(TheNewswire)
May 10, 2022 – TheNewswire - Kelowna, British Columbia : Decisive Dividend Corporation (TSXV:DE) (the“Company” or “Decisive”) today reported its financial results forthe three months ended March 31, 2022.
Highlights of the Company’s financial performance in Q1 2022 include thefollowing:
-
Record quarterly consolidated sales in Q1 2022 , which increased 34% to $18.7 million, compared to $13.9 million in Q1 2021
-
Generated $2.3 million inAdjusted EBITDA* in Q1 2022, an increase of 6% relative to Q12021 . Excluding subsidies, Q1 2022 Adjusted EBITDA* was 33% higherthan Q1 2021
-
Generated profit of $0.5 million, or $0.04 per share,in Q1 2022, an increase of 84%, or $0.02 per share compared to Q12021
The following are selected financial highlights ofDecisive for the three ended March 31, 2022 . All amounts areexpressed in Canadian dollars. The Company’s unaudited - interim condensed consolidated financialstatements as well as its management’s discussion and analysis(“MD&A”) are posted on SEDAR and onDecisive’s website ( www.decisivedividend.com ).
(Stated in thousands of dollars, except per share amounts) | |||||||||||||||
For the three months ended March 31, | 2022 | 2021 | Change | ||||||||||||
Sales | $ | 18,689 | $ | 13,945 | 34% | ||||||||||
Gross profit | 6,199 | 5,157 | 20% | ||||||||||||
Gross profit % | 33% | 37% | |||||||||||||
Adjusted EBITDA* | 2,305 | 2,165 | 6% | ||||||||||||
Per share basic | 0.19 | 0.18 | 3% | ||||||||||||
Profit before tax | 815 | 485 | 68% | ||||||||||||
Profit | 512 | 278 | 84% | ||||||||||||
Per share basic | 0.04 | 0.02 | 100% | ||||||||||||
Per share diluted | 0.04 | 0.02 | 100% | ||||||||||||
Dividends declared | 912 | - | 100% | ||||||||||||
Per share basic | 0.08 | - | 100% |
* Adjusted EBITDA is not a recognized financialmeasure under International Financial Reporting Standards (IFRS) andtherefore may not be comparable to similar measures presented by otherissuers, but it is used by management to assess the performance of theCompany and its segments. See”Non-IFRS Financial Measures” later in this press release for thefull description of Adjusted EBITDA and a reconciliation of applicableIFRS measures to non-IFRS measures.
-
Consolidated sales increased 34% to $18.7 millioncompared to $13.9 million in Q1 2021.
-
Consolidated gross profit increased 20% to $6.2 million from $5.2 million in Q12021. Excluding subsidies, Q1 2022 gross profit was 27% higherthan Q1 2021
-
Consolidated gross profit percentages decreased to 33%from 37% in Q1 2021. Decrease driven primarilyby product mix changes, a decrease in government subsidies, and supplychain and labour availability challenges
-
Consolidated Adjusted EBITDA* increased to $2.3 million,up 6 % relative to Q1 2021 .Excluding subsidies, Q1 2022 Adjusted EBITDA* was 33% higher than Q1 2021
-
Each of the portfolio businesses are experiencingrobust customer demand as underlying economic conditions and commodityprices have improved
-
In the finished product segment, Blaze King sales increased 29% and Slimline sales increased by 28% relative to Q1 2021
-
In the component manufacturingsegment, Unicast sales were relatively flat, and Hawk and Northsideexperienced 29% and 94% sales increases respectively compared to Q1 2021
-
The Company’s subsidiaries did not receiveany subsidies from the Canada Emergency Wage Subsidy (“CEWS”) or CanadaEmergency Rent Subsidy (“CERS”) programs inthe quarter ( Q1 2021 -$0.4 million).
-
Consolidated net profit in thequarter was $0.5 million, or $0.04 per share, an increase of $0.2 million, or $0.02 per share, compared to Q1 2021.
JeffSchellenberg , Chief Executive Officer ofDecisive, noted:
“ Q1 performance continued to demonstratestrong demand across our portfolio of companies. We are particularlypleased with our Adjusted EBITDA performance which has grownsignificantly even as government subsidies have wound down, and hasbeen achieved despite current supply chain challenges. These resultsdemonstrate the resilience of our diversified business model andreflect the efforts of our subsidiaries’ management teams to managecosts and optimize operations in a challenging market.
We are also very pleased that, basedon our operating results, wewere in a position to return the monthly dividend to pre-pandemiclevels. Over the past year,we have made tremendous progress toward stabilizing theoverall performance of theCorporation and believe the $0.03 per common share monthly dividendreflects our commitment to provide sustainable and growing dividendsto our shareholders.
