Dye & Durham Reports First Quarter Fiscal 2025 Financial Results
Revenue up 5% to $120 million in Q1 FY2025, taking into consideration the TM Group divestiture
ARR1,2 up 43% to $156 million, representing 32% of total revenue
Leveraged Free Cash Flow1 of $28 million and net cash by operating activities of $48 million in Q1 FY2025
TORONTO, Nov. 7, 2024 /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 ended September 30, 2024.
"Our business is performing well and remains on track," said Matthew Proud, CEO of Dye & Durham. "We have demonstrated another quarter of organic revenue growth, strong growth in ARR, low churn and a year-over-year improvement in leveraged free cash flow of $35 million. Even more exciting than what we've accomplished, is our current trajectory. As macroeconomic conditions improve, we are seeing early signs of accelerated growth into Q2 FY2025. We remain focused on expanding our platform to support organic growth and market leadership."
First Quarter Fiscal 2025 Highlights(Comparison periods in each case are to the three months ended September 30, 2023)
Revenue was up 5% to $119.9 million, taking into consideration the TM Group divestiture
Organic Revenue Growth Rate1, 4 of 5.3% taking into consideration the impact of revenue adjustments; excluding this, the growth rate was 1.0%
Annual Recurring Revenue2 was up 43% to $156.0 million, representing 32% of total revenue3
Net loss of $9.3 million compared to a net loss of $13.5 in the equivalent period in the prior fiscal year
Adjusted EBITDA1 of $65.9 million
Leveraged Free Cash Flow1 of $28.2 million, an increase of $34.5 million compared to equivalent period in the prior fiscal year
Net cash provided by operating activities of $47.7 million, an increase of $5.1 million compared to equivalent period in the prior fiscal year
The Company continues to work towards reducing its net debt1 to Adjusted EBITDA1 ratio to below 4x. As a result of strong cash flows in Q1 FY2025, the Company made a voluntary prepayment of $20 million towards its term loan facility, an amount that exceeds its mandatory annual prepayment requirements by approximately four times.
Quarterly DividendOn November 7, 2024, the Board of Directors approved a dividend for the three months ending September 30, 2024, in the amount of $0.01875 per common share, to be paid on or about November 21, 2024, to holders of common shares of record as of the close of business on November 14, 2024.
Conference Call Notification The Company will hold a conference call to discuss its business later today, Thursday, November 7, 2024, at 5:00 p.m. ET hosted by senior management. A question-and-answer session will follow the corporate update.
DATE: Thursday, November 7, 2024TIME: 5:00 p.m. ETRAPIDCONNECT: 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://emportal.ink/4eR3QW2
TRADITIONAL DIAL-IN NUMBER: (416) 945-7677 or (888) 699-1199TAPED REPLAY: (289) 819-1450 or (888) 660-6345REPLAY CODE: 41112#
This call is being webcast and can be accessed by going to: https://app.webinar.net/bjagWZ4e56P.
1) 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 EBITDA, Adjusted EBITDA, Leveraged Free Cash Flow and Organic Revenue Growth Rate, 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.sedarplus.ca, for further details on certain non-IFRS measures, including the relevant reconciliations of each of Adjusted EBITDA and Leveraged Free Cash Flow to their most directly comparable IFRS measure, which information is incorporated by reference herein. Please see the "Non-IFRS Financial Measures" section of this press release for a reconciliation of Organic Revenue to Revenue.
2) As of September 30, 2024.
3) Excluding TM Group financial results.
4) Organic Revenue Growth Rate is calculated by the total revenue in the current quarter period (excluding the pre-acquisition quarterly revenue of those acquisitions executed in the last twelve month period from September 30, 2024 and discontinued businesses) divided by the total revenue in the prior quarter period (excluding discontinued businesses). Below is a reconciliation of Organic Revenue to Revenue. The revenue adjustment was primarily related to the recognition impacts of entering into new three-year contracts following acquisitions made in the preceding 12 month period.
Organic Revenue Reconciliation
Q1 FY2025
Q1 FY2024
Revenue
119.9
120.1
TM Group Pre-Divestiture
-
6.0
Pre-Acquisition Reporting Results5
4.9
-
Organic Revenue1
115.1
