- Tribe achieved record quarterly revenue of $6.16 million in Q2-2024, an increase of 28% from
the same period last year, alongside a 47% Year-over-Year
improvement in Adjusted EBITDA driven by increasing revenues and
the execution of strategic integration and efficiency projects
resulting in cost reductions.
- In Q2-2024, Tribe acquired DMSI Holdings, including its
three subsidiaries, bringing its expected proforma revenue run-rate
to over $31 million with improved
profitability.
- During the quarter, Tribe completed a private placement
equity financing for gross proceeds of $3.66
million and a LIFE financing for gross proceeds of
$2.51 million, which allowed the
Company to solidify its balance sheet and complete the DMSI
acquisition.
- Management provides a strong growth outlook with the goal of
achieving positive Adjusted EBITDA by the end of 2024, and cash
flow positive in 2025.
VANCOUVER, BC, Aug. 29,
2024 /CNW/ - Tribe Property Technologies Inc.
(TSXV: TRBE) (OTCQB: TRPTF) ("Tribe" or the
"Company"), a leading provider of technology-elevated
property management solutions, today announces its financial
results for the second quarter ended June
30, 2024. All amounts are stated in Canadian dollars on an
as reported basis under IFRS (International Financial Reporting
Standards) unless otherwise indicated.
Joseph Nakhla, Chief Executive
Officer of Tribe, commented, "We are thrilled to announce Tribe's
achievement of record quarterly revenue and a 47% improvement in
Adjusted EBITDA(2) in Q2-2024. The second quarter was
transformational for the Company, highlighted by our successfully
completed acquisition of Toronto-based DMSI Holdings Ltd.
("DMSI"), propelling Tribe's proforma annualized
revenue run-rate to over $31 million;
providing the Company with scale, and significantly improving
Tribe's profitability profile. The acquisition and integration of
DMSI expands the Company's footprint in residential rental and
commercial property management, making Tribe the second largest
multi-family rental management company in Canada(1), encompassing over 19,000
units in addition to more than 30,000 strata and condo units
managed nationally."
Joseph Nakhla further added,
"Looking ahead, we anticipate continued revenue growth in the
second half of the year, driven by organic growth and the DMSI
acquisition. Improving profitability has been Tribe's strategic
focus over the past year, and we're delighted to report that our
efforts are yielding significant results, as reflected in our
current expectation of achieving positive Adjusted EBITDA by the
end of the year, followed by positive cash flows in 2025."
Angelo Bartolini, Tribe's
President and Chief Financial Officer stated, "The outstanding
progress we've made in the first half of the year underscores our
unwavering commitment to delivering value to our shareholders. Our
growth outlook for 2024 remains strong, supported by increasing
monthly recurring revenue and ongoing efficiency measures, leading
to improving gross margins and overall profitability. Tribe's
improved balance sheet, after the recently completed private
placement and LIFE equity financings, enabled the Company to
complete the DMSI acquisition. We are confident that Tribe is well
positioned for a highly successful 2024 and 2025."
Q2-2024 Financial Highlights:
- Revenue: Tribe achieved record revenue of
$6.16 million in Q2-2024, an increase
of 28% compared to $4.82 million in
Q2-2023. Revenue growth was positively impacted by organic growth
and the acquisitions of DMSI and Meritus Group Management Inc.
- Gross profit(3): Gross profit was $2.34 million in Q2-2024, an increase of 50%
compared to $1.56 million in
Q2-2023. Gross profit was favorably impacted by the increase
in revenue and the execution of strategic integration and
efficiency projects resulting in cost reductions.
- Gross margin percentage: Tribe achieved Gross margin
percentage of 41.5% in Q2-2024, compared to Gross margin percentage
of 38.9% in Q2-2023. Gross margin percentage improvement was
primarily accomplished through the integration of our back office,
and efficiency efforts.