Finally, we are excited to have added Marketing Impact into ourgroup of companies which provides Decisive with further product,industry, and geographic diversity. They design and produce greatproducts to service a wide range of top tier customers that are innon-cyclical industries selling non-discretionary products. Thesetraits are an excellent match for Decisive’s strategicobjectives .
We have had an eventful start to2022 and look forward to providing further updates to our shareholdersas we progress through the year . ”
-
Executing on the growth strategy with the acquisition of Marketing Impact in April 2022, andwith a strong and growing acquisition prospectpipeline being built by identifying and evaluating potentialacquisitions to bolster diversity and add strength and resilience tooperations.
-
Experiencing strong demand acrossthe portfolio of businesses, which trends lookto be continuing through the remainder of
-
Stabilizing overall profitability performance through avolatile economic environment as a result of the diversity of theportfolio .
-
Optimizing operations, with an emphasis on increasingproduction capacity, improving operational efficiency and enhancingmargins in the face of broad and steady customer demandtrends.
-
Providing sustainable and growing dividends toshareholders, with an increase in the monthly dividend to $0.03 pershare.
AboutDecisive Dividend Corporation
Decisive Dividend Corporation is anacquisition-oriented company, focused on opportunities inmanufacturing. The Company’s purpose is to be the sought-out choicefor exiting legacy-minded business owners, while supporting thelong-term success of the businesses acquired, and through that,creating sustainable and growing shareholder returns. The Company usesa disciplined acquisition strategy to identify already profitable, well- established , high qualitymanufacturing companies that have a sustainable competitive advantage, a focus onnon-discretionary products, steady cash flows,growth potential and established, strong leadership.
For more information on Decisive, or to sign up foremail notifications of Company press releases, please visit www.decisivedividend.com .
FOR FURTHER INFORMATION PLEASE CONTACT:
Jeff Schellenberg, Chief Executive Officer
Rick Torriero, Chief Financial Officer
#201, 1674 Bertram Street
Kelowna, BC V1Y 9G4
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 FinancialMeasures
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, such as Adjusted EBITDA, are not recognized financial measures under IFRS
-
The Company’s method ofcalculating Non- IFRS financial measures, such as Adjusted EBITDA, may differ fromthat of other corporation s or entities and therefore may not bedirectly comparable to measures utilized by other corporations orentities;
-
Non- IFRS financial measures, such as AdjustedEBITDA, should not be viewed as an alternative to measures that arerecognized under IFRS such as profit or loss or cash from operatingactivities; and
Set forth below are reconciliationsof Non-IFRS financial measures to their most relevant IFRSmeasures.
(Stated in thousands of dollars) | |||||||||||
For the three months ended March 31, | 2022 | 2021 | |||||||||
Profit for the period | $ | 512 | $ | 278 | |||||||
Add (deduct): | |||||||||||
Financing costs | 455 | 521 | |||||||||
Income tax expense | 302 | 207 | |||||||||
Amortization and depreciation | 876 | 884 | |||||||||
Share-based compensation expense | 70 | 154 | |||||||||
Foreign exchange expense | 94 | 134 | |||||||||
Interest and other expense (income) | (4) | 1 | |||||||||
Gain on sale of equipment | - | (14) | |||||||||
Adjusted EBITDA | 2,305 | 2,165 |
Forward- Looking Statements
Certain statements contained in this press release constituteforward-looking information. These statements relate to future eventsor future performance. The use of any of the words “could”,“intend”, “expect”, “believe”, “will”,“projected”, “estimated” and similar expressions andstatements relating to matters that are not historical facts areintended to identify forward-looking information and are based onmanagement’s current beliefs, assumptions and expectations as to theoutcome and timing of such future events. Actual future results maydiffer materially. In particular, this press release containsforward-looking information relating to the future prospects of the Company and itsoperating subsidiaries, 2022 demand levels, increasing demand fromcustomers, potential future acquisitions, and productivity andefficiency initiatives being explored 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 asto the future financial performance of the Company or that the boardof directors of the Company will declare or pay any dividends in the future or, if dividends aredeclared and paid, there can be no assurance as to the frequency oramount of such dividends . The Company cautions thereader that the risk factors referenced above are not exhaustive. Theforward-looking information contained in this release is made as ofthe date hereof and the Company is not obligated to update or reviseany forward-looking information, whether as a result of newinformation, future events or otherwise, except as required byapplicable securities laws. Because of the risks, uncertainties andassumptions contained herein, investors should not place unduereliance on forward-looking information. The foregoing statementsexpressly qualify any forward-looking information containedherein .
Not for distribution in theUnited States
This press release is not fordistribution to U.S. Newswire Services or for dissemination in theUnited States.
