• First quarter fiscal 2021 revenue of $21.9 million, an increase of 29% compared to the three months ended September 30, 2019
• First quarter fiscal 2021 Adjusted EBITDA¹ of $12.5 million, an increase of 41% compared to the three months ended September 30, 2019
• Declared a quarterly dividend of $0.01875 cents per share
• Continued to execute on its strategy of acquiring, integrating and operating businesses in its sector to drive EBITDA

TORONTO, Nov. 10, 2020 /CNW/ - Dye & Durham Limited ("Dye & Durham" or the "Company") (TSX: DND), a leading provider of cloud-based software and technology solutions designed to improve efficiency and increase productivity for legal and business professionals, today announced its financial results for its first quarter, ended September, 30, 2020.

The Company generated first quarter fiscal 2021 revenue of $21.9 million, representing growth of 29% compared to the same period in fiscal 2020. The Company recorded a net loss of $15.0 million in the first quarter of fiscal 2021, compared to a net loss of $4.7 million for the same period in fiscal 2020. Adjusted EBITDA¹ was $12.5 million in the first quarter of fiscal 2021, representing a 41% increase compared to $8.9 million in its first quarter of fiscal 2020.

"Dye & Durham delivered strong revenue and adjusted EBITDA growth in our first quarter while we continued to execute on our M&A strategy and strengthened our capital structure," said Matt Proud, CEO of Dye & Durham. "Looking ahead, we believe there are ample opportunities for the Company to continue acquiring, integrating and operating businesses in our sector to drive EBITDA."  

First Quarter Fiscal 2021 Financial Results

• Revenues of $21.9 million, up 29% from $16.9 million in the first quarter of fiscal 2020
• Net loss of $15.0 million compared to a net loss of $4.7 million in the first quarter of fiscal 2020
• Adjusted EBITDA¹ of $12.5 million, up 41% from $8.9 million in the first quarter of fiscal 2020
• Adjusted EBITDA¹ margin increased to 57% in its first quarter of fiscal 2021, compared to 53% for the first quarter of fiscal 2020

Key Company Highlights

• On September 23, 2020, the Company acquired R-Squared Bidco Limited and certain related assets (collectively, "PIE") for $54.5 million. PIE is a leading U.K. cloud-based real estate due-diligence platform. 
• On September 30, 2020, the Company closed a $50 million bought deal private placement, pursuant to which it issued 2,381,621 shares at a price of $21 per share.
• On September 28, 2020, the Company announced that it had entered into a new credit agreement that provides for a $140 million revolving term loan facility with an additional uncommitted accordion of up to $25 million, for an aggregate total availability of up to $165 million (the "FY2021 Credit Facility"). The interest rate under the FY2021 Credit facility is expected to be approximately 3.0% versus the FY2020 Credit Facility (the Company's prior term loan facility), which carried an interest rate of 8.5%, which is expected to significantly improve the Company's levered free cash flow.

Second Quarter Fiscal 2021 Update

With continued momentum across its product lines, and the strong performance of its recent acquisitions, the Company is on track to generate between $27 million and $29 million of revenue for its second quarter ending December 31, 2020, which represents 64% growth at the midpoint of the range compared to the same period last year.

This guidance is provided to enhance visibility into the Company's expectations for financial targets for the second quarter. Please refer to the section regarding forward-looking statements which forms an integral part of this press release.

Quarterly Dividend

Subsequent to quarter end, on November 9, 2020, the Board declared a dividend of $0.01875 per common share for the quarter ending September 30, 2020. This dividend is payable to shareholders of record at December 7, 2020. The Board's decision to pay a dividend reflects its confidence in Dye & Durham's business, and is in line with the Company's dividend policy disclosed in its prospectus dated July 13, 2020.

Conference Call Notification 

The Company will hold a conference call to discuss its business on Tuesday, November 10, 2020, at 8:30 a.m. ET hosted by senior management. A question-and-answer session will follow the corporate update.

This call is being webcast and can be accessed by going to:

https://produceredition.webcasts.com/starthere.jsp?ei=1397908&tp_key=f57799f88e

¹ Represents a non-IFRS measure. For the relevant definitions, see "Non-IFRS Financial Measures" section of this press release. Management believes non-IFRS measures, including EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin provide supplementary information to IFRS measures used in assessing the performance of the business.

