DIRTT Environmental Solutions Ltd., (TSX:DRT; Nasdaq: DRTT)
(“DIRTT” or the “Company”) an interior construction company that
uses technology for client-driven design and manufacturing, today
announced the following information has been disclosed on SEDAR and
posted DIRTT's website at:
www.dirtt.com/investors/financial-reports/:
- Unaudited financial statements for the second quarter of 2019
prepared in accordance with the accounting standards generally
accepted in the United States (“U.S. GAAP”), which include the
consolidated balance sheets as of June 30, 2019 and December 31,
2018, and the related statements of operations, comprehensive
income (loss), shareholders’ equity and cash flows for the three-
and six-month periods ended June 30, 2019 and June 30, 2018;
- Unaudited financial statements for the first quarter of 2019
prepared in accordance with U.S. GAAP, which include the
consolidated balance sheets as of March 31, 2019 and December 31,
2018, and the related statements of operations, comprehensive
income (loss), shareholders’ equity and cash flows for the
three-month periods ended March 31, 2019 and March 31, 2018;
and
- Annual U.S. GAAP financial statements, which include
consolidated balance sheets as of December 31, 2018 and 2017 and
the related statements of operations, comprehensive income (loss),
shareholders’ equity and cash flows for each of the three years in
the period ended December 31, 2018, 2017 and 2016 (on SEDAR such
statements are contained in the Form 10 which was filed as an
"Other" document on October 8, 2019).
Upon the U.S. Securities and Exchange
Commission’s (“SEC”) declaration of effectiveness of the Company’s
Registration Statement on Form 10 on June 8, 2019, in connection
with the listing of its common shares on The Nasdaq Global Select
Market ("Nasdaq"), the Company completed a conversion of its
financial statements from International Financial Reporting
Standards (“IFRS”) to U.S. GAAP and adopted U.S. GAAP as its
financial reporting framework. The Company’s Registration on Form
10 and other filings with the SEC are available to the public
through SEC’s website at www.sec.gov. The purpose of this
press release is to help readers accustomed to the past preparation
of DIRTT’s financial statements under IFRS understand the change in
preparation to U.S. GAAP.
DIRTT changed its reporting currency to U.S.
dollars (“US$”) upon adoption of U.S. GAAP. The change in reporting
currencies has a material impact on the Company’s financial
statements for all periods presented. DIRTT continues to
consolidate the Company and its subsidiaries’ financial statements
in Canadian dollars (“C$”), the Company’s functional currency, and
translates the assets and liabilities at the period end rate which
results in period-on-period translation adjustments recorded in
comprehensive income from the impact of the change in exchange rate
on net assets.
The following discussion has been prepared using
the Accounting Standards Codifications (“ASCs”), Accounting
Standards Updates (“ASUs”) and interpretations currently issued and
expected to be effective at the end of the Company’s first U.S.
GAAP annual reporting period, December 31, 2019. Management
does not expect the adoption of U.S. GAAP to have a material impact
on the Company’s business activities or cash flows; however, it
will impact certain aspects of the reported financial results, the
more significant of which are described as follows:
1.
Accounting for intangible assets and software development
costs
Under U.S. GAAP, product development costs are
not eligible for capitalization, and therefore the initial value of
the Company’s intangible assets is lower as compared to IFRS.
This change also has the impact of reducing net income and Adjusted
EBITDA (see Non-GAAP measures) as product development costs are
expensed as incurred. This change has also resulted in a reduction
in the impairment charges recognized in 2018 as development costs
for the DIRTT for Life and DIRTT Timber lines of business would
have been previously expensed as incurred under U.S. GAAP and
therefore not subject to impairment.
Under U.S. GAAP, software development costs are
capitalized as internal use software in accordance with ASC 350 –
Intangibles Goodwill and Other, with no material differences to the
accounting treatment under IFRS.
2.
Amounts included in cost of sales
Certain of the Company’s fixed costs were
treated as overhead items under IFRS and accounted for as operating
expenditures. Under U.S. GAAP, these costs are presented
within cost of sales as they relate to the production of DIRTT
solutions. The impact of this is a reclassification of US$8
to US$9 million (including US$4 million to US$5 million of
depreciation and amortization) annually from operating costs to
cost of sales with a corresponding 3% to 4% reduction in gross
profit. This change is an adjustment within the statement of
operations only; there is no impact to net income or Adjusted
EBITDA (see Non-GAAP measures) as compared to amounts previously
reported under IFRS.
3.
Adoption of ASC 842 – Leases (“ASC 842”)
and onerous lease accruals
On January 1, 2019, DIRTT adopted IFRS 16 –
Leases (“IFRS 16”), which had a material impact on DIRTT’s balance
sheet and cash flows, and Adjusted EBITDA (see Non-GAAP measures).
The impact is described in DIRTT’s unaudited condensed consolidated
interim financial statements and management’s discussion and
analysis for the first and second quarters of 2019, previously
filed on SEDAR. Consistent with IFRS 16, the adoption of ASC
842 had a material impact on the Company’s balance sheet, resulting
in the recognition of US$23 million of right-of-use (“ROU”) assets
and associated US$24 million lease liabilities as at January 1,
2019. Under U.S. GAAP, the charge on the statement of
operations is accounted for as rent expense on a straight-line
basis. This treatment is different from that under IFRS,
which classifies the expense as depreciation of the ROU asset and
interest expense for the accretion of the lease
liability.
This difference results in changes to cash flows
from operations and Adjusted EBITDA (see Non-GAAP measures) from
January 1, 2019 forward with minimal change in net
income. In 2019, cash flows from operations are lower
under U.S. GAAP as lease payments are classified as operating
expenditures rather than as financing expenditures under
IFRS. Adjusted EBITDA (see Non-GAAP measures) is lower from
January 1, 2019 forward as a result of the change in classification
of the expense from depreciation and interest under IFRS to lease
expense under US GAAP.
Additionally, the Company recognized a provision
of C$1.8 million for an onerous lease under IFRS in 2018.
Under US GAAP, this provision would not be recognized.
4.
Stock-based compensation
During 2018, the Company modified its employee
stock option plan to provide a cash settlement alternative to its
employees in connection with the exercise of stock options.
At period end under U.S. GAAP, the liability is adjusted to fair
value and the excess of fair value over previously recognized
stock-based compensation is expensed. Increases or decreases
in fair value subsequent to the modification date of the stock
option plan will be recorded in earnings, except that the Company
may not recognize a cumulative expense lower than the grant date
fair value of the original equity awards. IFRS does not have the
‘previously recognized’ thresholds in modification accounting,
which has resulted in a C$2.1 million increase in stock-based
compensation charges in 2018.
Additionally, U.S. GAAP allows for a policy
choice for graded or straight-line attribution of stock-based
compensation expense, whereas IFRS requires stock options to be
expensed using the graded vesting methodology only. On
adoption of US GAAP, the Company’s management has elected to use
the straight-line methodology to be more comparable with U.S. peer
companies. This change resulted in a C$0.9 million increase to
stock-based compensation expense for the year-ended December 31,
2018.
5.
Other items, presentation and disclosures
The Company has disclosed other items in its
reconciliation from IFRS to US GAAP, which include adjustments that
are considered individually immaterial to the financial
statements.
The Company has incorporated changes to the
presentation and disclosure of certain items in the consolidated
balance sheets, statements of operations, comprehensive loss and
cash flows, and notes to the consolidated financial statements to
conform to the requirements of the applicable ASCs, ASUs and, if
applicable, U.S. securities laws and the rules of the United States
Securities and Exchange Commission.