May 10, 2022 – TheNewswire - Kelowna, British Columbia : Decisive Dividend Corporation (TSXV:DE) (the“Company” or “Decisive”) today reported its financial results forthe three months ended March 31, 2022.
Highlights of the Company’s financial performance in Q1 2022 include thefollowing:
-
Record quarterly consolidated sales in Q1 2022 , which increased 34% to $18.7 million, compared to $13.9 million in Q1 2021
-
Generated $2.3 million inAdjusted EBITDA* in Q1 2022, an increase of 6% relative to Q12021 . Excluding subsidies, Q1 2022 Adjusted EBITDA* was 33% higherthan Q1 2021
-
Generated profit of $0.5 million, or $0.04 per share,in Q1 2022, an increase of 84%, or $0.02 per share compared to Q12021
The following are selected financial highlights ofDecisive for the three ended March 31, 2022 . All amounts areexpressed in Canadian dollars. The Company’s unaudited - interim condensed consolidated financialstatements as well as its management’s discussion and analysis(“MD&A”) are posted on SEDAR and onDecisive’s website ( www.decisivedividend.com ).
(Stated in thousands of dollars, except per share amounts) | |||||||||||||||
For the three months ended March 31, | 2022 | 2021 | Change | ||||||||||||
Sales | $ | 18,689 | $ | 13,945 | 34% | ||||||||||
Gross profit | 6,199 | 5,157 | 20% | ||||||||||||
Gross profit % | 33% | 37% | |||||||||||||
Adjusted EBITDA* | 2,305 | 2,165 | 6% | ||||||||||||
Per share basic | 0.19 | 0.18 | 3% | ||||||||||||
Profit before tax | 815 | 485 | 68% | ||||||||||||
Profit | 512 | 278 | 84% | ||||||||||||
Per share basic | 0.04 | 0.02 | 100% | ||||||||||||
Per share diluted | 0.04 | 0.02 | 100% | ||||||||||||
Dividends declared | 912 | - | 100% | ||||||||||||
Per share basic | 0.08 | - | 100% |
* Adjusted EBITDA is not a recognized financialmeasure under International Financial Reporting Standards (IFRS) andtherefore may not be comparable to similar measures presented by otherissuers, but it is used by management to assess the performance of theCompany and its segments. See”Non-IFRS Financial Measures” later in this press release for thefull description of Adjusted EBITDA and a reconciliation of applicableIFRS measures to non-IFRS measures.
-
Consolidated sales increased 34% to $18.7 millioncompared to $13.9 million in Q1 2021.
-
Consolidated gross profit increased 20% to $6.2 million from $5.2 million in Q12021. Excluding subsidies, Q1 2022 gross profit was 27% higherthan Q1 2021
-
Consolidated gross profit percentages decreased to 33%from 37% in Q1 2021. Decrease driven primarilyby product mix changes, a decrease in government subsidies, and supplychain and labour availability challenges
-
Consolidated Adjusted EBITDA* increased to $2.3 million,up 6 % relative to Q1 2021 .Excluding subsidies, Q1 2022 Adjusted EBITDA* was 33% higher than Q1 2021
-
Each of the portfolio businesses are experiencingrobust customer demand as underlying economic conditions and commodityprices have improved
-
In the finished product segment, Blaze King sales increased 29% and Slimline sales increased by 28% relative to Q1 2021
-
In the component manufacturingsegment, Unicast sales were relatively flat, and Hawk and Northsideexperienced 29% and 94% sales increases respectively compared to Q1 2021
-
The Company’s subsidiaries did not receiveany subsidies from the Canada Emergency Wage Subsidy (“CEWS”) or CanadaEmergency Rent Subsidy (“CERS”) programs inthe quarter ( Q1 2021 -$0.4 million).
-
Consolidated net profit in thequarter was $0.5 million, or $0.04 per share, an increase of $0.2 million, or $0.02 per share, compared to Q1 2021.
JeffSchellenberg , Chief Executive Officer ofDecisive, noted:
“ Q1 performance continued to demonstratestrong demand across our portfolio of companies. We are particularlypleased with our Adjusted EBITDA performance which has grownsignificantly even as government subsidies have wound down, and hasbeen achieved despite current supply chain challenges. These resultsdemonstrate the resilience of our diversified business model andreflect the efforts of our subsidiaries’ management teams to managecosts and optimize operations in a challenging market.
We are also very pleased that, basedon our operating results, wewere in a position to return the monthly dividend to pre-pandemiclevels. Over the past year,we have made tremendous progress toward stabilizing theoverall performance of theCorporation and believe the $0.03 per common share monthly dividendreflects our commitment to provide sustainable and growing dividendsto our shareholders.
