- Revenue increased 10.9% in Q1-2023 compared to Q1-2022,
driven by organic growth and acquisitions.
- Management outlook is for continued growth from the
increasing number of real estate development projects and
onboarding of new communities.
- Tribe expects to improve margins and continues to focus on
its cost efficiency strategies and accelerating its path to
profitability.
VANCOUVER, BC, May 30, 2023
/CNW/ - Tribe Property Technologies Inc. (TSXV: TRBE)
(OTCQB: TRPTF) ("Tribe" or the "Company"), a leading provider
of technology-enabled property management solutions, today
announced its financial results for three months ended March 31, 2023. All amounts are stated in
Canadian dollars on an as reported basis under IFRS (International
Financial Reporting Standards) unless otherwise indicated.
Joseph Nakhla, Tribe's CEO
commented, "I am delighted with the progress that Tribe has made
thus far in 2023, particularly with the closing of numerous
brand-new communities onto our platform. Furthermore, Tribe has
been successful in establishing strong relationships with real
estate developers, providing support throughout the entire process
of multi-family construction projects, from completion to move-in
and the transition to property management. This year, we have
experienced an influx of new real estate developers who have chosen
to utilize our Tribe HomePro software or take advantage of our
comprehensive property management services. Our dedicated teams
have been diligently engaged in onboarding and training these new
communities onto our platform. We anticipate a continued
surge in community onboarding for management services and software
usage, extending throughout Q3 and Q4,resulting in a
record-breaking number of communities being added to our platforms
and services in 2023."
Mr. Nakhla added, "This year our commitment extends beyond
onboarding new communities as we are fully dedicated to optimizing
efficiencies within our operations. Through process improvements,
cost optimizations and consolidation of back-office systems, we are
continuing to execute our cost reduction strategies. As we
delve deeper into exploring efficiencies, we recognize immense
opportunities to bolster the company's profitability. We take great
pride in our current national footprint, as our M&A and organic
growth engine continue to thrive. We are excited about the
prospects that lie ahead and remain focused on strengthening our
position in the residential market."
Q1-2023 Financial Highlights:
- Revenue: First quarter 2023 revenue was $4.659 million; an increase of 10.9% compared to
$4.202 million for the first quarter
of 2022;
- Gross profit1: Gross profit for the first quarter of
2023 was $1.827 million (39.2%)
compared to $1.835 million (43.7%) in
the first quarter of 2022; and
- Adjusted EBITDA2: Adjusted EBITDA for the first
quarter of 2023 was an outflow of $1.863
million compared with an outflow of $1.481 million in the first quarter of 2022.
Q1-2023 Business Highlights:
On January 9, 2023,
Tribe completed its acquisition of a portfolio of strata
property management assets from Warrington PCI Management. This
acquisition further strengthens Tribe's property management
services across the Greater Vancouver region
of British Columbia.
On March 9, 2023, Tribe announced
the nationwide deployment of VendorPM to support Tribe-managed
condo and rental communities across Canada. This partnership with VendorPM allows
the Company's property managers to connect with more than 30,000
service providers in a seamless manner to deliver a simplified RFQ
process for Tribe-managed communities.
On March 9, 2023, Tribe launched a
proprietary platform integration that simplifies the mandatory
Tarion new home warranty process specific to the Province of
Ontario. The new integration,
available through the Company's Tribe Home Pro digital solutions
for real estate developers, introduces automation and the ability
for developers to track issues from any stage of development from
one simple dashboard, generate custom reports, and easily review
all in-unit warranty issues and their resolution status.
Key Business Metrics During Q1-2023:
- 6 new property developers signed on to use either Tribe HomePro
construction software or Tribe Management services
- 5 Tribe Home Pro software licensing agreements were signed in
Q1 for new construction projects.
- 9 property management agreements were signed in Q1.
- 9 communities were successfully onboarded and began generating
revenue in Q1.
- 3 additional phases of Tribe-managed communities were onboarded
and began generating revenue in Q1.
