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Decisive Dividend Corporation Reports Financial Results for the Three Months Ended March 31, 2022

V.DE

(TheNewswire)

Decisive Dividend Corporation


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May 10, 2022 – TheNewswire - Kelowna, British Columbia:Decisive Dividend Corporation (TSXV:DE) (the “Company” or “Decisive”) today reported its financial results for the three months ended March 31, 2022.

Highlights of the Company’s financial performance in Q1 2022 include the following:

  • Record quarterly consolidated sales in Q1 2022, which increased 34% to $18.7 million, compared to $13.9 million in Q1 2021

  • Generated $2.3 million in Adjusted EBITDA* in Q1 2022, an increase of 6% relative to Q1 2021. Excluding subsidies, Q1 2022 Adjusted EBITDA* was 33% higher than Q1 2021

  • Generated profit of $0.5 million, or $0.04 per share, in Q1 2022, an increase of 84%, or $0.02 per share compared to Q1 2021

Selected Financial Highlights:

The following are selected financial highlights of Decisive for the three ended March 31, 2022. All amounts are expressed in Canadian dollars. The Company’s unaudited - interim condensed consolidated financial statements as well as its management’s discussion and analysis (“MD&A”) are posted on SEDAR and on Decisive’s website (www.decisivedividend.com).

(Stated in thousands of dollars, except per share amounts)

For the three months ended March 31,

2022

2021

Change

Sales

$

18,689

$

13,945

34%

Gross profit

6,199

5,157

20%

Gross profit %

33%

37%

Adjusted EBITDA*

2,305

2,165

6%

Per share basic

0.19

0.18

3%

Profit before tax

815

485

68%

Profit

512

278

84%

Per share basic

0.04

0.02

100%

Per share diluted

0.04

0.02

100%

Dividends declared

912

-

100%

Per share basic

0.08

-

100%

* Adjusted EBITDA is not a recognized financial measure under International Financial Reporting Standards (IFRS) and therefore may not be comparable to similar measures presented by other issuers, but it is used by management to assess the performance of the Company and its segments. See ”Non-IFRS Financial Measures” later in this press release for the full description of Adjusted EBITDA and a reconciliation of applicable IFRS measures to non-IFRS measures.

Q12022 Highlights:

  • Consolidated sales increased 34% to $18.7 million compared to $13.9 million in Q1 2021.

  • Consolidated gross profit increased 20% to $6.2 million from $5.2 million inQ1 2021. Excluding subsidies, Q1 2022 gross profit was 27% higher than Q1 2021

  • Consolidated gross profit percentages decreased to 33% from 37% in Q1 2021. Decrease driven primarily by product mix changes, a decrease in government subsidies, and supply chain and labour availability challenges

  • Consolidated Adjusted EBITDA* increased to $2.3 million, up 6% relative to Q1 2021. Excluding subsidies, Q1 2022 Adjusted EBITDA* was 33% higher than Q1 2021

  • Each of the portfolio businesses are experiencing robust customer demand as underlying economic conditions and commodity prices have improved

  • In the finished product segment, Blaze King sales increased 29% and Slimline sales increased by 28% relative to Q1 2021

  • In the component manufacturing segment, Unicast sales were relatively flat, and Hawk and Northside experienced 29% and 94% sales increases respectively compared to Q1 2021

  • The Company’s subsidiaries did not receive any subsidies from the Canada Emergency Wage Subsidy (“CEWS”) or Canada Emergency Rent Subsidy (“CERS”) programs in the quarter (Q1 2021 - $0.4 million).

  • Consolidated net profit in the quarter was $0.5 million, or $0.04 per share, an increase of $0.2 million, or $0.02 per share, compared to Q1 2021.

Jeff Schellenberg, Chief Executive Officer of Decisive, noted:

Q1 performance continued to demonstrate strong demand across our portfolio of companies. We are particularly pleased with our Adjusted EBITDA performance which has grown significantly even as government subsidies have wound down, and has been achieved despite current supply chain challenges. These results demonstrate the resilience of our diversified business model and reflect the efforts of our subsidiaries’ management teams to manage costs and optimize operations in a challenging market.

