- Company surpassed its Q4 FY23 revenue guidance target
established in Q3 FY23
- ARR increased by 117% to 104 million1
since the start of FY23 and continues to represent a larger portion
of total revenue
TORONTO, Sept. 13,
2023 /CNW/ - Dye & Durham Limited ("Dye &
Durham" or the "Company") (TSX: DND), one of the world's
largest providers of cloud-based legal practice management
software, today announced its financial results for the three
months and twelve months ended June 30,
2023.
"Our business performed with strength and resilience in the
fourth quarter as we delivered on the guidance provided. We
continue to grow and enhance our practice management solutions for
small and medium sized law firms globally", said Matt Proud, CEO of Dye & Durham. "At the
same time, the improvements we have made to our go to market
strategy have rapidly accelerated the amount of ARR in our
business. We remain focused on expanding our wallet share across
the large and growing legal market we serve today, while
diversifying our business mix."
The company continues to grow its Annual Recurring Revenue
("ARR") contracted. ARR was $83
million of total revenue2 as of Q4 2023 and has
grown to $104 million as of
August 31, 2023. ARR was 19% of total
revenue as of June 30, 2023, nearly
double the 10% at the same point in the prior year.
Fourth Quarter Fiscal 2023 Highlights
- Revenue of $120.2 million, a
decrease of $9.5 million, or 7%, from
the same period in the prior year.
- Net income of $(89.2) million, a
decrease of $85.9 million, from the
same period in the prior year, primarily due to an impairment
charge on an asset held for sale of $66.7
million.
- Adjusted EBITDA3 of $65.7
million, a decrease of $9.5
million, or 13%, from the same period in the prior
year.
Fiscal 2023 Highlights
- Revenue of $451.1 million, a
decrease of $23.7 million, or 5%,
from the same period in the prior year.
- Net income of $(170.6) million, a
decrease of $178.5 million, from the
same period in the prior year.
- Adjusted EBITDA3 of $243.8
million, a decrease of $23.2
million, or 9%, from the same period in the prior year.
Quarterly Dividend
On September 12, 2023, the Board
of Directors declared a quarterly dividend of $0.01875 per share to shareholders of record on
September 20, 2023, payable on or
about September 27, 2023.
Normal Course Issuer Bid
The Company announced today that its board of directors approved
a normal course issuer bid (the "NCIB") to acquire a portion
of its outstanding common shares ("Shares"), as appropriate
opportunities arise from time to time, for cancellation over the
next 12 months. The prior year NCIB, announced on September 27, 2022, terminates on September 29, 2023. Dye & Durham intends to
renew its NCIB because it believes that, from time to time, the
market price of the Shares may not fully reflect the underlying
value of the Dye & Durham's business and future prospects. Dye
& Durham believes that, at such times, the repurchase of the
Shares for cancellation would be in the best interests of
shareholders. The NCIB will be made in accordance with the
requirements of the Toronto Stock Exchange and applicable
securities laws and remains subject to the Toronto Stock Exchange's
acceptance of the Company's notice of intention to make a normal
course issuer bid. Further details concerning the NCIB will be
provided in due course.
Conference Call Notification
The Company will hold a conference call to discuss its business
later today, Wednesday, September 13,
2023, at 4:30 p.m. ET hosted
by senior management. A question-and-answer session will follow the
corporate update.
DATE: Wednesday, September 13,
2023
TIME: 4:30 p.m. ET
RAPIDCONNECT: To instantly join the conference call by phone,
please use the following URL to easily register and be connected
into the conference call automatically:
https://emportal.ink/3YS7pVn
TRADITIONAL DIAL-IN NUMBER: (416) 764-8659 or (888) 664-6392
REFERENCE NUMBER: 10319158
TAPED REPLAY: (416) 764-8677 or (888) 390-0541
REPLAY CODE: 319158#
This call is being webcast and can be accessed by going to:
https://app.webinar.net/7xEWYOBLzkl
1) As of August 31,
2023.
2) Excluding TM Group revenues.
3) Represents a non-IFRS measure. 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. For the relevant
definition, see the "Non-IFRS Financial Measures" section of this
press release. Management believes non-IFRS measures, including
EBITDA, and Adjusted EBITDA, provide supplementary information to
IFRS measures used in assessing the performance of the business by
providing further understanding of the Company's results of
operations from management's perspective. Please see "Cautionary
Note Regarding Non-IFRS Measures", and "Select Information and
Reconciliation of Non-IFRS Measures in the Company's most recent
Management's Discussion and Analysis, which is available on the
Company's profile on SEDAR+ at www.sedarplus.ca, for further
details on certain non-IFRS measures, including the relevant
reconciliations of Adjusted EBITDA to its most directly comparable
IFRS measure, which information is incorporated by reference
herein.
About Dye & Durham
Dye & Durham Limited provides premier practice management
solutions empowering legal professionals every day, delivers vital
data insights to support critical corporate transactions and
enables the essential payments infrastructure trusted by government
and financial institutions. The company has operations in
Canada, the United Kingdom, Ireland, Australia and South
Africa.
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.
The Company's definitions of non-IFRS measures may not be the same
as the definitions for such measures used by other companies in
their reporting. Non-IFRS measures have limitations as analytical
tools. 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", and "Adjusted
EBITDA", (each as defined below), to provide investors with
supplemental measures of its operating performance and to eliminate
items that have less bearing on operating performance or operating
conditions and thus highlight trends in its core business that may
not otherwise be apparent when relying solely on IFRS financial
measures. The Company's management also uses non-IFRS financial
measures in order to facilitate operating performance comparisons
from period to period. The Company believes that securities
analysts, investors, and other interested parties frequently use
non-IFRS financial measures in the evaluation of issues.