Outlook:
Management is optimistic that 2023 will be a strong year for
Tribe, expecting improved revenue, profitability and expanding
margins. Despite concerns surrounding the real estate sales
market and potential economic downturn, these factors have not
hindered Tribe's growth opportunities thus far. Tribe remains
resilient and its growth in 2023 will be fueled by a robust
pipeline of new development opportunities, strategic partnerships,
winning new software agreements, and the increase of digital
services revenue.
Management is pleased to share Tribe's key goals for
2023:
- Increase monthly recurring revenue through both organic and
acquired means;
- Expand acquisition pipeline in underserved markets such as
Greater Toronto Area;
- Drive efficiencies in the business resulting in improved gross
margin and EBITDA;
- Continue to invest in our products to innovate and add
functionality.
- Continue to drive additional digital services revenue
To further expand the Tribe's presence and maximize its
potential, the Company is actively seeking acquisition
opportunities, with a particular focus on the Greater Toronto Area to strengthen its
foothold in Ontario. Tribe is
currently engaged in negotiations for multiple acquisition targets;
which the Company expects to announce in the coming months. Having
completed 11 acquisitions to date, Tribe has established a
successful track record of executing and integrating acquisitions
to further accelerate the Company's revenue growth.
Management Appointment:
Tribe is pleased to announce the appointment of Mr. Dan Feeny to the role of Chief Operating Officer
("COO"). Feeny is currently Tribe's Chief Technology Officer
and previously acted as interim COO for the Company. Feeny replaces
former COO Mr. Drew Keddy, who is
pursuing other endeavors.
"The appointment of Dan Feeny to
the Chief Operating Officer role solidifies Tribe's vision of an
integrated services and technology operating model, as the Company
delivers technology-backed service delivery, modernizing the
traditional property management industry," stated Joseph Nakhla. "We wish Drew well and on behalf
of our Board of Directors, our executive team, and our employees, I
thank Drew for his contributions."
First Quarter Financial Webcast:
The Company will hold a webcast to discuss its performance with
the investment community at 10:00 a.m.
PDT on May 31, 2023.
Webcast Link:
https://www.gowebcasting.com/12580
Participant Audio Only Dial-In Toll Free-North
America: +1 (800) 319-4610
International Toll: +1 (604) 638-5340.
Non-IFRS Measures:
The following and preceding discussion of financial results
includes reference to gross profit, gross profit percentage and
adjusted EBITDA, which are all non-IFRS financial measures. The
measure of gross profit2 and gross profit
percentage2 is provided as management believes this is a
good indicator in evaluating the operating performance of the
Company. Adjusted EBITDA1 is provided as a proxy for the
cash earnings from the operations of the business as operating
income (loss) for the Company includes non-cash amortization and
depreciation expense and stock-based compensation.
Gross Profit
$000s
|
Three Months Ended
March 31,
|
|
2023
|
2022
|
Revenue
|
$ 4,659
|
$ 4,202
|
Cost of software and
services and software license fees
|
2,831
|
2,367
|
Gross
Profit2
|
$ 1,828
|
$ 1,835
|
Gross
Profit2 %
|
39.2 %
|
43.7 %
|
Adjusted EBITDA1
|
Three Months Ended
March 31,
|
$000s
|
2023
|
2022
|
Net loss
|
$ (2,412)
|
$ (2,056)
|
Depreciation
|
217
|
209
|
Amortization
|
147
|
96
|
Stock-based
compensation
|
75
|
101
|
Interest
expense
|
147
|
168
|
Interest
income
|
(31)
|
-
|
Other
|
5
|
(1)
|
Adjusted EBITDA
1
|
$ (1,862)
|
$ (1,481)
|
Financial Statements and Management's Discussion &
Analysis
Please see the consolidated financial statements and related
Management's Discussion & Analysis ("MD&A") for more
details. The unaudited consolidated financial statements for the
three months ended March 31, 2023 and
related MD&A have been reviewed and approved by Tribe's Audit
Committee and Board of Directors. Tribe recognizes that most of its
investors are now accessing corporate and financial information
either through pushed news services, directly from
www.tribetech.com or SEDAR. Thus, Tribe has prepared this truncated
news release to alert investors to its results and that a more
detailed explanation and analysis is readily available in the
MD&A. These reports have been filed on SEDAR at www.sedar.com
and posted at www.tribetech.com.
