- $120-125
million Q2 FY2025 guidance range for revenue
versus $110 million in Q2
FY2024
- 6-10% expected Organic Revenue Growth1,3 rate in
Q2 FY2025 versus 2.8% in Q2 FY2024
- Results are trending for the Company's
best quarterly revenue1 performance
ever – clear proof that management's value creation plan is
working
TORONTO, Nov. 28,
2024 /CNW/ - Dye & Durham Limited ("Dye &
Durham" or the "Company") (TSX: DND) today provided
second quarter fiscal 2025 ("Q2 FY2025") guidance,
forecasting its best quarter to date.
Based on the continued success of the Company's organic growth
initiatives, management is pleased to provide Q2 FY2025 revenue
guidance of $120-125 million.
Management also expects to report an Organic Revenue Growth
Rate3 of 6-10% for Q2 FY2025.
"Dye & Durham is delivering on its commitment to investors
and generating impressive and record-setting results. The
management team's strategy has worked to transition our revenue
model to a more predictable contracted revenue, and to capitalize
on organic growth opportunities such as cross-selling," said
Matthew Proud, CEO of Dye &
Durham.
1) Excludes TM
Group
|
2) Represents mid
point of guidance
|
"While the events of the past few quarters have imposed an
unnecessary distraction on our business, our team has remained
focused on executing against our Value Creation Plan, which can be
seen in the $50 million annual
revenue growth we have delivered on. Our financial profile
underscores the strength of our strategy and the quality of our
board of directors and management team," continued Mr. Proud.
Investor Briefing Event
The Company will also host an Investor Briefing event (the
"Briefing") on the afternoon of December 10, 2024, to provide shareholders with
an update on the Company's progress and strategic execution of its
recently published 'Value Creation Plan'. The Briefing will
also include a question and answer session. Investors are invited
to attend in person or access the Briefing from the
Events section on the Investors page of its website.
Details on the Value Creation Plan, which is focused on
continuing to drive driving sustainable long-term value for all
stakeholders, can be found in the Investors section of the
Company's website and on SEDAR+ under the Company's profile
at www.sedarplus.ca.
3)
|
Represents a non-IFRS
measure. This measure is not a recognized measure under IFRS, does
not have a standardized meaning prescribed by IFRS and is 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 Organic Revenue Growth Rate, 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.
Please see the "Non-IFRS Financial Measures" section of this press
release for a reconciliation of Organic Revenue to
Revenue.
|
About Dye & Durham Limited
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, and Australia.
Additional information can be found
at www.dyedurham.com.
Non-IFRS Measures
This press release makes reference to Organic Revenue Growth
Rate, which is a non-IFRS measure. This is not a recognized measure
under IFRS, does not have a standardized meaning prescribed by IFRS
and is therefore unlikely to be comparable to similar measures
presented by other companies.
Rather, this measure is 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 "Organic Revenue Growth Rate" (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.
Organic Revenue Growth Rate
"Organic Revenue Growth Rate" means total revenue in the current
quarter period (excluding the pre-acquisition quarterly revenue of
those acquisitions executed in the last twelve month period and
discontinued businesses) ("Organic Revenue") divided by the
total revenue in the prior quarter period (excluding TM Group,
pre-acquisition quarterly revenue and discontinued businesses).
Organic Revenue, which is a non-IFRS measure, is used as a
component in Organic Revenue Growth Rate. Below is a reconciliation
of the Company's Q2 FY2025 Organic Growth Rate.
|
$
million
|
Q2 FY2025
Revenue
|
120 - 125
|
Pre-Acquisition
Reporting Results
|
3.5
|
Organic
Revenue
|
116.5-121.5
|
Q2 FY2024
Revenue
|
110
|
Organic Revenue
Growth Rate (%)
|
6% - 10%
|
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
financial outlook and expected Q2 FY2025 revenue and Organic
Revenue Growth Rate. 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 guidance,
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
expectations of future results, including its expected Q2 FY2025
revenue and Organic Revenue Growth Rate, performance, prospects,
the markets in which we operate, or about any future intention with
regard to its business, acquisition strategies and debt reduction
strategy 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) the Company'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, (viii) the
industries the Company operates in will continue to grow consistent
with past experience, (ix) exchange rates being approximately
consistent with current levels, * the seasonal trends in real
estate transaction volume will continue as expected, (xi) the
Company's expectations for increases to the average rate per user
on its platforms, contractual revenues, and incremental earnings
from its latest asset-based acquisition will be met, (xii) the
Company being able to effectively upsell and cross-sell between
practice management and data insights & due diligence
customers, (xiii) the Company's expectations regarding its debt
reduction strategy will be met, and (xiv) those assumptions
described under the heading "Caution Regarding Forward-Looking
Information" in the Company's most recent Management's Discussion
and Analysis.
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. Such risks and uncertainties include, but are not
limited to: 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; the Company 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 the factors discussed under "Risk
Factors" in 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 on
the Company's profile on SEDAR+ at www.sedarplus.ca.
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