• Fiscal 2020 revenue of $65.5 million
• Fiscal 2020 Adjusted EBITDA¹ of $36.7 million
• Fiscal 2020 pro forma revenue of $76.3 million and pro forma Adjusted EBITDA of $41.0 million
• The Company has completed four acquisitions since the beginning of fiscal 2020, as it continues to acquire, integrate, and operate businesses in its sector to drive EBITDA¹ growth

TORONTO, Sept. 22, 2020 /CNW/ - Dye & Durham Limited ("Dye & Durham" or the "Company") (TSX: DND), a leading provider of cloud-based software and technology solutions designed to improve efficiency and increase productivity for legal and business professionals, today announced its financial results for the fourth quarter and the year ended June 30, 2020.  

The Company generated fiscal 2020 revenue of $65.5 million, representing growth of 49% compared to fiscal 2019. The Company generated a net loss of $11.2 million in fiscal 2020. Adjusted EBITDA was $36.7 million in fiscal 2020, representing a 39% increase, compared to $26.4 million in fiscal 2019.

"The Company delivered on its strategy of acquiring, integrating and operating businesses in its sector to drive EBITDA in fiscal 2020," said Matt Proud, CEO of Dye & Durham. "Given the highly recurring nature of the Company's revenue derived from its mission critical, cloud-based digital infrastructure, we believe our 2020 financial results create a strong foundation for Dye & Durham to build on going forward."  

Fiscal 2020 Financial Results

• Revenues of $65.5 million, up 49% from $43.8 million in fiscal 2019
• Net loss of $11.2 million compared to net income of $0.7 million in 2019
• Adjusted EBITDA of $36.7 million, up 39% from $26.4 million in fiscal 2019
• Pro forma revenues of $76.3 million and pro forma Adjusted EBITDA of $41.0 million, which are both above the top end of the range disclosed in the Company's final long-form prospectus dated July 13, 2020, filed in connection with its initial public offering

Q4, 2020 Financial Results

• Revenues of $14.2 million, down 6% from $15.1 million in the fourth quarter of fiscal 2019
• Net loss of $3.8 million, compared to net income of $1.7 million in the fourth quarter of fiscal 2019
• Adjusted EBITDA of $8.8 million, up 3% from $8.5 million in the fourth quarter of fiscal 2019
• In response to COVID-19, management reduced Company costs through permanent and temporary measures that resulted in an estimated $4.1 million of cost reductions in the fourth quarter of fiscal 2020, compared to the third quarter of fiscal 2020

Key Company Highlights

• Since July 1, 2019, the Company has acquired four cloud-based businesses in Canada, the U.K. and Ireland for total consideration of $18.8 million.
• Subsequent to the year ended June 30, 2020, on July 17, 2020, Dye & Durham completed its initial public offering and raised $150 million of gross proceeds, and on July 23, 2020, raised an additional $22.5 million through the closing of its over-allotment option, for total gross proceeds of $172.5 million.
• Subsequent to the year ended June 30, 2020, the Company's common shares began trading on the Toronto Stock Exchange on July 17, 2020, under the symbol "DND".

Conference Call Notification

The Company will hold a conference call on Tuesday, September 22, 2020, at 8:30 a.m. ET hosted by senior management. A question-and-answer session will follow the corporate update.

This call is being webcast and can be accessed by going to:

https://produceredition.webcasts.com/starthere.jsp?ei=1371957&tp_key=2d12f0c49b

An archived replay of the webcast will be available for two weeks by clicking the link above.

¹ Represents a non-IFRS measure. For the relevant definitions, see "Non-IFRS Financial Measures" section of this press release. Management believes non-IFRS measures, including EBITDA, Adjusted EBITDA, provide supplementary information to IFRS measures used in assessing the performance of the business.

Please see the Company's most recent Management's Discussion and Analysis for a reconciliation of these measures to their nearest IFRS measure.

About Dye & Durham

Dye & Durham Limited is a leading provider of cloud-based software and technology solutions designed to improve efficiency and increase productivity for legal and business professionals. Dye & Durham provides critical information services and workflows, which clients use to manage their process, information and regulatory requirements. The Company has operations in Canada and the United Kingdom, and has a strong blue-chip customer base that includes law firms, financial service institutions, and government organizations.

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. 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".  

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, transactional gains or losses on assets, asset impairment charges, interest income, net foreign exchange gains or losses, gains or losses from changes in fair value of derivative financial instruments and contingent consideration liabilities measured at fair value through profit or loss, gains or losses from disposals of equipment, net income or loss from equity accounted investees and income tax expense or recovery, operational restructuring costs, recurring and non-recurring expense items, restructuring costs and includes impact to the full year of cost synergies related to the reduction of employees in relation to the Acquisitions.

Pro Forma

Pro forma revenue and pro forma Adjusted EBITDA each take into consideration the acquisition of Stanley Davis Group for the year ended June 30, 2020. 

Forward-Looking Statements

This press release contains forward–looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities legislation, which reflect the Company's current expectations regarding future events. Particularly, information regarding the Company's expectations of future results, performance, prospects or the markets in which we operate is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "forecast", "target", "goal", "may", "might", "will", "expect", "anticipate", "estimate", "intend", "plan", "indicate", "seek", "believe", "predict", or "likely", or the negative of these terms, or other similar expressions intended to identify forward-looking statements. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. Such forward-looking information is necessarily based on a number of opinions, estimates and assumptions, including but not limited to those assumptions described under the heading "Caution Regarding Forward-Looking Information" in the Company's Management's Discussion & Analysis for the fourth quarter and year ended June 30, 2020 (the "Annual MD&A"). Forward-looking information is subject to and entirely qualified by known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results or performance to be materially different from those expressed or implied by such forward-looking information, including but not limited to factors discussed under the heading "Risk Factors" in the Company's final long-form prospectus dated July 13, 2020 and under the heading "Risks and Uncertainties" in the Annual MD&A, which are available on the Company's profile on SEDAR at www.sedar.com. 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. Accordingly, investors should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this news release represents the Company's expectations as of the date of this news release, and are subject to change after such date and the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

SOURCE Dye & Durham

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