About Tribe Property Technologies
Tribe is a property technology company that is digitizing the
traditional property management industry. As a rapidly growing
tech-forward property management company, Tribe's integrated
service-technology delivery model serves the needs of a much wider
variety of stakeholders than traditional service providers.
Tribe's three revenue pillars are made up of software and
service (recurring licensing and management fees), transactional
(rent or condo fees, banking services, lease-ups) and digital
services and partnership (smart building products, financial and
insurance service) revenue.
Tribe seeks to acquire highly accretive targets in the
fragmented North American property management industry and
transform these businesses through streamlining and digitization of
operations. Tribe's platform decreases customer acquisition costs,
increases retention, and allows for the addition of value-added
products and services through the platform. Visit tribetech.com for
more information.
ON BEHALF OF THE BOARD
"Joseph Nakhla"
Chief Executive Officer
Tribe Property Technologies Inc.
Joseph Nakhla
Chief Executive Officer
1606-1166 Alberni Street
Vancouver, British Columbia V6E
3Z3
Phone: (604) 343-2601
Email: joseph.nakhla@tribetech.com
1 Non-IFRS measure that does not have a standardized
meaning and may not be comparable to a similar measure disclosed by
other issuers. Adjusted EBITDA is also not a measure recognized in
accordance with IFRS and does not have a prescribed or standardized
meaning by IFRS. The Company defines Adjusted EBITDA as net income
or loss excluding depreciation and amortization, stock-based
compensation, interest expense, income tax expense, impairment
charges and other expenses. It should be noted that Adjusted EBITDA
is not defined under IFRS and may not be comparable to similar
measures used by other entities. The Company believes Adjusted
EBITDA is a useful measure as it provides important and relevant
information to management about the operating and financial
performance of the Company. Adjusted EBITDA also enables management
to assess its ability to generate operating cash flow to fund
future working capital needs, and to support future growth.
Excluding these items does not imply that they are non-recurring or
not useful to investors. Investors should be cautioned that
Adjusted EBITDA attributable to shareholders should not be
construed as an alternative to net income (loss) or cash flows as
determined under IFRS.
2 Non-IFRS measure that does not have a standard
meaning and may not be comparable to a similar measure disclosed by
other issuers. Gross profit and gross profit percentage do not have
a standardized meaning under IFRS, and therefore may not be
comparable to similar measures presented by other issuers. The
Company defines gross profit as revenue less cost of software and
services and software licensing fees, and gross profit percentage
as gross profit calculated as a percentage of revenue. Gross profit
and gross profit percentage should not be construed as an
alternative for revenue or net loss in accordance with IFRS. The
Company believes that gross profit and gross profit percentage are
meaningful metrics in assessing the Company's financial performance
and operational efficiency.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statement on Forward-Looking
Information
This news release may contain certain "Forward-Looking
Statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities laws regarding the Company and its business. When
or if used in this news release, the words "anticipate", "believe",
"estimate", "expect", "target, "plan", "forecast", "may",
"schedule" and similar words or expressions identify
forward-looking statements or information. Forward-looking
statements or information in this news release may relate to
statements with respect to the aims and goals of the Company;
financial projections; growth plans including future prospective
consolidation in the property management sector; future
acquisitions by the Company; beliefs of the Company with respect to
the independent owner-investors market; prospective benefits of the
Company's platform; and other factors or information. Such
statements represent the Company's current views with respect to
future events and are necessarily based upon several assumptions
and estimates that, while considered reasonable by the Company, are
inherently subject to significant business, economic, competitive,
political, and social risks, contingencies, and uncertainties. Many
factors, both known and unknown, could cause results, performance,
or achievements to be materially different from the results,
performance or achievements that are or may be expressed or implied
by such forward- looking statements. The Company does not intend,
and do not assume any obligation, to update these forward-looking
statements or information to reflect changes in assumptions or
changes in circumstances or any other events affecting such
statements and information other than as required by applicable
laws, rules, and regulations.
SOURCE Tribe Property Technologies Inc.