The following is an unaudited tabular reconciliation from IFRS
to US GAAP:
Q2 2019: Statement of Operations for the
three-month period ended June 30, 2019 (unaudited)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Product revenue |
81,808 |
- |
157 |
- |
- |
- |
- |
81,965 |
61,273 |
Service revenue |
3,769 |
- |
- |
- |
- |
- |
- |
3,769 |
2,818 |
Total revenue |
85,577 |
- |
157 |
- |
- |
- |
- |
85,734 |
64,091 |
Product cost of sales |
47,079 |
- |
- |
2,554 |
- |
- |
- |
49,633 |
37,102 |
Service cost of sales |
3,048 |
- |
- |
386 |
- |
- |
- |
3,434 |
2,568 |
Total cost of sales |
50,127 |
- |
- |
2,940 |
- |
- |
- |
53,067 |
39,670 |
Gross profit |
35,450 |
- |
157 |
(2,940) |
- |
- |
- |
32,667 |
24,421 |
Operating expenses |
29,050 |
- |
(135) |
(2,940) |
325 |
- |
- |
26,300 |
19,660 |
Operating income |
6,400 |
- |
292 |
- |
(325) |
- |
- |
6,367 |
4,761 |
Foreign exchange loss |
591 |
- |
- |
- |
- |
- |
- |
591 |
441 |
Interest income |
(51) |
- |
- |
- |
- |
- |
- |
(51) |
(38) |
Interest expense |
402 |
- |
- |
- |
(368) |
- |
- |
34 |
25 |
Net income before tax |
5,458 |
- |
292 |
- |
43 |
- |
- |
5,793 |
4,333 |
Current tax |
1,251 |
- |
- |
- |
- |
- |
- |
1,251 |
936 |
Deferred tax |
1,223 |
- |
79 |
- |
- |
- |
(250) |
1,052 |
786 |
Net income |
2,984 |
- |
213 |
- |
43 |
- |
250 |
3,490 |
2,611 |
Exchange differences on
foreign ops |
(1,712) |
- |
- |
- |
- |
- |
- |
(1,712) |
1,276 |
Comprehensive income |
1,272 |
- |
213 |
- |
43 |
- |
250 |
1,778 |
3,887 |
Net
income per share |
0.03 |
|
|
|
|
|
|
0.04 |
0.03 |
|
|
|
|
|
|
|
|
|
|
Q2 2019: Adjusted EBITDA for the three-month period
ended June 30, 2019 (unaudited, see Non-GAAP measures)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Net income |
2,984 |
- |
213 |
- |
43 |
- |
250 |
3,490 |
2,611 |
Interest expense |
402 |
- |
- |
- |
(368) |
- |
- |
34 |
25 |
Interest income |
(51) |
- |
- |
- |
- |
- |
- |
(51) |
(38) |
Income tax expense |
2,474 |
- |
79 |
- |
- |
- |
(250) |
2,303 |
1,722 |
Depreciation on ROU
assets |
1,386 |
- |
- |
- |
(1,386) |
- |
- |
- |
- |
Depreciation and
amortization |
4,166 |
- |
(233) |
- |
- |
- |
- |
3,933 |
2,940 |
EBITDA |
11,361 |
- |
59 |
- |
(1,711) |
- |
- |
9,709 |
7,260 |
Stock based compensation |
(2,212) |
- |
- |
- |
- |
- |
- |
(2,212) |
(1,655) |
Adjusted EBITDA |
9,149 |
- |
59 |
- |
(1,711) |
- |
- |
7,497 |
5,605 |
Adjusted EBITDA % |
10.7% |
|
|
|
|
|
|
8.7% |
8.7% |
|
|
|
|
|
|
|
|
|
|
Q2 2019: Statement of Operations for the
six-month period ended June 30, 2019 (unaudited)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Product revenue |
166,516 |
- |
324 |
- |
- |
- |
- |
166,840 |
125,113 |
Service revenue |
5,392 |
- |
- |
- |
- |
- |
- |
5,392 |
4,039 |
Total revenue |
171,908 |
- |
324 |
- |
- |
- |
- |
172,232 |
129,152 |
Product cost of sales |
97,450 |
- |
- |
5,453 |
- |
- |
- |
102,903 |
77,170 |
Service cost of sales |
4,895 |
- |
- |
386 |
- |
- |
- |
5,281 |
3,957 |
Total cost of sales |
102,345 |
- |
- |
5,839 |
- |
- |
- |
108,184 |
81,127 |
Gross profit |
69,563 |
- |
324 |
(5,839) |
- |
- |
- |
64,048 |
48,025 |
Operating expenses |
69,989 |
- |
(170) |
(5,839) |
608 |
(571) |
- |
64,017 |
48,029 |
Operating income |
(426) |
- |
494 |
- |
(608) |
571 |
- |
31 |
(4) |
Foreign exchange loss |
1,280 |
- |
- |
- |
- |
- |
- |
1,280 |
960 |
Interest income |
(123) |
- |
- |
- |
- |
- |
- |
(123) |
(92) |
Interest expense |
811 |
- |
- |
- |
(712) |
- |
- |
99 |
74 |
Net income before tax |
(2,394) |
- |
494 |
- |
104 |
571 |
- |
(1,225) |
(946) |
Current tax |
1,454 |
- |
- |
- |
- |
- |
- |
1,454 |
1,088 |
Deferred tax |
983 |
- |
134 |
- |
- |
(36) |
(250) |
831 |
620 |
Net income (loss) |
(4,831) |
- |
360 |
- |
104 |
607 |
250 |
(3,510) |
(2,654) |
Exchange differences on
foreign ops |
(2,399) |
- |
- |
- |
- |
- |
- |
(2,399) |
3,372 |
Comprehensive income |
(7,230) |
- |
360 |
- |
104 |
607 |
250 |
(5,909) |
718 |
Net
income per share |
(0.06) |
|
|
|
|
|
|
(0.04) |
(0.03) |
|
|
|
|
|
|
|
|
|
|
Q2 2019: Adjusted EBITDA for the six-month period ended
June 30, 2019 (unaudited, see Non-GAAP measures)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Net income (loss) |
(4,831) |
- |
360 |
- |
104 |
607 |
250 |
(3,510) |
(2,654) |
Interest expense |
811 |
- |
- |
- |
(712) |
- |
- |
99 |
74 |
Interest income |
(123) |
- |
- |
- |
- |
- |
- |
(123) |
(92) |
Income tax expense |
2,437 |
- |
134 |
- |
- |
(36) |
(250) |
2,285 |
1,708 |
Depreciation on ROU
assets |
2,805 |
- |
- |
- |
(2,805) |
- |
- |
- |
- |
Depreciation and
amortization |
8,906 |
- |
(459) |
- |
- |
- |
- |
8,447 |
6,335 |
EBITDA |
10,005 |
- |
35 |
- |
(3,413) |
571 |
- |
7,198 |
5,371 |
Stock based compensation |
6,930 |
- |
- |
- |
- |
(571) |
- |
6,359 |
4,792 |
Foreign exchange on debt
revaluation |
(280) |
- |
- |
- |
- |
- |
- |
(280) |
(211) |
Reorganization expense |
3,508 |
- |
- |
- |
- |
- |
- |
3,508 |
2,639 |
Adjusted EBITDA |
20,163 |
- |
35 |
- |
(3,413) |
- |
- |
16,785 |
12,591 |
Adjusted EBITDA % |
11.7% |
|
|
|
|
|
|
9.7% |
9.7% |
|
|
|
|
|
|
|
|
|
|
Q2 2019: Balance Sheet as at June 30, 2019
(unaudited)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
ASSETS |
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
76,868 |
- |
- |
- |
- |
- |
- |
76,868 |
58,736 |
Trade and other receivables |
37,280 |
- |
- |
- |
- |
- |
- |
37,280 |
28,487 |
Inventory |
24,488 |
- |
- |
- |
- |
- |
- |
24,488 |
18,712 |
Prepaids and other current assets |
2,927 |
- |
- |
- |
- |
- |
- |
2,927 |
2,236 |
Total Current Assets |
141,563 |
- |
- |
- |
- |
- |
- |
141,563 |
108,171 |
Property, plant and equipment, net |
47,207 |
- |
- |
- |
- |
- |
- |
47,207 |
36,072 |
Intangible assets |
18,620 |
(18,922) |
302 |
- |
- |
- |
- |
- |
- |
Capitalized software, net |
- |
11,371 |
(325) |
- |
- |
- |
- |
11,046 |
8,442 |
Right of use assets |
25,909 |
- |
- |
- |
1,578 |
- |
- |
27,487 |
21,004 |
Deferred tax assets, net |
6,278 |
(321) |
(134) |
- |
- |
35 |
250 |
6,108 |
4,665 |
Goodwill |
1,845 |
- |
- |
- |
- |
- |
- |
1,845 |
1,410 |
Other assets |
2,309 |
4,790 |
54 |
- |
- |
- |
- |
7,153 |
5,465 |
Total Assets |
243,731 |
(3,082) |
(103) |
- |
1,578 |
35 |
250 |
242,409 |
185,229 |
LIABILITIES |
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
30,413 |
(1,974) |
- |
- |
- |
- |
- |
28,439 |
21,730 |
Other liabilities |
