024 Operating $6,062 Expense Summary: $6,000 $5,501 • Reduction in operating costs across most $5,000 categories as a result of more disciplined $4,391 discretionary spending. $4,000 • Current quarter re
Slide 8: EBITDA and Adjusted EBITDA
F INA NCI A L RESULTS EBITDA AND ADJUSTED EBITDA1 Trending EBITDA and Adjusted EBITDA 20.0% 13.1% 12.7% Second Quarter 2024 8.5% Highlights: 10.0% 7.7% • Fifth consecutive quarter of (2.7) 1.4% 4.1% 10.6% 8.0% 6.5% 7.0% positive Adjusted EBITDA. 0.0% (31.2%) (21.1%) (9.6%) • EBITDA in Q1 benefited f
Slide 9: Net Income After Tax
F INA NCI A L RESULTS NET INCOME AFTER TAX Q2 2023 to Q2 2024 Net Income (Loss) After Tax $ million © DIRTT ALL RIGHTS RESE RVED 9
Slide 10: Commercial + Operational Highlights
COMMERCIAL + OPERATIONAL HIGHLIGHTS © DIRTT ALL RIGHTS RESE RVED
Slide 11: Key Commercial & Operational Highlights
COMMERCI A L RESULTS KEY COMMERCIAL & OPERATIONAL HIGHLIGHTS We look forward to a strong future of pipeline growth and new opportunities “We are making great progress in strengthening our commercial organization and focusing on sustainable revenue growth. We are grateful to our employees, constructi
Slide 12: Key Commercial & Operational Highlights Continued
COMMERCI A L RESULTS KEY COMMERCIAL & OPERATIONAL HIGHLIGHTS CONTINUED • Products and Innovation o Hosted Connext, DIRTT's flagship innovation event at the DIRTT Experience Center in Chicago o Introduced The Cove, DIRTT's healthcare innovation that maximizes treatment room space without impacting th
Slide 13: Operational Efficiencies
OP ERATI ONA L RESULTS OPERATIONAL EFFICIENCIES Average Inventory per $M Revenue External Deficiencies Shipments On Time in Full (in USD) per $M Revenue (OTIF) $700K (# of external deficiencies) 100% 97.7% 98.1% 20 99.2% 99.7% $588,737 18.7 $600K 98.2% 18 97.1% 95% $500K 16 $451,190 14 $394,716 $400
Slide 14: Twelve-Month Pipeline
COMMERCI A L RESULTS TWELVE-MONTH PIPELINE (IN USD MILLIONS) $300 $283 $270 $270 $263 $252 $250 $220 $200 $150 $100 $50 $0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 © DIRTT ©2021ALL DIRT RIGHTS T ALL RESE RIGHTS RVED REVERSE D 14
Slide 15: Links to DIRTT Videos
LINKS TO DIRTT VIDEOS COMMERCI A L RESULTS Links to some great videos highlighting DIRTT How Google Turned a 90-Year-Old Train Terminal Into Its New $2.1B Office BTV Clean Tech Video Flat Iron Timelapse Calgary DIRTT Experience Center Micro-tour © DIRTT ALL RIGHTS RESE RVED 15
Slide 16: Supplementary
SUPPLEMENTARY © DIRTT ALL RIGHTS RESE RVED
Slide 17: Liquidity and Additional Financial Highlights
F INA NCI A L RESULTS LIQUIDITY AND ADDITIONAL FINANCIAL HIGHLIGHTS ($ thousands) June 30, 2024 December 31, 2023 Liquidity: Cash and cash equivalents 39,529 24,744 • $39.5 million of cash and cash equivalents as of Restricted cash 241 355 June 30, 2024 included net proceeds of $21.3 Trade and accru
Slide 18: Summary of Consolidated Financial Results
F INA NCI A L RESULTS SUMMARY OF CONSOLIDATED FINANCIAL RESULTS For the period ended June 30 Three months Six months ($ thousands, except per share amounts) 2024 2023 % Change 2024 2023 % Change Revenue 41,201 44,753 (8%) 82,048 81,461 1% Gross profit 15,375 14,557 6% 30,023 23,239 29% Gross profit
Slide 19: Non-GAAP Financial Measures
F INA NCI A L RESULTS NON-GAAP FINANCIAL MEASURES For the period ended June 30 ($ thousands, except per share amounts) Three months 2024 2023 Six months 2024 2023 Net income (loss) after tax for the period 596 2,206 3,641 (9,228) The following tables present a reconciliation for the Add back (deduct
Slide 20: © DIRTT All Rights Reserved
© DIRTT ALL RIGHTS RESE RVED