DE:CC - Decisive Dividend Corporation Reports Record Quarterly Results for the Second Quarter of 2022

(TheNewswire)

August 11, 2022 – TheNewswire - Kelowna, British Columbia: Decisive Dividend Corporation (TSXV:DE) (the “Company” or “Decisive”) today reported itsfinancial results for the three and six months ended June 30, 2022.

Highlights of the Company’s financial performance in Q2 2022 includethe following:

• Consolidated sales increased 63% to a record $23.2 million in Q2 2022compared to $14.2 million in Q2 2021.

• The quarterly sales increase brings consolidated sales for the firsthalf of 2022 to $41.9 million, an increase of $13.7 million, or 49%,relative to the first half of 2021.

• Generated a record $3.3 million in Adjusted EBITDA* in Q2 2022, anincrease of 30% relative to Q2 2021. Excluding subsidies, Q2 2022Adjusted EBITDA* was $2.6 million, or 322%, higher than Q2 2021.

• Adjusted EBITDA* in the first half of 2022 of $5.7 million representsa 20% increase compared to the half of 2021. Excluding subsidies,year-to-date 2022 Adjusted EBITDA* was $3.1 million, or 124%, higherthan the first half of 2021.

• Generated profit of $0.9 million, or $0.07 per share, in Q2 2022, anincrease of 49%, or $0.02 per share compared to Q2 2021.

• In the first half of 2022, generated profit of $1.4 million, or $0.11per share, an increase of 60%, or $0.04 per share compared to thefirst half of 2021.

• In Q2 2022, increased the per share monthly dividend to $0.03 from$0.025 previously. The increased monthly dividend represents a $0.36per share dividend on an annualized basis.

Selected FinancialHighlights:

The following are selected financial highlights of Decisive for thethree and six ended June 30, 2022. All amounts are expressed inCanadian dollars. The Company’s Unaudited - interim condensedconsolidated financial statements as well as its management’sdiscussion and analysis (“MD&A”) are posted on SEDAR and onDecisive’s website ( www.decisivedividend.com ).

* Adjusted EBITDA isnot a recognized financial measure under International FinancialReporting Standards (IFRS) and therefore may not be comparable tosimilar measures presented by other issuers, but it is used bymanagement to assess the performance of the Company and its segments.See ”Non-IFRS Financial Measures” later in this press release forthe full description of Adjusted EBITDA and a reconciliation ofapplicable IFRS measures to non-IFRS measures.

Q2 2022 Highlights:

• Consolidated sales increased 63% to $23.2 million compared to $14.2million in Q2 2021.

• Consolidated gross profit increased 46% to $7.8 million from $5.3million in Q2 2021. Excluding subsidies, Q2 2022 gross profit was $3.4million, or 80%, higher than Q2 2021.

• Consolidated gross profit percentages decreased to 33% from 37% in Q22021, driven primarily by the decrease in government subsidies. Absentsubsidies, gross profit percentages were 3% higher than the 30%pre-subsidy gross profit percentages in Q2 2021.

• Consolidated Adjusted EBITDA* increased to $3.3 million, up 30%relative to Q2 2021. Excluding subsidies, Q2 2022 Adjusted EBITDA* was$2.6 million, or 322%, higher than Q2 2021.

• Strong performance across the portfolio of businesses, with eachbusiness experiencing robust customer demand.

• In the finished product segment, the sales generated by MarketingImpact since being acquired in April 2022, contributed meaningfully tothe quarter. Blaze King sales increased 39% compared to Q2 2021, andalthough Slimline sales decreased by 10% relative to Q2 2021, thedecrease was a result of supply chain delays on certain components, asthe backlog of agricultural sprayers was higher as of June 30, 2022,compared to June 30, 2021.

• In the component manufacturing segment, Unicast sales increased 41%,Hawk sales increased 69%, and Northside sales increased 75% comparedto Q2 2021.

• The Company’s subsidiaries did not receive any government subsidiesin the quarter (Q2 2021 - $1.8 million).

• Consolidated net profit in the quarter was $0.9 million, or $0.07 pershare, an increase of $0.3 million, or $0.02 per share, compared to Q22021.

2022 Year-to-DateHighlights:

• Consolidated sales increased 49% to $41.9 million, compared to $28.1million in the first half of 2021.