- Adjusted EBITDA(2): Tribe had an Adjusted
EBITDA loss of $1.18 million in
Q2-2024, an improvement of 47% compared to an Adjusted EBITDA loss
of $2.21 million in Q2-2023.
- Revenue Segmentation: Recurring revenue, which is
composed of Tribe's tech-elevated management services fees, was
$4.92 million in Q2-2024, an increase
of 17%, compared to $4.20 million in
Q2-2023. The increase in recurring revenue was due to the
onboarding of new customers and the DMSI acquisition.
Transactional revenue was $1.11 million as compared to $0.51 million in Q2-2023, representing an
increase of 119%. This growth was primarily driven by an increase
in financial services revenues and partnerships, underscoring the
Company's ongoing commitment to identifying new avenues for
creating value for stakeholders while continuing to manage healthy
communities.
Q2-2024 Business Highlights:
- On June 3, 2024, Tribe completed
a private placement equity financing in which the Company raised
gross proceeds of $3,665,439 from the
sale of units of the Company at a price of $0.52 per Unit. Each Unit consists of one common
share and a half common share purchase warrant of the Company. Each
warrant entitles the holder to acquire one common share at a price
of $0.82 per common share, until
June 3, 2029, subject to adjustment
in certain events. The financing was led by PROPELR Growth, a
Toronto based late-stage growth,
equity investment fund, and also included participation from the
operators of DMSI, the company's latest acquisition.
- On June 4, 2024, Tribe completed
the acquisition of DMSI including three operating subsidiaries
of DMSI; DMS Property Management Ltd., Del Management Solutions
Inc., and Delcom Management Services Inc. The acquisition propels
Tribe's proforma annualized revenue run-rate to over $31 million and significantly improves the
Company's profitability profile. In addition, the acquisition
expands the Company's footprint in residential rental and
commercial property management.
- On June 21, 2024, Tribe completed
a private placement equity financing under the Listed Issue
Financing Exemption ("LIFE"), in which the Company raised gross
proceeds of $2,510,400 from the sale
of units of the Company (each, a "Unit") at a price of $0.52 per Unit. Each Unit consists of one common
share and a half common share purchase warrant of the Company. Each
warrant entitles the holder to acquire one common share at a price
of $0.82 per common share, until
June 21, 2029, subject to adjustment
in certain events. The financing included strong participation from
the Company's management team and other insiders.
Operational Highlights post June 30,
2024:
- On July 17, 2024, Tribe launched
its Tribe Home app for Android devices and introduced enhancements
to its iOS version, increasing its market reach and making it
easier than ever to manage and live in multi-family residential
homes, such as condos and townhouses.
- On August 22, 2024, Tribe
announced the rebranding and unification of all of DMSI's
service divisions under the name DMS. Tribe also announced it had
begun the expansion of DMS's service offerings to Tribe's current
customer base of Strata and Condo Corporations, Investor-Owners and
Property Developers, expanding its comprehensive service offerings
across Canada.
Outlook:
Tribe continues to outperform the general real estate conditions
due to the Company's aggressive M&A strategy, strong business
development pipeline, healthy base of recurring revenue and its
diversified revenue streams. In addition, Tribe has augmented its
organic growth by selling more services to existing customers,
leading to a marked increase in the Company's revenue per home
metric.
Management remains optimistic that 2024 will be a strong year
for the Company, with improved revenue growth, profitability and
expanding margins. The Company is pleased to reiterate its key
goals for 2024:
- Increase monthly recurring revenue. Organic growth will
be fueled by landing new property management agreements, onboarding
more communities onto the Tribe platform, winning new software
licensing agreements and increasing digital services
revenue.
- Make additional acquisitions. The company expects to
continue executing on its aggressive M&A strategy. Tribe closed
the recent acquisition of DMSI in June
2024 and continues to have several additional acquisition
targets in its M&A pipeline.
- Improve profitability. The Company expects to continue to
drive efficiencies in the business resulting in improved gross
margins and enhancing Tribe's EBITDA profile. The acquisition
of DMSI also further accelerates the Company's goal of achieving
profitability.