9,990 |
- |
- |
- |
- |
- |
- |
9,990 |
7,615 |
Customer deposits |
9,785 |
674 |
(465) |
- |
- |
- |
- |
9,994 |
7,638 |
Current lease liabilities |
5,347 |
- |
- |
- |
783 |
- |
- |
6,130 |
4,685 |
Total Current Liabilities |
55,535 |
(1,300) |
(465) |
- |
783 |
- |
- |
54,553 |
41,668 |
Other liabilities |
1,523 |
246 |
- |
- |
1,432 |
- |
- |
3,201 |
2,465 |
Long-term lease
liabilities |
23,352 |
- |
- |
- |
(742) |
- |
- |
22,610 |
17,277 |
Total
Liabilities |
80,410 |
(1,054) |
(465) |
- |
1,473 |
- |
- |
80,364 |
61,410 |
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Common shares |
198,575 |
295 |
- |
- |
- |
- |
- |
198,870 |
180,579 |
Additional paid-in capital |
8,161 |
1,174 |
- |
- |
- |
(571) |
- |
8,764 |
6,185 |
Accumulated other comprehensive income |
4,008 |
(2,093) |
- |
- |
- |
- |
- |
1,915 |
(18,720) |
Accumulated deficit |
(47,423) |
(1,404) |
362 |
- |
105 |
606 |
250 |
(47,504) |
(44,225) |
Total Shareholders' Equity |
163,321 |
(2,028) |
362 |
- |
105 |
35 |
250 |
162,045 |
123,819 |
Total
Liabilities and Shareholders' Equity |
243,731 |
(3,082) |
(103) |
- |
1,578 |
35 |
250 |
242,409 |
185,229 |
|
|
|
|
|
|
|
|
|
|
Q1 2019: Statement of Operations for the three-month
period ended March 31, 2019 (unaudited)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Product revenue |
84,708 |
- |
167 |
- |
- |
- |
- |
84,875 |
63,840 |
Service revenue |
1,623 |
- |
- |
- |
- |
- |
- |
1,623 |
1,221 |
Total revenue |
86,331 |
- |
167 |
- |
- |
- |
- |
86,498 |
65,061 |
Product cost of sales |
50,371 |
- |
- |
2,899 |
- |
- |
- |
53,270 |
40,068 |
Service cost of sales |
1,847 |
- |
- |
- |
- |
- |
- |
1,847 |
1,389 |
Total cost of sales |
52,218 |
- |
- |
2,899 |
- |
- |
- |
55,117 |
41,457 |
Gross profit |
34,113 |
- |
167 |
(2,899) |
- |
- |
- |
31,381 |
23,604 |
Operating expenses |
40,939 |
- |
(35) |
(2,899) |
283 |
(571) |
- |
37,717 |
28,369 |
Operating income |
(6,826) |
- |
202 |
- |
(283) |
571 |
- |
(6,336) |
(4,765) |
Foreign exchange loss |
689 |
- |
- |
- |
- |
- |
- |
689 |
519 |
Interest income |
(72) |
- |
- |
- |
- |
- |
- |
(72) |
(54) |
Interest expense |
409 |
- |
- |
- |
(344) |
- |
- |
65 |
49 |
Net income before tax |
(7,852) |
- |
202 |
- |
61 |
571 |
- |
(7,018) |
(5,279) |
Current tax |
203 |
- |
- |
- |
- |
- |
- |
203 |
152 |
Deferred tax |
(240) |
- |
55 |
- |
- |
(36) |
- |
(221) |
(166) |
Net income |
(7,815) |
- |
147 |
- |
61 |
607 |
- |
(7,000) |
(5,265) |
Exchange differences on
foreign ops |
(687) |
- |
- |
- |
- |
- |
- |
(687) |
2,096 |
Comprehensive income |
(8,502) |
- |
147 |
- |
61 |
607 |
- |
(7,687) |
(3,169) |
Net
income per share |
(0.09) |
- |
0.00 |
- |
0.00 |
0.01 |
- |
(0.08) |
(0.06) |
|
|
|
|
|
|
|
|
|
|
Q1 2019: Adjusted EBITDA for the
three-month period ended March 31, 2019 (unaudited, see Non-GAAP
measures)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Net income |
(7,815) |
- |
147 |
- |
61 |
607 |
- |
(7,000) |
(5,265) |
Interest expense |
409 |
- |
- |
- |
(344) |
- |
- |
65 |
49 |
Interest income |
(72) |
- |
- |
- |
- |
- |
- |
(72) |
(54) |
Income tax expense |
(37) |
- |
55 |
- |
- |
(36) |
- |
(18) |
(14) |
Depreciation on ROU
assets |
1,419 |
- |
- |
- |
(1,419) |
- |
- |
- |
- |
Depreciation and
amortization |
4,740 |
- |
(226) |
- |
- |
- |
- |
4,514 |
3,395 |
EBITDA |
(1,356) |
- |
(24) |
- |
(1,702) |
571 |
- |
(2,511) |
(1,889) |
Stock based compensation |
9,142 |
- |
- |
- |
- |
(571) |
- |
8,571 |
6,447 |
Foreign exchange on debt
revaluation |
(280) |
- |
- |
- |
- |
- |
- |
(280) |
(211) |
Reorganization costs |
3,508 |
- |
- |
- |
- |
- |
- |
3,508 |
2,639 |
Adjusted EBITDA |
11,014 |
- |
(24) |
- |
(1,702) |
- |
- |
9,288 |
6,986 |
Adjusted EBITDA % |
12.8% |
|
|
|
|
|
|
10.7% |
10.7% |
|
|
|
|
|
|
|
|
|
|
Q1 2019: Balance Sheet as at March 31, 2019
(unaudited)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
ASSETS |
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
72,239 |
- |
- |
- |
- |
- |
- |
72,239 |
54,059 |
Trade and other receivables |
49,686 |
- |
- |
- |
- |
- |
- |
49,686 |
37,182 |
Inventory |
24,650 |
- |
- |
- |
- |
- |
- |
24,650 |
18,447 |
Prepaids and other current assets |
3,408 |
- |
- |
- |
- |
- |
- |
3,408 |
2,550 |
Total Current Assets |
149,983 |
- |
- |
- |
- |
- |
- |
149,983 |
112,238 |
Property, plant and equipment, net |
48,170 |
- |
- |
- |
- |
- |
- |
48,170 |
36,048 |
Intangible assets |
18,270 |
(18,922) |
652 |
- |
- |
- |
- |
- |
- |
Capitalized software, net |
- |
11,371 |
(575) |
- |
- |
- |
- |
10,796 |
8,079 |
Right of use assets |
27,590 |
- |
- |
- |
1,549 |
- |
- |
29,139 |
21,805 |
Deferred tax assets, net |
7,722 |
(321) |
(55) |
- |
- |
35 |
- |
7,381 |
5,522 |
Goodwill |
1,845 |
- |
- |
- |
- |
- |
- |
1,845 |
1,381 |
Other assets |
2,202 |
4,790 |
(141) |
- |
- |
- |
- |
6,851 |
5,126 |
Total Assets |
255,782 |
(3,082) |
(119) |
- |
1,549 |
35 |
- |
254,165 |
190,199 |
LIABILITIES |
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
37,093 |
(1,974) |
- |
- |
- |
- |
- |
35,119 |
26,281 |
Other liabilities |
16,712 |
- |
- |
- |
- |
- |
- |
16,712 |
13,771 |
Customer deposits |
7,829 |
674 |
(267) |
- |
- |
- |
- |
8,236 |
6,163 |
Current lease liabilities |
5,943 |
- |
- |
- |
(49) |
- |
- |
5,894 |
4,410 |
Total Current Liabilities |
67,577 |
(1,300) |
(267) |
- |
(49) |
- |
- |
65,961 |
50,625 |
Other liabilities |
1,424 |
246 |
- |
- |
1,432 |
- |
- |
3,102 |
1,056 |
Long-term lease
liabilities |
24,749 |
- |
- |
- |
105 |
- |
- |
24,854 |
18,599 |
Total
Liabilities |
93,750 |
(1,054) |
(267) |
- |
1,488 |
- |
- |
93,917 |
70,280 |
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Common shares |
198,558 |
295 |
- |
- |
- |
- |
- |
198,853 |
180,566 |
Additional paid-in capital |
8,161 |
1,174 |
- |
- |
- |
(571) |
- |
8,764 |
6,185 |
Accumulated other comprehensive income |
5,720 |
(2,093) |
- |
- |
- |
- |
- |
3,627 |
(19,996) |
Accumulated deficit |
(50,407) |
(1,404) |
148 |
- |
61 |
606 |
- |
(50,996) |
(46,836) |
Total Shareholders' Equity |
162,032 |
(2,028) |
148 |
- |
61 |
35 |
- |
160,248 |
119,919 |
Total
Liabilities and Shareholders' Equity |
255,782 |
(3,082) |
(119) |
- |
1,549 |
35 |
- |
254,165 |
190,199 |
|
|
|
|
|
|
|
|
|
|
Q4 2018: Statement of Operations for the year ended
December 31, 2018 (unaudited):
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Product revenue |