• Consolidated gross profit increased 33% to $14.0 million from $10.5million in the first half of 2021. Excluding subsidies, first halfgross profit was $4.8 million, or 52% higher than in the first half of2021.

• Consolidated gross profit percentages declined to 33% from 37% inthe first half of 2021, which was driven primarily by the decrease ingovernment subsidies. Absent subsidies, year-to-date consolidatedgross profit percentages were consistent with the first half of2021.

• Consolidated Adjusted EBITDA* increased to $5.7 million, up 20%relative to 2021, driven by the above noted increases in sales andgross profit. Excluding subsidies, first half Adjusted EBITDA* was$3.1 million, or 124%, higher than the first half of 2021.

• Sales in the finished product segment increased by $7.2 million, or48%, relative to the first half of 2021, driven by the acquisition ofMarketing Impact and continued strong demand for Blaze King’sproducts and Slimline’s agricultural sprayers.

• Sales for the component manufacturing segment increased by $6.5million, or 50%, relative to the first half of 2021 based on customerdemand increases in each of Unicast, Hawk and Northside, driven byimproving fundamentals in the sectors that those customers operatein.

• The Company’s subsidiaries did not receive any governmentsubsidies in the first half of the year (2021 - $2.2 million).

• Consolidated net profit was $1.4 million, or $0.11 per share, anincrease of 60%, or $0.04 per share compared to the first half of2021.

Jeff Schellenberg, Chief Executive Officer of Decisive, noted:

“ Q2 was a tremendous quarter forDecisive as we made significant progress on all of our key strategicobjectives. During the quarter, we achieved record quarterly operatingresults, we returned the monthly dividend to pre-pandemic levels, andwe completed our first acquisition since 2019.

Each of our portfolio companiescontinue to face strong demand for their products as demonstrated byour record revenue levels and strong growth. We are particularlypleased with the profitability of the group as our Adjusted EBITDAperformance has grown significantly relative to a year ago, especiallyconsidering the impact government subsidies had on prior year results,and despite current supply chain challenges. These results demonstratethe resilience of our diversified business model and reflect theefforts of our subsidiaries’ management teams to manage costs,optimize pricing and operations in a challenging market, and win newprofitable work.

We are also very pleased to havebeen able to return the monthly dividend to the pre-pandemic level of3-cents per share per month. This reflects our commitment to providesustainable and growing dividends to our shareholders and wassupported by our operating results, which demonstrated strong revenueand profitability growth, as well as further growth throughacquisition with the closing of the Marketing Impacttransaction.

Our acquisition and integration ofMarketing Impact has gone very well as the business has met all of theexpectations we had for the company when Decisive acquired it inApril. They have a committed and capable management team and have beena welcome addition into our group of companies.

While we are experiencing strongperformance, have returned our dividend to pre-pandemic levels, andhave completed an acquisition, we don’t plan on sitting back. Oursubsidiaries continue to work to enhance profitability and growth, wehave an active and growing pipeline of potential targets, and have oursights set on our next acquisition.

We have had an eventful first halfof 2022 and look forward to providing further updates to ourshareholders as we progress through the second half of theyear.”

Outlook:

• Executing on the growth strategy with the acquisition of MarketingImpact in April 2022.

• Building a strong and growing acquisition prospect pipeline.

• Continuing to build upon the strong demand across the portfolio ofbusinesses expected through the remainder of 2022.

• Optimizing operations, with an emphasis on increasing productioncapacity, improving operational efficiency and enhancing margins inthe face of broad and steady customer demand trends.

• Providing sustainable and growing dividends to shareholders, followingan increase in the monthly dividend to $0.03 per share in May 2022.

• Balance sheet flexibility, supportive shareholders, and furtherdiversification of the portfolio has demonstrated Decisive’sresilience through a variety of economic conditions.

About Decisive DividendCorporation

Decisive Dividend Corporation is an acquisition-oriented company,focused on opportunities in manufacturing. The Company’s purpose isto be the sought-out choice for exiting legacy-minded business owners,while supporting the long-term success of the businesses acquired, andthrough that, creating sustainable and growing shareholder returns.The Company uses a disciplined acquisition strategy to identifyalready profitable, well-established, high quality manufacturingcompanies that have a sustainable competitive advantage, a focus onnon-discretionary products, steady cash flows, growth potential andestablished, strong leadership.