- Continue to innovate. Tribe is committed to investing in
its proprietary software platform and adding functionality to its
suite of products in order to maintain its industry leadership
position.
Tribe has a robust pipeline of new opportunities bolstered by
the onboarding of existing buildings that are looking for new
management, as well as brand new buildings nearing completion.
The persistent housing shortage across North America is a significant long-term trend
that is expected to drive increased construction activity and
further enhance demand for Tribe's services for the foreseeable
future. The cornerstone of Tribe's sustained success is the
exceptional quality of its property management technology solutions
and superior services, coupled with the Company's expansive
national footprint.
Second Quarter 2024 Financial Webcast
The Company will hold a conference call and simultaneous webcast
to discuss its results on August 29,
2024 at 1:00 pm ET
(10:00 am PT). The call will be
hosted by Joseph Nakhla, Chief
Executive Officer, and Angelo
Bartolini, Chief Financial Officer. Please dial-in 10
minutes prior to start of the call.
Webinar Details:
Date:
|
August 29,
2024
|
Time:
|
1:00 pm ET (10:00 am
PT).
|
Webinar
Registration:
|
https://bit.ly/TRBE-Q224-webinar
|
Dial-in:
|
+1 778 907 2071
(Vancouver local)
|
|
+1 647 374 4685
(Toronto local)
|
Meeting ID #:
|
872 4588
7422
|
Please connect 5 minutes prior to the conference call to ensure
time for any software download that may be required.
Footnotes
(1)
|
Source: Canadian
Apartment
https://archives.reminetwork.com/canadian-apartment-may-june-2024/68749136
|
|
|
(2)
|
Adjusted EBITDA is a
non-IFRS measure that does not have a standardized meaning and may
not be comparable to a similar measure disclosed by other issuers.
The Company defines Adjusted EBITDA as net income or loss excluding
depreciation and amortization, stock-based compensation, interest
expense, income tax expense, impairment charges and other expenses.
The Company believes Adjusted EBITDA is a useful measure as it
provides important and relevant information to management about the
operating and financial performance of the Company. Adjusted EBITDA
is provided as a proxy for the cash earnings (loss) from the
operations of the business as operating income (loss) for the
Company includes non-cash amortization and depreciation expense and
stock-based compensation. Adjusted EBITDA also enables management
to assess its ability to generate operating cash flow to fund
future working capital needs, and to support future growth.
Excluding these items does not imply that they are non-recurring or
not useful to investors. Investors should be cautioned that
Adjusted EBITDA attributable to shareholders should not be
construed as an alternative to net income (loss) or cash flows as
determined under IFRS.
|
|
|
(3)
|
Gross Profit and Gross
Profit Percentage are non-IFRS measures that do not have a standard
meaning and may not be comparable to a similar measure disclosed by
other issuers. The Company defines Gross Profit as revenue less
cost of software and services and software licensing fees, and
Gross Profit Percentage as Pross Profit calculated as a percentage
of revenue. Gross Profit and Gross Profit Percentage should not be
construed as an alternative for revenue or net loss in accordance
with IFRS. The Company believes that gross profit and gross profit
percentage are meaningful metrics in assessing the Company's
financial performance and operational efficiency.
|
Non-IFRS Measures
The following and preceding discussion of financial results
includes reference to Gross Profit, Gross Profit Percentage and
Adjusted EBITDA, which are all non-IFRS financial measures.