346,028 |
- |
(296) |
- |
- |
- |
- |
345,732 |
266,434 |
Service revenue |
10,651 |
- |
- |
- |
- |
- |
- |
10,651 |
8,247 |
Total revenue |
356,679 |
- |
(296) |
- |
- |
- |
- |
356,383 |
274,681 |
Product cost of sales |
199,329 |
- |
- |
10,738 |
- |
- |
- |
210,067 |
161,844 |
Service cost of sales |
7,527 |
- |
- |
- |
- |
- |
- |
7,527 |
5,828 |
Total cost of sales |
206,856 |
- |
- |
10,738 |
- |
- |
- |
217,594 |
167,672 |
Gross profit |
149,823 |
- |
(296) |
(10,738) |
- |
- |
- |
138,789 |
107,009 |
Operating expenses |
148,483 |
- |
(7,501) |
(10,738) |
(1,729) |
2,997 |
- |
131,512 |
101,315 |
Operating income |
1,340 |
- |
7,205 |
- |
1,729 |
(2,997) |
- |
7,277 |
5,694 |
Foreign exchange gain |
(3,280) |
- |
- |
- |
- |
- |
(917) |
(4,197) |
(3,214) |
Interest income |
(550) |
- |
- |
- |
- |
- |
- |
(550) |
(425) |
Interest expense |
655 |
- |
- |
- |
- |
- |
- |
655 |
503 |
Net income before tax |
4,515 |
- |
7,205 |
- |
1,729 |
(2,997) |
917 |
11,369 |
8,830 |
Current tax |
2,798 |
- |
- |
- |
- |
- |
- |
2,798 |
2,178 |
Deferred tax |
(1,280) |
- |
1,941 |
- |
467 |
36 |
247 |
1,411 |
1,102 |
Net income (loss) |
2,997 |
- |
5,264 |
- |
1,262 |
(3,033) |
670 |
7,160 |
5,550 |
Exchange differences on
foreign ops |
434 |
- |
- |
- |
- |
- |
292 |
726 |
(9,980) |
Comprehensive income |
3,431 |
- |
5,264 |
- |
1,262 |
(3,033) |
962 |
7,886 |
(4,430) |
Net
income per share |
0.04 |
|
|
|
|
|
|
0.08 |
0.07 |
|
|
|
|
|
|
|
|
|
|
Q4 2018: Adjusted EBITDA for the year
ended December 31, 2018 (unaudited, see Non-GAAP
measures):
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Net income |
2,997 |
- |
5,264 |
- |
1,262 |
(3,033) |
670 |
7,160 |
5,550 |
Interest expense |
655 |
- |
- |
- |
- |
- |
- |
655 |
503 |
Interest income |
(550) |
- |
- |
- |
- |
- |
- |
(550) |
(425) |
Income tax expense |
1,518 |
- |
1,941 |
- |
467 |
36 |
247 |
4,209 |
3,280 |
Depreciation and
amortization |
19,474 |
- |
(1,717) |
- |
- |
- |
- |
17,757 |
13,699 |
EBITDA |
24,094 |
- |
5,488 |
- |
1,729 |
(2,997) |
917 |
29,231 |
22,607 |
Stock based compensation |
1,761 |
- |
- |
- |
- |
2,997 |
- |
4,758 |
3,661 |
Foreign exchange on debt
revaluation |
741 |
- |
- |
- |
- |
- |
- |
741 |
546 |
Impairment expense |
19,975 |
- |
(6,864) |
- |
(1,729) |
- |
- |
11,382 |
8,680 |
Reorganization costs |
9,600 |
- |
- |
- |
- |
- |
- |
9,600 |
7,380 |
Adjusted EBITDA |
56,171 |
- |
(1,376) |
- |
- |
- |
917 |
55,712 |
42,874 |
Adjusted EBITDA % |
15.7% |
|
|
|
|
|
|
15.6% |
15.6% |
|
|
|
|
|
|
|
|
|
|
Q4 2018: Balance Sheet as at December 31, 2018
(unaudited)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
72,865 |
- |
- |
- |
- |
- |
- |
72,865 |
53,412 |
Trade and other receivables |
59,852 |
- |
- |
- |
- |
- |
- |
59,852 |
43,873 |
Inventory |
25,442 |
- |
- |
- |
- |
- |
- |
25,442 |
18,650 |
Prepaids and other current assets |
3,025 |
- |
- |
- |
- |
- |
- |
3,025 |
2,217 |
Total Current Assets |
161,184 |
- |
- |
- |
- |
- |
- |
161,184 |
118,152 |
Property, plant and equipment, net |
50,104 |
- |
- |
- |
- |
- |
- |
50,104 |
36,728 |
Intangible assets |
18,922 |
(24,718) |
5,796 |
- |
- |
- |
- |
- |
- |
Capitalized software, net |
- |
10,440 |
931 |
- |
- |
- |
- |
11,371 |
8,335 |
Deferred tax assets, net |
8,618 |
1,162 |
(1,941) |
- |
(467) |
(36) |
962 |
8,297 |
6,083 |
Goodwill |
1,845 |
- |
- |
- |
- |
- |
- |
1,845 |
1,353 |
Other assets |
2,385 |
4,313 |
477 |
- |
- |
- |
- |
7,175 |
5,260 |
Total Assets |
243,058 |
(8,803) |
5,263 |
- |
(467) |
(36) |
962 |
239,977 |
175,911 |
LIABILITIES |
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
|
Trade accounts payable and other liabilities |
42,673 |
- |
- |
- |
- |
- |
- |
42,673 |
31,283 |
Other liabilities |
9,262 |
- |
(283) |
- |
327 |
- |
- |
9,306 |
6,823 |
Customer deposits |
9,832 |
674 |
- |
- |
- |
- |
- |
10,506 |
7,701 |
Current portion of long-term debt |
3,411 |
- |
- |
- |
- |
- |
- |
3,411 |
2,500 |
Total Current Liabilities |
65,178 |
674 |
(283) |
- |
327 |
- |
- |
65,896 |
48,307 |
Deferred tax liabilities, net |
1,314 |
2 |
- |
- |
- |
- |
- |
1,316 |
965 |
Other liabilities |
1,773 |
- |
- |
- |
(1,773) |
- |
- |
- |
- |
Long-term debt |
4,263 |
- |
- |
- |
- |
- |
- |
4,263 |
3,125 |
Total
Liabilities |
72,528 |
676 |
(283) |
- |
(1,446) |
- |
- |
71,475 |
52,397 |
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Common shares |
198,552 |
295 |
- |
- |
- |
- |
- |
198,847 |
180,562 |
Additional paid-in capital |
8,163 |
(1,824) |
1,167 |
- |
(283) |
2,114 |
- |
9,337 |
6,615 |
Accumulated other comprehensive income |
6,407 |
(2,385) |
- |
- |
- |
- |
292 |
4,314 |
(22,092) |
Accumulated deficit |
(42,592) |
(5,565) |
4,379 |
- |
1,262 |
(2,150) |
669 |
(43,996) |
(41,571) |
Total Shareholders' Equity |
170,530 |
(9,479) |
5,546 |
- |
979 |
(36) |
962 |
168,502 |
123,514 |
Total
Liabilities and Shareholders' Equity |
243,058 |
(8,803) |
5,263 |
- |
(467) |
(36) |
962 |
239,977 |
175,911 |
|
|
|
|
|
|
|
|
|
|
Q3 2018: Statement of Operations for the three-month
period ended September 30, 2018 (unaudited)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Product revenue |
93,738 |
- |
- |
- |
- |
- |
- |
93,738 |
71,720 |
Service revenue |
2,866 |
- |
- |
- |
- |
- |
- |
2,866 |
2,193 |
Total revenue |
96,604 |
- |
- |
- |
- |
- |
- |
96,604 |
73,913 |
Product cost of sales |
52,500 |
- |
- |
2,658 |
- |
- |
- |
55,158 |
42,202 |
Service cost of sales |
2,128 |
- |
- |
- |
- |
- |
- |
2,128 |
1,628 |
Total cost of sales |
54,628 |
- |
- |
2,658 |
- |
- |
- |
57,286 |
43,830 |
Gross profit |
41,976 |
- |
- |
(2,658) |
- |
- |
- |
39,318 |
30,083 |
Operating expenses |
47,786 |
- |
(7,120) |
(2,658) |
- |
1,769 |
- |
39,777 |
30,435 |
Operating income |
(5,810) |
- |
7,120 |
- |
- |
(1,769) |
- |
(459) |
(352) |
Foreign exchange (gain)
loss |
(73) |
- |
- |
- |
- |
- |
598 |
525 |
400 |
Interest income |
(132) |
- |
- |
- |
- |
- |
- |
(132) |
(101) |
Interest expense |
127 |
- |
- |
- |
- |
- |
- |
127 |
97 |
Net income before tax |
(5,732) |
- |
7,120 |
- |
- |
(1,769) |
(598) |
(979) |
(748) |
Current tax |
1,495 |
- |
- |
- |
- |
- |
- |
1,495 |
1,144 |
Deferred tax |
(2,360) |
- |
1,919 |
- |
- |
- |
(162) |
(603) |
(461) |
Net income (loss) |
(4,867) |
- |
5,201 |
- |
- |
(1,769) |
(436) |
(1,871) |
(1,431) |
Exchange differences on
