Full year results Consolidated Highlights:
- The Company generated revenue of $65.9 million CAD , growing $8.7 million CAD , or 15% versus 2022.
- The Company generated free cash flow of $7.0 million CAD , growing $0.7 million CAD , or 11% versus 2022.
- Consolidated EBITDA excluding the impact of net recycling revenue was $7.1 million CAD , growing by $2.5 million CAD or 53% versus 2022.
- Consolidated EBITDA was $15.4 million CAD , growing by $0.1 million CAD or 1% versus 2022.
Corporate Locations Highlights:
- Corporate location revenue grew 16% versus 2022 to $63.7 million CAD (12% constant currency growth) .
- Corporate location EBITDA grew 11% versus 2022 to $22.5 million CAD (7% constant currency growth) .
- Same corporate location EBITDA was $20.4 million CAD, growing 1% versus with 2022 (3% constant currency decrease).
Capital Management:
- The Company generated $3.0 million CAD and $12.8million CAD in cash from operations during Q4 2023 and 2023, respectively.
- As at December 31, 2023, the Company has $3.6 million CAD in cash, $1 million CAD available on its demand operating line of credit, $19.2 million CAD available on its demand non-revolving re-advanceable term loan, and $6.0 million CAD available on its demand revolving re-advanceable interest only acquisition facility.
Management's Comments on Q4-2023
Jeffrey Hasham, the Company's Chief Executive Officer, noted "We are very pleased with our Q4 2023 performance, with EBITDA of $3.1 million Canadian, despite lower paper recycling prices. When we look at EBITDA less net recycling revenue, this was $1.5 million Canadian compared to $0.2 million Canadian in Q4 2022. We continue to focus on our core operations, and this has driven performance. From a top-line perspective, we continue to see strong demand for our shredding services, with organic shredding revenue growth of 10% versus Q4 2022. We also saw a very strong quarter for Proscan, our digital imaging business, with revenue growth of 11% versus Q4 2022.
In 2023, including in Q4 2023, the Company made significant investments in our information technology infrastructure, customer relationship management and marketing automation platforms, and is working towards obtaining a SOC-2 Type II certification, which could potentially increase the pipeline of scanning opportunities for our Proscan business. These investments impacted our Q4 2023 and 2023 bottom line results, but will help drive long-term value creation.
I wanted to thank our employees, franchisees, management and board members for their hard work and contributions to the Company; their support has been instrumental in creating the foundations for the continued growth of our Company."