National Bank's First Look at Dexterra Group Q4 Results
08:19 AM EST, 03/09/2023 (MT Newswires) -- National Bank noted that Dexterra Group Inc.'s (DXT.TO) Q4 adjusted EBITDA clocked in at $14 million on 5.5% margins, well below its $18.1 million forecast and consensus of $18.7 million owing primarily to an ~$8 million special provision in Modular Solutions.
The company on Wednesday reported a Q4 net loss of $2.9 million, or a loss of 0.04 per share, compared with net earnings of $4.2 million, or $0.06 per share, a year earlier. National Bank said the EPS print of -$0.04 was below its expectations of $0.06 and Street at $0.09.
"Absent from the Adj. EBITDA reconciliation is an ~$8 million special provision related to expected cost escalation and future losses on fixed cost Modular projects being completed in 2023, primarily in British Columbia. Without the drag from future quarters in Q4/22, Modular's Adj. EBITDA would have clocked in at ~$1.4 million, bringing consolidated Adj. EBITDA to ~$22 million and Adj. EPS to $0.09, beating our forecasts," the bank noted.
Dexterra, however, reported Q4 revenues of $253.9 million, up year over year from $201.6 million, outpacing National Bank's call for $241.5 million and slightly above the Street's $250.3 million.
National Bank, which has an Outperform rating on Dexterra and a price target of $10, said it will review its estimates and target following the company's Q4 conference call.