foreign ops |
(2,293) |
- |
- |
- |
- |
- |
1,807 |
(486) |
1,783 |
Comprehensive income |
(7,160) |
- |
5,201 |
- |
- |
(1,769) |
1,371 |
(2,357) |
352 |
Net
income per share |
(0.06) |
|
|
|
|
|
|
(0.02) |
(0.02) |
|
|
|
|
|
|
|
|
|
|
Q3 2018: Adjusted EBITDA for the
three-month period ended September 30, 2018 (unaudited, see
Non-GAAP measures)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Net income (loss) |
(4,867) |
- |
5,201 |
- |
- |
(1,769) |
(436) |
(1,871) |
(1,433) |
Interest expense |
127 |
- |
- |
- |
- |
- |
|
127 |
97 |
Interest income |
(132) |
- |
- |
- |
- |
- |
- |
(132) |
(101) |
Income tax expense |
(865) |
- |
1,919 |
- |
- |
- |
(162) |
892 |
683 |
Depreciation and
amortization |
5,010 |
- |
(378) |
- |
- |
- |
- |
4,632 |
3,545 |
EBITDA |
(727) |
- |
6,742 |
- |
- |
(1,769) |
(598) |
3,648 |
2,791 |
Stock based compensation |
893 |
- |
- |
- |
- |
1,769 |
- |
2,662 |
2,037 |
Foreign exchange on debt
revaluation |
(134) |
- |
- |
- |
- |
- |
- |
(134) |
(100) |
Impairment expense |
14,834 |
- |
(6,864) |
- |
- |
- |
- |
7,970 |
6,098 |
Reorganization costs |
2,923 |
- |
- |
- |
- |
- |
- |
2,923 |
2,236 |
Other |
(1) |
- |
- |
- |
- |
- |
1 |
- |
- |
Adjusted EBITDA |
17,789 |
- |
(122) |
- |
- |
- |
(597) |
17,070 |
13,062 |
Adjusted EBITDA % |
18.4% |
|
|
|
|
|
|
17.7% |
17.7% |
|
|
|
|
|
|
|
|
|
|
Q3 2018: Statement of Operations for the nine-month
period ended September 30, 2018 (unaudited):
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Product revenue |
249,196 |
- |
- |
- |
- |
- |
- |
249,196 |
193,378 |
Service revenue |
8,823 |
- |
- |
- |
- |
- |
- |
8,823 |
6,863 |
Total revenue |
258,019 |
- |
- |
- |
- |
- |
- |
258,019 |
200,241 |
Product cost of sales |
141,559 |
- |
- |
7,853 |
- |
- |
- |
149,412 |
115,941 |
Service cost of sales |
6,317 |
- |
- |
- |
- |
- |
- |
6,317 |
4,912 |
Total cost of sales |
147,876 |
- |
- |
7,853 |
- |
- |
- |
155,729 |
120,853 |
Gross profit |
110,143 |
- |
- |
(7,853) |
- |
- |
- |
102,290 |
79,388 |
Operating expenses |
109,052 |
- |
(7,404) |
(7,853) |
- |
2,545 |
- |
96,340 |
74,698 |
Operating income |
1,091 |
- |
7,404 |
- |
- |
(2,545) |
- |
5,950 |
4,690 |
Foreign exchange (gain)
loss |
(96) |
- |
- |
- |
- |
- |
(917) |
(1,013) |
(805) |
Interest income |
(421) |
- |
- |
- |
- |
- |
- |
(421) |
(327) |
Interest expense |
387 |
- |
- |
- |
- |
- |
- |
387 |
300 |
Net income before tax |
1,221 |
- |
7,404 |
- |
- |
(2,545) |
917 |
6,997 |
5,522 |
Current tax |
3,531 |
- |
- |
- |
- |
- |
- |
3,531 |
2,732 |
Deferred tax |
(1,783) |
- |
1,995 |
- |
- |
- |
247 |
459 |
381 |
Net income (loss) |
(527) |
- |
5,409 |
- |
- |
(2,545) |
670 |
3,007 |
2,409 |
Exchange differences on
foreign ops |
(86) |
- |
- |
- |
- |
- |
292 |
206 |
(3,801) |
Comprehensive income |
(613) |
- |
5,409 |
- |
- |
(2,545) |
962 |
3,213 |
(1,392) |
Net
income per share |
(0.01) |
|
|
|
|
|
|
0.04 |
0.03 |
|
|
|
|
|
|
|
|
|
|
Q3 2018: Adjusted EBITDA for the
nine-month period ended June 30, 2019 (unaudited, see Non-GAAP
measures)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Net income (loss) |
(527) |
- |
5,409 |
- |
- |
(2,545) |
670 |
3,007 |
2,407 |
Interest expense |
387 |
- |
- |
- |
- |
- |
- |
387 |
300 |
Interest income |
(421) |
- |
- |
- |
- |
- |
- |
(421) |
(327) |
Income tax expense |
1,748 |
- |
1,995 |
- |
- |
- |
247 |
3,990 |
3,113 |
Depreciation and
amortization |
14,706 |
- |
(1,385) |
- |
- |
- |
- |
13,321 |
10,343 |
EBITDA |
15,893 |
- |
6,019 |
- |
- |
(2,545) |
917 |
20,284 |
15,836 |
Stock based compensation |
1,567 |
- |
- |
- |
- |
2,545 |
- |
4,112 |
3,172 |
Foreign exchange on debt
revaluation |
397 |
- |
- |
- |
- |
- |
- |
397 |
313 |
Impairment expense |
14,834 |
- |
(6,864) |
- |
- |
- |
- |
7,970 |
6,098 |
Reorganization costs |
5,987 |
- |
- |
- |
- |
- |
- |
5,987 |
4,646 |
Other |
(1) |
- |
- |
- |
- |
- |
1 |
- |
- |
Adjusted EBITDA |
38,678 |
- |
(845) |
- |
- |
- |
918 |
38,751 |
30,065 |
Adjusted EBITDA % |
15.0% |
|
|
|
|
|
|
15.0% |
15.0% |
|
|
|
|
|
|
|
|
|
|
Q2 2018: Statement of Operations for the
three-month period ended June 30, 2018 (unaudited)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Product revenue |
78,177 |
- |
- |
- |
- |
- |
- |
78,177 |
60,552 |
Service revenue |
2,489 |
- |
- |
- |
- |
- |
- |
2,489 |
1,928 |
Total revenue |
80,666 |
- |
- |
- |
- |
- |
- |
80,666 |
62,480 |
Product cost of sales |
46,185 |
- |
- |
2,630 |
- |
- |
- |
48,815 |
37,809 |
Service cost of sales |
1,730 |
- |
- |
- |
- |
- |
- |
1,730 |
1,340 |
Total cost of sales |
47,915 |
- |
- |
2,630 |
- |
- |
- |
50,545 |
39,149 |
Gross profit |
32,751 |
- |
- |
(2,630) |
- |
- |
- |
30,121 |
23,331 |
Operating expenses |
30,952 |
- |
(149) |
(2,630) |
- |
423 |
- |
28,596 |
22,151 |
Operating income |
1,799 |
- |
149 |
- |
- |
(423) |
- |
1,525 |
1,180 |
Foreign exchange (gain)
loss |
120 |
- |
- |
- |
- |
- |
(727) |
(607) |
(469) |
Interest income |
(145) |
- |
- |
- |
- |
- |
- |
(145) |
(112) |
Interest expense |
129 |
- |
- |
- |
- |
- |
- |
129 |
99 |
Net income before tax |
1,695 |
- |
149 |
- |
- |
(423) |
727 |
2,148 |
1,662 |
Current tax |
1,312 |
- |
- |
- |
- |
- |
- |
1,312 |
1,015 |
Deferred tax |
(395) |
- |
40 |
- |
- |
- |
196 |
(159) |
(123) |
Net income (loss) |
778 |
- |
109 |
- |
- |
(423) |
531 |
995 |
770 |
Exchange differences on
foreign ops |
1,056 |
- |
- |
- |
- |
- |
(727) |
329 |
(2,368) |
Comprehensive income |
1,834 |
- |
109 |
- |
- |
(423) |
(196) |
1,324 |
(1,598) |
Net
income per share |
0.01 |
|
|
|
|
|
|
0.01 |
0.01 |
|
|
|
|
|
|
|
|
|
|
Q2 2018: Adjusted EBITDA for the
three-month period ended June 30, 2018 (unaudited, see Non-GAAP
measures)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Net income (loss) |
778 |
- |
109 |
- |
- |
(423) |
531 |
995 |
770 |
Interest expense |
129 |
- |
- |
- |
- |
- |
- |
129 |
99 |
Interest income |
(145) |
- |
- |
- |
- |
- |
- |
(145) |
(112) |
Income tax expense |
917 |
- |
40 |
- |
- |
- |
196 |
1,153 |
892 |
Depreciation and
amortization |
4,997 |
- |
(510) |
- |
- |
- |
- |
4,487 |
3,475 |
EBITDA |
6,676 |
- |
(361) |
- |
- |
(423) |
727 |
6,619 |
5,124 |
Stock based compensation |
305 |
- |
- |
- |
- |
423 |
- |
728 |
564 |
Foreign exchange on debt
revaluation |
207 |
- |
- |
- |
- |
- |
- |
207 |
160 |
Reorganization costs |
986 |
- |
- |
- |
- |
- |
- |
986 |
764 |
