CALGARY, Alberta, Nov. 12, 2019 (GLOBE NEWSWIRE) -- DIRTT Environmental Solutions Ltd. (TSX: DRT, NASDAQ: DRTT), an interior construction company that uses technology for client-driven design and manufacturing, is holding its Analyst Day today in New York City, where management will announce its strategic plan and financial targets for the end of 2023.
Kevin O’Meara, DIRTT’s chief executive officer, commented: “Our plan and financial targets reflect our belief in the strength of DIRTT’s value proposition and the size of our growth opportunity within the interior construction market. Combined with the benefits of the organizational transformation we are implementing, our profitable business model is designed to drive significant value in the coming years.”
Highlights of the strategic plan include:
- Enhancing the areas of software and product innovation, both of which underpin DIRTT’s core customer value proposition;
- Operational improvements, including the implementation of a formalized lean manufacturing approach within our factories to further our metrics-driven continuous improvement culture, optimize our cost structure and ensure the highest standard of quality for our clients;
- Establishing a robust commercial function that integrates marketing and sales to enable stronger sales execution. Specifically, the commercial strategy centers on the following themes:
- People, roles and organizational structure;
- Strategic marketing, including lead generation and tracked conversion rates;
- Sales excellence, including customer segmentation and sales execution; and
- A redefined and strengthened distribution partner experience.
DIRTT’s strategic plan targets revenue levels between $450 million and $550 million at Adjusted EBITDA Margins between 18% and 22% by the end of 2023.
A live webcast of Analyst Day, which begins at 9:00 a.m. EST on Tuesday, Nov. 12, 2019, will be accessible from DIRTT’s website at www.dirtt.com/investors. Following the conclusion of Analyst Day, a replay of the presentation will be available on dirtt.com.
Special Note Regarding Forward-Looking Statements
Certain statements contained in this news release are “forward-looking information” and “forward-looking statements” (collectively, “Forward-Looking Information”) as defined under applicable provisions of the United States Private Securities Litigation Reform Act of 1995, and Section 21E of the Exchange Act and within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact included in this news release, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management is Forward-Looking Information. When used in this news release, the words “anticipate,” “believe,” “expect,” “estimate,” “intend,” “plan,” “project,” “outlook,” “may,” “will,” “should,” “would,” “could,” “can,” the negatives thereof, variations thereon and other similar expressions are intended to identify Forward-Looking Information, although not all Forward-Looking Information contains such identifying words. In particular, this news release contains Forward-Looking Information with respect to, among other things, the Company’s business plans and objectives; growth strategy and opportunities; revenue and Adjusted EBITDA targets; the implementation of the Company’s strategic plan and its expected benefits; and market opportunities. Forward-Looking Information is based on certain estimates, beliefs, expectations and assumptions made in light of management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors that may be appropriate.
Information in this news release regarding the Company’s estimated revenue and Adjusted EBITDA targets may constitute Forward-Looking Information, as described above, and may also constitute financial outlook information within the meaning of applicable Canadian securities laws. The Company believes the expectations reflected in such Forward-Looking Information and financial outlook information are reasonable, but no assurance can be given that these expectations will prove to be correct and such Forward-Looking Information and financial outlook information should not be unduly relied upon.
Forward-Looking Information necessarily involves unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed or implied in such statements. Due to the risks, uncertainties and assumptions inherent in Forward-Looking Information, you should not place undue reliance on Forward-Looking Information. Factors that could have a material adverse effect on our business, financial condition, results of operations and growth prospects can be found in the section titled “Risk Factors” in our Registration Statement on Form 10, filed with the United States Securities and Exchange Commission (“SEC”) on September 20, 2019, and our Form 10-Q filed with the SEC on November 7, 2019. These risks are not exhaustive. Because of these risks and other uncertainties, our actual results, performance or achievement, or industry results, may be materially different from the anticipated or estimated results discussed in the Forward-Looking Information in this news release. New risk factors emerge from time to time, and it is not possible for our management to predict all risk factors nor can we assess the effects of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in, or implied by, any Forward-Looking Information. Our past results of operations are not necessarily indicative of our future results. You should not rely on any Forward-Looking Information, which represents our beliefs, assumptions and estimates only as of the dates on which it was made, as predictions of future events. We undertake no obligation to update this Forward-Looking Information, even though circumstances may change in the future, except as required under applicable securities laws. We qualify all of our Forward-Looking Information by these cautionary statements.
