Pluribus Technologies Corp. Announces Q4 2022 Financial Results

Fiscal 2022 Highlighted by Four Acquisitions and Significantly Enhanced Scale of the Business

TORONTO, May 1, 2023 /CNW/ - Pluribus Technologies Corp. (TSXV: PLRB) ("Pluribus" or the "Company"), a growing acquiror of small, profitable technology companies, today announced its financial results for the fourth quarter and year ended December 31, 2022. The Company's consolidated financial statements and accompanying notes for the years ended December 31, 2022 and 2021 are available under Pluribus' profile on SEDAR (www.sedar.com). 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).

"The improvement in both revenue and Adjusted EBITDA for the fiscal year reflects the full year impact of the five acquisitions completed in 2021 and partial contribution from the acquisitions completed in 2022. As well as progress made in the integration process and alignment of costs to revenue in the back half of the year," said Richard Adair, CEO of Pluribus Technologies. "Our focus in 2023 will be to expand revenue through continued cross selling, developing channel partnerships and finding new markets and new verticals for the product and services offered by our business units. We continue to maintain a strong pipeline of acquisition targets but intend to be selective in how we deploy capital to ensure both our ability to maximize the value associated with any new transaction, while also preserving capital during these challenging macroeconomic conditions."

Selected Financial and Business Highlights for the Fourth Quarter and 2022 Fiscal Year

• Revenue for the three and 12 months ended December 31, 2022 increased by 47% and 105% to $10.1 million and $38.1 million, respectively, reflecting the four acquisitions completed during 2022, and their full contribution in the fourth quarter.
• Adjusted EBITDA¹ for the three and 12 months ended December 31, 2022 were $1.6 million and $5.6 million, respectively, compared to of $1.8 million and $2.8 million in the comparative periods. The increase in Adjusted EBITDA reflects the contribution from the four acquisitions closed during 2022, net of higher corporate and public company costs.
• Net income for the three months ended December 31, 2022 was $0.6 million and a loss of $8.8 million in the twelve-month period, compared to a loss of $12.9 million and $21.0 million in the comparative periods. The decrease in net loss for the quarter is primarily driven by higher Adjusted EBITDA and lower transaction costs as compared to the comparative periods.
• Cash on hand on December 31, 2022 was $5.3 million compared with $1.7 million on December 31, 2021. As of December 31, 2022 the Company has not drawn upon its $3.0M revolving line of credit.

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					Twelve Months
For the period ended December 31,	2022	2021	Var	Var		2022	2021	Var	Var
	$	$	$	%		$	$	$	%
Revenue	10,063	6,837	3,226	47 %		38,120	18,557	19,563	105 %
Gross Profit	6,309	4,427	1,882	43 %		24,370	11,965	12,405	104 %
Operating Expenses	4,756	2,662	2,094	79 %		18,754	9,162	9,592	105 %
Non-Operational Expenses	2,032	15,323	(13,291)	-87 %		16,114	24,543	(8,429)	-34 %
Net Loss	637	(12,882)	13,519	N/A		(8,807)	(20,992)	12,185	58 %
Adjusted EBITDA	1,553	1,765	(212)	-12 %		5,616	2,803	2,813	100 %
Adjusted EBITDA %	15.4 %	25.8 %		-10.4 %		14.7 %	15.1 %		-0.4 %

Outlook

Pluribus is currently focused on four verticals: eLearning, eCommerce, Health Tech and Digital Enablement. We continue to focus on acquisition targets that are owner operated, less than $10 million in revenue and have normalized EBITDA margins of 20-30%. The pipeline of acquisition opportunities remains robust, as owner-operators continue to look for succession options for their businesses. Pluribus is seeking EBITDA-accretive acquisitions to scale up our existing vertical business units, expand into new ones on an opportunistic basis, as well as grow revenue and further expand our product offering. Operationally, we generally expect to grow these acquisitions profitably following the completion of the integration of the business and the subsequent roll out of our sales and business development plans, which typically takes twelve months. In 2023, Pluribus expects its mix of growth to be more heavily weighted towards organic growth in comparison to previous years, given that the pace of M&A will be subject to access of capital via the public markets. Pluribus is investing in a select number of growth initiatives in its key business units (TLN, EdTech, eCommerce), which, leverage broader portfolio capabilities with a phased financial investment approach based on success milestones.

Conference Call Details

Pluribus' management team will host a conference call to discuss its fiscal 2022 fourth quarter financial results on Tuesday, May 2, 2023.

Date: Tuesday, May 2, 2023
Time: 8:30 am EDT

To join the conference call without operator assistance, you may register and enter your phone number at https://bit.ly/3JyZfvd to receive an instant automated call back.