We are also very pleased that, based on our operating results, we were in a position to return the monthly dividend to pre-pandemic levels. Over the past year, we have made tremendous progress toward stabilizing the overall performance of the Corporation and believe the $0.03 per common share monthly dividend reflects our commitment to provide sustainable and growing dividends to our shareholders.

Finally, we are excited to have added Marketing Impact into our group of companies which provides Decisive with further product, industry, and geographic diversity. They design and produce great products to service a wide range of top tier customers that are in non-cyclical industries selling non-discretionary products. These traits are an excellent match for Decisive’s strategic objectives.

We have had an eventful start to 2022 and look forward to providing further updates to our shareholders as we progress through the year.

Outlook:

  • Executing on the growth strategy with the acquisition of Marketing Impact in April 2022, and with a strong and growing acquisition prospect pipeline being built by identifying and evaluating potential acquisitions to bolster diversity and add strength and resilience to operations.

  • Experiencing strong demand across the portfolio of businesses, which trends look to be continuing through the remainder of

  • Stabilizing overall profitability performance through a volatile economic environment as a result of the diversity of the portfolio.

  • Optimizing operations, with an emphasis on increasing production capacity, improving operational efficiency and enhancing margins in the face of broad and steady customer demand trends.

  • Providing sustainable and growing dividends to shareholders, with an increase in the monthly dividend to $0.03 per share.

About Decisive Dividend Corporation

Decisive Dividend Corporation is an acquisition-oriented company, focused on opportunities in manufacturing. The Company’s purpose is to be the sought-out choice for exiting legacy-minded business owners, while supporting the long-term success of the businesses acquired, and through that, creating sustainable and growing shareholder returns. The Company uses a disciplined acquisition strategy to identify already profitable, well-established, high quality manufacturing companies that have a sustainable competitive advantage, a focus on non-discretionary products, steady cash flows, growth potential and established, strong leadership.

For more information on Decisive, or to sign up for email notifications of Company press releases, please visit www.decisivedividend.com.

FOR FURTHER INFORMATION PLEASE CONTACT:

Jeff Schellenberg, Chief Executive Officer

Rick Torriero, Chief Financial Officer

#201, 1674 Bertram Street

Kelowna, BC V1Y 9G4

Telephone: (250) 870-9146

Cautionary Statements

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.

Non-IFRS Financial Measures

In this press release, reference is made to “Adjusted EBITDA”, which is not a recognized financial measure under IFRS, but is believed to be meaningful in the assessment of the Company’s performance.

“Adjusted EBITDA” is defined as earnings before finance costs, income taxes, depreciation, amortization, foreign exchange gains or losses, other non-cash items such as gains or losses recognized on the fair value of contingent consideration items, asset impairment, share-based compensation, and restructuring costs, and other non-operating items such as acquisition costs.

Adjusted EBITDA is a financial performance measure that management believes is useful for investors to analyze the results of the Company’s operating activities prior to consideration of how those activities are financed and the impact of non-operating charges related to planned or completed acquisitions, foreign exchange, taxation, depreciation, amortization, and impairment charges.

The most directly comparable financial measure is profit or loss. While Adjusted EBITDA is used by management to assess the historical financial performance of the Company, readers are cautioned that:

  • Non-IFRS financial measures, such as Adjusted EBITDA, are not recognized financial measures under IFRS

  • The Company’s method of calculating Non-IFRS financial measures, such as Adjusted EBITDA, may differ from that of other corporations or entities and therefore may not be directly comparable to measures utilized by other corporations or entities;

  • Non-IFRS financial measures, such as Adjusted EBITDA, should not be viewed as an alternative to measures that are recognized under IFRS such as profit or loss or cash from operating activities; and

  • A reader should not place undue reliance on any Non-IFRS financial measures.