Finally, we are excited to have added Marketing Impact into ourgroup of companies which provides Decisive with further product,industry, and geographic diversity. They design and produce greatproducts to service a wide range of top tier customers that are innon-cyclical industries selling non-discretionary products. Thesetraits are an excellent match for Decisive’s strategicobjectives .
We have had an eventful start to2022 and look forward to providing further updates to our shareholdersas we progress through the year . ”
-
Executing on the growth strategy with the acquisition of Marketing Impact in April 2022, andwith a strong and growing acquisition prospectpipeline being built by identifying and evaluating potentialacquisitions to bolster diversity and add strength and resilience tooperations.
-
Experiencing strong demand acrossthe portfolio of businesses, which trends lookto be continuing through the remainder of
-
Stabilizing overall profitability performance through avolatile economic environment as a result of the diversity of theportfolio .
-
Optimizing operations, with an emphasis on increasingproduction capacity, improving operational efficiency and enhancingmargins in the face of broad and steady customer demandtrends.
-
Providing sustainable and growing dividends toshareholders, with an increase in the monthly dividend to $0.03 pershare.
AboutDecisive Dividend Corporation
Decisive Dividend Corporation is anacquisition-oriented company, focused on opportunities inmanufacturing. The Company’s purpose is to be the sought-out choicefor exiting legacy-minded business owners, while supporting thelong-term success of the businesses acquired, and through that,creating sustainable and growing shareholder returns. The Company usesa disciplined acquisition strategy to identify already profitable, well- established , high qualitymanufacturing companies that have a sustainable competitive advantage, a focus onnon-discretionary products, steady cash flows,growth potential and established, strong leadership.
For more information on Decisive, or to sign up foremail notifications of Company press releases, please visit www.decisivedividend.com .
FOR FURTHER INFORMATION PLEASE CONTACT:
Jeff Schellenberg, Chief Executive Officer
Rick Torriero, Chief Financial Officer
#201, 1674 Bertram Street
Kelowna, BC V1Y 9G4
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 FinancialMeasures
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, such as Adjusted EBITDA, are not recognized financial measures under IFRS
-
The Company’s method ofcalculating Non- IFRS financial measures, such as Adjusted EBITDA, may differ fromthat of other corporation s or entities and therefore may not bedirectly comparable to measures utilized by other corporations orentities;
-
Non- IFRS financial measures, such as AdjustedEBITDA, should not be viewed as an alternative to measures that arerecognized under IFRS such as profit or loss or cash from operatingactivities; and
Set forth below are reconciliationsof Non-IFRS financial measures to their most relevant IFRSmeasures.
(Stated in thousands of dollars) | |||||||||||
For the three months ended March 31, | 2022 | 2021 | |||||||||
Profit for the period | $ | 512 | $ | 278 | |||||||
Add (deduct): | |||||||||||
Financing costs | 455 | 521 | |||||||||
Income tax expense | 302 | 207 | |||||||||
Amortization and depreciation | 876 | 884 | |||||||||
Share-based compensation expense | 70 | 154 | |||||||||
Foreign exchange expense | 94 | 134 | |||||||||
Interest and other expense (income) | (4) | 1 | |||||||||
Gain on sale of equipment | - | (14) | |||||||||
Adjusted EBITDA | 2,305 | 2,165 |
Forward- Looking Statements
Certain statements contained in this press release constituteforward-looking information. These statements relate to future eventsor future performance. The use of any of the words “could”,“intend”, “expect”, “believe”, “will”,“projected”, “estimated” and similar expressions andstatements relating to matters that are not historical facts areintended to identify forward-looking information and are based onmanagement’s current beliefs, assumptions and expectations as to theoutcome and timing of such future events. Actual future results maydiffer materially. In particular, this press release containsforward-looking information relating to the future prospects of the Company and itsoperating subsidiaries, 2022 demand levels, increasing demand fromcustomers, potential future acquisitions, and productivity andefficiency initiatives being explored 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 asto the future financial performance of the Company or that the boardof directors of the Company will declare or pay any dividends in the future or, if dividends aredeclared and paid, there can be no assurance as to the frequency oramount of such dividends . The Company cautions thereader that the risk factors referenced above are not exhaustive. Theforward-looking information contained in this release is made as ofthe date hereof and the Company is not obligated to update or reviseany forward-looking information, whether as a result of newinformation, future events or otherwise, except as required byapplicable securities laws. Because of the risks, uncertainties andassumptions contained herein, investors should not place unduereliance on forward-looking information. The foregoing statementsexpressly qualify any forward-looking information containedherein .
Not for distribution in theUnited States
This press release is not fordistribution to U.S. Newswire Services or for dissemination in theUnited States.
Copyright (c) 2022 TheNewswire - All rights reserved.