TSXV: DUG │OTCQX: DSTFF
TORONTO, Aug. 27, 2018 /CNW/ - Distinct Infrastructure
Group Inc. ("Distinct", "DIG" or the "Company") today released its
financial results for the three-month and six-month periods ended
June 30, 2018.
Highlights
- Second quarter Revenue of $20.6
million was a 46% increase over the $14.2 million reported in the second quarter of
2017.
- EBITDA improved to $1.2 million
in the quarter from ($3.7 million) in
the second quarter of last year.
- Second quarter Net Loss of $1.1
million compares to a Net Loss of $6.9 million in Q2 2017.
- Strong results continued in Central
Canada following the acquisition of Crown Utilities in
November 2017.
- Closing of the Company's operations in Edmonton and redeployment of assets to Central
and Eastern operations is expected to increase profitability going
forward.
Q2 2018 Financial Highlights
|
Income
Statement
|
All figures in
CAD
|
|
|
|
Three Months
Ended
|
Three Months
Ended
|
|
June 30,
2018
|
June 30, 2017
(Restated)
|
|
|
|
Revenue
|
$20,647,173
|
$14,159,114
|
Expenses
|
$20,690,801
|
$18,540,433
|
|
|
|
EBITDA
|
$1,248,820
|
($3,724,300)
|
Adjusted
EBITDA
|
$1,280,665
|
($3,711,018)
|
|
|
|
Net
Income
|
($1,138,983)
|
($6,944,734)
|
EPS
(Basic)
|
($0.02)
|
($0.20)
|
Overview
"The second quarter of 2018 represents an important step forward
for DIG," said Joe Lanni, DIG's
Co-CEO. "Revenue and margins are growing, and we continue to build
market share across the GTA and Southern
Ontario."
"We remain very pleased with the performance of our operations
in Central Canada since the Crown
Utilities acquisition," said Alex
Agius, DIG's Co-CEO. "The redeployment of assets from
Alberta to the Manitoba and Ontario markets should facilitate stronger
profitability going forward, and while some client projects in
Ontario were slower to ramp-up
than originally anticipated, that volume is now materializing."
"Discussions with RBC regarding their ongoing support for the
Company are going well," said William
Nurnberger, DIG's VP Corporate Development and Acting CFO.
"RBC has been a strong and supportive partner for DIG, and we
expect to have discussions concluded in the next several days."
"The momentum DIG has established in both our Central and
Eastern Canadian operations bodes well for a strong second half of
the year," Mr Lanni said. "We expect revenues and EBITDA margins to
continue their growth in the second half, especially in the
Ontario market."
The construction industry in Canada is seasonal in nature for companies
like Distinct that perform most of their work outdoors. As a
result, less work is typically performed in the winter and early
spring months than in the summer and fall months.
Accordingly, Distinct has historically experienced a seasonal
pattern in its operating results, with the first half of the year
generating lower revenue and profitability than the second half of
the year. This pattern is expected to continue in 2018.
Q2 Operating Results
Revenue – Revenues for the quarter ending June 30, 2018 were $20,647,173, a 46 percent increase over the
revenues for the same quarter last year of $14,159,114. The increase in revenue was due
largely to the inclusion of Crown Utilities for the full
quarter. Revenue for the core business in Ontario remained stable.
Gross Profit Margin – Gross profit (revenue less direct
costs) reached $4,597,378 for the
quarter ended June 30, 2018, an
increase of $5,252,581 from the
second quarter of 2017. Gross profit margin for the second quarter
was 22.3% compared to gross profit margin of (4.6%) for the second
quarter of last year. The increase was led by DIG's operations in
Manitoba, which posted very strong
results. Margins in Ontario,
while improved over those recorded in 2017, were impacted by
increased investments in anticipation of client programs that got
off to a slower than expected start. These programs are now
underway, and profit margins in Ontario should continue to improve in the
second half of the year as a result.
Net Income / Loss – The Company reported a net loss of
$1,138,983 for the second quarter of
2018 as compared to a net loss of $6,944,734 for the second quarter of 2017. The
rebound over last year was the result of a series of cost control
measures, the refinancing of the Company's debt from one year ago,
the addition of Crown Utilities, and improved gross margins in
Ontario.
Conference Call:
Distinct has scheduled a conference call for 8:30 a.m. (ET) on Tuesday, August 28, 2018.
Joe Lanni and Alex Agius, Co-CEOs, and William Nurnberger, Interim CFO and VP Corporate
Development, will host the conference call.
Participants should dial 1-877-256-3270 at least 10
minutes prior to the conference time. The reservation number is
21895371. For those unable to attend the call, a replay will be
available after 12:00 p.m.
at 1-800-558-5253 or 416-626-4100 until midnight on
September 11, 2018. The reservation
number is 21895371
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
About Distinct Infrastructure Group:
Distinct Infrastructure Group Inc. is a turnkey solutions firm
providing design, engineering, construction and maintenance
services to telecommunication firms, utilities and government
bodies. Distinct's full service suite of offerings includes
underground construction, aerial construction, inventory
management, and technical services including fibre to the building
and home. The Company's head offices are located in Toronto, Ontario, with additional offices in
Winnipeg, Manitoba.
Non-IFRS / GAAP Measures
EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted EPS are
non-GAAP/IFRS figures. "EBITDA" represents net income plus income
tax, finance expense and depreciation. "Adjusted EBITDA" represents
EBITDA plus share-based compensation and one-time costs. "Adjusted
Net Income" represents net income plus one-time finance expenses.
"Adjusted EPS" represents Adjusted Net Income divided by the
average number of common shares outstanding for each period and
Adjusted Net Income divided by the weighted average number of
diluted common shares outstanding.
Forward Looking Statements
This news release contains "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and applicable Canadian securities legislation.
Generally, these forward-looking statements can be identified by
the use of forward-looking terminology such as "plans",
"anticipated", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases or state that certain actions,
events or results "may", "could", "would", "might" or "will be
taken", "occur" or "be achieved". Inspiration is subject to
significant risks and uncertainties which may cause the actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward looking statements contained in this
release. Inspiration cannot assure investors that actual results
will be consistent with these forward looking statements and
Inspiration assumes no obligation to update or revise the forward
looking statements contained in this release to reflect actual
events or new circumstances.
SOURCE Distinct Infrastructure Group Inc.