Set forth below are reconciliations of Non-IFRS financial measures to their most relevant IFRS measures.

(Stated in thousands of dollars)

For the three months ended March 31,

2022

2021

Profit for the period

$

512

$

278

Add (deduct):

Financing costs

455

521

Income tax expense

302

207

Amortization and depreciation

876

884

Share-based compensation expense

70

154

Foreign exchange expense

94

134

Interest and other expense (income)

(4)

1

Gain on sale of equipment

-

(14)

Adjusted EBITDA

2,305

2,165

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on management’s current beliefs, assumptions and expectations as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this press release contains forward-looking information relating to the future prospects of the Company and its operating subsidiaries, 2022 demand levels, increasing demand from customers, potential future acquisitions, and productivity and efficiency initiatives being explored to enhance margins. Risk factors that could cause actual results or outcomes to differ materially from the results expressed or implied by forward-looking information include, among other things: general economic conditions; pandemics; competition; government regulation; environmental regulation; access to capital; market trends and innovation; climate risk; general uninsured losses; risk related to acquisitions; dependence on customers, distributors and strategic relationships; supply and cost of raw materials and purchased parts; operational performance and growth; implementation of the growth strategy; product liability and warranty claims; litigation; reliance on technology, intellectual property, and information systems; availability of future financing; interest rates and debt financing; income tax matters; foreign exchange; dividends; trading volatility of common shares; dilution risk; reliance on management and key personnel; employee and labour relations; and conflicts of interest, all as more particularly described in the most recent annual MD&A of the Company available on the Company’s profile at www.sedar.com. There can be no assurance as to the future financial performance of the Company or that the board of directors of the Company will declare or pay any dividends in the future or, if dividends are declared and paid, there can be no assurance as to the frequency or amount of such dividends. The Company cautions the reader that the risk factors referenced above are not exhaustive. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

Not for distribution in the United States

This press release is not for distribution to U.S. Newswire Services or for dissemination in the United States.

May 10, 2022 – TheNewswire - Kelowna, British Columbia:Decisive Dividend Corporation (TSXV:DE) (the “Company” or “Decisive”) today reported its financial results for the three months ended March 31, 2022.

Highlights of the Company’s financial performance in Q1 2022 include the following:

  • Record quarterly consolidated sales in Q1 2022, which increased 34% to $18.7 million, compared to $13.9 million in Q1 2021

  • Generated $2.3 million in Adjusted EBITDA* in Q1 2022, an increase of 6% relative to Q1 2021. Excluding subsidies, Q1 2022 Adjusted EBITDA* was 33% higher than Q1 2021

  • Generated profit of $0.5 million, or $0.04 per share, in Q1 2022, an increase of 84%, or $0.02 per share compared to Q1 2021

Selected Financial Highlights:

The following are selected financial highlights of Decisive for the three ended March 31, 2022. All amounts are expressed in Canadian dollars. The Company’s unaudited - interim condensed consolidated financial statements as well as its management’s discussion and analysis (“MD&A”) are posted on SEDAR and on Decisive’s website (www.decisivedividend.com).

(Stated in thousands of dollars, except per share amounts)

For the three months ended March 31,

2022

2021

Change

Sales

$

18,689

$

13,945

34%

Gross profit

6,199

5,157

20%

Gross profit %

33%

37%

Adjusted EBITDA*

2,305

2,165

6%

Per share basic

0.19

0.18

3%

Profit before tax

815

485

68%

Profit

512

278

84%

Per share basic

0.04

0.02

100%

Per share diluted

0.04

0.02

100%

Dividends declared

912

-

100%

Per share basic

0.08

-

100%

* Adjusted EBITDA is not a recognized financial measure under International Financial Reporting Standards (IFRS) and therefore may not be comparable to similar measures presented by other issuers, but it is used by management to assess the performance of the Company and its segments. See ”Non-IFRS Financial Measures” later in this press release for the full description of Adjusted EBITDA and a reconciliation of applicable IFRS measures to non-IFRS measures.