Dial-In Numbers: [phone] or [phone]
Conference ID: 08682840
Webcast: Available on the Events & Presentations page of the Company's investor website
Replay: [phone] or [phone] (playback code: 682840#) – available until midnight (EDT) on May 9, 2023

About Pluribus Technologies Corp.
Pluribus is a technology company that is a value-based acquirer of small, profitable business-to-business technology companies in a range of verticals and industries. Pluribus provides its acquisitions access to experienced sales and marketing resources, strategic partnership opportunities, a diverse portfolio of customers in different geographical markets and enabling technologies to create new revenue streams and provide the opportunity for these companies to grow in their respective markets. For more information, please visit: https://www.pluribustechnologies.com/.

Non-IFRS Measures

The Company uses non-IFRS measures to assess its operating performance. Securities regulations require that companies caution readers that earnings and other measures adjusted to a basis other than IFRS do not have standardized meanings and are unlikely to be comparable to similar measures used by other companies. Accordingly, they should not be considered in isolation. The Company uses Adjusted EBITDA as a measure of operating performance. Management uses Adjusted EBITDA to evaluate operating performance as it excludes amortization of software and intangibles (which is an accounting allocation of the cost of software and intangible assets arising on acquisition), any impact of finance and tax related activities, asset depreciation, foreign exchange gains and losses, other income, restructuring and transition costs primarily related to acquisitions and other one-time non-recurring transactions.

Reconciliation of Non-IFRS Measures

The Company uses the non-IFRS measure Adjusted EBITDA to evaluate performance. The following table presents the reconciliation from net income (loss) to Adjusted EBITDA for the three months and year ended December 31, 2022.

	Three Months					Twelve Months
For the period ended December 31,	2022	2021	Var	Var		2022	2021	Var	Var
	$	$	$	%		$	$	$	%
Total Revenue	10,063	6,837	3,226	47 %		38,120	18,557	19,563	105 %
Net loss for the year	637	(12,882)	13,519	N/A		(8,807)	(20,992)	12,185	58 %
Acquisition costs	725	1,204	(479)	-40 %		4,650	2,777	1,873	67 %
Transition costs	—	10,624	(10,624)	N/A		1,665	11,844	(10,179)	-86 %
Amortization and depreciation	1,161	701	460	66 %		5,153	2,295	2,858	125 %
Share-based compensation	288	5	283	N/A		2,004	34	1,970	N/A
Loss from change of fair value of financial liabilities	—	1,931	(1,931)	N/A		9	6,269	(6,260)	N/A
Loss (gain) on revaluation of contingent consideration	(213)	104	(317)	N/A		(213)	73	(286)	N/A
Finance expense, net	749	383	366	96 %		2,379	914	1,465	160 %
Foreign exchange loss (gain)	(678)	371	(1,049)	N/A		467	337	130	39 %
Income tax expense	(1,116)	(676)	(440)	65 %		(1,691)	(748)	(943)	126 %
Total Adjustments	916	14,647	(13,731)	-94 %		14,423	23,795	(9,372)	-39 %
Adjusted EBITDA	1,553	1,765	(212)	-12 %		5,616	2,803	2,813	100 %
Adjusted EBITDA %	15.4 %	25.8 %		-10.4 %		14.7 %	15.1 %		-0.4 %

Forward-Looking Information

Certain information in this press release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking information in this press release includes, but is not limited to, statements with respect to the business plans of the Company, including the successful completion and pace of future acquisitions, the Company management's expectation on the growth, profitability and performance of its current and future acquisitions, the Company's ability to continue acquiring business-to-business technology companies at reasonable prices and the Company's ability to grow its portfolio companies into significant organizations. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "intend" or negatives of these terms and similar expressions.

Forward-looking statements are based on certain assumptions, including the Company's ability to complete acquisitions on favourable terms; the Company's ability to manage a complex portfolio of companies effectively; the Company's ability to scale its management team to support a rapid pace of growth; the Company's ability to raise sufficient financing to continue the pace of its acquisition strategy; the Company's ability to maintain its rapid pace of growth. Other assumptions include industry trends, the availability of growth opportunities, and general business, economic, competitive, political, regulatory and social uncertainties will not prevent the Company from conducting its business. While the Company considers these assumptions to be reasonable based on information currently available, they are inherently subject to significant business, economic and competitive uncertainties and contingencies and they may prove to be incorrect. Forward-looking information speaks only to such assumptions as of the date of this release.

Forward-looking statements also necessarily involve known and unknown risks, including without limitation, risks associated with general economic conditions, including the COVID-19 pandemic, adverse industry events, marketing costs, loss of markets, future legislative and regulatory developments, the inability to access sufficient capital on favourable terms, the Company's limited operating history; ability to complete favourable acquisitions; the technology industry in Canada and internationally, income tax and regulatory matters, the ability of the Company to execute its business strategies, including the ability manage a complex portfolio of companies effectively, competition, currency and interest rate fluctuations, and other risks.

Readers are cautioned that the foregoing is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ from those anticipated. Forward-looking statements are not guarantees of future performance. The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. Except as required by law, the Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

Contact: 

Richard Adair
Chief Executive Officer
Pluribus Technologies Corp.
1 [phone]

SOURCE Pluribus Technologies Corp.