Non-GAAP Financial Measures
Our consolidated financial statements are prepared in accordance with GAAP. Those GAAP financial statements include non-cash charges and other charges and benefits that we believe are unusual or infrequent in nature or that we believe may make comparisons to our prior or future performance difficult.
As a result, we also provide financial information in this news release that is not prepared in accordance with GAAP and should not be considered as an alternative to the information prepared in accordance with GAAP. Management uses these non-GAAP financial measures in its review and evaluation of the financial performance of the Company. We believe that these non-GAAP financial measures also provide additional insight to investors and securities analysts as supplemental information to our GAAP results and as a basis to compare our financial performance from period to period and to compare our financial performance with that of other companies. We believe that these non-GAAP financial measures facilitate comparisons of our core operating results from period to period and to other companies by removing the effects of our capital structure (net interest income on cash deposits, interest expense on outstanding debt, or foreign exchange movements on debt revaluation), asset base (depreciation and amortization), tax consequences and stock-based compensation. In addition, management bases certain forward-looking estimates and budgets on non-GAAP financial measures, primarily Adjusted EBITDA.
Reorganization expenses, impairment expenses, depreciation and amortization, and stock-based compensation are excluded from our non-GAAP financial measures because management considers them to be outside of the Company’s core operating results, even though some of those expenses may recur, and because management believes that each of these items can distort the trends associated with the Company’s ongoing performance. We believe that excluding these expenses provides investors and management with greater visibility to the underlying performance of the business operations, enhances consistency and comparativeness with results in prior periods that do not, or future periods that may not, include such items, and facilitates comparison with the results of other companies in our industry.
The following non-GAAP financial measures are presented in this news release, and a description of the calculation for each measure is included.
Adjusted EBITDA: EBITDA (net income before interest, taxes, depreciation and amortization) adjusted for non-cash foreign exchange gains or losses on debt revaluation; impairment expenses; stock-based compensation expense; reorganization expenses; and any other non-core gains or losses
Adjusted EBITDA Margin: Adjusted EBITDA divided by revenue
You should carefully evaluate these non-GAAP financial measures, the adjustments included in them, and the reasons we consider them appropriate for analysis supplemental to our GAAP information. Each of these non-GAAP financial measures has important limitations as an analytical tool due to exclusion of some but not all items that affect the most directly comparable GAAP financial measures. You should not consider any of these non-GAAP financial measures in isolation or as substitutes for an analysis of our results as reported under GAAP. You should also be aware that we may recognize income or incur expenses in the future that are the same as, or similar to, some of the adjustments in these non-GAAP financial measures. Because these non-GAAP financial measures may be defined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
About DIRTT
DIRTT is a building process powered by technology. The Company uses its proprietary ICE® software to design, manufacture and install fully customized interior environments. The technology drives DIRTT’s advanced manufacturing and provides certainty on cost, schedule and the final result. Complete interior spaces are constructed faster, cleaner and more sustainably. DIRTT’s manufacturing facilities are located in Phoenix, Savannah and Calgary and the Company works with nearly 100 sales construction partners globally. DIRTT trades on the Nasdaq under the symbol “DRTT” and on the Toronto Stock Exchange under the symbol “DRT.” For more information, visit www.dirtt.com/investors.
For more information, please contact:
Kim MacEachern
Investor Relations, DIRTT
Kmaceachern@dirtt.com
403.618.4539