For more information on Decisive, or to sign up for emailnotifications of Company press releases, please visit www.decisivedividend.com .

FOR FURTHER INFORMATION PLEASE CONTACT:

Jeff Schellenberg, Chief Executive Officer

Rick Torriero, Chief Financial Officer

#260 – 1855 Kirschner Road

Kelowna, BC V1Y 4N7

Telephone: (250) 870-9146

Cautionary Statements

Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in policies ofthe TSX Venture Exchange) accepts responsibility for the adequacy oraccuracy of this release.

Non-IFRS Financial Measures

In this press release, reference ismade to “Adjusted EBITDA”, which is not a recognized financialmeasure under IFRS, but is believed to be meaningful in the assessmentof the Company’s performance.

“ Adjusted EBITDA” is defined asearnings before finance costs, income taxes, depreciation,amortization, foreign exchange gains or losses, other non-cash itemssuch as gains or losses recognized on the fair value of contingentconsideration items, asset impairment, share-based compensation, andrestructuring costs, and other non-operating items such as acquisitioncosts.

Adjusted EBITDA is a financialperformance measure that management believes is useful for investorsto analyze the results of the Company’s operating activities priorto consideration of how those activities are financed and the impactof non-operating charges related to planned or completed acquisitions,foreign exchange, taxation, depreciation, amortization, and impairmentcharges.

The most directly comparablefinancial measure is profit or loss. While Adjusted EBITDA is used bymanagement to assess the historical financial performance of theCompany, readers are cautioned that:

• Non-IFRS financial measures, suchas Adjusted EBITDA, are not recognized financial measures underIFRS;

• The Company’s method ofcalculating Non-IFRS financial measures, such as Adjusted EBITDA, maydiffer from that of other corporations or entities and therefore maynot be directly comparable to measures utilized by other corporationsor entities;

• Non-IFRS financial measures, such asAdjusted EBITDA, should not be viewed as an alternative to measuresthat are recognized under IFRS such as profit or loss or cash fromoperating activities; and

• A reader should not place unduereliance on any Non-IFRS financial measures.

Set forth below are reconciliationsof Non-IFRS financial measures to their most relevant IFRSmeasures.

Forward-Looking Statements

Certain statements contained inthis press release constitute forward-looking information. Thesestatements relate to future events or future performance. The use ofany of the words “could”, “intend”, “expect”,“believe”, “will”, “projected”, “estimated” andsimilar expressions and statements relating to matters that are nothistorical facts are intended to identify forward-looking informationand are based on management’s current beliefs, assumptions andexpectations as to the outcome and timing of such future events.Actual future results may differ materially. In particular, this pressrelease contains forward-looking information relating to the futureprospects of the Company and its operating subsidiaries, 2022 demandlevels, increasing demand from customers, potential futureacquisitions, and productivity and efficiency initiatives beingexplored to enhance margins. Risk factors that could cause actualresults or outcomes to differ materially from the results expressed orimplied by forward-looking information include, among other things:general economic conditions; pandemics; competition; governmentregulation; environmental regulation; access to capital; market trendsand innovation; climate risk; general uninsured losses; risk relatedto acquisitions; dependence on customers, distributors and strategicrelationships; supply and cost of raw materials and purchased parts;operational performance and growth; implementation of the growthstrategy; product liability and warranty claims; litigation; relianceon technology, intellectual property, and information systems;availability of future financing; interest rates and debt financing;income tax matters; foreign exchange; dividends; trading volatility ofcommon shares; dilution risk; reliance on management and keypersonnel; employee and labour relations; and conflicts of interest,all as more particularly described in the most recent annual MD&Aof the Company available on the Company’s profile at www.sedar.com.There can be no assurance as to the future financial performance ofthe Company or that the board of directors of the Company will declareor pay any dividends in the future or, if dividends are declared andpaid, there can be no assurance as to the frequency or amount of suchdividends. The Company cautions the reader that the risk factorsreferenced above are not exhaustive. The forward-looking informationcontained in this release is made as of the date hereof and theCompany is not obligated to update or revise any forward-lookinginformation, whether as a result of new information, future events orotherwise, except as required by applicable securities laws. Becauseof the risks, uncertainties and assumptions contained herein,investors should not place undue reliance on forward-lookinginformation. The foregoing statements expressly qualify anyforward-looking information contained herein.

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