Dye & Durham Reports First Quarter Fiscal 2022 Financial Results

• DRIVing scale with Annualized adjusted ebitda¹ of nearly $250 million and annualized revenue¹ of more than $450 MILLION
• record $112.6M in revenue and $62.4M in Adjusted EBITDA

TORONTO, Nov. 8, 2021 /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 three months ended September 30, 2021.

"Our strong first quarter results demonstrate the scale and the pace of growth that the Company has established," said Matt Proud, CEO of Dye & Durham. "We have a track record of out-performance that proves the strength of our business model. With our first quarter results, we are tracking an annualized run-rate of nearly $250 million in Adjusted EBITDA. With the recent recapitalization and our robust set of pipeline opportunities, we intend to continue executing on our "Build to a Billion" growth strategy to drive further growth."

First Quarter Fiscal 2022 Highlights

• Revenue of $112.6 million, an increase of 414% from the same period in the prior year, primarily due to increased revenue from the recent acquisitions that closed in the previous twelve months, and the realization of revenue synergies.
• Net income of $22.1 million, an increase of $37.1 million from the same period in the prior year, due to gain on change in fair value of convertible debentures of $15.3 million as well as increased revenue related to recent acquisitions, partially offset by higher depreciation and amortization expense and higher operating expenses from the acquisitions.
• Adjusted EBITDA¹ of $62.4 million, an increase of $49.8 million or 398% from the same period in the prior year, primarily due to the realization of revenue synergies from the acquisitions.

Quarterly Dividend

On November 8, 2021, the Board of Directors declared a quarterly dividend of $0.01875 per share to shareholders of record on December 9, 2021, payable on December 16, 2021.

Conference Call Notification

The Company will hold a conference call to discuss its business on Monday, November 8, 2021, at 5:00 p.m. ET hosted by senior management. A question-and-answer session will follow the corporate update.

CONFERENCE CALL DETAILS
DATE:	Monday, November 8, 2021
TIME:	5:00 p.m. ET
DIAL-IN NUMBER:	[phone] or [phone]
REFERENCE NUMBER	20564174
TAPED REPLAY:	[phone] or [phone]
REPLAY CODE:	564174#

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

https://produceredition.webcasts.com/starthere.jsp?ei=1509672&tp_key=3e107081e1

¹ Represents a non-IFRS measure. For the relevant definitions, see the "Non-IFRS Measures" section of this press release. Please also 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 at www.sedar.com, for a reconciliation of these measures to their nearest IFRS measure, which information is incorporated by reference herein. Management believes non-IFRS measures, including EBITDA and Adjusted EBITDA, provide supplementary information to IFRS measures used in assessing the performance of the business.

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, the United Kingdom, Ireland and Australia 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 including change in fair value of Company's convertible debentures ("Convertible Debentures"), 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, realized loss on derivatives, gains or losses from re-financing transactions, specific transaction-related expenses related to acquisitions, IPO and capital structure reorganization, and operational restructuring costs. Operational restructuring costs include the full year impact of cost synergies related to the reduction of employees for acquisitions.

Annualized Adjusted EBITDA

Annualized Adjusted EBITDA is the current quarter Adjusted EBITDA multiplied by four.

Annualized Revenue

Annualized revenue is the current quarter revenue multiplied by four.

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 quarter ended September 30, 2021 (the "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 Annual Information Form dated September 28, 2021 and under the heading "Risks and Uncertainties" in the 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.

In addition, Dye & Durham's guidance on revenue and Adjusted EBITDA is considered forward-looking information. The foregoing demonstrates Dye & Durham's objectives, which are not forecasts or estimates of its financial position, but are based on the implementation of its strategic goals, growth prospects and growth initiatives. Management's assessments of, and outlook for, revenue and Adjusted EBITDA set out herein are generally based on the following assumptions: (a) Dye & Durham's results of operations will continue as expected, (b) the Company will continue effectively execute against its key strategic growth priorities, (c) the Company will continue to retain and grow its existing customer base and market share, (d) the Company will be able to take advantage of future prospects and opportunities, and realize on related synergies, including in respect of acquisitions, (e) there will be no changes in legislative or regulatory matters that negatively impact Dye & Durham's business, (f) current tax laws will remain in effect and will not be materially changed, (g) economic conditions will remain relatively stable throughout the period, and (h) the industries Dye & Durham operates in will continue to grow consistent with past experience. The Company considers these assumptions to be reasonable in the circumstances, given the time period for such projections and targets. The achievement of target revenue set out above is subject to significant risks including: (a) that the Company will be unable to effectively execute against its key strategic growth priorities and (b) the Company will be unable to continue to retain and grow its existing customer base and market share. These estimates have been prepared by and are the responsibility of management. The Company's independent registered public accounting firm has not conducted a review of, and does not express an opinion or any other form of assurance with respect to, these estimates.

SOURCE Dye & Durham Limited

For investor inquiries, please contact: Ross Marshall, LodeRock Advisors Inc., [email protected], 416.526.1563

Related Links

https://dyedurham.com/