Please see "Cautionary Note Regarding Non-IFRS Measures" and
"Select Information and Reconciliation of Non-IFRS Measures" in the
Company's most recent Management's Discussion and Analysis, which
is available on the Company's profile on SEDAR+ at
www.sedarplus.ca, for further details on certain non-IFRS measures,
including relevant reconciliations of each non-IFRS measure to its
most directly comparable IFRS measure, which information is
incorporated by reference herein.
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.
Forward-looking Statements
This press release may contain forward-looking information and
forward-looking statements within the meaning of applicable
securities laws, which reflects the Company's current expectations
regarding future events, including with respect to the Company's
NCIB, financial outlook and business strategy. In some cases, but
not necessarily in all cases, forward-looking statements can be
identified by the use of forward looking terminology such as
"plans", "targets", "expects" or "does not expect", "is expected",
"an opportunity exists", "is positioned", "estimates", "intends",
"assumes", "anticipates" or "does not anticipate" or "believes", or
variations of such words and phrases or state that certain actions,
events or results "may", "could", "would", "might", "will" or "will
be taken", "occur" or "be achieved". In addition, any statements
that refer to expectations, projections or other characterizations
of future events or circumstances contain forward-looking
statements. Forward-looking statements are not historical facts,
nor guarantees or assurances of future performance but instead
represent management's current beliefs, expectations, estimates and
projections regarding future events and operating performance.
Specifically, statements regarding Dye & Durham's NCIB,
expectations of future results, performance, prospects, the markets
in which we operate, or about any future intention with regard to
its business and acquisition strategies are 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 prospectus, and growth initiatives. The
forward-looking information is based on management's opinions,
estimates and assumptions, including, but not limited to: (i) Dye
& Durham's results of operations will continue as expected,
(ii) the Company will continue to effectively execute against its
key strategic growth priorities, (iii) the Company will continue to
retain and grow its existing customer base and market share, (iv)
the Company will be able to take advantage of future prospects and
opportunities, and realize on synergies, including with respect of
acquisitions, (v) there will be no changes in legislative or
regulatory matters that negatively impact the Company's business,
(vi) current tax laws will remain in effect and will not be
materially changed, (vii) economic conditions will remain
relatively stable throughout the period, (vii) the industries Dye
& Durham operates in will continue to grow consistent with past
experience, (ix) the seasonal trends in real estate transaction
volume will continue as expected, * the Company's expectations for
increases to the average rate per user on its platforms,
contractual revenues, and incremental earnings from its
acquisitions will be met and (xi) those assumptions described
under the heading "Caution Regarding Forward-Looking Information"
in the Company's Management's Discussion and Analysis for the
fourth quarter ended June 30, 2023.
While these opinions, estimates and assumptions are considered by
Dye & Durham to be appropriate and reasonable in the
circumstances as of the date of this press release, they are
subject to known and unknown risks, uncertainties, assumptions and
other factors that may cause the actual results, levels of
activity, performance, or achievements to be materially different
from those expressed or implied by such forward-looking
information.
The forward looking information is subject to significant risks
including, without limitation: that the Company will be unable to
effectively execute against its key strategic growth priorities,
including in respect of acquisitions; the Company will be unable to
continue to retain and grow its existing customer base and market
share; risks related to the Company's business and financial
position; that Dye & Durham may not be able to accurately
predict its rate of growth and profitability; risks related to
economic and political uncertainty; income tax related risks; and
those risk factors discussed in greater detail under the "Risk
Factors" section of the Company's most recent annual information
form and under the heading "Risks and Uncertainties" in the
Company's most recent Management's Discussion and Analysis, which
are available under Dye & Durham's profile on SEDAR+ at
www.sedarplus.ca. Many of these risks are beyond the
Company's control.
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. Although the Company has attempted to identify
important risk factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other risk factors not presently known to the Company
or that the Company presently believes are not material that could
also cause actual results or future events to differ materially
from those expressed in such forward-looking information.
Although the Company bases these forward-looking statements on
assumptions that it believes are reasonable when made, the Company
cautions investors that forward-looking statements are not
guarantees of future performance and that its actual results of
operations, financial condition and liquidity and the development
of the industry in which it operates may differ materially from
those made in or suggested by the forward-looking statements
contained in this press release. In addition, even if the Company's
results of operations, financial condition and liquidity and the
development of the industry in which it operates are consistent
with the forward-looking statements contained in this press
release, those results of developments may not be indicative of
results or developments in subsequent periods.
There can be no assurance that such information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information. No
forward-looking statement is a guarantee of future results.
Accordingly, you should not place undue reliance on forward-looking
information, which speaks only as of the date made. The
forward-looking information contained in this press release
represents Dye & Durham's expectations as of the date specified
herein, and are subject to change after such date. However, the
Company disclaims any intention or obligation or undertaking to
update or revise any forward-looking information or to publicly
announce the results of any revisions to any of those statements,
whether as a result of new information, future events or otherwise,
except as required under applicable securities laws. Comparisons of
results for current and any prior periods are not intended to
express any future trends or indications of future performance,
unless specifically expressed as such, and should only be viewed as
historical data.
All of the forward-looking information contained in this press
release is expressly qualified by the foregoing cautionary
statements.
SOURCE Dye & Durham Limited