Q12022 Highlights:

  • Consolidated sales increased 34% to $18.7 million compared to $13.9 million in Q1 2021.

  • Consolidated gross profit increased 20% to $6.2 million from $5.2 million inQ1 2021. Excluding subsidies, Q1 2022 gross profit was 27% higher than Q1 2021

  • Consolidated gross profit percentages decreased to 33% from 37% in Q1 2021. Decrease driven primarily by product mix changes, a decrease in government subsidies, and supply chain and labour availability challenges

  • Consolidated Adjusted EBITDA* increased to $2.3 million, up 6% relative to Q1 2021. Excluding subsidies, Q1 2022 Adjusted EBITDA* was 33% higher than Q1 2021

  • Each of the portfolio businesses are experiencing robust customer demand as underlying economic conditions and commodity prices have improved

  • In the finished product segment, Blaze King sales increased 29% and Slimline sales increased by 28% relative to Q1 2021

  • In the component manufacturing segment, Unicast sales were relatively flat, and Hawk and Northside experienced 29% and 94% sales increases respectively compared to Q1 2021

  • The Company’s subsidiaries did not receive any subsidies from the Canada Emergency Wage Subsidy (“CEWS”) or Canada Emergency Rent Subsidy (“CERS”) programs in the quarter (Q1 2021 - $0.4 million).

  • Consolidated net profit in the quarter was $0.5 million, or $0.04 per share, an increase of $0.2 million, or $0.02 per share, compared to Q1 2021.

Jeff Schellenberg, Chief Executive Officer of Decisive, noted:

Q1 performance continued to demonstrate strong demand across our portfolio of companies. We are particularly pleased with our Adjusted EBITDA performance which has grown significantly even as government subsidies have wound down, and has been achieved despite current supply chain challenges. These results demonstrate the resilience of our diversified business model and reflect the efforts of our subsidiaries’ management teams to manage costs and optimize operations in a challenging market.

We are also very pleased that, based on our operating results, we were in a position to return the monthly dividend to pre-pandemic levels. Over the past year, we have made tremendous progress toward stabilizing the overall performance of the Corporation and believe the $0.03 per common share monthly dividend reflects our commitment to provide sustainable and growing dividends to our shareholders.

Finally, we are excited to have added Marketing Impact into our group of companies which provides Decisive with further product, industry, and geographic diversity. They design and produce great products to service a wide range of top tier customers that are in non-cyclical industries selling non-discretionary products. These traits are an excellent match for Decisive’s strategic objectives.

We have had an eventful start to 2022 and look forward to providing further updates to our shareholders as we progress through the year.

Outlook:

  • Executing on the growth strategy with the acquisition of Marketing Impact in April 2022, and with a strong and growing acquisition prospect pipeline being built by identifying and evaluating potential acquisitions to bolster diversity and add strength and resilience to operations.

  • Experiencing strong demand across the portfolio of businesses, which trends look to be continuing through the remainder of

  • Stabilizing overall profitability performance through a volatile economic environment as a result of the diversity of the portfolio.

  • Optimizing operations, with an emphasis on increasing production capacity, improving operational efficiency and enhancing margins in the face of broad and steady customer demand trends.

  • Providing sustainable and growing dividends to shareholders, with an increase in the monthly dividend to $0.03 per share.

About Decisive Dividend Corporation

Decisive Dividend Corporation is an acquisition-oriented company, focused on opportunities in manufacturing. The Company’s purpose is to be the sought-out choice for exiting legacy-minded business owners, while supporting the long-term success of the businesses acquired, and through that, creating sustainable and growing shareholder returns. The Company uses a disciplined acquisition strategy to identify already profitable, well-established, high quality manufacturing companies that have a sustainable competitive advantage, a focus on non-discretionary products, steady cash flows, growth potential and established, strong leadership.

