Dye & Durham Reports Second Quarter 2021 Financial Results and Provides Corporate Update

• FORECASTED JUNE 30, 2022, ADJUSTED EBITDA AND REVENUE OF OVER $200 MILLION AND $340 MILLION, RESPECTIVELY¹

TORONTO, Feb. 14, 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 and six months ended December 31, 2020, and provides a financial outlook for fiscal year 2022 ending on June 30, 2022 and for the third quarter of the current fiscal year.

Financial outlook for fiscal year 2022 ending on June 30, 2022 and for the third quarter of the current fiscal year. (CNW Group/Dye & Durham)

For the three months ended December 31, 2020, the Company generated revenue of $33.7 million and Adjusted EBITDA² of $17.1 million, representing growth of 96% for both revenue and Adjusted EBITDA compared to the same period in the previous fiscal year.

"The Company's strong second quarter results reflect the successful execution of our business strategy over the period, highlighting our ability to achieve our stated goals," said Matt Proud, CEO of Dye & Durham. "As we have an established platform and financial scale now in our key markets of Canada, the United Kingdom and Australia, the opportunities in our pipeline are becoming more sizeable as we look to acquire strategic vertical assets."

Second Quarter Fiscal 2021 Highlights

• Deployed approximately $630.0 million on strategic acquisitions, the Company anticipates it will achieve post-synergy returns on these acquisitions that are consistent with its targeted return model.
• Completed equity financings of approximately $426.3 million, and secured debt facilities of $570.0 million.
• Revenue of $33.7 million, an increase of 96% from comparative period in the prior year.
• Net income of ($21.5) million, a decrease of ($20.0) million from the comparative period in the prior year, primarily driven by non-cash stock-based compensation expense of $20.3 million.
• Adjusted EBITDA¹ of $17.1 million, an increase of $8.4 million or 96% from comparative period in the prior year.
• Market capitalization increased by $1.8 billion, resulting in a share price accretion of 127%; this resulted in the Company recognizing a $20.3 million non-cash, stock-based compensation expense.
• On February 5, 2021, entered into a definitive agreement to acquire GlobalX Information Pty Ltd. for approximately $166.0 million, which is expected to close in the quarter ended June 30, 2021.

^1 Forecasted June 30, 2022 financial information are considered forward-looking information. Please see "Forward-Looking Information" below.

Financial Outlook

The Company is providing the following financial guidance:

• Forecasted June 30, 2022, Adjusted EBITDA and Revenue of over $200 million and $340 million, respectively.
• Integration from recent acquisitions is ahead of plan, resulting in the realization of certain synergies in the current quarter. This is expected to result in Adjusted EBITDA of more than $30 million for the third quarter of the current fiscal year, which represents an increase of over 75% compared to the prior quarter.

This forecast is provided to enhance visibility into the Company's expectations for financial targets for the third quarter. Please refer to the section regarding forward-looking statements, which forms an integral part of this press release.

Quarterly Dividend

On February 12, 2021, the Board of Directors declared a quarterly dividend of $0.01875 per share to shareholders of record on March 12, 2021.

Conference Call Notification

The Company will hold a conference call to discuss its business on Tuesday, February 16, 2021, at 8:30 a.m. ET hosted by senior management. A question-and-answer session will follow the corporate update.

CONFERENCE CALL DETAILS
DATE:	Tuesday, February 16, 2021
TIME:	8:30 a.m. ET
DIAL-IN NUMBER:	[phone] or  [phone]
TAPED REPLAY:	[phone] or  [phone]
REFERENCE NUMBER:	10924983 (Live call); 924983# (Taped replay)

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

https://produceredition.webcasts.com/starthere.jsp?ei=1427587&tp_key=2edf10723e

² 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, and Adjusted EBITDA margin 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", "Adjusted EBITDA" and "Adjusted EBITDA margin".

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, asset impairment charges, loss on settlement of loans and borrowings, gains or losses from changes in fair value of derivative financial instruments and contingent consideration liabilities measured at fair value through profit or loss, specific transaction related expenses related to acquisitions, IPO and capital structure reorganization, operational restructuring costs, restructuring costs includes impact to the full year of cost synergies related to the reduction of employees in relation to acquisitions.

Adjusted EBITDA margin

Adjusted EBITDA margin means Adjusted EBITDA divided by revenue.

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 December 31, 2020 (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 final long-form prospectus dated July 13, 2020 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

For investor inquiries, please contact: Adam Peeler, LodeRock Advisors Inc., [email protected], 416.427.1235

Related Links

https://dyedurham.com/