Adjusted EBITDA |
8,174 |
- |
(361) |
- |
- |
- |
727 |
8,540 |
6,612 |
Adjusted EBITDA % |
10.1% |
|
|
|
|
|
|
10.6% |
10.6% |
|
|
|
|
|
|
|
|
|
|
Q2 2018: Statement of Operations for the six-month
period ended June 30, 2018 (unaudited)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Product revenue |
155,458 |
- |
- |
- |
- |
- |
- |
155,458 |
121,658 |
Service revenue |
5,957 |
- |
- |
- |
- |
- |
- |
5,957 |
4,670 |
Total revenue |
161,415 |
- |
- |
- |
- |
- |
- |
161,415 |
126,328 |
Product cost of sales |
89,059 |
- |
- |
5,195 |
- |
- |
- |
94,254 |
73,739 |
Service cost of sales |
4,189 |
- |
- |
- |
- |
- |
- |
4,189 |
3,284 |
Total cost of sales |
93,248 |
- |
- |
5,195 |
- |
- |
- |
98,443 |
77,023 |
Gross profit |
68,167 |
- |
- |
(5,195) |
- |
- |
- |
62,972 |
49,305 |
Operating expenses |
61,266 |
- |
(284) |
(5,195) |
- |
776 |
- |
56,563 |
44,263 |
Operating income |
6,901 |
- |
284 |
- |
- |
(776) |
- |
6,409 |
5,042 |
Foreign exchange (gain)
loss |
(23) |
- |
- |
- |
- |
- |
(1,515) |
(1,538) |
(1,205) |
Interest income |
(289) |
- |
- |
- |
- |
- |
- |
(289) |
(226) |
Interest expense |
260 |
- |
- |
- |
- |
- |
- |
260 |
203 |
Net income before tax |
6,953 |
- |
284 |
- |
- |
(776) |
1,515 |
7,976 |
6,270 |
Current tax |
2,036 |
- |
- |
- |
- |
- |
- |
2,036 |
1,588 |
Deferred tax |
577 |
- |
76 |
- |
- |
- |
409 |
1,062 |
842 |
Net income (loss) |
4,340 |
- |
208 |
- |
- |
(776) |
1,106 |
4,878 |
3,840 |
Exchange differences on
foreign ops |
2,207 |
- |
- |
- |
- |
- |
(1,515) |
692 |
(5,584) |
Comprehensive income |
6,547 |
- |
208 |
- |
- |
(776) |
(409) |
5,570 |
(1,744) |
Net
income per share |
0.05 |
|
|
|
|
|
|
0.06 |
0.05 |
|
|
|
|
|
|
|
|
|
|
Q2 2018: Adjusted EBITDA for the
six-month period ended June 30, 2018 (unaudited, see Non-GAAP
measures)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Net income (loss) |
4,340 |
- |
208 |
- |
- |
(776) |
1,106 |
4,878 |
3,840 |
Interest expense |
260 |
- |
- |
- |
- |
- |
- |
260 |
203 |
Interest income |
(289) |
- |
- |
- |
- |
- |
- |
(289) |
(226) |
Income tax expense |
2,613 |
- |
76 |
- |
- |
- |
409 |
3,098 |
2,430 |
Depreciation and
amortization |
9,696 |
- |
(1,007) |
- |
- |
- |
- |
8,689 |
6,798 |
EBITDA |
16,620 |
- |
(723) |
- |
- |
(776) |
1,515 |
16,636 |
13,045 |
Stock based compensation |
674 |
- |
- |
- |
- |
776 |
- |
1,450 |
1,135 |
Foreign exchange on debt
revaluation |
531 |
- |
- |
- |
- |
- |
- |
531 |
413 |
Reorganization costs |
3,064 |
- |
- |
- |
- |
- |
- |
3,064 |
2,410 |
Adjusted EBITDA |
20,889 |
- |
(723) |
- |
- |
- |
1,515 |
21,681 |
17,003 |
Adjusted EBITDA % |
12.9% |
|
|
|
|
|
|
13.5% |
13.5% |
|
|
|
|
|
|
|
|
|
|
Q1 2018: Statement of Operations for the three-month
period ended March 31, 2018 (unaudited)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Product revenue |
77,281 |
- |
- |
- |
- |
- |
- |
77,281 |
61,106 |
Service revenue |
3,468 |
- |
- |
- |
- |
- |
- |
3,468 |
2,742 |
Total revenue |
80,749 |
- |
- |
- |
- |
- |
- |
80,749 |
63,848 |
Product cost of sales |
42,874 |
- |
- |
2,565 |
- |
- |
- |
45,439 |
35,930 |
Service cost of sales |
2,459 |
- |
- |
- |
- |
- |
- |
2,459 |
1,944 |
Total cost of sales |
45,333 |
- |
- |
2,565 |
- |
- |
- |
47,898 |
37,874 |
Gross profit |
35,416 |
- |
- |
(2,565) |
- |
- |
- |
32,851 |
25,974 |
Operating expenses |
30,314 |
- |
(135) |
(2,565) |
- |
353 |
- |
27,967 |
22,112 |
Operating income |
5,102 |
- |
135 |
- |
- |
(353) |
- |
4,884 |
3,862 |
Foreign exchange gain |
(143) |
- |
- |
- |
- |
- |
(788) |
(931) |
(736) |
Interest income |
(144) |
- |
- |
- |
- |
- |
- |
(144) |
(114) |
Interest expense |
131 |
- |
- |
- |
- |
- |
- |
131 |
104 |
Net income before tax |
5,258 |
- |
135 |
- |
- |
(353) |
788 |
5,828 |
4,608 |
Current tax |
724 |
- |
- |
- |
- |
- |
- |
724 |
573 |
Deferred tax |
972 |
- |
36 |
- |
- |
- |
213 |
1,221 |
965 |
Net income (loss) |
3,562 |
- |
99 |
- |
- |
(353) |
575 |
3,883 |
3,070 |
Exchange differences on
foreign ops |
1,151 |
- |
- |
- |
- |
- |
(788) |
363 |
(3,216) |
Comprehensive income |
4,713 |
- |
99 |
- |
- |
(353) |
(213) |
4,246 |
(146) |
Net
income per share |
0.04 |
|
|
|
|
|
|
0.05 |
0.04 |
|
|
|
|
|
|
|
|
|
|
Q1 2018: Adjusted EBITDA for the
three-month period ended March 31, 2018 (unaudited, see Non-GAAP
measures)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Net income (loss) |
3,562 |
- |
99 |
- |
- |
(353) |
575 |
3,883 |
3,070 |
Interest expense |
131 |
- |
- |
- |
- |
- |
- |
131 |
104 |
Interest income |
(144) |
- |
- |
- |
- |
- |
- |
(144) |
(114) |
Income tax expense |
1,696 |
- |
36 |
- |
- |
- |
213 |
1,945 |
1,538 |
Depreciation and
amortization |
4,699 |
- |
(497) |
- |
- |
- |
- |
4,202 |
3,323 |
EBITDA |
9,944 |
- |
(362) |
- |
- |
(353) |
788 |
10,017 |
7,921 |
Stock based compensation |
369 |
- |
- |
- |
- |
353 |
- |
722 |
571 |
Foreign exchange on debt
revaluation |
324 |
- |
- |
- |
- |
- |
- |
324 |
253 |
Reorganization costs |
2,078 |
- |
- |
- |
- |
- |
- |
2,078 |
1,646 |
Adjusted EBITDA |
12,715 |
- |
(362) |
- |
- |
- |
788 |
13,141 |
10,391 |
Adjusted EBITDA % |
15.7% |
|
|
|
|
|
|
16.3% |
16.3% |
|
|
|
|
|
|
|
|
|
|
Q4 2017: Statement of Operations for the year ended
December 31, 2017 (unaudited)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Product revenue |
280,100 |
- |
(258) |
- |
- |
- |
- |
279,842 |
216,216 |
Service revenue |
13,324 |
- |
- |
- |
- |
- |
- |
13,324 |
10,323 |
Total revenue |
293,424 |
- |
(258) |
- |
- |
- |
- |
293,166 |
226,539 |
Product cost of sales |
158,345 |
- |
- |
11,683 |
- |
- |
- |
170,028 |
131,326 |
Service cost of sales |
12,535 |
- |
- |
- |
- |
- |
- |
12,535 |
9,724 |
Total cost of sales |
170,880 |
- |
- |
11,683 |
- |
- |
- |
182,563 |
141,050 |
Gross profit |
122,544 |
- |
(258) |
(11,683) |
- |
- |
- |
110,603 |
85,489 |
Operating expenses |
128,352 |
- |
2,265 |
(11,683) |
- |
337 |
- |
119,271 |
91,990 |
Operating income |
(5,808) |
- |
(2,523) |
- |
- |
(337) |
- |
(8,668) |
(6,501) |
Foreign exchange loss |
6 |
- |
- |
- |
- |
- |
864 |
870 |
665 |
Interest income |
(519) |
- |
- |
- |
- |
- |
- |
(519) |
(399) |
Interest expense |
610 |
- |
- |
- |
- |
- |
40 |
650 |
500 |
Net loss before tax |
(5,905) |
- |
(2,523) |
- |
- |
(337) |
(904) |
(9,669) |
(7,267) |
Current tax |
4,276 |
- |
- |
- |
- |
- |
- |
4,276 |
3,277 |
Deferred tax |
(2,772) |
