Dexterra Group, Inc. · TSX:DXT
Dexterra — Q1 2022 Earnings Presentation
20 slides from Dexterra's earnings presentation, May 11, 2022
Slide 1: Q1 2022 Results Analyst & Investor Call
Q1 2022 Results Analyst & Investor Call May 11, 2022
Slide 2: Cautionary Statement
Cautionary Statement In this presentation, all amounts are in Canadian dollars, unless otherwise indicated. Any graphs, tables or other information in this presentation demonstrating the historical performance of Dexterra Group Inc. (“Dexterra Group”) or of any of its business units contained in thi
Slide 3: Bill McFarland, Board of Directors Chair
Bill McFarland Board of Directors Chair 3
Slide 4: John MacCuish, Chief Executive Officer
John MacCuish Chief Executive Officer 4
Slide 5: Q1 2022 Dexterra Group Progress
Q1 2022 Dexterra Group Progress ◦ Q1 revenue $224M and Adjusted EBITDA $17.0M ◦ Revenue boost through IFM acquisitions and WAFES Q1 2020-2022 ◦ Energy and Natural Resources tailwinds ◦ Modular results challenged ◦ Managing supply chain, inflation and labour shortages across portfolio ◦ Debt: ◦ $50M
Slide 6: IFM Revenue By End Market
IFM Revenue By End Market A growing Support Services business with an expanding footprint and diversified client base. Revenue by End-Market - 2022 YTD ◦ Competitive marketplace ◦ Momentum from recent new business wins ◦ Airports rebound accelerated in March 2022 ◦ Dana Hospitality and TRICOM acquis
Slide 7: Workforce Accommodations, Forestry, Energy Services
Workforce Accommodations, Forestry, Energy Services A growing Support Services business with a diversified client base and strong profitability ◦ Natural Resources and energy sectors firing on all Revenue by service type - 2022 YTD cylinders ◦ Q1 revenue growth of $39 million vs Q1 2021 and $3millio
Slide 8: Modular Solutions
Modular Solutions A developing manufacturing & services business positioned for growth & long-term profitability ◦ Revenue impacted by continued delayed projects Revenue by End-Market - 2022 ◦ Diversification into U.S. market continues with plant start-up costs incurred in transition ◦ Profitability
Slide 9: Drew Knight, Chief Financial Officer
Drew Knight Chief Financial Officer 9
Slide 10: Strong Q1 2022 Results
Strong Q1 2022 Results Revenue Adjusted EBITDA (ex CEWS) $224 million $18 million $202 million $17 million $12.9 million $155 million Q1 2022 compared to Q1 2021: ◦ Strong overall revenue growth ◦ EBITDA strong in IFM and WAFES, offset by Modular short term challenges ◦ Corporate expenses include no
Slide 11: Q1 2022 Results
Q1 2022 Results Q1 IFM Q1 WAFES Q1 MODULAR SOLUTIONS Modular challenges: IFM decline due to start-up costs for acquisitions o Product start-up costs and lower margin of approx. $1 million WAFES decline due to sales mix and cost inflation o Subcontractor and raw material inflation o Q4-2021 had
Slide 12: Financial Leverage & Liquidity
Financial Leverage & Liquidity • Financial Position and liquidity are strong • Plan to reduce DSO will improve cash flow • Debt balance at March 31, 2022 was $130.7 million or 1.6x 2021 EBITDA • Conversion of EBITDA to Free Cash Flow to exceed 50% for 2022 • Quarterly Dividend $0.0875 per share decl
Slide 13: John MacCuish, Chief Executive Officer
John MacCuish Chief Executive Officer 13
Slide 14: Path Forward
Path Forward: Near term goal of $1 Billion Revenue & $100 Million EBITDA within sight ~20% ~30% • Integrated Facilities Management: $1Bn ◦ Growth in 2022 for airports & new work won Revenue ◦ Dana business is seasonally strong in Q4 and Q1 ~30% Mix ◦ Active M&A program • WAFES: ~20% ◦ Strong WAFES r
Slide 15: Question & Answer Period
Question & Answer Period Questions (?) Po
Slide 16: APPENDIX I - Supporting Charts
APPENDIX I - Supporting Charts 16
Slide 17: Revenue Reconciliation vs Q1 2021
Appendix I Revenue Reconciliation vs Q1 2021 17
Slide 18: Adjusted EBITDA vs Q1 2021
Appendix I Adjusted EBITDA vs Q1 2021 18
Slide 19: Revenue Reconciliation vs Q4 2021
Appendix I Revenue Reconciliation vs Q4 2021 19
Slide 20: Adjusted EBITDA vs Q4 2021
Appendix I Adjusted EBITDA vs Q4 2021 20