TORONTO, Feb. 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 ("Q2 FY23") and six months ("YTD FY23") ended
December 31, 2022.
"Dye & Durham continues to outperform the activity in the
real estate market. While real estate transaction volumes were down
globally, and down 38% in Canada,
our business remained highly resilient as demonstrated by our
financial performance this quarter," said Matt Proud, CEO of Dye & Durham. "We
continue to innovate our product offering and take concrete actions
to fortify the business in the current challenging environment. Our
disciplined approach toward capital allocation and cost management
position the business for sustained growth."
Second Quarter Fiscal 2023 Highlights
- Revenue of $106.7 million, a
decrease of $3.0 million, or 3%, from
the same period in the prior year.
- Net loss of $(34.8) million, a
decrease of $30.8 million, from the
same period in the prior year.
- Adjusted EBITDA1 of $57.6
million, a decrease of $5.0
million, or 8%, from the same period in the prior year.
- The Company purchased and cancelled 13.8 million shares,
consisting of 10.3 million shares for total consideration of
$150 million during Q2 FY23 as part
of its Substantial Issuer Bid, 2.8 million shares for total
consideration of $46.2 million as
part of its Normal Course Issuer Bid ("NCIB") from September 1, 2022 through December 31, 2022, and 0.7 million shares for
total consideration of $12.4 million
as part of the NCIB, subsequent to the end of the quarter.
- The Company is on track to exceed its 10% cost reduction plan
by the end of Q3 FY23, with $17.8
million in annual salaries eliminated in the first six
months of fiscal 2023, including more than $5 million of realized cost saving in Q2 FY23 and
an additional $5 million of
annualized (or $1.3 million per
quarter) salaries eliminated by the end of Q3 FY 23.
Quarterly Dividend
On February 10, 2022, the Board of
Directors declared a quarterly dividend of $0.01875 per share to shareholders of record on
February 21, 2023, payable on or
about February 28, 2023.
Conference Call Notification
The Company will hold a conference call to discuss its business
later today, Monday, February 13,
2023, at 9:00 a.m. ET hosted
by senior management. A question-and-answer session will follow the
corporate update.
DATE: Monday, February 13,
2023
TIME: 9:00 a.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://bit.ly/406K1TY
TRADITIONAL DIAL-IN NUMBER: (416) 764-8659 or (888) 664-6392
REFERENCE NUMBER: 96032877
TAPED REPLAY: (416) 764-8677 or (888) 390-0541
REPLAY CODE: 032877#
This call is being webcast and can be accessed by going to:
https://app.webinar.net/6pZDQb2Q7Xx
1)
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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 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.sedar.com,
for further details on certain non-IFRS measures, including the
relevant reconciliation of Adjusted EBITDA to its most directly
comparable IFRS measure, which information is incorporated by
reference herein.
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About Dye & Durham
Dye & Durham Limited provides premiere 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 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" (both
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.sedar.com,
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
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
expectations of future results, performance, prospects, the markets
in which we operate, or about the any future intention with regard
to its business and acquisition strategies is forward-looking
information. 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, and (ix) those assumptions
described under the heading "Caution Regarding Forward-Looking
Information" in the Company's Management's Discussion and Analysis
for the second quarter ended December 31,
2022. 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.sedar.com. 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