- |
(680) |
- |
- |
(70) |
(233) |
(3,756) |
(2,819) |
Net loss |
(7,409) |
- |
(1,843) |
- |
- |
(267) |
(671) |
(10,189) |
(7,725) |
Exchange differences on
foreign ops |
(2,746) |
- |
- |
- |
- |
- |
1,179 |
(1,567) |
7,417 |
Comprehensive income |
(10,155) |
- |
(1,843) |
- |
- |
(267) |
508 |
(11,756) |
(308) |
Net
loss per share |
(0.09) |
|
|
|
|
|
|
(0.12) |
(0.09) |
|
|
|
|
|
|
|
|
|
|
Q4 2017: Adjusted EBITDA for the year
ended December 31, 2017 (unaudited, see Non-GAAP
measures)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Net loss |
(7,409) |
- |
(1,843) |
- |
- |
(267) |
(671) |
(10,189) |
(7,725) |
Interest expense |
610 |
- |
- |
- |
- |
- |
40 |
650 |
500 |
Interest income |
(519) |
- |
- |
- |
- |
- |
- |
(519) |
(399) |
Income tax expense |
1,504 |
- |
(680) |
- |
- |
(70) |
(233) |
521 |
458 |
Depreciation and
amortization |
17,916 |
- |
(1,231) |
- |
- |
- |
- |
16,685 |
12,856 |
EBITDA |
12,103 |
- |
(3,754) |
- |
- |
(337) |
(864) |
7,148 |
5,690 |
Stock based compensation |
3,233 |
- |
- |
- |
- |
337 |
- |
3,571 |
2,738 |
FX on debt revaluation |
(945) |
- |
- |
- |
- |
- |
- |
(945) |
(731) |
Reorganization costs |
1,453 |
- |
- |
- |
- |
- |
- |
1,453 |
1,143 |
Adjusted EBITDA |
15,844 |
- |
(3,754) |
- |
- |
- |
(864) |
11,226 |
8,840 |
Adjusted EBITDA % |
5.4% |
|
|
|
|
|
|
3.8% |
3.9% |
|
|
|
|
|
|
|
|
|
|
Q4 2017: Balance Sheet as at December 31, 2017
(unaudited)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
ASSETS |
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
79,641 |
- |
- |
- |
- |
- |
- |
79,641 |
63,484 |
Trade and other receivables |
24,133 |
- |
- |
- |
- |
- |
- |
24,133 |
19,237 |
Inventory |
24,297 |
- |
- |
- |
- |
- |
- |
24,297 |
19,368 |
Prepaids and other current assets |
2,549 |
- |
- |
- |
- |
- |
- |
2,549 |
2,032 |
Total Current Assets |
130,620 |
- |
- |
- |
- |
- |
- |
130,620 |
104,121 |
Property, plant and equipment, net |
60,860 |
- |
- |
- |
- |
- |
- |
60,860 |
48,513 |
Intangible assets |
24,718 |
(19,961) |
(4,757) |
- |
- |
- |
- |
- |
- |
Capitalized software, net |
- |
8,728 |
1,712 |
- |
- |
- |
- |
10,440 |
8,322 |
Deferred tax assets, net |
8,365 |
(136) |
680 |
- |
- |
70 |
548 |
9,527 |
7,594 |
Goodwill |
1,845 |
- |
- |
- |
- |
- |
- |
1,845 |
1,471 |
Other assets |
1,228 |
3,791 |
522 |
- |
- |
- |
- |
5,541 |
4,417 |
Total Assets |
227,636 |
(7,578) |
(1,843) |
- |
- |
70 |
548 |
218,833 |
174,438 |
LIABILITIES |
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
|
Trade accounts payable and accrued liabilities |
34,599 |
- |
- |
- |
- |
- |
- |
34,599 |
27,580 |
Other liabilities |
3,494 |
- |
- |
- |
- |
- |
- |
3,494 |
2,785 |
Customer deposits |
7,325 |
674 |
- |
- |
- |
- |
- |
7,999 |
6,376 |
Current portion of long-term debt |
5,715 |
- |
- |
- |
- |
- |
- |
5,715 |
4,556 |
Total Current Liabilities |
51,133 |
674 |
- |
- |
- |
- |
- |
51,807 |
41,297 |
Deferred tax liabilities, net |
1,248 |
3 |
- |
- |
- |
- |
- |
1,251 |
997 |
Long-term debt |
7,057 |
- |
- |
- |
- |
- |
- |
7,057 |
5,625 |
Total
Liabilities |
59,438 |
677 |
- |
- |
- |
- |
- |
60,114 |
47,919 |
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Common shares |
195,656 |
254 |
41 |
- |
- |
- |
- |
195,951 |
178,397 |
Additional paid-in capital |
12,158 |
(2,161) |
337 |
- |
- |
- |
- |
10,334 |
7,355 |
Accumulated other comprehensive income |
5,973 |
(3,564) |
- |
- |
- |
- |
1,179 |
3,588 |
(12,112) |
Accumulated deficit |
(45,589) |
(2,784) |
(2,221) |
- |
- |
70 |
(631) |
(51,154) |
(47,121) |
Total Shareholders' Equity |
168,198 |
(8,255) |
(1,843) |
- |
- |
70 |
548 |
158,718 |
126,519 |
Total
Liabilities and Shareholders' Equity |
227,636 |
(7,578) |
(1,843) |
- |
- |
70 |
548 |
218,833 |
174,438 |
|
|
|
|
|
|
|
|
|
|
Q4 2016: Statement of Operations for the year ended
December 31, 2016 (unaudited)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Product revenue |
260,563 |
- |
(263) |
- |
- |
- |
- |
260,300 |
196,482 |
Service revenue |
6,467 |
- |
- |
- |
- |
- |
- |
6,467 |
4,882 |
Total revenue |
267,030 |
- |
(263) |
- |
- |
- |
- |
266,767 |
201,364 |
Product cost of sales |
144,638 |
- |
- |
11,159 |
- |
- |
- |
155,797 |
117,600 |
Service cost of sales |
6,120 |
- |
- |
- |
- |
- |
- |
6,120 |
4,620 |
Total cost of sales |
150,758 |
- |
- |
11,159 |
- |
- |
- |
161,917 |
122,220 |
Gross profit |
116,272 |
- |
(263) |
(11,159) |
- |
- |
- |
104,850 |
79,144 |
Operating expenses |
103,602 |
- |
3,499 |
(11,159) |
- |
(404) |
- |
95,538 |
72,114 |
Operating income |
12,670 |
- |
(3,762) |
- |
- |
404 |
- |
9,312 |
7,030 |
Foreign exchange (gain)
loss |
800 |
- |
- |
- |
- |
- |
(226) |
574 |
433 |
Interest income |
(605) |
- |
- |
- |
- |
- |
- |
(605) |
(457) |
Interest expense |
339 |
- |
- |
- |
- |
- |
(57) |
282 |
213 |
Net income (loss) before tax |
12,136 |
- |
(3,762) |
- |
- |
404 |
283 |
9,061 |
6,841 |
Current tax |
4,102 |
- |
- |
- |
- |
- |
- |
4,102 |
3,096 |
Deferred tax |
750 |
- |
(1,016) |
- |
- |
- |
61 |
(205) |
(154) |
Net income (loss) |
7,284 |
- |
(2,746) |
- |
- |
404 |
221 |
5,164 |
3,899 |
Exchange differences on
foreign ops |
(558) |
- |
- |
- |
- |
- |
(78) |
(636) |
2,997 |
Comprehensive income |
6,726 |
- |
(2,746) |
- |
- |
404 |
143 |
4,528 |
6,896 |
Net
income per share |
0.09 |
|
|
|
|
|
|
0.06 |
0.05 |
|
|
|
|
|
|
|
|
|
|
Q4 2016: Adjusted EBITDA for the year
ended December 31, 2016 (unaudited, see Non-GAAP
measures)
|
IFRS C$ |
Opening Adjs |
Intangible Assets |
Cost of Sales |
Leases and Onerous Contracts |
Stock Based Comp |
Other |
Adjusted C$ |
US GAAP US$ |
Net income (loss) |
7,284 |
- |
(2,746) |
- |
- |
404 |
221 |
5,164 |
3,899 |
Interest expense |
339 |
- |
- |
- |
- |
- |
(57) |
282 |
213 |
Interest income |
(605) |
- |
- |
- |
- |
- |
- |
(605) |
(457) |
Income tax expense |
4,852 |
- |
(1,016) |
- |
- |
- |
61 |
3,898 |
2,942 |
Depreciation and
amortization |
15,485 |
- |
(349) |
- |
- |
- |
- |
15,136 |
11,425 |
EBITDA |
27,355 |
- |
(4,111) |
- |
- |
404 |
226 |
23,874 |
18,022 |
Stock based compensation |
3,817 |
- |
- |
- |
- |
(404) |
- |
3,413 |
2,576 |
Foreign exchange on debt
revaluation |
57 |
- |
- |
- |
- |
- |
- |
57 |
43 |
Adjusted EBITDA |
31,230 |
- |
(4,111) |
- |
- |
- |
226 |
27,345 |
20,641 |
Adjusted EBITDA % |
11.7% |
|
|
|
|
|
|
10.3% |
10.3% |
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures
Our consolidated financial statements are
prepared in accordance with GAAP. These GAAP financial statements
include noncash charges and other charges and benefits that we
believe are unusual or infrequent in nature or that we believe may
make comparisons to our prior or future performance difficult.
As a result, we also provide financial
information, as shown in this release, that is not prepared in
accordance with GAAP and should not be considered as an alternative
to the information prepared in accordance with GAAP. Management
uses these non-GAAP financial measures in its review and evaluation
of the financial performance of the Company. We believe that these
non-GAAP financial measures also provide additional insight to
investors and securities analysts as supplemental information to
our GAAP results and as a basis to compare our financial
performance from period to period and to compare our financial
performance with that of other companies. We believe that these
non-GAAP financial measures facilitate comparisons of our core
operating results from period to period and to other companies by
removing the effects of our capital structure (net interest income
on cash deposits, interest expense on outstanding debt, or foreign
exchange movements on debt revaluation), asset base (depreciation
and amortization), tax consequences and stock-based compensation.
In addition, management bases certain forward-looking estimates and
budgets on non-GAAP financial measures, primarily Adjusted
EBITDA.
Reorganization expenses, impairment expenses,
depreciation and amortization, and stock-based compensation are
excluded from our non-GAAP financial measures because management
considers them to be outside of the Company’s core operating
results, even though some of those expenses may recur, and because
management believes that each of these items can distort the trends
associated with the Company’s ongoing performance. We believe that
excluding these expenses provides investors and management with
greater visibility to the underlying performance of the business
operations, enhances consistency and comparativeness with results
in prior periods that do not, or future periods that may not,
include such items, and facilitates comparison with the results of
other companies in our industry.
The following non-GAAP financial measures are
presented in this release with a reconciliation to the GAAP
financial measure, and a description of the calculation for each
measure is included.
EBITDA |
Net income before interest, taxes, depreciation and
amortization |
Adjusted
EBITDA |
EBITDA adjusted for non-cash
foreign exchange gains or losses on debt revaluation; impairment
expenses; stock-based compensation expense; reorganization
expenses; and any other non-core gains or losses |
Adjusted EBITDA
Margin |
Adjusted EBITDA divided by
revenue |
You should carefully evaluate these non-GAAP
financial measures, the adjustments included in them, and the
reasons we consider them appropriate for analysis supplemental to
our GAAP information. Each of these non-GAAP financial measures has
important limitations as an analytical tool due to exclusion of
some but not all items that affect the most directly comparable
GAAP financial measures. You should not consider any of these
non-GAAP financial measures in isolation or as substitutes for an
analysis of our results as reported under GAAP. You should also be
aware that we may recognize income or incur expenses in the future
that are the same as, or similar to, some of the adjustments in
these non-GAAP financial measures. Because these non-GAAP financial
measures may be defined differently by other companies in our
industry, our definitions of these non-GAAP financial measures may
not be comparable to similarly titled measures of other companies,
thereby diminishing their utility.
Special Note Regarding Forward-Looking
Statements
Certain information and statements contained in
this news release constitute “forward-looking information” and
“forward-looking statements” (collectively, “Forward-Looking
Information”) as defined under applicable Canadian and U.S.
securities laws and the Company hereby cautions investors about
important factors that could cause the Company’s actual results or
outcomes to differ materially from those projected in any
Forward-Looking Information contained in this news release. Any
statements that express, or involve discussions as to,
expectations, beliefs, plans, objectives, assumptions or future
events or performance (often, but not always, through the use of
words or phrases such as “will likely result”, “are expected to”,
“will continue”, “is anticipated”, “believes”, “estimated”,
“intends”, “plans”, “projection” and “outlook”), are not historical
facts and may be forward-looking and may involve estimates,
assumptions and uncertainties which could cause actual results or
outcomes to differ materially from those expressed in such
Forward-Looking Information. In particular and without limitation,
this release contains Forward-Looking Information pertaining to
whether or not the adoption of US GAAP or change in financial
statement presentation currency will have a material effect on the
Company’s financial statements.
Since actual results or outcomes could differ
materially from those expressed in the Forward-Looking Information
provided by or on behalf of the Company, investors and others
should not place undue reliance on any such Forward-Looking
Information.
About DIRTT DIRTT is a building
process powered by technology. The Company uses its proprietary
ICE® software to design, manufacture and install fully customized
interior environments. The technology drives DIRTT’s advanced
manufacturing and provides certainty on cost, schedule and the
final result. Complete interior spaces are constructed faster,
cleaner and more sustainably. DIRTT’s manufacturing facilities are
located in Phoenix, Savannah and Calgary and the Company works with
nearly 100 sales construction partners globally. DIRTT trades on
the Nasdaq under the symbol “DRTT” and on the Toronto Stock
Exchange under the symbol “DRT.” For more information, visit
dirtt.com/investors.
For more information, please contact:
Kim MacEachern
Investor Relations, DIRTT
Kmaceachern@dirtt.com
403.618.4539
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