Decisive Dividend Corporation Reports Financial Results for the Three and Nine Months Ended September 30, 2024
KELOWNA, BC, Nov. 5, 2024 /CNW/ - Decisive Dividend Corporation (TSXV:DE) (the "Company" or "Decisive") today reported its financial results for the three and nine months ended September 30, 2024.
Q3 2024 operating performance was sequentially stronger than both Q2 2024 and Q1 2024, driven by several third quarter operational wins, cost control initiatives, and improved performance from Decisive's diversified portfolio of manufacturing businesses, combined with a move into stronger seasonal periods. Consolidated sales in Q3 2024 were 12% higher than in Q2 2024 and 10% higher than in Q1 2024, while overall Adjusted EBITDA* in Q3 2024 was 65% higher than in Q2 2024 and 42% higher than in Q1 2024.
Recent Operating Highlights
Decisive and its subsidiaries have been undertaking significant efforts to drive revenue and enhance operational activities, leading to several positive developments which are expected to generate continued sequential improvement in results in Q4 2024 and also bolster results into 2025 as follows:
Blaze King positioned for a potential competitive advantage in Q4 2024 and beyond, after having proactively renewed its compliance certificates under new EPA testing methodologies. Blaze King now has the top three most efficient wood stoves as listed by the EPA.
ACR and Blaze King received regulatory approval for its new product design that incorporates Blaze King's combustion technology styled and sized for the United Kingdom and European markets, paving the way for final design and launch of the product in the United Kingdom in 2025.
Slimline is experiencing improved order activity of its agricultural sprayers and has secured confirmed orders for its larger scale wastewater evaporator for delivery in Q4 2024 and early 2025, with improvements in product quality and performance positioning Slimline for improved performance in 2025.
Marketing Impact order volumes and operational productivity have experienced steady improvement since Q1 2024, which should continue to positively affect results into 2025 on the back of capacity enhancement and enhanced distribution capabilities.
Capital I secured a significant purchase order for delivery in Q4 2024 from a long-standing customer, as well as additional significant confirmed orders from this customer on a joint award with Unicast and Hawk for the first half of 2025.
IHT order activity has increased, which is expected to positively impact Q4 2024 performance. Current optimism of improving pork futures and lowering feed costs, should positively impact demand into 2025 as well.
Unicast orders in recent months have surpassed the same period in 2023, including those from the joint award with Capital I and Hawk, which is expected to enhance Unicast results in Q4 2024 and early 2025.
Hawk secured significant confirmed orders on a joint award with Unicast and Capital I for an oil and gas customer that will positively impact results through the first half of 2025.
Sales under Northside's contract with a new commercial vehicle customer are expected to commence in the coming weeks.
Following its acquisition in April 2024, Techbelt's positive momentum has continued with sales ahead of pre-acquisition levels.
Cost control initiatives have been undertaken across the business, ranging from workforce optimization to reductions or deferrals of both operating and capital expenditures.
Jeff Schellenberg, Chief Executive Officer of Decisive, noted:
"We believe that with the steps taken by our subsidiaries to drive sales of their products and enhance their operational efficiency, combined with the steps being taken by central banks to ease interest rates and make monetary policy less restrictive, we have experienced an inflection point in our business in Q3 2024 coming out of what was an extremely challenging first half of the year for our businesses. The operational efficiency enhancements made by our subsidiaries through 2024 positions our subsidiaries to experience the benefit of operating leverage in their businesses as demand firms, which is positive for the profitability of Decisive heading into Q4 2024 and 2025.
Based on the opportunities we currently see in the business, we believe we are positioned to see continued sequential improvement in our results in Q4 2024, moving us back towards improving per share financial metrics, which is the standard of performance for the business. The outcome of improving per share financial metrics will be the enhancement of our availability and cost of capital which help support organic growth initiatives and execution around the strong flow of acquisition opportunities we continue to see.
These factors, along with the diversified nature of the portfolio of businesses we own, the differentiated products these businesses produce, the size of the addressable markets these products are sold into, and the decisions and investments being made by our leadership to build teams, strategies and processes that support these longer term growth objectives give us confidence in Decisive's business model and the potential for long-term growth within it."
Selected Financial Information:
The following is selected financial information of Decisive for the three and nine months ended September 30, 2024. All amounts are expressed in Canadian dollars. The Company's unaudited - interim condensed consolidated financial statements as well as its management's discussion and analysis ("MD&A") are posted on SEDAR+ at www.sedarplus.ca and on Decisive's website (www.decisivedividend.com).
(Stated in thousands of dollars, except per share amounts)
For the three months ended
For the nine months ended
September 30,
2024
2023
Change
2024
2023
Change
Sales
$
32,240
$
37,654
-14 %
$
90,289
$
99,213
-9 %
Gross profit
11,999
16,346
-27 %
33,235
38,966
-15 %
Gross profit %
37 %
43 %
37 %
39 %
Adjusted EBITDA*
5,627
7,862
-28 %
13,007
18,021
-28 %
Per share basic
0.29
0.43
-33 %
0.67
1.07
-37 %
Profit
948
2,739
-65 %
139
5,907
-98 %
Per share basic
0.05
0.15
-67 %
0.01
0.35
-97 %
Free cash flow*
3,380
4,795
-30 %
6,669
10,854
-39 %
Per share basic
0.17
0.26
-35 %
0.35
0.65
-46 %
Free cash flow less maintenance capital*
3,227
4,573
-29 %
6,019
9,791
-39 %
Per share basic
0.17
0.25
-32 %
0.31
0.58
-47 %
Dividends declared
2,642
2,210
20 %
7,745
5,465
42 %
Per share basic
0.14
0.12
17 %
0.40
0.33
21 %
For the trailing twelve month period ended September 30,
2024
2023
Dividend payout ratio*