For more information on Decisive, or to sign up for email notifications of Company press releases, please visit www.decisivedividend.com.

FOR FURTHER INFORMATION PLEASE CONTACT:

Jeff Schellenberg, Chief Executive Officer

Rick Torriero, Chief Financial Officer

#201, 1674 Bertram Street

Kelowna, BC V1Y 9G4

Telephone: (250) 870-9146

Cautionary Statements

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.

Non-IFRS Financial Measures

In this press release, reference is made to “Adjusted EBITDA”, which is not a recognized financial measure under IFRS, but is believed to be meaningful in the assessment of the Company’s performance.

“Adjusted EBITDA” is defined as earnings before finance costs, income taxes, depreciation, amortization, foreign exchange gains or losses, other non-cash items such as gains or losses recognized on the fair value of contingent consideration items, asset impairment, share-based compensation, and restructuring costs, and other non-operating items such as acquisition costs.

Adjusted EBITDA is a financial performance measure that management believes is useful for investors to analyze the results of the Company’s operating activities prior to consideration of how those activities are financed and the impact of non-operating charges related to planned or completed acquisitions, foreign exchange, taxation, depreciation, amortization, and impairment charges.

The most directly comparable financial measure is profit or loss. While Adjusted EBITDA is used by management to assess the historical financial performance of the Company, readers are cautioned that:

  • Non-IFRS financial measures, such as Adjusted EBITDA, are not recognized financial measures under IFRS

  • The Company’s method of calculating Non-IFRS financial measures, such as Adjusted EBITDA, may differ from that of other corporations or entities and therefore may not be directly comparable to measures utilized by other corporations or entities;

  • Non-IFRS financial measures, such as Adjusted EBITDA, should not be viewed as an alternative to measures that are recognized under IFRS such as profit or loss or cash from operating activities; and

  • A reader should not place undue reliance on any Non-IFRS financial measures.

Set forth below are reconciliations of Non-IFRS financial measures to their most relevant IFRS measures.

(Stated in thousands of dollars)

For the three months ended March 31,

2022

2021

Profit for the period

$

512

$

278

Add (deduct):

Financing costs

455

521

Income tax expense

302

207

Amortization and depreciation

876

884

Share-based compensation expense

70

154

Foreign exchange expense

94

134

Interest and other expense (income)

(4)

1

Gain on sale of equipment

-

(14)

Adjusted EBITDA

2,305

2,165

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on management’s current beliefs, assumptions and expectations as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this press release contains forward-looking information relating to the future prospects of the Company and its operating subsidiaries, 2022 demand levels, increasing demand from customers, potential future acquisitions, and productivity and efficiency initiatives being explored to enhance margins. Risk factors that could cause actual results or outcomes to differ materially from the results expressed or implied by forward-looking information include, among other things: general economic conditions; pandemics; competition; government regulation; environmental regulation; access to capital; market trends and innovation; climate risk; general uninsured losses; risk related to acquisitions; dependence on customers, distributors and strategic relationships; supply and cost of raw materials and purchased parts; operational performance and growth; implementation of the growth strategy; product liability and warranty claims; litigation; reliance on technology, intellectual property, and information systems; availability of future financing; interest rates and debt financing; income tax matters; foreign exchange; dividends; trading volatility of common shares; dilution risk; reliance on management and key personnel; employee and labour relations; and conflicts of interest, all as more particularly described in the most recent annual MD&A of the Company available on the Company’s profile at www.sedar.com. There can be no assurance as to the future financial performance of the Company or that the board of directors of the Company will declare or pay any dividends in the future or, if dividends are declared and paid, there can be no assurance as to the frequency or amount of such dividends. The Company cautions the reader that the risk factors referenced above are not exhaustive. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

Not for distribution in the United States

This press release is not for distribution to U.S. Newswire Services or for dissemination in the United States.

Copyright (c) 2022 TheNewswire - All rights reserved.