Please see the Company's most recent Management's Discussion and Analysis for a reconciliation of these measures to their nearest IFRS measure.

About Dye & Durham

Dye & Durham Limited is a leading provider of cloud-based software and technology solutions designed to improve efficiency and increase productivity for legal and business professionals. Dye & Durham provides critical information services and workflows, which clients use to manage their process, information and regulatory requirements. The Company has operations in Canada and the United Kingdom, and has a strong blue-chip customer base that includes law firms, financial service institutions, and government organizations.

Additional information can be found at www.dyedurham.com.

Non-IFRS Measures

This press release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies.

Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective and to discuss Dye & Durham's financial outlook. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of Dye & Durham's financial information reported under IFRS. The Company uses non-IFRS measures including: "EBITDA", "Adjusted EBITDA" and "Adjusted EBITDA margin".  

EBITDA

EBITDA means net income (loss) before amortization and depreciation expenses, finance and interest costs, and provision for income taxes.

Adjusted EBITDA

Adjusted EBITDA adjusts EBITDA for stock-based compensation expense, asset impairment charges, loss on settlement of loans and borrowings, gains or losses from changes in fair value of derivative financial instruments and contingent consideration liabilities measured at fair value through profit or loss, specific transaction related expenses related to acquisitions, IPO and capital structure reorganization, operational restructuring costs, restructuring costs includes impact to the full year of cost synergies related to the reduction of employees in relation to acquisitions.

Adjusted EBITDA margin

Adjusted EBITDA margin means Adjusted EBITDA divided by revenue.

Forward-Looking Statements

This press release contains forward–looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities legislation, which reflect the Company's current expectations regarding future events. Particularly, information regarding the Company's expectations of future results, performance, prospects or the markets in which we operate is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "forecast", "target", "goal", "may", "might", "will", "expect", "anticipate", "estimate", "intend", "plan", "indicate", "seek", "believe", "predict", or "likely", or the negative of these terms, or other similar expressions intended to identify forward-looking statements. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. Such forward-looking information is necessarily based on a number of opinions, estimates and assumptions, including but not limited to those assumptions described under the heading "Caution Regarding Forward-Looking Information" in the Company's Management's Discussion & Analysis for the first quarter ended September 30, 2020 (the "first quarter MD&A"). Forward-looking information is subject to and entirely qualified by known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results or performance to be materially different from those expressed or implied by such forward-looking information, including but not limited to factors discussed under the heading "Risk Factors" in the Company's final long-form prospectus dated July 13, 2020 and under the heading "Risks and Uncertainties" in the first quarter MD&A, which are available on the Company's profile on SEDAR at www.sedar.com. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. Accordingly, investors should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this news release represents the Company's expectations as of the date of this news release, and are subject to change after such date and the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

In addition, Dye & Durham's guidance on revenue is considered forward-looking information. The foregoing demonstrates Dye & Durham's objectives, which are not forecasts or estimates of its financial position, but are based on the implementation of its strategic goals, growth prospects and growth initiatives. Management's assessments of, and outlook for, revenue set out herein are generally based on the following assumptions: (a) Dye & Durham's results of operations will continue as expected, (b) the Company will continue effectively execute against its key strategic growth priorities, (c) the Company will continue to retain and grow its existing customer base and market share, (d) the Company will be able to take advantage of future prospects and opportunities, and realize on related synergies, including in respect of acquisitions, (e) there will be no changes in legislative or regulatory matters that negatively impact Dye & Durham's business, (f) current tax laws will remain in effect and will not be materially changed, (g) economic conditions will remain relatively stable throughout the period, and (h) the industries Dye & Durham operates in will continue to grow consistent with past experience. The Company considers these assumptions to be reasonable in the circumstances, given the time period for such projections and targets. The achievement of target revenue set out above is subject to significant risks including: (a) that the Company will be unable to effectively execute against its key strategic growth priorities and (b) the Company will be unable to continue to retain and grow its existing customer base and market share. These estimates have been prepared by and are the responsibility of management. The Company's independent registered public accounting firm has not conducted a review of, and does not express an opinion or any other form of assurance with respect to, these estimates.

SOURCE Dye & Durham

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