Adjusted
EBITDA2
|
Three months ended
June 30
|
Six months ended
June 30, 2024
|
$000s
|
2024
|
2023
|
2024
|
2023
|
Net loss
|
$ (2,697)
|
$ (2,716)
|
$
(4,900)
|
$
(5,128)
|
Depreciation
|
205
|
221
|
418
|
438
|
Amortization
|
262
|
147
|
524
|
294
|
Stock-based
compensation
|
16
|
13
|
70
|
89
|
Interest
expense
|
319
|
143
|
546
|
291
|
Interest
income
|
-
|
-
|
-
|
(52)
|
Severance
costs
|
12
|
-
|
40
|
-
|
Acquisition
costs
|
570
|
-
|
624
|
-
|
Other
|
134
|
(16)
|
136
|
(3)
|
Adjusted
EBITDA 2
|
$ (1,179)
|
$ (2,208)
|
$ (2,542)
|
$ (4,071)
|
|
|
|
|
|
Gross
Profit3
|
Three Months Ended
June
30
|
Six Months Ended
June 30
|
$000s
|
2024
|
2023
|
2024
|
2023
|
Revenue, excluding
ancillary revenues
|
$ 5,639
|
$ 4,005
|
$ 10,323
|
$7,838
|
Cost of software &
services and software license fees
(excluding costs related to ancillary revenues)
|
3,300
|
2,445
|
6,147
|
4,842
|
Gross
Profit3
|
$ 2,339
|
$ 1,560
|
$ 4,176
|
$ 2,996
|
Gross
Profit3
Percentage
|
41.5 %
|
38.9 %
|
40.5 %
|
38.2 %
|
Financial Statements and Management's Discussion &
Analysis
Please see the consolidated financial statements and related
Management's Discussion & Analysis ("MD&A") for more
details. The unaudited consolidated financial statements for the
second quarter ended June 30, 2024
and related MD&A have been reviewed and approved by Tribe's
Audit Committee and Board of Directors. Tribe recognizes that most
of its investors are now accessing corporate and financial
information either through pushed news services, directly from
www.tribetech.com or SEDAR. Thus, Tribe has prepared this truncated
news release to alert investors to its results and that a more
detailed explanation and analysis is readily available in the
MD&A. These reports have been filed on SEDAR at www.sedar.com
and posted at www.tribetech.com.
"Joseph Nakhla"
Chief Executive Officer
1606-1166 Alberni Street
Vancouver, British Columbia V6E
3Z3
Phone: (604) 343-2601
Email: joseph.nakhla@tribetech.com
About Tribe Property Technologies
Tribe is a property technology company that is disrupting the
traditional property management industry. As a rapidly growing
tech-forward property management company, Tribe's integrated
service-technology delivery model serves the needs of a much wider
variety of stakeholders than traditional service providers. Tribe
seeks to acquire highly accretive targets in the fragmented North
American property management industry and transform these
businesses through streamlining and digitization of operations.
Tribe's platform decreases customer acquisition costs, increases
retention, and allows for the addition of value-added products and
services through the platform. Visit tribetech.com for more
information.
Cautionary Statement on Forward-Looking Information
This news release may contain certain "Forward-Looking
Statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities laws regarding the Company and its business. When
or if used in this news release, the words "anticipate", "believe",
"estimate", "expect", "target, "plan", "forecast", "may",
"schedule" and similar words or expressions identify
forward-looking statements or information. Forward-looking
statements or information in this news release may relate to
statements with respect to the aims and goals of the Company;
financial projections; growth plans including future prospective
consolidation in the property management sector; future
acquisitions by the Company; beliefs of the Company with respect to
the property management industry and real estate market;
prospective benefits of the Company's platform; and other factors
or information. Such statements represent the Company's current
views with respect to future events and are necessarily based upon
several assumptions and estimates that, while considered reasonable
by the Company, are inherently subject to significant business,
economic, competitive, political, and social risks, contingencies,
and uncertainties. Many factors, both known and unknown, could
cause results, performance, or achievements to be materially
different from the results, performance or achievements that are or
may be expressed or implied by such forward- looking statements.
The Company does not intend, and do not assume any obligation, to
update these forward-looking statements or information to reflect
changes in assumptions or changes in circumstances or any other
events affecting such statements and information other than as
required by applicable laws, rules, and regulations.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Tribe Property Technologies Inc.