Second quarter highlighted by the Company's continued focus on the strategic review
TORONTO, Aug. 29, 2024 /PRNewswire/ - Pluribus Technologies Corp. (TSXV:PLRB) ("Pluribus" or the "Company"), a growing acquiror of small, profitable technology companies, today announced its financial results for the second quarter ended June 30, 2024. The Company's consolidated financial statements and accompanying notes for the quarters ended June 30, 2024 and 2023 are available under Pluribus' profile on SEDAR+ (www.sedarplus.ca).
All dollar amounts are in thousands of Canadian dollars unless otherwise noted. Certain metrics, including Adjusted EBITDA, are non-IFRS measures (see Non-IFRS Measures below).
"As we finalize our strategic review, our priority is to restructure the balance sheet and reduce debt," said Richard Adair, CEO of Pluribus. "Our focus is now on driving growth for our remaining businesses as we move forward."
Selected Financial and Business Highlights for the Second Quarter
During the second quarter of 2024 as part of the strategic review undertaken by the Company's Special Committee, management decided to proceed with a sale process to dispose of its Digital Enablement and POWR businesses. The Company has not reached a definitive arrangement to sell these businesses. All figures referenced therein are from continuing operations, therefore excluding the results of Digital Enablement and POWR, unless otherwise noted.
Revenue for the quarter increased by $33 or 1% from $4,965 in 2023 to $4,998 in 2024. The increase in revenue was primarily driven by eLearning ($143), offset by a decline in eCommerce revenue ($110). Revenue for the six months ended June 30, 2024 increased by $1,043 or 10% from $10,031 in 2023 to $11,074 in 2024. The increase in revenue was primarily driven by the Learning Network perpetual license sale in Q1 2024 ($1,109).
Adjusted EBITDA1 for the quarter increased by $547, or 68% from ($802) in 2023 to ($255) in 2024, while Adjusted EBITDA for the six months ended June 30, 2024 increased by $2,325, or 137% from ($1,697) in 2023 to $628 in 2024. The change for both periods was driven by the increase in revenue and lower cost base following the restructuring undertaken by the Company in 2023. While the Company undertakes the sale process to divest of POWR and Digital Enablement, the shared services to support these businesses have been retained at Corporate and the associated costs are fully burdening continuing operations.
The Company incurred a net loss of $4,062 for the quarter ended June 30, 2024 compared to a net loss of $3,504 for the comparable period in 2023. The increase in the net loss was primarily due to an impairment charge taken against Social5 goodwill ($1,643), offset by the increase in Adjusted EBITDA ($547).
The Company incurred a net loss of $6,453 for the six months ended June 30, 2024 compared to a net loss of $6,443 for the comparable period. This flat trend was primarily attributable to the increase in Adjusted EBITDA ($2,325), offset by the impairment charge booked to Social5 goodwill ($1,643) and an increase in income tax expense ($468).
Cash on hand from continuing operations at June 30, 2024 was $1,067, of which $467 was restricted, compared with $1,279 on December 31, 2023. Subsequent to June 30, 2024, National Bank released the restricted balance to the Company to use for net working capital requirements.
The Company signed a forbearance agreement with National Bank in January 18, 2024. The agreement was subsequently amended multiple times. On August 16, 2024, the Company and National Bank entered into a second forbearance agreement whereby National Bank will continue to forbear from exercising its rights and remedies under the Credit Agreement until the earlier of September 16, 2024 and the occurrence of any terminating event. The Company has provided a covenant to close a certain sale transaction, in respect of which the Company has executed a non-binding letter of intent, on or before September 16, 2024.
1 Adjusted EBITDA is a non-IFRS measure as described in the Non-IFRS Measures section of this news release. These measures are not recognized measures under IFRS, do not have a standardized meaning under IFRS and are therefore unlikely to be comparable to similar measures presented by other companies.
Results of Operations
(000's)
Three Months
Six Months
For the period ended June 30,
2024
2023
Var
Var
2024
2023
Var
Var
$
$
$
%
$
$
$
%
Revenue
4,998
4,965
33
1 %
11,074
10,031
1,043
10 %
Gross Profit
2,843
2,495
348
14 %
6,829
5,013
1,816
36 %
